How Well Do You Know The Language Of Property Investment?
How well do you know the language of property investment? It is hard to navigate with out help if you don't speak the language!
- 1.The repayment of financial obligation over a period of time in a series of periodic instalments, eg. the payback owed to the lender
- A.
Amoritization
- B.
Proration
- C.
Debit
- D.
Credit
- 2.In general, when the supply of a certain commodity increases,
- A.
Price tends to rise
- B.
Price tends to drop
- C.
Demand for it tends drop
- D.
Demand for it tends rise
- 3.Legal documents through which a loan is obtained to purchase real estate is called a mortgage?
- A.
True
- B.
False
- 4.The mortgage represents a portion of the total value of the real estate. This is expressed by the financial phrase "loan to value ratio" (the relationship between loan and value of property)
- A.
True
- B.
False
- 5.Something of value that is given to show acceptance or acknowledgement of a contract, such as money or a promise
- A.
Consideration
- B.
Assessed Value
- C.
Accepted Notice
- D.
Appraised Value
- 6.Principal characteristics of fee simple title include all of the following except:
- A.
It is transferable
- B.
It is a free emcumbrances
- C.
It is of indefinite duration
- D.
It may be willed
- 7.Counteroffer is:
- A.
A rejection of an offer to buy or sell, with a simultaneous substitute offer.
- B.
A change of mind of an offer to buy or sell taking everything "off the table".
- C.
An acceptance of an offer to buy or sell, with a simultaneous substitute offer.
- D.
None of the above
- 8.Charging an excessively high rate of interest is known as gouging the buyer.
- A.
True
- B.
False
- 9.A mortgage is provided by lenders who charge interest for the use of the borrowed money to make a profit. This amount is known as the principal.
- A.
True
- B.
False
- 10.The mortgage application fee is a fee that is paid by the seller and is usually paid at settlement. The is refundable if a mortgage cannot be obtained.
- A.
True
- B.
False
- 11.A method of transferring the rights and obligations of a contract to a third party without canceling the contract
- A.
Deed
- B.
Assignment
- C.
Deed of release
- D.
Direct deeding
- 12.When a part of a building, or an obstruction physically intrudes, overlaps, or trespasses the property of another, this is referred to as an:
- A.
Assesmblage
- B.
Escheat
- C.
Easement
- D.
Encroachment
- 13.A liability or equity entered in a party's favour:
- A.
Credit
- B.
Cost
- C.
Annuity
- D.
Debit
- 14.An increase in the value or worth of something due to economic or related causes such as supply and demand, which may prove to be either permanent or temporary.
- A.
Appropriation
- B.
Depreciation
- C.
Appreciation
- D.
Amortization
- 15.Deduction is:
- A.
An amount due or owed
- B.
A liability or equity entered in a party's favour.
- C.
An amount of money added to income when calculating federal income tax.
- D.
An amount of money subtracted from income when calculating federal income tax.
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