1. What is `zoning` in real estate?
A. A type of mortgage
B. Regulations that control land use
C. A method of property valuation
D. A type of property tax
2. What is a `balloon payment` in a mortgage?
A. A small, regular payment
B. A large lump-sum payment due at the end of the loan term
C. A payment made with balloons
D. An extra payment to reduce the principal
3. What is `foreclosure`?
A. The process of buying a new home
B. The process by which a lender takes possession of a property due to the borrower`s failure to pay
C. A type of home renovation
D. A government program for first-time homebuyers
4. What is a `leasehold` estate?
A. Ownership of a property
B. The right to possess property for a specified period of time
C. A type of property insurance
D. A government grant for property development
5. What does `ROI` stand for in real estate investment?
A. Rate of Interest
B. Return on Investment
C. Real Ownership Income
D. Risk of Investment
6. Which of the following best describes `due diligence` in real estate?
A. The process of marketing a property
B. A thorough investigation of a property and its related documents
C. Negotiating the purchase price
D. Obtaining a mortgage
7. What is a `tax lien`?
A. A discount on property taxes.
B. A legal claim against a property due to unpaid taxes.
C. A program for reducing property taxes.
D. A refund on property taxes.
8. What is `comparative market analysis` (CMA)?
A. A detailed inspection of a property`s structural components.
B. An estimate of a property`s value based on recent sales of similar properties.
C. A legal review of a property`s title history.
D. An evaluation of a property`s environmental impact.
9. What is a `lien` in real estate?
A. A type of property insurance
B. A legal claim against a property
C. A discount offered to first-time homebuyers
D. A government subsidy for property development
10. What is a `quitclaim deed`?
A. A warranty deed
B. A deed that transfers ownership without warranty
C. A foreclosure notice
D. A type of mortgage
11. What is `short sale`?
A. Selling a property quickly for a lower price than its market value.
B. Selling a property for less than what is owed on the mortgage.
C. A type of property auction.
D. A sale that takes place during the winter.
12. What is `escrow account` used for?
A. Paying for home renovations
B. Holding funds for property taxes and insurance
C. Investing in stocks
D. Saving for retirement
13. What does `amortization` refer to in the context of a mortgage?
A. The process of insuring a property
B. The gradual repayment of a loan principal over time
C. The initial down payment on a property
D. The process of refinancing a mortgage
14. Which term refers to the process of evaluating a property`s value?
A. Depreciation
B. Appraisal
C. Amortization
D. Valuation
15. Which of the following is NOT typically a responsibility of a property manager?
A. Collecting rent
B. Maintaining the property
C. Representing the buyer in a sale
D. Screening tenants
16. What is `appreciation` in real estate?
A. The decrease in a property`s value
B. The increase in a property`s value
C. The cost of maintaining a property
D. The process of obtaining a mortgage
17. What does `HOA` stand for in real estate?
A. Homeowners of America
B. Homeowners Association
C. Housing Opportunity Agency
D. Home Office Administration
18. What is `equity` in real estate?
A. The amount of debt owed on a property
B. The difference between the property`s value and the amount owed on it
C. The annual property tax
D. The cost of insuring a property
19. What does `REIT` stand for?
A. Real Estate Investment Trust
B. Residential Estate Income Tax
C. Rental Equity Interest Transaction
D. Regional Economic Investment Treaty
20. What is a `real estate agent`?
A. Someone who manages rental properties
B. A licensed professional who helps clients buy, sell, or rent properties
C. A person who invests in real estate
D. A government official who assesses property taxes
21. What is a `contingency` in a real estate contract?
A. A type of property tax
B. A condition that must be met for the contract to be binding
C. A discount offered to cash buyers
D. A government regulation on property sales
22. What is `cap rate` in real estate?
A. The cost of property insurance
B. A rate used to estimate the potential return on an investment property
C. The annual property tax rate
D. The interest rate on a mortgage
23. What is `capital gain` in real estate?
A. The cost of property improvements
B. The profit from selling a property for more than its purchase price
C. The total value of a property
D. The annual property tax
24. What is `grandfathered in` regarding zoning regulations?
A. A zoning regulation applicable only to elderly residents.
B. An exception allowing a property to continue its existing use despite new zoning regulations.
C. A zoning regulation that benefits families.
D. A zoning regulation that promotes green spaces.
25. What is `eminent domain`?
A. A type of real estate appraisal
B. The government`s power to take private property for public use
C. A legal dispute between neighbors
D. A form of property insurance
26. In real estate, what is `title insurance`?
A. Insurance that protects against fire damage
B. Insurance that protects against defects in the property title
C. Insurance that covers homeowner`s personal belongings
D. Insurance that covers liability for accidents on the property
27. What is the meaning of `fixture` in real estate?
A. A temporary decoration
B. An item permanently attached to the property
C. A piece of movable furniture
D. A type of real estate contract
28. What is the meaning of `PMI` in real estate finance?
A. Property Management Income
B. Private Mortgage Insurance
C. Public Market Index
D. Personal Monetary Investment
29. What does `escrow` mean in real estate transactions?
A. A type of mortgage insurance
B. A neutral third party holding funds or documents
C. A government tax on property sales
D. A clause in a contract allowing cancellation
30. What is `easement`?
A. A type of fencing
B. The right to use another person`s property for a specific purpose
C. A type of loan
D. A type of appraisal
