Mortgage Types and Loan Instruments

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This lesson walks through the major loan types tested on the exam — conventional, FHA, VA, and adjustable-rate mortgages — along with the distinction between a mortgage and a promissory note, since candidates frequently confuse the security instrument with the debt instrument itself.

We also cover the foreclosure process and the difference between judicial and non-judicial foreclosure, along with the borrower's right of redemption where applicable.

Property Ownership and Land Use

Types of Property Ownership Land Use Controls and Zoning Easements, Liens, and Encumbrances

Contracts and Real Estate Transactions

Essential Elements of a Valid Contract Listing Agreements and Purchase Contracts Contract Termination and Breach

Brokerage Relationships and Agency Management

Types of Agency Relationships Fiduciary Duties Owed to Clients Broker and Agent Licensing Requirements

Fair Housing and Real Estate Law

The Fair Housing Act and Protected Classes Advertising and Disclosure Compliance

Real Estate Financing

Mortgage Types and Loan Instruments Loan-to-Value and Qualifying Ratios

Real Estate Math

Commission Splits and Proration Calculations Area, Value, and Appreciation Calculations

Closing the Transaction

The Closing Process and Settlement Statement Title Transfer and Deed Types