Overview of Buying a Property Quiz

1. What is the first step in the property‑buying process?

A) Establishing a budget
B) Making an offer
C) Finding a property
D) Applying for a mortgage

2. Which principle means 'let the buyer beware' in property transactions?

A) Ultra vires
B) Caveat emptor
C) Cuius est solum
D) Prima facie

3. What must a vendor disclose when completing the Law Society property information form?

A) Only information requested by the buyer
B) Only that which is legally compelled
C) Answers to all questions honestly and completely
D) The positive and negative aspects of the property

4. Who is the principal in an estate agency relationship?

A) The buyer
B) The estate agent
C) The solicitor
D) The vendor

5. What is actual authority in agency law?

A) Authority explicitly granted by the principal
B) Authority explicitly granted by the agent
C) Authority granted by a court
D) Authority granted by a family member

6. When can an agent act outside their actual authority?

A) Only for financial transactions
B) With apparent authority or ratification
C) Never
D) Only with court approval

7. What is the primary role of an estate agent?

A) To arrange arrange viewings
B) To act for the buyer
C) To market the property and secure the best price for the vendor
D) To offer mortgage and legal services alongside sales

8. What is a decision in principle for a mortgage?

A) A binding mortgage offer
B) A final property valuation
C) A solicitor's approval
D) A preliminary indication of borrowing capacity

9. What is gazumping?

A) A vendor accepting a higher offer after agreeing to a sale
B) The Scottish term for higher lending charge
C) A type of secured lending
D) A legal requirement for property sales

10. At what stage is a property sale legally binding in England and Wales?

A) When the mortgage is approved
B) At exchange of contracts
C) When an offer is accepted
D) At completion

11. What is an offer of advance?

A) A final mortgage contract
B) The ability to pay upfront adviser fees
C) A lender's terms for a mortgage, subject to acceptance
D) A solicitor's fee quote

12. What is the typical commission structure for an estate agent?

A) No fee, funded by advertising
B) Hourly rate
C) Fixed fee only
D) Percentage of the sale price

13. What is sole agency in property sales?

A) One agent has exclusive rights, but the vendor can sell independently
B) The buyer pays the agent's fee
C) The agent has exclusive right to sell the property
D) Multiple agents market the property, but only one can sell it

14. What is required before an estate agent can market a property?

A) A survey completed
B) An Energy Performance Certificate commissioned
C) A mortgage approval
D) A solicitor's review

15. What is the lowest EPC rating that can no longer be rented out?

A) G
B) E
C) F
D) D

16. What is the purpose of a subject to contract offer?

A) To speed up the process
B) To make the offer legally binding
C) To allow for withdrawal dependent on survey results
D) To allow either party to withdraw before exchange

17. What is a private treaty sale?

A) A negotiated sale between buyer and vendor
B) A sale by auction
C) A forced sale
D) A sale following repossession

18. What is the main advantage of online estate agencies?

A) Less competition from potential buyers
B) Lower costs for vendors
C) Extensive legal protections for buyer and seller
D) Largescale marketing

19. What is the asking price of a property?

A) The final sale price
B) The minimum price the vendor will accept
C) The price at which the property is marketed
D) The valuation for mortgage purposes

20. What is the primary risk of not registering a land transfer within 30 days?

A) The sale is void
B) Delay in SDLT payment
C) The mortgage is canceled
D) Other claims may take priority

21. What is the ratification of an agent's actions?

A) The principal approves actions taken outside actual authority
B) A mandatory legal step
C) A fee reduction for the agent
D) A court agreeing the agent acted illegally

22. What is the key difference between sole selling rights and sole agency?

A) Sole selling rights are cheaper
B) Sole agency allows the vendor to sell independently without paying the agent
C) Sole agency is only for auctions
D) Sole selling rights allow the vendor to sell independently without paying the agent

23. What is a multiple agency arrangement?

A) The buyer chooses the agent
B) One agent markets the property exclusively, with several able to sell it
C) Several agents compete to sell the property
D) Arrangement where the vendor pays lower fees

24. What is the main purpose of an Energy Performance Certificate?

A) To test cladding
B) To be able to market a property
C) To be eligible for green home discounts
D) To rate a property's energy efficiency

25. What is the latest point a buyer can withdraw without penalty in England and Wales?

A) Before exchange of contracts
B) At completion
C) After making an offer
D) Before the mortgage offer

