Real Estate Exam Vocabulary Terms 51-100 | Key Concepts Explained

[00:00:00]hello everybody it's zac here from real estate license wizard.com today i'm going over another 50 of our 250 50 real estate exam vocab terms these rooms are super important to know and of course yes you do need to know all of them for the real estate exam before i jump right into it if you want a full text version of all these vocab terms head over to our site real estate license wizard dot com anyways a buckle up and of course do me a favor and hit that like button and subscribe for more real estate exam related stuff all right guys let's do this so as this works just like before i read the term you guys think about it a little bit and then i give you the explanation of the term we compare oh and don't forget to keep score uh leave your score down below and let's see who does the best all right let's go so the first term uh for this one is commission so we did commercial property last time in the first 50 but the first term today is going to be commission so uh gonna give you guys a couple seconds to think this one over go ahead okay hopefully you guys are familiar with commission because when you guys become agents that's pretty much going to be how you guys are getting paid so commission is a fee paid to an agent for performing a transaction so if you sell out if you sell a house you get a commission if you buy a house for somebody or you're the buyer's agent you get a commission so pretty straightforward uh simple thing but an important thing nevertheless all right next one community property ah and community property laws okay so uh yeah here's a couple seconds for you guys think it over okay do you guys know about compete community property hopefully so community property laws are based on the idea that husband and wife are equal separate partners rather than one whole one like tenants by entirety so this term goes hand in hand with tennis by the entirety and basically what they mean is it's a way that law or a government um or the law developed by the government addresses husband and wife in terms of their property so in community property law states um they have this idea that husband and wife are equal separate partners rather than one whole one so in tenants by entirety which we'll see later it's one whole one that they're like one whole um entity and community property is their separate entities so that's pretty much that that on that one so all right next one comparables okay all right so take a couple seconds uh figure this one out okay you guys remember what comparables are maybe it's a new term for you guys let's learn so comparables are just another word for properties sold in the same area seen on a property report so again when you're doing these property reports there's going to be little sections like comparables and basically what that means is there are properties sold in the same area normally not only in the same area but kind of like the same type of property so but that's pretty much what comparables are they're used on the property report all right next one ah here we go the comprehensive environmental response compensation and liability act circle and i guess another parentheses two parenthesis would be or also known as like the superfund so what is that so take a couple seconds to figure that out okay so hopefully this isn't the first time you guys have seen this or heard of this because this concept is so important not just for your exam but for your career but basically this means also known as a super fund is a united states federal government program designed to fund the cleanup of states contaminated with hazardous substances and pollutants environmental property law has become so important for agents because obviously we're becoming way more what's the word i'm looking for we're becoming more cautious as well as we are are stressing the importance of cleaning up hazardous waste uh and pollutants because obviously that that can do harm to our environment so um pretty much this was a law or an act i'm sorry in 1980 and it basically kick-started this whole idea that the government should kind of set some rules for these hazardous substances as well as establish a fund to clean up these sites and you're probably wondering well why what does this have to do with me well if you are in commercial property or honestly even in residential property you might see it and you're dealing with property that might have some hazardous waste on it it's super important to be familiar with these laws and kind of what the rules are um and how to handle that and things like that so that's it for this one we're gonna see some more acts a little bit later so keep that in mind but yep that's it so all right next one condemnation okay so condemnation so uh as always here's a couple seconds for you guys to think this one over okay do you guys know what condemnation is hopefully um when you think of this think of eminent domain because they go hand in hand so the procedure used by a public or private entity with the powers granted from eminent domain remember i mentioned earlier to take privately owned real estate so these terms go hand in hand this is specifically the procedure used by it whereas eminent domain is the right which we will cover a little bit later but yeah it's the procedure used by a public or private entity with powers granted from them domain to take privately owned real estate oh condominium okay so uh think this one over give you guys a couple seconds okay so we did go over co-ops in our first 50 video and we've gone over the difference between condos and condominiums before but i'll keep this little uh brief basically a condominium often shortened to condo is a type of living space which is similar to apartment but is independently sellable and therefore regardless real estate so let me give you a quick explanation here basically uh remember we were talking about co-ops earlier in our first video co-ops uh they are owned through a form of interest or uh shares in a non-profit okay so you don't actually own a physical living space you actually end up leasing it but you are you own shares in this company that owns the entire space now let's compare that to condominium condominium you actually own the uh independently sellable area and therefore it's regarded as real estate so there is a slight difference there and the truth be told if you're driving around your town and you pointed like a condominium complex you would probably not be