All Chapter Summaries Flashcards
what are the ORs and EEs for a Deed
grantor
grantee
what are the ORs and EEs for a mortgage
mortgagee - lender
mortgagor - buyer
what are the ORs and EEs for a deed of trust
Trustor
trustee
what separates land use in different areas. they can dictate lot size, building, height, setbacks etc
zoning ordinances
what is an advalorem tax
a tax based on the value of real property
what is a property’s assessed value
the value placed on land and the building by a city, town, or county assesor for use in levying annual real estate taxes
What is the highest form of land ownership?
Fee simple is the highest form of land ownership.
What warrants title by the seller for them and under them only?
Special Warranty Deed
Under a special warranty deed the seller only warrants the property for time they owned it (under them), and not before
A real estate investment business organized as a trust best describes a/an:
REIT
Corporations, partnerships, and LLC ownership interest are not required to have a specified number of individuals. The REIT must have at least 100 investors.
Jones deeded a parcel of property to Billings for the life of James. who holds life estate? who is in reversion?
Jones is the grantor and as such has an estate in reversion, Billings is the life tenant and holds the life estate, James is known as a pur autre vi (life of another) the one whose life is on the line.
When a condition is placed in a deed it would most likely refer to which of the following?
Defeasible Fee
This is a condition where the property could revert back to the grantor because of the actions or inactions of the grantee. The other choices are not conditions listed in a deed.
Which is not properly included in the concept of the power of eminent domain:
The right of government to confiscate property from the owner
This right falls under police power because confiscation doesn’t allow for just compensation and eminent domain is a power with just compensation.
When a city buys real estate they would take title as:
Sole and separate
Rank the order of liens highest to lowest: IRS, Assessements, Property Taxes, Mortgage Lien
Property taxes, assessments, mortgage lien, IRS
What is always personal property?
Trade fixtures are personal property of the tenant.
What has an interest in real property but not an estate?
Mortgage
A mortgage holder has a lien against the property but no leasehold or ownership interest in the property. All the other answers are leasehold or ownership and therefore an estate.
The principle of ________ affirms that value is created by expected benefits to be derived in the future. Which of the following is the correct insertion?
Anticipation
In appraising commercial property, what would an appraiser not need?
Original cost
What is the adjusted gross income and how do you arrive at it?
Total rents less vacancies and credit losses
When a buyer is considered a customer the salesperson would owe the buyer all of the following EXCEPT:
Fiduciary
The salesperson owes his or her customer ethics, truthfulness, and disclosure of material facts. Only the client receives fiduciary duties.
The listing agent discriminates against a minority buyer. If the seller were to be held responsible for the actions of the agent, it would be an example of:
Vicarious liability
Vicarious liability occurs when a client is held liable for the actions of his/her agent.
The seller tells the broker they would like to sell their property furnished. The agent should do all of the following EXCEPT:
Add the personal property to the deed
A broker has earned a commission when:
: The broker secures a willing and able buyer making an offer meeting the seller’s terms
What is an essential element of a real estate contract?
Consideration
Under what conditions would the buyer most likely be refunded the earnest money?
Failure to qualify for financing
If the seller retains the buyer’s earnest money due to a contract breach, this would be called
Liquidated damages
Sellers sign an exclusive agency agreement with a broker and then sell the property themselves. What is true regarding the commission?
No commission will be paid
The listing agent is informed by the seller that the basement gets wet when it rains. The agent says nothing to the buyer. Who is liable for the failure to disclose the latent defect?
seller
Wetlands would come under:
Wetlands would fall under government police power.
Which of the following IS a protected class under the Equal Credit Opportunity Act but NOT under Fair Housing laws?
Marital status is only an ECOA protected category.
A man may take depreciation for income tax purposes on all of the following EXCEPT:
Land held for future profit
The IRS does not allow for the depreciation of land
What is blockbusting
Prohibited act of inducing, for profit, any person to sell or rent property based on representations made regarding entry into the neighborhood of persons of a particular race, color, religion, sex or national origin.
What is a forebeance
Forebearance is where the lender agrees to temporarily reduce, postpone or suspend the mortgage payment and not proceed with foreclosure if the borrower brings the loan current with in the specified time.
Proration accomplishes what?
