PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Equity is the owner's financial interest in property, calculated in a basic exam problem as current property value minus debts and liens against it.
Real Estate Calculations
Mortgage and ownership calculations
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Equity mean?
Equity is the owner's financial interest in property, calculated in a basic exam problem as current property value minus debts and liens against it.
How do you separate the nearest exam answer?
Equity is not cash in hand and is not always the same as seller net proceeds, which also subtract transaction costs and uses the actual sale figures.
What changes or stays the same in Georgia?
Georgia's security-deed title theory does not eliminate the borrower's equitable ownership. Loan paydown and value appreciation can increase equity, while new liens or falling value can reduce it.
A home worth $420,000 has a $265,000 loan balance and a $15,000 lien. Equity is $140,000.
Use current loan balances, not original loan amounts, and include all liens stated in the problem.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
An owner bought a home for $300,000 with a $270,000 loan. Today the home is worth $410,000, the loan balance is $240,000, and a home equity line has a $25,000 balance. What is the owner's equity?
- A
$170,000
- B
$115,000
- C
$35,000
- D
$145,000
Equity is current value minus all current debts and liens: $410,000 - $240,000 - $25,000 = $145,000. Using the original loan amount gives $115,000, and leaving out the second lien gives $170,000. The original purchase price no longer matters once current value is known.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Real Estate Calculations complete lesson
https://www.passgeorgiarealestate.com/math/equity
Official exam administration and content-outline source.
https://test-takers.psiexams.com/api/content/bulletin/4672Current Georgia security-deed, cancellation, lien, and power-of-sale authority through the state-authorized code portal.
https://www.lexisnexis.com/hottopics/gacode/Default.asp