THECESHOP FINAL (RV 03.16.23)

Lacey and Don live in a newer Arizona subdivision, and they'd like to install solar panels to help with utility costs. However, they've just found out that the HOA will only allow them to put them on the north side of the home, which is not visible from the street but also gets the least amount of sun. Which of the following is true?

HOAs can regulate the placement of solar energy devices, as long as the regulations don't adversely affect their efficiency.

According to national standards, under what circumstances may a pool house be included in total square footage? If it is attached to the main house by a hallway or stairway If it is larger than 500 square feet If it is smaller than 500 square feet If its total cost is more than $25,000

If it is attached to the main house by a hallway or stairway

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? Financing terms and cash equivalency Income generated Market conditions at time of sale Physical characteristics of the property

Income generated

Capitalization is the process of converting ______.

Income to value

Commercial banks fall into which of the following category of lenders? Institutional lenders Non-institutional lenders Peripheral lenders Subsidiary lenders

Institutional lenders

With a straight mortgage, what type of payments are made up until the end of the loan term? Insurance Interest Points Principal

Interest

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. It expedites the foreclosure process. It initiates the eviction process for borrowers who are still living in a foreclosed property. It makes re-selling the foreclosed property more efficient.

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

Which of these statements regarding rental agreements is true? A week-to-week tenancy is called a tenancy for a specific term. Deposits are commonly used to address normal wear-and-tear issues after tenants move out. It's always best to get rental agreements in writing. Nonrefundable fees are called deposits.

It's always best to get rental agreements in writing.

What's another name for a nonconforming loan? Hybrid loan Jumbo loan Piggyback loan Specialty loan

Jumbo Loan Mortgages that exceed the conforming loan limit are classified as nonconforming, and are called jumbo mortgages.

The primary purpose of the Real Estate Settlement Procedures Act is to ensure that buyers ______. Can get federally guaranteed loans Get favorable interest rates Have mortgage options to choose from Know all settlement costs up front

Know all settlement costs up front

What's the name of the clause in a promissory note where this language appears: "If the Note Holder has not received the full amount of any monthly payment by the end of ______ calendar days after the date it is due, I will pay a late charge to the Note Holder"? Fees and additional charges clause Late charge provision Lock-in clause Prepayment provision

Late charge provision The late charge provision includes statements describing the borrower's responsibility to pay a fee if the monthly payment is late.

Which of the following statements accurately describes the written lease requirements in Arizona? Lease agreements always have to be written. Lease agreements don't have to be written. Lease agreements for 120 or more days must be written. Lease agreements for six months or more must be written.

Lease agreements don't have to be written.

What does a void contract lack that makes it void? Compensation It hasn't been committed to writing Legality Signatures

Legality

One member of the Arizona Real Estate Advisory Board is required to be a ______. Commercial broker who is primarily a property sub-divider Licensed broker who has been engaged in multi-family residential rental brokerage Member of the general public Political independent

Licensed broker who has been engaged in multi-family residential rental brokerage

Which type of agent is an escrow officer? General agent Limited agent Single agent Universal agent

Limited agent

Freddie Mac's mission is to provide ______, stability, and affordability in the U.S. housing market. Interest Leverage Liquidity Participation

Liquidity

An Arizona lender is about to pursue judicial foreclosure. In addition to filing the petition to foreclose, it will file and record a ______. Court order Formal complaint Junior lien Lis pendens

Lis pendens The lis pendens puts the public on notice that a foreclosure suit is pending.

What attracts borrowers to adjustable rate mortgages? Balloon payment Convertible feature Initial cap Lower initial interest rate

Lower initial interest rate

Which of the following is the best example of the economic principle of leveraging, as it applies to a real estate transaction? Completing the loan process Making a down payment Making the loan payments Purchasing title insurance

Making a down payment The typically small amount of the down payment is used to leverage the entire amount of the purchase, giving the investor/buyer control over the entire investment.

All of the following are typically common property manager duties EXCEPT ______. Accepting rental applications Making mortgage payments Re-keying a property Showing vacant units

Making mortgage payments

What is the oldest type of legal description used in the U.S.? Assessor's parcel number Lot, block, tract Metes and bounds Rectangular government survey

Metes and bounds

When does the MARIA acronym to test whether an item is a fixture stand for?

Method, Adaptability, Relationship, Intention, Agreement.

On what do personal beliefs, such as religious ones, have the greatest effect? Ethics Laws Morals Regulations

Morals

What does MLS stand for?

Multiple Listing Service

All the following reports may be your responsibility as a property manager EXCEPT ______. Monthly and annual financial reports Neighborhood sales Tenant rolls Vacancy report

Neighborhood sales

Fair housing laws give homeseekers a legal right to which of the following? Access to a "rent to own" program for properties when they can't pay the required down payments Complaint process for rejected home offers, even if the offer is significantly below list price Credit to purchase the home of their choice, regardless of ability to repay No discriminatory limitations on communities or locations of housing

No discriminatory limitations on communities or locations of housing

Which of these is NOT an option for a seller under an Arizona agreement for sale when a buyer defaults on the loan? Acceleration of the loan and judicial foreclosure Forfeiture by judicial process Forfeiture by notice Non-judicial foreclosure

Non-judicial foreclosure

Brynn's listing agent told potential buyers that all offers on Brynn's property would be considered at 5 p.m. on May 3. By that date and time, there were four offers. The persons making these offers are the ______. Examiners Executors Offerees Offerors

Offerors

Underground storage tanks are primarily found in _____. Newer homes Newer industrial sites Older homes and former industrial sites Parks and golf courses

Older homes and former industrial sites

Property taxes generate approximately ______ of local government revenue.

One third

June specified in her will how title to her home would transfer. At her death, alternate conveyance occurred. What likely happened? Fraud Intestate hereditary Operation of law Testate succession

Operation of law Operation of law trumps a will. It says that what's legally required must be satisfied before the terms of the will apply.

If an Arizona licensee's license is made inactive through cancellation, suspension, termination, or revocation, that licensee may be eligible for license reinstatement through re-application, renewal, or ______, depending on the circumstances. New application Original application Re-examination Restoration

Original application

Who is most likely to sue a property manager for mishandling of funds, breach of contract, fraud, or theft? Broker Lessor Owner Tenant

Owner Owners typically file lawsuits for these issues. Mishandling funds is the number-one reason owners file lawsuits against property managers.

What's the name of the clause included in a finance instrument that requires the lender to release a portion of the property from the lien when a part of the debt has been paid? Exculpatory Non-recourse Partial release Subordination

Partial release

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? Equity-based Interim Multi-modal Participation

Participation

Once handed over, trust funds belong to the ______ until the transaction for which they were designated has been completed, or they're disbursed according to the agreement between the parties. Bank Broker Licensee Party who submitted them

Party who submitted them

Which of the following factors carries the heaviest weight when calculating a credit score?

Payment history

For a mechanic's lien to be enforceable it has to be ______, meaning the lienholder has to follow statutory stipulations for maintaining and enforcing the lien. Created Perfected Released Waived

Perfected

Which local land use group has the dual focus of livability and quality of life? HOA Master commission Planning board Zoning board of appeals

Planning board

A surveyor created a lot and block survey for a new residential development. The first thing she did when she surveyed the new neighborhood was to reference a metes and bounds land description. From there, she divided the land into numbered lots and blocks. This output is known as a ______. Benchmark Monument Plat map Rectangular survey

Plat map

A listing that's not posted on the MLS and is kept off-market is commonly known as a(n) ______. Exclusive agency listing Open listing Pocket listing Secret listing

Pocket Listing Pocket listings are off-market listings. Only the seller, the listing agent, and those whom the seller and listing agent inform even know the property is for sale. It's not posted on the MLS.

Which one of the following is income that comes from investments, which includes capital gains, interest, and dividends? Active Passive Portfolio Stock

Portfolio

Which of the following is a benefit of owning a condominium? Owning shares of a corporation Personal property ownership Possible subletting rights Very selective application process

Possible subletting rights

Which clause is standard in a deed of trust and affects the foreclosure process that can be used if the borrower defaults? Acceleration Alienation Power of sale Reconveyance

Power of sale

Which of the following, once completed, initiates the loan process? Closing Disclosure Loan application Loan Estimate Pre-qualification request

Pre-qualification request

All contractors who want to reserve their right to file liens in Arizona have to file a _______. A lien invoice Notice of completion Preliminary 20-day notice Right-to-lien form

Preliminary 20-day notice

Which of the following will impact an investor's ability to develop a new real estate project in a particular area? An environmental impact study being conducted on neighboring land Presence of underground storage tanks Proximity to a regional airport The local planning board's meeting schedule

Presence of underground storage tanks

"Separate property" is property most likely acquired ______. As community property As tenants in common In joint tenancy Prior to marriage

Prior to marriage Separate property may be acquired before marriage, or outside of marriage. Property acquired during the marriage would be considered community property in states that recognize this legal concept.

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 ______. Covenant Deed restriction Private land control Subdivision regulation

Private land control

Which of these statements best describes the concept of procuring cause? All agency agreements guarantee procuring cause. Procuring cause is a guarantee that the brokerage firm will be paid. Procuring cause means the licensee's actions produced a ready, willing, and able buyer. The procuring cause in a transaction is simple to identify.

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

What's the property manager's primary function? Knowing how to handle tenant relations in accordance with lease agreements. Maintain the property in tip-top condition. Produce the greatest net return for the owner. Staying abreast of market trends and rental rates in the area.

Produce the greatest net return for the owner.

Which type of analysis that a property manager performs includes a discussion of the property's current condition and recommendations to stall or reverse obsolescence? Analysis of alternatives Competitive analysis Market analysis Property analysis

Property analysis The property analysis includes a discussion of the property's current condition and recommendations to stall or reverse obsolescence. (Reverse obsolescence means revert it to present instead of it being outdated so old -> new)

Which of the following is a piece of specific data an appraiser may gather? Cost of living Employment figures Population size Property lot size

Property lot size SPECIFIC DATA is related to the property. Lot size fits this bill.

The fundamental purpose of the ______ is to provide tenants facing eviction from a foreclosed property sufficient time to locate alternative housing. Arizona Eviction Protection Program HUD Section 8 Housing Program HUD Section 8 Housing Voucher Protection Program Protecting Tenants at Foreclosure Act

Protecting Tenants at Foreclosure Act

Which of the following must occur before zoning changes are made? Local development experts must be consulted. Public hearings must be held. The real estate commission must approve the changes. Voters in that jurisdiction must vote to approve the change.

Public hearings must be held.

A ______ is a ratio that compares two quantities. Part Percentage Rate Total

Rate

What factors directly affect an adjustable rate mortgage? Amortization tables, index, and rate Index, tax basis, and margin Rate, index, and margin Rate, loan-to-value ratio, and index

Rate, index, and margin

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 ______. New application Original application Re-application Renewal

Re-application Cancelled licenses that are within the original license period (unexpired), and where the reason for cancellation has been resolved, are eligible for reinstatement by re-application.

Non-trust funds, as long as they're not commingled with trust funds, are not bound by _______. Banking regulations International trade rules Real estate laws State laws

Real estate laws

What is the name of the set of regulations used to enforce the Equal Credit Opportunity Act? Regulation 120, Part B Regulation B Regulation C Regulation ECOA

Regulation B

Which of the following home renovation projects may be covered by the handyman exemption in Arizona? Installing a hot tub and all of the necessary electrical connections Replacing the gutters Replacing the roof Replacing the screens on nine windows

Replacing the screens on nine windows The handyman exemption permits people to hire an unlicensed contractor to perform minor, unpermitted repairs that cost less than $1,000 in total, or any work that doesn't fall within the list of exceptions.

When engaged in an Arizona real estate transaction, which of the following is something licensees are required to do for their customers? Follow all instructions received. Negotiate on their behalf. Report confidential information about their client. Report information that their client may not be able to perform in the transaction.

