Real Estate Study Set - CE SHOP
The tax assessor just appraised Monique and Darrell's home at $145,000. The assessment ratio for their property is 25%. What is the assessed value of Monique and Darrell's property?
$145,000 $36,250** $580,000 $75,400 To determine the assessed value, multiply the appraised value by the assessment ratio: $145,000 × 0.25 (25% in decimal form) = $36,250. This assessed value is used to determine the property tax amount.
A seller wants to net $40,000 after paying the broker's commission of 5% and a loan balance of $170,000. Assuming no other closing costs, calculate the sales price of the property to the nearest whole dollar.
$175,587 $210,000 $221,053** $225,040 To calculate this, flip the net to seller equation to be: sales price = (net amount + mortgage or other expenses) x (100% commission rate). So, we have: sales price = ($40,000 + $170,000) ÷ (100% 5%) = $210,000 ÷ 95% = $210,000 ÷ 0.95 = $221,052.63, which rounds to the nearest dollar as $221,053.
What's a deficiency judgment?
A judgment that allows the lender to collect the difference from the borrower if the foreclosure sale does not satisfy the debt.** The borrower defaults on the financial obligations in the promissory note. The mortgage lien is enforced. The net proceeds of a real estate transaction don't satisfy the payoff amount of mortgages on the property. If the proceeds from a foreclosure sale don't satisfy the debt, a deficiency judgment allows the lender to collect the difference from the borrower.
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 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.
A seller received $800,000 for a 5.5 acre rectangular parcel alongside a road frontage. The property is 400 feet deep. What was the price per front foot of the property?
$1,335.67** $2,000 $363.64 $598.95 First, find the square footage (5.5 × 43,560 = 239,580). You're given one dimension of the rectangle, so find the other: 239,580 ÷ 400 = 598.95 front feet. To find the price per front foot, $800,000 ÷ 598.95 = $1,335.67 per front foot.
Tom is an Arizona homeowner who had a judgment lien levied against him, but the Arizona Homestead Exemption will allow him to exempt part of his primary residence from seizure for payment of debts. What is the maximum amount Arizona homeowners can exempt?
$150,000 for an individual and $300,000 for a married couple $250,000 for an individual or married couple** $75,000 for a married couple $75,000 for an individual and $150,000 for a married couple The Arizona Homestead Exemption is automatic and applies to individuals and married couples, but a married couple can only claim one homestead exemption totaling $250,000. However, certain debts bypass the exemption.
Beverly bought a commercial piece of property two years ago for $19,000. Based on the average annual commercial depreciation rate, how much is the property worth today?
$17,656 $18,024** $18,316 $18,605 Commercial property depreciates fully in 39 years, or at a rate of 2.6% per year. Multiply the original value by 97.4% (100% - 2.6%): $19,000 × 0.974 = $18,605 for the first year. Then repeat for the second year: $18,605 × 0.974 = $18,024.84
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 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.
Kristin has been renting a small loft apartment week to week from Sari for the past few months. Recently, Kristin found out her mother had fallen ill, and she needed to return home to another state. How much notice must she give Sari before vacating, according to Arizona law?
10 days** 14 days 30 days Seven days Kristin must give 10 days' notice.
What's one square yard equal to?
10 square feet Nine square feet** Six square feet Three square feet There are nine square feet in a square yard, because one yard is three feet and in a square, all sides are equal in length, which makes one square yard equal to 3 x 3 = 9 square feet. To find out how many square feet in square yards, multiply by nine
A property is 330 feet long by 100 feet wide. How many square feet is the property?
10,300 30,000 3,300 33,000** 330 × 100 = 33,000
There are three basic requirements for renewing an Arizona real estate salesperson license: a renewal fee, a renewal application, and ______.
A bank statement A letter of good standing from the licensee's employing broker A passing score on the renewal licensing exam Completing the approved continuing education coursework** In addition to a submitting a renewal application and a renewal fee, licensees must show proof that they've completed 24 hours of approved continuing education coursework during the previous two years of licensure.
How many years of experience does an applicant for a contractor's license in Arizona need to have?
A minimum of four years' practical or management experience (at least two of which within the last 10 years), with the applicable license classification (or its equivalent), or have a waiver from the AZ ROC** A minimum of one year of management experience A minimum of two years' practical or management experience (at least two of which within the last five years), with the applicable license classification (or its equivalent) No experience required All qualifying parties must have a minimum of four years' practical or management experience (at least two of which within the last 10 years), with the applicable license classification (or its equivalent) or have a waiver from the AZ ROC.
