AZ Real Estate (Hogan) 2020

Question 1

Surface Water Rights - are regulated thru this Doctrine, which also means “First in Time - First in Right.”

Answer 1

Doctrine of Prior Appropriation -

Surface Water Rights - First in Time - First in Right. This means that the First Person to Claim a “Beneficial Use” of the Water Has the Senior Right To It

Chap 20

Question 2

Brings Colorado River Water to Urban Areas in Central Arizona by way of 336-Mile Canal?

Answer 2

(CAP) Central Arizona Project (CAP) -

Brings Colorado River Water to Urban Areas in Central Arizona by way of 336-Mile Canal

Chap 20

Question 3

What type of Renewable Water Source replenishes groundwater using CAP?

1. In AMAs_Active Mgmt Areas (Maricopa, Pima and Pinal Counties) - _______ is responsible for replenishing groundwater using CAP water.
2. Property Owners - charged on property tax bill.

Answer 3

CAGRD - Central AZ Groundwater Replenish District - Renewable Water Source replenishes groundwater using CAP

1. _In AMAs_Active Mgmt Areas (Maricopa, Pima and Pinal Counties)_ -
   
   1. CA G RD is responsible for replenishing groundwater using CAP water.
2. Property Owners - charged on property tax bill.

Chap 20

Question 4

What are the 2 Renewable Water Sources?

Answer 4

2 Renewable Water Sources are -

1. CAP - Central Arizona Project - Brings Colorado river water to urban areas (336-mile canal)
2. CA G RD - Central Arizona Groundwater Replinish District - Replenished groundwater using CAP (Colorado River water)

Chap 20

Question 5

1. What was adopted in 1980 and established (ADWR) AZ Dept of Water Resourses
2. What 3 things is this code responsible for?

Answer 5

AZ - Groundwater Mgmt Code -

• Adopted in 1980
• Established ADWR: the AZ Dept of Water Resourses (ADWR)

1. Controls Severe Overdraft - INA’s and AMA’s_Overdraft
2. Distribute Groundwater - Provide means
3. Increases Water Available - ex: CAP_Central AZ Project

Chap 20

Question 6

AZ Groundwater Management Code Objectives:

1. Con___ S_____ Ov_____: Over Pumpling of groundwater faster than it can be replaced by nature.
2. Dis______ of Gr______ - Provide Means
3. In______ W_____ - Supply in AZ - by supplemental sources like CAP - Central AZ Project (brings Colorado River Water in)

Answer 6

AZ Groundwater Management Code Objectives:

1. Control Severe Overdraft: Over Pumpling of groundwater faster than it can be replaced by nature.
2. Distribution of Groundwater - Provide Means
3. Increase Water - Supply in AZ - by supplemental sources like CAP - Central AZ Project (brings Colorado River Water in)

Chap 20

Question 7

What type of groundwater restriction area?

1. Threatens to Exceed Areas - Irrigation uses limited water supplies.
2. Irrigated Acreage Restricted but specific conservation measures are not required.

Answer 7

INA’s - Irrigation (Non-Expansive) Areas -

1. Threatens to Exceed Areas - Irrigation uses limited water supplies.
2. Irrigated Acreage Restricted but specific conservation measures are not required.

Chap 20

Question 8

What Type of Groundwater Restriction Area is the following?

1. Areas where Excessive Overdraft (over pumping) is occuring.
2. Areas: Pinal, Phoenix, Prescott, Santa Cruz, and Tucson

Answer 8

AMA’s - Active (Management) Areas -

1. Areas where Excessive Overdraft (over pumping) is occuring.
2. AMA’s Areas: Pinal, Maricopa County (Phoenix), Yavapai County (Prescott), Santa Cruz County, and Pima (Tucson)
3. Rashins: Domestic (25%), Agricultural (69%), Industrial (6%)

Chap 20

Question 9

Ass____ W____ S_____ P_____

Regulates Limited Groundwater supplies to Assure Water in AMA’s

Answer 9

Assured Water Supply Program -

Regulates Limited Groundwater supplies to Assure Water in AMA’s

Chap 20

Question 10

Under the Assured Water Supply Program,

1. Public Report Issued - inside an AMA (must obtain):
2. Ass____ Water S____ C_______ (100 years) - must be issued by _____ to Subdivider to get a P____ Re___.

Subdivider (Water Provider) must demonstrate:

1. Unint_______ Water - Supply for ____yrs
2. Fin_____ Ability - Con_____ Water D_____ System
3. Subdivison Goals - Consistent with AMA Mgmt Goals.

Answer 10

Assured Water Supply Program (Rpt/Water) -

Public Report Issued - inside an AMA (must obtain):

1. Assured Water Supply Certificate (100 years) -

must be issued by ADWR to Subdivider to get a public report.

Subdivider (Water Provider) must demonstrate:

1. Uninterruptable Water - Supply for 100 yrs
2. Financial Ability - Construct Water Delivery System
3. Subdivison Goals - Consistent with AMA Mgmt Goals.

Chap 20

Question 11

Outside of an AMA

1. What Water Supply Program is used from ADWR
2. What ADWR Report must be provided?

ADWR’s AD______ WATER SU______ PROGRAM -

1. Ad______ W____ Rep_____ - With App from ADWR
2. If Inadequate Water: Dis______ in Pur_____ C_____ and Ad______

Answer 11

ADWR’s ADEQUATE WATER SUPPLY PROGRAM - (Outside)

Outside of an AMA Areas (Subdividers must provide):

With Public Report Application:

1. Adequacy Water Report - With App from ADWR
2. If Inadequate Water: Disclosure in Purchase Contracts and Advertising

Chap 20

Question 12

What type of wells are these?

1. Wells used for domestic purposes, not for irrigation. Pump capacity of 35 gpm maximum.
2. Permit required from ADWR.

Answer 12

Exempt Wells -

1. Wells used for domestic purposes, not for irrigation.Pump capacity of 35 gpm maximum.
2. Permit required from ADWR.

Chap 20

Question 13

When Property is sold with Well Rights, what form must be used?

Info Needed: names, contact info, w____ loc_____, and ass____’s p_____ n_____.

Answer 13

Transfer of Well Rights -

1. Transfer Form - filed with ADWR when property sold
   * Info needed - names, contact info, well location, and assessor’s parcel number.

Chap 20

Question 14

This process is used for what?

1. Court process - to determine extent and priority of water rights (Doctrine of Prior Appropriation) in the Gila River/Little Colorado River System.
2. Well Owner’s (Claim) - must be filed to be included in court’s decision.

Answer 14

Adjudication of Water Rights -

1. Court process - to determine extent and priority of water rights (Doctrine of Prior Appropriation) in the Gila River/Little Colorado River System.
2. Well Owners (Claim) - must be filed to be included in court’s decision.

Chap 20

Question 15

This Code creates two types of areas for groundwater restrictions.

Answer 15

Arizona Groundwater Management Code

2 Groundwater Restrictions -

INA’s - Irrigation Non-expansion Areas - Areas where irrigation uses threaten to exceed limited water supplies

AMA’s - Active Management Areas - Areas where excessive overdraft (over pumping) occurs. AMA’s in Phoenix, Pinal, Prescott, Santa Cruz, and Tucson.

Chap 20

Question 16

What type of water rights are these?

1. Irrigation Grandfathered Rights - Land Irrigated from 19__ to 19__.
2. Type-1 Non-Irrigation Rights - Water Re___ from Irrigation can be used for In_____ or Sub______
3. Type-2 Non-Irrigation Rights - Based on His_____ Groundwater Pumping such as Live____ Watering, In_____, or G___ C_____. May be Sold Seperately.

Answer 16

Grandfathered Water Rights -

1. Irrigation Grandfathered Rights - Land was Irrigated from 1975 to 1980.
2. Type-1 Non-Irrigation Rights - Water Retired from Irrigation can be used for Industry or Subdivision
3. Type-2 Non-Irrigation Rights - Based on Historical Groundwater Pumping such as Livestock Watering, Industry, or Golf Course. May be Sold Seperately.

Chap 20

Question 17

What type of Irrigation right is the following?

1. Land must have been “IRRIGATED” from 1975 to 1980.
2. Allows irrigation to specific acreage

Answer 17

Irrigation - Grandfathered Right -

1. Land must have been “irrigated” from 1975 to 1980.
2. Allows irrigation to specific acreage
3. Not Sold Seperately

Chap 20

Question 18

What type of Water right is this?

1. Water use retired from irrigation
2. Can be used for Industry (Mfg Goods) or Subdivision.

Answer 18

Non-Irrigation Rights - Type 1

1. Water use retired from irrigation
2. Can be used for Industry (Mfg Goods) or Subdivision.
3. Not Sold Seperately

Chap 20

Question 19

What type of water right is this?

1. Historical groundwater pumping for a non-irrigation use such as livestock watering, industry, or golf course.
2. May be** **sold separately from land

Answer 19

Type 2 - Non-Irrigation Right -

1. Historical groundwater pumping for a non-irrigation use such as livestock watering, industry, or golf course.
2. May be** **sold separately from land

Chap 20

Question 20

A method of describing property boundaries using distances and compass directions from point to point.

Requires:

Point of Beginning, Distance/Direction between points, Closure must begin and end at same point

Answer 20

Metes and Bounds -

A method of describing property boundaries using distances and compass directions from point to point.

Requires:

Point of Beginning, Distance/Direction between points, Closure must begin and end at same point

Chap 20

Question 22

Recorded Plat Map or Lot & Block -

1. Subdivision Map - that shows the Lo____ and Bo______ of individual parcels (platted) and is R______ with County Recorder’s Office.
2. Area Mapped - P__ M__ that ID’s parcels by L__ & B____ numbers.
3. “Sm_____ Parcels” use ths method. Most common in populated areas.

Plat - Means to make a map

Answer 22

Recorded Plat Map or Lot & Block -

1. Subdivision map - that shows the Location and Boundaries of individual parcels (platted) and is “Recorded” with County Recorder’s Office.
2. Area mapped - Plat Map ID’s parcels by Lot & Block numbers.
3. “Smallest Parcels” use ths method. Most common in populated areas

Plat - Means to make a map

Chap 20

Question 23

A method of land description based on survey lines that run north to south (up/down) and east to west (right/left).

• Used to describe largest parcels of land.

Answer 23

Rectangular/Gov Survey aka PL SS - Public Land Survey System -

A method of land description based on survey lines that run north to south (up/down) and east to west (right/left).

• Used to describe largest parcels of land.

Chap 20

Question 24

Point beginning at the intersection of Gila and Salt Rivers is for what type of survey and used for largest parcels?

Answer 24

Rectangular/Government Survey aka Public Land Survey System (PLSS) -

Point beginning at the intersection of Gila and Salt Rivers (Used for Largest Parcels)

Chap 20

Question 25

Which way does the baseline run?

Answer 25

Baseline -

Runs east to west (right/left) - horizontal

Chap 20

Question 26

Principle Meridian runs which way?

Answer 26

Principle Meridian -

Runs North and South (Up/down). Same as range lines

Chap 20

Question 27

Strips that run every 6 miles from Principle Meridian, North and South

Answer 27

Ranges (Run North and South) -

Strips that run every 6 miles from Principle Meridian, in the same direction as Principle Meridian, north and south (up/down).

Chap 20

Question 28

North and South strips from the Principle Meridian every 6 miles are called?

Answer 28

Range (Strips) -

North and South strips from the Principle Meridian every 6 miles. Numbered from principle meridian (left to right)

Chap 20

Question 29

Townships -

__ miles by__ miles squared parcels, Township lines run E___ to W___, same as baseline.

Answer 29

Townships -

6 miles by 6 miles squared parcels, Township lines run east to west, same as baseline.

Townships - Numbered up from baseline.

Chap 20

Question 30

How many sections in a township?

Answer 30

Townships -

36 Sections - 1 mile by 1 mile; 640 acres each.

Chap 20

Question 31

An East-West row of townships is called?

Answer 31

Tier -

An East-West Row of Townships

Chap 20

Question 32

Parcel of land (1 mile x 1 mile) containing 640 acres.

Answer 32

Section -

1. Parcel of land - 1 mile by 1 mile square containing 640 acres.
2. Township has 36 Sections

Partioning of Sections

1/4 Section = 160 Acres

1/4 of 1/4 Section = 40 Acres

1/4 of 1/4 of 1/4 Section = 10 Acres

Chap 20

Question 33

When Writing and Plotting Descriptions

1. Start with smallest parcel and work to largest. Draw left to right (create picture) - is called?
2. Start with largest area and work backwards (right to left) to smallest area (how do you say). - is called?

Answer 33

Writing and Plotting Descriptions -

1. Diagram - Start with smallest parcel and work to largest. Draw left to right (create picture)
2. Description - Start with largest area and work backwards (right to left) to smallest area (how do you say)

Chap 20

Question 34

Corrections -

What is made every __ miles north (up from bottom of state) to re-establish __ mile seperation?

Answer 34

Corrections -

Made every 24 miles north (up from bottom of state) to re-establish 6 mile seperation of range lines.

Chap 20

Question 35

Correction Township

1. Pieces of land distorted to correct for the earth’s curvature.
2. Contains __ standard sections (640 acres each), and __ fractional sections.
3. Corrections Effect - N___ (up) and W___ (left) sides
4. Fractional Sections - 1-_ and 18-__ and 30-__

Answer 35

Correction Township -

1. Pieces of land distorted to correct for the earth’s curvature.
2. Contains 25 standard sections (640 acres each), and 11 fractional sections.
3. Corrections Effect - North (up) and West (left) sides
4. Fractional Sections - 1-7 and 18-19 and 30-31

Chap 20

Question 36

Check

Parcel of land __ miles square (__ x __) and contains __ townships

Answer 36

Check -

Parcel of land which is 24 miles square (24 x 24) and contains 16 townships

Chap 20

Question 38

Corrections affect sections across which sides and what are fractional section numbers?

Answer 38

Fractional Sections for Correction

1. Affects Sections - North (top) and West (left) Sides.
2. Fractional Sections - 1-7, 18-19, 30-31.

Chap 20

Question 39

Conversions for Reference (Memorize):

1. 1 mile = 5,280 feet - 1,760 yards
2. 1 Acre - 43,560 sqft
3. Section = 1 sq mile (5280x5280ft) = 640 acres
4. Township - 6X6 miles square(36sq miles) = 36 Sections
5. Check = 24x24 miles sq (576sq miles) = 16 townships
6. 1 yard = 3 ft
7. 1 sq yard = 9 sqft
8. 1/4 of Section = 640/4 = 160 acres

Answer 39

Conversions for Reference (Memorize):

1. 1 mile = 5,280 feet = 1,760 yards
2. 1 Acre - 43,560 sqft
3. Section = 1 sq mile (5280x5280ft) = 640 acres
4. Township - 6 miles square(36sq miles) = 36 Sections
5. Check = 24X24 miles sq = 16 townships
6. 1 yard = 3 ft
7. 1 sq yard = 9 sqft
8. 1/4 of Section = 640/4 = 160 acres

Chap 20

Question 40

Wastewater that has been treated for re-use

Answer 40

Effluent -

Wastewater that has been treated for re-use

Chap 20

Question 41

What are two categories of water?

Answer 41

Surface and Ground Water -

State regulates surface water rights through Doctrine of Prior Appropriation (first in time - first in right)

Groundwater is located Underground in Large Aquifers

Chap 20

Question 42

These Groundwater Restrictions (2 Types) are covered by what Code?

1. Irrigation Non-Expansion Areas (INA’s)
2. Areas - Irrigation Threatens to Exceed Limited Water Supply
3. Irrigated Acreage - Restricted, but Specific Conservation measures are not required.
4. Active Management Areas (AMA’s)
5. Areas where excessive overdraft occurring, AMA’s in Santa Cruz, Tucson, Pinal, Phoenix, Prescott.
6. Ground Water Rashins: -

• Domestic 25% -
• Agricultural 69% -
• Industrial 6%

Answer 42

Arizona Groundwater Management Code

Groundwater Restrictions - 2 Types -

1. Irrigation Non-Expansion Areas (INA’s)
2. Areas - Irrigation Threatens to Exceed Limited Water Supply
3. Irrigated Acreage - restricted, but Specific Conservation measures are not required.
4. Active Management Areas (AMA’s)
5. Areas where excessive overdraft occurring, AMA’s in Santa Cruz, Tucson, Pinal, Phoenix, Prescott.
6. Ground Water Rashins: -

• Domestic 25% -
• Agricultural 69% -
• Industrial 6%

Chap 20

Question 43

Corrections for Earth’s Curvature -

1. R___ lines converge toward the earth’s poles. They DON’T maintain a __ mile separation.
2. Corrections - Made every 24 miles - N___ from bottom of state to re-establish __ mile separations.

Answer 43

Corrections for Earth’s Curvature -

1. Range lines converge toward the earth’s poles. They DON’T maintain a 6-mile separation.
2. Corrections - Made every 24 miles - North from bottom of state to re-establish 6 mile separations.

Chap 20

Question 44

Corrections for Earth’s Curvature -

• Range Lines - Don’t maintain __ mile seperation towards poles
• Made Every __ miles North from b____ of state to re-establish 6 miles seperation.

Other Info to Remember

C____ - is a parcel 24 miles square (24x24) and contains __ townships

Answer 44

Corrections for Earth’s Curvature -

• Range Lines - Don’t maintain 6 mile seperation towards poles
• Made Every 24 miles north from bottom of state to re-establish 6 miles seperation.

Other Info to Remember

A “check” is a parcel 24 miles square (24x24) and contains 16 townships

Chap 20

Question 45

Assured Water Supply Program - Subdivider/Water Provider (Must demonstrate):

1. Uninteruptable W___ S___ -___ years
2. Water D_____ System - Fin____ Ab____ to Con_____
3. AMA Mgmt Goals / Subdivision Goals - consistant

Answer 45

Assured Water Supply Program - Subdivider/Water Provider (Must demonstrate):

1. Uninteruptable Water Supply- 100 years
2. Water Delivery System - Financial Ability to Construct
3. AMA Mgmt Goals / Subdivision Goals - consistant

Chap 20

Question 46

Rectangular/Government Survey also know as _____?

Method of Land Description based on Survey Lines that run North to South and East to West.

This method is used to describe “Largest Parcels.”

Chap 20

Answer 46

Public Land Survey System (PLSS) - Rectangular- Government Survey

Method of Land Description based on Survey Lines that run North to South and East to West.

This method is used to describe “Largest Parcels.”

Chap 20

Question 47

What Certificate must be issued by ADWR to Subdivider to Assure Water Supply in AMAs?

Answer 47

Assured Water Supply -Certificate of (100 years) -

Must be Issued by ADWR to Subdivider to get a Public Report in AMAs

Chap 20

Question 48

What is a another name for Rectangular/Government Survey?

Answer 48

PLSS_Public Land Survey System -

Another name for Rectangular/Government Survey

Chap 20

Question 49

What is a another name for Rectangular/Government Survey?

Answer 49

PLSS_Public Land Survey System -

Another name for Rectangular/Government Survey

Chap 20

Question 50

Under the Assured Water Supply Program,

1. What must be issued in order to get public report in an AMA,

Answer 50

Assured Water Supply Program (Rpt/Water) -

Public Report Issued - inside an AMA (must obtain):

1. Certificate of Assured Water Supply (100 years) -

must be issued by ADWR to Subdivider to get a public report.

Chap 20

Question 51

Assured Water Supply Program (Rpt/Water) -

Public Report Issued - inside an AMA (must obtain):

Subdivider (Water Provider) must demonstrate:

1. Uninterruptable Water - ___ yrs Supply (Assured Water Supply Cert from ADWR)
2. Water Delivery System - F____ Ab___ to C_____
3. Subdivison Goals - consistent with AMA Mgmt Goals.

Answer 51

Assured Water Supply Program (Rpt/Water) -

Public Report Issued - inside an AMA (must obtain):

Subdivider (Water Provider) must demonstrate:

1. Uninterruptable Water - 100 yrs Supply (Cert of Assured Water Supply from ADWR)
2. Water Delivery System - Financial Ability to Contruct
3. Subdivison Goals - consistent with AMA Mgmt Goals.

Chap 20

Question 52

What is a parcel of land which is 24 miles square (24 x 24) and contains 16 townships?

Answer 52

Check -

Parcel of land which is 24 miles square (24 x 24) and contains 16 townships

Chap 20

Question 53

Section -

1. Parcel of land - __ mile by __ mile square containing ____ acres.
2. Township has 36 Sections

Answer 53

Section -

1. Parcel of land - 1 mile by 1 mile square containing 640 acres.
2. Township has 36 Sections

Partioning of Sections

1/4 Section = 160 Acres

1/4 of 1/4 Section = 40 Acres

1/4 of 1/4 of 1/4 Section = 10 Acres

Chap 20

Question 54

Check -

Parcel of land which is ___ miles square (__ x __) and contains __ townships

Answer 54

Check -

Parcel of land which is 24 miles square (24 x 24) and contains 16 townships

Chap 20

Question 55

Section -

1. Parcel of land - __ mile by __ mile square containing ____ acres.
2. Township has 36 Sections

Answer 55

Section -

1. Parcel of land - 1 mile by 1 mile square containing 640 acres.
2. Township has 36 Sections

Partioning of Sections

1/4 Section = 160 Acres

1/4 of 1/4 Section = 40 Acres

1/4 of 1/4 of 1/4 Section = 10 Acres

Chap 20

Question 56

Aspects of real estate that deals with leasing**, **managing**, **marketing**, and **maintenance of property for others and for a fee.

Answer 56

Property Management -

Aspects of real estate that deals with leasing**, **managing**, **marketing**, and **maintenance of property for others and for a fee.

Chap 19

Question 57

AZ Residential - Landlord and Tenant Act

1. Applies to Rental Dwelling Units.
   * DOES NOT apply to:
2. C____ Prop____
3. H____ and M_____
4. Religious Ser___ H_____
5. School D_______
6. P___ H_______ (Bars)
7. Va___ Rental By O____ (VRBO) - may apply
8. Air B__B____ (Air B&B) - may apply
9. Prohibits Discrimination - Tenant w Child

Answer 57

AZ Residential Landlord and Tenant Act -

1. Applies to rental dwelling units.
   * DOES NOT apply to
2. Commercial Properties
3. Hotels and Motels
4. Religious Service Housing
5. School Dormitories
6. Public Housing (Bars)
7. Vacation Rental By Owner (VRBO) - may apply
8. Air Bed Breakfast (Air B&B) - may apply
9. Prohibits - discrimination Tenant w Child

Chap 19

Question 58

These are obligations for whom under the - Landlord and Tenant Act ?

1. Security Deposit - including prepaid rent - (___ rent max)
2. Refundable (if stated) - Dep___, Cl______, Red______
3. Itemized Stmt - _ _ days of termination - to use security deposit for damages/rent.
4. Landlord Noncompliance - subject to __x security deposit as damages.

Answer 58

(Landlord and Tenant Act)

Landlord Obligations -

1. Security Deposit - including prepaid rent - (1 1/2 rent max)
2. Refundable (if stated) - Deposits, Cleaning, Redecorating
3. Itemized Stmt - 14 days of termination - to use security deposit for damages/rent.
4. Landlord Noncompliance - subject to 2x security deposit as damages.

Chap 19

Question 59

Under Landlord and Tenant Act -

What are Landlord Docs that must be give to tenant?

Name the 3 Items

1. L____ - Signed
2. M___ I_ Form - Tenant List Damages
3. M__-O__ No___ - Written Notice that Tenant May Be Present

Answer 59

(Landlord and Tenant Act)

Landlord docs - must give tenant -

1. Lease - Signed
2. Move-In Form - Tenant list damages
3. Move-Out Notice - Written Notice that Tenant may be present.

Chap 19

Question 60

Under Landlord and Tenant Act what are Landlord Disclosures?

Landlord Must Disclose -

1. Per____ Aut______ to manage property
2. O___ or O____ A_____ - for service process
3. L____ T____ Act - free copy avail through AZ Dept of Housing.

Answer 60

(Landlord ; Tenant Act)

Landlord Must Disclose -

1. Person Authorized to manage property
2. Owner or Owner’s Agent - for service process
3. Landlord Tenant Act - free copy avail through AZ Dept of Housing.

Chap 19

Question 61

Under Landlord and Tenant Act, what are Security Deposit Requirements?

1. Security Deposit - (Including prepaid rent) not to exceed __ of rent.
2. Refundable (if not stated non-refundable) - (3) Dep___, Cl____, Red___
3. Itemized Stmt - (to tenant) _______days from termination.
4. Landlord Noncompliance (landlord damages are) ___x Security Deposit
5. Non-Refundable Fees - Cl__ning and P____ Fees may be required above security deposit

Answer 61

(Landlord and Tenant Act)

Security Deposit Requirements -

1. Security Deposit - (Including prepaid rent) not exceed 1 1/2 rent
2. Refundable (if not stated non-refundable) - Deposits, Cleaning, Redecorating
3. Itemized Stmt - to tenant 14 days of termination - to use security deposit for damages/rent.
4. Landlord Noncompliance - subject to 2x security deposit as damages.
5. Non-refundable Fees - cleaning/pet fee may be required above security deposit

Chap 19

Question 62

Under Landlord Tenant Act, - Landlord compliance

1. Codes: H____, S____, B_____
2. Premises: F___, Hab____ and S____
3. Mech Equip: W___ 0rd____
4. Trash: Have Dum___ and Rem____
5. Water/Air: H___ and C____

Answer 62

(Landlord and Tenant Act)

Landlord Compliance (Conditions) -

1. Health, Safety and Build Codes
2. Premises - Fit, Habitable and Safe
3. Mech Equip - Working Order
4. Trash Have Dumpsters and Removal
5. Water/Air - Hot/Cold

Chap 19

Question 63

Under Landlord and Tenant Act

Tenant’s Obligations

1. Use Premises - S__ Man____
2. Keep Premises - Cl_____
3. Use Mech Equip - I_ R________ Man_____
4. Not Destroy/Deface - Pre_______
5. Rules/Regulations - Fo_______

Answer 63

(Landlord and Tenant Act)

Tenant Obligations -

1. Use Premises - Safe Manner
2. Keep Premises - Clean
3. Use Mech Equip - In Reasonable Manner
4. Not Destroy/Deface - Premises.
5. Rules/Regulations - Follow

Chap 19

Question 64

Under Landlord and Tenant Act

To enter tenant’s premises what are requirements?

1. Notice to Tenant - __ days by Landlord
2. Emergency - N_ N______

Answer 64

(Landlord and Tenant Act)

Entering Tenant’s Premises -

1. Notice to Tenant - 2 days by Landlord
2. If emergency - No Notice

Chap 19

Question 65

(Landlord and Tenant Act)

Non-compliance of Landlord, what are time lines to terminated lease?

1. Breach of Health, Safety Hazard Materials, No Heat, Air, Water - ____ days
2. Misc Breaches - ___ days

Answer 65

(Landlord and Tenant Act)

Non-Compliance of Landlord (Tenant May):

Terminated Lease -

1. 5 days - for breaches health, safety hazard materials, no heat, no air.
2. 10 days - misc breaches

Chap 19

Question 66

(Landlord and Tenant Act)

What may tenant do in regards to repairs?

S___ H___ for M___ D____

1. Written Notice to Landlord - Health/Safety (__ days)/ Misc (__ days).
2. Hire Licensed Contractor - Reasonable Cost - Greater of $____ max or H___ R____ (If Landlord does not promptly repair)

Answer 66

(Landlord and Tenant Act)

Self-Help for Minor Defects -

1. Written Notice - to Landlord to remedy (5days/10days)
2. Hire Licensed Contractor - Reasonable cost - Greater of: $300 max or Half/Rent. (if landlord does not promptly repair minor defects)

Chap 19

Question 67

(Landlord and Tenant Act)

Estate for Period (Indefinite- Month to Month) to terminate?

1. Landlord Notice - ___ day Notice to Terminate.
2. If Tenant Given Notice on March 15 - When must they vacate (with __ day notice)?

Answer 67

(Landlord and Tenant Act)

Estate for Period (Periodic - Indefinite - Mo to Mo)

1. Landlord Notice - 30 day notice to terminate

Example: If Month to Month and landlord gives notice on March 15 tenant must vacate by May 1st. So notice starts on next 1st of month April.

Chap 19

Question 68

(Landlord and Tenant Act)

Tenant fails to pay rent, landlord may begin eviction by doing what?

1. Written Notice T__ P__ - within __ days
2. Civil Courts - File a S____ D____ A_____
3. Hold P_____ P_____ then S____ - Illegal In AZ

Answer 68

(Landlord and Tenant Act)

Tenant fails to pay rent, landlord may begin eviction by

1. Written Notice to Pay - within 5 days
2. Civil Courts - Special Detainer Action
3. Hold Personal Property and then sell - Illegal in az

Chap 19

Question 69

(Landlord and Tenant Act)

If Tenant abandons premises what happens?

1. N____ of A________ - by Cert___ M___ sent to tenant and must (“Posted on Door” - __ days) before enter.
2. P____ Pro____ - held for (___days) after which time landlord may sell property and apply to unpaid balance. Called D_____ - Illegal in Arizona

Answer 69

(Landlord and Tenant Act)

If Tenant abandons premises

1. Notice of Abandonment - by Certified Mail sent to tenant and must (“Posted on Door” - 5 days) before enter.
2. Personal Property - held for (14 days) after which time landlord may sell property and apply to unpaid balance. Distraint - Illegal in Arizona

Chap 19

Question 70

If tenant was victim of domestic violence, what may he do?

Tenant (Domestic Violence Victim) -

May T______ L_____, without P_______

Answer 70

(Landlord and Tenant Act)

Tenant (Domestic Violence Victim) -

May Terminate Lease, without Penalty.

Chap 19

Question 71

(Landlord and Tenant Act)

Term (Word) - for holding tenant’s personal property for back rent is abolished in Arizona

Answer 71

(Landlord and Tenant Act)

Distraint -

Holding tenant’s personal property for back rent is abolished in Arizona

Chapp 19

Question 72

(Landlord and Tenant Act)

What court system deal with disputes of Landlord-Tenant Act?

Answer 72

(Landlord and Tenant Act)

Civil Courts -

handle disputes of Landlord-Tenant Act

Chap 19

Question 73

(Landlord and Tenant Act) These items pertain to what problem?

1. Landlord May Not enter into Lease with Tenant. - If Ex____ B____ I____
2. Landlord Must Provide - B____ Ed___ M_____-
3. Tenant must not move into Apt - M_____ I______ with B_______
4. Bedbugs Found - T____ - must N___ L_____ by W_____ or E______ M___
5. Landlord/Tenant of SFR are Ex____ from P_____ of B____ L___

Answer 73

(Landlord and Tenant Act) Bedbug Control -

1. Existing Bedbug Infestation - Landlord may not enter into lease with tenant.
2. Bedbug Educational Materials - provided by landlord
3. Materials infested with bedbugs - Tenant - shall not move in to apt.
4. Bedbugs Found - Tenant - must Notify Landlord by Written or Electronic Mail
5. Landlord/Tenant of SFR are Excluded from Provisions of BedBug Laws.

Chap 19

Question 74

Aspect of real estate that deals with leasing, managing, marketing, and maintenance of property for others for a fee.

1. Broker (Property Manager)
2. Broker (General Agent) - of owner
3. Must be licensed if he/she handles more than one property.
4. Has fiduciary relationship to owner (CARLOD - compentency, accounting, reasonable care, loyalty, obedience, disclosure)
5. Agent represents broker.

Answer 74

Property Management -

Aspect of real estate that deals with leasing, managing, marketing, and maintenance of property for others for a fee.

1. Broker (Property Manager)
2. Broker (General Agent) - of owner
3. Must be licensed if he/she handles more than one property.
4. Has fiduciary relationship to owner (CARLOD - compentency, accounting, reasonable care, loyalty, obedience, disclosure)
5. Agent represents broker.

Chap 19

Question 75

These people are concerned with getting the highest net return on the owner’s investment and protecting owner from foreseeable risk.

Duties Include:

1. Lease Units 6. Advertising
2. Vacancies 7. Reports to Owners
3. Collect Rents 8. Supplies
4. Keeping Accounts 9. Hire Employees
5. Maintenace 10. Remodeling

Recommendations for:

1. Liability & Fire Insurance
2. Workman’s Comp Insurance

Answer 75

Property Managers -

Are concerned with getting the highest net return on the owner’s investment and protecting owner from foreseeable risk.

Duties Include:

1. Lease Units 6. Advertising
2. Vacancies 7. Reports to Owners
3. Collect Rents 8. Supplies
4. Keeping Accounts 9. Hire Employees
5. Maintenace 10. Remodeling

Recommendations for:

1. Liability & Fire Insurance
2. Workman’s Comp Insurance

Question 76

Under AZ Law, Property Mgmt Agmts shall state:

1. P_______ Mgmt S____ - Terms/Conditions
2. Ob____, D_____ and Resp________
3. Signed: by O____ and D______ Br_____
4. B____ and T________ Dates
5. Can________ Pro_____________
6. Requirement for Disposition of M____ C______.
7. S_____ Reports - Specify ty__ and fr_______
8. Op______ R______ - state amount/purpose held for emergencies
9. T____ Acct - Disposition/Allocation interest earned (remove every 12 months)
10. Com_______ - state terms/conditions per owner
11. No As________ - without owners consent.

Answer 76

Under AZ Law -

Property Management Agreements shall state:

1. Property Mgmt Services - Terms/Conditions
2. Obligations, Duties and Responsibilities
3. Signed: by Owner and Designated Broker
4. Begin/Termination Date
5. Cancellation Provisions
6. Requirement for disposition of monies collected.
7. Status Reports - Specify type and frequency
8. Operating Reserve - state amount/purpose held for emergencies
9. Trust Acct - Disposition/Allocation interest earned (remove every 12 months)
10. Compensation - state terms/conditions per owner
11. No Assignment - without owners consent.

Chap 19

Question 77

These items refer to:

1. All pro_____ mgmt ac______ shall be designated as trust accounts.
2. Designated Broker, Agents, Employees may sign checks, but OWNER MAY NOT SIGN!

Answer 77

Property Management Accounts

1. All property management accounts shall be designated as trust accounts.
2. Designated Broker, Agents, Employees may sign checks, but OWNER MAY NOT SIGN!

Chap 19

Question 78

Property Management (Record Keeping)

1. Residential Property:
2. Leases/Finder Fee - (_ yr) after termination
3. Financial - (__ yrs)
4. Commercial Properties - (__ years)
5. Property Mgmt Agmts - Terminated - To Owner in:
6. (5 days) - Security Deposit List
7. (35 days) - reimbursement all monies in accounts
8. (75 days) - final accounts receivable/payable list
9. (75 days) - final bank account reconciliation

Answer 78

Property Management (Record Keeping)

1. Residential Property:
2. Leases/Finder Fee - (1 year) after termination
3. Financial - (3 years)
4. Commercial Poperties - (5 years)
5. Property Mgmt Agmts - Terminated - Give owner in;
6. (5 days) - Security Deposit List
7. (35 days) - reimbursement all monies in accounts
8. (75 days) - final accounts receivable/payable list
9. (75 days) - final bank account reconciliation

Chap 19

Question 79

Findeers Fee Payments may be paid to an unlicensed person who is a tenant in a apartment complex.

Must be:

1. R___ Cr_____
2. R___ R________
3. C____t be C____

Answer 79

Finders Fee Payments to Tenants

Finder Fees may be paid to an unlicensed person who is a tenant in a apartment complex.

Must be:

1. Rent Credit
2. Rent Reduction
3. Cannot be Cash

Chap 19

Question 80

These are Property Management Situations that are Legal or Illegal?

1. Agent/Associate Broker acting outside of brokerage as management.
2. Unlicensed person providing property management services, to more that one property.

Answer 80

Illegal Property Management Situations -

1. Agent/Associate Broker acting outside of brokerage as management.
2. Unlicensed person providing property management services, illegal if handling more than one property.

Chap 19

Question 81

A real estate development which includes real estate owned by an association created for purpose of the following is called?

1. Prop____ Du_____ - Managing, Maintaining, and Improving.
2. Sep_____O_____ Par___ - Owners Manda____ Members and are required to pay A______ Assessments.
3. Resale - __ days written notice of pending sale and deliver docs to purchaser if
   
   1. Under 50 units - S_____ Provides
   2. 50 units or more - Ass_____ Provides

Answer 81

Planned Community -

A real estate development which includes real estate owned by an association created for purpose of

1. Property Duties - Managing, Maintaining, and Improving.
2. Separate Owned Parcels - Owners Mandatory Members and are required to pay association assessments.
3. Resale - 10 days written noitce of pending sale and deliver docs to purchaser,if
   
   1. Under 50 units - Seller Provides
   2. 50 units or more - Association Provides

Chap 19

Question 82

Resale Units - Planned Community

Written Notice of Pending Sale - (__days) Buyer must receive:

1. By-L____ and Ass____ Rules
2. Dec_______ - of Planned Community
3. Name - Pri_____ Con_____ of Association
4. Association Ass_______ - Amount
5. Ins______ Stmt - Partial Coverage paid by Assoc
6. R_______ - Total Monies Held
7. Op_____ Bu_____/F_______ Rep___ - Current Copy
8. Alt______/Im_________ - In Violation
9. Lit_____ P_______ - On Unit to Owner or Association

• 1-49 units - Seller must provide
• 50+ units - Association must provide info. Board meets Annually - Complies with Open Mtg Laws

Answer 82

Resale Units - Planned Community

Written Notice of Pending Sale - (10days) Buyer must receive:

1. By-Laws and Association Rules
2. Declaration - of Planned Community
3. Name - Principal Contact of Association
4. Association Assessment - Amount
5. Insurance Stmt - Partial Coverage paid by Assoc
6. Reserves - Total Monies Held
7. Operating Budget/Financial Reports - Current Copy
8. Alterations/Improvements - In Violation
9. Litigation Pending - On Unit to Owner or Association

• 1-49 units - Seller must provide
• 50+ units - Association must provide info. Board meets Annually - Complies with Open Mtg Laws

Chap 19

Question 83

This person concerned with getting highest return on owner’s investment and protecting the owner from foreseeable risk.

Answer 83

Property Manager -

This person concerned with getting highest return on owner’s investment and protecting the owner from foreseeable risk.

Chap 19

Question 84

This document must state all “material terms, regarding

1. Services, Obligations, and Duties.
2. Signed by Owner and Broker,
3. Begin and End dates,
4. Cancellations Provisions,
5. Conditions of Compensation
6. Frequency of Status Reports,
7. Deposition of all Monies,
8. Operating Reserves,
9. Trust Account - Interest Earned
10. Not assigned to Another without Consent

Answer 84

Property Mgmt Agreement -

This document must state all “material terms, regarding

1. Services, Obligations, and Duties.
2. Signed by Owner and Broker,
3. Begin and End dates,
4. Cancellations Provisions,
5. Conditions of Compensation
6. Frequency of Status Reports,
7. Deposition of all Monies,
8. Operating Reserves,
9. Trust Account - Interest Earned
10. Not assigned to Another without Consent

Chap 19

Question 85

What are first 5 material terms of the Property Management Agreement?

Hint: Signed Service Begins or Cancelled Compensation

1. Ser____, Ob_____, and Du____.
2. Signed by O___ and B_____,
3. B____ and E__ dates,
4. Can_______ Pro_______,
5. Conditions of Com___________

Answer 85

Property Management Agreement (Terms) -

First 5 out of 10

1. Services, Obligations, and Duties.
2. Signed by Owner and Broker,
3. Begin and End dates,
4. Cancellations Provisions,
5. Conditions of Compensation

Hint: Signed Service Begins or Cancelled Compensation

Chap 19

Question 86

What are the last 5 conditions of Property Management Agreement?

Hint: Status and Disposition Of Trust &Non Consent

1. St___ Rep____ - F______ and Ty_____
2. Disp_____ of all M______ C_______,
3. Op______ R_______ - For emergencies and other purposes
4. Tr_____ Account - Disposition/Allocation of In____ E______
5. N___ Ass______ - To another Licensee without Consent

Answer 86

Property Management Agreement

Terms 6-10

1. Status Reports - Frequency and Type
2. Disposition of all Monies Collected,
3. Operating Reserves - for emergencies and other purposes,
4. Trust Account - Disposition/Allocation of Interest Earned
5. Not assigned - To Another Licensee without Consent

Hint: Status and Disposition Of Trust & Non Consent

Question 87

If a landlord and tenant enter into a lease agreement for a single family residence, what are the bedbug provisions?

Answer 87

SFR Single Family Residence (Bedbugs)

Excluded from Bedbug Laws

Chap 19

Question 88

What are the Property Managers first 5 of 10 Duties?

1. L___s_ U___ 6. Advertising
2. V_______ 7. Reports to Owners
3. C____ R____ 8. Supplies
4. Keep A_______ 9. Hire Employees
5. M________ 10. Remodeling

Answer 88

Property Manager (Duties) -

First 5 of 10

1. Lease Units 6. Advertising
2. Vacancies 7. Reports to Owners
3. Collect Rents 8. Supplies
4. Keeping Accounts 9. Hire Employees
5. Maintenace 10. Remodeling

Chap 19

Question 89

What are the Property Managers, last 5 of 10 duties?

1. Lease Units 6. Adv________
2. Vacancies 7. Rep____ to Owners
3. Collect Rents 8. Sup_____
4. Keeping Accounts 9. H___ E_________
5. Maintenace 10. Remo________

Answer 89

Property Manager (Duties) -

Last 5 of 10

1. Lease Units 6. Advertising
2. Vacancies 7. Reports to Owners
3. Collect Rents 8. Supplies
4. Keeping Accounts 9. Hire Employees
5. Maintenace 10. Remodeling

Chap 19

Question 90

Who are the Property Management (Parties)

1. Property Owner is an Inv______ who employs broker.
2. Broker (Prop Mgr) is the G_____ A____ of the owner
3. Broker has F_____ Relationship towards property owner
4. The Salesperson represents B______.

Answer 90

Property Management (Parties) -

1. Property Owner is Investor who employs broker.
2. Broker (Prop Mgr) is the General Agent of the owner
3. Broker has Fiduciary Relationship towards property owner
4. The Salesperson represents Broker

Chap 19

Question 91

Property Management Agrmt (Terminated) -

Brokerage Must Give Owner -

1. Security Deposits List - ___ Days
2. Prop Mgmt Acct Monies - ___ Days
3. Accts Rec/Pay - ___ Days
4. Bank Acct Reconciliation ___ Days

Answer 91

Property Management Agrmt (Terminated) -

Brokerage Must Give Owner -

1. Security Deposits List - 5 Days
2. Prop Mgmt Acct Monies - 35 Days
3. Accts Rec/Pay - 75 Days
4. Bank Acct Reconciliation - 75 Days

Chap 19

Question 92

Property Management Records for leases/finder fees and financials held for how long?

1. Leases/Finder Fee - ___year after terminated
2. Financial - __ years

Answer 92

Property Management Records for leases/finder fees and financials -

1. Leases/Finder Fee - 1 year after terminated
2. Financial - 3 years

Chap 19

Question 93

Property Management (Record Keeping)

1. Property Mgmt Agmts - Terminated - To Owner in:
2. (__days) - Security Deposit (List)
3. (__ days) - Reimbursement All Monies in Accounts
4. (__ days) - Final Accounts Receivable/Payable list
5. (__ days) - Final Bank Account Reconciliation

Answer 93

Property Management (Record Keeping)

1. Property Mgmt Agmts - Terminated - Give owner in;
2. (5 days) - Security Deposit (List)
3. (35 days) - Reimbursement All Monies in Accounts
4. (75 days) - Final Accounts Receivable/Payable list
5. (75 days) - Final Bank Account Reconciliation

Chap 19

Question 94

A real estate development - which includes real estate owned by an association created for purpose of “managing, maintaining or improving property,” and which “owners of seperately owned parcels” are “mandatory members” and “required to pay association assessments.”

Answer 94

Planned Community -

A real estate development - which includes real estate owned by an association created for purpose of “managing, maintaining or improving property,” and which “owners of seperately owned parcels” are “mandatory members” and “required to pay association assessments.

Chap 19

Question 95

Means “According to Value”

Answer 95

Ad Valorem -

Means according to value

Chap 18

Question 96

A claim against property to secure a debt; money encumbrance.

Answer 96

Lien -

A claim against property to secure a debt; money encumbrance.

Chap 18

Question 97

What type of liens have 1st priority over all other liens. They include Full Cash Values, Limited Values, Deliquent Tax Liens, Community Facilities Districts, and Special Assessments.

Answer 97

Real Estate Tax Liens -

Have 1st priority over all other liens. They include Full Cash Values, Limited Values, Deliquent Tax Liens, Community Facilities Districts, and Special Assessments.

Chap 18

Question 98

In Relation to Real Estate Taxes what property value does this process represent?

1. Establish (Jan 1st) - for next year,
2. Owner Notified by Mail - of F__ C___ V___ and Assessed Value (LPV x AV Ratio)

Answer 98

Full Cash Value (FCV/Assessed Value) -

1. Establish (Jan 1st) - for next year,
2. Owner Notified by Mail** - of **Full Cash Value** and **Assessed Value (LPV x AV Ratio)

Chap 18

Question 99

All real estate taxes are calculated on this tax basis.

1. _____ cannot exceed FCV
2. Any increase - limited to 5% of previous year’s ____

Answer 99

Limited Property Value (LPV) -

All real estate taxes are based on this tax basis.

1. LPV cannot exceed FCV (Full Cash Value)
2. Any increase - limited to 5% of Previous Year’s LPV

Chap 18

Question 100

This is formula for what?

• Limited Property Value
• x Assessed Value Ratio
• = What

Answer 100

Assessed Value Formula

• Limited Property Value
• x Assessed Value Ratio
• = Assessed Value
• • Assessed Value Ratios are
• 18% - Commercial (Class 1)
• 15% - Vacant Land (Class 2)
• 10% - Own Occupied Resiential (class 3)
• 10% - Residential Income (class 4)

Question 101

Set by State law what are the “Assesed Value Ratios” ratios for?

1. Commercial (class 1) - ___%
2. Vacant Land (class 2) - ___%
3. Res/Own Occ (class 3) - ___%
4. Res/Income Prop (class 4 ) - ___%
5. Note: Class 4 - Files what?

Answer 101

Assessed Value Ratio (Set by State) -

1. Commercial (class 1) - 18%
2. Vacant Land (class 2) - 15%
3. Res/Own Occ (class 3) - 10%
4. Res/Income Prop (class 4 ) - 10%
5. Note: Class 4 -

Files “Residential Rental Prop Registration form”

Chap 18

Question 102

What is “Set by Local Government” as a portion of Assessed Value?

Usually stated as Amount per $100 of assessed value, also as mills (one thousandth per dollar = .001)

ex: $18 per $100 t___ r___ with limited value of $10,000

• 18/100 = .18 or 180 mills/1000 =.18
• 10,000 x .18 = $1800 Property Taxes

Answer 102

Tax Rate (set by local government) -

Usually stated as Amount per $100 of assessed value, also as mills (one thousandth per dollar = .001)

ex: $18 per $100 tax rate with limited value of $10,000

• 18/100 = .18 or 180 mills/1000 =.18
• 10,000 x .18 = $1800 Property Taxes

Chap 18

Question 103

What does this describe?

Once property taxes are deliquent, a treasurer’s sale is conducted, and owner is given a 3 year redemption period. When no redemption takes place, the Certificate of Puchase holder has Judicial Foreclosure where a Treasurer’s Deed is obtained.

Answer 103

Delinquent Tax Lien Sale and Foreclosure

Once property taxes are deliquent, a treasurer’s sale is conducted, and owner is given a 3 year redemption period. When no redemption takes place, the Certificate of Puchase holder has Judicial Foreclosure where a Treasurer’s Deed is obtained.

Chap 18

Question 104

C_________ Fac______ Dis_______

Special taxing districts formed to finance (through bonds) the aquisition, construction, operation, maintenance of public infrastructures in planned community.

• The owner is charged on property tax bill
• (special taxing for public planned community infrastructures):

Answer 104

Community Facilities District (CFD) -

Special taxing districts formed to finance (through bonds) the aquisition, construction, operation, maintenance of public infrastructures in planned community.

• The owner is charged on property tax bill
• (special taxing for planned community infrastructures)

Chap 18

Question 105

How are taxes paid (prepaid or arrears) and how often?

1. Jan-June (1st half) -

• Due: _____
• Late: _____ (30 days)

1. July-Dec (2nd half) -

• Due: _____ next year
• Late: _____ (60 days)

Hint: Owe No More Money (Oct, Nov, Mar, May)

Answer 105

Taxes paid in “arrears” (semi-annually) -

1. Jan-June (1st half) - Due: 10-01 current year
   * Late: 11-01 (30 days)
2. July-Dec (2nd half) - Due: 03-01 next year
   * Late: 05-01 (60 days)

Hint: Owe No More Money (Oct, Nov, Mar, May)

Chap 18

Question 106

Lien against property for specific public improvements.

(Paving, sewers, sidewalks, etc)

Answer 106

Special Assessments Lien -

Lien against property for specific public improvements. (Paving, sewers, sidewalks, etc). Levied on front foot basis.

Chap 18

Question 107

These items pertain to what type of lien?

1. Subordinate Status - to First Mortgage, Deed of Trust, Agreement of Sales Liens
2. Foreclose - If unpaid over 1yr /$1200 or more due.
3. Foreclosure - Judicially

Answer 107

HOA Assessment Liens -

1. Subordinate Status - to First Mortgage, Deed of Trust, Agreement of Sales Liens
2. Foreclose - If unpaid over 1yr /$1200 or more due.
3. Foreclosure - Judicially

Chap 18

Question 108

These general liens are called?

1. Priority established when recorded
2. Renewed - Every 10 years
3. Writ of Execution - Levy/Attachment
4. Revealed by:

• Title Report
• County Recorder’s Records
• Credit Report

Answer 108

Judgements (Court Ordered) General Liens -

1. Priority established when recorded
2. Renewed - Every 10 years
3. Writ of Execution - Levy/Attachment
4. Revealed by:

• Title Report
• County Recorder’s Records
• Credit Report

Chap 18

Question 109

These general liens are called?

Claims placed by IRS or AZ Gov on all property both real and personal

1. Priority established when recorded.
2. No special priority over recorded liens.

Answer 109

Income - Tax Liens (General Liens) -

Claims placed by IRS or AZ Gov on all property both real and personal

1. Priority established when recorded.
2. No special priority over recorded liens.

Chap 18

Question 110

This exempts a portion of a homeowner’s equity from attachment and execution of a forced sale due to (non-payment of judgment).Max $150,000 - Home, Condo, Mobile Home. In AZ automatic, no recording.

No Forced Sale Protection -

1. Mortgage/Trust Deed
2. Land Contract
3. Property Taxes
4. Assessments
5. Mechanic’s liens

Answer 110

Homestead Exemption

This exempts a portion of a homeowner’s equity from attachment/execution of a forced sale due to (non-payment of judgment). Max $150,000 - Home, Condo, Mobile Homes. In AZ automatic no recording.

No Forced Sale Protection - (May Lord Protect All Matter)

1. Mortgage/Trust Deed
2. Land Contract
3. Property Taxes
4. Assessments
5. Mechanic’s liens

Chap 18

Question 111

What has #1 priority over all liens

Answer 111

Real Estate Property Taxes

#1 priority over all liens

Chap 18

Question 112

A percentage of the property’s fair market value, set by state law.

Answer 112

Assessed Value Ratios -

A percentage of the property’s fair market value, set by state law.

• Commercial (Class 1) - 18%
• Vacant (Class 2) - 15%
• Res Own_Occupied (Class 3) - 10%
• Res Income (Class 4) - 10%
  
  • Res Rental Prop Registration (Assessors)

Chap 18

Question 113

At this sale, treasurer holds tax lien auction live or online and issues “Certificate of Purchase” to highest bidder. Owner has (3 year redemption period).

Answer 113

Treasurer’s Sale -

Treasurer holds tax lien auction live or online and issues “Certificate of Purchase” to highest bidder. Owner has (3 year redemption period).

Chap 18

Question 114

Received by highest bidder at tax lien auctions (Treasurer’s Sale).

Answer 114

Certificate of Purchase -

Received by highest bidder at tax lien auctions (Treasurer’s Sale).

Chap 18

Question 115

After Treasurer’s Sale, 3 year Redemption period, and Judicial Foreclosure, how is title conveyed to highest bidder

Answer 115

Treasurer’s Deed -

Title is conveyed after Treasurer’s Sale, 3 year Redemption period, and Judicial Foreclosure to highest bidder.

Chap 18

Question 116

On deliquent tax liens that have gone to auction, what is the redemption period?

Answer 116

3 Year Redemption Period -

Afater Treasurer’s Sale and the Cert of Purchase is issued to highest bidder. Owner has 3 years to redeem by paying all due plus interest on certificate.

Chap 18

Question 117

LPV (LImited Prop Value) may not increase more that ___% annually.

Answer 117

LPV (LImited Prop Value) -

Max increase per year is 5%

Chap 18

Question 118

To record a deed what is also needed and shows sales price.

Answer 118

Affidavit of Value -

Shows Sales price, and must be recorded with Deed

Chap 18

Question 119

If Owners Full Cash Value is too high, who can they appeal too?

Owners (FCV to High) - Appeals: -the A________; then S___Board of E______ (SBOE); then T__ C______

New Constructions (Sept):

1. “Supplemental Notice of Value” - to Owner in Sept
2. Owner - Appeal - in __ days - to S____ Board of E______ (SBOE)
3. May Revalue - as (Partial Complete)

Answer 119

Full Cash Value Appeals Process (25)-

Owners (FCV to High) - Appeals: -Assessor, then State Board of Equalization (SBOE); then Tax Court

New Constructions (Sept):

1. “Supplemental Notice of Value” - to Owner in Sept
2. Owner - Appeal - in 25 days - to State Board of Equalization (SBOE)
3. May Revalue - as (Partial Complete)

Chap 18

Question 120

1st Half of taxes (Jan-June) - Due Dates

1. Jan-June (1st half) -

• Due:
• Late:

Hint: Owe No More Money (Oct, Nov, Mar, May)

Answer 120

1st Half of taxes (Jan-June) - Due Dates

1. Jan-June (1st half) -

• Due: 10-01
• Late: 11-01 (30 days)

Hint: Owe No More Money (Oct, Nov, Mar, May)

Chap 18

Question 121

These are due dates for what?

1. Jan-June (1st half) - Due: 10-01
   
   1. Late: 11-01 (30 days)
2. July-Dec (2nd half) - Due: 03-01 next year
   
   1. Late: 05-01 (60 days)

Hint: Owe No More Money (Oct, Nov, Mar, May)

Answer 121

Property Taxes - paid in arrears (semi-annually) -

1. Jan-June (1st half) - Due: 10-01
   
   1. Late: 11-01 (30 days)
2. July-Dec (2nd half) - Due: 03-01 next year
   
   1. Late: 05-01 (60 days)

Hint: Owe No More Money (Oct, Nov, Mar, May)

Chap 18

Question 122

2nd Half of Taxes Due Dates:

1. July-Dec (2nd half) -

• Due (Next Yr):
• Late (Next Yr):

Hint: Owe No More Money (Oct, Nov, Mar, May)

Answer 122

2nd Half of Taxes Due Dates:

1. July-Dec (2nd half) -

• Due (Next Yr): 03-01 next year
• Late (Next Yr): 05-01 (60 days)

Hint: Owe No More Money (Oct, Nov, Mar, May)

Chap 18

Question 123

What type of Lien is for labor or material supplied to property?

1. Licensed Contractor Only - records lien
2. Lien Priority - Date work begins

Answer 123

Mechanic’s Lien -

Lien for “labor or materials” supplied to property.

1. Licensed Contractor Only - records lien
2. Lien Priority - Date work begins

Chap 18

Question 124

How much time do you have to Foreclose on a Mechanics Lien?

