Final

Question 1

What’s the purpose of an attornment clause in a lease?

Answer 1

It notifies tenants that their lease is still in effect if the building ownership changes.

Question 2

Under which of the following clauses are the costs of building maintenance over a specified level are passed on to the tenant?

Answer 2

expense stop clause

Question 3

What consequences might a licensee face from the Department of Real Estate for violating a property management rule?

Answer 3

Their license may be revoked.

Question 4

When prorating annual HOA fees of $1,500 using the statutory calendar, what’s the daily rate, rounded to the nearest cent?

Answer 4

125 dollars

Question 5

What entity administers the regulations that govern the conduct of real estate licensees?

Answer 5

Department of Real Estate

The Arizona Department of Real Estate administers the state’s real estate law, including the regulations from the Arizona Administrative Code.

Question 6

Jameson has just passed his licensing exam, despite the fact that several key pieces of information he learned from his online training were incorrect. “I wonder what rules are used to register these institutions,” he says. What can Jameson do to find out?

Answer 6

He should contact the Arizona Department of Real Estate.

Question 7

The WQARF uses notices, plans, and an advisory board for each cleanup site to encourage

Answer 7

Community involvement in cleanups

Question 8

Which of the following statements about Colorado River water is true?

Answer 8

The federal government regulates the distribution of this water.

Question 9

What is the name of the federal law that sets forth guidelines regarding telephone solicitation?

Answer 9

Telephone Consumer Protection Act of 2003

Question 10

While at the local hardware store, you run into one of your clients. She is picking out windows to have installed in the home after closing. What is the best advice you can give her?

Answer 10

You tell her that she’ll need a building permit and a licensed contractor to do the work.

why does she need this? look further into it.

Question 11

Arizona licensed salesperson Andrea has an active license, but in order to perform real estate activities to earn compensation, she’ll also need

Answer 11

To be employed by an employing broker

Question 12

In the rectangular survey system, what is a base line?

Answer 12

An east-west line used as a reference point

Question 13

Where can a party that’s reviewing a title commitment find exceptions that aren’t covered by the title insurance policy?

Answer 13

Schedule B-2

Study the whole section about this

Question 14

Carla Ricardo has been offered her dream job in another state. She asks her current landlord to let her out of her lease early. The landlord agrees to do so, with no strings attached. Carla and her landlord have decided to terminate the contract through

Answer 14

Mutual agreement

Question 15

In terms of function and purpose, which of the following is most similar to Fannie Mae?

Answer 15

Freddie Mac

review the loans and how they function section.

Question 16

Through the divorce process, Gail was granted ownership of the couple’s vacation timeshare. Gail is ready to sell the timeshare but discovers that her ex-husband Daniel’s name is still on the deed, creating a cloud on the title. What should Gail do?

Answer 16

Ask Daniel to sign a quitclaim deed to release his ownership share.

What does quitclaim do in this scenario?
look further into it

Question 17

How many hours of continuing education are active Arizona salespeople required to take?

Answer 17

24 hours

Question 18

Which of these items wouldn’t be prorated?

Answer 18

A down payment

Question 19

Select the choice that best translates this clause into plain English. “Upon payment of all sums secured by this Mortgage, Mortgagee shall discharge this Mortgage without cost to Mortgagor. Mortgagor shall pay all costs of recordation, if any.”

Answer 19

When the borrower has fully paid off the loan, the lender will record that the note is satisfied.

Question 20

What’s depreciation?

Answer 20

A decrease in property value

Question 21

Under which of the following circumstances would the client and agent most likely mutually agree to terminate a listing?

Answer 21

The agent and client don’t agree on the best way to price, maintain, and market the property.

Question 22

Buyer Susie’s a little nervous about the $20,000 earnest money check she just deposited with the title company. When should she expect to see this money applied toward her purchase of the property?

Answer 22

When conditions are met at closing

Study the closing process as well please

Question 23

A property is 50 square yards. How many square feet is this?

Answer 23

450 square feet

One square yard is equal to nine square feet. Fifty square yards is equal to 450 square feet.

Question 24

what is a single agency?

Answer 24

When a licensee/brokerage firm acts in a fiduciary capacity for either the buyer/tenant or the seller/landlord in a real estate transaction, but not for both

Question 25

Manuel is selling his home to Selena. He has an existing loan that he’ll continue to make payments on, and he’s extending credit to Selena for the balance of the purchase price. She will make monthly payments to him. What type of financing are the parties using in this transaction?

Answer 25

Wrap-around loan

Study more on the different loans.

Question 26

Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the property divided?

Answer 26

Barbie owns two-thirds, and Midge owns one-third.

Study about Tenancy

Question 27

what is a good risk management strategy to maintaining documentation?

Answer 27

Maintain good records as proof of conversations, document delivery, and other related events.

Question 28

What are the five basic test that courts use to determine whether an item is a fixture or personal property?

Question 29

What type of investment strategy is most similar to a 1031 tax-deferred exchange?

Answer 29

Rolling over funds from one IRA into another

Question 30

Arizona licensees are required to abide by ______ laws.

Answer 30

Both Federal and state

Licensees are expected to act within both federal and local laws, including areas like environmental disclosures, federal fair housing requirements, truth in advertising laws, and all the laws laid out in the Arizona Revised Statutes.

Question 31

After a life estate holder dies and ownership rights have either reverted to the original owner or have been transferred to a remainderman, with what type of estate is the property held?