26. What is the primary duty of an estate agent to the vendor?

A) To arrange mortgages via their in-house adviser
B) To secure the highest possible price
C) To act as a mediator between buyer and seller
D) To conduct surveys

27. What is apparent authority in agency law?

A) Authority assumed by the agent
B) Covered under contract law
C) Authority implied by the principal's actions
D) Authority granted by a court

28. What is the typical fee structure for online estate agents?

A) No fee, commission-based
B) Percentage of sale price
C) Hourly rate
D) Fixed fee with optional extras

29. What is the key benefit of establishing a budget before house hunting?

A) To ensure affordability and prevent wasted time
B) To avoid gazumping
C) To be more likely to pass credit checks
D) To speed up the legal process

30. What is the main risk of gazumping for the buyer?

A) Higher lending charges
B) Losing the property after an accepted offer
C) Higher mortgage rates
D) Legal penalties

31. What is the primary purpose of a mortgage offer of advance?

A) To be eligible for house viewings
B) To finalize the sale
C) To outline the lender's terms for acceptance
D) To pay the mortgage adviser

32. What is the key difference between freehold and leasehold?

A) Freehold cannot be mortgaged
B) Leasehold applies only to commercial properties
C) Freehold is temporary; leasehold is permanent
D) Freehold is absolute ownership; leasehold is time-limited

33. What is the main advantage of sole agency for the vendor?

A) Lower fees
B) No need for an EPC
C) Consistent marketing
D) Ability to use in-house mortgage adviser

34. What is the main disadvantage of multiple agency for the vendor?

A) No control over offers
B) Higher fees
C) Differing marketing approaches
D) Slower mortgage process

35. What is the primary role of a conveyancer?

A) To arrange mortgages
B) To market the property
C) To manage the legal transfer of ownership
D) To conduct surveys

36. What is the key feature of a joint sole agency?

A) The vendor only pays one agency
B) One agent has exclusivity
C) One agent markets, while the other focuses on selling
D) Two agents share exclusivity and split fees

37. What is the main purpose of a property survey?

A) To assess the property's condition and value
B) To settle disputes between buyer and seller
C) To set the asking price
D) To meet lender legal requirement

38. What is the key risk of buying at auction?

A) Minimal legal protection
B) Binding contract on the fall of the hammer
C) Longer completion times
D) More likely the property has a repossession history

39. What is the primary benefit of online property portals?

A) Guaranteed sale prices
B) Lower legal fees
C) Access to listings from multiple agents
D) Streamlined mortgage process

40. What is the main duty of an estate agent under the Consumer Protection Regulations?

A) To act for the buyer
B) To ensure buyers are not missold
C) To avoid misleading descriptions of properties
D) To guarantee sale prices

Assessing The Property Quiz

1. Which title class indicates the most secure ownership?

A) Absolute Title
B) Good Leasehold
C) Lender approved Title
D) Qualified Title

2. What is a key concern for lenders with lease terms under 80 years?

A) Higher ground rents
B) Marriage value costs
C) Lack of maintenance
D) Tenant rights

3. Which factor most devalues a freehold property?

A) Negative covenants
B) Proximity to schools
C) Easements
D) Modern construction

4. Why are former local authority flats often rejected by lenders?

A) High service charges
B) Short lease terms
C) Lack of parking
D) Concrete construction/tower blocks

5. What must a new build property have for lender approval?

A) NHBC membership or equivalent warranty
B) Energy efficiency certificate
C) Use of modern materials
D) Schools nearby

6. Which lease term would likely disqualify a mortgage application?

A) 95 years remaining
B) 60 years remaining
C) 120 years remaining
D) 85 years remaining

7. What reduces a leasehold flat's value over time?

A) Ground rent increases
B) Poor location
C) Diminishing lease term
D) Lack of elevator

8. Which property type is hardest to sell in a forced sale?

A) Detached house
B) Terraced house
C) New-build flat
D) Retirement apartment

9. What is a flying freehold?

A) Part of a property overhanging another's land
B) A freehold with air rights
C) A leasehold converted to freehold
D) A property with rooftop access

10. What does the Leasehold and Freehold Reform Bill abolish?

A) Ground rents
B) Marriage value
C) Service charges
D) Easements

11. Which dispute most threatens property value?

A) Gazumping
B) Recent sale price
C) Boundary disagreement
D) Garage size

12. What is critical for vacant possession?

A) Recent renovations
B) No ongoing building work
C) Court ordered eviction
D) No tenants/occupiers

