National Real Estate Flash Cards

Our Flash Cards will help you prepare to ace the New York State Real Estate Exam. Study a variety of 100 key questions and answers, and quickly memorize terms, phrases, and definitions by simply clicking on a flash card to retrieve the answers to state specific questions.

Alienation Clause

Requires immediate repayment of the loan if ownership transfers; also called a due-on-sale clause.

Automated Underwriting Systems

Computerized systems for loan approval communication between a loan originator and the investor.

Computerized Loan Origination

Originating loans through the use of a networked computer system.


The result created when lenders are required to pay high rates of interest for deposits while receiving long-term income from low-interest-rate mortgage loans.

Primary Market

The market in which lenders originate loans and make funds available to borrowers.

Secondary Mortgage Market

A market in which mortgage loans can be sold to investors.


Charging an interest rate that is in excess of the legal rate.

Adjustable rate mortgage (ARM)

A mortgage on which the interest rate rises and falls with changes in prevailing interest rates.

Affordable Housing Loan

An umbrella term that covers many slightly different loans that target first-time home buyers and low-to moderate-income borrowers.

Blanket Mortgage

A mortgage secured by two or more properties.

Equity Sharing

An arrangement whereby a party providing financing gets a portion of the ownership.

Graduated Payment Mortgage

A mortgage with an interest rate and maturity that are fixed, but the monthly payment gradually rises, because the initial monthly payments are insufficient to fully amortize the loan.

Negative Amortization

Accrual of interest on a loan balance so that, as loan payments are made the loan balance rises.


A right, for a given period of time, to buy, sell, or lease property at specified price and terms.

Package Mortgage

A mortgage that secures personal property in addition to real property.


Reverse annuity mortgage.

Seller Financing

A note accepted by a seller instead of cash.

Wraparound Mortgage

A mortgage that encompasses any existing mortgages and is subordinate to them.

Ad Valorem Taxes

Taxes charged according to the value of a property.

Adjusted Sales Price

The sales price of a property less commissions and closing costs.

Assessed Value

A value placed on a property for the purpose of taxation.

Assessment Appeal Board

Local governmental body that hears and rules on property owner complaints of overassessment.


The price paid for property; used in calculating income taxes.

Documentary Tax

A fee or tax on deeds and other documents payable at the time of recordation.

Installment Sale

Sale of real estate in which the proceeds of the sale are deferred beyond the year of sale.

Mill Rate

Property tax rate that is expressed in tenths of a cent per dollar of assessed valuation.

Tax Certificate

A document issued at a tax sale that entitles the purchaser to a deed at a later date if the property is not redeemed.

Tax Lien

A charge or hold by government against property to insure the payment of taxes.

Closing Meeting

A meeting at which the buyer pays for the property and receives a deed to it and all other matters pertaining to the sale are concluded.

Escrow Agent

The person placed in charge of an escrow.

Escrow Closing

The deposit of documents and funds with a neutral third party, along with instructions as to how to conduct the closing.


The division of ongoing expenses and income items between the buyer and the seller.

Real Estate Settlement Proce dures Act (RESPA)

A federal law that deals with procedures to be followed in certain types of real estate closings.

Settlement Statement:

An accounting of funds to the buyer and the seller at the completion of a real estate transaction.

Title Closing

The process of completing a real estate transaction.


The total transfer of the lessee’s rights to another party.


Professional designations for property managers.

Gross Lease

Tenant pays a fixed rent and the landlord pays all property expenses.

The Tenant
The Landlord
Net Lease

Tenant pays a base rent plus maintenance, property taxes, and insurance.

Option Clause

Gives the right at some future time to purchase or lease a property at a predetermined price.

Quiet Enjoyment

The right of possession and use of property without undue disturbance by others.


The right to retake possession at a future date.


To transfer only a portion one’s lease rights.


The estimate of the value of something.


To convert future income to current value.


Properties similar to the subject property that have sold recently.

Cost Approach

Land value plus current construction costs minus depreciation.

Gross rent multiplier (GRM)

A number that is multiplied by a property’s gross rents to produce an estimate of the property’s worth.

