The CE Shop School Exam - Missed Practice Questions
Anita's property appraised at $370,000. It is assessed at 40% of appraised value, and the tax rate is 80 mills. What are Anita's semi-annual property taxes? $11,840 $4,875 $5,920 $8,950
$5,920 Divide mills by 1,000 (80 ÷ 1,000 = .08). Assessed value is 40% of appraised value, so multiply .4 by $370,000 = $148,000. Multiply this by the mill rate (.08) to get annual taxes of $11,840. Divide this by two to get semi-annual property taxes of $5,920.
In Arizona, how long does a seller who resides in a planned community or an HOA have to give the buyer notification of the association rules? -10 days after notification of a pending sale -14 days -Five days after notification of a pending sale -Five days after the buyer takes possession of the home
10 days after notification of a pending sale Sellers and HOAs have 10 days to notify the buyer. When a planned community has 50 or fewer units, the seller must give the purchaser written information about the association. If there are more than 50 units, the HOA must send the information.
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. 14 30 45 60
60 Homeowners have 60 days from the date their assessment notice is mailed to file an appeal if they don't agree with the assessor's valuation of their property. The assessor will render a final decision regarding the petition by August 15.
Margie needs to know the square footage for the first floor of the condo her client is interested in buying. The kitchen is 10 feet by 15 feet, the living/dining combo is 20 feet by 25 feet, and the office and bedroom are each 10 feet by 10 feet. What's the total square footage? 2,200 square feet 3,000 square feet 750 square feet 850 square feet
850 square feet Find the area of each room to get its square footage, then add the square footage of all four rooms. Kitchen = 150 sq. ft.; living/dining = 500 sq. ft.; office = 100 sq. ft.; and bedroom = 100 sq. ft. = 850 square feet
Which of the following is a fact that an Arizona licensee isn't required to disclose to transaction parties? A licensee acting as an agent in more than one transaction at the same time Existing or potential conflicts of interest Information regarding the transaction payment One licensee representing multiple parties in a transaction
A licensee acting as an agent in more than one transaction at the same time A licensee working on more than one transaction at the same time is a common occurrence and doesn't require disclosure. Material facts regarding finances, potential or existing conflicts of interest, or dual agency require disclosure.
Which of the following statements about material facts is true? -All material facts are related to physical conditions. -All parties considering a property would regard each material fact in the same way. -A material fact may have more or less effect on a buyer based on the buyer's needs and values. -Material facts are only those that can be easily seen or discovered.
A material fact may have more or less effect on a buyer based on the buyer's needs and values. Information is material if it affects a buyer's decision to buy a given property. Different information will be weighed differently based on the buyer.
Malcolm loves his apartment, even though he's rarely there. His job in international development has him on the road for months at a time. He doesn't have to worry about missing out on his lease renewal, though, because he has ______. -A freehold estate -An estate at will -An estate for years -A periodic estate
A periodic estate A periodic estate renews automatically at the end of each period specified in the lease agreement.
According to ANSI standards, which of the following would be included in finished square footage? A finished attic room with ceiling height of six feet A finished potter's shed accessed via a stone path from the main house A stairwell leading from finished space to finished spa The air space in a vaulted entry
A stairwell leading from finished space to finished spa Air space, areas with ceiling heights less than seven feet and areas disconnected from the main residence aren't included in the total square feet. Stairwells are, if they connect from finished area to finished area.
What is a real estate employment agreement in Arizona? An agreement between a licensee and the licensee's broker An agreement between two licensees working with the same client A term for property management agreements A term for the listing agreement or buyer agency agreement
A term for the listing agreement or buyer agency agreement A real estate employment agreement is Arizona's term for a listing agreement or buyer agency agreement.
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 Aggressive Constructive Sufferance
Actual An actual eviction is when the tenant is physically and legally removed from the premises.
When a buyer takes over the seller's original loan with the lender's permission, this is called ______. A buyout An assumption A substitution Subject-to financing
An assumption Buyers can assume an existing loan with the lender's permission.
The real estate commissioner oversees the Arizona Department of Real Estate and enforces the regulations of the ______ in order to uphold the state's real estate laws. Arizona Administrative Code Arizona Revised Statutes Arizona Statutory Code Department of Real Estate Regulatory Handbook
Arizona Administrative Code The commissioner and the ADRE enforce the Arizona Administrative Code, specifically Title 4, Chapter 28, which contains the regulations that uphold the state's real estate laws.
What type of value is of interest to taxing authorities? Assessed value Insured value Investment value Value in use
Assessed value Local taxing authorities are interested in assessed values, which are used to determine property taxes.
Will was sued for damages related to a car accident in which he was involved last year. As part of the proceedings, the court placed a lien against his primary residence. What type of lien is this? Attachment General Mechanic's Voluntary
Attachment An attachment lien is when the courts place on encumbrance on the property of a defendant in a lawsuit for monetary damages.
