Session 1: Welcome to Arizona Real Estate, Business Practices, The Law of the Land Flashcards
Bundle of Rights (DEEPC)
Disposition Exclusion Enjoyment Possession Control
Appurtenance
The improvements that belong to and pass with the transfer of property but are not necessarily a part of the property
What are some typical appurtenances?
Right-of-way, water rights, parking stalls
Personal Property (chattel)
Moveable
An unmovable fixture in a home would be called?
Appurtenance
Emblements
Annual plantings or crops of wheat, corn, vegetables, and fruit are considered personal property
Where do you need to be licensed to sells manufactured/mobile homes?
AZ Department of housing
Are there exceptions to the license to sell mobile homes?
Yes, if it is located in a mobile home park and the licensee acts as an agent for a licensed manufactured home dealer or acts on behalf of a private party and the licensee remains subject to the real estate licensure requirements
Severance
Taking something that was once real property and turning it into personal property
Annexation
Changing personal property into real property
When is annexation done?
When creating a fixture
Fixtures
An article that was once personal property but has been so affixed to the land or a building that the law recognizes it as a part of real property
3-part test for determining when chattel has become a fixture
- annexation to the real property
- adaptation or application as affixed to the use of the real estate
- an intention of the party to make the object a permanent part of the real property
What are the four economic characteristics of real estate?
Scarcity
Improvements
Permanence of investment
Area preference
Scarcity
shortage of supply of a particular quality of land in a specific area
Improvements
Valuable additions made to a property that is intended to enhance the property for the useful remaining life
Permanence of investment
improvements that include long-range planning. Including sewers, utilities, and capital investments
Area preference (situs)
peoples choice of a certain area
What are the three physical characteristics of real estate?
Immobility
Indestructibility
Uniqueness
How much is excluded from capital gains tax for a married couple?
$500,000
How much is excluded from capital gains tax for a single person?
$250,000
When was NAR’s Code of Ethics adopted?
1913
Property management, appraisal, financing, and development are all
a. specializations directly linked to state and federal government financing policies
b. separate professions within the real estate industry
c. real estate brokerage professions
d. the demographic factor that affects demand for real property in a commercial market
Separate professions within the real estate industry
The term situs refers to
a. portions of a property not visible through home inspection
b. no two parcels are exactly alike
c. people prefer certain areas
d. none of the above
People prefer certain areas
A REALTOR is best described as an individual who is
a. a member of the National Association of REALTORS
b. anyone who sells property for someone else for the expectation of compensation
c. a specially licensed real estate professional who acts as a point of contact between two or more people in negotiating the sale purchase or exchange of real estate
d. an individual who has passed the state real estate exam and is licensed by the ADRE
a member of the National Association of REALTORS
The term that means no two parcels are exactly alike is
a. solemnity
b. situs
c. demographics
d. nonhomogenity
nonhomogenity
The contract writing class in Arizona is mandatory and must be taken
a, before graduating from real estate school
b. before scheduling your state examination
c. before applying for your real estate license
d. it is not a mandatory requirement
Before applying for your real estate license
A physical characteristic of real property is
a. area preference
b. immobility
c. indestructibility
d. both b & c
immobility and indestructibility
Which of the following would be considered an Industrial property
a. office space
b. multifamily residence
c. cemetery
d. warehouse
warehouse
A shopping mall is what type of real estate?
a. industrial
b. commercial
c. residential
d. special purpose
commercial
Bowling alleys, store shelves, and restaurant equipment are examples of which of the following?
a. real property
b. real estate
c. trade fixtures
d. general fixtures
trade fixtures
Parking spaces in multi-unit buildings, water rights, and similar things of value are classified as
a. covenants
b. emblements
c. chattel
d. appurtenances
Appurtenances
Crops that grow on land and require annual planting and cultivation are called
a. emblements
b. fructus naturales
c. real property
d. fixtures
emblements
A church is an example of what type of real estate?
a. residential
b. special purpose
c. industrial
d. commercial
special purpose
Which of the following is included in the definition of real estate but not the definition of land?
