Real estate agents frequently use a long list of acronyms. In order to pass your exam, successfully launch your real estate career, and get familiar with the industry, there are a few you should know. These acronyms can be used for everything, from describing advertising strategies to outlining property rights. But keeping all of them memorized can be a challenge – especially when it comes to passing your real estate exam.
That’s why we created this helpful guide to help you understand some of the most common acronyms for your real estate exam, and give some study tips that you can implement to ensure you are fully prepared to take the exam. Once you get these down, you’ll be well on your way to passing the test!
9 Acronyms to remember
A.A.I.D – Steps of Advertising
This acronym describes the process of grabbing attention through advertising.
Attention – ad must grab people’s attention
Action – ad must inspire action
Interest – ad must lead to greater interest beyond initial attention
Desire – ad must appeal to the audience’s needs and wants
A.C.O.L.D – Duties of a Fiduciary Relationship
This acronym describes the relationship between a real estate agent and a client.
Accountable – agent must account for all funds
Care & Skill – agent must use skills to the best of their ability
Obedience – agent must obey legal orders by the client
Loyalty – agent owes loyalty to the client’s wishes above their own
Disclose All Information – agent must disclose information that benefits the client
C.H.A.O – Adverse Possession
This acronym describes claiming a legal title to the land without paying for it.
Continuous Use – regular, uninterrupted use
Hostile – use is in conflict with the true owner
Actual & Exclusive – must not occupy land with the true owner
Open & Notorious – occupation of the land must be in public view
C.L.O.C – Valid Contract
This acronym describes the legality of a contract.
Competent – person has the legal capacity to contract
Legal Use – contract must be for a lawful purpose
Offer & Acceptance – mutual consent
Consideration – anything of value, such as money
D.U.P.E – Bundle of Rights
This acronym refers to the legal rights transferred to the buyer of a property.
Disposition – right to transfer ownership, permanently or temporarily
Use – titleholder can use property in any legal manner
Possession – titleholder is the legal owner
Exclusion – right to limit who may enter the property
M.A.R.I.A. – Fixture Test
This acronym describes personal property that later becomes part of a real estate transfer because of the way it’s associated with the property.
Method – how it’s attached to the property
Adaptability – describes if the item is integral to the property
Relationship – between disputing parties
Intention – was it meant to be permanent?
Agreement – refers to any contracts between the parties
P.E.T.E – Government Powers
This acronym describes the four powers that the government holds over your property.
Police Powers – the right to regulate property to protect the community
Eminent Domain – the government can take over property for public use
Taxation – real estate taxes
Escheat – property reverts to the government instead of an heir
S.T.U.D – Elements of Value
This acronym refers to how property is valued.
Scarcity – the fewer comparable properties, the higher the value
Transferability – must be transferable with a clear title
Utility – how property can be used
Demand – when demand is high, value increases
T.T.I.P – Joint Tenancy
This acronym refers to the four factors that determine joint tenancy.
Time – owners must get titles at the same time
Title – each owner’s name must be on the title
Interest – owners must have equal ownership
Possession – owners have equal rights to possession of the property
If you want to ace your exam, try out some of these helpful memorization tips:
- Break it up. When memorizing a long list of information, don’t try to do it all in one sitting. Instead, learn a couple of acronyms at a time and space out your study sessions over several days.
- Quiz yourself. Give yourself some practice tests before the big day. First, write out the acronyms. Then try to fill in the blanks without looking. This process will help you figure out which ones need more work.
- Teach them to someone else. Repeating and teaching the acronyms out loud and explaining them to a friend or family member will help you cement the ideas in your brain.
- Get a good night’s sleep. It may seem obvious, but studies demonstrate a boost in performance when you’re well-rested.