NY Real Estate Exam Prep

Real Estate Glossary

100+ plain-English definitions of every key term on the NY Real Estate Salesperson Exam — with exam tips on exactly how each concept is tested.

1

A

B

C

D

E

F

Fair Housing Act

Federal law prohibiting discrimination in the sale, rental, or financing of housing based on protected characteristics.

Fair Housing

Fee Simple

The highest and most complete form of real property ownership, with no conditions or limitations.

Real Property

Fiduciary Duty

The highest legal duty of care and loyalty an agent owes to their client in a real estate transaction.

Agency & Ethics

Fixture

Personal property that has been permanently attached to real property and is therefore considered part of the real estate.

Real Property

Foreclosure

The legal process by which a lender seizes and sells a property to recover unpaid mortgage debt after the borrower defaults.

Real Estate Finance

Freehold Estate

An estate in real property that lasts for an indefinite duration — either forever (fee simple) or for someone's lifetime (life estate).

Real Property

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

G

General Lien

A lien that attaches to all of a debtor's property. Both real and personal, rather than to a single specific property.

Liens & Encumbrances

Gross Lease

A lease in which the landlord pays all property expenses (taxes, insurance, maintenance) and the tenant pays a flat rental amount.

Property Management

Gross Rent Multiplier (GRM)

A quick valuation metric that divides a property's sale price by its gross annual or monthly rent.

Property Valuation

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

H

Homestead Exemption

A legal protection that shields a portion of a homeowner's equity from certain creditors and reduces property tax liability.

Liens & Encumbrances

Hypothecation

The act of pledging property as collateral for a loan without giving up possession of it.

Real Estate Finance

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

I

Income Approach

An appraisal method that estimates property value based on the income it generates, using capitalization of net operating income.

Property Valuation

Intestate

Dying without a valid will, causing property to be distributed according to state law rather than the deceased's wishes.

Real Property

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

J

Joint Tenancy

A form of co-ownership where two or more people hold equal shares with the right of survivorship.

Real Property

Judgment Lien

An involuntary general lien placed on a debtor's property as a result of a court judgment for money owed.

Liens & Encumbrances

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

K

Kickback

An illegal payment or referral fee given in exchange for directing business, prohibited under RESPA in mortgage transactions.

Real Estate Finance

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

L

Lead-Based Paint Disclosure

A federally required disclosure informing buyers and renters of known lead-based paint hazards in housing built before 1978.

Municipal Agencies

Lease

A contract that grants the right to possess and use property for a specified period in exchange for rent.

Property Management

Lien

A legal claim against a property that secures the payment of a debt or obligation.

Liens & Encumbrances

Life Estate

An ownership interest in real property that lasts only for the lifetime of a specified person.

Real Property

Lis Pendens

A recorded notice that a lawsuit involving real property is pending, alerting potential buyers or lenders of the legal dispute.

Liens & Encumbrances

Listing Agreement

A contract between a property owner and a real estate broker authorizing the broker to find a buyer.

Agency & Ethics

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

M

Market Value

The most probable price a property would bring in a competitive, open market under fair sale conditions.

Property Valuation

Mechanic's Lien

An involuntary lien filed by a contractor, subcontractor, or supplier who has not been paid for work performed on a property.

Liens & Encumbrances

Metes and Bounds

A method of describing land using compass directions, distances, and natural or man-made landmarks to trace the property boundaries.

Real Property

Mill Rate

A property tax rate expressed as the tax per $1,000 of assessed property value, one mill equals one-tenth of one cent.

Real Estate Math

Mortgage

A loan secured by real property, where the borrower pledges the property as collateral for repayment.

Real Estate Finance

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

N

Net Lease

A lease in which the tenant pays base rent plus some or all property operating expenses.

Property Management

Net Operating Income (NOI)

A property's gross income minus operating expenses, before mortgage payments and income taxes.

Property Valuation

Nonconforming Use

A property use that was legal when established but no longer complies with current zoning regulations.

Land Use Regulations

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

O

Offering Plan

A legal document filed with the NY Attorney General that discloses all material information about a condominium or cooperative offering.

Co-ops & Condos

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

P

Personal Property (Chattel)

Movable property that is not permanently attached to land — furniture, vehicles, appliances, and other possessions.

