Question 1

ALASKA REC

Accepted Answer

Alaska Real Estate Commission: The governing body responsible for licensing and regulating real estate professionals in Alaska.

Question 2

Licensee

Accepted Answer

A person who has obtained a license to practice real estate in Alaska.

Question 3

Broker

Accepted Answer

An individual licensed to charge the public for real estate services, including selling, leasing, or managing property.

Question 4

Associate Broker

Accepted Answer

A licensed broker who chooses to work under the management of another broker.

Question 5

Salesperson

Accepted Answer

A licensed individual who performs real estate activities under a sponsoring broker.

Question 6

Statutory Non-employee

Accepted Answer

A licensee sponsored by a broker but not considered an employee under Alaska law.

Question 7

Designated Agency

Accepted Answer

When a broker designates one licensee to represent the seller and another to represent the buyer in the same transaction.

Question 8

Dual Agency

Accepted Answer

A situation where a real estate professional represents both the buyer and the seller in the same transaction.

Question 9

Fiduciary Duties

Accepted Answer

The responsibilities owed by a real estate professional to their client, including loyalty, obedience, disclosure, confidentiality, accountability, and reasonable care.

Question 10

Property Disclosure

Accepted Answer

A document detailing known defects or issues with a property, which must be provided by the seller in Alaska.

Question 11

Earnest Money

Accepted Answer

A deposit made by a buyer to show their serious intent to purchase a property.

Question 12

Contingency

Accepted Answer

A condition that must be met for a real estate transaction to proceed.

Question 13

Closing

Accepted Answer

The final step in a real estate transaction where ownership is transferred from the seller to the buyer.

Question 14

Title

Accepted Answer

Legal ownership of a property.

Question 15

Title Insurance

Accepted Answer

An insurance policy that protects the holder from financial loss due to defects in the title.

Question 16

Escrow

Accepted Answer

A neutral third party that holds funds or documents until conditions of a contract are met.

Question 17

Deed

Accepted Answer

A legal document that transfers ownership of a property.

Question 18

Mortgage

Accepted Answer

A loan used to finance a real estate purchase, secured by the property.

Question 19

Foreclosure

Accepted Answer

A legal process where a lender repossesses a property due to nonpayment of the mortgage.

Question 20

Short Sale

Accepted Answer

A situation where a homeowner sells their property for less than the amount owed on the mortgage.

Question 21

Fair Housing Act

Accepted Answer

A federal law that prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability.

Question 22

Americans with Disabilities Act (ADA)

Accepted Answer

A federal law that prohibits discrimination against individuals with disabilities in all areas of public life.

Question 23

Zoning

Accepted Answer

Government regulations that control the use of land within a jurisdiction.

Question 24

Easement

Accepted Answer

A right to cross or use someone else's land for a specified purpose.

Question 25

Encroachment

Accepted Answer

An intrusion on a person's property without consent.

Question 26

Adverse Possession

Accepted Answer

The acquisition of title to property through open, notorious, and continuous possession for a certain period of time.

Question 27

Homestead Exemption

Accepted Answer

A law that protects a portion of a home’s value from creditors.

Question 28

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

A federal law that provides consumers with improved disclosures of settlement costs and eliminates abusive practices.

Question 29

Truth in Lending Act (TILA)

Accepted Answer

A federal law designed to promote the informed use of consumer credit.

Question 30

Predatory Lending

Accepted Answer

Unethical lending practices that impose unfair terms on borrowers.

Question 31

Appraisal

Accepted Answer

A professional estimate of a property’s market value.

Question 32

Comparative Market Analysis (CMA)

Accepted Answer

An evaluation of similar, recently sold homes to determine the current value of a property.

Question 33

Capitalization Rate

Accepted Answer

The rate of return on a real estate investment property based on the income the property is expected to generate.

Question 34

Gross Rent Multiplier (GRM)

Accepted Answer

A calculation used to determine the value of a rental property based on its gross rental income.

Question 35

Depreciation

Accepted Answer

A decrease in the value of a property over time due to wear and tear, decay, or other factors.

Question 36

1031 Exchange

Accepted Answer

A provision in the IRS tax code that allows for the deferral of capital gains taxes when selling a property and reinvesting the proceeds in a like-kind property.

Question 37

Cost Recovery (Depreciation)

Accepted Answer

An IRS allowance for recovery of cost basis over the useful life of a property.

Question 38

Leasehold Estate

Accepted Answer

An estate that gives the holder (tenant) a temporary right to possession, with landlord retaining the title.

Question 39

Fee Simple Estate

Accepted Answer

The highest ownership interest in a property, which allows the holder full use and control.

Question 40

Tenancy in Common

Accepted Answer

A type of ownership where two or more people own property together, each with a separate and distinct share.

Question 41

Joint Tenancy

Accepted Answer

A type of ownership where two or more people own a property with rights of survivorship.

Question 42

Condominium

Accepted Answer

A type of ownership where an individual owns a unit within a multi-unit building along with a proportionate interest in the common elements.

Question 43

Planned Unit Development (PUD)

Accepted Answer

A type of building development and a regulatory process, featuring maximized shared open space and high-density residential units.

Question 44

Cooperative (Co-op)

Accepted Answer

A type of ownership where residents own shares in the corporate entity that owns the property, not the units themselves.

Question 45

Eminent Domain

Accepted Answer

The right of a government to take private property for public use, with fair compensation.

Question 46

Inverse Condemnation

Accepted Answer

An action taken by a property owner against the government to recover the value of property taken by the government.

Question 47

Land Trust

Accepted Answer

A legal agreement where a property owner transfers the title to a trustee, who holds it for the benefit of another party.

Question 48

Real Estate Investment Trust (REIT)

Accepted Answer

A company that owns, operates, or finances income-generating real estate.

Question 49

Property Management

Accepted Answer

The operation, control, maintenance, and oversight of real estate.

Question 50

Commercial Real Estate

Accepted Answer

Property that is used exclusively for business purposes.

Question 51

Residential Real Estate

Accepted Answer

Property that is used for dwelling purposes.

Question 52

Industrial Real Estate

Accepted Answer

Property that is used for manufacturing or warehousing.

Question 53

Real Estate Owned (REO)

Accepted Answer

Property owned by a lender—usually a bank—after an unsuccessful sale at a foreclosure auction.

Question 54

Property Tax Lien

Accepted Answer

A legal claim against a property for unpaid property taxes.

Question 55

Tax Deed Sale

Accepted Answer

A public auction where properties with unpaid taxes are sold to the highest bidder.

Advanced Concepts for Alaska Real Estate Agent Exam