Basics of Real Estate Trivia Quiz

Answer: Thing

Real is from the Latin 'res', which translates as 'thing' or 'matter'. This is also the derivation of 'realty', short for 'real property', a word referring to land and anything built on it. This is opposed to 'personalty', or 'personal property', referring to anything else people own that is not affixed to the land (e.g. furniture).

Answer: Appraisal

Regulated by congress in the United States, typically appraisals are performed for property sellers who wish to learn the market value of their property.

Answer: Deed

In its broadest definition, a deed is a legal document used to grant legal rights. Hence, a college diploma may also be thought of as a deed.

Answer: Condominium

Typically in a condominium, each individual owner has a number of private rooms, while the general property is collectively owned. The word condominium comes from the Latin terms 'con', which means 'together with' and 'dominium', derived from the Latin for 'lord/master'.

Answer: French

For all intents and purposes, a mortgage is a fancy term for a loan. A creditor, typically a bank, purchases property for a debtor and holds the title until completion of payment on that debt. Typically, great deal of interest is accrued on a mortgage. Fortunately, there is a tax write-off on the payment of this interest in the U.S. and other countries.

Answer: Easement

Some easements include:

Aviation easement - The right of airlines to use airspace above the property of others.

Utility easements - The rights of utility companies to run telephone lines, water lines, fuel lines, etc. through or over the property of others.

View easements - The rights of others to prevent vegetation or buildings from blocking a certain view.

Answer: Amortization

The word 'amortize', interestingly enough, comes from the Latin words for 'to death'. Apparently, over time, your property can die, so be good to it while you are able.

Seriously though, amortizing your property is a double-edged sword. Yes, you will see savings in terms of taxes in the immediate term, but in the long term, when you amortize your property, you are reducing the value of your initial investment and thus increasing your eventual capital gain.

Answer: Foreclosure

When a bank (or other creditor) forecloses on a person (or persons) who are unable to honor their mortgage agreement, it takes possession of the mortgaged property. A legal process ensues wherein the borrower is eventually removed from the property and then it is often auctioned by an official of the court, or other such representative.

Answer: Profit from the sale of property

Let's say you purchase a home for $200,000, and then sell it for $230,000. After expenses, you come away with $210,000. Your capital gain would then be $10,000 ($210,000 - $200,000). Watch out though, you have to pay taxes on the amount you have profited!

Answer: Gentrification

The term 'gentrification' is derived from the word 'gentry', a word that refers to people of 'good social position'. It ultimately derives from the Latin word 'gentilis', which original had the simple meaning 'of a family or clan', but eventually came to mean 'high-born noble' in French.