able to tell what's a condominium versus what's a co-op just from the outside you have to understand the rights and how they are organized and that's how you can kind of tell the difference so again um a little bit of a confusing concept but super important to understand and hopefully i explain it to you guys uh good enough if not feel free to comment and i will try my best to explain it in text all right conspiracy to boycott so okay uh yeah here have a few seconds to uh come up with your definition for this one okay do you guys remember this one do you guys are familiar with this one have you even heard of this one hopefully um when you hear this think of antitrust laws conspiracy to boycott occurs when two or more persons or entities conspire to restrict the ability of someone from competing this is unethical and highly illegal uh and i guess i would put if i had a you know i had my little notes i would also put in parentheses that antitrust laws this is antitrust laws antitrust laws developed and defined this term and made it illegal so again this is the specific act um where two or more persons or entities can spiders with the ability of someone competing but again that you gotta circle that back to the anti-trust laws which we talked about in our first video which are super important to understand but yeah this is one of those antitrust violations um so keep that in mind all right next one constructive eviction okay so think that one over okay uh hopefully you guys came up with a good uh definition here so this is it it's this one's pretty basic i know there's like four four lines of text here but i'm just going to break it down super easily it's a term used in real property law to describe a circumstance which a landlord uh either does something uh or fails to do something that he has a legal duty to provide so uh i know that that you're probably thinking what does that mean well basically landlords uh not only not only tenants but landlords as well have a certain amount of duties that they must provide um just like how a tenant must pay rent every month depending on their contract um and and must you know make sure that the property is relatively you know well kept um and not destroy anything well landlords also have a certain amount of activities that they must do or if they don't or they must do uh slash if they fail to do then there will be illegal repercussions so i know that that was a little bit confusing and i'm sorry but basically it just means uh that that you know these if a landlord doesn't do something that they're legally required to do or does something that's opposite of what they are legally required to do that would be a constructive fiction so a little bit confusing but hopefully i explain that well enough if not again leave a question and i'll be happy to uh give you guys an explanation okay the next one is constructive fraud okay so think that one over okay so remember uh in our last video we actually talked about the different types of fraud uh well constructive fraud is another form of fraud but it's a little bit less actually it's more less serious than actual fraud um i mean it's still serious but because it's fraud but constructive fraud is best described as ignorance or lying without knowing you're lying so an example of this would be if you're showing a house and uh maybe you met with the buyer uh i'm sorry maybe you met with this the seller three days before and the seller was like yeah okay it's got two bathrooms it's got three closets it's got four bedrooms and they're describing all stuff well let's say a week later you're showing the house and you're like you tell your potential um there's a potential buyer you're like oh yeah um you know it's got the the three closets or whatever i said earlier well let's just say turns out you get inside and then you find out there's only like two closets well you technically lied um that is that would be considered constructive fraud because it's ignorance i mean you lied without knowing you're lying and again there's a gray area here it's kind of hard to prove that you didn't know but you are technically lying and it could be fraudulent again there's a lot of gray areas when we're talking about fraud but that's why it's just best to do your deal due diligence always you know just because some somebody says something make sure you are um doing your own research and making sure you are informed as well that way you don't get yourself in a tricky situation but we went on a little bit of a tangent there but that's pretty much all you need to know about constructive fraud all right contingent property okay so i'm gonna give you guys a couple seconds to think this one over okay you guys remember we were going over some contingencies uh well we're we're coming full circle now so contingencies listed on a contin on a property makes the property contingent so contingent property means an offer for a property has been accepted but there's a condition or contingency that is written into the contract and it must be met before the sale can go through so let me explain let's say you have a contingency maybe an appraisal contingency which remember we talked about that in the first video uh that it's okay um they're not going to purchase the property unless the appraisal comes back to a point that um you know they'll be able to buy the property so maybe you know it'll be written in there that the appraisal comes back and they don't find any issues or maybe the inspection like an inspection contingency things like that so basically they're written to the contract that these things must happen uh before the sale can go through that's basically what the contingency is and to flip that that's also what contingent property is so uh if you're looking on the mls or like on a site like zillow maybe and you see oh contingent property well that just means that again uh an offer was accepted but they're waiting to do uh or for one of these contingencies to go away or to be handled i guess would be a better way to say it so that's what continued property is uh hopefully that was a good explanation for you guys okay next is a contract okay this is a pretty short one so uh hopefully you guys know what a contract is i'm just gonna get into the explanation right now that's just an agreement between two or more parties by law so pretty self-explanatory but obviously if you guys are new to this hey maybe you didn't know what a contract is that's totally okay remember guys this is a learning