Real Estate License Key Vocabulary
Essential terms and definitions you must know before exam day.
Key Vocabulary
Dual agency
When one agent or brokerage represents both buyer and seller in the same transaction.
LTV
Loan-to-Value ratio — the mortgage amount as a percentage of the property value.
Contingency
A condition in a contract that must be met before the transaction closes.
Earnest money
A good-faith deposit by the buyer, held in escrow, applied toward the purchase price at closing.
Vocabulary Study Tips
- 1.Memorize the 7 federal Fair Housing protected classes — they appear on every state exam.
- 2.Agency relationships are heavily tested — know the difference between all types in your state.
- 3.Practice math problems daily: commission, proration, loan-to-value, mortgage calculations.
- 4.Use PrepAgent, CompuCram, or Real Estate Exam Scholar — they have high alignment to real exams.