Answer 31

Fee simple

Question 32

Broker Joseph tells his client that a property is zoned as residential even though he knows it’s zoned as commercial. This violation is an example of ___

Answer 32

Making a substantial and willful misrepresentation

Question 33

Ruby’s single-family home in an urban neighborhood was auctioned off at a trustee’s sale. There was also a junior lien on the property for a home equity loan. Will Arizona’s anti-deficiency statutes protect Ruby?

Answer 33

Yes, the statutes protect Ruby because her property meets the requirements for a protected residential property.

Question 34

Arizona resident Harry receives a notification from his landlord that advises him the late fee for paying rent will increase from $30 to $50 in two months. Is it legal for Harry’s landlord to make this rule change?

Answer 34

Yes, because it does not fundamentally change the lease and gives more than 30 days’ notice.

Question 35

When you, as an Arizona licensee, cooperate with other brokers in a transaction, what is it called?

Answer 35

Co-brokerage

Question 36

in what way can office exclusives slow down the sale of the property?

Answer 36

Reduced market exposure

Question 37

Monica’s business is booming. She’s representing an owner who’s selling a $500,000 home on one side of town, and a buyer who’s purchasing a $300,000 property on the other side of town. As it happens, the seller and buyer both know each other from church and have been talking to others about Monica’s talents, which has brought in several new leads for her to pursue. What type of agency relationship does Monica have with the seller and buyer?

Answer 37

She is each party’s single agent.

Question 38

Investor Charlie wants to rehab the home he just bought. Under what condition can he NOT use the handyman exemption to do the work?

Answer 38

If he plans to sell or rent the home within one year

Study when a handyman can and can’t be hired.

Question 39

What information does Schedule B-1 of an ALTA title commitment provide?

Answer 39

Requirements that must be met before a title policy will be issued

Question 40

With which of the following problems can ADWR help?

Answer 40

Willies wants to know if he has the right to irrigate a piece of land that’s been in his family for generations. It’s in an INA.

Question 41

What type of measurement is used to describe the size of a two-dimensional shape?

Answer 41

Area

Question 42

How are mechanic’s liens enforced?

Answer 42

The courts settle liens by priority

Question 43

The Graysons just closed on their new home. They move in tomorrow. What type of contract do the Graysons have?

Answer 43

Executed

Question 44

Which of the following strategies would help to make a “Choose Your Neighbor” marketing letter non-discriminatory in its effect?

Answer 44

Listing the property on the MLS

Look further into this.

Question 45

Which term describes a contract that will stand up in court?

Answer 45

Enforceable

Question 46

Bethany has agreed to purchase Derrick’s property using a land contract. Who holds legal title to the property during the term of the loan?

Answer 46

Derrick

Question 47

What deed warranty guarantees that the seller is the actual owner of the property being conveyed?

Answer 47

Covenant of seisin

Question 48

Why are life insurance companies less concerned with liquidity than long term security of an investment?

Answer 48

They prefer financing larger projects, which inherently have more long-term security.

Question 49

What’s true of chlorofluorocarbons (CFCs)?

Answer 49

They are nontoxic.

Question 50

Stu is buying Freddie’s property. What must occur for the transfer of title to take place?

Answer 50

Freddie must intend to convey the property to Stu.

Question 51

If Arizona licensee Leslie engages in mortgage brokerage as well as real estate activities in the same transaction, she must

Answer 51

Disclose to her client that she’ll be receiving compensation for both services.

Question 52

What is non-contingent?

Question 53

Which legal description method is regulated by the U.S. Department of the Interior’s Bureau of Land Management?

Answer 53

Rectangular government survey

Question 54

Velma accepted Rigli’s offer on her acreage. The offer’s contingent on Rigli’s sale of his current home. She accepted the offer on the condition that she can continue to actively market her property. What’s likely to happen if Velma gets a non-contingent offer on her property?

Answer 54

She’ll give Rigli a set amount of time to remove the contingency (usually 24 hours).

Question 55

In a planned community, the nonprofit corporation or unincorporated association of owners to which members pay fees is called the

Answer 55

Association

Question 56

A property owner who wishes to convey property to a new owner will generally use a

Answer 56

Deed

Question 57

Which of the following is true of an express contract?

Answer 57

It’s stated specifically

An express contract is one that’s stated in specific terms. It may be oral or written.

Question 58

Marion gave her granddaughter Sheila the deed to a brand new home, on the condition that Sheila complete her PhD in astronautics. When Sheila dropped out of school and got a job as a greeter at a big box store instead, Marion ______ to regain ownership of the property.

Answer 58

Had to take legal action

Question 59

Harini had a lease with an option to buy on her condo since she wasn’t financially stable enough to purchase the condo when she first signed the lease. Two years later Harini was in great financial shape, but she found out that the owner legally sold the condo to another buyer. Harini has to move out next month. What must have happened?

Answer 59

The option expired.

Question 60

When a judgment has been awarded to a consumer against a licensee for damages related to a licensee’s actions and the licensee cannot pay those damages, who would file a claim for payment from the Arizona real estate recovery fund?

Answer 60

The wronged consumer

Question 61

What standards do appraisers follow?

Answer 61

Uniform Standards of Professional Appraisal Practice

Question 62

Volatile organic compounds can make indoor air quality toxic. Where are VOCs likely to be found?

Answer 62

Air fresheners

Question 63

Which of the following is NOT something that the commissioner does to educate licensees and the public about relevant real estate topics?

Answer 63

Pocket any profit made from selling educational materials.

