1. In real estate, `fixtures` refer to:
A. Temporary decorations in a home.
B. Personal property easily removed from a property.
C. Items permanently attached to the property, which are usually included in a sale.
D. Agreements between buyers and sellers.
2. Which document legally transfers property ownership from the seller to the buyer?
A. Promissory Note
B. Deed
C. Mortgage
D. Lease Agreement
3. What is the purpose of a `property survey`?
A. To assess the interior design of a property.
B. To determine the market value of a property.
C. To establish the legal boundaries and dimensions of a property.
D. To check for structural damages in a building.
4. What is the meaning of `vacancy rate` in real estate?
A. The rate of property tax increase.
B. The percentage of unoccupied units in a rental property or market.
C. The rate of property sales in a given period.
D. The interest rate on a mortgage loan.
5. What does `HOA` stand for in the context of residential real estate?
A. Home Office Association
B. Home Owners` Association
C. Housing Opportunity Agency
D. Homestead Oversight Authority
6. What is the `loan-to-value ratio` (LTV) in mortgage lending?
A. The ratio of the loan amount to the borrower`s annual income.
B. The ratio of the loan amount to the appraised value of the property.
C. The ratio of the loan amount to the down payment.
D. The ratio of the loan interest rate to the prime rate.
7. In real estate, `closing costs` typically include:
A. Only the down payment on the property.
B. Expenses incurred by buyers and sellers during the property transfer process, beyond the property price.
C. Just the real estate agent`s commission.
D. Only the cost of property insurance.
8. Which of the following terms refers to the legal rights associated with ownership of real property?
A. Easement
B. Title
C. Appurtenance
D. Warranty Deed
9. In the context of property insurance, what does `replacement cost` coverage typically mean?
A. The original purchase price of the property.
B. The cost to repair or replace damaged property with new items at current market prices, without deducting for depreciation.
C. The depreciated value of the property at the time of loss.
D. The amount the property could be sold for in its damaged condition.
10. Which of these factors would typically INCREASE the value of a residential property?
A. A decrease in local school quality.
B. Being located in a noisy industrial area.
C. Recent renovations and upgrades to the property.
D. High crime rates in the neighborhood.
11. Which of the following terms BEST describes the process of determining the market value of a property?
A. Appraisal
B. Depreciation
C. Amortization
D. Escrow
12. What is the meaning of `amortization` in the context of real estate finance?
A. The decrease in the value of an asset over time.
B. The process of paying off a loan over time with regular payments.
C. The initial payment made when purchasing a property.
D. The insurance that protects a lender in case a borrower defaults.
13. 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 calculate property taxes.
D. To determine zoning regulations.
14. The term `due diligence` in real estate primarily refers to:
A. The process of advertising a property for sale.
B. A thorough investigation and verification of facts and details about a property before purchase.
C. The legal requirement to disclose property defects.
D. Negotiating the price of a property.
15. What is `capital gain` in real estate investment?
A. The total cost of property maintenance and repairs.
B. The profit made from selling a property for a higher price than it was purchased for.
C. The annual rental income from a property.
D. The amount of loan interest paid over the life of a mortgage.
16. What is the difference between `gross lease` and `net lease` in commercial real estate?
A. Gross lease is only for residential properties, while net lease is for commercial properties.
B. In a gross lease, the tenant pays a fixed rent and the landlord covers property expenses. In a net lease, the tenant pays rent plus some or all property expenses.
C. Gross lease is a short-term lease, while net lease is a long-term lease.
D. Gross lease involves higher rent than net lease.
17. Which professional is primarily responsible for showing properties to potential buyers and assisting sellers in marketing their properties?
A. Appraiser
B. Real Estate Agent
C. Property Manager
D. Home Inspector
18. Which of the following BEST describes `zoning` in urban planning and real estate?
A. The process of renovating old buildings.
B. Regulations that divide land in a municipality into districts specifying allowable uses.
C. The system of property taxation.
D. The process of landscaping and gardening.
19. Which of these is an example of `real estate development`?
A. Paying property taxes.
B. Renovating a kitchen in an existing house.
C. Constructing a new apartment building on vacant land.
D. Hiring a property manager.
20. What does `escrow` typically refer to in a real estate transaction?
A. A type of property insurance.
B. A neutral third party holding funds and documents until specific conditions are met.
C. The process of inspecting a property for defects.
D. A government tax on real estate transactions.
21. What is a `contingency` in a real estate contract?
A. A guaranteed profit for the seller.
B. A condition that must be met for the contract to be binding.
C. A type of property insurance.
D. A penalty for early termination of a lease.
22. What does `REIT` stand for in real estate investment?
A. Real Estate Investment Trust
B. Residential Energy Improvement Tax
C. Regional Economic Investment Team
D. Rental Equity Income Transfer
23. Which of the following is NOT typically considered `real property`?
A. Land
B. Buildings
C. Furniture
D. Mineral rights
24. What is a `lien` in real estate terms?
A. A type of architectural design.
B. A legal claim against a property as security for a debt or obligation.
C. A discount offered on a property`s price.
D. A type of environmental hazard.
25. What is `curb appeal` in real estate marketing?
A. The interior design and decoration of a property.
B. The attractiveness of a property from the street or sidewalk.
C. The proximity of a property to public transportation.
D. The energy efficiency rating of a property.
26. What is `private mortgage insurance` (PMI) typically used for?
A. To insure the property against natural disasters.
B. To protect the lender if a borrower defaults on a conventional mortgage with a low down payment.
C. To cover the costs of property maintenance and repairs.
D. To provide life insurance for the borrower.
27. What does `cap rate` (capitalization rate) measure in real estate investment?
A. The annual cost of property maintenance.
B. The rate of depreciation of a property over time.
C. The rate of return on a real estate investment, based on its income.
D. The interest rate on a mortgage loan.
28. What does `leasehold` mean in property ownership?
A. Owning the property outright, including the land.
B. Owning the property for a limited period under a lease agreement.
C. Owning only the building but not the land it sits on.
D. Renting out a property to tenants.
29. Which of the following best describes a `condominium`?
A. A single-family detached house with a large yard.
B. A type of apartment building where residents own individual units and share common areas.
C. A rental apartment complex managed by a large corporation.
D. A mobile home park.
30. Which term describes a situation where a tenant continues to occupy a property after the lease expires, without the landlord`s explicit consent?
A. Sublease
B. Holdover
C. Eviction
D. Assignment
