More RE Study

Sellers who want to fix up their home prior to selling it are permitted to use the handyman exemption as long as the total cost for the project doesn't exceed ______.

$1000

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

Related to real estate financing, how much is a point?

1% of loan value

The IRS ensures it receives capital gains taxes owed when a non-resident sells real property owned in the U.S. by withholding what percentage of the gross sales price of the property when it's sold? What act established this?

15% The Foreign Investment in Real Property Tax Act (FIRPTA) applies to sale of properties by non-U.S. citizens. It requires a 15% withholding of the sales price at time of sale until applicable taxes are paid.

The Arizona Environmental Quality Act of ______ created the Arizona Department of Environmental Quality.

1986

1 furlong = __ yards

220 yards

One acre

43,560 square feet

Glenn was still living in the house his lender foreclosed on, but he moved out the day after the sheriff's sale. He stayed in a cheap apartment in town, because he hoped to save enough money to redeem his adobe home on a full acre one day. What's the length of the redemption period that Arizona law gives Glenn?

6 months

What's the minimum time required between the time a Notice of Trustee's Sale is recorded and the day the sale takes place?

90 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

Redlining

A discriminatory real estate practice in which members of minority groups are prevented from obtaining money to purchase homes or property in predominantly white neighborhoods.

Title Commitment

A letter from a title insurance company in which it commits to issuing a title insurance policy on the insured subject to certain conditions and requirements. Schedule A: This part of the commitment stipulates the basic facts of the transaction Schedule B-1: This section lists the necessary requirements that must be met before a title policy can be issued Schedule B-2: This section lists the necessary exceptions to title.

Plat

A map drawn to scale to show the divisions of a piece of land

What are the penalties that the Arizona Registrar of Commissioners may order against a contractor for contracting without a license?

A maximum fine of $1,000, plus an 83% surcharge; A maximum fine of $2,500, plus an 83% surcharge; Jail time

Elaina and Allen just purchased a home using a deed of trust. Which of the following is most likely true about their home loan?

A trustee will hold title until the loan is paid. Because the right to sell in the event of a default is part of the deed of trust's language, a non-judicial foreclosure may be used.

What should a trust account be called?

Acceptable wordings to include in a trust account title are: trust account, fiduciary account, or in trust/trustee/fiduciary for (owner or entity name).

Arizona licensees who have been notified of investigation under suspicion of license law violations have the option to ______ if they do so not less than 10 days prior to their hearing.

Accused licensees may voluntarily surrender their license to the department if the surrender occurs not fewer than 10 days prior to a hearing.

What's the term for someone who's been given the authority to act on behalf of someone else?

Agent

What is an accessory use? (in terms of zoning)

An accessory use is one that's subordinate but related to the main use of the property. ie; home business

Inverse Condemnation

An action brought by a property owner seeking just compensation for land taken for public use when the taker of the property does not intend to bring eminent domain proceedings ($$). Property is condemned because its use and value have been diminished due to an adjacent property's public use.

Written cooperation agreements with out-of-state brokers are between the ______ and the ______.

Arizona licensee's broker, out-of-state licensee's broker

Lorenzo just received a prestigious fellowship to study abroad for a year! However, he'd just signed a one-year lease on his apartment. With the landlord's permission, he substituted his sister's name on the lease, and Lorenzo's sister will pay rent directly to the landlord. Lorenzo may still be liable for the rent if she misses any payments. This is an example of ______.

Assignment

Breanna signed a purchase offer stating she'd buy Kathy's home for $150,000. Kathy rejected that offer but said she'd sell it to Breanna for $200,000. Breanna agreed to these terms, and they added their signatures. Which of the following statements is correct?

Breanna accepted the offer Kathy made.

One area of town has maximum building height requirements and setbacks for the front, side, and rear yards. These requirements are all indicative of ______.

Bulk Zoning

Which of the following is an action borrowers take to temporarily lower the interest rate on their mortgage loan?

Buydown

Substantive policy statements serve to ______.

Clarify the ADRE's current approach to specific regulations

CERCLA

Comprehensive Environmental Response, Compensation, and Liability Act (established Superfund program)

The Equal Credit Opportunity Act is regulated by the ______.

