50 Real Estate Flashcards for Exam Prep [+ Free Download]

Real estate flashcards include concepts and questions that commonly appear on the real estate licensing exam. Studying with these flashcards allows students to master real estate topics and pass the exam with ease. To help aspiring agents, we’ve included 50 free real estate flashcards below that cover property law, finance, basic terminology, and ethics.

However, students need more than just flashcards to pass the real estate licensing exam. Each state requires prelicensing education that can be difficult to fit into your schedule. Real Estate Exam Scholar makes it easy, however, with online-based coursework that you can access at any time. Visit their website for more information to learn more about their highly reviewed program.

Real Estate Exam Scholar

Download 50 Real Estate Flashcards for Free

The best real estate flashcards cover all topics on the licensing exam and include sample explanations to help students thoroughly understand real estate concepts. Download our 50 free real estate flashcards below to get everything you need to study for your exam.

50 Real Estate Flashcards for Exam Prep

The real estate licensing exam, while different in each state, generally includes questions on realty practice, real estate law, terminology, financial responsibilities, and ethics. To help you with your exam prep, we created flashcards in these exact categories. Each category, listed below, has 10 questions.

Here are 50 real estate flashcard questions covering all five exam topics:

General Real Estate Property Flashcards

General property questions are designed to test your knowledge of the rights of ownership and responsibilities of the homeowner. These questions usually apply to the process of buying or selling a property and the rights of the owner once they take possession of the property.

Question 1: Can a property owner block an easement?

Answer: No. A property owner cannot block or restrict access to the property easement because these places are used by public utility companies and community organizations.

Question 2: What is a mutual recognition agreement?

Answer: A mutual recognition agreement—sometimes called reciprocity—provides a real estate agent with the ability to represent buyers and sellers in two states. Both states recognize the licensing education credentials.

Question 3: What are the physical characteristics of real estate?

Answer: The three physical characteristics of real estate include immobility, indestructibility, and uniqueness.

Question 4: What does DUST stand for in real estate?

Answer: DUST is the acronym for the four economic characteristics in real estate. It stands for Demand, Utility, Scarcity, and Transferability.

Question 5: Is an old department store converted into shopping space on the first floor & apartments on the second floor an example of non-conforming use?

Answer: Yes. When a space is approved by the zoning commission and used in a way that changes the zoning without a new application, it is an example of non-conforming use.

Question 6: Does the percolation test prove the quality of air for a community?

Answer: No. The percolation test looks at the water runoff in an area to see if it is fit for a septic system for residential or commercial properties.

Question 7: What does PETE stand for in real estate?

Answer: PETE stands for Police power, Eminent domain, Taxation, and Escheat (dying without an heir). These are the rights of the government over the individual regarding property ownership.

Question 8: What is a life estate?

Answer: A life estate is property only under the ownership of a person during their lifetime. After death, the property automatically reverts back to the original owner and is not a part of their estate. One example might be someone who gives their mother a home to live in for her life, but the home reverts to original ownership upon her death.

Question 9: What is a period-to-period lease?

Answer: A period-to-period lease, or periodic tenancy, means that the lease on a property automatically renews for as long as the rent is paid and the owner does not change the lease contract.

Question 10: What does estate at sufferance mean?

Answer: Estate at sufferance means that someone has failed to vacate a piece of property after the expiration of the lease or default on the mortgage. The person is living at a property without the consent of the owner.

Real Estate Law Flashcards

Real estate law covers state and national legal decisions that impact real estate sales. It’s important to know that these flashcards test primarily national law, though all licensing exams will have questions that pertain to state laws. Knowing these laws helps an agent avoid violating the law.

Question 1: What is Megan’s Law?

Answer: Megan’s Law deals with sexual predator disclosures in a location. If a buyer asks about sexual predators in a neighborhood, the agent should tell them to visit the Sex Offender Registry website to find out if there are known offenders in the neighborhood.

Question 2: What level of government regulates the zoning laws for an area?

Answer: The local government has the power to regulate area zoning laws to meet the needs of their community. There are no national or statewide zoning ordinances allowed in real estate.

Question 3: What are the two ways that the government can take privately held land or real estate?

Answer: Eminent domain and escheat. Eminent domain is the process of taking land for the use and good of the community, such as expanding a highway. Escheat happens when the government takes a property after the owner has died without heirs.

Question 4: How does the Americans with Disabilities Act (ADA) impact housing?

Answer: The ADA requires physical access to housing for those with disabilities and requires equal opportunities for housing for those with disabilities or handicaps.

Question 5: Does a property owner have the right to dispose of (sell) a property?

Answer: Yes. The property owner is the only person who can sell property legally.

Question 6: Can a property owner block off a stream at the cost of other owners?

Answer: Yes. The doctrine of prior appropriation says that the first person to divert water from a stream for their own use has the right to do so—even at the cost of other owners.

