1. What does 'vacancy rate′ indicate in the rental market?
A. The rate of property value appreciation.
B. The percentage of unoccupied rental units.
C. The average rental price in an area.
D. The rate of tenant turnover.
2. What is the role of a 'real estate agent′?
A. To provide legal advice on property transactions.
B. To manage property maintenance and repairs.
C. To assist clients in buying, selling, and renting properties.
D. To finance real estate developments.
3. What is 'zoning′ in real estate?
A. Insurance regulations for properties.
B. Government regulations controlling land use.
C. Property valuation methods.
D. Tax laws for real estate.
4. What is a 'fixture′ in real estate?
A. Temporary decorations in a home.
B. Personal property included in a sale.
C. Items permanently attached to the property.
D. Loose furniture in a property.
5. Which of the following best describes 'property depreciation′ for tax purposes?
A. The actual decrease in a property′s market value.
B. An accounting method to deduct the cost of a property over its useful life.
C. The cost of repairing damages to a property.
D. The initial down payment made on a property.
6. Which of these terms refers to the physical land and improvements, plus the legal rights to own or use them?
A. Personal Property
B. Real Estate
C. Chattel
D. Intangible Assets
7. Which of the following is a synonym for 'landlord′?
A. Tenant
B. Lessee
C. Lessor
D. Occupant
8. Which of the following is an example of 'real property′?
A. A mobile home on wheels
B. Land and buildings
C. Furniture inside a house
D. A car parked on the driveway
9. What does 'REIT′ stand for in the context of real estate investment?
A. Real Estate Investment Trust
B. Residential Equity Investment Treasury
C. Rental Expense Income Tax
D. Regional Economic Improvement Trust
10. In real estate, 'amortization′ primarily refers to:
A. The total interest paid on a loan.
B. The process of paying off a loan over time.
C. The decrease in property value over time.
D. The initial down payment on a property.
11. Which of these phrases is often used to describe a property′s location advantage?
A. Fixer-upper potential
B. Location, location, location
C. Turnkey ready
D. Sweat equity opportunity
12. Which of the following best describes 'escrow′ in a real estate transaction?
A. A type of property insurance.
B. A neutral third party holding funds and documents.
C. A government tax on property sales.
D. The final meeting to sign closing documents.
13. What is 'curb appeal′ in real estate marketing?
A. The total square footage of a property.
B. The attractiveness of a property from the street.
C. The interior design of a property.
D. The price reduction for quick sale.
14. What is the difference between 'gross income′ and 'net operating income′ (NOI) in real estate investment?
A. Gross income includes expenses, while NOI does not.
B. NOI is gross income minus operating expenses.
C. Gross income is calculated after debt service, NOI is before.
D. They are the same thing in real estate finance.
15. What is 'leverage′ in real estate investing?
A. Using borrowed capital to increase potential returns.
B. Reducing property taxes through legal means.
C. Negotiating lower interest rates on loans.
D. Diversifying investment portfolios.
16. What is 'title insurance′ designed to protect against?
A. Damage to the property from natural disasters.
B. Financial loss from defects in the property title.
C. Loss of rental income due to vacancy.
D. Decreases in property market value.
17. What is the meaning of 'as-is′ condition in a real estate listing?
A. The property is newly renovated.
B. The seller will make repairs after inspection.
C. The property is sold in its current condition, with no seller warranties.
D. The price is negotiable based on inspection findings.
18. What does 'HOA′ stand for in real estate?
A. Home Owners′ Assistance
B. Housing Opportunity Association
C. Homeowners Association
D. Homestead Ownership Agreement
19. What does 'appraisal′ mean in the context of real estate?
A. A legal document transferring property ownership.
B. An estimate of a property′s market value.
C. The process of renovating a property.
D. Insurance coverage for property damage.
20. What is a 'lien′ in real estate terms?
A. A type of home warranty.
B. A legal claim against a property.
C. A discount on property taxes.
D. A government grant for home buyers.
21. What is a '1031 exchange′ in US real estate law?
A. A tax penalty for selling investment property.
B. A method to defer capital gains taxes when selling and reinvesting in similar property.
C. A government program for first-time homebuyers.
D. A type of mortgage refinance option.
22. Which document transfers ownership of real property from seller to buyer?
A. Promissory Note
B. Deed
C. Mortgage
D. Lease Agreement
23. What does 'cap rate′ (capitalization rate) measure in real estate?
A. The rate of property appreciation over time.
B. The annual rate of return on a real estate investment.
C. The interest rate on a mortgage loan.
D. The percentage of property taxes paid annually.
24. Which professional is primarily responsible for determining property lines and boundaries?
A. Real Estate Appraiser
B. Land Surveyor
C. Home Inspector
D. Title Attorney
25. In the phrase 'Subject to financing′, what contingency is being referred to in a real estate offer?
A. The buyer′s ability to secure a mortgage.
B. The seller′s agreement to lower the price.
C. Satisfactory results from a home inspection.
D. The property appraising at or above the purchase price.
26. Which of these is NOT typically a 'closing cost′ for a home buyer?
A. Appraisal fee
B. Property taxes
C. Home renovation expenses
D. Title insurance
27. What is the primary purpose of a 'property management′ company?
A. To sell real estate properties.
B. To oversee the daily operations of rental properties.
C. To provide financing for property purchases.
D. To assess property values for tax purposes.
28. Which term describes the legal right to cross someone else′s property?
A. Encroachment
B. Easement
C. Eminent domain
D. Equity
29. What does 'due diligence′ mean in real estate investing?
A. The process of quickly buying a property.
B. Thorough investigation of a property and transaction.
C. Negotiating the lowest possible price.
D. Ignoring potential risks to close a deal faster.
30. What is 'capital gain′ in real estate investment?
A. The original amount invested in a property.
B. Profit from selling a property for more than its purchase price.
C. The annual rental income from a property.
D. The cost of property maintenance over time.
