Salesperson Final

A triangular lot is 350' along the street. It's 425' in depth on the side that is perpendicular to the street. If the broker sold the lot for $1.50 per square foot and his commission rate was 9%, what was the amount of the commission earned? $18,423.17 $13,387.50 $13,387.50 $10,040.62

$10,040.62

Flood Insurance for John's house this year was $1,500/year and the premium was due in one lump sum the 1st of May. John is selling his house with escrow closing August 10th. Lucky for the buyer that they can assume John's Flood Insurance. How will the prorations show on the closing document? $1083 Debit Buyer; $417 Credit Seller $1087 Credit Buyer; $413 Debit Seller $1087 Debit Buyer; $413 Credit Seller $1083 Credit buyer; $417 Debit Seller

$1087 Debit Buyer; $413 Credit Seller Bank'er's Month. $1,500/360 = $4.166/day. Seller: 3 months x 30 = 90 + 9 = 99 days x $4.1666 = $413 Credit. Buyer: 8 months x 30 = 240 + 21 = 261 x $4.1666 = $1,087 Debit.

The W1/2 of the NW1/4 of the NW1/4 of the SE1/4 of the SW1/4 of a section is to be paved for parking of a cost of $2.25 per square foot. The total paving cost would be: $122,512.50 $490,050 $147,015 $115,600

$122,512.50 1.25 Acres x 43,560 x 2.25 = $122,512.50

Clancey and Rodney are considering buying an apartment building. It has 24 units that rent for $650 each. The building's vacancy factor runs at about 4%. Cash from laundry = $2,890. Fixed expenses: $12,575. Operating Expenses: $13,583 Reserves: $3,400. What is the cash flow (NOI)? $153,044 NOI $149,890 NOI $156,131 NOI $154,879 NOI

$153,044 NOI This is the correct way to do the problem: 24 x 650 = $15,600 x 12 = $187,200 $187,200 x .96 = $179,712 $179,712 + $2,890 = $182,602 (Effective Gross Income) -$12,575- $13,583- $3,400 = $153,044 (NOI)

A property has a net operating income of $27,000/year, and 8.5% is an approximate cap rate. If the value of the land is $135,000, how much of the value is attributable to the building? $179,060 $185,000 $182,647 $716,800

$182,647 Income / cap rate = total value - land value = value of building

Donald purchases a new car in 2009 and pays $34,000 for it. He intends to sell it in 2016 for $10,000. What is the annual depreciation Donald can use and what is the book value at the end of the ownership? $3,000, $10,000 $3,429, $24,000 $3,000, $24,000 $3,429, $10,000

$3,000, $10,000 DOUBLE CHECK Cost - Salvage Value / Years = annual depreciation. Book value is the value at the end of the ownership

Kelly wants to make at least $100,000 on the sale of her house. She has a loan on it for $425,000 and expects to pay 7% in commissions and figures that she'll have at least 2% in closing costs. At what minimum should she list her house? $468,000 $467,000 $456,000 $466,000

$468,000 NOTE $467,000 is supposedly wrong... $425,000 / [100-.09] = $467,032.97 Check your work: $467,032.97 - $42,032.97 = $425,000.

Under the ADA what is the minimum amount for the first violation? $15,000 $25,000 $50,000 $75,000

$50,000 ADA, this adjustment increases the maximum civil penalty for a first violation under title III from $55,000 to $75,000; for a subsequent violation the new maximum is $150,000. The new maximums apply only to violations occurring on or after April 28, 2014.

The seller netted $576,000 from the sale of his property. He paid $2,800 in closing costs and a 6.5% commission. What did the house sell for? $619,038 $613,048 $616,422 $618,422

$619,038 T: $576,000 + $2,800 = $578,800 / [100% - 6.5% = 93.5%] = $619,038

Lora started her year with her broker every year with this commission schedule: 60% of the first $40,000 commissions 70% of the next $60,000 commissions 80% of the next $50,000 commissions 90% of anything over $150,000 in commissions If Lora sold House A for a $12,000 commission House B for a $35,000 commission House C for a $25,000 commission House D for a $15,000 commission House E for a $28,000 commission How much commission had Lora collected by the end of the year, and what was her "effective" commission? $78,000 & 68% $78,000 & 80% $115,000 & 68% $115,000 & 80%

$78,000 & 68% Add up Ginny's commissions: $115 $40,000 x .60 = $24,000 $60,000 x .70 = $42,000 $15,000 x .80 = $12,000 for a total of $78,000 The effective commission rate is: 68%

The rectangular survey system specifies locations by using a rectangular coordinate system, hence, the name, that consists of principal meridians that run north and south and identifiable by longitude, and base lines that run east and west, identifiable by latitude. Principal meridians and base lines partition the land into quadrangles, which are squares of land with each side measuring ___ miles. These quadrangles are further subdivided in 16 townships. 12 16 24 36

24 Quadrangles 24 mi x 24 mi 576 sq mi 358,640 acres

Exclusions from the Arizona Residential Landlord Tenant Act include 3 of the following. Which one is not an exclusion? Vacation Rentals Short term rentals less than 30 days A 30 day rental Owner of a proprietary lease

A 30 day rental ARS 33-1308. A proprietary lease is part of cooperative ownership. In Arizona, as of Jan 1, 2017 any rental period 30 days or more is covered by the ARLTA. A rental less than 30 days is now a vacation rental and falls under transient occupancy statutes

License renewal CE hour categories are the same for licensees; but, designated brokers and associate brokers who have management duties must take additional hours. Three of these statements are accurate. Which statement is inaccurate? The Salesperson and Broker basic categories are: Agency, Commissioner's Standards, Contract, Disclosure, Fair Housing, Legal Issues, and General In addition to the basic categories, the Broker has to take 3 Broker Management Clinic classes for a total of 30 hours A Broker has to take the 6 3-hr mandatory categories, 2 general, and 3 3-hr Broker Management Clinics A salesperson candidate must take a 6 hr contract writing course prior to activating their license

A Broker has to take the 6 3-hr mandatory categories, 2 general, and 3 3-hr Broker Management Clinics ARS 32-2130(A)

A Collateralized Debt Obligation is also known as: A Mortgage Backed Security A Mortgage held by Fannie Mae A Mortgage held by Freddie Mac A Mortgage backed by Ginnie Mae

A Mortgage Backed Security CDO stands for Collateralized Debt Obligation and it involves the pooling of debt to reduce risk and raise returns. CDOs have been widely blamed for the 2008 financial crisis, but most people do not know what they are. When a lot of debt (such as home mortgages) is pooled together, bonds can be issued on this debt. The debt is split into different tranches, and each tranche is assigned a different payment priority and interest rate. This process is known as securitization expressed as a mortgage backed security.

All purchase offers must be presented to the seller. Of these 4 statements, which one is inaccurate? Verbal offers must be presented to the seller Offers must be presented to the seller until close of escrow All offers must be presented to seller until expiration or cancellation of the listing agreement A buyer's agent can present an offer directly to a seller

A buyer's agent can present an offer directly to a seller All negotiations must go through the listing agent; but, there is an exception: if the listing agent is not available for 24 hours.

