Real Estate Fundamentals Exam Practice Questions

The primary purpose of a real estate appraisal is to determine the market value of a property.

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Market value refers to the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms length transaction.

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A comparative market analysis is an evaluation of similar, recently sold homes (called comparables) in the area to determine the market value of a property.

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Real property refers to land and anything permanently attached to it, such as buildings, while personal property refers to movable items that are not permanently attached to the land.

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A deed is a legal document that transfers ownership of real property from one party to another.

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The purpose of a title search is to examine public records to confirm a propertys legal ownership and to identify any claims, liens, or other encumbrances on the property.

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An encumbrance is a claim, lien, charge, or liability attached to and binding real property, which may lessen its value or restrict its use.

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Zoning refers to laws and regulations that govern how land can be used in different areas, important for ensuring orderly development and maintaining property values.

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