1. What does `HOA` stand for in real estate?
A. Home Owners Association
B. Housing Opportunity Administration
C. Home Office Approval
D. Homestead Ownership Agreement
2. What is the primary purpose of a `property survey`?
A. To assess the structural integrity of a building.
B. To determine the market value of a property.
C. To establish the legal boundaries and features of a property.
D. To inspect for pests and infestations.
3. What is the meaning of `escrow` in real estate transactions?
A. A type of homeowner`s insurance.
B. A neutral third party that holds funds and documents until specific conditions are met.
C. A government agency that regulates real estate prices.
D. A loan pre-approval process.
4. Which of the following is MOST likely considered a `disclosure` in a real estate sale?
A. The buyer`s credit score.
B. Known defects or issues with the property.
C. The seller`s personal financial information.
D. Future development plans for the neighborhood.
5. Which term describes a situation where a property is taken back by the lender due to the borrower`s failure to repay the mortgage?
A. Refinancing
B. Foreclosure
C. Amortization
D. Equity
6. What does `ROI` stand for in real estate investment?
A. Rate of Inflation
B. Return on Investment
C. Risk of Investment
D. Real Ownership Interest
7. Which term refers to the loss of value of a property over time due to wear and tear, obsolescence, or other factors?
A. Appreciation
B. Depreciation
C. Inflation
D. Amortization
8. Which of the following is NOT a typical responsibility of a landlord?
A. Maintaining the structural integrity of the property.
B. Paying the tenant`s personal debts.
C. Providing a safe and habitable living environment.
D. Handling major repairs to the property.
9. Which of these is NOT typically considered part of `closing costs` for a home purchase?
A. Appraisal fees
B. Home inspection fees
C. Down payment
D. Title insurance fees
10. Which document outlines the terms and conditions of renting a property?
A. Deed
B. Mortgage
C. Lease Agreement
D. Title Insurance
11. In real estate listings, `curb appeal` refers to:
A. The size of the property`s backyard.
B. The attractiveness of a property from the street.
C. The interior design and decorations of a house.
D. The proximity of the property to public transportation.
12. Which of the following terms BEST describes the process of assessing the value of a property?
A. Appraisal
B. Depreciation
C. Amortization
D. Escrow
13. What is the `loan-to-value ratio` (LTV) used for in mortgage lending?
A. To calculate the monthly mortgage payment.
B. To assess the riskiness of a loan for the lender.
C. To determine the property`s market value.
D. To calculate the borrower`s credit score.
14. What does `amortization` refer to in the context of a mortgage loan?
A. The process of selling a property quickly for a lower price.
B. The gradual repayment of a loan principal over time.
C. The initial down payment required for a mortgage.
D. The total interest paid over the life of the loan.
15. In property management, what is `preventative maintenance`?
A. Maintenance performed only after a problem occurs.
B. Regularly scheduled maintenance to prevent future problems.
C. Emergency repairs due to unexpected breakdowns.
D. Cosmetic improvements to increase property value.
16. Which term BEST describes the legal document that transfers ownership of real property from a seller to a buyer?
A. Promissory Note
B. Deed
C. Contract of Sale
D. Title Report
17. What is the MOST accurate definition of `easement` in real estate law?
A. Full ownership of a property.
B. The right to use someone else`s property for a specific purpose.
C. A government tax on property ownership.
D. A restriction on property development.
18. What is a `contingency` in a real estate purchase agreement?
A. A mandatory closing cost.
B. A condition that must be met for the contract to be binding.
C. A penalty for backing out of a contract.
D. A type of property insurance.
19. What is the difference between `market value` and `appraised value`?
A. They are always the same in real estate transactions.
B. Market value is an estimated price, while appraised value is a formal professional opinion.
C. Appraised value is always higher than market value.
D. Market value is determined by a professional, while appraised value is set by the seller.
20. What is the MAIN purpose of `title insurance` in a real estate transaction?
A. To insure the property against natural disasters.
B. To guarantee the buyer will be able to resell the property.
C. To protect the buyer against financial loss from defects in the property`s title.
D. To cover the costs of property appraisals.
21. Which of the following BEST defines `zoning regulations`?
A. Rules about building materials for construction.
B. Government rules that control land use and development.
C. Regulations for property maintenance and upkeep.
D. Guidelines for property landscaping and gardening.
22. Which phrase BEST describes `capital gains` in real estate?
A. The original cost of purchasing a property.
B. The profit made from selling a property for more than its purchase price.
C. The annual property taxes paid to the government.
D. The expenses incurred during property maintenance.
23. Which of the following is NOT a common type of real estate property?
A. Residential
B. Commercial
C. Fictional
D. Industrial
24. Which of these factors would LIKELY INCREASE the value of a residential property?
A. A decrease in local school quality ratings.
B. Increased crime rates in the neighborhood.
C. Recent renovations and upgrades to the property.
D. A significant increase in property taxes.
25. The term `due diligence` in real estate primarily refers to:
A. The final payment made at closing.
B. A thorough investigation of a property and transaction.
C. The process of advertising a property for sale.
D. Negotiating the purchase price.
26. What is a `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 grant for property renovation.
27. What is `leverage` in real estate investment?
A. The process of renovating a property.
B. Using borrowed capital to increase the potential return on investment.
C. The legal process of eviction.
D. Negotiating a lower purchase price.
28. What is the role of a `real estate agent`?
A. To provide legal advice during property transactions.
B. To manage property after it has been purchased.
C. To assist buyers and sellers in property transactions.
D. To finance real estate purchases.
29. What does `vacancy rate` indicate in the rental market?
A. The percentage of properties that are currently occupied.
B. The rate at which property values are increasing.
C. The percentage of properties that are unoccupied and available for rent.
D. The average rental price in a specific area.
30. In real estate, `fixtures` refer to:
A. Temporary decorations like paintings and rugs.
B. Personal property not included in the sale.
C. Items permanently attached to the property, such as built-in appliances.
D. Movable furniture within the house.