A land contract is a different type of financing instrument. Of the 4 statements, which one is not an accurate statement? Equitable title is the beneficial interest of a person whom equity regards as the real owner but the legal right vests with another A land contract is an installment loan The seller holds the deed until the buyer pays the entire loan A contract for deed is an actual deed

A contract for deed is an actual deed A contract for deed is not really a deed at all. Also known as a "contract of sale," "land sale contract," or "installment sales contract," it's used when a seller finances a property for a buyer. The contract states that the seller will keep title to the property until the buyer pays off the loan.

A subdivision developer gives the county title to streets in a subdivision. The county accepts the streets for maintenance. This transfer of title is known as: A patent deed A dedication A public grant Eminent domain

A dedication Dedication, in property law means donation of land or creation of an easement for public use.

A Range, can be described by 3 of the statements below. Which one does not refer to a Range? A Range is a vertical column of townships in the Public Land Survey System A measure of the distance east or west from a referenced principal meridian, in units of six miles. A measure of the distance north or south from a referenced baseline, in units of six miles A Range is part of the Public Land Survey System

A measure of the distance east or west from a referenced principal meridian, in units of six miles. Township lines run parallel to the baseline (east-west), while range lines are true meridians and thus run north-south

Three of these are true of a section and one is false. A mile is 1760 yards A mile is 5820 feet A section is 1 sq mile A section is 1/36 of a Township

A mile is 5820 feet Each township is subdivided into 36 sections of 1 mile on a side

Of the 4 items below, 3 are barriers to the formation of a contract. Which one is not a barrier to the formation of a contract? Death or incapacity of the offeror Expiration of the offer Ambiguity relative to terms A minor acting as a principle

A minor acting as a principle https://ogc.asu.edu/contracts/contracts-background-definition Home Information Services Products For Attorneys Login Help About Privacy Policy USLegal LEGAL HELP Contract by a Minor With some exceptions, a contract made by a minor is voidable. The minor, in other words, may avoid the legal liability under a contract. Upon reaching the age of majority, a minor may affirm or ratify the contract and therefore make it contractually binding on him. Any expression of the minor's intention to avoid the contract will accomplish avoidance. A minor can only avoid a contract during his minority status and only for a reasonable time after he reaches the age of majority. After a reasonable period of time, the contract is deemed to be ratified and cannot be avoided.

Under the 26th amendment of the Arizona Constitution, real estate licensees may write documents incidental to a real estate transaction. Four of these statements are accurate. Which one is not accurate? A licensee may write any and all documents as part of an offer for a buyer client A seller's agent may fill out the seller property disclosure for the seller An Arizona licensee may write an an offer that includes a land contract An Arizona licensee may write a quit claim for a client during the transaction

A seller's agent may fill out the seller property disclosure for the seller Usually the escrow agent would write a quit claim during the transaction, but the licensee has the legal authority of the State to do so. The seller property disclosure should always be filled out by the seller. If the agent fills out the disclosure info, the licensee will probably take on any liability for anything inaccurate or omitted

Arizona's 26th Amendment to the State Constitution gives real estate agents the legal right to do certain things. Three of these are true and one is false. Indicate the false statement. AZ licensees can draft a quit claim deed for a neighbor AZ licensees can draft an Agreement for Sale incidental to the transaction AZ licensees can write up a bill of sale for a client in the transaction AZ licensees can draft leases for landlords and tenants

AZ licensees can draft a quit claim deed for a neighbor Article XXVI of the Arizona Constitution is entitled Right of Licensed Real Estate Brokers and Salesmen to Prepare Instruments Incident to Property Transactions. It has only one section.[1] Section 1 Text of Section 1: Powers of Real Estate Broker or Salesman "Any person holding a valid license as a real estate broker or a real estate salesman regularly issued by the Arizona State Real Estate Department when acting in such capacity as broker or salesman for the parties, or agent for one of the parties to a sale, exchange, or trade, or the renting and leasing of property, shall have the right to draft or fill out and complete, without charge, any and all instruments incident thereto including, but not limited to, preliminary purchase agreements and earnest money receipts, deeds, mortgages, leases, assignments, releases, contracts for sale of realty, and bills of sale.[1][2] " Welcome to AZ.

Which of the loans listed below would usually be a "blanket loan"? Acquisition & Development Loan Construction Loan Bridge Loan Take-Out Loan

Acquisition & Development Loan LOOK UP TO MAKE SURE Most Acquisition and Development Loans for Subdividers come through Commercial banks who will loan at the prime lending rate plus a certain number of points above prime. Or a loan may be based on the LIBOR index. This type of loan is usually in the form of a blanket loan in order for the developer to remove individual lots from the loan when sold.

A blanket loan can also be called a ________________. The rates are determined by _____________ plus or based on _____________. Acquisition & Development, prime, LIBOR Bridge, percentage, Treasury Notes A&D, fixed rate, LIBOR Commercial, prime, LIBOR

Acquisition & Development, prime, LIBOR An acquisition and development loan (A&D loan) is a loan where a part of the proceeds are used to buy the property. The total project cost would include the cost of the land, the hard costs for the horizontal improvements, the soft costs (including an interest reserve and sales commissions) and a contingency reserve.

If Arsenic is found in the well water to be above EPA requirements, three of these statements are accurate. Which one is not? Add chlorine to the water Add hydrogen peroxide Add ozone Add salt

Add salt https://www.epa.gov/dwreginfo/chemical-contaminant-rules Remedies: There are typically two varieties, or species, of arsenic in water: "arsenic 3" and "arsenic 5." This is significant because "arsenic 3" is very difficult to remove from water and must be changed or "oxidized" to "arsenic 5" before it can be removed. A laboratory can determine how much of each kind of arsenic is in your water, with a method called "speciation." Speciation will add additional cost to the analysis. Ask the laboratory what they require for this process as it may require additional samples. See MassDEP's Certified Laboratories That Test for Arsenic Speciation web page. Oxidants that can convert arsenic 3 to 5 include: liquid chlorine (bleach), hydrogen peroxide, and ozone. Chlorine is the most readily available oxidant for home water treatment.

Arizona Subdivision Statutes are specific and the ADRE, along with the Counties, hold developers and subdividers to a very high standard. Three of these statements are accurate. Which statement is not accurate?? Before the Public Disclosure Report is issued a subdivider or developer may accept a reservation The form the subdivider or developer uses for a lot reservation prior to the issuance of the Public Disclosure Report must be approved by the ADRE After receipt of the Public Disclosure Report, the prospective buyer has and the seller have 15 business days to enter into a contract Within 5 business days, after the lot reservation has been terminated by the buyer, the seller shall refund the lot reservation monies and any interest due

After receipt of the Public Disclosure Report, the prospective buyer has and the seller have 15 business days to enter into a contract ARS 32-2181.03(B)4. 7 business days to enter into the contract after the buyer has been given a copy of the public disclosure report and the purchase agreement.

