Practice Questions Flashcards
A blind ad refers to an ad that
Gives no indication that the property is listed with a broker
A borrower is required to put 10% down for the purchase of a property. The 10% down would be considered
Equity
A broker acting as a property manager would be what type of agent
General
A buyer pays 20% down and obtains a real estate mortgage. The buyer makes no further payments. What clause would the lender now exercise?
Acceleration clause
When a new home is still under construction the county assessor may
Increase the full cash value
A contract has been signed but the title has not yet passed. The contract is
Executory
A handicapped person is leasing a house that requires modification. Which of the following is true about the modifications
The lessor can require the lessee to reasonably restore the property at the end of the lease
A holdover tenant would have a
Estate at sufferance
Which of these property classifications is used for vacant land
Class 2
A lender refuses to loan or limits loans in a certain minority neighborhood. This action is called
Redlining
A lesser puts in a bookcase for commercial use. At the end of the lease the bookcase is removed. The bookcase would be considered
Trade fixture
To finance the infrastructure for a subdivision development Arizona law allows the formation of
Community facilities district
A listing broker receives several offers at the same time. The broker should
Present all the offers
A loan estimate must be given to a borrower within three business days
Of the loan application
A party lives on a property without permission of the owner. After the legally required time period if the occupant receives title to the property it was done so through
Adverse possession
In what situation would a short sale be likely
The loan balance is greater than the property value
A real estate mortgage would be a
Voluntary lien
A right of way over parcel A to B identified parcel B as the
Dominant tenement
A company that acts as an intermediary between a lender and an appraiser is a
Appraisal management company
A seller lists a property with a brokerage sells it himself and does not have to pay commission. What kind of listing did the seller sign
Exclusive agency
A seller wants to list a four plex and live in one unit but doesn’t want any children in the units. What should the agent do
Refuse the listing because it violates fair housing
A valid contract must have
Offer and acceptance
If the percentage of renters in a community exceeds 50% many lenders require that the homeowners association reserves be what percentage of HOA budgeted income
20%
After a deed of trust foreclosure sale which of the following is true
A trustees deed is given to the new owner
After a mortgage foreclosure if the sale amount was insufficient to cover the debt the lender may ask for a
Deficiency judgement
All of the following would be considered appurtenant in a real estate transaction except
Annual crops
A property in which unrelated people who need care, support or supervision live together and which is protected by fair housing laws from discrimination by neighbors is a
Group home
An option once exercised is considered
Unilateral executed
As of June 30th of any year what must be the balance in the real estate recovery fund to avoid additional fees to licensees
$600,000
At what point does recordation take place
When docket and page number are assigned
Before a tenant can exercise the self help for minor defect provision the tenant must give the owner how many days to cure the defect
10 days
What is required at the time an affidavit of affixture is recorded
The titles to the mobile home must be surrendered
A broker has what Duty to a third party
Full disclosure of all material facts
A federal rent subsidy program is known as
Section 8
How can a buyer best be assured of getting his earnest money back if his loan is not approved
Place a contingency clause in the contract
In a sublease with a positive leasehold who normally benefits from the excess rent
Sublessor
If a tenant abandons a residential apartment the landlord must do all of the following except
Sell the tenants personal property after holding it for 10 days
How many days does the landlord have to give the tenant a full accounting of the security deposit upon termination of tenancy
14 days
How many townships are in a 24 mile square
16
How much of a down payment is required for a VA guaranteed loan
0%
Past due taxes would appear on a title report as a
Encumbrance
If a buyer buys a parcel of land for which a public report was required but was not issued the buyer may void the sale within
3 years
If there are material changes from an original public report the commisssioner may require the subdivider to create
Amended public report
If cap rates in an area are going up how does this influence the value
Value goes down
The state obtains the property of someone who dies intestate through
Escheat
If there is a contract dispute which of the following would take precedence
Hand written word
In an agency relationship the primary ethical duty of a broker is to
Represent the principal
When conveying property in Arizona a deed must be signed by the
Grantor
In Arizona a property owned before marriage is sole and separate. Property acquired after marriage would be considered
Community property
The right of an Arizona real estate licensee to prepare certain legal documents and forms comes from
The Arizona constitution
What clarified ADREs position on statutes or rules
Substantive policy statements
The concept that information given to a clients agent has been given to the client is known as
Imputed notice
Mrs. Martin owns a house on a corner lot and tears the house down in order to get a better price for the land. This is an example of
Highest and best use
On a settlement statement rent paid in advance would be a
Credit to the buyer, debit to the seller
Property taxes are assessed on the
