Missed questions RE AZ

A homeowner has $80,000 of principal left to pay on her mortgage. Her home was recently appraised at $156,000, which is $13,000 more than what she purchased it for. How much equity does she have in her home?

$76,000

Troy, a seller, paid his $3,600 annual property tax bill upfront in January. He sold his property and closing occurred on October 1. How much will the buyer owe Troy for taxes, assuming a statutory year?

900

What's a participation certificate?

A mortgage-backed security issued by Freddie Mac

What's an outlot?

A parcel of land left over after the subdivision is built

Which phase of the investment cycle is best known for write-offs and, depending on the project, tax credits?

Acquisition

What's the main difference between an assured and an adequate water supply?

An assured water supply must be proven before building in an AMA. An adequate water supply is the standard for many areas outside AMAs.

What's a discount point?

An upfront charge to make up for the difference between the rate the borrower is receiving and the rate the lender normally requires

What is an accident potential zone in Arizona?

Areas surrounding runways and military facilities that are incompatible with land uses

Among other things, what should a listing in the MLS always include?

At least one photo

When are the mortgage loan commitment and title insurance contract signed?

At the closing

Why would a buyer want to know if any easements or encroachments exist on a property?

Both easements and encroachments affect the property's lot size, enjoyment, and use, which can affect a property's value.

When a landowner voluntarily creates a legal agreement with a land trust or government entity that includes permanent use and development restrictions on the land, that agreement is called a ______.

Conservation easement

What's an antitrust violation's central element?

Conspiracy

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

Which type of REITs specialize in owning certain building types, such as apartments or office buildings?

Equity REITs

Which act gives consumers the right to access information held by consumer reporting agencies?

Fair Credit Reporting Act

What entity enforces the Telephone Consumer Protection Act?

Federal Communications Commission

Which act created an agency to investigate antitrust practices?

Federal Trade Commission Act

The Jacksons are having trouble paying their mortgage but expect their financial situation to recover within a few months. They go to their lender and work out a deal that includes a ______. The temporary suspension of loan payments works for everyone in this situation.

Forbearance

Mike and his buddy Daryl own a business together. They are jointly and separately liable for any debts the business may incur. What type of partnership do Mike and Daryl have?

General partnership

Which statement most accurately describes the role and function of Ginnie Mae in the secondary mortgage market?

Ginnie Mae insures MBSs made up of government-insured or -guaranteed loans.

One of your clients wants to build several large golf courses in the Phoenix area. Which of these water problems will he likely face?

He'll face critics, since golf courses in and around the Phoenix area consume more water than golf courses elsewhere.

Which of the following properties would be covered by the Arizona Residential Landlord and Tenant Act?

Henry has a year-long rental agreement for a duplex with his landlady, Jane, who lives next door.

What must be done for a fee to be considered acceptable under RESPA?

It must be disclosed to the client.

What's another name for a nonconforming loan?

Jumbo loan

When consumers make a small down payment, borrow the remaining amount of the purchase price from a lender, and reap the rewards off of the full investment value, they are demonstrating what concept?

Leveraging

An Arizona lender is about to pursue judicial foreclosure. In addition to filing the petition to foreclose, it will file and record a ______.

Lis pendens

Which of these is NOT an option for a seller under an Arizona agreement for sale when a buyer defaults on the loan?

Non-judicial foreclosure

Elaine owns a home on a flag lot behind James. Her easement for a common driveway runs through James's property. What kind of ownership rights does Elaine have of the driveway that runs through James's property?

Non-possessory

What's a percent?

Part of 100

Which of these items will be either accrued or prepaid?

Prorated

Trust funds have better protection when deposited into trust accounts because they are ______.

Protected from seizure

Which of the following is one of the desired outcomes of Freddie Mac's activities?

Provide stability in the U.S. housing market

What's a key feature of the Federal Housing Administration's loan program?

Provides mortgage assistance to borrowers in danger of default

Charlise has an important meeting this afternoon and dropped by her firm's Mesa office to restock her supply of real estate employment agreements because she'll need one for her meeting. What do we know about her meeting?

She'll be meeting with a potential client.

You're accompanying your buyer client, Charlene, to an open house. She brings along her best friend, Hillary. What's your relationship to Hillary?

She's not a client, customer, or third party.

What source of state law is a series of laws that are enacted by the state legislature and upheld by regulations?