During the term of a listing agreement, three of these things are part of the licensing laws. Which one is NOT a requirement? Shall promptly submit all offers to purchase to seller If an offer on the property, with seller's permission, disclose the offer to other agents Agent of the seller should submit all offers until closing Agent may not submit offers to the seller after the listing expires

Agent may not submit offers to the seller after the listing expires R4-28-802. Yes. the agent may submit offers after the listing expires.

The buyer is purchasing a home with an FHA loan and with Mortgage Insurance Premium. During the inspection period, the home inspector and the appraiser call for a termite inspection. The termite inspector finds termites. Three of these statements are true and one is not. Which is the false statement? All properties are subject to termite inspections under FHA Any waiver of conditions by the underwriter has to be addressed and recorded, which can impact the value of the appraisal Any damage caused by the wood-destroying insects must be fixed. For active termite infestations, properties must be treated by a licensed pest control company and verified prior to being insured.

All properties are subject to termite inspections under FHA Not all FHA properties require a termite inspection...see the FHA Termite guidelines: http://homeguides.sfgate.com/fha-termite-guidelines-2467.html

What is the difference between an easement in gross and easement appurtenant? An easement in gross does not pass automatically and easement appurtenant runs with the land An easement in gross runs with the land and easement appurtenant does not pass automatically easement in gross is like an easement of necessity and an An easement appurtenant is like an encroachment An easement appurtenant is more common than an easement in gross

An easement in gross does not pass automatically and easement appurtenant runs with the land An easement in gross is 1) is attached to a person, not a property 2) runs with the land 3) is always a negative easement 4) Must have a definite termination date An appurtenant easement is a right to use ADJOINING property that transfers with the land.

If an complaint is filed against a licensee, three of these statements are accurate. Which one is inaccurate? Upon receiving the licensees explanation, the case can be closed without action A Letter of Concern can be put in the licensee's file if the violation is technical or minor An investigation of the entire matter may end up in a Consent Order, which can be appealed The entire matter, due to its severe nature and the ADRE wanting suspension or revocation, may be referred to the Attorney General's Office

An investigation of the entire matter may end up in a Consent Order, which can be appealed http://www.azre.gov/Inv/InvFaqs.aspx#FAQ6 A Consent Order is by definition an agreement between the ADRE and the licensee as to the violations and the punishment.

Real estate licensees are using unlicensed assistants to help with paperwork, picture taking, setting up appointments, etc. Three of these statements are accurate about unlicensed assistants. Which statement is inaccurate? An unlicensed assistant can let in a home inspector for the purpose of doing a home inspection An unlicensed assistant can set up showing appointments for the licensee An unlicensed assistant can assist a licensee at an Open House An unlicensed assistant can only take exterior pictures of a property unless with a licensee with him/her

An unlicensed assistant can let in a home inspector for the purpose of doing a home inspection http://www.azre.gov/LawBook/Documents/SPS_Documents/SPS_2005.04_Unlicensed_Assistants.pdf If an unlicensed person puts a key in the lock, there had better be a licensed agent with the unlicensed assistant.

Carl and Jason were leasing a property at $2,000/month, when the landlord put the property on the market. A contract came in, was accepted, and the escrow company was instructed to prorate the lease and transfer the $3,000 Security Deposit to the new owner, as of September 19S, Kate. Which of these answers describes the prorations and monetary transfers? Buyer debit: $3800; Seller credit $1200 Buyer credit: $3800; Seller debit $1200 Buyer debit: $3733; Seller credit $1267 Buyer credit: $3733; Seller debit $1267

Buyer debit: $3800; Seller credit $1200 $2000/30days = $66.666per day. Seller = 18 days; Buyer = 12 days Credit to seller; Debit to buyer Don't forget to include the Security Deposit

An Exclusive Agency agreement between Paul and Sally Superseller must have all of the following, except for ONE, in order to collect a commission in Arizona under ARS 32-2151.02: Start and Stop Date Signature of the Buyer and Broker Cancellation Clause Commission Spelled Out

Cancellation Clause While a broker may choose to put a cancellation clause into an agreement, it is not a requirement under the Statute

Three of the following words or phrases describe a beneficial deed. ONE does NOT. Interest in real property to be conveyed to people or entities on the owner's death Carries warranties of clear title An estate in expectancy Conveyance does not take effect until the death of the owner

Carries warranties of clear title Beneficiary Deed carries no warranties. If there is a mortgage, that conveys. If liens against the property, they convey.

Cathy forgot to notify the ADRE of her recent DUI conviction. Which statement is NOT true? Cathy should have notified the ADRE within 10 calendar days Cathy is subject to disciplinary action Cathy must include court records Cathy will have to go through fingerprinting again for a clearance card update

Cathy will have to go through fingerprinting again for a clearance card update http://www.re.state.az.us/Bulletins/Bulletin_08.15.pdf page 9 It is possible that the ADRE will require going through fingerprinting again to determine if that is all there is since the last fingerprinting.

Mark wanted to make an offer on a property which Christine had showed him. Christine wrote it up for him and emailed the offer to Justin, the listing agent with Top Ten Realty. The time for acceptance on the offer was 72 hours. Christine texted Jason to let him know she had emailed him the offer. No response. 24 hours passes with no response by email, phone, or text from Jason. Three of the statements below are accurate statements about this situation. Which one is NOT true? Christine can call the seller directly and present the offer with seller's written consent Christine has presented the offer in legally acceptable ways Christine must first call Jason's broker before she can contact the seller Christine must keep Mark attuned to what is happening

Christine must first call Jason's broker before she can contact the seller A.A.C. R4-28-1102, states: "[e]xcept for owner listed properties, negotiations shall be conducted exclusively through the principal's broker or the broker's representative unless: 1. [t]he principal waives this requirement in writing, and 2. [n]o licensed representative of the broker is available for 24 hours"

Under federal fair housing laws, it is legal to prohibit all but one of the following: Comfort cat Dog Smoking marijuana on the property Drug user

Comfort cat Service animals and comfort critters are allowed if there is a medical reason/purpose

All of the following are true about a township except for one of the following: Contains 640 Acres Is 6 miles square Has a range line and a township line Contains 36 sections

Contains 640 Acres The PLSS typically divides land into 6-mile-square townships, which is the level of information included in the National Atlas. Townships are subdivided into 36 one-mile- square sections.

Arizona's mechanic's lien is a very powerful statute which may come into play at the time of selling a property. Three of these statements are true. Which one is FALSE? Contactor must file a 20-Day Preliminary Notice within 20 days of delivering labor Contractor must file a Notice of Completion within 120 days of completion of work Contractor can foreclose so long as he/she files a Lawsuit to Foreclose with a year of the filing of the Mechanics Lien at the time of completion The General Contractor, surveyor, subcontractors may file a mechanics lien

Contractor can foreclose so long as he/she files a Lawsuit to Foreclose with a year of the filing of the Mechanics Lien at the time of completion https://www.nationallienlaw.com/wp-content/uploads/2013/02/AZ-Lien-Law-Summary-2013.pdf a) Preliminary 20- Day Notice; b) Mechanic's Lien; and c) lawsuit to foreclose the mechanic's lien.

