Real Estate

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 an action borrowers take to temporarily lower the interest rate on their mortgage loan?

A buydown is when buyers voluntarily pay points to temporarily bring interest rates down. For example, a 3-2-1 buydown would reduce the interest rate by 3% the first year, 2% the second year, and 1% the third year.

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

A hailstorm damaged some shingles last year.

What is a principal meridian?

A north-south line used as a reference point in the rectangular survey system

Which one of the following best describes an attorney title opinion?

A statement of opinion on the status of the property's title, based on the abstract of title

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.

A timeshare estate 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 in one- to two-week intervals during the year.

What type of clause is this? "If any monthly installment under this Note is not paid when due and remains unpaid after a date specified by a notice to Mortgagor, the entire principal amount outstanding and accrued interest thereon shall at once become due and payable at the option of the Note holder."

Acceleration clause

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

Article 26 of the Arizona State Constitution empowers licensees to draft or fill out, without charge, any documents incidental to a real estate transaction.

With a periodic estate lease, a landlord must remind tenants that their lease will ______.

Automatically renew

Sam has a mortgage payment that includes his property taxes and property insurance. What type of mortgage does Sam have?

Budget

Which of the following is exempt from the Clear Cooperation policy?

Commercial listings

Homeowner Ron can no longer make his mortgage payments. Rather than face foreclosure, he decides to cut his losses. He voluntarily conveys his property to his lender. What type of foreclosure alternative is this?

Deed in lieu of foreclosure

Drainfields that use ______ are only six to eight inches deep.

Drainfields that use drip irrigation are only six to eight inches deep and utilize flexible piping that can be snaked around plant roots. This system requires an additional filter and extra attention to potential clogs.

Jake, who was leasing a house, retained possession even after his right to possess had terminated. Jake has a(n) ______.

Estate at sufference

How does Ginnie Mae function differently than Fannie Mae and Freddie Mac?

Ginnie Mae doesn't buy loans or issue mortgage-backed securities. Alternatively, it does guarantee MBSs with the "full faith and credit of the United States."

John just sold the home where he's lived for eight years and made a nice profit. Which of these statements about the profit he made is FALSE?

He can include depreciation costs in the adjusted basis he uses to calculate the amount of his capital gains.

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.

Which of the following is acceptable to include in an MLS listing?

House includes an alarm system.

What is the maximum plot size for a lot in a group of 10 lots in order for the land to be considered unsubdivided?

In order to be considered unsubdivided, a development's maximum plot size is 160 acres.

Cooperative corporations own all of the following EXCEPT ______.

In the case of a co-op, the cooperative corporation owns the land, buildings, and all rights and interests in the corporation. None of these; the corporation owns all of these things.

A lender must seek the court's permission to foreclose on a property used as collateral for a loan that is in default. What type of foreclosure process is likely being used?

Judicial foreclosure

Plants in a yard would be considered part of the real property because of the ______.

Method of annexation

Which one of these commercial property manager's duties requires the property manager to secure a profitable deal for the landlord and also to negotiate a lease the commercial tenant can afford?

Negotiate leases.

Unlicensed persons are ______ performing activities requiring a real estate license.

Prohibited from

Which of the following statements about the EPA's environmental impact study is true?

Results are often reviewed and approved by a community board.

A couple own a suburban ranch home and fell behind on paying their property taxes when one lost their job last year. Both are working again, but they still haven't saved enough to pay their back taxes. They're worried that the county may begin foreclosure proceedings. What type of lien is this?

Specific

After closing, the seller refused to deliver the title. The buyer met all of the obligations outlined in the written contract, so the buyer took the seller to court. What is this an example of?

Suing for specific performance

With a triple net lease, the tenant pays ______ separately from the base rent.

Taxes, insurance, and maintenance

Three senior women live together in a house in which they share ownership. When one of them passes away, her share is inherited by her daughter, who is now a co-owner of the property. What type of ownership does this describe?

Tenancy in common

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

The Arizona Registrar of Contractors holds all applications and licenses issued, renewed, terminated, cancelled, revoked, or suspended in an indexed file for at least seven years.

Which agency applies the "target" designation to a dwelling and has set specific requirements for lead abatement and remodeling of these homes?

The EPA creates these designations and the specific requirements for contractors performing lead abatement or remodeling in these dwellings.

Which of these statements accurately describes finance- and housing-related legislation?

The Fair Housing Act of 1968 prohibited discrimination in the sale, rental, and financing of housing based on race, color, religion, or national origin.

Individuals who experience housing discrimination are provided the opportunity to file a complaint based on the provisions of which act?

The Office of Fair Housing and Equal Opportunity, which handles complaints, was created by the federal Fair Housing Act of 1968.

After purchasing a property, what can the buyer do to clear a possible future claim on the property's title?

The buyer may file a suit to quiet title. If a suit is filed, evidence is submitted to a judge for review. The judge will either remove or modify a cloud and will verify ownership.

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

The lis pendens puts the public on notice that a foreclosure suit is pending.

What is true when state and federal laws differ?

The state law may not remove rights granted to citizens under the federal law.

What is a negative aspect of net listings?

They often involve a conflict of interest.

Why is it important to publicly record a deed?

Title representatives and attorneys who perform title searches look for documents that are publicly recorded.