Cameron, a broker with a firm in Yuma, is reconciling his clients' trust account, and is about to perform the reconciliation process required by the Arizona Department of Real Estate. To complete the reconciliation, he needs to gather his bank statement, his journal of receipts, disbursements and deposits, and ______.
A reconciliation report** His business expense report His checkbook register His tax statement To complete a client trust account reconciliation, brokers must have the current bank statement, the receipts and disbursements journal (or check register and deposit records), and a reconciliation report.
Which project would a life insurance company be most likely to finance?
A room addition on an existing home A shopping mall** A small church building New home construction Life insurance companies prefer large commercial projects, such as shopping malls.
Individual property managers may be employed by an owner and manage ______.
A single property** Multiple properties Properties within a single state Several connected properties Individual managers may be employed by an owner and manage a single property. If they're employed by an owner and actually salaried, they can do almost anything a licensee can do for that owner, with certain exceptions, without a license.
Lisa is holding an open house for her client, Tim. Several couples stop by. Aarthi and Ram don't interact with Lisa at all. Gina and Reggie talk with Lisa about the property; they're not working with another licensee. Marcus and Marvin stop by and talk with Lisa about the property; they're already working with another licensee. Which parties are considered consumers at this point?
Aarthi and Ram** Gina and Reggie Marcus and Marvin Tim Tim is Lisa's client; Gina and Reggie and Marcus and Marvin both talk with Lisa about the property, so they could be considered customers. Aarthi and Ram made no contact with Lisa, so are most likely to be termed consumers at this point.
All of the following are typically common property manager duties EXCEPT ______.
Accepting rental applications Making mortgage payments** Re-keying a property Showing vacant units While property managers handle a plethora of duties, certain tasks, including making mortgage payments, are usually conducted by the property owner.
You represent seller April, who is your Uncle Clyde's girlfriend. You receive an offer from Barry on behalf of a prospective buyer. Whose interests do you represent, and in what order?
April's first, then Clyde's, then Barry's Clyde's first, then April's, but not Barry's Only April's** Your Uncle Clyde's first, then April's, then Barry's You must put your client's interests (and April is your client) ahead of all others
In Arizona, who's responsible for property damaged between contract signing and COE?
As negotiated between the parties after the damage occurs The buyer The seller** Whichever party is indicated in the AAR purchase contract The AAR purchase contract notes that the seller is responsible for property damage incurred after the contract is signed but before closing.
Which special lease clause stipulates that the tenant is allowed to assign or sublet the rented space to a sublessee if the tenant has a change in circumstances?
Assignment/subletting** Escalation Service included Tax Where an assignment/subletting clause exists, tenants may be able to sublease their rented space for a higher price than they're paying the investor/owner.
Jim would like to sell his own home. What is the minimum real estate license he must possess?
Associate broker Broker None** Salesperson Remember that in this case, Jim isn't performing real estate activities for others for compensation.
What does it mean for licensees to be multicultural in perspective?
Avoid any interaction with people of different cultures to dodge any awkward conversations or any possible insult. Disagree with people who have different beliefs and traditions and avoid working with them at all cost. Judge other cultures solely by the values and standards of one's own culture. Respect the differences among cultures and recognize that other people's beliefs are legitimate and authentic.** A licensee who's multicultural in perspective respects the differences among cultures and recognizes that other people's beliefs are legitimate and authentic
Jarod has a heap of financial trouble. His credit card debt is piling up, he owes child support, and he's defaulted on his mortgage loan. His lender starts foreclosure proceedings. Which of these choices would stop the foreclosure and possibly allow Jarod to keep his home?
Bankruptcy** Deed in lieu of foreclosure Home equity loan Short sale A bankruptcy filing requires the lender to stop foreclosure proceedings. Depending on how the court restructures Jarod's debt, it's possible he could keep his home
What information does Schedule B-2 of an ALTA title commitment provide?
Basic facts related to the transaction and property, including a legal description Exceptions and flaws that the title insurance policy will not cover** Information on how to dispute a title commitment Requirements that lenders must meet before a title policy will be issued Schedule B-2 lists items that will not be covered by the title insurance policy. Note that other title commitment forms may use a different schedule name.
George is an Arizona salesperson representing a seller client in a real estate transaction. His employing broker, Hannah, is preparing a written disclosure to give to the transaction parties regarding who will receive compensation from the transaction. When will Hannah need to provide the compensation disclosure?