Question 64

How should you respond if your buyer says the following? “We’re looking for a three-bedroom, two-bathroom home. We have young children, so we want to make sure we’re in a good neighborhood—somewhere safe, where we’ll find a lot of good families and neighbor kids that we’d want our children to play with.”

Answer 64

“If you provide me with specific neighborhood names, I can certainly look for homes in those areas. You can learn about the different neighborhoods in the area at neighborhoodscout.com.”

Question 65

If there’s no state or local building code to cover a specific situation, what code must the builder abide by?

Answer 65

The federal building code

Question 66

Which entity creates regulations governing real estate activities in Arizona?

Answer 66

Arizona Department of Real Estate

Question 67

Bailey just graduated from college with a degree in construction management, and he wants to apply for a contractor’s license. Where should he submit his application?

Answer 67

Arizona Registrar of Contractors.

Those who wish to apply for a contractor’s license should submit their application to the Arizona Registrar of Contractors.

Question 68

Property management firms must keep all clients’ financial records for at least _____ year(s) from the date each document was executed.

Answer 68

Three

Question 69

Christina purchased a house from Thomas. When did she officially gain ownership of the property?

Answer 69

With the transfer of deed from the seller to the buyer

Question 70

Marjory is an Arizona salesperson representing a seller on behalf of her employing broker, Leonard. Kenneth is a salesperson representing a buyer on behalf of his employing broker, Jason. Marjory’s listing agreement provides for compensation to the buyer’s agent in the transaction. From whom will Kenneth receive his compensation?

Answer 70

Jason

Question 71

An unenforceable contract is one that

Answer 71

Won’t stand up in court

Question 72

Which section of a commitment identifies exceptions to title insurance coverage?

Answer 72

Schedule B-2

Question 73

What is the 95% rule as it relates to tax-deferred exchanges?

Answer 73

The total value of the property (or properties) being exchanged is at least 95% of the value of the property being sold.

Question 74

The National Association of REALTORS® Board of Directors enacted MLS Statement 8.0. What’s its more common name?

Answer 74

Clear Cooperation Policy.

Recently, the National Association of REALTORS® Board of Directors passed MLS Statement 8.0, more commonly known as the Clear Cooperation policy.

Question 75

Which of the following circumstances would qualify someone other than the licensee representing the transaction principal to handle negotiations for a real estate transaction?

Answer 75

The property has been listed by the property owner.

Question 76

What entity administers the National Flood Insurance Program?

Answer 76

FEMA

Question 77

Your buyer is worried that after she closes on her property, she’ll find out someone else has a claim to its ownership. What can reassure her?

Answer 77

Title Insurance

Question 78

Homeowner Lynn is underwater on her home loan and is having difficulty making her monthly payments. Which of these options would allow Lynn to avoid foreclosure, even though she’ll lose her property and will need lender approval?

Answer 78

Deed in lieu of foreclosure or short sale

Question 79

Keira’s father leaves her some property in a tiny town. When she goes to see it a year or so later, she’s surprised to see that a family lives in one of the property’s outbuildings. All of the neighbors know that this family had been there for the past two years. This is an example of

Answer 79

Open and notorious possession

Question 80

Investing in capital improvements to a property is one way to stall

Answer 80

Obsolescence

Question 81

Over how many years is a commercial property depreciated?

Answer 81

39 years

Question 82

Marvin is facing penalties from the Arizona Registrar of Contractors for contracting without a license outside of the handyman exemption. In addition to facing six months in the county jail, what is the maximum fine he faces for his first offense?

Answer 82

2,500 plus an 83% surcharge

For a first offense, a person who is found to be contracting with a license outside of the handyman exemption faces a penalty of $1,000, plus an 83% surcharge. The maximum penalty is a fine of $2,500 plus an 83% surcharge and six months in jail.

Question 83

Which of the following is a true statement about the MLS and sellers?

Answer 83

It’s rare for sellers to decline advertising their property on the MLS

In every listing agreement, sellers state whether they give permission for their property to be listed on an MLS. It’s rare that sellers decline this opportunity, since the MLS is the most powerful tool that real estate professionals have at their disposal.

Question 84

What is a principal meridian?

Answer 84

imaginary line running north and south and intersecting a base line at a definite point,

Question 85

Administrative agencies like the Arizona Department of Real Estate create regulations that supplement laws. What are these regulations called in Arizona?

Answer 85

Arizona Revised Code

Question 86

In marketing her new listing, Alice asks the photographer to “touch-up” the photos of the house so that the old roof and siding look as though they are new. Which statement about this is true?

Answer 86

This is deceptive advertising for which both Alice and her broker may be disciplined.

Question 87

The mortgage industry is made up of the primary and secondary markets. What’s the role of the primary mortgage market?

Answer 87

To originate and fund mortgage loans to consumers

Question 88

Ginnie’s Aunt Becca listed the old family mansion with Ginnie. Ginnie put it on the market for Becca, but then she and her cousins talked with Becca and decided they wanted to keep the property in the family. What’s the best way to terminate the agreement?

Answer 88

Ginnie and Becca can mutually agree to terminate the agreement.

Question 89

Latrell purchased an old warehouse with the intent to create shared studio space for artists. However, he didn’t perform due diligence before the purchase, and it turns out that there are hazardous materials that need to be cleaned up first. Latrell took the prior owners to court, and the court ruled that Latrell is responsible for the costs of cleanup. What kind of liability is this?