When must Arizona licensees disclose to consumers all terms, conditions, and restrictions for any incentives offered to consumers? After the promotion concludes As soon as the consumer signs up for the offer Before the consumer participates in the offer Once the consumer is eligible
Before the consumer participates in the offer Licensees must disclose to consumer all terms, conditions, and restrictions for any incentives offered before the consumer participates in the offer.
The ADEQ administers and enforces ______. Both federal and state law Federal law only Neither federal nor state law State law only
Both federal and state law The ADEQ administers environmental law at both the federal and state levels.
Which substance when it's absorbed into the body prevents blood's ability to transport oxygen? Carbon monoxide Lead Mold Radon
Carbon monoxide Absorption of carbon monoxide happens very quickly.
Which source of law establishes legal precedent based on a court's interpretation of other sources of law? Administrative law Case law Constitutional law Statutory law
Case law Case law establishes legal precedent as a result of the court's interpretation of other sources of law, and it can be used to modify or overturn other sources of law.
Which type of analysis performed by a property manager includes a look at the properties within the market area that will be competing for tenants? Analysis of alternatives Competitive analysis Market analysis Property analysis
Competitive analysis Competitive analysis includes a look at the properties within the market area that will be competing for tenants. Keep in mind that the competitive analysis focuses on sizing up the competition.
Which of the following is NOT true about condominium ownership? -A condominium unit can be owned in severalty, as joint tenants, as tenants in common, or as tenants by the entirety. -Condominium ownership is ownership of personal property. -Owning a condominium unit brings fee simple ownership rights. -Subletting rights are allowed in some instances.
Condominium ownership is ownership of personal property. Condominium ownership is ownership of real property, not personal property.
Which of the following is NOT true about condominium ownership? A condominium unit can be owned in severalty, as joint tenants, as tenants in common, or as tenants by the entirety. Condominium ownership is ownership of personal property. Owning a condominium unit brings fee simple ownership rights. Subletting rights are allowed in some instances.
Condominium ownership is ownership of personal property. Condominium ownership is ownership of real property, not personal property.
Which source of law regulates governmental action? Administrative Case Law Constitutional Statutory
Constitutional Although administrative laws and ordinances govern the creation and operation of public regulatory agencies, it is constitutional law that regulates government action.
When is cooperating with your customer's agent not a good idea? Cooperation isn't in the best interest of your client. The customer's agent works in the same brokerage as you. You dislike the customer's agent. You're married to the customer's agent.
Cooperation isn't in the best interest of your client. You should always look out for your client's best interests.
A real estate transaction has a closing date of May 20. The seller, who's responsible for closing costs up to but not including the day of closing, has already paid annual property taxes of $1,949. How will the closing statement reflect the proration for the seller? Use a calendar year proration, and round to the nearest dollar. Credited $1,207 Credited $742 Debited $1,207 Debited $742
Credited $1,207 The seller is required to cover the property taxes for January 1 through May 19, which is 139 days. The seller will be credited $1,207, because $1,949 ÷ 365 = $5.34, and $5.34 × 226 days (the number of days the buyer will own the property and have to cover property taxes) = $1,206.84. That's $1,207 when rounded to the nearest whole dollar.
Evan has his home and cell number on the Do Not Call Registry. He received an unwanted solicitation call from a new real estate licensee in the city. He told the licensee his number is on the Do Not Call Registry and that he doesn't wish to do business with the licensee. A few days later, he got another call from the same licensee. What federal act is the licensee possibly violating? Anti-Telemarketer Act of 2000 CAN-SPAM Act of 2003 Do Not Call Implementation Act of 2003 Junk Fax Prevention Act of 2005
Do Not Call Implementation Act of 2003 The Do Not Call Implementation Act of 2003 makes phone solicitation illegal to numbers on the Do Not Call Registry unless a business relationship or permission exists. Neither of these exists here, so the licensee may be committing a violation.
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? Attornment clause Escalation clause Services included clause Tax clause
Escalation clause An escalation clause requires a tenant to pay a proportionate amount of the overall increased utility expense, in addition to base rent.
In Arizona, which of these groups of professionals isn't listed on the NMLS to validate their license status? Escrow agents Mortgage bankers Mortgage brokers Mortgage loan originators
Escrow agents Nationwide Mortgage Licensing System is a registered system to protect consumers against mortgage fraud, and escrow agents are not part of this program
Which type of leasehold lasts for a defined period of time and automatically terminates when that period ends? Estate at sufferance Estate at will Estate for years Periodic estate
Estate for years An estate for years may last for any specified period of time, not necessarily just for "years."