Answer 124

Foreclose on Mechanic’s Lien

1. Foreclose in 6mos (180dys) - foreclose from 6 mos (180dys) of recording lien.

Chap 18

Question 125

During the Mechanic’s Lien process…

What must Contractor/Material Supplier must deliver to property owner in 20 days of work start?

Answer 125

Mechanic’s Lien

1. Preliminary Lien Notice - Contractor/Material Supplier must deliver to property owner in 20 days of work start date.

Chap 18

Question 126

When must Mechanics Lien be filed upon completion of work?

Answer 126

Mechanic’s Lien

1. Mechanic’s Lien - Record 120 days of Completion - both orig/sub-contractor must record

Chap 18

Question 127

A Mechanic’s Lien Priority is based on what?

Answer 127

Mechanic’s Lien - Lien Priority -

1. Lien Priority - Date work begins

Chap 18

Question 128

If a Lessee orders work to be done in his apartment,the lien belongs to whom?

Answer 128

Work order by Lessee of Apt -

1. Lessee Work Order - Lien on Lessee.

Chap 18

Question 129

C_________ Fac______ Dis_______

Special taxing districts formed to finance (through bonds) the aq______, con______, oper______, main______ of public infrastructures in planned community.

• The owner is charged on property tax bill
• (special taxing for public planned community infrastructures):

Answer 129

Community Facilities District (CFD) -

Special taxing districts formed to finance (through bonds) the aquisition, construction, operation, maintenance of public infrastructures in planned community.

• The owner is charged on property tax bill
• (special taxing for planned community infrastructures)

Chap 18

Question 130

During Redemption period (Tax Liens), what must owner pay and to whom?

1. 3 yrs Redemption - Owner to pay B_____ due plus I_______
2. Paid to - C___ of Pur____ Holder

Answer 130

During Redemption period (Tax Liens), what must owner pay and to whom?

1. 3 yrs Redemption - Owner to pay balance due plus interest
2. Paid to - Certificate of Purchase Holder

Chap 18

Question 131

Delinquent Tax Lien

1. Delinquent Tax Lien - Interest accrues at __% a year

Answer 131

Delinquent Tax Lien Sale and Foreclosure

1. Delinquent Tax Lien - Interest accrues at 16% a year

Chap 18

Question 132

If No Redemption in 3 years (Tax Lien)?

1. If No Redemption -

• Foreclose (Judicial) - Within ___ yrs from Cert of Purchase Issuance
• Allow Interest to Accrue on deliquent taxes
• Owner Notified - ___ days “before foreclosure action” by certified mail.

Answer 132

Tax Liens - If No Redemption in 3 years -

1. If No Redemption -

• Foreclose (Judicial) - Within 10 yrs from Cert of Purchase Issuance
• Allow Interest to Accrue on deliquent taxes
• Owner Notified - 30 days “before foreclosure action” by certified mail.
• Treasurer’s Deed - Acquired at Foreclose Judicial Action

Chap 18

Question 133

If No Redemption (Tax Lien) - when can you foreclose?

Foreclosure (If No Redemption)

• Foreclose (Judicial) - Within ___yrs from Cert of Purchase Issuance
• Allow Interest to Accrue on deliquent taxes

Answer 133

If No Redemption (Tax Lien) - when can you foreclose?

Foreclosure (If No Redemption)

• Foreclose (Judicial) - Within 10 yrs from Cert of Purchase Issuance
• Allow Interest to Accrue on deliquent taxes

Chap 18

Question 134

Upon Foreclosure of Tax Lien, is owner notified?

1. If No Redemption -

• Owner Notified - ____ days “before foreclosure action” by C_____ M___.
• Treasurer’s Deed - Acquired at Foreclose Judicial Action

Answer 134

Foreclosure of Tax Lien - Owner Notification

1. If No Redemption -

• Owner Notified - 30 days “before foreclosure action” by Certified Mail.
• Treasurer’s Deed - Acquired at Foreclose Judicial Action

Chap 18

Question 135

Failure to comply with any terms of the note or mortgage

Answer 135

Default -

Failure to comply with any terms of the note or mortgage

Chap 17

Question 136

Lien placed on property with owner’s consent are called?

Three (3) types of liens are

1. Mortgagees, Trust Deeds, and Agreements of Sale.
2. All three hypothecate real estate as security for debt.

Answer 136

Voluntary Liens -

Lien placed on property with owner’s consent.

Three (3) types of liens are

1. Mortgagees, Trust Deeds, and Agreements of Sale.
2. All three hypothecate real estate as security for debt.

Chap 17

Question 137

A pledge of real property as security without giving possession of property to lender.

Answer 137

Hypothecation -

A pledge of real property as security without giving possession of property to lender.

Note: Promissory Note (Chap 6) - Personal Promise to repay a debt. Serves as evidence of debt, but does not reference collateral.

Chap 17

Question 138

Mortage Default Process, what are 6 steps?

1. E___ of R______ - Borrower holds
2. L__ P______ (Lawsuit) - recorded
3. C____ Ac___ - takes place
4. S____’s S_____ - Highest Bidder received S____’s C____ of Sale
5. Stat____ Ri___ of Redem____ - For __ months begins
6. If N_ R______ - S_____’s Deed issued to certificate bidder

Answer 138

Mortgage Default Process (Judicial Foreclosure)

1. Equity of Redemption - borrower holds
2. Lis Pendens (Lawsuit) - recorded
3. Court Action - takes place
4. Sheriff’s Sale - Highest Bidder received Sheriff’s Certificate of Sale
5. Statutory Right of Redemption - For 6 mos begins
6. No Redemption - Sheriff’s Deed issued to bidder

Chap 17

Question 139

Mortgage Sheriff’s Sale - Biddng

1. Ex___ M___ Bid - Excess funds belong to borrower (minus foreclosure cost)
2. N_ B___ - Lender bids and receives S_____’s C_____ of S_____
3. Insu_______ M____ B___ – Deficiency Judgment is obtained by lender when sale brings less than amt owed.

Answer 139

Mortgage Sheriff’s Sale - Bidding

1. Excess Money Bid - Excess funds belong to borrower (minus foreclosure cost)
2. No Bids - Lender bids and receives Sheriff’s Certificate of Sale
3. Insufficient Money Bid – Deficiency Judgment is obtained by the lender when sale brings less than amt owed.

Remember: Arizona law prohibits (Deficiency Judgment) on 2.5 acres or less or used as sfr)

Chap 17

Question 140

T____ D____ds -

1. Promissory Note - promise to repay debt (amount, rate, pattern of payments - no collateral reference)
2. Trust Deed - Secures note with collateral/property
3. Trustor/Borrower; Beneficiary/Lender; Trustee/3rd Party with power to sell
4. Trustee acts by Beneficiary instructions, and only when Trust Deed is paid-off or in default.
5. Defeasance (Pay-off) - Deed of Reconveyance releases you from Deed of Trust; Beneficiary lender instructs Trustee to send - 30 days of payoff.

Answer 140

Trust Deeds -

1. Promissory Note - promise to repay debt (amount, rate, pattern of payments - no collateral reference)
2. Trust Deed - Secures note with collateral/property
3. Trustor/Borrower; Beneficiary/Lender; Trustee/3rd Party with power to sell
4. Trustee acts by Beneficiary instructions, and only when Trust Deed is paid-off or in default.
5. Defeasance (Pay-off) - Deed of Reconveyance releases you from Deed of Trust; Beneficiary lender instructs Trustee to send - 30 days of payoff.

Chap 17

Question 141

Non-Judicial (Trustee’s Power of Sale)

1. Tr___ Instructed to S___ - Per Benificiary-Lender
2. Not__ of Def___ and Tru__ S___ - recorded by Trustee (County Recorder Office)
3. N___ to Tr___/Borrower: Trustee sends “Notice of Default and Trustee Sale” to Tr____ and anyone who recorded “Request for Notice of Default.
4. R____ of Rein________ - Trustor/Borrower may cure default by paying back balance due and (cost/penalties) at anytime before sale in (___ days)
5. Tr_____ Sale held - After 90 days Right of Reinstatement period. Sale held and T____ Deed - to highest bidder.
6. Tr____ D_____ - given to highest bidder.

Def_____ J_______ prohibited - 2 1/2 acres or less (SFR/2Units)-

Answer 141

Trust Deed in Default (Non Judicial Foreclosure)

Non-Judicial (Trustee’s Power of Sale)

1. Trustee Instructed to Sell - Per Benificiary-Lender
2. Notice of Default and Trustee Sale - recorded by Trustee (County Recorder Office)
3. Notice to Trustor/Borrower**: Trustee sends “Notice of Default and Trustee Sale” **to trustor and anyone who recorded “Request for Notice of Default.
4. Right of Reinstatement - Trustor/Borrower may cure default by payng back balance due and (cost/penalties) at anytime before sale in (90 days)
5. Trustee Sale held - After 90 days Right of Reinstatement period. Sale held and Trustee Deed - to highest bidder.
6. Trustee Deed - given to highest bidder

Deficiency Judgement prohibited - 2 1/2 acres or less (SFR/2Units)

Chap 17

Question 142

Agreement for Sale is also know as?

1) Contract for S___ of R___ Es___\_; 2) L___ Con____; 3) C_____ for D___\_; 4) V_____’s L____

Entails the following:

1) A Contract for Sale of Property and financing instrument - all in one. 2) Deed is not delivered at closing as with a mortgage/trust deed. 3) At closing buyer should “record” contract to show “equitable title.” 4) Seller usually delivers deed to buyer after final payment.

Answer 142

Agreement for Sale also known as:

1) Contract for Sale of Real Estate; 2) Land Contract; 3) Contract for Deed; 4) Vendor’s Lien

This type of contract entails the following:

1) A Contract for Sale of Property and financing instrument - all in one. 2) Deed is not delivered at closing as with a mortgage/trust deed. 3) At closing buyer should “record” contract to show “equitable title.” 4) Seller usually delivers deed to buyer after final payment.

Chap 17

Question 143

Agmt for S___ aka C___ for S___ of R__ Es___, aka L___ C____, C____ for D___, and V_____ Lien

1. Agreement used as S___ Fin______ (contract/financing all in one)
2. Vend__/Seller and Vend__/Buyer
3. At Closing: Buyer records contract to show ownership with no deed (Eq___ Ownership)

Remember Or Gives and EE receives

Answer 143

Agreement for Sale (Contract for Sale of Real Estate, Land Contract, Contract for Deed, and Vendor’s Lien)

1. Agreement used as Seller Financing (contract financing all in one)
2. Vendor/Seller and Vendee/Buyer
3. At Closing: Buyer records contract to show ownership with no deed (Equitable Ownership)

Remember Or Gives and EE receives - Vendor gives financing to Vendee (Buyer)

Chap 17

Question 144

L___ C_____ Default Process: (Agmt of S____, C___ for S___ of R__ E___, aka L___ C____, aka C___ for D____, V____’s L___)

Option #2 - Forfeiture Action

1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.

• 1-19% (19pts) - 30 days - single
• 20%-29% (9pts) - 60 days - double
• 30%-49% (9pts) - 120 days - double
• 50%-more (50pts)- 9 mos - max

2. Grace Period Expires - Complete Forfeiture Action

Option #1 - Judicial Forclosure - Accelertion Clause - exercised foreclose as mortgage.

1. Equity of Redemption - Held by Borrower
2. Lawsuit (Lis Pendens) - recorded
3. Court Action - takes place
4. Sheriff’s Sale - Highest Bid (Sheriff’s Certificate of Sale)
5. Statutory Right of Redemption - 6 mos begins
6. No Redemption - Sheriff’s Deed issued

Answer 144

Land Contract Default Process (2 options): (Agreement of Sale aka Contract for Sale of Real Estate, aka Land Contract, aka Contract for Deed, aka Vendor’s Lien)

Option #2 - Forfeiture Action (Opt 1 Jud Foreclose)

1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.

• 1-19% (19pts) - 30 days - single
• 20%-29% (9pts) - 60 days - double
• 30%-49% (9pts) - 120 days - double
• 50%-more (50pts)- 9 mos - max

2. Grace Period Expires - Complete Forfeiture Action

Option #1 - Judicial Forclosure - Accelertion Clause - exercised foreclose as mortgage.

1. Equity of Redemption - Held by Borrower
2. Lawsuit (Lis Pendens) - recorded
3. Court Action - takes place
4. Sheriff’s Sale - Highest Bid (Sheriff’s Certificate of Sale)
5. Statutory Right of Redemption - 6 mos begins
6. No Redemption - Sheriff’s Deed issued

Chap 17

Question 145

A Sheriff’s Sale is held for what type of foreclosure?

Answer 145

Mortgages (Judicial Foreclosure) -

A Sheriff’s Sale is held for Mortgages, after court action. “Sheriff’s Certicated of Sale” given to highest bidder. Then, Statutory Right of Redemption is held for 6 months by Mortgagor(Borrower).

Chap 17

Question 146

What is given to highest bidder in Sheriff’s Sale

Answer 146

Sheriff’s Certificate of Sale - is given to highest bidder.

Statutory Right of Reemption- Begins for 6 months after Sheriff’s Certificate of Sale issued at Sheriff’s Sale. Then Sheriff’s Deed conveys full title.

Chap 17

Question 147

After a mortgage is paid-off, what is issued in 30 days by Lender?

Answer 147

Satisfaction of Mortgage (Defesance/Pay-off) -

For Mortgages: Lender delivers in 30 days of pay-off to borrower.

Chap 17

Question 148

Mortgages have a Judicial or Non-Judicial Foreclosure?

Answer 148

Mortgages have Judicial Foreclosure -

1. Equity of Redemtion - Held by Borrower
2. Lawsuit (Lis Pendens) - Recorded states pending litigation.
3. Court Action - Approval
4. Sheriff’s Sale - Sheriff’s Cert of Sale (highest bidder),
5. Statutory Redemption (6 mos) - for Borrower
6. Sheriff’s Deed - Not redeemed given to holder of Sheriff’s Cert of Sale.

Chap 17

Question 149

In Trust Deeds, who are the trustor**, **beneficiary, and trustee.

Answer 149

Trust Deeds (Parties) -

1. Trustor/Borrower
2. Beneficiary/Lender
3. Trustee/3rd Party

Question 150

Trust Deed - Defeasance (Pay-off) uses what document for pay-offs recieved from Trustor?

Answer 150

Deed of Reconveyance -

Beneficiary(lender) instructs Trustee to process in 30 days of payoff to Trustor (Borrower).

Chap 17

Question 151

Is a Trust Deed Foreclosure Judicial or Non-Judicial?

Answer 151

Trust Deed Foreclosure - (Non-Judicial) both options avail.

1. Lender Instructs - Trustee to Sell.
2. Trustee records - Notice of Default and Trustee Sale
3. Trustee sends Notice to Borrower/2nd Lien Holder
4. Right of Reinstatement - Bring current plus cost/penalties (90 days - from recording Notice of Default)
5. Trustee Sale - Trustee’s Deed delivered

Deficiency Judgements - prohibited (SFR/2 Units) or 2 1/2 acres or less.

Chap 17

Question 152

What other type of sale uses Judicial proceedings as an option and forfeitures.

Answer 152

Land Contract Default Process: (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

1. Reinstate (Grace Period) - 30 days to 9 mos.
2. Depending on Purchase Price already paid. -

• 1- 20% Paid- 30 days - single
• 20%- 29% Paid (9pts) - 60 days - double
• 30%- 49% Paid - (9pts) 120 days - double
• 50%- More Paid - (50pts) 9 mos - baby born

3. Grace Period Expires - Complete Forfeiture Action (Bankruptcy’s Stop)

Option #1 - Judicial Forclosure - Accelertion Clause - exercised foreclose as mortgage.

1. Equity of Redmption - Borrower holds
2. Lawsuit (Lis Pendens) - recorded
3. Court Action - takes place
4. Sheriff’s Sale - Highest Bid (Sheriff’s Certificate of Sale)
5. Statutory Right of Redemption - 6 mos begins
6. No Redemption Done - Sheriff’s Deed issued

Chap 17

Question 153

These two theories relate to what?

1. ____ Theory -States the mortgage/trust deed DOES NOT convey any ownership to lender.
2. ____ Theory - States legal title is conveyed to lender.
3. Arizona uses what theory?

Answer 153

Lien vs Title Theory

1. Lien Theory - States the mortgage/trust deed DOES NOT convey any ownership to lender.
2. Title Theory - States legal title is conveyed to lender.
3. Arizona uses “Lien Theory.”

Chap 17

Question 154

A legal document obtained by a lender when a foreclosure sale brings less than the amount owed.

1. 2 1/2 Acres or less - (SFR/2Units) prohibit this document from being filed
2. Married Couple - (Quit Claim Deed) does not relieve spouse from liability of Deficiency Judgment.

Answer 154

Deficiency Judgment -

A legal document obtained by a lender when a foreclosure sale brings less than the amount owed.

1. 2 1/2 Acres or less - (SFR/2Units) prohibits Deficiency Judgment from being filed
2. Married Couple - (Quit Claim Deed) does not relieve spouse from liability of Deficiency Judgment.

Chap 17

Question 155

Bankruptcies effect foreclosures in what way.

Answer 155

Bankruptcies -

Stop foreclosures or forfeiture process

Chap 17

Question 156

Property given to lender in return for cancellation of debt (subject to superior and subordinate liens).

Answer 156

Deed in Lieu of Forclosure -

Property given to lender in return for cancellation of debt (subject to superior and subordinate liens).

Chap 17

Question 157

Foreclosure with Multiple Liens

1. Foreclosure of Sup_____ (Prior) Lien - may cancel subordinate lien’s interest
2. Sub____ (junior) Lien - has right to cure Superior Lien and foreclose on Jr Lien.
3. If Sub_____ (junior) Lien foreclosed - Property delivered to highest bidder subject to any higher liens.

Answer 157

Foreclosure with Multiple Liens -

1. Foreclosure of Superior (Prior) Lien - may cancel subordinate lien’s interest
2. Subordinate (junior) Lien - has right to cure Superior Lien and foreclose on Jr Lien.
3. If Subordinate (junior) Lien foreclosed - Property delivered to highest bidder subject to any higher liens.

Chap 17

Question 158

Sale which the loan balance is higher than the property value. Lender agrees to accept reduced (short) pay-off.

Answer 158

Short Sale -

Sale which the loan balance is higher than the property value. Lender agrees to accept reduced (short) pay-off.

Chap 17

Question 159

A sale in which the lender has acquired the property thru auction or (trustee sale)

Answer 159

Bank Owned Property (REO - Real Estate Owned) -

A sale in which the lender has acquired the property thru auction (trustee sale)

Chap 17

Question 160

An arrangement between a borrower and lender in which the lender agrees to delay foreclosure.

Answer 160

Forbearance -

An arrangement between a borrower and lender in which the lender agrees to delay foreclosure.

HOLDING BACK…..THE PROCESS

Chap 17

Question 161

An agreement between a borrower and lender changing loan terms.

Answer 161

Loan Modification -

An agreement between a borrower and lender changing loan terms

Chap 17

Question 162

What type of properties do these items pertain to?

1. Owner O______ (Not Sold/Leased) - Licensed Contractors - NOT required to perform all improvements if property intended to be owner-occupied, not sold/leased.
2. Licensed Contractors - Work Required -

• Property offered for sale/lease, or sold/leased within 1 year of completion or upon certificate of occupancy issued.
• Price is $1000 or more.

1. No Permit - Gov Agency may require a permit

• Owner to obtain permit retroactively
• Structure may be demolished

Answer 162

Fix and Flips

1. Owner Occupied (Not Sold/Leased) - Licensed Contractors - NOT required to perform all improvements if property intended to be owner-occupied, not sold/leased.
2. Licensed Contractors - Work Required -

• Property offered for sale/lease, or sold/leased within 1 year of completion or upon certificate of occupancy issued.
• Price is $1000 or more.

1. No Permit - Gov Agency may require a permit

• Owner to obtain permit retroactively
• Structure may be demolished

Chap 17

Question 163

A claim against property to secure a debt; money encumbrance.

Answer 163

Lien -

A claim against property to secure a debt; money encumbrance.

Chap 18

Question 164

States the litigation is pending against the property owners.

Answer 164

Lis Pendens -

States the litigation is pending against the property owners.

Chap 17

Question 165

In a Mortgage Default Process…

After Sheriff’s Sale held and Sheriff’s Certificate is issued and 6 mos Statutory Right of Redemption has passed, what is given to convey full title?

Answer 165

Sheriff’s Deed -

Given to convey full title, after Sheriff’s Sale held and Sheriff’s Certificate is issued and after 6 mos Statutory Right of Redemption has passed.

Chap 17

Question 166

What does borrower have, prior to Sheriff’s Sale in a mortgage default?

Answer 166

Equity of Redemption -

borrower has this status, prior to Sheriff’s Sale in a a mortgage default.

Chap 17

Question 167

A promise to repay the debt. Serves as evidence of debt, not as collateral?

Answer 167

Promissory Note -

A promise to repay the debt. Serves as evidence of debt, not as collateral.

Chap 17

Question 168

What is another name for borrower in a Trust Deed. This person conveys legal title to the 3rd party and signs the deed of trust.

Answer 168

Trustor -

Another name for borrower. This person conveys legal title to the Trustee (3rd party) and signs the deed of trust.

Chap 17

Question 169

3rd party who has power to sell the property at foreclosure, when borrower is in default. Must be instructed by lender.

Answer 169

Trustee -

3rd party who has power to sell the property at foreclosure, when borrower is in default. Must be instructed by lender.

Chap 17

Question 170

Another name for the lender in a a deed of trust. Lender instructs trustee (3rd party) to sell at a foreclosure.

Answer 170

Beneficiary -

Another name for the lender in a deed of trust. Lender instructs trutee (3rd party) to sell at a foreclosure.

Chap 17

Question 171

N____ of Def____ and T_____’s Sale

When beneficiary instructs Trustee to force the sale. This document is recorded by Trustee. This documents is then sent to trustor (Borrower) and anyone else who has recorded request (seller and 2nd lien holder)

Answer 171

Notice of Default and Trustee’s Sale -

When beneficiary instructs Trustee to force the sale. This document is recorded by Trustee. This documents is then sent to trustor (Borrower) and anyone else who has recorded request (seller and 2nd lien holder)

Chap 17

Question 172

Trustor (borrower) can cure default for Trust Deed, by paying back what is owed plus cost and penalties - within 90 days before Trustee’s Sale. This is called?

Answer 172

Right of Reinstatement (for Trust Deed Defaults)-

Trustor (borrower) can cure default for Trust Deed, by paying back what is owed plus cost and penalties - within 90 days before Trustee’s Sale.

Chap 17

Question 173

Trust Deed in Default -

After the “Right of Redemption (90 days) has taken place. What happens next?

Answer 173

Trustee Sale -

Sale is held after the “Right of Redemption (90 days) has taken place. Then, “Trustee’s Deed” delivered to highest bidder to convey title.

Chap 17

Question 174

This document conveys title to highest bidder after Trustees Sale.

Answer 174

Trustee’s Deed -

This document conveys title to highest bidder after Trustees Sale.

Chap 17

Question 175

Land Contract in default. Seller must give buyer grace period to reinstate (30dys - 9 mos), depending on percent of purchase price paid. Then may complete F___ A____.

Answer 175

Forfeiture Action -

Land Contract in default. Seller must give buyer grace period to reinstate (30dys - 9 mos), depending on percent of purchase price paid. Then may complete Forfeiture Action.

Chap 17

Question 176

States that the mortgage/trust deed DOES NOT convey any ownership to lender (used in Arizona).

Answer 176

Lien Theory -

States that the mortgage/trust deed DOES NOT convey any ownership to lender (used in Arizona).

Chap 17

Question 177

States legal title is conveyed to lender. (not in AZ)

Answer 177

Title Theory -

States legal title is conveyed to lender. (not in AZ)

Chap 17

Question 178

Secures note with collateral (property), document is called?

1. Promissory Note - promise to repay debt (amount, rate, pattern of payments - no collateral reference)
2. M_____or - Borrower / M_____gee - Lender

Remember Or Gives and EE receives

Answer 178

Mortgages - secured note with collateral (property)

1. Promissory Note - promise to repay debt (amount, rate, pattern of payments - no collateral reference)
2. Mortgagor - Borrower / Mortgagee - Lender

Remember Or Gives and EE receives - Mortgagor gives money to Mortgagee.

Chap 17

Question 179

Promise to repay debt - with amount, rate, pattern of payments noted - and (no collateral referenced) is called?

1. Mortgage - Secures note with collateral/property
2. Mortgagor - Borrower / Mortgagee - Lender

Answer 179

Promissory Note - promise to repay debt - with amount, rate, pattern of payments noted - and (no collateral referenced)

1. Mortgage - Secures note with collateral/property
2. Mortgagor - Borrower / Mortgagee - Lender

Chap 17

Question 180

Payoff or Satisfaction of Mortgage - Lender delivers in 30 days. This document is called?

Answer 180

Defeasance (Payoff) or Satisfaction of Mortgage -

Lender delivers in 30 days to borrower as proof of payment in full.

Chap 17

Question 181

Lawsuit filed, and recorded and the debt is accelerated. This document states that litigation is pending against the property owners. Used in mortgage process.

Answer 181

Lis Pendens -

Lawsuit filed, and recorded and the debt is accelerated. This document states that litigation is pending against the property owners. Used in mortgage process.

Chap 17

Question 182

Mortgage in Default Process -

1. L_ P______ - Lawsuit filed and recorded. The debt is accelerated. L__ P_____ states litigation is pending against property owners.
2. C____ Ac____ - takes place
3. Sh___ S____ - Highest bidder gets S______ Cert_____ of S___
4. Stat_____ R____ of Red_____ - ___ months given to owner
5. S_____’s D____ - If no Redemption - Sherrif’s Certificate of Sale holder gets full title.

Answer 182

Mortgage in Default Process -

1. Lis Pendens - Lawsuit filed and recorded. The debt is accelerated. Lis Pendens states litigation is pending against property owners.
2. Court Action - takes place
3. Sheriff’s Sale - Highest bidder gets Sheriffs Certicate of Sale
4. Statutory Right of Redemption - 6 months given to owner
5. Sheriff’s Deed - If no Redemption - Sherrif’s Certificate of Sale holder gets full title.

Chap 17

Question 183

In a Mortgage Default when does court action take place?

Answer 183

Mortgage Default -

Court Action - takes place after Lis Pendens filed and before the Sheriff’s Sale.

6 Steps:

1. Lis Pendens
2. Court Action
3. Sheriff’s Sale - Sherrif’s Cert of Sale (highest bidder)
4. Redemption Period
5. Sheriffs Deed - Title Conveyed.

Chap 17

Question 184

In a Mortgage Default, when does Sheriff’s Sale take place?

Answer 184

Mortgage Default

Sheriff’s Sale - takes place after Lis Penden’s filed, and court action takes place. Then Sheriff’s Sale is conducted, then Statutory Right of Redemption.

Chap 17

Question 185

Mortgage Defaults -

At the Sheriff’s Sale what does the Highest Bidder receive and what happens next?

Answer 185

Mortgage Defaults -

Sheriff’s Certificate of Sale -

At Sheriff’s Sale the Highest Bidder receives “Sheriff’s Cert of Sale.” Next, Statutory Right of Redemption - follows for 6 months.

Note to Self: Mortgages - 6 mos to reinstate after sale / Trust Deeds - 90 days to reinstatte.before sale

Chap 17

Question 186

In Mortgage Defaults -

How does borrower hold title before the Sheriff’s Sale

Answer 186

In Mortgage Defaults -

Equity of Redemption - Borrower holds this title before the Sheriff’s Sale

Chap 17

Question 187

In Mortgage Default

After the Sheriff’s Certificate of Sale is given to Highest bidder. What happens next?

Answer 187

Mortgages Defaults -

Statutory Right of Redemption -

After Sheriff’s Sale (Certificate of Sale given to highest bidder). The owner is given (6 months) to reinstate.

Chap 17

Question 188

Non-Judicial (Trustee’s Power of Sale)

1. Tr___ Instructed to S___ - Per Benificiary-Lender
2. Not__ of Def___ and Tru__ S___ - recorded by Trustee (County Recorder Office)
3. N___ to Tr___(Borrower): Trustee sends Notice of Default/Default Trustee Sale to Tr____ and anyone who recorded “Request for Notice of Default.
4. R____ of Rein________ - Trustor/Borrower may cure default pay back-payments (cost/penalties) at anytime before sale (___ days)
5. Tr_____ Sale held - Title to highest bidder
6. Tr____ Deed - to highest bidder.

Def_____ J_______ prohibited - 2 1/2 acres or less (SFR/2Units)-

Answer 188

Trust Deed in Default (Non Judicial Foreclosure)

Non-Judicial (Trustee’s Power of Sale)

1. Trustee Instructed to Sell - Per Benificiary-Lender
2. Notice of Default and Trustee Sale - recorded by Trustee (County Recorder Office)
3. Notice to Trustor/Borrower**: **Trustee sends** Notice of Default/Default Trustee Sale **to trustor and anyone who recorded “Request for Notice of Default.
4. Right of Reinstatement - Trustor/Borrower may cure default pay back-payments (cost/penalties) at anytime before sale (90 days)
5. Trustee Sale held - Title to highest bidder.
6. Tr____ Deed - to highest bidder.

Def_____ J_______ prohibited - 2 1/2 acres or less (SFR/2Units)-

Chap 17

Question 189

What is 1st step in Trustee’s Power of Sale?

Answer 189

Trustee’s Power of Sale - 1st Step

1. Trustee Instructed to Sell - Beneficiary-Lender instructs trustee (3rd party) to sell. (Step 1)

Chap 17

Question 190

What does the Trustee do after instructed to proceed with Trustee’s Sale?

N___ of D____ and Tr____ Sale is re______

Answer 190

Trutee’s Power of Sale (Step 2)

Notice of Default and Trustee Sale -

Is recorded by Trustee with County Recorder Office (Step #2)

Chap 17

Question 191

In a Trustee Sale process, what happens after 90 days of Right of Reinstatement period?

Answer 191

Trustee’s Power of Sale - (Step 5)

1. Trustee Sale held - After 90 days of Right of Reinstatement period, Trustee Deed - given to highest bidder. (Step 5)

Deficiency Judgement prohibited - 2 1/2 acres or less (SFR/2Units)

Chap 17

Question 192

In a Trustee’s Sale process, what do owners have before the sale and for what time frame?

Answer 192

Trustee’s Power of Sale - (Step 4)

Right of Reinstatement - Given to Trustor/Borrower, who may cure default by paying back- balance due plus (cost/penalties) at anytime before sale in 90 days (step 4).

After Notice of Default & Trustee Sale sent out….

Chap 17

Question 193

In a Trustee Sale - what is done with Notice of Default and Trustee Sale document?

Answer 193

Trustee’s Power of Sale - (Step 3)

Notice to Trustor/Borrower:

Trustee sends - Notice of Default/Default Trustee Sale to trustor and anyone who has recorded “Request for Notice of Default. (step 3)

Chap 17

Question 194

In the Trustee Sale process, what is given to highest bidder at the Trutee’s Sale (at the final step of process)?

Answer 194

Trustee’s Power of Sale - (Step 6)

1. Trustee Deed - given to highest bidder after 90 days redemption period at Trustee’s Sale (step 6)

Deficiency Judgement prohibited - 2 1/2 acres or less (SFR/2Units)

Chap 17

Question 195

Land Contract Default Process (2 options): (Agmt of S___, aka C____ for S___ of R__ E____, aka L___ C___, aka C____ for D___, aka V____’s L__)

Option #2 - Forfeiture Action

1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.

• 1- 19% (20pts) - __ days - single
• 20%-29% (9pts) - __ days - double
• 30%-49% (9pts) - ___ days - double
• 50%-more (50pts)- __ mos - max

2. Grace Period Expires - Complete Forfeiture Action

Option #1 - Judicial Forclosure - Accelertion Clause - exercised foreclose as mortgage.

1. Equity of Redemption - Held by Borrower
2. Lawsuit (Lis Pendens) - recorded
3. Court Action - takes place
4. Sheriff’s Sale - Highest Bid (Sheriff’s Certificate of Sale)
5. Statutory Right of Redemption - 6 mos begins
6. No Redemption - Sheriff’s Deed issued

Answer 195

Land Contract Default Process (2 options): (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.

• 1- 19% (20pts) - 30 days - single
• 20%-29% (9pts) - 60 days - double
• 30%-49% (9pts) - 120 days - double
• 50%-more (50pts)- 9 mos - max

2. Grace Period Expires - Complete Forfeiture Action

Option #1 - Judicial Forclosure - Accelertion Clause - exercised foreclose as mortgage.

1. Equity of Redemption - Held by Borrower
2. Lawsuit (Lis Pendens) - recorded
3. Court Action - takes place
4. Sheriff’s Sale - Highest Bid (Sheriff’s Certificate of Sale)
5. Statutory Right of Redemption - 6 mos begins
6. No Redemption - Sheriff’s Deed issued

Chap 17

Question 196

Land Contract Default Process (2 options): (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
   * 1- 19% paid (20pts) - ___ days - single
2. Grace Period Expires - Complete Forfeiture Action

Answer 196

Land Contract Default Process (2 options): (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
   * 1- 19% paid (20pts) - 30 days - single
2. Grace Period Expires - Complete Forfeiture Action

Chap 17

Question 197

These options refer to what?

Option #2 - Forfeiture Action

1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
   * 20%-29% Paid (9pts) - __ days - double
2. Grace Period Expires - Complete Forfeiture Action

Answer 197

Land Contract Default Process (2 options): (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
   * 20%-29% Paid (9pts) - 60 days - double
2. Grace Period Expires - Complete Forfeiture Action

Chap 17

Question 198

These options refer to what?

Option #2 - Forfeiture Action

1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
   * 30%-49% Paid (9pts) - ___ days - double
2. Grace Period Expires - Complete Forfeiture Action

Answer 198

Land Contract Default Process (2 options): (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
   * 30%-49% Paid (9pts) - 120 days - double
2. Grace Period Expires - Complete Forfeiture Action

Chap 17

Question 199

These options refer to what?

Option #2 - Forfeiture Action

1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
   * 50%-more (50pts)- ___ mos - max
2. Grace Period Expires - Complete Forfeiture Action

Answer 199

Land Contract Default Process (2 options): (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
   * 50%-more (50pts)- 9 mos - max
2. Grace Period Expires - Complete Forfeiture Action

Chap 17

Question 200

In a Trust Deed Defeasance (Pay-off) document used for pay-offs received from Trustor?

Answer 200

Deed of Reconveyance -

Beneficiary(lender) instructs Trustee to process in 30 days of payoff to Trustor (Borrower).

Chap 17

Question 201

In Trust Deed - Defeasance (Pay-off) document that is used for pay-offs received from Trustor?

Answer 201

Deed of Reconveyance -

Beneficiary(lender) instructs Trustee to process in 30 days of payoff to Trustor (Borrower).

Chap 17

Question 202

With a Trust Deed, the document used as a Defeasance (Pay-off) for balance paid in full and received from Trustor is called?

Answer 202

Deed of Reconveyance -

Beneficiary (lender) instructs Trustee to process in 30 days of payoff to Trustor (Borrower).

Chap 17

Question 203

What does borrower have, prior to Sheriff’s Sale in a mortgage default?

Answer 203

Equity of Redemption -

borrower has this status, prior to Sheriff’s Sale in a a mortgage default.

Chap 17

Question 204

What does borrower have, prior to Sheriff’s Sale in a mortgage default?

Answer 204

Equity of Redemption -

borrower has this status, prior to Sheriff’s Sale in a a mortgage default.

Chap 17

Question 205

What does borrower have, prior to Sheriff’s Sale in a mortgage default?

Answer 205

Equity of Redemption -

borrower has this status, prior to Sheriff’s Sale in a a mortgage default.

Chap 17

Question 206

Who signs Deed of Trust?

Answer 206

Trustor Signs Deed of Trust -

Trustor is the borrower and conveys legal title to the trustee. Therefore the Trustor is the only one who signd the “Deed of Trust”.

Chap 17

Question 207

Allows buyer/owner of subdivision to used current public report issued in past 5 years.

Answer 207

Subsequent Owner Exemption -

Allows buyer/owner of subdivision to used current public report issued in past 5 years.

Chap 16

Question 208

Real Estate Code/Article 4

Commissioner may “De__, Susp____, Rev____,” public report for

1. Incompleteness or
2. Inability to meet all statutory requirements.

Answer 208

Real Estate Code/Article 4

Commissioner may “Deny, Suspend, Revoke,” public report for

1. Incompleteness or
2. Inability to meet all Statutory Requirements.

Chap 16

Question 209

Subdivider must give to buyers a receipt to sign for Public Report and retain receipt for how long?

Answer 209

(Real Estate Code/Article 4)

Public Report (Subdivision Disclosure Report) Receipt to Buyer

1. Buyer must Sign
2. Subdivider Must keep receipts for - 5 years

Chap 16

Question 210

If there are material changes to original report, what can Commissioner require?

A______ R________ -

1. Commissioner may require, if there are Material Changes to Original Report.
2. Buyer has ___ days to review it or cancel

Answer 210

(Real Estate Code/Article 4)

Amended Report -

1. Commissioner may require, if there are material changes to original report.
2. Buyer has 10 days to review it or cancel

Chap 16

Question 211

Exemptions to Public Report

1. B__k S___/L__se (__ or more lots) to one buyer
2. Sale/Lease - ___ acres or more
3. C______ and Ind______ zoned/restricted parcels - for Sale/Lease
4. Sub______ Owner Ex________ - Allows buyer/owner of existing subdivision to use Cur___/Acc_____ P____ Report (issued within __ years).

Answer 211

(Real Estate Code/Article 4)

Exemptions to Public Report

1. Bulk Sale/Lease (6 or more lots) to one buyer
2. Sale/Lease - 160 acres or more
3. Commercial and Industrial zoned/restricted parcels - for Sale/Lease
4. Subsequent Owner Exemption - Allows buyer/owner of existing subdivision to use Current/Accurate Public Report (issued within 5 years).

Chap 16

Question 212

Lot Reservation (Requirements)

1. Max $_____ deposit - for lot (in escrow)
2. Public Report - Delivered __ calendar days of issuance
3. Lot Reservation Terminated - In __ business days of buyer’s receipt of public report unless “purchase contract signed”
4. Lot Reserve Cancel - Buyer may cancel anytime“Prior to entering P____ C_____.”
5. Signed Purchase Contract - Buyer __ days to review and cancel Amended Public Reports

Answer 212

(Real Estate Code/Article 4)

“Lot Reservations” (Requirements) -

1. Max $5,000 deposit for lot (in escrow)
2. Public Report - Delivered 15 calendar days of issuance
3. Lot Reserve Terminates - In 7 business days of buyer’s receipt of public report unless “purchase contract signed”
4. Lot Reserve Cancel - Buyer may cancel anytime“Prior to Entering Purchase Contract.”
5. Signed Purchase Contract - Buyer 10 days to review and cancel Amended Public Reports

Chap 16

Question 213

If sale made prior to final approval of public report or subdivider fails to provide a public report to purchaser:

1. Sale is R________ by buyer.
2. Buyer may take legal action within __ years.

Answer 213

(Real Estate Code/Article 4)

No Public Report -

If sale made prior to final approval of public report or subdivider fails to provide a public report to purchaser

1. Sale is Recindable by buyer.
2. Buyer may take legal action with in - 3 years.

Chap 16

Question 214

Unimproved Lands

1. Lands Inspected - Buyer- __ calendar days unilateral right to rescind
2. Uninspected Land - Buyer - __ mos to inspect or may rescind at time of inspection

Answer 214

(Real Estate Code/Article 4)

Unimproved Lands

1. Inspected - Buyer - 7 calendar days unilateral right to rescind
2. Uninspected Land - Buyer- 6 mos to inspect or may rescind at time of inspection

Chap 16

Question 215

Unimproved Lands - Inspected.

Buyer Unilateral Right Recind - has __ calendar days for “inspected” unimproved lands

Answer 215

(Real Estate Code/Article 4)

Unimproved Lands (Inspected) -

Buyer Unilateral Right Recind - In 7 calendar days for “inspected” unimproved lands

Chap 16

Question 216

Unimproved Lands - Uninspected - Buyer has __ mos to inspect or may rescind.

Answer 216

(Real Estate Code/Article 4)

Unimproved Lands (Uninspected) -

Buyer has 6 mos to inspect or may rescind at inspection

Chap 16

Question 217

Property divided into 6 or more lots for the purpose of sale/lease , with lots 36-159 acres each are called?

6 or more lots -

1. 36 acres or more each
2. But less than 160 acres each

Answer 217

(Real Estate Code/Article 4) -

Unsubdivided Lands

Property divided into 6 or more lots for the purpose of sale/lease , with lots 36-159 acres each

1. 36 acres or more each
2. But less than 160 acres each

Chap 16

Question 218

In reference to what concerning lots?

1. Orchestrating a scheme or acting in concert to circumvent subdivision laws is illegal.
2. Creation of five or fewer parcels from one parcel does not create a subdivision.

Answer 218

(Real Estate Code/Article 4)

Illegal Lot Splits

1. Orchestrating a scheme or acting in concert to circumvent subdivision laws is illegal.
2. Creation of five or fewer parcels from one parcel does not create a subdivision.

Chap 16

Question 219

Recorded with Deed for any improved or unimproved property that is in the (unicorporated area of a county - not a municipality) and not in a recorded subdivision

Answer 219

(Real Estate Code/Article 4)

Affidavit of Disclosure

Recorded with Deed for any improved or unimproved property that is in the (unicorporated area of a county - not a municipality) and not in a recorded subdivision

Chap 16

Question 220

Pertaining to improved/unimprove property

Affidavit of Disclosure

Recorded with Deed - Pertaining to improved/unimproved property this requires disclosure of information regarding

1. W____ Av_______,
2. S____ or S____ T_____,
3. Leg___ Ac____,
4. Eas_____, etc

Answer 220

(Real Estate Code/Article 4)

Affidavit of Disclosure -

Recorded with Deed - Pertaining to improved/unimproved property this requires disclosure of information regarding

1. Water Availability,
2. Sewer or Septic Tanks,
3. Legal Access,
4. Easements, etc

Chap 16

Question 221

Affidavit of Disclosure - Pertaining to improved /unimproved properties in unincorporated areas and un-recorded subdivisions.

Disclosures requires info regarding w___ a____, s____ or s___ tanks, leg__ access, e______, etc. (No Appraisal required)

1. Disclosure - Delivered to Buyer at least - __ days prior to close.
2. Buyer Can Rescind - In __ days the transaction from Receipt of Aff_____ of Dis______.

Answer 221

Affidavit of Disclosure - Pertaining to improved/unimproved properties in -unincorporated areas and unrecordered subdivisions)

Disclosures requires info regarding water availability, sewer or septic tanks, legal access, easements, etc. (No Appraisal required)

1. Disclosure - Delivered to Buyer at least - 7 days prior to close.
2. Buyer Can Rescind - In 5 days the transaction from Receipt of Affidavit of Disclosure.

Chap 16

Question 222

Affidavit of Disclosure - Pertaining to properties improved or unimproved ii unincorporated area of county.

Seller must record A_____ of D______ when D____ is recorded.

Answer 222

(Real Estate Code/Article 4) -

Affidavit of Disclosure - Pertaining to properties improved or unimproved ii unincorporated area of county.

Seller must record Affidavit of Disclosure when Deed is recorded

Chap 16

Question 223

is a share or interest in real property (usually in a resort, condominium or hotel) with a right to use the facility for a certain period of time.

Answer 223

(Real Estate Code/Article 9) -

Time Share -

a share/interest in real property (usually in a resort condominium or hotel) with a right to use the facility for a certain period of time.

Chap 16

Question 224

Timeshare Reports

__ or more timeshares sold, a “timeshare report” is required.

Answer 224

(Real Estate Code/Article 9)

Timeshare Reports

12 or more timeshares sold, a “timeshare report” is required.

Chap 16

Question 225

Timeshare Report (Requirements)

1. N___ and Ad____ of Owner and Developer
2. “Comp_____ St______” of the timeshare program.
3. Leg__ Desc______ and location of land
4. “St_____ of Assur______” for the Installation of All Im_________, including offsite Im_________.
5. “Prov_____“ for the Exchange of Occ_____ Rights with owners of other timeshare projects.

Answer 225

(Real Estate Code/Article 9)

Timeshare Reports (Requirements) -

1. Name/Address of Owner and Developer
2. Comprehensive Statement - of the timeshare program.
3. Legal Description and location of land
4. “Statement of Assurances“ - for the Installation of Improvements, including offsite Improvements.
5. “Provisions” for the Exchange of Occupancy Rights with owners of other timeshare projects.

Chap 16

Question 226

Rescinding Timeshare Purchases

1. Recind Time Share Purchase Contract - In __ days of Executing the Contract, recind without cause.
2. Sale Prior to Pub__ R_____ - The S___ is V____ by the Purchaser
3. L___ Ac_____ - To Void, the Action must be brought within - __ years of the sale.

Answer 226

(Real Estate Code/Article 9)

Rescinding Timeshare Purchases

1. Recind Time Share Purchase Contract - In 7 dys of Executing the Contract, recind without cause
2. Sale Prior to Public Report -The Sale is Voidable by the Purchaser
3. Legal Action - To Void, the Action must be brought within - 3 years of the sale.

Chap 16

Question 227

(Arizona Commissioner’s Rules/Article 3 - Licensing)

General Licensing Requirements -

1. Requires Licensee Dis______ Q________, F_______ and S____ S______ Number of applicants
2. Broker license - issued after A____ L_____ C_______.
3. Only use L_____ N____ on License
4. B______ and R______ Addresses - must file
5. Notify Commissioner - In __ Days of Any: Mis______ or F____ - Adverse J______ in Real Estate suits and C______ of Address

Answer 227

(Arizona Commissioner’s Rules/Article 3 - Licensing)

General Licensing Requirements -

1. Requires Licensee Disclosure Questionaire**, **Fingerprints** and **Social Security Number of applicants
2. Broker license** - **issued after Agent License Cancelled
3. Only use Legal Name on License
4. Business and Residential Addresses - must file
5. Notify Commissioner - In 10 Days of Any: Misdemeanor or Felony - Adverse Judgement in Real Estate suits and Change of Address

Chap 16

Question 228

License Renewing

1. Upon renewing - Exi___ L____ in effect until expires.
2. Renewing Late - Specify if A_____ conducted after expiration.
3. If Renewal Very Late - P__ P_____, advise if activities after expiration
4. Sever Form - Ad_______ S________ by Broker sent to DRE to sever licensee from office.

Answer 228

(Arizona Commissioner’s Rules/Article 3 - Licensing)

License Renewing -

1. Upon renewing - Existing License in effect until expires.
2. Renewing Late - Specify if Activities conducted after expiration.
3. If Renewal Very Late** - **Pay Penalty, advise if activities after expiration
4. Sever Form - Administrative Severance by Broker sent to DRE to sever licensee from office.

Chap 16

Question 229

Branch Manager Requirements

1. Agent/Assoc Broker - may act as Br__ Manager
2. Designated Broker - may ask A____ Br_____ to perform designated B____ Func____.
3. Branch Office Onsite - no Sep____ Li____ R______.

Answer 229

(Arizona Commissioner’s Rules/Article 3 - Licensing)

Branch Manager Requirements -

1. Agent/Assoc Broker - may act as Branch Manager
2. Designated Broker - may ask Assoc Broker to perform designated Broker Functions.
3. Branch Office Onsite - no Separate License Required

Chap 16

Question 230

Advertising by a Licensee -

1. Agent may not imply N_ A__ is Involved.
2. Agent Owns Property - Dis____ Agent-Owned
3. Misl____ Fa____ - Advertising shall not contain. Accurate claims only
4. Employing Broker Name - at T__ of W__ Pages and Adv_______.
5. All Advertising - Sup_______ by Designated B____.
6. Acre - must represent _______ square feet
7. Sign on Property - Owner W____ C______.

Answer 230

(Arizona Commissioner’s Rules/Article 5)

Advertising by a Licensee -

1. Agent may not imply No Agent is Involved.
2. Own Property - disclosed agent-owned
3. Misleading Facts - Advertising shall not contain. Accurate claims only
4. Employing Broker Name - at Top of Web Pages and Advertising.
5. All Advertising - Supervised by designated broker.
6. Acre - must represent 43,560 square feet
7. Sign on Property - Owner Written Consent.

Chap 16

Question 231

Promotional Activities

1. Agents shall not describe “Pre____ Off_____“ at N_ C___ or Red____ C____ as “Award/Prize.”
2. Premium Offer - states T___, Cost, C______, Res______ in writing before offeree participates.
3. Interest in Development - may not Soli__, S___, or Of___ by conducting a Lot____, Con___, Drawing or Ga___ of Ch____ to influence purchaser.
4. Sub______/T______/C_______ Memberships: May conduct lottery, contest, drawing, or game of chance.

Answer 231

(Arizona Commissioner’s Rules/Article 5)

Promotional Activities

1. Agents shall not describe “Premium Offered” at No Cost or Reduced Cost as “Award/Prize.”
2. Premium Offer - state Terms, Cost, Conditions, Restrictions in writing before offeree participates.
3. Interest in Development - may not Solicit, Sell, or Offer by conducting a Lottery, Contest, Drawing or Game of Chance to influence purchaser.
4. Subdividers/Timeshares/Campground Memberships: May conduct lottery, contest, drawing, or game of chance.

Note: In marketing, premiums are promotional items — toys, collectables, souvenirs and household products

Chap 16

Question 232

Compensation Sharing Disclosure

1. Real Estate Broker - in W____ Before C_____, name of each Employing Broker representing parties and who will Receive Compensation.
2. Compensation to Agents/Referral Fees - to other brokers have (N__ D______ R______)

Answer 232

(Arizona Commissioner’s Rules/Article 7 - Compensation)

Compensation Sharing Disclosure -

1. Real Estate Broker - in Writing Before Closing, name of each Employing Broker representing parties and who will Receive Compensation.
2. Compensation to Agents/Referral Fees - to other brokers have (Not Disclosure Required)

Chap 16

Question 233

Documents / Conveyance of Documents

1. Executed Docs - Deliver S____ copies to Parties
2. Offers -
   
   1. List Agmt Terms - Submit all Of___ (Wri___ and Ver___)
   2. Disclose to Offerors (Byr) - Receive Owner P______ to disclose all T___ of Additional Of____
3. Prior to Closing - Submit all Offers
4. “Cease Offers” (O____ Wr____ Con___) - Agent is released from duty to submit all offers but M__ D_ V______.
5. Broker Retains - C____, Escrow Rec____, Cl___ Sta_____, E_____ Ins____, L___ Agmts, Emp____ A_______, all Dis_______ (Signed and Delivered)

Answer 233

Arizona Commissioner’s Rules/Article 8

Documents / Conveyance of Documents

1. Executed Docs - Deliver Signed copies to Parties
2. Offers -
   
   1. List Agmt - Submit all Offers (Written/Verbal)
   2. Disclose to Offerors (Byr) - Receive Owner Permission to disclose all Terms of Additional Offers
3. Prior to Closing - submit all offers
4. “Cease Offers” (Owner Written Consent) - Agent is released from duty to submit all offers but May Do Voluntary..
5. Broker Retains - Contracts, Escrow Receipts, Closing Statements, Escrow Instructions, List Agmts, Employment Agreements, all Disclosures (Signed and Delivered).

Chap 16

Question 234

Arizona Commissioner’s Rules - Article 11

Professional Conduct -Duties of Client - (1 -3 of 6)

1. Fiduciary Duties - licensee owes to client CARLOD (Con_____, Acc_____, R_____ Care, Loy____, Ob_____, Dis______)
2. Disclose - All Mat____ and Adv_____ Fa___ that Agent Knows in writing which includes:
   
   1. Any info Seller/Lessor U___ to P_____
   2. Any info Buyer/Lessee U____ to P______
   3. Mat____ Defects - Existing in Property
   4. L____/E__________ May possibly Existing in Property.
3. Pub___/Pri___ Air___, Mil____ Tra___ Facility

Answer 234

Arizona Commissioner’s Rules - Article 11

Professional Conduct -Duties of Client - (1-3 of 6)

1. Fiduciary Duties - licensee owes to client CARLOD (Confidentiality, Accounting, Reasonable Care, Loyalty, Obedience, Disclosure)
2. Disclose - All Materially/Adverse Facts that Agent Knows in writing which includes:
   
   1. Any info Seller/Lessor Unable to Perform
   2. Any info Buyer/Lessee Unable to Perform
   3. Material Defects - Existing in Property
   4. Liens/Encumbrances May Possibly Existing in Property
3. If in Public/Private Airport, Military Training Facility

Chap 16

Question 235

Arizona Commissioner’s Rules - Article 11 -

Professional Conduct Duties to client:

Fiduciary Duties owed to client (CARLOD)

1. Con______,
2. Acc_______,
3. R______ Care,
4. Loy___,
5. Obe_______,
6. Dis______

Answer 235

(Arizona Commissioner’s Rules/Article 11 - Prof Conduct)

Duties to Client (Fiduciary Duties) -

1. Confidentiality,
2. Accounting,
3. Reasonable Care,
4. Loyalty,
5. Obedience,
6. Disclosure

Chap 16

Chap 16

Question 236

(Arizona Commissioner’s Rules-Article 11 -

Prof Conduct Duties to Client

Disclosure Includes:

All Materially/Adverse Facts that Agent knows in writing which includes:

1. Any info seller/lessor - U____ to P______
2. Any info buyer/lessee - U_____ to P______
3. Mat_____ Def____ - existing in property
4. L____/E_________ possible existance in property.

Answer 236

(Arizona Commissioner’s Rules-Article 11 - Prof Conduct) Duties to client:

Disclosure includes -

All materially/adverse facts that agent knows in writing which includes:

1. Any info seller/lessor - Unable to Perform
2. Any info buyer/lessee - Unable to Perform
3. Material Defects - existing in property
4. Liens/Encumbrances possible existance in property.

Chap 16

Question 237

(Arizona Commissioner’s Rules/Article 11 -

Profesional Conduct Duties to Client - Disclose Properties in these Areas

1. Pub___/Pri____ Airport,
2. Mil____ Air____ or Ancillary Mil___ Fac_____
3. Mil_____ Tr_____ Fac____

Answer 237

(Arizona Commissioner’s Rules/Article 11 - Prof Conduct)

Profesional Conduct Duties to Client - Disclose Properties in these Areas -

1. Public/Private Airport,
2. Military Airport or Ancillary Military Facility
3. Military Training Facility

Chap 16

Question 238

(Arizona Commissioner’s Rules/Article 11 Professional Conduct - Duties to Client

Duties to Client (Prospective Interest or Conflict) Written Statement (Disclosure) Necessary for:

1. Agent - A____ as P_____
2. Seller/Buyer - M____ of A____’s Family
3. Seller/Buyer - Is Emp_____ B____ or A_____
4. Agent/Family Member - Fin_____ Int______
5. Licensee Compensation from Buyer and Seller - W____ C_____ from A__ P_____

Answer 238

(Arizona Commissioner’s Rules/Article 11 - Prof Conduct)

Duties to client (Prospective Interest or Conflict): Written Statement (Disclosure) Necessary for:

1. Agent - Acting as Principal
2. Seller/Buyer - Member of Agent’s Family
3. Seller/Buyer - Is Employing Broker or Agent
4. Agent/Family Member - Financial Interest
5. Licensee Compensation from Buyer and Seller - Written Consent from All Parties

Chap 16

Question 239

Arizona Commissioner’s Rules/Article 11 - Profesional Conduct (Summary) -

1. Disclosure - CARLOD, Air____, Mil___Tra___, Con____ of Int____ to client
2. Compensation - A____ shall not accept Mon___, Reb____ for any G____/Ser____ provided and related to real estate transaction without persons W______ Ack________ of Com________.
3. Services Outside of Agent’s Field - Must Use P____ Com_____ in those S_____, or Disclose La__ of K_______ and then client employs the Licensee
4. Agent Obtain and Communicate Information - Use R_______ Care for In__ Mat____ to Transaction
5. Occupancy - Shall Not Permit T__ Party or B____ without W_____ C_____, Before Close of Escrow.
6. Occupancy Disclosure - Agent shall recommend client to seek appropriate L____ C____ of R____ of Pre-Possession or Post-Possession.

