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Real Estate Practice : Lesson 3999
When we talk about equity we're considering the fact that the neighbors yard is equal to the size of our yard.
True or false ?

A. False
When the subject of equity is discussed when considering the matter of real estate or real estate financing equity refers to the difference between the amount of money that the property owner owes on the property  and the current market value of the property.
In simple mathematical terms :
Property Market Value - Property Debt = Equity
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