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Thirty of the most important terms to help you with your real estate exams.
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🕒 Chapters:
0:00 Introduction
1:10 T1: Property Manager
1:42 T2: Active Property
2:03 T3: Co-Ownership
2:39 T4: Joint Tenancy
3:16 T5: Lease
3:40 T6: Sandwich Lease
4:18 T7: Constructive Eviction
4:52 T8: Satisfaction of Mortgage
5:26 T9: Amendments
5:56 T10: Recovery Fund
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0:00
have you ever wished that you have the
0:02
cheat sheet for life's most complicated
0:06
situations well we've got you covered
0:08
for your real estate
0:15
exam imagine that you are just about to
0:18
embark on a thrilling adventure and you
0:22
have this guide book that holds all the
0:24
secrets to this exciting Journey let's
0:27
replace the word Adventure with real
0:30
estate exam and know that your guide
0:33
book is this video with 30 essential
0:37
terms that will help you pass your 2024
0:40
real estate exam ready to dive
0:43
in then buckle up get your virtual
0:46
passport and get ready to Journey
0:48
Through the exciting and occasionally
0:52
complicated landscape of real estate
0:54
terminology by the end of this video you
0:56
will be earned with knowledge and
0:59
confidence to pass your exam property
1:02
manager now guess what the first term
1:04
means take a few
1:11
seconds a property manager is a
1:13
professional who takes care of real
1:15
estate properties for owners they handle
1:18
daily tasks like finding new tenants
1:21
collecting rent and maintaining the
1:23
property in short they make life easier
1:27
for landlords by ensuring smooth
1:30
operation and upkeeping of rental
1:32
properties next one coming up active
1:36
property let's see if you can nail this
1:39
definition what does active property
1:42
mean an active property is a real estate
1:45
listing that's still on the market and
1:48
open for offers when a property is
1:50
labeled active it means the salary is
1:53
still accepting bids making it a
1:55
potential opportunity for buyers
1:58
searching for their perfect home
2:00
moving on term number three co-ownership
2:04
take a few seconds and think about
2:13
it co-ownership is when two or more
2:16
people share ownership of a single
2:18
property these co-owners May hold the
2:22
title as tenants in common joint tenants
2:25
or tenants by the entirety the type of C
2:29
ownership that determines the legal
2:30
rights and responsibilities of each
2:33
party in relation to the property let's
2:37
jump to the next one joint tency take a
2:40
crack at it you've got
2:47
this joint tency is when multiple people
2:50
co-own a property in this Arrangement if
2:54
one owner passes away their share of the
2:56
property automatically transfers to the
2:59
surviving in owners this ensures a
3:02
smooth transition of ownership without
3:04
the need for probate or other legal
3:08
complications in a nutshell you should
3:10
think of joint tency as a type of Co
3:14
ownership lease let's see if you know
3:17
what lease
3:23
means a lease is a contractual agreement
3:26
where one party grants the use of
3:29
property services or lend to another for
3:32
a set of period in exchange the user
3:35
typically pays a regular fee easy
3:39
right sandwich leas let's see if you can
3:43
nail this delicious
3:51
definition a sandwich lease is a unique
3:54
rental Arrangement where a property
3:56
owner leases their property to an
3:58
investor who then leases it to a tenant
4:02
in this scenario the investor acts as a
4:05
middleman between the property owner and
4:07
a tenant therefore the investor is
4:10
sandwiched between the property owner
4:13
and the Tenant now that sandwich time is
4:15
over next term activate constructive
4:19
eviction time to flex those definition
4:22
muscles take a few seconds and then
4:25
let's see the
4:28
definition constructive eviction occurs
4:32
when a landlord's neglect or actions
4:34
make a rental property uninhabitable
4:37
forcing the tenant to leave this breach
4:40
of the landlord's legal responsibilities
4:43
May entitle the tenant to seek legal
4:46
remedies or terminate the lease
4:48
agreement
4:51
altogether satisfaction of
4:57
[Music]