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? Civil Rights Act of 1866 Fair Housing Amendments Act of 1988 Federal Fair Housing Act of 1968 Housing and Community Development Act of 1974
Fair Housing Amendments Act of 1988 In 1988, the Fair Housing Amendments Act provided consumers with remedies if they became victims of discrimination in housing and also added familial status and disability to the list of protected classes.
After a life estate holder dies and ownership rights have either reverted to the original owner or have been transferred to a remainderman, with what type of estate is the property held? Fee simple Legal life estate Ordinary with remainder or reversion Pur autre vie with remainder or reversion
Fee Simple At the end of a life estate, the reversionary owner or remainderman hold a fee simple estate.
The Swansons left the family property to their son, Jason, with the stipulation that he does not build on it. The type of estate Jason holds is ______. Fee simple absolute Fee simple defeasible Leasehold Qualified lease
Fee simple defeasible Under a fee simple defeasible estate, the property holder owns the property with all legal rights, but subject to a condition.
The Crows gave their son, Gibson, the family property, so long as he doesn't join his friend's rock band. If he joins the band, the property goes back to them. What type of estate is this? Fee simple absolute Fee simple defendable Fee simple determinable Fee simple subject to a condition subsequent
Fee simple determinable With fee simple determinable, the property holder owns the property subject to a condition. If the condition is breached, then the property will go back to the original owner.
You are working as a buyer's agent in Arizona. The listing agent hasn't yet paid you your portion of the commission split even though the closing was several weeks ago. If there's a dispute about the amount of your commission, what can you do? File a civil court action (lawsuit). File a license law violation complaint with the Arizona Real Estate Advisory Board. File an ethics complaint with NAR. File an ethics complaint with the Arizona Department of Real Estate.
File a civil court action (lawsuit). Commission splits are negotiated between licensees. The Arizona Department of Real Estate doesn't get involved in commission disputes; they must be settled with a civil court action.
Joe has a property management agreement that outlines his obligations to the property owner. What type of agent is Joe? Dual General Limited Special
General As a property manager, Joe acts as a general agent. This means he is responsible for all of the dealings of a specific property, and is authorized to conduct an ongoing series of transactions for the property owner
Julian is hiring a branch office manager for the new office his brokerage just opened. His choice has come down to Arizona licensed salesperson Hannah or Arizona licensed broker Alvin. If he chooses Alvin, what task would he be able to perform that Hannah would not? Hiring or firing affiliated licensees Presenting himself as the employing broker's representative Running employee status reports Signing for the employing broker's trust account
Hiring or firing affiliated licensees While branch managers with a broker's license may hire or fire affiliated licensees, branch managers with a salesperson's license may not.
Mateo is an Arizona licensee who runs into Tristan, an old friend, at a coffee shop. Tristan tells Mateo he's had his house up for sale for nine months and hasn't received any offers. Mateo offers to represent Tristan if Tristan can convince his current licensee to let him out of the original listing contract. Which of the following is true? If Mateo does this, he could lose his license. If Mateo does this, he must ensure that Tristan signs an acknowledgment stating that he may be responsible for two commissions. Mateo can't legally enter into a second contract with Tristan until the contract with the other licensee ends. The first licensee must give Mateo a release from liability if he agrees to cancel his contract with Tristan.
If Mateo does this, he could lose his license. The important point here is that Mateo is doing the inducing. He could lose his license for attempting to convince Tristan to break his existing agreement with the other licensee for Mateo's personal gain, since it's a violation of Arizona license law.
Why are underground storage tanks a potential environmental issue? As their materials break down, radon is released into the soil and could seep into surrounding homes, causing health issues. If they leak, they may contaminate the surrounding soil and groundwater. They are only used to contain toxic materials and human proximity to such materials can cause health issues. They regularly exude potentially harmful gasses.
If they leak, they may contaminate the surrounding soil and groundwater. Underground storage tanks have been used to hold a variety of substances, including heating oil. While a UST doesn't necessarily mean noxious gasses or toxic material, many substances if leaked have the potential to contaminate the soil and groundwater.
Which of the following is a possible title issue with a real estate owned transaction? Residential property manager Tenants' agent Evictions of existing tenants Foreclosure process delays Internal audit delays Unpaid liens against the title
Internal audit delays Internal audits may cause delays in the title transfer process. REO properties have already been through the foreclosure process, and the bank has therefore likely paid any liens and dealt with any eviction issues.
In a title theory state, which of the following is a true statement? A promissory note creates a lien against the property used as security for the loan. It's generally much easier for a lender to foreclose on a property. The lien makes non-judicial foreclosure typical. The mortgage creates a lien against the property used as security for the loan.
It's generally much easier for a lender to foreclose on a property. In a title theory state, the lender holds the legal title to the property (usually through a third-party trustee) until the loan is paid off. This makes it easier for the lender to foreclose.