Answer 239

Arizona Commissioner’s Rules/Article 11 - Profesional Conduct (Summary) -

1. Disclosure - CARLOD, Airports, Military Training, Conflict of Interest to client
2. Compensation - Agent shall not accept Monies, Rebates for any Goods/Services provided and related to real estate transaction without persons Written Acknowledgment of Compensation.
3. Services Outside of Agent’s Field - Must Use Person Competent in Those Services, or Disclose Lack of Knowledge and then client employs the Licensee.
4. Agent Obtain and Communicate Information - Use Reasonable Care for Info Material to Transaction.
5. Occupancy - Shall Not Permit Third party or Buyers without Written Consent, Before Close of Escrow.
6. Occupancy Disclosure - Agent shall recommend client to Seek appropriate Legal Counsel of Risks of Pre-Possession or Post-Possession.

Chap 16

Question 240

Arizona Commissioner’s Rules/Article 11 - Prof Conduct

Property Negotiations - Shall be conducted through Principal’s Broker or Licensed Representative UNLESS:

1. FSBO - For Sale By Owner
2. Prin____ Waives Requirement in Wr___ or
3. No Licensed Representative of Broker - Available in __ hours. Get Written Consent to present offer

Answer 240

(Arizona Commissioner’s Rules/Article 11 - Prof Conduct)

Property Negotiations - Shall be conducted through Principal’s Broker or Licensed Representative UNLESS -

1. FSBO - For Sale By Owner
2. Principal Waives Requirement in Writing or
3. No Licensed Representative of Broker - Available in 24 hours. Get Written Consent to present offer

Chap 16

Question 241

AZ Commissioner’s Rules/Article 11 - Prof Conduct

Broker Supervision and Control -

Reasonable Super____ and C_____, and Enfor___ of Written Pol____, R_____, Proc_____, and Sy____ over Activities of Associate Brokers and Agents.

Answer 241

(Arizona Commissioner’s Rules/Article 11 - Prof Conduct)

Broker Supervision and Control -

Reasonable Supervision and Control, and Enforcement of Written Policies, Rules, Procedures, and Systems over Activities of Associate Brokers and Agents.

Chap 16

Question 242

Land which is divided into 6 or more lots, parcels or fractional interest created for sale or lease.

Answer 242

Subdivision -

Land which is divided into 6 or more lots, parcels or fractional interest created for sale or lease.

Chap 16

Question 243

Documents Retained by Broker

1. Broker Retains - C____, Esc____ Rec____, Clo___ St_____, E____ Ins____, List A____, Emp____ Ag_____, all Dis_____ (Si___ and De_____)

Answer 243

Arizona Commissioner’s Rules/Article 8

Documents Retained by Broker

1. Broker Retains - Contracts, Escrow Receipts, Closing Statements, Escrow Instructions, List Agmts, Employment Agreements, all Disclosures (Signed and Delivered).

Chap 16

Question 244

Arizona Commissioner’s Rules - Article 11

Professional Conduct -Duties of Client - (3 to 6)

1. All Acts - Expedit____ Comp____
2. Controversy with Another Agent - shall not Jeo____, Del___ or Inter___ with Transaction
3. Prospective Interest/Conflict -
   
   1. Agent - A_____ as Pr______
   2. Seller/Buyer - Mem____ of A____’s Fam__
   3. Seller/Buyer - Is Employing B____ or A____
   4. Agent/Family Member - Fin_____ Int____
   5. Agent Compensation from Buyer and Seller - Has Wr_____ C_____ of A__ Parties

Answer 244

Arizona Commissioner’s Rules - Article 11

Professional Conduct -Duties of Client - (3 to 6)

1. All Acts - Expenditiously completed
2. Controversy with another agent - shall not Jeopardize, Delay or Interfere with Transaction
3. Prospective Interest/Conflict -
   
   1. Agent - Acting as Principal
   2. Seller/Buyer - Member of Agent’s Family
   3. Seller/Buyer - Is Employing Broker or Agent
   4. Agent/Family Member - Financial Interest
   5. Agent Compensation from Buyer and Seller - Has Written Consent of All Parties

Chap 16

Question 245

Lot Reservation - Terminate or Cancel

1. Lot Reserve Terminates - In __ Business Days of buyer’s receipt of public report unless “purchase contract signed”
2. Cancel - Buyer may cancel anytime “Prior to Entering P____ C_____.”
3. Signed Purchase Contract - Buyer __ days to review and cancel Amended Public Reports

Answer 245

(Real Estate Code/Article 4)

“Lot Reservations” Terminate or Cancel -

1. Lot Reserve Terminates - In 7 Business Days of buyer’s receipt of public report unless “Purchase Contract Signed”
2. Cancel - Buyer may cancel anytime“Prior to Entering Purchase Contract.”
3. Signed Purchase Contract - Buyer 10 days to review and cancel Amended Public Reports

Chap 16

Question 246

Lot Reservation (Requirements)

1. Max $_____ deposit - for lot (in escrow)
2. Public Report - Delivered __ calendar days of issuance
3. Lot Reserve Termination - In __ business days of buyer’s receipt of public report unless “purchase contract signed”

Answer 246

(Real Estate Code/Article 4)

“Lot Reservations” (Requirements) -

1. Max $5,000 deposit for lot (in escrow)
2. Public Report - Delivered 15 calendar days of issuance
3. Lot Reserve Terminates - In 7 business days of buyer’s receipt of public report unless “Purchase contract Signed”

Chap 16

Question 247

Lot Reservation & Purchase Contracts

1. Lot Reserve Prior to P_____ C_____ Cancel - Buyer may cancel anytime“Prior to entering P____ C_____.”
2. Signed P_____ C______ - Buyer __ days to review and cancel Amended P_____ R____ts

Answer 247

(Real Estate Code/Article 4)

“Lot Reservations” and Purchase Contracts

1. Lot Reserve Prior to Purchase Contract - Cancel - Buyer may cancel anytime“prior to entering Purchase Contract.”
2. Signed Purchase Contract - Buyer 10 days to review and cancel Amended Public Reports

Chap 16

Question 248

Arizona Commissioner’s Rules/Article 11 - Profesional Conduct (Summary) -

1. Disclosure - CARLOD, Air____, Mil___Tra___, Con____ of Int____ to client
2. Compensation - A____ shall not accept Mon___, Reb____ for any G____/Ser____ provided and related to real estate transaction without persons W______ Ack________ of Com________.
3. Services Outside of Agent’s Field - Must Use P____ Com_____ in those S_____, or Disclose La__ of K_______ and then client employs the Licensee
4. Agent Obtain and Communicate Information - Use R_______ Care for In__ Mat____ to Transaction
5. Occupancy - Shall Not Permit T__ Party or B____ without W_____ C_____, Before Close of Escrow.
6. Occupancy Disclosure - Agent shall recommend client to seek appropriate L____ C____ of Risk of Pre-Possession or Post-Possession.

Answer 248

Arizona Commissioner’s Rules/Article 11 - Profesional Conduct (Summary) -

1. Disclosure - CARLOD, Airports, Military Training, Conflict of Interest to client
2. Compensation - Agent shall not accept Monies, Rebates for any Goods/Services provided and related to real estate transaction without persons Written Acknowledgment of Compensation.
3. Services Outside of Agent’s Field - Must Use Person Competent in Those Services, or Disclose Lack of Knowledge and then client employs the Licensee.
4. Agent Obtain and Communicate Information - Use Reasonable Care for Info Material to Transaction.
5. Occupancy - Shall Not Permit Third party or Buyers without Written Consent, Before Close of Escrow.
6. Occupancy Disclosure - Agent shall recommend client to Seek appropriate Legal Counsel of Risks of Pre-Possession or Post-Possession.

Chap 16

Question 249

Affidavit of Disclosure - Pertaining to improved /unimproved properties in unincorporated areas and un-recorded subdivisions.

1. Disclosure - Delivered to Buyer at least - __ days prior to close.
2. Buyer Can Rescind - In __ days the transaction from Receipt of Aff_____ of Dis______.

Answer 249

Affidavit of Disclosure - Pertaining to improved/unimproved properties in -unincorporated areas and unrecordered subdivisions)

1. Disclosure - Delivered to Buyer at least - 7 days prior to close.
2. Buyer Can Rescind - In 5 days the transaction from Receipt of Affidavit of Disclosure.

Chap 16

Question 250

The purchaser of Unimproved Land in AZ Subdivision can void the purchase contract if the subdivider does NOT provide:

1. Title Insurance
2. Water Rights
3. Permanent Access
4. Warranty Deed

Answer 250

The purchaser of Unimproved Land in AZ Subdivision can void the purchase contract if the subdivider does NOT provide:

1. Title Insurance
2. Water Rights
3. Permanent Access
4. Warranty Deed

Chap 16

Question 251

Salesperson receives offer to purchase from buyer, but is unable to contact anyone in listing office for 24 hours. Salesperson may:

1. Present offer to seller
2. Hold the offer until the listing agency can be contacted
3. Request written permission from the seller to submit the offer
4. Send the offer to lisitng agency by certified mail

Answer 251

Salesperson receives offer to purchase from buyer, but is unable to contact anyone in listing office for 24 hours. Salesperson may:

1. Present offer to seller
2. Hold the offer until the listing agency can be contacted
3. Request written permission from the seller to submit the offer
4. Send the offer to lisitng agency by certified mail

Chap 16

Question 252

Real Estate Commissioner can deny the issuance of a public report on a subdivision because the subdivider’s inability to:

1. Provide buyers with comparable sales prices
2. Provide paved roads to the property
3. Deliver clear title or equitable interest promised
4. Provide elevations and floor plans

Answer 252

Real Estate Commissioner can deny the issuance of a public report on a subdivision because the subdivider’s inability to:

1. Provide buyers with comparable sales prices
2. Provide paved roads to the property
3. Deliver clear title or equitable interest promised
4. Provide elevations and floor plans

Chap 16

Question 253

An AZ real estate broker is required to perform all of the following procedures EXCEPT:

1. Obtain the seller’s permission to place a sign on the property
2. Keep records for 5 years from the termination of a transaction
3. Maintain trust account
4. Obtain the written consent of all parties when evaluating a property in which the broker has an interest

Answer 253

An AZ real estate broker is required to perform all of the following procedures EXCEPT:

1. Obtain the seller’s permission to place a sign on the property
2. Keep records for 5 years from the termination of a transaction
3. Maintain trust account
4. Obtain the written consent of all parties when evaluating a property in which the broker has an interest

Chap 16

Question 254

Subdivision Requirements - Must submit Public Report to RE Commissioner with:

1. Name and A_____ - Owner and Developer
2. Liens and T___ Condition - to land
3. Terms and Conditions - Of Sale
4. M__ of Subdivision
5. Restrictive Cov_____
6. Perm____ Access Provisions - to each parcel
7. If AMA - Cert of Assured W___ S____ - from ADWR

Answer 254

Subdivision Requirements - Must submit Public Report to RE Commissioner with:

1. Name and Address - Owner and Developer
2. Liens and Title Condition - to land
3. Terms and Conditions - Of Sale
4. Map of Subdivision
5. Restrictive Covenants
6. Permanent Access Provisions - to each parcel
7. If AMA - Cert of Assured Water Supply - from ADWR

Chap 16

Question 255

Someone who performs real estate service for another

Answer 255

Real Estate Broker -

Someone who performs real estate service for another

Chap 15

Question 256

Person engaged to represent a real estate broker

Answer 256

Real Estate Salesperson -

Person engaged to represent a real estate broker

Chap 15

Question 257

AZ Constitution - Article XXVI (Article 26) -

Gives licensees Aut___ to prepare all types of Real Estate C______, but only when preparation incidental to their function as agent (N_ Ch___)

1. Statute of Frauds: Contracts in Writing to be Enf______.
2. Actual Laws (Articles 1-__, Title 3_, Chapter __)
3. Commissioner Rules: Not Law but they have F___ and Ef___ of Law on Licensees
4. Sub_____ Policy S____- Cl____ ADRE Policies
5. Case Law: Legal Cases that Est______ Law

Answer 257

AZ Constitution - Article XXVI (Article 26) -

Gives licensees Authority to prepare all types of Real Estate Contracts, but only when preparation incidental to their function as agent (No Charge)

1. Statute of Frauds: Contracts in Writing to be Enforced
2. Actual Laws (Articles 1-10, Title 32, Chapter 20)
3. Commissioner Rules: Not Law but they have Force and Effect of Law on Licensees
4. Substantive Policy Stmts: Clarify ADRE Policies
5. Case Law: Legal Cases that Establishes Law

Chap 15

Question 258

What is not law but has force and effect of law?

Answer 258

Commissioner Rules:

Not Law - but has force/effect of law

Chap 15

Question 259

Established to clarify ADRE policies on Statute and Rules?

Answer 259

(SPS) Substantive Policy Statements:

Established to clarify ADRE policies on Statute and Rules.

Chap 15

Question 260

Real Estate Commissioner

1. Appointed by G______
2. Qualifications: __yrs Admin and __ yrs Real Estate
3. Cannot hold Real Estate License

Answer 260

Real Estate Commissioner

(Real Estate Code/Article 1 - ADRE) -

1. Appointed by Governer
2. Qualifications: 3 yrs Admin and 5 yrs Real Estate
3. Cannot hold Real Estate License

Chap 15

Question 261

(Real Estate Code/Article 1 - ADRE)

Real Estate Commissioner’s duties (PAMI):

1. Prom______: Commissioner’s Rules (by Public Process)
2. A____: Bo__s/Records of L_____
3. M_____: Daily Op_____ ADRE Dept (hire/fire)
4. In______: Com_____ against licensees

a) Commissioner can Sub____ documents
b) May apply to Sup____ Court - Compel Agent Comply with subpoena

Answer 261

(Real Estate Code/Article 1 - ADRE)

Real Estate Commissioner’s duties (PAMI):

1. Promulgate: Commissioner’s Rule (by Public Process)
2. Audit: Books/Records of Licensees
3. Manage: Daily Operation ADRE Dept (hire/fire)
4. Investigate: Complaints against licensees

a) Commissioner can Subpoena docs
b) May apply to Superior Court - Compel Agent Comply with subpoena

Chap 15

Question 262

This falls under what?

Real Estate Advisory Board (10) - (Qtrly Meetings/No Money):

1. Gov____ Appointed and holds Q____ Mtgs
2. Real Estate Brokers __ Members
3. Subdividers __ Members
4. Real Estate Residential __ Members - in biz last __ yrs
5. Multi-Family Residential 1 Member - In biz last 5 yrs
6. Public Members __ Members

Answer 262

(Real Estate Code/Article 1 - ADRE)

Real Estate Advisory Board (10) - (Qtrly Meetings/No Money):

1. Governor Appointed and holds Quarterly Mtgs
2. Real Estate Brokers 2 Members
3. Subdividers 2 Members
4. Real Estate Residential 2 Members - in biz last 5 yrs
5. Multi-Family Residential 1 Members - in biz last 5 yrs
6. Public Members 3 Members

Chap 15

Question 263

Gives the state right to license brokers and sales people.

Answer 263

(Real Estate Code/Article 2 - Licensing)

Police Power -

Gives the state right to license brokers and sales

Chap 15

Question 264

Real Estate Broker: Qualifications:

1. Licensed in AZ - _yrs - (In past _yrs) - or elsewhere
2. Broker License Course - __hrs - (In past 10yrs)
3. Pass - Sc____ and S____ Exam

Answer 264

Real Estate Broker: Qualifications:

(Real Estate Code/Article 2 - Licensing)

1. Licensed in AZ - 3yrs - (In biz past 5yr) - or elsewhere
2. Broker License Course - 90 hrs - (In past 10yrs)
3. Pass - School/State Exam

Chap 15

Question 265

Real Estate Broker (Requirements):

1. Definite Place of Business or Change of Location - Notify C________
2. Failure to Notify Commissioner - Will C____ Broker License/Agent License
3. Branch Offices (S______ License) - Managed by Licensed Broker or Agent
4. Broker Displays - Broker L____ and F___ Housing S___

Answer 265

Real Estate Broker (Requirements):

(Real Estate Code/Article 2 - Licensing)

1. Definite Place of Business or Change of Location - Notify Commissioner
2. Failure to Notify Commissioner - Will Cancel Broker License/Agent License
3. Branch Offices (Separate License) - Managed by Licensed Broker or Agent
4. Broker Displays - Broker License and Fair Housing Sign

Chap 15

Question 266

(Real Estate Code/Article 2 - Licensing)

If Broker cannot act in 24 hours (Process Is) -

Broker may designate L_____ or Designated Br____ - for __days max

Answer 266

(Real Estate Code/Article 2 - Licensing)

If Broker cannot act in 24 hours (Process Is) -

Broker may designate Licensee or Designated Broker - For 30 days max

Chap 15

Question 267

(Real Estate Code/Article 2 - Licensing)

Real Estate Salesperson - Qualifications

1. __ yrs old
2. Licensing Course - __ hours (last 10 years)
3. Pass - Sch___ and St____ Exam
4. License - Broker He__ and Avail for Rev___
5. DRE - H___ Form/Sever Form

Answer 267

Real Estate Salesperson -

(R eal Estate Code/Article 2 - Licensing)

Real Estate Salesperson - Qualifications

1. 18 yrs old
2. Licensing Course - 90 hours (last 10 years)
3. Pass - School/State Exam
4. License - Broker Held/Avail for Review
5. DRE - Hire Form/Sever Form

Chap 15

Question 268

Brokers and Salespersons - Can have License Issued To

1. Prof_____ Ltd L______ Company (PLLC) or
2. Prof______ C______ (PC)

Answer 268

(Real Estate Code/Article 2 - Licensing)

Brokers and Salespersons - Can have License Issued To

1. Professional Ltd Liability Company (PLLC) or
2. Professional Corp (PC)

Chap 15

Question 269

(Real Estate Code/Article 2 - Licensing)

Simultaneously Employ with Another Broker

1. Cem_____ Broker or
2. Mem______ Ca___ground Broker

Answer 269

(Real Estate Code/Article 2 - Licensing)

Simultaneously Employ with Another Broker

1. Cemetery Broker or
2. Membership Campground Broker

Chap 15

Question 270

(Real Estate Code/Article 2 - Licensing)

Individuals - RE License (Not Required) -

1. Pe____ or C____ Officers (B____, S___, Le____, R_____ or Exchanging their Own Property.
2. Attorney-__-F___ - Isolated Transaction
3. Attorney at L__ - in Perf______ Duties
4. BK Court Referee - by C____ O____
5. Trustee - selling under D___ of T_____
6. Go______ - in Performance Duties
7. Natural Person Acts as Property Manager - O__ Commercial Property
8. Manager - Apts (1 Location during W_____)
   
   1. May receive Performance Bonus
   2. Bonus cannot exceed 1/2 salary - only _x month
9. Broker Admin - Cl____, Ac____, Book____, Ad____

Answer 270

(Real Estate Code/Article 2 - Licensing)

Individuals - RE License (Not Required) -

1. Persons or Corp Officers (Buying, Selling, Leasing, Renting or Exchanging their “Own Property.”
2. Attorney-in-Fact - Isolated Transaction
3. Attorney at Law - in Performance Duties
4. BK Court Referee - by Court Order
5. Trustee - selling under Deed of Trust
6. Government - in Performance Duties
7. Natural Person Acts as Property Manager - One Commercial Property
8. Manager - Apts (1 location during Workday)
   
   1. May receive Performance Bonus
   2. Bonus cannot exceed 1/2 salary - only 1x month
9. Broker Admin - Clerical, Acctg, Bookkeeper, Admin

Chap 15

Question 271

Activation of License -

1. Broker/Agents Licensed - __ year from Ex___nation Date to become Licensed under Broker
2. License Active for - __yrs - (from activation month end)
3. Agent - ___hr Course/_hrs Contract Writing
4. Broker - __hr Course/Broker M_____ Clinics

Answer 271

(Real Estate Code/Article 2 - Licensing)

Activation of License -

1. Broker/Agents Licensed - 1 year from Examination Date to become Licensed under Broker
2. License Active for - 2 yrs - (from activation month end)
3. Agent - 90hr Course/6hrs Contract Writing
4. Broker - 90hr Course/Broker management clinics

Chap 15

Question 272

Death of Broker

Sp____, Next of K__, Exe____ - May be issued __ day Temp Broker License.

Answer 272

(Real Estate Code/Article 2 - Licensing)

Death of Broker

Spouse, Next of Kin, Executor - 90 day Temp Broker License.

Chap 15

Question 273

Broker (All Monies) Immediately In -

1. Neutral Es____ Account; OR
2. T____ Fund - F_____ Insured Dep_____ located in Arizona.
3. Brokers in Arizona - “Not Required” to maintain a T_____ A______

Answer 273

(Real Estate Code/Article 3 - Regulation)

Broker (All Monies) Immediately In -

1. Neutral Escrow Account; OR
2. Trust Fund - Federally Insured Depository located in Arizona
3. Brokers in Arizona - “Not Required” to maintain a Trust Account

Chap 15

Question 274

Trust Account Requirements:

1. Deposits Must be made by d____ sl__
2. Receipts shall: (ID Tran_____, D___, A____, N_____)
3. Broker’s Name - N___ Not Ap____ on Receipts
4. No Commingling - Cl____ Funds with Br____ Funds
5. Complete records in M___ Bra___ O____
6. Per (GAAP): Desc_____ Receipt, Disbur____ Ledger, and Cl____ Ledger
7. Broker - Reconcile C____ L____ - Balance M_____
8. Remove Interest Earned - Every __ months
9. Not Commingling: If Not in excess $______ deposits to keep trust account open.

Answer 274

(Real Estate Code/Article 3 - Regulation)

Trust Account Requirements:

1. Deposits Must be made by Deposit Slips
2. Receipts shall: (ID Transaction, Date, Amount, Names)
3. Broker’s Name - Need Not Appear Receipts
4. No Commingling - Clent’s Funds with Broker’s Funds
5. Complete records - in Main Branch Office
6. Per (GAAP): Descriptive Receipt, Disbursement Ledger, and Client Journal Ledger
7. Broker - Reconcile Client Ledger and Balance- Monthly
8. Remove Interest Earned - Every 12 months
9. Not Commingling: If Not in excess $3000 deposits to keep trust account open.

Chap 15

Question 275

Trust Accounts Receipts shall contain -

1. ID each Tr______,
2. D___,
3. A_____,
4. N_____
5. Brokers Name - N__ Req____

Answer 275

(Real Estate Code/Article 3 - Regulation)

Trust Accounts Receipts shall contain -

1. ID each transaction,
2. Date,
3. Amount,
4. Names
5. Brokers Name - Not Required

Chap 15

Question 276

Trust Accounts (GAAP requires) -

1. Des_____ Receipt
2. Disb______ J_____
3. Cl___ L_____

Answer 276

(Real Estate Code/Article 3 - Regulation)

Trust Accounts (GAAP requires) -

1. Descriptive Receipt
2. Disbursement Journal
3. Client Ledger

Chap 15

Question 277

In Trust Accounts - Broker reconciles “Client Ledgers” how often?

Answer 277

(Real Estate Code/Article 3 - Regulation)

Trust Accounts - Broker Reconcile “Client Ledgers”

Monthly

Chap 15

Question 278

In Trust Account how often must broker remove interest earned from client ledger balance?

Answer 278

(Real Estate Code/Article 3 - Regulation)

Trust Account Client Ledger (Remove Interest Earned) -

Every 12 months

Chap 15

Question 279

Broker Records -

1. Broker Records From Closing or Termination - _yrs
2. Earnest Money (C__, Ch___, Prom____ Note) Must state in purchase contract.
3. Broker Transaction Folders - Chro_____ Log or other systematic manner

Sales Transaction Folders include:

1. Monies - Confirmation H___ Properly
2. Copies: S___ Co____, Es____ Receipts, Cl___ St____, Escrow Ins____, List Ag____, Em____ Ag_____

All Contracts (Except Res Lease Agmt) must:

1. Broker Review - Within __ business days.
2. Contract Still V___ even if Broker fails to review.

Offers Rejected

1. Rejected Offer (Copy/Orig) must retain for - _yr
2. Binding Offer (Rejected) must be kept - __yrs

Answer 279

Broker Records - (Real Estate Code/Article 3 - Regulation) -

1. Broker Records From closing or termination - 5yrs
2. Earnest Money (Cash,Check,Promissory Note) Must state in purchase contract.
3. Broker Transaction Folders - Chronological Log or other systematic manner

Sales Transaction Folders include:

1. Monies - Confirmation Handled Properly
2. Copies: Sales Contracts, Escrow Receipts, Closing Statements, Escrow Instructions, List Agreement, Employment Agreement

All Contracts (Except Res Lease Agmt) must:

1. Broker Review - Within 10 business days
2. Contrac Still Valid - Even if Broker fails to review.

Offers Rejected

1. Rejected Offer (Copy/Orig) must retain for - 1 yr
2. Binding Offer (Rejected) must be kept - 5 yrs

Chap 15

Question 280

Broker to Keep Records - Sales Transaction Folder (Requirements) -

1. Sales C_____,
2. Escrow Ins____ and R_____,
3. Cl_____ Statments,
4. L___ Agreement,
5. Em_____ Agreements

Answer 280

(Real Estate Code/Article 3 - Regulation)

Broker to Keep Records - Sales Transaction Folder (Requirements) -

1. Sales Contracts,
2. Escrow Instructions and Receipts,
3. Closing Statements,
4. List Agreement,
5. Employment Agreements

Chap 15

Question 281

Except for residential lease agreements, all contracts must be reviewed within ___days by broker

Answer 281

(Real Estate Code/Article 3 - Regulation)

Broker Contract Review (Required)

All Contracts (Except Res Lease) - 10 days.

Chap 15

Question 282

Rejected Purchase Offer (Orig/Copy) retained by broker how long?

Answer 282

Rejected Purchase Offer (Orig/Copy) Retained -

1 year

Chap 15

Question 283

Binding Contract - Rejected Offer must be held for?

Answer 283

(Real Estate Code/Article 3 - Regulation)

Binding Contract Retained (Rejected Offer) -

5 years

Chap 15

Question 284

Contract for hiring broker to buy or sell real estate for compensation is called?

Ex: Listing and Buyer Broker Agreements.

Answer 284

(Real Estate Code/Article 3 - Regulation)

Employment Agreements -

Contract or hiring broker to buy** or **sell real estate for compensation is called?

Ex: Listing and Buyer Broker Agreements.

Chap 15

Question 285

Employment Agreements (Requirements) -

1. Be written in Unam______ (one interpretation) language
2. Mat____ Fa___ - set forth all
3. Dur_____ - Inception / Ex_____ dates
4. Signed - by A_ P____

Answer 285

(Real Estate Code/Article 3 - Regulation)

Employment Agreements (Requirements) -

1. Be written in unambiguous (one interpretation) language
2. Material Facts - set forth all
3. Duration: Inception / Expiration dates
4. Signed - by all parties

Unambigous - not open to more than one interpretation

Chap 15

Question 286

Actions by Agents to Collect Compensation

1. In Arizona C____ - Action used to “Collect Comp______,” but agent must prove they were licensed.
2. Commissioner s___ not entertain complaints regarding civil disputes for “Collecting C_______.”

Answer 286

(Real Estate Code/Article 3 - Regulation) .

Actions by Agents to Collect Compensation

1. In Arizona Civil Courts Action - To “Collect Compensation,” but agent must prove they were licensed.
2. Commissioner - shall not entertain complaints for “Collecting Compensation.”

Chap 15

Question 287

Denial, Suspension, or Revocation of licenses

1. Statute - __ reasons license can be D_____.
2. If Disciplinary Action - Agent May used an A_____.
3. Commissioner may issue C__ and D___ Or___ to someone found violating any “Act, Practice or Transaction” required by Statute of Commissioner’s Rules.

Answer 287

(Real Estate Code/Article 3 - Regulation)

Denial, Suspension, or Revocation of licenses

1. Statute** - 30 reasons license can be **denied.
2. If Disciplinary Action - Agent may use an Attorney
3. Commissioner**“**Cease and Desist Order” to someone found violating any “Act, Practice or Transaction” required by Statute of Commissioner’s Rules.

Chap 15

Question 288

This is issued by Commissioner if someone is found violating any “Act, Practice or Transaction,” required by statue of Commissioner’s rules?

Answer 288

(Real Estate Code/Article 3 - Regulation) -

Cease and Desist Order

This is issued by Commissioner if someone is found violating any “Act, Practice or Transaction,” required by statue of Commissioner’s rules

Chap 15

Question 289

MAY NOT perform real estate services unless they enter into a written cooperation agreement with a AZ broker who will take liability for their real estate services.

Answer 289

(Real Estate Code/Article 3 - Regulation) -

Out-of State Brokers -

MAY NOT perform real estate services unless they enter into a written cooperation agreement with a AZ broker who will take liability for their real estate services.

Chap 15

Question 290

Real Estate Brokers (Compensation)

1. Can Real Estate Brokers receive compensation from anyone?

Real Estate Brokers Pay:

1. Their Own A____ and Ass____ B_____
2. Other Li___ Designated Br_____

Answer 290

(Real Estate Code/Article 3 - Regulation)

Real Estate Brokers (Compensation)

1. Yes - Can receive compensation from anyone

Real Estate Brokers Pay:

1. Their own agents and associated brokers
2. Other licensed designated brokers

Chap 15

Question 291

Can real estate agents or associate brokers pay anyone one?

Answer 291

(Real Estate Code/Article 3 - Regulation)

Real Estate Agents / Associate Brokers (Pay) -

NO ONE!!!

Chap 15

Question 292

Restrictions on Compensation

Escrow Companies (Disburse Commissions) by:

Only by Br____’s Instructions may commission be disbursed to Agents and Associate Brokers directly.

Answer 292

(Real Estate Code/Article 3 - Regulation) - Restrictions on Compensation

Escrow Companies (Disburse Commissions) by:

Only by Broker’s Instructions may commission be disbursed to Agents and Associate Brokers directly.

Chap 15

Question 293

Can an unlicensed person receive a commission?

Answer 293

(Real Estate Code/Article 3 - Regulation)

Unlicensed Person Commission -

CANNOT RECIEVE A COMMISSION!!!!!

Chap 15

Question 294

An unlicensed person acting as a licensee is guilty of what?

Answer 294

(Real Estate Code/Article 3 - Regulation)

Unlicensed Person (Act as Licensee) -

GUILTY OF FELONY!!!

Chap 15

Question 295

Unlicensed Assistants (Requirements) -

1. Licensed Broker - May Em___ Unlicensed Assts
2. Duties that Require License - May Not be P_____
3. On Sale of Property - M__ N__ be compensated
4. Sub______ Policy Statement (SPS) - Regulates Activities of Unlicensed Assts

Answer 295

(Real Estate Code/Article 3 - Regulation)

Unlicensed Assistants (Requirements) -

1. Licensed Broker - May Employ Unlicensed Asst
2. Duties (Require License) - May Not be Perform
3. On Sale of Property - MAY NOT be compensated
4. Substantive Policy Statement (SPS) - Regulates Activities of Unlicensed Asst

Chap 15

Question 296

Real Estate Recovery Fund:

Protect Parties harmed due to R____ on an agent where agent:

1. Acts (Requiring License) - Performed with N_ Li____
2. Fr___ or Misr_______ (Committed) - while acting as a principal in the purchase or sale of real estate.

Answer 296

(Real Estate Code/Article 5)

Real Estate Recovery Fund:

Protect parties harmed due to reliance on an agent where agent:

1. Acts (Requiring License) - Performed with No License
2. Fraud/Misrepresentation (Committed) - while acting as a principal in the purchase or sale of real estate.

Chap 15

Question 297

Real Estate Recovery Fund (Agent Lawsuit Requirements) -

1. Lawsuits filed - within _ yrs
2. Commissioner must be notified - within __days of filing lawsuit

Answer 297

(Real Estate Code/Article 5)

Real Estate Recovery Fund (Agent Lawsuit Requirements) -

1. Lawsuits filed - within 5 yrs
2. Commissioner must be notified - within 45 days of filing lawsuit

Chap 15

Question 298

Real Estate Recovery Fund (Payouts):

1. Recovery Fund Payment - By “C__ Or__,”
2. Pymts (Only After) - “C___ J____ Uncollected” against agent
3. Per Action Cause - $__,000
4. Per Agent - $__,000
5. License Terminated - Until F___ P___ B___

Answer 298

(Real Estate Code/Article 5)

Real Estate Recovery Fund (Payouts):

1. Recovery Fund Payment - By “court order,”
2. Pymts (Only After) - “Civil Judgement Uncollected “ against agent
3. Per Action Cause - $30,000
4. Per Agent - $90,000
5. License Terminated - Until Fund Paid Back.

Chap 15

Question 299

Real Estate Recovery Fund (Facts):

1. Per Cause of Action - $__,000 max
2. Per Agent - $__,000 max
3. Lawsuit Filing (Timeline) - __ years
4. Commissioner Notified Lawsuit By - __ days
5. Until Funds Paid Back - Lic___ T____

Answer 299

(Real Estate Code/Article 5)

Real Estate Recovery Fund (Facts):

1. Per Cause of Action - $30,000 max
2. Per Agent - $90,000 max
3. Lawsuit Filing (Timeline) - 5 years
4. Commissioner Notified Lawsuit By - 45 days
5. Until Funds Paid Back - License Terminated

Chap 15

Question 300

Real Estate Recovery Fund (Licenses):

1. License Automatically Terminated - upon Pay__ of Fu___s.
2. Licenses Reinstated - after F___ P__ B__ with interest.
3. Licensee Claim against Recovery Funds.- C____ Be Made

Answer 300

(Real Estate Code/Article 5)

Real Estate Recovery Fund (Licenses):

1. Licenses Automatically Terminated - upon payout of Funds.
2. Licenses Reinstated - after Funds Paid Back with Interest
3. Licensee Claim against Recovery Funds.- CANNOT BE MADE

Chap 15

Question 301

Real Estate Recovery Fund (Below $600,000 on June 30th):

When Originating/Renewing License, if Funds Dip Below $600K on June 30th, fees are:

1. Broker pays $___
2. Salesperson pays $__

Answer 301

(Real Estate Code/Article 5)

Real Estate Recovery Fund (Below $600,000 on June 30th):

When Originating/Renewing License, if Funds Dip Below $600K on June 30th, fees are:

1. Broker pays $20
2. Salesperson pays $10

Chap 15

Question 302

Someone who requires no real estate license, holds a specific power of attorney and

Acting in a “Isolated Transaction” is called?

Answer 302

Attorney in Fact -

Someone who requires no real estate license, holds a specific Power of Attorney and acting in a “Isolated Transaction”

Chap 15

Question 303

Group of licensees, headed by a lead agent, that works for a brokerage company. They market themselves but must include broker’s company name in all marketing.

Answer 303

Real Estate Team -

Group of licensees, headed by a lead agent, that works for a brokerage company. They market themselves but must include broker’s company name in all marketing.

Chap 15

Question 304

Activation of License -

1. Broker/Agents Licensed - __year from date of Ex____ to become licensed under broker
2. License Active for - __yrs - (from activation month end)

Answer 304

(Real Estate Code/Article 2 - Licensing)

Activation of License -

1. Broker/Agents Licensed - 1 year from date of Examination to become licensed under broker
2. License Active for - 2 yrs - (from activation month end)

Chap 15

Question 305

Activation and Renewal of License (School Req’d)

1. Agent - ___hr Course/_hrs Contract Writing
2. Broker - __hr Course/Broker M_____ Clinics
3. Ass Broker/Agent - __ hrs Cont Ed - Every __ yrs
4. Designated/Ass Broker (Delegated Auth) and Self Employed - __ hrs - Cont Ed - plus __ mgmt clinics - Every __yrs

Answer 305

(Real Estate Code/Article 2 - Licensing)

Activation and Renewal of License (School Req’d) -

1. Agent - 90hr Course/6hrs Contract Writing
2. Broker - 90hr Course/Broker management clinics
3. Ass Broker/Agent - 24 hrs Cont Ed - Every 2 yrs
4. Designated/Ass Broker (Delegated Auth) and Self Employed - 30 hrs - Cont Ed - plus 3 mgmt clinics - Every 2 yrs

Chap 15

Question 306

Activation of License (School Required)

1. Agent - ___hr Course/_hrs Contract Writing
2. Broker - __hr Course/Broker M_____ Clinics

Answer 306

(Real Estate Code/Article 2 - Licensing)

Activation of License (School Required) -

1. Agent - 90hr Course/6hrs Contract Writing
2. Broker - 90hr Course/Broker management clinics

Chap 15

Question 307

Activation of License -

1. Broker/Agents Licensed - __year from Ex____ Date to become Licensed under Broker
2. License Active for - __yrs - (from activation month end)

Answer 307

(Real Estate Code/Article 2 - Licensing)

Activation of License -

1. Broker/Agents Licensed - 1 year from Examination Date to become Licensed under Broker
2. License Active for - 2 yrs - (from activation month end)

Chap 15

Question 308

Trust Account Records and Accounting

1. Complete records in M___ Bra___ O____
2. Per (GAAP): Desc____ Receipt, Disb_____ Ledger, and Cl____ Ledger
3. Broker - Reconcile C____ L____ - Balance M_____
4. Remove Interest Earned - Every __ months

Answer 308

(Real Estate Code/Article 3 - Regulation)

Trust Account Records and Accounting

1. Complete records - in Main Branch Office
2. Per (GAAP): Descriptive Receipt, Disbursement Ledger, and Client Journal Ledger
3. Broker - Reconcile Client Ledger and Balance- Monthly
4. Remove Interest Earned - Every 12 months

Chap 15

Question 309

Trust Account Deposits and Receipts

1. Deposits Must be made by D____ Sl__
2. Receipts shall: (ID Tran_____, D___, A____, N_____)
3. Broker’s Name - Need Not Ap___ on Receipts

Answer 309

(Real Estate Code/Article 3 - Regulation)

Trust Account Deposits and Receipts

1. Deposits Must be made by Deposit Slips
2. Receipts shall: (ID Transaction, Date, Amount, Names)
3. Broker’s Name - Need Not Appear Receipts

Chap 15

Question 310

Trust Account Commingling

1. No Commingling - Cl____ Funds with Br____ Funds
2. Not Commingling: If Not in Excess $______ deposits to keep trust account open.

Answer 310

(Real Estate Code/Article 3 - Regulation)

Trust Account Commingling

1. No Commingling - Clent’s Funds with Broker’s Funds
2. Not Commingling: If Not in Excess $3000 deposits to keep trust account open.

Chap 15

Question 311

Real Estate Recovery Fund (Payouts):

1. Recovery Fund Payment - By “C__ Or__,”
2. Pymts (Only After) - “Civ__ J____ Uncollected” against agent
3. Per Action Cause - $__,000
4. Per Agent - $__,000
5. License Terminated - Until F___ P___ B___

Answer 311

(Real Estate Code/Article 5)

Real Estate Recovery Fund (Payouts):

1. Recovery Fund Payment - By “Court Order,”
2. Pymts (Only After) - “Civil Judgement Uncollected” against agent
3. Per Action Cause - $30,000
4. Per Agent - $90,000
5. License Terminated - Until Fund Paid Back.

Chap 15

Question 312

Real Estate Recovery Fund (Facts):

1. Per Cause of Action - $__,000 max
2. Per Agent - $__,000 max
3. Lawsuit Filing (Timeline) - __ years
4. Commissioner Notified Lawsuit By - __ days
5. Until Funds Paid Back - Lic___ T____

Answer 312

(Real Estate Code/Article 5)

Real Estate Recovery Fund (Facts):

1. Per Cause of Action - $30,000 max
2. Per Agent - $90,000 max
3. Lawsuit Filing (Timeline) - 5 years
4. Commissioner Notified Lawsuit By - 45 days
5. Until Funds Paid Back - License Terminated

Chap 15

Question 313

Broker Sign At Offices

Must have a sign at the “e_______” to the Broker’s O____. If the broker C_____ Lo____ the sign must be R_____ immediately

Answer 313

Broker Sign At Offices

Must have a sign at the “entrance” to the Broker’s Offices. If the broker Changes Locations the sign must be Removed immediately

Chap 15

Question 314

Renewal of Broker Licenses

1. Grace Period - __ months after Expiration
2. Ass Broker/Agent - __ hrs Cont Ed - Every __ yrs
3. Designated/Ass Broker (Deligated Auth) and Self Employed - __ hrs - Cont Ed - plus __ broker mgmt clinics - Every __yrs

Answer 314

Renewal of Broker Licenses

1. Grace Period - 12 months after Expiration
2. Ass Broker/Agent - 24 hrs Cont Ed - Every 2 yrs
3. Designated/Ass Broker (Deligated Auth) and Self Employed - 30 hrs - Cont Ed - plus 3 broker mgmt clinics - Every __yrs

Chap 15

Question 315

Denial, Suspension, or Revocation of licenses

1. Statute - __ reasons License can be D_____.
2. Disciplinary Action - Agent May used an A_____.
3. Commissioner may issue C__ and D___ Or___ to someone found Vio_____ any “A__, Pr____ or T________“ required by Statute of Commissioner’s rules.

Answer 315

(Real Estate Code/Article 3 - Regulation)

Denial, Suspension, or Revocation of licenses

1. Statute - 30 reasons License can be denied.
2. Disciplinary Action - Agent may use an Attorney
3. Commissioner**“**Cease and Desist Order” to someone found violating any “Act, Practice or Transaction” required by Statute of Commissioner’s rules.

Chap 15

Question 316

Renewal License (Cont Ed Required)

1. Ass Broker/Agent - __ hrs Cont Ed - Every __ yrs
2. Designated/Ass Broker (Delegated Auth) and Self Employed - __ hrs - Cont Ed - plus __ mgmt clinics - Every __yrs

Answer 316

(Real Estate Code/Article 2 - Licensing)

Renewal License (Cont Ed Required) -

1. Ass Broker/Agent - 24 hrs Cont Ed - Every 2 yrs
2. Designated/Ass Broker (Delegated Auth) and Self Employed - 30 hrs - Cont Ed - plus 3 mgmt clinics - Every 2 yrs

Chap 15

Question 317

AZ Constitution - Article XXVI (Article 26) -

Gives licensees “Aut___” to prepare all types of Real Estate C______, but only when preparation incidental to their function as agent (N_ Ch___)

1. Statute of Frauds: Contracts in Writing to be Enf______.
2. Actual Laws (Articles 1-__, Title 3_, Chapter __)
3. Commissioner Rules: Not Law but they have F___ and Ef___ of Law on Licensees
4. Sub_____ Policy S____- Clarify ADRE Policies
5. Case Law: Legal Cases that Est______ Law

Answer 317

AZ Constitution - Article XXVI (Article 26) -

Gives licensees “Authority” to prepare all types of Real Estate Contracts, but only when preparation incidental to their function as agent (No Charge)

1. Statute of Frauds: Contracts in Writing to Enforce
2. Actual Laws (Articles 1-10, Title 32, Chapter 20)
3. Commissioner Rules: Not Law but they have Force and Effect of Law on Licensees
4. Substantive Policy Stmts: Clarify ADRE Policies
5. Case Law: Legal Cases that Establishes Law

Chap 15

Question 318

AZ Constitution - Article _____ -

Gives licensees Authority to prepare all types of real estate Contracts, but only when preparation incidental to their function as agent (No Charge)

1. Statute of Frauds: Contracts in writing
2. Actual Laws (Articles 1-10, Title 32, Chapter 20)

Answer 318

AZ Constitution - Article XXVI (Article 26) -

Gives licensees Authority to prepare all types of real estate Contracts, but only when preparation incidental to their function as agent (No Charge)

1. Statute of Frauds: Contracts in writing
2. Actual Laws (Articles 1-10, Title 32, Chapter 20)

Chap 15

Question 319

AZ Constitution - Article ____

Gives licensees Authority to prepare all types of real estate Contracts, but only when preparation incidental to their function as agent (No Charge)

1. Commissioner Rules: Not Law but they have Force and Effect of Law on Licensees
2. Substantive Policy Stmts: Clarify ADRE Policies
3. Case Law: Legal Cases that Establishes Law

Answer 319

AZ Constitution - Article XXVI (Article 26) -

Gives licensees Authority to prepare all types of real estate Contracts, but only when preparation incidental to their function as agent (No Charge)

1. Commissioner Rules: Not Law but they have Force and Effect of Law on Licensees
2. Substantive Policy Stmts: Clarify ADRE Policies
3. Case Law: Legal Cases that Establishes Law

Chap 15

Question 320

(SPS) Subst______ P____ Statements

Established to clarify ADRE policies on Statute and Rules?

Answer 320

(SPS) Substantive Policy Statements:

Established to clarify ADRE policies on Statute and Rules.

Chap 15

Question 321

(Real Estate Code/Article 2 - Licensing)

Real Estate B_____ Qualifications:

1. Licensed in AZ - 3yrs expertise - (In biz past 5yr) - or elsewhere
2. Broker License Course - 90 hrs - (In past ___yrs)
3. Pass - School/State Exam

Answer 321

(Real Estate Code/Article 2 - Licensing)

Real Estate Broker Qualifications:

1. Licensed in AZ - 3yrs expertise - (In biz past 5yr) - or elsewhere
2. Broker License Course - 90 hrs - (In past 10yrs)
3. Pass - School/State Exam

Chap 15

Question 322

Real Estate Broker: Qualifications:

1. Licensed in AZ - _yrs - (In past _yrs) - or elsewhere
2. Broker License Course - __hrs - (In past 10yrs)
3. Pass - Sc____ and S____ Exam

Answer 322

Real Estate Broker: Qualifications:

(Real Estate Code/Article 2 - Licensing)

1. Licensed in AZ - 3yrs - (In biz past 5yr) - or elsewhere
2. Broker License Course - 90 hrs - (In past 10yrs)
3. Pass - School/State Exam

Chap 15

Question 323

Income remaining after the Operating Expenses (deducted from) Effective Gross Income.

Answer 323

Net Operating Income -

Income remaining after the Operating Expenses (deducted from) Effective Gross Income.

Chap 14

Question 324

Detailed accounting prepared by escrow, shows:

1. Cashed received
2. All charges debit/credit

Answer 324

Closing Statement

Detailed accounting prepared by escrow shows:

1. Cashed received
2. All charges debit/credit

Chap 14

Question 325

Proportional division or distribution of funds (30 days used)

Answer 325

Prorations -

Proportional division or distribution of funds (by 30 dys used)

Chap 14

Question 326

Owner pays in Arrears - Debit or Credit?

1. Real Estate Taxes (Arrears) - Seller ___ Buyer ____
2. Interest on Loans (Arrears) - Seller ___ Buyer ____
3. Water Bills (Arrears) - Seller ____ Buyer ____

Arrears - Means overdue payment

Answer 326

Owner pays in Arrears: (Debit Seller)

Seller Debit / Buyer Credit

1. Real Estate Taxes (Arrears) - Seller Debit / Buyer Credit
2. Interest on Loans (Arrears) - Seller Debit / Buyer Credit
3. Water Bills (Arrears) - Seller Debit / Buyer Credit

Arrears - Means overdue payment

Chap 14

Question 327

Owner pays in Advance

1. Pre-paid Taxes - Seller ____ / Buyer _____
2. Insurance Premiums (Advance) - Seller ____ / Buyer ____
3. HOA (Advance) - Seller ______ / Buyer _____
4. Propane (Advance) - Seller ______ / Buyer ______

Answer 327

Owners pays in Advance: (Seller Credit)

1. Pre-paid Taxes (Advance) - Seller Credit / Buyer Debit
2. Insurance Premiums (Advance) - Seller Credit / Buyer Debit
3. HOA (Advance) - Seller Credit / Buyer Debit
4. Propane (Advance) - Seller Credit / Buyer Debit

Chap 14

Question 328

Rental Properties:

1. Prorated Rent - Seller ____ / Buyer _____
2. Security Deposits - Seller _____ / Buyer _____

Answer 328

Rental Properties:

1. Prorated Rent - (Seller Debit / Buyer Credit)
2. Security Deposit - (Seller Debit /Buyer Credit)

Chap 14

Question 329

Closing Cost: credit/debit to who (soley)?

1. Loan Origination Fee - Buyer ______
2. ALTA Title Insurance - Buyer _____
3. Owner Policy - Seller _____
4. Commission - Seller ______
5. Escrow Fee - Seller _____/ Buyer _____

Answer 329

Closing Cost (debit/credit):

1. Loan Origination - Buyer Debit
2. ALTA Title Insurance - Buyer Debit
3. Owner Policy - Seller Debit
4. Commissions - Seller Debit
5. Escrow Fee (Seller/Buyer Debits)

Chap 14

Question 330

All Closing Cost (Debit/Credit)

1. Sales Price - Seller _____ Buyer _____
2. *Earnest Money - Buyer _____
3. *New Loan - Buyer _____
4. Slr Carryback - Seller ____ Buyer _____
5. Rent Collected - Seller _____ Buyer ____
6. Security Deposits - Seller _____ Buyer _____
7. Taxes (Arrears) - Seller ____ Buyer _____
8. Water (Arrears) - Seller _____ Buyer _____
9. **Commission - Seller _____
10. **Owner Title - Seller _____
11. **ALTA - Buyer _____
12. **Loan Orig Fee - Buyer _____
13. **Impounds - Buyer ______
14. Fuel Reserves - Seller ___ Buyer _____
15. Prepaid Tax - Seller _____ Buyer ____
16. Escrow Fees - Seller _____ Buyer ____

Answer 330

All Closing Cost (Debit/Credit)

1. Sales Price: (Credit Seller/Debit Buyer)
2. *Earnest Money: (Credit Buyer)
3. *New Loan: (Credit Buyer)
4. Seller Carryback: (Debit Seller/Credit Buyer)
5. Rent Prorated: (Debit-Seller/Credit Buyer)
6. Security Deposit: (Debit Seller/Credit Buyer)
7. Taxes (Arrears): (Debit Seller/Credit Buyer)
8. Water (Arrears) (Debit Seller/Credit Buyer)
9. **Commission: (Debit Seller)
10. **Owner Title: (Debit Seller)
11. **ALTA: (Debit Buyer)
12. **Loan Orig Fee - (Debit Buyer)
13. **Impounds: (Debit Buyer)
14. Fuel Reserves: (Credit Seller/Debit Buyer)
15. Prepaid Tax (Credit Seller/Debit Buyer)
16. Escrow Fees: (Debit Seller / Debit Buyer)

Question 331

Projected rent if property is 100% occupied is called?

• Contract Rent + Mrk Rent (Vacancies)

Answer 331

Gross Scheduled Income (Annual):

Projected rent if property is 100% occupied.

Contract Rent + Mkt Rent (Vacancies)

Chap 14

Question 332

Units not rented are called?

Answer 332

Vacancies -

Units not rented

Chap 14

Question 333

Rent which was owed by a tenant but not collected is?

Answer 333

Credit Losses -

Rent which was owed by a tenant but not collected

Chap 14

Question 334

Actual Income received after deducting Vacancies and Credit Losses from the Gross Scheduled Income

• Gross Schedule Income
• - Vacancies
• - Credit losses
• =

Answer 334

Effective Gross Income -

Actual Income received after deducting Vacancies and Credit Losses from the Gross Scheduled Income

• Gross Schedule Income
• • Vacancies
• • Credit losses
• = Effective Gross Income

Chap 14

Question 335

Income Property - Operating Expenses - Not Mortgage (PI) or Depreciation:

1. Pr___ Mgmt F___
2. R____
3. Main_____
4. Ut______
5. T___ and In______
6. Ad_______

Answer 335

Income Property - Operating Expenses - Not Mortgage (PI) or Depreciation):

1. Propery Mgmt Fees
2. Repairs
3. Maintenance
4. Utilities
5. Taxes and Insurance
6. Advertising

Chap 14

Question 336

The principal and interest payments on the loan.

Answer 336

Debt Service -

The principal and interest payments on the loan.

Chap 14

Question 337

Amount remaining after paying Operating Expenses and Debt Service and before Income Taxes. Formula:

• Gross Schedule Income
• - Vacancy and Credit Losses
• = Effective Gross Income
• Effective Gross Income - Operating Expenses
• = Net Operating Income (NOI)
• Net Operating Income - Debt Service (PI)
• = What? (Before Income Taxes)

Answer 337

Cash Flow (Before Income Taxes) -

Amount remaining after paying Operating Expenses and Debt Service and before Income Taxes

• Gross Schedule Income (Proj Rents 100%)
• - Vacancy (@ Market) and Credit Losses
• = Effective Gross Income
• Effective Gross Income - Operating Expenses
• = Net Operating Income (NOI)
• Net Operating Income - Debt Service (PI)
• = Cash Flow (Before Income Taxes)

Chap 14

Question 338

Income from salaries, wages, commissions, and interest.

Answer 338

Ordinary Income -

Income from salaries, wages, commissions, and interest.

Chap 14

Question 339

Income realized from the sale of an asset as a profit.

1. Short Term - Asset - L___ than _ year
2. Long Term - Asset - M___ than _ year

Answer 339

Capital Gain Income -

Income realized from the sale of an asset as a profit.

1. Short Term - Asset - 1 year or less
2. Long Term - Asset - more than 1 year

Chap 14

Question 340

Income “taxed” from an entity like LLC at level of individual (not at level of entity).

Answer 340

Pass-through Income -

Income “taxed” from an entity like LLC at level of individual (not at level of entity).

Chap 14

Question 341

Tax Deductions - for SFR Own Occupied/2nd Homes.

1. Real Property Taxes/Other Taxes - Upto to $_______ max deduction
2. Interest on Loans - Upto $_______ for Purchase and Improvements
3. Home Equity loan (Interest) - Is N__ D______.

Tax Deductions = Property Taxes and Loan Interest

Answer 341

Tax Deductions - for SFR Own Occupied/2nd Homes -

1. Real Property Taxes/Other Taxes - Upto $10,000 max deduction
2. Interest on Loans - Upto $750,000 for Purchase and Improvements
3. Home Equity loan (Interest) - Is Not Deductible.

Tax Deductions = Property Taxes and Loan Interest

Chap 14

Question 342

Capital Gain Excluded Amts -

Personal Residence Sale - Capital Gains Excluded from Taxes

1. Single - $_____ gain excluded
2. Married - $_____ gain excluded
3. Must be Owner Occupied - __yrs/In past __yrs.

Answer 342

Capital Gain (Excluded Amts) -

Personal Residence Sale - Capital Gains Excluded from Taxes:

1. Single - $250,000 gain excluded
2. Married $500,000 gain excluded
3. Must be Owner Occupied - 2 yrs/In past 5yrs.

Chap 14

Question 343

FIRPTA Foreign Investment In Real Property Tax Act

1. Federal Law which Non-R_____ Al___ must pay US Income T__ G___ from the S___ of US Real Property.
2. Escrow holds __% of sales price.
3. Buyer Could Be Liable - for S___’s T__, if not withheld.

Answer 343

FIRPTA Foreign Investment In Real Property Tax Act

1. Federal Law which Non-Residential Aliens must pay US Income Tax Gain from the Sale of US Real Property.
2. Escrow holds 15% of sales price.
3. Buyer Could Be Liable - for Seller’s Tax, if not withheld.

Chap 14

Question 344

Investment Property Tax Deductions -

1. O______ Ex_______
2. Int____ on Lo____
3. Cost Recovery (Depreciation):

• L___/Per____ SFR - No Dep_____
• Residential (Income) Property - ___ Yrs
• Non-Residential Property - ___ Yrs

1. Straight Line Depreciation: S____ Amt of “Depreciation” every year

Answer 344

Investment Property Tax Deductions -

1. Operating Expenses
2. Interest on Loans
3. Cost Recovery (Depreciation):

• Land/Personal SFR - No depreciation
• Residential Income Property - 27.5 Yrs -
• Non-Residential Property - 39 Yrs

1. Straight Line Depreciation: Same amount of “Depreciation” every year

Chap 14

Question 345

Allows “tax gain” to be deferred in future years.

