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Homeowners who don't agree with the county assessor's valuation of their property may file a petition within ______ days of their notice's mailing date.
60 days
How large is a section used in the rectangular survey system?
640 acres
Defeasance Clause
A clause used in leases and mortgages that cancels a specified right upon the occurrence of a certain condition, such as cancellation of a mortgage upon repayment of the mortgage loan.
alienation clause
A contract clause that gives the lender certain stated rights when there's a transfer of ownership in property. (Often called a due-on-sale clause.)
Sand filter
A filter for cleansing water or purifying effluent, consisting of layers of coarse stone, coarse gravel and sand becoming finer toward the top.
Elevation Certificate
A form supplied by a licensed surveyor certifying building elevations and required to show compliance with community floodplain regulations and determine appropriate insurance rates.
What's a deficiency judgment?
A judgment that allows the lender to collect the difference from the borrower if the foreclosure sale does not satisfy the debt. If the proceeds from a foreclosure sale don't satisfy the debt, a deficiency judgment allows the lender to collect the difference from the borrower.
wrap around loan
A method of financing in which a new loan is placed in a secondary position; the new loan includes both the unpaid principal balance of the first loan and whatever sums are loaned by the lender; sometimes called an all inclusive trust deed (AITD)
Purchase Money Mortgage
A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.
Which type of lease is one in which the tenant pays the rent and some expenses related to the property (e.g., maintenance) separately?
A net lease is one in which the tenant pays some extra expenses—such as taxes, maintenance, or insurance—for the property.
Which of these is a policy or recommendation that ADWR would be likely to oversee?
A policy that allows for no new groundwater drilling in Phoenix
A(n) _____ septic system mixes air into the tank's water to speed up the waste breakdown process.
Aerobic unit An aerobic unit septic system mixes air into the tank's water, which allows the growth of oxygen-loving bacteria. These bacteria munch on the waste and break it down faster.
Which of the following describes an estate for an unknown period of time, with either party permitted to terminate the lease by giving notice to the other?
An estate at will is an estate for an unknown period of time, with either party permitted to terminate the lease by giving notice to the other.
ADEQ
Arizona Department of Environmental Quality. State regulatory agency that oversees environmental issues. They are under the jurisdiction of the EPA.
Your client submits an application to rent a condo unit. He has excellent credit and has had the same job for a long time. He uses a cane to help with his mobility. When his application is rejected, he feels it's due to his disability. He is protected under what federal law?
Fair Housing Amendments Act of 1988
Which act created an agency to investigate antitrust practices?
Federal Trade Commission Act The Federal Trade Commission Act created the FTC. This agency investigates practices and will stop companies and individuals from committing antitrust violations.
Alyssa's mortgage loan is secured by the note and the mortgage. Which of the following is true if she lives in a lien theory state?
She holds title to the property, and the mortgage becomes a lien on the property. In a lien theory state, the buyer holds title to the property, and the mortgage becomes a lien on the property. The lender must file a lawsuit to initiate foreclosure proceedings.
Betty hired a contractor to replace her gutters. Within days, the gutters leaked and flooded her basement. She complained to the contractor, who replaced the gutters again. The next time it rained, the gutters leaked and flooded Betty's basement a second time. Frustrated, Betty decided to file a lawsuit against the contractor in an attempt to recover the money she lost. This is an example of ______.
Suing for damages and breach of contract In this example, Betty sued for damages as a means of remedying the breach of contract caused by the contractor's failure to adequately address the repairs.
SARA
Superfund Amendments and Reauthorization Act
Which amendment to CERCLA says that "innocent landowners" aren't responsible for the cleanup of hazardous contamination?
Superfunds Amendments and Reauthorization Act
Rhonda hasn't paid her HOA dues in two years. Her attorney recently informed her that her state grants HOA-related liens a super lien status. What does this mean?
The HOA lien takes priority over all other liens.
All of the following are part of the ADEQ's core functions EXCEPT ______.
Licensing
Broker Betty has a client, Norma, who is leaving her home after spending the last 40 years creating a beautiful rose garden in the yard. Norma doesn't want the home to go to anyone with pets or children who will destroy all her hard work. Can Betty comply with Norma's wishes?
No, Betty isn't legally allowed to comply with Norma's request in this instance because it's discriminatory against a protected class.
Which of the following laws requires that contracts—including contracts made for the sale of real estate or for leases of more than one year—be in writing?
The statute of frauds
power of sale clause
a clause authorizing a private foreclosure sale that does not require court action
A ______ is a crack in the earth caused by extensive groundwater withdrawal.
fissure
Craig's loan is secured by a mortgage. Who holds legal title when this security instrument is used?
