AZ Real Estate_05

We know that the original loan was for $17,000 with an interest rate of 9.5%. How much interest would be charged if the loan is paid off in 11 months?

$1,480

The market value of your client's property is $280,000. Taxes in the area are assessed at 60% of market value. Your client's semi-annual tax bill was $1,461. What's the tax rate per 100?

$1.74

Your client Faye is buying a condo downtown for $565,000 and financing 60% of the purchase. Her lender is charging a one-point loan origination fee and two discount points. Can you help Faye calculate the dollar amount for points she's going to pay on her loan?

$10,170

The current value of a property is $105,000. What was the original cost of the property if there has been a 30% loss in value?

$150,000

Clint is interested in making an offer on a house with hardwood floors that will need to be replaced. The hallway is 18 feet by 6 feet. The kitchen is 20 feet by 30 feet. The living room is 25 feet by 45 feet. There are two bedrooms, which measure 12 feet by 16 feet each, plus a master bedroom that is 14 feet by 20 feet. If the cost of the flooring is $5.48 per square foot, and the cost of installation is $1.49 per square foot, how much can Clint plan to spend to replace the floors?

$17,404.09

Rachel just sold her home and paid $18,427 in closing costs. Her brokerage fee, which is included in that figure, was 6%. She netted $230,063. What were her non-brokerage fee-related closing costs? Round to the nearest dollar.

$3,518

After operating the firm for 17 years, Trethlon Manufacturing just sold its entire operation for $5.7 million. The adjusted purchase price was $3.9 million. While the corporation ran the business, it spent $970,000 on capital improvements. Real estate commissions and other costs of the sale were $358,000. What is Trethlon's capital gain?

$472,000

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?

$5,920

John wants to do a 1031 tax exchange with a property he just sold. How many calendar days does he have to identify a new property for the exchange?

45

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

Which of these would most likely be funded through a Community Facilities District?

A community's costs to install sidewalks, curb, and gutter in a new neighborhood.

Which of the following properties is a REO?

A duplex that a lender has tried to sell by foreclosure and failed

Which of the following is an example of a ground lease?

A landowner leases undeveloped land to another party, who then builds on that land.

Direct capitalization converts what into a market value?

A single year's expected income

Arizona licensee Bradley is looking for direction on a regulation that pertains to licensing requirements. He finds a clarifying document that the ADRE put out for advisory purposes. What did Bradley find?

A substantive policy statement

In which of the following situations is a lender prohibited from enforcing an alienation clause?

A transfer between parent and child

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

What's the definition of an encroachment?

An intrusion onto another person's property

Ally's HOA recently posted this in the monthly newsletter: "No Homemade For Sale/Rent Signs Allowed." Which of the following is true?

Arizona HOAs can require that for sale/lease/rent signs be commercially produced.

Which of the following is NOT an acceptable property management trust account title?

Arizona Property Management Account

In a planned community, the nonprofit corporation or unincorporated association of owners to which members pay fees is called the ______.

Association

Cam is a broker. His licensees, Jane and John, represent two sides in a single transaction. Jane represents the seller; John represents the buyer. What relationship does Cam have to the buyer and the seller?

Cam is a dual agent to both the buyer and seller.

You're showing a house when you notice piles of what looks like sawdust outside near the basement windows. This may be evidence of which pest?

Carpenter ants

To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which one of these elements listed has the highest priority?

Conditions of sale

Which of the following is NOT true about condominium ownership?

Condominium ownership is ownership of personal property.

In a real estate transaction, which of the following is established when the parties enter into an agreement voluntarily with a full understanding of the contract terms?

Consent

One of the following licensee's actions would constitute commingling. Which is it?

Cynthia deposited her client's earnest money check into the firm's operating account.

John sells his single-family home and purchases a new home for his family to reside in. Marcus owns a single-family home, but rents it out to a co-worker while he is on an extended two-year military tour overseas. Donald sells an apartment complex and purchases a new complex in a different part of the city. Which of these consumers is most likely to take advantage of a 1031 tax-deferred exchange?

Donald

Which special lease clause stipulates increased rental rates at specific times during the lease term, or requires tenants to pay a proportionate amount of the overall increased utility expense, in addition to their base rent?

