1. What is the meaning of 'escrow′ in real estate transactions?
A. A type of property inspection
B. A neutral third party holding funds or documents
C. A government tax on property sales
D. The final stage of property renovation
2. Which document outlines the terms and conditions of renting a property?
A. Deed
B. Lease Agreement
C. Mortgage
D. Appraisal Report
3. In real estate finance, what is 'amortization′?
A. The process of insuring a mortgage
B. The reduction of loan debt over time through regular payments
C. The calculation of property taxes
D. The initial cost to acquire a property
4. In real estate, what does 'REIT′ stand for?
A. Real Estate Investment Trust
B. Residential Energy Improvement Tax
C. Regional Economic Investment Treaty
D. Rental Equity and Income Threshold
5. Which type of real estate refers to properties used for business purposes?
A. Residential real estate
B. Commercial real estate
C. Agricultural real estate
D. Industrial real estate
6. Which term describes the process of negotiating the price and terms of a real estate deal?
A. Appraisal
B. Closing
C. Negotiation
D. Inspection
7. What is 'capital gain′ in real estate investment?
A. The initial investment in a property
B. The profit from selling an asset for a higher price than paid
C. The annual rental income from a property
D. The cost of property maintenance and repairs
8. What does 'curb appeal′ refer to in real estate?
A. The total square footage of a property
B. The attractiveness of a property from the street
C. The estimated market value of a home
D. The legal boundaries of a property
9. What is 'floor plan′ in real estate listings?
A. The type of flooring material used in a property
B. A diagram showing the layout of rooms in a property
C. The estimated cost to renovate the flooring
D. Regulations about floor space ratios in zoning laws
10. What is a 'lien′ in real estate?
A. A type of homeowner′s insurance
B. A legal claim against a property as security for a debt
C. A discount offered on property taxes
D. The process of dividing a large property into smaller lots
11. What is the purpose of a 'home inspection′ during a real estate purchase?
A. To determine the market value of the property
B. To assess the structural and mechanical condition of the property
C. To negotiate the final sale price
D. To secure financing for the mortgage
12. Which of the following best describes 'due diligence′ in real estate?
A. Paying property taxes on time
B. The process of thorough investigation before a transaction
C. Obtaining homeowner′s insurance
D. The act of listing a property for sale
13. What is a 'contingency′ in a real estate contract?
A. A mandatory property tax payment
B. A condition that must be met for the contract to be binding
C. A clause that automatically renews the contract
D. The legal description of the property boundaries
14. What does 'appraisal′ mean in real estate?
A. The process of negotiating a sale price
B. A professional estimate of a property′s market value
C. The legal transfer of property ownership
D. A detailed inspection of a property′s structural integrity
15. What does 'vacancy rate′ indicate in the rental market?
A. The percentage of properties sold in a given period
B. The percentage of available rental properties that are unoccupied
C. The average rental price in a specific area
D. The rate of property tax increase annually
16. What is 'property tax′?
A. Tax on income earned from real estate investments
B. A tax levied by local governments on property owners
C. Tax paid when selling a property for a profit
D. A federal tax on all real estate transactions
17. What is 'equity′ in homeownership?
A. The total amount paid for property taxes annually
B. The difference between the market value of a home and the outstanding mortgage balance
C. The initial down payment made when purchasing a home
D. The cost of homeowner′s insurance premiums
18. Which of these is NOT typically a responsibility of a property manager?
A. Collecting rent from tenants
B. Representing a buyer in purchasing property
C. Handling property maintenance and repairs
D. Screening potential tenants
19. What does 'HOA′ stand for in the context of real estate?
A. Homeowner′s Opportunity Association
B. Housing Operations Authority
C. Homeowners Association
D. Homestead Ownership Agreement
20. Which term refers to the legal right to use someone else′s property for a specific purpose?
A. Lien
B. Easement
C. Zoning
D. Variance
21. Which of these is a common type of residential property?
A. Warehouse
B. Shopping Mall
C. Condominium
D. Factory
22. What is the purpose of a 'title search′ in real estate?
A. To estimate the property′s market value
B. To verify the legal ownership and history of a property
C. To inspect the physical condition of a building
D. To secure financing for a property purchase
23. What is the difference between a 'broker′ and a 'real estate agent′?
A. A broker is licensed to sell commercial real estate, while an agent is not.
B. A broker has more education and licensing than an agent and can operate independently.
C. An agent works with buyers, while a broker works with sellers.
D. There is no practical difference; the terms are interchangeable.
24. Which factor generally LEAST affects property appraisal value?
A. Location of the property
B. Recent renovations to the kitchen
C. The color of the front door
D. Size and condition of the property
25. Which of the following is considered 'real property′?
A. Furniture inside a house
B. A car parked in the driveway
C. Land and anything permanently attached to it
D. Stocks and bonds related to real estate companies
26. Which of these is NOT a typical type of mortgage?
A. Fixed-rate mortgage
B. Adjustable-rate mortgage (ARM)
C. Balloon mortgage
D. Variable-term lease
27. Which term best describes a professional who acts as an intermediary between buyers and sellers of real estate?
A. Appraiser
B. Real Estate Agent
C. Property Manager
D. Mortgage Lender
28. What is the meaning of 'zoning′ in urban planning and real estate?
A. The process of evaluating property value for tax purposes
B. Regulations that dictate how land can be used in specific areas
C. The system of surveying and mapping property boundaries
D. Building codes that specify construction standards
29. What is a 'fixture′ in real estate terms?
A. Temporary decorations in a home
B. Personal belongings of the seller
C. An item permanently attached to the property
D. A type of real estate insurance policy
30. What is 'closing costs′ in a real estate transaction?
A. The agent′s commission fee
B. Expenses incurred in finalizing the property sale
C. The cost of renovating a property after purchase
D. The initial deposit made when offering to buy a property