13. Which tenure avoids leasehold issues?

A) Commonhold
B) Flying freehold
C) Possessory Title
D) Qualified Title

14. What is a lender's primary concern with location?

A) Proximity to parks
B) Economic prosperity and demand
C) Number of schools
D) Public transport routes

15. Why are bungalows riskier for lenders?

A) Higher maintenance
B) Smaller square footage
C) Limited buyer market
D) Older construction

16. Which lease term requires marriage value payment?

A) 85 years
B) 90 years
C) 100 years
D) 75 years

17. What must a leaseholder do before extending a lease?

A) Pre-reform own the lease for 2 years
B) Pay ground rent for 2 years
C) Renovate the property
D) Obtain neighbor consent

18. Which property type is most valued?

A) Semi-detached house
B) Detached house
C) Terraced house
D) Freehold flat

19. What devalues a leasehold flat in a tower block?

A) Old style kitchens
B) Balcony access
C) Concrete construction
D) Service charges

20. Which document confirms lease extension rights?

A) Land Registry certificate
B) Solicitor agreement
C) Ability to evict
D) Statutory notice of claim

21. What is good leasehold title?

A) Lease is valid, but freeholder's title isn't guaranteed
B) Absolute ownership of the lease
C) Lease over 50 years
D) Lease with sitting tenant

22. Which factor increases forced sale risk?

A) Central heating system
B) Unique architectural design
C) Double-glazed windows
D) Recent roof repair

23. What must a self-build property provide?

A) 10-year structural warranty
B) Pre-sale valuation
C) Architect's approval at each stage
D) Energy efficiency rating

24. Why are ex-local authority flats often declined?

A) Small room sizes
B) Lack of elevators
C) Timber frame construction
D) High-rise location

25. What is a covenant?

A) A legal obligation tied to the property
B) A type of easement
C) A leasehold agreement
D) A mortgage clause

26. Which postcode impact is true?

A) Affects insurance premiums
B) Influences buyer perception
C) Determines lease terms
D) Changes property tenure

27. What is critical for Buy-to-Let mortgages?

A) Proximity to universities
B) Number of occupants
C) Rental yield assessment
D) Tenant references

28. Which lease term is generally acceptable?

A) 25 years beyond mortgage term
B) Equal to mortgage term
C) 10 years beyond mortgage term
D) 40 years beyond mortgage term

29. What devalues a property with sitting tenants?

A) Protected tenancy rights
B) Short-term rental agreement
C) Low rent
D) No maintenance history

30. Which reform allows immediate lease extension?

A) Rental and Leasehold Reform Act
B) Leasehold and Freehold Reform Bill
C) Property Misdescriptions Act
D) Consumer Rights Act

31. What is possessory title?

A) Qualified freehold ownership
B) Leasehold with 20-year term
C) Ownership via adverse possession
D) Commonhold tenure

32. Which construction raises lender concerns?

A) Brick walls
B) Timber frames
C) Slate roof
D) Concrete high-rises

33. Why is freehold tenure preferred?

A) No ground rent or service charges
B) Shorter purchase process
C) Lower insurance costs
D) Easier resale

34. Which term describes a lease as a diminishing asset?

A) Depreciation
B) Relativity graph
C) Amortization
D) Marriage value

35. What affects leasehold value most?

A) Proximity to ammenities
B) Number of bedrooms
C) Remaining lease term
D) Central location

36. Which is a lender's priority in property assessment?

A) Downvalue assessment
B) Number of bathrooms
C) Proximity to ammenities
D) Resale value in default

37. What is required for a statutory lease extension?

A) Serving notice to the freeholder
B) Paying a lump sum upfront
C) Tenant approval
D) Council consent

38. Which property type is least marketable?

A) Detached house
B) Freehold flat
C) Semi-detached house
D) Leasehold maisonette

39. What does a "graph of relativity" show?

A) Regional price differences
B) Construction cost trends
C) Leasehold value vs. freehold value over time
D) Rental yield fluctuations

40. Which issue affects freehold flats?

A) High ground rents
B) Short lease terms
C) Restrictive covenants
D) Responsibility for shared structures

41. What is a qualified title?

A) Title with unresolved defects
B) Leasehold under 50 years
C) Commonhold tenure
D) Freehold with easements

42. Which factor doesn't impact location value?

A) Crime rates
B) Proximity to famous landmark
C) School quality
D) Transport links

