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Real estate > Key Facts > Flashcards

Key Facts Flashcards

1
Q

Something attached to real estate that transfers with it is an…..

A

Appurtenance

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2
Q

The act of taking property for public use is….

A

Condemnation

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3
Q

The passing of property to the state due to a lack of heirs is…

A

Escheat

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4
Q

In Arizona, a court action to take property under eminent domain must be preceded by a…….notice, which must include a(n)…..to purchase and at least one…..

A

20 days prior
Offer
Appraisal

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5
Q

The amount of footage along a street is the…..

A

Front footage

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6
Q

An area set aside by municipal authorities for a specific type of use is a….

A

Zone

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7
Q

The minimum distance from the lot line at which building can occur is a….

A

Setback

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8
Q

A use which pre-dates the zoning ordinance is a…..aka……

A

Non-conforming use

Grandfathered

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9
Q

A use granted in violation of the zoning ordinance is a…..

A

Variance

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10
Q

A burden on the title is an…..

A

Encumbrance

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11
Q

A limitation on property use created by an owner or developer is a…..

A

Deed restriction

Restrictive covenant CC&R

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12
Q

Easement held by one owner across an adjacent property is a(n)…..

A

Easement appurtenant

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13
Q

The parcel benefiting from an easement appurtenant is the….

A

Dominate parcel

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14
Q

The parcel encumbered by an easement appurtenant…..

A

Servient parcel

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15
Q

The two general involuntary lines are……and……

A

Judgment

Income tax liens

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16
Q

An easement acquired through long, continuous and hostile use is a…..

A

Prescriptive easement

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17
Q

Acquisition of ownership by hostile use of another’s property can occur by…..

A

Adverse possession

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18
Q

A money encumbrance is a….

A

Lien

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19
Q

A lien placed on real estate by operation of law is a…..

A

Involuntary lien

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20
Q

Three specific, involuntary liens are….

A

Tax
Mechanical
Assessment

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21
Q

A lien placed by the government for specific improvements such as street paving or street lights is an….

A

Special assessment

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22
Q

For most liens, priority is established by the order……and evidenced by the county recorder’s……and…….number or……number

A

Recorded
Docket
Page
Sequence

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23
Q

HOA liens are….. to taxes, special assessments and mortgage liens.

A

Subordinate

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24
Q

The law that requires certain contracts be in writing to be enforceable is the….

A

Statute of frauds

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25
Q

An invitation to enter into a contract is an…..

A

Offer

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26
Q

The 6 essential elements of a contract are…….

A 
Competent parties
Consideration
Offer and exception (meeting of the minds)
Lawful purpose
Be in writing
Proper description of property
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27
Q

A contract giving exclusive rights to buy or lease a property within a specific time for a specific price and terms is an…..

A

Option

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28
Q

A contract requiring one person to give another the initial opportunity to buy or lease a property is a…..

A

Right of first refusal

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29
Q

A contract which contains all the essential elements is a….

A

Valid contract

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30
Q

A contract which has no force or effect on any party is….

A

Void

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31
Q

A contract that is worded so loosely or vaguely that it is unenforceable is an….

A

Illusory contract

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32
Q

A listing in which the broker will be paid only if she finds a buyer is an….

A

Open listing

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33
Q

An exclusive listing in which the seller reserves the right to find a buyer and not pay the broker is an…..

A

Exclusive agency listings

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34
Q

A listing in which the broker also has the right to buy the property is an…..

A

Option

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35
Q

An employment contract in which the buyer hires the broker is a….

A

Buyer broker agreement

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36
Q

The duty that requires an agent to follow a client’s instructions is….

A

Obedience

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37
Q

The 7 ways by which an agency may be terminated….

A 
Performance
Mutual agreement
Expire of term
Revocation by the principal or agent
Destruction of property
Bankruptcy
Death
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38
Q

Does death of either party terminate a lease or purchase agreement?

A

No

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39
Q

The three purposes of a purchase agreement are….

A

Copy of offeror’s offer
Legally binding contract upon acceptance
Escrow instructions

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40
Q

When licensees purchases or sells a property for themselves they must disclose…..

A

Their licensed status

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41
Q

The acceptance of an offer and communication of that acceptance to the offer results in a…..

A

Binding contract

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42
Q

Once a purchase agreement becomes binding, the buyer is said to have….title.

A

Equitable

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43
Q

Earnest money is usually held by the…….broker.