Consumer Financial Protection Bureau

Vlad the appraiser is going to appraise an apartment building that has consistent income and expenses year after year. He's most likely to use which of the following methods?

Direct capitalization is often used when the property's income isn't expected to vary a lot over time.

Anita's property appraised at $370,000. It is assessed at 40% of appraised value, and the tax rate is 80 mills. What are Anita's semi-annual property taxes?

Divide mills by 1,000 (80 ÷ 1,000 = .08). Assessed value is 40% of appraised value, so multiply .4 by $370,000 = $148,000. Multiply this by the mill rate (.08) to get annual taxes of $11,840. Divide this by two to get semi-annual property taxes of $5,920.

A home equity line of credit (HELOC) is based on the homeowner's available ______.

Equity

Lydia put the minimum 3.5% down on her $210,000 home. She'll have to pay an MIP. What type of loan does Lydia have?

FHA (gov't insured loans that are good for people with bad credit)

Which institution was created as the Federal National Mortgage Association in 1938?

Fannie Mae

Conventional loans may be conforming or nonconforming, depending on whether they meet ______ guidelines.

Fannie Mae and Freddie Mac

If downzoning occurs in one area, reducing property values in adjacent areas, what can the homeowners in those adjacent areas do?

File a claim for inverse condemnation.

When you're using the sales comparison approach to value a property, which of the following is considered a category of adjustment?

Financing terms and cash equivalency

Average annual commercial depreciation rate

Fully depreciates in 39 years or at an annual rate of 2.6%

As Tina's agent, Marcus has broad responsibility to handle all the details of a specific transaction. What type of agent is Marcus?

General (A general agent is responsible for handling all details of a specific transaction. A special or specific agent has limited scope of authority. Most real estate transactions are special agency; property managers, however, often serve as general agents.)

Regulatory Taking

Government regulation of property so extensive that government is deemed to have taken the property by the power of eminent domain, for which it must compensate the property owners.

Gross Rent Multiplier Formula

Gross Rent Multiplier = Property Price / Gross Rental Income

Kirk is a plumber with lots of experience, but he's new to Arizona. He is about to start a big project and wants to make sure he can file a lien if needed. What's the first step he needs to take?

He must file a preliminary 20-day notice within 20 days of first providing labor.

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?

In strict liability, the owner is responsible for cleanup, regardless of who created the initial problem.

Ginnie Mae only guarantees mortgage-backed securities that contain loans ______.

Insured or guaranteed by U.S. government agencies

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.

Determining who the buyers of subdivision homes are, the market niche to target, and whether to have different price points for various phases of development are all considerations in the ___________.

Marketing strategy

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 REITs make money by incurring short-term debt to acquire longer-term mortgage securities, earning the spread between the two rates?

Mortgage REITS

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

Mortgage Value

Moira has been licensed as an Arizona salesperson for a little more than two years. She wants to get her membership camping license and her broker's license within the next year, holding all three to round out her licensure and open up her business opportunities. Can she move forward with this plan?

No, licensees may only hold one real estate license at a time.

Arizona designated broker Rick is setting up a temporary branch office for a few transactions taking place 50 miles from the main brokerage office. Does Rick need to acquire a temporary branch office license?

No. Temporary branch offices do not require additional licensure like permanent ones do.

While Fannie Mae considers total and housing debt-to-income ratios in its underwriting process, Freddie Mac considers ______.

Only total debt-to-income

Which of the following entities may NOT be licensed as an employing broker?

Professional limited liability company

How often do you pay AZ property taxes?

Property taxes in Arizona are paid twice a year. The first half of the year's taxes are due in October, and the second half are due in March of the following year.

A policy for reducing exposure to electromagnetic fields is known as ______.

Prudent avoidance

Cheng is selling his property to Jericho. What's the best method Jericho can use to ensure his interest in the property?

Record the deed in his name.

setback

Setback ordinances are laws which govern how close you can build to property boundaries.

Cheyenne owns a single-family home. She needs a licensed contractor to install drywall in her basement. What type of contractor does she need?

