1. What does `appraisal` mean in the context of real estate?
A. The act of legally transferring property ownership.
B. An estimate of a property`s market value by a qualified professional.
C. The process of obtaining a mortgage loan.
D. A detailed inspection of a property`s structural and mechanical systems.
2. What does `HOA` stand for in real estate?
A. Home Owners Association
B. Housing Opportunity Agency
C. Home Occupation Agreement
D. Hazardous Occupancy Area
3. What does `lien` mean in real estate?
A. A type of insurance policy for property.
B. A legal claim against a property as security for a debt.
C. A discount offered on property taxes.
D. The process of dividing property among heirs.
4. Which of these best describes `real estate agent`?
A. A person who assesses property value for tax purposes.
B. A licensed professional who assists buyers and sellers in real estate transactions.
C. A government official who enforces zoning regulations.
D. A financial institution that provides mortgage loans.
5. Which of these is a type of commercial lease where the tenant pays rent plus property taxes, insurance, and maintenance?
A. Gross Lease
B. Net Lease
C. Percentage Lease
D. Ground Lease
6. What does `escrow` generally refer to in a real estate deal?
A. A type of home insurance.
B. A neutral third party holding funds or documents until conditions are met.
C. A government tax on property sales.
D. The agent representing the seller.
7. What is a `counteroffer` in real estate negotiations?
A. The initial offer made by a buyer.
B. An acceptance of the original offer.
C. A rejection of the original offer with modified terms.
D. A legal document that transfers property ownership.
8. In real estate finance, what does LTV stand for?
A. Loan-to-Value ratio
B. List-to-Value ratio
C. Land-to-Volume ratio
D. Lease-Term-Variance
9. Choose the best definition for `amortization` in mortgage terms.
A. The process of insuring a mortgage against default.
B. The gradual repayment of a loan principal over time.
C. The total cost of borrowing, including interest and fees.
D. The initial down payment required to secure a mortgage.
10. Which term describes a situation where a property`s value is negatively affected by something undesirable nearby?
A. Appreciation
B. Depreciation
C. Stigmatized property
D. Capital gain
11. What is the meaning of `walk-through` before closing on a property?
A. A marketing event to attract potential buyers.
B. A final inspection by the buyer to ensure the property is in agreed condition.
C. An appraisal performed by the lender.
D. A meeting with the real estate agent to sign documents.
12. What is the meaning of `brownfield` in real estate development?
A. A newly developed green space in a city.
B. Previously developed land that may be contaminated.
C. Farmland converted for residential use.
D. Undeveloped land in a rural area.
13. Which term best describes the legal right to use someone else`s property for a specific purpose?
A. Easement
B. Encroachment
C. Eminent domain
D. Equity
14. Which of these terms describes the process of legally removing a tenant from a property?
A. Eviction
B. Acquisition
C. Amortization
D. Depreciation
15. In real estate advertising, what does `curb appeal` refer to?
A. The price of the property as listed.
B. The attractiveness of a property from the street.
C. The interior design and layout of a property.
D. The size and square footage of a property.
16. What does `closing costs` refer to in a real estate transaction?
A. The price of the property itself.
B. Expenses incurred by buyers and sellers to finalize the property transfer.
C. The agent`s commission for selling the property.
D. The cost of renovating a property after purchase.
17. What is the difference between `gross income` and `net operating income` (NOI) for an investment property?
A. Gross income includes expenses, while NOI excludes them.
B. NOI includes all income, while gross income only includes rental income.
C. Gross income is total revenue, while NOI is revenue minus operating expenses.
D. There is no difference; they are interchangeable terms.
18. What is a `contingency` clause in a real estate contract?
A. A guaranteed outcome of the contract.
B. A condition that must be met for the contract to be binding.
C. A penalty for breaching the contract.
D. A clause that automatically extends the contract duration.
19. What is the meaning of `due diligence` in real estate transactions?
A. The final paperwork signed at closing.
B. A thorough investigation of a property and transaction details.
C. The initial offer made by a potential buyer.
D. The process of advertising a property for sale.
20. What is `capitalization rate` (cap rate) used for in commercial real estate?
A. To calculate property taxes.
B. To estimate the annual return on investment for a property.
C. To determine the depreciation rate of a building.
D. To assess the creditworthiness of a potential tenant.
21. Which of the following is NOT a responsibility of a property manager?
A. Collecting rent from tenants.
B. Performing structural repairs on the building.
C. Marketing vacant units to find new tenants.
D. Representing the owner in property sale negotiations.
22. Choose the synonym that best replaces `lease` in the context of renting property.
A. Deed
B. Mortgage
C. Rental agreement
D. Foreclosure
23. Which of the following is an example of `external obsolescence`?
A. A leaky roof.
B. Outdated kitchen appliances.
C. Increased traffic noise due to a new highway nearby.
D. Worn-out carpeting.
24. What is `underwriting` in the mortgage process?
A. The process of insuring a property against damage.
B. The evaluation of a borrower`s creditworthiness and risk assessment by a lender.
C. The negotiation of the interest rate on a loan.
D. The legal transfer of property ownership.
25. What is the purpose of a `title search` in real estate?
A. To determine the property`s market value.
B. To inspect the physical condition of the property.
C. To examine the legal history of property ownership and identify any claims or issues.
D. To negotiate the purchase price of the property.
26. Which of the following is NOT typically considered `real property`?
A. Land
B. Buildings
C. Furniture
D. Mineral rights
27. Which of these is NOT a common type of real estate property?
A. Residential
B. Commercial
C. Industrial
D. Fictional
28. What is `zoning` in urban planning and real estate?
A. The process of property valuation for tax purposes.
B. Government regulations controlling land use and development.
C. The physical division of a property into smaller plots.
D. The marketing strategy for selling properties in a specific area.
29. In real estate, what is a `fixture`?
A. Any temporary item in a property.
B. Personal property that is easily removed.
C. An item permanently attached to the property, considered part of the real estate.
D. A type of mortgage with a fixed interest rate.
30. What does `variance` refer to in zoning regulations?
A. A standard zoning regulation applicable to all properties.
B. A permissible deviation from existing zoning rules for a specific property.
C. The process of rezoning an entire area.
D. A tax imposed for violating zoning laws.