Before closing** Before the final funds transfer Before the first offer is received Before the listing goes on the MLS The broker must disclose to all the parties in a transaction, in writing before closing, the name of each employing broker who represents a party to the transaction, and who will receive compensation from the transaction.
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** 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.
Which of these is NOT a part of the process at a trustee's sale in Arizona?
Bidders make a $10,000 deposit prior to the sale. If the lender chooses to bid on the property, no other bid is accepted. The highest bid that meets the lender's minimum wins the property. The winning bidder must pay the trustee cash by the end of the next business day.
Which of the following parties typically performs escrow and closing services?
Buyer's attorney Closing agent** Lender's attorney Seller's attorney The buyer has the right to choose the closing agent who'll handle the escrow and closing services.
Meg is considering a move to a foreign country and wants to deed her property to her son, Christian, who's 16. Which of these must occur to make this transfer legal?
Christian must agree to the transfer and sign the deed. Christian must provide monetary compensation to Meg. Meg must sign the deed and have her signature acknowledged.** Meg must wait until Christian has reached the age of majority. As the grantee, Christian doesn't have to sign the deed, and he doesn't have to be legally competent or of legal age. The property can be conveyed only if some consideration is in place, but it doesn't have to have a monetary value
When you're involved in a transaction, lenders, appraisers, and other service providers are all ______.
Clients Customers Financial representatives Third parties** Customers, lenders, appraisers, and other service providers are all third parties.
Mariah was appointed to a two-year term on Garden City's planning board. She's looking forward to meeting her fellow board members and working collaboratively on issues that affect their town. She's been told that the first order of business is a revision of the document that outlines the community's long-term needs and provides guidance on capital budgeting for those needs. What is this document called?
Comprehensive master plan** Environmental impact study Special use permit Zoning ordinance The comprehensive master plan outlines the most important goals of a local planning board and often sets up a timeline of dates by which to meet these goals.
Quentin brought an application before city council to build a shopping mall on 17 acres south of town that currently don't have a zoning designation. The council referred him to the planning commission, which will review the application in light of the city's ________.
Comprehensive plan** Economic development plan Health and sanitation ordinances Zoning ordinances Since the parcel isn't currently zoned, zoning should be established in alignment with an area's comprehensive plan.
Arizona requires real estate professionals to disclose the ______ of airports, military installations, training routes, restricted airspace, accident potential zones and private and public airports to consumers.
Crime rate Employment rate Noise level Proximity** Arizona requires real estate professionals to disclose the proximity of airports, military installations, training routes, and accident potential zones to consumers.
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.** Jenson deposited his client's earnest money check into the firm's trust account. Jessica deposited her commission check into her brokerage firm's operating account. Sean withdrew funds from the firm's operating funds to pay the firm's office rent. Commingling occurs when funds in or intended for a trust account are intermixed with operating or personal funds.
Don, a rancher, has legally diverted water to use on his crops. Which of the following statements about his situation is true?
Don cannot sell this water right to anyone else. Don lives in a state that manages water via prior appropriation.** Don owns this water right in perpetuity. Don's claim to the water source has priority over all others. If Don has legally diverted water, he lives in a state that manages that water via prior appropriation rather than via riparian rights
Which type of easement is acquired through years of use, with one person acquiring the permanent right to use another's property by doing so for an extended period of time?
Easement appurtenant Easement by way of necessity Easement in gross Prescriptive easement** This defines a prescriptive easement.
A loss in value caused by an undesirable or hazardous influence offsite is which type of depreciation?
Economic and material depreciation External depreciation** Functional obsolescence Physical depreciation External depreciation or economic obsolescence is a loss in value caused by an undesirable or hazardous influence offsite.
Johnny is overwhelmed by the amount of work that goes into being a landlord and has too many requests for repairs from his tenants. He needs to choose one of these to hold off on for now. Which repair can he legally postpone completing?
Evie's key broke in her deadbolt and she can't lock the front door. Jay clogged up his toilet again, and still hasn't bought himself a plunger.** The lights and outlets aren't working in Ethan's living room. The water to Julie's shower won't turn on. Actually, Jay needs to be told to get himself a plunger. A clogged toilet that is otherwise functioning doesn't rise to the level of inhabitability. The broken deadbolt, shower, and electrical system are all higher priority.
Which of the following is true regarding express agreements?
