PREP EXAM Flashcards
C holds a life estate for his life and also purchases the interest of the vested remainderman. What interest would C now have?
Fee simple estate
An easement appurtenant is an example of
Property necessity
When a property is rented for only one month, this is called tenancy…
For years
Which of the following would NOT qualify for homestead exemption?
Family who owns a house in the name of a corporation
Single person living in a mobile home that is parked in rented space
Family who owns a house in the name of a corporation
RATIONALE
Homestead exemption is available only to natural entities, people, not companies which do not have “homes”
You homestead your property then default on a loan for $50,000 secured with a note and Deed of Trust. How much does the one foreclosed on owe?
$50,000
RATIONALE
He or she owes $50,000. The homestead exemption does not protect against a consensual (voluntary) lien.
What would be the holding of title received for the common area of a condo?
Tenancy in common
RATIONALE
The condo owner holds title to the common areas as tenants in common.
In order to have a valid deed, the ______ must sign.
Grantor
Delivery of a deed legally takes place…
When grantor hands the deed to a third neutral party with conditions and instructions to hand to the grantee
RATIONALE
This is the definition of an escrow delivery (handing the deed to a neutral party with instructions to deliver)
In Arizona, a deed must be signed by the
Grantor
An affidavit of value would NOT contain
Tax transfer stamps
Title would transfer involuntarily to whom?
Executor
Who gives instructions to sign the deed of re conveyance
Beneficiary
In an agreement for sale it transfers rights ….
An agreement for sale…. Transfers rights to buyers possession
What requires lenders to inform borrowers, when buying a home, secured by a mortgage or trust deed, of all finance charges, fees and interest at the time of signing the loan documents?
Reg Z
If FHA is to insure a loan placed by a lender for the purchase of real estate what would NOT be required
Government funds must be available is NOT requried
FHA is administered by the department of
HUD
An apartment complex would be required to keep the common grounds accessible to all the residents. What covers this requirement?
Federal Fair Housing
A complex meets the 62 year age requirement and the housing for old person exemption. A resident has a grandchild that would like to move into the complex. What is the status of the grandchild
The grandchild would not be allowed to stay due to the 62 year old exemption
Adjusted Gross Income Includes
Rents, minus vacancies, minus credit losses, plus other income
RATIONALE
Adjusted gross income is the same as “Effective gross income” and therefore has the same formula: Potential gross income minus vacancies, bad debts (credit losses) = Effective (Adjusted) gross income.
When a tenant does not pay the monthly rent, the landlord’s first step would be to
Send a 5 day notice for non-payment of rent
When a tenant causes a material breach in the lease, the owner may issue a formal notice that states
Lease will terminate in 10 days if the matter is not corrected within 10 days
A condominium and cooperative would be the same in that
Both pay annual assessments
Is an auctioneer auctioning real property required to have a real estate license?
YES
RATIONALE
To auction any real property, business or timeshare a real estate license is required
When a broker represents a buyer only, what would be the relationship between the buyer, broker and seller?
Customer
An owner sold his listed property himself prior to expiration of the exclusive agency listing. The amount of commission owed is?
Nothing
If the buyer dies prior to a contract closing escrow, the contract is
Valid
An option once exercised is considered
Bilateral executory
RATIONALE
An option once exercised is considered Bilateral executory. Bilateral because it’s two sided and executory because it hasn’t closed.
A couple has an adult son heading to college in Arizona. The wife files for divorce after 27 years of marriage citing irreconcilable differences. The husband executes a lease on a property in Arizona for the son to attend college that begins on August 1, 2014 and terminates December 31, 2015 and converts to month to month unless one party gives 30 days notice. Who must sign?
The lease requires signatures of both parties in the marriage in order for it to be valid.
RATIONALE
A lease longer than 1 year requires signatures of both parties in order to be valid
In order to be enforceable, an exclusive listing
Must be signed by the owner and broker
RATIONALE
In order to be enforceable, an exclusive listing must be signed and accepted by the owner and the broker.
When you appraise land and add to it the depreciated value of the improved property, what appraisal approach is being used?
Cost
The distance around a quarter of section 7 in a specific township would be
2 miles
RATIONALE
A quarter of a section is 1/2 mile by 1/2 mile. 1/2 mile x 4 = 2 miles.
A property closes February 3rd, the property taxes would be prorated based on
Last year
You are closing on a property at the end of March where the seller has not paid for the 2nd half of the previous year? How would taxes be prorated?
Debit the seller for 9 months. credit the buyer for 3 months.
On a closing statement, the amount of the sales price would be
Debit buyer, credit seller
What is the primary difference between an agreement for sale and a purchase money mortgage.
The agreement for sale contains the note and the security all in one document.
When land is offered interstate, it would be regulated by the Consumer Financial Protection Bureau. What number of lots must be offered for the regulation to take place?
25 or more
When land is purchased interstate, how long would a buyer have to rescind under the Federal Interstate Land Full Disclosure Act
Within 7 days of receiving a property report.
You purchase acreage at a total price of $125,500. The land is priced at $18,000 per acre. What percent of a section did you purchase.
1%
RATIONALE
A section is 640 acres. 1) 125,500 / 18,000 = 6.97 acres owned 2) 6.97 / 640 = .010 (1% after you move decimal 2 places right)
A rectangular property with 8,690 square yards has 318 front feet. How deep is the property?
245.94 feet
RATIONALE
1) 8,690 sq yds x 9 sq ft = 78,210 sq ft 2) 78,210 sq ft / 318 ft = 245.94. The parcel is 318ft by 245 ft. Each square yard has 9 square feet.
