Missed questions pt 6 RE exam

Among the many papers that must be sent to a buyer in a planned community is a notice that the buyer understands the legality of the declaration, bylaws, and rules of the association. In Arizona, how long does the buyer have to sign and return the notice to the HOA?

14 days

In Arizona, when a public report is issued on a proposed subdivision, how long does a developer have to provide a copy to all reservation holders?

15 calendar days

What is the maximum plot size for a lot in a group of 10 lots in order for the land to be considered unsubdivided?

160

A property is 50 square yards. How many square feet is this?

450 square feet

Related to title insurance, what is "subrogation"?

A covered party grants permission to the title company to pursue the party who caused a claim or loss.

Which of these choices is NOT part of the operation plan that CAGRD has to submit every 10 years?

A detailed report on how groundwater is used inside INAs

In Arizona, foreclosures are usually conducted non-judicially because ______.

Agreement to do so is given by the power-of-sale clause in the deed of trust

What's the name of the act that requires public accommodation areas to be accessible?

Americans with Disabilities Act

A CMA or a BPO is an example of ______.

An informal estimate of market value

Which of the following is true about the statute of frauds?

Any form of written contract, including email communication, may be considered "in writing" and binding.

Which of the following is true about the Federal Housing Administration's qualifying standards for a mortgage loan?

Are somewhat less stringent than standards for conventional loans

Arizona fissure maps can be found through the ______.

Arizona Geological Survey

ABC Bank in Arizona financed Betty's purchase of a three-bedroom home a few years ago. She kept up with the payments on the loan until a few months ago but is now in default. How will ABC Bank most likely go about initiating the foreclosure process?

Ask the trustee on the deed of trust to record a Notice of Trustee's Sale with the county.

If a seller asks a buyer to waive the inspection contingency, how could the transaction process transpire and still protect the buyer?

Buyer has inspection, buyer makes offer, seller accepts offer

The formula for net to seller is sales price x (100% - _______).

Commission rate

What type of loan meets certain criteria that are accepted by Fannie Mae and Freddie Mac?

Conforming loan

______ allow Arizona licensees to pay commissions to and receive commissions from out-of-state brokers.

Cooperation agreements

One of the following licensees' actions would constitute commingling. Which is it?

Cynthia deposited her client's earnest money check into her personal checking account until she had a chance to transfer it to the brokerage's trust account.

Mario lives in a state that requires an abstract of title for property conveyance. The chain of title is broken approximately 50 years prior to the current date. Which of these properly identifies the status of Mario's title?

Depending on his state's laws, Mario may have marketable title.

Which type of deed conveys real property from a decedent's estate to a buyer?

Executor's deed

Local authorities lack police power over which of the following?

Federal government construction projects

After owning a tattoo parlor for 12 years, Gilbert sold it. Gilbert's accountant calculated a $46,000 capital gain. Which one of the following statements is true?

Gilbert will pay tax on the gain at the long-term capital gains rate.

Which entity typically enforces the code restrictions and licensing and insurance requirements for contractors, thereby enforcing the building code?

Local building department

Harmony is looking at the legal description on her purchase contract. It mentions that the plat of her property is recorded in Map Book 12, page 14, at the county courthouse. What type of legal description is this?

Lot and block

A ______ is a ratio that compares two quantities.

Rate

The WQARF supports the Arizona Department of Environmental Quality to protect the state's ______.

Soil and groundwater

Steven has made a down payment for a timeshare at the Boulders. After discussing the timeshare with his buddy Josh, who's a real estate professional, he discovered the Boulders didn't have a public report on file with the Arizona Department of Real Estate. What recourse may Steven have?

Steven's sale can be voided and he has a right to rescind the contract.

On which principle of value is the sales comparison approach based?

Substitution

In the case of a ______, the lease terms, including the rent, may not be changed during that time.

Tenancy for a specific term

After a few meetings, the Stinsons sign a listing agreement with broker Vera so she can sell their house. The house has already generated interest from a potential buyer named Sergei, who has spoken with Vera about the house's price and square footage. Which of the following is true about this situation?

The Stinsons and Vera have brokerage relationship agreement.

Jeanine has an exclusive right-to-sell agreement with her listing agent, Tera. Which of these statements about Tera's compensation is true?

