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AZ Real Estate (ASREB) 5/2017 > Real Estate Sales Licensing - Notes & Facts for Brief Study > Flashcards

Real Estate Sales Licensing - Notes & Facts for Brief Study Flashcards

1
Q

What rates are used to calculate the assessed value of 1) Residential and 2) Land

A

Residential 10%

Land 16%

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2
Q

How will property taxes show on Closing Statement

A

Debit Seller, Credit Buyer

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3
Q

What is lien priority

A

Property taxes

Special Assessments

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4
Q

When a property tax sale is held. What does the low interest bidder receive

A

Certificate of Purchase

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5
Q

Property Taxes Would be AHEAD of an IRS lien or a deed of trust

A

Arizona Property taxes would always be in first lien position

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6
Q

What is a buyer most likely to accept title with….

A

property tax lien for the current year’s taxes

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7
Q

Which of the deeds have the best warranties

A

General warranty

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8
Q

Who receives title through a deed of conveyance

A

Grantee

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9
Q

Deed restrictions that run with the land and liens are

A

Encumbrances

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10
Q

Escrow Company works for….

A

Buyer and Seller

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11
Q

A deed is legally enforceable if it is….

A

Recorded

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12
Q

What is the purpose of a closing statement

A

Shows all monies / costs involved in a transaction

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13
Q

Who signs the settlement sheet?

A

Buyer, Seller and Escrow agent

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14
Q

What does the Covenant of Seisin promise?

A

The grantor has the right to convey the property

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15
Q

Title Insurance has no impact on what?

A

No impact on property value

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16
Q

When an abstract of title was completed, what does it indicate?

A

It indicates that a title search was completed

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17
Q

What must be paid when a conventional loan is greater than 80%?

A

PMI Private Mortgage Insurance must be paid at time of closing.

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18
Q

Owner’s Title Insurance is for the protection of who?

A

Buyer

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19
Q

What would never show on a closing statement?

A

Principal payments

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20
Q

What is the (mathematical) difference between debits and credits?

A

The amount needed to close the escrow and balance.

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21
Q

When the buyer is buying a rental property, the security deposits are….

A

not prorated

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22
Q

Owner’s title insurance policy would not cover…..

A

Parties in Possession

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23
Q

What is it called when the escrow company turns the matter over to the court to settle a dispute?

A

Interpleader

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24
Q

Can a property be sold with no ingress or egress?

A

Yes, is must be stated in the deed

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25
Q

What is the Affidavit of Value

A

document recorded along with the deed. (Affidavit literally means “has pledged one’s faith”.

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26
Q

When / Why is Affidavit or Value used by the county assessor

A

to hep the assessor determine property value for taxation

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27
Q

When is the docket and page number assigned

A

redecoration

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28
Q

What would an extended policy of title insurance cover

A

Encroachments

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29
Q

In order to record a deed it must be….?

A

Signed and Acknowledged

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30
Q

What is Pur Autre Vie

A

“For the life of another” when a party is given a life estate based on the life of another person.

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31
Q

What is Color of Title

A

Gives the appearance of title, but is not.

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32
Q

What is Color of Title

A

Gives the appearance of title, but is not.

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33
Q

When may the seller retain the earnest money?

A

if the buyer signs a contract and then decides not to complete the terms of the contract

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34
Q

What is is called when a party has the right of rescission in a contract?

A

Voidable

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35
Q

If a buyer can’t qualify for a loan, what clause in a purchase contract would benefit the buyer?

A

Contingency

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36
Q

When a purchase contract is signed by the buer and seller, what is not required?

A

Notarized Signatures

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37
Q

All contracts must have what?

A

Consideration

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38
Q

When a contract is made between a competent party and a minor, it is?

A

Voidable by the minor

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39
Q

When an offer is written on another broker’s listing, the selling agent is required to ?

A

Contact the Listing Broker

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40
Q

What would have priority on a purchase contract with handwritten and reprinted language?

A

The handwritten language would have priority

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41
Q

All contracts are required to be written per…. what?

A

Statue of Frauds

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42
Q

When a contract is based on fraud it is….

