Quiz: Do You Understand Real Estate?
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Do You Understand Real Estate?
By: Annette
Image: Shutterstock

About This Quiz

It seems complicated, I know. Buying a house can be stressful, but it can also be fun! Do you know the most important real estate terms and information? In this quiz, we're going to test your knowledge of all things real estate! If you pass, you get a free home! (j/k)

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What is a super jumbo loan?

A super jumbo loan exceeds $1 million! Going to take a long time to pay off that loan.

Severalty refers to the ownership of one person. When one person alone owns a home, it's called severalty! Independence. . .

An apartment with four levels is called a quadruplex. If you own one, there are probably a lot of people that want to be your friend.

To default is to breech the contact of your sale or lease. This can be done by a buyer, a seller or tenant.

A penthouse is any apartment on the top floor of a luxury building.

PITI stands for Principal, Interest, Taxes, Insurance. This is a common mortgage payment acronym.

The estate is the collection of all assets of a deceased person. Thus, when someone dies, you have an estate sale.

A parcel is a share of land. It's similar to a lot.

Origination is the first step in the mortgage process. It consists of completing an application.

When you put on offer out on a home, you name a price you'll pay. If this is accepted, a contract of sale is issued.

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Must you notarize real estate documents?

Yes, you do need to notarize certain real estate documents. This includes leases and contracts of sale.

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Are a mortgage broker and mortgage banker the same?

Mortgage banker and brokers have many things in common. Mortgage bankers are different because they can lend their own money.

A monolithic slab is a type of foundation where the footing and slab are poured at the same time. This is a strong foundation.

The market value of your home is the current worth, based on the market. This is only an estimation.

Interim interest is the interest that you pay between the closing day and the first mortgage payment. Seems kind of silly.

To have ingress is to be able to enter a piece of land. Egress is the right to exit a piece of land!

Say you own a pet in an apartment, and suddenly pets are banned. You can remain in the building with your pet as part of the grandfather clause.

A Graduated Payment Mortgage allows you to pay a smaller amount initially, and with time this payment will grow. It reaches what is called amortization​.

Escheat refers to the government's ability to take property where there wasn't a sufficient will to pass it off. This is also true when there are no heirs to the person who has died.

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How much is a typical down payment on a property?

The downpayment on a property is typically 10 percent. This is paid at the signing of the contract.

Co-ownership is when a property is owned by two or more people. This is also called concurrent ownership.

ARM refers to Adjustable Rate Mortgage. This is a loan with various interest rates based upon periods of adjustment.

Appraisal is the evaluation of a home's value by a licensed appraiser. This is based upon previous sales.

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Which of these is a closing cost?

All of the above are considered closing costs. You'll find all these in the closing statement.

A co-broke is an arrangement with two brokerage firms. They share the commission upon selling the home.

A judgement lien is a general lien. It is the result of a court case.

An open listing means there's no real estate broker attached to it. It's an apartment being sold without the owner signing an exclusive agreement.

The origination fee is basically a service charge. It's for the lending institution you turn to for a mortgage.

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A passive loss is a loss generated by investment real estate when _________.

If you take a loss in real estate investment, and it's not your primary means of business, it's called a passive loss.

Percolation is the movement of water through soil. This can have an impact upon the quality of your land and the value of your home.

A periodic tenancy is a lease that is ongoing. It renews for successive periods.

A pied-a-terre is not a permanent residence, but rather a sporadic one. We all dream of our pied-a-terre in Italy.

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Post-war buildings were built between 1950 and 1970. They are taller than pre-war buildings.

A powder room is also referred to as a half-bath. It has only a toilet and sink.

Property tax is issued by the municipality in which you live. You pay this yearly.

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