Camille has a listing for a townhome, and appoints Ivy as her sub-agent. Ivy brings a buyer customer to the transaction, and the buyer purchases Camille's listing. What's true about the agency relationships in this situation? -Camille owes her loyalty to Ivy. -Ivy is Camille's sub-agent and owes loyalty to the seller. -Ivy owes her loyalty to the buyer. -The buyer is the sub-agent to the seller.
Ivy is Camille's sub-agent and owes loyalty to the seller. The sub-agent (Ivy) works for the seller's agent (Camille) and owes loyalty to the seller.
Jane is selling her home to Micah. What must occur for Jane to effect a transfer of title to Micah? Jane must accept the deed. Jane must deliver the deed to Micah. Micah must acknowledge the deed. Micah must sign the deed.
Jane must deliver the deed to Micah. The seller (grantor) must deliver a marketable title. The grantee isn't required to sign.
Which of the following is an example of sub-agency? Kayla is a licensee with ABC Realty and lists a property for seller Devon. Maurice is a salesperson with XYZ Realty Group and brings a buyer to the table, but owes fiduciary duties to the seller. Kermit is represented by Bert, an agent with Street Realty. Today they're seeing Oscar's house, which has been listed by Oscar's agent, Ernie, from Energy Realty. Rita is a licensee with Hawthorne Realty. She has a client, Dinah, who's selling her condo. Rita thinks Dinah's house will be perfect for Ruby, a customer. Tim and Tom are both licensees with Acme Realty. Tim is the listing agent on a home where Tom represents the buyer.
Kayla is a licensee with ABC Realty and lists a property for seller Devon. Maurice is a salesperson with XYZ Realty Group and brings a buyer to the table, but owes fiduciary duties to the seller. Only the agent working with a buyer customer on behalf of another firm's listing is an example of sub- agency. In this case, that would be Maurice.
Stan and Emile are arguing over their shared lot line, since Stan thinks that Emile planted a privet hedge on Stan's property. Stan filed a civil legal action against Emile. Which of these would the court use to determine the actual lot line? Aerial photographs An affidavit from a surveyor Legal descriptions of both properties Testimony from long-time neighbors
Legal descriptions of both properties Recorded legal descriptions, often in conjunction with a survey or surveyor's opinion of what the legal description indicates, may be used to determine ownership boundaries.
Which of these rights do governments possess related to police power? Enforce private security operations Establish a local police department Initiate legislation governing the U.S. military Levy property taxes on residential properties
Levy property taxes on residential properties Among other powers, police power grants local, county, and state governments the authority to levy and collect property and personal property taxes to fund government operations.
What information does the Loan Estimate provide to buyers under required disclosures law? Broker commission rates Final closing costs Loan payment schedule Referral fees
Loan payment schedule Lenders provide the Loan Estimate within three days of receiving a borrower's application. Borrowers receive final closing cost information (on the Closing Disclosure) three days before closing.
John is considering purchasing an office building and is trying to determine whether or not it's a good investment. The methods of income approach he may use when estimating the value are all of the following EXCEPT for which? Market or sales comparison The capitalization method The gross income multiplier The gross rent multiplier
Market or sales comparison Properties that rely heavily on rental income often use the income approach to estimate their value. Three ways to estimate value are the capitalization method, the gross income multiplier, and the gross rent multiplier.
Which of these statements about Arizona real estate contracts is true? All licensees may use forms provided by the Arizona Association of REALTORS®. Licensees must use only forms provided by the Arizona Department of Real Estate. Member licensees may use forms provided by the Arizona Association of REALTORS®. Member licensees may use forms provided by the Arizona Department of Real Estate.
Member licensees may use forms provided by the Arizona Association of REALTORS®. The Arizona Association of REALTORS® provides boilerplate (fill-in-the-blank) forms that AAR members may use. These forms cover most of the standard transaction provisions.
Murphey's farm has been in his family for generations, since his great-great-great-grandfather received it as a land grant in 1862. What's the beginning point of this property's chain of title? Murphey's grandfather, the previous owner Murphey's great-great-great-grandfather Murphey, the current owner The federal government that originally granted the land Chain of title always begins with the current owner and goes back in time.
Murphey, the current owner Chain of title always begins with the current owner and goes back in time.
Leases may be terminated by expiration, eviction, or ______. Death Extermination Mutual agreement Relocation
Mutual agreement Leases may be terminated by expiration, eviction, or mutual agreement.
CT is a licensed contractor with AZ Plumbing and Heating. He just put in his two-week notice, and then he will start working for Canyon Plumbing and Heating. Can he transfer his license to his new employer? No, licenses aren't transferable. No, not until he takes the specific trade exam again. Yes, if he receives approval from the Arizona Registrar of Contractors. Yes, no conditions apply.
