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Real Estate Basics

Total questions: 20

Worksheet time: 14mins

Name
Class
Date
1.

You'll need to have a minimum down payment of ___ of the total cost of the house you want to buy.

a)

20%

b)

10%

c)

5%

d)

15%

2.

_______________ means you pay someone else each month for a place to live.

a)

house poor

b)

equity

c)

owning a home

d)

renting

3.

__________ is the difference between what a house is worth and what is still owed on it.

a)

equity

b)

mortgage

c)

investment amount

d)

life of the loan

4.

Apartment ______________ such as a pool, fitness center, and other perks are nice but usually mean higher rent prices.

a)

upgrades

b)

luxuries

c)

amenities

d)

benefits

5.

Another word used for "renting" is:

a)

buying

b)

leasing

c)

investing

d)

owning

6.

A loan obtained for a home purchase is a(n)

a)

equity

b)

inspection

c)

lease

d)

mortgage

7.

An individually owned unit in an apartment style complex with shared ownership of common areas.

a)

Condominium

b)

Duplex

c)

Triplex

d)

Apartment

8.

What is industrial real estate?

a)

Properties used for agricultural purposes

b)

Properties used for entertainment and leisure activities

c)

Properties used for residential purposes

d)

Properties used for manufacturing, production, research and development, storage, and distribution of goods

9.

What is commercial real estate?

a)

Industrial property for manufacturing

b)

Residential property for personal use

c)

Property used for business purposes

d)

Vacant land for agricultural purposes

10.

What is residential real estate?

a)

Vacant land with no buildings

b)

Industrial properties used for manufacturing

c)

Commercial properties used for business purposes

d)

Properties used for living purposes

11.

What is real property?

a)

Cars and vehicles

b)

Pets and animals

c)

Land, buildings, and permanent structures

d)

Furniture and appliances

12.

An apartment is considered to be which type of real estate?

a)

Vacant Land

b)

Industrial

c)

Residential

d)

Commercial

13.

Which of the following is NOT an example of Vacant Land?

a)

Vacant Building Lot

b)

Amazon Distribution Centre

c)

Cows in a Pasture

d)

Wheat crops growing in a field

14.

You have recently purchased a house for $300,000. Your down payment was $50,000.
How much home equity do you currently have?

a)

$300,000

b)

$350,000

c)

$50,000

d)

$250,000

15.

Five years ago you bought a house for $300,000. It was recently appraised and valued at $375,000.
You currently owe $275,000 on your mortgage. How much home equity do you currently have?

a)

$300,000

b)

$100,000

c)

$275,000

d)

$375,000

16.

Which of the following is a defining characteristic of real estate.

a)

It costs more than what most people can afford.

b)

There is an unlimited amount of it.

c)

It is unmovable.

d)

It must have a house to be considered real estate.

17.

A shopping centre is an example of which type of real estate?

a)

Commercial

b)

Residential

c)

Industrial

d)

Vacant Land

18.

A tenant is a person who....

a)

likes to tent on the weekends.

b)

owns an apartment building.

c)

has ten pets.

d)

pays rent to live in a home.

19.

When you receive a mortgage for a home, it is actually the bank that owns the house until the mortgage is paid in full.

a)

True

b)

False

20.

A condo is a type of...

a)

Industrial real estate.

b)

Residential Real Estate.

c)

Vacant Land.

d)

Commercial Real Estate.