Brief Study Notes & Facts Flashcards
1
Q
Property taxes are a lien starting?
A
January 1st
2
Q
Nothing comes ahead of a property tax lien
which makes it what type of lien?
A
Primary lien
3
Q
Property taxes are based on the ________ _____
of a property.
A
Assessed Value
4
Q
To calculate the assessed value, the rates
used for residential and land are?
A
Residential 10%
Land 16%
5
Q
How often are property taxes levied?
A
Annually
6
Q
When are the 1st half of property taxes due?
A
October 1st
7
Q
When are the 2nd half of property taxes due?
A
March 1st
8
Q
When do the 1st half of property taxes become delinquent?
A
November 1st
9
Q
When do the 2nd half of property taxes become delinquent?
A
May 1st
10
Q
In Arizona are property taxes paid in advance or in arrears?
A
Arrears
11
Q
Property taxes will appear on a closing statement as:
A
debit seller, credit buyer
12
Q
1st half taxes are pro-rated using?
A
The Prior Year’s figures
13
Q
When a property tax sale is held,
the low interest bidder receives a
A
Certificate of Purchase
14
Q
How long is the period of redemption which a certificate
of purchase holder must give the owner before
a foreclosure can begin?
A
3 years
15
Q
When pro-rating property taxes at close of escrow
a calendar year has how many days?
A
360 days
16
Q
Property taxes are pro-rated at close of escrow
and the day of COE goes to the?
A
Buyer
Close of escrow is the buyer’s day!
17
Q
The buyer is most likely to accept title with a…
A
property tax lien for the current year’s taxes.
18
Q
Arizona property tax liens being primary liens,
would be ahead of…
A
IRS lien
Deed of Trust
19
Q
Which of the deeds have the best warranties?
A
General Warranty
20
Q
Who receives title through a deed of conveyance?
A
Grantee
21
Q
Deed restrictions that run with the land & liens are called?
A
Encumbrances
22
Q
An Escrow company works for?
A
Buyer & Seller
23
Q
A deed is legally enforceable if it is
A
Recorded
24
Q
What is the purpose of a closing statement?
A
Show all monies/costs involved in a transaction.
25
Who signs the settlement sheet?
**Buyer, Seller & Escrow agent**
26
The Covenant of Seisin promises
**The grantor has the right to convey the property.**
27
How does Title Insurance affect property value?
**It has no impact on property value.**
28
When an abstract of title is completed
**It indicates that a title search was completed.**
29
When a conventional loan is greater than 80%...
**PMI (Private Mortgage Insurance) must be paid at time of closing.**
30
Owner's Title Insurance is for the protection of the?
**Buyer**
31
What payments would never show on a closing statement?
**Principal payments**
32
When taxes are prorated at close of escrow they would read?
**Debit Seller Credit Buyer**
33
The difference between debits and credits...
**Is the amount needed to close the escrow and balance.**
34
When the buyer is buying a rental property...
**The security deposits are not prorated.**
35
Owner's Title Insurance Policy would not cover...
**Parties in Possession**
36
When the escrow company turns the matter over to the court to settle a dispute, this is called...
**Interpleader**
37
It must be stated in the deed if a property is sold with...
**No ingress or egress.**
38
The document that is recorded along with the deed is the...
**Affidavit of Value**
39
To help the assessor determine property value for taxation...
**An affidavit of value is used by the county assessor.**
40
The point when the docket and page number are assigned is...
**Recordation**
41
On the topic of how to take title, a Real Estate agent...
**Should _NOT_ give advice.**
42
When property is sold in Arizona...
**It does not have a transfer tax.**
43
An extended policy of title insurance would cover...
**Encroachments**
44
Arizona property taxes would always be in first lien position.
**Property taxes would be ahead of an IRS lien or a deed of trust.**
45
In order to record a deed it must be...
**Signed & Acknowledged.**
46
When a party is given a life estate based on the life of another person this is called...
**Pur Autre Vie
"For the life of another"**
47
Gives the appearance of title, but is not...
**Color of title**
48
If a buyer gives earnest money and signs a contract, then decides not to complete the terms of the contract, the seller may?
## Footnote
**Retain the Earnest Money!**
49
When one party has the right of rescission in a contract, it is called?
## Footnote
**Voidable**
50
If a buyer can't qualify for a loan, what clause in a purchase contract would benefit the buyer?
## Footnote
**Contingency clause**
51
When a purchase contract is signed by the buyer & seller, what is not required?
## Footnote
**Notarized Signatures**
52
All contracts must have?