Answer 345

1031 Exchanges:

Allows tax gain to be deferred in future years.

Chap 14

Question 346

Properties held for “Income or Investment” in an exchange?

Answer 346

Like Kind -

Properties held for “Income or Investment” in an exchange.

Chap 14

Question 347

One property is traded “Directly for Another” property.

All Exchanges - tax on gain is deferred

Answer 347

Simultaneous Exchange -

One property is traded“Directly for Another” property.

All Exchanges - tax on gain is deferred

Chap 14

Question 348

“New property Acquired” within specific time frames.

All Exchanges - tax on gain is deferred

Answer 348

Delayed Exchange -

“New property Acquired” within specific time frames.

All Exchanges - tax on gain is deferred

Chap 14

Question 349

“Unlike kind property” received in an exchange.

All Exchanges - tax on gain is deferred

Answer 349

Boot -

“Unlike kind property” received in an exchange

All Exchanges - tax on gain is deferred

Chap 14

Question 350

1031 Exchanges - Allows “tax gain” to be deferred into future.

1. Like Kind - In____ and Inv______ Properties.
2. Simultaneous Exchange - One Property “T____ Dir____ for A_____“ Property
3. Delayed Exchange - New Pro____ Ac____ within specific time frames.
4. Boot - Un____ K___ Pr_____ received in an exchange.

Answer 350

1031 Exchanges - Allows “tax gain” to be deferred into future.

1. Like Kind - Income/Investment Properties.
2. Simultaneous Exchange - One property “Traded Directly for Another” property
3. Delayed Exchange - “New Property Acquired” within specific time frames.
4. Boot - “Unlike Kind Property” received in an exchange.

Chap 14

Question 351

When new financing used by buyer, RESPA requires use of this document, which “details the terms of the loan”made to buyer.

Answer 351

TRID Closing Disclosure -

When new financing used by buyer, RESPA requires use of this document, which “details the term of the loan,” made to buyer.

Chap 14

Question 352

A reduction in the value of an asset with the passage of time, due in particular to wear and tear.

Note: Land/Personal Residence “C__ N___” be reduced in value.

Answer 352

Cost Recovery (Depreciation) -

A reduction in the value of an asset with the passage of time, due in particular to wear and tear.

Note: Land/Personal Residence “CAN NOT” be reduced in value.

Chap 14

Question 353

Income & Commerical Props - Depreciation -Cost Recovery Periods

1. Res Income Property - ___ yrs
2. Non-Residential Property - ___ yrs
3. Land/Personal SFR - __ yrs

Answer 353

Income & Commercial Props - Depreciation - Cost Recovery Periods

1. Res Income Property - 27.5 yrs
2. Non-Residential Property - 39 yrs
3. Land/Personal SFR - 0 yrs - No Depreciation

Chap 14

Question 354

Same amount recovery deductions on Investments every year is called?

Answer 354

Straight Line Depreciation -

Same amount of recovery deductions on Investments every year

Chap 14

Question 355

Closing Cost: Credit/Debit to one side only?

1. Loan Origination Fee - Buyer ______
2. ALTA Title Insurance - Buyer _____
3. Owner Policy - Seller _____
4. Escrow Fee - Seller _____/ Buyer _____

Answer 355

Closing Cost Credit/Debit to one side only?

1. Loan Origination (Buyer Debit)
2. ALTA (Buyer Debit)
3. Owner Policy (Seller Debit)
4. Escrow Fee (Seller/Buyer Debits)

Chap 14

Question 356

Closing Cost - Soley - Seller Debits

1. **Com_____- Seller Debit
2. **O____ T___ P____ - Seller Debit

Answer 356

All Closing Cost (Debit/Credit)

1. **Commission: Debit Seller
2. **Owner Title Policy: Debit Seller

Chap 14

Question 357

“Solely Credited” to Buyer and not shown on seller’s side

1. E____ Money - Buyer Credit
2. N___ L___ - Buyer Credit

Answer 357

“Solely Credited” to Buyer and not shown on seller’s side

1. *Earnest Money: Buyer Credit
2. *New Loan: Buyer Credit

Question 358

All Closing Cost as - Seller Debit and Buyer Credit

1. Seller C___b____: (Seller Debit / Buyer Credit)
2. R___ C_____: (Seller Debit / Buyer Credit)
3. Sec____ Dep____: (Seller Debit / Buyer Credit)
4. T____ (Arrears): (Seller Debit / Buyer Credit)
5. W____ (Arrears): (Seller Debit / Buyer Credit)

Seller Carryback - aka Purchase Money Loan. Seller becomes the Lender; Buyer the borrower. Used as loan to borrower for downpayment.

Answer 358

All Closing Cost as - Seller Debit and Buyer Credit

1. Seller Carryback: (Seller Debit / Buyer Credit)
2. Rent Collected: (Seller Debit / Buyer Credit)
3. Security Deposit: (Seller Debit / Buyer Credit)
4. Taxes (Arrears): (Seller Debit / Buyer Credit)
5. Water (Arrears): (Seller Debit / Buyer Credit)

Seller Carryback - aka Purchase Money Loan. Seller becomes the Lender; Buyer the borrower. Used as loan to borrower for downpayment.

Chap 14

Question 359

Same amount recovery deductions on Investments every year is called?

Answer 359

Straight Line Depreciation -

Same amount of recovery deductions on investments every year

Chap 14

Question 360

Federal Law which Non-Residential Aliens must pay“US Income Tax Gain” from the Sale of US Real Property. Escrow holds 15% of sales price. Buyer Could Be Liable for Seller’s Tax, if not withheld.

Answer 360

FIRPTA Foreign Investment In Real Property Tax Act

Federal Law which Non-Residential Aliens must pay“US Income Tax Gain” from the Sale of US Real Property. Escrow holds 15% of sales price. Buyer Could Be Liable for Seller’s Tax, if not withheld.

Chap 14

Question 361

FIRPTA stands for

For____ Inv_____ In Real Property T__ A__

Answer 361

FIRPTA

Foreign Investment In Real Property Tax Act

Chap 14

Question 362

1031 Exchanges - Allows “tax gain” to be deferred into future.

1. Like Kind - In____ and Inv______ Properties.
2. Simultaneous Exchange - One Property “T____ Dir____ for A_____“ Property
3. Delayed Exchange - New Pro____ Ac____ within specific time frames.
4. Boot - Un____ K___ Pr_____ received in an exchange.

Answer 362

1031 Exchanges - Allows “tax gain” to be deferred into future.

1. Like Kind - Income/Investment Properties.
2. Simultaneous Exchange - One property “Traded Directly for Another” property
3. Delayed Exchange - “New Property Acquired” within specific time frames.
4. Boot - “Unlike Kind Property” received in an exchange.

Chap 14

Question 363

“Unlike kind property” received in an exchange.

All Exchanges - tax on gain is deferred

Answer 363

Boot -

“Unlike kind property” received in an exchange

All Exchanges - tax on gain is deferred

Chap 14

Question 364

1031 Exchanges - Allows “tax gain” to be deferred into future.

1. Like Kind - In____ and Inv______ Properties.
2. Simultaneous Exchange - One Property “T____ Dir____ for A_____“ Property
3. Delayed Exchange - New Pro____ Ac____ within specific time frames.
4. Boot - Un____ K___ Pr_____ received in an exchange.

Answer 364

1031 Exchanges - Allows “tax gain” to be deferred into future.

1. Like Kind - Income/Investment Properties.
2. Simultaneous Exchange - One property “Traded Directly for Another” property
3. Delayed Exchange - “New Property Acquired” within specific time frames.
4. Boot - “Unlike Kind Property” received in an exchange.

Chap 14

Question 365

1031 Exchanges - Allows “tax gain” to be deferred into future.

1. Like Kind - In____ and Inv______ Properties.
2. Simultaneous Exchange - One Property “T____ Dir____ for A_____“ Property
3. Delayed Exchange - New Pro____ Ac____ within specific time frames.
4. Boot - Un____ K___ Pr_____ received in an exchange.

Answer 365

1031 Exchanges - Allows “tax gain” to be deferred into future.

1. Like Kind - Income/Investment Properties.
2. Simultaneous Exchange - One property “Traded Directly for Another” property
3. Delayed Exchange - “New Property Acquired” within specific time frames.
4. Boot - “Unlike Kind Property” received in an exchange.

Chap 14

Question 366

If an item r_____ the cash the seller takes home at closing, it is a Seller (Credit or Debit)?

Answer 366

Seller Debit -

If an item reduces the cash the seller will take home at closing, it is a Seller Debit

Chap 14

Question 367

If an item r_____ the cash the buyer must bring to closing, it is a Buyer (Credit or Debit)?

Answer 367

Buyer Credit -

If an item reduces the cash the buyer must bring to closing, it is a Buyer Credit

Chap 14

Question 368

If an item r_____ the cash the seller takes home at closing, it is a Seller (Credit or Debit)?

Answer 368

Seller Debit -

If an item reduces the cash the seller will take home at closing, it is a Seller Debit

Chap 14

Question 369

If an item r_____ the cash the buyer must bring to closing, it is a Buyer (Credit or Debit)?

Answer 369

Buyer Credit -

If an item reduces the cash the buyer must bring to closing, it is a Buyer Credit

Chap 14

Question 370

If an item r_____ the cash the buyer must bring to closing, it is a Buyer (Credit or Debit)?

Answer 370

Buyer Credit -

If an item reduces the cash the buyer must bring to closing, it is a Buyer Credit

Chap 14

Question 371

If an item r_____ the cash the buyer must bring to closing, it is a Buyer (Credit or Debit)?

Answer 371

Buyer Credit -

If an item reduces the cash the buyer must bring to closing, it is a Buyer Credit

Chap 14

Question 372

Tax Advise -

Upon purchase or sale of property, there can be significant I____ T__ consequences. A real estate licensee should advise thier clients to s____ Competent Legal Advice from a Q_____ Ex____.(Tax Advisor)

Answer 372

Tax Advise -

Upon purchase or sale of property, there can be significant Income Tax consequences. A real estate licensee should advise thier clients to seek Competent Legal Advice from a Qualified Expert.(Tax Advisor)

Chap 14

Question 373

R________ -

Giving constructive notice to the general public.

Answer 373

Recording -

Giving constructive notice to the general public.

Chap 13

Question 374

Written instrument that transfers ownership of real property.

Answer 374

Deed -

Written instrument that transfers ownership of real property.

Chap 13

Question 375

Conveys the grantor’s interest and warrants title against all claims

Answer 375

Warranty Deed -

Conveys the grantor’s interest and warrants title against all claims

Chap 13

Question 376

Conveys the grantor’s interest and warrants title against claims arising only from the grantor’s actions.

Answer 376

Special Warranty Deed -

Conveys the grantor’s interest and warrants title against claims arising only from the grantor’s actions.

Chap 13

Question 377

Conveys that grantor’s interest but has no expressed warranty.

1. Implied warranty that grantor has the right to convey the property..
2. Guardian Deeds, Executor’s Deeds and Foreclosure deeds: Sheriff’s Deeds, Trustee’s Deeds

Answer 377

Bargain and Sale Deed -

Conveys that grantor’s interest but has no expressed warranty.

1. Implied warranty that grantor has the right to convey the property.
2. Guardian Deeds, Executor’s Deeds and Foreclosure Deeds: Sheriff’s Deeds, Trustee’s Deeds

Chap 13

Question 378

Releases all of the grantor’s interest, if any.

1. No Warranties - expressed or implied
2. Used to clear title defects

Answer 378

Quit Claim Deed -

Releases all of the grantor’s interest, if any.

1. No Warranties - expressed or implied
2. Used to clear title defects

Chap 13

Question 379

An instrument that conveys real property from the state or f______ government to an individual

Answer 379

Patent -

An instrument that conveys real property from the state or federal government to an individual

Chap 13

Question 380

This Deed specifies who will receive real estate when the grantor dies. This deed is recorded by the grantor and can be rescinded//changed before grantor’s death.

1. Takes effect on Grantor’s death
2. Deed supersedes Grantor’s Will.
3. Purchase Contract supersedes Beneficiary Deed.

Answer 380

Beneficiary Deed -

Deed specifies who will receive real estate when the grantor dies. This deed is recorded by the grantor and can be rescinded/changed before grantor’s death.

1. Takes effect on Grantor’s death
2. Deed supersedes Grantor’s Will.
3. Purchase Contract supersedes Beneficiary Deed.

Chap 13

Question 381

Documents signed by one spouse, prior to the other spouse acquiring property in order to prevent it from becoming community property.

Answer 381

Disclaimer Deed -

Documents signed by one spouse, prior to the other spouse acquiring property in order to prevent it from becoming community property.

Chap 13

Question 382

Valid Deed -

1. S____ by the Gr_____.
2. Acknowledged/Notarization: For____ De_____ made before a No____ Public (protects against forgery) Need to R_____
3. Delivery and Acceptance: is R_____ing also Fin__ S____ to Transfer Title

Note: Law does not r_____ deed to be recorded to be vaiid

Answer 382

Valid Deed -

1. Signed by the Grantor.
2. Acknowledged/Notarization: Formal Declaration made before Notary Public (protects against forgery) Need to Record
3. Delivery and Acceptance: is Recording also Final Step to Transfer Title

Note: Law does not require deed to be recorded to be vaiid

Chap 13

Question 383

What is importance of Recording?

Answer 383

Recording Importance -

Gives constructive notice to general public.

Chap 13

Question 384

Notice given (to public) when a document is recorded in the county in which the property exists.

Answer 384

Constructive Notice -

Notice given (to public) when a document is recorded in the county in which the property exists.

Chap 13

Question 385

Notice by inspection of the property, records or by actual knowledge of a fact.

Answer 385

Actual Notice (Inspection)-

Notice by inspection of the property, records or by actual knowledge of a fact.

Chap 13

Question 386

Affidavit of Value (Prop Taxes)

This document is needed for T__ Ass_____

1. Must accompany or r_____ with deed
2. S____ by both Par____
3. Sa___ Pr____ (consideration) stated
4. Pro____ Des_____ stated
5. Used instead of (Tr____ T__ Stamps)

Answer 386

Affidavit of Value (Prop Taxes)

This document is needed for Tax Assessors.

1. Must accompany or record with deed
2. Signed by both Parties
3. Sales Price (consideration) stated
4. Property Description stated
5. Used instead of (Transfer Tax Stamps)

Chap 13

Question 387

Haben____ Clause

Clause in deed that defines interest being conveyed. Starts with “To have or To hold”

Answer 387

Habendum Clause -

Clause in deed that defines** **interest being conveyed. Starts with “To have or To hold”

Chap 13

Question 388

Res________ and Exem______ Clause

Clause in deed where Grantor holds back some interest or which list encumbrances.

Answer 388

Reservation and Exemption Clause -

Clause in deed where Grantor holds back some interest or which list encumbrances.

Chap 13

Question 389

G____ing Clause -

Clause in deed, conveys title to grantee

Answer 389

Granting Clause -

Clause in deed, conveys title to grantee

Chap 13

Question 390

T_______ Clause

Witness clause in deed citing the A__ and D___ of Execution.

Answer 390

Testimonium Clause -

Witness clause in deed citing the Act and Date of Execution.

Chap 13

Question 391

Title that is without cloud or defect

Answer 391

Merchantable (Marketable) Title -

Title that is without cloud or defect

Chap 13

Question 392

Summary of the Chain of Title

Answer 392

Abstract Title -

Summary of the Chain of Title

Chap 13

Question 393

Chain of Title

1. C_____ H_____ of the Property.
2. Would Rev___ Ga__ in Ownership record.
3. Q____ T____ Action - Would remove clouds on that title.

Answer 393

Chain of Title (Complete and Gaps) -

1. Complete History of the Property.
2. Would Reveal Gaps in Ownership record.
3. Quiet Title Action - Would remove clouds on that title.

Chap 13

Question 394

A policy that protects the policy holder against loss due to title defects.

Answer 394

Title Insurance -

A policy that protects the policy holder against loss due to title defects.

Chap 13

Question 395

Owner’s Title Policy (for Buyer):

1. Seller usually purchases policy
2. Protects Buyer From:
3. F_____ D______
4. Inc________ Grantor
5. Improperly Dr____/Del_____/Mis____ Docs
6. If only __ spouse conveyed
7. Unknown D______ Heirs
8. Page of Exceptions Sched B(not covered)
9. Existing L___ and En_______ of Record
10. Me______ Liens not yet Rec_____
11. Persons in Pos_______
12. Enc_______ or Errors a S____ would reveal
13. Extended Coverage same coverage as ALTA Policy (not covered - existing liens, encumbrances, defects, zoning)

Answer 395

Owner’s Title Policy (for Buyer):

1. Seller usually purchases policy
2. Protects Buyer From:
3. Forged documents
4. Incompetent Grantor
5. Improperly Drawn/Delivered/Misfiled Docs
6. If only 1 spouse conveyed
7. Unknown Discovery Heirs
8. Page of Exceptions Sched B (not covered)
9. Existing Liens and Encumbrancesof Record
10. Mechanics Liens not yet Recorded
11. Persons in possession
12. Encroachments or Errors a Survey would reveal
13. Extended Coverage same coverage as ALTA Policy (Never Covered - existing liens, encumbrances, defects, zoning)

Chap 13

Question 396

Owner’s Title Policy - Page of Exceptions (Sched B)

1. Existing L___ and E__________ of Record
2. Me______ Liens not yet Re_____
3. Persons in Po_______
4. Enc_______ or Errors a S_____ would Reveal

No Policy Covers: Existing Liens, Encumbrances, Defects Known, or Zoning Ordanances

Answer 396

Owner’s Title Policy - Page of Exceptions (Sched B)

1. Existing Liens and Encumbrances of Record
2. Mechanics Liens not yet Recorded
3. Persons in Possession
4. Encroachments or Errors a Survey would Reveal

No Policy Covers: Existing Liens, Encumbrances, Defects Known, or Zoning Ordanances

Chap 13

Question 397

A policy that protects lender against defects which could be determined by an inspection of public records (constructive notice) or an inspection of property (actual notice). Buyer Pu______ this policy

Protects Against

1. For____ Documents
2. Inc______ Grantor
3. Improperly Dr____/De______/Mis____ Docs
4. If only 1 spouse conveyed
5. Unknown Di_____ Heirs

Also protects against:

1. Me_____ Liens not yet Re_____
2. Persons in Po______
3. Enc_______ or Errors a S____ would reveal

Not protected against:

1. Existing L___ or Encu_____ of record
2. De_____ known to the insured
3. Z_____ Ordances or changes in zoning

Answer 397

ALTA Title Policy -

A policy that protects lender against defects which could be determined by an inspection of public records (constructive notice) or an inspection of property (actual notice). Buyer Purchases this Policy

Protects Against

1. Forged documents
2. Incompetent grantor
3. Improperly Drawn/Delivered/Misfiled Docs
4. If only 1 spouse conveyed
5. Unknown Discovery Heirs

Also protects against:

1. Mechanics Liens not yet Recorded
2. Persons in Possession
3. Encroachments or Errors a Survey would reveal

Not protected against:

1. Existing Liens or Encumbrances of record
2. Defects known to the insured
3. Zoning Ordances or changes in zoning

Chap 13

Question 398

No Title Policy Covers These Items:

1. Existing Enc_______ of Record
2. De____ known to insured
3. Z____ Ordinances or changes in zoning

Answer 398

No Title Policy Covers These Items:

1. Existing encumbrances of Record
2. Defects known to insured
3. Zoning Ordinances or changes in zoning

Chap 13

Question 399

T_____ P_____

A duplicate set of public records maintained by a title company.

Answer 399

Title Plant -

A duplicate set of public records maintained by a title company.

Chap 13

Question 400

Commitment of Title Insurance issued prior to closing of sale?

Answer 400

Preliminary Title Report -

Commitment of Title Insurance issued prior to closing of sale

Chap 13

Question 401

Subr_______

Substitution of 3rd person in place of another in relation to claim/debt

Answer 401

Subrogation -

Substitution of 3rd person in place of another in relation to claim/debt

Chap 13

Question 402

(UCC) Uniform Commercial Code - governs

1. Co_______ and Bu_____ transactions
2. S___/Fi_____ of P______ Property

Answer 402

(UCC) Uniform Commercial Code - governs

1. Commercial and Business transactions
2. Sales/Financing of Personal Property

Chap 13

Question 403

In (UCC) Uniform Commercial Code

Security Agreement -

1. Places L___ on P______ Property.
2. UCC-1 establishes Lien Pri____. U____ filed with S_______ of State
3. Business Sold - U____ search by Se_____ of State to determine outstanding U____ L____.

Answer 403

(UCC) Uniform Commercial Code -

Security Agreement -

1. Places Lien on Personal Property.
2. UCC-1 establishes Lien Priority (UCC-1 filed) with Secretary of State
3. Business Sold - UCC-1 search by Secretary of State to determine outstanding UCC-1 Liens.

Chap 13

Question 404

Under (UCC) Uniform Commercial Code

B___ S___ Aff_____ -

“Buyer of Business” - provided with List of Seller’s Creditors

Answer 404

Under (UCC) Uniform Commercial Code -

Bulk Sales Affidavit -

1. Buyer of Business - provided with List of Seller’s Creditors

Chap 13

Question 405

Deeds (Transfers of Ownership) -

1. General Warranty (Fee Simple) - Against A__ C____
2. Special Warranty (Defeasible Fee) - Only from G_____ Ac_____
3. Bargain and Sale (Life Estate) - No W______ (Guardian Deed, Executor’s Deed, Trustee’s Deed, Sheriff’s Deed)
4. Quit Claim (Leasehold Estate) - Releases all Grantor’s Interest, No Warranties, Clears T___ Def___.

Answer 405

Deeds (Transfers of Ownership) -

1. General Warranty (Fee Simple) - Against All Claims
2. Special Warranty (Defeasible Fee) - Only from Grantor’s Actions
3. Bargain and Sale (Life Estate) - No Warranties (Guardian Deed, Executor’s Deed, Trustee’s Deed, Sheriff’s Deed)
4. Quit Claim (Leasehold Estate) - Releases all Grantor’s Interest, No Warranties, Clears Title Defects

Chap 13

Question 406

Person who gives the deed and gives up ownership.

Answer 406

Grantor -

Person who gives the deed and gives up ownership.

Chap 13

Question 407

Person who receives the deed and acquired ownership.

Answer 407

Grantee -

Person who receives the deed and acquired ownership.

Chap 13

Question 408

Formal Declaration made before an authorized official such as a notary public

Answer 408

Acknowledgement/Notarization -

Formal Declaration made before an authorized official such as a notary public

Chap 13

Question 409

Final step necessary to transfer title, and recording implies the same.

Answer 409

Delivery and Acceptance -

Final step necessary to transfer title, and recording implies the same.

Chap 13

Question 410

In a Affidavit of Value, what is another word for “sales price?”

Answer 410

Consideration -

In a Affidavit of Value, what is another word for “sales price”

Chap 13

Question 411

Bargain and Sale Deed -

Conveys that grantor’s interest but has no expressed warranty. Has “implied warranty”, grantor has right to convey.

Types:

1. Guar_____ Deeds, Ex_____’s Deeds and F______ Deeds: S_____’s Deeds, T_____ee’s Deeds

Answer 411

Bargain and Sale Deed -

Conveys that grantor’s interest but has no expressed warranty. Has “implied warranty”, grantor has right to convey.

Types:

1. Guardian Deeds, Executor’s Deeds and Foreclosure Deeds: Sheriff’s Deeds, Trustee’s Deeds

Chap 13

Question 412

Beneficiary Deed - This Deed specifies who will receive real estate when the grantor dies.

Beneficiary Deed supersedes what document?

Answer 412

Beneficiary Deed - This Deed specifies who will receive real estate when the grantor dies.

Beneficial Deed supersedes Grantor’s Will.

Chap 13

Question 413

Beneficiary Deed -

This Deed specifies who will receive real estate when the grantor dies.

What document supersedes Beneficiary Deed?

Answer 413

Beneficiary Deed -

Deed specifies who will receive real estate when the grantor dies.

Purchase Contract supersedes Beneficiary Deed.

Chap 13

Question 414

Beneficiary Deed - This Deed specifies who will receive real estate when the grantor dies.

Beneficiary Deed supersedes what document?

Answer 414

Beneficiary Deed - This Deed specifies who will receive real estate when the grantor dies.

Beneficial Deed supersedes Grantor’s Will.

Chap 13

Question 415

Beneficiary Deed -

This Deed specifies who will receive real estate when the grantor dies.

What document supersedes Beneficiary Deed?

Answer 415

Beneficiary Deed -

Deed specifies who will receive real estate when the grantor dies.

Purchase Contract supersedes Beneficiary Deed.

Chap 13

Question 416

U______ Com______ C______

Governs the following

1. Commercial and Business transactions
2. Sales/Financing of Personal Property

Answer 416

(UCC) Uniform Commercial Code - governs

1. Commercial and Business transactions
2. Sales/Financing of Personal Property

Chap 13

Question 417

Valid Deed -

1. S____ by the G_____.
2. Ack______ment/Not________: Fo___ Dec_____ made before Notary Public. Protects Against Forgery and Needed to Record
3. Del_____ and Ac______- is Recording also “Final Step” to Transfer Title

Note: Law does not r_____ deed to be recorded to be valid

Answer 417

Valid Deed -

1. Signed by the Grantor.
2. Acknowledment/Notarization: Formal Declaration made before Notary Public (Protects Against Forgery) Needed to Record
3. Delivery and Acceptance - is Recording also “Final Step” to Transfer Title

Note: Law does not require deed to be recorded to be valid

Chap 13

Question 418

Valid Deed -

1. S____ by the G_____.
2. Ack______/Not________: For___ Dec_____ made before Notary Public
3. Del_____ and Acc______- is Recording also Final Step to Transfer Title

Note: Law does not r_____ deed to be recorded to be vaiid

Answer 418

Valid Deed -

1. Signed by the Grantor.
2. Acknowledged/Notarization: Formal Declaration made before Notary Public (protects against forgery) Need to Record
3. Delivery and Acceptance- is Recording also Final Step to Transfer Title

Note: Law does not require deed to be recorded to be vaiid

Chap 13

Question 419

Merch______ (Mar_____) Title -

Title that is without cloud or defect

Answer 419

Merchantable (Marketable) Title -

Title that is without cloud or defect

Chap 13

Question 420

C____ of T_____

1. Complete History of the Property and would Reveal Gaps in Ownership record.

Answer 420

Chain of Title -

1. Complete History of the Property and would Reveal Gaps in Ownership record.

Chap 13

Question 421

C____ of T_____

1. Complete History of the Property and would Reveal Gaps in Ownership record.

Answer 421

Chain of Title -

1. Complete History of the Property and would Reveal Gaps in Ownership record.

Chap 13

Question 422

An instrument that conveys real property from the state or federal government to an individual

Answer 422

Patent -

An instrument that conveys real property from the state or federal government to an individual

Chap 13

Question 423

B_____ and S_____ D_____ -

Conveys that grantor’s interest but has no expressed warranty.

1. Implied warranty that grantor has the right to convey the property..
2. Guardian Deeds, Executor’s Deeds and Foreclosure deeds: Sheriff’s Deeds, Trustee’s Deeds

Answer 423

Bargain and Sale Deed -

Conveys that grantor’s interest but has no expressed warranty.

1. Implied warranty that grantor has the right to convey the property.
2. Guardian Deeds, Executor’s Deeds and Foreclosure Deeds: Sheriff’s Deeds, Trustee’s Deeds

Chap 13

Question 424

Pre______ T____ R_____ -

Commitment of Title Insurance issued prior to closing of sale?

Answer 424

Preliminary Title Report -

Commitment of Title Insurance issued prior to closing of sale

Chap 13

Question 425

A Chain of Title is a:

1. Measurement used by a surveyor
2. Listing of all Recorded Instruments affecting title
3. Certificated of Title
4. List of the Heirs of a Deceased Owner

Answer 425

A Chain of Title is a:

1. Measurement used by a surveyor
2. Listing of all Recorded Instruments affecting title
3. Certificated of Title
4. List of the Heirs of a Deceased Owner

Chap 13

Question 426

A Standard Title Insurance Policy includes coverage for:

1. Items of Record which are not disclosed in the Policy
2. Zoning Ordinances
3. Persons in Possession of the Property
4. Errors A Survey would show.

Answer 426

A Standard Title Insurance Policy includes coverage for:

1. Items of Record which are not disclosed in the Policy
2. Zoning Ordinances
3. Persons in Possession of the Property
4. Errors a Survey would show.

Chap 13

Question 427

In a Standard Owner’s Title Policy “The Page of Exceptions” indicates the:

1. Legal Description
2. Type of Interest being Insured
3. Method of Ownership for the Buyers
4. Liens and Encumbrances of Record

Answer 427

In a Standard Owner’s Title Policy “The Page of Exceptions” indicates the:

1. Legal Description
2. Type of Interest being Insured
3. Method of Ownership for the Buyers
4. Liens and Encumbrances of Record

Chap 13

Question 428

All of the following are required to be in a Deed of Conveyance EXCEPT:

1. Acknowledgement
2. Sale Price
3. Legal Description
4. Consideration

Answer 428

All of the following are required to be in a Deed of Conveyance EXCEPT:

1. Acknowledgement
2. Sale Price
3. Legal Description
4. Consideration

Chap 13

Question 429

Ownership is transferred when the:

1. Title is Recorded
2. Deed is Signed by the Seller
3. Deed is delivered to and accepted by the Buyer
4. Title Insurance Policy is Issued

Answer 429

Ownership is transferred when the:

1. Title is Recorded
2. Deed is Signed by the Seller
3. Deed is delivered to and accepted by the Buyer
4. Title Insurance Policy is Issued

Chap 13

Question 430

An ALTA Policy would be terminated under al of the following circumstances EXCEPT:

1. Sale of the Property and Assumption of the Loan
2. Sale of the Property with the Buyer Originating new FHA
3. Refinance of Property
4. Acceptance of Deed in Lieu of Forclosure by Lender

Answer 430

An ALTA Policy would be terminated under al of the following circumstances EXCEPT:

1. Sale of the Property and Assumption of the Loan
2. Sale of the Property with the Buyer Originating new FHA
3. Refinance of Property
4. Acceptance of Deed in Lieu of Forclosure by Lender

Chap 13

Question 431

Upon review of a Title Report an attorney finds gaps in the Chain of Ownership. What should the owner do to correct these title defects?

1. Obtain Title Insurance
2. File a Quite Title Action
3. Secure An Affidavit of Title
4. Obtain Affidavit of Ownership from County Administrator

Answer 431

Upon review of a Title Report an attorney finds gaps in the Chain of Ownership. What should the owner do to correct these title defects?

1. Obtain Title Insurance
2. File a Quite Title Action
3. Secure An Affidavit of Title
4. Obtain Affidavit of Ownership from County Administrator

Chap 13

Question 432

Which is MOST likely to reveal all of the owners in the property’s history?

1. Certificate of Tile
2. Abstract of Title
3. Title Report
4. Affidavit of Title

Answer 432

Which is MOST likely to reveal all of the owners in the property’s history?

1. Certificate of Tile
2. Abstract of Title
3. Title Report
4. Affidavit of Title

Chap 13

Question 433

Arizona law requires that a document accompany every deed before the deed can be recorded. This document is signed by:

1. Buyer
2. Seller
3. Buyer and Seller
4. Buyer, Seller and Broker

Answer 433

Arizona law requires that a document accompany every deed before the deed can be recorded. This document is signed by:

1. Buyer
2. Seller
3. Buyer and Seller
4. Buyer, Seller and Broker

Chap 13

Question 434

Deeds, to be valid, must contain:

1. Monetary Consideration
2. Date
3. Acknowledgement
4. Grantee’s Signature

Answer 434

Deeds, to be valid, must contain:

1. Monetary Consideration
2. Date
3. Acknowledgement
4. Grantee’s Signature

Chap 13

Question 435

Which type of Deed created the GREATEST LIABILITY for the Grantor?

1. Quit Cliam Deed
2. Bargain & Sale Deed
3. Special Warranty Deed
4. Warranty Deed

Answer 435

Which type of Deed created the GREATEST LIABILITY for the Grantor?

1. Quit Cliam Deed
2. Bargain & Sale Deed
3. Special Warranty Deed
4. Warranty Deed

Chap 13

Question 436

At death when the decedents estate is probated is called?

Answer 436

Inheritance -

At death when the decedents estate is probated

Chap 12

Question 437

Te____cy in Sev____ty - Sole and Separate Ownership.

Ownership By One Person

1. N_____ or L____ Person, (C____, Cities, etc)
2. Probate - Used to Pass Es____ to H___s, at Decedent’s Death

Answer 437

Tenancy in Severalty - Sole and Separate Ownership.

Ownership By One Person

1. Natural or Legal Person, (Corps, Cities, etc)
2. Probate - Used to Pass Estate to Heirs, at Decedent’s Death.

Severalty - means condition of being separate

Chap 12

Question 438

Join Tenancy - Ownership shared by (2 or more people), having “Right to Survivorship.”

1. Unities: (T____, T____, In_____ and Pos_____)
2. Nat_____ Pe____ Only (***No Corps***)
3. Joint Tenants can - Convey In______ without Permission of others.
4. Automatic Right to Sur_______ - No Probate
5. Joint Interest conveyed becomes - T_____ in C______ which passes to Heirs

Answer 438

Join Tenancy - Ownership shared by (2 or more people), having “Right to Survivorship.”

1. Unities: (Time, Title, Interest and Possession)
2. Natural Person Only (***No Corps***)
3. Joint Tenants can - Convey Interest wihout Permission of others.
4. Automatic Right to Survivorhip - No Probate
5. Joint Interest conveyed becomes Tenants in Common whch passes to Heirs

Chap 12

Question 439

C________ Pr_______ -

1. Property acquired by spouses during marriage.

Seperate Property

1. Property received by G___ or Inh______, Purchase with Sep_____ F____ or Acquired Prior to Ma_____ - Remains Separate.

Answer 439

Community Property -

1. Property acquired by spouses during marriage.

Separate Property

1. Property received by Gift or Inheritance, Purchase with Separate Funds or Acquired Prior to Marriage - Remains Separate.

Chap 12

Question 440

Community Property -

1. Salaries E____ by Either Spouse are Com_____ Property
2. Each Spouse has __% Interest.
3. Both Spouses must Si__ to Con___ Property
4. At Death Spouse’s Half Passes to His/Her H___.

Answer 440

Community Property -

1. Salaries Earned by Either Spouse are Community Property
2. Each Spouse has 50% Interest.
3. Both Spouses must Sign to Convey Property
4. At Death Spouse’s Half Passes to His/Her Heirs.

Chap 12

Question 441

Com______ Pr_______ with R___ of S________

This type of title allows deceased spouses Interest to pass directly to surviving spouse without Probate

Answer 441

Community Property with Right of Survivorship -

This type of title allows deceased spouses Interest to pass directly to surviving spouse without Probate

Chap 12

Question 442

Tenancy in Common -

1. Co-Ownership by Two or M____ Persons (Leg__ or Nat____) with “No R____” to Sur______.”
2. Each holds distinct Und_____ In______
3. Only Unity is “Pos_____“ necessary
4. At Decedent’s Death his/her shares goes to H___

Answer 442

Tenancy in Common -

1. Co-Ownership by Two or More Persons (Legal or Natural) with “No Right” to survivorship.”
2. Each holds distinct undivided interest
3. Only Unity is “Possession” necessary
4. At Decedent’s Death his/her shares goes to H___

Chap 12

Question 443

T______ in C_________

Co-ownership** by **two or more persons with No Right to Survivorship.

1. Natural or Legal Person can Hold Title
2. Each holds a separate and Distinct Undivided Interest.
3. Unity is ****Possession*****
4. At Death Interest goes to Heirs

Answer 443

Tenancy in Common -

Co-ownership** by **two or more persons with No Right to Survivorship.

1. Natural or Legal Person can Hold Title
2. Each holds a separate and Distinct Undivided Interest.
3. Unity of Possession
4. At death Interest goes to Heirs

Chap 12

Question 444

Un_____ Pra____

Advising a buyers how to take title is considered what?

Answer 444

Unlawful Practice -

Advising a buyers how to take title is considered what

Chap 12

Question 445

S__ for P______

Legal Action used to terminate a Tenancy in Common or Joint Tenancy.

Answer 445

Suit for Partition -

Legal Action used to terminate a Tenancy in Common or Joint Tenancy.

Chap 12

Question 446

R___ E____ Syn_______ -

Pooling together Resources for Investment. (Such as: General or Limited Partnerships; Corporations, Limited Liabiility Co; Trust; REIT’s.

Answer 446

Real Estate Syndications -

Pooling together Resources for Investment. (Such as: General or Limited Partnerships; Corporations, Limited Liabiility Co; Trust; REIT’s.

Chap 12

Question 447

G_______ P__________

In this partnership, each partner has F___ L______ for D____ of Partnership. Also Actively M______ the Partnership

Answer 447

General Partnership -

Each partner has full liability for debts of partnership. Also Actively Manages the Partnership

Chap 12

Question 448

L______ P_______ - Composed of General and Limited Partners.

1. General Partners - F__ L_____ for D___ and Actively Man____ Par______
2. Limited Partners - Liability Limited to Or_____ Ag________ - Passive Investors (Puts M____ In)

Answer 448

Limited Partnership - Composed of General and Limited Partners.

1. General Partners - Full Liability for debts - Actively Manages Partnership
2. Limited Partners - Liability Limited to Original Agreement - Passive Investors (put money in)

Chap 12

Question 449

C________

A Bu_____ Entity made up of One or More Persons (Who Receive S_____) that is treated as a Sep_____ Entity.

Answer 449

Corporation -

A Business Entity made up of One or More Persons (Who Receive Stocks) that is treated as a Separate Entity.

Chap 12

Question 450

Li_____ Li_____ C______

A Business Entity with Combined Characteristics of L____ Pa______ and certain types of C_______.

Answer 450

Limited Liability Company (LLC) -

A business entity with Combined Characteristics of Limited Partnerships and certain types of Corporations.

Chap 12

Question 451

T____ -

Legal Title to property is Transferred to and M______ by a Tr_____, for the benefit of B_______.

Answer 451

Trust -

Legal title to property is Transferred to and Managed by a Trustee, for the benefit of Beneficiary.

Chap 12

Question 452

REIT (Real Estate Investment Trust)

A company with at least ___ Investors that owns Inc____ Producing Real Estate and provides T__ Favored Tre______ to the Inv______.

1. Must Invest at least __% of its Ass___ in Real Estate
2. Must Pay Out at least __% of its Taxable Income to its Shareholders.

Answer 452

REIT (Real Estate Investment Trust) -

A company with at least 100 investors that owns Income Producing Real Estate and provides Tax Favored Treatments to the Investors.

1. Must invest at least 75% of its assets in real estate
2. Must pay out at least 90% of its taxable income to its shareholders.

Chap 12

Question 453

Securities -

The Sale of Interest in Part_______, Cor______, Tr____ and Inv________ Entities would be considered Securities

Answer 453

Securities -

The Sale of Interest in Partnerships, Corporations, Trusts** and **Investment Entities would be considered Securities

Chap 12

Question 454

Securities -

1. Regulated by “B___ S__ L____“ and Enforced by the Federal “Se_____ and Ex_______ C_______ (SEC)” and by the “Ar_____ C___ Co________.”
2. R____ E____ Ag____ may need Sec______ License to sell Interest in these Entities.

Answer 454

Securities -

1. Regulated by “Blue Sky Laws” and Enforced by the Federal “Securities and Exchange Commission (SEC)” and by the “Arizona Corp Commission.”
2. Real Estate Agents may need Securities License to sell Interests in these Entities.

Chap 12

Question 455

Probate - Court proceeding that..

1. Val_____ the W__
2. Totals A_____
3. Distributes A_____ to H_____

Answer 455

Probate - Court proceeding that…

1. Validates the Will
2. Totals Assets
3. Distributes Assets to Heirs

Chap 12

Question 456

T______ - When Decedent dies with a Will.

1. C____ validates Will
2. A____ pass to H___ in W__
3. T___tor is Person who Makes W___

Answer 456

Testate - When Decedent dies with a Will.

1. Court validates Will
2. Assets pass to Heirs in Will
3. Testator - Person who Makes Will

Chap 12

Question 457

Person who makes a will is?

Answer 457

Testator -

Person who makes a will

Chap 12

Question 458

In_______

Decedent dies “Without a Will”

1. A____ pass to H___ according to L____

Answer 458

Intestate -

Decedent dies “Without a Will”

1. Assets pass to Heirs according to Law

Chap 12

Question 459

Ad_________/_______trix

Person App______ by Court when no executor is named

Answer 459

Administrator/Administratrix -

Person Appointed by Court when no executor is named

Chap 12

Question 460

Right of S_________ (JTWRS or CPWRS) -

When at Death of One Joint Tenant or Co-Owneer and that Joint Tenant’s/Co-Owner’s Int_____ Passes Aut_______ to the Sur_______ Tenant(s) “Without Probate.”

Answer 460

Right of Survivorship (JTWRS or CPWRS) -

When at Death of One Joint Tenant or Co-Owner, and that Joint Tenant’s/Co-Owner’s Interest Passes Automatically to the Surviving Tenant(s) “Without Probate.”

Chap 12

Question 461

Bl____ S__ Laws -

Regulates Securities

Answer 461

Blue Sky Laws -

Regulates Securities

Chap 12

Question 462

C___________ -

Individual “Fee Simple Ownership” of Unit with “Sh____ Own______ of Com______ Areas (Buildings, L___, Pa____, St___ways, Pool), as Tenants In Common

Answer 462

Condominium -

Individual “Fee Simple Ownership” of Unit with “Shared Ownership of Common Areas (Buildings, Land, Parking, Stairways, Pool), as Tenants in Common

Chap 12

Question 463

Involuntary Alienation

Forced Transfer through any of the following:

1. E____ D_____ (Gov Takes Property)
2. Ad_____ P________ (Title by Court - Not____, O____, Con_____, Ho____ Use)
3. F_________ (Trust Deed-Lender takes Property)

Answer 463

Involuntary Alienation -

Forced transfer through any of the following:

1. Eminent Domain (Gov Takes Property)
2. Adverse Possession (Title by Court-Notorious, Open, Continous, Hostile use)
3. Foreclosure (Trust Deed-Lender takes Property)

Chap 12

Question 464

V_____ Al________

An Uncoerced Transfer by “Gift or Deed, or Document”

Answer 464

Voluntary Alienation -

An Uncoerced Transfer by “Gift or Deed, or Document”

Chap 12

Question 465

E_______/E______trix -

Person Named in Will to carry out its provisions

Answer 465

Executor/Executrix -

Person named in will to carry out its provisions

Chap 12

Question 466

Severalty Ownership -

1. T______ in Sev_______ which is S___ and Sep_______ Ownership
2. Ownership by One Person
3. Pr_____ used to pass Estate to Heirs

Answer 466

Severalty Ownership -

1. Tenancy in Severalty (Sole and Separate Ownership)
2. Ownership by One Person
3. Probate - used to pass Estate to Heirs

Severalty - Condition of Being Separate

Chap 12

Question 467

Joint Tenancy with Right to Survivorship - (Hint TTIP)

1. T-T____ - All joint tenants acquire Interest at Same T_____
2. T-T___ - All joint tenants acquire Interest in Same D___
3. I-I_______ - All joint tenants must hold Eq___ and Un_____ I_____.
4. P-P_______ - All joint tenants have Eq____ R____ to possess property fully.

Answer 467

Joint Tenancy with Right to Survivorship -

1. T-Time - All joint tenants acquire interest at same time
2. T-Title - All joint tenants acquire interest in same deed
3. I-Interest - All joint tenants must hold equal, undivided interest.
4. P-Possession - All joint tenants have equal rights to possess property fully

Chap 12

Question 468

JTWRS - Joint Tenants with Rights to Survivorship -

Cannot take this Title Type

C________ “cannot” take this type of title due to Perpetual E_______.

Answer 468

JTWRS - Joint Tenants with Rights to Survivorship -

Corporations “cannot” take this type of title due to Perpetual Existence.

Perpetual - Never Ending and Changing

Chap 12

Question 469

Under “Community Property” what is earned income?

Answer 469

Under Community Property -

Earned Income is community property

Chap 12

Question 470

Under Community Property Title -

At Death of Spouse his share goes to H____, so there is ___ Right to Survivorship.

Answer 470

Under Community Property Title -

At Death of Spouse his share goes to heirs, so there is no right to survivorship.

Chap 12

Question 471

SEC - S________ and Ex_______ Com_______ -

Enforces “Securites” on a F______ Level; and Ar_____ Corp Com______; and Bl__ S__ L____ regulate them on a State Level.

Answer 471

SEC - Securities and Exchange Commission -

Enforce “Securites” on a Federal Level; and Arizona Corp Commission; and Blue Sky Laws Regulates them on a State Level.

Chap 12

Question 472

AZ Co_______ C__________ -

Enforces “Securites” on a State Level.

Answer 472

AZ Corporation Commission -

Enforces Securites on a State Level.

Chap 12

Question 473

Condo Owners -

1. Owner - Receives D____
2. Owner - Responsible for Pr____ T____ and HOA Dues

Answer 473

Condo Owners -

1. Owner - Receives Deed
2. Owner - Responsible for Property Taxes and HOA Dues

Chap 12

Question 474

Condo Board of Directors meet how often?

Answer 474

Condo Board of Directors -

Meet Annually

Chap 12

Question 475

In a Cooperative, who holds the deed to property?

Answer 475

Cooperative (Title/Deed) -

Held by Corporation - Deed to Property

Chap 1 2

Question 476

Cooperative (Buyer Holds) -

Buyer holds a Sto___ Sh____ in the Cor_______. If Buyer (Owner) sells, he sells his Sto___ Sh____.

Answer 476

Cooperative (Buyer Holds) -

Buyer holds a Stock Share in the Corporation. If Buyer (Owner) sells; he sells his Stock Share

Chap 12

Question 477

Cooperative Taxes -

Corporation holds title to building and buyers purchase a unit as a stock share.

For Taxes:

There is Only O__ T__ St_____ for Entire Coo________.

Answer 477

Cooperative Taxes -

Corporation holds title to building and buyers purchase a unit as a stock share.

There is Only One Tax Statement for Entire Cooporative.

Chap 12

Question 478

Securities “Sale of Interest” -

With any Business Entity it is necessary to determine which P_____ has Au______ to Si__ on the Entitie’s behalf.

Answer 478

Securities “Sale of Interest” -

With any Business Entity it is necessary to determine which Person has Authority to Sign on the Entitie’s behalf.

Chap 12

Question 479

S__ for P______

Legal Action** used to **terminate a Tenancy in Common or Joint Tenancy.

Answer 479

Suit for Partition -

Legal Action** used to **terminate a Tenancy in Common or Joint Tenancy.

Chap 12

Question 480

Joint Tenancy

Ownership shared by 2 or more people, having Right to Survivorship.

1. Created by: (T____, T____, In_____ and Pos_____)
2. Nat_____ Pe____ Only (****No Corps****)
3. Joint Tenants can Convey In______.
4. Automatic Sur_______
5. Joint Interest conveyed become Tenants in Common, where interest pass to Heirs

Answer 480

Joint Tenancy -

Ownership shared by 2 or more people, having Right to Survivorship.

1. Created by: (Time, Title, Interest and Possession)
2. Natural Person Only (****No Corps****)
3. Joint Tenants can convey interest.
4. Automatic Survivorship
5. Joint Interest conveyed become Tenants in Common, where interest passes to Heirs

Chap 12

Question 481

G_______ P__________

In this partnership, each partner has F___ L______ for D____ of Partnership.

Answer 481

General Partnership -

Each partner has Full Liability for Debts of partnership.

Chap 12

Question 482

Does Tenancy in Common have a Right to Survivorship?

Answer 482

Tenancy in Common -

Has NO Right to Survivorship. It passes to Heirs

Chap 12

Question 483

Tenancy in Severalty what process is used for decedent’s estate?

Answer 483

Tenancy in Severalty -

At Decedent’s Death the estate is processed through Probate to pass to Heirs.

Question 484

Tenancy in Common -

What type of persons can take title?

Answer 484

Tenancy in Common -

Both Natural or Legal Persons may take title in this form.

Chap 12

Question 485

Joint Tenancy -

What can and cannot take title under Joint Tenancy?

Answer 485

Joint Tenancy -

1. Natural Persons - Can take title
2. Corps, Cities, etc - Cannot take title.

Chap 12

Question 486

Real Estate Syndications -

Pooling together Resources for Investment. (Such as: Gen_____ or Lim_____ Partnerships; Cor______, Limited L_______ Co; Tr___; and REIT’s.

Answer 486

Real Estate Syndications -

Pooling together Resources for Investment. (Such as: General or Limited Partnerships; Corporations, Limited Liabiility Co; Trust; and REIT’s.

Chap 12

Question 487

What Two Types of Title pass without Probate?

Answer 487

Pass Automatically without Probate -

1. Joint Tenancy wtih Right to Survivorship
2. Community Property with Right to Survivorship (1944)

Chap 12

Question 488

Tenancy in Common - has what type of Unity?

Answer 488

Tenancy in Common -

Unity - Possession Only

Chap 12

Question 489

A man and his brother purchase a condo as joint tenants. Their Interest in the common areas would be held as:

1. Community Property
2. Joint Tenants
3. Tenants In Common
4. Severalty

Answer 489

A man and his brother purchase a condo as joint tenants. Their Interest in the common areas would be held as:

1. Community Property
2. Joint Tenants
3. Tenants In Common
4. Severalty

Chap 12

Question 490

If a person owns a condominium they own:

1. Undivided Interest in Common Areas and a Separate Interest in the Unit
2. Undivided Interest in Whole, and Separate Interest in the Unit and Ownership of Land.
3. Separate Interest in the Whole
4. Divided Interest in Common Areas and Undivided Interest in the Unit

Answer 490

If a person owns a condominium they own:

1. Undivided Interest in Common Areas and a Separate Interest in the Unit
2. Undivided Interest in Whole, and Separate Interest in the Unit and Ownership of Land.
3. Separate Interest in the Whole
4. Divided Interest in Common Areas and Undivided Interest in the Unit

Chap 12

Question 491

Condominium Rules -

The rules that govern the condo are found in the B_______.

Answer 491

Condominium Rules -

The rules that govern the condo are found in the Bylaws.

Chap 12

Question 492

The Condominium Rules are found in the:

1. Master Deed
2. Bylaws and Corporate Chapter
3. Covenants, Conditions and Restrictions
4. Unit Owner’s Deed

Answer 492

The Condominium Rules are found in the:

1. Master Deed
2. Bylaws and Corporate Chapter
3. Covenants, Conditions and Restrictions
4. Unit Owner’s Deed

Chap 12

Question 493

An example of “Voluntary” Alienation is

1. Aquisition by Eminent Domain
2. Assignment by an Attorney-In-Fact
3. Loss of Property through Avulsion
4. Escheat of Property after a Person Dies instestate

Answer 493

An example of “Voluntary” Alienation is

1. Aquisition by Eminent Domain
2. Assignment by an Attorney-In-Fact
3. Loss of Property through Avulsion
4. Escheat of Property after a Person Dies instestate

Chap 12

Question 494

Can anyone use Tenancy In Severalty to take title?

Answer 494

Tenancy In Severalty -

Yes - Natural or Legal person (Corps, Cities, Etc) can take title in this form.

Chap 12

Question 495

Uncoerced Transfer by Gift or Deed or Document.

Example: Attorney-In Fact is when someone voluntarily gives power to another to handle any decisions made in an isolated transaction.

Answer 495

Voluntary Alienation -

Uncoerced Transfer by Gift or Deed or Document

Example: Attorney-In Fact is when someone voluntarily gives power to another to handle any decisions made in an isolated transaction.

Chap 12

Question 496

What Title can Corporations not take?

Answer 496

Corporations -

Joint Tenants - A Tile Corporations CANNOT TAKE, due to Perpetual Existance!

Chap 12

Question 497

Any Property received as a Gift or Inheritane, Purchased with Separate Funds or Acquired before Marriage is considered

1. Community Property
2. Tenancy in Severalty Property
3. Separate Property
4. Probate Proceedings will decide

Answer 497

Any Property received as a Gift or Inheritane, Purchased with Separate Funds or Acquired before Marriage is considered

1. Community Property
2. Tenancy in Severalty Property
3. Separate Property
4. Probate Proceedings will decide

Chap 12

Question 498

If a Limited Partnership took ownership in a building, with “distinct” and “undivided interest” and each partner could used that building for anything at anytime, what type of Title did they take?

1. Joint Tenancy
2. Community Property
3. Tenants In Common
4. Tenancy In Severalty since the General Partner assumes all liability

Answer 498

If a Limited Partnership took ownership in a building, with “distinct” and “undivided interest” and each partner could used that building for anything at anytime, what type of Title did they take?

1. Joint Tenancy
2. Community Property
3. Tenants In Common
4. Tenancy In Severalty since the General Partner assumes all liability

Chap 12

Question 499

Term used in the law of real property to describe an Act, by Court Order to Divide up a Concurrent Estate into Separate Portions representing the Proportionate Interests of the Owners of Property. It is sometimes described as a Forced Sale.

Answer 499

Suit for Partition -

Term used in the law of real property to describe an Act, by Court Order to Divide up a Concurrent Estate into Separate Portions representing the Proportionate Interests of the Owners of Property. It is sometimes described as a Forced Sale

Chap 12

Question 500

(REIT) Real Estate Investment Trust -

This pool of investors must Invest ___% fo its Assets in Real Estate. They must Payout ___% of Taxable Income to all Shareholders.

Answer 500

(REIT) Real Estate Investment Trust -

This pool of investors must Invest 75% fo its Assets in Real Estate. They must payout 90% of Taxable Income to all Shareholders.

Chap 12

Question 501

Condo Owners -

Must Pay P______ T___ and HOA Dues. Rules governing Condos can be found in the B_______.

Answer 501

Condo Owners -

Must Pay Property Taxes and HOA Dues. Rules governing Condos can be found in the Bylaws.

Chap 12

Question 502

Cooperative -

Cooperation holds Title to Building. And a Buyer gets stock shares, But what is also given to the Buyer?

Answer 502

Cooperatives -

Cooperation holds Title to Building. And a Buyer gets stock shares AND is given Proprietary Lease for Apt (No Deed is Given)

Chap 12

Question 503

When the grantor “will re-aquire” property, what is he called.

Answer 503

Reverter -

When the grantor “will re-aquire” property, he is called a Reverter

Chap 11

Question 504

Degree or Extent of Interest a person has in real property. Synonymous with r____, t____, in______, ten____, and eq____.

Answer 504

Estate -

Degree or Extent of Interest a person has in real property. Synonymous with right, title, interest, tenancy, and equity.

Chap 11

Question 505

What are the two categories of Estates?

Answer 505

Estates (2 Categories) -

1. Freehold Estate: (Fee Simple Absolute, Defeasible Simple, Life Estates)
2. Leasehold Estate: (Estate for Years, Period to Period, Estate at Will - Permission, Estate at Sufference - Tenant Holding Over Wrongfully)

Chap 11

Question 506

Which 3 types of Estates have an Ownership Interest?

Answer 506

Freehold Estates (Ownership Interest) -

Fee Simple Absolute: Highest Form, All bundle of rights forever.

Deafeasible Fee Simple: (Conditional Ownership), if violated reverts back to Grantor (reverter)

Life Estates - Interest created by life of a certain person.

Question 507

Which Type of Estate gives Right to Possess and Use of Another’s Property.

Answer 507

Leasehold Estate -

Gives Right to Possess and Use of Another’s Property.

Chap 11

Question 508

What are the 3 Types of Freehold Estates?

Answer 508

Freehold Estates (Types) -

1. Fee Simple Absolute (Highest Form of Ownership)
2. Defeasible Fee Simple (Conditional)
3. Life Estates (for Life of Certain Person)

Chap 11

Question 509

Which type of Freehold Estate gives Highest Form of Ownership, Absolute Ownership, and has all Bundle of Rights Forever?

