Final exam study

What's the purpose of the nondisturbance clause in a lease?

It assures tenants they won't be evicted if they adhere to lease terms.

A ______ is a method of conveying real property from one party to another.

deed

How long is a term for an Arizona real estate advisory board member?

Six years

The Equal Credit Opportunity Act is regulated by the ______.

Consumer Financial Protection Bureau

The primary mortgage market operates to _____.

originate loans

Ana rents a condo in a complex in which children aren't allowed to play outside after dark, with or without their parents. Is this an example of discrimination?

yes

Beverly bought a commercial piece of property two years ago for $19,000. Based on the average annual commercial depreciation rate, how much is the property worth today?

$18,605

When a consumer suffers damages resulting from the real estate-related activities of an Arizona licensee, the consumer has ______ year(s) from the time of the incident to file legal proceedings against the licensee.

5

For many prohibited acts, Arizona licensees may be disciplined if it appears that they, within the last ______, have committed those acts while in the performance of any real estate activities.

5 years

When Ray receives a Notice of Trustee's Sale, he knows his property is in foreclosure, and he needs to hustle to find a way to reinstate his loan. He hasn't got much time, though Arizona law requires a minimum of ______ between the date the notice is recorded and the date of the sale.

90 days

What's contained in a UCC security agreement?

A complete description of the personal property used as collateral

Jill is selling her property and hired David as her agent. David brings another client, Kirk, to see the property, which Kirk is interested in purchasing. What kind of agent is David acting as in this scenario?

A dual agent

Which of the following properties is a REO?

A duplex that a lender has tried to sell by foreclosure and failed

Which one of the following scenarios describes an adverse condition that would need to be disclosed?

A hail storm damaged some shingles last year.

Sondra, a buyer, signs all the required mortgage documentation, promising to make all payments to her lender. Unfortunately, Sondra falls on hard times and misses multiple payments, and the bank indicates that it's going to foreclose on her. The foreclosure proceedings are more difficult for the lender because Sondra holds the deed to the land. What kind of state does Sondra live in?

A lien theory state

What is an airport influence area?

An area that experiences aircraft noise and overflight of a 65-decibel or greater average, or an area near a runway that experiences significant aircraft noise and overflight

Alexis has been awarded a judgment for damages against an Arizona licensee. Before filling a claim to the real estate recovery fund, Alexis must first ______.

Attempt to collect remuneration from the licensee

After switching careers, Alice just graduated from culinary school and is looking to purchase a house. Until she gets her feet wet with her new job, she knows the cost of living with her mortgage is going to be tight. Which mortgage might help her manage her expenses each month?

Budget

Matt is a developer who's obtained a permit that he must post on the job site. Which entity inspects the various phases of his work and signs off on the permit?

Building department inspectors

Which party to the loan approval process is responsible for completing a loan application and supplying supporting documentation?

Buyer

Which of these statements about an equitable property interest is true?

Buyers obtain an equitable interest in a property when any mortgage loan is paid in full.

You should help sellers ______ for repairs they want to make to their home prior to selling.

Calculate the return on investment

Zara plans to open restaurant and has found a property that will work if she renovates the first floor. The building is a Victorian located downtown in an area that's zoned for historic preservation. What's the best advice Zara's real estate broker could give her?

Check with zoning due to the historical building and location

Cleaning solvents, styrofoam, and aerosol propellants all contain what gaseous compound?

Chlorofluorocarbons

Which act was the first to prohibit any exceptions for discrimination based on race or color?

Civil Rights Act of 1866

Technology poses risks for everyone, but real estate licensees need to be especially careful. Which of the following is true about risks related to computer systems?

Client data can be exposed when a brokerage's computer system is compromised.

A new apartment building is going up downtown. The owner secured interim financing for the job. Which of these loan types is interim financing?

Construction loan

What's the term for a charge that a transactional party must pay at closing?

Debit

Broker Malcolm submits his client's purchase offer, then goes on vacation. When he returns two weeks later, he learns that a counter-offer was submitted, and the response date had expired. His client's offer was terminated because he failed to respond on time. This violation is an example of ______.

Demonstrating untrustworthiness or incompetency to act as a real estate broker

Which type of communication does the CAN-SPAM Act outlaw?

