Real Estate Study #9

Your client Janine just bought a house in a neighborhood that's serviced by a private water company, Nutri-Water. "How much do their services cost?" she asks you. What should you say?

"Water companies' prices vary greatly, and may depend on where they get their water."

All salesperson applicants must pay ______ into the Arizona recovery fund.

$10

What is the maximum amount that a consumer can be paid out of the residential contractors recovery fund?

$30,000

Generally, what's the common range for loan origination fees?

1% to 3%

Kristin has been renting a small loft apartment week to week from Sari for the past few months. Recently, Kristin found out her mother had fallen ill, and she needed to return home to another state. How much notice must she give Sari before vacating, according to Arizona law?

10 days

Lynette purchased a property under a bargain and sale deed. Which statement best describes the covenants Lynette's deed provides?

A bargain and sale deed may come with or without covenants of warranty.

What is a real estate employment agreement in Arizona?

A term for the listing agreement or buyer agency agreement

Groundwater contamination is reported in Maricopa County when a crack in the ground gets larger after a heavy rainstorm. This contamination is likely due to ______.

An earth fissure

Mary is assuming Tom's loan. She wants to be sure she has an accurate loan payoff amount. What document will the lender prepare for her?

An estoppel certificate

Who usually performs the tasks of a closing agent?

Attorney, title company representative, or real estate broker

Licensed childcare facilities, nonprofit residential facilities, and licensed nursing homes are all considered which type of Arizona property classification?

Class four

Which of the following is NOT among the penalties that the Arizona Registrar of Commissioners may order against a contractor for contracting without a license?

Community service

Which of the following statements best describes disintermediation?

Consumers are withdrawing more money from banks than they are depositing.

Related to depreciation, what are the two types of physical deterioration?

Curable and incurable

Paige's lease agreement contains a clause that requires her to pay a proportionate amount of the overall increased utility expense, in addition to base rent. What's this clause known as?

Escalation clause

Terry has a costume shop in a commercial building. He has a one-year lease that automatically renews for another year unless either Terry or the landlord terminates. What type of leasehold estate is this?

Estate from period-to-period

Cynthia is accusing Arizona real estate licensee Antonio of committing fraud while engaged in a real estate purchase transaction with her. Cynthia plans to sue, but if she hopes to apply to the real estate recovery fund in the event that Antonio can't pay, how long does she have from the time of the incident to initiate her lawsuit?

Five years

Sara is your buyer customer. She doesn't want to sign a buyer agency agreement. What duty do you owe her?

Honesty and fairness

Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from familial status discrimination?

Housing for Older Persons Act of 1995

Acknowledgment is a key element to a deed. Why should a grantee always receive an acknowledged deed?

It provides the grantee title protection against other purchasers of the same property from the grantor.

Which of these lenders would be least likely to approve a short sale?

Junior lenders

If an item is permanently attached to a property, a court would most likely consider it a fixture if it passes which of the following tests?

Method of annexation

Arizona licensee Sandra's license was terminated last year because she was the licensee named in a claim paid from the real estate recovery fund. She has repaid the fund, putting herself back in good standing with ADRE. Her license period has not expired. She will apply for license reinstatement by ______.

Original application

Which of the following is a characteristic of a condominium?

Ownership is very easy—you pay, you're in.

Once handed over, trust funds belong to the ______ until the transaction for which they were designated has been completed, or they're disbursed according to the agreement between the parties.

Party who submitted them

What does an Arizona homeowner lose when choosing to use deed in lieu of foreclosure?

Protection from deficiency judgment

Which one of the following types of ownership termination allows each tenant to have a specific, divided portion (partition) of the property exclusively?

Termination of co-ownership by partition

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

The signature lines on the multi-state Fannie Mae promissory note are set up for ______ to sign.

The borrower

Derek is having postcards printed to advertise his services as an Arizona real estate broker. He'll use his name, Derek Dibbley, on the card. What else do Arizona real estate advertising rules require him to include?

The company name of his associated brokerage as it appears on the company's license

Select the statement that correctly exemplifies the covenant term.

The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on.

In Arizona, who can pay referral fees to licensees?

The licensees' employing brokers

Which of the following is not required to appear on a broker's property management trust account deposit slip?

The name of the brokerage firm

Certain homes and other buildings are designated as "target" dwellings by the EPA. What does this mean?

There are specific requirements for contractors performing lead abatement or remodeling these homes.

Which of the following statements about Arizonan private water companies is true?

They are all regulated by the Arizona Corporation Commission.

What is the purpose of the Arizona homestead exemption?

To allow homeowners to exempt part of their primary residence's value from seizure for payment of debts

Which of these is NOT a reason that CAP was constructed?

To facilitate the growth of urban and suburban areas throughout the state

What is the trustee's role when a deed of trust is used to secure property for a loan?

To hold legal title to the property on behalf of the beneficiary until the loan is repaid

It's January, and the pool at Roger's listing has been prepped for winter for several weeks. The homeowner assures Roger that it's in good working order. Roger has no reason to disbelieve the homeowner, so he tells prospective buyers that the pool is fine. The property sells, spring comes, and the new owners call to complain that the pump doesn't work, and the pool drain appears to be clogged. What did Roger commit?

Unintentional misrepresentation

Lack of capacity has made the contract non-binding, so the contract is _____.

Voidable

As an Arizona salesperson, you know that all compensation must pass through your broker. When you work with an out-of-state licensee, there must be a written cooperation agreement in place. This agreement is between which two parties?

Your broker and the other licensee's broker