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The Simpsons are buying a five-acre tract that has always been part of a larger parcel. When the owners of the large acreage decided to subdivide it, they needed to have a legal description created for the five-acre lot. What was used as the starting point for creating that legal description?
A survey- is used to create, verify, or correct a legal description. It's a professional on-site measurement of the lot lines and dimensions of a property.
Which of the following types of properties may be eligible for purchase by Freddie Mac?
A triplex purchased as a primary residence Eligible property types include a primary residence that is a single-family home, condo, or manufactured home or properties with up to four units, single-unit second homes, and residential investment properties.
How does Arizona determine the property tax rate for a given property? Topic: Government Rights in Real Property
Add the primary and secondary tax rates Tax rates are equal to the sum of the primary and secondary tax rates and are determined annually based on budgetary needs.
When you're designing your business cards as an Arizona broker, what information must you include with your name?Commissioner's Rules
All advertisements that show your name must also include the name of the brokerage with which you're associated.
What is a reverse exchange? Topic: Income Tax Aspects of Real Estate
An investor finds and closes on an investment property and then decides to immediately sell another investment property. An investor can do a tax deferral "backward." This is called a reverse exchange. They're still strapped to the 45- and 180-day deadlines
Which of these property managers would require a license to perform property management services in Arizona? Topic: Property Management
An off-site property manager who manages three commercial properties Property managers who live off-site are generally required to be licensed in Arizona, especially if they manage more than one property.
Who needs to obtain a mortgage loan originator endorsement and register with the Nationwide Mortgage Licensing System and Registry?
Anyone who acts as a mortgage loan originator must obtain an MLO endorsement and register with the Nationwide Mortgage Licensing System and Registry.
How is ad valorem property tax calculated? Topic: Government Rights in Real Property
By multiplying the property's assessed value by the tax rate
Which of these is the best description of what CAGRD does?
CAGRD provides a system for residents and water providers to demonstrate an assured water supply in accordance with state rules
Arizona licensee Kurt is within his original license period, but his license was cancelled. He resolved the cancellation issues, and is eligible for reinstatement through ______.
Cancelled licenses that are within the original license period (unexpired), and where the reason for cancellation has been resolved, are eligible for reinstatement by re-application.
Which of the following situations is an example of a non-agency relationship?
Dutton was previously a licensee. He's selling his home, and he wants Wanda, who's currently licensed, to assist him with the paperwork.
A buyer with a 15-year, $250,000 loan at a fixed 5.5% interest rate has a monthly principal and interest payment totaling $2,042.71. What is the total amount of interest the borrower will pay over the course of the loan?
First, multiply the monthly payment ($2,042.71) by the total number of payments (180 = 12 payments/year for 15 years). The total paid back is $367,687.80. Then subtract the original loan value: $367,687.80 ‒ $250,000 = $117,687.80.-
The ______ clause protects the borrower's assets that aren't part of the voluntary lien from a deficiency judgment in case of foreclosure. Topic: Residential and Commercial Financing
If a lender uses a judicial foreclosure, it may also ask for a deficiency judgment, unless the exculpatory clause is present in the security instrument-Exculpatory
Seller Adelaide and buyer Colin close on a transaction for two rental condos on March 15. They live in a state where the seller is considered the owner of the property on the day of closing. The combined rental income per month is $4,000. How much rental income can Colin expect to earn in March?
In many states, the seller is considered the property owner on closing date. Divide the monthly income by the days in March ($4,000 ÷ 31 = $129.03) for daily rent, then multiply that by the 16 days Colin will own the property for the total of $2064.48
How does title insurance affect the lender?
It protects the lender from loss due to defective titles. The property is used as collateral (security) for the loan. Title insurance protects a lender against the loss of security as a result of a title problem.
Acknowledgment is a key element to a deed. Why should a grantee always receive an acknowledged deed? Topic: Acquisitions/Transfer of Title
It provides the grantee title protection against other purchasers of the same property from the grantor.
Allen and Lewis are friends who each recently purchased real estate. Allen purchased a patio home in a small town an hour from the city, while Lewis purchased a condo in a really hot area near the city center. Although they paid similar amounts for their properties, Lewis' condo is worth much more two years later. Which economic characteristic does this demonstrate?
