Title: Real Estate Fundamentals — LearnCoachAssist

Q: What is real estate?
A: Property consisting of land and any permanent improvements attached to it.

Q: What is real property?
A: Real estate plus the legal rights associated with ownership.

Q: What is personal property?
A: Movable items not permanently attached to real estate.

Q: What is a fixture?
A: Personal property attached to real estate and considered part of it.

Q: What are the three main types of real estate?
A: Residential, commercial, and industrial.

Q: What is residential real estate?
A: Property used for housing — single-family, multi-family, condos, co-ops.

Q: What is commercial real estate (CRE)?
A: Property used for business purposes — office, retail, hotel.

Q: What is industrial real estate?
A: Property used for manufacturing, warehousing, distribution.

Q: What is mixed-use real estate?
A: Property combining multiple uses, e.g., retail with apartments above.

Q: What is raw land?
A: Undeveloped land without buildings or infrastructure.

Q: What is a single-family home?
A: A free-standing residential building for one household.

Q: What is a multi-family home?
A: A residential building with multiple units (duplex, triplex, fourplex, apartments).

Q: What is a condominium?
A: Ownership of an individual unit in a multi-unit building with shared common areas.

Q: What is a co-op (cooperative)?
A: Ownership of shares in a corporation owning the building, granting unit occupancy rights.

Q: What is a townhouse?
A: A multi-floor home sharing walls with adjacent units.

Q: What is a duplex?
A: A building containing two separate dwelling units.

Q: What is fee simple ownership?
A: The most complete form of ownership, virtually perpetual.

Q: What is leasehold?
A: Owning the right to use property for a defined period.

Q: What is a lease?
A: A contract granting use of property for a specific term in exchange for rent.

Q: What is a tenant?
A: Person occupying property under a lease.

Q: What is a landlord?
A: Owner of property leased to a tenant.

Q: What is a deed?
A: A legal document transferring ownership of real property.

Q: What is a title?
A: Legal ownership of property.

Q: What is title insurance?
A: Insurance protecting against claims or defects on title.

Q: What is a clear title?
A: Title free of liens, claims, or other encumbrances.

Q: What is a lien?
A: A legal claim against property as security for a debt.

Q: What is an encumbrance?
A: Any claim or restriction on property limiting its use or transfer.

Q: What is an easement?
A: A right to use another's property for a specific purpose.

Q: What is an HOA?
A: Homeowners Association — governs common areas and rules in a community.

Q: What are HOA fees?
A: Monthly/annual payments for community maintenance and amenities.

Q: What is a survey (real estate)?
A: A diagram showing property boundaries and improvements.

Q: What is zoning?
A: Local regulations defining permitted uses of land.

Q: What are common zoning categories?
A: Residential, commercial, industrial, agricultural, mixed-use.

Q: What is a variance?
A: A special exception allowing property use outside zoning rules.

Q: What is a non-conforming use?
A: A use that was legal when established but no longer complies with current zoning.

Q: What is the closing process?
A: The final step in transferring property ownership.

Q: What are closing costs?
A: Fees and expenses paid at the closing of a real estate transaction.

Q: What is escrow?
A: A neutral third party holding funds and documents during a transaction.

Q: What is earnest money?
A: A deposit showing good faith intent to purchase.

Q: What is a contingency?
A: A condition that must be met for a contract to be binding (e.g., inspection, financing).

Q: What is an inspection contingency?
A: The right to cancel based on inspection findings.

Q: What is a financing contingency?
A: The right to cancel if financing can't be secured.

Q: What is an appraisal?
A: Professional estimate of a property's market value.

Q: What is appraised value?
A: The value determined by an appraiser.

Q: What is market value?
A: The most probable price a property would sell for in an open market.

Q: What is assessed value?
A: The value assigned for tax purposes by a government.

Q: What is the difference between price and value?
A: Price is what's paid; value is what something is worth.

Q: What is a comparable sale (comp)?
A: A recently sold similar property used to estimate value.

