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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
Q

Conversion

A

Theft

Placing client money anywhere other than the trust account

Using client money for personal use

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26
Q

Commingling

A

Inappropriate accounting of client funds

Only up to $3,000 of personal money in trust account

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27
Q

Teams

A

Include company name in all ads

Can not use Company, Group, or Associate in the name

Cannot be registered with ACC (AZ Corporate Commission)

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28
Q

Timeshare (Gifts and Tours)

A

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)

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29
Q

Record Keeping

A

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

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30
Q

Change of Address

A

10 days to notify (Address Judgement, conviction of crime, change of employer)

31
Q

Signs

A

Must move immediately after sale (False advertisement)

Must have permission

Follow HOA and city laws

32
Q

Affidavit of Value

A

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
Q

Judgement

A

Involuntary court decision

Valid for 5 years (May renew within 90 days of expiration)

Writ of Execution enforces judgement

34
Q

Order of a Judgement

A
  1. Lis Pendens
  2. Judgement
  3. Write of execution
35
Q

Rules Violation

A

AAC (Arizona Admin Code)

Isn’t rule but has force and effect on licensees

Max $1,000 penalty

Rules created by commissioner

36
Q

Disclosure Issues

A

Any known material/latent defects

MUST be disclosed in writing

37
Q

Material Defect

A

Affects payment value or purchase decision

38
Q

Latent Defect

A

Undiscovered defect

39
Q

Federal Fair Housing

A

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
Q

Blockbusting

A

Panic Selling

Ex. I heard there’s terrorists living in this neighborhood you should probably sell before anything happens

41
Q

Redlining

A

Lenders will not work within a certain area

Ex. We will not work in that part of town it is too run down

42
Q

Steering

A

Making decisions for clients (Taking away their right)

43
Q

Americans with Disabilities Act

A

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
Q

Anti Trust

A 
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
Q

Insurance

A

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
Q

Equal Opportunity Credit Act (ECOA)

A

Protected classes and marital status, age, and public assistance

30 days to provide reason for loan denial

47
Q

Do Not Call Registry

A

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
Q

Do Not Fax

A

Fine $500 per page
Maximum $16k per fax
Managed by FCC
Must get written permission to fax

49
Q

CAN-SPAM Act

A

$16k fine per violation

Managed by FCC

All unsolicited emails must include:
Physical address
Opt out
Return email address
Subject must be advertisement
50
Q

Soldiers and Sailors Relief Act

A

AKA Service Persons Relief Act

May not be foreclosed on while actively deployed

51
Q

FEMA (Federal Emergency Management Agency)

A

Flood Maps

52
Q

Asbestos

A

Used for insulation

Exposure can increase risk for lung disease

53
Q

Friable

A

Crumbles easy in hand (Airborne)

54
Q

Lead Based Paint Disclosure

A

Disclosure required on any residential property built prior to 1978

55
Q

Rights of the Government

A

P.E.T.E.

Police Power - Confiscation
Eminent Domain - Condemnation
Taxation
Escheat

56
Q

Easement

A

When someone has right to limited use and enjoyment of someone else’s property

57
Q

Appurtenant

A

Anything that attaches

A right or restriction that goes with the property

58
Q

Easement Appurtenant

A

Attaches to the land permanently and benefits the owner.

59
Q

Agency Law

A 
Creation:
Oral
Implied
Estoppel
Written
Scope
Special (Single)
General (Alot)
Universal (Everything)
Attorney in Fact (Person given power)
P
60
Q

Listing Types

A

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
Q

Purchase Contract (Required Elements)

A 
Writing
Legal Consideration
Competent Parties
Legal Description
Mutual Assent
Lawful Object
62
Q

Dual Agency

A

One agency represents both buyer and seller

63
Q

Purchase Contract

A

Voidable - Rescindable by one of the parties
Rescindable - Lied/Tricked/.Deceived
Void - Illegal

64
Q

Tenancies

A 
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
Q

Appraisal

A

Conditional commitment (FHA)
Certificate of Reasonable Value (VA)
Market Data (Comparable), Cost, Income (Capitalization)
Highest and Best Use

66
Q

Depreciation

A

Physical - Broken
Functional - If they do not like something or outdated
Economic - Outside factors such as airport

67
Q

Leases

A

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
Q

Estates

A 
Freehold - Ownership
Less than freehold (Leasehold) - Lease
Fee simple absolute - Highest form of ownership
Defeasible Fee - Owner with condition
(Determinable, conditional)
69
Q

Mineral Rights

A

Real property - Appurtenant

70
Q

Reg Z

A

Lender disclose all finance - NEW ONLY!

71
Q

RESPA (Real Estate Settlements and Procedures Act)

A

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
Q

Recourse

A

Lender can sue for deficiency if house sells for less than worth

73
Q

Package

A

Includes both real and personal property

74
Q

Leverage

A

Borrowing money (Borrow more for longer)

LTV

Real Estate (7 decks)

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