Question 7: What is the Federal Fair Housing Act (1968)?

Answer: The Federal Fair Housing Act requires that all individuals be treated the same when buying or leasing property. The seller or agent cannot discriminate based on race, religion, sex, or origin.

Question 8: How is an offer legally terminated?

Answer: An offer can be terminated by failure to meet the due date, rejection by the seller, withdrawal by the buyer, or ruling by law.

Question 9: What does the statute of frauds require to be enforceable?

Answer: The statute of frauds requires that the contract be in writing—not verbal—to be legally enforceable in court.

Question 10: What are subsurface rights for real estate?

Answer: Subsurface rights are any benefits from below the land owned by an individual, like minerals, oil, gas, and water.

Basic Real Estate Terminology Flashcards

Real estate definitions are a large part of the licensing exam. These definitions cover all subject areas and give agents a fundamental understanding of real estate operations and transactions. The definitions below are applicable in every state, though some states might have additional definitions based on unique real estate markets.

Term 1: Competitive Market Analysis (CMA)

Definition: A full report that the real estate agent gives about the market to a potential buyer or seller indicating a property’s value based on factors like community sales and quality of area homes. The agent must only represent the CMA as their educated opinion—not an appraisal.

Term 2: Agreement of Purchase & Sale

Definition: The sales price of a property agreed upon by the buyer and owner of the property.

Term 3: ARV

Definition: After-Repair Value—what the property is worth when all repairs are made by the seller.

Term 4: Balloon Mortgage

Definition: Typically a short-term mortgage with no or interest-only payments, requiring the carrier of the loan to pay off the entire mortgage in full at the end of the agreed-upon term.

Term 5: Earnest Money Deposit

Definition: The amount of money a buyer offers the seller to assure they have an interest in completing a purchase. This is separate from a down payment, but is often folded into the down payment when the sale is finalized.

Term 6: Contingency

Definition: Contingency is a legal statement declaring that a certain number of requirements must be met by the buyer or seller before the sales contract can be finalized.

Term 7: Real Property

Definition: Real Property comprehensively refers to a physical property—including elements such as buildings, land, and property fixtures—as well as the rights of ownership.

Term 8: Fixture

Definition: Anything permanently attached to the property like a well, patio, or shed on the land.

Term 9: Hereditament

Definition: Hereditament is the land and property that passes from family member to family member through inheritance.

Term 10: Stigmatized Property

Definition: A property where an unfavorable event—like a suicide or murder—happened. This negatively affects the ability of the seller to find a buyer.

Fiduciary & Financial Flashcards

Fiduciary responsibilities cover the implied trust and privacy between the agent and the buyer or seller. Financial duty examines the way that contracts are handled on both sides of a sale. There are different state and national fiduciary and financial obligations for the real estate agent, but below are some of the most common ones.

Question 1: What is RESPA & what is its purpose in real estate?

Answer: The Real Estate Settlement Procedures Act (RESPA) focuses on disclosing how much interest a mortgage will cost over time and what the total payback amount will be over the life of the loan.

Question 2: Can one agent represent both the buyer & the seller?

Answer: No. However, one broker can represent the buyer and seller with different agents—or dual agents—in their office.

Question 3: How do Veterans Affairs (VA) entitlements protect the lender?

Answer: VA entitlements are the protected amount of money promised to the lender if the person approved for the mortgage defaults on the loan.

Question 4: How is Loan-to-Value (LTV) calculated for a property?

Answer: The loan amount is divided by the price of the sale or appraisal value (whichever is lower) to get the amount of the LTV.

Question 5: Are closing costs included in the purchase price?

Answer: No. Closing costs are additional fees for services like deed recording and appraisal of the property necessary to make the sale legal.

Question 6: What are points?

Answer: Points are the fees paid directly to a lender at closing in exchange for a reduced interest rate.

Question 7: When is ad valorem collected?

Answer: Ad valorem is the sales tax due when the transaction or purchase of a home takes place.

Question 8: Why is usury against the law?

Answer: Usury is the unfair practice of overcharging interest rates. If the average market interest rate is 14% and the lender is offering 30%, then this would be an example of usury.

Question 9: What are REITs in real estate?

Answer: Real Estate Investment Trusts—or REITs—are joint property investments by individuals and groups. Each investing entity contributes a set amount and then receives a proportional return when the property sells.

Question 10: How do you calculate NOI?

Answer: Net Operating Income (NOI) includes all property revenue (from rentals, for example) after considering the total losses and expenditures required to fix or maintain the property.

Ethics Real Estate Flashcards

Real estate ethics covers how agents and brokers act before, during, and after the sale of a property. This includes engagement with clients and other agents. Ethics questions are generally presented on the licensing exam in true/false format.

True/False Statement 1: Agents are prohibited by law from making a referral for companies that do home appraisals.

Answer: True. Home appraisal is independent of the agent and the agent cannot suggest a certain company be used for the process.

