real estate practice ( missed questions pt2)

The Millers want to break even on the sale of their home after the broker's commission of 5% and loan balance of $275,000 are paid. At what price must the house sell (rounded to the nearest whole dollar)?

$289,474

Over how many years is a commercial property depreciated?

39 years

How many feet are in one mile?

5,280

What type of clause is this? "If any monthly installment under this Note is not paid when due and remains unpaid after a date specified by a notice to Mortgagor, the entire principal amount outstanding and accrued interest thereon shall at once become due and payable at the option of the Note holder."

Acceleration clause

What is the three-property rule as it relates to tax-deferred exchanges?

An investor can identify up to three replacement properties and not encounter a restriction regarding fair market value as long as debt load requirement is met.

Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the property divided?

Barbie owns two-thirds, and Midge owns one-third.

What deed warranty guarantees that the seller is the actual owner of the property being conveyed?

Covenant of seisin

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.

When working with a seller, you signed a listing agreement that ensured you'd receive a commission, provided the property sold during the listing term. What type of listing agreement did you sign?

Exclusive right to sell

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

Expense stop clause

Which act created an agency to investigate antitrust practices?

Federal Trade Commission Act

Which of these statements describes an accurate flow of authority (from most to least authority) for Arizona real estate licensees?

Legislature, real estate commissioner, advisory board, broker

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.

Donna won a final judgment against Arizona licensed contractor Marcus for work he failed to complete at her home. She sought restitution from the bond that covers him and discovered that he had no assets to satisfy the judgment. What last step can she take to recover the amount awarded in the final judgment?

Notify the AZ ROC and seek payment from the residential contractors recovery fund

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.

Mortgage bankers are mostly what type of enterprise?

Private

Which legal description method is regulated by the U.S. Department of the Interior's Bureau of Land Management?

Rectangular government survey

If the land is described as "N ¼ NW ½ Section 4, Township Bailey," what type of legal description is being used?

Rectangular survey system

What discriminatory lending practice by lenders resulted in the destruction of whole neighborhoods, with perfectly good housing left abandoned?

Redlining

What act requires sellers, landlords, and their agents to disclose any known lead hazards in the home?

Residential Lead-Based Paint Hazard Reduction Act

Which of these types of tenants most often uses a percentage lease?

Retail

Gretchen receives a call from a prospective employer wanting information on one of her tenants. In accordance with the FTC privacy rule, Gretchen can do which of the following?

Share information about her tenant with the prospective employer without her tenant's written consent.

Arizona landlord Tara receives a notice of a trustee's sale on the property she's already rented out to tenant Will. What is Tara's obligation under the law?

She must send Will a written notice of this within five business days of receiving the sale notice.

Lewis and Elliot started a real estate investment business together. After much discussion with their attorney, they decided to incorporate, but in such a way that they are treated like a partnership and don't have to pay corporate taxes. What form of business do they have?

Subchapter S corporation

Which agency applies the "target" designation to a dwelling and has set specific requirements for lead abatement and remodeling of these homes?

The EPA

Which of the following is a potential disadvantage for a buyer who enters into a lease with an option to buy contract?

The buyer/lessee could lose any funds credited to the purchase price if he breaches the lease's terms.

Which of the following statements is true about the commissioner's advertising and promotional material decision about timeshares?

The commissioner's decision will give required actions to resolve any issues prior to final approval.

Which of the following best describes a net listing?

The seller specifies a desired price for the property and agrees to pay the broker any amount received that's more than that price.

When proceeds from an Arizona foreclosure sale are applied, which of these parties will be paid after any junior lien holders?

The trustor

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.

According to federal law, which one of the following items may legally be disposed of in a landfill?

Tires

Jennings has received a Closing Disclosure from his lender. What's the purpose of this form?

To detail all costs Jennings will owe at closing

Tucson developer Cactus Sky Company has laid out an industrial park with 10 50-acre lots. What kind of land is this considered?

Unsubdivided

Both tenants and property owners file lawsuits against property managers. Which item is a common tenant grievance?

Wrongful entry/invasion of privacy

Charley's loan amount is $212,000, his appraised value is $275,000, and his interest rate is 4.375%. What is his annual interest?

$9,275

An Arizona city or town that requires vacation rental or short-term rental permits must adopt an ordinance that allows such permits to be suspended for up to ______ for verified violations.

12 months

Jardin passed away suddenly, and when his family started looking through his documents, they found a handwritten will. Which of these statements about the will is true?

A handwritten will, also called a holographic will, may be valid if it meets other terms for validity.

Mary contracted to buy her mother's house when her mother moves to a senior living community, but now Mary has to move because of work and no longer wants to buy the house. With their mother's agreement, Mary's sister, Tina, steps in, releasing Mary from her obligation. They write up a new contract, with the only change being that Tina is now the party to the contract rather than Mary. What's happened here?

Novation

Which of the following is a legal term that can mean the right to take products out of the soil?

Profit

To be considered a subdivider in Arizona, how many lots in the same subdivision must be owned?

Six

In Arizona, which of the following types of liens has the highest priority?

Tax liens

Which of the following describes property taxes?

Taxes that are raised and spent locally to finance public services

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?

Termination

What must happen for an easement to be terminated due to abandonment?

The dominant estate owner takes action that shows a clear intent to stop using the easement.