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AZ Realtor > License > Flashcards

License Flashcards

1
Q

When a broker earns a commission but seller refuses to pay what can broker do?

A

Let the transaction close then sue.

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2
Q

What is blind ad?

A

Ad that does not list brokerage.

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3
Q

When seller who has listed property declares Chapter 13 what happens to listing?

A

Listing must be ratified by bankruptcy court.

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4
Q

Sold as is means ______

A

Seller will not make any necessary repairs.

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5
Q

Is trustee appointed for someone who files Ch 7 bankruptcy?

A

Yes

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6
Q

When can licensee place a sign on property?

A

Written permission from owner.

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7
Q

How long must rejected offers be kept?

A

One year from the day the offer was rejected.

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8
Q

Does the commissioner’s rules dictate specific lettering size?

A

No.

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9
Q

What happens to listing during Ch 7 bankruptcy?

A

Must be court ratified.

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10
Q

During chapter 7 bankruptcy what is salesperson commission considered?

A

Unsecured creditor claim.

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11
Q

Can a real estate broker/salesperson do an appraisal?

A

No.

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12
Q

When can you contact a For Sale by Owner?

A

When you have a buyer.

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13
Q

adjusted basis

A

adjusted purchase price

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14
Q

Formula adjusted basis

A

Basis + Acquisition Costs + Capital Improvements - depreciation = Adjusted basis

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15
Q

Adjusted Sales Price

A

Sales price - Cost of sale (commissions and closing costs)= adjusted sales price

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16
Q

Basis

A

Purchase Price

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17
Q

Blue Sky

A

protects public from being sold illegal partnership

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18
Q

boot

A

cash or personal property person puts in to equal out exchange of property

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19
Q

C Corp

A

double taxation, artificial person, veil of protection

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20
Q

Limited partnership

A

general members + other members, limited say, joint and several liability, pass through taxes (k-1)

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21
Q

S-Corp

A

1 or more stockholders, 100 max and American citizens, veil of protection, pass through tax (k-1)

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22
Q

LLC

A

managing members and members, veil of protection, pass through taxes,

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23
Q

REIT

A

100 stockholder minimum, nor corp tax, capital gains tax as long as they distribute 95% of their profits

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24
Q

Securities

A

pool of money to invest, need securities license

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25
Q

Capital Gains

A

taxable profits realized from selling capital assets

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26
Q

short term capital gain

A

held for 12 months or less and taxed as ordinary income

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27
Q

long term gain

A

15%, over 400K income 20%

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28
Q

capital loss

A

can take up to $3000 a year off taxes, excess moves forward to next year

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29
Q

installment sale

A

seller must carry some or all of the financing

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30
Q

tax deferred exchange

A

trade properties and defer taxes

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31
Q

mortgage relief

A

mortgage boot during tax deferred exchange

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32
Q

starker exchange

A

exchange 1 property for multiple properties over time, once relinquish property 45 days to identify new properties, 180 (including the first 45) to COE

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33
Q

Capital gains formula

A

Adjusted sales price - adjusted basis = capital gains

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34
Q

Depreciation formula

A

purchase price(basis)- land =building value + acquisition costs=depreciation value / economic life = annual depreciation * number of years held = depreciation

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35
Q

Rate of return

A

investor’s percentage yield based on property income production.

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36
Q

cap rate

A

NOI - cap value = cap rate

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37
Q

cash on cash return

A

cash flow / $ invested = cash on cash return

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38
Q

equity build up

A

reduce principal and grow equity

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39
Q

diversification

A

having several different types of investments

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40
Q

inflation hedge

A

investment that keeps pace with inflation

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41
Q

liquid asset

A

can turn into cash quickly

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42
Q

frozen asset

A

cannot be converted into cash easily

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43
Q

Depreciation formula

A

Purchase price (basis)- land = building value + acquisition costs= depreciation value / economic life = annual depreciation * number of years held= depreciation

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44
Q

NOI formula

A

Potential Gross income- vacancies, bad debt, credit losses= effective gross income - operating expenses = NOI

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45
Q

Cash flow formula

A

NOI - debt service= cash flow

46
Q

What is Title I for FHA for?

A

home improvement loan

47
Q

What is Title II for FHA loan for?

A

purchase, construction, or refinance

48
Q

What is Title III for FHA?

A

created Fannie Mae to purchase Title I and II loans

49
Q

What is UFMIP

A

Upfront mortgage insurance premium for FHA loan

(currently) 1.75%

50
Q

When is annual premium due for FHA?