No, licenses aren't transferable. When a license is issued, it belongs to the company, not the qualifying party. Most licenses aren't transferable, except corporations or LLCs under certain conditions.
Which agency is charged with enforcing fair housing laws and holding all parties accountable for compliance with these laws and regulations? Office of Civil Rights Office of Equal Credit Opportunity Office of Fair Housing and Equal Opportunity Office of Housing and Community Development
Office of Fair Housing and Equal Opportunity Individuals who have experienced housing discrimination can file a complaint with the Office of Fair Housing and Equal Opportunity. The FHEO is charged with enforcing fair housing laws.
Sandra didn't realize that Arizona property taxes are split into two payments. While she paid the first half of her taxes by the October deadline, she didn't submit her second tax payment until April 28 of the following year. Sandra's payment is considered to be ______. Delinquent Insufficient On time Secondary
On time There's some wiggle room when it comes to paying tax bills. While the second tax bill for a year is due on March 1, homeowners have until May 1 to submit their payment.
If an Arizona licensee's license is made inactive through cancellation, suspension, termination, or revocation, that licensee may be eligible for license reinstatement through re-application, renewal, or ______, depending on the circumstances. New application Original application Re-examination Restoration
Original application Licensees seeking to have their licenses reinstated may apply for reinstatement by re-application, renewal, or original application, depending on the circumstances.
Property manager Marshall just got a new client. Marshall plans to outline his goals and then _______. Over-deliver Revise them every day See what happens Sit back and relax Make your objectives known, and then do better.
Over-deliver Make your objectives known, and then do better.
Which of the following factors carries the heaviest weight when calculating a credit score? Age of accounts Credit usage Inquiries Payment history
Payment history Payment history has the biggest influence on a credit score, followed by credit usage.
What type of IRS deduction can be taken for a vacation home? Home improvement costs Loan servicing fees Points Property tax
Property tax Property taxes can be deducted for a primary residence, vacation home, or rental property.
Which of these fits the description of the abandonment remedy? Biff's boss sent him to Taiwan for six months, so Biff decided to move out. Rats drove Willard out of his apartment. Sheila loved Hawaii so much she never returned to her rental unit. The neighbor's newborn's nighttime awakenings were driving Cora to her mother's every night.
Rats drove Willard out of his apartment. Although in a sense, all of these are abandonment, only one meets the definition of an abandonment remedy available to a tenant.
Hugh is representing Jacqueline in her purchase of a new condo. She wants to move in before closing, and in order to fulfill his statutory duties, which of the following actions would Hugh take? Recommend Jacqueline seek the advice of a lawyer. Recommend Jacqueline speak with his designated broker. Recommend that she wait until after the closing to keep things simple. Research the implications and report them back to her.
Recommend Jacqueline seek the advice of a lawyer. Arizona licensees are statutorily expected to recommend that their clients seek appropriate counsel regarding the risks and responsibilities of taking possession before closing as well as ownership concerns.
Alice has asked her landlord three times over the past week to come fix the hot water in the bathtub. She's unable to fix the problem herself but she doesn't want to move out. What other remedy is available to Alice? Abandonment None Recover damages Repair and deduct
Recover damages Alice may be able to recover damages from the landlord if the fair rental value of her unit diminishes due to the lack of hot water.
Robert and Carla are considering loan options. One of the options they're reviewing involves a higher monthly payment, but reduced total interest over the loan life. This loan option is called a ___________. Bi-weekly payment plan Conventional mortgage plan Partially amortized loan Reduced loan term
Reduced loan term A reduced loan term might be 25, 20, 15, or even 10 years instead of the conventional 30 years. The reduced number of years over which the loan is amortized results in higher monthly payments, but less total interest paid.
The legal description of the project, easements that run with the land, and street and traffic patterns are all under consideration when a local planning board ______. Calculates the developer's project application fee Considers granting a special use permit to a developer Reviews a developer's project plat Reviews the zoning for a developer's project
Reviews a developer's project plat These factors are under consideration when a local planning board reviews a developer's project plat.
The right to access rivers, streams, and other flowing bodies of water adjacent to a property is called ______. Land Littoral Mineral Riparian
Riparian Remember that riparian and river (a flowing body of water) both begin with an R. Littoral and lake both begin with an L.
Where can a party reviewing a title commitment find requirements that must be met before a title insurance policy will be issued? Schedule A Schedule B-1 Schedule B-2 This is not contained in the title commitment.
Schedule B-1 Schedule B-1 lists items the title insurance company requires to be addressed before it will issue the title insurance policy. This may include resolving liens or paying taxes that are due, among other items.