Express agreements are implied. Express agreements are invalid. Express agreements may be written or verbal.** Express agreements must be lengthy. Some states don't require an express agreement to be in writing to be binding unless the agreement is for the purchase of real property.
What is the federal program that was created to help mitigate future flood losses across the country?
Federal Flood Loss Prevention Program (FFLPP) Federal Flood Loss Program (FFLP) National Flood Insurance Program (NFIP)** National Flood Mitigation Fund (NFMF) The National Flood Insurance Program was created for this reason.
How many real estate licenses can Arizona licensees hold at any time?
Five One** Three Two Each licensee must only hold one license at any given time.
Which term would you most likely see associated with a lake?
Fracking Littoral** Percolating Riparian Littoral rights relate to lakes and oceans. Riparian rights relate to rivers and streams.
What makes a "Choose Your Neighbor" marketing letter potentially discriminatory?
It limits the availability of the property for sale to those who are "pre-approved" by neighbors.** It prevents illiterate neighbors from participating in selection of buyers. The letters don't allow neighbors to agree on the actual buyer. There's no requirement for the number of neighbors who receive the letter. The "Choose Your Neighbor" marketing letter is discriminatory when it limits or restricts the type of buyers who have access to the property.
If a landlord wants to notify a tenant that the leasehold interest in the property is subordinate to a mortgage, what clause would be included in the lease?
Mortgage clause Subjective clause Subordination clause** Use clause The subordination clause sis the lessee's agreement or acknowledgement that the leasehold interest is subordinate to a mortgage or deed of trust
Liza's Arizona salesperson's license is inactive due to a suspension. The suspension period is up, but her license expired three months ago. With the suspension resolved, she is eligible to apply for reinstatement by ______.
New application Original application Re-application Renewal** When a license has been canceled or suspended and the reason for inactivation has been resolved but the license has expired, that licensee would apply for reinstatement by renewal.
Byron is an environmental engineer working for Smith Environmental Services, Inc. He's currently working on a site assessment for an old hospital. Byron just sent soil and water samples to the lab that Smith uses for all of its testing. Which phase of the assessment process is Byron currently in?
Phase I Phase II** Phase III Phase IV Phase II encompasses testing in order to verify site contamination.
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 should file a complaint with the Arizona Department of Real Estate and consequently the Boulders operations may close. Steven's sale can be voided and he has a right to rescind the contract.** Steven will be able to stay at his timeshare as often as he wishes. The only recourse Steven has is to sue the Boulders. Developers should be prepared to void a sale and refund a buyer's deposit when they haven't complied with filing a public report.
Chlorofluorocarbons (CFCs) are no longer used in manufacturing thanks to what?
The Clean Air Act** The DEC The introduction of Freon The Ozone Act of 1990 The Clean Air Act of 1990 restricts the use of CFCs and eliminates the production of all chemicals that deplete the ozone layer.
In Arizona, real estate salespersons act on behalf of ______.
Their associate broker Their employing broker** Their supervising salesperson Themselves A real estate salesperson has a salesperson license and performs real estate activities for compensation through and on behalf of an employing broker.
Which of the following is true of professional codes of ethics?
They aren't applicable to individual actions. They cover every imaginable ethics-related situation. They're broad, but they can't possibly cover every ethics-related situation.** They're open to personal interpretation. Professional codes of ethics provide broad guidelines for behavior, but can't cover every situation. They do apply to the actions of individuals and are usually stated so that interpretation isn't required.
According to best practices, how far out should the decimals in your proration calculations be rounded?
To the nearest $10 To the nearest cent** To the nearest dollar To the nearest five decimal places When calculating prorations, always round your calculations to the nearest cent. For example, if you calculate a prorated cost of $56,240.049387, you should round to $56,240.05.
A cooperative is a(n) _____.
limited partnership LLC not-for-profit corporationsole proprietorship** sole proprietorship A cooperative is a joint venture with its shareholders, formed for their benefit and governed by them. It's a not-for-profit corporation.
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?
$13,683.56 $16,065.85 $16,309.80 $17,404.09** First, find the area of each room and add them together to get the total square footage. 108 + 600 + 1,125 + 192 + 192 + 280 = 2,497 square feet. The total cost of the flooring per sq. ft. is $5.48 + $1.49 = $6.97. So 2,497 × $6.97 = $17, 404.09.
