Midterm Exam 1 Flashcards
When is a commission earned in a real estate contract?
a.
At the time the property is recorded
b.
When the broker approves the full and complete file and releases payment to escrow
c.
Upon successful close by the escrow agent
d.
At the time the sale is procured
d.
At the time the sale is procured
Thelma buys a townhouse in downtown San Francisco for $1,000,000 and has full control and ownership of it. What type of estate would this most likely be called?
a.
Estate for years
b.
Freehold Interest
c.
Lease option estate
d.
Periodic Estate
b.
Freehold Interest
Which ones of the following examples would not be eligible for a designated brokers license?
a.
A sales person who has been working in Arizona Real estate for 4 out of the past 5 years
b.
An out of state licensee who had a brokers license last in 2017
c.
A law professor who has been working for a land broker since 2015 as their licensed sales agent
d.
A 21 year old who has had their license but does NOT have a college degree
b.
An out of state licensee who had a brokers license last in 2017
What are the two types of land characteristics
a.
Physical and Economic
b.
Valuable and Durable
c.
Personal and Valuable
d.
Viable and Economic
a.
Physical and Economic
The commissioner can not possess which of the following items while he/she is acting as the head of the Department of Real Estate?
a.
An out of state business license
b.
Any interest in a real estate brokerage
c.
A law degree
d.
A timeshare
b.
Any interest in a real estate brokerage
It is possible for this to “split off” or “transfer”, what is it?
a.
Leasehold options
b.
Mechanics liens
c.
Subservient easements
d.
Gas rights
d.
Gas rights
During a sale of a farm in Kansas, the owners of the farm included in the sale the tractor and the plow. These items would be considered
a.
Intangible Property
b.
Transferable
c.
Chattle
d.
Real Property
c.
Chattle
Arizona has legal life estates in the homestead protection laws. What are the limits for Arizona Homestead?
a.
The first $250,000 of equity is protected for a couple
b.
The first $250,000 of equity is protected for an individual
c.
The first $150,000 of equity is protected in a primary residence
d.
The first $150,000 of equity is protected for a couple who share a primary residence
c.
The first $150,000 of equity is protected in a primary residence
Real Estate agents find resources on how to operate safely and stay within the law by reviewing all of the following except
a.
Arizona revised statutes
b.
Substantive policy statements
c.
The AZ revised statutes critical update page
d.
Quarterly bulletin published by the Real Estate Division
d.
Quarterly bulletin published by the Real Estate Division
The Arizona State Constitution has _____ total Articles?
a.
30
b.
20
c.
26
d.
32
a.
30
By recording the deed, owners are giving what
a.
Actual Notice
b.
Restrictive Notice
c.
Constructive Notice
d.
Factual Notice
c.
Constructive Notice
An Escrow Agent’s duties include all of the following except?
a.
Acting as a Notary for buyer and seller
b.
Preparing settlement statements
c.
Collecting loan documents
d.
Negotiating closing costs
d.
Negotiating closing costs
In addition to the requirement to be fingerprinted, what is another requirement to obtain a real estate license in the State of Arizona?
a.
Must take a contract writing course
b.
Showing ‘proof of expertise and experience’ on form LI-299
c.
High school degree at a minimum
d.
Be a resident of Arizona for a minimum of 60 days prior to licensing
a.
Must take a contract writing course
How does “vacation ownership” differ from a “timeshare”?
a.
Vacation ownership can not be banked or traded
b.
Vacation ownership is a license to use
c.
Vacation ownership is illegal in the State of Arizona
d.
Both must use an attorney to sell or transfer ownership
b.
Vacation ownership is a license to use
Which of the following would not be considered part of the land
a.
Minerals
b.
Gold
c.
Title
d.
Cotton
c.
Title
A non-court ordered easement by prescription must be __________, __________ and ___________ to be legally recognized?
a.
Legal, allowed and recognized
b.
Visible, open and notorious
c.
Visible, recorded and acknowledged
d.
Open, official and recognized
b.
Visible, open and notorious
Land has an inherent value and by making __________ you can increase the value.
a.
Speculative investments
b.
Permanency of investment
c.
Improvements
d.
Transference of options
c.
Improvements
The term used to describe the legal process of transferring real property is
a.
Acknowledgement
b.
Covenant of Seisin
c.
Conveyance
d.
Transference
c.
Conveyance
A deed would be invalid if it were found to be:
a.
Had a consideration in the form of other than money
b.
Missing a legal description
c.
Recorded after the sale took place
d.
Signed by both the grantor and the grantee
d.
Signed by both the grantor and the grantee
In order for it to be recognized, the deed to real property must be
a.
Signed by the grantor
b.
