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Real Estate > 90 Hour ASREB Review > Flashcards

90 Hour ASREB Review Flashcards

1
Q

Arizona Property Taxes

A

Levied once a year, Paid twice a year.

Paid in arrears

“Oh No, More Money”
First Half: Due - October, Delinquent - November
Second Half: Due - March , Delinquent - May

16% Delinquency Rate

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2
Q

Property Tax Lien Sale

A

Held 3rd week of February

People may bid on taxes, starts at 16% (Delinquency rate) and bid down.

After winning and paying 3 years taxes winner may foreclose

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3
Q

Assessments

A

Assessments are paid Pro Rata Share

Ratios:
10% for Residential
16% for Land
20% for Commercial

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4
Q

Mechanics Lien

A

A lien placed against a property for labor or materials used to improve the property.

Incohoate - Lien not yet completed

Mechanics Liens have special priority that dates back to the beginning of work.

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5
Q

Mechanics Lien (Order of Operations)

A

BOW (Beginning of Work) - Starts as soon as material or tools are placed on site

1 BOW - 20 Day Prelien Notice

  1. COW (Completion of Work) - 120 Days To Record Lien
  2. 180 Days To File Lawsuit from date of lien recordation
  3. If in latches, must file civil suit for judgement
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6
Q

Homestead

A

Protects owner equity from involuntary liens

Up to $150,000

MUST be primary residence

Natural Parties ONLY

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7
Q

Landlord Tenant Act

A

Must provide 48 hour written notice prior to entry (May enter at a reasonable time after 48 hours)

Landlord has 5 days to provide possession of unit (Promise Date)

Must provide 10 days notice of breach of contract (May terminate immediately if illegal)

30 days to terminate month to month

10 days to terminate week to week

Tenant gives 10 days to repair minor defects or tenant repairs themselves and are refunded up to $300 max or half monthly rent.

Landlord has 5 days to repair essential services or tenant may break contract

Landlord has 14 days to repair if flooding or fire occurs

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8
Q

Security Deposit

A

Maximum security deposit of 1.5 times the monthly rent

If not delivered within 14 business days landlord pays 2 times the original PLUS the original amount.

Must be returned once the tenant asks for refund.

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9
Q

Treble Damages

A

Pays 3 times the amount of damages incurred

Enforced by Department of Sherman Antitrust Laws

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10
Q

Recovery Fund (Public)

A

Money deposit the public can claim if harmed

No time limit on when to file

Covers any real estate transaction in AZ

Only natural entities allowed to file claim

Real Estate licensee not allowed to file

Max payout: $30k per transaction/claim

Max payout: $90k per licensee (lifetime)

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11
Q

Recovery Fund (Licensees)

A

Payment: $10 for sales associates, $20 for brokers

Fund balance is checked on June 30 by Commissioner

If less than $600k future assessments is charged on renewing licensees. ($10 sales, $20 broker)

Licensee is terminated if a claim is made against them.

Licensee is allowed to reapply after repayment has been made, however can still be out for up to 5 years.

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12
Q

Real Estate Law

A

Practicing WITHOUT a license is a class 6 felony

Licensees are allowed to write contracts but may not charge (Article XXVI)

Contracts MUST be in writing (Statute of Frauds)
2 exceptions: Broker to Broker oral or 1 year or less lease

Commissioner’s Rules = AAC (AZ Admin Code)

Common law established by tradition and courts

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13
Q

Subdivided

A

5 or more lots less than 36 acres

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14
Q

Un-Subdivided

A

5 or less lots larger than 36 acres but less than 160 acres

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15
Q

Land

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5 or fewer lots greater than 160 acres

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16
Q

Subdivision Law

A

Public report required in sale of subdivided/un-subdivided (Does NOT require assured/adequate because it is only a sale)

Lot Reservation is allowed WITHOUT public report with $5,000 refundable
Voidable if no public report, up to 3 years

7 day rescission period on unimproved land if inspected (seen)

