Ch. 7 Subdivisions Flashcards
How long does the buyer have the right to void the contract for the purchase of subdivided land if the buyer did not receive a CPR prior to signing?
a. One year
b. 30 days
c. Seven days
d. Three years
d. Three years
Correct! Unless exempt, the sale or lease of subdivided lands prior to issuance of the public report or failure to deliver the public report to the purchaser or lessee shall render the sale or lease rescindable by the purchaser or lessee. An action by the purchaser or lessee to rescind such transaction shall be brought within three years of the date of execution of the purchase or lease agreement by the purchaser or lessee. In any such action, the prevailing party shall be entitled to reasonable attorneys’ fees as determined by the court.
Which of the following statements is NOT true concerning a Membership Camping purchaser?
a. May sell the membership camping contract
b. Has a license to use a recreational facility
c. Has a real property interest
d. May rescind the contract before midnight of the third business day, if a resident
c. Has a real property interest
Correct! A membership camping purchaser receives a license to use a recreational facility and does NOT have a real property interest.
What is the purposed of the Commissioner’s Public Report?
a. Disclose the condition of title
b. Protect the buyer
c. Guarantee that the property has no liens
d. Protect the buyer and subdivider
b. Protect the buyer
Correct! Articles 4 and 7 of the Arizona Real Estate Code provide for the regulation of land, which is to be divided into parcels and sold or leased within the State. These laws were enacted to prevent dishonest and undesirable practices in subdividing and subsequent sale of undeveloped land. This was quite prevalent at one time.
A master planned community would BEST be defined as:
a. A subdivision of improved or unimproved land that is divided into six or more parcels
b. A mixed use community with a homeowner association
c. A subdivision with retail, commercial, industrial and residential uses
d. Two or more platted subdivisions with common covenants, conditions and restrictions.
d. Two or more platted subdivisions with common covenants, conditions, and restrictions.
Correct! “Master Planned Community” means a development consisting of two or more separately platted subdivisions and subject to either 1) a master declaration of covenants, conditions or restrictions, 2) restrictive covenants sufficiently uniform in character to clearly indicate a general scheme for improvement or development of real property, or 3) the development is governed or administered by a master owner’s association.
Dividing land into six or more parcels of less than 36 acres each is called a/an:
a. Improve land
b. Unsubdivided land
c. Unimproved land
d. Subdivision
d. Subdivision
Correct! The definition of a subdivision or subdivided lands is improved or unimproved land divided or proposed to be divided for the purpose of sale or lease, whether immediate or in the future, into six or more parcels or fractional interests of less than 36 acres.
A subdivision can be restricted by a developer in the deed restriction for all of the following reasons EXCEPT:
a. Physical lot size
b. Zoning changes
c. Age of owners
d. Size and shape of buildings
b. Zoning changes
Correct! Deed Restrictions are allowable when the restriction relates to the use of the property. A restriction that does not allow a property owner to participate in a potential zoning change would be a limitation on the rights of a citizen to participate in the governmental process.
An “improved lot” per the Arizona Revised Statutes is defined as which of the following:
a. A lot on which a structure will be built within two years from the date of the contract.
b. A lot with all off-site improvements completed
c. A lot on which a structure will be built within one year from the date of contract
d. A lot with a structure located in an active management area
a. A lot on which a structure will be built within two years from the date of the contract.
Correct! “Improved Lot or Parcel” means a lot or parcel of a subdivision upon which lot or parcel there is residential, commercial or industrial building or for which a contract has been entered into between a subdivider and a purchaser that obligates the subdivider directly or indirectly through a building contractor, to complete construction of a residential, commercial or industrial building on the lot or parcel within two years from the date on which the contract of sale for the lot is entered into.
When must the buyer receive a copy of the Commissioner’s Public Report?
a. Prior to signing the contract
b. At the close of escrow
c. 5 days prior to signing the contract.
d. Within 5 days of signing the contract
a. Prior to signing the contract
Correct! Any prospective purchaser must sign a receipt that states they have been given a copy of the public report (CPR) prior to signing any contract relative to the subdivided property.
The owner, agent or subdivider must retain a copy of the receipt for delivery of the Commissioner’s Public Report for:
a. One year
b. Six months
c. Three years
d. Five years
d. Five years
Correct! The owner, agent or subdivider must retain a copy of the Receipt for the CPR for five (5) years.
A Notice of Intention will include information on the owner and subdivider as well as all of the following EXCEPT:
a. Condition of Title
b. Subdivision Plat Map
c. Location of the nearest Public Schools
d. Location of the nearest Mortgage Lender
d. Location of the nearest Mortgage Lender
Correct
A seller of five or fewer parcels of land, other than subdivided land, in an unincorporated area of a county, shall furnish a written Affidavit of Disclosure at least:
a. 5 days before transfer
b. 3 days before transfer
c. 9 days before transfer
d. 7 days before transfer
d. 7 days before transfer
Correct! When an Affidavit of Disclosure is required it shall be furnished to the buyer at least seven days before the transfer of the property.
All of the following are exempt from registration under the Interstate Land Sales Full Disclosure Act, EXCEPT:
a. The plan offers fewer than 25 unimproved lots
b. The lots are subject to a mortgage lien
c. The seller is obligated to erect a building on the unimproved lot within 2 years
d. The plan offers lots consisting of at least 20 acres each
b. The lots are subject to a mortgage lien
Correct! The lot is to be free and clear of all liens and encumbrances at the time of the sale and the purchaser has personally inspected the property for the transaction to be exempt.
A disadvantage of ownership in a cooperative when compared to a condominium would MOST likely be:
a. Restriction of profit on sale
b. High tax assessment.
c. Danger that other owners might be unable to pay their share toward the mortgage and taxes.
d. Personal liability of owners should they default on their payments.
c. Danger that other owners might be unable to pay their share toward the mortgage and taxes.
Correct! The advantages of cooperative ownership are through the association of stockholders in controlling the rent and the approval of new purchasers.
The disadvantages are that there is no income tax deduction for mortgage interest or property taxes. Also, the mortgage could go into default if enough individuals fail to pay their monthly assessments.
The powers of the Homeowner’s Associations (HOA) include all of the following EXCEPT:
a. Mortgage the units
b. Amend by-laws
c. Adopt budgets and set assessment levels
d. Employ and discharge management personnel.
a. Mortgage the units
Correct! The HOA cannot mortgage the Units
Which of the following statements is NOT true concerning a Membership Camping purchaser?
a. May rescind the contract before midnight of the third business day, if a resident
b. May sell the membership camping contract
c. Has a real property interest
d. Has a license to use a recreational facility
c. Has a real property interest
Correct! A membership camping purchaser receives a license to use a recreational facility and does NOT have a real property interest.