Glenn was still living in the house his lender foreclosed on, but he moved out the day after the sheriff's sale. He stayed in a cheap apartment in town, because he hoped to save enough money to redeem his adobe home on a full acre one day. What's the length of the redemption period that Arizona law gives Glenn?
30 days None; Arizona foreclosures don't allow a redemption period. One year Six months** After a judicial foreclosure, Arizona gives the borrower the right of redemption. For residential property less than 2.5 acres that's not abandoned, as in Glenn's case, the redemption period is six months.
Which of the following describes loan-to-value ratio?
A calculation that describes the amount being borrowed compared to the value of a property** A calculation that illustrates a borrower's principal payment compared to interest A calculation that looks at a borrower's monthly housing obligation—which includes principal, interest, taxes, and insurance—as well as any homeowners or condo association fees, as a percentage of monthly gross income A calculation that looks at all recurring (or installment) debt—such as monthly mortgage, car, credit, and loan payments—as a percentage of the borrower's monthly gross income It's a calculation that describes the amount being borrowed compared to the value of a property. The value used in this equation is the lesser of the sales price or appraised value.
What's contained in a UCC security agreement?
A complete description of the personal property used as collateral** A list of personal character references A list of security services provided under the contract A signature of an authorized representative of the lender While the Uniform Commercial Code doesn't generally apply to real estate transactions, it does apply when personal property is used as collateral. A UCC security agreement must include a complete description of that personal property.
What is the MLS?
A database of real estate information** A list of buyers and their contact information A server that records incoming data in a mirror image Photo editing software for real estate licensees The MLS is a shared database of real estate information, including properties for sale and recent sales, as well as pending, expired, and withdrawn listings.
What is a loan origination fee?
A fee a lender charges for processing a loan** A fee a lender charges for servicing a loan A fee a lender charges for the use of its money A fee a lender charges when a borrower pays off a loan A loan origination fee is a fee a lender charges for processing, or initiating, a loan.
Which of the following Arizona leases would be automatically void and unenforceable?
A lease for which the landlord didn't give written notice to the tenant that he could find the Arizona Landlord and Tenant Act on the Arizona Department of Housing's website A lease that includes exonerations regarding the landlord's legal liabilities** A lease that isn't written A lease under which the landlord fails to deliver full possession of the rental unit at the beginning of the lease term A lease that includes any prohibited provisions-including exonerations, indemnifications, or limitations regarding the landlord's legal liabilities-is automatically void and unenforceable.
Whoa—this market is hot, hot, HOT! You've had five offers come in since you listed your seller client's home yesterday. Of the options listed, which is the best strategy?
Accept a middle-of-the-road offer, but on the condition that no home inspection repairs will be performed. Have all buyers submit their "highest and best" offer, then help the seller decide which offer is most appealing.** Leave it on the market for another three days to allow time for even more offers to come in. Reject the offers and put the home back on the market for the amount of the highest offer. If you've got multiple offers, in most markets, it's best to work with the strongest offer that's acceptable to the seller. Another option in a very hot market is to ask all buyers to submit their highest and best offer.
Which of the following renovation projects is most likely permitted to be completed by a handyman, per the handyman exemption in Arizona?
Adding a propane connection for a backyard kitchen Installing an alarm system Installing a sprinkler system in a 12-acre horse ranch Replacing the hardware on the kitchen cabinets** Any work that requires a permit or involves a casualty loss, landscaping, alarm systems, connections to a natural gas, propane, or other petroleum or gaseous fuel supply requires a licensed contractor
A real estate licensee and his client fulfill the listing agreement, and the agency relationship is terminated. At what point did the agent's fiduciary duty of confidentiality to this client terminate?
After 30 days After one year Immediately Never** An agent's fiduciary duty of confidentiality does not end, even when the agency relationship is terminated.
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 Licensees must disclose to consumer all terms, conditions, and restrictions for any incentives offered before the consumer participates in the offer.
Which of the following is NOT one of the five basics tests that courts use to determine whether an item is a fixture or personal property?
Agreement of parties Legally permissible use** Method of annexation Relationship of the parties The five basic tests to determine whether an item is a fixture are method of annexation, adaptability of the item to land's use, relationship to the parties, intention of placing the item on land, and agreement of the parties.
______ taxes are a reliable source of income for the state because they are difficult to conceal, their value tends to remain relatively steady, and people tend to pay them.
Alcohol Income Property** Sales Property values generally remain steady. Because people don't want to risk losing their home, they are highly likely to pay their property taxes. Also, because property taxes are connected to tangible property, they are very difficult to conceal.