True/False Statement 2: The Ethics Code is based on the motto, “Let the buyer beware.”

Answer: False. All real estate ethics codes are based on the motto, “Let the public be served,” meaning that the agent must do what serves the client first.

True/False Statement 3: A real estate agent is free to take any client.

Answer: False. If your client is already signed or showing with another buyer or seller agent, then you cannot take the client or the listing until the contract is expired.

True/False Statement 4: Virtually staging homes or editing pictures is acceptable as long as you disclose the edits openly.

Answer: True. Any time that images or videos are edited to include things that the client will not see upon visiting the property, the agent should disclose their edits to prospective buyers.

True/False Statement 5: It is acceptable to steer a client toward a neighborhood or area that fits them best.

Answer: False. While in most states this remains an ill-advised, unethical practice, it is actually illegal in California.

True/False Statement 6: You can show a property to buyers even if there are offers on the table with the seller.

Answer: True. You can show these properties to potential buyers, but you should let the client know that the seller has offers and might complete a sale.

True/False Statement 7: You should focus on showing high commission properties &d not low commission properties to increase your income.

Answer: False. If you sign with a seller to show their property, then the ethical thing to do is to show their home regardless of commission structure.

True/False Statement 8: Agents can represent family members as long as they disclose their relationship to the buyer or seller.

Answer: True. Article 5 of the NAR Code of Ethics states that real estate agents must disclose their connection to family members to any buyers or sellers.

True/False Statement 9: You can keep all client money in one escrow as long as you keep the entries separate & clear.

Answer: False. According to Article 8 of the Ethics Code, every client should have their own escrow account separate of other clients.

True/False Statement 10: You can share the reasons why a seller is putting a property on the market.

Answer: False. Clients have an expectation of privacy that should not be violated.

Alternatives to Real Estate Flashcards for Exam Prep

If you are nervous about taking the real estate licensing exam, you might consider supplementing your flashcards with additional exam prep. Consider the following options for prep classes, study guides, and practice tests that will help you ace the exam.

Here are three exam prep providers to consider:

Real Estate Express

Real Estate Express offers a coach who focuses on your specific state concepts and your progress with the material. Also, their proprietary Exam Prep Master offers 17 timed practice exams and over 900 questions that mirror the atmosphere of taking the real estate exam. Exam Prep Master is $99 and comes with a Pass or Don’t Pay guarantee.

Mbition – Learn Real Estate (formerly Career Webschool)

Mbition – Learn Real Estate offers a suite of study tools, practice questions, and timed tests that can be accessed via an intuitive dashboard. Additionally, Mbition highlights areas of weakness so you can double down on topics that are tripping you up. For $59, potential agents can get exam prep tailored to their needs; the platform’s predictive technology identifies your weak points and gives you the material you need to focus on.

PrepAgent

PrepAgent includes online videos, webinars, practice tests, and audio lessons to help test takers focus on the subjects needed to pass the exam. PrepAgent access costs $49 for a week, $69 for a month, or $89 for a year with a money-back guarantee. Get the PrepAgent free practice exam and find out more about their money back guarantee.

“Go in [to the test] with a positive attitude and do your best. Not everyone passes on the first try—the Department of Real Estate doesn’t expect everyone to pass on the first attempt. That’s why there are follow-up exams administered. Don’t stress. The most important real estate prep is in the real world, ahead of you!”

– Jennifer Okhovat, Realtor, Jenny O Homes Real Estate

Frequently Asked Questions (FAQs)

What are the fees for a prep class & real estate license?

Prep classes for the real estate prep classes can cost between $400 and $1,000, depending on your state. Some states require extra hours and classes that increase the price. Once you pass the exam, it will cost about $325 for your real estate license and application, depending on your state. If your state requires a background check or fingerprints, you can add about $125 to the total.

What score do I need to pass the real estate exam?

Most states require potential agents to get 70% to 75% of the exam questions correct to pass. If you do not pass the exam the first time, then you can retake it again after 21 days (in most states). It is best to check with your real estate board to get the correct pass rate for your state.

Can I take the real estate exam online?

No. While you may be able to take your real estate exam prep classes online, you cannot take your real estate exam online. You must register through your state Real Estate Commission website and bring your identification to the predetermined testing location at a scheduled time to take your exam.

Bottom Line

Real estate flashcards for exam prep help potential real estate agents master topics that will be tested on the real estate licensing exam. Our 50 flashcards above cover all of the topics on the exam, including general real estate information, law, terminology, financials, and ethics. Download them and use them to study as you prepare to take the exam.

Flashcards aren’t the only tool needed to get your license. Be sure you sign up for prelicensing coursework to meet your state’s education requirements. Real Estate Exam Scholar makes this easy by providing all courses online so you can access them on your schedule. Learn about the Real Estate Exam Scholar Pass or Don’t Pay guarantee by signing up today.

Real Estate Exam Scholar