Answer 89

Strict liability

Study the liablities there is four different ones

Question 90

Which of the following is a promise from the borrower to repay a certain sum of money to another party (the lender or holder of the note) under specified terms?

Answer 90

Promissory note

Question 91

Which entity regulates contractor Wayne from Millwork Options?

Answer 91

Arizona Regulator of Contractors

Question 92

Which of the following entities oversees the Arizona Department of Real Estate?

Answer 92

The Real Estate Commissioner

Question 93

What is general warranty deed?

Answer 93

A general warranty deed is a deed used to legally transfer real property from one person to another. This type of deed offers the most protection for the buyer.

Study the general warranty deed further

Question 94

Kevin and Regina sold their property to Vickey using a general warranty deed. Which one of these statements is true?

Answer 94

Vickey is the grantee.

Question 95

Shelly found a malnourished dog in a rental unit that was abandoned by her tenant. She decided to take the dog to a veterinarian and board it until it recovered. Since she took this action, what else must Shelly do?

Answer 95

Keep record of the name and location where the dog is boarded.

Review the question

Question 96

What is PUD?

Answer 96

is a community of single-family homes, and sometimes condos or townhomes, where every homeowner belongs to a homeowners association (HOA).

Question 97

Which of the following is an advantage of living in a PUD?

Answer 97

Easy access to amenities

Learn more about PUDS

Question 98

When a consumer suffers damages resulting from the real estate-related activities of an Arizona licensee, the consumer has ______ year(s) from the time of the incident to file legal proceedings against the licensee.

Answer 98

5 years

Question 99

Ricky Nubbins is three months behind in his rent and has received several reminders from the landlord that the rent is past due. As a result, the landlord has begun working through proper channels to legally end Ricky’s lease before the contract end date. The landlord is terminating his lease through ___

Answer 99

Eviction

Question 100

According to the FTC privacy rule, a landlord or property manager would have to obtain a tenant’s written consent before sharing the tenant’s personal information with which of the following?

Answer 100

An unaffiliated third party

Question 101

The Institute of Real Estate Management, an affiliate of the National Association of REALTORS®, offers a specific certification program. What designation would you earn upon completing this program?

Answer 101

Certified Property Manager

Question 102

What information does the Loan Estimate provide to buyers under required disclosures law?

Answer 102

Loan Payment schedule

There is more info on this please study it

Question 103

An advantage of organizing a business as a limited liability company is its

Answer 103

Limits on the liability of members for company debts or other obligations

An advantage of an LLC is the limits on members’ liability for company debts or other obligations.

Question 104

What is prorated?

Answer 104

To divide or distribute a sum of money proportionately.

Question 105

Rhonda and Jade both consider themselves to be African-American, although Rhonda has much darker skin and hair than Jade. When Rhonda went to the Valley Falls apartment manager’s office to request a rental application, she was told there were no vacancies. Jade went in a day later and received an application. This may be discrimination based on

Answer 105

Color

Question 106

What is Arizona’s anti-deficiency statutes ?

Answer 106

in foreclosure, when property is soled for less then it’s worth. Anti-deficiency prevents the lender to sue the borrow for the deference still owed.

Question 107

What is ADWR?

Question 108

What is land contract?

Question 109

Name the deed warranties?

Question 110

What is clear cooperation policy?

Question 111

What’s the intended use of the Uniform Residential Appraisal Report?

Answer 111

To evaluate the subject property for a mortgage finance transaction

As stated on page four of the URAR, the intended use of this appraisal report is for the lender/client to evaluate the subject of the appraisal for a mortgage finance transaction.

Question 112

All contractors who want to reserve their right to file liens in Arizona have to file a

Answer 112

Preliminary 20-day notice

All contractors and suppliers have to provide a preliminary 20-day notice before they file a lien. They submit these within 20 days of first providing labor or materials.

Question 113

The Residential Lead-Based Paint Hazard Reduction Act requires sellers, landlords, and their agents to ______ any known lead hazards in the home.

Answer 113

Disclose

Question 114

Property ownership gives the title holder a bundle of rights. What’s significant about the concept of a bundle of rights?

Answer 114

It describes the ability to separate one right from the others while leaving the rest of the bundle intact.

Question 115

The agreements that allow out-of-state licensees to receive commissions from Arizona licensees are established between which two parties?

Answer 115

The out-of-state licensee and an Arizona licensed broker

Question 116

Prior to signing the closing documents, what should the parties have already done?

Answer 116

Assured themselves that the conditions and contingencies of the purchase agreement have been met.

Study the closing process and what takes place prior to it.

Question 117

Arizona designated broker Rhonda decides to keep all of her transactional records in electronic format. Which of the following is true about Rhonda’s new practice?

Answer 117

She must be able to produce the records within 24 hours.

Question 118

Janson Industries worked with architects and engineers to draw up plans for a planned community that will include residential, shopping, dining, and entertainment uses within the community itself. As a property that falls under mixed-use zoning, what does the company have to provide to the planning commission?

Answer 118

Plat map

Question 119

What is an active management area in Arizona?

Answer 119

An area where groundwater is carefully managed

Question 120

Whose role is it to develop the comprehensive master plan?

Answer 120

Planning board members

Question 121

Who establishes real estate commission rates?

Answer 121

The licensee or brokerage and the client

Question 122

Camille has a listing for a townhome, and appoints Ivy as her sub-agent. Ivy brings a buyer customer to the transaction, and the buyer purchases Camille’s listing. What’s true about the agency relationships in this situation?