4:58
mortgage a satisfaction of the mortgage
5:02
is like a certificate of completion for
5:04
a mortgage it's a legal document that
5:07
shows the mortgage has been paid off
5:09
lifting the lender's claim on the
5:11
property and transferring ownership to
5:13
the borrower this document contains
5:16
essential details about the loan
5:19
property and parties involved along with
5:22
proof of
5:23
authenticity let's jump straight to the
5:25
next one amendments give this term a
5:29
shot
5:36
an amendment is a modification to an
5:38
existing contract that updates or Alters
5:42
the original terms allowing the
5:44
agreement to better suit the needs of
5:46
the involved parties for instance sales
5:49
price closing date or correcting
5:52
mistakes all right what's
5:55
next Recovery Fund what's this term all
5:59
about
6:06
a Recovery Fund is a safeguard
6:08
established by some states real estate
6:10
commissions to protect the public from
6:13
potential misconduct by real estate
6:15
agents it acts as an insurance policy
6:19
ensuring financial compensation for
6:22
homeowners and agents affected by
6:24
fraudulent or harmful actions in real
6:27
estate
6:28
transactions tenant turnover give it
6:31
your best shot what's this term
6:39
about tenant turnover is the rate at
6:42
which renters come and go from a
6:45
property it can also refer to the time
6:47
it takes for a new tenant to move in
6:50
after the previous one leaves principle
6:53
of substitution time to play Guess the
6:56
term take a few seconds and think about
6:59
it
7:04
buyers won't pay for a property if a
7:06
similar cheaper option exists this
7:09
principle keeps property prices
7:11
competitive and reflective of True
7:14
Market
7:15
Value here comes another one the Clean
7:19
Water Act
7:26
CWA the Clean Water Act pass in 1972 and
7:31
amended in 1977 and
7:34
1987 is a federal law aimed at
7:37
controlling pollution in US waterways it
7:40
seeks to preserve the quality of Water
7:42
Resources by regulating pollutant
7:45
discharges and protecting Wetlands
7:48
ensuring clean and safe water for
7:51
all mortgage think you've got what a
7:54
mortgage is prove
7:58
it
8:05
a mortgage is a long-term loan deal
8:07
between a lender and a borrower to
8:10
purchase a property the home itself
8:12
serves as collateral for this secure
8:15
loan mortgages typically last 15 20 or
8:20
30 years and borrowers can obtain them
8:23
from various financial institutions to
8:26
finance their dream
8:27
homes bring on the next term down
8:43
payment a down payment is the initial
8:46
cash you pay upfront when buying a
8:48
property typically ranging from 2% to
8:50
20% or more of the purchase price
8:54
lenders often offer lower interest rates
8:56
for larger down payments the specific
9:00
percentage depends on the borrower
9:02
circumstances lender requirements and a
9:05
type of mortgage loan
9:07
chosen amenities there you go you got
9:18
this amenities or desirable features or
9:22
extras that enhance a properties appeal
9:25
and comfort ultimately adding value to
9:28
the home
9:30
let's see another
9:31
one inverse condemnation give it a go
9:35
what does inverse condemnation
9:42
mean inverse condemnation is a legal
9:45
process allowing Property Owners to seek
9:48
compensation from the government when
9:50
their land or property is taken used or
9:54
damaged for public purposes without Fair
9:57
payment ensuring their right rights are
10:00
in fact protected you've got this you
10:03
see another term on
10:05
Deck notice of default go ahead think
10:09
about it for a couple
10:15
seconds a notice of default is a public
10:18
warning that A lender issues when a
10:20
borrower falls behind on mortgage
10:22
payments filed in court it signals that
10:26
the borrower is in default allowing the
10:28
lender to proceed with foreclosure this
10:31
notice is the second phase in the
10:33
foreclosure process following a
10:36
borrower's failure to make their
10:38
mortgage payments on time here we go
10:41
Switching gears to the next word
10:44
underwriting ready to take a guess let's
10:47
do
10:52
this underwriting is the lender's
10:55
process of assessing a borrower's
10:57
eligibility for a loan an underwriter
11:00
analyzes the risk and decides if it's
