Real Estate Exam Cheat Sheet: Key Terms, Math Formulas, and Must-Know Concepts
A one-page review of the topics that show up most on real estate licensing exams — built for your final week of study.
How to use this: Most real estate licensing exams have a national portion (general principles) and a state portion (your state’s laws). This real estate exam cheat sheet covers the national topics that appear on almost every test. Pair it with your state’s candidate handbook for the state-specific rules.
You can’t take notes into the licensing exam, but a well-built real estate exam cheat sheet — or cheat sheet for real estate exam review — is one of the fastest ways to lock in vocabulary and math before test day.
Property Ownership and Interests
| Term | What it means |
|---|---|
| Fee simple absolute | The most complete form of ownership, inheritable and without conditions |
| Life estate | Ownership that lasts for a person’s lifetime, then passes to a remainderman or reverts |
| Joint tenancy | Co-ownership with right of survivorship — a deceased owner’s share passes to the other owners |
| Tenancy in common | Co-ownership without survivorship; shares can be unequal and pass to heirs |
| Easement | A right to use someone else’s land for a specific purpose, such as access |
| Encroachment | Something built that extends onto a neighbor’s property |
| Fixture | Personal property attached to real property so that it becomes part of it |
Deeds, Liens, and Title
Deed Types
General warranty: Greatest protection for the buyer, covering the title’s full history. Special warranty: Covers only the seller’s period of ownership. Quitclaim: No warranties — transfers whatever interest the grantor has, if any.
Liens
Specific liens attach to one property (mortgages, property taxes, mechanic’s liens). General liens attach to all of a debtor’s property (judgments, IRS liens). Property tax liens usually take priority.
Title
A title search reviews public records for the chain of title. Title insurance protects against covered defects that existed before the policy date.
Agency and Contracts
Fiduciary duties owed to a client — remember OLDCAR:
- O — Obedience: Follow the client’s lawful instructions.
- L — Loyalty: Put the client’s interests first.
- D — Disclosure: Share all material facts with the client.
- C — Confidentiality: Protect the client’s private information.
- A — Accounting: Handle money and documents properly.
- R — Reasonable care: Act with skill and diligence.
Essentials of a valid contract: offer and acceptance, consideration, legally competent parties, and a legal purpose. Under the Statute of Frauds, real estate sale contracts must be in writing to be enforceable.
| Contract term | Meaning |
|---|---|
| Valid | Meets all legal requirements and is enforceable |
| Void | Has no legal effect at all |
| Voidable | Valid unless one party chooses to cancel it (for example, a minor) |
| Unenforceable | Valid but can’t be enforced in court (for example, an oral sale contract) |
Fair Housing
The federal Fair Housing Act protects against discrimination based on race, color, religion, national origin, sex, familial status, and disability. Know these prohibited practices:
- Steering: Directing buyers toward or away from areas based on a protected class.
- Blockbusting: Encouraging owners to sell by suggesting a protected class is moving in.
- Redlining: Refusing loans or insurance in certain areas based on their makeup.
Many states add more protected classes, so check your state’s rules too.
Real Estate Exam Cheat Sheet: Math Formulas
| Calculation | Formula |
|---|---|
| Commission | Sale price × commission rate |
| Loan-to-value (LTV) | Loan amount ÷ property value (or price, if lower) |
| Property value (income approach) | Net operating income ÷ capitalization rate |
| Gross rent multiplier (GRM) | Sale price ÷ monthly gross rent |
| Property tax | Assessed value × tax rate (1 mill = $0.001) |
| Area of a rectangle | Length × width (1 acre = 43,560 sq ft) |
| Appreciation or depreciation | (New value − original value) ÷ original value |
| Simple interest | Principal × annual rate × time (in years) |
| Points | 1 point = 1% of the loan amount |
Study and Test-Day Tips
- Get your state’s candidate handbook: It lists the topics, question counts, and passing score for your exam.
- Make flashcards for vocabulary: Many questions hinge on knowing one key term.
- Practice math daily: A few problems a day beats a long cram session.
- Check calculator rules: Most testing providers allow only basic calculators or provide one on screen.
- Take timed practice exams: Get used to the pace and question style before test day.
Key Takeaways
- Most exams have a national portion and a state portion; this cheat sheet covers the national topics.
- Know ownership types, deed types, liens, and the OLDCAR fiduciary duties.
- Memorize the federal fair housing protected classes and prohibited practices.
- Master commission, LTV, cap rate, property tax, area, and proration math.
- Use your state’s handbook and timed practice exams to finish your prep.
Frequently Asked Questions
Can you use a cheat sheet on the real estate exam?
No. Personal notes aren’t allowed on real estate licensing exams. A cheat sheet is a study tool to help you memorize terms and formulas before test day.
What is on the real estate license exam?
Most exams have a national portion covering ownership, deeds, contracts, agency, financing, valuation, fair housing, and real estate math, plus a state portion covering your state’s laws and rules.
What math is on the real estate exam?
Common topics include commissions, loan-to-value ratios, property taxes, area calculations, capitalization rates, appreciation, interest, points, and prorations.
What does OLDCAR stand for in real estate?
OLDCAR is a mnemonic for the fiduciary duties an agent owes a client: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care.
The Bottom Line
This real estate exam cheat sheet gives you the vocabulary, concepts, and math that show up most. Rewrite it from memory, drill the formulas, and combine it with your state’s handbook for a well-rounded final review.
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