Email marketing with no "unsubscribe" option

Justin decided to build a privacy fence around his yard. He thought the fence was along the property line, but it turns out he built it one foot inside his neighbor's property. What will an inspector document as existing on the neighboring property?

Encroachment

Which form of ownership gives the owner full control over the entire property, and doesn't share the property with co-owners?

Estate in severalty

In general, what is the term for a person who's been placed in a position of loyalty and trust?

Fiduciary

After issuing a Notice of Immediate Termination—Material and Irreparable Breach to a tenant, what should a landlord do the same day?

File a Special Detainer Action.

When a seller's need is related to obtaining a specific price, what can a buyer offer to meet that need?

Full price or more than full price

Ginnie's Aunt Becca listed the old family mansion with Ginnie. Ginnie put it on the market for Becca, but then she and her cousins talked with Becca and decided they wanted to keep the property in the family. What's the best way to terminate the agreement?

Ginnie and Becca can mutually agree to terminate the agreement.

Marion gave her granddaughter Sheila the deed to a brand new home, on the condition that Sheila complete her PhD in astronautics. When Sheila dropped out of school and got a job as a greeter at a big box store instead, Marion ______ to regain ownership of the property.

Had to take legal action The estate granted to Sheila describes a fee simple subject to a condition subsequent, since it uses the phrase "on condition that." Marion's right of reentry requires her to take legal action to regain ownership if the condition is violated.

Brandon is interested in purchasing a piece of property, but before doing so, he'd like to verify the accuracy of the legal description. Which of these options will accomplish this?

Having a survey conducted

Georgina is an escrow agent who's holding funds for several transactions. Which of these statements about how she'll disburse these funds is true?

If the transaction doesn't close, Georgina will disburse the earnest money as instructed by the parties or according to state law.

Which of the following is a true statement about deducting interest on mortgages taken out in tax years between 2018 and 2025?

Interest on the first $750,000 of mortgage debt is deductible for married couples filing jointly or $375,000 for married couples filing separately.

What role does the Brownfields Law play in the assessment and cleanup of unused commercial/industrial sites that may contain hazardous waste?

It provides funds

Which of the following best explains how the statute of frauds protects consumers?

It provides requirements that certain contracts have to meet to be legally enforceable.

Widget Corporation just bought land on which it plans to build a new manufacturing facility. How is the land owned?

It's a joint tenancy.

Which of these scenarios is an example of nomination?

Jessie named Serena to purchase a property on his behalf. The agreement requires Serena to convey the property to Jessie immediately after closing.

Property manager Jack just took on a new client. In order to build a good relationship, Jack should _______.

Keep the property owner informed

What's meant by "minimum ethical standards"?

Licensees should strive to act at least at that level, and more if possible.

At what level are budgeting, site plan review, and building codes controlled?

Local

What is interest?

Money paid consistently at a particular rate for the use of borrowed money.

What is the borrower charged for all FHA loans?

Mortgage insurance premium

Which of the following is the price a lender believes the property will bring at a foreclosure sale?

Mortgage value

Nathan assisted with the purchase of a commercial building that will be used as a community center. He doesn't hold a real estate license, yet his actions didn't violate any license laws. What must be true about Nathan's situation?

Nathan is a public official whose salaried duties include real estate transactions.

Fair housing laws give homeseekers a legal right to which of the following?

No discriminatory limitations on communities or locations of housing

You're about to take a listing that has a safe room: 600 square feet of attic space that's completely finished, has a permanent heat source, and is accessed via a pull-down stairway. Can you add this to the total livable square feet?

No, because it lacks direct access from the main living area.

Gregory called his landlord to let him know a city inspector came by and left a notice that the paint on the house was peeling, which was against code and had to be remedied. Instead of his landlord having to put out a lot of money, Gregory suggested that he would paint the house over the weekend and deduct the cost of materials plus a modest amount from his next month's rent. Is this permitted under Arizona law?

No, because the work had to be done to meet housing code.

Which of the following is a duty that licensees are expected to perform for their clients, according to Arizona statute?

Perform all real estate activities without delay.

Which type of easement is acquired through years of use, with one person acquiring the permanent right to use another's property by doing so for an extended period of time?

Prescriptive easement

The fewer properties on the market, the greater the scarcity. What's the effect on prices?

Prices are pushed upward.

Which of the following lists the three major net expenses associated with commercial leases?