experience um don't be afraid if you have no idea uh some of these terms or maybe i'm not doing a good good good job explaining it leave a comment down below and i i'd be happy to explain a little bit better or you know if for some reason i don't get to your comment feel free to google it but again don't be afraid to review these things and kind of take the extra steps that you understand these things because this can be really confusing for a lot of people uh you're not alone there so okay the next term is corporation so uh give you guys a couple seconds to think this one over okay so if you guys are fans of the channel you'll remember that last week we actually did cover some up business structures and corporations were one of them so a corporation can be formed for profit or non-profit purposes and a corporation is managed and operated by board directors they have certain rights privileges advantages disadvantages all the good stuff here's the key takeaway i'm going to keep it simple with this you need to know that a corporation can own property and it's not the individual but it's the corporation so unlike a sole proprietorship which we'll cover a little bit later um a corporation can own property by itself so that legal entity can own property so remember that super important to know as well as all the business uh ownerships because again for commercial property you have to be familiar with those these things so okay cost approach all right so go ahead and take a couple seconds and think this one over okay do you guys remember what this is is this a new term for you guys uh let's see so cost approach is a real estate appraisal method that states that price a buyer pays for the property should equal the cost to build an equivalent building on property so uh a little bit of an explanation on this one is let's say uh somebody uh built a house in uh like let's say like it's last year and uh they sold the house and then uh the appraiser comes in and they appraise the house well they're gonna look at how much it costs to build that house because it's relatively new here's the thing this appraisal method is not gonna work if the house is from like you know 1920 or 1930.

[00:17:05]i mean they still might use it uh because again when when they're doing these appraisals they take a lot of these methods and they kind of use them all to to come up with the best evaluation but again all this is is uh they're looking at what the buyer would have to pay for the property if for some reason it was destroyed uh if and by pay i mean like pay to rebuild it so um but yeah that's pretty much it for that one okay counteroffer okay this is a good one so uh i'm gonna give you guys an opportunity to to think this one over okay so a counteroffer what is that well it's similar to a purchase agreement uh however a counteroffer is made or makes the original offer cease to exist because legally the seller rejected it so the the key takeaway here is counter offer is basically a purchase agreement however when they make the counter offer the original offer ceases to exist because legally it is rejected and that's a key takeaway uh that that again once you present that counter offer the original offer is no more okay looks like we're going to the d the d words okay so uh next one is to tom and i know i'm probably butchering the pronunciation of this word um but you know yeah so here's a couple seconds for you guys okay is this is this at all familiar to you guys if not it's okay this is kind of a weird word um it comes up uh what's it called not with appraisals but with uh oh surveying that's right surveying so basically what it is is the set of data or data and however you pronounce it that equals heights and depths measured on a horizontal plane so this is used in surveying because that's basically what they're doing they're they're they're looking at the heights and depths of of properties and things like that and they're they're using it to measure exactly uh where things are so it comes up more in surveying but for a lot of states surveying does show up on the exam so you have to be somewhat familiar with the terms i mean it's not a huge portion of the exam but it does show up so that's it for that one okay dba so this one uh i'm just gonna skip this one the the seconds here because this one is a pretty small explanation um but basically that's doing business ads it's an abbreviation uh and you may see this on the exam uh in one of those word problems where they're like they they put a big paragraph of all this information and they use all this mumbo jumbo and you have to be familiar with uh some of the abbreviations and dba is doing business as all right next one dead okay here's a couple seconds for you guys to think this one over all right hopefully you guys are familiar with this term hopefully you guys aren't too familiar with this term if you know what i mean so debt debt is just something owed or promised it's pretty self-explanatory uh if you owe some something to someone you have debt um yeah it's simple as that all right deed okay here we go indeed a deed is a written legal document by which ownership of real estate is conveyed from one party to another and i just realized that i just gave you guys the explanation before i gave you guys an extra a second to think it over and i apologize but um yeah that's pretty pretty much it for for this one so i'll i'll try not to do that again i'm sorry uh but yeah so that's that uh pretty self-explanatory i'm sure you guys are familiar with deeds if not we actually do have a video on deeds so encourage you guys to watch that all right next next one oh it looks like we're staying in the ballpark of dates all right deed restrictions so here's a couple seconds or moments to think that this one over okay all right deed restrictions what are deed restrictions guys well there are limitations to use of property imposed by past or current owner and are usually legally binded forever so what's an example of a deed restriction do any of you guys know well i'll give you guys one so a deed restriction that is going to be something like let's say somebody has a historical property and maybe there's a tree on it and maybe that tree was benjamin franklin's you know maybe like he discovered something under that tree and they uh the owner imposed a deed restriction on the property that that that tree cannot be cut down no matter what legally it cannot be cut down because that is a deed restriction and guess what so many new