43. Why are new leasehold houses problematic?

A) High property taxes
B) Poor construction
C) Ground rent doubling clauses
D) Lack of parking

44. What is verified in a lender's valuation?

A) Applicant credit history
B) Location demand
C) Furniture quality
D) Sales particulars accuracy

45. Which tenure avoids flying freehold issues?

A) Commonhold
B) Leasehold
C) Qualified Title
D) Possessory Title

46. What devalues a property post-repossession?

A) Market saturation
B) Forced sale discount
C) Downvalue due to adverse credit
D) Small garden

47. Which reform reduces lease extension costs?

A) Capping ground rents
B) Discounted freehold conversion
C) Abolishing marriage value
D) Limiting service charges

48. What is critical for self-build mortgage approval?

A) Completion within 1 year
B) Use of eco-friendly materials
C) Pre-sale agreements
D) Stage inspections by professionals

49. Which property type holds value longest?

A) Period property in good condition
B) New-build flat
C) High-rise studio
D) Converted warehouse

50. What is a lender's main legal right via a charge?

A) Renovation approval
B) Repossession or sale when payments aren't upkept
C) Tenant eviction
D) Insurance claims

Valuations and Surveys Quiz

1. What is the primary purpose of a lender's basic valuation?

A) Assess property's security value for mortgage
B) Determine market value for seller
C) Identify any structural defects
D) Assess property's security value for mortgage and insurance

2. Which valuation method uses historical sales data without physical inspection?

A) Drive-by valuation
B) Desktop valuation
C) Estate agent valuation
D) Reinstatement valuation

3. What does a retention involve?

A) Requiring additional insurance
B) Retaining the mortgage offer
C) Holding back part of the loan until repairs are completed
D) Reducing the loan-to-value ratio

4. Who is contractually bound in a lender's basic valuation?

A) Buyer and surveyor
B) Seller and estate agent
C) Borrower and insurer
D) Lender and valuer

5. Which valuation outcome suggests a property is unsuitable for lending?

A) Rejection
B) Conditional rejection
C) Retention recommended
D) Downvalued

6. What is reinstatement value?

A) Renovation budget
B) Cost to rebuild the property if destroyed
C) Market value minus land cost
D) Estimated auction price

7. Which factor is not considered in a basic valuation?

A) Visible roof condition
B) Room dimensions
C) Hidden defects under carpets
D) Potential resale value

8. When might a desktop valuation be appropriate?

A) Buying an estate agent advertised property
B) First-time purchase
C) New-build property
D) Remortgaging a recently inspected property

9. What is the valuer's duty of care for inexperienced buyers?

A) Higher due to potential negligence claims
B) Proportional to the level of survey requested
C) Limited to lender requirements
D) Excluded by disclaimers

10. Which statement about valuation disclaimers is true?

A) They replace the need for surveys
B) They may not protect valuers from negligence claims
C) They have insurance coverage for accurate market value
D) They are legally binding in all cases

11. What does a RICS Level 1 Report focus on?

A) Market valuation
B) Insurance reinstatement cost
C) Basic condition of conventional properties
D) Detailed structural analysis

12. Which survey includes a valuation?

A) RICS Level 1 Survey and Valuation
B) RICS Level 3
C) Estate agent valuation
D) RICS Level 2 Survey and Valuation

13. What is a key limitation of a RICS Level 1 Report?

A) Does not inspect hidden areas
B) Excludes legal risks
C) Only for valuation
D) Only for freehold properties

14. Which survey is most suitable for older, non-standard properties?

A) RICS Level 5
B) RICS Level 3
C) RICS Level 2
D) RICS Level 4

15. What condition rating indicates urgent repairs?

A) 1
B) 0
C) 3
D) 2

16. Which survey type is cheapest?

A) RICS Level 5
B) RICS Level 3
C) Specialist damp report
D) RICS Level 1

17. What does a RICS Level 2 Report visually inspect?

A) Gas and electric systems
B) Foundations
C) Hidden wiring
D) Soil stability

18. Which survey provides legal recourse for negligence?

A) Auction report
B) RICS Level 1
C) Lender's basic valuation
D) Desktop valuation

19. What is not included in a RICS Level 1 Report?

A) Urgent repair advice
B) Construction type
C) Market valuation
D) Condition ratings

20. Which survey is designed for new, standard-condition homes?

A) RICS Level 3
B) Specialist structural report
C) Desktop valuation
D) RICS Level 1