Report information that their client may not be able to perform in the transaction.

Deed restrictions imposed by a developer who wants to maintain specific standards in a subdivision under development are often called _______.

Restrictive covenants

A property you're valuing for an investor client sits in the middle of a blighted neighborhood, though a few homes appear to be undergoing renovation. Which neighborhood life cycle stage is making the property appealing to an investor? Decline Equilibrium Growth Revitalization

Revitalization A neighborhood undergoing revitalization is perfect for some investors, since values will climb as more properties in the neighborhood are renovated or rebuilt.

For farmers and others who live in rural communities, a ______ loan may be available. One benefit of these loans is the option for a longer payback period. Farm-to-closing-table Fresh farmers Organic producers Rural development

Rural development

Stan and Margo want to redevelop an old industrial site in order to create a microbrewery and event space. However, an environmental review found that hazardous chemicals were once used on site, and there is a possibility they will be released during redevelopment. Stan and Margo may not be liable for cleanup, under what federal law? CERCLA EIS SARA Wetlands Conservation Act

SARA, or the Superfund Amendments and Reauthorization Act, created an innocent landowner defense. Often, the courts will review a SARA case and determine liability.

Transaction records can be stored at a branch office. What is part of the transaction records? Accounting for all funds Copies of all check received Dated receipts and acknowledgment of checks returned to client Sales contracts

Sales contracts

Where can a party reviewing a title commitment find basic details about the transaction? Schedule A Schedule B-1 Schedule B-2 This is not contained in the title commitment.

Schedule A

Which of these documents must a closing agent submit to the Internal Revenue Service after closing? FIRPTA report Seller's 1099 Seller's settlement statement W-4 wage reporting forms for buyer and seller

Seller's 1099

The Housing and Community Development Act of 1974 added which protected class to federal fair housing law? Color Disability Religion Sex

Sex

When a property is sold at an Arizona Judicial foreclosure, the auction is called a ______. Beneficiary foreclosure auction Deed of trust foreclosure Sheriff's sale Trustee's sale

Sheriff's sale

When licensees assist sellers with a ______, they should be prepared to provide the lender with a packet of documents for evaluation. Deed-in-lieu Foreclosure REO Short sale

Short sale

When soil is dry, it tends to ______. Expand Heave Shrink Swell

Shrink

When working with a client on a real estate sale, a real estate licensee is usually acting as which type of agent? Designated General Special Universal

Special

Tenancy in Entirety

Special joint tenancy between marriages, neither party can sell interest without the other. They must either divorce or both agree to sell.

How can you help avoid foundation issues due to shrink-swell soil? Conduct a percolation test. Plant more vegetation in the soil. Stabilize the soil's moisture content. Use fewer pesticides.

Stabilize the soil's moisture content.

Forecasting the income and expenses that we can reasonably expect to bring in and pay out over a short term results in a budget that's every property manager's dream. That budget is ______. A capital reserve An expense Historical Stabilized

Stabilized

Roberta worked with an attorney to prepare her will. What kind of will is this? Descent Functional Holographic Statutory

Statutory A will prepared by an attorney is called a statutory will.

What's the term for the illegal practice of nudging buyers away from or toward a specific area based on the presence or absence of protected class members?

Steering Using an area's demographic make-up in order to steer protected classes away from or to specific neighborhoods is steering, and it's illegal.

Which of the following should be filed in the questionnaire section of the Arizona public report application? Certificate of Assured Water Supply Subdivision information Subdivision map Title insurance policy

Subdivision information

In Arizona, which of the following types of liens has the highest priority? Deeds of trust First mortgages Mechanic's liens Tax liens

Tax liens

What's the relationship between TILA, RESPA, and TRID? The Dodd-Frank Act requires that lenders use the TILA-RESPA Integrated Disclosures (TRID). TILA and RESPA require lenders to use TRID. TILA, RESPA, and TRID mandate the lender disclosures required for federally related transactions. TRID mandates the type of disclosures for TILA- and RESPA-related transactions.

The Dodd-Frank Act requires that lenders use the TILA-RESPA Integrated Disclosures (TRID).

Contingencies normally include the responsible party's name, the deadline for the contingency removal, and ______. The actions required for removal The date the contingency was added The reason the contingency was added Three reasons the contingency is required

The actions required for removal

Which of these is a user group that CAP serves? Land developers Recreational water users The agricultural sector Those with grandfathered irrigation rights

The agricultural sector

What's one of the required elements of a valid option contract? A range of sale prices for the property from which the optionee can choose The amount of consideration the optionee is paying the optionor The optionee's promise to buy the property The optionor's verbal assurance that the optionor won't sell the property to anyone else during the option period

The amount of consideration the optionee is paying the optionor

Who is required to sign a security agreement for security arrangements under the Uniform Commercial Code? The borrower The lender The seller The testator

The borrower The UCC requires the borrower to sign a security agreement for any security arrangements. When used in the financing of real estate, the agreement must adequately identify personal property used as collateral.

Which of the following is NOT a requirement for a property sold under a judicial foreclosure in order for the borrower to be protected under Arizona anti-deficiency statutes? The borrower used the property for a personal residence. The loan foreclosed on was used for the purchase price of the property. The property is 2.5 acres or less. The property is a one- or two-family dwelling.

The borrower used the property for a personal residence.

What term explains the complexity of property ownership rights and how rights for a single property can be "owned" by multiple parties at the same time? Littoral rights Physical component rights Riparian rights The bundle of rights

The bundle of rights

Which of the following statements best describes the judicial foreclosure and sale process? It's illegal in most states. It's used in cases where something other than the property is used as collateral. No court involvement is required. The lender must seek the court's permission to foreclose on the property used as collateral for the loan.

The lender must seek the court's permission to foreclose on the property used as collateral for the loan.

Which of these situations would be exempt from most provisions of the federal Fair Housing Act? A homeowner engages a real estate professional to rent out his basement apartment. An investor owns and rents out five duplexes. A non-profit owns 20 properties that it only rents to Caucasian families. The local Elks club owns a property that's rented only to Elks club members.

The local Elks club owns a property that's rented only to Elks club members. Housing operated by religious organizations and private clubs that limit occupancy to members are exempt from the provisions of the Fair Housing Act.

How is the grid that's used in the rectangular survey system laid out? The numbers are read left to right. The numbers are read right to left. The numbers start in the center and spiral out clockwise. The numbers start in the northeastern corner and follow a zigzag pattern.

The numbers start in the northeastern corner and follow a zigzag pattern.

Which of the following circumstances would qualify someone other than the licensee representing the transaction principal to handle negotiations for a real estate transaction? The licensee is a salesperson, not a broker. The licensee isn't present at the in-person, virtual, or phone negotiation. The principals are immediate family members. The property has been listed by the property owner.

The property has been listed by the property owner. There are only three exceptions to a licensee's obligations to conduct negotiations, and a For Sale by Owner situation is one of them.

What entity oversees the Arizona Department of Real Estate? The Department of Commerce The governor The real estate commissioner The state legislature

The real estate commissioner

Where is the commissioner's main office located? At the commissioner's primary residence In the county were the majority of the advisory board are located The state capitol Wherever the commissioner choses

The state capitol

Which one of the following statements about income tax rates is correct? Short-term and long-term capital gains are taxed at the same rate. The tax rate for ordinary income is different from the tax rate for short-term capital gains. The tax rate on long-term capital gains is less than the tax rate for ordinary income. The tax rate on short-term capital gains is less than the rate for long-term capital gains but more than the rate for ordinary income.

The tax rate on long-term capital gains is less than the tax rate for ordinary income.

What does the parol evidence rule say about contracts?

The terms agreed to in a written contract are the only terms relating to that contract.

Sonia receives a Notice of Trustee's Sale from one of the parties on her deed of trust. Who's responsible for sending her this notice? The beneficiary The lender The trustee The trustor

The trustee

When a deed of trust is used as a security instrument, who holds the deed and the note? The lender holds the deed and the note The lender holds the deed, and the trustee holds the note. The trustee holds the deed, and the lender holds the note. The trustee holds the mortgage and the note.

The trustee holds the deed, and the lender holds the note.

When proceeds from an Arizona foreclosure sale are applied, which of these parties will be paid after any junior lien holders? The homeowners association The senior lien holder The trustee The trustor

The trustor

timeshare estate

The type of timeshare ownership that is a fee simple ownership. (Owner can sell) Ex: Max planned on using his timeshare in Hawaii for a number of years before selling it for profit.

If individuals want to use their property in a way that's not permitted by a zoning ordinance, they must submit a request for a variance to which one of the following groups? The architectural review board The building department The planning board The zoning board of appeals

The zoning board of appeals

Which of the following is a true statement about pass-through entities? Their earnings are taxed at a flat 21% tax rate. Their earnings are taxed at the owners' individual tax rates. They allow C corporations to avoid the AMT tax. They are illegal.

Their earnings are taxed at the owners' individual tax rates.

Which of the following statements about Arizonan private water companies is true? They are all regulated by the Arizona Corporation Commission. They are federally regulated, so there's a cap on how much water they can deliver. They're mainly used to deliver water to municipalities and recreational areas, such as golf courses. They're only allowed to sell water as long as they recycle a certain percentage of effluent.

They are all regulated by the Arizona Corporation Commission.

Which of the following is a true statement about credit unions? They are more heavily regulated than large commercial banks. They are not regulated. They have less flexibility in lending than large commercial banks. They have nonprofit status.

They have nonprofit status Credit unions are competitive with large commercial banks because they have nonprofit status, which means being subject to fewer regulations and translates to greater flexibility in lending.

Stella is an appraiser who's using the direct capitalization method to calculate a value for an investment property. Which of the following is true? The subject property's income is expected to vary a lot over time. This method considers anticipated resale value. This method considers future income streams. This method converts a single year's expected income into a market value.

This method converts a single year's expected income into a market value.

Timeshare use

This type of timeshare ownership does not convey ownership, just the right to occupy the property for the period of time set forth in the timeshare contract. (Can't sell Timeshare person can only use it)

How many years of experience in real estate to obtain a broker's license in Arizona?

Three years' experience as a real estate licensee

What's one of the ways that bulk zoning achieves its objectives?

Through setbacks

In which of these situations would the property most likely be conveyed with a trustee's deed? Karla is the executor of her father's estate and is selling his farm. Marvin and Tricia are selling their house. Tim's property will be sold at auction in a foreclosure action. TLC Lending is selling an REO property.

Tim's property will be sold at auction in a foreclosure action. In states that use a deed of trust as security for a mortgage, the trustee conveys foreclosed property with a trustee's deed.

What type of estate involves a piece of real estate that's owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit in one- to two-week intervals during the year? Apartment Leasehold Lifetime Timeshare

Timeshare

A ______ is a piece of real estate owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit based on the specific terms of a timeshare agreement, usually in one- to two-week intervals during the year. Campground membership Timeshare estate Timeshare use Vacation ownership

Timeshare estate

Vicky and Lee vacation in Cancun, Mexico every year. They purchased the right to stay in a beach condo for the first two weeks in May, and their agreement continues for the next 10 years. They don't actually own the unit. What did they purchase? Condo estate Cooperative unit Timeshare estate Timeshare use

Timeshare use Timeshare use because if you read slowly it said they purchased the right to stay (use) but dont own the unit.

What type of insurance is a form of indemnity insurance that can protect both the buyer and the buyer's lender? Collateral insurance Hazard insurance Mortgage insurance Title insurance

Title insurance

Your buyer is worried that after she closes on her property, she'll find out someone else has a claim to its ownership. What can reassure her? Abstract of title Chain of title Title insurance Title search

Title insurance

Physical characteristics of land include its immobility, indestructibility, and ______.