Jake, an Arizona licensee, presents his seller client with all of the offers he receives and presents counter-offers when appropriate. What statutory duty is Jake performing for his client? Assisting the seller with confirming the accuracy of transaction information Obtaining information material to a client's interests Recommending third-party counsel for areas like taxes or legal issues Serving the client's best interests
Serving the client's best interests Serving a client's best interests includes presenting all offers received to the client, presenting counter- offers where applicable, and following the client's specific instructions.
The Housing and Community Development Act of 1974 added which protected class to federal fair housing law? Color Disability Religion Sex
Sex The Housing and Development Act of 1974 added sex as a protected class, which helped prevent discrimination and sexual harassment for individuals seeking housing.
Radon is found in well water and where else? Ceiling tiles Insulation Plastics Soil
Soil Radon is a naturally occurring gas found in well water and soil.
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? Arizona Attachment General Special assessment Specific
Specific Property tax liens are specific, because they represent a lien against a specific piece of property.
______ is Arizona's major renewable water source, and it comes from lakes, streams, and rivers other than the Colorado. But because Arizona is a desert, the amount of water available from this source varies throughout the year. Effluent Groundwater Irrigation water Surface water
Surface water Surface water is Arizona's major renewable water source, but its availability does fluctuate throughout the year.
Which type of ownership requires unities of time, title, interest, possession, and person? Freehold estate Joint tenancy Tenancy by the entirety Tenants in common
Tenancy by the entirety This is tenancy by the entirety. If one dies, the other's interests go to the surviving spouse.
Swede is the vendor in a contract for deed arrangement. The vendee is not making his monthly payments. What is the process Swede can use to reclaim equitable title of the property? Eviction Foreclosure by action Foreclosure by advertisement Termination
Termination If the buyer defaults, the seller can terminate the contract. The foreclosure process doesn't apply to contract for deed arrangements. Once the contract has been terminated, Swede could pursue eviction to take back physical possession.
Which one of the following types of ownership termination allows each tenant to have a specific, divided portion (partition) of the property exclusively? Termination by division Termination of co-ownership by partition Termination of estate in severalty Termination of joint tenancies
Termination of co-ownership by partition Termination of tenancy in common by partition allows each tenant to have a specific, divided portion of the property exclusively. If the property can't be divided, the court may rule that the property be sold, and the proceeds divided by the tenants.
A letter of intent is used to begin negotiations. In which of these circumstances might a letter of intent most likely be used? Everett wants to sell his farmstead, but his intent is that it never be developed into commercial property. Marcus has a house for sale, and he's heard that a neighbor might be interested in buying it. Terrance is interested in buying a restaurant that's been struggling recently. He's sure he can turn it around! Wendy is interested in purchasing a condo that's held in an estate.
Terrance is interested in buying a restaurant that's been struggling recently. He's sure he can turn it around! A letter of intent is typically used to indicate interest in buying or selling a commercial property.
Martine, a seller, is looking at her closing statement. Which of the following is she most likely to see? -The $5,000 earnest money she received as an item in the buyer's credit column -The $5,000 in earnest money she received as an item in her credit column -The details of the loan arrangement between the buyer and his mortgage company -The price for which she initially listed her house
The $5,000 earnest money she received as an item in the buyer's credit column She's likely to see the paid earnest money, and she'll see it in the buyer's credit column because it's money the buyer already paid.
What source of Arizona real estate law consists of codified regulations that carry the force of the law without being laws themselves? The Arizona Administrative Code The Arizona Regulatory Handbook The Arizona Revised Statutes The Arizona State Constitution
The Arizona Administrative Code The Arizona Administrative Code is the regulations given authority by the Arizona Revised Statues. They carry the force of those statutory laws without actually being laws themselves.
Trinity has applied for a home equity line of credit to perform some upgrades on her home. Within what timeframe must her lender provide the Closing Disclosure? At closing The Closing Disclosure isn't required for a HELOC. Three days before closing Three days from her loan application date
The Closing Disclosure isn't required for a HELOC. Home equity lines of credit aren't subject to TRID disclosures, so Trinity's lender isn't obligated to provide a Closing Disclosure, though other disclosure forms may be required.
When a government entity exercises its powers to create zoning ordinances, what must be followed? Federal zoning codes The area's comprehensive plan The state's zoning codes Universal design standards
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.
Tina and Larry received an invitation to tour the Winding River Resort, a timeshare property. The written disclosure included the premium estimated retail value. What required element is missing from the disclosure? The allotted time to decide to purchase The attendance time required to receive the premium The number of invitations sent to prospective buyers The price of the timeshare
The attendance time required to receive the premium The written disclosure must include minimum time commitment, retail value, and other conditions to receive the premium.
Which of the following actions occurs prior to closing? Commissioner's rules Substantive policy statements A number of contracts are signed by the parties in attendance at the closing, such as the sale agreement, the mortgage loan commitment, and the title insurance contract. The buyer obtains a binder for insurance coverage on the new home. The buyer's check is given to the seller. The seller is paid the balance of the purchase price.