A

monthly

51
Q

encumbrance

A

anything that effects or limits the fee simple title to the property. a right or interest in a property held by one who is not the legal owner.

52
Q

easements

A

right of someone who doesn’t own property but can use it.

53
Q

deed restriction

A

private controls put on by owners of property passed on with sale of property

54
Q

attachment

A

seizing property until judgment decided

55
Q

beneficiary

A

lender in deed of trust

56
Q

collateral

A

security, property

57
Q

construction loan

A

interim, bridge, gap, swing

58
Q

deed of reconveyance

A

satisfaction for deed of trust

59
Q

draws

A

blanket loan taken out in pieces

60
Q

encroachment

A

physical trespass

61
Q

estoppel certicate

A

borrower gets when verifying balance owed on house

62
Q

inchoate

A

mechanic lien; lien in place for job not completed yet

63
Q

laches

A

past the statute of limitations

64
Q

legal title

A

trustee

65
Q

lien specific

A

lien on specific property

66
Q

general lien

A

lien on everything you own

67
Q

lis pendens

A

pending lawsuit

68
Q

lot releases

A

blanket mortgage, release lots

69
Q

mechanic lien

A

20 day advanced notice, 120 days to file from date of completion, 180 days from filed suit

70
Q

acceleration

A

mortgage is due in full ( ex after miss a payment)

71
Q

alienation clause

A

due on sale

72
Q

defeasance

A

paid of loan

73
Q

OR more

A

principal only payment

74
Q

novation

A

substituting borrower

75
Q

obligatory advance

A

draws done by date

76
Q

priority

A

who recorded first

77
Q

reduction certificate

A

lender certifies balance on mortgage

78
Q

package loan

A

real estate and personal

79
Q

trustor

A

borrower

80
Q

Who must pay for a termite inspection of a home purchased with a VA loan?

A

The seller

81
Q

what is renewal for statute of limitations?

A

90 days before 5 years runs out

82
Q

what is the legal rate of lien?

A

legal rate 1% over prime rate at time of judgment or 10%, whichever is lower.

83
Q

writ of attachment

A

document whereby court takes custody of property til settlement of case.

84
Q

what is difference between residential lien and commercial lien?

A

Residential must be in writing.

85
Q

amortized loan

A

extinguishing the loan with level payments

86
Q

installment loan

A

pay based on outstanding balance

87
Q

interest only loan

A

pay on interest only, ballon payment at end

88
Q

budget loan

A

PITI loan (principal, interest, taxes, insurance)

89
Q

graduated loan

A

negative amortization loan

90
Q

variable interest and ARM loan

A

rate is tied to index, payments change as rates change.

91
Q

equity participation loan,

A

give a low rate, if sell for profit split with lender

92
Q

reverse mortgage

A

must be over 62 and live in home

93
Q

take out loan

A

loan in place to cover home after certificate occupancy issued.

94
Q

open end loan

A

loan balance can change, open equity loan

95
Q

chattel loan

A

personal propery - like in restaurant the stove

96
Q

purchase money loan

A

seller carrybacks only

97
Q

junior (subordinate)

A

allows another lender to have a higher interest in property

98
Q

title theory

A

when the lender holds legal title to mortgage property

99
Q

lien theory

A

when the borrower has legal title to mortgage and lend is merely holder of lien

100
Q

hypothecate

A

leveraging property as collateral but using and keeping property

101
Q

promissory note

A

IOU $

102
Q

evidence of loan

A

obligation of loan

103
Q

borrower liability of loan

A

what is explained in note, amount interest %, etc.

104
Q

negotiable document in promissory note

A

can buy/sell

105
Q

why must promissory note be notarized?

A

proves you signed it of your own free will in front of witness.

106
Q

Assignment of Rents clause

A

allows the lender to collect rents after forclosure

107
Q

non disturbance clause

A

allows tenant to stay and pay rent for continuation of lease and lender to collect rents

108
Q

quiet enjoyment clause

A

benefits tenant and allows to stay and pay rent after forclosure

109
Q

What are the damages due the borrower if lender does no issue release of lien once paid off?

A

Within 30 days from last payment lender must release of pay $1000 plus damages.

141
Q

statute of limitations

A

legal period during which you may bring a lawsuit (5 years)

149
Q

writ of execution

A

enforce judgment instead of just having on record; sheriff sells your property, personal first then real estate

AZ Realtor (1 decks)

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