Q: What is CMA?
A: Comparative Market Analysis — pricing analysis based on similar properties.

Q: What is BPO?
A: Broker Price Opinion — an estimate of value by a broker.

Q: What is the appraisal gap?
A: The difference between an appraisal and a higher purchase price.

Q: What is a mortgage?
A: A loan to purchase property, secured by the property itself.

Q: What is the principal (mortgage)?
A: The amount borrowed.

Q: What is mortgage interest?
A: The cost of borrowing money, expressed as a rate.

Q: What is amortization?
A: Gradual loan repayment through scheduled payments of principal and interest.

Q: What is a fixed-rate mortgage?
A: A mortgage with the same interest rate for the entire term.

Q: What is an adjustable-rate mortgage (ARM)?
A: A mortgage with an interest rate that changes periodically.

Q: What is a 30-year mortgage?
A: A loan repaid over 30 years; most common in the US.

Q: What is a 15-year mortgage?
A: A shorter-term loan with higher payments but less total interest.

Q: What is a balloon mortgage?
A: A loan with a large payment due at the end of the term.

Q: What is PITI?
A: Principal, Interest, Taxes, Insurance — total monthly housing cost.

Q: What is private mortgage insurance (PMI)?
A: Insurance protecting lenders when down payment is less than 20%.

Q: What is mortgage insurance vs homeowner's insurance?
A: PMI protects the lender; homeowner's protects you.

Q: What is preapproval?
A: A lender's preliminary commitment based on financial review.

Q: What is prequalification?
A: An informal estimate of borrowing capacity.

Q: What is debt-to-income ratio (DTI)?
A: Monthly debt payments divided by gross monthly income.

Q: What DTI do lenders typically prefer?
A: Below 43%; 36% or lower is ideal.

Q: What is loan-to-value ratio (LTV)?
A: Mortgage amount divided by property value, expressed as a percentage.

Q: What is a down payment?
A: The upfront cash payment toward a property purchase.

Q: What's a typical conventional down payment?
A: 20% to avoid PMI; 3-5% is possible with PMI.

Q: What is an FHA loan?
A: A government-backed loan with lower down payment requirements (often 3.5%).

Q: What is a VA loan?
A: A loan for US veterans with no down payment requirement.

Q: What is a USDA loan?
A: A rural housing loan with no down payment for eligible buyers.

Q: What is a jumbo loan?
A: A mortgage exceeding conforming loan limits.

Q: What is conforming loan?
A: A mortgage meeting Fannie Mae/Freddie Mac standards.

Q: What is Fannie Mae?
A: Federal National Mortgage Association — government-sponsored enterprise.

Q: What is Freddie Mac?
A: Federal Home Loan Mortgage Corporation — another GSE.

Q: What is the secondary mortgage market?
A: Where lenders sell mortgages to investors.

Q: What is mortgage securitization?
A: Pooling mortgages into bonds (MBS) sold to investors.

Q: What is refinancing?
A: Replacing an existing mortgage with a new one, often at better terms.

Q: What is a HELOC?
A: Home Equity Line of Credit — revolving credit secured by home equity.

Q: What is home equity?
A: The portion of a home owned outright; value minus debt.

Q: What is a cash-out refinance?
A: Refinancing for more than you owe and taking the difference in cash.

Q: What is foreclosure?
A: Legal process by which a lender repossesses property after default.

Q: What is a short sale?
A: Selling property for less than the mortgage owed, with lender approval.

Q: What is REO?
A: Real Estate Owned — bank-owned property after foreclosure.

Q: What is a property tax?
A: An annual tax based on assessed value of property.

Q: What is a property tax assessment?
A: The government's valuation for tax purposes.

Q: What is mill rate?
A: The amount of tax per $1,000 of assessed value.

Q: What is the homestead exemption?
A: Tax reduction for owner-occupied primary residences.

Q: What is depreciation (real estate)?
A: Tax deduction for the wear of investment property buildings.