Uniqueness

What type of measurement is used with three-dimensional shapes? Area Length Perimeter Volume

Volume

Hope's mortgage created a lien against the property she purchased with the mortgage. What kind of lien is this? General Special assessment Vendor's Voluntary

Voluntary Lien A mortgage is a voluntary lien. With voluntary liens, people agree to have the lien placed against their real or personal property.

Bessie's house is being sold as a short sale. She can expect to ______. Walk away with a large profit Walk away with a small profit Walk away with good credit Walk away with nothing

Walk away with nothing

Which of the following is not a component of waste that needs to be periodically removed by professional septic pumping companies? Greases Oil Solids Water

Water Along with the collected solids, the greases and oils that rise to the top of the tank are periodically removed by professional septic pumping companies and taken to an approved disposal site.

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.

If a property manager's employee is injured on the job, the claim could be paid by Professional liability insurance The property manager The property owner Worker's compensation

Worker's compensation

Ana rents a condo in a complex in which children aren't allowed to play outside after dark, with or without their parents. Is this an example of discrimination? No Only if the curfew is applied to children who are 10 or older Only if the curfew is applied to children who are 10 or younger Yes

Yes

Janice works for a homeowners association in Mesa, and a property owner in the association asks for her help with managing his home as a rental property. Does Janice need a license to help the owner? No, because managing a rental property for one owner doesn't require a license. No, because she works for a homeowners association. Yes, all property managers need a license when working with a homeowners association. Yes, because she's performing property management for an individual owner.

Yes, because she's performing property management for an individual owner.

Using the income approach, determine the value of a property that has a net operating income of $15,000 and a cap rate of 15%. $100,000 $15,000 40% 5%

$100,00 Explanation : Value = income / cap rate 15,000 / 0.15 = 100k

The Arizona Registrar of Contractors has found Darren guilty for the third time of contracting without a license and has levied penalties against him. If each violation has been assigned the maximum fine amount, what is the maximum Darren will be fined? $1,500, plus an 83% surcharge $2,500, plus an 83% surcharge $5,000 $8,000

$2,500, plus an 83% surcharge For repeat offenders of contracting without a license, the AZ ROC assesses a maximum penalty of $2,500, plus an 83% surcharge. They may also have to serve jail time and pay restitution.

Anita's property appraised at $370,000. It is assessed at 40% of appraised value, and the tax rate is 80 mills. What are Anita's semi-annual property taxes? $11,840 $4,875 $5,920 $8,950

$5,920 Divide mills by 1,000 (80 ÷ 1,000 = .08). Assessed value is 40% of appraised value, so multiply .4 by $370,000 = $148,000. Multiply this by the mill rate (.08) to get annual taxes of $11,840. Divide this by two to get semi-annual property taxes of $5,920.

A home was appraised at $360,000, the assessment rate is 80%, and the tax rate is 22 mills. What are the yearly property taxes? $4,932.36 $6,336.00 $6,821.23 $7,920.00

$6,336.00 First multiply appraised value by rate $360,000 x 0.80 = 288,000 and multiply that by mills divided by 1000 288,000 x 22 / 1000 = 6336.00

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? 100% $13,000 $76,000 $80,000

$76,000 To find how much equity she has, subtract the amount she still owes on her mortgage from the appraised value. (80,000 - 13,000 = 76,000)

What is the Arizona real estate recovery fund's maximum per-licensee liability? $10,000 $30,000 $60,000 $90,000

$90,000

The IRS ensures it receives capital gains taxes owed when a non-resident sells real property owned in the U.S. by withholding what percentage of the gross sales price of the property when it's sold? 15% 28% 39.6% It depends on sellers

15%

How many hours of continuing education are active Arizona salespeople required to take?

24

If two parties settle after they've received notification of their share of cleanup responsibility, the ADEQ will provide them with a ______ discount. 10% 15% 20% 25%

25%

Which of the following is the credit score range?

300 and 850

Per FIRPTA, trusts with foreign beneficiaries must withhold what percentage from the sale of U.S. properties? 10% 15% 28% 35%

35%

How many feet are in one mile? 2,400 3,620 4,800 5,280

5,280

How is timeshare ownership typically split? 12 months 52 weeks Half-years Years

52 weeks

Which range of credit scores represents subprime borrowers? 0-100 250-300 580-669 740-799

580-669

How large is a section used in the rectangular survey system? 640 acres 640 miles 640 square feet One acre

640 acres

Which range of credit scores represents the average score for Americans overall? 580 to 669 670 to 739 740 to 799 800 or higher

670 to 739

You're working with buyers who are pre-approved for a loan up to $90,000. If they estimate paying $525 per month toward interest, what interest rate are they assuming? 171% 43% 6% 7%

7% You can find the interest rate by dividing total interest paid by the loan balance. So, $6,300 (which we get by taking $525 per month times 12 months per year) is divided by $90,000.

Jane's offer of $310,000 was accepted, but the appraisal just came in at $300,000. Jane plans to finance $250,000. What's the loan-to-value ratio? 81% 82% 83% 97%

83% LTV Formula : amount financed / appraisal $250,000 / $300,000 = 83%

Arizona judgment liens are valid for a period of 10 years from the original entry date. When creditors want to renew a judgment, they can file a lawsuit or an affidavit of renewal of judgment with the clerk of courts. The affidavit must be filed within ______. 10 days of the expiration of the judgment/prior renewal 30 days of the expiration of the judgment/prior renewal 60 days of the expiration of the judgment/prior renewal 90 days of the expiration of the judgment/prior renewal

90 days of the expiration of the judgment/prior renewal

Which of the following is the best definition of a township?

A 36-square-mile square formed when using the rectangular survey system

Which of these is a central element of an antitrust violation? A contract Customer relationships High stakes Interstate dealings

A contract

Freddie Mac is ______. A government entity A government-sponsored enterprise A private entity A public-private partnership

A government-sponsored enterprise

The local planning and zoning commission is reviewing multiple applications at this week's meeting. Which of the following new developments is likely to be reviewed relative to a mixed-use zoning ordinance? 1 Four patio homes on six acres 2 A high rise with residential, retail, and entertainment space 3 A one-story building with retail and office space 4 A self-storage facility

A high rise with residential, retail, and entertainment space

What's a jumbo loan?

A jumbo loan is a type of conventional loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA) for Fannie Mae and Freddie Mac. (In 2023, single-family mortgages with balances higher than $726,200 in most U.S. counties (and $1,089,300 in high-cost areas) will be considered jumbo.)

Time is of the essence

A phrase in a contract that requires the performance of a certain act within a stated period of time and that no one will unduly delay their completion.

Along with the public report, what must developers send to all reservation holders? A copy of the Landlord and Tenant Act A mortgage application A proposed purchase contract The association president's address

A proposed purchase contract

What type of professional must an investor use to conduct a tax-deferred exchange? A certified public accountant A licensed real estate professional An appraiser or real estate broker A qualified intermediary

A qualified intermediary

When a seller wants to expedite the closing process, what can a buyer offer to address this need? An escalation clause A quick closing Full price or over full price Waive appraisal

A quick closing

Arizona licensee Bradley is looking for direction on a regulation that pertains to licensing requirements. He finds a clarifying document that the ADRE put out for advisory purposes. What did Bradley find? An administrative regulation An advisory bulletin A revised statute A substantive policy statement

A substantive policy statement

How many years of experience does an applicant for a contractor's license in Arizona need to have? A)A minimum of four years' practical or management experience (at least two of which within the last 10 years), with the applicable license classification (or its equivalent), or have a waiver from the AZ ROC B)A minimum of one year of management experience C)A minimum of two years' practical or management experience (at least two of which within the last five years), with the applicable license classification (or its equivalent) D)No experience required

A)A minimum of four years' practical or management experience (at least two of which within the last 10 years), with the applicable license classification (or its equivalent), or have a waiver from the AZ ROC

Which of the following is an example of a loan that originated in the primary mortgage market? ABC Bank loan Fannie Mae loan Freddie Mac loan Ginnie Mac loan

ABC Bank loan

Which phase of the investment cycle is best known for write-offs and, depending on the project, tax credits?

Acquisition

How does Arizona determine the property tax rate for a given property? Add the primary and secondary tax rates Add the state and federal tax rates Multiply the LPV by the assessment ratio Subtract the local tax rate from the state tax rate

Add the primary and secondary tax rates

The four sources of law in the U.S. are constitutional, statutory, case, and _______. Administrative Executive Judicial Unofficial

Administrative The four sources of law in the U.S. are: constitutional, statutory, case, and administrative.

What would trigger the Arizona Registrar of Contractors to investigate a contracting without a license violation? After performing a "sting" operation that nets results It doesn't investigate or punish contractors for contracting without a license. When a complaint is left on the AZ ROC fraud hotline When the state attorney receives a complaint

After performing a "sting" operation that nets results

What's the term for someone who's been given the authority to act on behalf of someone else? Agent Client Mortgage lender Trustor

Agent

What is a title commitment? An agreement by a title insurer to issue the final title insurance policy on the property A request by the buyer to conduct a title search A title insurance policy Proof of ownership

An agreement by a title insurer to issue the final title insurance policy on the property

Who needs to obtain a mortgage loan originator endorsement and register with the Nationwide Mortgage Licensing System and Registry? Any licensed real estate professional who works with investors Anyone who acts as a mortgage loan originator Any real estate professional Any real estate professional who performs mortgage loan origination activities for commercial properties

Anyone who acts as a mortgage loan originator

In an ideal world, a property's value will increase over time, or ______.

Appreciate

Administrative agencies like the Arizona Department of Real Estate create regulations that supplement laws. What are these regulations called in Arizona? Arizona Administrative Code Arizona Compliance Rules Arizona Revised Code Arizona Statutory Compilation

Arizona Administrative Code

Also known as "the commissioner's rules," the rules in the ______ hold the weight of the law without actually being the law. Arizona Administrative Code Arizona Revised Statutes Arizona Statutory Code Department of Real Estate Regulatory Handbook

Arizona Administrative Code

After owning a tattoo parlor for 12 years, Gilbert sold it. Gilbert's accountant calculated a $46,000 capital gain. Which one of the following statements is true? A)Gilbert will pay tax at the ordinary tax rate on this capital gain. B)Gilbert will pay tax on the gain at the long-term capital gains rate. C)The long-term capital gains tax rate is more than the tax rate on ordinary income. D)This is considered a short-term capital gain.

B) Gilbert will pay tax on the gain at the long-term capital gains rate.

Richmond has been a good homeowner and always paid his bills on time, but he's unexpectedly diagnosed with a serious illness. As time goes by, he can no longer work, his bills pile up, and he's in default on his home loan. He knows his lender will foreclose soon. Richmond desperately wants to keep his home, so what's his most likely option in this scenario? Bankruptcy Deed in lieu of foreclosure Loan modification Short sale

Bankruptcy Richmond's overwhelming debt makes bankruptcy the most viable option. It will stop a foreclosure, and he might be able to keep his home. A lender is unlikely to agree to a loan modification since Richmond currently has no income.

Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the property divided? Barbie and Midge each own 50%. Barbie and Skipper each own 50%. Barbie, Midge, and Ken's heirs each own one-third. Barbie owns two-thirds, and Midge owns one-third.

Barbie owns two-thirds, and Midge owns one-third.

Which deed type may come with or without covenants of warranty? Bargain and sale Full covenant and warranty Quitclaim Referee's

Bargain and sale

Jackson Elementary School is undergoing some major renovations during the summer while school is out of session. The renovation crew has a detailed list of requirements for the disposal and drainage of wastewater and sewage. These requirements are likely part of the ________ with which the renovators must comply. Building code Deed restriction Safety laws Zoning regulation

Building code

How does a lender in the primary mortgage market earn money when a loan is originated? By charging loan origination fees By preparing tax records By purchasing loans By setting interest rates

By charging loan origination fees One way that a primary mortgage market lender can earn money is by charging loan origination fees.

