AZ License 2
A temporary designated broker can be appointed when a designated broker will be absent. The temporary broker may remain for a maximum of ______.
30 days
There are three sources of Arizona real estate law: the Arizona Administrative Code, the Arizona Revised Statues, and the ______.
Arizona State Constitution
A central element of an antitrust violation is ______.
Conspiracy
Your client Roger is working to get an Adequate Water Supply certificate before he develops a subdivision. Which of the following statements about his situation is true?
He isn't developing an area within an AMA.
The income capitalization approach to appraisal uses ______ as the I in the capitalization formula V = I/R.
Net operating income
Remembering the acronym ______ can help you remember the fiduciary duties an agent owes to a client.
OLD CAR
Once the market study has been conducted, a developer can apply to ________________ for approvals.
State and local agencies
Jeanine has an exclusive right-to-sell agreement with her listing agent, Tera. Which of these statements about Tera's compensation is true?
The exclusive right-to-sell agreement means that, under contractual obligation, the broker will be paid no matter who brings the buyer to the transaction.
Which of the following is true of professional codes of ethics?
They're broad, but they can't possibly cover every ethics-related situation.
Arizona employing brokers are required to establish _____ to supervise and control the activities of their employees and satisfy the state's requirements.
Written policies and procedures
Claudia wanted to build a large-scale toy manufacturing plant in her backyard, but was prevented from doing so by ______.
Zoning regulations
What's the annual interest on a $20,000 loan on which the interest rate is 6.5%?
$1,300
What's the estimated value by cost approach for a property if the site value is $25,000, the new cost of improvements is $100,000, and the total depreciation estimate is $15,000?
$110,000
Sally is in the process of buying a property, and the sale closes on June 15. The seller already paid the water bill for June, which was $46.80. How much does Sally owe to the seller at closing for the prepaid water bill?
$23.40
AZ ROC officers are paid no more than ______ for each day they perform commission business.
$30
If you have an 800-square-foot rectangular building and it sells for $75,000, that equates to ______ per square foot.
$93.75
Steven put down $10,000 toward a property's purchase price, financed the rest, and now has a cash flow of $2,800 after repairs and debt service. What's his ROI?
28%
How many feet are in a mile?
5,280
Which range of credit scores represents subprime borrowers?
580-669
Which range of credit scores do most consumers fall into?
670 to 739
What is the best description of a deed?
A document to transfer ownership/interest in real estate
Vantagestar Ltd. would like to construct a high-end condominium complex. Where will they likely go for financing this project?
A life insurance company
In Arizona, what is a public report?
A report that provides information about the water supply, soil, and other information that subdivision occupants need.
A town passes a zoning ordinance preserving the architectural style of an area and requiring plantings in the parking strips. This is an example of ______.
Aesthetic zoning
Can you recognize which of the following is identity theft?
Alex's credit card number was copied at the gas station and then used to pay for the thief's own gas.
What's the name of the act that requires public accommodation areas to be accessible?
Americans with Disabilities Act
Which of these property managers would require a license to perform property management services in Arizona?
An off-site property manager who manages three commercial properties
According to the FTC privacy rule, a landlord or property manager would have to obtain a tenant's written consent before sharing the tenant's personal information with which of the following?
An unaffiliated third party
Savannah has just been selected by the governor to serve on the Arizona real estate advisory board. She expects to receive money for _____.
Any travel expenses she may have.
Timothy is ready to close on his purchase of Bob and Gene's Phoenix home. Two days before closing, a kitchen fire damages a small portion of the house. Repairs will cost $2,500. The purchase price is $525,000, and the inspection period is, of course, over, since the transaction is ready to close. Which of these is not an option?
Bob and Gene are responsible for the property repairs, and the parties must come to agreement about how to handle the repairs.
For each Arizona branch office that an employing broker opens, a separate ______ must be attained.
Branch office license
At the root of Arizona's Residential Landlord and Tenant Act is the state's desire to keep quality rental housing available to state residents. What's the act's main purpose?
Clarify the rights and obligations of landlords and tenants.
Adjustments to closing costs are prorated as of what date?
Closing date
Rhonda and Jade both consider themselves African-American, although Rhonda has much darker skin and hair than Jade. When Rhonda went to the Valley Falls apartment manager's office to request a rental application, she was told there were no vacancies. Jade went in a day later and received an application. This may be discrimination based on ______.
Color
The _______ retains jurisdiction over all matters regarding unsubdivided land in Arizona law, even if other agencies claim jurisdiction.
Commissioner of the Arizona Department of Real Estate
Eminent domain is the governments' power to take private land for public use. What is it called when the government actually seizes someone's property?
Condemnation
As part of his lease agreement with his landlord, Alex mows the grass around his apartment building each week in return for a small reduction in rent. What is this an example of?