Highest and Best Use

That use of a parcel of land that will produce the greatest current value.

Income Approach

A method of valuing a property based on the monetary returns it can be expected to produce.

Market Comparison Approach

A method of valuing property based on recent sales of similar properties.

Market Value

The cash price that a willing buyer and a willing seller would agree upon, given reasonable exposure of the property to the marketplace, full information as to the potential uses of the property, and no undue compulsion to act.

Operating Expenses

Expenditures necessary to maintain the production of income.

Scheduled Gross (Projected Gross)

The estimated rent a fully occupied property can be expected to produce on an annual basis.


The Uniform Standards of Professional Appraisal Practice

Advance Fee Listing

Listing in which a broker gets paid in advance and charges an hourly rate.

Exclusive Authority to Purchase

Listing utilized by buyer’s brokers.

Exclusive Right to Sell

A listing that gives the broker the right to collect a commission no matter who sells the property during the listing period.

Multiple Listing Service (MLS)

Organization of member brokers agreeing to share listing information and share commissions.

Net Listing

A listing agreement that pays the broker an uncertain amount of commission, generating the principal net proceeds from the sale.


Two or more people conspiring to restrain competition.


The mixing of clients’ or customers’ funds with an agent’s personal funds.

Dual Agency

Representation of two or more principals in a transaction by the same agent.


A person who brings two or more parties together but does not represent either party.

Price Fixing

Two or more people conspiring to charge a fixed fee, having an anticompetitive effect.


A person who authorizes another to act.


Statements a reasonable person would recognize as nonfactual or extravagant.

Third Parties

Persons who are not parties to a contract but who may be affected by it.

Americans with Disabilities Act (ADA)

A federal law giving disabled individuals the right to access for commercial facilities open to the public.

Block Busting

The illegal practice of inducing panic selling in a neighborhood for financial gain.

Community Reinvestment Act (CRA)

Federal statute encouraging federally regulated lenders to increase their participation in low-income areas.

Equal Credit Opportunity Act (ECOA)

Federal law that provides for equal credit to borrowers.

Familial Status

One or more individuals under the age of 18 who are domiciled with a parent or other person having custody.

Protected Class

A class of people that by law are protected from discrimination.


Practice of directing home seekers to particular neighborhoods based on race, color, religion, sex, national origin, or handicapped or adults-only status.


An individual or organization that responds to advertising and visits real estate offices to test for compliance with fair housing laws.


Rules that govern how an owners’ association will be run.


Covenants, conditions, and restrictions by which a property owner agrees to abide.

Common Elements

Those parts of a condominium that are owned by all the unit owners.


Individual ownership of a space of air plus undivided ownership of the common elements.


Land and building owned or leased by a corporation that, in turn, leases space to its shareholders.

Limited Common Elements

Common elements whose use is limited to certain owners.

Planned Unit Development (PUD)

Individually owned lots and houses with community ownership of common areas.

Proprietary Lease

A lease issued by a cooperative corporation to its shareholders.

Building Codes

Local and state laws that set minimum construction standards.

Certificate of Occupancy

A government-issued document that states a structure meets local zoning and building code requirements and is ready for use.


Rezoning of land from a higher-density use to a lower-density use.

Land-use control

A broad term that describes any legal restriction that controls how a parcel of land may be used.

Nonconforming Use

An improvement that is inconsistent with current zoning regulations.

Restrictive Covenants

Clauses placed in deeds and leases to control how future owners and lessees may or may not use the property.


Allows an individual landowner to vary from zoning requirements.

Zoning Laws

Public regulations that control the specific use of land.


The cash flow produced by a property divided by the amount of cash necessary to purchase it

Equity Buildup

The increase of one’s equity in a property due to mortgage balance reduction and price appreciation.


The impact that borrowed funds have on investment return.


A disclosure statement that describes an investment opportunity.

Straight-line Depreciation

Depreciation in equal amounts each year over the life of the asset.

Tax Shelter

The income tax savings that an investment can produce for its owner.

Real Estate Flash Cards