Answer 122

Ivy is Camille’s sub-agent and owes loyalty to the seller.

Question 123

It’s been more than two weeks since Mickey removed a former tenant’s belongings from an abandoned dwelling unit. Mickey decided to list some of the abandoned furniture on a local ad board and donate the rest to a local charity. What must Mickey do with any proceeds he receives from the sale of the furniture?

Answer 123

Apply them toward outstanding rent.

What can he do with the money that is left over?

Question 124

What’s the relationship between the Loan Estimate and the Closing Disclosure?

Answer 124

Lenders issue the Loan Estimate within three days of receiving an application, and Closing Disclosure figures should be similar to the Loan Estimate.

Lenders first issue the Loan Estimate; borrowers can compare the Closing Disclosure, issued before closing, to the estimate’s figures.

looker further into this.

Question 125

Of the institutions listed, which of these is viewed only as a secondary mortgage market player?

Answer 125

Fannie Mae

look further into this.

Question 126

A group of 26 different families have shared ownership of a vacation condominium. Each family spends two weeks annually at the condominium. Legally, the condominium is considered a

Answer 126

Timeshare property

Question 127

Assuming that the seller pays for the date of closing, if closing is July 7, how many days will the seller be responsible for paying using a statutory year?

Answer 127

187 days

Look into this as well there is two different ways to use the system

Question 128

After a trustee’s sale, the title is conveyed

Answer 128

By the trustee by recording a trustee’s deed with the county

The trustee records the trustee’s deed with the county.

Question 129

When is cooperating with your customer’s agent not a good idea?

Answer 129

Cooperation isn’t in the best interest of your client.

Question 130

In the case of a ______, the lease terms, including the rent, may not be changed during that time.

Answer 130

Tenancy for a specific term

Question 131

Lisa is holding an open house for her client, Tim. Several couples stop by. Aarthi and Ram don’t interact with Lisa at all. Gina and Reggie talk with Lisa about the property; they’re not working with another licensee. Marcus and Marvin stop by and talk with Lisa about the property; they’re already working with another licensee. Which parties are considered consumers at this point?

Answer 131

Aarthi and Ram

**Tim is Lisa’s client; Gina and Reggie and Marcus and Marvin both talk with Lisa about the property, so they could be considered customers. Aarthi and Ram made no contact with Lisa, so are most likely to be termed consumers at this point.
**

Question 132

When specializing in distressed properties, it’s a good strategy to __

Answer 132

Identify potential properties quickly so the competition pool is small

Question 133

Why do brokerage firms purchase general liability insurance as a risk management method?

Answer 133

To transfer risk

A real estate firm purchases insurance in order to transfer the risk of financial loss to the insurance carrier.

Question 134

Where can a party reviewing a title commitment find requirements that must be met before a title insurance policy will be issued?

Answer 134

Schedule B-1

Question 135

When you’re involved in a transaction as a licensee, who are the third parties?

Answer 135

Anyone involved in the transaction who isn’t your client

Question 136

James is a trustee for an estate that’s being sold. What are the license requirements for James under Arizona statute?

Answer 136

There is no requirement to have any type of real estate license.

Question 137

Construction loans are a type of ______ financing.

Answer 137

Interim

Question 138

What makes distressed properties a valuable niche for investors?

Answer 138

The discounted price

Question 139

Why might a property owner ask you to prepare a report showing the trend in rental delinquency rates?

Answer 139

To assess the adequacy of tenant income screening processes

Question 140

Which of these is an example of legal single license dual agency?

Answer 140

You represent both the buyer and seller in a single transaction with appropriate consent from both.

Legal single license dual agency is a situation where a single licensee represents both the buyer and seller in a given transaction with informed consent in place, the broker’s permission, and the state’s blessing.

Question 141

Administrative agencies like the Arizona Department of Real Estate create regulations that supplement laws. What are these regulations called in Arizona?

Answer 141

Arizona Administrative Code

The rules in the state of Arizona are called the Arizona Administrative Code.

Question 142

In marketing her new listing, Alice asks the photographer to “touch-up” the photos of the house so that the old roof and siding look as though they are new. Which statement about this is true?

Answer 142

This is deceptive advertising for which both Alice and her broker may be disciplined.

Question 143

The mortgage industry is made up of the primary and secondary markets. What’s the role of the primary mortgage market?

Answer 143

To originate and fund mortgage loans to consumers

look further into primary and secondary

Question 144

Ginnie’s Aunt Becca listed the old family mansion with Ginnie. Ginnie put it on the market for Becca, but then she and her cousins talked with Becca and decided they wanted to keep the property in the family. What’s the best way to terminate the agreement?

Answer 144

Ginnie and Becca can mutually agree to terminate the agreement.

Question 145

Latrell purchased an old warehouse with the intent to create shared studio space for artists. However, he didn’t perform due diligence before the purchase, and it turns out that there are hazardous materials that need to be cleaned up first. Latrell took the prior owners to court, and the court ruled that Latrell is responsible for the costs of cleanup. What kind of liability is this?

Answer 145

Strict liability

Look at different liabilities

Question 146

Which of the following is a promise from the borrower to repay a certain sum of money to another party (the lender or holder of the note) under specified terms?

Answer 146

Promissory note

Question 147

Which entity regulates contractor Wayne from Millwork Options?

Answer 147

Arizona Registrar of Contractors

The Arizona Registrar of Contractors licenses and regulates contractors.

Question 148

Which of the following entities oversees the Arizona Department of Real Estate?

