LAST TRY

Your clients received a check for $395,000 when they sold their property, which they owned free and clear. Their closing expenses were $4,575, and they paid 5% in brokerage fees. What was the sales price of their property? Round to nearest whole dollar.

100% - 5% = 95% (.95), and $395,000 + $4,575 (before commission) = $399,575. $399,575 ÷ .95 = $420,605- (rounded).

A CMA or a BPO is an example of ______.

A CMA or a BPO is an example of an informal estimate of market value. Remember, it's good practice to never call anything you'll produce as a real estate professional an "appraisal."

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

A mortgage is a voluntary lien.- With voluntary liens, people agree to have the lien placed against their real or personal property.

When is an elevation certificate required?

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.

Fran, a broker, recently had a real estate transaction implode on her when the ______ was overly concerned about cosmetic details of a property.

An overly picky home inspector- can delay or even destroy a real estate transaction, which demonstrates the importance of finding quality home inspectors and developing those relationships.

In Arizona, before unsubdivided land can be sold, what must owners send to the real estate commissioner?

An owner of unsubdivided land must send a notice of intent to sell or lease- the land before sales can commence

Nevina may be creating an implied agency agreement if she does which of these?

Any time a licensee performs tasks that are usually part of an agency agreement, there's risk of creating an implied agency relationship.Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area

Which of the following would property managers be expected to personally do as part of their assigned duties?

As part of their assigned duties, property managers are expected to prepare and oversee a budget for managing the property.

In Arizona, who is expected to establish a system for monitoring compliance with statutes, rules, and the brokerage's policies and systems?

As the licensed representative of the brokerage, designated brokers- are expected to establish a system for monitoring compliance with statutes, rules, and the employing broker's policies and systems.

Before subdividers can begin taking reservations and deposits for a subdivision in Arizona, what must they provide to the state?

Before deposits can be taken, subdividers need to state their intention to subdivide a chunk of land and send some information (via mail or hand delivery) to the ADRE.A statement of intention to subdivide

Which one of the following actions is a licensee required to take to fulfill a fiduciary duty?

Disclose personal interest and licensed status when buying property for personal use.

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?

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.

Helen is purchasing a home for $150,000 and provides a $2,500 earnest money check to the seller, which will be applied to her down payment. She's financing the transaction, and her closing costs and down payment total $4,800. How much should Helen bring to the closing?

Helen must bring $2,300 to closing to pay the total amount due. She owed a total of $4,800 minus the earnest money she already paid ($2,500). That leaves her with $2,300 still to pay. This is the amount she still has to pay.

To what type of ownership do horizontal property acts apply?

Horizontal property acts apply to condo ownership.

The gross income multiplier for an area is 12x. If the estimated annual rent is $10,000, what's the property's estimated value?

If the subject property's gross market rent is $10,000 and the multiplier extracted from the local market is 12x, the estimated value of the subject is $120,000. GIM x gross annual income = value

Rhonda and Oliver bought an old schoolhouse with the hope of transforming it into a residence. They owned the property as joint tenants. After Oliver died, how did Rhonda own the building?

In severalty When there are only two joint tenants, the death of one dissolves the joint tenancy. Rhonda is now the sole owner of an estate in severalty.

Luci's client Kaden wants to purchase a new construction property, and he wants to get as much house as he can afford. Which of the following does Luci need to advise Kaden about regarding interest rates when purchasing a newly built home?

Kaden needs to allow for the possibility of an interest rate increase between now and closing because lenders aren't likely to lock in an interest rate for more than 90 days before closing. Because lenders won't lock in an interest rate for more than 90 days before closing, Kaden needs to plan for the possibility of a 1% interest rate increase between now and closing, or risk not qualifying for the loan when the time comes.

In Arizona, which of the following is a true statement?

Licensees can legally procure additional agreements, but only if the buyer/seller acknowledges in writing that a second agreement may mean paying two commissions, and the licensee advises the party to get a liability release from the first licensee.Licensees can legally procure additional agreements but must get an acknowledgment from the buyer or seller that they may have to pay a second commission.

What does it mean when a life insurance company uses participation financing?

Often, a life insurance company will take partial ownership of a project in exchange for providing the financing.The life insurance company participates by taking partial ownership of the project in exchange for funding the loan.

Which one of the following characteristics makes property taxes a reliable target for taxation?

One characteristic that makes property taxes a reliable target for taxation is that they have a high compliance rate (that is, people tend to pay their property taxes). They are also hard to conceal, hold their value, and have low collection costs.They have a high compliance rate.

If a farm that's for sale measures one and three-quarter square miles, how many acres is it?

One square mile is 640 acres. Three-quarter square mile is 480 acres (640 x .75 = 480). So, 640 + 480 = 1,120 acres.

Which of the following business entities may apply for an employing broker's license in Arizona?

Professional corporations and professional limited liability corporations are not eligible for employing broker status, and a professional association is not a legal entity designation.

The ______ sets requirements for mortgage loan originators.

Secure and Fair Enforcement for Mortgage Licensing Act The federal Secure and Fair Enforcement for Mortgage Licensing Act sets requirements for MLOs.

Jacqueline is a licensee working with a property near a Superfund site. Which of these statements is true?

She must disclose the existence of an environmental hazard in the area. A property with a known Superfund site in the vicinity requires disclosure, as this is a material fact.

What is the name of the federal law that sets forth guidelines regarding telephone solicitation?

The federal act dealing with telephone solicitation is known as TCPA, or the Telephone Consumer Protection Act.-

townhouse is purchased for $475,000. If the transfer tax is $2.00 on the first $1,000. and $0.10 for each additional $100., how much are the transfer taxes?

The first $1,000 is $2.00. The transfer tax for the remaining $474,000 will multiplied by .001 ($0.10 for each additional $100). So the total transfer tax will be $476 ([$474,000 x .001] + $2).

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

The injured party (in this case, Trinity) may choose to terminate a contract based on an unfulfilled contingency.

Who holds the promissory note while it's being repaid?

The lender is the payee who holds the note while it's being repaid. If the note is transferred, the new owner becomes the payee and note holder.PAYEE

Emblements are ______.

Think personal property and the product of the tenant or worker's labor.ersonal property/fructus industriales

Before a landlord can issue a Five-Day Notice of Noncompliance Affecting Health and Safety, two conditions must be met. One is that there must be a breach that materially affects health and safety. What is the other condition?

To issue a Five-Day Notice of Noncompliance Affecting Health and Safety, the tenant must do something that violates the obligation to maintain the premises that affects health or safety.The breach must be a violation of the tenant's obligation to maintain the premises.

Under which of the following clauses are the costs of building maintenance over a specified level are passed on to the tenant?

Under an expense stop clause, any costs of building maintenance that exceed a specified level are passed on to the tenant. This benefits the landlord by limiting unexpected expenses.

Who holds the promissory note when a deed of trust is used as a security instrument?

With a deed of trust, the lender receives the promissory note; the trustee holds the deed of trust.