Real Property

Police Power

The government's authority to regulate private property use to protect public health, safety, and welfare, without paying compensation.

Real Property

Power of Attorney

A legal document authorizing one person to act on behalf of another in legal or financial matters.

Contracts

Principal and Interest (P&I)

The two components of a standard mortgage payment — principal reduces the loan balance; interest is the cost of borrowing.

Real Estate Finance

Procuring Cause

The broker whose continuous, unbroken efforts directly led to a buyer's decision to purchase.

Agency & Ethics

Property Management

The operation, oversight, and administration of real estate on behalf of the property owner.

Property Management

Proprietary Lease

The lease agreement between a cooperative corporation and a shareholder-tenant, granting the right to occupy a specific unit.

Co-ops & Condos

Proration

The division of ongoing property expenses between buyer and seller based on the closing date.

Real Estate Math

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

Q

Quiet Title Action

A lawsuit filed to establish clear ownership of real property and remove any claims or clouds on the title.

Deeds & Title

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

R

Real Property

Land and everything permanently attached to it, including buildings, fixtures, and the rights that come with ownership.

Real Property

Recording

The act of filing a deed or other document in the county clerk's office to provide public notice of a real estate interest.

Deeds & Title

Redlining

The illegal practice of denying mortgage loans, insurance, or other services to residents of certain neighborhoods based on demographics.

Fair Housing

Rent Stabilization

A New York State law that limits annual rent increases and provides tenants with lease renewal rights in qualifying buildings.

Property Management

RESPA

The Real Estate Settlement Procedures Act, a federal law governing disclosures and prohibiting kickbacks in residential mortgage transactions.

Real Estate Finance

Right of Survivorship

The automatic transfer of a deceased co-owner's interest to the surviving co-owners, bypassing probate.

Real Property

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

S

Salesperson License

The entry-level NY real estate license, allowing the holder to perform brokerage activities under a sponsoring broker's supervision.

License Law

Security Deposit

Money collected by a landlord from a tenant at the start of a lease to cover potential damages or unpaid rent.

Property Management

Specific Lien

A lien that attaches to one particular property rather than to all of a debtor's assets.

Liens & Encumbrances

Specific Performance

A court order requiring a party who breached a real estate contract to actually complete the transaction.

Contracts

Statute of Frauds

A law requiring certain contracts, including real estate sales contracts to be in writing to be enforceable.

Contracts

Steering

The illegal practice of guiding buyers or renters toward or away from neighborhoods based on their protected class.

Fair Housing

Subdivision

The division of a larger parcel of land into smaller lots for sale or development, subject to local approval.

Land Use Regulations

Survey

A precise measurement and mapping of a property's boundaries, area, and physical features by a licensed surveyor.

Real Property

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

T

Tenancy by the Entirety

A form of co-ownership available only to married couples, with the right of survivorship and protection from individual creditors.

Real Property

Tenancy in Common

A form of co-ownership where two or more people hold separate, divisible shares with no right of survivorship.

Real Property

Title Insurance

Insurance that protects against financial loss from defects in a property's title that existed before the policy was issued.

Deeds & Title

Transfer Tax

A tax imposed on the transfer of real property ownership, paid at the time the deed is recorded.

Real Estate Math

Trust Account

A separate bank account where a broker holds client funds, keeping them segregated from the broker's personal or business money.

License Law

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

U

Usury

Charging an interest rate on a loan that exceeds the legal maximum allowed by state law.

Real Estate Finance

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

V

Variance

An official exception granted by a zoning board that allows a property to deviate from zoning requirements.

Land Use Regulations

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

W

Warranty Deed (General Warranty Deed)

A deed in which the grantor guarantees clear title and agrees to defend against all claims — past and present.

Deeds & Title

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

Y

Yield

The actual return on an investment, expressed as a percentage, taking into account the price paid and income received.

Real Estate Finance

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

Z

Zoning

Government regulations that divide land into zones and restrict how property in each zone may be used.

Land Use Regulations

Unlock the full glossary with Unlocked Access — $59

Sign up free to preview Chapters 1–3 and the A–E glossary →

Ready to pass the NY Real Estate Exam?

Unlocked turns these concepts into questions you can actually answer. Practice exams, flashcards, and Carl your AI tutor.

Start studying free →