business properties they can't cut down that tree because it is legally it's a legally binding agreement and as soon as you get that deed that's basically it it becomes legally binding to you to uh current or future owners so simple as that i know that's i guess it's not as simple as that i know that that's a little bit of a complicated concept for some people um but again it's something that you have to know for the real estate exam so hopefully i explained it well if not leave a comment down below okay defeasing clause oh goody so uh if you guys are fans of the channel you guys will be familiar with this one all right here's a couple seconds for you guys okay are you guys familiar with this turn hopefully so this is a contract revision that ensures that the title for the property is transferred to the buyer once the mortgage has fully paid off so now you're probably sitting there thinking to me like okay what like why why would that need to be in a contract provision well it's super important to not only have these contracts be as thorough as possible but be as distinctly specific as possible i think that's that's a good way to phrase it because listen guys uh contracts can be super confusing um and that's why we that's why they put it often on the exam a lot of these content positions and that's why we covered on this channel lot it's because it can be confusing but basically what this means is once the buyer pays off the property uh or once they pay off the mortgage that is they own the property the title will be transferred and again it's it's important to just distinctly uh clarify this because again imagine if you just paid off imagine if you just paid off like a hundred thousand dollar house two hundred thousand dollar house and for some reason there's a contract issue and they didn't clearly define that when you paid off the mortgage you would retain the rights to the house or the property could you imagine how frustrating that might be so again it's super important um to have this in a contract and and as this states it's typically required i'm i believe in every state it's it's it's not maybe not every state but it's it's pretty much required almost in every state so uh keep your keep your eyes off for the defeasing gloss it's super important to know and understand okay delinquent taxes so this is another short one i'll give you guys a second or two to think this one over okay so delinquent taxes delinquent taxes what is that that's just overdue taxes um oh why is this important to know well uh when people foreclose and when there's overdue taxes or delinquent taxes this stuff shows up and it's super important you're familiar with the terms so that you sound intelligent as well as are familiar with it for the real estate exam delivery okay so uh not to journals and it's not a lame joke there it's not delivering pizza or food or something like that this is the real estate term for delivery so give you guys a couple seconds to think this one over okay are you guys familiar with this uh in the real estate perspective so basically all this means is the legal act of transferring ownership so when you see delivery think of this legal act transferring ownership delivery transferring ownership or i mean honestly you can make it even shorter delivery is just transferring ownership you don't even really need a legal act i mean really but it's as simple as that that's what it's defined as and that's why um it has to be defined it's because it's a legal term that again is relevant not only to your real estate career but for the exam okay depreciation all right here's a few moments for you guys think this one over okay so do you guys remember when we talked about appreciation well uh i mentioned that the opposite of appreciation is depreciation so using that as some context clues you should know what depreciation is depreciation is any loss in the value of property over time from any cause so obviously there's different types of depreciation which we'll cover a little bit later but depreciation is not really a good thing um and and i know that i said this in the first video but a good way to remember appreciation is if someone appreciates you it makes you feel good meaning you gain value well um uh well with depreciation you could remember as depre or depressed almost appreciate depressed loss think of sadness so like you'd be sad if you lost the value of property that would stink that'd be horrible and it does happen so again that's kind of how i remembered that one but that's all you need to know for that one so all right discount points awesome okay so discount points i'll give you guys a couple seconds to think this one over okay do you guys do you guys know your discount points hopefully so discount points also known as mortgage points are just prepaid interest so the way they work is you would pay an extra amount at closing um in return for a lower interest rate now this is fantastic if you know for a fact that you're going to be living in the house or owning the property for a long time because this could save you massive amounts of money basically because again it's just like any any type of investment or investing uh often it's better to pay a lot in the beginning and it you know that way you can reap the benefits for later but yeah that's it for the discount points ah dividing territories okay so think this one over okay so did you guys figure it out hopefully so dividing territories what do you guys think of when you hear that term well you should be thinking of anti-trust violations yep it's another one so dividing territories is when competing brokers agreed to split territories and divide interest accordingly as i mentioned it is a clear antitrust violation so imagine you are sitting together um and let's just say your real estate agent or a broker and another broker from a competing agency comes up and he's like hey listen i have this great idea what if you get the west side of the town i get the east side of town you know we live in a small town we could easily do it i won't take any you know think from you over there you don't see anything from there um and yeah that would be totally an answer violation totally illegal and totally unethical and could potentially lead you in a lot of trouble so never do that obviously but be familiar with the term because again antitrust violations that's a huge part of the exam and a huge part of your career is knowing uh those things okay dominant estate all right so i'm gonna give you guys