1. What is `lien` in the context of real estate?
A. A type of property insurance.
B. A legal claim against a property as security for a debt.
C. A discount offered to first-time homebuyers.
D. A government regulation on property development.
2. What does `REIT` stand for in real estate finance?
A. Real Estate Investment Trust
B. Residential Equity Investment Team
C. Regional Economic Improvement Treasury
D. Rental Expense and Income Tax
3. What is the meaning of `fixtures` in real estate?
A. Temporary decorations used for open houses.
B. Items of personal property that are easily removed from a property.
C. Items permanently attached to the property that are considered part of the real estate.
D. Financial agreements related to property taxes.
4. What does `vacancy rate` indicate in the context of rental properties?
A. The rate of property value appreciation.
B. The percentage of rental units that are unoccupied at a given time.
C. The interest rate on a mortgage.
D. The rate of tenant turnover in a building.
5. What is `title insurance` in a real estate transaction?
A. Insurance that covers property damage from natural disasters.
B. Insurance that protects against financial loss from defects in a property`s title.
C. Insurance for personal belongings inside a property.
D. Insurance for mortgage payments in case of job loss.
6. What does `leasehold` estate mean?
A. Ownership of the property for an unlimited duration.
B. The right to possess and use property for a specified period under a lease agreement.
C. A property that is owned by a government entity.
D. A property with shared ownership among multiple individuals.
7. What does `escrow` mean in a real estate transaction?
A. A legal dispute over property lines.
B. A neutral third party holding funds and documents until specific conditions are met.
C. The initial deposit made by a buyer to show serious interest.
D. The final walkthrough inspection before closing.
8. Which of the following best describes a `comparable` property in real estate?
A. A property that is significantly larger and more luxurious than the subject property.
B. A property in a different location with vastly different features.
C. A recently sold property with similar characteristics to the subject property, used for valuation.
D. A property that is currently in foreclosure and being sold at auction.
9. What is a `broker` in real estate?
A. A type of property inspector.
B. A real estate professional who has a higher level of licensure and can manage other agents.
C. A lender who provides mortgages.
D. A lawyer specializing in property law.
10. Which of these terms is most closely related to property boundaries and legal descriptions?
A. Appurtenance
B. Metes and Bounds
C. Condemnation
D. Variance
11. Which of the following is an example of `capital improvement` to a property?
A. Routine landscaping and gardening.
B. Replacing a broken windowpane.
C. Installing a new roof.
D. Regular cleaning of gutters.
12. Which of these terms is NOT related to property ownership types?
A. Sole Proprietorship
B. Tenancy in Common
C. Joint Tenancy
D. Community Property
13. What is a `real estate agent` primarily responsible for?
A. Conducting property appraisals.
B. Managing property finances and loans.
C. Assisting clients in buying, selling, or renting properties.
D. Performing property inspections and repairs.
14. What is a `mortgage` in real estate?
A. A type of property insurance.
B. A loan secured by real property, used to purchase the property.
C. A tax levied on property transactions.
D. A government grant for first-time homebuyers.
15. What is the meaning of `contingency` in a real estate contract?
A. A mandatory fee paid by the buyer.
B. A clause in a contract that must be met for the contract to be binding.
C. The final closing date of the transaction.
D. A penalty for early termination of the contract.
16. Which term describes the legal right to use someone else`s land for a specific purpose?
A. Encroachment
B. Easement
C. Eminent Domain
D. Equity
17. Which of the following best describes `due diligence` in real estate?
A. The process of quickly closing a deal to secure the property.
B. The legal requirement to disclose all known defects of a property.
C. A comprehensive investigation of a property and the details of a transaction.
D. The initial offer price submitted by a potential buyer.
18. What is `zoning` in urban planning and real estate?
A. The process of dividing property into smaller lots for sale.
B. Regulations that divide land into districts based on permitted uses and development standards.
C. The system of property taxation based on location.
D. The process of renovating older buildings to modern standards.
19. Choose the term that is NOT typically associated with property valuation methods:
A. Cost Approach
B. Sales Comparison Approach
C. Income Capitalization Approach
D. Depreciation Schedule Approach
20. Which of the following is NOT typically considered part of `closing costs` in a real estate transaction?
A. Appraisal fees
B. Home renovations after purchase
C. Title insurance fees
D. Recording fees
21. What does `curb appeal` refer to in real estate marketing?
A. The price of the property in relation to its size.
B. The attractiveness of a property from the street or sidewalk.
C. The interior design and décor of a property.
D. The proximity of a property to public transportation.
22. What does `appreciation` mean in real estate?
A. The decrease in property value over time.
B. The increase in property value over time.
C. The cost of maintaining a property.
D. The initial price paid for a property.
23. Which of the following is NOT a typical type of real estate?
A. Residential
B. Commercial
C. Industrial
D. Fictional
24. What is the term for the estimated value of a property, often determined by a qualified professional?
A. Depreciation
B. Appraisal
C. Amortization
D. Valuation
25. What is the difference between `gross income` and `net operating income` (NOI) in real estate investment?
A. They are the same thing and used interchangeably.
B. Gross income is income after expenses, while NOI is income before expenses.
C. Gross income is total revenue before expenses, while NOI is revenue after operating expenses but before debt service and taxes.
D. Gross income includes rental income only, while NOI includes all income sources.
26. What is `foreclosure` in real estate?
A. The process of refinancing a mortgage.
B. The legal process by which a lender takes possession of a property due to the borrower`s failure to repay the mortgage.
C. A type of property inspection.
D. A government program to assist first-time homebuyers.
27. In real estate, `amortization` primarily refers to:
A. The increase in property value over time.
B. The process of decreasing the value of an asset over time.
C. The gradual repayment of a loan principal over time.
D. The cost of property maintenance and repairs.
28. In property listings, `sq ft` is an abbreviation for:
A. Square feet
B. Standard footage
C. Sales quota feet
D. Structural foundation
29. Which term refers to the process of legally taking private property for public use, even against the owner`s will, with fair compensation?
A. Foreclosure
B. Eminent Domain
C. Condemnation
D. Adverse Possession
30. What is the primary purpose of a `property management` company?
A. To provide loans for property purchases.
B. To oversee the daily operations and maintenance of rental properties on behalf of owners.
C. To assess the market value of properties for sale.
D. To draft legal contracts for real estate transactions.
