Real Estate Exam Question Decoding and Carroll Method

Vocabulary flashcards covering the C.A.R.R.O.L.L. question-decoding methodology, math formulas, proration concepts, and linguistic triggers for real estate licensing exams.

Lewis Carroll method

An approach to symbolic logic that involves breaking complicated statements into smaller pieces, identifying what is true, and eliminating conclusions that do not logically follow.

Classify (C.A.R.R.O.L.L. method)

The first step in decoding an exam question: determining whether the question is a definition, legal rule, calculation, scenario, or exception.

Ask (C.A.R.R.O.L.L. method)

The second step in decoding an exam question: determining exactly what the question is asking you to identify or calculate.

Recognize (C.A.R.R.O.L.L. method)

The third step in decoding an exam question: circling trigger words such as NOT, EXCEPT, ALWAYS, ONLY, FIRST, and MOST.

Reduce (C.A.R.R.O.L.L. method)

The fourth step in decoding an exam question: separating important facts from distracting details.

Organize (C.A.R.R.O.L.L. method)

The fifth step in decoding an exam question: identifying the parties, timeline, numbers, and governing rule.

Logic-check (C.A.R.R.O.L.L. method)

The sixth step in decoding an exam question: eliminating answer choices that contradict a known rule or the facts.

Lock in (C.A.R.R.O.L.L. method)

The final step in decoding an exam question: selecting the best-supported answer and verifying that it directly answers the question.

Property tax lien priority

The standard exam principle establishing that real estate taxes and special assessments generally take priority over other liens.

Statutory year

A standard used in Kaplan proration questions consisting of a $360\text{-day}$ year with twelve $30\text{-day}$ months.

NOT / EXCEPT trigger words

Wording that signals the test-taker to reverse the goal and find the incorrect statement or the exception to the general rule.

ALWAYS / NEVER trigger words

Absolute wording warning the test-taker to search for exceptions before accepting, as it may be disproved by a single applicable exception.

FIRST / PRIORITY trigger words

Wording signaling the test-taker to identify the legal or procedural order, determining which claim, lien, right, or step comes first under the applicable rule.

MAY / MUST trigger words

Question wording requiring the test-taker to distinguish between permission ($\text{MAY}$) and obligation ($\text{MUST}$).

BEST / MOST trigger words

Question wording directing the test-taker to compare all options rather than just selecting the first plausible one.

THROUGH CLOSING trigger words

Proration wording that indicates the test-taker must include the day of closing when counting days.

NET / GROSS trigger words

Wording signaling the test-taker to determine whether fees and expenses have already been deducted.

Assumption vs. Subject to

Loan transfer terms where assumption involves buyer personal liability, while 'subject to' generally leaves the original borrower personally liable.

Three components of a percentage problem

The three elements involved in real estate percentage calculations: Part, Rate, and Total.

Formula for Part

$$\text{Part} = \text{Total} \times \text{Rate}$$

Formula for Total

$$\text{Total} = \text{Part} \div \text{Rate}$$

Formula for Rate

$$\text{Rate} = \text{Part} \div \text{Total}$$

Formula for Commission

$$\text{Commission} = \text{Sales price} \times \text{Commission rate}$$

Gross price formula (after commission)

$\text{Gross price} = \text{Desired net} \div (1 - \text{Commission rate})$, assuming no other expenses.

Simple-interest formula

$$\text{Interest} = \text{Principal} \times \text{Annual rate} \times \text{Time in years}$$