11:03
wise for the lender to approve the
11:06
loan don't worry a simple term is coming
11:10
your
11:11
way
11:19
contract a contract is a legally binding
11:22
agreement between two or more parties
11:25
outlining their rights and obligations I
11:28
told you it's easy next up is prime
11:38
rate the prime rate is the interest rate
11:42
Banks typically offer to their most
11:44
creditworthy customers often used as a
11:47
basis for determining rates on mortgages
11:50
personal loans and small business loans
11:53
this rate is particularly important for
11:56
calculating interest on variable rat
11:59
rate mortgages and other Financial
12:03
products rent I'm sure you know this
12:13
one rent is the regular payment made by
12:17
a tenant to a landlord typically on a
12:19
monthly basis in exchange for well the
12:23
right to occupy a
12:25
property moving on income approach
12:37
the income approach is an appraisal
12:39
method that calculates a property's
12:41
market value based on its potential
12:44
income generation using discounted cash
12:47
flow analysis appraisers estimate the
12:50
property's current value by considering
12:52
the present worth of future cash flows
12:55
that the owner can anticipate in a sense
12:58
it's about a determining a property's
13:00
value based on its money-making
13:03
potential principal payment guess it if
13:06
you
13:12
can a principal payment is the portion
13:15
of a loan payment that goes towards
13:17
reducing the initial borrowed amount by
13:21
making principal payments borrowers can
13:24
decrease the total debt owed and work
13:26
towards paying off their loan more
13:28
quickly
13:30
next one let's get
13:32
it
13:40
addendum an addendum is an addition to a
13:43
contract or agreement clarifying or
13:47
expanding upon the original terms to
13:49
ensure all parties have a clear
13:54
understanding material defect think fast
13:57
do you know what a material defect
14:03
is a material defect is a substantial
14:06
issue with a property that significantly
14:09
affects its value or poses a
14:12
considerable risk to the occupants or
14:15
users of the property almost there let's
14:19
crack open the next
14:20
word a pertinence take a step at this
14:24
strange term's meaning
14:28
go
14:33
a perance refers to an item such as a
14:36
fixture or Improvement that is attached
14:38
to a property and is transferred to the
14:41
new owner when the property is sold and
14:44
the little brother of a pertinence is a
14:56
pertinent a pertinent describ Vibes
14:59
something that is connected or belongs
15:02
to another thing either physically
15:04
attached or legally bound it's an
15:06
objective that highlights the
15:08
relationship between two connected
15:10
elements for instance a fancy chandelier
15:13
or a steel water tank things that are
15:16
installed onto the property and will
15:19
remain even if the property gets
15:22
sold conventional loan take a couple of
15:26
seconds and think this through
15:34
a conventional loan is a mortgage
15:36
provided by private lenders such as
15:39
Banks or credit unions without
15:41
government backing these loans available
15:44
through various lending institutions
15:46
typically require good credits and a
15:48
down payment offering an alternative to
15:51
government-backed options like FHA or VA
15:55
loans Bravo here comes the lesson one
16:00
amortization quick think on your feet
16:03
what is
16:11
amortization amortization is the
16:14
systematic process of paying off a loan
16:16
in equal installments over a set period
16:20
it's an accounting method that gradually
16:22
reduces the book value of a loan or
16:25
intangible asset through regular
16:28
payments ensuring a consistent and
16:31
predictable repayment
16:33
schedule you've made it now you're 30
16:37
Terms closer to passing your real estate
16:39
licensing exam now take a minute and
16:42
appreciate your new found knowledge and
16:45
the effort that you put in but do not
16:47
stop here if you want to Ace the exam
16:51
then check out our other videos stay
16:53
curious and persistent and we'll see you
16:56
in our other videos have happy studying
16:59
future real estate license Wizards
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