Missed questions pt7 RE exam

Marvin is facing penalties from the Arizona Registrar of Contractors for contracting without a license outside of the handyman exemption. In addition to facing six months in the county jail, what is the maximum fine he faces for his first offense?

$2,500 plus an 83% surcharge

Buyers of timeshares in Arizona may cancel their purchases within how many days of signing the contract?

10 days

If two parties settle after they've received notification of their share of cleanup responsibility, the ADEQ will provide them with a ______ discount.

25%

Which of the following is true of agency agreements?

A listing agreement is an express agreement.

Carmen is a repeat offender for contracting without a license. What financial penalty does the AZ ROC stipulate for repeat offenders?

A maximum fine of $2,500 plus an 83% surcharge

Which of the following is a true statement about how adjustments are made in the sales comparison approach?

Appraisers adjust upward when a comparable is missing a feature found in the subject property.

In a planned community, the nonprofit corporation or unincorporated association of owners to which members pay fees is called the ______.

Association

Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the property divided?

Barbie owns two-thirds, and Midge owns one-third.

George is an Arizona salesperson representing a seller client in a real estate transaction. His employing broker, Hannah, is preparing a written disclosure to give to the transaction parties regarding who will receive compensation from the transaction. When will Hannah need to provide the compensation disclosure?

Before closing

Which of the following is the most serious consequence of treating a customer as a client?

Breaching your duty to your actual client

A husband and wife both consider themselves to be African American, although the husband has much darker skin and hair than his wife. When the husband went to the Valley Falls apartment manager's office to request a rental application, he was told there were no vacancies. The wife went in a day later and received an application. This may be discrimination based on ______.

Color

What type of notice results from publicly recording a title transfer?

Constructive notice

Which of the following actions is ADWR authorized to take?

Create and implement new policies for an AMA.

If Carol and Doug Shields died intestate, their estate would be conveyed to their heirs through which method of alienation?

Descent

A buyer client is suing Jaime for an inadvertent mistake she made in a real estate transaction. What insurance policy covers this type of situation?

Errors and omissions insurance

Cooperative shareholders under a condop structure have ______.

Flexibility in selling and subletting, similar to that of condominium owners

A tenant has a small office space in a professional building. The set monthly lease payment includes maintenance of the common areas of the building such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for the space. The payment also includes taxes and insurance. The landlord takes this payment and pays the individual expenses himself. What type of lease does the tenant have?

Gross lease

Nelson just retired from the Air Force and wants to move to Tahiti. His home is located within a military training route, so what disclosures must be made to potential buyers when selling his property?

He must disclose that the home is within a military training route on the SPDS and on the affidavit of disclosure.

When there is no agency agreement in place between you and a buyer, which of the following duties do you owe that buyer?

Honesty and fairness

Manuel tells his associated licensees that they must cooperate with and compensate cooperating brokers. Is this true or false?

It's false, because compensation isn't always required for cooperating agents.

Max has a written agency agreement with Rufus in which Max will receive all of the listings in the subdivision that Rufus purchased (with Max's representation) and is developing. One day when Rufus is visiting the site of the subdivision, a work truck accidentally runs him over and he's seriously injured. Rufus can no longer run the development of the subdivision. What happens to Max's agency coupled with interest?

It's still in place because it doesn't terminate on the death or incompetence of the principal.

Evelyn received notice of an ADRE audit of her clients' trust accounts. Thank goodness she's a stickler for record keeping. Which three required records has she produced on a monthly basis to keep her in compliance?

Journals, bank statements, and reconciliation report

The doctrine of "use it or lose it" is known as the doctrine of ______.

Laches

Which of the following is not among an Arizona employing brokerage's responsibilities?

Maintaining employees' licenses through registration and renewal

You're representing Abe and Ben in a dual agency situation. Abe tells you something that would give Ben a distinct advantage if he knew. Do you tell Ben?

No, because you can't share one client's confidential information with another client.

Under Arizona law, tenants have certain obligations regarding bed bugs. Which of the following is one of those obligations?