Craig The borrower holds legal title to the property that secures the loan when a mortgage instrument is used.
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." Almost 350 individual companies operate more than 400 individual water systems in Arizona—and they're all regulated by the Arizona Corporation Commission. Because these companies source water from different places, their pricing varies greatly.
Josh and Taylor are excited to move into their new home outside Tucson in the massive Cactus Junction subdivision. With more than 300 home sites, a town center with shops and restaurants, plenty of parks, and gated access, they are confident they have made a sound investment. How long does the subdivision's HOA have to notify the couple of its rules, bylaws, and other pertinent community information?
10 days from the notification of pending sale The HOA must notify buyers within 10 days of receiving a notice of pending sale.
The Environmental Quality Incentives Program finances conservation practices through contracts of as many as _____ years.
10`
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?
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
Per FIRPTA, trusts with foreign beneficiaries must withhold what percentage from the sale of U.S. properties?
35% Trusts with foreign beneficiaries and foreign corporations that sell properties in the U.S. must withhold 35% of the amount realized from the sale. Foreign individuals must withhold 15% of the sales proceeds. Return to Escrow and Settlement View Exam Results Return to Escrow and Settlement View Exam Results
What record in Arizona is considered sufficient disclosure to owners and potential buyers of property in an airport influence area?
A record, filed by the state or a governing body, of an airport influence area in the recorder's office for each county that has property in the airport influence area A record of an airport influence area, filed by the state or a governing body in the recorder's office for each county that has property in the airport influence area, is considered sufficient disclosure that a property is located in an airport influence area.
Eric's residential tenant hasn't paid rent for more than three months, so Eric went to court to start eviction proceedings. He's now been granted the right to remove the tenant. This is a(n) ______ eviction.
Actual
ABC Bank in Arizona financed Betty's purchase of a three-bedroom home a few years ago. She kept up with the payments on the loan until a few months ago but is now in default. How will ABC Bank most likely go about initiating the foreclosure process?
Ask the trustee on the deed of trust to record a Notice of Trustee's Sale with the county. A non-judicial foreclosure is initiated when the trustee records a Notice of Trustee's Sale in the county where the property is located.
Which of the following is an example of an escalator offer?
Buyer offers $650,000 with clause that buyer will beat all competing offers by $3,000 up to $675,000. An escalator offer will contain a clause similar to this: "Buyer to beat all competing offers by $XX up to a price of $XXX,XXX. Seller to provide copies of competing offer to buyer on acceptance."
Title VIII of which law prohibits discrimination in the sale, rental, and financing of housing?
Civil Rights Act of 1968
Deed Restrictions
Clauses in a deed limiting the future uses of the property. Deed restrictions may impose a vast variety of limitations and conditions—for example, they may limit the density of buildings, dictate the types of structures that can be erected, or prevent buildings from being used for specific purposes or even from being used at all.
Carbon monoxide is a byproduct of what?
Combustion CO2 is a byproduct of combustion from gas, among other things. Gas appliances, heaters, and cars may emit harmful CO2.
CERLA
Comprehensive Environment Response Compensation and Liability Act
CERLA
Comprehensive Environmental Response, Compensation, and Liability Act established by superfund site to help clean up hazardous waste and respond to spills
EPA
Environmental Protection Agency
A buyer, hoping to beat out all other offers, included a clause in the offer that reads, "Buyer to beat all competing offers by $1,000 up to a price of $700,000. Seller to provide copies of competing offer to buyer on acceptance." What type of offer is this?
Escalator
A trustee is holding title to Cassandra's house until the loan is paid in full. Which type of security instrument was used?
Deed of trust Three parties are involved when a deed of trust is used: the lender (beneficiary), the borrower (trustor), and a neutral third party (trustee). The trustee holds the title on loans when a deed of trust is used.
What type of contract do you have once the seller has accepted the buyer's offer in writing and the buyer has been notified of the acceptance?
Enforceable Assuming this contract contains all of the essential elements of a valid contract, it's an enforceable contract that will stand up in court because it has legal effect or force.
Which of the following does CAP NOT do?
Help more communities recycle effluent water. CAP does a lot of great things, but it doesn't help communities recycle effluent water.
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 old persons act 1995 Under the Housing for Older Persons Act of 1995, housing must have one person who is 55 or older residing in at least 80% of its occupied units to be exempt from charges of familial status discrimination by age preference.
Which one of these situations represents the illegal practice of redlining?
Hunter, a mortgage broker, refused to underwrite mortgage applications from applicants who want to buy in specific neighborhoods based on the neighborhood's demographics.
