1. Choose the correct definition of `escrow`.
A. A loan taken out to purchase property.
B. A neutral third party holding funds and documents during a real estate transaction.
C. The process of legally evicting a tenant.
D. Insurance that protects against property damage.
2. What does `appraisal` mean in real estate?
A. The process of advertising a property for sale.
B. A professional estimate of a property`s market value.
C. The legal document transferring property ownership.
D. The monthly payment for a mortgage.
3. What is `real estate portfolio`?
A. A collection of all properties listed for sale in a specific area.
B. An individual`s or company`s collection of real estate investments.
C. A document outlining the zoning regulations for a city.
D. The total amount of mortgage debt held by a person.
4. Which term refers to the person who rents a property?
A. Landlord
B. Tenant
C. Mortgagor
D. Appraiser
5. What is a `lien` on a property?
A. A type of insurance for property owners.
B. A legal claim against a property, often for unpaid debt.
C. A discount offered on the purchase price.
D. A government grant for property improvement.
6. What is `leasehold` ownership?
A. Ownership of the building but not the land it is on.
B. Full and permanent ownership of both the building and the land.
C. Temporary ownership for a specified period under a lease agreement.
D. Shared ownership among multiple owners.
7. What is `capital gain` in real estate investment?
A. The initial cost of purchasing a property.
B. The profit from selling an asset for a higher price than you paid for it.
C. The annual rental income from a property.
D. The expenses incurred in maintaining a property.
8. Which of the following best describes a `real estate agent`?
A. Someone who assesses the value of properties for tax purposes.
B. A licensed professional who helps clients buy, sell, or rent properties.
C. A person who manages apartment buildings.
D. An individual who provides legal advice on property law.
9. What does `equity` in real estate represent?
A. The total value of a property.
B. The portion of the property value owned free and clear of debt.
C. The initial down payment made on a property.
D. The interest rate on a mortgage.
10. Which of these is NOT a type of residential property?
A. Condominium
B. Apartment
C. Warehouse
D. Townhouse
11. What is the purpose of a `home inspection`?
A. To determine the market value of a property.
B. To assess the structural and mechanical condition of a property.
C. To negotiate the purchase price of a property.
D. To arrange financing for a property purchase.
12. Choose the synonym for `landlord`.
A. Lessee
B. Lessor
C. Grantor
D. Vendor
13. Which of the following is NOT typically included in closing costs?
A. Appraisal fees
B. Home inspection fees
C. Down payment
D. Title insurance
14. Which of the following describes `real property`?
A. Movable items like furniture and appliances.
B. Land and anything permanently attached to it, like buildings.
C. Stocks, bonds, and other financial investments.
D. Intellectual property such as patents and copyrights.
15. What does `vacancy rate` indicate in real estate?
A. The rate of property value appreciation.
B. The percentage of unoccupied units in a rental property or market.
C. The interest rate on mortgages.
D. The rate of property tax increase.
16. What is a `fixture` in real estate terms?
A. Temporary decorations in a house for sale.
B. Personal property that can be easily removed.
C. Items permanently attached to the property, like built-in cabinets.
D. A type of mortgage with a fixed interest rate.
17. What is `fair market value`?
A. The price a seller hopes to get for their property.
B. The price a willing buyer and a willing seller would agree upon under normal market conditions.
C. The lowest possible price a property can be sold for.
D. The assessed value of a property for tax purposes.
18. What is `zoning` in urban planning and real estate?
A. The process of evaluating property value for taxation.
B. Regulations that dictate how land can be used in specific areas.
C. The system for numbering houses on a street.
D. Insurance against natural disasters.
19. Differentiate between `fixed-rate mortgage` and `adjustable-rate mortgage`.
A. Fixed-rate mortgages are only for commercial properties.
B. Fixed-rate mortgages have an interest rate that stays the same, while adjustable-rate mortgages can change.
C. Adjustable-rate mortgages are always cheaper than fixed-rate mortgages.
D. There is no difference between them.
20. In real estate, what does `ROI` stand for?
A. Rate of Inspection
B. Return on Investment
C. Real Ownership Interest
D. Risk of Inflation
21. Which term describes the legal right to own and use property?
A. Lien
B. Easement
C. Title
D. Deed
22. Which document transfers ownership of real property from seller to buyer?
A. Lease agreement
B. Promissory note
C. Deed
D. Appraisal report
23. Which of these is a common type of commercial real estate?
A. Single-family home
B. Apartment building
C. Office building
D. Townhouse
24. What does `MLS` stand for in real estate?
A. Mortgage Lending Service
B. Multiple Listing Service
C. Market Listing System
D. Maximum Loan Security
25. What is a `counteroffer` in real estate negotiation?
A. The original price listed for a property.
B. A rejection of the original offer and a new offer in return.
C. The final agreed price after all negotiations.
D. A legal penalty for backing out of a deal.
26. What is `property management`?
A. The process of valuing properties for sale.
B. Overseeing the daily operations of a real estate property on behalf of the owner.
C. The legal process of property transfer.
D. Marketing and selling real estate.
27. What does `amortization` mean in the context of a mortgage?
A. The process of increasing the interest rate over time.
B. The process of paying off a loan over time through regular payments.
C. The initial down payment required for a mortgage.
D. The cost of insuring the mortgage.
28. In a real estate contract, what is `contingency`?
A. A clause that makes the contract conditional upon certain events.
B. The final closing date of the transaction.
C. The total cost of the property including all fees.
D. A guarantee of property value appreciation.
29. What is `due diligence` in real estate transactions?
A. The final payment made when closing a deal.
B. A thorough investigation of a property and transaction details by the buyer.
C. The process of advertising a property to attract buyers.
D. The initial offer made by a potential buyer.
30. What is the difference between `gross rent` and `net rent`?
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 properties.
D. There is no difference; they are the same.
