real estate practice (missed questions pt3)

Using the capitalization formula, what is the value if the net operating income is $20,000 and the rate of capitalization is 10%?

$200,000

How many days does a licensee have to notify the Arizona Department of Real Estate of pertinent changes?

10 days

Carlos has been renting a small efficiency apartment month to month from Nigel for the past few months. Recently, Carlos accepted a promotion with his company and must move to another state. How much notice must Carlos give Nigel before vacating, according to Arizona law?

30 days

Per FIRPTA, trusts with foreign beneficiaries must withhold what percentage from the sale of U.S. properties?

35%

In an Arizona non-judicial foreclosure, reinstatement of the loan must occur by ______, or the right to reinstate is lost.

5 p.m. the day before the Trustee's Sale occurs

Which of these is an example of agency coupled with interest?

An agent foregoes buyer agent commission, provided the purchasing developer gives the agent the listings on the developed lots.

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.

Which of the following is true about the Federal Housing Administration's qualifying standards for a mortgage loan?

Are somewhat less stringent than standards for conventional loans

Jennifer's firm prohibits licensees from willfully engaging in dual agency transactions. By implementing this policy, what is her firm doing?

Avoiding risk

_______ are part of the loan-approval process and are responsible for completing a loan application and supplying supporting documentation.

Buyers

The _______ category of appraiser licensure requires a minimum of 1,500 hours of applicable experience.

Certified residential real property appraiser

Which of these items is a demand deposit?

Checking account

Which party is responsible for performing a title examination prior to closing?

Closing agent

Eminent domain is the government's power to take private land for public use. What is it called when the government actually seizes someone's property under eminent domain?

Condemnation

Which of the following is an instrument of conveyance?

Deed

Which fiduciary duty is missing: loyalty, reasonable skill and care, obedience, confidentiality, accounting, and ______?

Disclosure

Which act created the Office of Fair Housing and Equal Opportunity under the Department of Housing and Urban Development?

Federal Fair Housing Act of 1968

Which statement accurately describes an abstract of title?

Few states require an abstract of title when conveying property.

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.

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

Financing terms and cash equivalency

For many prohibited acts, Arizona licensees may be disciplined if it appears that they, within the last ______, have committed those acts while in the performance of any real estate activities.

Five years

A boundary line is 880 yards long. How many furlongs is this equal to?

Four

What two types of data does an appraiser gather?

General and specific

When appraisers look past how a property is being used to determine a more optimal function, what are they determining?

Highest and best use

Mary Ann is looking for the potential rate of return. What sort of value is she interested in?

Investment value

Marc is a listing agent. He's at the property putting up the yard sign, even though the property isn't technically for sale yet and he can't accept offers. What must be true?

It's a coming soon listing.

Which types of REITs don't buy properties, but instead invest in real estate debt?

Mortgage REITs

Areas with a clay-based soil can benefit from what type of drainfield alternative?

Mound system

Which of these is NOT a benefit that the CAP project brought to Arizona?

New, larger dam projects across the state

In Arizona, when a judgment lien is renewed, which of the following is true?

No lien exists until a copy of the renewal affidavit is certified and recorded.

The primary mortgage market operates to _____.

Originate loans

Which clause is standard in a deed of trust and affects the foreclosure process that can be used if the borrower defaults?

Power of sale

Which of the following will impact an investor's ability to develop a new real estate project in a particular area?

Presence of underground storage tanks

Which of the following belongs in a property management plan?

Property condition

In property management, what's the legal and binding contract that spells out the duties for both the property manager and property owner?

Property management agreement

Violet purchased a house from Nick, and assumed the existing loan. Nick wants to make sure he isn't liable if Violet ever defaults. What can he do to remove his name from the loan agreement?

Request a novation

In which section of the Arizona public report application would the applicant supply the Certificate of Assured Water Supply?

Required documents

Your client Marta is a new developer who wants to build a subdivision in an AMA. What does this mean for her?

She has to prove that there's enough water to meet the subdivision's needs for 100 years.

In which section of the Uniform Residential Appraisal Report would you find data on the subject property's size, shape, zoning, and access to utilities?

Site

Nellie and Victor own a suburban ranch home and fell behind on paying their property taxes when Victor lost his job last year. Victor is 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

Which source of law regulates individual or private action and includes regulation of areas like environmental laws, civil rights, professional licensure, and agency laws?

Statutory law

Just outside of Mesa, a land development company has begun to offer home sites in a new subdivision. Each plot will be a half an acre, and the entire subdivision will have 200 home lots. What type of land is this considered?

Subdivided

What is the term for sites identified by the EPA under the Comprehensive Environmental Response, Compensation, and Liability Act?

Superfund site

Contingencies normally include the responsible party's name, the deadline for the contingency removal, and ______.

The actions required for removal

Which of these is a user group that CAP serves?

The agricultural sector

A land contract, also known as an installment sales contract or contract for deed, is an agreement between which two parties?

The buyer and the seller

Sonia receives a Notice of Trustee's Sale from one of the parties on her deed of trust. Who's responsible for sending her this notice?

The trustee

Once buyers submit their loan application, they must be given their Loan Estimate. At the very least, they must receive the Loan Estimate within ______.

Three business days after submitting the loan application

What is the purpose of the Truth in Lending Act?

To better educate consumers about the cost of credit or obtaining a loan

What's the purpose of an assessor's parcel number?

To identify a property for tax purposes

Thaddeus submitted an offer to purchase Trinity's home with appraisal, loan, and inspection contingencies. He failed to meet one of the contingencies. Which of these is true?

Trinity has the option of either continuing with or terminating the contract.

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

Type 2 right

Marco, a salesperson for Maricopa Realty, just walked out of a closing with his commission check in hand. Is this legal?

Yes, if the broker issues written permission to the closing company.

What's the relationship between TILA, RESPA, and TRID?

The Dodd-Frank Act requires that lenders use the TILA-RESPA Integrated Disclosures (TRID).