6 month rescission period on unimproved land if NOT inspected (unseen)

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17
Q

Active Management Area (AMA)

A

Building Inside = Assured water supply

Building Outside = Adequate water supply

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18
Q

Prior Appropriation

A

Water Rights

First come, first serve

Owned by state of AZ

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19
Q

Appropriation

A

Surface Water

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20
Q

Riparian (Water Rights)

A

Rivers and streams

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21
Q

Littoral (Water Rights)

A

Lakes, ocean, and sea

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22
Q

Wells

A

Exempt wells pump a maximum of 35 gpm for less than 2 acres of land

Notice of Intent to Drill

Permits are required for any groundwater

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23
Q

Adjudicated Water Rights

A

Must file a claim and a well change of ownership

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24
Q

Grandfathered (Water Rights)

A

Irrigation = Appurtenant
Type 1 = Appurtenant (NO Irrigation)
Type 2 = NOT appurtenant (Can be sold separate)

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25
Conversion
Theft Placing client money anywhere other than the trust account Using client money for personal use
26
Commingling
Inappropriate accounting of client funds Only up to $3,000 of personal money in trust account
27
Teams
Include company name in all ads Can not use Company, Group, or Associate in the name Cannot be registered with ACC (AZ Corporate Commission)
28
Timeshare (Gifts and Tours)
Gift MUST be disclosed prior to tour Gift given immediately after tour Presentation may not exceed 2 hours 7 days to rescind any timeshare Public report if more than 12 intervals of time (VOIDABLE if there is no report)
29
Record Keeping
5 years from termination or completion 1 year from rejection of offer 1 year from expiration on property management 3 years financial documents from property management
30
Change of Address
10 days to notify (Address Judgement, conviction of crime, change of employer)
31
Signs
Must move immediately after sale (False advertisement) Must have permission Follow HOA and city laws
32
Affidavit of Value
Helps county assessor determine property tax Recorded at county recorders office ($2 fee) Records with deed, signed by both buyer and seller On document: Legal Description Consideration (Price) Signatures
33
Judgement
Involuntary court decision Valid for 5 years (May renew within 90 days of expiration) Writ of Execution enforces judgement
34
Order of a Judgement
1. Lis Pendens 2. Judgement 3. Write of execution
35
Rules Violation
AAC (Arizona Admin Code) Isn't rule but has force and effect on licensees Max $1,000 penalty Rules created by commissioner
36
Disclosure Issues
Any known material/latent defects MUST be disclosed in writing
37
Material Defect
Affects payment value or purchase decision
38
Latent Defect
Undiscovered defect
39
Federal Fair Housing
1865 - 13th Amendment - Abolishes Slavery 1866 - Protects race 1896 - Plessy vs Fergussen - Allows segregation 1954 - Brown vs Board - Abolish segregation 1968 - Protects Race, Color, National Origin, Religon 1968 - Jones vs Mayor - CCR unenforceable if they discriminate 1974 - Protects gender and sex 1988 - Disabled and familial Status Fines: 1. $16,000 2. $37,500 (5 years) 3. $65,000 (7 years)
40
Blockbusting
Panic Selling Ex. I heard there's terrorists living in this neighborhood you should probably sell before anything happens
41
Redlining
Lenders will not work within a certain area Ex. We will not work in that part of town it is too run down
42
Steering
Making decisions for clients (Taking away their right)
43
Americans with Disabilities Act
Title 1 - Employment - Hiring and overseeing disabled employees (If you have 15+ employees) Title 3 - Commercial - Any place that allows public must also accommodate persons with disabilities Fines 1. $55k 2. $110k
44
Anti Trust