After a trustee's sale, the title is conveyed ______. By the former owner by signing a foreclosure deed as grantor By the lender/beneficiary by recording a beneficiary deed with the county By the trustee by recording a trustee's deed with the county By the trustee with a trustee's certificate

By the trustee by recording a trustee's deed with the county

Which legislative act prohibits certain types of electronic communication? CAN-SPAM NO-SPAM SPAM-CAN SPAM-JAM

CAN-SPAM

Gregory has been bombarded with emails from a local real estate licensee. He keeps opting out of these emails, but they just keep coming. What federal law is the licensee possibly violating? Anti-Spam Act of 2000 CAN-SPAM Act of 2003 Do Not Spam Act of 2003 Junk Email Prevention Act of 2005

CAN-SPAM Act of 2003

What are the steps in a proration? Calculate the annual rate and divide by 12 to get the monthly rate. Buyer pays six months; seller pays six months. Calculate the daily rate, then multiply rate by the number of days in the proration period. Divide an annual bill by two, and charge each party half. Multiply the daily rate by the number of days in the month, and divide by 30.

Calculate the daily rate, then multiply rate by the number of days in the proration period

______ is called the "silent killer" because it's odorless, tasteless, and deadly. Carbon monoxide Formaldehyde Radon VOCs

Carbon monoxide

Substantive policy statements serve to ______. Amend existing regulations regarding real estate activities and licensees Clarify the ADRE's current approach to specific regulations Establish new regulations relating to real estate activities Instruct the ADRE in governing real estate activities and licensees

Clarify the ADRE's current approach to specific regulations

In the sales comparison approach, which of these are selected and evaluated both quantitatively and qualitatively against the subject property? Alternatives Comparables Conformables Substitutions

Comparables

What does the metes and bounds system use to develop a property's legal description? Compass headings and directions Plat references Principal meridians and base lines Townships and sections

Compass headings and directions

The residential contractors recovery fund has a maximum payout limited to $200,000 per ______. Consumer Contractor license Transaction Year

Contractor license

Not only does ______ close you off from all of the rich and interesting things that other cultures have to offer, but as a real estate professional, it poses a great risk to your real estate practice. A multicultural perspective Cultural insensitivity and bias Respect for differences among cultures The Great American Melting Pot

Cultural insensitivity and bias

Overdraft occurs when groundwater is pumped faster than it can be replenished.

DEF

Property manager - Someone who manages real estate for another for compensation; duties include generating income, budgeting, marketing analysis, advertising, and negotiating leases.

DEF

hectare (10,000 square metres, 2.5 acres)

DEF

What acronym can be used to remember factors that influence real property value? CRUD DUST GIVEN OLD CAR

DUST Demand Utility Scarcity Transferability

The document that establishes a planned community is the _______.

Declaration The declaration is the document used to establish a planned community.

In addition to its potential health hazards, what is a common consequence of a brownfield's presence in a community? Decreased property values Decreased state regulatory oversight Increased interest in development Increased wetlands and groundwater reserves

Decreased property values

Which of the following is an instrument of conveyance(transferring/transporting)? Deed Mortgage Promissory note Title insurance policy

Deed A deed is a method of conveying real property from one party to another. A deed should be recorded to protect the parties' interests.

Which of the following is an alternative to foreclosure?

Deed in lieu of foreclosure

Juan is an Arizona licensee who is speaking with his broker about procuring additional agreements. What are they discussing? Entering into a second contract to buy/sell property with a party who's already under contract with another licensee Legal ways to break an existing contract with another licensee Legal ways to convince a party to modify an existing contract with another licensee Working for more than one brokerage

Entering into a second contract to buy/sell property with a party who's already under contract with another licensee

In Arizona, which of these groups of professionals isn't listed on the NMLS to validate their license status? Escrow agents Mortgage bankers Mortgage brokers Mortgage loan originators

Escrow agents

The Groundwater Management Act of 1980 defined two categories of wells. What are they? Exempt and non-exempt Federally regulated and state-regulated Those with grandfathered rights and those without Those with Type 1 rights and those with Type 2

Exempt and non-exempt

Condominium ownership rights are ______, which means the right to use and possess. Fee simple Freehold Leasehold Life estate

Fee simple

When a consumer suffers damages resulting from the real estate-related activities of an Arizona licensee, the consumer has ______ year(s) from the time of the incident to file legal proceedings against the licensee. Five One Three Two

Five

What's the minimum length of time Arizona designated brokers are required to keep transaction documents? Five years One year Six months Three years

Five years

The Jacksons are having trouble paying their mortgage but expect their financial situation to recover within a few months. They go to their lender and work out a deal that includes a ______. The temporary suspension of loan payments works for everyone in this situation. Forbearance Foreclosure Forfeiture Forgiveness

Forbearance The lender agrees to give the Jacksons a forbearance, temporarily suspending payments so they can get back on their financial feet and resume paying on the loan.

In terms of function and purpose, which of the following is most similar to Fannie Mae?

Freddie Mac

As an Arizona licensee, you can legally enter into an additional employment agreement with a represented party if that party signs the state-required acknowledgment 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. Since it's legal, a civil suit isn't possible. There must be fewer than 14 days remaining on the first contract. There must be fewer than 30 days remaining on the first contract.

Although it's legal, a civil suit is still possible.

Tricia wrote an offer to purchase Ziggy's vacant lot. She intended to borrow $55,000 of the $95,000 purchase price at an interest rate of 5.75%. She applied for the loan but wouldn't cooperate with the lender to provide the required documentation. Tricia subsequently used the loan contingency to terminate the contract. Which of these is true? Even though Tricia failed to take the steps necessary to get her loan, she's within her rights to terminate. Only the seller can terminate a contract using the loan contingency. The contingency wasn't realistic as written, and Ziggy shouldn't have accepted it. Tricia failed to act in good faith to try to get her loan, so she's in breach of contract.

Tricia failed to act in good faith to try to get her loan, so she's in breach of contract.

When a property is sold at an Arizona non-judicial foreclosure, the auction is called a ______. Beneficiary foreclosure auction Deed of trust foreclosure Sheriff's sale Trustee's sale

Trustee's sale

One square mile is how many acres?

one square mile = 640 acres

Septic System

"A private sewer system in which a pipeline connecting to the structure also connects to a drain and septic tank. Ex. Cally's septic system backed up when untreated liquid water clogged the absorption field of the system.

certified general real estate appraiser

"An appraiser certified to perform appraisals for any time and value of property for federally related real estate transactions. Ex. Because the property was valued at over $1 million and was part of a federally related transaction, only a certified general real estate appraiser could be used to perform the appraisal.

certified residential real estate appraiser

"An appraiser certified to perform appraisals for one- to four-unit dwellings for federally related real estate transactions. Ex. Because the transaction was federally related, a certified residential real estate appraiser must be used. If it had been a commercial property, only a certified general real estate appraiser could be used.

Real Estate Appraiser

"An appraiser is someone who, for a fee, estimates the value of real property. If the property is in any way related to a federal transaction of $250,000 or more, the appraiser must be licensed or certified to perform the appraisal. Ex. In most real estate transactions, the buyer will hire an appraiser to provide a professional opinion of value. Often lenders will require an appraisal before lending money on a property, to protect the lender's interests by making sure the value is there.

Timeshare interest

"Another term for owning a timeshare; also known as ""interval ownership,"" ""interval ownership interest,"" and ""vacation ownership interest"" Ex. Sam bought a timeshare interest at a resort in Cancun so he could soak up some sun and avoid the cold for a couple of weeks every January.

Ed is a licensee who's always eager to help his clients in any way he can. One of his current clients has received an offer that will give her a tidy profit on her home. She tells Ed she's worried about her tax liability when the home sells. What can Ed tell her that will be most helpful? "I believe you'll be allowed to exclude some of that profit from your taxable income, but you should definitely consult with a tax professional to find out the best way to handle it." "I wish I could help you with that, but as a real estate licensee, I'm not allowed to offer tax advice." "The Taxpayer Relief Act of 1997 will help you avoid paying any taxes on the profit you make from selling your home as long as you've been living there for the last couple of years." "You'll be allowed to exclude as much as $250,000 of capital gains from the sale of your home if you're filing as a single taxpayer. It would be as much as $500,000 if you were married and filing jointly."

"I believe you'll be allowed to exclude some of that profit from your taxable income, but you should definitely consult with a tax professional to find out the best way to handle it."

Your client Janine just bought a house in a neighborhood that's serviced by a private water company, Nutri-Water. "How much do their services cost?" she asks you. What should you say? "All private water companies in Arizona must use recycled water, and the prices are set by the state government." "Since private companies all get their water from the Colorado River, the federal government sets these prices." "This is a good question for a water rights attorney! Let me get you the number of a good one." "Water companies' prices vary greatly, and may depend on where they get their water."

"Water companies' prices vary greatly, and may depend on where they get their water."

Your co-worker, a first-year licensee, tells you, "I have a client with a really thorny water rights problem. It involves a contested claim to Colorado River water, and another one over pumping groundwater. I don't know how to help him." Which of the following pieces of advice would be best to give? "Colorado River water has all been claimed, so you can tell her that there's nothing she can do." "She should be able to keep pumping groundwater without a problem, as long as she's been doing so for the last five years." "Since Colorado River water is involved, this is a federal issue. Contact someone at the federal level for help." "You can research and clarify her water right claims, but for anything else, get a water rights attorney involved."

"You can research and clarify her water right claims, but for anything else, get a water rights attorney involved."

Tom is an Arizona homeowner who had a judgment lien levied against him, but the Arizona Homestead Exemption will allow him to exempt part of his primary residence from seizure for payment of debts. What is the maximum amount Arizona homeowners can exempt? $150,000 for an individual and $300,000 for a married couple $250,000 for an individual or married couple $75,000 for a married couple $75,000 for an individual and $150,000 for a married couple

$250,000 for an individual or married couple

How much personal money can an Arizona broker have in a trust account? $20,000 $300 $3,000 $5,000

$3,000

AZ ROC officers are paid no more than ______ for each day they perform commission business. $20 $30 $40 $50

$30

Buyers of timeshares in Arizona may cancel their purchases within how many days of signing the contract? 10 days Five days Seven days Two days

10 days

John and Amy purchased a builder's home warranty when they bought their home. They have found structural damage that could be a detriment to their home. On average, how many years does a home warranty cover structural damage? 10 years Five years One year Three years

10 years

The Jacobson Corporation owns and operates an Arizona retail grocery store. What assessment ratio will the county use to calculate Jacobson's property taxes? 10% 15% 18% 20%

18% This would be classified as a commercial, which is a class one property with an assessment ratio of 18%

Bob just closed on his investment property. He's already identified a replacement property that he'll be exchanging into by using a 1031 tax-deferred exchange. How many days does he have to close on his replacement property? 180 30 45 60

180

Sara's property management agreement contained an automatic renewal provision. How many days' notice does her property management firm need to give her before the automatic renewal date? 15 30 60 Seven

30

In Arizona, a temporary designated broker can be appointed when a designated broker will be absent, but only up to a certain amount of time. What is that maximum time period? 14 days 30 days 90 days Six months

30 days

Anderson Frost has received a notice that the Arizona Real Estate Commission has denied his application for public report. He is certain that a mistake must have been made and decides to appeal the decision. How long does Anderson have to file his objection? 14 days from the original filing date 20 days from receipt of the denial 30 days from receipt of the denial Two months from the original filing date

30 days from receipt of the denial

Upon the termination of the property management agreement the property management firm must return all owner monies remaining in property accounts except for money needed to pay obligations related to the property during the term of the property management agreement. The money must be returned to the owner within _____. 14 days 14 days, excluding holidays 30 days 35 days

35 days Once a property management agreement is terminated, the property manager has 35 days to reimburse any money remaining in the property management accounts maintained for the owner, except for money needed for unpaid obligations incurred during the property management agreement term.