Brown v Board of Education did what? Established "separate but equal" in schools Established minority quotas in schools Declared school segregation unconstitutional Medical school admission programs that allow for positions based on race are unconstitutional

Declared school segregation unconstitutional We began "bussing" ... We began to integrate our schools

Richard and Jane live on 3 acres in Cornville and are having trouble paying their loan. Soon they get a notice of default and then the sale. Deficiency judgment or no? Deficience Judgment, yes Deficiency Judgment, Not on this property Deficiency Judgment, maybe Deficiency Judgment, Never

Deficience Judgment, yes the property is 2.5 acres or less. the property is a single one-family or a single two-family dwelling, and. the mortgage/deed of trust being foreclosed was a purchase-money loan (it was used to pay the purchase price of the property.) (Ariz. Rev. Stat.

What 2 issues were dealt with in the Lerner v. DMB case? The case is precedent-setting for real estate. Dual Agency and Stigmatized Property Disclosure Dual Agency and Confidentiality Stigmatized Property and Breach of Fiduciary Confidentiality and Stigmatized Property Disclosure

Dual Agency and Stigmatized Property Disclosure ¶ 41 Consistent with general agency principles, the dual representation agreement the Lerners signed with DMB explicitly provides that DMB's conflicting duties to the Lerners and the Curriers "do[ ] not relieve [DMB] of any legal obligation to disclose all known facts which materially and adversely affect the consideration to be paid." But the same agreement also provides that the "parties understand and consent ․ [that] Pursuant to A.R.S. § 32-2156, [DMB][is] not obligated to disclose that the Subject Property is or has been ․ located in the vicinity of a sex offender." ¶ 42 Assuming, therefore, that DMB otherwise would have had a duty to the Lerners to disclose that a sex offender lived next door to the home they were negotiating to buy, the Lerners expressly agreed that DMB had no obligation to make that disclosure. The Lerners do not argue that the express limitation of duties to which they agreed was hidden in the document or that they could not understand it. Nor do they allege DMB made any misrepresentation to them concerning sex offenders or the extent of the broker's obligations under the dual representation agreement.

Carol uses her facebook page for personal and for business, her twitter account for both, her Instagram account for both, and her website, mostly for business. What are the Arizona advertising rules as they pertain to the Internet? One of these is inaccurate - which one? The employing broker's name is required on the Facebook page The employing broker's name is required on every page of the website Employing broker's name must be on text messages Flyers must have the employing broker's name on the top or the bottom of the flyer

Employing broker's name must be on text messages • The employing broker's name must be included in all advertisements, including classified ads, real estate advertising guides, and other magazine ads. K. Michelle Lind/Commissioner Lowe 9-22-14 • In advertising flyers, the employing broker's name may be located on either the top or the bottom of the flyer however the employing broker's name must be clearly legible. • On any other promotional material the employing broker's name must be on the front page or front of the object. • The employing broker's name must be visible on the front page of the website and each subsequent page of the website, without the necessity of scrolling down, regardless of the screen size of the computer. • When advertising real property on social media, such as Facebook, the name of the employing broker must be stated. When advertising real property in "thumbnails", text messages, "tweets", etc., where stating the name of the employing broker firm is not practical, the advertising information being linked to must include the name of the employing broker. • With team advertising it must be clear that the team is a part of the employing brokerage. For example, placing "The (Team Name) Team" at the top of the page in large letters with a much smaller brokerage symbol somewhere below is not sufficient.

Possession occurs when? 3 of these are accurate statements. Which one is not a situation of possession? When keys ar given to a tenant Vacating the property and giving keys back to landlord Writ of Restitution Eviction

Eviction Eviction is the removal of the tenant. Writ of Restitution is the landlord getting possession of the property legally from the Court

In which of these examples might you be guilty of violating the Fair Housing Act? Failing to contact a prospective tenant after accepting their application. Landlord agrees to put a ramp over the 2 steps in the front entrance and to modify the bathrooms of the master bath so long as the tenant pays the costs Showing a Jewish couple properties in an area of the city near the Synagog(s) along with a couple of properties near the light rail system Taking the application from the couple with children, running the credit report, but giving the apartment to a couple with a higher credit score

Failing to contact a prospective tenant after accepting their application. It may be perceived that an act of discrimination occurred because there was no follow-up

2 bathrooms in a 4 bedroom house would be considered one of these: Physical obsolescence Functional obsolescence Locational obsolescence Economic obsolescence

Functional obsolescence Functional obsolescence: The loss of utility and hence value; e.g., poor design, unacceptable style, etc.

George was the "team leader" of a very successful residential real estate team with Hot Properties Realty. George had 2 "buyer agents", 1 unlicensed listing assistant, and 2 licensed listing agents. Three of these statements are accurate. Which statement is not accurate? George may list his unlicensed listing assistant as a member of the team George must be paid by the employing broker George's team must be paid by the employing broker George's unlicensed listing assistant must be supervised by the designated broker

George may list his unlicensed listing assistant as a member of the team http://www.re.state.az.us/bulletins/Bulletin_05_15.pdf

The Arizona Department of Real Estate is responsible for the licensing of 3 of these entities, but not the 4th. Which is the ADRE not responsible to license? Membership Campgrounds Timeshare salespeople Cemetary salespeople HOA Property Managment personnel

HOA Property Managment personnel HOA Property Managers are not required to be licensed in Arizona. http://www.flagstaffbusinessnews.com/do-hoa-managers-have-to-hold-a-real-estate-license/

Three of these statements are true and one is not. Tenant with a doctor ordered pet cannot be charged a pet deposit Landlord must make reasonable accommodations for a service animal and the tenant HUD is required to investigate a discrimination complaint within 90 days An aggrieved person has 2 years to file a discrimination suit in Court

HUD is required to investigate a discrimination complaint within 90 days HUD must investigate within 100 days

The Arizona Department of Real Estate is responsible for all but one of these: Real estate salespersons and brokers Membership campgrounds To have on hand military and airport maps Homeowner associations

Homeowner associations Recently Governor Ducey consolidated some departments and the Department of Real Estate was given the charge of setting up dispute resolution for a member of an HOA and the Association. The ADRE does not regulate HOAS

The property tax lien is superior to any other lien on the property, including a ________________. It is a voluntary lien. Mechanics Lien Deed of Trust Judgment IRS Tax Lien

IRS Tax Lien The property tax lien is superior to any other lien on the property, including a first mortgage lien. It is a voluntary lien. The tax lien runs with the property... DOT and Mechanics Lien will always come after. 1. Tax Lien 2. DOT (these will all depend upon the date of recordation) 3. Mechanics Lien 4. Judgment

When figuring prorations at closing, three of these statements are accurate. Which one is not accurate? If something is paid in arrears, the Debit is to the Seller and the Credit is to the Buyer If something is paid in arrears, the Credit is to the Seller and the Debit is to the Buyer A banker's month is 30 days The buyer owns the day of closing in AZ

