Real Estate Cheat Sheet 2026

The 30 highest-yield Real Estate facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Earnest money in a purchase transaction is best described as: → A good-faith deposit demonstrating buyer's intent to purchase
2. The Gross Rent Multiplier (GRM) is calculated by dividing the: → Sale price by the annual gross rental income
3. A property owner requests permission to build a fence 2 feet from the property line instead of the required 5-foot setback. What must they apply for? → A variance
4. CAM (Common Area Maintenance) charges in a commercial lease are used to cover: → Shared costs for lobbies, parking lots, landscaping, and hallways
5. In a non-judicial (trustee's sale) foreclosure, the property is sold without: → Court supervision, using the power of sale clause in the deed of trust
6. RESPA (Real Estate Settlement Procedures Act) primarily protects consumers by: → Requiring disclosure of settlement costs and prohibiting kickbacks
7. In a net lease, operating expenses are paid by the: → Tenant in addition to base rent
8. Dual agency occurs when: → One agent represents both buyer and seller in the same transaction
9. The 'bundle of rights' in real estate includes all of the following EXCEPT: → Right to eminent domain
10. Tenancy in common differs from joint tenancy primarily because: → There is no right of survivorship
11. Owner's title insurance protects the: → Buyer's equity against title claims arising from pre-existing defects
12. Which government power allows land to be taken for public use such as a highway? → Eminent domain
13. A leasehold estate gives the tenant: → A temporary right to possess property under a lease
14. A cloud on title refers to: → Any outstanding claim, lien, or encumbrance that may impair the owner's clear title
15. The income approach to value is most commonly used for: → Income-producing investment properties
16. In an exclusive right-to-sell listing, the listing broker earns a commission if the property is sold by: → Any of the above
17. A right of first refusal gives a party the: → Opportunity to match any offer before the property is sold to another
18. Redlining is an illegal discriminatory practice in which lenders: → Deny or limit loans in minority neighborhoods based on race or national origin
19. Foreclosure is the legal process by which a lender: → Forces the sale of a property to recover an unpaid mortgage debt
20. TILA (Truth in Lending Act) requires lenders to disclose the: → Annual Percentage Rate (APR) and total finance charges
21. Which federal law requires sellers and landlords to disclose the presence of lead-based paint in housing built before 1978? → The Residential Lead-Based Paint Hazard Reduction Act
22. The Statute of Frauds requires that real estate contracts must be: → In writing and signed to be enforceable
23. Private Mortgage Insurance (PMI) is typically required when the borrower's down payment is: → Less than 20% of the purchase price
24. Specific performance as a remedy in real estate means: → The court orders the breaching party to complete the transaction
25. Adverse possession requires continuous, open, hostile possession for a statutory period in order to: → Acquire title to another's land
26. Which form of ownership gives the owner the greatest bundle of rights with no time limit? → Fee simple absolute
27. A holdover tenant who remains after the lease expires without permission becomes a: → Tenant at sufferance until the landlord acts
28. The sales comparison approach estimates value primarily by: → Comparing the subject property to recently sold similar properties
29. Which approach to value would an appraiser emphasize most when valuing a new single-family home? → Sales comparison approach
30. The primary role of a title company in a real estate transaction is to: → Search title records, issue title insurance, and facilitate closing