John wants to do a 1031 tax exchange with a property he just sold. How many calendar days does he have to identify a new property for the exchange? 180 30 45 60

45

How much notice must an Arizona landlord give a tenant before entering their dwelling unit for routine maintenance? 24 hours 48 hours 72 hours None, the landlord owns the property and may enter at any tim

48 hours

In Arizona, how long is "reasonable notice" before a landlord can enter a property? 24 hours 48 hours 72 hours Landlords can't enter an occupied unit.

48 hours

In Arizona, how long must electronic real estate transaction files be kept with the broker? Five years One year Seven years Three years

5 years

Which of the following statements regarding trust funds in Arizona is FALSE? A broker may allow an unlicensed person in the direct employ of the broker to be a signer on the property management trust account and to deposit funds into the trust account. A broker may have up to $3000 of their personal money in a trust account. A broker may use money in the trust account to invest in a REIT as long as they share the profits with the property owners. Brokers should keep deposit receipts or other evidence of deposit, noting the transaction date, amount, and representative party.

A broker may use money in the trust account to invest in a REIT as long as they share the profits with the property owners.

Sole Proprietorship

A business owned by one person

Which of the following describes loan-to-value ratio?

A calculation that describes the amount being borrowed compared to the value of a property

What's contained in a UCC security agreement? A complete description of the personal property used as collateral A list of personal character references A list of security services provided under the contract A signature of an authorized representative of the lender

A complete description of the personal property used as collateral \ While the Uniform Commercial Code doesn't generally apply to real estate transactions, it does apply when personal property is used as collateral. A UCC security agreement must include a complete description of that personal property.

Timeshare

A condominium-type property that is occupied for short periods by multiple unrelated individuals. These individuals may own real interest in the property or simply the right to use the property for specific times and duration. Ex: Helen bought a time share in Oregon so she can visit her daughter for two weeks a year.

Rhonda is an unrepresented buyer who's purchasing Tony's townhome. Gary represents Tony in the sale of his property. What's Rhonda's relationship to Gary?

A customer

If Freddie Mac didn't exist, which of the following would be a likely effect? A decrease in interest rates A decrease in the amount of credit available to loan originators An increase in the amount of credit available to loan originators Loans would be easier to obtain

A decrease in the amount of credit available to loan originators

Which of these choices is NOT part of the operation plan that CAGRD has to submit every 10 years? A detailed report on how groundwater is used inside INAs Analyses of potential replenishment storage facilities Descriptions of facilities to be used for water replenishment Estimates of current and projected groundwater replenishment obligations

A detailed report on how groundwater is used inside INAs

Proration - DEF ON SLIDE

A division of expenses and income between buyer and seller according to who owns the property before and after the sale date; the seller and buyer each pay for items, like taxes, and insurance, or receive income from the property only for the days they actually own the property.

Woody has a lease with an option to buy on his penthouse apartment. Each month, 20% of his lease payment goes toward ________. A down payment toward the purchase price Maintenance and utilities Property taxes The option fee

A down payment toward the purchase price

What type of capital gain is considered short term? A gain on a property owned 10 years or less A gain on a property owned five years or less A gain on a property owned one year or less A gain on a property owned two years or less

A gain on a property owned one year or less

Which of the following raises carbon monoxide levels in a home? A detached garage A gas furnace An electric dryer An electric stove

A gas furnace

What's a deficiency judgment? A judgment that allows the lender to collect the difference from the borrower if the foreclosure sale does not satisfy the debt. The borrower defaults on the financial obligations in the promissory note. The mortgage lien is enforced. The net proceeds of a real estate transaction don't satisfy the payoff amount of mortgages on the property.

A judgment that allows the lender to collect the difference from the borrower if the foreclosure sale does not satisfy the debt.

Jacob just signed a lease for his brokerage firm. The lease agreement includes taxes as part of the base rent. What kind of lease did he sign? A gross lease A modified gross lease A residential lease A triple net (NNN) lease

A modified gross lease A modified gross lease, or MG, includes one, two or all three of the nets in the base rent. They're not billed separately.

What's a participation certificate? A mortgage-backed security issued by Fannie Mae A mortgage-backed security issued by Farmer Mac A mortgage-backed security issued by Freddie Mac An advance made by the Federal Home Loan Bank

A mortgage-backed security issued by Freddie Mac

Rescission can be ______ agreement to cancel a contract. A mutual An ill-advised An unlawful A tenuous

A mutual a rescission normally requires the buyer to return the property (title) to the seller and the seller to return the funds received from the buyer. ( Basically cancelled contract )

Robin has great credit and was able to secure a loan for her ocean-side dream home. Her 30-year, fixed-rate loan is for an amount that's above conventional loan limits. What type of loan does Robin have? A conforming Freddie Mac loan A government loan An FHA loan A non-conforming loan

A non-conforming loan

What is an association in regard to subdivisions? A city commission that determines where a subdivision can be built. A group of like-minded residents who enjoy a specific activity. A nonprofit corporation that residents pay a fee to for the purpose of maintaining subdivision common amenities. The state agency that governs land use.

A nonprofit corporation that residents pay a fee to for the purpose of maintaining subdivision common amenities

In Arizona, before unsubdivided land can be sold, what must owners send to the real estate commissioner? A copy of their articles of incorporation A copy of their business license A notice of intent to sell or lease Their federal identification number

A notice of intent to sell or lease

What is a bound? A line that runs east to west A line that runs north to south A physical feature that defines the boundaries of the land The direction and distance of a line forming the boundary of a property

A physical feature that defines the boundaries of the land

In order to maintain their license, Arizona employing brokers must have ______. A business partner A minimum of three employees An office manager A place of business

A place of business In order to maintain their license, employing brokers must have a designated place of business. The office needs a sign clearly displaying the business name, the broker's name, and the type of license the broker holds.

Cameron, a broker with a firm in Yuma, is reconciling his clients' trust account, and is about to perform the reconciliation process required by the Arizona Department of Real Estate. To complete the reconciliation, he needs to gather his bank statement, his journal of receipts, disbursements and deposits, and ______. A reconciliation report His business expense report His checkbook register His tax statement

A reconciliation report

Who does the Arizona Registrar of Contractors consider to be a qualifying party? An owner with 10% stock in the company Any corporate officer, including minors A real estate licensee A regularly employed person with the necessary experience, knowledge, and skills

A regularly employed person with the necessary experience, knowledge, and skills

What's needed for proper recordkeeping? A system Color-coding Electronic backup Filing tabs

A system Any system-provided it's secure and easy to use-is fine, but having a system is essential.

Your buyer client wants to add a six-foot privacy fence around the perimeter of the property line. What type of permit may be required for this project? A building permit A landscaping permit A zoning permit No permit

A zoning permit Fencing less than seven feet tall requires a zoning permit, and fencing taller than seven feet requires a building permit.

The property manager's primary responsibility to an owner is to ______. Achieve the highest possible return on the owner's investment Achieve the lowest possible vacancy rate Provide all required reports Supervise maintenance and repair tasks

Achieve the highest possible return on the owner's investment

Which of the following types of properties may be eligible for purchase by Freddie Mac? A commercial investment property A duplex used as a second home A single-unit commercial space A triplex purchased as a primary residence

A triplex purchased as a primary residence Eligible property types include a primary residence that is a single-family home, condo, or manufactured home or properties with up to four units, single-unit second homes, and residential investment properties.

Kathryn and Megan, neighbors in a rural Arizona area, agreed over coffee that Kathryn would sell her ranch to Megan. They agreed on the sale terms, and Megan gave Kathryn a check for $10,000 to hold as earnest money. Which of these statements is FALSE? A) Because Kathryn accepted the earnest money check from Megan, the agreement between them is enforceable. B)If the sale proceeds without dispute between the parties, it's a legal conveyance of the property. C)Since it's not in writing, the agreement between Megan and Kathryn is voidable by either party. D)The statute of frauds requires that real estate contracts be in writing to be enforceable, so Megan can't enforce her agreement with Kathryn in case of a dispute.

A) Because Kathryn accepted the earnest money check from Megan, the agreement between them is enforceable.

In Arizona, foreclosures are usually conducted non-judicially because ______. Agreement to do so is given by the power-of-sale clause in the deed of trust Lenders prefer to give borrowers the right to reinstate rather than the right to redeem The deed of trust prohibits judicial foreclosure The trustee's sale typically garners a higher price for the property than a sheriff's sale

Agreement to do so is given by the power-of-sale clause in the deed of trust

Which of the following is considered an ineligible property type for a Fannie Mae-purchased loan? Agricultural property Detached residence on a lot Planned unit development project Semi-detached residence on a lot

Agricultural property An agricultural property isn't eligible for a Fannie Mae loan purchase.

Which of the following duties do you owe to your customers? Accounting Confidentiality Loyalty Obedience

Accounting

As the owner of a rental property, Julia is likely to delegate which of the following tasks to a property manager? Addressing maintenance and inspection issues Maintaining insurance Maintaining the property in a condition that meets all state requirements Setting up and maintaining a financial reserve

Addressing maintenance and inspection issues

Lucy inherited some land. When she made the drive to check on it about two years later, she found that, to her surprise, someone was living in a small cottage on that property. What's this an example of? Adverse possession Closed possession Notorious possession Registered possession

Adverse possession

A(n) _____ septic system mixes air into the tank's water to speed up the waste breakdown process. Aerobic unit Drip irrigation Mound system Sand filter

Aerobic unit

FAR, or floor-to-area ratio, includes ______. All of the habitable structures on a lot All structures, including habitable structures and parking structures, but not parking lots None of the habitable structures on a lot The area within parking lots or parking structures

All of the habitable structures on a lot

Arizona Administrative Code rules apply to what sort of real estate advertisements? All of them Online only Print only Private only

All of them

What is a proration? A legal process for obtaining interest in real property An amount apportioned according to use An insurance rider A type of transfer tax

An amount apportioned according to use

What is an airport influence area?

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 overflight

What's the main difference between an assured and an adequate water supply? An adequate water supply must be proven before building in an AMA. An assured water supply is the standard for many areas outside AMAs. An assured water supply is required when using Colorado River water. An adequate water supply is required when using mostly groundwater. An assured water supply must be proven before building in an AMA. An adequate water supply is the standard for many areas outside AMAs. These two concepts are exactly the same. They go by different names depending on whether they're required in an AMA or are outside of an AMA.

An assured water supply must be proven before building in an AMA. An adequate water supply is the standard for many areas outside AMAs.

Which of these statements about an equitable property interest is true? An equitable interest in property is the same as holding legal title. An equitable property interest equates to ownership. An equitable property interest or equitable title to a property refers to a borrower's future rights. Buyers obtain an equitable interest in a property when any mortgage loan is paid in full.

An equitable property interest or equitable title to a property refers to a borrower's future rights.

A person performing real estate activities under the judgment or order of a court, such as a trustee in a bankruptcy, is _______. An exception to the real estate licensing requirement Required to have a broker license Required to have at least an associate broker license Required to have at least a salesperson license

An exception to the real estate licensing requirement

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 Competitive analysis Market analysis Property analysis

Analysis of alternatives The analysis of alternatives is similar to a highest and best use analysis that an appraiser would use. Both focus on hypothetical values.

What is a reverse exchange? A homeowner finds and closes on a house and then decides to sell their existing home. A homeowner sells a property and then finds and closes on a new property. An investor finds and closes on an investment property and then decides to immediately sell another investment property. An investor sells a property and then finds and closes on another investment property.

An investor finds and closes on an investment property and then decides to immediately sell another investment property.

