Real estate practice (missed questions pt7)

In Arizona, how long does a seller who resides in a planned community or an HOA have to give the buyer notification of the association rules?

10 days after notification of a pending sale

A homeowner has $80,000 of principal left to pay on her mortgage. Her home was recently appraised at $156,000, which is $13,000 more than what she purchased it for. How much equity does she have in her home?

76,000

An escrow officer is an example of which type of agent?

A limited agent

Which of the following statements about the promissory note is true?

A promissory note is a negotiable instrument and can be transferred to a secondary holder who has the right to enforce the note's terms.

Kenneth entered into a contract to sell his home to Valerie, who put down a $5,000 earnest money deposit. At the last minute, Valerie backed out of the deal, and Kenneth kept the earnest deposit. This is an example of ______.

Accepting liquidated damages

Which type of analysis performed by a property manager is similar to a highest and best use analysis that an appraiser would use?

Analysis of alternatives

What's an appropriate strategy when working with a prospective short sale seller?

Bring a list of documents the lender will need.

When you, as an Arizona licensee, cooperate with other brokers in a transaction, what is it called?

Co-brokerage

With the cost approach to value, what is the reproduction cost?

Cost to build an exact replica of the subject, with the same materials and deficiencies

Craig's loan is secured by a mortgage. Who holds legal title when this security instrument is used?

Craig

Drainfields that use ______ are only six to eight inches deep.

Drip irrigation

Which type of distressed property transaction requires a cash purchase?

Foreclosure auction

According to Arizona's solar energy exemption, ______.

HOAs can't prevent homeowners of real property from installing/using solar energy devices

An advantage of organizing a business as a limited liability company is its ______.

Limits on the liability of members for company debts or other obligations

What does an Arizona homeowner lose when choosing to use deed in lieu of foreclosure?

Protection from deficiency judgment

Which of these situations represents a unilateral contract?

Sherry promises to give Brent a ride home from work, and then doesn't show up.

Sanford, a licensed contractor and owner of All My Sons Construction, is under investigation by the Arizona Registrar of Contractors. What power does the AZ ROC have to prove its case against Sanford?

Subpoena witnesses and records.

Who closes on the mortgage loan commitment at closing?

The buyer and the lender's attorney

Which of the following meets the commissioner's requirements for presale approval submission?

The developer must submit the request in writing, along with the public report and verification of the escrow account designated for sale funds.

Cecilia has been awarded a judgment in court after suing Elijah for fraud. Elijah can't pay the $20,000 in damages. How long does Cecilia have from the time of the judgment to apply to the Arizona real estate recovery fund?

Two years

Of the following, which is considered a typical accrued adjustment?

Unpaid real estate taxes

In Arizona, when foreclosing on a house bought under an agreement for sale, the process ____.

Varies depending on the amount the buyer has paid toward the purchase price

Which of the following could an investor who sells an apartment house buy using a 1031 exchange?

Duplex, office building, or warehouse

Which one of the following options provides three valid examples of a private land use control?

Easement, lien, deed restriction

Once compensation for a transaction has been earned, when is it usually paid?

Either at closing or immediately upon client default

Which of the following clauses is included in Fannie Mae's multi-state note?

Late charge

Who is it that acts as a liaison between a lender and the client?

Mortgage loan originators

Which of the following is the price a lender believes the property will bring at a foreclosure sale?

Mortgage value

How much advance notice must the Arizona landlord give the tenant to pay monthly rent?

No notice is required.

Arizona designated broker Rick is setting up a temporary branch office for a few transactions taking place 50 miles from the main brokerage office. Does Rick need to acquire a temporary branch office license?

No. Temporary branch offices do not require additional licensure like permanent ones do.

When representing a property owner, you must ______ before you're allowed to place a sign on the property.

Obtain written permission from the property owner

A taxpayer can claim a capital gains exclusion _______.

Once every two years

In a hot market, what pricing strategy may incite bidding wars?

Pricing at or just below market value

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

Prior appropriation

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

Which of these is a NOT a reason why agency disclosure is mandated?

Real estate transactions aren't covered by consumer protection laws; agency law and disclosures provide the only protections.

Your seller client wants to hire an unlicensed handyman to do some work around her house before she sells it. What advice would you give her?

Select a worker who's bonded and insured.

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

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

A summary suspension is a penalty designed for the commissioner to levy if ______.

The licensee's actions are causing an immediate threat to the public

When pricing a property, which of the following is a reason a licensee would consider expired listings?

To determine the price at which a property won't sell

What is the trustee's role when a deed of trust is used to secure property for a loan?

To hold legal title to the property on behalf of the beneficiary until the loan is repaid

What is the purpose of the handyman exemption in Arizona?

To protect consumers from unqualified and dishonest people posing as knowledgeable contractors

Marissa, a new licensee, has some questions. Which of these questions can the Arizona Association of REALTORS® help her answer?

Where can I go to find marketing data on my area so I can advertise more effectively?

With which of the following problems can ADWR help?

Willis wants to know if he has the right to irrigate a piece of land that's been in his family for generations. It's in an INA.

Xavier deposited a $3,000 earnest money check into his personal account for safekeeping while he was on vacation. The balance in his account when he left on vacation was $4,200, and when he returned, it was $2,800. He withdrew enough funds from his savings account to cover the earnest money check and delivered the funds to the escrow agent. Which statement best represents Xavier's issue?

Xavier is guilty of commingling and conversion.