Value of the property
Rows of townships are called
Tiers
The 1988 amendments to the federal fair housing act prohibits discrimination based on
Familial status and handicapped
If the buyer of a property wants to remain anonymous what term should be used for that buyers name in the purchase contract
Nominee
The doctrine of water usage in Arizona is known as
Prior appropriation
Which of the following listings would not be entered into a multiple listing service
Pocket listing
The following would be an example of what type of surveying system? Beginning at the SE corner of Tatum and cactus proceed 2,640 feet north thence 400 feet west thence 700 feet south and back to the beginning
Metes and bounds
Which is the highest form of an estate
Fee simple
What is the homestead exemption in Arizona
$150,000
The main purpose of the federal housing administration is to
Insure loans
The relationship between a broker and their salesperson is what type of agency
General
Which of the following is determined by measuring the exterior dimensions of a home including garages patios and entryways
Square footage under roof
What is the tax assessment rate applied to owner occupied residential property in Arizona
10%
When a property that has a well is sold what must be sent to ADWR
Transfer of well rights form
The word friable would be most likely apply to which of the following
Asbestos
Two property managers are planning to set rental rates on their units to keep the tents high in the area. This would be a violation of
Antitrust laws
Under what condition would a listing agreement not terminate
The salesperson dies
What document is recorded with the deed
Affidavit of value
What organization receives most of the benefit of proceeds from the sale of lease of state trust land
State schools
Which is considered functional obsolescence
A five bedroom house with one bathroom
What is the maximum security deposit allowed under the Arizona landlord tenant act
1 1/2 months rent
What is the name of the third party that will receive a life interest in a property upon the death of a measuring tenant
Remainderman
What is the purpose of an affidavit of value
Assist the county assessor in determining property values
An escrow company may disburse commission directly to a brokers salesperson if
Escrow officer recieves written authorization from the broker in each transaction
Real estate licensees should safe guard a clients or customers personal information in order to prevent
Identity theft
If an owner improves a property a licensed. I tractor is required to be used in all of these situations except if the property
Is owner-occupied for more than one year
When a developer combines two or more adjacent parcels of land into one large development it is known as
Assemblage
When a person buys a condo how they hold title to common areas
Tenancy in common
A personal named in an insurance policy who will receive the insurance proceeds if the property is damaged is the
Loss payee
When a property located within a homeowners association is listed for sale who is responsible for supplying the relevant documents to prospective buyer
The HOA if there are more than 50 units
At close of escrow which of the following forms must be filed with the IRS
1099 S
Under what circumstance can an owner of a single family residence depreciate the property for tax purposes
If the property is a rental
When land is purchased interstate how long would a buyer have to rescind under provisions of the federal interstate land sales full disclosure act
Within 7 days of receiving the property report
When the real estate commissioner receives a written compliant against a licensee
A hearing will be held before any license suspension
A lender of a conventional loan would require private mortgage insurance (PMI) when the loan to value is
More than 80%
Which of the following is not a participant in the secondary mortgage market
FHA
Water rights for what Arizona rivers are being adjudicated in court
Gila and little colorado rivers
Which of the following would be considered a grandfathered water tight
Type 2 water right
A septic tank inspection report is valid for
6 months
If a property lies within the boundaries of the areas in which water rights are being adjudicated the owners
Must file a claim to be included in the courts decision
How many square feet in an acre
43,560
Acceleration Clause
In loan documents that allows the lender to call the note all due and payable if the borrower breaches the terms
Actual eviction
Physical removal of a tenant from a leased property with the tenant relieved of any further responsibility to pay rent
Ad valorem
According to value
Adjustable mortgage rate
Mortgage loan that has an interest rate on the note that periodically adjusts
Administrator
Court appointed personal representative of an estate for someone who dies intestate
Administrators deed
A document that transfers title to real estate from an intestate person to his or her heirs
Adverse possession
Acquiring title to land because of long term use of the land. Legal process is called prescription. The required time period in Arizona is 10 years
Affidavit of affixture
Document for owners of mobile homes certifying the home is immobilized
Affidavit of disclosure
Provides info about certain aspects of the property and allows the buyer an opportunity to rescind the contract
Affidavit of value
Indicates purchase price paid by the buyer in a transaction
Filed with the deed and signed by buyer and seller
Agreement for sale
Document between buyer and seller. The seller does not give a deed to the buyer until paid in full
Land contract, contract for deed, or installment sale
Alienation clause
Used in a mortgage allowing the lender to demand the full and immediate payment of the mortgage because the owner transferred ownership of the property
Due on sale clause
Appurtenance
Something that belongs to property and passed with property but need not be attached to it