A

Buyers

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44
Q

The amount of the earnest money is…….

A

Negotiable

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45
Q

In an Arizona purchase agreement, the form of earnest money must……

A

Be stated in agreement

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46
Q

In Arizona, unless otherwise agreed to.. …..the broker must…..place earnest money in a…… ……or in……

A

In writing
Immediately
Trust account or escrow

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47
Q

A provision which makes a contract contingent upon the buyer obtaining financing is called…….

A

Mortgage contingency

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48
Q

Evidence of termite damage could be…….or………

A

Rotten wood

Cellulose debris

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49
Q

The phrase that specifies the Importance of completing the terms of a contract on a timely basis is…..

A

Time is of the essence

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50
Q

The evidence to a buyer that the title is clear is a…..

A

Title insurance policy

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51
Q

An amount that was pre-determined by the parties to be the total amount of compensation an injured party will receive if the other breaches the contract is known as….

A

Liquidated damages

52
Q

A court order given to enforce the provisions of a contract is…..

A

Specific performance

53
Q

The risk of loss to a property prior to closing is born by the….

A

Seller

54
Q

Latin for “let the buyer beware”is….

A

Caveat emptor

55
Q

The legal remedy of canceling a contract and returning the parties to their original positions prior to entering into the contract is…..

A

Rescission

56
Q

A contract provision in which one party agrees to protect another from damages or lawsuits is a(n)…..

A

Indemnification clause

57
Q

The document that serves as evidence of the debt is the….

A

Promissory note

58
Q

A promissory not IS or IS NOT usually recorded.

A

Is not

59
Q

The document that hypothecated real property as security for debt is the…..or…….

A

Mortgage

Deed of trust

60
Q

The mortgage or deed of trust is usually recorded to establish…….of the lien.

A

Priority

61
Q

A loan in which the monthly payment of principal and interest is level and constant is a……..

A

Fully amortized loan

62
Q

Interest on real estate loans is usually……….interest.

A

Simple

63
Q

A loan in which the payment includes principal, interest, taxes and insurance is known as a…….

A

Budget loan

64
Q

In a budget loan, the taxes and insurance are held in an…….account, aka…..account or……account.

A

Escrow
Reserve
Impound

65
Q

A loan in which the payments are interest only is a……loan, aka a ……..loan.

A

Straight

Term

66
Q

A loan in which the payment does not even cover the interest due and which causes the principal balance to increase is a…………loan.

A

Negative amortization

67
Q

The pattern of payments ( payment, interest rate, etc.) are found in the………

A

Promissory note

68
Q

An FHA loan is insured by the………

A

Federal Housing Administration

69
Q

A VA loan is guaranteed by the…….

A

Department of Veterans Affairs

70
Q

A loan in which the seller is the lender is a………..aka a…………

A

Seller carry back

Purchase money

71
Q

A seller carryback loan. In which a seller remains liable for an existing loan is a…….

A

Wraparound

72
Q

A loan which allows a borrower to borrow more money within the same loan is a(n)………

A

Open end

73
Q

A clause that allows a lender to make an extra charge if the loan is paid off early is…….

A

Pre-payment penalty

74
Q

A clause in a mortgage that states the mortgage is null and void when the note is paid off is a…….

A

Defeasance

75
Q

The interest rate that is specified in the note is known as the…… aka the…….or the……..

A

Contract
Nominal
Face

76
Q

In an FHA loan, the lender is…….. against loss.

A

Insured

77
Q

A borrower on an FHA loan pays an……..to insure the lender against loss.

A

Mortgage insurance premium

MIP

78
Q

An FHA appraisal is also known as a……….

A

Conditional commitment

79
Q

FHA loans are for……..occupied properties.

A

Owner occupied

80
Q

FHA loans HAVE or DO NOT have pre-payment penalties.

A

Do not

81
Q

In a VA loan the lender is……..against loss.

A

Guaranteed

82
Q

When a VA loan is paid off, the veteran’s eligibility is……..

A

Restored

83
Q

The typical loan-to-value ratio on a VA loan is………

A

100%

84
Q

VA loans are for………occupied properties.

A

Owner-occupied

85
Q

An uninsured conventional loan typically requires the down payment to be……..% of the purchase price.

A

20%

86
Q

On an insured conventional loan, the insurance premium is abbreviated……or………

A

MI

PMI

87
Q

Making false statements to obtain a loan is………..