If something is paid in arrears, the Credit is to the Seller and the Debit is to the Buyer Remember the clip art: If in Advance: Seller Credit Buyer Debit If in Arrears: Seller Debit Buyer Credit

George lived in a Planned Community of 100 property owners. The association assessments were $250/month. George became ill, fell behind in his HOA fees over a period of 9 months, and was stunned when he received a summons to appear in court. The HOA was foreclosing on his house. 3 of these statements are true. Which one is false? The owner has been delinquent in paying the amounts secured by the lien for a period of one year or the delinquent amount is $1,200 or more, whichever occurs first The HOA or COA can get a lien for penalties, fines, and related fees after the entry of a judgment in a civil suit, but it cannot foreclose that lien If the HOA forecloses, all but the property taxes are wiped out If a junior lienholder forecloses, its foreclosure is subject to the senior lien

If the HOA forecloses, all but the property taxes are wiped out Generally, lien priority is determined by the recording date of the lien. The general rule is first in time, first in priority. (Some liens though, such as property tax liens, have automatic superiority over essentially all prior liens.) Typically, the matter of priority comes up in foreclosure actions because, if a senior lienholder forecloses, it wipes out any junior liens. However, if a junior lienholder forecloses, its foreclosure is subject to the senior lien.

Jan acts as a buyer broker for Charlie and Kate without a buyer broker agreement. They find a house and write a offer at which time one of the forms states that Jan represents Charlie and Kate as a buyer agent. What do you call the type of agency Jan is doing? And, what do we call the signing of the buyer broker disclosure at contract writing? Implied agency; ratification ostensible agency; confirmation accidental agency; ratification designated agency; confirmation

Implied agency; ratification Implied agency and the ratification is when the buyers actually put the relationship into writing

A construction loan is also known as: Interim Loan Take-Out Loan Short Term Loan Bridge Loan

Interim Loan Interim construction loan is a short term loan for the actual construction of a project which ordinarily matures upon completion of the project. Loan chunks by the lender are usually made to the contractor in installments as the project progresses

Ted wanted to rent Candy's single family home for one year. Three of these statements are true. Which one is false? It needs to be a written lease Candy does not need to supply bedbug information Candy can require a security deposit of 1.5 times the monthly rent and a reasonable cleaning fee Candy should have Ted fill out an application and check Ted out

It needs to be a written lease Under the statutes of fraud, the lease need only be in writing if OVER 1 year. It would be prudent for Candy to draw up a lease for Ted to sign in order to spell out all responsibilities

Kyle rents a property from Jeff for 6 months. Kyle breaks the lease and abandons the property after 4 months. When Jeff discovers that Kyle is gone, and has left some "stuff", Jeff does what? One of these statements is incorrect. 3 are true. Indicate the false answer. Jeff files for a forcible detainer Jeff checks with some of the neighbors to see if Kyle has been around Jeff notices Kyle by sending a certified letter to the last known address and by posting on the property door Jeff checks the property interior to summarize the situation

Jeff checks the property interior to summarize the situation Owner/landlord must first notice Kyle before accessing property. Jeff cannot access the property without proper notification regardless of whether or not Jeff thinks Kyle is gone. Procedures to follow ARLTA

Joyce meets Barbara at an Art Festival and they begin a conversation which leads to Joyce letting Barbara know that she's a real estate agent. Barbara is thrilled, and asks Joyce if she would help her find a new home (Joyce is renting currently). Joyce accepts the request and begins to send Barbara listings within Barbara's discussed price range. A week later, Joyce and Barbara go out looking at 7 properties. None of those properties appeal to Barbara and they decide to go out the next weekend. Joyce scours the MLS for Barbara's price range. She notes that 2 potential listing only offer 75% of the commission that her brokerage usually offers as a co-broke. Three of these statements are true. Which one is false? Joyce should show all properties that fit Barbara's parameters Joyce does not have to show any property that does not meet her commission expectation Joyce's fiduciary duty is to work in the best interest of her client If Joyce does not show a property that fits Barbara's parameters, Joyce may be in breach of her fiduciary duties

Joyce does not have to show any property that does not meet her commission expectation The duties of an "agent" are to represent the best interests of their client. Not showing a property that fits a buyer's parameters because the commission is not up to the expectations of the agent might well be considered a breach of fiduciary. Commissions are negotiable. That includes commissions by a buyer and a buyer's agent. Buyer agents should negotiate with their buyers, through a buyer broker agreement, the commission that the agent should receive at the fruition of the transaction.

If an Arizona tenant abandons the rented property, three of these statements are true and one is false. Which one is false? Landlord must use reasonable care and store stuff for 10 days (either on or off the premises) unless has a provision in lease that permits disposal without storage Tenant has right to recover if pays costs to move and store Exempt list of possessions: clothing, tools, apparatus and books and tools of trade, identification, financial, immigration, public assistance, medical. Tenant does not have to pay anything to recover these items. Landlord shall keep adequate records for 6 months and hold excess proceeds if returned as undeliverable. Must forward excess proceeds to the state after 6 months.

Landlord shall keep adequate records for 6 months and hold excess proceeds if returned as undeliverable. Must forward excess proceeds to the state after 6 months. The records must be kept for 12 months.

Rodney was renting a property from the owner who wrote up a lease himself and asked Rodney to sign it. The 4 statements below were in the lease, which one is the only one which is a legal phrase which can be in the lease agreement. Tenant allows landlord access with 24 hours notice Rent: $800/month; Security Deposit: $1800, includes pet fee, redecorating fee, cleaning deposit Tenant forgoes the move-out walk through Landlord will provide the signed lease and keys at move-in

Landlord will provide the signed lease and keys at move-in ARS 33-1321 and access is 48 hours.

If a property is a metes and bounds legal description in an unincorporated area, has a well, has an alternative waste description, all but one of these documents will be received by the buyer during the escrow period. Which one will NOT be received by the buyer? Well transfer notice Waste certification requirement Lead based paint notice Affidavit of Disclosure

Lead based paint notice There is no mention of the property being built earlier than 1978.

The elements of a contract are three of these. Which one is NOT an element of a contract? Offer Acceptance and Delivery Consideration Legal Description

Legal Description While a legal description is part of the proper way to determine the property to be conveyed, it is not what is considered to be an "element" The other 3 are mandatory. Without them you may not have a valid agreement

Lillian is a sales agent for Big Deal Realty. She's the top producer and just hired an unlicensed assistant to help her. Three of these 4 statements are accurate and true. Which statement is inaccurate or false? Lillian's unlicensed assistant may not do a walk-thru for Lillian Lillian's unlicensed assistant may schedule an appraisal for a property Lillian's unlicensed assistant may hold an Open House if she doesn't do anything but pass out flyers Lillian's unlicensed assistant may meet a licensee from another company at a listing in order to let them in.

Lillian's unlicensed assistant may hold an Open House if she doesn't do anything but pass out flyers What activities may an unlicensed assistant in the broker's employ NOT perform? 1. Hold / host an open house without an agent being present. 2. Perform a walk-through inspection. 3. Answer questions relating to a transaction document. 4. Give instructions to inspectors, appraisers or maintenance / repair people, which are part of a licensee's regular duties and have a direct relationship to the (potential) transaction.