Allocates expenses between buyer and seller
Because the seller pays expenses up to and through the day of closing, taxes and hazard insurance must be prorated to establish which party pays what portion of an item.
Prorated taxes would be shown on the settlement statement as a:
Credit to buyer, debit to seller
Prorated taxes are a credit to the buyer and a debit to the seller. The seller is responsible for taxes payable through the date of closing. Since (in most states) homeowners pay taxes in arrears of one year, the seller would have to bring the taxes current and give that money to the buyer as a credit.
If the buyer is assuming an existing loan on the property, which of the following is prorated at closing?
Interest Only
If the buyer is assuming an existing loan on the property, only the interest will be prorated.
When would IRS form 1099S be used?
Report sales price
A note that calls for periodic payments of principal only, with a balloon payment at the end of the loan term is called a/an:
Installment note
An installment note calls for periodic payments of principal only, with a balloon payment at the end of the loan term. A straight note calls for interest-only payments with a balloon payment at the end of the loan term. In an amortized note, principal and interest are paid together. An adjustable rate note permits the lender to periodically adjust the rate of interest according to fluctuations in the cost of money (interest).
A borrower applying for a FHA loan would be required to:
Pay a mortgage insurance premium
Which of the following conventional loan to value ratios would not need private mortgage insurance?
80%-20%
Traditionally on a conventional loan, the buyer makes a 20% down payment. They lost ground to FHA-insured and VA-guaranteed loans because of the disparity in down payments. This dilemma was solved in 1972 with the creation of MIP insurance. It enables lenders to make conventional loans without requiring 20% down.
The law that requires buyers and sellers be given an itemization of all costs and expenses of the buying and selling of a home is:
RESPA
The Real Estate Settlement Procedures Act requires that a thorough listing of the debits and credits due a buyer and seller be issued at the time of closing. Truth-in-Lending applies only to the borrower; it provides the borrower a disclosure of the costs of getting a loan.
In a lease situation, A leases to B and B leases to C. Who is responsible for the rent?
B to A
Ultimately the rent is due to the owner, and the lease is between the owner A is to tenant B. B is still responsible to A. Correct Answer: B
A property management account can earn what?
A property management trust account can earn interest that gets paid to the property owner.
In real estate terms, an estate for years also may be called:
A Leasehold
An estate for years is a lease that begins and ends on a specific date. A fee is the ownership of real property, and joint tenancy is co-ownership of the same property by two or more people at the same time.
Commingling is one of the greatest single causes for loss of license. Which of the following would not be considered commingling?
Holding an un-cashed deposit check until acceptance of an offer when directed to do so by both the offeror and the offeree
According to A.R.S. Sec. 32-2151 (A): unless otherwise provided in writing by all parties to a transaction, a broker must immediately place all trust funds entrusted to the broker in either a neutral escrow depository or in the broker’s trust account. Note the words “unless otherwise provided in writing by all parties to a transaction.” This means that if the parties to a transaction direct the broker to hold an un-cashed check until acceptance of an offer, the broker can do as directed without the action being considered “commingling.” In fact, this is common practice.
An easement cannot be extinguished by:
Decision of the property owner (servient tenement)
What is true when Bill moves into a cooperative?
Bill may have to make a larger payment if the other parties do not make their payments
A life tenant leases a property for 25 years to a major corporation. The life tenant dies ten years later. What is the status of the lease?
Lease is terminated
An owner of a two-acre lot separates it and wants to give away one of the newly formed lots. What would they have to provide?
Easement by necessity
Water table is defined as:
Level of which water will be located.
The two classifications of water in Arizona are:
Ground and surface
A section of land may be described as:
a section is 5,280 feet x 5,280. 4,280 / 3 = 1,760 yards
What determines the north and south boundaries in a government survey?
baselines
The Arizona Affidavit of Disclosure would not include
The affidavit of disclosure applies only to residential zoned property
The Affidavit of Disclosure allows for a 5-day rescission right, applies to all land zoning, and is recorded with the grand deed.
When a buyer purchases a parcel of unimproved land, there exists a right to rescind. How long do they have?
