Real Estate Study #5

Kathy has been a good tenant for two years. Over the weekend, she adopted a dog and failed to notify her landlord. When her landlord found out, he issued a notice for her to either pay the pet deposit or remove the dog from the unit. Which notice did Kathy's landlord likely issue?

10-Day Notice of Material Noncompliance

Single-story detached ancillary structures with floor areas of more than ______ square feet require a building permit in Arizona.

200

How many feet are in a mile?

5,280 feet

What type of professional must an investor use to conduct a tax-deferred exchange?

A qualified intermediary

When an Arizona foreclosure sale is completed, when will creditors holding junior liens on the property be paid?

After the foreclosure costs, the foreclosing lender, and any outstanding HOA fees are paid

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

Under which of the following types of leases does a tenant rent property with an unfinished interior and agree to complete the construction?

Building shell lease

Condo owners have to obey condo rules set forth in bylaws and ______.

CCRs (covenants, conditions, and restrictions)

Clint was looking for alternatives to the traditional vacation condo rental for his family. He purchased the right to use a given set of facilities at any point throughout the year. What did Clint purchase?

Campground membership

Which type of insurance can property managers carry to cover accidents that occur in the office?

Commercial general liability

In Arizona, which of the following affiliated service providers requires a license from the state?

Contractors, pest management professionals, and home inspectors

In a 1031 tax-deferred exchange, what role does the qualified intermediary serve?

Coordinates the exchange

Spring has sprung, and you need to hire someone to clean out the flower beds at an apartment complex. What type of maintenance will be performed?

Custodial

Which of the following is a guideline used by Freddie Mac when determining if a loan is conforming?

Down payment

The Arizona State Constitution empowers licensees to ______.

Draft and fill out documents incidental to real estate transactions

Which one of the following options provides three valid examples of a private land use control?

Easement, lien, deed restriction

Jake, who was leasing a house, retained possession even after his right to possess had terminated. Jake has a(n) ______.

Estate at sufferance

A groundwater contamination site cleanup effort is considered to be successful _____.

Even if the water still isn't drinkable.

What information does Schedule B-2 of a title commitment provide?

Exceptions and flaws that the title insurance policy will not cover

Select the statement that accurately describes an abstract of title.

Few states require an abstract of title when conveying property.

The client ledger is a record of various accounting items not found in the trust account checkbook. These include the receipt date, name of transaction party names, deposit date and ______.

Final disbursement of funds

Cooperative shareholders under a condop structure have ______.

Flexibility in selling and subletting, similar to that of condominium owners

Which type of distressed property transaction requires a cash purchase?

Foreclosure auction

If an Arizona licensee misses the deadline for the continuing education requirements, the Arizona real estate commissioner can grant a waiver or additional time if the licensee shows ______.

Good cause

Maxwell is a tenant. His lease has a fixed rent in which the landlord pays all taxes, insurance, and maintenance expenses. What type of lease does he have?

Gross

What's a key feature of the Federal Housing Administration's loan program?

Insures lenders against loss from borrower default

What purpose does bulk zoning serve?

It restricts building density.

What are accrued expense items?

Items to be divided proportionately between the buyer and seller that the seller owes

Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he was paid $12,239.50 in commissions from his home sales, which totaled $538,000. Assuming every transaction for the month was shared with a cooperating brokerage, what is Jared's brokerage's commission rate?

Jared was paid $12,239.50, which is 70% of the amount paid to his broker as commission. That makes his firm's commission $12,239.50 ÷ .70 = $17,485. Multiply that by two for the total commission the firm grossed, since it's shared 50/50 with a cooperating brokerage (the brokerage that brings the buyer to the sale), giving you $34,970. Then divide by the total sales amount for the brokerage's commission rate: $34,970 ÷ $538,000 = 0.065, or 6.5%.

John is selling his rental property to Tony. Marcus represents John, and Meredith is working with Tony, though there is no agency relationship between them. In this scenario, who is/are the principal(s) in an agency relationship?

John

The primary purpose of the Real Estate Settlement Procedures Act is to ensure that buyers ______.

Know all settlement costs up front

A ______ is advisory in nature, intended to encourage a licensee to modify or eliminate certain practices in order to avoid future disciplinary action. It stays in a licensee's record for future consideration.

Letter of Concern

In which of the following situations can the state use its power of escheat?

Nadine died with no heirs and no debt.

Brynn's listing agent told potential buyers that all offers on Brynn's property would be considered at 5 p.m. on May 3. By that date and time, there were four offers. The persons making these offers are the _______.

Offerors

What's the name of the clause included in a finance instrument that requires the lender to release a portion of the property from the lien when a part of the debt has been paid?

Partial release

Your seller client has listed a beautiful piece of land on the water. You know this property would be a great investment if it were subdivided and developed, but you don't mention the potential investment value to the seller because you want the property for yourself. You also don't market it or present any offers. After several months, you buy the property at a deep discount. What does this make you guilty of?

Passive fraud

The authority to levy and collect property taxes is an example of ______.

Police power

What information about the property is included in the Uniform Residential Loan Application?

Property value

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 ___________.

Reduced loan term

According to Arizona law, how long does a purchaser have to back out of buying unsubdivided land without consequences?

Seven calendar days

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.

Which of these situations represents a unilateral contract?Which of these situations represents a unilateral contract?

Sherry promises to give Brent a ride home from work, and then doesn't show up.

An executory contract is one that's been ______.

Started

What's the term for the illegal practice of nudging buyers away from or toward a specific area based on the presence or absence of protected class members?

Steering

Which amendment to CERCLA says that "innocent landowners" aren't responsible for the cleanup of hazardous contamination?

Superfunds Amendments and Reauthorization Act

Arizona licensees who have been notified of investigation under suspicion of license law violations have the option to ______ if they do so not less than 10 days prior to their hearing.

Surrender their license

Brothers Kevin and Michael buy a house together. They don't specify how they'd like to hold title, so their ownership defaults to _______.

Tenancy in common

Jenson signed a seller agency agreement with Susan. Right before closing, a hurricane destroyed the property. What happened to Jenson and Susan's agreement?

The agreement terminates by force of law.

If a property's income value is $200,000 and it's earning a net operating income of $40,000, what is the cap rate?

The cap rate is 20%. To calculate cap rate, divide the income by the property value. The formula for this is rate = income / value.

What title guarantees will Jody have when she buys a property at a foreclosure auction?

The covenant of seisin

When a mortgage is used as a security instrument, who holds the mortgage and the promissory note?

The lender holds the mortgage and the note.

Marla, an attorney, is purchasing a property. She's adamant that she receive clear title to the property. What does this mean?

The title has an unbroken chain of ownership and no liens or encumbrances.

Which of the following statements is true regarding timeshare estates?

Timeshare estates can be sold or passed down to heirs.

How many parties does a mortgage involve?

Two: borrower and lender