Real Estate

All broker applicants must pay ______ into the Arizona recovery fund.

$20

The Environmental Quality Incentives Program finances conservation practices through contracts of as many as _____ years.

10

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

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

In Arizona, when a public report is issued on a proposed subdivision, how long does a developer have to provide a copy to all reservation holders?

15 calendar days

The Jacobson Corporation owns and operates an Arizona retail grocery store. What assessment ratio will the county use to calculate Jacobson's property taxes?

25%

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

45 Days

Allister is having a bit of a financial crisis. His rent is due on the third of the month, and it is already the fifth. His landlord sent a Notice to Pay or Quit, informing him to either pay the rent or move out. How long after Allister receives the notice must his landlord give him to remedy the late rent?

5 Days

How long does a tenant have to remedy the situation if issued a Notice of Noncompliance Materially Affecting Health and Safety?

5 Days

Insurance claims might not appear on a CLUE report for a property if the claims were made more than ______ years ago.

7

Related to title insurance, what is "subrogation"?

A covered party grants permission to the title company to pursue the party who caused a claim or loss.

When Shauna looked at the legal description of the property she was interested in purchasing, she read the following: "Beginning at the corner of State Route 61 and Hallowell Road, north for 314 feet, then southwest for 193 feet." In this description, what does "north for 314 feet" represent?

A mete

Robin has great credit and was able to secure a loan for her ocean-side dream home. Her 30-year, fixed-rate loan is for an amount that's above conventional loan limits. What type of loan does Robin have?

A non-conforming loan

The American National Standard Institute calculates a home's livable square footage or finished area to include which one of the following areas?

An enclosed area in a house that's suitable for year-round use

Ray purchased a new home and soon discovered an issue with one of the windows. He filed a claim with the warranty provider, but it was denied. After mediation, the issue still remains unresolved. What is the most common next step?

Arbitration

When must an agent disclose an agency relationship to an unrepresented transaction party?

At first substantive contact

When must lenders deliver the Closing Disclosure form to buyers?

At least 3 days before closing

As an Arizona licensee, what happens to you if a consumer is paid a claim on your behalf from the real estate recovery fund?

Automatic Termination

Which of the following is an action borrowers take to temporarily lower the interest rate on their mortgage loan?

Buydown

The Federal Housing Administration funds its mortgage insurance program

By charging borrowers a mortgage insurance premium

The _______ category of appraiser licensure requires a minimum of 1,500 hours of applicable experience.

Certified residential real property appraiser

Which party is responsible for performing a title examination prior to closing?

Closing agent

Which agency administers the Interstate Land Sales Full Disclosure Act

Consumer Financial Protection Bureau

Which of these should a buyer be prepared for with a short sale?

Existing liens that the buyer will be responsible for clearing

Which banking-related entity shares similarities with the purpose and function of the NCUA?

FDIC

Which entity services rural development loans?

FSA

Conventional loans may be conforming or nonconforming, depending on whether they meet ______ guidelines.

Fannie Mae and Freddie Mac

Which type of an estate doesn't end automatically when the stated event or condition occurs?

Fee simple subject to a condition subsequent

After purchasing a property, what can Jeremiah do to clear a possible future claim on the property's title?

File a suit to quiet title.

In which of these situations would the property most likely be conveyed with a trustee's deed?

Foreclosure action

Jenner purchased his first home, to which he'll have access forever, as far as he knows. Jenner owns a(n) ______.

Freehold estate

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

After owning a tattoo parlor for 12 years, Gilbert sold it. Gilbert's accountant calculated a $46,000 capital gain. Which of these statements is true?

Gilbert will pay tax on the gain at the long-term capital gains rate.

Fred is an agricultural lender who helps the ranchers and farmers in his community by providing credit for purchasing land, making repairs to their buildings, and improving their agricultural property. He's able to do this in part because of the ______ offered by the USDA Farm Service Agency.

Guaranteed loans

Prior to the _______, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing.

Housing and Community Development Act of 1974

Under which type of ownership arrangement can buyers purchase condominiums?

In severalty, in joint tenancy, in tenants in common, or tenants by the entirety

Sue is the winning bidder at an Arizona sheriff's sale. When she pays the sheriff, she receives a certificate of sale. Why?

It serves as proof of ownership until the redemption period is over.