an opportunity to take that one over okay dominant state what is that do you guys know so the dominant estate is a partial real estate that has an easement over another piece of property so i would say the way to remember this is the fact that it's dominating it's dominating meaning it's dominating over another piece of property it's the main one it's dominating over it and that's that's what it is it's a property that has an easement over another property so an example would be if you had uh this might be a little hard to explain so bear with me close your eyes and kind of think think it through um but imagine you live on the second story of a uh let's say you live on the second story of an impart i don't know about that let's say you live in a second story of a building okay and uh you have an easement through the alleyway of another property to get to your property you are the dominant estate because you have an easement over the other state um or a state and we'll explain what the other term for this one is then the non-dominant estate is a little bit later but yeah just uh remember that for this one okay a double net lease so think this one over okay this is a pretty easy one uh double just means two it means two additional costs will be added to your base rent so usually there are things like taxes insurance costs and they're just added to the monthly lease payment so pretty self-explanatory but super important to know ah duress okay this is a good one so think this one over here's a couple seconds for you guys okay duress duress is the act of forcing an individual or business to do something against their will so obviously that doesn't sound great right when you hear the word duress i kind of think of stress uh but duress is the act of forcing an individual or business to do something against their will obviously it's not a great thing and i believe it's illegal actually i'm pretty sure it's illegal um but yeah so when you hear duress just think of stress and the fact that it's against their will our next one dual agency okay here's a few seconds for you guys okay so dual agency you might be thinking oh well duel means two that means maybe i don't know two agents work on the same project well no it's a little bit different than that delay agency occurs when one age one excuse me one agent represents both the buyer and the selling transaction now whether or not this is illegal completely depends on the state that you live in and their rules and if you are curious about this topic we did a full video deep dive on it as well as uh we have an article on our site where you can find out whether or not it's legal or illegal in your state so pretty much it for that one but uh it's super important to understand that it's when one agent represents both buyer and the seller in a transaction okay dva loan okay give you guys a few moments i think this one over okay when you see dva you got to think of department of veteran affairs so all that is is a loan certified through the department of veteran affairs all right next one easement okay we talked a little bit about this term earlier so now we're coming full circle all right so this one over okay you guys familiar with easements hopefully i know if if you're a subscriber on this channel you better be okay an easement is a right held by one person to use a land of another for a specific purpose such as driving through someone else's property so as i remember as i was describing earlier and the dominant estate that's where this thing comes into play uh an easement is just a you know for a specific purpose like maybe driving through someone else's property or maybe walking through someone else's property to get to uh your property things like that but estate or easements are super important to know so uh if you did not know this i encourage you guys to look this one up we actually did a deep dive on this one as well and kind of familiarize yourself with that term and all the things that are connected to it okay we're sticking with easements so easement for ingress and egress so i'll give you guys a few moments to think this one over okay so you guys know about this hopefully what is an easement well we just talked about what an easement was remember it's a right held by one person to use land of another first for a civic purpose well an easement for ingress and egress is a type of easement and it is a type of easement used for entering and exiting a property you're probably thinking zack why why do we have to define this like that's kind of like that doesn't make any sense well okay because there's different types of easements and they're by believing there are quite a few yeah they have to define each one and this is probably like the most basic form of easement but it is the right to be used at entering an exiting property now where it uh it comes into play which uh i think yeah we'll talk about it now but where this really comes into play is obviously if think about it like this if you can enter a property you should be able to exit it right right well yes so ingress and ingress rights they go together so that's worth noting um because of course uh when you hear you'll never be like oh yeah you're allowed to enter this property but you're never allowed to exit so um typically these rights they go hand in hand all right and sticking with that egress we'll just jump into the explanation that's just the right to exit property so um as i mentioned ingress is uh enter egress is exit so um you'll probably see ingress and uh when we cover the i words but important to know and important to understand and familiar familiarize yourself with so all right next question oh here we go economic obsolescence so i think that one over here's a few seconds for you guys okay so um basically economic obsolescence just refers to the loss of property due to external factors and that's the biggest most important part about this is it's external meaning things that are off the property affecting the property's value because as you'll see a little bit later there's a different form of obsolescence but we'll jump into that later all right so that's it for that one ah emblems okay so here's a few seconds for you guys okay so do you guys know about emblems hopefully if you're if you're uh if you're a fan of this channel you should okay emblems they are annual crops produced by cultivation legally belonged to the tenant with the implied rate for its harvest and they are treated as tens property so this is a super