The buyer has a 7 day unilateral right to rescind if he has seen the property
Arizona law defines a subdivision as land that is divided or proposed to be divided for sale or lease into:
6 or more lots of less than 36 acres
The difference between the actual value of a property and the total amount of liens against the property would be:
The owner’s equity
is marketable title a perfect title?
There is no such thing as a perfect title, there always something on the title such as property taxes, etc.
When purchasing a piece of property in which your spouse is not to have any interest, which deed would be used to relinquish any rights to the property?
Disclaimer deed
Who places deed restrictions on real estate?
The Grantor
The rules of the Real Estate Commissioner have what kind of effect
Have the force and effect of law
The rules of the Real Estate Commissioner are not a part of statutory real estate law. The rules have the force and effect of law to licensees only.
A real estate licensee gets contracted with a large bank to handle all of their local BPO’s. Who can the bank make payment to the BPO for?
Only the licensee’s broker
All compensation for a licensee must go through the licensee’s broker.
When a broker’s license is revoked, the licenses of the salespeople in the brokerage agency are:
Automatically suspended
When a broker’s license is revoked, the licenses of the salespeople in the brokerage agency are suspended or inactive until they get a new broker. You must have an active broker in order to participate in real estate activities.
An authorization to sell consists of a mutual agreement between broker and seller and is considered:
It is a contract for personal services
Bob and Mary have decided to purchase a house from a real estate auction. what do they need in order to do this
The auctioneer needs a license.
To auction any real property, business or timeshare a real estate license is required
What is the maximum amount of personal money a broker can keep in his trust account?
The maximum amount of personal money a broker can keep in his trust account is $3,000.
What is the statutory redemption period on a tax lien foreclosure sale?
The statutory redemption period for a tax foreclosure is 3 years.
What would NOT be a lien?
An easement in gross is not a lien.
In using the income approach to value, an appraiser would not care about:
The cost to cure a leaky roof
In using the income approach to value, an appraiser would not care about the cost to cure a leaky roof because the indication of value using the income approach is based solely on the property’s ability to generate income in whatever state of repair the property is at the time of the appraisal.
A trustor lists his property for sale on May 1. On May 2 he was notified of default on the trust deed, which default had occurred 45 days prior to notification. The trustor, under these conditions:
The homeowner may sell the property within the 90-day reinstatement period.
The premium for a lender’s title insurance policy is based upon the:
Amount of new financing
The premium for a lender’s title insurance policy is based upon the amount of new financing. Customarily, it is the buyer who pays for this policy. This policy is then put in the lender’s name, and it insures up to the amount borrowed.
A property management company hires employees to supervise residential units. The company is covered in the event the employees steal or misappropriate monies. What would best describe that type of coverage?
No. An occupancy limitation of two persons per bedroom residing in a dwelling unit is presumed reasonable according to Arizona law
According to A.R.S. Sec. 33-1317 (F): an occupancy limitation of two persons per bedroom residing in a dwelling unit shall be presumed reasonable.
If there is a material non-compliance by a landlord or a tenant with the rental agreement, the non-breaching party may deliver a written notice to the breaching party specifying the acts and omissions constituting the breach and the rental agreement will terminate as follows:
If there is no effect upon the health and safety of the tenant, the rental agreement will terminate upon a date not less than ten days after the receipt of the notice if the breach is not remedied within ten days
According to A.R.S. Sec. 33-1361: if there is a material noncompliance by the landlord with the rental agreement…the tenant may deliver a written notice to the landlord specifying the acts and omissions constituting the breach and that the rental agreement will terminate upon a date not less than ten days after receipt of the notice if the breach is not remedied in ten days. If there is a noncompliance by the landlord…materially affecting health and safety, the tenant may deliver a written notice to the landlord specifying the acts and omissions constituting the breach and that the rental agreement will terminate upon a date not less than five days after receipt of the notice if the breach is not remedied in five days
a residential tenant with a month to month lease enjoys which leasehold estate?
periodic tenancy
it automatically renews itself from period to period
in real estate terms, an estate for years may also be called
fee simple conditional
to be enforeable a lease must be in writing if the term is
longer than 1 year
when a claim is paid by the real estate recovery fund, the status of the licensee’s license is
terminated
how long must the landlord give notice if they were to terminate a month to month lease
30 days
what is an essential element for an Arizona deed
signature of grantor
the statute of frauds was brought into being to prevent
perjury
an affidavit of value would be used in what circumstance
to assist the assessor in determining property taxes
what is an irrevocable right
an easement
what ownership requires probate
tenancy in common.
