How Well Do You Know The Language Of Property Investment?

15 Questions | Total Attempts: 33

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Investor Quizzes & Trivia

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!


Questions and Answers
  • 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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