specific term but it does come up on the exam because there are a lot of i don't know if you picked it up on it yet but there's a lot of terms that start with e uh that you need to know for the exam and this is of course one of them and basically what this means is let's just say you rented or leased property from somebody and it was this big farm and on that farm you grew crops and you kept growing them and growing them for a couple years well let's just say the owner of the property decided that he wants to sell the property to somebody else well you are legally uh you will you legally have the right to harvest those crops because there are tenants property so again it's a specific term but believe it or not this uh this shows up on the exam all the time and i'm not entirely sure why because it's so specific and most people don't really aren't ever gonna have to deal with this in their real estate career but it's just something super important to understand um not just for the exam but you know for your overall uh well knowledge okay eminent domain so here's a few seconds for you guys okay so do you guys remember what eminent domain is we talked about i think in our first video avenue domain is the right of the government to take over privately owned real estate for public use so uh let's say you own a house and it's right next to a highway you've been living there for like 50 years while the government comes in and they're like hey uh we're gonna take your land and we're gonna extend the highway guess what nine times out of ten you don't have an option like that's it you you have to you have to give up your land um and basically you know they're using eminent domain which is the right uh to take over your land that way they can develop that highway so that's a that's an example for you guys but again i mean domain is super important comes up on the exam all the time so make sure you guys are familiarized with that all right next one encroachment oh okay here's a couple seconds for you guys okay did you guys figure it out encroachment encouragement is intrusion on a person's territory or property when you uh hear encroachment think of like someone like encroaching on you or approaching almost for those who are football fans you should be familiar with this encroachments it's kind of similar to the penalty encroachment but basically yeah it's just intrusion on person's territory property an example of this would be maybe if you had a tree uh and it was starting to grow over your neighbors uh towards your neighbor's side and maybe he's not happy about it and he has the legal right to have you take care of it or deal with it so that's basically what encouragement is okay encumbrance okay so think this one over okay so do you guys know about encumbrance well whenever i see this from i think of being encumbered um which means like you know you're being weighed down and it kind of means the same thing so encumbrance means an involuntary lien is on the property so what's that well we'll get into liens a little bit later same thing involuntary liens but basically it just means that there's one on the property and you're not happy about it if you have an encumbrance on your property you should not be happy because this means that there's some sort of thing holding it back for from you either owning it or from you possessing uh full ownership of it so this is a bad thing but again just remember that this just means a involuntary lien is on the property okay endorsement all right so here's a couple seconds for you guys to think this one over okay this one should be easy for you guys uh you i'm sure you guys have heard of endorsed well it's the same thing endorsement it's just a signature signing paperwork normally a contract so again you're just going to be signing paperwork you're doing an endorsement you're endorsing yourself whatever it may be it just means signing okay next one epa or environmental protection agency already think this one over okay are you guys familiar with the epa so i talked about environmental law a little bit earlier and basically the environmental protection agency is the federal agency responsible for dealing with environmental issues the epa was established in december 1970 by an executive order the united states president richard nixon so you don't need to know nixon did it probably but you do need to know what the epa is and of course it was established in 1970 so the key takeaway here is that before then there really wasn't anything to do with these environmental issues and thankfully now that there is and that's what the epa does is it protects us uh protects um you know not only us but nature as well and it deals with environmental issues so people may be not uh following the correct rules uh when it comes to like hazardous waste uh there's there's tons i mean now the epa is much larger than it was back then but originally was just basic environmental issues so but yeah it's super important to know for us because why well for those of you guys who might work with uh in commercial real estate obviously you have to make sure that you uh these properties that you're showing are following your environmental protection agency guidelines um and you know nothing would be worse is if you showed a property to somebody and you misled them and you told them that you know everything's up to date when it might not be so be transparent with your clients and good things will happen to you so okay another another phrase equal credit opportunity act or ecoa so think this one over come up with your guys's explanation all right you guys familiar with this i know this is a little bit of a you know it's it's a little bit of a stretch here on the terms of like uh if you guys know this one or not because if i'm being completely honest i wasn't really familiar with this until i kind of learned about it practicing and doing all the stuff that we're doing now in my own version and when i was doing in my time because you don't really hear much about this but you know what's interesting is if you look on certain documents you actually see uh like at the bottom it'll be like protected by the ecoa or protected by the equal credit opportunity act and you might even see it on commercials for like mortgages and stuff like that um but yeah it's something that like once you hear about it like you know oh yeah i know what that is but basically all it is is a regulation that aims to give all legal individuals equal opportunity to apply for loans the