a tenancy that includes rights of survivorship does not require probate. Tenancy in common is not rights of survivorship and your property passes to your heirs
when a husband and wife own real estate as community property and the husband dies without a will, what happens to the property
goes to the heirs
if you hold a long-term proprietary lease you would have an interest in
cooperative
when two or more parties own real property as co-owners with right of survivorship, what is the tenancy called?
joint tenancy
when parties specify and preserve the unities of possession, interest, time and title with the right of survivorship their tenancy is a joint tenancy.
when a new residential development is taking place in an Active Management Area, the developer would be required to provide what?
assured water supply
radon gas would be found primary in what substance
underground minerals
how many townships are contained in a government survey “check”
16
what sections are contiguous to section 6?
1 and 7
government checks are 24 miles square and are defined by which of the following
standard parallels and guide meridian.
a subdivision public report is not required on what type of property
commercial lots.
if you buy an unimproved land in a subdivision “sight unseen” you have how to rescind the contract
6 months
7 days if seen
what is a good way to describe a second mortgage
a junior lien on real estate. second = junior
the difference between the actual value of property and the total amount of liens agains the property would be
the owners equity
when a person wishes to enforce a judgement they would exercise
a writ of execution
who places deed restrictions on real estate
the grantor
an interest in title to real property, not gov. owned, obtained by action at law based on adverse possession best describes
prescription
define subrogation
the substitution of one claimant or creditor for another with the substituted party succeeding to the legal rights and claims of the original claimant.
define subordination
a written agreement between lienholders on a property to change the priority of mortgages, judgements, and other liens
when the buyer is getting a new loan, the interest proration on the closing statement will reflect
debit to the buyer
adverse possession is gained by
living open and hostile on property for 10 years
what action would terminate a purchase oontract
eminent domain
a subordination clause is most often used in a
trust deed
what would not be a lien?
easement in gross
if a buyer wants to purchase property with an FHA Insured loan you would refer him to
the primary market
a non-recourse loan would not provide for which of the following
deficiency judgement
the sellers proceeds would show on the closing statement in the following manner
debit seller only
any money that seller takes out of escrow account is a debit against the account.
permanent finance payments would include which of the following
principal and interest `
when a new FHA loan is required the mortgage insurance premium
is up front and monthly premium
what charge would be paid at closing on a high-risk conventional loan
PMI
a trust deed is signed by the
trustor
what association is not a part of the secondary market
federal universal mortgage assosiation
the “escape clause” in FHA insured finance of a home purchase is the
right of the buyer to withdraw if the appraisal is lower than the contract price
If you live along a steam and have water rights, these rights are called
riparian
what deed would contain 3 promises and 2 warranties
warranty deed
if the tenant abandons the property and leaves personal property behind how long does the landlord hold the tenants property
14 days
property management companies are required to retain a copy of all residential rental agreements for a period of ____ from the date of expiration
1 year
by definition, “a property management firm” means any corp, partnership or LLC or a designated broker that manages rental property
under a written agreement and for compensation
if there is a material noncompliance by a tenant, the landlord may deliver a written notice to the tenant to fix. If breach is not remedied within ____ the landlord may terminate the rental agreement
10 days
what warrant indicates that the grantee is the owner of the property
seizin
what is taken into consideration when calculating the effective gross income
vacancy and loss of credit
what is NOT an operating expense
vacancies and loss of credit
what would be considered functional obsolescence
five bedrooms and one bath
in real estate matters, “open housing” means
prevention or elimination of discrimination in housing
if the seller breaches the purchase contract the buyer may seek
specific performance
which term best describes reducing the degree or intensity of, or eliminating pollution
abatement
which term best describes any substance that can cause or aggravate cancer
carcinogen
what is the primary reason asbestos was used prior to our knowlege of the health risks
fire resistance
Federal Emergency Management Agency (FEMA) is responsible for
flood area maps
when a person has suffered a violation of the Fair Housing Law they have ____ to file a claim
12 months or a year
what is not part of a tax deferred exchange
highest and best use
RESPA Requirements would not apply in which of the following situations
a conventional loan that would not be sold on secondary mortgage markets
who picks the title insurance company
the seller
RESPA regulations would not apply to:
a transaction financed solely by a purchase money mortgage taken by the seller
which would a buyer prefer: land installment contract or purchase money mortgage
purchase money mortgage
a home seller would purchase title insurance for a buyer. What type of insurance would a buyer purchase for a lender?
