ACEABLE REAL ESTATE COMPREHENSIVE EXAM 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔fee simple estate - ✔✔maximum ownership of real property; also called a fee or a
fee simple absolute and is of indefinite duration, freely transferable, and freely
inheritable
✔✔FHA - ✔✔the federal housing administration; government agency charged with
insuring mortgages
✔✔FICO score - ✔✔a credit scoring system created by the Fair Isaac Corporation
✔✔fiduciary - also in Level 24 - ✔✔an individual upon whom is placed the highest levels
of trust and confidence when acting on behalf of another
✔✔fiduciary duties - ✔✔the full sum of obligations owed to the client in an agency
relationship that ensure that the agent always acts in the best interest of the client
✔✔first substantive contact - ✔✔the critical point at which agency disclosure is required
by a license holder; generally occurs at the first face-to-face meeting with the customer
and prior to the sharing of any confidential information or initiation of any action in
regards to a specific property
✔✔fixity - ✔✔refers to the fact that real estate exists in a fixed location and cannot be
moved; describes this truth about land from an economic viewpoint
✔✔fixture - ✔✔an object that was once personal property but *is now firmly attached to
the land* in such a way that it is considered to be real property
✔✔foreclosure - ✔✔the legal process whereby a lender takes control of a property held
by a borrower in default and sells it to recover the lender's losses
✔✔fraud - ✔✔wrongful or criminal deception intended to result in financial or personal
gain
✔✔freehold estate - ✔✔a form of ownership with an indeterminate length
✔✔freehold tenant - ✔✔the owner of a freehold estate
✔✔Freon - ✔✔the trademarked name of a harmful chlorofluorocarbon found in older air
conditioning units
,✔✔functional obsolescence - ✔✔loss of value because a property's function or
appearance has gone out of style or has been replaced by a more appealing or effective
version
✔✔general agency - ✔✔an agent who is authorized to manage all of a principal's affairs
within certain specified areas; enjoys broader authority than that of a special agent but
less than that of a universal agent
✔✔general lien - ✔✔a lien for which the real estate and personal property may be sold
to satisfy the debt
✔✔general partnership - ✔✔a business entity in which all co-owners actively share
power, responsibilities, and profit
✔✔general warranty deed, a.k.a. full covenant and warranty deed - ✔✔the act of
documenting any transfer or claim of interest in the title to real property in public records
per state law, a.k.a. full covenant and warranty deed
✔✔Government National Mortgage Association (Ginnie Mae) - ✔✔a government-owned
entity that supports the secondary mortgage market by guaranteeing mortgage-backed
securities (MBS) insured by the U.S. government
✔✔graduated lease - ✔✔a lease in which the rental rate increases over time in specific
increments
✔✔graduated-payment mortgage - ✔✔a fixed-rate mortgage that has a lower initial
interest rate in its first years, but includes gradual increases each year
✔✔grantee - ✔✔the person who receives a conveyance of real property in a transaction
✔✔grantor - ✔✔the person who conveys real property in a real estate transaction
✔✔gross lease - ✔✔lease in which the tenant will be responsible for the payment of a
fixed monthly charge, while the landlord is responsible for paying all operating
expenses, a.k.a. full service lease
✔✔gross rent multiplier (GRM) - ✔✔the ratio of the price of investment property to its
annual rental income before considering expenses like taxes and insurance, etc
✔✔ground lease - ✔✔also known as a land lease, it is the lease of bare, undeveloped
land
✔✔groundwater - ✔✔water held underground in the soil or in pores and crevices in rock
, ✔✔group boycott - ✔✔an agreement between two or more competitors to not do
business with another competitor for the purpose of inducing the other competitor to
change its business practices or fail altogether; considered an antitrust violation
✔✔habendum clause - ✔✔a clause within a deed that clarifies the type and extent of
interest conveyed by the granting clause
✔✔highest and best use - ✔✔the use of a property which is legal, physically possible,
financially viable, and produces the greatest yield
✔✔holographic will - ✔✔a handwritten will created solely by the testator and not
witnessed
✔✔home equity loan - ✔✔a loan in which funds are borrowed using the homeowner's
equity for collateral; the funds can be used for any purpose
✔✔homestead laws - ✔✔laws which protect a homeowner from loss of their principal
residence from the claims of most creditors and require both spouses to execute any
instruments of conveyance
✔✔hypothecation - ✔✔the pledging of an asset as collateral to secure a loan without
delivery of title, possession, or other ownership rights
✔✔implied agency - ✔✔agency that is created by the actions, conduct, and words of
either or both parties without ever being expressly requested
✔✔implied contract - ✔✔a contract created by the actions of the parties rather than by
express agreement
✔✔improvement - ✔✔any non-natural structure built on or affixed to land
✔✔income capitalization approach - ✔✔method of estimating the value of a property by
applying a rate of return to the net income it produces
✔✔independent contractor - ✔✔one who contracts to do work according to their own
methods, and is responsible to their employer only as to the results of that work
✔✔informed consent - ✔✔the principle that a client or customer must understand and
agree to certain actions or agency relationships prior to implementation
✔✔instrument of conveyance - ✔✔a tool that transfers a grantor's interest in real
property
✔✔Interest - ✔✔additional money paid to a lender for the use of their money
