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Real Estate Transactions and Financing Quiz

#1

What is a common type of financing used in real estate transactions?

Mortgage
Explanation

Common loan for property purchase.

#2

Which document serves as evidence of ownership of a property?

Title deed
Explanation

Legal proof of property ownership.

#3

In real estate, what does the term 'appraisal' refer to?

Estimation of the value of a property
Explanation

Valuation of property's worth.

#4

What is a 'down payment' in a real estate transaction?

Initial payment made by the buyer towards the purchase price
Explanation

Buyer's initial payment on property.

#5

What does 'PMI' stand for in real estate financing?

Private Mortgage Insurance
Explanation

Insurance protecting lender against default.

#6

What is the term for a real estate transaction where the buyer pays the entire purchase price upfront without financing?

Cash sale
Explanation

Transaction without financing.

#7

What is a 'lien' in the context of real estate?

Legal claim on a property for debt payment
Explanation

Claim for debt payment on property.

#8

What is a 'closing cost' in a real estate transaction?

Fees associated with finalizing the purchase or sale of a property
Explanation

Expenses to finalize property sale or purchase.

#9

What is the primary purpose of a real estate appraisal?

To determine the fair market value of a property
Explanation

Determining property's fair market value.

#10

Which type of loan has a fixed interest rate and consistent monthly payments over the loan term?

Fixed-rate mortgage
Explanation

Loan with stable interest rate and payments.

#11

Which entity typically holds the legal title to a mortgaged property until the loan is fully repaid?

Lender
Explanation

Entity holding property title during mortgage.

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