mortgagee title insurance
real estate taxes are prorated as of the day of closing. the real estate taxes are
a debit to the seller and a credit to the buyer
the broker must give his client an accounting of the property management account every ____
6 months
the broker’s property management account must
be accessible by the property manager/broker
when the court orders property to be sold as a result of a judgement is called
execution
in AZ the Doctrine of Water Usage is known as
prior appropriation
Littoral rights would refer to
property boarding lakes and oceans
when a party owns land on a non-navigable stream, it is said that they hold title to
low water mark
there are how many standard sections in a townshp
25
land described by lots and blocks
are described by reference to the recorded plat of a subdivision
what can a developer do without a public report
lot reservations
a subdivider must be able to give the purchaser
permanent access
if a buyer buys a parcel of land in which a public report was required but was not issued, the buyer may void the sale within
3 years
a buyer of a lot located within a subdivision may rescind the sale if the lot does not have
permanent ingress and egress
how long does a developer keep a receipt of having given a public report to the buyer
5 years
how many parcels can a tract of land be divided into without requiring a public report
5
what is maximum deposit allowed with a lot reservation
$5,000 fully refundable
improved subdivided property is defined as
a parcel of land on which a structure has been build
An area or easement that restricts use and preserves the land in an undeveloped state is an
Natural Area Open Space
An employer wants to be protected against employee’s dishonesty, the employer should ask for a
fidelity bond
what is a life estate pur autre vie
for the life of another,
life estate measured by the life of another
what are the ways to terminate a homestead
sale or transfer of property
they move out of AZ
abandon prop for 2 years+
moves to different primary residence
how much does the homestead exemption cover and how often can if be used
up to $150,000 of property equity
a person can have ony one homestead exemption at one time
what is a turnkey
when a new tenant can use a commercial space without making changes or improvements
what is a lease option
a lease agreement that gives tenant the choice to purchase the property
the provisions of Section 121 of the taxpayer relief act of 1997 can be invoked only once every
2 years
what is protected under the civil rights act 1866
discrimination against race, religion, sex, national origin (ancestry)
what is the limit if there is a violation of the civil rights act
there is no limit to punitive damages
what does the fair housing act protect
race color religion or national origin of residential property
what are the 3 requirements to be exempt from the federal fair housing act
owns no more than 3 such homes at a time
no discriminatory ads are used
no real estate broker is used
what are the added protected classes protected in the fair housing laws
in 1974, added sex and gender
in 1988 added familial status and disability
an individual can file a civil lawsuit within _____ after discriminatory incident or after the conclusion of a HUD hearing
2 years
what are the days a lease can terminate under ALTA if a tenant breaches? a landlord if unhealthy?
10 days of noncompliance for tenant to remedy
5 days if noncompliance for landlord if affecting health/safety.
how many days can tenant terminate lease if dwelling has fire or casualty damage
14 day written notice
what are emblements
farm crops that require annual cultivation, which may be removed by a tenant farmer if the owner sells land; considered to be personal property and so emblements are transferred through a bill of sale
aka fructus industriales
what warrants title by the seller for them and under them only
special warranty deed
Under a special warranty deed the seller only warrants the property for time they owned it (under them), and not before.
Buyer purchases property and has a $90,000 title policy. The title company is required to pay a claim, but the payoff is higher than the original policy amount. This is due to:
An inflation clause in the title policy
what is an encumbrance and a lien
deed of trust
Under the _________ , the grantor warrants that at the time of delivery, he or she has the right to convey legal title.
Covenant of seizin
An instrument that conveys a grantor’s interest is called a:
deed
what does “tacking” refer to when following easements
prescription easement
having an improvement on a land shows that someone has what in that property
interest
ie, a fence is an improvement and shows interest in the property
what lists an interest in real property by not an estate
a mortgage
A legitimate reason for appraising a property as of some date in the past is:
To settle an estate
The rule that says an item is only worth what it contributes in value to the property best describes:
The rule of contribution
Seller and buyer sign a purchase contract. The buyer wishes to give it to another party. This action is called:
Assignment
Seller accepts a sales contract, with a close of escrow in 90 days. What is the buyer’s position?