Signed by both the grantor and the grantee
c.
Signed by the grantee
d.
Signed and notarized by both the grantor and the grantee
a.
Signed by the grantor
A bill of sale is usually used to convey personal property over the amount of how much?
a.
$350
b.
$200
c.
$1000
d.
$500
d.
$500
Which party in a transaction can claim a loss as a result of a title defect?
a.
Listing Brokers
b.
Lessor
c.
Grantee
d.
Grantor
c.
Grantee
Corporeal Hereditaments could be
a.
A property left in a will
b.
A car donated to a charity
c.
A shared easement
d.
A timeshare that is used yearly
a.
A property left in a will
Owners of Condo Units have what type of rights?
a.
Board Leadership Rights
b.
HOA Voting Rights
c.
Air Rights
d.
Fee Simple Determinable Rights
c.
Air Rights
What legal term would be used to transfer your estate to somebody else upon your death and would be found in a will
a.
Inchoate
b.
Control
c.
Demise
d.
Devise
d.
Devise
Clear title means
a.
The sellers have cleared the clouds on title
b.
There are no known defects in the title history
c.
All of these
d.
Full ownership history has been documented
c.
All of these
The idea behind Planned Unit Developments is
a.
Mixing different types of residential properties
b.
Enhancing overall well being in the community
c.
Ensuring conforming designs
d.
Ensuring identical zoning
b.
Enhancing overall well being in the community
The main objective of the Real Estate Advisory Board is to
a.
Provide advisory services to new agents and recently approved brokers
b.
Draft, create and update curriculum for all online and in person education
c.
Ensure that the general public has access to all real estate approved forms
d.
Make recommendations to the commissioner to benefit the public
d.
Make recommendations to the commissioner to benefit the public
A characteristic of land that defines no two parcels are identical would be known as
a.
Nonhomogeneous
b.
Separated Characteristics
c.
Uniqueness
d.
Scarcity
a.
Nonhomogeneous
If you were to allow your sibling to reside in your house until they died, because you promised your parents you would, your sibling would be what?
a.
Leasehold Tenant
b.
Life Owner
c.
Grantor
d.
Life Tenant
d.
Life Tenant
How much money should be in the Recovery Fund in the Arizona Department of Real Estate at the end of the fiscal year?
a.
$600,000
b.
$500,000
c.
$250,000
d.
$300,000
a.
$600,000
Which type of person would most likely receive a cease and desist notice from the commissioner of the Department of Real Estate in Arizona?
a.
An unlicensed property manager on behalf of multiple properties
b.
A licensed agent employed by a broker
c.
The designated broker
d.
Any member of the general public who is selling their own home
a.
An unlicensed property manager on behalf of multiple properties
The duties of ADRE include the regulation of all of the following except
a.
New Condominium Communities
b.
Cemeteries
c.
New Home Plottage
d.
Subdivisions
c.
New Home Plottage
A purpose built greenhouse on the property was expressed in the listing agreement as not to convey. This is
a.
Reversion
b.
Collateral Property
c.
Special Circumstances
d.
Severance
d.
Severance
Arizona became a state in what year?
a.
1952
b.
1919
c.
1948
d.
1912
d.
1912
Which of the following statements is correct?
a.
Written complaints against a license are forwarded to the agents designated broker
b.
Commissioner must audit brokers records every 2 years
c.
Commissioner must hold an active license in the State of Arizona
d.
Commissioner must investigate anytime a written complaint is filed
d.
Commissioner must investigate anytime a written complaint is filed
Which of the following would most likely hinder the transfer of clear title to a property in a community?
a.
A deceased owner from 1982 shows up in a title search
b.
Utility company easement
c.
Cities special assessments
d.
A homeowners back tax lien
d.
A homeowners back tax lien
Property taxes, mechanics lien, mortgage lien; which comes first?
a.
Mechanics Lien
b.
Property Taxes
c.
Mortgage Lien
d.
None, IRS liens come first
b.
Property Taxes
Four friends buy a piece of land in Kingman with the shared mindset of developing the property at some point in the future. They choose ‘joint tenancy’ as their method of ownership. Suddenly and unexpectedly one of the co-owners dies. What will happen to the deceased owner’s share of the property?
a.
The deceased owner’s portion of the property will pass to the other owners equally
b.
The heirs to his estate will now be equal co-owners with the other owners
c.
The Trustee must liquidate his share
d.
The laws of descent will determine who gets his share
a.
The deceased owner’s portion of the property will pass to the other owners equally
Common laws are derived mainly from where?
a.
Statutory laws already in effect
b.
Customs and judicial precedent
c.
Written laws passed by legislators
d.
Common laws borrowed from other states
b.
Customs and judicial precedent
