1. What does `REIT` stand for in real estate investment?
A. Real Estate Investment Trust
B. Residential Equity Investment Team
C. Rental and Exchange Investment Treasury
D. Regional Economic Investment Transaction
2. The term `amortization` is most closely associated with which aspect of real estate?
A. Property valuation
B. Mortgage repayment
C. Property inspection
D. Zoning regulations
3. In real estate, what does `curb appeal` primarily refer to?
A. The total square footage of the property.
B. The attractiveness of a property from the street.
C. The interior design of the house.
D. The property taxes associated with the house.
4. What is a `lien` in real estate?
A. A type of property insurance.
B. A legal claim or right against a property, usually for unpaid debt.
C. A government regulation on property usage.
D. A discount offered to first-time homebuyers.
5. Which of the following best describes `appraisal` in real estate?
A. A detailed inspection of the property`s structural components.
B. An estimate of a property`s market value by a qualified professional.
C. The legal process of transferring property ownership.
D. The agreement between a landlord and a tenant.
6. What is the difference between `gross income` and `net operating income` (NOI) in commercial real estate?
A. Gross income is income after expenses; NOI is income before expenses.
B. Gross income is total revenue; NOI is revenue after operating expenses but before debt service and taxes.
C. Gross income includes rental income only; NOI includes all income sources.
D. There is no difference; they are interchangeable terms.
7. What does `property management` entail?
A. Only handling the financial accounting for a property.
B. Overseeing the day-to-day operations and maintenance of rental properties.
C. Primarily focused on buying and selling properties.
D. Just collecting rent from tenants.
8. In real estate marketing, what is a `call to action`?
A. A detailed description of the property`s location.
B. A statement encouraging potential buyers to take immediate steps, like `Call now to schedule a viewing`.
C. The listed price of the property.
D. Legal terms and conditions of the sale.
9. What is the purpose of a `property survey`?
A. To estimate the market value of the property.
B. To determine the legal boundaries and dimensions of a property.
C. To inspect the structural condition of a building.
D. To assess the environmental impact of the property.
10. In real estate finance, what does `LTV` stand for?
A. Loan Transaction Value
B. Land Title Verification
C. Loan-to-Value ratio
D. Legal Transfer of Ownership
11. What is `capital gain` in real estate investment?
A. The initial amount invested in a property.
B. The profit from selling a property for more than its original purchase price.
C. The annual rental income from a property.
D. The cost of capital improvements made to a property.
12. Which term describes a legal document that transfers ownership of real estate from the seller to the buyer?
A. Mortgage
B. Lease agreement
C. Deed
D. Promissory note
13. Which of the following is an example of `commercial real estate`?
A. A single-family home.
B. An apartment building intended for renters.
C. An office building.
D. A condominium unit occupied by the owner.
14. Which of these factors generally LEAST affects property value?
A. Location of the property.
B. Current interest rates.
C. The color of the front door.
D. Size and condition of the property.
15. Which term refers to the increase in the value of a property over time?
A. Depreciation
B. Appreciation
C. Amortization
D. Inflation
16. What is `property tax` based upon?
A. The original purchase price of the property.
B. The assessed value of the property.
C. The annual rental income generated by the property.
D. The size of the property in square footage.
17. Which of these is NOT typically considered a `closing cost` in a real estate transaction?
A. Appraisal fees
B. Home renovation expenses after purchase
C. Title insurance
D. Recording fees
18. What is the purpose of `zoning` regulations?
A. To set property tax rates.
B. To control how land can be used and developed in specific areas.
C. To regulate building construction materials.
D. To manage property insurance requirements.
19. What is a `fixture` in real estate terms?
A. A temporary structure on the property.
B. Personal property that can be easily removed.
C. An item permanently attached to the property, considered part of the real estate.
D. A type of loan with a variable interest rate.
20. What is the role of a `real estate agent` in a property transaction?
A. To provide legal advice to both buyer and seller.
B. To manage the financial aspects of the transaction.
C. To act as an intermediary between buyers and sellers of properties.
D. To assess the structural integrity of the property.
21. Which document outlines the terms and conditions under which a tenant rents a property?
A. Warranty deed
B. Lease agreement
C. Quitclaim deed
D. Mortgage contract
22. What does `escrow` generally refer to in real estate transactions?
A. The process of obtaining a building permit.
B. A neutral third party holding funds and documents until conditions are met.
C. The negotiation phase between buyer and seller.
D. The insurance policy on the property.
23. In a lease agreement, who is the `lessee`?
A. The property owner.
B. The tenant renting the property.
C. The real estate agent.
D. The mortgage lender.
24. What is a `contingency` clause in a real estate contract?
A. A clause that guarantees the sale will close on time.
B. A condition that must be met for the contract to be binding, protecting the buyer or seller.
C. A clause that sets the final price of the property.
D. A penalty clause for breach of contract.
25. What does `due diligence` refer to in the context of real estate?
A. The process of marketing a property for sale.
B. A thorough investigation of a property and transaction details by the buyer.
C. The negotiation of the purchase price.
D. The final walkthrough before closing.
26. Which term describes the legal rights to use, possess, and dispose of property?
A. Lien
B. Easement
C. Title
D. Zoning
27. What is `cash flow` in real estate investment?
A. The total amount of money spent on purchasing a property.
B. The net income generated from a property after all operating expenses and debt service are paid.
C. The amount of cash available for initial investment.
D. The total value of all properties owned by an investor.
28. What is the meaning of `vacancy rate` in property management?
A. The rate of property appreciation over time.
B. The percentage of units in a property that are unoccupied.
C. The rate of tenant turnover in a building.
D. The cost of maintaining vacant properties.
29. What is `title insurance` designed to protect against?
A. Damage to the property from natural disasters.
B. Financial loss from defects in the title to real property.
C. Liability for accidents occurring on the property.
D. The property`s market value declining.
30. What is the `offer` in a real estate transaction?
A. A preliminary agreement outlining the terms of sale proposed by the buyer to the seller.
B. The final legal document transferring property ownership.
C. An advertisement for a property for sale.
D. A professional valuation of the property.