The following answers indicate the monetary fines that can be levied by the law for violating ADA. Three of the statements are correct and one is not. Which one is false? First offense of $75,000 Second offense could be $100,000 Maximum offense is $150,000 Maximum offense of $175,000

Maximum offense of $175,000 As of April of 2014 the minimum is $75,000 and the maximum is $150,000.

Within the real estate business, there are lawsuits for different reasons. The most common outcome of a lawsuit against a real estate licensee is: Intentional misrepresentation innocent misrepresentation Negligent misrepresentation Breach of reasonable care

Negligent misrepresentation A licensee owes a fiduciary duty to the client and shall protect and promote the client's interests. The licensee shall also deal fairly with all other parties to a transaction. Obviously, this code section is open to interpretation. However, it is clear that a realtor cannot lie or misconstrue the facts, even to a party that the realtor does not represent. The cause of action for such a claim is generally called negligent misrepresentation or intentional misrepresentation. The difference between these causes of action hinges on the speaker's knowledge of the falsity of the statement. Negligent misrepresentation is by far more common in the real estate arena. Liability for nondisclosure exists when an agent represents the nonexistence of a material fact or when a realtor fails to disclose a fact that he or she knows may justifiably induce the other to act or refrain from acting.

Three of these are benefits of a VA loan, which one is not part of the VA loan offering? No monthly mortgage insurance No down payment required for home purchases up to $417,000 No closing costs can be paid for by the veteran VA limits the amount a veteran can be charged for closing costs

No closing costs can be paid for by the veteran There are reasonable closing costs on VA loans which can be paid for by the seller A negotiated issue.

Every state has laws that regulate how a real estate licensee treat the consumer. The regulations are for the purpose of protecting the consumer. Does Arizona law require that a Seller give a Seller Property Disclosure Statement to the buyer? Yes. The seller must provide a SPDS Yes. The state law requires a SPDS be given to the buyer No. The SPDS is not required by state law No. While the seller mst disclose anything that might influence the price the buyer pays for the property, the SPDS is not mandated

No. While the seller mst disclose anything that might influence the price the buyer pays for the property, the SPDS is not mandated Under common law disclosure principles, a seller of real property must disclose to a buyer any material, adverse fact affecting the value of the real property. Unlike some states, in Arizona a formal SPDS is not required by statute. Note: The seller's SPDS, however, is valuable for disclosure of more than just the material, adverse facts, e.g., the identities of utility providers and any transferable termite warranty

A property owner opened a business on land that had no zoning. Ten years later the land was zoned for residential purposes. The owner is still using the land for his business. The owner's continued use of the business is MOST LIKELY to be allowed because he was granted a(n) exclusionary zoning use permit Non-conforming Use special use permit. Spot Zoning

Non-conforming Use His property would be grandfathered until he sells or makes some major changes...

Finder's Fees can only be paid to certain people. Three of these statements are accurate. Which one is false or inaccurate? A Property Manager may pay a finder's fee to a tenant in the form of credit on their rent Property Manager may give credit as a finder's fee up to 6 times a year Property Manager may credit up to $200 as a finder's fee Property Manager may not give a finder's fee to any other non-licensed person

Property Manager may give credit as a finder's fee up to 6 times a year 5 times a year.

Which one of these would be an executory contract? Purchase agreement in escrow The purchase of a new car for cash An optionee who exercises the option Tenant lease expires

Purchase agreement in escrow A contract is in the executory phase when some future act is to be done, as where an agreement is made to build a house in six months, or it's in escrow and has yet to close.

What law is violated when a seller requires the purchase of a particular title policy? Mortgage Assistance Relief Services Act Sherman AntiTrust Act Real Estate Settlement Protection Act Consumer Financial Protection Bureau

Real Estate Settlement Protection Act Section 9 of RESPA prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance

Fair Housing applies to residential housing and ADA generally applies to commercial. One area applies to both residential and commercial. Which one is it? Reasonable accommodations Familial status Landlord Tenant Act Therapy animal

Reasonable accommodations Therapy animals ae only defined by HUD for Fair Housing. Familial Status if Fair Housing. Landlord Tenant Act is only Fair Housing. Reasonable accommodations are for people with disabilities and that affects both Fair Housing and ADA.

A Sheriff's Deed is associated with all but one of these: Conducted by order of the court Mortgage judgment Redemption period Reinstatement period

Reinstatement period A Deed of Trust has a Trustee sale. The reinstatement period is 90 days. Foreclosure is by statute...non-judicial

If the licensee is found culpable in a real estate issue that requires payout by the ADRE, what is the status of the licensee's license? Inactive suspended terminated revoked

Revoked ARS 32-2153(C)

David's land is in Section 15. His parcel is located in the NW quadrant of the section. Which of these descriptions would be the accurate land description if he has a 5 acre parcel? S1/2, of the NW1/4, of the SE1/4, of the W1/2 of the N1/2 SW1/4 of the NW1/4, of the SE1/4, of the W1/2 of the N1/2 NW1/4 of the NE1/4, of the NE1/4, of the E1/2 of the N1/2 NW1/4, of the NE1/4, of the E1/2 of the S1/2

S1/2, of the NW1/4, of the SE1/4, of the W1/2 of the N1/2 You can eliminate 2 of the answers by remembering you must read the descriptions from right to left. If the property is in the NW quadrant, then the first 2 directions must be in the N and the W.

Which is the ADRE Substantive Policy Statement for Advertising? SPS 2007.18 SPS 2005.14 SPS 2005.10 SPS 2005.04

SPS 2007.18 http://www.azre.gov/LawBook/Documents/SPS_Documents/SPS_2007.18_Real_Estate_Licensee_Advertising.pdf It is recommended you look up each of these SPSs as you will be quizzed on them in future quizzes: http://www.azre.gov/LawBook/SubstantivePolicyStatements.aspx

What is the difference between a "legal name" and a dba? Three statements are accurate. Which statement is inaccurate? Sandy Smith is a sole proprietor in Arizona. Her legal name is Sandra Smith and she has registered her nickname with ADRE as "Sandy". Her company name is Sandy Sells Sedona LLC. Sandra Smith is her "legal" name Sandy Sells Sedona LLC is her dba Sandy can use either her legal name or her dba in advertising dba means "doing business as"

Sandy can use either her legal name or her dba in advertising https://www.sba.gov/starting-business/choose-register-your-business/register-your-business-name Sandy needs to use the dba as the employing broker name.

In Morley v. Pagel, the conclusion of the AZ Court was "Having achieved, by virtue of [Article 26 Section 1 of the Arizona Constitution], the right to prepare any and all instruments incident to the sale of real property, including promissory notes, real estate brokers and salesmen also bear the responsibility and duty of explaining to the persons involved the implications of these documents. Failure to do so may constitute real estate malpractice." Of the following statements, which statement is false or inaccurate? Buyer asks what the ramifications would be if the buyer chose to skip doing an inspection of the property Buyer asks what the difference between the Claimant 39 form for water "use" and the Well Transfer form Seller asks what "as is" means Seller asks the agent to fill out the Homeowner Association addendum

Seller asks the agent to fill out the Homeowner Association addendum The Homeowner Association addendum actually has a place where the seller "certifies" that the seller has filled out the form. In this case, if the agent fills it in for the seller, the agent and the seller might be guilty of misrepresentation.

