#1
Which of the following is a characteristic of real property?
Immobility
ExplanationRefers to the fact that land cannot be moved.
#2
What is the primary purpose of zoning laws in real estate?
Regulate land use and development
ExplanationZoning laws control how land is used and the types of structures allowed in specific areas.
#3
In real estate, what does 'MLS' stand for?
Multiple Listing Service
ExplanationA database where real estate agents list properties for sale.
#4
What is the purpose of an 'escrow' in a real estate transaction?
To hold and manage funds during the transaction
ExplanationA neutral third party holds and manages funds until the transaction is complete.
#5
What does the term 'amortization' refer to in real estate finance?
The gradual reduction of a loan through regular payments
ExplanationPaying off a loan over time with regular, fixed payments.
#6
What is the role of a 'title search' in a real estate transaction?
Researching the property's ownership history
ExplanationEnsuring the property has a clear ownership history and can be legally transferred.
#7
What is the difference between a leasehold estate and a fee simple estate?
Fee simple has unlimited duration, leasehold does not
ExplanationFee simple ownership is indefinite, while leasehold has a limited term.
#8
What is the significance of 'comps' in real estate?
Comparable sales used for property valuation
ExplanationRecent sales of similar properties used to determine a property's value.
#9
What is the significance of the 'appraisal' in real estate?
Estimating the value of a property
ExplanationDetermining the market value of a property.
#10
In real estate, what is 'due diligence'?
The process of researching and investigating a property before purchase
ExplanationThoroughly investigating a property before making a purchase.
#11
What is a '1031 exchange' in real estate?
An exchange of properties without tax consequences
ExplanationAllows the deferral of capital gains taxes by exchanging one property for another.