Covenant
Which of the following costs are NOT eligible for disbursement from the Arizona real estate recovery fund?
Damages for pain and suffering
Buyers Tony and Sylvia know the postal address of the property they're purchasing but are wondering about the legal description of the property. Where is the most likely place to find the legal description?
Deed
Homeowner Lynn is underwater on her home loan and is having difficulty making her monthly payments. Which of these options would allow Lynn to avoid foreclosure, even though she'll lose her property and will need lender approval?
Deed in lieu of foreclosure or short sale
If Carol and Doug Shields died intestate, their estate would be conveyed to their heirs through which method of alienation?
Descent
The property management proposal includes information such as ______.
Details about the property manager's qualifications
Which federal act makes phone solicitation to numbers on the Do Not Call Registry illegal unless a prior relationship or permission exists?
Do Not Call Implementation Act of 2003
Which of the following could an investor who sells an apartment house buy using a 1031 exchange?
Duplex, office building, or warehouse
Which term means the power of the government to take private land for public use?
Eminent domain
Justin decided to build a privacy fence around his yard. He thought the fence was along the property line, but it turns out he built it one foot inside his neighbor's property. What will an inspector document as existing on the neighboring property?
Encroachment
In which of the following types of contracts has one or more of the contract's terms yet to be completed?
Executory contract
Lydia put the minimum 3.5% down on her $210,000 home. She'll have to pay an MIP. What type of loan does Lydia have?
FHA
Which act gives consumers the right to access information held by consumer reporting agencies?
Fair Credit Reporting Act
After a life estate holder dies and ownership rights have either reverted to the original owner or have been transferred to a remainderman, with what type of estate is the property held?
Fee simple
Cooperative shareholders under a condop structure have ______.
Flexibility in selling and subletting, similar to that of condominium owners
Peter is a tenant in a single-family home owned by Cheyenne. What type of interest does Cheyenne have in the property?
Freehold
Dee-Dee, a listing agent, has an exclusive right-to-sell agreement with her seller clients. She is providing a CMA, marketing the property, listing it on the MLS, and handling buyer inquiries. When she has a buyer on the line, she'll negotiate with the buyer's agent and prepare the offer to purchase. She works on a commission basis rather than for a flat fee. What type of listing service is she providing?
Full service
Jonathon slapped his alarm clock and stumbled to the bathroom, turned on the shower, and went to the kitchen for his coffee. When he returned, he noticed the water wasn't running. He called his landlord, and the plumber arrived two hours later. Turns out that a supply pipe had burst between the street and his townhouse. The repair would take a couple of days. What might the landlord have done to keep this from happening?
Had a plumber test water pressures and pipe strength regularly
Devin recently purchased a home in an airport influence area. What does this mean for him?
He is in an area that experiences aircraft noise and overflight of a 65-decibel or greater average or an area near a runway that experiences significant aircraft noise and overflights.
Arizona licensed contractor DeAngelo was involved in a case against a consumer and can't pay the judgment amount awarded by the residential contractors recovery fund. What will happen to his contractor's license?
His license will be suspended until he pays back the amount paid to the consumer, plus interest.
Fran, a broker, recently had a real estate transaction implode on her when the ______ was overly concerned about cosmetic details of a property.
Home inspector
If downzoning occurs in one area, reducing property values in adjacent areas, what can the homeowners in those adjacent areas do?
If downzoning occurs in one area, reducing property values in adjacent areas, what can the homeowners in those adjacent areas do?
What does the parol evidence rule state?
In certain cases, oral evidence can be used to support or complete an otherwise incomplete or ambiguous contract.
Which one of these would NOT be an element of comparison an appraiser would use when applying the sales comparison approach to a property valuation?
Income generated
Which one of the following tasks must a licensee perform for seller clients?
Inform sellers of their responsibility to make all required property condition disclosures.
Which of the following describes the amount a lender charges a borrower for using money?
Interest
Which of the following is a quality of a marketable title?
It allows the owner to mortgage the property.
Which of these scenarios is an example of nomination?
Jessie named Serena to purchase a property on his behalf. The agreement requires Serena to convey the property to Jessie immediately after closing.
John is selling his rental property to Tony. Marcus represents John, and Meredith is working with Tony, though there is no agency relationship between them. In this scenario, who is/are the principal(s) in an agency relationship?
John
What does a void contract lack that makes it void?
Legality
What could be a consequence if there were no secondary mortgage market?
Lenders might not have funds available to make new loans to the public.
If a tenant moves out before a lease term expires and the landlord is able to rent the unit, the tenant is ______.
Liable for rent for the month during which the move-out occurred and any month until the end of the lease that the landlord is unable to rent the unit
If a real estate professional discovers that another real estate professional is engaging in discriminatory marketing practices, what action should he or she take?