## Footnote
**Consideration**
53
When a contract is made between a competent party and a minor it is...
## Footnote
**Voidable by the minor**
54
When an offer is written on another broker's listing, the selling agent is required to...
## Footnote
**Contact the Listing Broker**
55
When a purchase contract has handwritten and preprinted language...
## Footnote
**The handwritten language would have priority.**
56
All contracts are required to be in writing per the...
## Footnote
**Statute of Frauds**
57
When a contract is based on fraud it is...
**Voidable by the party the fraud was committed against.**
58
A unilateral contract would be...
## Footnote
**Option, First Right of Refusal, Reward Poster**
59
A contract is not considered valid until there is an...
## Footnote
**Offer & Acceptance**
60
When a contract is for an illegal act or purpose it is...
**Void**
61
Q makes an offer to Y... the offer is signed by Y who makes a counter and dies before Q accepts, what is the contract status?
## Footnote
**Unenforceable**
62
The court action to compel a buyer or seller to carry out the terms of a contract is called?
## Footnote
**Specific Performance**
63
When a contract is signed by someone other than the seller it would most likely be...
## Footnote
**An Attorney in Fact**
64
When a contract has pre-printed language, the agent should...
## Footnote
**Review and Alter if Necessary**
65
Which agent has the original contract and the earnest money?
## Footnote
**Selling Agent**
66
When an option to buy is exercised, the option is...
## Footnote
**Unilateral Executed**
67
When an option to buy is exercised, the new contract is...
## Footnote
**Bilateral Executory**
68
A real estate agent may modify a contract...
**Only if it is signed by the buyer and seller.**
69
When a real estate transaction is set to close escrow, what is not recorded?
**Purchase Contract**
70
A buyer would get the earnest money deposit back if the contract contained a...
**Contingency Clause**
71
When a buyer defaults on a purchase contract, and the seller keeps the earnest money, this is called?
**Liquidated Damages**
72
W makes an offer to X, all parties sign, and then X dies, you have...
**A valid contract**
73
When a buyer enters into a lease-purchase, the buyer is...
**Obligated to buy the property on a specific date.**
74
When a salesperson has a buyer sign this type of agreement, it must have a beginning and ending date.
**A buyer brokerage agreement**
75
A false statement made with the intention of inducing another party...
**Intentional misrepresentation**
76
If this is included in a sale the salesperson should take an inventory.
**Personal Property**
77
If a sales contract is signed only by one spouse the status is...
**Unenforceable against both.**
78
When a purchase contract is signed under duress it is...
**Voidable**
79
An illusory contract would be...
**Unenforceable**
80
Agency law is comprised of...
**Tradition, common law & court cases**
81
In a listing agreement the **_seller_** is also known as the...
**client or principal**
82
What does an agent owe their client or principal?
**Fiduciary duties**
83
A **_third party_** in a real estate transaction is known as the...
**customer**
84
A customer is owed...
**honesty & full disclosure **of all **material facts.**
85
Which type of listing gives the broker the least protection?
**Open listing**
86
What type of contract is an open listing?
**Unilateral contract**
87
Which type of listing gives the broker the greatest protection?
**Exclusive Right to Sell**
88
What must all listings have?
**A beginning and ending date.**
89
The term used to describe legal exaggeration.
**Puffing**
90
A listing between the broker (agent) and seller (principal) is a...
**Personal Service Contract**
91
When the brokerage company represents both the buyer and seller in the same transaction this is called?
**Dual Agency**
92
Dual agency is legal as long as all parties...
**Agree in writing**
93
During the course of a listing *this* cannot be used by the agent at a later date even if the listing has expired...
**Confidential information**
94
Owner hires one broker but may sell the property for sale by owner and not pay a commission. What type of listing is this?
**Exclusive agency listing**
95
In an exclusive agency listing...
**a commission would be paid to MLS agents and sub-agents.**
96
A net listing is illegal in some states because...
**the broker may undervalue the property.**
97
If an agent tells a buyer - best house in the area!
This is an example of what?
**Puffing**
98
If an agent makes a person think they're their agent, this is an example of...
**Implied Agency**
99
A listing would be terminated by...
**bankruptcy**
100
A broker speaks for a seller without authority...
**ostensible**
101
Fiduciary duties include...
**Care, obedience, loyalty, accountability, confidentiality, & disclosure**
102
Would places of worship in the area be included on a listing agreement?
**No they would not!**
103
When a brokerage company is **_sold_** -
**all listings must be re-signed in the name of the new company.**
104
When a salesperson leaves ***"Company A"*** and now works for ***"Company B"*** they may be paid...