act precipit prohibits create creditors and lenders from considering a consumer's race color national origin sex religion or marital status in deciding whether uh or not to approve their credit application so let's just say you're applying for a house and maybe you are young and let's just say you're young and christian or something and basically uh it doesn't matter what you know your young old you know black white you know from canada from united states from mexico male female creditors cannot be like oh well because this person is you know sown so they can't they shouldn't get this loan no of course that's not allowed but again this is something that is defined and it's so funny because i guarantee i guarantee it after you guys learn about this uh you'll be watching a commercial or you'll be like reading something you're like oh my god yeah that was the thing that was the thing that guy on youtube was talking about so yeah that's the equal credit opportunity act super important to know for your uh career and exam so hopefully i explain that one well ah equitable title this is one of my favorite terms okay so uh think this one over here's a few seconds for you guys okay so we actually did a deep dive on this one and i encourage you guys to watch the video if you haven't yet i love talking about this stuff and i thought it was i thought we did a really good job explaining what this is but so equitable title is the interest held by one party to purchase property before closing so if you have equitable title that means you have the right to purchase property uh or to purchase a specific property so maybe you put an offer in and uh maybe the offer was accepted so then you would have equitable title you don't have full title you don't have actual title but you have equitable title meaning it's like you're you're in the process of getting title i i hope that makes sense i know it's like a little bit of a confusing concept and i encourage you guys to watch our deep dive on it if you haven't already and you're a little bit confused but yeah that's pretty much uh equitable title all right next one ah equity so we're we're keeping with the eq words so equity what's equity all right here's a few seconds for you guys to think this one over okay what is equity do you guys know equity is the difference between the market value of your home and the amount you owe the lender who holds the mortgage it's pretty simple um let's say you and your husband or you and your wife just purchased a home and maybe after two years you guys have put in a good amount on your loan and you want to know how much equity you actually have uh in in the house well you would look at the market value of your home and then you would take the amount that you owe the lender and you would do you know you would look at the difference and that's how you'd find how much equity you have in the loan so super important to know all right next one erosion erosion okay think this one over i'm gonna give you guys a few moments here okay what do we know about erosion well we know a couple things we know that it's the opposite of accretion remember we were talking about the earlier so erosion is the wearing away of land or soil by the actual wind water currents or ice long-term erosion can decrease the size of a property so remember we were talking about a crescent creation accretion accretion uh remember like we're talking about that like super early i think that was like what like our eighth one or ninth one um but anyway we were talking about that and what that is and remember that's the slow process of growth or acquisition of land and then remember are we talking about the other term as well um but this is the long term or i'm sorry this is the opposite of creation meaning the wearing away so accretion is the growth or acquisition uh and this one erosion is the uh wearing away so i hope that makes sense i know that there's like a couple of these terms that they can easily be mixed up um but yeah just just keep this one in mind for future because again it's another one of those ones that's super important okay oh errors and emissions insurance okay this is a good one all right so here's a couple seconds for you guys okay fun fact about errors and emissions insurance some but not all states actually require a form of insurance of errors and emissions insurance for a lot of different careers not just real estate agents um but there are some other uh types of careers where error and emission insurance aren't required so uh basically what is it well it's a type of little lil excuse me it's a type of liability insurance that protects professionals against claims of inadequate work or negligent actions so it's good to have um and again it's it's one of those things that's required in some states but it's good to have if it's not required just in case somebody opposes a claim on you for not doing your job correctly um you know if there's a lawsuit there this this can protect you from that so all right next one is cheat okay another one of my favorite terms is sheet all right so here's a few seconds for you guys to think it over okay do you guys notice cheetahs if not it's no biggie but you gotta know now a sheet is when a property owner dies and leaves no proper documented inheritance plan but property ownership refers to the government if she ensures the property always has ownership so when you think of a sheet um it's it's one of the government's rights or government powers and basically um it just means like let's say let's say you and your wife or you and your husband are living happily and then you know you guys just sold sold a house and then you bought a new one um and then let's just say you know you have no sort of inheritance plan and you guys both pass away um and i know this is like so specific but this is like the best definition for this well if you have no inheritance plan the property ownership then reverts the government so it's it's kind of a crappy thing um but the point is and why government kind of created this why our government created this is so that there wouldn't be a lot of properties that were just sitting there empty with no with like an owner that was dead or something um she ensures that a property always has ownership and that's important not only for uh you know a local economy but a global economy and how much uh you know of an impact that is because you you want people to own property and you want people to you know live in houses and things like that and all