``` Offenses (Office policies are fine): Price fixing Refuse to cooperate with another broker Divide territory Boycott a broker or company ``` Penalty Up to $350k and/or 3 years in prison Supervised by DoJ (Department of Justice)
45
Insurance
Fire/Hazard Insurance - Pay 1st year + 2 months in advanced (RESPA) E & O (Errors and Omissions) - Similar to malpractice insurance PMI (Private Mortgage Insurance) - Conventional greater tha 80% LTV UFMIP (Up Front Mortgage Insurance Payment) - FHA (federal Housing Administration Funding Fee with VA
46
Equal Opportunity Credit Act (ECOA)
Protected classes and marital status, age, and public assistance 30 days to provide reason for loan denial
47
Do Not Call Registry
MUST register Managed by FCC $16k fine per violation/call Excludes political, survey, and charity calls Exemptions: Prior relationships = 18 months Inquiry = 3 months For sale by owner = Only if you have a buyer
48
Do Not Fax
Fine $500 per page Maximum $16k per fax Managed by FCC Must get written permission to fax
49
CAN-SPAM Act
$16k fine per violation Managed by FCC ``` All unsolicited emails must include: Physical address Opt out Return email address Subject must be advertisement ```
50
Soldiers and Sailors Relief Act
AKA Service Persons Relief Act May not be foreclosed on while actively deployed
51
FEMA (Federal Emergency Management Agency)
Flood Maps
52
Asbestos
Used for insulation Exposure can increase risk for lung disease
53
Friable
Crumbles easy in hand (Airborne)
54
Lead Based Paint Disclosure
Disclosure required on any residential property built prior to 1978
55
Rights of the Government
P.E.T.E. Police Power - Confiscation Eminent Domain - Condemnation Taxation Escheat
56
Easement
When someone has right to limited use and enjoyment of someone else's property
57
Appurtenant
Anything that attaches A right or restriction that goes with the property
58
Easement Appurtenant
Attaches to the land permanently and benefits the owner.
59
Agency Law
``` Creation: Oral Implied Estoppel Written ``` ``` Scope Special (Single) General (Alot) Universal (Everything) Attorney in Fact (Person given power) P ```
60
Listing Types
Open - Multiple agents whoever sells wins Exclusive Right - Agent always paid Exclusive Agency - Agent vs the Owner - If owner sells they do not pay Net - Anything above the net is for the owner - Illegal in some states
61
Purchase Contract (Required Elements)
``` Writing Legal Consideration Competent Parties Legal Description Mutual Assent Lawful Object ```
62
Dual Agency
One agency represents both buyer and seller
63
Purchase Contract
Voidable - Rescindable by one of the parties Rescindable - Lied/Tricked/.Deceived Void - Illegal
64
Tenancies
``` Sole and seperate Tenants in common Community Property Community Property with Rights of Survivorship Joint Tenancy Joint Tenancy with Right of Survivorship Tenants by Entirety ```
65
Appraisal
Conditional commitment (FHA) Certificate of Reasonable Value (VA) Market Data (Comparable), Cost, Income (Capitalization) Highest and Best Use
66
Depreciation
Physical - Broken Functional - If they do not like something or outdated Economic - Outside factors such as airport
67
Leases
Gross - Landlord pays all operating expenses and assessments and keeps whatever is leftover Net - Tenant pays operating expenses and assessments, landlord pays building repairs Percentage - Tenant pays base rent plus percentage of gross sales.
68
Estates
``` Freehold - Ownership Less than freehold (Leasehold) - Lease Fee simple absolute - Highest form of ownership Defeasible Fee - Owner with condition (Determinable, conditional) ```
69
Mineral Rights
Real property - Appurtenant
70
Reg Z
Lender disclose all finance - NEW ONLY!
71
RESPA (Real Estate Settlements and Procedures Act)
Lenders disclose all cost finance & credit (closing costs) New residential financing HUD booklet and good faith estimate must be provided within 72 hours from loan application HUD1 - 24 hours prior to close
72
Recourse
Lender can sue for deficiency if house sells for less than worth
73
Package
Includes both real and personal property
74
Leverage
Borrowing money (Borrow more for longer) LTV

Real Estate (7 decks)

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