1. Choose the term that best completes the sentence: `The _______ is responsible for managing the property and dealing with tenants on behalf of the owner.`
A. Appraiser
B. Landlord
C. Property Manager
D. Real Estate Agent
2. Explain the concept of `capital gain` in real estate investment.
A. The annual rental income from a property.
B. The profit made from selling a property for more than its purchase price.
C. The total cost of renovations and improvements on a property.
D. The amount of mortgage interest paid over the loan term.
3. Identify the term that describes the legal right to use someone else`s land for a specific purpose.
A. Lien
B. Easement
C. Zoning
D. Deed Restriction
4. What is the `asking price` of a property?
A. The price the seller hopes to receive for the property.
B. The appraised value of the property.
C. The final agreed-upon price between buyer and seller.
D. The price after all closing costs are included.
5. What is `curb appeal` in real estate?
A. The total square footage of the property.
B. The attractiveness of a property from the street.
C. The interior design and decor of a property.
D. The legal boundaries of the property.
6. Explain the difference between `equity` and `down payment` in the context of buying a home.
A. Equity is the initial payment, down payment is the accumulated value.
B. Down payment is the initial payment, equity is the ownership value minus the mortgage balance.
C. Equity is paid monthly, down payment is paid at closing.
D. Down payment is a percentage, equity is a fixed amount.
7. Which of these property types is typically NOT considered `residential real estate`?
A. Apartment
B. Condominium
C. Office Building
D. Townhouse
8. The term `due diligence` in real estate refers to:
A. The final payment made at closing.
B. A thorough investigation of a property before purchase.
C. The process of getting pre-approved for a mortgage.
D. Marketing activities to attract potential buyers.
9. What is `title insurance` in real estate?
A. Insurance against damage to the physical property.
B. Insurance that protects the lender if the borrower defaults on the mortgage.
C. Insurance that protects the buyer against defects or disputes in the property title.
D. Insurance for renters against loss of personal belongings.
10. In real estate advertisements, `move-in ready` typically means:
A. The property is under construction but will be completed soon.
B. The property requires significant renovations before occupancy.
C. The property is in good condition and requires no immediate repairs before being occupied.
D. The property is being sold furnished with all appliances.
11. Which of these is NOT typically a responsibility of a landlord?
A. Maintaining the property`s structural integrity.
B. Paying the tenant`s personal utility bills.
C. Ensuring the property is habitable.
D. Handling major repairs to the property.
12. What is the primary role of a `real estate agent`?
A. To assess the value of properties for taxation.
B. To manage rental properties on behalf of owners.
C. To facilitate the buying, selling, or renting of properties.
D. To construct new buildings and developments.
13. In real estate marketing, what is an `open house`?
A. A meeting between buyer and seller for negotiations.
B. A public viewing of a property for potential buyers.
C. A seminar for first-time homebuyers.
D. A private tour of a property by appointment only.
14. Which of these terms describes the process of improving a property to increase its value?
A. Depreciation
B. Appreciation
C. Renovation
D. Amortization
15. What is a `contingency` in a real estate purchase agreement?
A. A clause that makes the agreement dependent on certain conditions being met.
B. The legal description of the property.
C. A penalty for backing out of the deal.
D. An extra fee charged by the real estate agent.
16. Differentiate between `gross rental yield` and `net rental yield`.
A. Gross yield includes taxes, net yield does not.
B. Gross yield is before expenses, net yield is after expenses.
C. Gross yield is for residential, net yield is for commercial.
D. Gross yield is estimated, net yield is actual.
17. Which of the following best describes `real estate`?
A. Movable personal possessions.
B. Land and any permanent structures attached to it.
C. Financial investments in stocks and bonds.
D. Services related to tourism and hospitality.
18. Choose the best definition of `fixture` in real estate.
A. Temporary decorations in a home.
B. Personal property easily removed from a property.
C. Items permanently attached to a property that are considered part of the real estate.
D. Movable appliances not included in a sale.
19. What is a `lease agreement` in real estate?
A. A contract for purchasing a property.
B. A short-term rental agreement, typically for apartments or houses.
C. A long-term loan for buying real estate.
D. A document outlining property boundaries.
20. What does `ROI` stand for in real estate investment?
A. Rate of Interest
B. Return on Investment
C. Real Opportunity Index
D. Risk of Inflation
21. What is a `REIT` (Real Estate Investment Trust)?
A. A type of government housing program.
B. A company that owns, operates, or finances income-generating real estate.
C. A form of property insurance.
D. A regulatory body for real estate agents.
22. Which document proves ownership of a property?
A. Appraisal Report
B. Lease Agreement
C. Deed
D. Mortgage Contract
23. What does `escrow` typically refer to in a real estate transaction?
A. A type of property insurance.
B. A neutral third party holding funds or documents until conditions are met.
C. A government tax on property sales.
D. The initial down payment on a property.
24. What does `fixer-upper` typically mean in real estate listings?
A. A newly built, modern property.
B. A property in excellent, move-in condition.
C. A property that requires significant renovation or repairs.
D. A property located in a prime, upscale neighborhood.
25. What is the purpose of a `property inspection` during a real estate transaction?
A. To determine the market value of the property for tax purposes.
B. To assess the property`s condition and identify potential issues.
C. To decorate and stage the property for sale.
D. To finalize the legal transfer of property ownership.
26. In real estate, `appraisal` most accurately refers to:
A. The process of legally transferring property ownership.
B. A formal estimate of a property`s market value.
C. The negotiation phase between buyer and seller.
D. A detailed inspection of a property`s structural integrity.
27. What is `amortization` in the context of a mortgage?
A. The process of estimating property value.
B. The reduction in property value over time.
C. The schedule of paying off a loan over time, including principal and interest.
D. The insurance premium for mortgage protection.
28. Which phrase is used to describe the transfer of property ownership from seller to buyer?
A. Property Acquisition
B. Title Transfer
C. Property Closing
D. Deed Conveyance
29. Which of the following is a synonym for `mortgage` in real estate context?
A. Equity
B. Loan
C. Deed
D. Title
30. What is meant by `zoning regulations` in real estate?
A. Rules about property taxes.
B. Government rules that control land use and development.
C. Building codes for construction safety.
D. Environmental protection laws for real estate.
