Foreclosure
REO (Real Estate Owned)
A concise definition for the California Real Estate Exam study guide.
Definition
Property that the lender has acquired through foreclosure. Standard disclosure duties apply. The lender becomes the owner/seller and has the same disclosure obligations as other sellers.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 10: Foreclosure & Distressed Property →