Real Estate Practices and Specializations Quiz

REITs are a common way to invest in real estate, offering benefits of diversification and liquidity.

MLS is a database used by real estate brokers to share information about properties for sale.

Zoning laws regulate how land can be used, determining what can be built and where.

Appraisers assess the value of properties, providing unbiased estimates for buyers, sellers, and lenders.

FSBO indicates a property being sold directly by the owner, without involving a real estate agent.

Brokers act as intermediaries, facilitating transactions between buyers and sellers and providing expertise in negotiations.

Forensic real estate is not a common specialization, unlike property management or appraisal.

A CMA helps assess a property's value by comparing it to similar properties in the market.

A 1031 exchange allows investors to defer capital gains taxes by exchanging one property for another.

CAP rate is a measure of the rate of return on an investment property based on its income.

HOA fees are typically not considered closing costs, which include expenses like title insurance and attorney fees.

Landlords own rental properties and lease them to tenants in exchange for rent payments.

A contract outlines the terms and conditions of the property transaction, binding both parties.

Earnest money demonstrates the buyer's seriousness and is held in escrow until the transaction closes.