The Arizona Revised Statutes

Peggy signed an offer to purchase Myrtle's house, and Myrtle accepted. Peggy filed for bankruptcy before the contract was executed. Which of these statements best describes what happens now?

The contract will terminate by operation of law.

To calculate anticipated annual rent for a property, a property manager should take into account two primary factors, which are ______.

The per-unit rate and the occupancy/vacancy situation

Landlord Lenny sells the four-family flat he owns. He notifies each tenant about this sale in writing. What else does Lenny need to do to ensure he's no longer liable under the rental agreement or law?

There's nothing else he needs to do.

The mortgage industry is made up of the primary and secondary markets. What's the role of the primary mortgage market?

To originate and fund mortgage loans to consumers

What's the role of the primary mortgage market?

To work with borrowers in originating and funding mortgage loans

Within how many days of a tenancy's termination and the tenant moving out of the dwelling must the landlord provide the tenant with a list of the deductions and the amount due and payable to the tenant in Arizona?

Within 14 days (not including weekends and legal holidays)

Which of the following is NOT a right of the government to take private property?

Zoning

Steve is preparing a comparative market analysis for the Joneses and has selected three comparable properties. How many adjustments should Steve make to the Joneses' property?

zero

The water and sewer for a property closing on January 10 is billed in arrears. Assuming the sellers own the property the day of closing, which formula(s) can be used to calculate their prorated debit using the calendar year method?

(Monthly expense ÷ 31 days) × 10 days

Arizona judgment liens are valid for a period of 10 years from the original entry date. When creditors want to renew a judgment, they can file a lawsuit or an affidavit of renewal of judgment with the clerk of courts. The affidavit must be filed within ______.

90 days of the expiration of the judgment/prior renewal

Your seller client George wants to make a lot of repairs to his home prior to selling it. What advice would you give him?

Advise him that if he intends to sell or lease the property within one year, he won't be able to take advantage of the handyman exemption and will need to hire a licensed contractor.

Which type of analysis performed by a property manager is similar to a highest and best use analysis that an appraiser would use?

Analysis of alternatives

A real estate transaction has a closing date of April 20. The seller, who's responsible for closing costs up to and including the day of settlement, has already paid property taxes of $1,447 for the calendar year. If proration is based on a statutory calendar, the buyer will be_______ on the closing statement.

Debited $1,005

Homeowner Lynn is underwater on her home loan and is having difficulty making her monthly payments. Which of these options would allow Lynn to avoid foreclosure, even though she'll lose her property and will need lender approval?

Deed in lieu of foreclosure or short sale

Marsha and Laurie are buying a piece of land from AJ and Brianne. The anticipated closing date is August 3. Which of these is the most likely scenario for an Arizona closing?

Marsha and Laurie, their agent, and the closing officer will meet separately from AJ, Brianne, and their agent.

Which of the following is NOT true about mechanic's liens in Arizona?

Mechanic's liens take priority over all other liens attached to a property.

In what type of life estate does property ownership return to the original owner when the life estate holder dies?

Ordinary with reversion

Which scoring system is a way for insurance companies to rank the risk of a person filing an insurance claim?

Personal insurance score

Which of the following is the name of a penalty lenders charge when borrowers repay their loans earlier than expected?

Prepayment penalty

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

How many years does the Arizona Registrar of Contractors retain license applications and licenses of all statuses on record?

Seven years

To be considered a subdivider in Arizona, how many lots in the same subdivision must be owned?

Six

Latrell purchased an old warehouse with the intent to create shared studio space for artists. However, he didn't perform due diligence before the purchase, and it turns out that there are hazardous materials that need to be cleaned up first. Latrell took the prior owners to court, and the court ruled that Latrell is responsible for the costs of cleanup. What kind of liability is this?

Strict liability

Along with property ownership, rights are granted to use the land's physical components. Which right allows a property owner to use or sell the underground resources, such as natural gas and minerals?

Sub-surface

Rachel is talking with a co-worker, Shawna, about homebuying. Rachel shares some general market trends and talks about the impact of rising interest rates. She notes that the listing price of Shawna's neighbor's house seems lower than it should be, and then they talk about the importance of getting pre-approved for a loan early in the process. Which of her statements might have created an implied agency situation?

The listing price of the neighbor's property

How many parties does a mortgage involve?

Two: borrower and lender