Answer 148

The Real Estate Commissioner

Question 149

Kevin and Regina sold their property to Vickey using a general warranty deed. Which one of these statements is true?

Answer 149

Vickey is the grantee.

Question 150

What is general warranty deed?

Question 151

Reuben purchased a property from a seller who gave him a general warranty deed. What’s true of Reuben’s deed to this property?

Answer 151

The deed provides the greatest protection available from a grantor to a grantee.

Question 152

Which of the following describes a right-of-way easement?

Answer 152

Land that a railroad company runs its track through

Right-of-way easements allow pass-through and can be as short as a driveway or as long as a railroad track.

Question 153

Shelly found a malnourished dog in a rental unit that was abandoned by her tenant. She decided to take the dog to a veterinarian and board it until it recovered. Since she took this action, what else must Shelly do?

Answer 153

Keep record of the name and location where the dog is boarded.

Question 154

Which of the following is an advantage of living in a PUD?

Answer 154

Easy access to amenities

Question 155

What is a PUD?

Question 156

When a consumer suffers damages resulting from the real estate-related activities of an Arizona licensee, the consumer has ______ year(s) from the time of the incident to file legal proceedings against the licensee.

Answer 156

FIVE

Question 157

Arizona’s solar energy exemption protects consumer’s rights to

Answer 157

Install/use solar energy devices

Question 158

Ricky Nubbins is three months behind in his rent and has received several reminders from the landlord that the rent is past due. As a result, the landlord has begun working through proper channels to legally end Ricky’s lease before the contract end date. The landlord is terminating his lease through _

Answer 158

Eviction

Question 159

According to the FTC privacy rule, a landlord or property manager would have to obtain a tenant’s written consent before sharing the tenant’s personal information with which of the following?

Answer 159

An unaffiliated third party

Question 160

The Institute of Real Estate Management, an affiliate of the National Association of REALTORS®, offers a specific certification program. What designation would you earn upon completing this program?

Answer 160

Certified Property Manager

Question 161

What is Title commitment

Answer 161

A title commitment is document by which a title insurer discloses to all parties connected with a particular real estate transaction all the liens, defects, and burdens and obligations that affect the subject property. It lists all requirements that must be met before a title company can insure a title as “marketable” or a loan as having a certain priority.

Question 162

Land

Answer 162

The earth’s surface extending downward to the center of the earth and upward to infinity, including permanently attached natural objects

Question 163

Real estate:

Answer 163

Land, plus all things permanently attached to it naturally or artificially

Question 164

Real property

Answer 164

Real estate, plus the interests, benefits, and rights included with real estate ownership

Question 165

Improvements

Answer 165

any positive permanent change to land that augments the property’s value. ex sidewalk, fence.

Question 166

Fixtures

Answer 166

anything permanently attached to the land or to permanent structures on the land) are part of real property, and are included with a sale of real property unless the parties negotiate differently.

Question 167

What are the bundle of rights

Answer 167

Is ownership right that includes
the right of possession
the right of control
the right of exclusion
the right of enjoyment
the right of disposition (right to convey or sell the property)

The owner is the one who has the authority to separate each of these rights from the land by selling the right to another person.

Question 168

What is appurtenance

Answer 168

is when something becomes a permanent addition to the property,

Question 169

Profit

Answer 169

In this usage, profit is a legal term that means the right to take products out of the soil.

Question 170

License

Answer 170

A license is permission to do something on another’s land without actually possessing any interest or ownership in the land; it’s a temporary privilege that is neither assignable or inheritable. License may be revoked by the owner at any time unless a termination date has been specified by contractual agreement.

Question 171

Personal property is also know as

Answer 171

chattel

Question 172

Five test to determine whether something is a fixture (in which case it’s classified as real property).

Answer 172

MARIA

Method of annexation (how the item is attached to the land

Adaptability of item (determine whether removing the item will change how the land is used

Relationship of the parties
Intention in item placement
Agreement of parties

Question 173

What is a trade fixture

Answer 173

is a piece of equipment or other item that is on or attached to the real estate which is used in a trade or business

Question 174

What are Emblements?

Answer 174

re growing crops, such as corn, vegetables, grain, etc., which are produced annually. These are usually not considered fixtures, but are the personal property of the person who planted them

Question 175

What are manufactured Homes?

Answer 175

A manufactured home is a home that’s constructed with a permanent chassis and wheels because it’s made to be transported.

Question 176

According to ARS 42-15203, what can a person who owns both the manufactured home and the land on which the manufactured home is located file?

Answer 176

Affidavit of Affixture with the Recorder of the county in which the real property is located.

Question 177

What is affidavit of Affixture?

Answer 177

is a document that is used to change the status of a manufactured home from personal property to real property. If the manufactured home for which an Affidavit of Affixture has been filed is removed or sold separately from that parcel of land, then the manufactured home must be re-titled as a motor vehicle.

Question 178

What is Estate in Land?

Answer 178

is the amount, type, and extent of an owner’s interest in real property.

Question 179

What is freehold estate

Answer 179

you have exclusive rights to the property for an undefined length of time

Question 180

What is fee simple estate

Answer 180

a landowner’s complete and total ownership of a piece of land and all properties on it

Question 181

What is fee simple absolute estate

Answer 181

the owner retains both title and possession to the land regardless of any future events or circumstances. is form of ownership. Provides the highest possible interest in property.
Grants the owner all legal rights with no limitations other than public or private restrictions (e.g., zoning laws).