QUESTIONS AND SOLUTIONS RATED A+
✔✔fee simple estate - ✔✔maximum ownership of real property; also called a fee or a
fee simple absolute and is of indefinite duration, freely transferable, and freely
inheritable
✔✔FHA - ✔✔the federal housing administration; government agency charged with
insuring mortgages
✔✔FICO score - ✔✔a credit scoring system created by the Fair Isaac Corporation
✔✔fiduciary - also in Level 24 - ✔✔an individual upon whom is placed the highest levels
of trust and confidence when acting on behalf of another
✔✔fiduciary duties - ✔✔the full sum of obligations owed to the client in an agency
relationship that ensure that the agent always acts in the best interest of the client
✔✔first substantive contact - ✔✔the critical point at which agency disclosure is required
by a license holder; generally occurs at the first face-to-face meeting with the customer
and prior to the sharing of any confidential information or initiation of any action in
regards to a specific property
✔✔fixity - ✔✔refers to the fact that real estate exists in a fixed location and cannot be
moved; describes this truth about land from an economic viewpoint
✔✔fixture - ✔✔an object that was once personal property but *is now firmly attached to
the land* in such a way that it is considered to be real property
✔✔foreclosure - ✔✔the legal process whereby a lender takes control of a property held
by a borrower in default and sells it to recover the lender's losses
✔✔fraud - ✔✔wrongful or criminal deception intended to result in financial or personal
gain
✔✔freehold estate - ✔✔a form of ownership with an indeterminate length
✔✔freehold tenant - ✔✔the owner of a freehold estate
✔✔Freon - ✔✔the trademarked name of a harmful chlorofluorocarbon found in older air
conditioning units
,✔✔functional obsolescence - ✔✔loss of value because a property's function or
appearance has gone out of style or has been replaced by a more appealing or effective
version
✔✔general agency - ✔✔an agent who is authorized to manage all of a principal's affairs
within certain specified areas; enjoys broader authority than that of a special agent but
less than that of a universal agent
✔✔general lien - ✔✔a lien for which the real estate and personal property may be sold
to satisfy the debt
✔✔general partnership - ✔✔a business entity in which all co-owners actively share
power, responsibilities, and profit
✔✔general warranty deed, a.k.a. full covenant and warranty deed - ✔✔the act of
documenting any transfer or claim of interest in the title to real property in public records
per state law, a.k.a. full covenant and warranty deed
✔✔Government National Mortgage Association (Ginnie Mae) - ✔✔a government-owned
entity that supports the secondary mortgage market by guaranteeing mortgage-backed
securities (MBS) insured by the U.S. government
✔✔graduated lease - ✔✔a lease in which the rental rate increases over time in specific
increments
✔✔graduated-payment mortgage - ✔✔a fixed-rate mortgage that has a lower initial
interest rate in its first years, but includes gradual increases each year
✔✔grantee - ✔✔the person who receives a conveyance of real property in a transaction
✔✔grantor - ✔✔the person who conveys real property in a real estate transaction
✔✔gross lease - ✔✔lease in which the tenant will be responsible for the payment of a
fixed monthly charge, while the landlord is responsible for paying all operating
expenses, a.k.a. full service lease
✔✔gross rent multiplier (GRM) - ✔✔the ratio of the price of investment property to its
annual rental income before considering expenses like taxes and insurance, etc
✔✔ground lease - ✔✔also known as a land lease, it is the lease of bare, undeveloped
land
✔✔groundwater - ✔✔water held underground in the soil or in pores and crevices in rock
, ✔✔group boycott - ✔✔an agreement between two or more competitors to not do
business with another competitor for the purpose of inducing the other competitor to
change its business practices or fail altogether; considered an antitrust violation
✔✔habendum clause - ✔✔a clause within a deed that clarifies the type and extent of
interest conveyed by the granting clause
✔✔highest and best use - ✔✔the use of a property which is legal, physically possible,
financially viable, and produces the greatest yield
✔✔holographic will - ✔✔a handwritten will created solely by the testator and not
witnessed
✔✔home equity loan - ✔✔a loan in which funds are borrowed using the homeowner's
equity for collateral; the funds can be used for any purpose
✔✔homestead laws - ✔✔laws which protect a homeowner from loss of their principal
residence from the claims of most creditors and require both spouses to execute any
instruments of conveyance
✔✔hypothecation - ✔✔the pledging of an asset as collateral to secure a loan without
delivery of title, possession, or other ownership rights
✔✔implied agency - ✔✔agency that is created by the actions, conduct, and words of
either or both parties without ever being expressly requested
✔✔implied contract - ✔✔a contract created by the actions of the parties rather than by
express agreement
✔✔improvement - ✔✔any non-natural structure built on or affixed to land
✔✔income capitalization approach - ✔✔method of estimating the value of a property by
applying a rate of return to the net income it produces
✔✔independent contractor - ✔✔one who contracts to do work according to their own
methods, and is responsible to their employer only as to the results of that work
✔✔informed consent - ✔✔the principle that a client or customer must understand and
agree to certain actions or agency relationships prior to implementation
✔✔instrument of conveyance - ✔✔a tool that transfers a grantor's interest in real
property
✔✔Interest - ✔✔additional money paid to a lender for the use of their money