A

Loan fraud

88
Q

Three ways which loan fraud could occur are:

A

Incorrect income
Gift letter
Cause lender to insure higher loss

89
Q

When a buyer takes over payments and liability for an existing loan, it is an………

A

Assumption

90
Q

The process of re-writing an existing loan, substituting a new borrower and releasing the former borrower of liability is………

A

Novation

91
Q

A document given by a lender to buyer who is assuming an existing loan to verify the loan terms is a………

A

Reduction certificate

92
Q

The process of selling a loan to another lender is……

A

Assignment

93
Q

A company to whom a borrower makes payments and who processes the payments on behalf of the owner is a………

A

Loan servicer

94
Q

The truth in lending act require disclosure of the interest rate and financing costs in the form of an…….,abbreviated as…….

A

Annual percent rate

APR

95
Q

Advertising only the……. is not considered to be a trigger term.

A

APR

96
Q

A borrower has a three day right to rescind a loan on what type of a loan?

A

Refinance of a personal residence

97
Q

RESPA requires that a borrower be given a publication that explains………..

A

Closing cost

98
Q

Under RESPA, a borrower must be given a final accounting of the transaction through the document known as CFPB,s…………., formerly known as the………

A

Closing disclosure

HUD-1 settlement statement

99
Q

RESPA applies to 1-4 family properties financed with a………..

A

Federal related loan

100
Q

RESPA does not apply to………loans.

A

Seller carry-back

101
Q

RESPA prohibits loan servicers from holding excess money in………

A

Escrow accounts

102
Q

RESPA requires disclosure of AfBAs which stands for………

A

Affiliated business arrangements

103
Q

RESPA prohibits kickbacks or unearned fees from………

A

Settlement services provider

104
Q

Under RESPA, a seller cannot require a buyer to use a specific…….

A

Title insurance company

105
Q

The federal law that protects the public from the reporting of inaccurate credit information is the……..

A

Fair credit reporting act

106
Q

Under the………act consumers have the right to review their credit reports and correct inaccurate information.

A

Fair credit reporting act

107
Q

The penalty for violating the DO NOT CALL laws can be as high as……. dollars per call.

A

$16,000

108
Q

The federal laws that prohibit discrimination in the sale, rental, advertising and financing of housing is the……….

A

The fair housing act

109
Q

Although there are four exemptions in the 1968 law, fair housing laws always apply in the sale or rental of a home if a………….is involved in the transaction.

A

Real estate agent

110
Q

In advertising residential property for sale or rent, photos or illustrations should represent……..

A

Cross section of the entire population

111
Q

HUD must attempt to……….the dispute.

A

Conciliate

112
Q

A person who experiences discrimination may take action in federal court within……

A

2 years

113
Q

…..of the Arizona constitution gives licensees the authority to prepare all types of real estate contracts.

A

Article 26

114
Q

The……. are not law but have the force and effect of law on real estate licensee’s.

A

Commissioners rules

115
Q

The four duties of the real estate commissioner are:

A

Promulgate
Audit
Manage
Investigate

116
Q

A real estate broker is defined in law as someone who performs real estate services for……. and for……..

A

Another

Compensation

117
Q

Failure of a broker to notify the commissioner of a change of business address automatically………

A

Terminates the brokers license

118
Q

A branch office must be managed by a……..or…….

A

Salesperson

Broker

119
Q

A salespersons or brokers license must be placed on active or inactive status with in…….from……

A

One year

Passing state exam

120
Q

After a license has expired, the licensee has a ……month grace period to renew.

A

12

121
Q

A temporary brokers license may be issued for a period not to exceed……days to surviving spouse, next of kin or personal representative of a deceased broker or a broker who is……..

A

90

Incompetent or disabled

122
Q

Unless otherwise stated, a broker must immediately place all monies entrusted to the broker in either a neutral…..depository in Arizona or in a trust fund acct. with a………located in Arizona.

A

Escrow

Federal insured depository

123
Q

When depositing a clients monies in a trust acct. the………does not need to be on the deposit slip.

A

Brokers name

124
Q

Complete records of monies received by a broker must be maintained in the………or………..

A

Main office

Branch office

125
Q

The type of accounting principles a broker must use are called……..

A

GAAP Generally Accepted accounting Principal

126
Q

An action for collection of compensation may be taken in the…..

A

Court

127
Q

The commissioner may issue a………..to a person who is violating statute or rule through some act, practice or transaction.

A

Cease and desist order

Real estate (5 decks)

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