Real Estate quiz

More questions about Real Estate

These visible examples show the question style. LearnClash turns the full topic into ranked duels and spaced repetition.

1. 1 Easy

   Which local tax on real estate values funds public schools and infrastructure?

   Answer: Property tax

   Why: Property taxes bring in about three quarters of all US local tax revenue and fund 36 percent of public school revenue nationwide.

2. 2 Medium

   What is home value minus the mortgage balance called?

   Answer: Equity

   Why: Home equity grows both as the owner pays down loan principal and as local property values appreciate.

3. 3 Hard

   Which capital stack tier carries the highest risk for investors?

   Answer: Common equity

   Why: Common equity absorbs the first financial losses in a downturn, but offers unlimited upside once all debt obligations are met.

4. 4 Easy

   Which neutral third-party account holds buyer funds until a property deal closes?

   Answer: Escrow account

   Why: The word escrow stems from the Old French term 'escroe', meaning a scrap of parchment or deed.

5. 5 Medium

   Which rate compares property income to purchase price?

   Answer: Capitalization rate

   Why: Cap rates ignore mortgage financing entirely to show what return a property would generate if purchased completely in cash.

6. 6 Hard

   Which appraisal method works best for unique public buildings?

   Answer: Cost approach

   Why: The cost approach values a property by calculating replacement construction cost minus depreciation, making it ideal when market sales are absent.