Answer 509

Fee Simple Absolute-

Gives Highest Form of Ownership, Absolute Ownership and all Bundle of Rights Forever.

Chap 11

Question 510

Which type of Freehold Estate gives Conditional Ownership, and Reverts Back to Grantor (Reverter), if violated?

Answer 510

Defeasible Fee Simple -

Conditional Ownership, if violated Reverts Back to Grantor (Reverter).

1. Fee Simple Determinable (If Condition Occurs Ownership Ends)
2. Fee Simple Subject To Condition Subsequent (Condition Occurs Ownership May End)
3. Fee Simple Subject To Executory Limitation (Passes to 3rd Party)

Chap 11

Question 511

Which type of Freehold Estate gives Ownership Interest to a Life Tenant?

Answer 511

Life Estates -

Gives Ownership Interest to certain person (Life Tenant) for their life.

Chap 11

Question 512

Conv_______ L__ Estate -

Estate created by One Person for Another Person (Life Tenant).

1. Interest cannot be “Willed”
2. Waste cannot be committed.

Answer 512

Conventional Life Estate -

Estate created by One Person for Another Person (Life Tenant).

1. Interest cannot be “Willed”
2. Waste cannot be committed.

Chap 11

Question 513

Deliberate damage to property by life tenant is?

Answer 513

Waste -

Deliberate damage to property by life tenant

Chap 11

Question 514

An “Interest” held by Grantor (Reverter) by which Grantor will Re-aquire Interest is called?

Answer 514

Reversionary Interest (Estate in Reversion) -

An “Interest” held by Grantor (Reverter) by which Grantor will Re-aquire Interest.

Example: Son creates life estate for Mom and at Mom’s death interest “reverts back” to Son.

1. Mom holds a life estate (Warranty Deed)
2. Son holds a Reversionary Interest (Estate in Reversion)

Chap 11

Question 515

Life Estate example, what type of “Interest” does son hold?

1. Mom holds life estate
2. Son is the grantor which will re-aquire estate.

Answer 515

Reversionary Interest (Estate in Reversion)

Life Estate example where:

1. Mom holds life estate
2. Son is the grantor which will re-aquire estate.

Chap 11

Question 516

An Interest held by a Another Person Than the Grantor by which they will Acquire a Greater Interest in the Future (ex: death of grantor)?

Answer 516

Remainder Interest (Person is: Remainderman) -

An Interest held by a Another Person Than the Grantor by which they will Acquire a Greater Interest in the Future (example: death of grantor).

Chap 11

Question 517

Estate in Rem_____ (Rem_______ In______)

Son created Life Estate for Mom. Son is Grantor but Holds No Interest. Sister will Acquire Interest upon Mom’s death. What interest will Sis hold?

Answer 517

Estate in Remainder (Remainder Interest) - Sis holds this interest.

Life Estate where: Son creates Life Estate for Mom. Son is Grantor but holds No Interest. Sister will acquire interest upon Mom’s death.

Chap 11

Question 518

Life estate where Mom conveys Fee Simple Title to Son, and holds Life Estate for Herself.

What type of interest does Son hold?

Answer 518

Son holds - Remainder Interest (Estate in Remainder)

Life estate where Mom conveys Fee Simple Title to Son, and holds Life Estate for Herself. Son will hold Greater Interest in Future

Chap 11

Question 519

Type of Estates that gives Right to Possess and Use Another’s Property. The Rights are Evidence by Lease (Demise)?

Answer 519

Leasehold Estates (Conditional Ownership) -

Types of Estates that gives Right to Possess and Use of Another’s Property . The Rights are Evidence by Lease (Demise)

Chap 11

Question 520

Leasehold Estates Tenancies -

1. Estate for _____ (Tenancy) - Ending Date and No Notice Needed
2. Estate from _______ - Indefinite Period and *****NOTICE NEEDED******
3. Estate at ______ - Unspecified Permission and No Notice Needed
4. Estate of _________- Hold-over after Expiration

Answer 520

Leasehold Estates Tenancies -

1. Estate for Years (Tenancy) - Ending Date and No Notice)
2. Estate from Period to Period - Indefinite Period ****NOTICE NEEDED*****
3. Estate at Will - Unspecified Permission/No Notice
4. Estate of Sufferance - Hold-over after Expiration

Chap 11

Question 521

Which Leasehold Estate has a Ending Date, but requires “no notice” to terminate?

Answer 521

Estate Tenancy for Years (ENDS) -

1. Ending Date (Specified Time)
2. No Notice - to terminate

Chap 11

Question 522

Which Leasehold Estate has an Indefinite Duration, and REQUIRES NOTICE to terminate?

Answer 522

Estate Period to Period -

1. Indefinite Duration (No End Date) - Month to Month, Year to Year
2. REQUIRED ****NOTICE NEEDED****

Chap 11

Question 523

Which Leasehold Estate gives

1. Permission/Privilege to Use
2. Unspecified Time Frame
3. No Notice** to **Terminate

Answer 523

Estate at Will

1. Permission/Privilege to Use
2. Unspecified Time Frame
3. No Notice to Terminate

Chap 11

Question 524

Tenant remains on property after lease expires is what type of tenancy?

Answer 524

Holdover Tenancy -

Tenant remains on property after lease expires

Chap 11

Question 525

A Lease in which the Lessee (becomes Sub-Lessor) by entering into a “separate lease” with another Lessee (who become Sub-Lessee)?

Answer 525

Sublease (Sandwich Lease) -

A Lease in which the Lessee (becomes Sub-Lessor) by entering into a “separate lease“ with another Lessee (who becomes Sub-Lessee). Sub-Lessee pays rent to Lessee/Sub-lessor, who pays Landlord/Lessor.

Chap 11

Question 526

A Lease where the Lessee (Assignor) transfers all rights to lease to 3rd party** **(Assignee) who takes over lease and who pays Lessor directly?

Answer 526

Assignment of Lease -

A lease where the Lessee (Assignor)** **transfers all rights to lease to 3rd party (Assignee) who takes over lease and who pays Lessor directly

Chap 11

Question 527

Liability in a Sublease (Sandwich)

1. Sandwich - Sub-Lessee (2nd Lessee) Liable to Orig. Lessee(Sub-Lessor) -
   * Liable to Landlord/Lessor - ___________
2. Assignment - Assignor-Lesee and Assignor (3rd Party) -
   * Liable to Landlord/Lessor - ___________

Answer 527

Liability in a Sublease (Sandwich)

1. Sandwich - Sub-Lessee (2nd Lessee) Liable to Orig. Lessee(Sub-Lessor)
   * Liable to Landlord/Lessor - Orig Lessee/Sub-Lessor
2. Assignment - Assignor-Lessee and Assignor (3rd Party)
   * Liable to Landlord/Lessor - Both

Chap 11

Question 528

Liability in Assignment -

1. Assignor re-asigns Lease to (3rd Party)
2. Assignee/Sub-Lessee (takes of over lease) and PAYS LANDLORD RENT
3. Who is Liable to Landlord for non-payment?

Answer 528

Liability in Assignment -

1. Assignor re-asigns Lease to (3rd Party)
2. Assignee/Sub-Lessee (takes of over lease) and PAYS LANDLORD RENT
3. Liable to Lessor/Landlord - Both

Question 529

Rent stated in Lease is called?

Answer 529

Contract Rent -

Rent stated in Lease

Chap 11

Question 530

Current Market Rent that could be obtained is called?

Answer 530

Economic Rent -

Current Market Rent that could be obtained

Chap 11

Question 531

Lease in which the “Economic Rent is higher” than Contract Rent

Answer 531

Positive Leasehold -

Lease in which the “Economic Rent is higher” than Contract Rent.

Chap 11

Question 532

Lease in which the “Contract Rent is higher” than the Economic rent.

Answer 532

Negative Leasehold -

Lease in which the “Contract Rent is higher” than the Economic Rent

Chap 11

Question 533

T______ Im_________

Alterations or Improvements to a “leased space” to configure the space for the tenant’s needs. Made by owner or leaseholder to make it more appealing or useful for tenant.

Answer 533

Tenant Improvements -

Alterations or Improvements to a “leased space” to configure the space for the tenant’s needs. Made by owner or leaseholder to make it more appealing or useful for tenant.

Chap 11

Question 534

Made up of roof, walls, floor, windows, and doors. Everything that separate the inside of a building from the outside!

Answer 534

Building Shell -

Made up of roof, walls, floor, windows, and doors. Everything that separate the inside of a building from the outside!

Chap 11

Question 535

C_______ of Oc_______ - Gov Cert

Government Certificate stating commercial building is in Compliance with “Building Codes“ and “Suitable for Occupancy“

Answer 535

Certificate of Occupancy - Gov Cert

Government Certificate stating commercial building is in Compliance with “Building Codes“ and “Suitable for Occupancy“

Chap 11

Question 536

(CAMs) Com___ Area M________ Charges -

Fees charged to Commercial Tenants for Parking Lots, Walkways, Area Lighting etc.

Answer 536

(CAMs) Common Area Maintenance Charges -

Fees charged to Commercial Tenants for Parking Lots, Walkways, Area Lighting etc.

Chap 11

Question 537

Ex_____ St___ - (Tenant Pays Increase Tax and Utilities)

1. Landlord’s Operating Expenses - Provision Limit
2. Tenant Pays Increases In - Ta__, He____/Co_____.

Answer 537

Expense Stop - (Tenant Pays Increase Tax and Utilities)

1. Landlord’s Operating Expenses - Provision Limit
2. Tenant Pays Increases In - Taxes, Heating/Cooling.

Chap 11

Question 538

Development Project by which developer completes building, and it becomes “Move in Ready”

Answer 538

Turnkey Project -

Development Project by which developer completes building, and it becomes “Move in Ready”

Chap 11

Question 539

7 Ways to Terminate a Lease -

1. Sur_____ and Acc_______
2. Exp_____ of Term (Estate for Years - Ends)
3. Em_____ Dom____
4. Actual Ev_____ (Breach of Tenant)
5. Constructive Ev_____ (Breach of Landlord)
6. Dest______ of Property
7. Foreclosure of Mor______ (Protect Tenants At Forclosure Act - 90 days)

Answer 539

7 Ways to Terminate a Lease -

1. Surrender and Acceptance
2. Expiration of Term (Estate for Years - Ends)
3. Eminent Domain
4. Actual Eviction (Breach of Tenant)
5. Constructive Eviction (Breach of Landlord)
6. Destruction of Property
7. Foreclosure of Mortgage (Protect Tenants At Forclosure Act - 90 days)

Chap 11

Question 540

Sur______ and A________ -

Mutual Agreement to End Lease is?

Answer 540

Surrender and Acceptance -

Mutual Agreement to End the Lease

Chap 11

Question 541

Estate for Years how does this terminate?

Answer 541

Estate Tenancy for Years (Ends) -

Ending Date (Expiration of Term) Terminates Lease - No Notice

Chap 11

Question 542

Eminent Domain - Condem_______ Clause

Clause that “Cancels Lease” if Eminent Domain is exercised. (Usually found in commercial lease).

Answer 542

Eminent Domain - Condemnation Clause

Clause that “Cancels Lease” if Eminent Domain is exercised. (Usually found in commercial lease).

Chap 11

Question 543

A_____ E_______ - (Tenant Breach)

1. When Tenant fails to Perform Obligations,
2. Lessor Sues for Possession.

Answer 543

Actual Eviction - (Tenant Breach)

1. When Tenant fails to Perform Obligations,
2. Lessor Sues for Possession.

Chap 11

Question 544

C________ E_______ - (Landlord Breach)

When Landlord fails to Perform Obligations. Tenant can Terminate and Sue for Damages.

Answer 544

Constructive Eviction - (Landlord Breach)

When Landlord fails to Perform Obligations. Tenant can Terminate and Sue for Damages.

Chap 11

Question 545

Can destruction of property terminate a lease?

Answer 545

Yes -

Destruction of property can terminate a lease

Chap 11

Question 546

“Protecting Tenants at Foreclosure Act” -

1. Give tenants min of ___ days and Notice to Vacate OR
2. Honor Remaining Term of Lease - if greater than 90 days.

Answer 546

“Protecting Tenants at Foreclosure Act” -

1. Give tenants min of 90 days and Notice to Vacate. OR
2. Honor Remaining Term of Lease if greater than 90 days.

Chap 11

Question 547

How does death effect a Lease** or **Sale of Property?

Answer 547

How Death Effects Lease/Sale of Property -

1. Death (Lessor/Lessee) - does not terminate!
2. Sale of Property - does not terminate

Chap 11

Question 548

Lessor’s Rights -

1. Receives R___
2. Rev________ Right (termination of lease)

Answer 548

Lessor’s Rights -

1. Receives Rent
2. Reversionary Right (termination of lease)

Chap 11

Question 549

Right of Q_____ En______ -

Use of P_____ without Inter_________ by Lessor or others claiming superior title.

Answer 549

Right of Quiet Enjoyment -

Use of Property without Interference by Lessor or others claiming superior title.

Chap 11

Question 550

Tr___ Fi______ - Operation of Biz

1. Tenant’s Personal Property used in “Operation of Business”(Examples: Draperies, Machinery.)
2. Must “Remove” before Termination of Lease.

Answer 550

Trade Fixtures - Operation of Biz

1. Tenant’s Personal Property used in Operation of Business (Examples: Draperies, Machinery).
2. Must “Remove” before Termination of Lease

Chap 11

Question 551

Ownership is created for Life of a Person, what is holder called?

Answer 551

Life Tenant -

When ownership is created for life of a person, that person is called a Life Tenant.

Chap 11

Question 552

Life estate for Mom and at Mom’s death will revert back to grantor (Son), is what type of Estate?

Answer 552

Estate in Reversion -

Life estate for Mom and at Mom’s death will revert back to grantor (Son)

Chap 11

Question 553

Grantor creates life estate for Mom, and after her death it reverts to Sister. What type of Estate?

Answer 553

Estate In Remainder -

Grantor creates life estate for Mom, and after her death it reverts to Sister. Sister also know as Remainderman.

Chap 11

Question 554

When an Estate is created for One Person, but reverts to another other than grantor. That person is called?

Answer 554

Remainderman -

When an estate is created for one person, but reverts someone other than Grantor.

Chap 11

Question 555

Another word for Lease is?

Answer 555

Demise -

Another word for Lease

Chap 11

Question 556

Another word for Landlord

Answer 556

Lessor -

Another word for Landlord

Chap 11

Question 557

Another word for Tenant

Answer 557

Lessee -

Another word for Tenant

Chap 11

Question 558

Estate at S__________ -

Existing lease terminated, but “Tenant is “Holding Over” wrongfully. Rent neither Paid/Accepted.

Answer 558

Estate at Sufferance -

Existing lease terminated, but “Tenant is “Holding Over” wrongfully. Rent neither Paid/Accepted.

Chap 11

Question 559

Gr___ Lease - (Lessor Pays Expenses)

1. Rent is a “Fi___ Amount” for tenant.
2. Lessor Pays ALL “P______ Ex_____.”

Gross - Without Deduction

Answer 559

Gross Lease - (Lessor Pays Expenses)

1. Rent is a “Fixed Amount” for tenant.
2. Lessor Pays ALL “Property Expenses.”

Gross - Withiout Deduction

Chap 11

Question 560

Net Lease aka Triple Net Lease - (Tenant Pays Expenses)

Tenant Pays:

1. F__ Am_____ Rent, plus
2. Property Exp____, Ut___, Real Estate T____, Ins_____ Pre_____, Mai______

Landlord Pays:

1. Mor_____ (Debt Service)

Answer 560

Net Lease aka Triple Net Lease - (Tenant Pays Expenses)

Tenant Pays:

1. Fix Amount Rent, PLUS
2. Property Expenses, Utilities, Real Estate Taxes, Insurance Premiums, Maintenance

Landlord Pays:

1. Mortgage (Debt Service)

Chap 11

Question 561

Percentage Lease - (% of Gross Sales Paid)

1. Base Minumum Rent paid, plus % of Gr___ S___ Volume
2. Common: Retail Space Ex: Shopping Malls

Answer 561

Percentage Lease - (% of Gross Sales Paid)

1. Base Minimum Rent paid, plus % of Gross Sales Volume
2. Common: Retail Space Ex: Shopping Malls

Chap 11

Question 562

Lease for “Land Only”

Answer 562

Ground Lease -

Lease for “Land Only”

Chap 11

Question 563

Sale Leaseback - (Rent Tax Deductable)

Seller sells Property to Investor, which Leases Property B__ to S_____.

Benefits to Seller (Tenant)

1. Frees up Working Ca_____
2. Rent - Tax Ded______

Disadvantages to Seller (Tenant)

1. No More Dep______ or Ap______ for Taxes

Answer 563

Sale Leaseback - (Rent Tax Deductable)

Seller sells Property to Investor, which Leases Property Back to Seller.

Benefits to Seller (Tenant)

1. Frees up Working Capital
2. Rent - Tax Deduction

Disadvantages to Seller (Tenant)

1. No More Depreciation or Appreciation for Taxes

Chap 11

Question 564

Grad______ Lease - (Rent Increase/Decrease)

Lease with an Es______ Clause that calls for Increase/Decreases in Rent at specified intervals.

Answer 564

Graduated Lease - (Rent Increase/Decrease)

Lease with an Escalator Clause that calls for Increase/Decreases in Rent at specified intervals.

Chap 11

Question 565

Es________ Clause -

1. Definition - In a lease or contract that guarantees a change in the agreement price once a particular factor beyond control of either party affecting the value has been determined (Ex: Inflation)
2. Purchase Contract: Buyer Will Pay a certain amount of Money above the Hi_____ Offer the Seller Receives.
3. Commercial Leases: Rent Increases by % and tide to Consumer Price Index. Operating Expenses Increase by Annual Budget Basis and collected as Rent Increases.

Answer 565

Escalator Clause -

1. Definition - In a lease or contract that guarantees a change in the agreement price once a particular factor beyond control of either party affecting the value has been determined (Ex: Inflation)
2. Purchase Contract: Buyer Will Pay a certain amount of Money above the Highest Offer the Seller Receives.
3. Commercial Leases: Rent Increases by % and tide to Consumer Price Index. Operating Expenses Increase by Annual Budget Basis and collected as Rent Increases.

Chap 11

Question 566

Lease with Rent is tied to an Index, such as Consumer Price Index. Can go up or down.

Answer 566

Index Lease -

Lease with Rent is tied to an index, such as Consumer Price Index. Can go up or down.

Chap 11

Question 567

An____ Lease - (Major Tenant)

Lease with a Major Tenant such as a “Dep______ Store or Sup________.”

Answer 567

Anchor Lease - (Major Tenant)

Lease with a Major Tenant such as a “Department Store or Supermarket.”

Chap 11

Question 568

L____ O______ -

Lease with Option to Buy or Re-Lease. Option is a right to buy or lease a property within “specified period,” for a “specified price and term.”

Answer 568

Lease Option -

Lease with Option to Buy or Re-Lease. Option is a right to buy or lease a property within “specified period,” for a “specified price and term.”

Chap 11

Question 569

Lease in a Cooperative in which the tenant has the right to rent a particular unit from a corporation. (usually in a corporate lease)

Answer 569

Proprietary Lease -

Lease in a Cooperative in which the tenant has the right to rent a particular unit (usually in a corporate lease)

Chap 11

Question 570

Section 8 Lease

“Federal R___ Subsidy Program” for Low-to-Moderate Inc____ Fam____ that “pays a portion” of the Tenant’s Rent to the Landlord.

Answer 570

Section 8 Lease -

Federal Rent Subsidy Program for Low-to-Moderate Income Families that “pays a portion” of the Renant’s Rent to the Landlord.

Chap 11

Question 571

Freehold/Lease Estates -

1. Fee Simple - Hi_____ Own______
2. Defeasible Fee Simple - Con_______ Ownership
3. Life Estate - Interest for Life of A______ Person
4. Leasehold Estate - R____ to Pos_____ and Use of Another Property

Answer 571

Freehold/Lease Estates -

1. Fee Simple - Highest Ownership
2. Defeasible Fee Simple - Conditional Ownership
3. Life Estate - Interest for Life of Person
4. Leasehold Estate - Right to Possess and Use Another’s Property

Chap 11

Question 572

Types of Tile -

1. Severalty - Sole and Separate
2. Community - Property in Marriage (heirs).
3. CPWRS - Passes to Surviving spouse
4. JTWRS - Passes to surviving Joint Tenants - NO CORPS (Time Title Interest Possess)
5. Tenants in Common - Undivided interests, heirs, (Possession)

Answer 572

Types of Tile -

1. Severalty - Sole and Separate
2. Community - Property in Marriage (heirs).
3. CPWRS - Passes to Surviving spouse
4. JTWRS - Passes to surviving Joint Tenants - NO CORPS (Time Title Interest Possess)
5. Tenants in Common - Undivided interests, heirs, (Possession)

Chap 11

Question 573

Cur____ -

The life estate that a husband has in the estate of his deceased wife

Answer 573

Curtesy -

The life estate that a husband has in the estate of his deceased wife

Chap 11

Question 574

Ejectment -

Legal Proceeding to Reg____ Pos_____ of the property for Breach of Lease…aka - Forcible En____ & Det_____ Action. (Actual Eviction- Tenant Breach)

Answer 574

Ejectment -

Legal Proceeding to regain possession of the property for Breach of Lease…aka - Forcible Entry & Detainer Action. This is Actual Eviction (Tenant Breach)

Chap 11

Question 575

Gift of Personal Property through a Will

Answer 575

Bequest (Legacy) -

Gift of Personal Property through a Will

Chap 11

Question 576

Trade Fixtures - Biz Operations

1. Tenant’s Pe______ Pro_______ used in “Operation of Business.” Ex: Draperies, Machinery
2. Must “R_____” before Termination

Answer 576

Trade Fixtures - Bus Operations

1. Tenant’s Personal Property used in “Operation of Business” Ex: Draperies, Machinery.
2. Must “Remove” before Termination

Chap 11

Question 577

Trade Fixtures - Biz Operations

1. Tenant’s Pe______ Pro_______ used in “Operation of Business.” Ex: Draperies, Machinery
2. Must “R_____” before Termination

Answer 577

Trade Fixtures - Biz Operations

1. Tenant’s Personal Property used in “Operation of Business.” Ex: Draperies, Machinery
2. Must “Remove” before Termination

Chap 11

Question 578

C_______

The life estate that a husband has in the estate of his deceased wife

Answer 578

Curtesy -

The life estate that a husband has in the estate of his deceased wife

Chap 11

Question 579

Gift of Personal Property through a “Will.”

Answer 579

Bequest (Legacy) -

Gift of Personal Property through a “Will.”

Chap 11

Question 580

B______ (Legacy)

Gift of Personal Property by Will

Answer 580

Bequest (Legacy) -

Gift of Personal Property by Will

Chap 11

Question 581

B______ (Legacy)

Gift of Personal Property through a “Will.”

Answer 581

Bequest (Legacy) -

Gift of Personal Property through a “Will.”

Chap 11

Question 582

Freehold Estates (Ownership Interest) -

1. Fee Simple Ab_______: Highest Form, All bundle of rights forever.
2. D_________ Fee Simple: (Conditional Ownership), if violated reverts back to Grantor (reverter)
3. L____ Estates - Interest created by life of a certain person.

Answer 582

Freehold Estates (Ownership Interest) -

1. Fee Simple Absolute: Highest Form, All bundle of rights forever.
2. Deafeasible Fee Simple: (Conditional Ownership), if violated reverts back to Grantor (reverter)
3. Life Estates - Interest created by life of a certain person.

Chap 11

Question 583

(CAMs) Common Area Maintenance Charges -

Fees charged to Commercial Tenants for P____ Lots, Wal____, Area Li______ etc.

Answer 583

(CAMs) Common Area Maintenance Charges -

Fees charged to “Commercial Tenants” for Parking Lots, Walkways, Area Lighting etc.

Chap 11

Question 584

Ex______ S____ - (Tenant Increase Tax-Utilities)

1. Landlord’s Op______ Ex_______ (Provision Limit Expense)
2. Tenant pays Increases in T____, and Utilities such as He____/Co_____.

Answer 584

Expense Stop - (Tenant Increase Tax-Utilities)

1. Landlord’s Operating Expenses (Provision Limit Expense)
2. Tenant pays Increases in Taxes, Utilities such as Heating/Cooling.

Chap 11

Question 585

Def_______ F____ S______ -

Conditional Ownership, if violated Reverts Back to Grantor (Reverter).

Answer 585

Defeasible Fee Simple -

Conditional Ownership, if violated Reverts Back to Grantor (Reverter).

1. Fee Simple Determinable (If Condition Occurs Ownership Ends)
2. Fee Simple Subject To Condition Subsequent (Condition Occurs Ownership May End)
3. Fee Simple Subject To Executory Limitation (Passes to 3rd Party)

Chap 11

Question 586

Freehold Estates (Ownership Interest) -

F__ S______ Ab______: Highest Form, All bundle of rights forever.

D________ F__ S______: (Conditional Ownership), if violated reverts back to Grantor (reverter)

L___ Es_____ - Interest created by life of a certain person.

Answer 586

Freehold Estates (Ownership Interest) -

Fee Simple Absolute: Highest Form, All bundle of rights forever.

Deafeasible Fee Simple: (Conditional Ownership), if violated reverts back to Grantor (reverter)

Life Estates - Interest created by life of a certain person.

Chap 11

Question 587

Estate -

Deg__ or Ext_____ of Int_____ a person has in real property. Synonymous with right, title, interest, tenancy, and equity.

Answer 587

Estate -

Degree or Extent of Interest a person has in real property. Synonymous with right, title, interest, tenancy, and equity.

Chap 11

Question 588

Ej________

The proper way to remove a person other than a tenant who is in possession of real property.

Answer 588

Ejectment -

The proper way to remove a person other than a tenant who is in possession of real property.

Question 589

F______ Entry and D______ Action

A court proceeding used to evicted a tenant for Breach of One or More Provisions of the Lease Agreement. Valid reasons for eviction may include:

1. Failure to Pay Rent on time
2. Harboring Pets or Persons “not authorized” to reside at the premises under the Lease
3. Illegal or Criminal Activity on the Property

Answer 589

Forceble Entry & Detainer Action -

A _court procee_ding used to evicted a tenant for Breach of One or More Provisions of the Lease Agreement. Valid reasons for eviction may include:

1. Failure to Pay Rent on time
2. Harboring Pets or Persons “not authorized” to reside at the premises under the Lease
3. Illegal or Criminal Activity on the Property

Chap 11

Question 590

(CAMs) C_____ A___ Main_____ Charges -

Fees charged to “Commercial Tenants” for Parking Lots**, **Walkways**, **Area Lighting etc.

Answer 590

(CAMs) Common Area Maintenance Charges -

Fees charged to “Commercial Tenants” for Parking Lots**, **Walkways**, **Area Lighting etc.

Chap 11

Question 591

Right to Buy or Lease a Property within a Specified Period for a Specified Price and Terms. Holder of Option: may or may not choose to Exercise the Right. Only binding on Optionor(Owner).

Answer 591

Option -

Right to Buy or Lease a Property within a Specified Period for a Specified Price and Terms. Holder of Option: may or may not choose to Exercise the Right. Only binding on Optionor(Owner).

Chap 11 (From Chap 3)

Question 592

In a lease with an option to purchase the option is enforceable by:

1. Optionor
2. Optionee
3. Either Party
4. Nether Party

Answer 592

In a lease with an option to purchase the option is enforceable by:

1. Optionor
2. Optionee
3. Either Party
4. Nether Party

Chap 11

Question 593

The BEST example of a percentage lease would be a lease in which the rent was a percentage of the tenant’s

1. Gross Income
2. Net Income
3. Net Receipts with a Minimum Rent
4. Gross Receipts with a Minimum Rent

Answer 593

The BEST example of a percentage lease would be a lease in which the rent was a percentage of the tenant’s

1. Gross Income
2. Net Income
3. Net Receipts with a Minimum Rent
4. Gross Receipts with a Minimum Rent

Chap 11

Question 594

A tenant is leasing a property which the tenant is interested in buying. The owners are not sure they want to sell at this time. What type of contract would give the owners the most freedom.

1. Option
2. Purchase Contract
3. Right of First Refusal
4. Lease-Option

Answer 594

A tenant is leasing a property which the tenant is interested in buying. The owners are not sure they want to sell at this time. What type of contract would give the owners the most freedom.

1. Option
2. Purchase Contract
3. Right of First Refusal
4. Lease-Option

Question 595

A tenant rents a commercial space and installs a range above an oven used in the tenant’s business. The range hood is an:

1. Improvement to the Property and Part of Real Estate
2. Fixture which is Permanently attached and Cannot be removed
3. Trade Fixture and can be Removed by the Tenant prior to the Lease Expiration
4. Trade Fixture which can be Removed if the Tenant pays the Landlord for the Cost of the Range Hood

Answer 595

A tenant rents a commercial space and installs a range above an oven used in the tenant’s business. The range hood is an:

1. Improvement to the Property and Part of Real Estate
2. Fixture which is Permanently attached and Cannot be removed
3. Trade Fixture and can be Removed by the Tenant prior to the Lease Expiration
4. Trade Fixture which can be Removed if the Tenant pays the Landlord for the Cost of the Range Hood

Chap 11

Question 596

B Sold a property to Y and reserved a Life Estate for himself. Y recorded the deed. B sold his Life Estate to D who recorded the deed. Y demanded the property pass to her in Fee Simple Title immediately. In this case:

1. Y’s claim is invalid beacuse B controls his interest while alive
2. Y’s claim is valid
3. Neither Y nor B have a claim to this property
4. B needed to obtain Y’s permission to make the transfer.

Answer 596

B Sold a property to Y and reserved a Life Estate for himself. Y recorded the deed. B sold his Life Estate to D who recorded the deed. Y demanded the property pass to her in Fee Simple Title immediately. In this case:

1. Y’s claim is invalid beacuse B controls his interest while alive
2. Y’s claim is valid
3. Neither Y nor B have a claim to this property
4. B needed to obtain Y’s permission to make the transfer.

Question 597

Under tthe Federal Protecting Tenants at Foreclosure Act all the following are correct EXCEPT:

1. Tenants must receive at lease 90 Days Notice to Vacate
2. Leases that were in force prior to the beginning of Foreclosure must be honored
3. Tenants who are evicted must receive Cash for Keys
4. The Act does not Protect Commerical Tenants

Answer 597

Under tthe Federal Protecting Tenants at Foreclosure Act all the following are correct EXCEPT:

1. Tenants must receive at lease 90 Days Notice to Vacate
2. Leases that were in force prior to the beginning of Foreclosure must be honored
3. Tenants who are evicted must receive Cash for Keys
4. The Act does not Protect Commerical Tenants

Chap 11

Question 598

The “Income Remaining” after Operating Expenses deducted** **from the Gross Income (Annual Rent Collected)

Answer 598

Net Operating Income -

The “Income Remaining” after Operating Expenses deducted from the Gross Income (Annual Rent Collected)

Chap 10

Question 599

Income Approach Methods are:

1. Cap_______ - (Income = Value x Rate)
2. G_____ Rent M______ - Value/GI =
3. Recon________ Data - 3 Appraisal Methods Together

Answer 599

Income Approach Methods are:

1. Capitalization - (Income = Value x Rate)
2. Gross Rent Multiplier - Value/GI = GRM
3. Reconciliation Data - 3 Appraisal Methods Together

Chap 10

Question 600

Ec_______ L___

Period of time of which a Property will Produce Income.

Answer 600

Economic Life -

Period of time of which a Property will Produce Income.

Chap 10

Question 601

Gross Annual Income - Operating Expenses equals what?

Answer 601

Net Income aka Net Operating Income -

Gross Annual Income - Operating Expenses

Chap 10

Question 602

Rate of Return an Investor wants to receive for a property is called?

Answer 602

Capitalization Rate (Cap Rate) -

Rate of Return an investor wants to receive for a property.

Chap 10

Question 603

Using the Capitalization Method, how do you determine Value?

Answer 603

Capitalization Method - To Determine Value

Net Income (yr) / Cap Rate(Rate of Return) = Value

• Formula: (I=RV)
• Net Income (Yr)
• Value x Cap Rate

Chap 10

Question 604

What is sometimes used to determine “Value” on Smaller Income Properties?

V=GGI

Answer 604

(GRM) Gross Rent Multiplier for Smaller Income Properties - Formula V=GGI

Answer: GRM x Gross Income (Mo) = Value

• Value
• GRM x Gross Inc Mo (Subj)

Chap 10

Question 605

What is formula to determine Value for Small Income Properties using GRM?

V=GGI

Answer 605

Formula to determine Value for Small Income Properties, using GRM

Answer: GRM X Gross Inc (Mo) = Value-Price

• Sales Price Formula V=GGI
• Gross Inc Mo x GRM

Chap 10

Question 606

(EPA) Env_______ Prot______ Ag____

Regulates Federal Environmental Rules and Laws.

Answer 606

(EPA) Environmental Protection Agency - Federal

Regulates Federal Environmental Rules and Laws.

Chap 10

Question 607

(ADEQ) Ar____ Dept of Env_________ Q______

Sets State Environmental Standards

Answer 607

(ADEQ) Arizona Dept of Environmental Quality -

Sets State Environmental Standards

Chap 10

Question 608

(ADWR) A______ Dept of W____ R______ -

Regulates use of Ground Water

Answer 608

(ADWR) Arizona Dept of Water Resources -

Regulates use of Ground Water

Chap 10

Question 609

(ADRE) Arizona D___ of R___ E_____ -

Must obey Commissioner’s Rules Requirements to Disclosure

Answer 609

(ADRE) Arizona Dept of Real Estate -

Must obey Commissioner’s Rules Requirements to Disclosure

Chap 10

Question 610

HUD Title __ (Requirements) -

Lead Base requirements are found under HUD Title __ for Pre-1978 Building’s with Lead Paint.

Answer 610

HUD Title X (Requirements) -

Lead Base requirements are found under HUD Title X for Pre-1978 Building’s with Lead Paint.

Chap 10

Question 611

Lead Base Paint (HUD Title X)

1. Built Pre ____- Disclose Presence of Known Lead in Residential Homes
2. R_____ - Provide Buyer/Leasee with
3. “Lead Base P_____ P______“ - Provide Buyer
4. Risk Assessment Inspection - Purchaser has ___ dys or agreed time to conduct
5. Dis_____/Ack________ Language -Sales/Lease Contracts must include.

Answer 611

Lead Base Paint (HUD Title X) -

1. Built Pre 1978 - Disclose Presence of Known Lead in Residential Homes
2. Records - Provide Buyer/Leasee with
3. “Lead Base Paint Pamphlet” - Provide Buyer
4. Risk Assessment Inspection - Purchaser has 10 days or agreed time to conduct
5. Disclose/Acknowlegment Language -Sales/Lease Contracts must include.

Chap 10

Question 612

R_____

1. Natural Odorless, Tasteless Radioactive Gas -
2. Causes L___ C_____

Answer 612

Radon -

1. Natural Odorless, Tasteless Radioactive Gas -
2. Causes Lung Cancer

Chap 10

Question 613

Asb_______

1. Tiny Airborne Fi___
2. Creates Resp______ Diseases

Answer 613

Asbestos -

1. Tiny Airborne Fiber -
2. Creates Respiratory Diseases

Chap 10

Question 614

M____

1. Caused by Ex____ Moi____
2. Airtight Windows

Answer 614

Mold -

1. Caused by Excess Moisture
2. Airtight Windows

Chap 10

Question 615

Surface and Ground Water Contamination -

Types of contamination:

1. Conta______ Well S____
2. Underground Pl_____
3. W____ Disp__ Sy____
4. Le__king Underground Stor___ Ta___ (LUST)

Answer 615

Surface and Ground Water Contamination -

Types of contamination:

1. Contaminated Well Sites
2. Underground Plumes
3. Waste Disposal Systems
4. Leaking Underground Storage Tank (LUST)

Chap 10

Question 616

Soil Contamination (4)

1. Pestic_____
2. Herbic____
3. Fert_____ and
4. Sol______

Answer 616

Soil Contaminations as follows -

1. Pesticides
2. Herbicides
3. Fertilizers and
4. Solvents

Chap 10

Question 617

Expansive Soil -

Soils that may Ab_____ W____ and Ex____

Answer 617

Expansive Soil -

Soils that may Absorb Water and Expand

Chap 10

Question 618

Fiss___

Cracks that occur on Valley Floors from Extensive Groundwater Withd_____

Answer 618

Fissures -

Cracks that occur on Valley Floors from Extensive Groundwater Withdrawal

Chap 10

Question 619

B_______

Def____, Aban______ Commercial or Industrial Site contaminated with Toxic Waste.

Answer 619

Brownfield -

Defunct, Abandoned Commercial or Industrial Site contaminated with Toxic Waste.

Chap 10

Question 620

Disc______ aka D__ Dil_______ -

Process of Investigating the Property to determine if Hazardous Substances or Pollution exist. Agent exercises Reasonable Skill and Care and must Disclose

Answer 620

Discovery aka Due Diligence -

Process of Investigating the Property to determine if Hazardous Substances or Pollution exist. Agent exercises Reasonable Skill and Care and must Disclose.

Chap 10

Question 621

Phase 1 Assessment -

Process of Inspecting Property, the Rev___ of Public Records and Int_______ Owners/Tenants to determine if Contamination Exist.

Answer 621

Phase 1 Assessment -

Process of Inspecting Property, the Review of Public Records and Interviewing Owners/Tenants to determine if Contamination Exist.

Chap 10

Question 622

Phase 2 Assessment -

Process of Taking S_____ to Analyze if Poll______ exists.

Remember: Phase 1 - Inspecting Property; Review Public Records, Interview Owners/Tenants to determin if contamination exists.

Answer 622

Phase 2 Assessment -

Process of Taking Samples taken to Analyze if Pollution exists.

Remember: Phase 1 - Inspecting Property; Review Public Records, Interview Owners/Tenants to determin if contamination exists.

Chap 10

Question 623

Phase 3 Assessment -

C____ Samples taken and Ac____ C____-Up of Contamination

Answer 623

Phase 3 Assessment -

Core Samples taken and Actual Clean-up of Contamination

Chap 10

Question 624

Superfund/Mini-Superfund - Property Location -

R_____ must Dis_____ Knowledge of property located in boundaries of Super or Mini-Superfund as per Real Estate Comissioner

Answer 624

Superfund/Mini-Superfund - Property Location -

Realtor must Disclose Knowledge of property located in boundaries of Super or Mini-Superfund as per Real Estate Comissioner

Chap 10

Question 625

Superfund -

Fund set up by Federal (CERCLA) Compre_______ Env_______ Response Compen______ and Lia_____ Act to bear Cost of Clean Up

Answer 625

Superfund -

Fund set up by Federal (CERCLA) Comprehensive Environmental Response Compensation and Liability Act to bear Cost of Clean Up

Chap 10

Question 626

Mini-Superfund -

Fund is set up by State (WQARF) W___ Q____ Ass____ Rev_____ F____

1. Bears cost of Clean-Up that CERCLA does not cover.

Answer 626

Mini-Superfund -

Fund set up by State (WQARF) Water Quality Assurance Revolving Fund

1. Bears cost of Clean-Up that CERCLA does not cover.

Chap 10

Question 627

(CERCLA) Compre_______ Env_______ Resp____ Comp_________ and Liab______ Act -

1. Superfund set up by the Federal CERCLA to bear Cost of Clean Up of Polluted Property.

Answer 627

(CERCLA) Comprehensive Environmental Response Compensation and Liability Act -

1. Superfund set up by the Federal CERCLA to bear Cost of Clean Up of Polluted Property.

Chap 10

Question 628

(WQARF) W___ Q_____ Ass_____ Rev_____ F___ -

1. Mini Superfund set up by Arizona Law known as WQARF to bear Cost of Clean-Up not covered by CERCLA.

Answer 628

(WQARF) Water Quality Assurance Revolving Fund -

1. Mini Superfund set up by Arizona Law known as WQARF to bear Cost of Clean-Up not covered by CERCLA.

Chap 10

Question 629

AZ On-Site Wastewater Facilities -

1. Seller - Has __ Months prior to Transfer of Property, to have System Insp_____ and Pum____ and/or Cl______.
2. Seller - Give the Buyer “Insp______ Report”
3. Buyer - Notice of Transfer completed within __ days of Purchase
4. Percolation - Ability for Gr_____ to Ab___ and Dr____ Water before Installation of Sep___ Tank
5. Perc Test - Suitablity for Inst______ of S____ Tank
6. Compaction - Compr_____ Soil added to Site to F___ in Low Area to Make Level

Answer 629

AZ On-Site Wastewater Facilities -

(Septic Tanks and Alternative Systems)

1. Seller - Has 6 Months prior to Transfer of Property, to have System Inspected and Pumped and/or Cleaned.
2. Seller - Give the Buyer “Inspection Report”
3. Buyer - Notice of Transfer completed within 15 Days of Purchase
4. Percolation - Ability for Ground to Absorb and Drain Water before Installation of Septic Tank
5. Perc Test - Suitablity for Installation of Septic Tank
6. Compaction - Compressed Soil added to Site to Fill in Low Areas to Make Level

Chap 10

Question 630

On-Site Wastewater Facilities - Notice of Transfer

Buyer has __ days from Purchase to complete “Notice of Transfer”

Answer 630

On-Site Wastewater Facilities - Notice of Transfer

Buyer has 15 days from Purchase to complete
“Notice of Transfer“

Chap 10

Question 631

Perc Test -

Test done to determine Suitability of Site for Insta_____ of S____ T___.

Answer 631

Perc Test -

Test done to determine Suitability of Site for Installation of Septic Tank

Chap 10

Question 632

Seller’s Responsibility - On-Site Wastewater Facilities

1. Within __ mos prior to Transfer, Seller to have System Insp_____, Pu_____ or Cl_____; then Cert____
2. Provide Buyer with In_____ Report

Answer 632

Seller’s Responsibility - On-Site Wastewater Facilities

1. Within 6 mos prior to Transfer, Seller to have system Inspected, Pumped or Cleaned; then Certified
2. Provide Buyer with Inspection Report

Chap 10

Question 633

Perc_______ -

Ability of Ground to Absorb and Drain Water.

Answer 633

Percolation -

Ability of Ground to Absorb and Drain Water.

Chap 10

Question 634

Compa______ -

Compressed Soil added to Site to Fill Low Areas to Make Level

Answer 634

Compaction -

Compressed Soil added to Site to Fill Low Areas to Make Level

Chap 10

Question 635

S____ L______

All Owners Current and Previous are Responsible for Polluted Properties

Answer 635

Strict Liability -

All Owners Current and Previous are responsible for Polluted Properties

Chap 10

Question 636

(EPA) Env_______ Pro_______ Ag_____

1. Regulates Federal Environment Rules and Laws

Answer 636

(EPA) Environmental Protection Agency

1. Regulates Federal Environment Rules and Laws

Chap 10

Question 637

(ADEQ) AZ D___ of Env_____ Q_____

1. Sets State Environmental Standards

Answer 637

ADEQ (stands for) - AZ Dept of Environmental Quality

1. Sets State Environmental Standards

Chap 10

Question 638

G____ R___ M_______ -

What is used to determine “Values” on Small Income Properties.

Answer 638

Gross Rent Multiplier -

What is used to determine “Values” on Small** **Income** **Properties.

Chap 10

Question 639

Recon_______ of D___ -

Process of Bringing Data Together from the Three Apraisal Methods to arrive at a Final Estimated Value.

Answer 639

Reconciliation of Data -

Process of Bringing Data Together from the Three Apraisal Methods to arrive at a Final Estimated Value.

Chap 10

Question 640

Lic______ Ap______ -

May Appraise Non-Complex __ Family Units valued at Less than $1,000,000.

Answer 640

Licensed Appraiser -

May Appraise Non-Complex 1-4 Family Units valued at Less than $1,000,000.

Chap 10

Question 641

Cert____ Res______ Ap______ - 1-4 Fam

May Appraise “All Types of 1-4 Family Units” (1 Million Plus)

Answer 641

Certified Residential Appraiser - 1-4 Fam

May Appraise “All Types of 1-4 Family Units” (1 Million Plus)

Chap 10

Question 642

Cert_____ Gen____ Appraiser - ALL

May appraise All Types of Properties

Answer 642

Certified General Appraiser - ALL

May appraise All Types of Properties

Chap 10

Question 643

Ap_____ M_______ C_____ -

Company that acts as “Firewall” between Lender and Appraiser to Prevents Lender from Choosing Appraiser Directly.

Answer 643

Appraisal Mgmt Company -

Company that acts as “Firewall” between Lender and Appraiser to Prevents Lender from Choosing Appraiser Directly.

Chap 10

Question 644

Com______ M______ A______

Analysis of Current Market Conditions used to Help Consumer determine List Price, Sales Price/Purchase Price.

Answer 644

Competitive Market Analysis -

Analysis of Current Market Conditions used to Help Consumer determine List Price, Sales Price/Purchase Price.

Chap 10

Question 645

B_____ P____ O______ -

Evaluation prepared by a Broker/Sales Person for Lender for a Property in Sho__ S___, For_____, or Ho__ E____ Line of Credit.

Answer 645

Broker Price Opinion -

Evaluation prepared by a Broker/Sales Person for Lender for a Property in Short Sale, Foreclosure, or Home Equity Line of Credit.

Chap 10

Question 646

Fl___p___ -

Flat portion of Land located along Rivers or Streams which are Subject to Flooding.

Answer 646

Floodplain -

Flat Portion of Land located along Rivers or Streams which are Subject to Flooding.

Chap 10

Question 647

FEMA - F____ Emer______ Man____ Ag______ -

Develop Flo_____ M___. If Home in Flo____ Area, Lender will Require Flood Ins_____**_ **Purchased by Buyer.

Answer 647

FEMA - Federal Emergency Mgmt Agency -

Develop Floodplain Maps. if Home in Floodplain Area, Lender will Require Flood Insurance to be Purchased by Buyer.

Chap 10

Question 648

National Flood Insurance -

Operated by FEMA, provides Insurance to O____, Te____, and B______

Answer 648

National Flood Insurance -

Operated by FEMA, provides Insurance to Owners, Tenants**, and **Businesses.

Chap 10

Question 649

Fl____ Elev_____ Certificates -

Used by FEMA** and **Private Insurance Companies

1. “TO RATE” Fl____ Ins______ Policies.

Answer 649

Flood Elevation Certificates - Rate Insurance

Used by FEMA** and **Private Insurance Companies:

“TO RATE” Flood Insurance Policies.

Chap 10

Question 650

Wetlands -

Land areas where Ground_____ is “at or near” the surface so as to produce a W____ Plant Com_____. These Areas Subject to many Federal, State and Local Environmental Controls for Pre_______ and Con_______.

Answer 650

Wetlands -

Land areas where Groundwater is “at or near” the Surface so as to produce a Wetland Plant Community. These Areas Subject to many Federal**, **State** and **Local** **Environmental Controls for “Preservation” and “Conservation.”.

Chap 10

Question 651

Capitalization -

Process of Converting N__ I____ into V______

Answer 651

Capitalization -

Process of Converting Net Income into Value.

Gross Income - Operating Income = NOI

Chap 10

Question 652

Income = Value x Rate

A property produces a Net Income of $24,000 Annually. The Market indicates that Investors can expect a 12% Rate of Return. What is the Value of Property.

Answer 652

Income = Value x Rate

A property produces a Net Income of $24,000 Annually. The Market indicates that Investors can expect a 12% Rate of Return. What is the Value of Property.

IRV FORMULA Net Annual Income = Value x Rate

24,000 (Income) \ .12 (rate) = 200,000 (value)

Chap 10

Question 653

A Property Valued at $1,500,000 has a Gross Income of $250,000 and Operating Expenses of 40% of Gross Income.If the Cap Rate Increases by 1%; What will the New Value be?

• Income NOI
• Value x Rate

Answer 653

A Property Valued at $1,500,000 has a Gross Income of $250,000 and Operating Expenses of 40% of Gross Income.If the Cap Rate Increases by 1%; What will the New Value be? I=RV

Find Income: $250,000 x 60% = $150,000 NOI

Find Cap Rate: $150,000 (I) / $1,500,000 (V) = 10% (R)

Find New Value: $150,000 (Inc) X 11% = $1,363,636.36

Question 655

A property produces a Net Income $24,000 Annually. The market indicates the Investor can expect a 12% Rate of Return. What is the Value of Property?

Answer 655

A property produces a Net Income $24,000 Annually. The market indicates the Investor can expect a 12% Rate of Return. What is the Value of Property?

• Income (Annual)
• Value x Rate

$24,000 (Inc) / 12% = $200,000 Value

Question 656

A Property Valued at $1,500,000 has a Gross Income of $250,000 and Operating Expenses of 40% of Gross Income. If Cap Rate increase by 1% what will New Value be?

Answer 656

A Property Valued at $1,500,000 has a Gross Income of $250,000 and Operating Expenses of 40% of Gross Income. If Cap Rate increase by 1% what will New Value be?

Formula: (IRV) Net Income = Value x Rate

Find Net Inc $250,000 (Inc) x 60% = $150,000 NOI

Find Cap $150,000 (NOI) / $1,500,000 = 10% Rate

Rate Change $1,500,000 x 11% = 1,363,636.36

Question 657

A comparable Duplex Sold for $96,000 and rented for $800 per month. If the Subject Property rents for $775, what is its Value using GRM

Answer 657

A comparable Duplex Sold for $96,000 and rented for $800 per month. If the Subject Property rents for $775, what is its Value using GRm

Formula: Value = Gross Inc x GRM

Find GRM for Comp: $96,000 (V) / $800(mo) = 120

Apply to Subj: 120 (GRM) x $775 = 93,000 Value

Question 658

What causes Lung Cancer?

Answer 658

Radon -

1. Natural Odorless, Tasteless Radioactive Gas -
2. Causes Lung Cancer

Chap 10

Question 659

Three Type of Appraisers:

1. License Appraiser - Non-Complex 1-4 Res Units - under 1 M____
2. Cert Res Appraiser -All Types 1-4 Res M____ Plus
3. Cert Gen Appraiser - All Types of Property

Answer 659

Three Type of Appraisers:

1. License Appraiser - Non-Complex 1-4 Res Units - Under 1 Million
2. Cert Res Appraiser -All Types 1-4 Res Units Million Plus
3. Cert Gen Appraiser - All Types of Property

Chap 10

Question 660

National Fl____ Ins_____ -

Operated by FEMA, provides Insurance to Owners, Tenants, and Businesses

Answer 660

National Flood Insurance -

Operated by FEMA, provides Insurance to Owners, Tenants**, and **Businesses.

Chap 10

Question 661

Na_____ Fl____ In______ -

Operated by FEMA, provides Insurance to Owners, Tenants, and B______

Answer 661

National Flood Insurance -

Operated by FEMA, provides Insurance to Owners, Tenants**, and **Businesses.

Chap 10

Question 662

National Flood Insurance -

Operated by FEMA, provides Insurance to O____, Te____, and B______

Answer 662

National Flood Insurance -

Operated by FEMA, provides Insurance to Owners, Tenants**, and **Businesses.

Chap 10

Question 663

Fl____ Elev_____ Certificates -

Used by FEMA** and **Private Insurance Companies

1. “TO RATE” Fl____ Ins______ Policies.

Answer 663

Flood Elevation Certificates - Rate Insurance

Used by FEMA** and **Private Insurance Companies:

“TO RATE” Flood Insurance Policies.

Chap 10

Question 664

W________ -

Land areas where Ground_____ is “at or near” the surface, so as to produce a W____ Plant Com_____. These Areas Subject Environmental Controls for Preservation and Conservation.

Answer 664

Wetlands -

Land areas where Groundwater is “at or near” the Surface so as to produce a Wetland Plant Community. These Areas Subject to many Federal**, **State** and **Local** **Environmental Controls for “Preservation” and “Conservation.”.

Chap 10

Question 665

Compared to the Physical Life of a building, the Economic Life is:

1. Longer
2. Shorter
3. The Same
4. Based on the Type of Improvements

Answer 665

Compared to the Physical Life of a building, the Economic Life is:

1. Longer
2. Shorter
3. The Same
4. Based on the Type of Improvements

Chap 10

Question 666

The Income Approach would be relied on Most Heavily in estimating the Value of:

1. An Office Building
2. A Cooperative Apartment
3. A Municipal Building
4. Vacant Land

Answer 666

The Income Approach would be relied on Most Heavily in estimating the Value of:

1. An Office Building
2. A Cooperative Apartment
3. A Municipal Building
4. Vacant Land

Chap 10

Question 667

S________ Property

Has a Negative Psychological Impact on Prospective Buyers. This affects Home Value, making the house harder to sell at full price regardless of its location or physical condition.

Examples** Site of an **Infamous Murder or Suicide or a house with a reputation for Paranormal Activity.

Answer 667

Stigmatized Property -

Has a Negative Psychological Impact on Prospective Buyers. This affects Home Value, making the house harder to sell at full price regardless of its location or physical condition.

Examples** Site of an **Infamous Murder or Suicide or a house with a reputation for Paranormal Activity.

Chap 10

Question 668

Which of the follwing situations would be considered to be a Sigma on a House?

1. Pink Walls
2. A Murder that Occured in the Basement
3. A Deteriorating Neighborhood
4. One Bathroom

Answer 668

Which of the follwing situations would be considered to be a Sigma on a House?

1. Pink Walls
2. A Murder that Occured in the Basement
3. A Deteriorating Neighborhood
4. One Bathroom

Chap 10

Question 669

A Brownfield in an area causes loss in value to neighboring properties. This is an example:

1. Economic Obslescense
2. Economic Quality
3. Economic Life
4. Functional Obsolescence

Answer 669

A Brownfield in an area causes loss in value to neighboring properties. This is an example:

1. Economic Obslescense
2. Economic Quality
3. Economic Life
4. Functional Obsolescence

Chap 10

Question 670

Estimate or Opinion of Value and supported by an Analysis of Facts.

Answer 670

Appraisal -

Estimate or Opinion of Value and supported by an Analysis of Facts

Chap 9

Question 671

(AVM) Aut_______ Val______ Mod____

Appraisal made by Placing Data into an Algorithm

Answer 671

(AVM) Automated Valuation Model -

Appraisal made by Placing Data into an Algorithm

Chap 9

Question 672

Or_______

Way Building is “Situated on Lot”

Answer 672

Orientation -

Way Building is “Situated on Lot.”

Chap 9

Question 673

Dir_______nal G______

Way Community is Developing

Answer 673

Directional Growth -

Way Community is Developing

Chap 9

Question 674

Greater Properties “Positively Effect** **Value” of Lesser Properties

Answer 674

Principle of Progression -

Greater Properties “Positively Effect Value” of Lesser Properties

Chap 9

Question 675

F___ C___ V____ aka Ass_____ Val____

Value for Tax Purpose

Answer 675

Full Cash Value; Assessed Value -

Value for Tax Purpose

Limited Prop Value x Assessed Value Ratio = Assessed Value

Chap 9

Question 676

Ins____ V____

Value when Building Destroyed

Answer 676

Insurance Value -

Value when Building Destroyed

Chap 9

Question 677

U_____

Capacity of Product to “Satisfy Human Need“

Answer 677

Utility -

Capacity of Product to “Satisfy Human Need“

Chap 9

Question 678

T_________

Relative Ease of Transferring Ownership

Answer 678

Transferability -

Relative Ease of Transferring Ownership

Chap 9

Question 679

Principal of R________

Presence of Lesser Properties “Adversely Affect** **Value” of Greater Properties

Answer 679

Principal of Regression -

Presence of Lesser Properties“Adversely Affect Value” of Greater Properties

Chap 9

Question 680

Major Elements of Value - DUST:

1. Dem___
2. U____,
3. Sc____
4. T__________

Answer 680

Major Elements of Value -

DUST:

1. Demand,
2. Utility,
3. Scarcity
4. Tranferability

Chap 9

Question 681

Mar___ V____ -

Amount willing Buyer Will Pay and willing Seller Would Accept

Answer 681

Market Value -

Amount willing buyer will pay and willing seller would accept

Chap 9

Question 682

M____ P______

Amount Given and Taken for a Property

Answer 682

Market Price -

Amount Given and Taken for a Property

Arms Length transaction - one in which parties have equal bargaining positions.

