1. What is the primary difference between `leasehold` and `freehold` ownership?
A. Leasehold is for commercial properties, freehold is for residential.
B. Leasehold involves owning the building but not the land, freehold is owning both.
C. Freehold is for a limited time period, leasehold is for an indefinite period.
D. There is no significant difference; the terms are interchangeable.
2. What is `PMI` an acronym for in mortgage context?
A. Property Market Index
B. Private Mortgage Insurance
C. Public Municipal Investment
D. Primary Mortgage Institution
3. Which of the following is generally considered a `soft cost` in real estate development?
A. The cost of lumber and concrete.
B. Architectural and engineering fees.
C. Land acquisition costs.
D. Plumbing and electrical installation.
4. Which of the following is NOT typically a responsibility of a property manager?
A. Collecting rent from tenants.
B. Performing structural repairs on the building foundation.
C. Screening potential tenants.
D. Handling tenant complaints and maintenance requests.
5. What does `MLS` stand for in real estate?
A. Mortgage Lending System
B. Multiple Listing Service
C. Market Listing Standard
D. Maximum Loan Security
6. What is the purpose of a `seller`s disclosure` in a real estate transaction?
A. To guarantee the property`s value will increase.
B. To inform potential buyers of known material defects or issues with the property.
C. To outline the seller`s financing terms.
D. To provide a history of previous owners of the property.
7. What is a `fixture` in real estate?
A. Temporary decorations in a property.
B. Personal property easily removed from a property.
C. Items permanently attached to real property that are considered part of it.
D. A list of repairs needed for a property.
8. In real estate, what does `appraisal` primarily refer to?
A. The legal transfer of property ownership.
B. An estimation of a property`s market value.
C. The process of securing a mortgage loan.
D. A detailed inspection of a property`s structural integrity.
9. What is `title insurance` in a real estate transaction?
A. Insurance that covers damage to the property from natural disasters.
B. Insurance that protects against defects in the title of a property.
C. Insurance for real estate agents against liability claims.
D. Insurance for renters against loss of personal property.
10. What is a `comparative market analysis` (CMA) in real estate?
A. A detailed legal survey of property boundaries.
B. An estimation of a property`s value based on recent sales of similar properties in the area.
C. A comprehensive inspection of a property`s structural and mechanical systems.
D. A financial audit of a real estate company`s assets.
11. Which phrase describes the legal document that transfers ownership of real property from a seller to a buyer?
A. Promissory Note
B. Deed
C. Lien
D. Title Insurance
12. What is `amortization` in the context of a mortgage?
A. The process of selling a property quickly for less than its market value.
B. The schedule of paying off a loan over time in regular installments.
C. The insurance that protects the lender if the borrower defaults.
D. The initial fees charged by a lender to process a loan application.
13. What does `lien` mean in real estate?
A. A legal right or claim against a property.
B. A discount offered on a property`s price.
C. A type of building material.
D. The process of dividing a large property into smaller parcels.
14. In property descriptions, `square footage` refers to:
A. The size of the property`s land in acres.
B. The total living area of a building, measured in square feet.
C. The length of the property`s frontage on a street.
D. The estimated market value per square foot of the property.
15. The term `escrow` most commonly refers to:
A. A type of property insurance.
B. A neutral third party holding funds and documents during a transaction.
C. A government tax on property sales.
D. The initial down payment for a property purchase.
16. What is `zoning` in the context of real estate?
A. The process of property valuation for tax purposes.
B. Regulations that dictate how land can be used in specific areas.
C. The legal description of a property`s boundaries.
D. The insurance coverage for property damage.
17. What does `REIT` stand for in real estate investment?
A. Real Estate Investment Trust
B. Residential Equity Investment Tactic
C. Regional Economic Investment Trend
D. Rental Estate Income Tax
18. What is a `walkthrough` in the context of buying a house?
A. A virtual tour of the property online.
B. A final inspection of the property by the buyer before closing.
C. A preliminary appraisal of the property`s value.
D. A meeting between the buyer and seller to negotiate repairs.
19. What is `HOA` an abbreviation for in real estate?
A. Homeowner`s Option Agreement
B. Housing Opportunity Association
C. Homeowners Association
D. Homestead Ownership Act
20. A `contingency` in a real estate contract is:
A. An additional fee charged at closing.
B. A clause that must be met for the contract to be binding.
C. A penalty for backing out of a contract.
D. A type of home insurance.
21. Which of these terms describes a situation where a tenant remains in a property after the lease expires, without the landlord`s explicit permission?
A. Eviction
B. Holdover tenancy
C. Sublease
D. Assignment
22. Which of the following terms best describes a professional who assists clients in buying, selling, and managing properties?
A. Mortgage Broker
B. Real Estate Appraiser
C. Real Estate Agent/Realtor
D. Property Inspector
23. Which of these best describes `due diligence` in real estate?
A. The process of marketing a property to potential buyers.
B. The investigation and verification of facts and details about a property before a transaction.
C. The negotiation of the purchase price between buyer and seller.
D. The final walkthrough inspection before closing.
24. Which term describes the decrease in value of an asset over time?
A. Appreciation
B. Depreciation
C. Inflation
D. Liquidation
25. Which term refers to the process lenders use to determine if potential homebuyers can repay a mortgage?
A. Amortization
B. Underwriting
C. Foreclosure
D. Refinancing
26. What is the `loan-to-value ratio` (LTV) used for in mortgage lending?
A. To calculate the monthly mortgage payment.
B. To assess the risk of a loan based on the property value compared to the loan amount.
C. To determine the property tax rate.
D. To estimate the property`s appreciation rate.
27. In real estate marketing, what does `curb appeal` refer to?
A. The price of the property as listed online.
B. The attractiveness of a property from the street view.
C. The interior design and layout of a home.
D. The size of the property`s backyard.
28. In real estate finance, what does `equity` represent?
A. The total amount of the mortgage loan.
B. The difference between the property`s market value and the outstanding mortgage balance.
C. The initial down payment made on a property.
D. The monthly mortgage payment.
29. What is meant by `capital gains` in real estate investment?
A. The original cost of purchasing a property.
B. Profits earned from selling a property for more than its original purchase price.
C. The annual rental income generated by a property.
D. Expenses incurred in maintaining a property.
30. What is the difference between `gross lease` and `net lease` in commercial real estate?
A. Gross lease is for residential, net lease is for commercial.
B. In a gross lease, the tenant pays a fixed rent, while in a net lease, the tenant also pays property expenses.
C. Net lease has a shorter term than gross lease.
D. Gross lease includes utilities, net lease does not.