A

Voidable by the party the fraud was committed against.

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43
Q

A unilateral contract would be…..

A

Option
First right of refusal
Reward Poster

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44
Q

A contract is not considered valid until there is ….

A

An offer of acceptance

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45
Q

When a contract is for an illegal act or purpose it is?

A

Void

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46
Q

A makes an offer to B, the offer is signed by B who makes a counter and dies before A accepts, what is the contract status?

A

Unenforceable

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47
Q

What is Specific Performance?

A

A court action to compel a buyer or seller to carry out the terms of a contract.

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48
Q

What is Specific Performance?

A

A court action to compel a buyer or seller to carry out the terms of a contract.

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49
Q

When a contract is signed by someone other than the seller is would most likely be…

A

An attorney- in- fact

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50
Q

What could government power could terminate a purchase contract?

A

Eminent Domain or Condemnation

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51
Q

What should an agent do is a contract has pre-written language?

A

Review and alter if necessary

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52
Q

Which agent has the original contract and the earnest money?

A

Selling Agent

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53
Q

When an option to buy is exercised, the option is….

A

Unilateral Executed

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54
Q

What is a unilateral contract? Give an example

A

One party gives a promise in exchange for an act.

Example: Open listing listing contract where a seller agrees to pay the the first broker who brings in a ready, willing and able buyer.

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55
Q

When an option to buy is exercised, the new contract is….

A

Bilateral Executory

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56
Q

When can a real estate agent modify a contract

A

Only if it is signed by the buyer and seller

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57
Q

What is not recorded when a real estate transaction is set to close escrow?

A

Purchase Contract

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58
Q

When would a buyer get the earnest money deposit back

A

If the contract contained a Contingency Clause

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59
Q

When a buyer defaults on a purchase contract and the seller keeps the earnest money, this is called….?

A

Liquidated Damages

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60
Q

A makes an offer to B, all parties sign, and then B dies,. Is the contract valid or invalid?

A

Valid Contract

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61
Q

When a buyer enters into a lease - purchase….

A

the buyer is OBLIGATED TO BUY THE PROPERTY ON A SPECIFIC DATE.

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62
Q

When a salesperson has a buyer sign a “buyer brokerage agreement” it must have what?

A

A beginning and ending date

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63
Q

What is Intentional misrepresentation?

A

A false statement made with the intention of inducing another party

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64
Q

What should the salesperson do is PERSONAL PROPERTY is included in a sale?

A

Take an inventory

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65
Q

If a sales contract is signed by one spouse, what is the status?

A

Unenforceable against both.

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66
Q

When a purchase contract is signed under duress, the contract is?

A

Voicable

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67
Q

An illusory contract is?

A

Unenforceable

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68
Q

What is an illusory contract?

A

Seems to be a contract… buy may not be.

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69
Q

In a listing agreement the seller is also known as what?

A

Client or Principal

70
Q

What is a client (or principal) owed from their agent?

A

Fiduciary duties

71
Q

What is a third party in a real estate transaction?

A

Customer

72
Q

What listing gives the broker the least protection

A

Open listing

73
Q

What type of listing gives the broker the greatest protection

A

Exclusive Right to Sell

74
Q

All listings must have what?

A

Beginning and End date

75
Q

What is a dual agency

A

When the brokerage company represents both the buyer and seller.
Legal as long as all parties AGREE IN WRITING

76
Q

What is an Exclusive Agency Listing

A

Owner hires one broker but may sell the property for sale by owner and not pay a commission

77
Q

In an exclusive agency listing who would a commission be paid to?

A

MLS agents and sub-agents

78
Q

Why is a net listing illegal in some states

A

Because a broker may undervalue the property

79
Q

What is implied agency

A

Of an agent makes a person think they’re their agent

80
Q

When would a listing be terminated

A

Bankruptcy

81
Q

What is it called when a broker speaks for a seller without their authority?

A

Ostensible

82
Q

What are an Agents Fiduciary Duties?

