prac 14
When a buyer takes over the seller's original loan with the lender's permission, this is called ______.
An assumption
Amanda helps her neighbor sell his home by assisting with negotiations. She receives no compensation for her assistance. Based on this one transaction, Amanda ______.
Doesn't need a real estate license
Which of the following statements related to 1031 tax-deferred exchanges is true?
Foreign investors may participate.
Joe works for a life insurance company that funds commercial investment projects and often insures these projects by insisting on an equity position. What type of financing does this describe?
Participation
In a land contract, which party finances the purchase of the property?
The seller
Which of the following is an OPTIONAL inclusion to the property management agreement in Arizona?
An automatic renewal of the agreement
A community that undertakes a comprehensive master plan is ______.
Taking the first step in urban planning
Who closes on the cooperative brokerage agreement?
The agents for the buyer and seller
Arizona brokers must withdraw any interest earned on a trust account at least every ______.
12 months
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.
What's the definition of a group home?
A facility where unrelated adults live
__ is a fee that a lender charges for the processing of a loan.
A loan origination fee
As an Arizona licensee, you can legally enter into an additional employment agreement with a represented party if that party signs the state-required acknowledgement and gets a liability release from the first licensee. What else is true about this situation?
Although it's legal, a civil suit is still possible.
When you, as an Arizona licensee, cooperate with other brokers in a transaction, what is it called?
Co-brokerage
Homeowner Ron can no longer make his mortgage payments. Rather than face foreclosure, he decides to cut his losses. He voluntarily conveys his property to his lender. What type of foreclosure alternative is this?
Deed in lieu of foreclosure
The person named as the recipient of real property in a will is called the _______.
Devisee
Which type of REITs specialize in owning certain building types, such as apartments or office buildings?
Equity REITs
Which of these situations is an example of designated (appointed) agency?
Jacob, a broker, acts as the dual agent and appoints Mark to represent the buyer and Todd to represent the seller in the same transaction.
What kind of budget serves two primary purposes: to help property managers maximize profitability and to avoid unforeseen major expenses?
Operating
What type of arrangement allows the buyer to retain title to the property, but places a security interest in the property on behalf of the seller?
Purchase money mortgage
Which of the following people is exempt from the licensing requirements for engaging in real estate activities in Arizona?
Rebecca is an attorney and member of the state bar association. She focuses on real estate and property law for her firm.
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 type of lien funds public property improvements?
Special assessment
With a triple net lease, the tenant pays ______ separately from the base rent.
Taxes, insurance, and maintenance
Which of these is a user group that CAP serves?
The agricultural sector
When would a lender require a mortgage insurance premium?
The borrower has an FHA mortgage.
Marla, an attorney, is purchasing a property. She's adamant that she receive clear title to the property. What does this mean?
The title has an unbroken chain of ownership and no liens or encumbrances.
Which of the following is true about air rights?
They allow the owner to use the open space above buildings.
Temporary brokers' licenses might be granted by the commissioner to licensed or unlicensed individuals for the purpose of ______.
Tying up business matters for deceased or incapacitated brokers
Which of the following statements about rent payments in Arizona is true?
Unless the rental agreement states a definite term, tenancy must be month-to-month (except for tenants who pay weekly rent).
An encumbrance that involves money is a _____.
lien
The HUD requirements, administered by the Office of Interstate Land Sales Registration, apply primarily to _____.
subdivision lots located in one state and sold to residents of another state