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 real estate employment agreement is Arizona's term for a listing agreement or buyer agency agreement.
The process of determining the location, size, and boundaries of a parcel of property is called ______.
Platting Subdividing Surveying** Title searching Surveyors walk the property and describe the boundaries while identifying monuments at the property corners, confirming location and size.
What type of ads don't include the licensee's name and brokerage's name?
Blind ads** Brokerage ads Display ads Non-branded ads Arizona ads that don't include the licensee's name and brokerage's name are called blind ads.
Your new home listing has some minor condition issues, most of which the seller Barry disclosed properly when filling out the disclosure form. However, you noticed that he didn't disclose the test results that showed E. coli bacteria in his well water. You don't say anything, since it's not your role to fill out the disclosure form. If the buyer discovers issues with the well after closing, who is legally liable for this omission?
Both you and Barry** Neither you nor Barry Only Barry, as the property owner Only you, as the licensee Licensees are responsible for disclosing known environmental issues. To not disclose something that you know about leaves you, as well as the seller, open to a lawsuit.
Marcy listed her property with Jennings Homes in March. The market was slow, and Marcy's property isn't in great condition—though she's sure she can get top dollar for it because of its location. Her agent encouraged her to either reduce the price or fix the property up, but she refused. Both Marcy and her agent are frustrated. What's the best option for both of them?
Bring in another agent to help price the property. Let the listing expire. One party or the other should terminate the listing. They can mutually agree to terminate the listing.** Since Marcy and her agent don't agree on what to do to get the house sold, it's likely best for them to mutually agree to terminate the listing.
If a seller asks a buyer to waive the inspection contingency, how could the transaction process transpire and still protect the buyer?
Buyer has inspection, buyer makes offer, seller accepts offer** Buyer makes offer, inspection performed, seller accepts offer Buyer makes offer, seller accepts offer, closing occurs, inspection performed Buyer makes offer, seller accepts offer, inspection performed If the seller won't accept an offer with an inspection contingency, a buyer could have a professional inspection done before submitting the offer and waive the inspection contingency if the buyer still wanted to make an offer
Jerry is holding an open house for a property he has listed. He speaks to several visitors, but none of them discuss making an offer. What are these visitors called?
Clients Customers** Neighbors Principals The interaction between Jerry and the open house visitors defines them as customers. Customers aren't represented by the licensee, but are merely interested parties.
Private loan companies may be found in many places. There are ______, regional, and local lenders, and even individual entrepreneurs who loan money.
Collateral Governmental Municipal National** Private loan companies can be found in many places. There are local, regional, and national lenders, and even individual entrepreneurs who loan money to others
James is a trustee for an estate that's being sold. What are the license requirements for James under Arizona statute?
He'll need to have an escrow license. He must have a designated broker's license. He's required to have a salesperson's license. There is no requirement to have any type of real estate license.** Real estate activities performed by trustees do not require a license
Claudia wanted to build a large-scale toy manufacturing plant in her backyard, but was prevented from doing so by ______.
Federal law Her neighbors The local utility company Zoning regulations** Zoning regulations exist to ensure that property is used in a way that's good for the general welfare. Claudia's plan to build a factory in her backyard would be detrimental to the neighborhood, and very likely prohibited by zoning regulations.
Selma and Richard have the temporary right to live at 123 Elm Street. They can come and go and use the property as they see fit, but they can't do so indefinitely. They must vacate the property at the end of next year. What sort of interest do they have in 123 Elm Street?
Fee simple estate Leasehold estate** Life estate Reversionary estate Richard and Selma have a leasehold estate. Leaseholds are created with a contract between the owner of a given property and a tenant who is given the rights of possession and enjoyment for a specified period of time.
Your seller client Miranda thinks the kitchen in her loft in downtown Phoenix needs a little work before she lists it, and she knows she can do the work herself. What can you do to help her navigate the handyman exemption?
Give her the name and number of an unlicensed handyman. Refer her to the Arizona Department of Real Estate for advice. Refer her to the Arizona Registrar of Contractors for advice. Research the cost of the repairs she wants to make to ensure they are less than $1,000 and don't require a permit or involve gas or electrical connections.** By researching the cost of the repairs your clients want to make, you'll help them make an educated decision that's not outside the scope of the handyman exemption.
Which local land use group has the dual focus of livability and quality of life?