Chap 9

Question 683

Amount of money to Build Brand New?

Answer 683

Cost -

Amount of money to Build Brand New

Chap 9

Question 684

Principle of H_____ and B___ Use - Use of property that brings Greatest N___ Ret____

1. Only O__ Highest and Best use at any one time
2. Based on Net Income and takes: Z___, Bui____ C____ and Surrounding M____ into account.
3. Excess Land: Does N__ Support Highest and Best Use

Answer 684

Principle of Highest and Best Use - Use of property that brings Greatest Net Return

1. Only One Highest and Best use at any one time
2. Based on Net Income and takes: Zoning, Building Codes and Surrounding Market into account.
3. Excess Land: Does Not Support Highest and Best Use

Chap 9

Question 685

Principle of Sub_________

No reasonable person will pay more for a property than they would pay for a duplicate

Will Not Pay More for Duplicate!

Answer 685

Principle of Substitution -

No reasonable person will pay more for a property than they would pay for a duplicate

Will Not Pay More for Duplicate!

Chap 9

Question 686

Principle of Su___ and De____

The idea that Value is affected by** the **Scarcity and Desire.

Answer 686

Principle of Supply and Demand -

The idea that Value is affected by** the **Scarcity** and **Desire.

Chap 9

Question 687

Principle of C________

Value will Remain Stable in area with Reasonable Conformity.

Answer 687

Principle of Conformity -

Value will Remain Stable in area with Reasonable Conformity.

Chap 9

Question 688

D_____

Amount of “Desire” to buy a product

Answer 688

Demand -

Amount of desire to buy a product

Chap 9

Question 689

Principle of C________-

Idea that Excess Profits can Increase Competition which Destroys Profits

Answer 689

Principle of Competition -

Idea that Excess Profits can Increase Competition which Destroys Profits

Chap 9

Question 690

Principle of Ch____ -

Appraisal principle “Values do not Remain the Same.” Appraisers must consider how changing Economic** and **Social Conditions** affect **Value

Answer 690

Principle of Change -

Appraisal principle “Values do not Remain the Same.” Appraisers must consider how changing Economic** and **Social Conditions** affect **Value

Chap 9

Question 691

Principle of Dev______, Equi_____, Disin_______ -

Idea that Property goes through Phases of Growth**, **Stability**, and **Decline.

Answer 691

Principle of Development, Equilibrium, Disintegration -

Idea that Property goes through Phases of Growth (Development), Stability (Equilibrium), and Decline (Disintegration)

Chap 9

Question 692

Com_______ Approach (Ma____ Da__/ Dir___ Sa____ Approach) -

Appraisals that uses similar Comparable and Recent Sales

Answer 692

Comparison Approach (Market Data/ Direct Sales Approach) -

Appraisals that uses similar Comparable and Recent Sales

Chap 9

Question 693

Sq____ F_____ of Liv____ Area -

Measuring “Exterior Dimensions” of Exterior Walls

Answer 693

Square Footage of Living Area -

Measuring “Exterior Dimensions” of Exterior Walls

Chap 9

Question 694

Deterioration -

Loss of Value by “Wear and Tear.”

Answer 694

Deterioration -

Loss of Value by “Wear and Tear.”

Chap 9

Question 695

Principle of An_________ -

Value affected by “Future Events”

Answer 695

Principle of Anticipation -

Value affected by “Future Events”

Chap 9

Question 696

E____\_ In______ -

Appreciation by Owners Efforts

Answer 696

Earned Increments -

Appreciation by Owners Efforts

Chap 9

Question 697

U________ Increments -

Appreciation by Other Factors, out of owners control

Answer 697

Unearned Increments -

Appreciation by Other Factors, out of owners control

Chap 9

Question 698

Plot_____ (Assem_______) -

Joining “Smaller Parcels” into one Larger One.

Answer 698

Plottage (Assemblage) -

Joining “Smaller Parcels” into one Larger One.

Chap 9

Question 699

Principle of Contr_______ -

Value of component that Adds To or Detracts from Value of Whole.

Answer 699

Principle of Contribution -

Value of component that Adds To or Detracts from Value of Whole

Chap 9

Question 700

Def______ M__________ -

Repairs put off for future.

Answer 700

Deferred Maintenance -

Repairs put off for future.

Chap 9

Question 701

Functional Obsolescence - (Outdated)

1. Loss Due To Out____ Features (curable) ,
2. T_______ Advances (curable), or
3. Poor Floor D_____ (**Incurable**).

Answer 701

Functional Obsolescence - (Outdated)

1. Loss Due To Outdated Features (curable),
2. Technological Advances (curable),
3. Poor Floor D_____ (**Incurable**)

Chap 9

Question 702

Deterioration** such as **Termites, Weather Damage, Leaky Roof, Cracked Paint.

Are they Curable or Non-Curable?

Answer 702

Curable -

Deterioration such as Termites, Weather Damage, Leaky Roof, Cracked Paint.

Remember: Floor Plan Design - NOT Curable

Chap 9

Question 703

C___ Approach (S______ Approach) -

Appraisal that uses Calculated Building Costs, Subtracted Depreciaton and Added Land Values

Answer 703

Cost Approach (Summation Approach) -

Appraisal that uses Calculated Building Costs, Subtracted Depreciaton and Added Land Values

Chap 9

Question 704

Repl______ Cost -

Cost to build Reasonable Duplicate

Answer 704

Replacement Cost -

Cost to build Reasonable Duplicate

Chap 9

Question 705

Repro_____ Cost -

Cost to Build “Exact” Duplicate at Today’s Prices.

Answer 705

Reproduction Cost -

Cost to Build “Exact” Duplicate at Today’s Prices.

Chap 9

Question 706

Reh_________ -

Curing “Deferred Maintenance”

Answer 706

Rehabilitation -

Curing deferred maintenance

Chap 9

Question 707

Economic Obsolescence - (Outside)

Loss by outside factors:

1. Neigh_____ Conditions (Air, Noise, Pollution)
2. Over Imp_____,
3. Negative Legislation (Z____),
4. Change in B______/Mar___ Conditions

Answer 707

Economic Obsolescence - (Outside)

Loss by outside factors):

1. Neighborhood Conditions (Air, Noise, Pollution),
2. Over Improvements,
3. Negative Legislation (Zoning),
4. Change in Business/Market Conditions

Chap 9

Question 708

(URAR) Un____ Res______ Appraisal Report -

Standard Appraisal Form for SFR

Answer 708

(URAR) Uniform Residential Appraisal Report -

Standard Appraisal Form for SFR

Chap 9

Question 709

Sq____ F_____ Under R____ -

Area of Building includes Garages and Patios

Answer 709

Square Footage Under Roof -

Area of Building includes Garages and Patios

Chap 9

Question 710

De____ Appraisal -

Appraisal from “Internet Information” without Inspecting Property

Answer 710

Desktop Appraisal -

Appraisal from “Internet Information” without Inspecting Property

Chap 9

Question 711

Principle of Extern_______ -

Principle that Factors “Outside Property” have Positive or Negative Affect on Value.

Answer 711

Principle of Externalities -

Principle that Factors “Outside Property” have Positive or Negative Affect on Value.

Economic Obsolescence - Neighborhood, Air, Noice, Over Improved, Adverse Zoning

Chap i

Question 712

Salv____ (Resid___) Value -

Value of Buildings at End of Physical Life

Answer 712

Salvage (Residual) Value -

Value of Buildings at End of Physical Life

Chap 9

Question 713

M_____ Value -

Value for Loan Purposes, using Property as Collateral

Answer 713

Mortgage Value -

Value for Loan Purposes, using Property as Collateral

Chap 9

Question 714

Mar____ P_____

Money Given/Taken

Answer 714

Market Price -

Money Given/Taken

Chap 9

Question 715

Principle of H____ and B___ U__ -

Use of Property that Brings Greatest Net Return

Answer 715

Principle of Highest and Best Use -

Use of Property that Brings Greatest Net Return

Chap 9

Question 716

Principle of S____ and D_____ -

Value by Scarcity and Desire of Item

Answer 716

Principle of Supply and Demand -

Value by Scarcity and Desire of Item

Chap 9

Question 717

A__ L______ Tran______ -

Transaction where parties have Equal Bargaining Positions.

Answer 717

Arm’s-Length Transaction -

Transaction where parties have Equal Bargaining Positions.

Chap 9

Question 718

Arm’s Length Transactions include?

For_____, Relatives S____, and Condem_____ Proceedings

Answer 718

Arm’s Length Transactions include?

Foreclosures, Relatives Sales, and Condemnation Proceedings

Chap 9

Question 719

Principle of H_____ and B___ Use -

Principle Used that will generate Greatest Net Return

What is based on “Net Income,” Zoning, Building Codes, and Surrounding Market?

Answer 719

Principle of Highest and Best Use -

Principle Used that will generate Greatest Net Return

Based on “Net Income,” Zoning, Building Codes, and Surrounding Market

Chap 9

Question 720

Fu_______ Ob_________ - Outdated

Poor Fl____ P_____ form of depreciation that “is not” curable (Incurable)

Answer 720

Functional Obsolescence - Outdated

Poor Floor Plans form of depreciation that “is not” curable (Incurable)

Question 721

Economic Obsolescence (External) - Factors Outside of Property that deal with Neighborhood Issues includes?

1. A__,
2. N____
3. Poll_____,
4. Traf____
5. Adverse Z_____
6. O___ Im____ Pr_____

Answer 721

Economic Obsolescence (External) - Factors Outside of Property that deal with Neighborhood Issues includes?

1. Air,
2. Noise
3. Pollution,
4. Traffic
5. Adverse Zoning
6. Over Improved Property

Chap 9

Question 722

Comparison Approach relies most “Heavily Relies On -

1. Ex____ Res______
2. V____ L____

Answer 722

Comparison Approach relies most “Heavily Relies On -

1. Existing Residences
2. Vacant Land

Chap 9

Question 723

Comparison Approach (Market Data/Sales) -

1. Many Buyer/Sellers
2. C_______ Sales at A___ L_____
3. __ Comparables
4. Adj______
5. Heavily Relies On: Ex_____ Re_____ and V____ L____

Answer 723

Comparison Approach (Market Data/Sales) -

1. Many Buyer/Sellers
2. Comparable Sales at Arm’s Length
3. 3 Comparables
4. Adjustments
5. Heavily Relies On Existing Residence and Vacant Land

Chap 9

Question 724

Comparison Approach - Adjustments

1. D___ of Sale
2. Loc______
3. Fin________
4. Cond______ or Feat______
5. Conce________
6. Property with **Fewest Adj__** ***Most Comparable***

Answer 724

Comparison Approach - Adjustments

1. Date of Sale
2. Locations
3. Financing
4. Condition or Features
5. Concessions
6. Property with **Fewest Adjustments** ***Most Comparable***

Chap 9

Question 725

C___ Approach (Su______) -

Building Cost - Depreciation + Land Value

= Appraised Value

Answer 725

Cost Approach (Summation) -

Building Cost - Depreciation + Land Value

= Appraised Value

Chap 9

Question 726

Cost Approach (Heavily Relies On}:

One of a K___ Properties, such as Chu____, Muni____ Buildings, New Con________

Answer 726

Cost Approach (Heavily Relies On):

One of a kind properties, such as Churches, Municipal Buildings, New Constructions

Chap 9

Question 727

Scarcity means

Answer 727

Supply = Scarcity

Chap 9

Question 728

Desire means

Answer 728

Demand = Desire

Chap 9

Question 729

Growth means

Answer 729

Development = Growth

Chap 9

Question 730

Stability (Balance) means

Answer 730

Equilibrium = Stability, Balance

Chap 9

Question 731

Decline means

Answer 731

Disintegration = Decline

Chap 9

Question 732

V_____

Worth of Property and has for 4 Major Elements such as Demand, Utility**, **Scarcity**, and **Transferabilty

Answer 732

Value (Worth) -

Worth of Property and has for 4 Major Elements such as Demand, Utility**, **Scarcity**, and **Transferabilty

Chap 9

Question 733

Land Not Needed to support the Highest and Best Use.

Answer 733

Excess Land -

Land Not Needed to support the Highest and Best Use.

Chap 9

Question 734

Increase in Value for Any Reason

Answer 734

Appreciation -

Increase in Value for Any Reason.

Chap 9

Question 735

Loss in Value for Any Reason. In the Cost Approach most difficult to Estimate.

Answer 735

Depreciation -

Loss in Value for Any Reason. In the Cost Approach most difficult to Estimate.

Chap 9

Question 736

An Exterior Inspection of a home by a Licensed Appraiser. Lenders typically use to document Comparable Properties.

Answer 736

Drive-By Inspection

An Exterior inspection of a home by a Licensed Appraiser. Lenders typically use to document Comparable Properties.

Question 737

C___ Approach (S______ Approach) -

Appraisal that uses Calculated Building Costs, Subtracted Depreciaton and Added Land Values

Answer 737

Cost Approach (Summation Approach) -

Appraisal that uses Calculated Building Costs, Subtracted Depreciaton and Added Land Values

Chap 9

Question 738

C___ Approach (S______ Approach) -

Appraisal that uses Calculated Building Costs, Subtracted Depreciaton and Added Land Values

Answer 738

Cost Approach (Summation Approach) -

Appraisal that uses Calculated Building Costs, Subtracted Depreciaton and Added Land Values

Chap 9

Question 739

C___ Approach (S______ Approach) -

Appraisal that uses Calculated Building Costs, Subtracted Depreciaton and Added Land Values

Answer 739

Cost Approach (Summation Approach) -

Appraisal that uses Calculated Building Costs, Subtracted Depreciaton and Added Land Values

Chap 9

Question 740

Principle of H____ and B___ U__ -

Use of Property that Brings Greatest Net Return

Answer 740

Principle of Highest and Best Use -

Use of Property that Brings Greatest Net Return

Chap 9

Question 741

In preparing an Estimate of Value for a thirty year old house, an appraiser will MOST LIKELY use which of the following approaches to value?

1. Replacement Cost
2. Reproduction Cost
3. Market Data
4. Income

Answer 741

In preparing an Estimate of Value for a thirty year old house, an appraiser will MOST LIKELY use which of the following approaches to value?

1. Replacement Cost
2. Reproduction Cost
3. Market Data
4. Income

Chap 9

Question 742

When Market Data is lacking and the property has no income, the appraisal approach MOST LIKELY to be used is the:

1. Comparison
2. Cost
3. Capitalization
4. Market Data

Answer 742

When Market Data is lacking and the property has no income, the appraisal approach MOST LIKELY to be used is the:

1. Comparison
2. Cost
3. Capitalization
4. Market Data

Question 743

If a property is built usng inferior building materials this would directly result in

1. Functional Obsolescence
2. Physical Deterioration
3. External Obsolescense
4. Reproduction Cost

Answer 743

If a property is built usng inferior building materials this would directly result in

1. Functional Obsolescence
2. Physical Deterioration
3. External Obsolescense
4. Reproduction Cost

Chap 9

Question 744

An owner improves a property bringing it up to value commensurate with surrounding properties. This is an example of:

1. Conformity
2. Contribution
3. Competition
4. Regression

Answer 744

An owner improves a property bringing it up to value commensurate with surrounding properties. This is an example of:

1. Conformity
2. Contribution
3. Competition
4. Regression

Chap 9

Question 745

Federal Fair Housing Laws - 7

Laws that Prohibit Discrimination in the S__, R____, Adv_______, and Fin______ of Housing, support for the following Protected Classes:

Hint: Race and Color Religiously Never Opposes the Sexes PLUS Handicapped and Familial Status

1. Race (Race)
2. Color (Color)
3. Religion (Religiously)
4. Natural Origin (Neve Opposes)
5. Sex (Sex)
6. H_____ (Hope)
7. F_____ (Faith)

Answer 745

Federal Fair Housing Laws - 7

Laws that Prohibit Discrimination in the Sale, Rental, Advertising, and Financing of Housing, support the following Protected Classes:

Hint: Race and Color Religiously Never Opposes the Sexes PLUS Handicapped and Familial Status

1. Race (Race)
2. Color (Color)
3. Religion (Religiously)
4. Natural Origin (Neve Opposes)
5. Sex (Sex)
6. Handicap (Hope)
7. Familial (Faith)

Chap 8

Question 746

(CFPB) Cons_____ Fin______ Pro_______ Bur______ -

Federal Agency that Administers and Enforces many Federal Laws and Rules to Financing

Answer 746

(CFPB) Consumer Financial Protection Bureau -

Federal Agency that Administers and Enforces many Federal Laws and Rules to Financing

Chap 8

Question 747

T____ In L_____ (Regulation Z) -

Federal Law that requires lenders to Disclose All T___ and Cost to obtain Cons____ Loan.

Has to do with APR, F_______ Charges, Tr_____ Terms, and Ad______, and Ref______.

Answer 747

Truth in Lending (Regulation Z) -

Federal Law that requires lenders to Disclose All Terms and Cost to obtain Consumer Loan.

Has to do with APR, Finance Charges, Trigger Terms**, and **Advertising, and Refinances.

Chap 8

Question 748

An_____ P______ R___ (APR) -

Interest, Discount Points** and **Loan Costs are expressed as the Annual Percentage Rate.

Answer 748

Annual Percentage Rate (APR) -

Interest**, **Discount Points** and **Loan Costs are expressed as the Annual Percentage Rate.

Chap 8

Question 749

When Trigger Terms are used, Full Disclosure of Financing Must be Used. Note: These do not apply to Loan Assumptions.

Trigger Terms:

1. D___ Payment,
2. Nu____ of Payments,
3. Am____ of Payments,
4. Per____ of Payment (Mo),
5. Fin____ Ch_____

Answer 749

When Trigger Terms are used, Full Disclosure of Financing Must be Used. Note: These do not apply to Loan Assumptions..

Trigger Terms:

1. Down Payment,
2. Number of Payments,
3. Amount of Payments,
4. Period of Payment (Mo),
5. Finance Charges

Chap 8

Question 750

Full Disclosure contains All Trigger Terms as follows and what else?

1. D___ Payment,
2. N_____ of Payments,
3. A___ of Payments,
4. Per__ of Payments (Mo, etc),
5. F_____ C____, and also…..
6. L___ Amount
7. T____ of All P____,
8. APR

Answer 750

Full Disclosure contains All Trigger Terms as follows and what else?

1. Down Payment,
2. Number of Payments,
3. Amount of Payments,
4. Period of Payments (Mo, etc),
5. Finance Charge, and also…..
6. Loan Amount
7. Total of All Payments,
8. APR

Chap 8

Question 751

Truth in Lending (Reg Z)

Federal law that requires lenders to Disclose All Terms and Cost in obtaining Consumer Loan Includes:

1. Disclosing APR (Int____, Dis_____, L___ Costs)
2. Applies to Institutional Lenders Only - Regulated by Feds and State (not Private)

Banks, Ins_____ Companies, Commer______ Banks, Cred___ Un____, T____ Companies, Br____ F____

1. Trigger Terms (D___ Pmt, N____ of Pmts, A___ of Pmt, P____ of Pmts, and Fin____ Charges
2. Full Disclose (7): Includes D___ Pmt, Nu___, A___ and Fre____ Pmts, plus L__ Amt, T___ of All Pmts, and APR
3. Refinances: __ Day Right to Recind

Answer 751

Truth in Lending (Reg Z) -

Federal law that requires lenders to Disclose All Terms and Cost of obtaining Consumer Loan and includes:

1. Disclosing APR (Interest, Discounts, Loan Costs)
2. Applies to Institutional Lenders Only - Regulated by Feds and State (not Private)

Banks, Insurance Companies, Commerical Banks, Credit Unions, Trust Companies, Broker Firms

1. Trigger Terms (Down Pmt, # of Pmts, Amount of Pmt, Period of Pmts, and Finance Charges
2. Full Disclose (7): Includes Down Pmt, Number of Pmts, Amount of Pmts, and Frequency of Pmts, plus Loan Amount*, *Total of All Pmts*, and *APR
3. Refinances: 3 Day Right to Recind

Question 752

Full Disclosure - Under Reg Z (Truth In Lending) includes -

Trigger Terms: (D___ Payment, Nu___ of Pmts, Am____of Pmts, Per____ of Pmts, and F____ Charges.(5)

For Full Disclosure Add:

1. L___ Amount
2. APR
3. T___ of A__ Payments

Answer 752

Full Disclosure - Under Reg Z (Truth In Lending) includes -

Trigger Terms: (Down Payment, No. of Pmts, Amount of Pmts, Period of Pmts, and Finance Charges. (5)

For Full Disclosure Add:

1. Loan Amount
2. APR
3. Total of All Payments

Chap 8

Question 753

(RESPA) Real Estate Settlement and Procedure Act - Requirements

This Act requires: (Disclosure of Settlement Cost)

1. Loan Estimate - __ days of Loan App,
2. Trid-Closing Cost Disclosure -__ days of Closing.
3. Federal Loans Only - (FHA, VA, USDA)
4. Prohibits Excess Money in Im_______
5. Disclosure of Affiliated Business
6. Prohibits K____ and Un_____ Fees from Settlement Services.
7. Title Company - B____’s Choice

Answer 753

(RESPA) Real Estate Settlement and Procedure Act - Requirements

This Act requires: (Disclosure of Settlement Cost)

1. Loan Estimate - 3 days of Loan App
2. Trid-Closing Cost Disclosure - 3 days of Closing.
3. Federal Loans Only - (FHA, VA, USDA)
4. Prohibits Excess Money In Impounds
5. Disclosure of Affiliated Business -
6. Prohibits Kickbacks and Unearned Fees from Settlement Services.
7. Title Company - Buyer’s Choice

Question 754

RESPA Does Not Cover - (If Not Federal Loans)

1. Ca___ Deals,
2. Seller Ca______,
3. Pur_____ M____ Loans, or
4. H___ M_____ Loans

Answer 754

RESPA Does Not Cover - (If Not Federal Loans)

1. Cash Deals,
2. Seller Carrybacks,
3. Purchase Money Loans, or
4. Hard Money Loans

Chap 8

Question 755

Loan Estimate given-

Within __ Days of Loan App

Answer 755

Loan Estimate given-

Within 3 Days of Loan App

Chap 8

Question 756

TRID Closing Disclosure -

Given __ Days Prior to Closing Date

Answer 756

TRID Closing Disclosure -

Given 3 Days Prior to Closing Date

Chap 8

Question 757

(FCRA) Fair Credit Reporting Act -

Act created to Protect from Inac_____ Rep____ to Cr___ Bureaus - Includes:

1. Consumer has Right to Insp____ Information,
2. Correct any Inac______ Info.
3. If “Den___ Cr____“ the Identity of Credit Bureau has to be Disc_____.

Answer 757

(FCRA) Fair Credit Reporting Act -

Act created to Protect from Inaccurate Reporting to Credit Bureaus - Includes:

1. Consumer has Right to Inspect Information,
2. Correct any Inaccurate Info.
3. If “Denied Credit” the Identity of Credit Bureau has to be Disclosed.

Chap 8

Question 758

(ECOA) Equal Credit Opportunity Act -

Act Prohibits Discrimination in Extension of Credit based on (R___, C___, R_____, Nat____ O____, and S__),

But also M_____ Status, A__, or P____ Ass_____

Race and Color Religiously Never Opposes the Sexes. Mariage has an Ageless Power to Assist

Answer 758

(ECOA) Equal Credit Opportunity Act -

Act Prohibits Discrimination in Extension of Credit based on (Race, Color, Religion, National Origin, and Sex),

But also Marital Status, Age**, or **Public Assistance.

Race and Color Religiously Never Opposes Sex. Marriage has Ageless Power to Assist

Chap 8

Question 759

The (ADA) American with Disability Act - requires Equal Access to Public Accommodations.

Commercial Properties are required to provide

1. Handicapped P_____ Sp____
2. Wheelchair Ra____
3. Handicapped Res_____

Answer 759

The (ADA) American with Disability Act - requires Equal Access to Public Accommodations.

Commercial Properties are required to provide

1. Handicapped Parking Spaces
2. Wheelchair Ramps
3. Handicapped Restrooms

Chap 8

Question 760

The Interstate Land Sales Full Disclosure Act regulates and requires:

1. Regulates: Int____ L___ S___,
2. Property Report with F__ Dis_____ of M_____ Info. Required and Given to B____

Answer 760

The Interstate Land Sales Full Disclosure Act regulates and requires:

1. Regulates: Interstate Land Sales,
2. Property Report with Full Disclosure of Material Info. Required and Given to Buyer

Chap 8

Question 761

Consumer Protection Act

Established and Regulates the “National Do Not C___ Re____**_.” But **Regulated By the Fed____ Tr____ Com______

Answer 761

Consumer Protection Act

Established and Regulates the “National Do Not Call Registry.” But Regulated By the Federal Trade Commission

Chap 8

Question 762

Do Not Call Registry -

Registrated Phone Number Last How Long?

Answer 762

Do Not Call Registry -

Registration phone number last for how long?

Indefinitely

Chap 8

Question 763

Do Not Call Registry - Call Limitations

1. Business Relationships - (Upto __ Months),
2. Political Organizations and Charities - (____).

Answer 763

Do Not Call Registry - Call Limitations

1. Business Relationships - (upto 18 months),
2. Political Organizations and Charities - (None).

Chap 8

Question 764

Consumer Privacy Act of 1974 -

1. Act governs Col_____, U__, Main_____, and Dissem_____ of In__ About Individuals
2. Must have Consent of Ind______ (To Disclose Info).

Answer 764

Consumer Privacy Act of 1974 -

1. Act governs Collection, Use, Maintenance, and Dissemination of Info About Individuals.
2. Must have Consent of Individuals (To Disclose Info).

Chap 8

Question 765

Federal Fair Housing Act of 1968 and 1988 - Fair Housing Laws that Prohibits Discrimination in the S___, R____, Adv_____, and Fin_____ of a House and on Basis:

1. Race (Race and)
2. Color (Color)
3. Religion (Religiously)
4. National Origin (Never Opposes)
5. Sex (Sex)
6. Handicap,
7. Familial

(Hint: Race and Color Religously Never Opposes Sex)

Answer 765

Federal Fair Housing Act of 1968 and 1988 - Fair Housing Laws that Prohibits Discrimination in the Sale, Rental, Advertising, and Financing of a House and on Basis:

1. Race,
2. Color,
3. Religion,
4. National Origin
5. Sex,
6. Handicap,
7. Familial

(Hint: Race and Color Religously Never Opposes Sex)

Question 766

Federal Fair Housing Act of 1968 - Prohibits Discrimination when Leasing or Selling Property. It is part of Civil Rights Act of 1968 and Prohibits:

1. Refusing S__/R___/Neg_____ with Any Persons - Making House Unavailable.
2. Quo____ Different - T____ and Cond______ for Buying/Renting to Dif_____ Races.
3. Advertising Properties - Available Only to Cet___ P_____.
4. Steering - Den___ Avaiable and Chanelling People Towards and Aw___ from Ar____
5. Blockbusting - Encouraging to Sell/Rent because Min_____ Mov___ into A____.
6. Redlining - Lenders Alt_____ T____ based on Homes in Sp____ Ar____. Insurance Co refusing Insurance
7. Denying Membership: MLS, Bkr Orgs, etc

Answer 766

Federal Fair Housing Act of 1968 - Prohibits Discrimination when Leasing or Selling Property. It is part of Civil Rights Act oof 1968 and Prohibits:

1. Refusing Sell/Rent/Negotiate with Any Persons - Making House Unavailable.
2. Quoting Different Terms and Conditions for Buying/Renting to Different Races.
3. Advertising Properties available to Certain People.
4. Steering - Denying Availabiity and Chanelling People Towards and Away from Area
5. Blockbusting - Encouraging to Sell/Rent because Minorities Moving into Area.
6. Redlining - Lenders Altering Terms based on Homes in Speific Areas. Insurance Co refusing Insurance
7. Denying Membership: MLS, Bkr Orgs, etc

Chap 8

Question 767

Federal Fair Housing 1968 Exemptions (4)

1. FSBO: No Br_____ Used, Adv________ not Discriminating, Only __ Units Max Owned.
2. Room Rentals: Owner Occupied (__ Unit)
3. Religious Orgs: Restrict to S____ Religion okay (No Restriction by R___, C___ or N_____ Origin)
4. Private Clubs: R_____ to Members Only (If Not Commercial Operated)

Answer 767

Federal Fair Housing 1968 Exemptions (4)

1. FSBO: No Broker Used, Advertising not Discriminating, Only __ Units Max Owned.
2. Room Rentals: Owner Occupied (1-4 Unit)
3. Religious Orgs: Restrict to Same Religion okay (No Restriction by Race, Color or National Origin)
4. Private Clubs: Restrict to Members Only (If Not Commercial Operated)

Chap 8

Question 768

What is considered Handicapped:

1. Vis___, Hea____, Spee__,
2. H____,
3. Can_____,
4. Alc_______, Mental I_____, HIV

Answer 768

What is considered Handicapped:

1. Visual, Hearing, Speech,
2. Heart,
3. Cancer,
4. Alcoholics, Mental Illness, HIV

Chap 8

Question 769

Handicap Must be allowed to do what?

1. Modifications: Tenant M__ D_ Modifications, But They Must Be Res_____.
2. Deposits: Must be Cust_____, unless P___ Credit then Int_____ Bear____ Esc____ Account
3. Reasonable Accomodations: In Ru____ and Pol___ such as Parking and Ramps and Restrooms
4. Group Homes: Zo____/De____ Restrictions Cannot Prevent being Created in Neighborhood.

Answer 769

Handicap Must be allowed to do what?

1. Modifications: Tenant May Do Modifications, But They Must Be Restored.
2. Deposits: Must be Customary, unless Poor Credit then Interest Bearing Escrow Account
3. Reasonable Accomodations: In Rules and Policies such as Parking and Ramps and Restrooms
4. Group Homes: Zo____/De____ Restrictions Cannot Prevent being Created in Neighborhood

Chap 8

Question 770

Federal Fair Housing 1988 (Familial Status) - The Amendment Prohibits Discrimination on the Basis of Familial Status such as Refu____ to Rent/Sell Home to Families with Children under __ years old.

Exemptions (Housing Occupied):

1. 62 or Older Only Occupied
2. 55 or Older at Least One Per Unit (__% Occupancy)

Answer 770

Federal Fair Housing 1988 (Familial Status) -The Amendment Prohibits Discrimination on the Basis of Familial Status such as Refusing to Rent/Sell Home to Families with Children under 18 years old.

Exemptions (Housing Occupied):

1. 62 or Older Only Occupied
2. 55 or Older at Least One Per Unit (80% Occupancy)

Chap 8

Question 771

Discriminating Advertising -

Examples:

1. No Whe_________
2. Able Bod__ Only
3. Chris____ Handyman
4. Close to Catho_____ School
5. Wh____ Neighborhood

Answer 771

Discriminating Advertising -

Examples:

1. No Wheelchairs
2. Able Bodied Only
3. Christian Handyman
4. Close to Catholic School
5. White Neighborhood

Chap 8

Question 772

Fair Housing Acts 1968 and 1988 - Complaint Procedures

1. __ year file Complaint - In Writing
2. HUD Must Inv_______
3. HUD Must Conc_____ Problem - In Investigation -
4. HUD Prepares Report - After Investigation. Decides as Follows
   
   1. Dism____ or Aw____ Damages;
   2. Send Attorney General Fi_____; and Recommend “Susp_____” or “Rev_______“

Answer 772

Fair Housing Acts 1968 and 1988 - Complaint Procedures

1. 1 year file Complaint - In Writing
2. Hud must investigate
3. Conciliate Problem - In Investigation -
4. Hud Prepares Report - After Investigation, Decides as Follows
5. Dismiss or Award Damages;
6. Send Attorney General Findings; and Recommend “Suspension” or “Revocation”

Chap 8

Question 773

Civil Rights Act of 1866 (Discrimination) -

__ years to File Complaints in Federal Court

Answer 773

Civil Rights Act of 1866 (Discrimination) -

2 years to File Complaints in Federal Court

Chap 8

Question 774

(RESPA) Real Estate Settlement Procedure Act - Booklet,

Your H___ Loan T____ Kit - CFPBs Settlement Cost Booklet must be given to borrower under this law. Along with “Loan Estimate” Given __ Business Days of Loan Application

Note CFPB - Consumer Financial Protection Bureau

Answer 774

(RESPA) Real Estate Settlement Procedure Act - Booklet,

Your Home-Loan Tool Kit CFPBs Settlement Cost Booklet must be given to borrower under this law. Along with “Loan Estimate” Given 3 Business Days of Loan Application

Note CFPB - Consumer Financial Protection Bureau

Chap 8

Question 775

(RESPA) Real Estate Settlement Procedure Act -

CFPB Cl______ Disclosure is same as the TRID Dis______

Answer 775

(RESPA) Real Estate Settlement Procedure Act -

CFPB Closing Disclosure is same as the TRID Disclosure

Chap 8

Question 776

(RESPA) Real Estate Settlement Procedure Act -

Law that prohibits “K_______” and Un______ Fees from Set________ Service Providers. Prohibits E_____ M_____ in Impounds

Answer 776

(RESPA) Real Estate Settlement Procedure Act -

Law that prohibits “Kickbacks” and Unearned Fees from Settlement Service Providers. Prohibits Excess Money in Impounds.

Chap 8

Question 777

LOAN ESTIMATE (RESPA) required -

Give To Borrower in__ Business days of Loan Application

Answer 777

LOAN ESTIMATE (RESPA) required -

Give To Borrower in 3 Business days of Loan Application

Chap 8

Question 778

(ECOA) Equal Credit Opportunity Act -

Prohibits Discrimination in Extension of Credit on Basis of Race, Color, Religion, National Origin, Sex, but also M____ Status, A__ and Income from P____ Assistance.

Race and Color Religiously Never Opposes Sex. Mariage has Ageless Power to Assist

Answer 778

(ECOA) Equal Credit Opportunity Act -

Prohibits Discrimination in Extension of Credit on Basis of Race, Color, Religion, National Origin, Sex, but also Marital Status, Age** and **Income** from **Public Assistance.

Race and Color Religiously Never Opposes Sex. Marriage has Ageless Power to Assit

Chap 8

Question 779

(ADA) Americans with Disability Act -

Requires Commerical Properties to have:

1. Wh_______ Ramps to Public Bu_____ is required under this law.
2. Handicapped P_____ Spaces
3. Handicapped R_______

Answer 779

(ADA) Americans with Disability Act -

Requires Commerical Properties to have:

1. Wheelchair Ramps to Public Buildings is required under this law.
2. Handicapped Parking Spaces
3. Handicapped Restrooms

Chap 8

Question 780

RESPA Loans Covered:

F_______ Loans Only: (FHA, VA, USDA)

Answer 780

RESPA Loans Covered:

Federal Loans Only: (FHA, VA, USDA)

Chap 8

Question 781

Federal Fair Housing Act of 1866

Bl________ -

Minorities Moving in Area, Encouraging Owners to Sell

Answer 781

Federal Fair Housing Act of 1866

Blockbusting -

Minorities Moving in Area, Encouraging Owners to Sell

Chap 8

Question 782

In______ L___ S___ F___ Disclosure Act -

1. Regulates - In______ L___ S____
2. Requires Property Report - Full Disclosure of Material Info to Buyers

Answer 782

Interstate Land Sales Full Disclosure Act -

1. Regulates - Interstate land sales
2. Requires Property Report - Full Disclosure of Material Info to Buyers

Chap 8

Question 783

(FCRA) Fair Credit Reporting Act -

Allows Consumers to Cor____ Inac_____ Cre____

Answer 783

(FCRA) Fair Credit Reporting Act -

Allows Consumers to Correct Inaccurate Credit

Chap 8

Question 784

(RESPA) Real Estate Settllement Procedure Act -

Prohibits Lenders from Keeping To Much M____ in Im____ Accounts.

Answer 784

(RESPA) Real Estate Settllement Procedure Act -

Prohibits Lenders from Keeping To Much Money in Impound Accounts.

Chap 8

Question 785

(ADA) Americans with Disabilities Act -

Prohibits Discrimination against the Handicapped and requires Equal Ac_____ to All P____ Accommodations

Answer 785

(ADA) Americans with Disabilities Act -

Prohibits Discrimination against the Handicapped and requires Equal Access to All Public Accommodations

Chap 8

Question 786

Con_____ Pri____ Act 1974

Law Prohibits** **Disclosure of Personal Information Without Consent. Federaly Established Code** of Fair Practices governing **Collection, Use, Maintenance, and Dissemination of Information

Answer 786

Consumer Privacy Act 1974

Law Prohibits** **Disclosure of Personal Information Without Consent. Federaly Established Code** of Fair Practices governing **Collection, Use, Maintenance, and Dissemination of Information

Chap 8

Question 787

Federal Fair Housing Acts 1968 and 1988 (7 Classes)

(Hint: Race and Color Religiously Never Opposes Sex)

1. Race
2. Color,
3. Religion,
4. National Origin
5. Sex,
6. H_______
7. F________

Answer 787

Federal Fair Housing Acts 1968 and 1988 (7 Classes)

(Hint: Race and Color Religiously Never Opposes Sex)

1. Race
2. Color,
3. Religion,
4. National Origin
5. Sex,
6. Handicap
7. Familial

Chap 8

Question 788

ECOA - Equal Credit Opportunity Act (Protected Classes) -

(Hint: Marriage has Ageless Power to Assist)

Race, Color, Religion, National Origin, and Sex,

1. M_____ Status
2. A__,
3. P_____ Assistance

Answer 788

ECOA - Equal Credit Opportunity Act (Protected Classes) -

(Hint: Marriage has Ageless Power to Assist)

Race, Color, Religion, National Origin, and Sex,

1. Marital Status
2. Age,
3. Public Assistance

Chap 8

Question 789

(APR) Annual Percentage Rate -

Interest Rate computed to include An_____ Interest plus Upfront One-Time L___ C____, and D_____ P_____; Apple to Apple Comparisons of Loans.

Answer 789

(APR) Annual Percentage Rate -

Interest Rate computed to include Annual Interest plus Upfront One-Time Loan Costs, and Discount Points. Apple to Apple Comparisons of Loans.

CHAP 8

Question 790

Fair Housing Act (1968) -

When S_____ or L_____ Homes, Prohibits Discrimination based on Five Classes:

Race, Color, Religion, National Origin, and Sex

Race and Color Religiously Never Opposes Sexes

Answer 790

Fair Housing Act (1968) -

When Selling or Leasing Homes, Prohibits Discrimination based on Five Classes:

Race, Color, Religion, National Origin, and Sex

Race and Color Religiously Never Opposes Sexes

Chap 8

Question 791

Federal Fair Housing Amendments of (1988) -

Hand_____ Status or Fa______ Status where added to Federal Fair Housing Act of 1968 Discrimination Classes:

Race, Color, Religion, Nat Origin, and Sex

Answer 791

Federal Fair Housing Amendments of (1988) -

Handicapped Status or Familial Status where added to Federal Fair Housing Act of 1968 Discrimination Classes:

Race, Color, Religion, Nat Origin, and Sex

Chap 8

Question 792

Truth in Lending - Trigger Terms - Trigger Terms Require Full Disclosure in Advertising:

1. D____ Payment
2. Num____ of Payments
3. Am____ of Payments
4. Per____ of Payments
5. Fin____ Charge Amounts

Answer 792

Truth in Lending - Trigger Terms - Trigger Terms Require Full Disclosure in Advertising:

1. Down Payment
2. Number of Payments
3. Amount of Payments
4. Period of Payments
5. Finance Charge Amounts

Does Not Include Loan Assumptions

Chap 8

Question 793

C___ R____ Act 18__ -

Act that Prohibits Discrimination based on Race or Color (No Exemptions)

Answer 793

Civil Rights Act 1866 -

Act that Prohibits Discrimination based on Race or Color (No Exemptions)

Chap 8

Question 794

Steering -

Denying that Housing is Available for Sale/Rent or Channeling Prospects T____/A____ from Certain A____.

Answer 794

Steering -

Denying that Housing is Available for Sale/Rent or Channeling Prospects Towards/Away from Certain Areas.

Chap 8

Question 795

Redlining -

A Lender Alt____ the T___ or Con_____ for Home Loans in Specific Geographic Areas as a means of Discrimination.

Also when Insurance Companies Refuses to Ins___ H___ due to the Home’s Geographic Location.

Answer 795

Redlining -

A Lender Altering the Terms or Conditions for Home Loans in Specific Geographic Areas as a means of Discrimination.

Also when Insurance Companies Refuses to Insure Homes due to the Home’s Geographic Location.

Chap 8

Question 796

Group Home -

Home where a Number of Unrel___ People Live Together, in need of C___, Sup_____ or Super_______.

These types of homes may not be discrimnated by using “Z____ L__” or “D___ Restr______’ to Prevent One from Being Built.

Answer 796

Group Home -

Home where a Number of Unrelated People Live Together, in need of Care, Support or Supervision.

These types of homes may not be discrimnated by using “Zoning Laws” or “Deed Restrictions’ to Prevent One from Being Built.

Chap 8

Question 797

Familial Status -

1. Refusing to “Rent” or “Sell” Apt/Home to “Families with Children under 18”
2. Properties Occupied- Only People 62 or Older
3. Properties Occupied - ___ Person 55 or Older each unit - Occupying ___% of Units.

Answer 797

Familial Status -

1. Refusing to “Rent” or “Sell” Apt/Home to “Families with Children under 18”
2. Properties Occupied- Only People 62 or Older
3. Properties Occupied - 1 Person 55-Older each unit - Occupying 80% of Units.

Chap 8

Question 798

Do Not Call Registry (www.donotcall.gov)

Con_____ Pro______ Act regulates “Do Not Call Registry.” Regulated by Federal Trade Commission

Answer 798

Do Not Call Registry (www.donotcall.gov)

Consumer Protection Act regulates “Do Not Call Registry.” Regulated by Federal Trade Commission

Chap 8

Question 799

Eq____ H_____ P_____ -

As per HUD this must be displayed in the Broker’s Office.

Answer 799

Equal Housing Poster -

As per HUD this must be displayed in the Broker’s Office.

Chap 8

Question 800

(FCRA) F__ Cre___ Rep_____ Act -

Allows Consumers to Correct Inaccurate Credit to be FAIR

Answer 800

(FCRA) Fair Credit Reporting Act -

Allows Consumers to Correct Inaccurate Credit to be FAIR

Chap 8

Question 801

(FCRA) F___ C______ Repor____ Act -

Act Created to Protect from Inaccurate Reporting to Credit Bureaus - Includes:

1. Consumer has Right to Inspect Information,
2. Correct any Inaccurate Info.
3. If “Denied Credit” the Identity of Credit Bureau has to be Disclosed.

Answer 801

(FCRA) Fair Credit Reporting Act -

Act Created to Protect from Inaccurate Reporting to Credit Bureaus - Includes:

1. Consumer has Right to Inspect Information,
2. Correct any Inaccurate Info.
3. If “Denied Credit” the Identity of Credit Bureau has to be Disclosed.

Chap 8

Question 802

The Int______ L___ S___ F__ Dis______ Act regulates and requires:

1. Regulates: Interstate Land Sales,
2. Property Report To Buyers with Full Disclosure of Material Info.

Answer 802

The Interstate Land Sales Full Disclosure Act regulates and requires:

1. Regulates: Interstate Land Sales,
2. Property Report To Buyers with Full Disclosure of Material Info

Chap 8

Question 803

Con_______ Priv___ Act of 19__ -

1. Act governs Collection, Use, Maintenance, and Dissemination of Info About Individuals.
2. Must have Consent of Individuals (To Disclose Info).

Answer 803

Consumer Privacy Act of 1974 -

1. Act governs Collection, Use, Maintenance, and Dissemination of Info About Individuals.
2. Must have Consent of Individuals (To Disclose Info).

Chap 8

Question 804

Con_______ Priv___ Act of 19__ -

1. Federally Governed Act** governs **Collection, Use, Maintenance**, and **Dissemination of Info About Individuals.
2. Must have Consent of Consumer Individuals (To Disclose Info).

Answer 804

Consumer Privacy Act of 1974 -

1. Federally Governed Act governs Collection, Use, Maintenance**, and **Dissemination of Info About Individuals.
2. Must have Consent of Consumer Individuals (To Disclose Info).

Chap 8

Question 805

Federal Fair Housing Act of 1968 - Prohibits Discrimination when Leasing or Selling Property. It is part of Civil Rights Act of 1968 and Prohibits:

1. Ref____ Sell/Rent/Negotiate
2. Qu_____ Different Terms and Conditions
3. Adv____ Properties to Certain People.
4. Ste____ - People Towards and Away from Area
5. Blo_____ - Encouraging to Sell/Rent because Minorities Moving into Area.
6. Redl____ - Lenders Altering Terms and Insurance Co refusing Insurance in GEO Areas
7. Denying Mem____: MLS, Bkr Orgs, etc

Answer 805

Federal Fair Housing Act of 1968 - Prohibits Discrimination when Leasing or Selling Property. It is part of Civil Rights Act oof 1968 and Prohibits:

1. Refusing Sell/Rent/Negotiate with Any Persons -
2. Quoting Different Terms and Conditions to Different Races.
3. Advertising Properties to Certain People.
4. Steering - People Towards and Away from Area
5. Blockbusting - Encouraging to Sell/Rent because Minorities Moving into Area.
6. Redlining - Lenders Altering Terms and Insurance Co refusing Insurance in GEO Areas
7. Denying Membership: MLS, Bkr Orgs, etc

Chap 8

Question 806

Federal Fair Housing Act of 1968 - Prohibits Discrimination when Leasing or Selling Property. It is part of Civil Rights Act of 1968 and Prohibits:

1. Refu___ - Sell/Rent/Negotiate
2. Qu_____ - Different Terms and Conditions
3. Adv____ - Properties to Certain People.
4. Ste____ - People Towards/Away from Area
5. Blo_____ - Encouraging to Sell/Rent because Minorities Moving into Area.
6. Redl____ - Lenders Altering Terms and Insurance Co refusing Insurance in GEO Areas
7. Denying Mem____: MLS, Bkr Orgs, etc

Answer 806

Federal Fair Housing Act of 1968 - Prohibits Discrimination when Leasing or Selling Property. It is part of Civil Rights Act oof 1968 and Prohibits:

1. Refusing Sell/Rent/Negotiate with Any Persons -
2. Quoting Different Terms and Conditions to Different Races.
3. Advertising Properties to Certain People.
4. Steering - People Towards/Away from Area
5. Blockbusting - Encouraging to Sell/Rent because Minorities Moving into Area.
6. Redlining - Lenders Altering Terms and Insurance Co refusing Insurance in GEO Areas
7. Denying Membership: MLS, Bkr Orgs, etc

Chap 8

Question 807

(ECOA) Eq___ Credit Opp______ Act -

Prohibits Discrimination in Ext_______ of Credit.

Basis of Race, Color, Religion, National Origin, Sex, but also

Marital Status, Age** and Income from **Public Assistance.

Race and Color Religiosly Never Opposes Sex. Marriage has Ageless Power to Assist

Answer 807

(ECOA) Equal Credit Opportunity Act -

Prohibits Discrimination in Extension of Credit.

Basis of Race, Color, Religion, National Origin, Sex, but also

Marital Status, Age** and Income from **Public Assistance.

Race and Color Religiosly Never Opposes Sex. Marriage has Ageless Power of Assist.

Chap 8

Question 808

(ADA) Americans with Disability Act -

Requires Commerical Properties to have:

1. Wh_______ Ramps
2. Handicapped P_____ Spaces
3. Handicapped R_______

Answer 808

(ADA) Americans with Disability Act -

Requires Commerical Properties to have:

1. Wheelchair Ramps
2. Handicapped Parking Spaces
3. Handicapped Restrooms

Chap 8

Question 809

(ADA) Americans with Disability Act -

Requires Commerical Properties to have:

1. Wh_______ Ramps to Public Bu_____ is required under this law.
2. Handicapped - P_____ Spaces
3. Handicapped - R_______

Answer 809

(ADA) Americans with Disability Act -

Requires Commerical Properties to have:

1. Wheelchair Ramps to Public Buildings is required under this law.
2. Handicapped Parking Spaces
3. Handicapped Restrooms

Chap 8

Question 810

(ADA) Americans with Disability Act -

Requires Commerical Properties to have:

1. Wh_______ Ramps to Public Bu_____ is required under this law.
2. Handicapped P_____ Spaces
3. Handicapped R_______

Answer 810

(ADA) Americans with Disability Act -

Requires Commerical Properties to have:

1. Wheelchair Ramps to Public Buildings is required under this law.
2. Handicapped Parking Spaces
3. Handicapped Restrooms

Chap 8

Question 811

The Int_____ L___ S___ F___ Disclosure Act regulates and requires:

1. Regulates: Int____ L___ S___,
2. Property Report with Full Disclosure of Material Info. Required and Given to Buyer

Answer 811

The Interstate Land Sales Full Disclosure Act regulates and requires:

1. Regulates: Interstate Land Sales,
2. Property Report with Full Disclosure of Material Info. Required and Given to Buyer

Chap 8

Question 812

Federal Fair Housing Act of 1866

Bl________ -

Minorities Moving in Area, Encouraging Owners to Sell

Answer 812

Federal Fair Housing Act of 1866

Blockbusting -

Minorities Moving in Area, Encouraging Owners to Sell

Chap 8

Question 813

(RESPA) Real Estate Settlement and Procedure Act Requirement (7 Items)

1. Loan Estimate - __ Days of Loan App, and Your H___ L___ Tool Kit (CFPB Closing Cost Booklet)
2. Trid-Closing Cost Disclosure - __ Days Prior to Closing.
3. F_____ Loans Only (FHA,VA,USDA)
4. Prohibits Ex____ M____ held in Impounds
5. Disclosure of Aff______ Business Required
6. Prohibits Ki_____ and Une_____ Fees from Settlement Services
7. Specific Title Company - Seller Cannot Require Buyer Use

Answer 813

(RESPA) Real Estate Settlement and Procedure Act - Requirements

This Act requires: (Disclosure of Settlement Cost)

1. Loan Estimate - 3 days of Loan App, and Your Home Loan Tool Kit (closing cost booklet)
2. Trid-Closing Cost Disclosure - 3 days Prior to Closing.
3. Federal Loans Only - (FHA, VA, USDA)
4. Prohibits Excess Money held in Impounds
5. Disclosure of Affiliated Business - Required
6. Prohibits Kickbacks and Unearned Fees from Settlement Services.
7. Specific Title Company - Seller cannot require buyer use

Chap 8

Question 814

(RESPA) Real Estate Settlement and Procedure Act Requirement (7 Items)

1. Loan Estimate - __ Days of Loan App, and Your H___ L___ Tool Kit (CFPB Closing Cost Booklet)
2. Trid-Closing Cost Disclosure - __ Days Prior to Closing.
3. F_____ Loans Only (FHA,VA,USDA)
4. Prohibits Ex____ M____ held in Impounds
5. Disclosure of Aff______ Business Required
6. Prohibits Ki_____ and Une_____ Fees from Settlement Services
7. Title Company - Buyer’s Choice

Answer 814

(RESPA) Real Estate Settlement and Procedure Act - Requirements

This Act requires: (Disclosure of Settlement Cost)

1. Loan Estimate - 3 days of Loan App, and Your Home Loan Tool Kit (closing cost booklet)
2. Trid-Closing Cost Disclosure - 3 days Prior to Closing.
3. Federal Loans Only - (FHA, VA, USDA)
4. Prohibits Excess Money held in Impounds
5. Disclosure of Affiliated Business - Required
6. Prohibits Kickbacks and Unearned Fees from Settlement Services.
7. Title Company - Buyer’s Choice

Chap 8

Question 815

Federal Fair Housing Act of 1968 - Prohibits Discrimination when Leasing or Selling Property. It is part of Civil Rights Act oof 1968 and Prohibits:

1. Ref_____ Sell/Rent/Negotiate - with Any Persons - Making House Unavailable.
2. Qu____ Different Terms and Conditions
3. Adv_____ Properties to Certain People.
4. Ste_____ - Chanelling People Towards/Away from Area
5. Bloc______ - Encouraging to Sell because Minorities Moving into Area.
6. Red_____ - Lenders Altering Terms and Insurance Co refusing Insurance
7. Denying Mem______: MLS, Bkr Orgs, etc

Answer 815

Federal Fair Housing Act of 1968 - Prohibits Discrimination when Leasing or Selling Property. It is part of Civil Rights Act oof 1968 and Prohibits:

1. Refusing Sell/Rent/Negotiate with Any Persons - Making House Unavailable.
2. Quoting Different Terms and Conditions
3. Advertising Properties to Certain People.
4. Steering - Chanelling People Towards/Away from Area
5. Blockbusting - Encouraging to Sell because Minorities Moving into Area.
6. Redlining - Lenders Altering Terms and Insurance Co refusing Insurance
7. Denying Membership: MLS, Bkr Orgs, etc

Chap 8

Question 816

Federal Fair Housing Act of 1968 - Prohibits Discrimination when Leasing or Selling Property. It is part of Civil Rights Act oof 1968 and Prohibits:

1. Ref_____ Sell/Rent/Negotiate - with Any Persons - Making House Unavailable.
2. Qu____ Different Terms and Conditions
3. Adv_____ Properties to Certain People.
4. Ste_____ - Chanelling People Towards/Away from Area
5. Bloc______ - Encouraging to Sell because Minorities Moving into Area.
6. Red_____ - Lenders Altering Terms and Insurance Co refusing Insurance
7. Denying Mem______: MLS, Bkr Orgs, etc

Answer 816

Federal Fair Housing Act of 1968 - Prohibits Discrimination when Leasing or Selling Property. It is part of Civil Rights Act oof 1968 and Prohibits:

1. Refusing Sell/Rent/Negotiate with Any Persons - Making House Unavailable.
2. Quoting Different Terms and Conditions
3. Advertising Properties to Certain People.
4. Steering - Chanelling People Towards/Away from Area
5. Blockbusting - Encouraging to Sell because Minorities Moving into Area.
6. Redlining - Lenders Altering Terms and Insurance Co refusing Insurance
7. Denying Membership: MLS, Bkr Orgs, etc

Chap 8

Question 817

RESPA’S main purpose is to Disclosures of S_______ Costs.

Answer 817

RESPA’S main purpose is to - Disclosures of Settlement Costs.

Question 818

Advertising (Part of What Act?)

1. Ads cannot contain wording (no matter how subtle) indicating a Discriminatory Preference.
2. Discriminatory Wording: No Wheellchairs, Able Bodied Persons Only; Christian Handyman; Close to Catholic School, White Neighborhood.
3. Photos should represent Entire Population
4. Advertising should be broad based and Not Focus on Any one group or Groups.

Answer 818

Advertising - Fair Housing Act of 1968

1. Ads cannot contain wording (no matter how subtle) indicating a Discriminatory Preference.
2. Discriminatory Wording: No Wheellchairs, Able Bodied Persons Only; Christian Handyman; Close to Catholic School, White Neighborhood.
3. Photos should represent Entire Population
4. Advertising should be broad based and Not Focus on Any one group or Groups.

Chap 8

Question 819

L____ to V___ R____ -

Often used Ratio in Mortgage Lending to Determine the Amount Necessary to Put in a Down-Payment and Whether a Lender will Extend Credit to a Borrower.

Loan Amt / Appraised Value = LTV

Answer 819

Loan to Value Ratio -

Often used Ratio in Mortgage Lending to Determine the Amount Necessary to Put in a Down-Payment and Whether a Lender will Extend Credit to a Borrower.

Loan Amt / Appraised Value = LTV

Chap 7

Question 820

FHA is regulated by what Dept?

Answer 820

HUD -

Dept of Housing and Urban Development - Regulates FHA.