Equitable title
what is equitable title
any present right to acquire legal title to property
When any broker can sell a listing and receive a full commission, this is called
Open
An expanded agency, which does not require the additional consent of the principal for the agent to act is a/an:
Agency by necessity
An expanded agency, which does not require the additional consent of the principal for the agent to act is a/an agency by necessity. This typically happens in an emergency situation. You are showing a house to a buyer and it is on fire you should contact the proper authorities even though you don’t represent the seller.
When a buyer and seller agree to cancel a contract, under normal conditions who would receive the earnest money?
buyer
What purpose does the Superfund serve?
It allows the EPA to clean up abandoned waste sites and requires the responsible party to cover the costs of doing so
Which is the environmental program established to address abandoned hazardous waste sites?
Superfund
A lender is limited in the amount of reserves they may hold in a residential real estate transaction. This is governed by:
RESPA
What is RESPA
Real Estate Settlement Procedures Act (Regulation X)
to protect consumers by requiring lenders to disclose actual closing costs in a timely manner
applies to residential property designed for 1 - 4 families
When does RESPA not apply
loans used to finance the purchase of 25+ acres
loans for purchase of vacant land
certain loan assumptions
commercial or business loans
temporary financing, such as construction loans.
what is Regulation Z
Regulation Z implemented The Truth in Lending Act (TILA)
lending institution discloses to the borrower the actual, total costs involved in acquiring credit
does not set limits on interest rates or other finance charges, regulates disclosure of the items
enforced by Consumer Financial Protection Bureau
When does TILA apply
to all real estate loans made to consumers for personal, family, or household purposes if loan is subject to finance charge or payable by written agreement in more than 4 installments
When does TILA not apply
business, commercial
less than 4 installment payments
loans without finance charges
loans made to corp, partnerships, associations, and agencies
what are some examples of trigger terms for regulation z
4% interest rate
$500 down payment
$350 monthly payments
How many times in 10 years could a single person sell their personal home and receive, tax-free, a gain of $250,000?
5 times
You can tax a tax exempt gain every 2 years as long as it was your primary residence. It has to be a primary residence 2 of the last 5 years and it’s not required that they are consecutive.
When land is offered interstate it would be regulated by the Office of Interstate Land Sales Registration. What number of lots must be offered for the regulation to take place?
100 or more
When a lender’s advertising is considered bait and switch it would be regulated by:
Truth in Lending
Truth in Lending states that advertising must be truthful and not deceptive
A survey is the process of:
: Determining the size and boundaries of a piece of property
Unlike the location survey which determines encroachments, the survey is concerned with size and boundaries of the property.
What is a bringdown search (fee)?
Updates the title prior to close of escrow
On a closing statement, the amount of the sales price would be:
Debit buyer, credit seller
In a blanket mortgage, which special clause would you most likely find?
Release Clause
provides for the release of parcels out of a blanket mortgage
who has title on a land contract
vendor
In what type of installment agreement does the buyer make payments for the right to possession, but does not recieve the title until most or all of the terms have been met?
Land contract
In real estate terms, an estate for years also may be called:
a leasehold
What term does the law use to describe a holdover tenant?
tenancy at sufferance
What document is evidence of the relationship between property owner and property manager?
Property management agreement
In a listing of property for sale, what is not necessary for a valid exclusive listing
a legal description
A legal description is not required in a listing – an adequate description is acceptable.
If a branch manager is a licensed salesperson the salesperson may, when dealing with branch office transactions:
Be a signer on the broker’s trust account and property management trust account
For purposes of real estate law, “knowingly” or “with knowledge” includes engaging in any prohibited conduct if the subject person actually knew or should have known:
The falsity of any statement or representation
Four widowers decided to buy a home and live together. They took title in equal shares, but agreed that as each of them died, his share would pass to the remainder of the group until only one was left who would then own the entire property. The men took title to the home as:
Joint tenants
When land is in an AMA, what is happening?