The buyer obtains a binder for insurance coverage on the new home. A buyer should obtain homeowners insurance before closing. That way, the property is protected the moment ownership (title) changes hands.
Which one of the following best describes the closing statement? The closing statement contains a summary of the buyer's costs and the gross amount due to the seller. The closing statement details the loan information between the lender and the borrower. The closing statement estimates the settlement charges that both the buyer and seller will owe, including but not limited to buyer and seller credits and debits, real estate broker fees, and title charges. The closing statement identifies the total settlement charges, which include but are not limited to buyer and seller credits and debits, real estate broker fees, and title charges.
The closing statement identifies the total settlement charges, which include but are not limited to buyer and seller credits and debits, real estate broker fees, and title charges. A couple of things to remember: The closing statement is more than an estimate, and it's pretty thorough.
Fontaine and Charles are concerned about some items in the inspection report they just received. They elect to request that the seller repair the electrical panel and the HVAC system. Which of these statements is true? If the seller agrees to correct the items, repairs must be made within three days of the request. The buyers must deliver a request for repairs within three days after the inspection period ends. The contract requires that agreed-upon corrections be made within the time noted in the contract. The seller must agree in writing to correct the items.
The contract requires that agreed-upon corrections be made within the time noted in the contract. The inspection section of the contract provides several options. Buyers must provide inspection objections before the inspection period ends. If the seller agrees to make repairs, the contract stipulates the timing within which they must be made.
What might prevent an Arizona lender from accepting a borrower's deed in lieu of foreclosure? Borrower default The existence of prior or junior liens on the property The original purchase price of the property and loan-to-value ratio The term of the borrower's loan
The existence of prior or junior liens on the property If the title is encumbered by liens that are prior to the lender's lien, or junior liens, the lender may balk at accepting the deed, since this affects the ability to resell the property for a profit. A foreclosure sale will extinguish the junior liens.
Which option is true if a deed is not recorded after closing? -The buyer must pay a fine to the seller. -The entire closing is void. -The property's legal ownership can be challenged. -The title never changes hands from the seller to the buyer.
The property's legal ownership can be challenged. If a deed isn't recorded after closing, the property's legal ownership can be challenged. Recording isn't required, but it's difficult for a property owner to prove ownership without public recordation of the deed.
According to custom, who pays the costs on the day of closing for property taxes, utilities, etc.? The buyer The buyer and seller split these costs. The seller Typically, the broker pays the costs on the day of closing.
The seller Although some local practices say that the buyer pays these costs, typically the seller pays them.
In a land contract, which party finances the purchase of the property? A mortgage broker The bank The buyer The seller
The seller With a land contract, the buyer will contract to pay the seller the purchase price over time in a series of installments. As the buyer pays these installments, the buyer begins to pay off the sales price of the property.
Simon is a buyer represented by Peter. Peter shows Simon several homes currently on the market. What is Peter's relationship to the sellers, if he doesn't represent them? Peter has no relationship with the sellers. Peter is a fiduciary for the sellers. The sellers are Peter's customers. The sellers are Peter's principals.
The sellers are Peter's customers. The sellers are Peter's customers; he doesn't owe fiduciary duties to them, but he is required to treat them with fairness and honesty.
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 beneficiary The lender The trustee The trustor
The trustee An Arizona deed of trust foreclosure is initiated when the trustee records the Notice of Trustee's Sale. The trustee is also responsible for notifying the other parties on the deed of trust of the recording.
When a deed of trust is used as a security instrument, who holds the deed and the note? The lender holds the deed and the note The lender holds the deed, and the trustee holds the note. The trustee holds the deed, and the lender holds the note. The trustee holds the mortgage and the note.
The trustee holds the deed, and the lender holds the note. With a deed of trust, the lender receives the promissory note; the trustee holds the deed of trust.
Joseph needed help with his daily activities, so his niece, Brenda, did his cooking, shopping, and cleaning. Joseph told her he would leave some money to her in his will. Brenda thanked him. But when her Uncle Joseph died, he only left Brenda his antique tea set. Why didn't Brenda get any money? Their contract was express. Their contract was implied. Their contract was verbal. Their contract was void
Their contract was verbal. Brenda and Joseph had a verbal contract, but nothing was committed to in writing. Verbal contacts are difficult to prove and enforce in a court of law, especially if one of the parties isn't there to confirm it.
Which of the following statements about limited liability companies (LLCs) and limited liability partnerships (LLPs) is true? Owners of the LLC or LLP are called shareholders. Owners of the LLC or LLP are personally liable for LLC/LLP obligations. They are taxed as partnerships. They require a general partner.
They are taxed as partnerships. LLCs and LLPs are taxed as partnerships.
