1. What does 'REIT′ stand for in real estate?
A. Real Estate Investment Trust
B. Residential Equity and Investment Transaction
C. Registered Estate and Insurance Title
D. Rental Exchange and Investment Treasury
2. Which term defines the legal right to use someone else′s land for a specific purpose, like a driveway?
A. Encroachment
B. Easement
C. Eminent Domain
D. Equity
3. A 'Fixture′ in real estate is best described as:
A. Any movable property within the house.
B. Personal belongings of the seller.
C. An item permanently attached to the property that is considered part of the real estate.
D. Temporary decorations added for staging purposes.
4. What is 'Property Management′?
A. The act of buying and selling properties for profit.
B. The oversight and operation of real estate properties on behalf of the owner.
C. The process of obtaining a mortgage for a property.
D. The legal procedure for transferring property ownership.
5. What is 'Appreciation′ in real estate?
A. The decrease in value of a property over time.
B. An increase in the value of a property over time.
C. The initial cost to purchase a property.
D. The annual maintenance costs of a property.
6. Which of the following is NOT typically considered 'Personal Property′ in a real estate context?
A. Refrigerator (not built-in)
B. Curtains
C. Built-in bookshelves
D. Area rugs
7. In the context of property insurance, what is a 'Premium′?
A. The amount the insurance company pays for a claim.
B. The regular payment made by the policyholder to maintain insurance coverage.
C. The deductible amount before insurance coverage kicks in.
D. The total value of the insured property.
8. What does 'Contingency′ mean in a real estate contract?
A. An additional fee paid to the real estate agent.
B. A condition that must be met for the contract to become binding.
C. A type of homeowner′s insurance.
D. A clause that allows the seller to back out of the contract.
9. What is 'Amortization′ in the context of a mortgage?
A. The total interest paid over the life of the loan.
B. The process of gradually paying off a loan through regular payments.
C. The penalty for paying off a mortgage early.
D. The initial down payment required for a mortgage.
10. What is 'Loan-to-Value Ratio′ (LTV) in mortgage lending?
A. The ratio of the loan amount to the appraised value of the property.
B. The total amount of interest paid on a loan.
C. The monthly mortgage payment amount.
D. The credit score required to get a loan.
11. In real estate marketing, 'Curb Appeal′ refers to:
A. The total square footage of the property.
B. The attractiveness of a property from the street.
C. The interior design and layout of a home.
D. The price reduction offered to attract buyers.
12. What does 'Escrow′ typically represent in a real estate transaction?
A. The agent′s commission fee.
B. A neutral third party holding funds and documents until conditions are met.
C. The homeowner′s insurance policy.
D. The final walkthrough inspection of the property.
13. Which term describes the illegal practice of guiding prospective homebuyers to or away from certain neighborhoods based on race?
A. Redlining
B. Steering
C. Blockbusting
D. Discrimination
14. Which of the following terms best describes the process of assessing the market value of a property?
A. Depreciation
B. Appraisal
C. Appreciation
D. Valuation
15. What is a 'Comparative Market Analysis′ (CMA) used for in real estate?
A. To assess the structural integrity of a building.
B. To estimate the value of a property by comparing it to similar recently sold properties.
C. To determine the property tax rate.
D. To negotiate the terms of a mortgage.
16. What does 'Vacancy Rate′ mean in the context of rental properties?
A. The rate of tenant turnover in a building.
B. The percentage of unoccupied units in a rental property or market.
C. The rate at which rent prices are increasing.
D. The percentage of properties sold in an area.
17. In real estate, 'Due Diligence′ primarily refers to:
A. The initial offer price for a property.
B. The process of thoroughly investigating a property before purchase.
C. The legal contract binding the buyer and seller.
D. The marketing strategy used to sell a property quickly.
18. What is the purpose of 'Staging′ a home for sale?
A. To increase the property taxes.
B. To make the home more appealing to potential buyers.
C. To assess the structural integrity of the home.
D. To reduce the asking price of the home.
19. What is a 'Broker′ in real estate?
A. A person who appraises property values.
B. A licensed professional who acts as an intermediary in real estate transactions.
C. A company that provides mortgages.
D. An inspector who checks the condition of a property.
20. What is the difference between 'Gross Rent′ and 'Net Rent′ in commercial real estate?
A. Gross rent includes property taxes; net rent does not.
B. Gross rent includes all operating expenses; net rent is rent before operating expenses.
C. Gross rent is for residential properties; net rent is for commercial properties.
D. Gross rent is the advertised rent; net rent is the negotiated rent.
21. What does 'Lien′ mean in real estate?
A. A type of property insurance.
B. A legal claim against a property, usually for unpaid debt.
C. A discount offered to first-time homebuyers.
D. The process of property inspection.
22. What is 'Equity′ in real estate?
A. The total value of a property.
B. The portion of the property′s value owned outright by the homeowner, calculated as property value minus outstanding mortgage balance.
C. The interest rate on a mortgage.
D. The initial down payment made on a property.
23. What is 'Capital Gain′ in real estate?
A. The original price paid for a property.
B. The profit earned from selling a property for more than its original cost.
C. The annual property tax.
D. The cost of maintaining a property.
24. Which of these is an example of 'Commercial Real Estate′?
A. A single-family home
B. An apartment building
C. An office building
D. A condominium
25. Which of these best describes 'Real Property′?
A. Movable possessions like furniture and appliances.
B. Land and anything permanently attached to it.
C. Financial assets related to real estate investments.
D. Contracts and agreements in real estate transactions.
26. What is a 'Walkthrough′ in a real estate transaction?
A. A professional property appraisal.
B. A final inspection of the property by the buyer before closing.
C. A marketing tour for potential buyers.
D. A meeting to sign the closing documents.
27. The term 'Closing Costs′ refers to:
A. The price of renovations after purchasing a property.
B. Expenses incurred by buyers and sellers to finalize a real estate transaction.
C. The monthly mortgage payments.
D. The cost of staging a home for sale.
28. Which of the following best describes 'Depreciation′ in real estate investment?
A. An increase in property value over time.
B. A decrease in property value due to wear and tear or market conditions.
C. The profit made from selling a property.
D. The tax benefits of owning a property.
29. What is the purpose of a 'Title Search′ in real estate?
A. To determine the market value of the property.
B. To verify the legal ownership of the property and uncover any claims or encumbrances.
C. To inspect the physical condition of the property.
D. To arrange for homeowner′s insurance.
30. What is 'Zoning′ in real estate?
A. The process of setting property taxes.
B. Regulations that dictate how land can be used in specific areas.
C. The measurement of a property′s square footage.
D. The code of ethics for real estate agents.
