quiz practice pt4

Darren has been found guilty of four violations relating to fraud in the practice of real estate activities, and has been levied civil penalties. If each violation has been assigned the maximum civil fine amount, how much will Darren be fined?

$4,000

What is the Arizona real estate recovery fund's maximum per-licensee liability?

$90,000

In Arizona, how long are judgment liens valid?

10 years

What percentage of new buyers are minorities?

40%

Select the statement that accurately reflects the type of deed used for the transfer.

A deed of trust conveys real estate to a trustee for the beneficiary named in the deed.

Which project would a life insurance company be most likely to finance?

A shopping mall

The ______ clause is also known as a due-on-sale clause.

Alienation

Which of the following is an OPTIONAL inclusion to the property management agreement in Arizona?

An automatic renewal of the agreement

ABC Bank in Arizona financed Betty's purchase of a three-bedroom home a few years ago. She kept up with the payments on the loan until a few months ago but is now in default. How will ABC Bank most likely go about initiating the foreclosure process?

Ask the trustee on the deed of trust to record a Notice of Trustee's Sale with the county.

Jarod has a heap of financial trouble. His credit card debt is piling up, he owes child support, and he's defaulted on his mortgage loan. His lender starts foreclosure proceedings. Which of these choices would stop the foreclosure and possibly allow Jarod to keep his home?

Bankruptcy

When must Arizona licensees disclose to consumers all terms, conditions, and restrictions for any incentives offered to consumers?

Before the consumer participates in the offer

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

Buydown

Your buyer clients are excited because the property they made an offer on provides a home warranty. What should you tell them?

Check the coverage at the time of purchase.

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.

Which of the following is a form of commercial bank revenue related to mortgage financing?

Demand deposits

River City Bank needs to cut back on lending. For several months, the bank has seen more withdrawals from customers than deposits. This has led to a decrease in deposits typically used for lending. What term can be used to describe what the bank has experienced?

Disintermediation

Which of the following situations is an example of a non-agency relationship?

Dutton was previously a licensee. He's selling his home, and he wants Wanda, who's currently licensed, to assist him with the paperwork.

The ______ provides financial and technical assistance to landowners who put conservation practices into place on their agricultural and non-industrial private forestland.

Environmental Quality Incentive Program

What can Arizona homeowners use the homestead exemption to do?

Exempt part of the value of their primary residence from seizure for payment of debts

The Swansons left the family property to their son, Jason, with the stipulation that he does not build on it. The type of estate Jason holds is ______.

Fee simple defeasible

How is a mortgage banker paid?

Fees from originating and servicing loans

What's another term for a valuation that's an unbiased opinion of value?

Formal appraisal

Which of these is NOT an example of agency coupled with interest?

Gene, a real estate professional, is purchasing a home for his personal use. He negotiates a reduction in the sales price in return for taking no commission from the seller.

Which of the following is a true statement about building code regulations?

If there's no state or local building code to cover a situation, the national code applies.

Commercial banks fall into which of the following category of lenders?

Institutional lenders

Which of the following best describes the function of a deficiency judgment in the case of a foreclosure?

It allows the lender to recover losses incurred in the foreclosure process.

Which of the following describes a deed restriction?

It can be placed on a single property, an entire subdivision, or a neighborhood.

Acknowledgment is a key element to a deed. Why should a grantee always receive an acknowledged deed?

It provides the grantee title protection against other purchasers of the same property from the grantor.

Who is generally responsible for providing the Loan Estimate during the loan approval process?

Lender

It's time for some recordkeeping housekeeping for licensee Francis. This month he had a difficult client who might question his fair housing practices. He's diligently kept a record of his conversations and communications with this client. What else should he do to protect himself if he's accused of committing fair housing violations?

Maintain record of fair housing training attendance.

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

Off-gassing

Tammy and Reginald bought a house with a gas line easement on the property. An easement like this one placed by the utility company is an example of a ______.

Private land control

Which of these statements best describes the concept of procuring cause?

Procuring cause means the licensee's actions produced a ready, willing, and able buyer.

Over the life span of owning a home, homeowners may be able to take advantage of what tax benefits?

Property tax deduction

Which of the following is NOT an ADEQ environmental program type?

Radon mitigation

The Arizona Administrative Code, also known as "the commissioner's rules," is made up of ______.

Regulations

Liza's Arizona salesperson's license is inactive due to a suspension. The suspension period is up, but her license expired three months ago. With the suspension resolved, she is eligible to apply for reinstatement by ______.

Renewal

After issuing a public report to Arizona unsubdivided landowner Carlton Cruz, the commission learns that Cruz has an administrative order entered against him in California barring him from selling real estate. What action will the commission likely take against Cruz?

Revoke the public report.

Which special lease clause stipulates that the tenant is responsible for paying any increase in taxes over the base year's taxes, in addition to the base rent?

Tax

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

Telephone Consumer Protection Act of 2003

Marcus listed his property with Home Sweet Home Realty and one of its listing agents, Ron Savage. About a month later, Ron filed for bankruptcy. Which of the following statements about this situation is true?

The agency agreement only terminates if the broker or the principal declares bankruptcy.

Which covenant requires the grantor to execute any necessary legal documents (within his power) necessary to fix title defects discovered after closing?

The covenant of further assurances

Kelly is closing on the house she's purchasing on Wednesday. Which of these statements is true?

The lender must provide the Closing Disclosure by Friday of the week before closing.

Olivia took out a 15-year loan secured with a deed of trust. She worked two jobs in order to pay the loan back and finally made her last payment this month. What happens now?

The lender tells the trustee to release the title to Olivia.

Martin is looking to purchase a timeshare in Mystic Mountains Resort. When he met with salesperson Kennedy at a promotional event prior to the resort's opening, she gave him a packet of documentation. What should be in the packet?

The public report submitted to the commissioner and terms of cancellation

Mitzi's foreclosed property was sold at an Arizona trustee's sale. After the sale, she was notified that the lender had filed a deficiency judgment against her. Under what condition can this happen in Arizona?

The subject of the foreclosure was a commercial property.

What does it mean if a property sits on a floodplain?

There is a 1% chance the property will flood in any given year.

Why are net listings illegal in some states?

There's potential for a conflict of interest.

George and June Dobson are a married couple who bought their home three years ago, though they lived in it for only 18 months before traveling abroad and renting it out. Now they've been offered a price that's $300,000 more than they paid for it, so they've decided to sell. What's true about this situation?

They won't be allowed to exclude the capital gains from the sale when they file their income taxes because they lived in the home for fewer than two of the preceding five years.

The ______ can offer direct loans to farmers and ranchers. The loans are funded by congressional appropriation.

USDA Farm Service Agency

Which of the following defines when a lender charges a borrower more than the highest allowable interest rate?

Usury

A contract that's binding for one party, but gives the other party the choice to terminate is ____________.

Voidable

Select the choice that best translates this clause into plain English. "Upon payment of all sums secured by this Mortgage, Mortgagee shall discharge this Mortgage without cost to Mortgagor. Mortgagor shall pay all costs of recordation, if any."

When the borrower has fully paid off the loan, the lender will record that the note is satisfied.