Chap 7

Question 821

Cond______ C_________

FHA Appraisal

Answer 821

Conditional Commitment -

FHA Appraisal

Chap 7

Question 822

Es____ Clause (FHA Amen_____ Clause) -

1. Used if FHA Appraisal Value is Not Equal to or Greater than Purchase Price.
2. Buyers must See Appr_____ or Can Back Out of Contract.

Answer 822

Escape Clause (FHA Amendatory Clause) -

1. Used if FHA Appraisal Value is not equal to or greater than purchase price.
2. Buyers must See Appraisal or Can Back Out of Contract.

Chap 7

Question 823

(CRV) Cer_____ of Rea______ Value -

VA Appraisal

Answer 823

(CRV) Certificate of Reasonable Value -

VA Appraisal

Chap 7

Question 824

VA F_____ Fee -

Charged on VA loan instead of MIP

Answer 824

VA Funding Fee -

Charged on VA loan instead of MIP

Chap 7

Question 825

FHA and VA Loans -

Both types of loans have No Pre______ Pen______

Answer 825

FHA and VA Loans -

Both types of loans have No Prepayment Penalties

Chap 7

Question 826

Assist Lenders to Provide Loans** for **Low to Moderate Income Households in “Rural Areas”

Answer 826

(USDA) US Dept of Agriculture Loans (Guaranteed) - Rural Areas

Assist lenders to Provide Loans** for **Low to Moderate Income Households in “Rural Areas”

Chap 7

Question 827

P

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

Answer 827

Pathway to Purchase - Down Payment Assistance - Foreclosure Areas

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

Chap 7

Question 828

Con_______ Loans -

Loan is made Solely Based on Security and Borrower’s Ability to Repay.

No Guarantees or Government Insurance

Answer 828

Conventional Loans -

Loan is made Solely Based on Security and Borrower’s Ability to Repay.

No Guarantees or Government Insurance

Chap 7

Question 829

Conventional (Un______) Loans -

Loans that Require __% down. Based on Borrower’s Ability to Repay. No Government Insurance or Guarantee

Answer 829

Conventional (Unisured) Loans -

Loans that Require 20% down. Borrower’s Ability to Repay. No Government Insurance or Guarantee

Chap 7

Question 830

Loans offered at a Higher Interest Rate for Less Qualified Borrowers

Answer 830

Subprime Loans - (Less Qualified)

Loans offered at a Higher Interest Rate for Less Qualified Borrowers

Chap 7

Question 831

P_______ I_____ and H____ M____ L_____

Loans offered at Higher Interest for

“Hard to Finance” Borrowers and Properties

Answer 831

Private Investor and Hard Money Loans -

Loans offered at Higher Interest for

“Hard to Finance” Borrowers and Properties

Chap 7

Question 832

Discount Point and Buydowns

Used to Increase L____’s Y___ or Lower Borrowers Rate

Answer 832

Discount Point and Buydowns

Used to Increase Lender’s Yield or Lower Borrowers Rate

Chap 7

Question 833

Loan O_____ Fee -

Covers Initial Cost of Loan

Answer 833

Loan Origination fee -

Covers Initial Cost of Loan

Chap 7

Question 834

Und_______ Fee -

Offset Cost to determine Borrower’s Ability Qualify or to Repay Loan

Answer 834

Underwriting fee -

Offset Cost to determine Borrower’s Ability Qualify or to Repay Loan

Chap 7

Question 835

Estimate how much Borrower can Afford to Borrow

Answer 835

Pre-Qualification -

Estimate how much Borrower can Afford to Borrow

Chap 7

Question 836

Pre-Approval -

Completed L___ App, Inc____ provided, and Borrower’sCr___ Report reviewedthat indicates aStrong Possibility Loan will Close.

Answer 836

Pre-Approval -

Completed Loan App, Income provided, and Borrower’sCredit Report reviewedthat indicates aStrong Possibility Loan will Close.

Chap 7

Question 837

Credit Score (Fico Score) -

Ma________ Formula to indicate Person’s Credit History

Answer 837

Credit Score (Fico Score) -

Mathematical Formula to indicate Person’s Credit History

Chap 7

Question 838

HOA Reserve Funding (FHA Loans Require) -

FHA Loans and other Loans Require HOA Reserves:

1. __% Of HOA Budgeted Income,
2. __% - If less than __% Occupancy

Answer 838

HOA Reserve Funding (FHA Loans Require) -

FHA Loans and other Loans Require HOA Reserves:

1. 10% - Of HOA Budgeted Income,
2. 20% - If less than 50% Occupancy

Chap 7

Question 839

(DCR) D___ Cov______ Rat___ -

Net incomedivided by (Annual) PI payments

= Ratio of Net Income from “Commercial Properties.”

Lenders require above __

• Net Income
• _(_Annual) PI Payments

Answer 839

(DCR) Debt Coverage Ratio -

Net incomedivided by (Annual) PI payments= Ratio of Net Income from “Commercial Properties.”

Lenders require above 1

• Net Income
• _(_Annual) PI Payments

Chap 7

Question 840

C_______ Cre____ Tran_______

(Financial Institutes/Merchants -Person/Company) -

Acquires Property for P______, Fam___ or Household purposes (Loan, Lease or Sale under $25,000)

Owner Occ and 1-4 Units Only

Answer 840

Consumer Credit Transaction

(Financial Institutes/Merchants -Person/Company) -

Acquires Property for Personal, Family or Household purposes. (Loan, Lease or Sale under $25,000)

Owner Occ and 1-4 Units Only

Chap 7

Question 841

Non-Consumer Credit Transaction

(Finance Institutes/Merchant - Person or Company) -

Acquires Property for Bus_____ Purposes. Profit motives or Inv_____ Purposes, Property Taxes

Answer 841

Non-Consumer Credit Transaction

(Finance Institutes/Merchant - Person or Company) -

Acquires Property for Business Purposes. Profit motives or Investment Purposes, Property Taxes

Chap 7

Question 842

W_____ R_____ from the L_____ -

Seller must request, when Seller Does Not want to remain Liable for Loan and wants Buyer to take over loan.

Answer 842

Written Release from the Lender -

Seller must request, when Seller Does Not want to remain Liable for Loan and wants Buyer to take over Loan

Chap 7

Question 843

N_______ -

Process of Lender Rewriting Loan Terms of Existing Loan, Subs New Buyer and Releases Seller’s Liability.

Answer 843

Novation -

Process of Lender Rewriting Loan Terms of Existing Loan, Subs New Buyer and Releases Seller’s Liability.

Chap 7

Question 844

Red____ Cert_____ (Assu_____ Letter) - For Assumed Loans

1. Lender Gives to Buyer Assuming Loan.
2. Verifies Loan Balance and Terms when Buyer takes over Payments

Answer 844

Reduction Certificate (Assumption Letter) - For Assumed Loans

1. Lender Gives to Buyer Assuming Loan.
2. Verifies Loan Balance and Terms when Buyer takes over Payments

Chap 7

Question 845

Financial Intermediaries (Primary Mortage Market Lenders) -

Originate Loans directly to Borrower:

1. Comm____ Banks and C____ Unions,
2. Ins_____ Companies,
3. Port_____ Lenders,
4. Mort_____ Brokers and Mortgage Bankers

Answer 845

Financial Intermediaries (Primary Mortage Market Lenders) -

Originate Loans directly to Borrower:

1. Commercial Banks and Credit Unions,
2. Insurance Companies,
3. Portfolio Lenders,
4. Mortgage Brokers and Mortgage Bankers

Chap 7

Question 846

1. 2 Financial Intermediaries (Prime Market) that Originate Loans
2. Buy Loans - in Secondary Market

Answer 846

Commercial Banks and Credit Unions (Buy)

1. 2 Financial Intermediaries (Prime Market) that Originate Loans
2. Buy Loans in Secondary Market

Chap 7

Question 847

-

1. Financial Intermediary that Make “Large Loans” to Commercial and Industrial Borrowers.
2. Residential Loans Done - thru Mortgage Companies
3. Buy Loans in Secondary Market

Answer 847

Insurance Companies -

1. Financial Intermediary that Make “Large Loans” to Commercial and Industrial Borrowers.
2. Residential Loans Done - thru Mortgage Companies
3. Buys Loans in Secondary Market

Chap 7

Question 848

Por___ Lenders -

A Primary Market Lender (Financial Intermediary). Does Not Sell Loans. Non-Conforming or Jumbo Loans

Answer 848

Portfolio Lenders -

A Primary Market Lender (Financial Intermediary). Does Not Sell Loans. Non-Conforming or Jumbo Loans

Chap 7

Question 849

M

1. Primary Lender (Financial Intermediary)
2. May Represent - Life Insurance Co., Pension Funds, and Private Investos in Originating Loans.
3. Sells Loans to Secondary Market

Answer 849

Mortgage Brokers and Bankers

1. Primary Lender (Financial termediary)
2. May Represent - Life Insurance co., Pension Funds, and Private Investors in Originating Loans.
3. Sells Loans to Secondary Market

Chap 7

Question 850

AZ Dept of Fin______ Inst______

“Licenses” Mortgage Loan Originators (ML0)

Answer 850

AZ Dept of Financial Institutions

“Licenses” Mortgage Loan Originators (ML0)

Chap 7

Question 851

Gathering of Loans to Sell in Secondary Market

Answer 851

Warehousing -

Gathering of Loans to Sell in Secondary Market

Chap 7

Question 852

1. Certificate Signed by Borrower stating
   
   1. Exact Loan Balance and Interest Rate.
2. Tenant to Verify Lease Terms.
3. Used by Lenders Selling Loans.

Answer 852

Estoppel Certificate -

1. Certificate Signed by Borrower Stating
   
   1. Exact Loan Balance and Interest Rate.
2. Tenant to Verify Lease Terms.
3. Used by Lenders Selling Loans.

Chap 7

Question 853

Borrower Makes Payments to this service provider, which are Passed to Loan Investor. Seller Carrybacks often use Title Companies

Chap 7

Answer 853

Loan Servicing -

Borrower Makes Payments to this service provider, which are Passed to Loan Investor. Seller Carrybacks often use Title Companies

Chap 7

Question 854

1. Issues Certicates that Guarantee FHA and VA Loans to Secondary Market Purchasers.
2. Operates Special Assistance aspects of Federally Assisted Low Income Housing.

Answer 854

Ginnie Mae aka Gov Nat’l Mortgage Assoc.(GNMA) -

1. Issues Certificates that Guarantee FHA and VA Loans to Secondary Market Purchasers.
2. Operates Special Assistance aspects of Federally Assisted Low Income Housing.

Chap 7

Question 855

Fannie Mae (Fed. Nat’l Mortgage Assoc) and Freddie Mac (Fed. Home Loan Mort. Corp)

1. Sets Standards for Conv_____ Loans.
2. Buys Conv_____ Loans in Sec_____ Market.
3. Sells Loans and Issues Bo___ - Secured by Mortgages (Mortgage Backed Securities).
4. Created “Uniform Res Loan App (URLA-Form ____).

Answer 855

Fannie Mae (Fed. Nat’l Mortgage Assoc) and Freddie Mac (Fed. Home Loan Mort. Corp)

1. Sets Standards for Conventional Loans.
2. Buys Conventional Loans in Secondary Market.
3. Sells Loans and Issues Bonds - Secured by Mortgages (Mortgage Backed Securities).
4. Created “Uniform Res Loan App (URLA-Form 1003)

Chap 7

Question 856

Financial Intermediaries “Buy Loans” from Secondary Market

1. Ins______ Companies - (Buy Loans)
2. Com_____ Banks and Credit Unions - (Buy Loans)
3. Fa____ M__ - (Buy Conventional Loans)

Answer 856

Financial Intermediaries “Buy Loans” from Secondary Market

1. Insurance Companies (Buy Loans)
2. Commercial Banks and Credit Unions (Buy Loans)
3. Fannie Mae (Buy Conventional Loans)

Chap 7

Question 857

Financial Intermediaries who “Sell Loans” to Secondary Market

1. Mortgage Br____ and Ba______,
2. Fannie Mae Sells Loans and Issues Secured Bonds (Mortgage Backed Securities)
3. GNMA - Issues Certs Guarantee VA/FHA loans to 2nd Market P_________.

Chap 7

Answer 857

Financial Intermediaries who “Sell Loans” to Secondary Market

1. Mortgage Brokers and Bankers,
2. Fannie Mae Sells Loans and Issues Secured Bonds (Mortgage Backed Securities)
3. GNMA - Issues Certs Guarantee VA/FHA loans to 2nd Market Purchasers

Chap 7

Question 858

Ins____ Conv______ Loans -

Loans that have PMI, and are above 80% but no more that 97% of Appraised Value.

Answer 858

Insured Conventional Loans -

Loans that have PMI, and are above 80% but no more that 97% of Appraised Value.

Chap 7

Question 859

Market where Primary Market Loans are Bought and Sold to Other Lenders and Investors.

Answer 859

Secondary Market -

Market where Primary Market Loans are Bought and Sold to Other Lenders and Investors.

Chap 7

Question 860

(MGIC) Mor____ Guarantee Ins_____ Corporation -

A Private Company where mortgage insurance providers Assume a Portion of a Lender’s or Investor’s Risk in Making a Mortgage Loan, ultimately shielding taxpayers from liability

Answer 860

(MGIC) Mortgage Guarantee Insurance Corporation -

A Private Company where mortgage insurance providers Assume a Portion of a Lender’s or Investor’s Risk in Making a Mortgage Loan, ultimately shielding taxpayers from liability

Chap 7

Question 861

Borrowers must pay Upfront MIP (UFMIP) at Closing and will also Have their Annual Premium Added to their Monthly Mortgage Payments.

Also Protects Lender in Event of Foreclosure

Answer 861

(MIP) Mortgage Insurance Premium -

Borrowers must pay Upfront MIP (UFMIP) at Closing and will also Have their Annual Premium Added to their Monthly Mortgage Payments.

Also Protects Lender in Event of Foreclosure

Chap 7

Question 862

Mo____ Market -

Determines the Discount Points

Answer 862

Money Market -

Determines the Discount Points

Chap 7

Question 863

Mor____ (Receives Loan)

In a Loan, the Lender is the Person who Receives Loan

Answer 863

Mortgagee (Receives Loan)

In a Loan the Lender is known as Mortgagee.

Chap 7

Question 864

________ and ________

1. Sets Standards for Conventional Loans.
2. Main Purpose is to Buy Conventional Loans in Secondary Market.

Answer 864

Fannie Mae/Freddie Mac

1. Sets Standards for Conventional Loans.
2. Main Purpose is to Buy Conventional Loans in Secondary Market.

Chap 7

Question 865

FHA and L_____ -

Gives Approval, when Seller has Buyer, who wants to Assume FHA Loan

Answer 865

FHA and Lender -

Gives Approval, when Seller has Buyer, who wants to Assume FHA Loan

Chap 7

Question 866

SBA Loans (S____ B_____ Adm_______) -

Loans made to Purchase or Expand a Small Business

Answer 866

SBA Loans (Small Business Administration) -

Loans made to Purchase or Expand a Small Business

Chap 7

Question 867

Certificate issued by the VA to Veterans Stating the Eligibility and Amount of Guarantee (Entitlement).

Note: When Paid Off Eligibity is Restored.

Answer 867

Certificate of Eligibility -

Certificate issued by the VA to Veterans Stating the Eligibility and Amount of Guarantee (Entitlement).

Note: When Paid Off Eligibity is Restored.

Chap 7

Question 868

Required on Conventional Loans above 80%-97% LTV.

Answer 868

Mortgage Insurance (MI) or Private Mortgage Insurance (PMI)

Required on Conventional Loans above 80%-97% LTV.

Chap 7

Question 869

Conf______ Loans

Loans that meet all Fannie Mae and Freddie Mac Guidelines.

Answer 869

Conforming Loans -

Loans that meet all Fannie Mae** and **Freddie Mac Guidelines

Chap 7

Question 870

Loans that “Do Not” meet Fannie Mae or Freddie Mac Guidelines.

Answer 870

Non-Conforming Loans -

Loans that “Do Not” meet Fannie Mae or Freddie Mac guidelines.

Chap 7

Question 871

J____ Loans -

Non-Conforming loans that Exceed Max Dollar Limits set by Fannie Mae or Freddie Mac and have Less Favorable Terms.

Answer 871

Jumbo Loans -

Non-conforming loans that Exceed Max Dollar Limits set by Fannie Mae or Freddie Mac and have Less Favorable Terms.

Chap 7

Question 872

R___ Lock -

Lender Guarantees interest Rate will Not Change prior to closing

Answer 872

Rate Lock -

Lender guarantees interest rate will not change prior to closing.

Chap 7

Question 873

Floating Rate -

When Rate Could Change Prior to Closing.

Answer 873

Floating Rate -

When Rate Could Change Prior to Closing.

Chap 7

Question 874

Tri-_____ Credit Report -

Single Credit Report that brings together Data from all 3 Major Credit Reporting Agencies.

Answer 874

Tri-Merged Credit Report -

Single Credit Report that brings together Data from all 3 Major Credit Reporting Agencies.

Chap 7

Question 875

Loan As_______ -

Buyer does not Originate Loan but Takes Over Payments and Assumes Personal Liability on Existing Loan.

Answer 875

Loan Assumption -

Buyer does not Originate Loan but Takes Over Payments and Assumes Personal Liability on Existing Loan.

Chap 7

Question 876

P______ M____ M_____ -

Originate Loans Directly with Borrowers. These Lenders are also called “Financial Intermediaries”.

Answer 876

Primary Mortgage Market -

Originate Loans Directly with Borrowers. These Lenders are also called “Financial Intermediaries”.

Chap 7

Question 877

Assig_____ -

The “Process” of Selling a Loan to Another Lender

Answer 877

Assignment -

The “Process” of Selling a Loan to Another Lender

Chap 7

Question 878

FHLMC - Federal H____ L___ M____ Corp -

Another Term for Freddie Mac

Answer 878

FHLMC - Federal Home Loan Mortgage Corp -

Another Term for Freddie Mac

Chap 7

Question 879

URLA - Uniform R______ L____ Application -

Created by Fannie Mae for Residential Loans

Answer 879

URLA - Uniform Residential Loan Application -

Created by Fannie Mae for Residential Loans

Chap 7

Question 880

Assist lenders to provide loans for Low to Moderate Income Households in Rural Areas

Answer 880

(USDA) US Dept of Agriculture Loans (Guaranteed) - Rural Areas

Assist lenders to provide loans for Low to Moderate Income Households in Rural Areas

Chap 7

Question 881

P______ ______ and D______ _____ ______

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

Answer 881

Pathway to Purchase - Down Payment Assistance - Foreclosure Areas

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

Chap 7

Question 882

Interest Problems Formula

Answer 882

Interest Problems Formula -

• Interest
• Principal x Rate

Chap 7

Question 883

Loan Problems Formula

Answer 883

Loans Problem Formula -

• Loan Amount
• Value x Rate

Chap 7

Question 884

Lender is Insured from Loss by this housing program.This Insurance Protection Allows Borrower to obtain Loans with Higher Loan to Value Ratio (LTV)and Smaller Down Payment as compared to Unisured Conventional Loans

Answer 884

(FHA) Fed Housing Administration - Insured Loans

Lender is Insured from Loss by FHA. This Insurance Protection Allows Borrower to obtain Loan with Higher Loan to Value Ratio (LTV)and Smaller Down Payment as compared to Unisured Conventional Loans

Chap 7

Question 885

FHA Insured Loans Guidelines

1. FHA Ap_____ Lenders make the Loans
2. FHA Regulated by Dept of H_____ & Ur___ Development (HUD)
3. Borrower Pays (MIP) Mor____ Ins_____ Pre_____. Mortgage Insurance protects the Lender if Property For_____
4. Appraisal is called Cond_____ Com______
5. Escape Clause (FHA Am______ Clause) - Used if Appraisal is Not Equal or Above Purchase Price. Buyer can Back-Out.
6. Owner Occupied - 1 to __ Units Only
7. No Pre______ Pen_____

Answer 885

FHA Insured Loans Guidelines

1. FHA Approved Lenders make the Loans
2. FHA Regulated by Dept of Housing & Urban Development (HUD)
3. Borrower Pays (MIP) Mortgage Insurance Premium. Mortgage Insurance protects the Lender if Property Forclosed
4. Appraisal is called Conditional Commitment
5. Escape Clause (FHA Amendatory Clause) - Used if Appraisal is not Equal or Above Purchase Price. Buyer can Back-Out.
6. Owner Occupied - 1 to 4 Units Only
7. No Prepayment Penalties

Question 886

VA Loan Requirements

1. VA Ap______ Lenders makes Loans
2. Cert______ of Elig_____ - Veteran Eligibility and Amount Guarantee (Entitlement)
3. VA F______ Fee - So No MIP
4. Appraisal is called - Cert_____ of Reas_____ V___ (CRV)
5. No Down Payment - ____% LTV Unless Over Purchase Price
6. Owner Occupied - 1 to __ Units
7. No Pre_______ Penalties

Answer 886

VA Loan Requirements

1. VA Approved Lenders makes Loans
2. Certificate of Eligibility - Veteran Eligibility and Amount Guarantee (Entitlement)
3. VA Funding Fee - So No MIP
4. Appraisal is called - Certiticate of Reasonable Value (CRV)
5. No Down Payment - 100% LTV Unless Over Purchase Price
6. Owner Occupied - 1 to 4 Units
7. No Prepayment Penalties

Chap 7

Question 887

R__ L__

Lender Guarantees the Interest Rate will not Change Prior to Closing.

Answer 887

Rate Lock -

Lender Guarantees the Interest Rate will not Change Prior to Closing.

Chap 7

Question 888

T___ S___ F___

Charge to Hire a Tax Service Company to Infom Lender When Property Taxes are Due and Payable.

Answer 888

Tax Service Fee

Charge to Hire a Tax Service Company to Inform Lender When Property Taxes are Due and Payable.

Chap 7

Question 889

F____ R___

Interest Rate Could Change prior to Closing

Answer 889

Floating Rate

Interest Rate Could Change prior to Closing

Chap 7

Question 890

Redu____ Cert_____ (Assu_____ Letter)-

1. Lender Gives to Buyer who is Assuming Loan.
2. Verifies Loan Balance and Terms when Buyer Takes Over Payments

Answer 890

Reduction Certificate (Assumption Letter)-

1. Lender Gives to Buyer who is Assuming Loan.
2. Verifies Loan Balance and Terms when Buyer Takes Over Payments

Chap 7

Question 891

1. 2 Financial Intermediaries that Originate Loans in Prime Market
2. Buy Loans in Secondary Market

Answer 891

Commercial Banks and Credit Unions - (Buy)

1. 2 Financial Intermediaries that Originate Loans in Prime Market
2. Buy Loans in Secondary Market

Chap 7

Question 892

1. Primary Lender (Financial Intermediary)
2. May Represent Life Insurance Co., Pension Funds, and Private Investors in “Originating Loans.”
3. Sells Loans to Secondary Market

Answer 892

Mortgage Brokers and Bankers (Sell)

1. Primary Lender (Financial Intermediary)
2. May Represent Life Insurance Co., Pension Funds, and Private Investors in “Originating Loans.”
3. Sells Loans to Secondary Market

Chap 7

Question 893

(MLO) Mortgage Loan Originators

1. Licensed by Arizona Dept of Fin______ Inst_____
2. Regulated byNat_____ Mortgage Lic_____ System (NMLS)

Answer 893

(MLO) Mortgage Loan Originators

1. Licensed by Arizona Department of Financial Institution
2. Regulated by the Nationwide Mortgage Licensing System (NMLS)

Chap 7

Question 894

Ginnie Mae aka Gov N____ Mor____ Asso____ (GNMA)

1. Issues Certificates that Guarantee FHA and VA Loans to Secondary Market Purchasers.
2. Operates Special Assistance aspects of Federally Assisted Low Income Housing.

Answer 894

Ginnie Mae aka Gov Nat’l Mortgage Assoc (GNMA) -

1. Issues Certificates that Guarantee FHA and VA Loans to Secondary Market Purchasers.
2. Operates Special Assistance aspects of Federally Assisted Low Income Housing.

Chap 7

Question 895

1. Issues Certificates that Guarantees FHA and VA loans to Secondary Market Purchasers.
2. Operates Special Assistance aspects of Federally Assisted “Low Income” Housing.

Answer 895

Ginnie Mae aka Gov Nat’l Mortgage Assoc (GNMA) -

1. Issues Certificates that Guaranteeing FHA and VA loans to Secondary Market Purchasers.
2. Operates Special Assistance aspects of Federally Assisted Low Income Housing.

Chap 7

Question 896

(GNMA) Ginnie Mae aka Gov Nat’l Mortgage Assoc -

1. Issues Certs that Guar______ FHA and VA Loans to Secondary Market Purchasers.
2. Operates Special Assistance aspects of Federally Assisted “L__ Inc____” Housing.

Answer 896

(GNMA) Ginnie Mae aka Gov Nat’l Mortgage Assoc -

1. Issues Certs that Guaranteeing FHA and VA Loans to Secondary Market Purchasers.
2. Operates Special Assistance aspects of Federally Assisted Low Income Housing.

Chap 7

Question 897

1. Primary Lender (Financial Intermediaries)
2. May Represent Life Insurance Co., Pension Funds, and Private Investors in “Originating Loans.”
3. Sells Loans to Secondary Market

Answer 897

Mortgage Brokers and Bankers

1. Primary Lender (Financial Intermediary)
2. May Represent Life Insurance Co., Pension Funds, and Private Investors in “Originating Loans.”
3. Sells Loans to Secondary Market

Chap 7

Question 898

Assist lenders to provide loans for Low to Moderate Income Households in Rural Areas

Answer 898

(USDA) US Dept of Agriculture Loans - (Guaranteed) -

Assist lenders to provide loans for Low to Moderate Income Households in Rural Areas

Chap 7

Question 899

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

Answer 899

Pathway to Purchase - Down Payment Assistance - Foreclosure Area

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

Chap 7

Question 900

Mortgage Brokers and Bankers

1. Primary Lender (Financial termediary)
2. May Represent L__ Insurance co., P_____ Funds, and Pr_____ Investors in “Originating Loans.”
3. Sells Loans to Secondary Market

Answer 900

Mortgage Brokers and Bankers (Sell)

1. Primary Lender (Financial termediary)
2. May Represent Life Insurance co., Pension Funds, and Private Investors in Originating Loans.
3. Sells Loans to Secondary Market

Chap 7

Question 901

P______ to P________ - D______ P____ A_______

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

Answer 901

Pathway to Purchase - Down Payment Assistance - Foreclosure Areas

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

Chap 7

Question 902

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

Answer 902

Pathway to Purchase - Down Payment Assistance - Foreclosure Areas

AZ Department of Housing provides these Loans in Hardest Hit Areas by Foreclosures

Chap 7

Question 903

D__________ and B________

Used to Increase Lender’s Yield or Lower Borrowers Rate

Answer 903

Discount Point and Buydowns

Used to Increase Lender’s Yield or Lower Borrowers Rate

Chap 7

Question 904

Gathering of Loans to Sell in Secondary Market

Answer 904

Warehousing -

Gathering of Loans to Sell in Secondary Market

Chap 7

Question 905

E________ ______ -

1. Certificate Signed by Borrower Stating
   
   1. Exact Loan Balance and Interest Rate.
2. Tenant to Verify Lease Terms.
3. Used by Lenders Selling Loans.

Answer 905

Estoppel Certificate -

1. Certificate Signed by Borrower Stating
   
   1. Exact Loan Balance and Interest Rate.
2. Tenant to Verify Lease Terms.
3. Used by Lenders Selling Loans.

Chap 7

Question 906

1. Certificate Signed by Borrower Stating
   
   1. Exact Loan Balance and Interest Rate.
2. Tenant to Verify Lease Terms.
3. Used by Lenders Selling Loans.

Answer 906

Estoppel Certificate -

1. Certificate Signed by Borrower Stating
   
   1. Exact Loan Balance and Interest Rate.
2. Tenant to Verify Lease Terms.
3. Used by Lenders Selling Loans.

Chap 7

Question 907

1. Certificate Signed by Borrower stating:
   
   1. Exact Loan Balanace and Interest Rate.
2. Tenant to Verify Lease Terms.
3. Used by Lenders Selling Loans.

Answer 907

Estoppel Certificate -

1. Certificate Signed by Borrower Stating:
   
   1. Exact Loan Balance and Interest Rate.
2. Tenant to Verify Lease Terms.
3. Used by Lenders Selling Loans.

Chap 7

Question 908

1. Financial Intermediary that Make “Large Loans” to Commercial and Industrial Borrowers.
2. Residential Loans Done - thru Mortgage Companies
3. Buys Loans in Secondary Market

Answer 908

Insurance Companies - (Buy)

1. Financial Intermediary that Make “Large Loans” to Commercial and Industrial Borrowers.
2. Residential Loans Done - thru Mortgage Companies
3. Buys Loans in Secondary Market

Chap 7

Question 909

I_________ _______ -

1. Financial Intermediary that Make “Large Loans” to Commercial and Industrial Borrowers.
2. Residential Loans Done - thru Mortgage Companies
3. Buys Loans in Secondary Market

Answer 909

Insurance Companies -

1. Financial Intermediary that Make “Large Loans” to Commercial and Industrial Borrowers.
2. Residential Loans Done - thru Mortgage Companies
3. Buys Loans in Secondary Market

Chap 7

Question 910

-

1. Financial Intermediary that Make “Large Loans” to Commercial and Industrial Borrowers.
2. Residential Loans Done - thru Mortgage Companies
3. Buys Loans in Secondary Market

Answer 910

Insurance Companies -

1. Financial Intermediary that Make “Large Loans” to Commercial and Industrial Borrowers.
2. Residential Loans Done - thru Mortgage Companies
3. Buys Loans in Secondary Market

Chap 7

Question 911

Used to Increase Lender’s Yield or Lower Borrowers Rate

Answer 911

Discount Point or Buydowns

Used to Increase Lender’s Yield or Lower Borrowers Rate

Chap 7

Question 912

1. Primary Lender (Financial Intermediary)
2. May Represent Life Insurance Co., Pension Funds, and Private Investors in “Originating Loans.”
3. Sells Loans to Secondary Market

Answer 912

Mortgage Brokers and Bankers

1. Primary Lender (Financial Intermediary)
2. May Represent Life Insurance Co., Pension Funds, and Private Investors in “Originating Loans.”
3. Sells Loans to Secondary Market

Chap 7

Question 913

1. Primary Lender (Financial Intermediary)
2. May Represent Life Insurance Co., Pension Funds, and Private Investors in “Originating Loans.”
3. Sells Loans to Secondary Market

Answer 913

Mortgage Brokers and Bankers

1. Primary Lender (Financial Intermediary)
2. May Represent Life Insurance Co., Pension Funds, and Private Investors in “Originating Loans.”
3. Sells Loans to Secondary Market

Chap 7

Question 914

Lender is Insured from Loss by FHA. This Insurance Protection Allows Borrower to obtain Loan with Higher Loan to Value Ratio (LTV)and Smaller Down Payment as compared to Unisured Conventional Loans

Answer 914

(FHA) Fed Housing Administration - Insured Loans

Lender is Insured from Loss by FHA. This Insurance Protection Allows Borrower to obtain Loan with Higher Loan to Value Ratio (LTV)and Smaller Down Payment as compared to Unisured Conventional Loans

Chap 7

Question 915

Funds For Conventional Loans are secured from:

1. FHA
2. Fannie Mae
3. Freddie Mac
4. Private Sources

Answer 915

Funds For Conventional Loans are secured from:

1. FHA
2. Fannie Mae
3. Freddie Mac
4. Private Sources

Chap 7

Question 916

Funds for FHA loans are secured from:

1. Fannie Mae
2. Approved Local Lenders
3. FDIC
4. FHA

Answer 916

Funds for FHA loans are secured from:

1. Fannie Mae
2. Approved Local Lenders
3. FDIC
4. FHA

Chap 7

Question 917

Which of the following loans has the Highest Loan to Value?

1. Conventional
2. Conventional with PMI
3. FHA
4. VA

Answer 917

Which of the following loans has the Highest Loan to Value?

1. Conventional
2. Conventional with PMI
3. FHA
4. VA

Chap 7

Question 918

The government agency that supervises and administers subsidy programs for low-income housing is:

1. FHA
2. Fannie Mae
3. GNMA
4. Freddie Mac

Answer 918

The government agency that supervises and administers subsidy programs for low-income housing is:

1. FHA
2. Fannie Mae
3. GNMA
4. Freddie Mac

Chap 7

Question 919

Freddie Mae and Freddie Mac do NOT:

1. Sell Loans
2. Sell Bonds Secured by Mortgages
3. Buy Conventional Loans
4. Originate FHA and VA Loans

Answer 919

Freddie Mae and Freddie Mac do NOT:

1. Sell Loans
2. Sell Bonds Secured by Mortgages
3. Buy Conventional Loans
4. Originate FHA and VA Loans

Chap 7

Question 920

Original Loan Amount or Current Loan Balance is?

Answer 920

Principal in Loan -

Original Loan Amount or Current Loan Balance

Chap 6

Question 921

L______

Increase of Rate of Return - Using Borrower’s Money

Answer 921

Leverage -

Increase of Rate of Return - Using Borrower’s Money.

Chap 6

Question 922

Motivated by High Yield**, **Low Risk and Good Security

Answer 922

The Lender -

Motivated by High Yield**, **Low Risk and Good Security

Chap 6

Question 923

1. Personal Promise to Repay - Serves As Evidence of Debt.
2. No Collateral Referenced
3. States Parties; Amt of Debt; Rate; Pattern of Pymts

Answer 923

Promissory Note -

1. Personal Promise to Repay - Serves As Evidence of Debt.
2. No Collateral Referenced
3. States Parties; Amt of Debt; Rate; Pattern of Pymts

Chap 6

Question 924

P_______ N____

States:

1. Lender/Borrower,
2. Debt Amt,
3. Rate,
4. Pattern of Pymts
5. No Collateral Stated

Answer 924

Promissory Note

States:

1. Lender/Borrower,
2. Debt Amt,
3. Rate,
4. Pattern of Pymts
5. No Collateral Stated

Chap 6

Question 925

1. Hypothecates Property as Collateral, with Provisions to Foreclose.
2. States Legal Description and
3. Recorded by Lender.

Answer 925

Mortgage or Trust Deed -

1. Hypothecates Property as Collateral, with Provisions to Foreclose.
2. States Legal Description and
3. Recorded by Lender.

Chap 6

Question 926

Level Payments of Principal and Interest Only

Answer 926

Amortized - P&I

Level Payments of Principal and Interest Only

Chap 6

Question 927

PITI Payments - Principal, Interest, Taxes and Insurance are called?

Answer 927

Budget -

PITI Payments - Principal, Interest, Taxes and Insurance

Chap 6

Question 928

Str_____ Loan aka S____ Term Loan/T____ Loan -

Loan with Interest Only Payments. Principal due at end.

Example: Construction loans.

Answer 928

Straight Loan aka Short Term Loan/Term Loan -

Loan with Interest Only Payments. Principal at end.

Example: Construction Loan

Chap 6

Question 929

What type of Principal Only Payments (Amoritized) and Interest Added to Loan Balance.

Answer 929

Negative Amortization -

Principal Only Payments (Amoritized), and Interest Added to Loan Balance

Chap 6

Question 930

Payments on Real Estate Loans:

Are They Paid in Advance or in Arrears?

Answer 930

Arrears -

Payments on Real Estate Loans“Paid in Arrears.”

Chap 6

Question 931

Buyer has Insufficent Down Payment, and Seller becomes Lender (Seller CarryBack Financing)

Answer 931

Purchase Money Loan -

Buyer has Insufficent Down Payment, and Seller becomes Lender (Seller CarryBack Financing)

1. 200 SP
2. 120 1st Balance
3. 80 Seller Equity
4. (50 Buyer Down From Slr Equity)
5. 30 To Seller (Seller Carr Back)
6. 120 New Lender Loan

Chap 6

Question 932

In this Loan, Rate Adjustments are Tied to

1. (MTA) Monthly Tr_____ Av_____
2. (LIBOR) L____ Interb___ Offered R___

Answer 932

Adjustable Rate Loan (ARM) -

Rate Adjustments Tied to:

1. (MTA) Monthly Treasury Average
2. (LIBOR) London Interbank Offered Rate

Chap 6

Question 933

Loan Secures More than One Property.

Answer 933

Blanket Loans -

Loan Secures More than One Property

Chap 6

Question 934

Con________ Loan aka Interim Loan

1. Funds Advanced in Installments as Things Progress.
2. Interest Only Payments. Principal Due at Maturity of Debt.
3. Short (Term) Loans or Interim Loans.

Answer 934

Construction Loan aka Interim Loan -

1. Funds Advanced in Installments As Things Progress.
2. Interest Only Payments, Principal Due at Maturity of Debt.
3. Short (Term) or Interim loans, Straight loan.

Chap 6

Question 935

T____-O___ Loan -

To Pay-Off Construction Loan - Buyer will take Long Term Financing or Permanent Loan.

Answer 935

Take-Out Loan -

To Pay-Off Construction Loan - Buyer will take Long Term Financing or Permanent Loan.

Chap 6

Question 936

G____, Sw_____ or Br____ Loan

Short Term Loan to Allow Buyer to Borrow Funds for Down Payment for Another Property.

Used to Bridge The Gap between Construction Loan and Take-Out (Permanent Buyer Loan)

Answer 936

Gap, Swing, or Bridge Loan -

Short Term Loan to Allow Buyer to Borrow Funds for Down Payment for Another Property.

Used to Bridge Gap between Construction Loan and Take-Out loan (Permanent Buyer Loan)

Chap 6

Question 937

R____ Ann___ M_____ (RAM)

Lender Pays Borrower - Monthly Payments - For this Type of Loan

Answer 937

Reverse Annuity Mortgage (RAM) -

Lender Pays Borrower - Monthly Payments - For this Type of Loan

Chap 6

Question 938

N__-R______ Loan -

Borrower Not Held Liable. Lender Can Sieze Collatoral but No Further Compensation From Borrower.

Answer 938

Non-Recourse Loan -

Borrower Not Held Liable. Lender Can Sieze Collatoral but No Further Compensation From Borrower.

Chap 6

Question 939

Acc______ Clause -

Due and Payable upon Default (Think Fast!).

Answer 939

Acceleration Clause - Default

Due and Payable upon Default (Think Fast!).

Chap 6

Question 940

A_______ Clause -

Due and Payable Upon Sale, Upon Transfer of Ownership

Answer 940

Alienation Clause -

Due and Payable Upon Sale, Upon Transfer of Ownership

Chap 6

Question 941

Pr_______ P______ Clause -

Lender Yield Maintenance Clause. Used if Loan Paid-Off Early.

Answer 941

Prepayment Penalty Clause -

Lender Yield Maintenance ClauseUsed If Loan Paid-Off Early.

Chap 6

Question 942

De________ Clause -

Borrower Pays-Off, Mortgage and Note Null and Void

Answer 942

Defeasance Clause -

Borrower Pays-Off, Mortgage and Note Null and Void

Chap 6

Question 943

R______ Clause or P_____ Release -

Allows Individual Parcels to be Released From Blanket Loan

Answer 943

Release Clause or Partial Release -

Allows Individual Parcels to be Released From Blanket Loan

Chap 6

Question 944

N__-Dist______ Clause -

Lender Agrees Not To Terminate Tenant Leases, During Foreclosure

Note: Under Protecting Tenants at Foreclosure: Tenant Gets 90 day Notice to Vacate or Lease is honored to term.

Answer 944

Non-Disturbance Clause -

Lender Agrees Not To Terminate Tenant Leases, During Foreclosure

Note: Under Protecting Tenants at Foreclosure: Tenant Gets 90 day Notice to Vacate or Lease is honored to term.

Question 945

P_______ G________ Clause -

1. Indicates Person Liable if Default Occurs - Used for Corps / LLC’s.

Answer 945

Personal Guarantee Clause -

1. Indicates Person Liable if Default Occurs - Used for Corps / LLC’s.

Chap 6

Question 946

U_____ -

Charging More Than Rate by Law

Answer 946

Usury -

Charging More Than Rate by Law

Chap 6

Question 947

C______ Rate, No____ Rate, Nom____ Rate -

Rate Specified in Note

Answer 947

Contract Rate, Note Rate, Nominal Rate -

Rate Specified in Note

Chap 6

Question 948

If No Rate in Agreement, This Rate is Used. Also in Judgements unless Court Stipulates Different Rate.

Answer 948

Legal Rate -

If No Rate in Agreement, This Rate is Used. Also in Judgements unless Court Stipulates Different Rate.

Chap 6

Question 949

Charge Made To - Borrow Money (Usually Simple Interest)

Answer 949

Interest -

Charge Made To - Borrow Money (Usually Simple Interest)

Chap 6

Question 950

Type of Loan that is Insured by Federal Housing Admin, HUD

Answer 950

FHA Loan -

Insured by Federal Housing Admin, HUD

Chap 6

Question 951

Guaranteed by the Dept of Veteran’s Affairs

Answer 951

VA Loan -

Guaranteed by the Dept of Veteran’s Affairs

Chap 6

Question 952

Made by Lending Institutions but Without Government Guarantee or Insurance.

Answer 952

Conventional Loan -

Made by Lending Institutions but Without Government Guarantee or Insurance.

Chap 6

Question 953

W________ Loan -

1. Seller Remains Liable for Existing Loan.
2. Seller Creates New Loan for Buyer for Greater Amount (which included 1st loan) and a Higher Interest Rate.
3. Buyer** Takes - **No Liability for Existing Loan.

Answer 953

Wraparound Loan -

1. Seller Remains Liable for Existing Loan.
2. Seller Creates New Loan for Buyer for Greater Amount (which included 1st loan) and a Higher Interest Rate.
3. Buyer** Takes - **No Liability for Existing Loan.

Chap 6

Question 954

“One Payment” is Larger than Monthly Payments. May be Partially Amortized with Last Payment being a Baloon.

Answer 954

Balloon Payment -

“One Payment” is Larger than Monthly Payments. May be Partially Amortized with Last Payment being a Baloon

Chap 6

Question 955

B____ P____ -

One one-hundreth of 1% - Used to Indicate Increases or Decrease in Interest Rate. .0001

Answer 955

Basis Points -

One one-hundreth of 1% - Used to Indicate Increases or Decrease in Interest Rate. .0001

Chap 6

Question 956

P______ Loan -

Loan includes Items of Personal property. (Refrigerator, Range, etc)

Chap 6

Answer 956

Package Loan -

Loan includes Items of Personal property. (Refrigerator, Range, etc)

Chap 6

Question 957

O___ E__ Loan -

Allows Borrower to Borrow More Funds in Same Loan. (Example: Home Equity Line of Credit - HELOC)

Answer 957

Open End Loan -

Allows Borrower to Borrow More Funds in Same Loan. (Example: Home Equity Line of Credit - HELOC)

Chap 6

Question 958

Loan with Highest Priority

Answer 958

Superior Loan -

Loan with Highest Priority

Chap 6

Question 959

J____ Loan -

Loan which has Lowest Priority to Another Loan. Different Lien position than 1st. Subordinate Loan

Subordinate - Lower In Rank

Answer 959

Junior Loan -

Loan which has Lowest Priority to Another Loan. Different Lien position then 1st. Subordinate Loan

Subordinate - Lower In Rank

Chap 6

Question 960

Sub_________ Clause -

Calls for Existing Loan to be Placed in a Lower Position to Another Loan. Lender Agrees to Waive his Rights in Favor of Another.

Answer 960

Subordination Clause -

Calls for Existing Loan to be Placed in a Lower Position to Another Loan. Lender Agrees to Waive his Rights in Favor of Another.

Chap 6

Question 961

Motivations (Borrower) -

1. Oppurtunity: (Financing) Couldnt become H_____ Any Other Way
2. Leverage: Increase R___ of R____ by Using Borrowed Money
3. Tax Advantage: Interest is T__ Deductable

Answer 961

Motivations (Borrower) -

1. Oppurtunity: (Financing) Couldnt become Homeowner Any Other Way
2. Leverage: Increase Rate of Return by Using Borrowed Money
3. Tax Advantage: Interest is Tax Deductable

Chap 6

Question 962

Expresses the Parties Intention to Invest in Buy or Develop a Property Withtout Creating a Binding Legal Obligations to do so.

Answer 962

Letter of Intent -

Expresses the Parties Intention to Invest in Buy or Develop a Property Withtout Creating a Binding Legal Obligations to do so.

Chap 5

Question 963

What agreements are assignable?

Answer 963

Purchase Agreements and Leases -

Assignable

Chap 5

Question 964

Assignor is the Person that Assigns Transfer of Rights, and the Assignee is the Person that Gets Rights Transfered to. Who has 1st and 2nd Liability in the Transfer of Rights?

Deals with Purchase Contracts and Leases, unless prohibited.

Answer 964

During the Assignment of Contract Rights -

1. Assignor (Assigning Rights) - 1st Liability
2. Assignee (Rights Transfered To) - 2nd Liability

Deals with Purchase Contracts and Leases, unless prohibited.

Chap 5

Question 965

Conv____ of F_____

Agent uses Trust Funds for His/Her Own Use

Answer 965

Conversion of Funds - Own Use

Agent Uses Trust Funds for Own Use

Chap 5

Question 966

Resc_____ of Contract -

1. Mutual Agreement to Cancel,
2. Restoring Parties - Original Positions.
3. Broker must follow Buyer and Seller’s Instructions

Answer 966

Rescission of Contract -

1. Mutual Agreement to Cancel,
2. Restoring Parties - Original Positions.
3. Broker must follow Buyer and Seller’s Instructions

Chap 5

Question 967

Clause that Allows Party to Withdraw. Contingent Upon a Certain Condition/Event. Voids Contract.

Answer 967

Contingency Clause -

Clause that Allows party to Withdraw. Contingent Upon a Certain Condition/Event. Voids Contract.

Chap 5

Question 968

N___ H___ Sales Contacts

Contracts where Earnest Money** is **Not Held in Escrow but in Business Account

Answer 968

New Home Sales Contracts -

Contracts where Earnest Money** is **Not** **Held in Escrow but in Business Account

Chap 5

Question 969

Clause where Contingency is Based On Buyer obtaining Financing. Specifies:

1. Amount,
2. Interest Rate,
3. Terms,
4. Commitment Date

Answer 969

Mortgage Contingency Clause -

Clause Contingency Based On Buyer obtaining Financing. Specifies:

1. Amount,
2. Interest Rate,
3. Terms,
4. Commitment Date

Chap 5

Question 970

Rotted Wood and Cellulose Debris is part of what inspection?

Answer 970

Termite Inspection -

Rotted Wood and Cellulose fall under this type of inspection.

Pest Control is Licensed by: AZ Dept of Agriculture

Chap 5

Question 971

Termite Inspectors are License by whom?

Answer 971

AZ Dept of Agriculture -

Licensing for Termite Inspectors

Chap 5

Question 972

AZ State Board of Te______ Regis_______

Home Inspectors are License by whom?

Answer 972

AZ State Board of Technical Registration -

Licensing for Home Inspectors

Chap 5

Question 973

Pre-printed Words are these. And the Written Word Always Prevails.

Answer 973

Boiler Plate -

Pre-Printed Words are these. And the Hand Written Word Always Prevails.

Chap 5

Question 974

Cl___ of Es____

Typically Occurs when Deeds are Recorded

Answer 974

Close of Escrow -

Typically Occurs when Deed Recorded

Chap 5

Question 975

Person or Entity Other Than the Policy Holder who is Covered by Policy

Answer 975

Additional Insured -

Person or Entity Other Than the Policy Holder who is Covered by Policy

Chap 5

Question 976

If Buyer Defaults - Seller May:

1. Allow W______
2. Retain Earnest Money as L______ Damages
3. Sue for Damages “Sp_____ P_____“ in Court.

…

Answer 976

If Buyer Defaults - Seller May:

1. Allow Withdraw,
2. Retain Earnest Money as Liquidated Damages
3. Sue for Damages “Specific Performance” in Court.

Chap 5

Question 977

If Seller Defaults - Buyer May:

1. Allow W_______,
2. Sue for Damages “Sp_____ P_______” in Court

Answer 977

If Seller Defaults - Buyer May:

1. Allow Withdrawal,
2. Sue for Damages “Specific Performance” in Court

Chap 5

Question 978

Cav___ Em___

Latin Term for Obvious Defects - Buyer is responsible, which means Buyer Beware Of.

Answer 978

Caveat Emptor -

Latin Term for Obvious Defects - Buyer is responsible, which means Buyer Beware Of.e

Chap 5

Question 979

Dispute Resolution “Process” to help Resolve Differences, Conducted by a 3rd Party.

Answer 979

Mediation -

Dispute Resolution “Process” to help Resolve Differences, Conducted by a 3rd Party.

Chap 5

Question 980

Non-Judicial Submission to a Third Party, where Both Parties Agree to Comply with Final Decision by 3rd Party as Binding

Answer 980

Arbitration -

Non-Judicial Submission to a Third Party, where Both Parties Agree to Comply with Final Decision by 3rd Party as Binding

Chap 5

Question 981

In these Type of Offers, Seller Can Reserve the Right to Counter Multiple Offers and Accept Any He Receives from Buyer.

Answer 981

Multiple Offers/Counter Offers -

In these Type of Offers, Seller Can Reserve the Right to Counter Multiple Offers and Accept Any He Receives from Buyer.

Chap 5

Question 982

If a Buyer Makes Multiple Offers on Different Properties, what must he do?

Answer 982

Buyers Multiple Offers:

Buyer must Disclose in Each Offer, that He is Making Multiple Offers.

Chap 5

Question 983

After Written Acceptance of an Offer, what Type of Title does Buyer Have?

Answer 983

Equitable Title -

After Written Acceptance of Offer, Buyer has this Type of Title, and Contract is Exectory.

Chap 5

Question 984

Indemni______ C______

Hold Harmless Clause. One Party Protects Another Party from Damage.

Answer 984

Indemnification Clause -

Hold Harmless Clause. One Party Protects Another Party from Damage.

Chap 5

Question 985

An Invitation to Enter Into a Contract

Answer 985

Offer -

An Invitation to Enter Into a Contract

Chap 5

Question 986

The Buyer who Makes the Offer is called?

Answer 986

Offeror -

Person Who Makes the Offer

Chap 5

Question 987

An Offer Made by the Offeree to the Offeror, which Modifies the Offeror’s Original Offer

Answer 987

Counter Offer -

An Offer Made by the Offeree to the Offeror, which Modifies the Offeror’s Original Offer.

Chap 5

Question 988

Term used a Purchase Contract or Lease to indicate that the Buyer/Lessee may Name Another Person or Entity Who Will Complete the Transaction.

Answer 988

Nominee -

Term used a Purchase Contract or Lease to indicate that the Buyer/Lessee may Name Another Person or Entity Who Will Complete the Transaction.

Chap 5

Question 989

Buyer’s Money Given to Show Good Faith to Seller to Complete the Transaction.

As a check, cash, or note

Answer 989

Earnest Money -

Buyer’s Money Given to Show Good Faith to Seller to Complete the Transaction.

As a check, cash or note

Chap 5

Question 990

Tr_____ Ac_____

Legal Arrangement through which Funds or Assets are Held By a Third Party (Trustee) for Benefit of Another Party (the Beneficiary).

Answer 990

Trust Account -

Legal Arrangement through which Funds or Assets are Held By a Third Party (Trustee) for Benefit of Another Party (the Beneficiary).

Chap 5

Question 991

Legal Arrangement in which a Third Party Temporarily holds Large Sums Money or Property Until Particular Conditions has been met (e.g., Purchase Agreement Fullfilment).

Answer 991

Escrow -

Legal Arrangement in which a Third Party Temporarily holds Large Sums Money or Property Until Particular Conditions has been met (e.g., Purchase Agreement Fullfilment).

Chap 5

Question 992

Disinterested Nuetral Third Party Hired to Close the Transaction

Answer 992

Escrow Agent -

Disinterested Nuetral Third Party Hired to Close the Transaction.

Chap 5

Question 993

Mixing of Client’s Funds with Broker’s Business/Personal Accounts

Answer 993

Commingling -

Mixing of Client’s Funds with Broker’s Business/Personal Accounts.

Chap 5

Question 994

Simultaneous Escrows on Same Property, where Buyer has Sold Property Prior to Escrow Closing, Uses Some of Proceeds From that Sale to Fund Another Purchase.

Answer 994

Double Escrow -

Simultaneous Escrows on Same Property, where Buyer has Sold Property Prior to Escrow Closing, Uses Some of Proceeds From that Sale to Fund Another Purchase.

Chap 5

Question 995

Specifies What Items will be Split and The Date of Such Spilts (usually Close of Escrow).

Answer 995

Prorations -

Specifies What Items will be Split and The Date of Such Spilts (usually Close of Escrow).

Chap 5

Question 996

L___ P____

Person Designated in Insurance Policy To Be Paid, If Property is Damaged or Destroyed.

(ex: Morgage Lender)

Answer 996

Loss Payee -

Person Designated in Insurance Policy To Be Paid, If Property is Damaged or Destroyed.

(ex: Morgage Lender)

Chap 5

Question 997

Cla___ H_____ and Cl___ Report

A Record of Insurance Losses on a Property or Specific Consumer is called?

(Answer has 2 names)

Answer 997

Claims History / Clue Report -

A Record of Losses On a Property or Specific Consumer.

Chap 5

Question 998

Service Contract Covering the Repairs or Replacement of Appliances/Systems, Such as Furnaces, Air Conditioners, Plumbing, Roof, etc.

Answer 998

Home Warranty -

Service Contract Covering the Repairs or Replacement of Appliances/Systems, Such as Furnaces, Air Conditioners, Plumbing, Roof, etc.

Chap 5

Question 999

Amount Pre-Determined By the Parties as Total Amount of Compensation an Injured Party Should Receive - For Breach of Contract.

Answer 999

Liquidated Damages -

Amount Pre-Determined By the Parties as Total Amount of Compensation an Injured Party Should Receive - For Breach of Contract.

Chap 5

Question 1000

S_______ P________

Court Order to Enforce Terms of a Contract is Called?

Answer 1000

Specific Performance -

Court Order to Enforce Terms of a Contract

Chap 5

Question 1001

Making Over-Statments of Personal Opinion, is not considered misrepresentation.

Answer 1001

Puffing -

Making Over-Statments of Personal Opinion, is not considered misrepresentation.

Chap 5

Question 1002

False Statements of Material Facts Which a Party Relies on to His Damage.

Answer 1002

Misrepresentation -

False Statements of Material Facts Which a Party Relies on to His Damage.

Chap 5

Question 1003

Occurs When Person Intentionally Misrepresents a Fact.

Answer 1003

Fraudulent Misrepresentation -

Occurs When Person Intentionally Misrepresents a Fact.

Chap 5

Question 1004

Id_____ Th____

Using Another Person’s Personal Info for Illegal Purposes.

Real Estate Agents must Safeguard Clients’ and Consumers’ Information.

Answer 1004

Identity Theft -

Using Another Person’s Personal Info for Illegal Purposes.

Real Estate Agents must Safeguard Clients’ and Consumers’ Information.

Chap 5

Question 1005

Occurs When Hacker Intercepts Email and Sends Fraudulent Wiring Instructions Directing Client’s Money to Hacker’s Account

Answer 1005

Wire Fraud -

Occurs When Hacker Intercepts Email and Sends Fraudulent Wiring Instructions Directing Client’s Money to Hacker’s Account

Chap 5

Question 1006

M_____ C_______ C_____

Clause where Contingency is Based On Buyer Obtaining Financing**. **Specifies:

1. Amount,
2. Interest Rate
3. Terms,
4. Commitment Date

Answer 1006

Mortgage Contingency Clause -

Clause Contingency Based On** Buyer Obtaining **Financing.Specifies:

1. Amount,
2. Interest Rate,
3. Terms,
4. Commitment Date

Chap 5

Question 1007

The Amount of the Earnest Money is determined by the:

1. Buyer
2. Seller
3. Buyer and Seller
4. Broker

Answer 1007

The Amount of the Earnest Money is determined by the:

1. Buyer
2. Seller
3. Buyer and Seller
4. Broker

Chap 5

Question 1008

While making a listing presentation to a seller, a licensee is also considering purchasing the property. In this situation does the agent neeed to disclose their intentions to the seller and why?