Just remember the mantra "location, location, location!" A property's value is largely dependent on where it is and the desirability of that location. AREA PREFEREANCE
Allen and Lewis are friends who each recently purchased real estate. Allen purchased a patio home in a small town an hour from the city, while Lewis purchased a condo in a really hot area near the city center. Although they paid similar amounts for their properties, Lewis' condo is worth much more two years later. Which economic characteristic does this demonstrate? Topic: Property Interests, Estates and Tenancies
Just remember the mantra "location, location, location!" A property's value is largely dependent on where it is and the desirability of that location. AREA SELECTION
All of the following are part of the ADEQ's core functions EXCEPT ______.
Licensing- is not a core function of the Arizona Department of Environmental Quality.
Which one of the following statements about income tax rates is correct? Topic: Income Tax Aspects of Real Estate
Long-term capital gains are taxed at a lower rate than ordinary income. Short-term capital gains are taxed at the same rate as ordinary income.
Which of the following duties does a licensee in Arizona owe only to clients? Topic: Commissioner's Rules
Obtaining and effectively communicating material information. Arizona licensees owe fairness, honesty, and lawfulness to all parties to a transaction, but obtaining and effectively communicating material information is a duty that licensees owe only to clients
Five competing licensees in the same area agreed to cooperate in setting a standard commission rate for the area. This makes them guilty of a per se antitrust violation. What is a per se antitrust violation? Topic: Cooperative Nature of Real Estate
One in which no intent needs to be proven to establish a violation has occurred With a per se violation of antitrust law, such as price fixing, guilt is determined on the face of the evidence. No intent needs to be established.
Which act was established in 1974 to protect private information held in a system of records by federal agencies-Disclosure and Consumer Protection
Privacy Ac
Arizona licensee Kurt is within his original license period, but his license was cancelled. He resolved the cancellation issues, and is eligible for reinstatement through ______. Topic: Real Estate Statutes
Re-application licenses that are within the original license period (unexpired), and where the reason for cancellation has been resolved, are eligible for reinstatement by re-application.
Which of the following statements is true of investment properties?
Real estate can be leveraged; leveraging is the ability to use a small amount of cash outlay to control a larger-value asset.
Which of the following should be filed in the questionnaire section of the Arizona public report application? Topic: Real Estate Statutes
Subdivision information- is filed in the questionnaire section, while the subdivision map is included in the required documents section.
Which act created an agency to investigate antitrust practices? Topic: Cooperative Nature of Real Estate
The Federal Trade Commission Act created the FTC. This agency investigates practices and will stop companies and individuals from committing antitrust violations.
Regarding 1031 exchanges, which of these statements regarding debt load in an exchanged property is true? Topic: Income Tax Aspects of Real Estate
The debt load for the new property must be equal to or greater than the debt load for the previous property, or the difference may be taxable. The new property's debt load must be equal to or greater than the debt load for the previous property, or the seller may owe taxes on the difference.
As a property manager, Lisa most likely provides which of the following services?
The primary services a property manager provides include screening and retaining new tenants, handling evictions, and collecting rent.
What's the primary purpose of the federal Fair Housing Act?
To protect buyers' and renters' right to have choices in housing without discriminatory limitation
Temporary brokers' licenses might be granted by the commissioner to licensed or unlicensed individuals for the purpose of ______. Topic: Real Estate Statutes
Tying up business matters for deceased or incapacitated brokers Temporary brokers' licenses are granted in order to tie up business matters for deceased or incapacitated brokers. The licenses last for up to 90 days, except when a special exception is granted for up to 15 months.
Lack of capacity has made the contract non-binding, so the contract is _____. Topic: Contracts and Contract Law
Voidable The two parties may still wish to be bound by the contract, but the party lacking capacity has the option to terminate.
A surveyor created a lot and block survey for a new residential development. The first thing she did when she surveyed the new neighborhood was to reference a metes and bounds land description. From there, she divided the land into numbered lots and blocks. This output is known as a _______.
he plat map- is a detailed map of the given land, including streets, access roads, and measurements between features.