What is a syndicate? A business organization owned by two or more partners An illegal organization that is involved in criminal activities An organization with many investors who jointly participate in a real estate investment A temporary organization formed by two or more parties to invest in real estate

An organization with many investors who jointly participate in a real estate investment

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? A consumer reporting agency Another rental housing owner or manager An unaffiliated third party A police officer

An unaffiliated third party

What does a designated broker who's going to be absent for a period of time have the power to do? Appoint a temporary designated broker Bestow temporary brokers' licenses on licensed or unlicensed persons Defer designated broker actions until the leave of absence ends return Empower a licensed or unlicensed branch manager to take on designated broker duties

Appoint a temporary designated broker

Which of the following refers to rights that come with the land? Adverse possession Appurtenance Lis pendens Servient

Appurtenance

Bailey just graduated from college with a degree in construction management, and he wants to apply for a contractor's license. Where should he submit his application? Arizona Board of Construction Arizona Board of Technical Registration Arizona Power Authority Arizona Registrar of Contractors

Arizona Registrar of Contractors

Melanie, a licensed contractor and owner of Beat the Heat Decks and Pools, is looking for education programs about agency rules, regulations, and policies for her employees. What entity offers these types of programs? Arizona Department of Real Estate Arizona Heating Department Arizona Landscaping Regulators Arizona Registrar of Contractors

Arizona Registrar of Contractors

The Arizona law governing timeshares is the ______. Arizona Condominium Act Arizona Homeowners' Association Act Arizona Timeshare Law Arizona Timeshare Owners' Association and Management Act

Arizona Timeshare Owners' Association and Management Act

Derek is the designated broker for his brokerage. The firm recently opened a branch office. Derek's next chore is hiring a branch office manager. Who will he be able to consider for the position? Arizona licensed brokers Out-of-state licensees Pre-licensing students Unlicensed persons

Arizona licensed brokers

Written cooperation agreements with out-of-state brokers are between the ______ and the ______. Arizona licensee's broker, out-of-state licensee Arizona licensee's broker, out-of-state licensee's broker Arizona salesperson, out-of-state licensee Arizona salesperson, out-of-state licensee's broker

Arizona licensee's broker, out-of-state licensee's broker

What are improvements with regard to property? Another name for a building permit Artificial attachments to land that include items such as fencing, buildings, and walkways Natural fixtures that are part of the land and that enhance its value The right to increase the value of a property

Artificial attachments to land that include items such as fencing, buildings, and walkways

Which of the following would a home inspector note as a defect in a report due to its link to lung cancer? Asbestos tiles in a basement Cedar shake siding Copper water pipes Old linoleum tiles in a kitchen

Asbestos tiles in a basement

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. File a court action with the superior court requesting the right to foreclose. File a Notice of Demand with the county where Betty's property is located. Send Betty a notice of acceleration, demanding full payment of the loan and noting foreclosure as the outcome if she fails to comply.

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

Which of the following involves the transfer of the lease contract from the current tenant to another person? Assignment Lease transfer No-fault lease Sublease

Assignment

In a planned community, the nonprofit corporation or unincorporated association of owners to which members pay fees is called the ______. Association Firm Organization

Association

In Arizona, how is a judicial foreclosure property sold? At a court auction At an auction conducted by the lender's representative At a sheriff's sale At a trustee's sale

At a sheriff's sale

According to national standards for measuring square footage of a dwelling, which space should be included? Attached accessory apartment Garage Unfinished attic Unfinished basement

Attached accessory apartment

One of the primary reasons for making Arizona's required disclosures is to _____. Avoid fraud Formalize agency relationships Provide proof of completion for license renewal Satisfy ADRE's record keeping standards

Avoid fraud

The National Association of REALTORS® Board of Directors enacted MLS Statement 8.0. What's its more common name? Clarity in Cooperation Clear and Cooperative Clear Cooperation policy Cooperative Clarity

Clear Cooperation policy

Which of these best describes boot and it's tax treatment? Boot is equal to the amount of capital gains on which the taxpayer would have owed taxes if not for the 1031 exchange. Boot is equal to the difference in value between the first property in a string of 1031 exchanges and the last property in the series. Boot refers to any cash received by an investor from the sale proceeds in a 1031 exchange. Boot is taxable. Boot refers to the fees paid to a qualified intermediary in a 1031 exchange. The investor may deduct these fees.

Boot refers to any cash received by an investor from the sale proceeds in a 1031 exchange. Boot is taxable.

The ______ clause protects the borrower's assets that aren't part of the voluntary lien from a deficiency judgment in case of foreclosure. Cross-default Exculpatory Non-recourse Subordination

Exculpatory

In what type of market could the buyer's strategy be to offer 10% below list price? Cold market Hot market Neutral market Secondary market

Cold market

What kind of real estate advertisement in Arizona features only a phone number or address as identifying information? Bland ad Blank ad Blind ad Brokerless ad

Blind ad

Why might appraiser Joan have to reconstruct the operating statement when determining NOI? Because appraisers sometimes "destabilize" the profits by including information from the market as well as the actual mortgage amount Because expenses listed by the accountant aren't always what the appraiser will use In order to confirm that the accountant's figures regarding operating expenses are correct So that the appraiser can adjust expenses to support the value requested by the client

Because expenses listed by the accountant aren't always what the appraiser will use

Which of the following documents is an example of a promissory note? Borrower Keesha just signed a document that states that she pledges to pay back her mortgage loan of $310,000. First Financial drafted a document for a borrower that includes, among other things, an acceleration clause. The document that Darren is about to sign includes an acceleration clause. The document that Sandra will sign also includes spaces for her lender's and her trustee's signatures.

Borrower Keesha just signed a document that states that she pledges to pay back her mortgage loan of $310,000. Promissory Note : is a legally binding promise from a borrower to repay a loan to their lender.

Which loan is a type of gap financing that is used temporarily until the consumer can obtain permanent financing? Blanket loan Bridge loan Reverse mortgage Wrap-around mortgage

Bridge loan

After switching careers, Alice just graduated from culinary school and is looking to purchase a house. Until she gets her feet wet with her new job, she knows the cost of living with her mortgage is going to be tight. Which mortgage might help her manage her expenses each month? Adjustable-rate Amortized Budget Straight

Budget Budget mortgages help borrowers "budget" their expenses since the interest, principal, taxes, and insurance are all included in the monthly payment.

Which source of law establishes legal precedent based on a court's interpretation of other sources of law? Administrative law Case law Constitutional law Statutory law

Case law

Which of the following units of measurement are used when determining volume? Centimeters cubed Front feet Linear feet Square feet

Centimeters cubed

A groundwater contamination site cleanup effort is considered to be successful _____. Even if the water still isn't drinkable. Once the area is no longer being actively polluted anymore. Only when the water is drinkable again. The cleanup effort comes in under budget.

Even if the water still isn't drinkable.

The Appraiser Qualifications Board has set a minimum of 200 hours of appraiser education for which category of qualified appraiser? Apprentice real property appraiser Certified general real property appraiser Certified residential real property appraiser Licensed residential real property appraiser

Certified residential real property appraiser

Licensed childcare facilities, nonprofit residential facilities, and licensed nursing homes are all considered which type of Arizona property classification? Class four Class one Class three Class two

Class four

Margaret has received her Closing Disclosure from the lender. To best protect her interests, what should she do with it? Compare it to the Loan Estimate. File it with her mortgage papers. Take it to the closing. Use the information to compare loan costs with those of other lenders.

Compare it to the Loan Estimate Margaret should compare the Closing Disclosure figures with those on the Loan Estimate to ensure that no undisclosed changes in loan costs have been made.

Eminent domain is the government's power to take private land for public use. What is it called when the government actually seizes someone's property under eminent domain? Condemnation Court-ordered partitioning Escheat Regulatory taking

Condemnation

Which of the following is NOT true about condominium ownership? A condominium unit can be owned in severalty, as joint tenants, as tenants in common, or as tenants by the entirety. Condominium ownership is ownership of personal property. Owning a condominium unit brings fee simple ownership rights. Subletting rights are allowed in some instances.

Condominium ownership is ownership of personal property. Condominium ownership is ownership of real property, not personal property.

A ______ is a mixed-use building where the developer retains ownership of the 20% of the building used for commercial purposes and allows the remaining 80% to operate as a cooperative. Condominium Condop MUD PUD

Condop

What's an antitrust violation's central element? Conspiracy Fraud Greed Profit

Conspiracy

Which of the following contamination sites would be given the highest priority by the Water Quality Assurance Revolving Fund? A spill in a remote part of the desert A spill near a condemned high school building Contamination within a densely populated neighborhood Groundwater contamination of a reservoir that supplies water to a local farm

Contamination within a densely populated neighborhood

How is the residential contractors recovery fund funded? Arizona Registrar of Contractors membership dues Consumer fees Contractor fees Real estate license fees

Contractor fees The fund is funded by contractor license applicants. Licensees renewing their license every two years will pay an assessment of no more than $600, which will be deposited into the fund and held in trust.

Which of the following is true regarding cooperatives? A cooperative is an individual venture. Cooperative ownership is considered personal property. Cooperative shareholders don't have to pay maintenance fees. Cooperative shareholders own the land, building, rights, and interests to their units.

Cooperative ownership is considered personal property.

Which approach to value measures the cost to produce a property, including land acquisition and construction costs? Cost approach Income approach Indirect approach Sales comparison approach

Cost approach

With the cost approach to value, what is the reproduction cost? Cost of the materials used in construction Cost to build a functionally equivalent improvement Cost to build an exact replica of the subject, with the same materials and deficiencies Cost to buy the property

Cost to build an exact replica of the subject, with the same materials and deficiencies The reproduction cost is the cost to build an exact replica of the subject with the same materials and deficiencies, as opposed to the replacement cost, which is the cost to build a functionally equivalent improvement.

In which method of involuntary alienation does a court decide how the proceeds from the sale of land owned by tenants in common will be distributed? Court-ordered partition of property Eminent domain Foreclosure Regulatory taking

Court-ordered partition of property

What does CC&R stand for?

Covenants, conditions, and restrictions

When a property management agreement is terminated, the property management firm must provide the owner with all contracts and keys ______. Immediately Within 30 days Within 60 days Within seven days

Immediately

Jarod bought a home in which he has all the rights of ownership, including the right to sell and to convey the property to heirs at his death. What type of fee simple estate is this? Fee simple absolute Fee simple defeasible Fee simple determinable Fee simple subject to a condition

Fee simple absolute

What do laws use as their guiding principles? Community morals Generally accepted ethics Laws from other jurisdictions Personal morals

Generally accepted ethics

A trustee is holding title to Cassandra's house until the loan is paid in full. Which type of security instrument was used? Deed of trust Mortgage Mortgage and deed of trust Promissory note

Deed of trust Three parties are involved when a deed of trust is used: the lender (beneficiary), the borrower (trustor), and a neutral third party (trustee). The trustee holds the title on loans when a deed of trust is used.

Which of the following is a type of encumbrance? Counter-offers Deed restrictions Improvements Options

Deed restrictions An encumbrance is a limit on how an owner can use real estate.

1 furlong = 660 feet or 220 yards

Def

Acre is 43,560 square feet

Def

Fee simple ______ includes two categories, which can be distinguished in part by the way in which ownership may be regained by the original grantor of the estate. Defeasible Defendable Determinable Distinguishable

Defeasible

What are the first symptoms of carbon monoxide poisoning? Dizziness and nausea Heart palpitations Ringing in the ears Sore throat

Dizziness and nausea

Darren and Natalie are first-time buyers who have decided to purchase a newly built townhouse. Their agent, Jenner, tells them that the builder must provide a one-year home warranty. Which of the following conditions is most likely true? Darren and Natalie are getting a USDA rural development loan. Darren and Natalie are using an FHA-insured loan. Darren and Natalie are using conventional financing. Darren and Natalie made an all-cash offer.

