RES Cheat Sheet 2026

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

1. Which of the following best defines an amortized loan? → A loan that is paid off with a fixed payment schedule over time
2. Which of the following is the primary goal of a real estate investor? → To achieve the highest possible return on investment (ROI)
3. Which type of depreciation is typically considered incurable? → External (economic) obsolescence caused by factors outside the property
4. What is eminent domain? → The government's power to take private property for public use with just compensation
5. What are riparian rights? → The rights of property owners whose land borders a natural waterway to use that water
6. Which of the following is a primary responsibility of a property manager? → Maintaining and managing the physical property
7. In a real estate transaction, what is an "escrow account" used for? → To hold and manage funds for property taxes and insurance
8. Functional obsolescence in a property refers to: → Loss in value due to outdated design, poor floor plan, or inadequate features
9. The Income Approach to value is most appropriate for: → Investment or income-producing properties such as apartment buildings
10. What is earnest money in a real estate transaction? → A deposit made by the buyer to demonstrate serious intent to purchase the property
11. What is the purpose of a lease agreement in property management? → To outline the terms and conditions under which the tenant rents the property
12. Which of the following is true about the statute of frauds as it relates to real estate transactions? → Contracts for the sale of real estate must be in writing to be enforceable.
13. Which of the following is considered a benefit of investing in real estate? → The potential for property appreciation over time
14. Which type of ownership allows for the property to automatically pass to the surviving co-owner(s) upon the death of an owner? → Joint tenancy with right of survivorship
15. The Sales Comparison Approach to value is primarily based on: → Recent sales of similar properties in the area
16. Net Operating Income (NOI) in the Income Approach is calculated as: → Effective Gross Income minus Operating Expenses (excluding debt service)
17. What is an easement in real estate? → A legal right to use another person's property for a specific purpose
18. The Cost Approach to value estimates: → The cost to reproduce or replace improvements plus land value, minus accrued depreciation
19. What is the primary function of a mortgage lender in a real estate transaction? → To provide financing to the buyer for purchasing the property
20. What is the "cash-on-cash return" in real estate investing? → The annual return on the actual cash invested in the property
21. Which of the following describes "leverage" in real estate investment? → Using borrowed capital to increase the potential return on investment
22. What is the primary purpose of a deed in a real estate transaction? → To convey ownership of real property from one party to another
23. What is a lien in the context of real estate? → A legal claim against a property as security for a debt
24. What is a loan-to-value (LTV) ratio? → The percentage of a property's value that is financed by the mortgage
25. What is a purchase money mortgage? → A mortgage provided by the seller to finance part of the purchase price
26. What is a "security deposit" used for in a rental property? → To cover potential damage or unpaid rent after the tenant vacates
27. In appraisal, depreciation is defined as: → Any loss in value from any cause
28. What is Private Mortgage Insurance (PMI) typically required for? → Loans with a down payment of less than 20%
29. What is a mortgage point? → A fee equal to 1% of the loan amount paid upfront to reduce the interest rate
30. In the Income Approach, the capitalization rate (cap rate) is used to: → Convert net operating income into an estimate of property value