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 ______.
In an assignment, the new tenant becomes directly responsible to the landlord, but the previous tenant may remain responsible to the landlord for unpaid rent or property damage unless the assignment specifically releases the previous tenant from responsibility.
Government regulation of a property that deprives the landowner of the economic value of the property without compensation from the government is called ______.
Inverse condemnation Inverse condemnation occurs when government takes private property, either physically or by the effect of regulation on the property value, without offering the owner just compensation as is required by eminent domain.`
Which offer would be the most appealing to a seller?
It depends on the seller's needs and motivations. The first principle of evaluating multiple offers is this: The appeal of any offer comes down to the seller's needs and motivations.
Your client, Eric, is interested in purchasing an industrial property to start a new business. You've recommended that soil, air, and water testing be done, but Eric is on a tight budget and doesn't feel these tests are necessary. What should you do?
Keep records of your recommendations and a written response from Eric.
Equal Credit Opportunity Act (ECOA)
Law that states that a consumer's credit application can only be judged on the basis on financial responsibility not the applicant's gender, race, marital status, age, national origin, or receipt of public assistance
Jenna and Adam are both teachers. When Adam loses his job, he quickly finds another, but it pays significantly less. Their home loan payments are suddenly more difficult to stay on top of, even though their income is stable and their credit is good. What option will help them keep their home and their good credit, and avoid defaulting on their loan?
Loan modification They can work with their lender on a loan modification to restructure their debt and lower their loan payments. They don't need to declare bankruptcy, and a short sale or deed in lieu of foreclosure will leave them without their home.
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 References to plats and plat maps are used in the lot and block survey system.
What steps must a lien-holder take to perfect their mechanic's lien in Arizona?
Make copies of the lien claim, give one to the county recorder, give the other to the building's owner
Morty, a land surveyor, was called out to survey a property. After doing some research, he located the legal description for the property in question. Now, if he could just find the point of beginning located at the iron pin on the southerly line of state route 117, 30 feet east of the oak tree next to Bear Creek. What type of legal description is Morty working with?
Metes and bounds Point of beginning is common with metes and bounds descriptions.
Areas with a clay-based soil can benefit from what type of drainfield alternative?
Mound system Areas with thinner or clay-based soil can benefit from a mound system, which consists of a mound of sand and gravel that's trucked in and dumped on the site.
For Arizona residents to take advantage of the homestead exemption, what must they do?
Nothing. It's automatic.
If Arizona licensee Lucas is convicted of a misdemeanor, what must he do in accordance with Arizona license law?
Notify the Arizona Department of Real Estate.
What does the lot and block system use to develop a property's legal description?
Plat references
AZ Property Taxes
Property taxes are due October 1. Arizona law allows the option for property taxes to be paid in two installments on most property. The first installment is due October 1st and becomes delinquent November 1st at 5 pm. The second installment is due March 1st and becomes delinquent May 1st at 5 pm.
CFPB (Consumer Financial Protection Bureau)
Protects consumers financial products
When a buyer finances a newly built home with a Federal Housing Administration loan, what does the FHA require the builder to do?
Purchase a third-party home warranty to protect the buyer The FHA requires builders of new homes to provide a third-party warranty to buyers.
The Hendersons don't have enough money to make the full 20% down payment their institutional lender requires. To close the sale, the seller is willing to finance a loan for the amount between the home's list price and what the institutional lender is willing to loan. What's this type of financing called?
Purchase money mortgage
SDWA
Safe Drinking Water Act -To protect the quality of drinking water in the US for both underground and surface water. The EPA sets the standards for certain chemicals. -It requires a testing program for chemicals and pesticides for possible endocrine disrupting effects.
Which of the following is a true statement regarding record keeping requirements for Arizona real estate licensees?
Records are subject to ADRE audit. It's fine for licensees to retain transactional records electronically, subject to certain conditions. One of those conditions is having the ability to access them within 24 hours of a ADRE audit.
It amended comprehensive environmental response, compensation, and liability act. (The revision of CERCLA.)
SARA
Insurance claims might not appear on a CLUE report for a property if the claims were made more than ______ years ago.
Seven A CLUE report will only contain information about insurance claims within the last seven years, and only for those insurance companies that participate in the CLUE program.
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.
Which of these scenarios is a covenant not to compete likely to address?
Teeny Tots Clothing is leasing a retail condominium unit. A covenant not to compete is most often used when a commercial buyer or tenant wants to prevent a similar business from locating in the same small geographical area over which the landlord or seller has control.
Which of the following describes an estate for years?