Q: What is recapture (taxes)?
A: Tax owed when depreciation deductions are reversed at sale.

Q: What is a 1031 exchange?
A: Tax-deferred swap of investment properties.

Q: What is capital gains tax (real estate)?
A: Tax on profit from sale of property.

Q: What is the primary residence exclusion?
A: $250K single / $500K married excluded from capital gains on primary home sales.

Q: What is a real estate agent?
A: A licensed professional helping clients buy/sell/rent property.

Q: What is a Realtor?
A: An agent who is a member of the National Association of Realtors (NAR).

Q: What is a broker?
A: A licensed real estate professional who can own a brokerage and supervise agents.

Q: What is a listing agent?
A: The agent representing the seller.

Q: What is a buyer's agent?
A: The agent representing the buyer.

Q: What is dual agency?
A: When one agent represents both buyer and seller; restricted/regulated.

Q: What is a commission (real estate)?
A: The fee paid to agents, typically a percentage of sale price.

Q: What is the typical US commission?
A: Traditionally 5-6% of sale price split between agents; under recent change.

Q: What is the NAR settlement (2024)?
A: A legal settlement changing how buyer agent commissions are disclosed and paid.

Q: What is MLS?
A: Multiple Listing Service — agents' shared database of listings.

Q: What is a listing agreement?
A: A contract between seller and listing agent.

Q: What is exclusive right to sell?
A: A listing where the agent earns commission regardless of who finds the buyer.

Q: What is FSBO?
A: For Sale By Owner — selling without an agent.

Q: What is a real estate disclosure?
A: Required information sellers must provide about property condition.

Q: What are property defects?
A: Issues with the property that may affect value or safety.

Q: What is caveat emptor?
A: "Let the buyer beware" — disclosure rules vary by jurisdiction.

Q: What is a home inspection?
A: A non-invasive examination of property condition by a professional.

Q: What is a termite inspection?
A: Inspection for wood-destroying pests.

Q: What is a radon test?
A: Test for radon gas which can cause lung cancer.

Q: What is a sewer scope?
A: Camera inspection of sewer line condition.

Q: What is a punch list?
A: Items needing repair before closing.

Q: What is staging?
A: Preparing a home to appeal to buyers.

Q: What is curb appeal?
A: First impression from a home's exterior.

Q: What is the sales price?
A: The agreed-upon purchase price.

Q: What is the asking price?
A: The seller's listed price.

Q: What is a counteroffer?
A: A response modifying the original offer.

Q: What is a multiple offer situation?
A: When several buyers compete for the same property.

Q: What is an escalation clause?
A: An offer that automatically rises above competing offers up to a cap.

Q: What is a "highest and best" request?
A: Asking all bidders to submit their top offer by a deadline.

Q: What is gentrification?
A: Wealthier residents moving into a lower-income area, often raising costs.

Q: What is appreciation?
A: Increase in property value over time.

Q: What is depreciation (market)?
A: Decrease in property value.

Q: What is the time value of money in real estate?
A: Money today is worth more than future money due to interest and inflation.

Q: What is leverage (real estate)?
A: Using debt to amplify investment returns.

Q: What is cash-on-cash return?
A: Annual cash flow divided by cash invested.

Q: What is cap rate?
A: Capitalization rate — net operating income divided by property value.

Q: What is NOI?
A: Net Operating Income — revenue minus operating expenses (before debt/tax).

Q: What is gross income (rental)?
A: Total rent collected before expenses.

Q: What is operating expense ratio?
A: Operating expenses divided by gross income.

Q: What is the 1% rule (real estate investing)?
A: Monthly rent should equal 1% of purchase price; a quick screening rule.

Q: What is the 50% rule?
A: Operating expenses typically equal 50% of gross income.

Q: What is the BRRRR strategy?
A: Buy, Rehab, Rent, Refinance, Repeat — investing strategy.

Q: What is flipping?
A: Buying and quickly reselling property, often with renovations.

