1. What does `Fixture` mean in real estate?
A. A temporary structure on a property.
B. Personal property that is attached to the real property and is considered part of it.
C. A legal dispute over property lines.
D. A discount offered on a property`s price.
2. What is `Property management` in the context of real estate?
A. The process of developing new real estate projects.
B. The oversight and operation of real estate properties on behalf of the owner.
C. The legal process of transferring property ownership.
D. The marketing and sales of real estate.
3. What does `Capitalization Rate` (Cap Rate) measure in commercial real estate?
A. The annual property taxes.
B. The potential rate of return on a real estate investment.
C. The cost of renovations.
D. The vacancy rate of a property.
4. Which phrase best describes `Capital gain` in real estate?
A. The initial investment in a property.
B. The profit earned from the sale of a property.
C. The monthly rental income from a property.
D. The expenses incurred in maintaining a property.
5. What is the primary difference between `Gross Rent` and `Net Rent` in property investment?
A. Gross rent includes utilities; net rent does not.
B. Gross rent is before expenses; net rent is after deducting operating expenses.
C. Gross rent is for commercial properties; net rent is for residential.
D. Gross rent is the advertised rent; net rent is the negotiated rent.
6. What is the meaning of `escrow` in a real estate transaction?
A. A type of property insurance.
B. A neutral third party holding funds and documents until conditions are met.
C. The final walkthrough inspection of a property.
D. A government tax on property sales.
7. What is `Zoning` in urban planning and real estate?
A. The process of obtaining a building permit.
B. Government regulations that dictate how property in specific areas can be used.
C. The system of public transportation near a property.
D. The historical significance of a property.
8. What is the meaning of `Depreciation` in real estate investment?
A. An increase in property value over time.
B. A decrease in property value over time or for tax purposes.
C. The cost of property maintenance.
D. The rental income generated by a property.
9. What does `Fair Housing Act` in the US primarily aim to prevent?
A. Unfair property taxes.
B. Discrimination in housing based on protected characteristics.
C. Poor building standards.
D. Real estate market crashes.
10. What is `Due diligence` in real estate transactions?
A. The process of marketing a property for sale.
B. A comprehensive investigation of a property and transaction by the buyer.
C. The negotiation phase between buyer and seller.
D. The final signing of all legal documents.
11. What does `Title insurance` protect against?
A. Damage to the property from natural disasters.
B. Financial loss from defects in a property`s title.
C. Liability for accidents occurring on the property.
D. Loss of rental income due to vacancy.
12. In real estate listings, `square footage` is used to describe:
A. The age of the property.
B. The total area of the land.
C. The livable area of the building.
D. The distance from the property to the nearest amenities.
13. Which of these terms is NOT related to types of real estate properties?
A. Condominium
B. Duplex
C. Amortization
D. Townhouse
14. Which of the following is typically NOT a responsibility of a `Landlord`?
A. Maintaining the structural integrity of the building.
B. Paying the tenant`s personal utility bills.
C. Ensuring the property is habitable and safe.
D. Handling major repairs to the property.
15. Which term refers to the legal document that transfers ownership of real property from seller to buyer?
A. Promissory Note
B. Deed
C. Abstract of Title
D. Lease Agreement
16. The term `Lien` in real estate refers to:
A. A type of home insurance.
B. A legal claim against a property.
C. A government grant for property improvement.
D. A method of property appraisal.
17. What does `Loan-to-Value (LTV)` ratio measure in mortgage lending?
A. The borrower`s credit score.
B. The size of the loan compared to the appraised value of the property.
C. The interest rate of the loan.
D. The duration of the loan term.
18. Which of the following best defines `amortization` in the context of mortgages?
A. The process of obtaining pre-approval for a loan.
B. The gradual repayment of a loan principal over time.
C. The total cost of borrowing money, including interest and fees.
D. The initial down payment required to secure a mortgage.
19. What is a `Broker` in real estate?
A. A person who lends money for real estate purchases.
B. A licensed professional who acts as an intermediary between buyers and sellers or landlords and tenants.
C. A government official who assesses property taxes.
D. A company that develops new real estate projects.
20. What does `As-is` condition mean when selling a property?
A. The property is newly renovated.
B. The seller will make all necessary repairs before sale.
C. The property is sold in its current condition, with no warranties regarding its condition.
D. The property is sold below market value.
21. In real estate negotiation, what is a `Counteroffer`?
A. The initial offer made by the buyer.
B. A rejection of the initial offer and a new offer made in response.
C. An agreement to the original offer.
D. A request for property inspection.
22. Which of these terms is NOT directly related to property valuation methods?
A. Comparable Sales Approach
B. Cost Approach
C. Income Capitalization Approach
D. Zoning Ordinance
23. Which of the following is NOT typically considered part of `Closing costs` for a home purchase?
A. Appraisal fees
B. Home renovation expenses after purchase
C. Title insurance
D. Loan origination fees
24. Which of the following is an example of `Real property`?
A. Furniture inside a house
B. A car parked in the driveway
C. Land and buildings
D. Stocks and bonds related to real estate companies
25. In real estate, what does `appraisal` primarily refer to?
A. The legal document transferring property ownership.
B. An estimation of a property`s market value.
C. The process of inspecting a property for structural issues.
D. A loan secured by real estate.
26. What is a `Contingency` in a real estate contract?
A. A penalty for early termination of a lease.
B. A condition that must be met for the contract to be binding.
C. A clause that automatically renews a contract.
D. A discount offered for cash payment.
27. Which term describes the right to use or enjoy land but not own it?
A. Deed
B. Mortgage
C. Easement
D. Lien
28. Which of the following is an example of `Personal property` in a real estate context?
A. Built-in kitchen cabinets
B. A detached refrigerator
C. Landscaping
D. Attached garage
29. Which term is used to describe a situation where a property owner is in violation of the terms of their mortgage agreement?
A. Equity
B. Default
C. Appreciation
D. Depreciation
30. What is the purpose of a `Property survey`?
A. To estimate the market value of the property.
B. To inspect the structural integrity of the building.
C. To determine and map the legal boundaries of a property.
D. To assess the environmental impact of the property.