Property taxes, property insurance, common area maintenance

Jayne was tired of waiting for her subcontractor to get his part of the deal done. The agreed-upon deadlines came and went, and Jayne lost money waiting for the subcontractor to come through. She decided that if the subcontractor weren't going to honor his commitments, neither was she, so Jayne consulted with her attorney and then terminated the contract. This is an example of ______.

Rescinding the contract unilaterally

What disclosure form in Arizona is completed by sellers and divided into six sections that address the condition of the property?

Residential Seller's Property Disclosure Statement

Sam grants Steve a license to hunt deer on his property. Which of the following statements about the license is true?

Sam can revoke the license at any time.

Which section of a commitment identifies exceptions to title insurance coverage?

Schedule B-2

Everyone is excited about the new subdivision going in on the south end of the valley. It will have more than 400 new homes, a shopping center, a water park, and an extensive park system. People are so excited, in fact, that there is a long waiting list of people who want to buy into the community. According to Arizona law, what must the association do when one of those waiting-list members states his intention to buy?

Send the potential buyer notification of the association rules.

What types of capital gains may property owners encounter?

Short- and long-term

Which of the following is a benefit of deed in lieu of foreclosure?

The borrower's credit won't be negatively impacted.

Appraiser Victor is determining the insured value of a property. What is he evaluating?

The cost to replace or rebuild a property

John and Michelle received a general warranty deed when they purchased their house from Ted. A couple of months after they moved in, their neighbor, Bryant, drove his four-wheeler across their property to access the lake front. John discovered that Ted and Bryant agreed to an easement over Ted's property several years earlier. Which general warranty deed covenant does this represent?

The covenant against encumbrances The covenant against encumbrancesThe covenant against encumbrances assures the grantee that no encumbrances exist other than those that are publicly recorded or noted in the deed.

What is the AZ ROC?

The entity that licenses and regulates contractors in Arizona

In completing a CMA, finding a comparable property that had a quick sale may indicate which of the following?

The market for similar homes is good.

When licensees have disputes with one another regarding earning or splitting compensation, to whom or what entity would they direct their concerns?

Their employing broker

Listing agents with office exclusives sometimes engage in dual agency. What does that mean?

They represent both the buyer and the seller.

A ______ is a piece of real estate owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit based on the specific terms of a timeshare agreement, usually in one- to two-week intervals during the year.

Timeshare estate

Avery is about to close on his first home. What will protect him from financial loss if his ownership later comes into question?

Title insurance

Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's one purpose of this document?

To provide the estimated closing costs for Lawrence's loan

What standards do appraisers follow?

Uniform Standards of Professional Appraisal Practice

Which of the following is an example of the proper way to use a computer-generated CMA?

Use it as a tool, in combination with visiting comparables, checking sales history, and making adjustments for differences before suggesting a listing price.

Cassandra lives in a state managed by the riparian water system. She owns a house on a river. Which of the following is true in her case?

When Cassandra sells her house, she also sells the right to use the river.

A contract in which the parties trade a promise for a promise is ______.

bi lateral

A land contract, also known as an installment sales contract or contract for deed, is an agreement between which two parties?

buyer and seller

In what type of market could the buyer's strategy be to offer 10% below list price?

cold market

A local company wants to build a new office building. What type of loan will it most likely be seeking from its commercial bank?

construction loan

What's the term for an amount that shows up on the closing statement in a particular party's favor?

credit

Dee-Dee, a listing agent, has an exclusive right-to-sell agreement with her seller clients. She is providing a CMA, marketing the property, listing it on the MLS, and handling buyer inquiries. When she has a buyer on the line, she'll negotiate with the buyer's agent and prepare the offer to purchase. She works on a commission basis rather than for a flat fee. What type of listing service is she providing?

full service

Sonya's lease expired, but she hasn't yet moved out and she's not paying rent. Walt has started eviction proceedings. Sonya is considered a(n) ______.

hold over tenant

When a property management agreement is terminated, the property management firm must provide the owner with all contracts and keys ______.

immediately

Sophie only has 15% to put down on her new home. What might the lender require in order for Sophie to obtain conventional financing?

insurance

What's another name for a nonconforming loan?

jumbo loan

Larry is a developer who's taking a large parcel of land, dividing it into hundreds of lots, building single-family homes on those lots, and then selling the properties to homebuyers. What's Larry developing?

subdivision