Do You Understand Real Estate?

Annette

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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)

What is a super jumbo loan?

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

What is severalty?

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

What's a quadruplex?

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.

What does it mean to default?

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

What is a penthouse?

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

What does PITI stand for?

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

What is estate?

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

What is a parcel?

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

What is origination?

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

What is an offer on a home?

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.

Must you notarize real estate documents?

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

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.

What is a monolithic slab?

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

What is the market value of a home?

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

What is interim interest?

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

What does it mean to have ingress?

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

What's the grandfather clause?

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.

What does GPM stand for?

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​.

What is escheat?

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.

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.

What is co-ownership?

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

What does ARM stand for?

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

What is appraisal?

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

Which of these is a closing cost?

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

What is co-broke?

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

What is a judgement lien?

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

What is an open listing?

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.

What is an origination fee?

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

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.

What is percolation?

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.

What is periodic tenancy?

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

What is a pied-a-terre?

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

What is a post-war building?

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

What is a powder room?

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

What is property tax?

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

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