1. No, beause there is no need to discuss personal issues.
2. No, because the licensee is not yet the seller’s agent
3. Yes, because it may have an impact on the owner’s decision to list with the agent
4. Yes, because it is required by the Statute of Frauds.

Answer 1008

While making a listing presentation to a seller, a licensee is also considering purchasing the property. In this situation does the agent neeed to disclose their intentions to the seller and why?

1. No, beause there is no need to discuss personal issues.
2. No, because the licensee is not yet the seller’s agent
3. Yes, because it may have an impact on the owner’s decision to list with the agent
4. Yes, because it is required by the Statute of Frauds.

Chap 5

Question 1009

Buyer Makes an offer to purchase a home listed by a broker, but the seller is not available until Wednesday. On Tuesday Buyer wishes to withdraw the offer. Which of the followig statements iis correct?

1. Buyer cannot do this as he has signed contract
2. Buyer must forfeit the Earnest Money
3. The Broker must Return the Deposit and Offer
4. The Broker should tell Buyer the Offer is Accepted.

Answer 1009

Buyer Makes an offer to purchase a home listed by a broker, but the seller is not available until Wednesday. On Tuesday Buyer wishes to withdraw the offer. Which of the followig statements iis correct?

1. Buyer cannot do this as he has signed contract
2. Buyer must forfeit the Earnest Money
3. The Broker must Return the Deposit and Offer
4. The Broker should tell Buyer the Offer is Accepted.

Chap 5

Question 1010

An Escrow once established, is subject to Recission by:

1. The Broker
2. Only the Seller
3. Onlly the Buyer
4. An Agreement between Buyer and Seller

Answer 1010

An Escrow once established, is subject to Recission by:

1. The Broker
2. Only the Seller
3. Onlly the Buyer
4. An Agreement between Buyer and Seller

Chap 5

Question 1011

A Property was listed for $45,000. Broker brings a Buyer who offers $44,000. The seller then counters with $44,500 but the counter offer is NOT accepted by the Buyer. Later the Seller decides to accept the $44,000 offer. Which of the following statements is correct?

1. Broker is Entitled to Commission
2. There is a Contract in Effect for $44,500
3. There is a Contract in Effect for $44,000
4. There is No Contract In Effect

Answer 1011

A Property was listed for $45,000. Broker brings a Buyer who offers $44,000. The seller then counters with $44,500 but the counter offer is NOT accepted by the Buyer. Later the Seller decides to accept the $44,000 offer. Which of the following statements is correct?

1. Broker is Entitled to Commission
2. There is a Contract in Effect for $44,500
3. There is a Contract in Effect for $44,000
4. There is No Contract In Effect

Note: In Real LIfe the Original Offer for $44,000 could still be accepted (Answer C)

Chap 5

Question 1012

An Offer to Purchase is An:

1. Unilateral Contract
2. Expression of Intent to Enter a Contract
3. Bilateral Contract to Purchase
4. Binding On the Offeror

Answer 1012

An Offer to Purchase is An:

1. Unilateral Contract
2. Expression of Intent to Enter a Contract
3. Bilateral Contract to Purchase
4. Binding On the Offeror

Chap 5

Question 1013

Earnest Money is normally held by:

1. By Listing Agent’s Broker
2. By Buyer’s Agent’s Broker
3. Only in Broker’s Trust Account
4. By The Seller

Answer 1013

Earnest Money is normally held by:

1. By Listing Agent’s Broker
2. By Buyer’s Agent’s Broker
3. Only in Broker’s Trust Account
4. By The Seller

Chap 5

Note: It actually goes to Escrow(Title)

Question 1014

When a Buyer’s Interest in a Purchase Contract is Assigned to a Third Party, the Seller’s Permission:

1. Is Always Required
2. Is Never Required
3. Must be Obtained At time of Listing the Property
4. May be Required

Answer 1014

When a Buyer’s Interest in a Purchase Contract is Assigned to a Third Party, the Seller’s Permission:

1. Is Always Required
2. Is Never Required
3. Must be Obtained At time of Listing the Property
4. May be Required

Chap 5

Note: Contract May Prohibit

Question 1015

A_____

Represents the Principal and Must Follow All the Principals Instructions Unless Violates the Law?

Answer 1015

Agent -

Represents the Principal and Must Follow All the Principals Instructions - Unless Violates the Law

Chap 4

Question 1016

Who Employs the Salesperson, When Broker is the Agent of The Client

Answer 1016

Principal -

Principal Employs Salesperson, When Broker is the Agent of Client

Chap 4

Question 1017

Persons represented by Outside Brokerage Firms.

Answer 1017

Customer -

Represented by Outside Brokerage Firms

Chap 4

Question 1018

If Both Parties are Represented by Your Brokerage Firm. These Parties Are Called?

Answer 1018

Clients -

Both Represented by Your Brokerage Firm

Chap 4

Question 1019

Fiduciary Duties to client, or C.A.R.L.O.D

1. Conf________,
2. Acc______,
3. R________ Care,
4. Loy___,
5. Ob_______,
6. Dis_______

Answer 1019

C.A.R.L.O.D - Fiduciary Duties to client

1. Confidentiality,
2. Accounting,
3. Reasonable Care,
4. Loyalty,
5. Obedience,
6. Disclosure

Chap 4

Question 1020

Duties to Customers - 5 (Fiduciary Duties):

Hint: Fairness Honestly Gives Good Faith to Customers Deserved

1. Fai______,
2. Hon______,
3. G____ Faith,
4. Compen_____,
5. Dis_____

Answer 1020

Duties to Customers - 5 (Fiduciary Duties):

1. Fairness,
2. Honesty,
3. Good Faith,
4. Competency,
5. Disclosure

Hint: Fairness Honestly Gives Good Faith to Customers Deserved

Chap 4

Question 1021

Agents Not Held Liable For Non-Disclosure Of:

1. Nat_____ Death,
2. Su____,
3. Hom____,
4. Felo_____,
5. S___ Offender Area
6. HIV or AIDS (Handicap Fair Housing Admin 1988)

Answer 1021

Agents Not Held Liable For Non-Disclosure Of:

1. Natural death,
2. Suicide,
3. Homicide,
4. Felony,
5. Sex Offender Area
6. HIV or AIDS (handicap Fair Housing Admin 1988)

Chap 4

Question 1022

Client’s Duties to Agent:

1. Comp_________,
2. Perf_______,
3. Indem________,

Answer 1022

Clients Duties to Agent:

Compensation, Performance, Indemnification

Chap 4

Question 1023

L_____ A________

What Employment Contract Must Be in Writing, In Order to Collect a Fee in Court, and toComply with Arizona Statutes?

Answer 1023

Written Listing Agreement -

Must be in Writing In Order to Collect a Fee in Court and Comply with Arizona Statutes.

Chap 4

Question 1024

Ex______ Ag______

Type of Agency Created by“Specific Authorization” From Principal, “Verbally or Written.”

Answer 1024

Expressed Agency -

“Specific Authorization,” from Principal in “Writing or Verbal.”

Chap 4

Question 1025

Im______ A_____

Type of Agency Created By Actions - not In writing

Answer 1025

Implied Agency -

Agency Created By Actions - not in writing.

Chap 4

Question 1026

S__-______

What is the Salesperson To the Client called?

If the Broker Is the Agent of the Client. And the Salesperson Is the Agent of the Broker.

Answer 1026

Sub-Agent -

The Saleperson Is the Sub-Agent to the Client.

If the Broker Is the Agent of the Client. And the Salesperson Is the Agent of the Broker.

Chap 4

Question 1027

Cons____ to Limited Rep_______

When a Dual Agency Exist, Written Permission of Both Parties (Informed Consent) Is Necessary. This is called?

Answer 1027

Consent to Limited Representation -

When a Dual Agency Exist, Written Permission of Both Parties (Informed Consent) Is Necessary.

Chap 4

Question 1028

(READE) R___ Es____ Ag____ Dis_____ and El____ Form -

At First Substantive Discussion With Client, AZ Agents Should Use This Form.

Answer 1028

(READE) Real Estate Agency Disclosure and Election form -

At First Substantive Discussion With Client, AZ Agents Should Use This Form.

Chap 4

Question 1029

Unrep_____ Seller Com_______ Ag_______ -

In working with FISBO’s and Making an Offer as Buyer’s Agent, when Seller is Unrepresented.

What Form Maintains Single Agency and Gives Compensation to Buyer’s Agent?

Answer 1029

Unrepresented Seller Compensation Agreement -

In FISBO Making an Offer as Buyer’s Agent.

This Form Maintains Single Agency and Gives Compensation to Buyer’s Agent.

Chap 4

Question 1030

Person Authorized to Represent Another thru a Power of Attorney

Answer 1030

Attorney in Fact -

Person Authorized to Represent Another thru a Power of Attorney

Chap 4

Question 1031

Sp_____ (Spec___) Agency -

Limited Authority under Listing and Buyer Broker Agreements

Answer 1031

Specific (Special) Agency -

Limited Authority under Listing and Buyer Broker Agreements

Chap 4

Question 1032

G_____ Agency -

1. Agency Used for “Various Duties” - Personal and Business
2. “Property Management Listings,”
3. Agent Holds This Type of Agency to Broker.

Answer 1032

General Agency -

1. Agency Used for “Various Duties“ - Personal and Business
2. “Property Management Listings,”
3. Agent Holds This Type of Agency to Broker.

Chap 4

Question 1033

Un_____ Agency -

Agency has Authority Over All Matters of Principal.

Answer 1033

Universal Agency -

Authority Over All Matters of Principal

Chap 4

Question 1034

Im____ Notice -

Communicated To Agent, Automatic Notice to Principal.

Answer 1034

Imputed Notice -

Communicated To Agent, Automatic Notice to Principal.

Chap 4

Question 1035

Vic_____ Liab____ (Respondeat Superior) -

Concept that Principal is Responsible for Acts of Agent

Respondeat means “Let the Master Answer!”

Answer 1035

Vicarious Liability (Respondeat Superior) -

Concept that Principal is Responsible for Acts of Agent

Respondeat means “Let the Master Answer!”

Chap 4

Question 1036

G______ Liab_____ Ins______

Insures “Broker/Agent” Against Claims - When a 3rd Party Is Injured

Answer 1036

General Liability Insurance -

Insures “Broker/Agent” Against Claims - When a 3rd Party Is Injured

Chap 4

Question 1037

Extra Liablity Insurance for Major Claims and Lawsuits

Answer 1037

Umbrella Insurance -

Extra Liablity Insurance for Major Claims and Lawsuits

Chap 4

Question 1038

What “Does Not” Terminate Purchase Contract or Lease!

Answer 1038

Death -

Does Not Terminate Purchase Contract or Lease

Chap 4

Question 1039

Reasonable Skill and Care 5 (Fiduciary Duty)

1. Con____ Prep,
2. Mark____,
3. Adv____ on Price,
4. Meeting Dea_____,
5. Disclosure of Mat____ Facts

Answer 1039

Reasonable Skill and Care 5 (Fiduciary Duty)

1. Contract Prep,
2. Marketing,
3. Advising on Price,
4. Meeting Deadlines,
5. Disclosure of Material Facts

Chap 4

Question 1040

Disclosure (Fiduciary Duties) - Agents must make Full Disclosure:

1. Conf____ of Interest,
2. Other Off____ on Property
3. Ag____ Relationship Status
4. Mat____ Defects
5. Info Mat____ to Client Int_____

Answer 1040

Disclosure (Fiduciary Duties) - Agents must make Full Disclosure:

1. Conflicts of Interest,
2. Other Offers on Property
3. Agency Relationship Status
4. Material Defects
5. Info Material to Client Interest

Chap 4

Question 1041

7 Ways to Terminate Agency:

1. Perf______,
2. Mutual Agr_____,
3. Exp_____,
4. Revo_____,
5. Des_____ of Property,
6. Ba______ (BK),
7. Death of Prin_____ or Agent

Answer 1041

7 Ways to Terminate Agency:

1. Performance,
2. Mutual Agreement,
3. Expiration,
4. Revocation,
5. Destruction of Property,
6. Bankruptcy (BK),
7. Death of Principal or Agent

Chap 4

Question 1042

Ag___ -

Relationship When Hired To Act on Behalf of Principal

Answer 1042

Agency -

Relationship When Hired To Act on Behalf of Principal

Chap 4

Question 1043

New Homes Agency -

Agents Represent S____/Bu_____

Answer 1043

New Homes Agency -

Agents Represent Seller/Builder

Chap 4

Question 1044

This Agreement is Binding on Heirs of Buyer and Seller, If Either Dies

Answer 1044

Purchase Agreement -

Binding on Heirs of Buyer and Seller if Dies.

Chap 4

Question 1045

Who is the Agent of the Client?

Answer 1045

Broker -

Is the Agent of the Client

Chap 4

Question 1046

When the Agent Only Represents One Party (Buyer or Seller)

Answer 1046

SIngle Agency -

When the Agent Only Represents One Party (Buyer or Seller)

Chap 4

Question 1047

A Document through which the Client Authorizes the Agent to Act on His/Her Behalf.

Answer 1047

Power of Attorney -

A Document through which the Client Authorizes the Agent to Act on His/Her Behalf.

Chap 4

Question 1048

Insures Licensees - Against** **Misrepresentations of Material Facts the Licensee Failed to Disclose is called?

Answer 1048

Errors & Omissions Insurance -

Insures Licensees - Against** **Misrepresentations of Material Facts the Licensee Failed to Disclose

Chap 4

Question 1049

1. One Who Contracts His/Her Services to the Broker and Pays Own (Taxes and Social Secuirty)
2. IRS Requires: Written Independant Contractor Agmt
3. Broker Monitor Overall Performance Only

Answer 1049

Independent Contractor -

1. One Who Contracts His/Her Services to the Broker and Pays Own (Taxes and Social Security)
2. IRS Requires: Written Independant Contractor Agmt
3. Broker Monitors Overall Performance Only

Chap 4

Question 1050

What Type of Fiduciary Duty?

The Agent Must Place the Client’s Interest Above the Agent’s Interest

Answer 1050

Loyalty (Fiduciary Duties) -

The Agent Must Place the Client’s Interest Above the Agent’s Interest

Chap 4

Question 1051

What type of Fiduciary Duty?

An Agent Must Follow the Client’s Instructions Unless They Violate The Law.

Violations:

1. Seller Asks to Violate Fair Housing Laws
2. Seller Asks Not To Disclose Defects In Property.

Answer 1051

Obedience (Fiduciary Duty) -

An Agent Must Follow the Client’s Instructions Unless They Violate The Law.

Violations:

1. Seller Asks to Violate Fair Housing Laws
2. Seller Asks Not To Disclose Defects In Property.

Chap 4

Question 1052

What type of Fiduciary Duty?

The Agent Must Account To the Parties For All Monies the Agent Accepts In the Transaction.

Answer 1052

Accounting (Fiduciary Duties) -

The Agent Must Account To the Parties For All Monies the Agent Accepts In the Transaction.

Chap 4

Question 1053

What type of Fiduciary Duty?

The Agent Must Keep Certain Information Confidential.

Examples

1. Price Seller will Accept
2. Price Buyer will Pay
3. Duty Remains in Effect Indefinately After Expiration.

Answer 1053

Confidentiality (Fiduciary Duties) -

The Agent Must Keep Certain Information Confidential. What type of Fiduciary Duties

Examples

1. Price Seller will Accept
2. Price Buyer will Pay
3. Confidentiality Remains in Effect Indefinately After Expiration.

Chap 4

Question 1054

Ag_____

Created through Authorization of Principal, may or may not be in writing

Answer 1054

Agencies -

Created through Authorization of Principal, may or may not be in writing

Chap 4

Question 1055

The Sherman Anti-Trust Act regulates:

1. Sale of Real Estate Across State Lines
2. Contracts that Fall Under Statute of Frauds
3. Brokerage Firms Agreeing to Change Their Fees From Commission Basis to Each Firm Charging Same Flat Rate
4. Disclosure of Finance Charges in a Loan

Answer 1055

The Sherman Anti-Trust Act regulates:

1. Sale of Real Estate Across State Lines
2. Contracts that Fall Under Statute of Frauds
3. Brokerage Firms Agreeing to Change Their Fees From Commission Basis to Each Firm Charging Same Flat Rate
4. Disclosure of Finance Charges in a Loan

Chap 4

Question 1056

The Agent shows Several House to a Buyer and tells Him that One House is the Best Investment. What type of Agency may the Saleperson be Creating?

1. Expressed Agency
2. Implied Agency
3. General Agency
4. Specific Agency

Answer 1056

The Agent shows Several House to a Buyer and tells Him that One House is the Best Investment. What type of Agency may the Saleperson be Creating?

1. Expressed Agency
2. Implied Agency
3. General Agency
4. Specific Agency

Chap 4

Question 1057

A Special Agent Can Do All of the Following EXCEPT:

1. Represent the Principal in All Real Estate Transactions
2. Represent the Principal in a Specific Real Estate Transaction
3. Sell Land
4. Find a Ready Will and Able Buyer

Answer 1057

A Special Agent Can Do All of the Following EXCEPT:

1. Represent the Principal in All Real Estate Transactions
2. Represent the Principal in a Specific Real Estate Transaction
3. Sell Land
4. Find a Ready Will and Able Buyer

Chap 4

Question 1058

A Property is Listed for Sale and Before Expiration the Principal is declared Bankrupt

1. Terminated
2. Not Affected
3. Subjected to Court Review
4. Transferred to the Trustee

Answer 1058

A Property is Listed for Sale and Before Expiration the Principal is declared Bankrupt

1. Terminated
2. Not Affected
3. Subjected to Court Review
4. Transferred to the Trustee

Chap 4

Question 1059

All of the Following Situations would Legally Terminate a Listing EXCEPT:

1. Death of the Listing Salesperson
2. Revocation By The Seller
3. Revocation By The Broker
4. Insanity of The Seller

Answer 1059

All of the Following Situations would Legally Terminate a Listing EXCEPT:

1. Death of the Listing Salesperson
2. Revocation By The Seller
3. Revocation By The Broker
4. Insanity of The Seller

Chap 4

Question 1060

If One Agent is Exclusively Representing the Seller, and the Buyer’s Broker brings the Buyer and Seller together it would be a:

1. Single Agency
2. Dual Agency
3. Universal Agency
4. Ratified Agency

Answer 1060

If One Agent is Exclusively Representing the Seller, and the Buyer’s Broker brings the Buyer and Seller together it would be a:

1. Single Agency
2. Dual Agency
3. Universal Agency
4. Ratified Agency

Chap 4

Question 1061

The Concept that Informaiton given to Client’s Agent has been given to Client is know as:

1. Caveat Emptor
2. Respondent Superior
3. Vicarious Liability
4. Imputed Notice

Answer 1061

The Concept that Informaiton given to Client’s Agent has been given to Client is know as:

1. Caveat Emptor
2. Respondent Superior
3. Vicarious Liability
4. Imputed Notice

Chap 4

Question 1062

Com______ P_____

Legally Capable Individuals Who Can Enter into a Binding Contract are called?

Answer 1062

Competent Parties -

Legally Capable Individuals Who Can Enter into a Binding Contract

Chap 3

Question 1063

Emp______ Agr_______

Used to Hire a Broker to Provide Services Aiding the Purchase/Sale or Real Property for Compensation.

Examples: Listing Agreement or Buyer Broker Agreement

Chap 3

Answer 1063

Employment Agreement -

Used to Hire a Broker to Provide Services Aiding the Purchase/Sale or Real Property for Compensation.

Examples: Listing Agreement or Buyer Broker Agreement

Chap 3

Question 1064

C______ (Must Be In Writing Per Statute of Frauds)

Examples

1. Agreements Hiring Broker to Sell or Purchase Property.
2. Agreements to Transfer or Sell Interest therein (Deeds, Purchase Contract, Mortgages, Trust Deeds and Options).
3. Lease for More than 1 Year.

Answer 1064

Contracts (Must be in Writing Per Statute of Frauds)

Examples

1. Agreement Hiring Broker to Sell or Purchase Property.
2. Agreements to Transfer or Sell Interest therein (Deeds, Purchase Contract, Mortgages, Trust Deeds and Options).
3. Lease for More than 1 Year.

Question 1065

Essential Elements of a Contract

1. Comp_____ Parties,
2. Val___ Consideration,
3. Of___ and Acceptance,
4. Leg___ Object,
5. In Writ___ (Statute of Frauds)
6. Property Des_____

Answer 1065

Essential Elements of Contract

1. Competent Parties,
2. Valid Consideration,
3. Offer and Acceptance,
4. Legal Object,
5. In Writing (Statute of Frauds)
6. Property Description

Chap 3

Question 1066

Exp_____ Contract -

Terms Specifically Stated Verbally or In Writing

Answer 1066

Expressed Contract -

Terms Specifically Stated Verbally or In Writing

Chap 3

Question 1067

Imp_____ Contract -

Created by Actions or Conduct of Parties

Answer 1067

Implied Contract -

Created by Actions or Conduct of Parties

Chap 3

Question 1068

1. This Agreement Gives Opportunity to Lease or Buy Within a “Specific Time” for a “Specific Price“ and Terms.”
2. It is Only Binding on the Optionor (Owner).
3. If Optionee Wants to Extend, There is Additional Consideration Required.

Answer 1068

Option -

1. This Agreement Gives Opportunity to Lease or Buy Within a “Specific Time” for a “Specific Price” and Terms.”
2. It is Only Binding on the Optionor (Owner).
3. If Optionee Wants to Extend, There is Additional Consideration Required.

Chap 3

Question 1069

If Seller Decides to Lease or Sell, Holder Can Match the Offer Given to Owner.

Answer 1069

Right of First Refusal -

If Seller Decides to Lease or Sell, Holder Can Match the Offer Given to Owner.

Chap 3

Question 1070

Contain All Essentials of Contract

Answer 1070

Valid Contract -

All Essentials of Contract

Chap 3

Question 1071

Not Enforceable by Law, No Contract

Answer 1071

Void or Invalid Contract -

Not Enforceable by Law, No Contract

Chap 3

Question 1072

Can be Overturned by One of the Parties.

Answer 1072

Voidable Contract -

Overturned by One of the Parties

Chap 3

Question 1073

Not Shared with Others Nor Put on MLS

Answer 1073

Pocket Listing -

Not Shared with Others Nor Put on MLS

Chap 3

Question 1074

1. No Cooperation Offered to Other Companies, but All Offers Presented.
2. Buyer’s Agent May Need Separate Compensation Agreement

Answer 1074

Exclusive Listing -

1. No Cooperation Offered to Other Companies, but All Offers Presented.
2. Buyer’s Agent May Need Separate Compensation Agreement

Chap 3

Question 1075

Buyer uses to Hire Broker to Locate Properties.

Answer 1075

Buyer Broker Agreement -

Buyer uses to Hire Broker to Locate Properties.

Chap 3

Question 1076

Com______ Lien

Lein in AZ, for Unpaid Moneys, may be placed on Seller’s Property, Commercial Leases Only

Answer 1076

Commissions Lien -

Lein in AZ, for Unpaid Moneys, may be placed on Seller’s Property, Commercial Leases Only

Chap 3

Question 1077

Sh______ An______ A___

1. Prohibits Anti-Competitive Practices.
2. No Fixed Commissions or Prices.
3. Commissions are Negotiable.
4. No Geographical Non-Compete Areas.
5. No Boycotting Other Company Listings

Answer 1077

Sherman Anti-Trust Act -

1. Prohibits Anti-Competitive Practices.
2. No Fixed Commissions or Prices.
3. Commissions are Negotiable.
4. No Geographical Non-Compete Areas.
5. No Boycotting Other Company Listings

Chap 3

Question 1078

Cov______ Not to C_______

Promise by Seller of Business, “Not to Compete” with Buyer of Business in Agreed Area for a “Specific Time.”

Answer 1078

Covenant Not to Compete -

Promise by Seller of Business, “Not to Compete” with Buyer of Business in Agreed Area for a “Specific Time.”

Chap 3

Question 1079

Illu_____ Contract

Contract Worded Loosely

Answer 1079

Illusory Contract -

Contract Worded Loosely

Chap 3

Question 1080

Regulation that says Contracts Must Be In Writing to be Enforceable and Signed by All Parties / Authorized Agents

Answer 1080

Statute of Frauds -

Regulation that says Contracts Must Be In Writing to be Enforceable and Signed by All Parties / Authorized Agents

Chap 3

Question 1081

Agreements that Must Be In Writng - (As per Statute of Frauds) -

1. Emp______ Agreement with Broker
2. Lis_____ Agreement
3. B_____ Broker Agreement
4. Pur_____ Agreement
5. De___
6. Tr____ Deeds & Mortgages
7. L____ - More than 1 year

Answer 1081

Agreements that Must Be In Writng - (As per Statute of Frauds) -

1. Employment Agreement with Broker
2. Listing Agreement
3. Buyer Broker Agreement
4. Purchase Agreement
5. Deeds
6. Trust Deeds & Mortgages
7. Lease - More than 1 year

Chap 3

Question 1082

Money or Valuables such as Labor, Love or Affection (Gift)

Answer 1082

Valid Consideration -

Money or Valuables such as Labor, Love or Affection (Gift)

Chap 3

Question 1083

Of____ and Ac_______ -

All Parties Must Agree to All Terms -A Meeting of The Minds

Answer 1083

Offer and Acceptance -

All Parties Must Agree to All Terms. A Meeting of The Minds

Chap 3

Question 1084

L_____ O______

The Objective of the Agreement Must be Lawful.

Answer 1084

Legal Object (Legal Purpose) -

The Objective of the Agreement Must be Lawful.

Chap 3

Question 1085

All the Terms Have Been Performed by All Parties

Answer 1085

Executed Cotract -

All the Terms Have Been Performed by All Parties

Chap 3

Question 1086

All Terms Have Not Been Fully Performed. Purchase Contract is a Executory Contract.

Answer 1086

Executory Contract -

All Terms Have Not Been Fully Performed. Purchase Contract is a Executory Contract.

Chap 3

Question 1087

A Promise is Made By (One Party) In Return For the Promise of Another

Examples

1. Listings
2. Purchase Contracts
3. Leases

Answer 1087

Bilateral Contract -

A Promise is Made By (One Party) In Return For the Promise of Another

Examples

1. Listings
2. Purchase Contracts
3. Leases

Chap 3

Question 1088

One Party Makes Promise to Induce Other Party Into Action

Examples:

1. Option: Right to Buy in Specific Period/Time/Price
2. Right of First Refusal: “If Offered for Sale,” 1st Right

Answer 1088

Unilateral Contract -

One Party Makes Promise to Induce Other Party Into Action

Examples:

1. Option: Right to Buy in Specific Period/Time/Price
2. Right of First Refusal: “If Offered for Sale,” 1st Right

Chap 3

Question 1089

R______ E____ Emp_____ Contract

Written Agreement Authorizing / Employing an Agent and Broker to Purchase or Sell Property For Compensation or Commission.

Must Contain:

1. Inception Date
2. Expiration Date
3. Signed by All Parties
4. Cannot not be Re-Assigned to 3rd Party

Answer 1089

Real Estate Employment Contract -

Written Agreement Authorizing / Employing an Agent and Broker to Purchase or Sell Property For Compensation or Commission.

Must Contain:

1. Inception Date
2. Expiration Date
3. Signed by All Parties
4. Cannot not be Re-Assigned to 3rd Party

Chap 3

Question 1090

O____ Listing -

Listing Broker will be Paid a Commission only if He/She Finds a Buyer for the Property

Note:

1. Listing Broker Not Paid If Another Broker Finds Buyer or If Seller Sells Property.

Answer 1090

Open Listing -

Listing Broker will be Paid a Commission only if He/She Finds a Buyer for the Property

Note:

1. Listing Broker Not Paid If Another Broker Finds Buyer or If Seller Sells Property.

Chap 3

Question 1091

Ex______ A_____ L_______ -

The Listing Broker will be Paid a Commission if He/She Finds a Buyer, or If Another Broker Finds a Buyer. What type of listing?

*** Seller Reserves the Right to Sell Property to Buyer Witout Paying Commission.

Answer 1091

Exclusive Agency Listing -

The Listing Broker will be Paid a Commission if He/She Finds a Buyer, or If Another Broker Finds a Buyer. What type of listing?

*** Seller Reserves the Right to Sell Property to Buyer Witout Paying Commission.

Chap 3

Question 1092

Listing Broker will be Paid No Matter Who Sells Property. What type of listing?

Notes:

1. Offers “Most” Protection for the broker
2. Contains Provision Entitles Broker Commssion (Within Specific Time Frame After Expiration of Listing) for Buyers Procured By Broker Previously.

1.

Answer 1092

Exclusive Right to Sell -

Listing Broker will be Paid No Matter Who Sells Property. What type of listing?

Notes:

1. Offers “Most” Protection for the broker
2. Contains Provision Entitles Broker Commssion (Within Specific Time Frame After Expiration of Listing) for Buyers Procured By Broker Previously.

Chap 3

Question 1093

This is what type of listing?

Seller Agrees To Take Specific Amount as Net Proceeds and Broker May Retain Amount Above Net Proceeds Seller Agreed To.

Answer 1093

Net Listings -

Seller Agrees To Take Specific Amount as Net Proceeds and Broker May Retain Amount Above Net Proceeds Seller Agreed To.

Chap 3

Question 1094

Refers to a Property that is Not Yet Availlable For Sale.

Could Violate Agent’s Duty to Seller by:

1. Circumventing MLS rules
2. Marketing to Select Groups
3. Requiring Buyers to Use Listing Broker for Transcation. (Exclusve to One Company)

1.

Answer 1094

Coming Soon Listing -

Refers to a Property that is Not Yet Availlable For Sale.

Could Violate Agent’s Duty to Seller by:

1. Circumventing MLS rules
2. Marketing to Select Groups
3. Requiring Buyers to Use Listing Broker for Transcation. (Exclusve to One Company)

Chap 3

Question 1095

What type of Listing Has the Following Boundaries:

1. Cooperation and Compensation is Not Offered To Other Companies
2. However, All Offers Must be Presented
3. Buyer’s Agent May Need Separate Compensation Agreement to Assure Payment.

Answer 1095

Exclusive Listing -

Following Boundaries of Listing:

1. Cooperation and Compensation is Not Offered To Other Companies
2. However, All Offers Must be Presented
3. Buyer’s Agent May Need Separate Compensation Agreement to Assure Payment.
4. .

Chap 3

Question 1096

If an Adult and a Minor enter Into a Contract, the Contract

1. Void on Its Face
2. Voidable By the Minor
3. Voidable By Either Party
4. Binding on Both Parties

Answer 1096

If an Adult and a Minor enter Into a Contract, the Contract

1. Void on Its Face
2. Voidable By the Minor
3. Voidable By Either Party
4. Binding on Both Parties

Chap 3

Question 1097

When a Contract is Based on a Misrepresentation of Material Fact, the Contract is:

1. Illegal
2. Voidable by Both Parties
3. Voidable by the Party Damaged by Misrepresentation
4. Unenforceable on Either Party

Answer 1097

When a Contract is Based on a Misrepresentation of Material Fact, the Contract is:

1. Illegal
2. Voidable by Both Parties
3. Voidable by the Party Damaged by Misrepresentation
4. Unenforceable on Either Party

Chap 3

Question 1098

A Contract Where One Promise is NOT Exchange for Another Promise is a:

1. Unilateral Contract
2. Bilateral Contract
3. Expressed Contract
4. Implied Contract

Answer 1098

A Contract Where One Promise is NOT Exchange for Another Promise is a:

1. Unilateral Contract
2. Bilateral Contract
3. Expressed Contract
4. Implied Contract

Chap 3

Question 1099

Which of the Following Items is Required to Be in a Listing

1. Street Address
2. Rate of Commission
3. Termination Date
4. Mortgage Debt Amount

Answer 1099

Which of the Following Items is Required to Be in a Listing

1. Street Address
2. Rate of Commission
3. Termination Date
4. Mortgage Debt Amount

Chap 3

Question 1100

If Agent A takes an Open Listing for 6 Months on March 1st and Agent b take an Exclusive Right to Sell Listing on March 15th for 3 Months, but Agent A finds Buyer on April 15th, what may occur?

1. Only Agent A is owed a Commission
2. Only Agent B is owed a Commission
3. The Seller May owe Both Agents a Commission
4. No Commission is owed to Either Agent

Answer 1100

If Agent A takes an Open Listing for 6 Months on March 1st and Agent b take an Exclusive Right to Sell Listing on March 15th for 3 Months, but Agent A finds Buyer on April 15th, what may occur?

1. Only Agent A is owed a Commission
2. Only Agent B is owed a Commission
3. The Seller May owe Both Agents a Commission
4. No Commission is owed to Either Agent

Chap 3

Question 1101

An Area Separating Two Incompatbly Zoned Areas From Each Other.?

Chap 2

Answer 1101

Buffer Zone -

An Area Separating Two Incompatbly Zoned Areas From Each Other.

Chap 2

Question 1102

The Minimum Distance From the Street and/or Lot Lines Beyond which a Structure can be Built.

Answer 1102

Setback -

The Minimum Distance From the Street and/or Lot Lines Beyond which a Structure can be Built.

Chap 2

Question 1103

NAOS: N_____ Area O___ S____ -

Easement Restricting and Preserving Use of Natural Environment

Answer 1103

NAOS: Natural Area Open Space -

Easement Restricting and Preserving Use of Natural Environment

Chap 2

Question 1104

An Area Set Off by Municipal Authorities for Specific Use (Residential, Commercial, Agricultural, Industrial, Special Purpose)

Chap 2

Answer 1104

Zone -

An Area Set Off by Municipal Authorities for Specific Use (Residential, Commercial, Agricultural, Industrial, Special Purpose)

Chap 2

Question 1105

V_____ -

Use Granted In Violation of the Zoning Ordinance, when Zoning Poses a Undue Hardship.

Example: Build a Garage Closer To the Property Line than the Setback Allows.

Answer 1105

Variance -

Use Granted In Violation of the Zoning Ordinance, when Zoning Poses a Undue Hardship.

Example: Build a Garage Closer To the Property Line than the Setback Allows.

Chap 2

Question 1106

N___C_______ U___ (G________ U___)

Pre-dates Zoning Ordinance

Answer 1106

Nonconforming Use (Grandfathered Use) -

Pre-dates Zoning Ordinance

Chap 2

Question 1107

En________ -

Claim**, **Right** or **Interest Held by Non-Legal Owner By Deed Restriction, Easement or Liens

Chap 2

Answer 1107

Encumbrance -

Claim**, **Right** or **Interest Held by Non-Legal Owner By Deed Restriction, Easement or Liens

Chap 2

Question 1108

D____ R_______

1. Restrictive Covenants, CCR’s.
2. Enforced By - Property Owners and HOA. Can seek “injuctive relief,” in court.
3. Most Restrictive Applies - Zoning vs Restriction.
4. “For Sale” or “For Rent” Signs and Solar Devises May Not Be Prohibited, But Must Conform to Industry Standards

Chap 2

Answer 1108

Deed Restrictions -

1. Restrictive Covenants, CCR’s.
2. Enforced By - Property Owners and HOA. Can seek “injuctive relief,” in court.
3. Most Restrictive Applies - Zoning vs Restriction.
4. “For Sale” or “For Rent” Signs and Solar Devises May Not Be Prohibited, But Must Conform to Industry Standards

Chap 2

Question 1109

Easement App______ -

1. Gives Right Across Property for Benefit of Adjacent Property.
2. It is a Permanent Easement.
3. Easement May Be For Ingress and Egress Access to Water or Utilities.

Chap 2

Answer 1109

Easement Appurtenant -

1. Gives Right Across Property for Benefit of Adjacent Property.
2. It is a Permanent Easement.
3. Easement May Be For Ingress and Egress Access to Water or Utilities.

Chap 2

Question 1110

Easement In Gr_____

1. Right Across Property for Benefit of 3rd party (Utility Easement)
2. Not To Be Confused with Easement Appurtenant.

Chap 2

Answer 1110

Easement in Gross -

1. Right Across Property for Benefit of 3rd party (Utility Easement)
2. Not To Be Confused with Easement Appurtenant.

Chap 2

Question 1111

Easement P_______ -

1. Gives One Person Permission (License) To Cross or Use Another’s Property
2. Not permanent, May Be Revoked

Chap 2

Answer 1111

Easement Personal -

1. Gives One Person Permission (License) To Cross or Use Another’s Property
2. Not permanent, May Be Revoked

Chap 2

Question 1112

C________ Easement -

An Agreement that Limits Certain Types of Uses or Prevents Development from Taking Place on Property, when Land in Private Ownership.

Chap 2

Answer 1112

Conservation Easement -

An Agreement that Limits Certain Types of Uses or Prevents Development from Taking Place on Property, when Land in Private Ownership.

Chap 2

Question 1113

Ways to Terminate Easements:

1. Mer____
2. Quit C_____ Deed (Title Defects)
3. Quiet T____ Action (Court Action Remove Cloud)

Chap 2

Answer 1113

Ways to Terminate Easements:

1. Merger
2. Quit Claim Deed (Title Defects)
3. Quiet Title Action (Court Action Remove Cloud)

Chap 2

Question 1114

Assessments Revealed by Survey, and Liens for Public Improvements (Lights, Sidewalks, Pavement, Etc) are called?

Chap 2

Answer 1114

Government Assessments -

Assessments Revealed by Survey, and Liens for Public Improvements (Lights, Sidewalks, Pavement, Etc)

Chap 2

Question 1115

Con_____ -

Legally Enforceable Agreement, To Do or Not To Do a Specific Thing. Promise or a Set of Promises, Courts will Enforce.

Chap 3

Answer 1115

Contract -

Legally Enforceable Agreement, To Do or Not To Do a Specific Thing. Promise or a Set of Promises, Courts will Enforce.

Chap 3

Question 1116

Assessments for Specific Improvements (Lights, Sewer)

Answer 1116

Special Assessments -

Assessments for Specific Improvements (Lights, Sewer)

Chap 2

Question 1117

Liens placed against a Specific Property, such as Real Estate Taxes, Government Assessments, Mechanical Liens, but also Mortgages, Trust Deeds, and Land Contracts

Chap 2

Answer 1117

Specific Liens -

Liens placed against a Specific Property, such as Real Estate Taxes, Government Assessments, Mechanical Liens, but also Mortgages, Trust Deeds, and Land Contracts

Chap 2

Question 1118

G_____ Liens -

Liens Placed Against an Individual and All Real and Personal Property, such as

Examples: Judgement and Income Tax Liens.

Answer 1118

General Liens -

Liens Placed Against an Individual and All Real and Personal Property, such as

Examples: Judgement and Income Tax Liens.

Chap 2

Question 1119

Priority of Liens are:

1. Pro____ Taxes,
2. Fore_____ Costs,
3. Sp_____ Assessments,
4. Mec_____ Liens,
5. HOA Assessements

Answer 1119

Priority of Liens are:

1. Property Taxes,
2. Foreclosure Costs,
3. Special Assessments,
4. Mechanic Liens,
5. HOA Assessements

Chap 2

Question 1120

Court Action to Remove Cloud

Chap 2

Answer 1120

Quiet Title Action -

Court Action to Remove Cloud

Chap 2

Question 1121

Deed Used to Clear Title Defects. Has No Warranties.

Example: Taking Spouse Off Title.

Chap 2

Answer 1121

Quit Claim Deed -

Clear Title Defects

Chap 2

Question 1122

Claim (Money Encumbrance) on Property to Secure Debt

Chap 2

Answer 1122

Lien -

Claim (Money Encumbrance) On Property to Secure Debt

Chap 2

Question 1123

Equivalent to 9 SqFt

Chap 2

Answer 1123

1 Sq Yard

Equivalent to 9 sq ft.

Chap 2

Question 1124

Cov______ -

Type of Agreement in a Contract or Obligation, Restricts the Buyer from Taking Some Action or Requires that They Abstain from a Specific Action

Answer 1124

Covenant -

Type of Agreement in a Contract or Obligation, Restricts the Buyer from Taking Some Action or Requires that They Abstain from a Specific Action

Chap 2

Question 1125

E______ -

Right to Use Another’s Property for a Specific Purpose

Chap 2

Answer 1125

Easement -

Right to Use Another’s Property for a Specific Purpose

Chap 2

Question 1126

When There is a Right Across one Property For the Benefit of the Adjacent Property. The Adjacent Property is Benefited by the Easement

Answer 1126

Dominant Parcel -

When There is a Right Across one Property For the Benefit of the Adjacent Property. The Adjacent Property is Benefited by the Easement and called Dominant Parcel

Chap 2

Question 1127

When there is a Right Across a Property (an easement). What is the Property Called that has the Easement Across it?

Chap 2

Answer 1127

Servient Parcel -

When there is a Right Across a Property (an easement). That property with Right Across it is Servient.

Chap 2

Question 1128

A Right a Property Owner has In an Adjacent Property By Which the Adjacent Property Owner May Not Interfer with View of Easement Holder.

Answer 1128

View Easement -

A Right a Property Owner has In an Adjacent Property By Which the Adjacent Property Owner May Not Interfer with View of Easement Holder.

Chap 2

Question 1129

Easement by N________

Land Owned by Single Owner Broken into 2 or More Parcels, and One Parcel is Landlocked is called?

Answer 1129

Easement by Necessity

Land Owned by Single Owner Broken into 2 or More Parcels, and One Parcel is Landlocked is called?

Chap 2

Question 1130

An Easement created by Adverse Possession?

Answer 1130

Prescriptive Easement -

An Easement created by Adverse Possession

Chap 2

Question 1131

Method of Taking Title or Interest in Property of Another. Person taking Title/Interest Must Show Court it was Taken In the Following Manner

1. N - Notoriously
2. O - Open
3. C - Continuous
4. H - Hostile or Adverse

Answer 1131

Adverse Possession -

Method of Taking Title or Interest in Property of Another. Person taking Title/Interest Must Show Court it was Taken In the Following Manner:

1. N - Notoriously
2. O - Open
3. C - Continuous
4. H - Hostile or Adverse

Chap 2

Question 1132

Merger -

Holder of Easement Buys the Property.

Answer 1132

Merger -

Holder of Easement Buys the Property.

Chap 2

Question 1133

Building or Improvement that Invades or Trepasses Onto Someone Else’s Property. Can Be Revealed By a Survey

Examples: Driveway or Garage that Extends Over Property Lines. Overhanging Tree or Roof.

Answer 1133

Encroachment -

Building or Improvement that Invades or Trepasses Onto Someone Else’s Property. Can Be Revealed By a Survey

Examples: Driveway or Garage that Extends Over Property Lines. Overhanging Tree or Roof.

Chap 2

Question 1134

Money Encumbrances are called?

Answer 1134

Liens -

Money Encumbrances

Chap 2

Question 1135

Dimensions of a Parcel Along Street. 1st Measurement Given.

Answer 1135

Front Footage -

Dimensions of a Parcel Along Street. 1st Measurement Given.

Chap 2

Question 1136

Court Ordered Liens (also General Liens). General Liens Go Against an Individual and All Real/Personal Property.

Answer 1136

Judgment Liens -

Court Ordered Liens (also General Liens). General Liens Go Against an Individual and All Real/Personal Property.

Chap 2

Question 1137

Claims Placed by the Government For Nonpayment of Income Taxes (also General Liens)

General Liens Go Against Individual, Real/Personal Property.

Answer 1137

Income Tax Liens -

Claims Placed by the Government For Nonpayment of Income Taxes (also General Liens)

General Liens Go Against Individual, Real/Personal Property.

Chap 2

Question 1138

Liens Placed By the Owner on Property (also considered Specific Liens)

1. Mortgages
2. Trust Deeds
3. Land Contracts

Answer 1138

Voluntary Liens -

Liens Placed By the Owner on Property (also considered Specific Liens)

1. Mortgages
2. Trust Deeds
3. Land Contracts

Chap 2

Question 1139

Placed by Action of Law Against a Property without the Owner’s Consent.

Answer 1139

Involuntary Liens -

Placed by Action of Law Against a Property without the Owner’s Consent.

Chap 2

Question 1140

When Planning to Dig in Arizona. Need to call 811 to Find Out where Underground Utilities May be Marked

Answer 1140

Blue Stake (811) -

When Planning to Dig in Arizona. Need to call 811 to Find Out where Underground Utilities May be Marked

Chap 2

Question 1141

Which of the following situations BEST illustrates a zoning variance?

1. Creating a Political Zone
2. Granting Permission to Build an Improvement Contrary to the Exisiting Zoning
3. A Use in Violation of Present Zoning Laws but Permitted because the Use was In Effect Prior to the Current Zone
4. A Grandfathered Use

Answer 1141

Which of the following situations BEST illustrates a zoning variance?

1. Creating a Political Zone
2. Granting Permission to Build an Improvement Contrary to the Exisiting Zoning
3. A Use in Violation of Present Zoning Laws but Permitted because the Use was In Effect Prior to the Current Zone
4. A Grandfathered Use

Question 1142

When an Easement Appurtenant exist between two Parcels of Land which are Separately Owned the:

1. Dominant Tenement has Use of This Easement Oly for Ingress and Egress
2. Servient Tenement is Benefitted by the Easement
3. Dominant Tenement is Benefitted by the Easement
4. Servient Tenement May Revoke the Use of Easement by Giving Proper Notice.

Answer 1142

When an Easement Appurtenant exist between two Parcels of Land which are Separately Owned the:

1. Dominant Tenement has Use of This Easement Only for Ingress and Egress
2. Servient Tenement is Benefitted by the Easement
3. Dominant Tenement is Benefitted by the Easement
4. Servient Tenement May Revoke the Use of Easement by Giving Proper Notice.

Chap 2

Question 1143

After Buyiing a House the Buyer discovers that Roof is 2 Feet from Property Line and should be 5 Feet by law. Best Solution:

1. File Cliam Under their Homeowner’s Insurance
2. Apply for a Variance in the Zoning Law
3. Negotiate with Adjacent Owner
4. Sell Property without Disclosing Condition

Answer 1143

After Buyiing a House the Buyer discovers that Roof is 2 Feet from Property Line and should be 5 Feet by law. Best Solution:

1. File Cliam Under their Homeowner’s Insurance
2. Apply for a Variance in the Zoning Law
3. Negotiate with Adjacent Owner
4. Sell Property without Disclosing Condition

Chap 2

Question 1144

Movable property such as potted plants, furniture, autos, and documents such as

1. Le_____
2. Con_____
3. D____ of Trust
4. Prom_____ Notes

All transfered by a “Bill of Sale”

Chap 1

Answer 1144

Chattel (Personal Property) -

Movable property such as potted plants, furniture, autos**, and **documents such as

1. Leases
2. Contracts
3. Deeds of Trust
4. Promissory Notes

All transfered by a “Bill of Sale”

Chap 1

Question 1145

State Trust Land: Article X - AZ Constitution -

1. Land transferred from F_____ Government to AZ (in 1910) held in trust.
2. Land Held in Tr____ and Managed by AZ State Land Dept to be Sold and Leased.
3. Benefits Sc_____

Chap 1

Answer 1145

State Trust Land: Article X - AZ Constitution -

1. Land Transferred from Federal Government to AZ in 1910 held in trust.
2. Land held in Trust and Managed by AZ State Land Dept to be Sold and Leased.
3. Benefits Schools

Chap 1

Question 1146

Appurtenances -

Rights and Imp_________ “Transferred” with Land, unless Reserved or Excepted.

1. Imp________ (Buildings, Fences, Trees, Sidewalks, Plants)
2. Emb_______ (Tenant Farmer Harvesting Crops after Lease Expires)
3. Bundle of R_____ (Mineral, Air, Riparian, Littoral Rights)

Answer 1146

Appurtenances -

Rights and Improvements “Transferred” with Land, unless Reserved or Excepted.

1. Improvements (Buildings, Fences, Trees, Sidewalks, Plants)
2. Emblements (Tenant Farmer Harvesting Crops after Lease Expires)
3. Bundle of Rights (Mineral, Air, Riparian, Littoral Rights)

Chap 1

Question 1147

C_________

Process of Changing Property to Real or Personal. By Agreement can become Personal Property.

If Court Decides, will ask seller intent:

1. Was the article Permanently Attached?
2. Will Damage Occur if item removed?
3. Cost has No Bearing!

Answer 1147

Conversion (of property) -

Process of Changing Property to Real or Personal. By Agreement can become Personal Property.

If Court Decides, will ask seller intent:

1. Was the article permanently attached?
2. Will damage occur if item removed?
3. Cost - has no bearing!

Chap 1

Question 1148

Govern Rights (P.E.T.E) -

1. P -
2. E -
3. T -
4. E -

Answer 1148

Govern Rights (P.E.T.E) -

1. P - Police Power,
2. E - Eminent Domain,
3. T - Taxation,
4. E - Escheat

Question 1149

Right to Enact Laws for Health, Safety and Welfare of Public.

Zoning Laws, Health Codes, Building codes, and Right to License Brokers/Agents

Answer 1149

Police Power (Health, Safety, and Welfare of Public) -

Right to Enact Laws for Health, Safety and Welfare of Public.

Zoning Laws, Health Codes, Building codes, and Right to License Brokers/Agents

Question 1150

1. Right to take Private Property for Public Use with just Compensation Paid.
2. Note: 20 Day Notice of Court Action, Written Offer and Appraisal

Answer 1150

Eminent Domain -

1. Right to take Private Property for Public Use with just Compensation Paid.
2. Note: 20 Day Notice of Court Action, Written Offer and Appraisal

Chap 1

Question 1151

Reversion of Property to State when Owner Dies Intestate - No Will. Heirs have 7 years to Claim Proceeds of Sale.

Answer 1151

Escheat -

Reversion of Property to State when Owner Dies Intestate - No Will. Heirs have 7 years to Claim Proceeds of Sale.

Chap 1

Question 1152

D__________

Transfer of Privately Owned Land to Public, With No Consideration, with Intent for Public Use.

Example: Developer Grants a Right-of-Way Across his Property for Public Streets

Chap 1

Answer 1152

Dedication -

Transfer of Privately Owned Land to Public, With No Consideration, with Intent for Public Use.

Example: Developer Grants a Right-of-Way Across his Property for Public Streets

Chap 1

Question 1153

Intangible Rights and Privileges, such as Mineral Rights, Air Rights, Riparian Rights, Littoral Rights, and Easements

Answer 1153

Bundle of Rights -

Intangible Rights and Privileges, such as Mineral Rights, Air Rights, Riparian Rights, Littoral Rights, and Easements

Chap 1

Question 1154

C__________

“Process or Act” of Taking Property

1. 20 Day Notice - to owner before Court Action
2. Written Offer and Appraisal
3. Compensation

Chap 1

Answer 1154

Condemnation-

“Process or Act” of Taking Property

1. 20 Day Notice - to owner before Court Action
2. Written Offer and Appraisal
3. Compensation

Chap 1

Question 1155

D___

Written Instrument by which a Property Owner (Grantor) Conveys (To Grantee) an “Ownership Interest in Real Property.

1. Grantor - Give Deed
2. Grantee - Receives Deed

Answer 1155

Deed -

Written Instrument by which a Property Owner (Grantor) Conveys (To Grantee) an “Ownership Interest in Real Property.

1. Grantor - Give Deed
2. Grantee - Receives Deed

Chap 1

Question 1156

Land and Everything Attached to it, such as Rights, “Immovable.” Transfered by Deed?

Answer 1156

Real Property (Real Estate)

Land and Everything Attached to it, such as Rights, “Immovable.” Transfered by Deed?

Chap 1

Question 1157

Who gives a Deed?

Answer 1157

Grantor -

Gives the Deed

Chap 1

Question 1158

Who received the Deed?

Answer 1158

Grantee -

Recieves the Deed

Chap 1

Question 1159

Ownership extends to the Sky and to Center of Earth, includes “Air Rights” and “Subsurface Rights”

Ownership:

1. Federal Gove 42.2%
2. Native American - 27.6%
3. Private - 17.5%
4. State Trust Land 12.7%

Answer 1159

Land -

Ownership extends to the Sky and to Center of Earth, includes “Air Rights” and “Subsurface Rights”

Ownership:

1. Federal Gove 42.2%
2. Native American - 27.6%
3. Private - 17.5%
4. State Trust Land 12.7%

Chap 1

Question 1160

Tearing Away of Land due to Natural Causes is called what two things?

Chap 1

Answer 1160

Erosion / Avulsion -

Tearing Away of Land due to Natural Causes

Chap 1

Question 1161

The Increase of Land due to Natural Causes is called?

Answer 1161

Accretion -

The Increase of Land due to Natural Causes

Chap 1

Question 1162

No Two Parcels of Land are the Same

Answer 1162

Heterogeneity -

No Two Parcels of Land are the Same

Chap 1

Question 1163

Right of a Tenant Farmer to Harvest Crops after the Lease has Expired. Also known as Annual Crops - Fructus Naturales.

Answer 1163

Emblements -

Right of a Tenant Farmer to Harvest Crops after the Lease has Expired. Also known as Annual Crops - Fructus Naturales.

Chap 1

Question 1164

Water Rights Next to a River or Stream are called?

Answer 1164

Riparian Rights -

Water Rights Next to a River or Stream

Chap 1

Question 1165

Water Rights Next to a Lake or Ocean is called?

Answer 1165

Littoral Rights -

Water Rights Next to a Lake or Ocean

Chap 1

Question 1166

F______ -

Item which was Personal Property but has been Permanently Attached to and Has become Real Property.

1. Agmt of Parties - Will Allow these Items to become Personal Property again.
2. No Agrmt - Court Decides by asking:
   
   1. Was it Permanently Attached?
   2. Will Damage Occur if removed?
   3. Cost has No Bearing

Answer 1166

Fixture -

Item which was Personal Property but has been Permanently Attached to and Has become Real Property.

1. Agmt of Parties - Will Allow these Items to become Personal Property again.
2. No Agrmt - Court Decides by asking:
   
   1. Was it Permanently Attached?
   2. Will Damage Occur if removed?
   3. Cost has No Bearing

Chap 1

Question 1167

Af_____ of A_______ -

Document used to Make Mobile/Manufactured Home “Real Property,” and Must be Recorded?

Notes:

1. Vehicle Titles must be Surrendered
2. Real Estate Licensees may:
   
   1. May List (New/Used) Unaffixed Mobile/Manufactured Homes
   2. Represent Dealers or Private Sellers

Answer 1167

Affidavit of Affixture -

Document used to Make Mobile/Manufactured Home “Real Property,” and Must be Recorded?

Notes:

1. Vehicle Titles must be Surrendered
2. Real Estate Licensees may:
   
   1. May List (New/Used) Unaffixed Mobile/Manufactured Homes
   2. Represent Dealers or Private Sellers

Chap 1

Question 1168

Charge Against Property to Bear Cost of Muncipal Functions

Chap 1

Answer 1168

Taxation -

Charge Against Property to Bear Cost of Muncipal Functions

Chap 1

Question 1169

AZ S____ L___ D____ -

Managed Land Held in Trust to be Sold and Leased

Answer 1169

AZ State Land Dept -

Managed Land Held in Trust to be Sold and Leased

Chap 1

Question 1170

S___ T___ L____ P_____ -

Benefit Schools and Other Entities

Answer 1170

State Trust Land Proceeds -

Benefit Schools and Other Entities

Chap 1

Question 1171

State Trust Land (AZ Constituion - Article 10) -

This Land was Transfered When and by Whom?

Chap 1

Answer 1171

State Trust Land (AZ Constitution - Article 10) -

Land Transfered - In 1910 by “Federal Government” to AZ

Chap 1

Question 1172

What Transfers “Personal Property?”

Answer 1172

Bill of Sale -

Transfers “Personal Property”

Chap 1