Real Estate Exam: Key Terms & Concepts

What is the highest and most complete form of property ownership available in the United States?

Fee Simple Absolute

What acronym represents the six fiduciary duties a real estate agent owes to their client?

OLD CAR (Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care)

What is the illegal practice of a real estate agent directing buyers toward or away from specific neighborhoods based on protected class status?

Steering

What legal document serves as a security instrument, pledging a property as collateral for a loan?

A Mortgage (or Deed of Trust)

What is the term for an estimate or opinion of a property's value provided by a licensed professional?

Appraisal

What type of contract establishes an agency relationship between a property seller and a real estate broker?

Listing Agreement

What is a financial claim or charge against a property that provides security for a debt or obligation?

Lien

What is the most probable price a property should bring in a competitive and open market?

Market Value

What type of estate is limited in duration to the life of the owner or the life of some other designated person?

Life Estate

Which form of co-ownership includes the 'right of survivorship,' meaning the interest of a deceased owner automatically passes to the remaining owners?

Joint Tenancy