Which of the following is a characteristic of the primary mortgage market?

It works directly with borrowers to fund loans.

Which of the following statements accurately describes the written lease requirements in Arizona?

Lease agreements don't have to be written.

A lender requests an appraisal of a property under foreclosure. What type of value is the lender most likely to be interested in?

Liquidation value

Life insurance companies are more concerned with long-term stability of investments than they are ___________.

Liquidity

What steps must a lien-holder take to perfect their mechanic's lien in Arizona?

Make copies of the lien claim, give one to the county recorder, give the other to the building's owner

In the equation NOI ÷ R = V, "V" equals

Market value

Which person or entity works with many different lenders to find the best loan for the customer?

Mortgage Broker

What is it called when chemicals used in the manufacture of carpet and other manufacturing materials are released into the air?

Off-gassing

On what type of listing (or listings) may a net listing be used in states where they are legal?

Open, exclusive agency, or exclusive right-to-sell listings

In what type of life estate does property ownership return to the original owner when the life estate holder dies?

Ordinary with reversion

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 II

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?

Prescriptive easement

Hal and Sara own a 212-acre farm. Their property is landlocked, but they have permitted water rights to use the stream located six miles away for irrigation purposes. What kind of water rights do they hold?

Prior appropriation

What type of IRS deduction can be taken for a vacation home?

Property Tax

What are the three primary acts that impact mortgage loan disclosure?

RESPA, TILA, and Dodd-Frank

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

Whether borrowers use a formal (shorter-term or bi-weekly mortgage) or an informal (making periodic additional principal payments) payment plan, they can significantly reduce the total amount paid back to the lender by taking which of the following actions?

Reducing the principal balance on the loan as quickly as possible

What information does Schedule B-1 of a title commitment provide?

Requirements that must met before a title policy will be issued

The EPA has special requirements for contractors performing lead abatement or remodeling in "target" dwellings. These requirements relate to what?

Safety precautions to protect occupants and workers from lead dust

Which of the following is a characteristic of a cooperative?

Share of mortgage interest and real estate taxes are deductible on personal income tax returns.

The two real estate firms in one small town, Vineyard Realty and Homestead Homes, agree to charge the same commission rate to avoid the possibility of clients selecting a firm based simply on price. What specific federal legislation prohibits this?

Sherman Antitrust Act

Tom and Jim are neighbors. Jim wants to buy Tom's rental property. In the contract they sign, Jim is identified only as "the neighbor." Which statute or contract element does this violate?

Statue of Frauds

The economic principle of ______ says that when there are two houses in the same neighborhood with the same size, appeal, and utility, the lower-priced one will tend to sell first.

Substitution

Which of the following describes property taxes?

Taxes that are raised and spent locally to finance public services

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

Telephone Consumer Protection Act

Which form of real property ownership requires five unities to create and gives owners the right of survivorship, but doesn't allow owners the right to sell the fractional interest owned?

Tenancy by the entirety

The signature lines on the multi-state Fannie Mae promissory note are set up for ______ to sign.

The Borrower

Who is ultimately responsible for the actions of an Arizona brokerage's licensed employees?

The Employing Broker

Which of the following states that, in certain cases, oral evidence can be used to support or complete an otherwise incomplete or ambiguous contract?

The Parole Evidence Rule

In a land contract, which party finances the purchase of the property?

The Seller

Abraham's four-bedroom home in a suburban neighborhood was sold at a foreclosure sale. There were two junior lien holders whose liens against his property were extinguished with the foreclosure sale. What may happen in this situation?

The junior lien holders can sue Abraham for the debt he owes based on the promissory notes he signed.

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.

Accrued expenses are prorated items that are paid at closing by whom?

The seller

What happens in an installment sales contract if the buyer is unable to make payments?

The seller can keep all of the proceeds received up until that point and repossess the property.

When looking at a rectangular government survey system map, where would Section 36 be located?

The southeastern-most section of the township

Sheila owns a timeshare that gives her ownership in the property for a certain number of weeks per year in perpetuity. What type of timeshare is this?

Timeshare estate

A jewelry store is relocating from a mall to a free-standing building and is pulling all of the display cases out of the storefront. These cases belong to the jewelry store because they are ______.

Trade fixtures

Which of these is the best description of subsidence?

Withdrawing groundwater to the point that the earth's surface sinks