prac test 13

Consumers may apply for a maximum of ______ per transaction from the recovery fund.

$30,000

What's the penalty for violating federal do not call rules?

A fine of more than $40,000 for each violation

What is the three-property rule as it relates to tax-deferred exchanges?

An investor can identify up to three replacement properties and not encounter a restriction regarding fair market value as long as debt load requirement is met.

Carbon monoxide is a byproduct of what?

Combustion

Which of the following is true regarding cooperatives?

Cooperative ownership is considered personal property.

What deed warranty guarantees that the seller is the actual owner of the property being conveyed?

Covenant of seisin

Which of the following is a life estate in a property held by a widower?

Curtesy

Vivienne's rent has gone up 12% from last year because of the apartment's increased maintenance costs for the tennis courts and new pool. What type of lease is this?

Escalated

Your buyer clients want to know why their lender requires them to purchase property insurance. What should you say?

Explain that the lender is protecting its interest in the property.

Local authorities lack police power over which of the following?

Federal government construction projects

Why are underground storage tanks a potential environmental issue?

If they leak, they may contaminate the surrounding soil and groundwater.

Contrary to federal fair housing laws, the state where Katrina lives includes age as a protected class. Which of these statements about this conflict is true?

Katrina must follow the more restrictive of federal or state law.

A ______ is a contractual agreement in which the buyer pays the seller the purchase price over time in a series of installments until the contract has been paid in full.

Land contract

An advantage of organizing a business as a limited liability company is its ______.

Limits on the liability of members for company debts or other obligations

Which clause in the listing agreement gives the listing broker the authority and obligates the broker to market the property to other brokers?

Multiple listing clause

In a purchase offer, is earnest money required in order to have a binding contract?

No, because the buyer's consideration is the promise to buy.

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

Present a true picture in advertising.

Kurt is pricing a home for a client in a cold market. It's a great property, and he knows it would sell for above market value if the market were better. All things considered, what's the best pricing strategy for the home?

Price the home below market value.

What cancer-causing substance is naturally created when the gas in rocks and soil decays?

Radon

Which of the following is a true statement regarding record keeping requirements for Arizona real estate licensees?

Records are subject to ADRE audit.

Which of the following statements best describes a listing that terminates by performance?

Roberto listed a property for Terrence. After two failed offers, the property made it to a successful closing.

Brothers Kevin and Michael buy a house together. They don't specify how they'd like to hold title, so their ownership defaults to _______.

Tenancy in common is the default ownership form for co-owners if joint tenancy isn't stated, and the owners aren't a married couple.

Candace and Phil Tolson listed their home for sale with Trent Richards, the broker for Richards Homes. Sadly, Trent became incapacitated due to a car accident. What's the status of the listing agreement?

The agreement terminates by operation of law.

Which of the following actions occurs prior to closing?

The buyer obtains a binder for insurance coverage on the new home.

A property management agreement must contain ______.

The type and frequency of status reports the property manager will provide to the owner