A 
CARLOAD:
Confidentiality
Accountability
Reasonable CARE and Skill
Loyalty
Obedience
Advocacy
Disclosure
83
Q

How is the broker’s right to a commission established

A

the Listing Agreement

84
Q

When does a mechanics lien take priority

A

the day the work began

85
Q

How long does a general contractor have to file after their Notice of Completion?

A

120 days to file their lien.

The sub-contractor also has 120 days

86
Q

How long does a Mechanics Lien stay Valid?

A

Six Months from the fay of recordation - a lawsuit must be filed within six months for the lien to remain valid

87
Q

Who may file a Mechanic’s Lien?

A 
General Contractor, 
Sub-Contractor, 
Architect, 
Engineer
Provider of Materials
88
Q

If a tenant imroves a property and fails to pay the contractor, the Mechanics Lien will….

A

encumber the tenant’s leasehold interest

89
Q

What does the Arizona Homestead Exemption protect.?

A

Protects the Equity in a personal residence up to $150,000.

90
Q

What does the Arizona Homestead NOT protect?

A

a person against any action they voluntary entered into, secured liens, or rights of the government.

91
Q

When is homestead protection lost?

A

When the person sells or moves out of the property

92
Q

How long are judgments valid for?

A

5 years

93
Q

When may judgments be renewed?

A

May be renewed within the last 90 days of the five years

94
Q

How are judgments from another state recorded in Arizona?

A

Foreign Judgment

95
Q

Where would judgments appear?

A

Title report, credit report and in the county recorder’s office

96
Q

Judgement are what type of lien?

A

A general lien. They attach to real and personal property.

97
Q

What determines Value

A

Utility, Scarcity, and Transerability

98
Q

When conducting a neighborhood analysis, the appraiser is interested in

A

Economic Depreciation

99
Q

What is an example of external (economic) obsolence?

A

Air pollution; Noise

100
Q

What are the CAP rate and Capitalized value based on?

A

Net Income

101
Q

What approach would an appraiser use when appraising special property (church)

A

Cost Approach

102
Q

What are appraisers paid based on?

A

Time, travel, work

103
Q

What is Integration and Disintegration (Development, Stability & Decline).

A

What an appraiser looks for when studying an area for growth and decline.

104
Q

Is a building has a poor floor plan it is an example of

A

Functional Obsolescence.

105
Q

What happens when the CAP rate goes up?

A

The value goes down

106
Q

What approach must an appraiser use when appeasing land

A

The Market Approach

107
Q

What is the Cost Approach

A

Also known as summation.This is an estimate of value based on reproduction / replacement costs. Used for new construction, custom homes, special use or service property (churches, theaters) where comps are unavailable.

108
Q

What is the Market Approach

A

Also known as comparative analysis, used when appraising land and “used” residential property.

109
Q

Operating Expenses do not include

A

Vacancies and loss of credit

110
Q

What is reconciliation?

A

Also known as correlation. This is the final step when an appraiser used all three appraisal approaches (Cost, Market and Income Approach).

111
Q

What is the least important factor when using the Market Approach?

A

Property in Foreclosure

112
Q

What may you have at the end of the economic life?

A

Salvage Value

113
Q

What is the highest price a property will demand?

A

Market Value

114
Q

Economic Depreciation is always…. what?

A

Incurable

115
Q

What would an appraiser do is the comps in the area has less features than the subject property?

A

Add dollar value to the subject property.

116
Q

What is substitution?

A

The benefits of one property when compared to another

117
Q

What can the landlord keep if the lessee pays upfront deposits and then cancels the lease

A

Security Deposit

118
Q

When must a licensee notify the RE dept of a felony or misdemeanor

A

10 days

119
Q

All contracts must be initialed by a designated broker or delegated associate broker… when?

A

Within 10 business days

120
Q

Who regulated Arizona Environmental policies?

A

AZ Department of Environmental Quality

121
Q

When is the seller responsible to give HOA documents to the buyer?

A

Less than 50 units

122
Q

When is the HOA responsible to giver the buyer documents regarding HOA?

A

50 units or more

123
Q

What are Arizona “Superfund” sites?