Not moving materials that are known to be infested with bed bugs into a dwelling

For Arizona residents to take advantage of the homestead exemption, what must they do?

Nothing. It's automatic.

Tip-Top Title, an Arizona title company, is the trustee for a home loan secured by a deed of trust. When the borrower defaults and the lender decides to foreclose, Tip-Top Title records the appropriate notice with the county to start the process. What does Tip-Top need to do as the next step in the process?

Notify the trustor and the beneficiary of the recorded notice within five days.

When representing a property owner, you must ______ before you're allowed to place a sign on the property.

Obtain written permission from the property owner

A licensee is to keep a listing in house, and is not cooperating or compensating other brokers. What type of a listing is this?

Office exclusive

Liz is preparing to renew her Arizona salesperson's license. Before her renewal deadline, she'll complete her CE credits, fill out the renewal application, and ______.

Pay a renewal fee

Jose sent out a written notice to his tenants that a crew would be power washing the exterior of their apartment buildings. This is an example of ______.

Preventive care

What's the best definition of real property?

Real estate, plus all of the interests, benefits, and rights included in ownership

Where can a party reviewing a title commitment find basic details about the transaction?

Schedule A

Ari owned acreage in a rural area. He sold a small portion of it to a neighbor in an informal transaction but made no record of the sale or change of ownership. A developer offered Ari several million dollars for the entire acreage, and Ari eagerly accepted the offer. What covenant is Ari in danger of violating?

Seisin

Trinity has been named executor of her uncle's will. What does this mean?

She's responsible for carrying out the will's provisions.

If a private individual owner doesn't own more than three single-family homes at one time, which exemption from the Fair Housing Act could apply?

Single-family housing sold or rented without the use of a broker

Which of the following types of residential dwellings do life insurance companies purchase from the secondary mortgage market?

Single-family on one lot

Which of the following should be filed in the questionnaire section of the Arizona public report application?

Subdivision information

What source of law enables real estate licensees to draft or fill out documents relating to real estate transactions?

The Arizona State Constitution

Which of the following statements is true about timeshare policy cancellations?

The buyer may cancel within 10 days after contract signing, without penalty.

In a judicial foreclosure in Arizona, who bears responsibility for the foreclosure sale?

The county sheriff

What would a landowner applying for a zoning variance have to demonstrate to the zoning board of appeals?

The current zoning restrictions are causing the owner unnecessary hardship.

Which of the following occurs if a tenant dies during the term of an estate at will tenancy lease?

The leasehold automatically terminates.

When a borrower has paid off the loan, how is the release handled if the security instrument is a deed of trust?

The trustee executes and records a deed of reconveyance and the lender returns the note to the borrower.

Clarence is a Gilbert broker who's performing a three-step reconciliation. He's compared the bank statement balance—adjusting for any outstanding checks or receipts—to the balance on his receipts and disbursements journal for the same date. How should these numbers compare?

They should match.

Which of these steps is most likely to occur first in the closing process?

Title commitment

A creditor holding a junior lien on an Arizona property that's being foreclosed on judicially has which of these rights?

To pay off all amounts owed to the senior lender and then continue with the foreclosure

Which form of alienation occurs with the owner's consent?

Voluntary

John and Marta are ecstatic! They just signed their closing papers and can't wait to move in. When can they move in?

When the deed is recorded

Arizona employing brokers are required to establish _____ to supervise and control the activities of their employees and satisfy the state's requirements.

Written policies and procedures

You've had your Arizona real estate license for less than a month when you get the opportunity to work with an out-of-state licensee. Your buyer client is moving to Utah, and you're helping him find a home there. He's just given you a check for earnest money. Which of the following is true?

You must handle the funds in accordance with Arizona rules.

You are representing the buyer in a house purchase. Another agent is representing the seller. Which of the following statements accurately reflects the agency duties owed?

You owe the seller the duty of disclosure.

Which of the following is true about record retention?

You should maintain all transactional records for at least five years.