Why are life insurance companies less concerned with liquidity than long term security of an investment? It's in their business charter to avoid projects that aren't long-term investments. They generally have an abundance of liquid assets already. They prefer financing larger projects, which inherently have more long-term security. They've been around for hundreds of years and have no worries about the future or time.
They prefer financing larger projects, which inherently have more long-term security. Life insurance companies prefer to get involved with larger projects, such as shopping centers or apartment complexes. These projects are more long-term investments. Because of this preference, they're less concerned with liquidity.
Dry Lake Properties has begun marketing an un-subdivided tract of land for sale just north of the Phoenix metro area. The property proves to be very popular, and lots begin selling at a rapid pace. Two years after the property first went up for sale, it is discovered that Dry Lake marketed the land before it had acquired a public report. Based on this information, how long does a buyer have to file a complaint against the seller? Five years Six months Three years Two years
Three years The buyer has three years to file a complaint from the date of the contract signing.
Ellen and Isaac have a timeshare near the Grand Canyon. They'll be able to use it for two weeks every September for the next eight years. What type of timeshare is this? Fee simple timeshare Periodic estate Timeshare estate Timeshare use
Timeshare use A timeshare use, also known as a right-to-use timeshare, grants the right to possession for a specified number of years.
Why might a property owner ask you to prepare a report showing the trend in rental delinquency rates? To assess the adequacy of tenant income screening processes To assess your ability to manage tenant relations To determine if rental rates are too high compared to your competitors' rates To forecast the amount of effort that will be required to collect the late rents
To assess the adequacy of tenant income screening processes If rental delinquency rates are increasing, it may be necessary to implement stricter income requirements and screening processes.
Which of these is NOT a reason that CAP was constructed? To bring Colorado River water to tribal groups To facilitate the growth of urban and suburban areas throughout the state To reduce reliance on groundwater for farming To serve municipal users in Maricopa county
To facilitate the growth of urban and suburban areas throughout the state CAP wasn't constructed to facilitate the growth of Arizona's urban or suburban areas.
A creditor holding a junior lien on an Arizona property that's being foreclosed on judicially has which of these rights? To accelerate the loan To pay off all amounts owed to the senior lender and then continue with the foreclosure To reinstate the loan and take the position of the senior lien holder To take title to the property by paying all other creditors holding a lien on the property, including the foreclosing lender
To pay off all amounts owed to the senior lender and then continue with the foreclosure In a judicial foreclosure, the junior lien holder can pay off the borrower's home loan and any other costs required to cure the default. At that point the junior lien holder becomes the senior lien holder and can carry on with the foreclosure.
What is the purpose of the handyman exemption in Arizona? -To allow unlicensed handymen to perform work that is less than $2,000 total -To protect consumers from handymen if renovation work is not completed to code -To protect consumers from unqualified and dishonest people posing as knowledgeable contractors -To protect unlicensed handymen from homeowners who don't pay their renovation bills
To protect consumers from unqualified and dishonest people posing as knowledgeable contractors The handyman exemption in Arizona protects consumers from unqualified and dishonest people posing as knowledgeable contractors and requires that work totaling more than $1,000 be performed by a licensed contractor.
Property manager Tom is managing a large rental property for Mrs. Battson. One of the tenants, Harriett, has a dead bolt lock that is not functioning. The person responsible for providing a new lock is _______. Harriett Mrs. Battson The janitor Tom
Tom As Mrs. Battson's representative, property manager Tom must be sure that all locks are functional. He must also be accessible to the tenant.
Considering where pipelines and utilities can be located and their impact on the overall look in the subdivision are factors of ______. Development cost District zoning TDR Topography
Topography Topography can involve considering where pipelines and utilities are located and their impact on the overall look in the subdivision.
Brendan's lender set him up with a loan in which the majority of Brendan's early payments go toward interest, his monthly payments remain the same, and he doesn't start paying much toward his principal until closer to the end of the loan. This is ______. A tear in the carpet A sub-prime loan Illegal Predatory lending Typical amortization
Typical amortization Amortization means the loan is paid off over time, with the interest paid first in decreasing increments and the principal paid in increasing increments as the interest owed is reduced.
You've had your Arizona real estate license for less than a month when you get the opportunity to work with an out-of-state licensee. Your buyer client is moving to Utah, and you're helping him find a home there. He's just given you a check for earnest money. Which of the following is true? You must handle the funds in accordance with Arizona rules. You must handle the funds in accordance with both Utah and Arizona rules. You must handle the funds in accordance with Utah rules. Your client must give the earnest money check to the Utah seller's agent, rather than you.
You must handle the funds in accordance with Arizona rules. When Arizona licensees engage in co-brokerage with out-of-state brokers, all funds received by either broker are subject to Arizona rules for deposit and handling.