Darren and Natalie are using an FHA-insured loan. All loans that are either FHA-insured or VA-guaranteed require that the builder provide a one-year home warranty to protect both the buyer and the home's value

What's the term for a charge that a transactional party must pay at closing? Balance Credit Debit Mortgage

Debit

Which agency enforces Title II under the Americans with Disabilities Act of 1990, when it relates to state and local public housing, housing assistance, and housing referrals? Department of Civil Rights Department of Equal Opportunity Department of Housing and Community Development Department of Housing and Urban Development

Department of Housing and Urban Development

Which of these entities is responsible for enforcing real estate license law in Arizona? Arizona Association of REALTORS® Board of License Regulation Department of Real Estate Real Estate Advisory Board

Department of Real Estate In Arizona, the Department of Real Estate enforces real estate license law and regulations governing licensees' activities.

In Arizona, who is expected to establish a system for monitoring compliance with statutes, rules, and the brokerage's policies and systems? Brokerage office managers Designated brokers Employing brokers Licensees

Designated brokers

Which of the following statements about Arizona clients' trust accounts is true? Arizona brokers can open trust accounts at out-of-state financial institutions. Broker companies that perform property management functions and collect security deposits must have at least two trust accounts. Brokers may open trust accounts for their clients without notifying their designated broker. Designated brokers must open trust accounts and make deposits and disbursements.

Designated brokers must open trust accounts and make deposits and disbursements.

A compensation model in which a licensee pays a monthly fee to be affiliated with a firm is called a ______ model. Desk fee Flat fee Per-transaction fee Traditional

Desk fee

Which of the following is most likely to have an extremely negative effect on the time and cost of a development project? CERCLA's policy of strict liability Discovery of hazardous materials on the project site FHA's minimum building standards Proximity of the project site to public transportation

Discovery of hazardous materials on the project site

What's the term for an extended period of time during which banks experience more withdrawals than deposits? Bankruptcy Collateral Disintermediation Hypothecation

Disintermediation Definition: Consumers are withdrawing more money from banks than they are depositing.

Delilah contracted with Chris to purchase his property, and contracted with Harrison to sell the same property to him. Both closings occurred on the same day and both deeds were recorded the same day. What is this type of transaction called? Double contract settlement Double escrow Dual escrow Synchronized settlement

Double escrow Double escrow is a set of real estate transactions involving two contracts of sale for the same property, to two different back-to-back buyers, at the same or two different prices, arranged to close on the same day.

Which of the following is a guideline used by Freddie Mac when determining if a loan is conforming? Discount points Down payment Interest rate PMI

Down payment Freddie Mac will only insure conforming loans. To conform, the loan must meet specific standards, including a down payment threshold.

The Town of Petersville has just decided to restrict density in one area of town that previously allowed a higher density. This is known as ______. Aesthetic zoning Density zoning Downzoning Reduction zoning

Downzoning

Which of the following could an investor who sells an apartment house buy using a 1031 exchange? Duplex, office building, or warehouse Duplex only Office building only Warehouse or office building only

Duplex, office building, or warehouse

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. Kendra represents Steven in the sale of his home by helping him complete the necessary paperwork to make his offer. Licensee Alexa works closely with her buyer clients' lender to be sure the lender has all information needed to approve the loan. Licensee Ingrid helps her neighbor Jeremy spruce up his house before Jeremy's agent holds an open house.

Dutton was previously a licensee. He's selling his home, and he wants Wanda, who's currently licensed, to assist him with the paperwork. A non-agent, also referred to as a transaction broker, may assist a customer with ministerial tasks.

Which one of the following options provides three valid examples of a private land use control? Easement, lien, deed restriction Eminent domain, taxation, easement Lien, subdivision regulation, mortgage Subdivision regulations, taxation, eminent domain

Easement, lien, deed restriction

Which type of communication does the CAN-SPAM Act outlaw? Email marketing with no "unsubscribe" option Mailings across state borders Mailings to a post office box Marketing emails sent to subscribers

Email marketing with no "unsubscribe" option

Smalltown is building a new interstate exchange to facilitate access to shopping and restaurants. In order to do so, it purchased two homes and tore them down so the ramps to and from the interstate could be constructed. What principal allowed Smalltown to do this? Abandonment Doctrine of laches Eminent domain Escheat

Eminent domain Eminent domain = government taking private property for public use and compensating for it.

Janalynne is a designated broker setting up the main place of business for her employing broker. Before officially opening for business, she'll make sure that the ______ is on display in the office. Affiliated broker's license Articles of incorporation or similar business documentation Business plan Employing broker's or designated broker's license

Employing broker's or designated broker's license

Regarding timeshares, Arizona has ______. Adopted a regulation that taxes buyers at 15% of a timeshare's purchase price Enacted a law making the rental of timeshares illegal Enacted a law to protect consumers No rules or regulations to protect consumers

Enacted a law to protect consumers

Regarding restrictive covenants/deed restrictions, to what does the doctrine of laches refer? Creation Enforcement History Types

Enforcement The doctrine of laches refers to the enforcement of restrictive covenants. If property owners don't protect their rights to enforce these covenants, they can lose them.

Jake, who was leasing a house, retained possession even after his right to possess had terminated. Jake has a(n) ______. Estate at sufferance Estate at will Estate for months Holdover tenancy

Estate at sufferance When tenants stay after they no longer have the right to possess the property, it's called estate at sufferance because the landlord is suffering the tenant's presence without express agreement.

Under which of the following clauses are the costs of building maintenance over a specified level are passed on to the tenant? Escalator clause Expense stop clause Lease option clause Tax stop clause

Expense stop clause

Which type of lawsuit do tenants commonly file against property managers? Breach of contract Fair housing violations Fraud Theft

Fair housing violations

Which act created an agency to investigate antitrust practices? Attorney General Act Clayton Act Federal Trade Commission Act Sherman Antitrust Act

Federal Trade Commission Act

Local authorities lack police power over which of the following? Budgeting Federal government construction projects Subdivision development Zoning

Federal government construction projects

Filomina is preparing to sell her home and thinks she should test for radon. Which of the following options about radon testing is true? Filomina can hire a professional to perform the test, or she can buy a test kit and submit it to a lab for analysis. Filomina can purchase a home test kit and interpret the results herself. Filomina is required to test for radon and perform any necessary mitigation before placing her property on the market. Filomina must hire a certified testing company to perform the radon test and interpret the results.

Filomina can hire a professional to perform the test, or she can buy a test kit and submit it to a lab for analysis.

The client ledger is a record of various accounting items not found in the trust account checkbook. These include the receipt date, name of transaction party names, deposit date and ______. Amount of check Check number Final disbursement of funds Tax ID

Final disbursement of funds

Which of the following is the best example of investment leverage? Buying multiple properties at once Buying properties on a systematic basis Financing most of an investment and putting very little cash in Paying all cash for an investment to avoid interest payments

Financing most of an investment and putting very little cash in Investment leverage: an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment.

When you're using the sales comparison approach to value a property, which of the following is considered a category of adjustment? Area demographics Financing terms and cash equivalency Seller motivation Types of obsolescence

Financing terms and cash equivalency

Max has decided to cancel his reservation for a plot in an upcoming subdivision because of the delays the subdivider is experiencing. How long does the subdivider have to get the deposit back to Max? 10 15 calendar days Five business days Seven calendar days

Five business days

How long does a tenant have to remedy the situation if issued a Notice of Noncompliance Materially Affecting Health and Safety? 10 days Five days Seven days Three days

Five days The breach must be remedied within five days, or the tenant could face eviction.

Cooperative shareholders under a condop structure have ______. Flexibility in selling and restrictions on subletting, similar to that of condominium owners Flexibility in selling and subletting, similar to that of condominium owners Restrictions in selling and flexibility in subletting, similar to that of condominium owners Restrictions on selling and subletting, similar to those of condominium owners

Flexibility in selling and subletting, similar to that of condominium owners

Which type of distressed property transaction requires a cash purchase? Foreclosure auction Pre-foreclosure REO Short sale

Foreclosure auction

Which of the following statements related to 1031 tax-deferred exchanges is true? Foreign investors may not participate. Foreign investors may participate. Investors may not participate. Residential homeowners may participate.

Foreign investors may participate.

Stu is buying Freddie's property. What must occur for the transfer of title to take place? Freddie and Stu must sign the deed. Freddie must intend to convey the property to Stu. Stu must convey the deed. Stu must sign the deed.

Freddie must intend to convey the property to Stu.

Which of the following terms may be defined as a form of depreciation or loss in value caused by defects in design? Economic obsolescence External depreciation Functional obsolescence Physical depreciation

Functional obsolescence Functional obsolescence is a form of depreciation or loss in value caused by defects in design.

As Tina's agent, Marcus has broad responsibility to handle all the details of a specific transaction. What type of agent is Marcus? Dual General Limited Specific or special

General

Property managers most often serve as which type of agent? Designated General Special Universal

General

Angel's credit card company sued him in civil court for nonpayment. There was a judgment against him, and so now Angel has to sell his classic car and his primary residence to pay the credit card company. What type of lien did the company have? General Special assessment Vendor's Voluntary

General A general lien is placed against all of an individual's or a business's real and personal property, not just a specific property. General liens include judgment liens—such as in this case—income tax liens, and decedent's debts.

Uniform Electronic Transaction Art (UETA)

Gives electronic signatures and documents the same legal weight as paper writings and signatures.

Which of the following options is the definition of a lease in which the base rent increases at set intervals during the lease term? Escalated lease Graduated lease Ground lease Oil or gas lease

Graduated lease A graduated lease is an agreement under which a tenant and landlord agree to a periodic adjustment of monthly payments. For example, the agreement may reflect an increase in the tenant's payments due to market conditions or an increase in the value of the leased property.

Bob is quite proud of the 600-square-foot garage he's included in his new home. According to national standards, how can he include the garage square footage in his total? He cannot. He can only include it as unfinished square footage. He can only include it if it cost more than $50,000 to construct, including labor. He can only include it if its value is more than 33% of the home's value.

He can only include it as unfinished square footage.

Jonathan hasn't paid his property taxes in more than a year. He wants to sell his property and try to move to a smaller home. What can he do in these circumstances? He can get all of his money back and avoid paying off the lien by having a tax sale of the property. He can pay the lien; otherwise, he can't sell the property. He can sell the property without being released from the tax lien. He can take out a second mortgage to pay off the tax lien.

He can pay the lien; otherwise, he can't sell the property.

Curtis owns a six-family apartment building in Winslow. One of his tenants informed him in writing that her heat wasn't working. How long does Curtis have to repair or replace the heating system? He has 10 days. He has five days. The repair must be made immediately. The tenant must pay for this repair.

He has five days

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 has to meet more standards than if he were getting an Assured Water Supply certificate. He has to show there's enough water available to meet the subdivision's needs for 50 years. He isn't developing an area within an AMA. No matter where he's building, this certificate is always optional.

He isn't developing an area within an AMA. Adequate Water Supply certificates are used for areas outside of AMAs.

Jim is a listing agent. What offers must he present to his client, and when?

He must present all offers as soon as is practical.

Eric just bought property within the Tucson AMA. The property comes with a well, which he wants to operate. Which of the following is true? He needs a withdrawal permit. He needs either a service area right, a withdrawal permit, or grandfathered rights. He needs grandfathered rights. He needs service area rights.

He needs either a service area right, a withdrawal permit, or grandfathered rights. Eric must have one of these rights/permits to operate the well. Any one of them is fine.

Jameson has just passed his licensing exam, despite the fact that several key pieces of information he learned from his online training were incorrect. "I wonder what rules are used to register these institutions," he says. What can Jameson do to find out? He should contact the Arizona Association of REALTORS®. He should contact the Arizona Department of Real Estate. He should discuss the matter with his broker. He should register a formal complaint with the Association of Real Estate Instructors.

He should contact the Arizona Department of Real Estate.