Q: What is wholesaling?
A: Contracting a property and assigning the contract to another buyer for a fee.

Q: What is house hacking?
A: Living in part of a property while renting out the rest.

Q: What is rental property?
A: Property purchased to earn rental income.

Q: What is vacation rental?
A: Short-term rental, often via platforms like Airbnb.

Q: What is a REIT?
A: Real Estate Investment Trust — publicly traded company owning income real estate.

Q: What is a private REIT?
A: A non-publicly-traded REIT, less liquid.

Q: What is REIT dividend requirement?
A: REITs must distribute 90%+ of taxable income to shareholders.

Q: What is a real estate fund?
A: A pooled investment in real estate properties.

Q: What is syndication (real estate)?
A: A group of investors pooling capital to buy properties.

Q: What is a sponsor (syndication)?
A: The organizer managing a real estate syndication deal.

Q: What is the difference between LP and GP?
A: Limited Partners are passive; General Partners manage operations.

Q: What is preferred return?
A: The first portion of profits paid to LPs before sponsor takes a cut.

Q: What is the waterfall (real estate)?
A: How profits are distributed among investors in a deal.

Q: What is a triple net lease (NNN)?
A: Tenant pays rent plus taxes, insurance, and maintenance.

Q: What is a double net lease (NN)?
A: Tenant pays rent plus taxes and insurance.

Q: What is a gross lease?
A: Landlord pays all expenses; tenant pays fixed rent.

Q: What is a percentage lease?
A: Tenant pays base rent plus percentage of sales (common in retail).

Q: What is CAM?
A: Common Area Maintenance — fees for shared spaces in commercial property.

Q: What is a tenant improvement allowance?
A: Money landlords give tenants to customize space.

Q: What is occupancy rate?
A: Percentage of units rented at a given time.

Q: What is vacancy rate?
A: Percentage of units unrented; inverse of occupancy.

Q: What is a property management company?
A: Firm handling day-to-day operations of rental properties.

Q: What is a property manager?
A: Person handling tenants, maintenance, and operations.

Q: What is a security deposit?
A: Money held by landlord to cover potential damage or unpaid rent.

Q: What is the typical security deposit?
A: One to two months' rent, varies by jurisdiction.

Q: What is fair housing law?
A: Federal law prohibiting housing discrimination based on protected classes.

Q: What are the federal protected classes (Fair Housing Act)?
A: Race, color, national origin, religion, sex, familial status, disability.

Q: What is ADA compliance?
A: Americans with Disabilities Act requirements for accessibility.

Q: What is eviction?
A: Legal process to remove tenants for cause.

Q: What is the eviction process?
A: Notice → court filing → judgment → sheriff enforcement (varies by jurisdiction).

Q: What is rent control?
A: Government limit on how much landlords can charge or raise rent.

Q: What is rent stabilization?
A: Similar to rent control but applies more broadly to rent increases.

Q: What is gross rent multiplier (GRM)?
A: Property price divided by gross annual rent.

Q: What is a real estate market cycle?
A: Recovery, expansion, hyper-supply, recession — typical phases.

Q: What is absorption rate?
A: Pace at which available properties sell in a market.

Q: What is months of inventory?
A: How long current listings would take to sell at current pace.

Q: What is a seller's market?
A: Conditions favoring sellers (low inventory, multiple offers).

Q: What is a buyer's market?
A: Conditions favoring buyers (high inventory, slower sales).

Q: What is a balanced market?
A: When supply and demand are roughly equal.

Q: What is housing affordability?
A: Whether typical household income can afford typical local housing.

Q: What is the price-to-income ratio?
A: Median home price divided by median household income.

Q: What is housing wealth?
A: Equity accumulated through home ownership.

Q: What is the wealth gap (housing)?
A: Disparity in home ownership and equity across demographics.

Q: What is redlining?
A: Historic discriminatory practice of denying services in certain neighborhoods.

Q: What is blockbusting?
A: Inducing rapid sales by spreading fear of demographic change; illegal.