Overdraft of the underground water supply may be occurring.
AMAs are heavily populated areas where there has been significant depletion of mined groundwater referred to as overdraft.
What determines the east and west boundaries in a government survey?
meridian
When a quarter section is nonstandard as a result of lakes, mountains, and/or streams this is called a:
government lot
The Affidavit of Disclosure includes what type of property
The affidavit of disclosure applies only to residential zoned property
Who is able to file a mechanic’s lien
Mechanic’s liens are put on the property by someone who performed work on the real property or provided materials and who ha snot been paid.
You would discover a ‘cloud on title’ by reviewing:
Schedule B
If a broker in AZ is giving another broker in CA a $500 fee for a buyer moving to AZ. Who does this information have to be disclosed to?
One broker giving a referral fee to another licensed broker does not have to be disclosed.
What is a wraparound loan
allows a mortgage or trust deed to wrap around the existing mortgage.
the seller agrees to remain obligated to pay the exisiting loan(s) and the buyer purchase the property “subject to” with the existing loans remaining as encumbrances against the buyer’s title interest
then buyer makes single payment to amortize the loan
Why would the APR be higher than the interest rate on the note?
The lender charges discount points
When a mortgage is in default what action would the lender take?
Court action
At what time would a warranty deed be given to a buyer under a land contract?
only when paid in full
When a property manager repairs a malfunctioning pool pump, the type of maintenance is called:
corrective
You do not need to hold a real estate license to:
Act as a residential leasing agent if you work at only one location during any given workday
Before the mortgage foreclosure is held the mortgagor can redeem the property. This is called:
equitable period of redemption
time frame by which the mortgagor can redeem the property
a promissory note is
evidence of the debt
the redemption period on a deed of trust following the trustee’s sale is
non existent.
reinstatement is 90 days PRIOR to trustee’s sale. Following, the deed is given to the successful bidder.
who authorizes the use of the “power of sale” in a deed of trust
The truster (borrower) authorizes the use of the power of sale clause when they sign the Deed of Trust. The beneficiary (lender) initiates the use of the power of sale clause when the truster is in default.
A timeshare representative is offering a gift to all prospective buyers. When would the buyer receive the gift?
after the sales presentation
When a person sends unsolicited fax advertising the fine can be up to:
$16,000
A selling broker may present an offer directly to the seller without the listing broker if he tried to reach the listing broker for how many hours?
24
A salesperson prepares an offer on a property of another listing broker. The salesperson cannot contact the listing broker within 24 hours. What may the salesperson do?
request the seller give written authorization to present the offer
when a lot is sold outside of a subdivision what must appear in the deed
no ingress or egress exists
How long does a developer keep a receipt of having given a public report to the buyer?
5 years
What is required when a Public Disclosure is not required
An Affidavit of Disclosure
What is an Affidavit of Disclosure
a mini public report
must meet the following:
property is an unincorporated area
five or fewer parcels are involved in the transaction
The buyer has the right to rescind within 5 days of receipt and must be recorded along with the deed
If a structure is built within 2 years what is the right of rescission period
if there is a structure built within .2 years it is considered improved land. THere is no right of rescission on improved, subdivided property
what is considered an exempt domestic well
one with a maximum pumping capacity of 35 gallons per minute
the two classifications of water in AZ are
ground and surface
What agency oversees Active Management Areas
ADWR
it’s mission is to ensure long term water supplies
In AZ, the Doctrine of Water Usage is known as
Prior Appropriation
what is not considered a grandfathered water right
exempt domestic well
littoral rights would refer to
property boarding lakes and oceans
Name all the parties in a deed of trust
beneficiary - lender
trustee - 3rd party who holds bare naked title
trustor - borrower creating the trust
what is a testator
maker of a will
what is an estate at will
when owner permits another to occupy the property
what is an estate at sufferance
the lowest type of leasehold. the holder of this tenant is called a holdover tenant. basically trespassing.
what is a gross lease
common residential lease where tenant pays the same rent each month and landlord pays building expenses
what is a net lease
used in most commercial properties. tenant pays base rent and a share of the building’s expenses
what is a percentage lease
typically used for retail business.
tenant pays base rent and landlord receives a percentage of the tenant’s gross profits.
