REA-FC3 2025

A lease agreement that barely covers the costs of operation for the property.

• Marginal lease

• Standard lease

• Premium lease

• Subsidized lease

A misstatement of a material fact made with intent to deceive or made with reckless disregard of the truth and that actually does deceive.

• Fraud

• Mistake

• Negligence

• Deception

Incomplete right, such as a wife’s dower interest in her husband’s property during his life.

• Inchoate right

• Contingent right

• Absolute right

• Future right

A person’s present right to an interest in real property that will not result in possession or enjoyment until sometime in the future.

• Future interest

• Present interest

• Contingent interest

• Leasehold interest

A contract between the owner of income property and a management firm or individual property manager outlining the scope of the manager’s authority.

• Management agreement

• Lease agreement

• Service contract

• Property deed

The right to purchase property within a definite time at a specified price.

• Option

• Leasehold

• Option to Purchase

• Right of First Refusal

Items, called chattels, that do not fit into the definition of real property; movable objects.

• Real property

• Personal property

• Intangible assets

• Fixed assets

A person licensed by the state as a broker who is also the broker of record for a real estate sales office.

• Managing broker

• Real estate agent

• Property manager

• Sales associate

A loss of utility due to the physical deterioration of the asset or its components resulting from its age and normal usage.

• Physical Obsolescence

• Functional Obsolescence

• Economic Obsolescence

• Environmental Obsolescence

A contract under which the agreement of the parties is demonstrated by their acts and conduct.

• Express contract

• Implied contract

• Unilateral contract

• Bilateral contract