HOA Master commission Planning board** Zoning board of appeals The planning board has the dual focus of livability and quality of life
Your client just bought a house in an active management area (AMA). Which of the following is true about her situation?
Her developer had to get an Adequate Water Supply certificate to build her house. Her developer had to get an Assured Water Supply certificate to build her house.** Her developer was allowed to withdraw groundwater at will. The developer becomes exempt from taxes by building groundwater treatment facilities. Building within an AMA requires an Assured Water Supply certificate.
Obtaining a 20-year mortgage instead of a 30-year mortgage results in which of the following?
Higher payments and additional interest Higher payments and less interest Lower payments and additional interest Lower payments and less interest** Because the loan term is shorter, monthly payments will be higher with a 20-year loan than with a 30- year loan. The loan will be paid off much more quickly, though, so the borrower pays significantly less interest over the life of the loan.
What's another name for a nonconforming loan?
Hybrid loan Jumbo loan** Piggyback loan Specialty loan A nonconforming loan, also called a jumbo loan, is one that exceeds the conforming loan limit.
Construction loans are a type of ______ financing.
Immediate In-between Interim** Intermediary Construction projects need short-term financing to complete the job, which is known as interim financing.
Appraiser Victor is determining the insured value of a property. What is he evaluating?
Items of great importance to a lender to replace or rebuild The cost to replace or rebuild a property** The price at which the property can be loaned on or sold at a foreclosure sale The return on investment the property may provide Insured value is the cost of replacing or rebuilding a property.
Siblings Julia and Gene are co-owners of a small retail building in which a tanning salon is currently operating. Gene really wants to leave his ownership interest to his son when he dies, but the way in which they own the property doesn't allow him to do so. What type of ownership do they have?
Joint tenancy** Tenancy by the entirety Tenancy in common Tenancy in severalty Joint tenancy does not include the right of inheritance; ownership interest passes to the remaining tenants once a tenant dies.
What happens to any junior liens on the property at a non-judicial foreclosure in Arizona?
Junior liens are extinguished by the sale** Junior liens become a debt owed to the new buyer. Junior liens remain on the property title, and the new buyer becomes responsible for repaying the debt. The lien holders are allowed to redeem the property after the sale. The foreclosure sale extinguishes all junior liens on the property and title is transferred with a trustee's deed.
Part of maintaining lawful conduct as an Arizona real estate licensee is keeping an active ______.
Lawyer on retainer License ** Limited liability corporation National Association of REALTORS® membership Licensees need to maintain an active license in order to lawfully perform real estate activities and accept payment and/or employment only from licensed brokers.
Shannon is reading through paperwork related to her upcoming home purchase when she comes across the following: "Southwest quarter of Southwest quarter (SW ¼ of SW ¼) and West Half of Southeast quarter of Southwest quarter (W½ SE¼ SW¼) of Section Eleven (11), Township Four (4) North of Range Eight (8) West." What did Shannon just find?
Legal description** Mortgage clause Quitclaim deed Tax description This is a legal description, which provides a more complete description of a property than a street or postal address. This particular legal description uses the rectangular government survey system.
Article 26 of the Arizona Constitution addresses how Arizona real estate licensees manage real estate transaction contracts and related documents. What authority does this article give licensees?
Licensees are authorized to present attorney-prepared forms but may not draft or fill in contracts or other legal documents. Licensees are permitted to draft and fill in real estate transaction-related contracts and documents based but may not charge for this service.** Licensees can help clients complete contract forms, but the licensee must charge the client for preparation under the terms of the Arizona Administrative Code and Arizona's constitution. Licensees must assist any Arizona consumers with completing real estate transaction documents, whether or not a brokerage agreement exists between them. Article 26 of the Arizona State Constitution empowers licensed real estate brokers and salespersons to draft or fill out any and all instruments of a real estate transaction, such as purchase agreements, earnest money receipts, deeds, mortgages, leases, and bills of sale. Licensees may not charge clients for this service
Stan was the victim of domestic violence at the hands of his live-in girlfriend, Staci. When the police arrived, they arrested Staci and took her to the county jail. The next morning, Stan obtained a protective order. A week later, Stan decided that he couldn't stay in his apartment anymore because of the bad memories. He informed his landlord in writing and provided a copy of the protective order. Did Stan's landlord have to allow him to terminate his lease early under Arizona law?
No Only if Stan found a replacement tenant Only if the abuser had further threatened him Yes** If a victim of domestic abuse notifies the landlord in writing and presents either a protective order or police report, the landlord must release the tenant from the lease early.