21. What might a valuer recommend for minor defects?

A) Undertaking to repair
B) Full retention
C) Mortgage rejection
D) Lower LTV ratio

22. Which defect would likely require a specialist report?

A) Loose tile
B) Subsidence
C) Peeling paint
D) Crack in plaster

23. What is a lender's primary concern with property defects?

A) Energy efficiency
B) Future resale potential
C) Impact on security value
D) Aesthetic appeal

24. Which defect is most likely to trigger a retention?

A) Outdated kitchen
B) Small garden
C) Lack of parking
D) Major roof damage

25. What does a conditional recommendation involve?

A) Repairs or retentions
B) Higher interest rate
C) Mandatory insurance
D) Reduced loan term

26. Which factor could lead to a lower valuation?

A) New build
B) Evidence of subsidence
C) Proximity to schools
D) Outdated bathroom

27. What is not typically covered in a basic valuation?

A) Obvious structural cracks
B) Room sizes
C) Detailed electrical safety checks
D) Visible damp patches

28. Which report would identify unsafe wiring?

A) RICS Level 1
B) Standard RICS Level 2
C) RICS level 5 with electrical report
D) Specialist electrical report

29. What is the lender's stance on survey recommendations?

A) Advisers must not recommend specific surveys
B) Advisers must insist on RICS Level 3 for properties predating 1940
C) Solicitors cover survey costs
D) Lenders guarantee survey accuracy

30. Which defect rating indicates no action needed?

A) 0
B) 1
C) 2
D) 3

31. What is the main drawback of a desktop valuation?

A) Covers hidden defects
B) No guarantee of accurate market value
C) Relies on outdated and comparable data
D) No physical inspection

32. Which valuation considers forced-sale scenarios?

A) RICS Level 1
B) Market appraisal
C) Seller's valuation
D) Lender's basic valuation

33. What is a key difference between RICS Level 2 and Level 3?

A) Level 3 includes in-depth structural analysis
B) Level 2 excludes condition ratings
C) Level 3 always includes a valuation
D) Level 2 can mandate retentions

34. Which party pays for the lender's valuation?

A) Solicitor
B) Borrower
C) Lender
D) Seller

35. What is not part of a valuation report?

A) Comparable property prices
B) Tenure details
C) Furniture quality assessment
D) Reinstatement value

36. Which scenario justifies a RICS Level 3 Report?

A) New-build apartment
B) Recently renovated house
C) Freehold flat
D) 200 year old listed building

37. What is the valuer's role in a retention?

A) Specify required repairs
B) Costing breakdowns
C) Negotiate with the seller
D) Reduce the purchase price

38. Which factor does not affect reinstatement value?

A) Building costs
B) Mortgage size
C) Non-standard materials
D) Property size

39. What is a limitation of the RICS Level 2 Report?

A) Overrides lender valuations
B) Only for freehold properties
C) Does not inspect behind furniture
D) Excludes condition ratings

40. Which statement about valuations is true?

A) They are carried out by an estate agent
B) They include renovation quotes
C) They replace legal searches
D) They may differ from market value

41. What is the lender's priority in a valuation?

A) Security for the loan
B) Value for money
C) Future price appreciation
D) Energy efficiency

42. Which survey type is most comprehensive?

A) Condition Report
B) RICS Level 3
C) RICS Level 2
D) RICS level 5

43. What is not a valuer's recommendation?

A) Specialist report
B) Rejection
C) Renegotiate purchase price
D) Retention

44. Which defect would a RICS Level 1 Report highlight?

A) Faulty wiring
B) Soil instability
C) Asbestos presence
D) Visible damp

45. What is a coal-mining search used for?

A) Underground operations records
B) Verify property age
C) Check flood risk
D) Check for heave

46. Which valuation outcome requires borrower action?

A) Faster completion
B) Retention
C) Unconditional acceptance
D) Higher LTV

47. What is excluded from a RICS Level 2 Survey only Report?

A) Urgent repairs
B) Legal risks
C) Valuation
D) Condition ratings

48. Which factor reduces reinstatement value?

A) Historic features
B) Large plot size
C) High-end finishes
D) Standard construction

49. What is the primary risk of a desktop valuation?

A) Misses property condition issues
B) Overestimates land value
C) Excludes legal checks
D) Rushes mortgage approval

50. Which statement about RICS reports is true?

A) Level 1 covers hidden defects
B) Level 3 is most detailed
C) Level 5 includes valuation
D) At least Level 2 is mandatory for properites built before 1920