a. the air rights
b. the property’s surface
c. below the property to the center of the earth
d. fixtures on the property
fixtures on the property
Billy is building a brand new enclosed porch on his home. A truckload of lumber that he purchased has been left on his driveway for use in building the porch. At this point, the lumber is considered to be
a. Real property because it will be permanently affixed to the existing structure
b. personal property
c. a chattel that is real property
d. a trade fixture
personal property
The term land is considered to be
a. the surface only
b. a depreciable asset
c. indestructible
d. personal property
indestructible
Real property can become personal property by
a. severance
b. purchase
c. hypothecation
d. attachment
severance
The right to control the use of the property and to dispose of it by will or deed are contained in the
a. bundle of legal rights
b. warranty deed
c. common-law agency
d. commissioner’s standards
bundle of legal rights
The rights to the space above the ground within vertical planes are best described as
a. the bundle of rights
b. riparian rights
c. solar rights
d. air rights
air rights
The most important economic characteristic of land is
a. permanence
b. location
c. uniqueness
d. possession
location
Personal property that now becomes real property is called
a. chattel
b. emblements
c. annexation
d. trade fixtures
annexation
The person who buys land and then splits it into smaller parcels is called a
a. developer
b. appraiser
c. property manager
d. subdivider
subdivider
The amount of the capital gain exemption on a residential property owned by a married couple is
a. $250,000
b. $500,000
c. $750,000
d. $900,000
$500,000
To qualify for the capital gain exemption on a primary residence, you must have been living in the home
a. 3 out of the last 6 years
b. 2 out of the last 4 years
c. 2 out of the last 5 years
d. 5 out of the last 10 years
2 out of the last 5 years
In Arizona Home Inspectors must be licensed by
a. AZ Dept. of Real Estate
b. AZ Dept, of Agriculture
c. AZ Dept. of Home Inspection
d. AZ State Board of Technical Registration
AZ State Board of Technical Registration
In AZ Pest Control Inspectors must be licensed by
a. Dept. of Agriculture through Pest Management Division
b. Dept. of Ghost Busters
c. Dept. of Environment - ADEQ
d. Dept. of Waste Management
Dept. of Agriculture through Pest Management Division
Mobile homes can be considered real or personal property. In order for the mobile home to be considered real property, what must be recorded?
a. An exemption from the Department of Housing
b. An affidavit of affixture
c. An exemption certificate from the County Assessor
d. An exemption letter from the manufactured housing dealer
An affidavit of affixture
If the landlord does not want the tenant to remove any trade fixtures:
a. the landlord can demand that the tenant leave them
b. they must remain in the rental space if the landlord pays tenant market value for the fixtures
c. the tenant has the right to remove them before the lease is over
d. none of the above
the tenant has the right to remove them before the lease is over
A non-resident license applicant must consent to:
a. a certificate of specific performance
b. the appointment of the real estate commissioner as agent or attorney-in-fact
c. submitting a copy of his/her birth certificate
d. Corpus Delicti
the appointment of the real estate commissioner as agent or attorney-in-fact
Which of the following would be classified as real property?
a. a copper mine
b. a titled trailer
c. a new mobile home at the dealer’s showroom
d. draperies that match the bedspread
a copper mine
A tenant decided to move their seafood business at the end of the current lease term. They are starting to remove their built-in freezers from their current location and the owner told them not to remove them. Which of the following statements is correct?
a. The owner may keep the freezers but must pay fair market value for them
b. the owner can keep the freezers and pay nothing
c. the tenant can keep the freezers and pay the owner for them
d. the tenant can keep the freezers and pay nothing
the tenant can keep the freezers and pay nothing
What criteria must be met if a taxpayer would want to be eligible for the $250,000 exemption for capital gains?
a. The person can only own 1 house
b. The person must be living in the house 2 out of the last 5 years
c. The house must be a primary or vacation home
d. The house can be located in any state
The person must be living in the house 2 out of the last 5 years
To sell mobile homes in AZ when they are considered personal property, you must be licensed by the:
a. Department of commerce
b. Department of Real Estate
c. Arizona Department of Housing
d. The Arizona Mobile Home Commission
Arizona Department of Housing
Billy and Gina have enjoyed traveling the country in their mobile home but now decided to permanently affix the mobile home to their land and use it as their primary residence. What is the process for changing the status of their home from personal property to real property (retiring the title)?
a. notify the department of motor vehicles
b. record an affidavit of affixture at the county recorder’s office
c. notify the department of real estate
d. do nothing because it will automatically convert to real property
record an affidavit of affixture at the county recorders office
Pest control inspectors are licensed by
a. Dept of Pest Management through the Ag Division
b. Dept of Ag through the Pest Management Division
c. AZ state Board of Technical Registration
d. AZ Dept of Environmental Quality
Dept of Ag through Pest Management Division