**commissions on any previous contracts directly from *"Broker A"***
105
The broker's right to a commission is established by the...
**Listing agreement**
106
Two agents from different branches of the same company represent the buyer and seller in a transaction - This creates **_dual agency_** and...
**Fiduciary would be owed to the buyer and seller.**
107
If a listing agent gives confidential information to another broker, this would be a...
**Breach of fiduciary duties.**
108
Mechanic's Liens takes priority starting...
**the day the work began.**
109
How long after Notice of Completion does a General Contractor as well as the Subcontractor, have to file their lien?
**120 days**
110
*This* will not protect the new owner against a Mechanic's Lien that is recorded after close of escrow.
**A Standard Owner's Policy of title insurance**
111
How long is a Mechanic's Lien valid?
**Six months from the day of recordation.**
***A lawsuit must be filed within six months for the lien to remain valid.***
112
Once a ***Judgment is awarded***...
The Judgment has the same priority as the original Mechanic's Lien.
113
A Mechanic's Lien **_may be filed_** by...
**A General Contractor; Subcontractor; Architect; Engineer**
**or provider of materials. **
114
The homestead exemption **_will not protect_** a property owner against...
**A Mechanic's Lien**
115
If a tenant improves a property and fails to pay the contractor, the Mechanic's Lien will...
**encumber the tenant's leasehold interest**
116
Arizona Homestead Exemption will **_protect the equity_** in a personal residence up to...
**$150,000**
117
A Homestead will...
**_Protect a person's equity_ against an unsecured creditor.**
118
Homestead **_will not protect_** a person against any action they...
**_Voluntarily entered into_, secured liens, or rights **
**of government**
119
Homestead protection is lost when...
**the person sells or moves out of the property.**
120
You may only have...
**One Homestead Exemption at a time.**
121
You homestead the...
**property, NOT the people.**
122
How long are judgments valid?
**5 years**
123
Judgments may be renewed...
**within the _last 90 days_ of the five years.**
124
Judgments from another state may be recorded in Arizona
as a...
**Foreign Judgment**
125
Where would judgments appear?
**On a title report, credit report and in the**
**county recorders office**
126
Judgments attach to real and personal property and are
considered what type of lien?
**General Lien**
127
What factor would not be used in a market analysis of an
income producing property?
**Asking sales price**
128
_Utility_, _scarcity_, _transferability_ are used to determine...
**Value**
129
When conducting a neighborhood analysis, the appraiser
is interested in...
**Economic Depreciation**
130
What is an example of external (economic) obsolescence?
**Air pollution; Noise**
131
The CAP rate and Capitalized value are based on...
**Net Income**
132
When smoke and dust in an area are harming the nearby
properties this is an example of...
**Economic Obsolescence**
133
When appraising a special usage property (church),
the appraiser would use the...
**Cost approach**
134
Appraisers are paid based on...
**Time, travel & work**
135
When an appraiser is studying an area for growth and decline,
this is called...
**Integration and Disintegration**
**[Development, Stability & Decline]**
136
The period of time a building is profitable to operate is called...
**Economic Life**
137
When appraising an apartment building, the best
approach is...
**Income**
138
A house with 4 bedrooms, 1 bathroom
is an example of...
**Functional Obsolescence**
139
If a building has a poor floor plan, this is
an example of...
**Functional Obsolescence**
140
The market approach does not...
**Consider the original purchase price.**
141
When CAP rate goes up...
**Value goes down.**
142
When appraising land, the appraiser uses...
**The Market Approach**
143
The appraiser is to..
**Estimate Value**
144
When appraising a 35-year old school building,
the appraiser uses...
**The Cost Approach**
145
When appraising an old residential home,
the appraiser uses...
**The Market Approach**
146
Operating expense would not include...
**Vacancies and loss of credit**
147
When using the market approach, the appraiser
does not use...
**Building permits**
148
The difference between replacement value and
present value is...
**Depreciation**
149
When using the market approach, all would be used but...
**Original Cost**
150
When the appraiser uses all three approaches,
the final step is...
**Reconciliation**
151
When using the market approach, the least
important factor is...
**Property In Foreclosure**
152
In the income approach, the most important income is...
**Net Operating Income**
153
The appraisers first objective is to...
**Define the Problem**
154
At the end of the economic life, you have...
**Salvage Value**
155
The highest price a property will demand is called...
**Market Value**
156
Economic depreciation is always...
**Incurable**
157
The comps in the area have less features than
the subject property...
**The appraiser would add a dollar value**
**to the comp property.**
158
Replacement cost and Reproduction costs
are the same as...