Sandy is a salesperson for Top Notch Realty. She is working with Robert and Sue who are from California and looking for a Sedona home over the weekend. Among 7 properties shown by Sandy to Robert and Sue, two stand out, but they cannot decide yet. Red Rock Rd is an exclusive authorization and right to sell listing, while Boulder Blvd. is an Exclusive listing. Sandy does not have a buyer broker agreement with Robert and Sue. Her broker does not require it. After lunch, Robert and Sue tell Sandy they want to drive by both of them again. Sandy tells them that she'll head back to the office to start the paperwork...take their time. Robert and Sue drive by Red Rock Rd first and really like the neighborhood. Price is a bit higher than they want to spend. Then they drive up to Boulder Blvd, where they see the seller in the driveway. He recognizes them and asks if they want to come in and look around some some more. He'll answer any questions they have. Thrilled, they take him up on his offer. After about 1/2 hour of discussion, the seller tells Robert and Sue that he would like to make them a special deal on the house. He explains that he can save them $10,000 on the purchase if they will work directly with him. He explains the Exclusive Agency listing to them. They like Sandy, but, to save $10,000, they decide to work directly with the seller. Meanwhile, Sandy sees that over 3 hours have gone by and no word from Robert and sue. She calls, texts, and emails. No response. several days later she sees that Boulder Blvd shows in escrow. She calls the listing agent who tells her that the seller sold it himself. What are Sandy's options? Sue the Buyer Sue the Listing Agent or go through REALTOR mediation Sue the Seller Send Robert and Sue a "Congratulations" card

Send Robert and Sue a "Congratulations" card Working without a buyer broker agreement and showing an exclusive agency listing property is not prudent. Work with a buyer broker agreement.

Plessy v. Ferguson was a famous civil rights case. What was it about? Separate but equal The establishment of quotas Deed Restrictions against certain races Voting rights

Separate but equal https://www.oyez.org/cases/1850-1900/163us537 It took 54 years for the US Supreme Court to overturn Plessy v. Ferguson in Brown v. Board of Education.

Which of the examples below is an example of "novation"? George needs to sublet his condo lease and finds someone to take it on Nancy wants to assign her purchase agreement to another buyer because she has changed her mind, but she's not sure the other buyer can complete the deal Shelly set up an assignment agreement with Cameron to take over her position. The agreement requires the seller to remove Shelly from any liability if the new buyer does not close escrowr Ann lets Jim out of his apartment lease

Shelly set up an assignment agreement with Cameron to take over her position. The agreement requires the seller to remove Shelly from any liability if the new buyer does not close escrowr Novation may be accomplished by a substitution of another for one of the parties to the contract, or substitution of the performance to be made under the contract. The effect of a novation that substitutes one party for another is to bind the substituted party to all the terms of the original contract to the same extent as the original party so that the discharged party may not sue or be sued on the original contract. A novation that substitutes one contract for another destroys the original contract.

Very popular these days are vacation rentals. They are a form of: Tenancy at will Tenancy at sufferance Tenancy for years Freehold estate

Tenancy for years A tenancy for years results when the lease agreement has an expressly stated fixed beginning date and a fixed ending date. It could be for a duration of several years, but does not have to be, it could be for a one months lease, one week lease, or even one day lease.

John's home was foreclosed on last month. There was a tenant on the property at the time of foreclosure What happens to the tenant? Tenant must get 90 days notice to leave Tenant must get 60 days notice to leave Tenant must get 30 days notice to leave Tenant must get notice from landlord that foreclosure is going to take place

Tenant must get notice from landlord that foreclosure is going to take place LOOK UP TO MAKE SURE Although the Act no longer furnishes tenants with a safeguard, Arizona law provides that "[i]f a rental agreement is entered into after the foreclosure action was initiated, the owner shall include written notice of possible foreclosure with the rental agreement with the tenant." A.R.S. §33-1331. Moreover, "[i]f the owner receives a notice of trustee's sale or other notice of foreclosure on the property after a tenant has entered a rental agreement on the property, the owner shall provide the tenant with written notice of the notice of trustee's sale." Id. Accordingly, in the event of foreclosure, Arizona tenants are afforded advance notice so that the tenant may take the necessary steps to make other arrangements.

May a broker pay compensation to a "Team"? Three of these statements are accurate. Which one is not accurate? The designated broker can pay the licensed members of the team The Team Leader should let the broker know the commission splits for the members The Team Leader pays the members of the team Not all team members may receive commission unless they participated in the transaction

The Team Leader pays the members of the team May a broker pay compensation to a real estate team? A broker may pay compensation only to active licensees for the performance of real estate activity. The broker may pay compensation to a through a registered professional corporation (PC) or professional limited liability corporation (PLC or PLLC). (A.R.S. § 32-2155.A). If an unlicensed person is working with the "team", the person is an "employee" and must be paid as an employee

A real estate salesperson lists a property on a website and receives an inquiry immediately from a potential buyer out of state. The buyer wants to make an offer without seeing the property, so the salesperson writes it up. The following statements are true except for one. Which one is not an accurate statement? The buyer will have a rescission period because he didn't see the property before closing the transaction The salesperson must have the informed consent of the buyer and the seller to represent both of them The buyer has the opportunity to cancel the contract during the inspection period The buyer does not have to give consent to limited representation and can ask another agent to write the offer

The buyer will have a rescission period because he didn't see the property before closing the transaction The question does not state that the property falls under the unimproved lot rescission situation. Here, the best way to determine the answer that does not fit is to understand that this is a limited representation situation, the buyer and seller must consent to be represented by the same agent for the firm, and that either a buyer or seller can refuse to agree to limited representation. Those 3 are accurate; hence, the best answer to the question is "...a rescission period because...".

If a mortgagor defaults on their mortgage, three of these statements are true. Which statement is false? A lis pendens is filed and recorded The debt is accelerated, the court gives the mortgagee a judgment and the Trustee Sale is held The Sheriff gives the high bidder a Sheriff's Certificate to be exchanged 6 months later for a Sheriff's Deed if the mortgagor does not redeem the property The period of time before the sale is called the equity of redemption & the time after the sale is the right of redemption

The debt is accelerated, the court gives the mortgagee a judgment and the Trustee Sale is held A court ordered sale is a Sheriff's Sale. In a Deed of Trust, the statutes dictate a process for holding a Trustee Sale.