Think of easements
Runs with the land
Bargain and sale deed
Deed that conveys ownership from the grantor to the grantee without any expressions of warranty
Beneficiary
One who receives a benefit
Refers to the lender in a trust deed
Bilateral contract
Contract in which the parties expressly enter into mutual agreements or engagements
Each party promises to perform some act
Bill of sale
An instrument in writing that transfers ownership of tangible personal property
Blockbusting
An illegal act where owners are encouraged to sell their properties because minorities are moving into their neighborhood
Broker protection clause
Contract clause that entitles a listing broker to a commission if the property sells in a specified time frame and the broker or licensee introduced the buyer to the property during the listing period
Certificate of sale
A document the Highest bidder receives at a sheriffs foreclosure sale
Cloud on title
Valid encumbrance affecting title to the land
Constructive eviction
Landlords act that interferes with the tenants quiet enjoyment of the property
Makes the property unfit for its intended use to such an extent the tenant is forced to move out
Conventional life estate
An estate created by deed or will that may be for the tenants own life or the life of another
Deed in lieu of foreclosure
A deed to property voluntarily given by a borrower to the lender to satisfy the debt and avoid foreclosure
Deed of reconveyance
A deed that the trustee signs and gives to the trustor (borrower) to convey title back to the trustee when the loan has been paid in full
Deed of trust
Three party security instrument that conveys naked title to a trustee
The borrower (trustor) has legal title
The lender is the beneficiary
The trustee has bare naked title
Defensible fee
An estate that reverts back to the grantor if a condition is broke
Devise
Real property transferred in a will
Devisee receives the real property
Dominant tenant
A person with easement rights on another’s property
Dominant tenement
Property that receives the benefit of an appurtenant easement
Easement
Non-ownership right acquired by a person to use the land of another for a specific purpose
Estate at sufferance
Possession of property by a tenant who came into possession of the property under a valid lease and stays after the lease expires without landlord permission
Estate at will
A leasehold estate with no specific termination date
Estate for life
Interest in a real property for the duration of a lifetime of someone else or owner
Estate for years
Leasehold estate set to last for a definite period
Terminated automatically
Also called term tenancy
Estate in remainder
Future interest that becomes possessory when a life estate terminates
Held by someone else other than the grantor of the life estate
Estate in reversion
Future interest that becomes possessory when a temporary estate terminates and that is held by the grantor
Fee conditional
A type of defensible fee estate where the title may be terminated by a former owner if conditions stated in a deed arent met
Fee simple
The greatest estate one can have
Freeely transferable and inheritable and no indefinite duration with no conditions on the title
General warranty deed
A deed in which the grantor warrants the title against any anf all defects that might have arisen before or during ownership
Habendum Clause
To have and to hold clause
Joint tenancy
An interest held by two or more persons in property where each person holds an equal share of interest in the undivided while and shares equal liability
If one tenant passed the interest automatically passed to the surviving joint tenants
Leasehold
An estate that gives the tenant a temporary right to possession without title
Lessee and lessor
Lessee is tenant
Lessor is landlord
Life estate pur autre vie
A life estate for the life of another
Miles square vs square miles
Miles square is described by the number of miles wide and high
Square miles describes the area (LxW)
Period to period estate
A leasehold estate that continues for successive periods of equal length until terminated by proper notice from either party
Proprietary lease
An exclusive long term lease that conveys a leasehold interest to an owner of shares in a cooperative
Sheriffs deed
A deed issued by the court to a property purchaser from a foreclosure sale or sale under a judgement
Special warranty deed
A deed by which the grantor covenants or guarantees the title from the time the grantor received it until it is conveyed to grantee
Subject to clause
In a contract that sets forth contingencies
Sublease
Transfer by a tenant of only part of the right of possession or other interest in leased property to another person for part of the remaining lease term
Subleasee
The new tenant under a sublease
Subleasor
Original tenant who becomes a lessor (landlord) under a sublease
Subordination clause
Contract clause that gives a mortgage recorded at a later date the right to take priority over an earlier recorded mortgage
Tenancy in common
Type of concurrent ownership in a property by two or more persons without rights of survivorship
Can will or sell interest
Tenant improvements
Changes made to the interior of a property to accommodate the needs of a tenant
Tenements
Everything of permanent nature associated with land and transferred with the land
Treasurers deed
A deed issued by a country treasurer to the person who is the successful bidder at a property tax lien sale only after three year period of redemption
Trustees deed
A deed executed by a trustee transferring the title from the trust to the successful bidder
Trustees sale
Non judicial foreclosure sale under a deed of trust
Unilateral contract
A contract that is legally binding on only one party who made a promise
Warranty deed
A deed in which the grantor fully warrants good and clear title to the property and agrees to defund the premises against the lawful claims of third parties