**Using today's materials and designs vs. new replica**
159
When a property is in need of repair due to neglect it is...
**Deferred Maintenance**
160
A successful new home builder would
be subject to conformity or...
**Competition**
161
A 100-year old building with modern fixtures
is an example of...
**_Replacement_**** not reproduction**
162
If a 100-acre subdivision is broken into five-acre lots,
the property owners would have an easement...
**appurtenant**
163
Square footage of residential property is based on...
**exterior measurements**
164
The benefits of one property when compared
to another is called...
**Substitution**
165
When a lessee pays upfront deposits and
then cancels the lease, the landlord can keep the...
**Security Deposit**
166
Security deposits may not exceed...
**One and one-half month's rent**
167
If a tenant fails to pay rent, the first step the
landlord takes is to give the tenant a...
**5-Day Notice**
168
A notice of eviction must be given to a tenant
prior to the eviction process. How many days
is the notice of eviction?
**5-Day Notice**
169
The landlord has to return any security
deposit due the tenant within how many days?
**14 Days**
170
Who may sign checks written on a property
management trust account?
**The Broker, licensee, or an employee of the company.**
171
Can a property owner be a signor on a
property management trust account?
**NO. A property owner *_MAY NOT_* be a signor
on a property management trust account.**
172
Can tenants' security deposits be placed
in interest bearing accounts?
**Yes. Tenant security deposits *_MAY BE_*
deposited in interest bearing accounts.**
173
How much notice must a landlord give a
tenant before entering a dwelling?
**48 hours**
174
A broker must keep a copy of all rental
contracts for no less than?
**One Year**
175
When a tenant moves out of a property because
it is no longer livable, this is called?
**Constructive Eviction**
176
How many days written notice must a tenant give
a landlord to repair any defects before the tenant
can repair such items?
**10 days written notice**
177
What is the self-help for minor defects amount?
**One-half the month's rent or $300, whichever is greater.**
178
A property manager fails to give a full accounting of the
security deposit within 14 days. The landlord can then be
held liable for up to what amount?
**Twice the amount wrongfully held.**
179
Though illegal in many instances, this clause gives a
landlord the right to seize a tenant's belongings for
rents in arrears.
**Distraint Clause**
180
When subdividing lots the legal description used is?
**Lot & Block**
181
What items are permanent and
attached to real property?
**Fixtures**
182
If a salesperson is not an employee of a broker for tax
purposes but works for the broker, the salesperson is an?
**Independent Contractor
(If answer not available, use Subagent)**
183
A public report will be denied on a subdivision if...
**The developer can't show ownership
or title to the property.**
184
When a person acts with intent to harm
someone and suffer a loss, this is called?
**Fraud**
185
Before a public report is issued,
a developer may...
**Take lot reservations.**
186
A licensee has a right to prepare all
real estate documents according to?
**Arizona Constitution, Article XXVI**
187
If a subdivision is sold with no
ingress or egress, the sale would be?
**Voidable by the Buyer.**
188
A public report is required when
you sell more than how many lots?
**Five lots**
189
What is the primary purpose of a public report?
**Inform and protect the Buyer.**
190
How many years must a broker
keep a copy of the public report?
**5 Years**
191
If a public report is required but the buyer was not issued
one; how long does the buyer have to rescind the contract?
**Within 3 years without cause.**
192
When a person buys a timeshare,
how long do they have to rescind the contract?
**7 days to rescind without cause.**
193
An improved lot is defined as?
**One that has a struture or a contract is written
for a structure to be built within two years.**
194
When is a public report to be presented to the Buyer?
**Before signing the contract!**
195
A public report is not...
**An endorsement by the Department of Real Estate.**
196
When advertising a subdivision, what claim is
the developer prohibited from saying?
**The Property has no risk.**
197
198
If a buyer buys unimproved subdivided property
sight unseen, how long do they have to rescind the sale?
**6 months to rescind the sale**
199
How long does a licensee have to notify the
real estate department of a conviction of a felony
or misdemeanor?
**Within 10 days!**
200
The designated broker or delegated associate broker
must initial all contracts within how many days?
**Within 10 days**
201
Arizona environmental policies are controlled by?
**Arizona Department of Environmental Quality (ADEQ)**
202
A salesperson is protected from _______ or \_\_\_\_\_\_\_
action taken against them for failure to disclose a
murder, death, suicide or felony act that
ocurred on or in the property.
**Civil or Criminal Action**
203
The seller is responsible to give to the buyer all
documents regarding the homeowner's association
if there are less than ____ units?