Specialty residential

Doctrine of Estoppel

States that once you cause someone to act in a certain way based on information given, you can't go back on your word

What is a sub-agency relationship?

Sub-agency refers to a licensee from one firm who brings an unrepresented buyer for a property listed by another firm.

A ______ is a tract of land divided into lots or plots and used for building purposes.

Subdivision

Which entity services rural development loans?

The Farm Service Agency (FSA), an agency of the USDA, administers this program.

The Gomez family just moved into their dream home. They purchased the home for $264,985, and it appraised at $272,402. The assessment ratio for their area is 25%, and the tax rate for their area is 2.8%. What is their annual tax bill?

The Gomez family will pay $1,907 in annual taxes. Multiply the appraised value of $272,402 × .25 (the assessment rate in the area) = $68,100 (the assessed value), and then multiply $68,100 × .028 (the tax rate) = $1,907 (rounded to the nearest dollar amount).

CAP (Central AZ Project) is at least partially responsible for ______.

The current size of the real estate sector

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

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.

Law of Agency

The law that governs the relationship between a principal and his or her agent.

Randa is trying to lower the vacancy rates for the commercial property she manages because her revenue targets will increase by 8% over the next year. What type of budget contains this revenue detail?

The operating budget is an annual budget that includes income and expenses for a property's operation.

Homeowner Sally sued licensed contractor Shawn for unfinished work on her home, and he lost the case. Sally completed all of the necessary steps to obtain the funds from Shawn but was unsuccessful. Which entity awarded her damages?

The residential contractors recovery fund

Which of the following Code of Ethics principles applies to clear cooperation?

The three Code of Ethics principles that apply to the Clear Cooperation policy are: Cooperate with other REALTORS, present a true picture in advertising, and respect other REALTORS' exclusive agreements with clients.

Marla, an attorney, is purchasing a property. She's adamant that she receive clear title to the property. What does this mean?

The title has an unbroken chain of ownership and no liens or encumbrances.

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

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

How are sections and townships related to one another, relative to the rectangular government survey system?

Townships are divided into sections.

A/n ______ is the most flexible of the grandfathered rights, and it's granted to land that's never been irrigated

Type 2 right

Which of the following is a potential risk for an Arizona timeshare developer who doesn't comply with the public report requirements?

When the public report regulations are not followed, the sales may be voided and the developer may be required to issue a refund to buyers.

To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. What is that order?

When using the sales comparison approach, appraisers consider elements in a specific order: financing terms and cash equivalency, conditions of sale, market conditions at the time of contract and closing, location, and physical characteristics.

Arizona resident Harry receives a notification from his landlord that advises him the late fee for paying rent will increase from $30 to $50 in two months. Is it legal for Harry's landlord to make this rule change?

Yes, because it does not fundamentally change the lease and gives more than 30 days' notice.

Which source of law is responsible for the creation and operation of public regulatory agencies?

administrative

An item that would most likely be considered a fixture because of agreement between buyer and seller is _____. a) garage door opener b)draperies c)garbage disposal d)kitchen cabinets

b (A garage door opener, a garbage disposal, and kitchen cabinets would be considered real property rather than a fixture which could convey upon agreement.)

Which of the following is an example of a universal agent?

conservator

Density zoning

density zoning places limitations on property development by controlling the number of structures in a given area to control population density

Brittany has a small office in a professional building. She has a set monthly lease payment that has been calculated to include maintenance of the common areas in the building, such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for her space. The payment also includes taxes and insurance. The landlord takes these payments and pays the individual expenses himself. What type of lease does Brittany have?

gross lease

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

immediately

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

Max has owned his townhome for eight years. Four years ago, he married Lucey. Now that he's married, Max's townhome is considered what type of property?

seperate

Mill rate

the amount of tax payable per dollar of the assessed value of a property. 1 mill is equal to $1 in property tax levied per $1,000 of a property's assessed value.

Types of grandfathered water rights

type 1 non irrigation type 1 irrigation type 2

Court-ordered partition of property

when two owners can't decide what to do with the property so the court decides for them