Escalation

Which of the following requires a landlord or property manager to obtain a tenant's written consent before sharing any information about the tenant with an unaffiliated third party?

Federal Trade Commission (FTC) privacy rule

Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared that gave the school title as long as the land is used for educational purposes. What type of interest does the school have?

Fee simple determinable

Which of the following would be considered personal property?

Free-standing TV

One of Jackie's creditors sued her in civil court. As a result of the judgment against her, her house, car, and art collection were all subject to sale in order to pay the creditor. What type of lien is this?

General

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 type of loan is meant specifically for improvements, such as additions or renovations?

Home improvement loan

Which of these situations is an example of designated (appointed) agency?

Jacob, a broker, acts as the dual agent and appoints Mark to represent the buyer and Todd to represent the seller in the same transaction.

What's the relationship between the Loan Estimate and the Closing Disclosure?

Lenders issue the Loan Estimate within three days of receiving an application, and Closing Disclosure figures should be similar to the Loan Estimate.

You're working for a brokerage that allows sellers to choose from several tiered packages of services ranging in price from $199 to $700, rather than paying a commission. The sellers do most of the work to sell the properties, but you provide photos, upload the properties to the MLS, and in some cases even host open houses. What type of listing service does this describe?

Limited service/flat fee

The right to access ponds, lakes, and other stationary bodies of water is ______.

Littoral

Maggie has a neighbor, Jim, who is facing foreclosure. She likes Jim and wants to help him out, so they agree to do a "subject to" purchase. What does this mean?

Maggie will take over Jim's loan payments without telling his lender she's doing so.

Investing in capital improvements to a property is one way to stall _______.

Obsolescence

With this type of commercial lease, if the option to drill isn't exercised within the stated timeframe, the lease expires.

Oil or gas lease

Which of these statements best describes the concept of procuring cause?

Procuring cause means the licensee's actions produced a ready, willing, and able buyer.

In Arizona, a disclosure in all purchase or lease contracts for lots in a subdivision informs consumers they are entitled to a copy of what document?

Public report

Arizona law exempts three of these individuals from licensure requirements. One of these individuals, however, must hold a license. Which one must be licensed?

Residential managers who live off-site

When licensees assist sellers with a ______, they should be prepared to provide the lender with a packet of documents for evaluation.

Short sale

Steven has made a down payment for a timeshare at the Boulders. After discussing the timeshare with his buddy Josh, who's a real estate professional, he discovered the Boulders didn't have a public report on file with the Arizona Department of Real Estate. What recourse may Steven have?

Steven's sale can be voided and he has a right to rescind the contract.

Chlorofluorocarbons (CFCs) are no longer used in manufacturing thanks to what?

The Clean Air Act

After foreclosure, a deficiency in Arizona is determined using the greater of ______.

The foreclosure sale price or the property's fair market value

For tax years 2018 to 2025, a borrower can write off the interest on a home equity loan only if ______.

The funds are used to buy, build, or improve the home that secures the loan

Rachel is talking with a co-worker, Shawna, about homebuying. Rachel shares some general market trends and talks about the impact of rising interest rates. She notes that the listing price of Shawna's neighbor's house seems lower than it should be, and then they talk about the importance of getting pre-approved for a loan early in the process. Which of her statements might have created an implied agency situation?

The listing price of the neighbor's property

You're measuring the square footage of a single-family home you've just built. What national requirements apply to your measurements?

There are no national requirements.

Which statement correctly identifies a federal fair housing law and what it addresses?

Title VIII of the Civil Rights Act of 1968 prohibits housing discrimination based on race, color, national origin, and religion.

A quitclaim deed does which one of the following?

Transfers without warranty any interest or title the grantor has when conveying it.

Which clause in a commercial lease determines how the tenant may use the space?

Use

Julian is glad that the property owner at the townhouse community he manages established a substantial capital reserve budget for unexpected expenses, like the new roofs needed after a hail storm. What are these types of expenses called?

Variable

Hope's mortgage created a lien against the property she purchased with the mortgage. What kind of lien is this?

Voluntary

Bessie's house is being sold as a short sale. She can expect to ______.

Walk away with nothing

Claudia wanted to build a large-scale toy manufacturing plant in her backyard, but was prevented from doing so by ______.

Zoning regulations