Tenancy of definite duration that terminates automatically and is inheritable
When a government entity exercises its powers to create zoning ordinances, what must be followed?
The area's comprehensive plan An area's comprehensive plan outlines its future development plans and goals of the area. Zoning decisions should follow this plan.
Jeanine has an exclusive right-to-sell agreement with her listing agent, Tera. Which of these statements about Tera's compensation is true?
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. The exclusive right-to-sell agreement establishes a contractual obligation for the client to compensate the brokerage firm no matter who finds the buyer (or the property), provided the terms of the contract are met.
A family of four, with children ages six and nine, is denied the opportunity to view an available unit in housing intended for older persons. Which of the following statements is true?
The federal Fair Housing Act allows an exemption for communities that are designed and operated for older persons.
You're talking to a co-worker at lunch, and she mentions she has a box of baby clothes her kids have outgrown that she needs to get rid of. You have a baby on the way, so you offer to pay her $25, and she agrees to bring the box to work the next day and give it to you. Which of the following is true in this situation?
This is an express contract because you defined in words the specific terms of the agreement and consideration to be exchanged.
Fix and Flip
This term is coined for properties that need a lot of rehab to make them appealing to buyers. Real estate investors will buy the property, renovate it, and resell the property for a profit.
Which of these has examples of antitrust violations common to real estate?
Tie-in arrangements, market allocation agreements, and group boycotting In addition to price fixing, antitrust violations include tie-in arrangements, market allocation agreements, and group boycotting.
The benefits of a home warranty for buyers are clear. Why might sellers want to offer a home warranty to buyers?
To protect themselves from any claims after closing. Home warranties protect sellers from any claims after closing if appliances or systems need to be replaced.
The Harris family farmland has been converted to build a subdivision. Which of the following rights is it given?
Type 1 right When a piece of land that used to be irrigated (as farmland, for example) is converted to another use (e.g., building a subdivision), it's given a Type 1 groundwater right. Right-holders may pump a maximum of three acre-feet per acre per year with a Type 1 right, and the right may not be transferred separately from the land to which it's attached.
In Arizona, when foreclosing on a house bought under an agreement for sale, the process ____.
Varies depending on the amount the buyer has paid toward the purchase price Under an agreement for sale, the seller is NOT allowed to start forfeiture proceedings as soon as the buyer misses a payment. Sellers must wait a minimum period of time dependent on the amount the buyer has paid toward the purchase price.
Lack of capacity has made the contract non-binding, so the contract is _____.
Voidable
Which of the following is NOT a major principle of the doctrine of prior appropriation?
Water may not be used recreationally. Water can be used recreationally in all states, including those that follow the doctrine of prior appropriation.
ADWR administers or enforces all of the following EXCEPT ______.
Water quality standards ADWR isn't involved in monitoring drinking water safety, tackling infrastructure issues, or creating educational requirements. However, it does manage Arizona's AMAs and their groundwater, including the Phoenix AMA.
When is an elevation certificate required?
When attempting to obtain flood insurance in some areas An elevation certificate provides documented proof that all new buildings and improvements are properly elevated to minimize flood damage, thereby allowing homeowners to obtain flood insurance.
Which type of distressed property transaction requires a cash purchase?
Which type of distressed property transaction requires a cash purchase? Cash payment is required at a foreclosure auction.
What differentiates hypothecation property and pledging property?
Who possesses the collateral while the loan is being paid Hypothecation property, which is used in real estate, can be possessed and used by the borrower while the borrower pays the loan. This is different from pledged property which the lender may take possession of while the loan is being paid.
Tyler is creating an ad for an 80,000-square-foot piece of land. He describes the property as "about two acres." Has Tyler violated Arizona license law with this description?
Yes. Licensees may only use the term "acre" to refer to land that is precisely 43,560 square feet. Approximations are prohibited. Arizona law specifies that licensees may only use the term "acre" to refer to an area of land that is exactly 43,560 square feet.
drip irrigation
a method of supplying irrigation water through tubes that literally drip water onto the soil at the base of each plant.
Superfund Sites
abandoned sites w/ hazardous waste
The ______ clause is also known as a due-on-sale clause.
alienation
buy and hold
an investment strategy that involves simply buying stock and holding it for a period of years
Example of a deed restriction
house color Number of trees style material used
This approach determines what the property generates in profit for its owner or potential owner
income approach
Interest in real property which is held for the duration of the life of a designated person is called a
life estate
28/36 rule
states that a household should spend a maximum of 28% of its gross monthly income on total housing expenses and no more than 36% on total debt service, including housing and other debt such as car loans.
appurtenant
with