TEST BANK For California Real Estate| Exam Multiple Choice Questions with Solutions (Latest Update 2024)

Real Estate Vocabulary Exam Please understand these are general real estate terms used in almost every state. This is here for practice and review purposes only. Some terms may not be on your exam. 1. Which of the following describes the term “appreciation”? A. Kind words expressed to someone about something they did B. An increase in the value of property C. An item of value owned by an individual D. None of the above Answer: B. Appreciation is the increase in the value of a property due to changes in market conditions, inflation, or other causes. 2. When ownership of a mortgage is transferred from one company or individual to another, it is called A. an assumption B. an assignment C. an assessment D. all of the above Answer: B. When ownership of a mortgage is transferred (assigned) from one company or individual to another, it is called an assignment. 3. A mortgage loan which requires the remaining balance be paid at a specific point in time is called a/an A. balloon mortgage B. early due mortgage C. mortgage of convenience D. promissory note Answer: A. A mortgage loan that requires the remaining principal balance be paid at a specific point in time is a balloon mortgage. 4. The following reason accounts for why bridge loans are not used much anymore: A. More second mortgage lenders now will lend at a high loan to value B. Sellers would rather accept offers from Buyers who have already sold their property C. Neither A or B D. Both A and B Answer: D. Bridge loans are not used much anymore because more second mortgage lenders now will lend at a high loan to value and sellers often prefer to accept offers from buyers who have already sold their property.