A

Water Quality Assurance Revolving Fund

124
Q

A revocable permission to use property for weekends only would be a

A

License

125
Q

When does the seller receive the buyers earnest money?

A

COE

126
Q

What is similar to medical malpractice insurance?

A

Errors and Omissions insurance

127
Q

Fair dealing is the same as what

A

Honesty

128
Q

How long is a broker required to keep rejected offers

A

one-year

129
Q

When a property owner is requesting a variance, they must show what?

A

They are required to show a hardship

130
Q

What is required when 5 or fewer parcels other than subdivided land are located in an unincorporated area of a county?

A

Land Disclosure Affidavit

131
Q

What is RESPA

A

Real Estate Settlement Procedures Act

(The purpose of RESPA is to help consumers become better shoppers for settlement services and to eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services)

132
Q

What types of RE does RESPA cover?

A

Residential real estate, 1-4 plex

133
Q

What types of loans would RESPA not cover?

A

Seller Carryback and Loan Assumptions

134
Q

A limited partnership is closest to a …. what?

A

Syndicate

135
Q

How is a master planned community defined?

A

Two or more platted subdivisions with CC & R’s

136
Q

What does CC & R stand for?

A

Covenants, Conditions and Restrictions

137
Q

What is an assignment? Who is involved?

A

The transfer of the right, title and interest in the property of one person (the assignor) to another (the assignee).

138
Q

Regulation Z shows all costs of borrowing the money except for….

A

Document Preparation Fees

139
Q

What is an interest only payment loan called?

A

Term loan

140
Q

What type of lien is a mortgage

A

A voluntary lien

141
Q

If RE companies agreed not to do business in each other’s areas what would this violate?

A

The Sherman Anti-Trust Act

142
Q

What is the rate the Federal Reserve charges when loaning money to banks?

A

Discount Rate

143
Q

What is the fee called that a lender charged to cover their overhead?

A

Origination Fee

144
Q

Trustor =

A

Borrower

145
Q

Beneficiary =

A

Lender

146
Q

Trustee =

A

Hold Legal Title “Bare & Naked”

147
Q

Mortgagor =

A

Borrower

148
Q

Mortgagee =

A

Lender

149
Q

Vendor =

A

Seller

150
Q

Vendee =

A

Buyer

151
Q

When is an Agreement for Sale used?

A

Between two private parties in a carryback

152
Q

AMA

A

Active Management Area

In relation to Water Rights

153
Q

Why are areas designated to be an AMA?

A

Overdraft of the underground water supply

154
Q

Assured Water Supply

A

Water Available for 100 years. Needed for residential RE Development in an AMA

155
Q

Outside of an AMA, subdivider must provide an

A

Adequate Water supply

156
Q

A grandfathered water right that remains with the land but could be used for non-irrigation purposes is called….

A

Type 1

157
Q

A grandfathered water right that may be sold separate from the land is called

A

Type II

158
Q

Who regulated Arizona water usage?

A

Department of Water Resources

159
Q

Civil Rights of 1866

A

prohibits any type of discrimination by race

160
Q

What is Redlining

A

limiting loans or insurance to a geographical area

161
Q

What is the Fair Housing Penatly (fine for first offense)

A

$16,000

162
Q

Who administers Federal Fair Housing Law?

A

HUD

163
Q

ADA Title I

A

Requires employers to make reasonable accommodations that enable person with disability to perform a job.

Applies to employer with 15 or more employees

164
Q

ADA First Offense Fine? All future Fines?

A

$55,000 for First Offense

$110,000 for all future fines.

165
Q

What are the dimensions of a section? How many acres are in a section?

A

1 mile by 1 mile.

640 acres.

166
Q

What are the dimensions of a township?
How many square miles?
How many sections?

A

6 miles square
36 sq miles.
36 sections

167
Q

How is the distance of townships measured?

A

In a span

168
Q

Which direction do tiers run?

A

East and West

169
Q

Which direction do range lines run?

A

North and South

170
Q

What is the distance between range lines?

A

6 miles

171
Q

How many sq rods are in an acre

A

160

AZ Real Estate (ASREB) 5/2017 (14 decks)

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