**_Less_ than
50
units**
204
The homeowner's association is responsible to give the
buyer all documents regarding the association if there
are ____ units or more.
**50
units or _more_**
205
A temporary broker's license will not be issued for an
extended leave of absence, but wil be issued for
\_\_\_\_\_\_\_, _______ or \_\_\_\_\_\_.
**Death, insanity, or Disability**
206
*Community Property with Right of Survivorship* can only
be held by?
**Husband & Wife**
207
With Community Property with Right of Survivorship -
upon the death of the spouse, the other receives the
entire property value - this is also known as?
**Step up in basis.**
208
**(T/F)**
All **_disclosures of material facts_** must be in writing
according to the rules.
**TRUE**
209
Arizona "Superfund" Sites are called _____ \_\_\_\_\_
\_\_\_\_\_ _____ \_\_\_\_\_ areas?
**Water Quality Assurance Revolving Fund (WQARF)**
210
A variance in zoning would be an...
**exception of the zoning law.**
211
Revocable permission to use the property for
weekends only for summer camp would be a?
**License**
212
When does the seller receive the buyer's
earnest money?
**At Close of Escrow (COE)**
213
What does the salesperson do with the
earnest money check?
**Turn it over to the Broker.**
214
What is similar to medical malpractice insurance?
**Errors and Omissions Insurance**
215
Fair dealing is the same as?
**Honesty**
216
How long is a broker required to keep rejected offers?
**1 year**
217
A timeshare presentation may not last
more than?
**120 minutes
(2 hours)**
218
When borrowed money is used to buy
real estate, this is called?
**Leverage**
219
A limited partnership is closest in
similarities to a?
**Syndicate**
220
Homeowners' association fees are paid by?
**All owners of property in the association.**
221
A master planned community is defined as?
**Two or more platted subdivisions with CC&R's.**
222
When a Lender charges a fee for paying off a loan
before its time, the fee is called a?
**Pre-Payment Penalty**
223
Regulation Z shows all costs of
borrowing money except for?
**Document Preparation Fees**
224
What are the particulars of an
Adjustable Rate Mortgage (ARM)?
**Rates and Terms can change
with market conditions.**
225
An interest only payment loan
is called a?
**Term Loan**
226
What type of lien is a mortgage?
**Voluntary Lien**
227
What is the name of the legislation
which outlawed price fixing?
**Sherman Anti-Trust Act**
228
An agreement between real estate companies not to
do business in each others areas, would be in
direct violation of what federal act?
**Sherman Anti-Trust Act**
229
If a residential property was built before 1978, the
buyer or tenant is to receive what specific information?
**Lead Based Paint Disclosure & Booklet**
230
Secondary Market is the same as?
**Re-sale Mortgage Market**
231
When a buyer obtains a loan, the lender charges a fee
to cover their overhead, what is this fee called?
**Origination Fee**
232
**_Note:_** Deed of Trust
Who are the parties involved in a
Deed of Trust transaction?
**Trustor = Borrower**
**Beneficiary = Lender**
**Trustee = Holds Legal Title "Bare & Naked"**
233
***_Note:_*** Mortgage
Who are the parties involved in a
Mortgage transaction?
**Mortgagor = Borrower**
**Mortgagee = Lender**
234
***_Note:_*** Agreement for Sale
Who are the parties involved in an
Agreement for Sale transaction?
**Seller = Vendor**
**Buyer = Vendee**
235
Arizona water law is based on the concept of?
**Prior Appropriation**
236
What are the two water classifications in Arizona?
**Ground & Surface**
237
Arizona water usage is regulated by?
**The Department of Water Resources**
238
This law was the first to prohibit any
type of discrimination by race.
**Civil Rights Act of 1866**
239
Which agency is the administrator for
the Fair Housing Law?
**Department of Housing & Urban Development
(HUD)**
240
This landmark Supreme Court decision
abolished "separate but equal".
**Brown v Board of Education**
241
What law addresses the rights of individuals with
disabilities in employment and public accommodations?
**Americans with Disabilities Act
(ADA)**
242
This section of the ADA requires employers to make
reasonable accommodations that enable an individual
with a disability to perform a job.
**ADA Title I**
243
Encouraging people to sell their homes, because a
protected class is moving in and saying it will have
a negative impact on values, is known as?
**Blockbusting**
244
Deciding for a protected class where they should
live instead of showing all properties available is
known as?
**Steering**
245
Limiting loans or insurance to a geographical
area is know as?
**Redlining**
246
A principal who is HIV positive is
protected under which law?
**Fair Housing Act of 1988**