The exclusive right-to-sell agreement means that, under contractual obligation, the broker will be paid no matter who brings the buyer to the transaction.

What role do the principals play when an Arizona real estate contract is in escrow?

They're the parties who determine conditions to be met and perform them.

Soren is an appraiser. As such, what guidelines must he follow?

Uniform Standards of Professional Appraisal Practice (USPAP)

Kevin and Regina sold their property to Vickey using a general warranty deed. Which one of these statements is true?

Vickey is the grantee.

Delilah contracted with Chris to purchase his property, and contracted with Harrison to sell the same property to him. Both closings occurred on the same day and both deeds were recorded the same day. What is this type of transaction called?

Double escrow

An easement is one type of encumbrance that can affect a property. Which of these statements about easements is true?

Easements are often established by a written agreement between the parties.

Jane and Mark are under contract on the $290,000 purchase of Jane's house. A week before closing, Jane's home suffered $32,000 worth of damage from a severe hail storm and tornado. What are the options?

Either Jane or Mark may terminate the contract since the damage exceeds 10% of the purchase price.

When is compensation generally paid, once it's been earned for a transaction?

Either at closing or immediately upon client default

Which one of the following tasks must licensees perform for seller clients?

Ensure that the buyer's earnest money is deposited.

Which written statement will be used to consider ways to minimize a project's negative impact on the environment?

Environmental impact statement

Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from familial status discrimination?

Housing for Older Persons Act of 1995

Which of the following is a quality of a marketable title?

It allows the owner to mortgage the property.

What are accrued expense items?

Items to be divided proportionately between the buyer and seller that the seller owes

What happens to any junior liens on the property at a non-judicial foreclosure in Arizona?

Junior liens are extinguished by the sale.

Which of the following clauses is included in Fannie Mae's multi-state note?

Late charge

Your client Tino is selling 15 acres of property. The land includes a well, and the new owner, Margaret, is also buying the water rights. Which statement about this situation is true?

Margaret has to supply ADWR with the new ownership information.

Areas with a clay-based soil can benefit from what type of drainfield alternative?

Mound system

Comparative market analysis is most effective when a licensee limits the data collection time frame for sold properties. A CMA should look at properties that sold within ______.

No later than three to six months ago

Frank is representing Jonathan in the sale of his home. A buyer approaches Frank at Jonathan's open house, and Frank agrees to represent her in purchasing Jonathan's house. What must Frank do to avoid an illegal dual agency situation?

Obtain dual agency consent from all parties.

Brandon has a right-to-use timeshare. What can he NOT do with this type of timeshare?

Pass the timeshare on to an heir.

In a hot market, when all other sellers are listing at or above market rate, what pricing strategy will likely induce a bidding war?

Pricing just below market value

The buyer you're working with doesn't want to enter into an agency relationship. However, the buyer begins to rely more and more on your advice and, indeed, implied agency has begun! You could have avoided this issue by providing appropriate disclosures, but now that you've created implied agency, what should you do?

Ratify the implied agreement by getting a signed agency agreement.

Rene has been charged with misrepresentation. In order to make a judgment on the charge, the commissioner may ______.

Request Rene's criminal records

What responsibility does the seller's agent have to the seller?

Seek a sale at the best price at terms that are acceptable to the seller.

Which of the following statements is true regarding office exclusive listings?

The listing agent is choosing not to cooperate with/compensate other brokers, including a buyer's agent, by keeping the listing "in house."

The secondary mortgage market serves a very important role in real estate finance. Which of these statements best describes that role?

The secondary market purchases loans from primary lenders and helps keep credit available to loan originators.

According to custom, who pays the costs on the day of closing for property taxes, utilities, etc.?

The seller

A client of yours is selling a piece of property with a well attached. He's not allowed to use the well for irrigation, but he uses it to water his livestock. He can sell the water right separately from his property. What is true about this well?

This well has a Type 2 right.

In which of these scenarios is an Arizona property seller allowed to initiate forfeiture after borrower default?

When the transaction uses an agreement for sale.

In Arizona, when must an owner of unsubdivided land provide copies of advertising and marketing materials to the commission?

Within 21 days of usage

Aldrich is conveying marketable title to a property buyer. Should he also furnish a title insurance policy?

Yes, because title defects not revealed in a title search can crop up even with marketable title.