Molly was looking for a place to rent and stopped at the Rental office of Regal Rentals. She was given an application and noted her cat was a therapy animal. She handed the leasing agent a short note from "her therapist". Three of these statements are good business practices. Which one is not a good business practice? The leasing agent should ask Shannon to fill out an application The leasing agent should ask Shannon to take a reasonable request with medical form and have it filled out by her therapist The leasing agent should ask Molly what the disability is The leasing agent should have established policies and procedures about reasonable accommodations

The leasing agent should ask Molly what the disability is Never ask about the disability if you don't see a disability. It would be a violation of Fair Housing or ADA. That's the reason for using a reasonable accommodation with medical (for therapy animals) or a reasonable accommodation form for any changes to be made to the unit by the tenant.

For an agency relationship to exist... The principal must delegate responsibility to the agent, and the agent must consent to accept that responsibility. There must be a written agreement The agent must subscribe to the REALTOR Code of Ethics The agent and principal must agree in writing to certain terms and conditions: Start and stop, unambiguous language, commission spelled out, and signed by the parties

The principal must delegate responsibility to the agent, and the agent must consent to accept that responsibility. To create an agency, the consent of the agent and the principal is necessary. The principal must intend that the agent act for him or her, the agent must intend to accept the authority and act on it. The intention of the agent and the principal must be either in express terms of the contract or can be inferred from the conduct of the parties.

Exempt sales under the subdivision laws include all but one of these. Which one is NOT exempt under Arizona subdivision laws. The sale or lease in bulk of six or more lots, parcels or fractional interests to one buyer in one transaction. The sale or lease of lots or parcels of one hundred sixty acres or more. The sale or lease of parcels, lots, units or spaces that are zoned and restricted to commercial or industrial uses. The sale of lease of six or more lots, parcels or fractional lots to one buyer

The sale of lease of six or more lots, parcels or fractional lots to one buyer "...in one transaction"... ARS 32-2181.02

It is unlawful for a subdivider to sell any lot in a subdivision unless one of the following occurs: Which statement is false or inaccurate? All proposed or promised subdivision improvements are completed The completion of all proposed or promised subdivision improvements is assured by financial arrangements acceptable to the commissioner. The municipal or county government agrees to prohibit occupancy and the subdivider agrees not to close escrow for lots in the subdivision until all proposed or promised subdivision improvements are completed. The subdivider allocates a prescribed amount of the subdivision for parks and open space

The subdivider allocates a prescribed amount of the subdivision for parks and open space While a county could make this requirement of a subdivider, it is not a requirement of the subdivision statutes

What is NOT an appurtenance? Mineral Rights Trade Fixtures Water Rights Easement

Trade Fixtures Trade fixtures are personal property. Appurtenance: It is a right, privilege or improvement belonging to, and passing with, the land.

Three of these statements are true about Type 2 water rights. Which one is false? Type 2 water rights are grandfathered rights Type 2 water rights are "non-irrigation" rights Type 2 water rights may be leased or sold in total Type 2 water rights apply to those outside of an AMA

Type 2 water rights apply to those outside of an AMA http://www.azwater.gov/AzDWR/WaterManagement/documents/Groundwater_Code.pdf Type 2 rights are the most flexible because they may be sold separately from the land or well. In addition, the owner of a Type 2 right may, with ADWR approval, withdraw groundwater from a new location within the same AMA. It is possible to lease a portion of a Type 2 right, but if the right is sold, it may not be divided; instead, the entire right must be sold.

Which one of these loans is truly "0" down? FHA VA USDA Owner Carry

USDA Unlike conventional loans, there's no down payment required - the loan can even cover closing costs, if the seller doesn't.

What is the process of foreclosure on a Land Contract? Which statement is false? Vendee default and Vendor sends a Notice of Intent to Forfeit Vendor sends Completion of Forfeiture after grace period up and Vendee has not brought loan up to current Vendor does not have to record anything except the Completion of Forfeiture Grace period is determined by the equity of the Vendee

Vendor does not have to record anything except the Completion of Forfeiture If the seller elects to forfeit the purchaser's interest in the property, the seller and the account servicing agent, if one has been appointed, shall record a notice of election to forfeit with the county recorder of the county in which the real property is located. The same is true for the Completion of Forfeiture

Market Value / Annual Gross Income = Gross Rent Multiplier (GRM) Property sold for $750,000 / $110,000 Annual Income = GRM of 6.82 What is the significance of the GRM? Of the 3 answers below, which one is a false statement? Gross Rent Multiplier is the ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, utilities, etc. The Gross Rent Multiplier is gives best information when multiple properties are compared When the multiplier is lower you get more rent for each dollar of value. This should mean a higher rate of return in income. When the multiplier is higher you get more rent for each dollar of value. This should mean a lower rate of return in income.

When the multiplier is higher you get more rent for each dollar of value. This should mean a lower rate of return in income. GRM is only a comparison of gross rents and sales price not how efficient each property is "netting," in terms of income. The capitalization rate (cap rates) allows you to compare what properties "net," at the end of the day relative to the sales price the seller is asking for. The higher the GRM, the longer it will take you to pay off your investment. Relatively speaking you want a lower GRM

The NW1/4 of the NE1/4 of the NE1/4 of the NE1/4 of Section 16 and the SW1/4 of the SE1/4 of the SE1/4 of the SE1/4 of Section 9 are Jordan's latest purchases. He paid $2,300/acre for the land. Are the parcels contiguous and how much did Jordan pay totally for his 2 parcels? No. $11,500 Yes. $11,500 No. $23,000 Yes. $23,000

Yes. $11,500 Each parcel is 2.5 aces and the parcels are contiguous. Contiguous means adjacent.

If a resident of Flagstaff wanted to run a business out of or on their property and they were not in a PUD with specific restrictions, under what laws, ordinances or rules would a resident look? Non-Conforming Uses Zoning Ordinances Variances Police Powers

Zoning Ordinances Variances and non-conforming uses are permits that can be granted if the zoning does not allow it...but, the property owner has to go and request the permit, and have it granted.

Rules for an owner-carry back by a seller (one time in 12 months) include three of these. Which one is not true of the rule? the seller is a natural person, estate or trust the seller did not construct the residence on the property the financing does not result in negative amortization the financing has a fixed rate or does not adjust for the first three years

the financing has a fixed rate or does not adjust for the first three years FIVE YEARS. No balloon or rate adjustment for the first FIVE years.

The owner of a secluded area adjacent to the Atlantic Ocean noticed that people from town walked along the shore in front of his property. The owner learned that the local citizens had been walking along this beach for several years. He went to court to try to stop people from walking along the water's edge in front of his property. The owner is likely to be: unsuccessful because the owner's property extends only to the high-water mark and the public may use the land beyond this point. unsuccessful because the local citizens have been doing this for years and thus have an easement. successful because the owner's property extends to the middle of the water bed successful because the owner can control access to his own property

unsuccessful because the owner's property extends only to the high-water mark and the public may use the land beyond this point. Under the doctrine of littoral rights, an owner whose land borders an ocean would own the property up to the mean high watermark. Any land below this is owned by the government. The homeowner could not block other people from walking along the water?s edge.

Which of these formulas is incorrect? GRM = Value / Gross Income Cap Rate = Net Operating Income / Value List Price = Loan amount + profit / 100% - closing cost % whole = Part x Rate

whole = Part x Rate Little number on top. Big number on the bottom.