Q: What is the importance of location?
A: Often the most important factor in real estate value.

Q: What are the three rules of real estate?
A: "Location, location, location."

Q: What is a "good" school district's value?
A: Higher home prices and demand.

Q: What is walkability?
A: How easy it is to accomplish errands on foot.

Q: What is transit-oriented development (TOD)?
A: Compact, walkable development near public transit.

Q: What is climate risk in real estate?
A: Impact of climate change on property values (flooding, wildfire, heat).

Q: What is flood insurance?
A: Coverage for water damage from flooding; often required in flood zones.

Q: What is FEMA flood zones?
A: Federal classifications of flood risk.

Q: What is sea level rise's effect on coastal property?
A: Increased risk; insurance and prices already affected in some areas.

Q: What are green building certifications?
A: LEED, ENERGY STAR, Passive House, etc.

Q: What is energy efficiency in real estate?
A: Better-insulated, well-equipped properties; growing buyer priority.

Q: What is the ROI of solar panels?
A: Varies; depends on cost, location, incentives, electricity prices.

Q: What is a CCR?
A: Covenants, Conditions, and Restrictions — rules governing properties in HOA communities.

Q: What is a setback?
A: Required distance from property lines for construction.

Q: What is a building permit?
A: Government authorization for construction or major renovation.

Q: What is a certificate of occupancy?
A: Document showing a building is safe and ready for use.

Q: What is a contractor's lien?
A: Legal claim by unpaid contractors against improved property.

Q: What is title search?
A: Examination of public records to verify property ownership history.

Q: What is a chain of title?
A: The history of ownership transfers for a property.

Q: What is adverse possession?
A: Acquiring title to property through long, open, hostile occupancy.

Q: What is eminent domain?
A: Government's power to take private property for public use with compensation.

Q: What is just compensation?
A: Fair market value paid in eminent domain takings.

Q: What is condemnation?
A: Process by which government exercises eminent domain.

Q: What is the difference between buying and renting?
A: Buying builds equity but requires capital; renting offers flexibility.

Q: What is the rent-vs-buy calculation?
A: Comparing total ownership cost to renting over time horizon.

Q: What is opportunity cost in buying?
A: What else could be done with the down payment money.

Q: What is house poor?
A: Spending so much on housing there's little left for other goals.

Q: What is the 28/36 rule?
A: Housing costs ≤ 28% of gross income; total debt ≤ 36%.

Q: What is leverage risk?
A: The risk that mortgage debt amplifies losses if values fall.

Q: What is the difference between long-term and short-term rental?
A: Long-term: monthly leases; short-term: nightly stays (e.g., Airbnb).

Q: What is the role of property insurance?
A: Protects against loss from fire, theft, weather; required by lenders.

Q: What is umbrella insurance?
A: Additional liability coverage beyond home/auto policies.

Q: What is title vesting?
A: The form in which title is held (sole, joint, tenancy in common, etc.).

Q: What is joint tenancy?
A: Co-ownership with right of survivorship.

Q: What is tenancy in common?
A: Co-ownership where shares can be willed independently.

Q: What is community property?
A: Marital property regime in some US states.

Q: What is a quitclaim deed?
A: Transfers any interest the grantor has without warranties.

Q: What is a warranty deed?
A: Transfers ownership with guarantees about title.

Q: What is a special warranty deed?
A: Guarantees only against issues during the seller's ownership.

Q: What is property due diligence?
A: Investigation before purchase: title, inspection, finances, zoning.

Q: What is the home buying timeline?
A: Typically 30-60 days from offer accepted to closing.

Q: What is escrow analysis?
A: Annual review of escrow account for taxes/insurance.

Q: What are seller concessions?
A: Costs the seller pays on behalf of the buyer (e.g., closing costs).

Q: What is the role of a real estate attorney?
A: Legal review of contracts, sometimes required at closing.

Q: What is the importance of professional help?
A: Real estate transactions are complex and high-stakes; mistakes are costly.