Broker Betty has a client, Norma, who is leaving her home after spending the last 40 years creating a beautiful rose garden in the yard. Norma doesn't want the home to go to anyone with pets or children who will destroy all her hard work. Can Betty comply with Norma's wishes?
No, Betty isn't legally allowed to comply with Norma's request in this instance because it's discriminatory against a protected class.** No, Betty should inform Norma that she's not allowed to select the buyer on the basis of any criteria other than the offer made; the property has to go to the highest offer. Yes, although Norma is discriminating, Betty isn't responsible for the seller's acts. Yes, Norma is within her rights to sell her home to the buyer of her choosing. Norma can't refuse to sell her home to a buyer based on the presence of children. This would be discrimination based on familial status.
What risk might an investor be taking by purchasing a foreclosed property at a sheriff's sale?
The court may allow the property to be transferred back to a prior lien holder. The former homeowner may redeem the property within six months after the sale.** The lender may choose to cancel the transaction within 24 hours of the auction. The sheriff's deed won't be issued until one year after the sale date. In a judicial foreclosure, the buyer may have a right of redemption, which poses a risk for the investor hoping to quickly resell the property for a profit.
What are the three primary acts that impact mortgage loan disclosure?
RESPA, TILA, and Dodd-Frank** RESPA, TRID, and Dodd-Frank TRID, TILA, and Dodd-Frank TRID, TILA, and ECOA RESPA, TILA, and Dodd-Frank are the three primary acts that impact mortgage loan disclosures. TRID is an acronym for TILA-RESPA Integrated Disclosures (the LE and CD).
Condominium ownership includes ownership of the space inside the unit itself, as well as ______.
Shares in the condominium corporation The airspace above the unit The common elements** Water rights When you own a condominium, you own the space inside the unit and a share of the common elements, such as lobbies, walking paths, and community grounds.
Mavis is a buyer's agent working with Blaine, an unrepresented seller. Mavis's buyer, Cintra, makes an offer on Blaine's property. Mavis assists Blaine with the paperwork. What's Mavis's relationship to the parties?
She's a buyer's agent to Cintra and an undisclosed dual agent with the seller. She's a dual agent to the buyer and seller. She's an agent to Cintra, and the seller is her customer.** The seller and buyer are her customers. Assisting with paperwork doesn't create agency.
When state and federal laws differ, as they sometimes do with fair housing and/or human rights, which of these statements is true?
State and local law override federal law. State lawmakers decide which law prevails. The conflicting law is invalidated, effectively removing the law's requirements. The state law may not remove rights granted to citizens under the federal law.** Fair housing laws are designed to protect citizens from discrimination. States can't make laws that remove rights that federal law grants to citizens
When a mortgage is used as a security instrument, who holds the mortgage and the promissory note?
The borrower holds the mortgage, and the lender holds the note. The borrower holds the mortgage and the note. The lender holds the mortgage, and the borrower holds the note. The lender holds the mortgage and the note.** The note and mortgage are the lender's leverage to foreclose in the event of default.
Who is responsible for requesting a loan payoff statement before closing?
The buyer The lender The seller** The title insurance representative Sellers are responsible for requesting a loan payoff statement before closing if they still owe on their mortgage at the time of the sale.
A family of four, with children ages six and nine, is denied the opportunity to view an available unit in housing intended for older persons. Which of the following statements is true?
The federal Fair Housing Act allows an exemption for communities that are designed and operated for older persons.** The federal Fair Housing Act allows an exemption for communities that don't have playgrounds or play areas for children. This is a violation of the federal Fair Housing Act because it discriminates on the basis of age. This is a violation of the federal Fair Housing Act because it discriminates on the basis of familial status. A familial status exemption is available for housing for older persons that meets HUD's requirements.
While circumstances affecting eligibility for reinstatement of a cancelled, suspended, terminated, or revoked Arizona real estate license may vary, what factor will always result in a licensee's ineligibility for license reinstatement?
The licensee completed their pre-licensing courses more than 10 years before the reinstatement request. The licensee is under investigation for alleged violations at the time of the reinstatement request.** The licensee's license expired more than one year before the reinstatement request. The licensee's licensing exam was taken more than 10 years before the reinstatement request. Regardless of the reason for inactivation or the state of resolution, applicants who are currently under investigation for alleged violations aren't eligible to have their licenses reinstated.