Make a complaint to the National Association of REALTORS® or to the Department of Housing and Urban Development
Which clause in the listing agreement gives the listing broker the authority and obligates the broker to market the property to other brokers?
Multiple listing clause
Which type of listing is not legal in some states because it can lead to c conflict of interest?
Net
Iris is planning to purchase her first home. Based on what you know about the nature of real estate finance in our country, which approach is she most likely to use?
Obtaining a loan to purchase the home
Which of the following describes a unilateral contract?
One in which only one party is obligated
Which of the following leases is more commonly used with retail properties, such as shopping centers and malls?
Percentage leases
What's a typical prepaid item that will go into a seller's credit column and a buyer's debit column on a closing statement?
Property taxes
Randall purchased a home in Scottsdale without realizing that the previous owners hadn't paid their property taxes in more than a year. What is likely to happen to Randall now that he is the new owner?
Randall purchased a home in Scottsdale without realizing that the previous owners hadn't paid their property taxes in more than a year. What is likely to happen to Randall now that he is the new owner?
Arizona licensee Kurt is within his original license period, but his license was cancelled. He resolved the cancellation issues, and is eligible for reinstatement through ______.
Re-application
Tristan refuses to let Marla list his property on the MLS, even though Marla told him that more exposure to the property will generate more potential buyers. Which two fiduciary duties are at odds in this situation?
Reasonable skill and care and obedience
Which clause in the deed of trust is the equivalent of the defeasance clause in the mortgage?
Reconveyance
Cheng is selling his property to Jericho. What's the best method Jericho can use to ensure his interest in the property?
Record the deed in his name.
What's the term for a lender refusing to lend in a specific area, often based on the area's minority make-up?
Redlining
Deed restrictions imposed by a developer who wants to maintain specific standards in a subdivision under development are often called ______.
Restrictive covenants
Which of the following statements best describes a listing that terminates by performance?
Roberto listed a property for Terrence. After two failed offers, the property made it to a successful closing.
Frank owns a property on which there is walkway to the beach shared by his neighbors on either side. What is Frank's property?
Servient estate
Jake, an Arizona licensee, presents his seller client with all of the offers he receives and presents counter-offers when appropriate. What statutory duty is Jake performing for his client?
Serving the client's best interests
Which of the following is a potential disadvantage for a buyer who enters into a lease with an option to buy contract?
The buyer/lessee could lose any funds credited to the purchase price if he breaches the lease's terms.
Fontaine and Charles are concerned about some items in the inspection report they just received. They elect to request that the seller repair the electrical panel and the HVAC system. Which of these statements is true?
The contract requires that agreed-upon corrections be made within the time noted in the contract
Which of these fits the description of the "rent deduction" remedy?
The landlord didn't fix plumbing, so the tenant did, and deducted it from the rent
A property management agreement must contain ______.
The type and frequency of status reports the property manager will provide to the owner
Annie and George have been saving and are finally ready to purchase their first home for their family (including their two toddlers). They want to make an offer on a sweet little bungalow in a quiet neighborhood. If the sellers are represented by a real estate licensee, which situation would be a violation of fair housing laws?
Their offer is rejected because the seller knows the neighbors don't like children.
James is a trustee for an estate that's being sold. What are the license requirements for James under Arizona statute?
There is no requirement to have any type of real estate license.
Which of the following is true about pocket listings?
They are off-market listings.
Landlord Lou asks tenant Tom to sign a written rental agreement that has a provision that attorney fees may be awarded to the prevailing party if there is a court action. Tom signs it. Which of thThis is not a prohibited provision, so Lou's done nothing wrong, and the lease is valid (assuming all other elements are legal).e following is true in this situation?
This is not a prohibited provision, so Lou's done nothing wrong, and the lease is valid (assuming all other elements are legal).
What's the purpose of the title search?
To collect evidence that the title is a marketable title, meaning it's clear and free of encumbrances
The Harris family farmland has been converted to build a subdivision. Which of the following rights is it given?
Type 1 right
Which factor that influences value considers the property's function?
Utility
Which of the following are substances found in air fresheners, cleansers, paint, and building materials that can make indoor air quality toxic at high levels?
VOCs
Which of the following terms means the price a property is worth to its owner as currently enjoyed?
Value in use
Kevin and Regina sold their property to Virginia using a general warranty deed. Which of these statements is true?
Virginia is the grantee.
Marvin knows that three-bedroom properties with two bathrooms sell quickest in his market. In an ad for a new listing, he wrote, "Bonus room could easily be a third bedroom." Marla and Tom visit the property with their agent, and Tom, a construction supervisor, notes that the bonus room couldn't be easily converted to a bedroom because it's too small, it has no egress and no heat source, and it can only be accessed by walking through a bathroom. Is Marvin guilty of misrepresentation?
Yes, because he should have known there would be major issues converting that room to a bedroom.