Question 182

What is fee simple defeasible estate

Answer 182

he property holder owns the property with all legal rights, but subject to a condition.
If the condition is breached, the property may go back to the original owner.

Question 183

What is fee simple determinable estate

Answer 183

is an estate granted using a phrase such as, “so long as,” “while,” or “during” a stated condition if broken the original owner is reverter and possesses the property back

Question 184

fee simple subject to a condition subsequent

Answer 184

an estate given on the condition that the owner does or doesn’t take a specific action, using phrases such as, “on condition that” or “provided that.”

Question 185

What is life estate

Answer 185

is also a freehold estate, which comes with the whole bundle of rights, but ownership is limited to someone’s lifetime (either the title holder or another person specified by the person granting the life estate). There’s no specified termination date, because a person’s lifetime is undefined. Upon the death of the person specified (the life tenant), the estate reverts immediately to another owner (the remainderman).

created by a deed that gives the land to the person “for life” and identifies what should happen to it after that person dies.

Question 186

What is conventional life estate

Answer 186

is created by the property owner, who grants the property for the duration of an individual’s lifetime

Question 187

What is reversion

Answer 187

means the property reverts to the original owner (the one who granted the life estate) when the life estate ends. An example of ordinary life estate with reversion: Jean granted a life estate to Phillipe. When Phillipe died, the property reverted to Jean, who owns it as a fee simple estate.

Question 188

What is remainder

Answer 188

means the original owner named another individual as the remainderman who will receive the property when the life estate ends. An example of ordinary life estate with remainder: Jean granted a life estate to Phillipe and named Raoul as remainderman. When Phillipe died, the property was transferred to Raoul as a fee simple estate.

Question 189

What is Pur autre vie with reversion or remainder:

Answer 189

means “for another’s life.

lasts for the lifetime of someone other than the life tenant who was named when the life estate was established.

Question 190

what is homestead

Answer 190

a dwelling in which a person resides.

Question 191

What is Dower

Answer 191

gives the widow life estate rights upon the death of her husband

Question 192

what is curtesy

Answer 192

gives the widower life estate rights upon the death of his wife.

Question 193

What is leasehold estate (also known as a non-freehold estate

Answer 193

is a possessory interest (or leased interest) in property that has a specified end date; it lasts for a definite length of time.

Question 194

estate for years

Answer 194

is a form of a lease. it simply means a definite duration with a specific start and stop date that can be for any length of time, even days or weeks.

That terminates automatically
if the owner or tenant dies, the lease isn’t automatically terminated.

tenant signs a lease to live on the property for a specified period of nine months

Question 195

what is estate at will aka tenancy at will

Answer 195

It’s a lease hold. oral agreement or a written agreement with no specific ending date. Either party may terminate it at will, and it’s not inheritable. At the death of either party to the lease, the leasehold automatically terminates.

Question 196

what is holdover tenant

Answer 196

tenant continues to occupy property after lawful authority has expired.

Question 197

What is periodic estate

Answer 197

is a form of a lease. automatically renews itself for a given period (e.g., six months or any other negotiated length of time) in successive tenancy unless one party terminates. This may also be referred to as an inheritable leasehold estate.

Question 198

What is Joint Tenancy?

Answer 198

Creates an equal, undivided interest between the co-owners. It can only be created if these conditions called the four unities are present.

Joint tenants may each sell their ownership interest without the other tenants permission; however, the buyer of that share doesn’t become a joint tenant, because the new buyer didn’t receive title at the same time as the other tenants, breaking the four unities.

new owner is tenant in common

remaining tenants continue as joint tenants with the right of survivorship shared between them.

it doesn’t include the right of inheritance

Question 199

What are the four unities in Joint Tenancy

Answer 199

Possession
Interest (ownership is divided equally among the owners)
Time (Ownership interest is acquired at the same moment. New owners cannot be added at a later time unless a new joint tenancy is created.
Title Each of the joint tenants acquires title to the property from the same source (i.e. a deed)

Question 200

What is survivorship?

Answer 200

If two parties jointly own a property that has a right of survivorship, when one of them dies, their share property goes directly to the other owner.

Question 201

What is deficiency?

Answer 201

If a property sells at a foreclosure sale for less than what’s owed on the loan, the balance remaining on the loan, along with any other fees owed to the lender.

Question 202

How is deficiency determined?

Answer 202

by using the greater of the property’s fair market value or the foreclosure sale price and subtracting this from the amount owed to the lender.

Question 203

When does Anti-Deficiency apply in AZ?

Answer 203

AZ doesn’t allow deficiency judgments for most residential property after a trustee’s sale or sheriff’s sale

Specifically, the law doesn’t allow deficiency judgment for property that’s smaller than 2. 5 acres and has a one- or two-family dwelling on it.

Question 205

What does Office Exclusives refers to?

Answer 205

Listing agreements in which the seller has instructed that the listing firm may only be marketed within the brokers firm and not be entered into the MLS and cannot be marketed publicly.

Question 206

What is Land Contract (aka contract for deed, installment contract or land sales contract)?

Answer 206

Buyers pain money to seller on monthly bases instead of getting a mortgage from bank.

Title remains with the seller
Buyer has equitable title

Once buyer finishes the payments, he receives the title.

Question 207

What is a Deed?

Answer 207

the actual legal document that would transfer the ownership (title) of a property from one person to another

Question 208

What is Deed in lieu of foreclosure or short sale?

