Real Estate Exam Definitions:


An evaluation or estimation of the value of a property conducted by a licensed appraiser. Appraisals are typically required during real estate transactions to determine fair market value. 

Buyer Representation Agreement:

A buyer representation agreement is a contract between a buyer and a broker. The broker agrees to represent the buyer in a trustworthy way. They put the buyer's needs before their own, and the buyer agrees that the broker or their salesperson will be their only representative. The buyer pays the broker directly, or the payment may come from the seller or listing broker at the end of the transaction, with everyone's consent.


A type of real estate ownership where individuals own units within a building or development and also have shared ownership of common areas, such as hallways, elevators, and recreational facilities.  


A legal right granted to a person or entity to use another person's property for a specific purpose, such as accessing a neighboring property or using a shared driveway.  


A process where a neutral third party holds and manages funds, documents, and other assets during a real estate transaction until all conditions of the sale are met.  

Listing Agreement:

A listing agreement is a written agreement between a property owner and a real estate broker. It gives the broker the authority to find a buyer or a tenant for a specific property. These agreements are personal contracts and cannot be given to another broker. However, the broker can assign the task of finding buyers to a salesperson or associate broker in their office.

Real Estate Agent:

A real estate agent is a licensed salesperson who works under a licensed broker. Even if the salesperson has their own broker's license, they are still referred to as a real estate agent.

Real Estate:

Real estate refers to the physical land, including everything above and below the surface, along with any structures on it. It's sometimes called real property, to distinguish it from personal belongings.


The term "realtor" is often mixed up with "real estate agent." However, a realtor is a member of the National Association of REALTORS® (NAR), which is a large organization with over one million members from various areas of the real estate industry. Only active brokers who are accepted into NAR boards at the state and local levels can use the trademarked term "REALTOR®."


A legal term referring to ownership rights and interests in a property. It confirms the owner's right to possess, use, and transfer the property.