1) The word “real” is derived for the Latin word for what?
- A) Earth
- B) Exchange
- C) Person
- D) Thing
(Answer: “Thing”. Real is from the Latin ‘res’, which translates as ‘thing’ or ‘matter’. This is also the derivation of ‘realty’, short for ‘real property’, a word referring to land and anything built on it. This is opposed to ‘personalty’, or ‘personal property’, referring to anything else people own that is not affixed to the land (e.g. furniture)
2)What term is used to describe a professional estimate/opinion on the value of real estate?
- A) Submittal
- B) Proposition
- C) Registration
- D) Appraisal
(Answer: Appraisal. This process is federally regulated and requires a licensed appraiser to perform an analysis that assesses the current market value of a property.)
3)What is the term for the legal document that is most often used to transfer title of real estate from a previous owner?
- A) Affadavit
- B) Schedule
- C) Tort
- D) Deed
(Answer: Deed. This legal document is enforced and deemed as the appropriate method of transference at time of transaction.)
4)What is the legal term for a type of real estate wherein portions are held privately while other portions are owner commonly by a community?
- A) Condominium
- B) Suite
- C) Apartment
- D) Enfilade
(Answer: Condominium. If you’ve never owned a condo, perhaps you’ve wondered what is actually yours as an owner and what’s shared. Your individual unit is specifically yours while the property as a whole belongs to a group of collective individuals.)
5)From what language comes the all-important real estate term ‘mortgage’, where it means ‘dead pledge’?
- A) Italian
- B) German
- C) Spanish
- D) French
(Answer: French. The official language of the aristocracy. But, people, don’t be fooled. The term mortgage is fancy speak for ‘loan’. So, if you take out a loan, whoever purchases it on your behalf is technically the owner (holds title) until you’ve paid for it and own it free and clear.)
6)Which of these terms refers to the right to use the property of another owner for a specified purpose?
- A) Abutment
- B) Easement
- C) Cession
- D) Extension
(Answer: Easement. An easement, as a matter of fact, can run in all directions, including airspace above. Many times, it pertains to utility lines.)
7)For tax purposes, some property owners decrease the value of their property over time (presumably, to account for wear and tear) and take the amount as a tax write-off. What is this process called?
- A) Capitalization
- B) Amortization
- C) Nominalization
- D) Subsidization
(Answer: Amortization. This one is not French, but comes from the Latin words for death. Which is exactly what happens to your loan as you pay it down.)
8)What sad event occurs when a property owner defaults on his or her mortgage agreement with a bank or other creditor?
- A) Surcharge
- B) Foreclosure
- C) Underwriting
- D) Redoundation
(Answer: Foreclosure. Tender subject, but it goes almost without saying. If you don’t pay your mortgage, your home will eventually go into foreclosure.)
9)Which of these best describes the term ‘capital gain’ when it comes to real estate?
- A) Increase in amount of taxes on property
- B) Investment made to improve a property
- C) Interest charged to a purchaser of property
- D) Profit from the sale of a property
(Answer: Profit from the sale of a property.)
10)Urban ‘blight’ has been a traditional problem in large cities around the world. What is the term for the deliberate improvement of homes or other properties in urban areas to bring up the property values?
- A) Gentrification
- B) Fenestration
- C) Bootstrapping
- D) Velarizing
(Answer: Gentrification. A hot-button issue in many urban areas. The buying and renovation of houses and stores in deteriorated urban neighborhoods by upper-or middle-income families or individuals, thus improving property values but often displacing low-income families and small businesses. )
So, are you feeling Confident? Pass with flying colors? Extra credit if you comment below with your score!
(Source: Fun Trivia, Basics of Real Estate)