you need you need ownership always to be there so all right escrow okay escrow escrow escrow all right so here's a couple seconds for you guys to think this one over okay so do you guys know about escrow you should escrow super important so escrow is a way for money and property to be transferred from one party to another through the use of a neutral third-party agent also known as an escrow agent escrow makes it a lot safer for both buyers and sellers to close the sale without worrying about getting snubbed or cheated listen it's as simple as this if escrow didn't exist there would be so many potential issues with transferring property because imagine imagine this you know imagine you're like buying property and you had no sort of protection uh it would be scary not that many people would purchase property without escrow because it would be uh it would increase the odds of people getting you know screwed so escrow's super important but all it is is just a third party to handle transaction basically as simple as that so all right state at suffrance all right so here's a couple of moments free gas i think this one over okay you guys don't want to say it as sufferances a good way to remember this is it's suffering or suffer so it's in a state as sufferance this is when the tenant holds over uh after expiration of the term so imagine um someone is not paying their rent and yet they're staying on uh well actually there's there's a couple ways this this could be so in a state of sufferings could be um that their their lease ended and they're just staying there rent free um or it could mean that uh they are staying there they're still paying but they don't have a lease uh but either way it's a bad thing you know because you want to be you want to have a lease you want these people to be paying month month legally um you you want you don't want in a state of suffering it's always a bad thing so again remember estate at suffrance estate at suffering or suffering suffer that's how i remember that one so okay next one a state at will so we're sticking with the estates here uh give you guys a moment to think this one over okay so what is in a standard well well in a state at will means it can be ended at any time which that kind of is a good and bad thing it can be kind of scary so this term of the state is indefinite so it also um so so basically what this means is like if you and i were uh we were like owning like let's say we own property and we had some tenants on it and we developed them at a month-to-month uh lease so that would be you know kind of good and kind of bad and basically because you know they could they could pay the rent monthly um but you know they could leave at any time or if you're the the owner you know they could be like hey we're kicking you out next month like it's not really good and that's why uh you know it's an indefinite um and of course what it says here is it's also important that not all states recognize in a state at will uh and of course these things do vary in state laws but yeah so that's the key takeaway um is it's it's in a state that's indefinite and it can be ended at any time um you know contrary to the estate of sufferance which we were just talking about where uh you know that's when a tenant holds over past the expiration um and they're suffering this one is more or less just once a month like this is the in in the states that this can be done it is perfectly legal however it's not suggested but it is like legal whereas like the state of sufferance arises more or less like okay the terms expired um and yet they're they don't have a lease any like i said they could be paying like under the table or maybe they're not paying at all so they would be suffering and this is more at well it's like okay well you know it's month to month it's like whatever you guys want so again important takeaway too is not all students recognize this but a little bit of a tangent there but i thought it was super important to explain kind of the difference for you guys while i could well while you guys were watching so you guys can learn more so all right uh next one and it looks like our last one for this video um so think this one over it's exchange what is an exchange so listen i'm not going to give you guys a couple seconds for this one this one's easy come on it's just transfer of goods and services so uh why do we need to define this well listen guys as i mentioned earlier in this video and even the first one all these terms you know uh so some of these terms you may be thinking oh well yeah they're easy you know i totally understand this but listen for a lot of people this is new stuff for them for a lot of people uh this is this is like brand new territory and you know what if you guys are getting all these and you guys are fully understanding power to you um but i encourage you guys not to put other people down that are not understanding this because this can be very hard for a lot of people um so just for for those of you guys who are still struggling um keep your heads up we got 155 more questions to go we're going to get through this we're going to learn and you know someday you know whether it be next week or next month you're going to pass the exam i believe in you our whole community here does i'd really love for us to be more positive in the comments as well as try and uh bring more people up because let's be real guys we're all in this together and the more that we can help uh pass the exam the better for everybody really for everybody um but yeah i know i went off a little bit of a weird tangent there at the end but i thought it was important to be said because you know i really care about this community that we're developing we're going on like 2000 subscribers now and i just i i really want us all to uh build each other up because guess what guys we can do this you can pass the exam and uh it's going to take hard work but you can do it so yeah that is it for this one um that's we're 100 questions down and guess what if you guys made it this far wow you guys are doing fantastic you're doing stellar keep up the great work we're almost halfway um and again uh the next video you know you'll see sometime soon um but yeah so if you haven't liked or subscribed yet please do it really helps with the channel um but yeah that's that's pretty much it for me on this video that's going to be it so thanks so much for watching as always this is zach from realestatelicensewizard.com make today magical [Music] [Music] you