Answer 208

The bank agrees to accept the deed to the property in lieu of a foreclosure sale

Question 209

What is grantee?

Answer 209

the buyer, recipient, new owner, or lien holder

Question 210

What is Grantor?

Answer 210

is a person that transfers ownership rights of a property to another person.

Question 211

What are prorations used for?

Answer 211

To divvy up expenses on the property at closing.

Some items are paid by the seller and some by the buyer.

Question 212

What is Appraisal?

Answer 212

a process through which a real estate appraiser determines the fair market value of a home

There is no price range for appraisal it has to be a definitive number.

Question 213

Why does real estate industry use appraisal?

Answer 213

to ensure that a property’s value supports its given loan amount.

Question 214

What is automated valuation model (AVM)

Answer 214

software-based tool that’s used in residential and commercial real estate to determine property value.

Question 215

What is comparative market analysis (CMA)

Answer 215

Estimates a home’s price based on recently sold, similar properties in the immediate area.

Salesperson or broker creates the reports to help sellers set listing prices for their homes and help buyers make competitive offers.

Question 216

What is Broker’s price opinion (BPO)

Answer 216

Is the estimated value of a property as determined by a real estate broke or licensee

Prepared for lenders or for relocation companies

charge must be paid of 50-200 to the licensed broker.

Question 217

Who can preform appraisals?

Answer 217

Licensed appraiser

they use sales comparison approach and cost approach

Appraisals are detailed and can cost hundreds of dollars

prepared for lenders, buyers, sellers and sometimes courts

Question 218

What is Market Value

Answer 218

This is the price that the property would be expected to sell for after suitable exposure to the market

Question 219

What is Mortgage Value

Answer 219

The mortgage value is the value of the property set by means of an appraisal carried out by an accredited company

The mortgage value will determine how much the Bank will lend for the transaction.

Question 220

What is investment value?

Answer 220

This type of value helps a buyer determine if the rate of return on a property will be as expected.

Question 221

What is Going-Concern Value

Answer 221

This is the value of the property when it’s functioning as a business and is expected to continue doing so into the future.

Question 222

what is salvage value

Answer 222

This value is considered when a structure that’s at the end of its useful life may be demolished, but some value can be realized if the improvements are sold.

Question 223

What is Insured value

Answer 223

This is the amount it would cost to replace or rebuild a house that’s damaged or destroyed

Question 224

What is liquidation value

Answer 224

This is the value of a property when it is not given sufficient time to sell on the open market. Typically, liquidation value is lower than market value. If a property is subject to foreclosure or a rapid sale, liquidation value comes into play. This method of sale can affect the value of other homes in the neighborhood.

Question 225

In use Value

Answer 225

This determines the value of a property to the person using it, rather than to a typical buyer. For example, a family estate with generations of history is likely of more value to those living there than it would be to a new buyer.

Question 226

What is assessed value?

Answer 226

This is the amount the local taxing authority thinks a property is worth.

Question 227

What are the four factors that influence value?

Answer 227

DUST:
Demand how popular or desirable a property is.
Utility the property’s function
Scarcity relates to market supply
Transferability: The ease with which another person can purchase the property

Question 228

What are the principles of value?

Answer 228

Anticipation future benefits it is expected (anticipated) to provide :

Change: RE values are subject to constantly changing conditions

Competition: Supply and Demand

Conformity Value is created and maintained when the characteristics of a property conform to its neighborhood.
Ex. , energy-efficient, seven-bedroom home built in the middle of a neighborhood of older three-bedroom homes is valued differently

Contribution: How a change in a property impact s the value as a whole.

Highest and best use: This describes a property’s most profitable use that is both legal (in other words, conforms to zoning) and economically feasible.

Plottage This term describes the joining or assemblage of two neighboring land parcels; increases the property value.

Rgression ower-quality property that’s located adjacent to a higher-quality property can diminish the value of the higher-quality property.

Progression Progression is the bump in value that a lower-value property gets by being near a higher-value property.

Substitution A property’s value is determined by what it would cost to purchase a similar substitute property

Question 229

What are the four real estate cycles?

Answer 229

Growth: The neighborhood is under development and property values will steadily increase.

Equilibrium: This stage is also known as “stability.” It’s characterized by steady property values.

Decline the neighborhood declines in desirability and value. Homes are more likely to be rented rather than owner-occupied, and the overall level of property maintenance is lower.

Revitalization This stage is also known as “rehabilitation” or “renewal.” The neighborhood gains a renewed appeal (can occur for many reasons, such as access to jobs or amenities) and affordable prices allow people to purchase and renovate the homes.

Question 230

What is directional growth

Answer 230

Property located with an up and coming neighborhood may be valued higher than a similar home in neighborhood that seems to be in decline

This is the general trend toward which a neighborhood appears to be headed.

Question 231

What land characteristics that can impact property value

Answer 231

Orientation: The “siting” of a house—how it’s oriented to the sun—can have both benefits and drawbacks, depending on the climate and time of year.

Excess Land When a property has excess land (land beyond the subject property site), an appraiser must describe it in the appraisal but may not assess its value. Excess land doesn’t significantly affect a property’s value, but it provides potential for the land to be subdivided and sold.

Percolation This describes how well water drains through the soil.

Compaction : Compacted soil affects soil quality and inhibits plant growth. It also impedes proper drainage, which can damage foundations and cause basement flooding.

Question 232

What is Sales Comparison Approach

Answer 232

This approach to determining value bases the subject property’s value on the value of similar properties on the market.