Your client just bought a house in an active management area (AMA). Which of the following is true about her situation? Her developer had to get an Adequate Water Supply certificate to build her house. Her developer had to get an Assured Water Supply certificate to build her house. Her developer was allowed to withdraw groundwater at will. The developer becomes exempt from taxes by building groundwater treatment facilities.

Her developer had to get an Assured Water Supply certificate to build her house.

Shana received a devise from her mother. What might this be? A written message Her mother's car Her mother's farm Her mother's jewelry

Her mother's farm A gift of real property is called a devise. Shana is the devisee, and her mother is the devisor.

Which of the following is an example of conversion? Amy deposited a buyer's earnest money deposit into her broker's trust account. Herve withdrew funds from the trust account to pay the brokerage's rent. Jacob deposited earnest money into the firm's operating account. Jalen deposited his commission check into his personal bank account.

Herve withdrew funds from the trust account to pay the brokerage's rent. When licensees/escrow holders use money that they received on behalf of the principals for a reason other the intended use, it's known as conversion, and it is illegal.

Regan is trying to sell his home, which is located within an airport influence area. What disclosure does he need to make to potential buyers? His agent must disclose the proximity of the airport to potential buyers and direct them to the ADRE website, where the detailed map with boundaries is located. His agent must post a notice on the front door of the home that states that the area is in an airport influence area. His agent must provide potential buyers with the map that details the airport boundaries. His agent must require all potential buyers to sign the airport influence area disclosure.

His agent must disclose the proximity of the airport to potential buyers and direct them to the ADRE website, where the detailed map with boundaries is located.

Licensee Jack is selling his home. What must he disclose on any ads he creates for his property? His status as a salesperson, using the words "owner/agent" His status as the owner, using the words, "for sale by owner" That all ads for the property are blind ads That he will not be involved in the selling of the property

His status as a salesperson, using the words "owner/agent"

Which of the following duties does a licensee owe to a buyer with whom no agency agreement exists?

Honesty

Prior to a certain act's existence, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing. What's this act called? Civil Rights Act of 1866 Fair Housing Amendments Act of 1988 Federal Fair Housing Act of 1968 Housing and Community Development Act of 1974

Housing and Community Development Act of 1974

Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from familial status discrimination? Fair Housing Amendments Act of 1988 Federal Fair Housing Act of 1968 Housing and Community Development Act of 1974 Housing for Older Persons Act of 1995

Housing for Older Persons Act of 1995

While market value is an opinion of a property's worth on the fair market, which of the following best describes market price? How much a buyer has paid and a seller has accepted for the property. How much a lender would be willing to finance for the property. How much an appraiser estimates a property is worth on a given day. How much it would take to rebuild the property from scratch, including the cost of the land.

How much a buyer has paid and a seller has accepted for the property.

A perc test measures ______. How long it will take for waste to break down How much a septic system will cost How quickly water travels through soil Where clogs are likely to occur in a septic system

How quickly water travels through soil Percolation tests, or "perc tests," are used to see how quickly water flows through a site's soil. This type of test is used to determine whether a site can sustain a house and septic system.

To meet the requirements of the statute of frauds, an agreement must clearly identify the contract's subject matter, present the contract's essential terms and conditions, and ______ to be enforceable. Achieve a result that's fair to all parties Be agreed to verbally Be reviewed by an attorney Identify the contracting parties

Identify the contracting parties

Jillian's lease for her apartment has a right of first refusal clause. What kind of obligation does this create for her landlord Kathy? If Kathy decides to sell, she must offer it to Jillian for 95% of asking price. If Kathy decides to sell, she must offer it to Jillian for purchase first. Kathy can't legally raise her rent. Kathy must renew Jillian's lease every year.

If Kathy decides to sell, she must offer it to Jillian for purchase first.

In Arizona, a summary order may be brought against an owner ______. Any time a change to the public report is requested At the commissioner's discretion for any reason If there is evidence of an unlawful practice When construction delays extend longer than six months

If there is evidence of an unlawful practice

Christy found a property that was for sale by owner and made an offer. The seller accepted Christy's offer, but neither of them knew how to proceed. Licensee Zelda helped Christy complete the necessary purchase documents and walked her through the process. What kind of agency exists? Confirmed agency Express agency Implied agency Verbal agency

Implied agency Christy and Zelda never signed a formal agency agreement, but through Zelda's actions in her attempt to help Christy, she created an implied agency agreement.

What does the parol evidence rule state?

In most cases, a written agreement is the final and comprehensive expression of the parties' agreement. It generally prohibits introducing oral or written evidence that contradicts that agreement.

Under which type of ownership arrangement can buyers purchase condominiums? In joint tenancy or tenants in common, but not in severalty In severalty, in joint tenancy, in tenants in common, or tenants by the entirety In severalty, in joint tenancy, or tenants in common, but not tenants by the entirety In severalty or tenants by the entirety, but not in joint tenancy

In severalty, in joint tenancy, in tenants in common, or tenants by the entirety

The Druid Hills neighborhood sits firmly within a single-family residential zoning area. Most of the lots are one-third of an acre or larger. A 20-acre parcel on the edge of the neighborhood sold recently. The buyer wants to build condominium flats since multi-family housing is in short supply in the area. The town is considering rezoning that parcel to allow this development because the developer plans to also include a public park and a walking trail. What kind of zoning is this? Aesthetic zoning Downzoning Incentive zoning Spot zoning

Incentive zoning Incentive zoning occurs when a municipality allows a property owner to proceed with an otherwise-prohibited type of construction in return for improvements that will benefit the community.

Your buyer clients Donna and Mike are submitting an offer on a home where the seller is moving to another state and wants to expedite the closing process. What would be a good strategy for structuring an offer in this case? Include an escalation clause. Make a full price offer. Offer a quick close. Waive the appraisal.

Include an escalation clause. An offer containing an escalation clause helps expedite the negotiation and sales process because the buyer and seller can agree in advance on the parameters of the purchase price, similar to a price cap.

Which of the following is a possible title issue with a real estate-owned transaction? Evictions of existing tenants Foreclosure process delays Internal audit delays Unpaid liens against the title

Internal audit delay

What's one advantage of managing water via the doctrine of prior appropriation? It allows for water to be diverted, which lets it benefit more people. It gives everyone access to the same amount of water. It makes water conservation far more effective. You can purchase a water right just by buying property that touches water.

It allows for water to be diverted, which lets it benefit more people

What advantage does the 1031 tax-deferred exchange offer? It allows investors to avoid ever paying taxes from gains realized on their investments. It allows investors to defer capital gains taxes when selling a property, provided they buy another property. It offsets capital gains for homeowners who have lived in the home for at least two years. It provides a tax shelter for non-real estate investments.

It allows investors to defer capital gains taxes when selling a property, provided they buy another property.

Property ownership gives the title holder a bundle of rights. What's significant about the concept of a bundle of rights? It describes an infinite number of rights associated with property ownership. It describes the ability to separate one right from the others while leaving the rest of the bundle intact. It's an ancient Latin term meaning the property owner's rights can't be taken away. The property owner must identify each separate right that will be purchased; they're not automatically included in a transfer.

It describes the ability to separate one right from the others while leaving the rest of the bundle intact.

Karen's house was recently foreclosed on to pay off a lien on her home. What happens to any extra money after the lien and expenses of the sale are paid? It goes to Karen. It's given to a local government-approved charity. The bank receives the rest as compensation. The state government receives the extra funds.

It goes to Karen.

Why should you advise your buyers to purchase insurance coverage, even if they make a cash purchase? It protects their investment. It's required by federal law. It's required by homeowners associations. Licensees get commission from insurance agents.

It protects their investment.

Which of these is the most ethical reason to comply with fair housing laws? It allays the fear of lawsuits. It ensures commissions will be paid. It halts the loss of livelihood. It shows the societal strength in diversity

It shows the societal strength in diversity

Jane is selling her home to Micah. What must occur for Jane to effect a transfer of title to Micah? Jane must accept the deed. Jane must deliver the deed to Micah. Micah must acknowledge the deed. Micah must sign the deed.

Jane must deliver the deed to Micah.

In Arizona, property tax liens attach on ______. December 31 January 1 June 1 November 30

January 1 Tax liens attach when a homeowner doesn't pay his or her property taxes by appropriate deadlines. In Arizona, liens attach on January 1.

If a licensee has fiduciary duties to obey all lawful instructions from a client and also to exercise reasonable skill and care, which answer describes a situation in which there is a conflict between the two fiduciary duties? Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer. Ronna's buyer client asked her to keep his financial situation confidential. Ted, Ronna's broker, insisted that she teach a contracts class, even though she's a new agent. Though her customer was adamant, Ronna turned down a commercial listing because it was outside her area of expertise.

Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer.

Which of these scenarios is an example of nomination? Greta signs her interest in a purchase contract over to Mimi, but remains liable for the contract obligations. Jessie named Serena to purchase a property on his behalf. The agreement requires Serena to convey the property to Jessie immediately after closing. Marco names Steven as the designated agent in a transaction between buyer Freida and seller Donna. Mitzi substitutes another buyer on her purchase contract with Melissa, relieving herself of both obligations and benefits of the contract.

Jessie named Serena to purchase a property on his behalf. The agreement requires Serena to convey the property to Jessie immediately after closing. Nomination refers to a process intended to maintain a buyer's anonymity. The buyer purchases a property through someone named as a nominee. The nominee must either assign the contract or convey the purchased property to the buyer.

Sally's a first-time homebuyer. She's a little nervous about finding a good real estate licensee to help her—she's read about a lot of scams out there. Which of the following provides protection for consumers like Sally? Criminal courts License laws Real estate education providers The U.S. Constitution

License laws

Which ownership type is defined by four unities: time, title, interest, and possession? Freehold estate Joint tenancy Tenancy by the entirety Tenancy in common

Joint tenancy

Which form of ownership allows an unlimited number of co-owners but can only be created if the four unities are present? Estate in severalty Joint tenancy Tenancy by the entirety Tenancy in common

Joint tenancy Joint tenancy requires the four unities (possession, interest, time, and title), and includes the right of survivorship. It creates an equal interest among the co-owners.

Which of the following is NOT one of the five basics tests that courts use to determine whether an item is a fixture or personal property? Agreement of parties Legally permissible use Method of annexation Relationship of the parties

Legally permissible use

What could be a consequence if there were no secondary mortgage market? Interest rates would fall. Lenders might not have funds available to make new loans to the public. There wouldn't be any institutions available to service loans. Unemployment would rise.

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 Required to forfeit the security deposit and all personal property Still liable for the rent for the term of the lease Subject to heavy fines and potential jail time if caught

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

Article 26 of the Arizona Constitution addresses how Arizona real estate licensees manage real estate transaction contracts and related documents. What authority does this article give licensees? Licensees are authorized to present attorney-prepared forms but may not draft or fill in contracts or other legal documents. Licensees are permitted to draft and fill in real estate transaction-related contracts and documents based but may not charge for this service. Licensees can help clients complete contract forms, but the licensee must charge the client for preparation under the terms of the Arizona Administrative Code and Arizona's constitution. Licensees must assist any Arizona consumers with completing real estate transaction documents, whether or not a brokerage agreement exists between them.

Licensees are permitted to draft and fill in real estate transaction-related contracts and documents based but may not charge for this service.

Which of the following is true about coming soon listings? Licensees can't accept offers on them. Licensees can't accept offers on them for at least two weeks after listing. They are illegal. They are the same as a pocket listings/office exclusive listings.

Licensees can't accept offers on them. Coming soon listings are those that aren't technically available for sale until sometime in the future. Licensees aren't allowed to accept offers on them, and to do so would be an ethical and license law violation.

Which of the following strategies would help to make a "Choose Your Neighbor" marketing letter non-discriminatory in its effect? Ensuring that the letter was given to neighbors on both sides of the street Giving the letter to at least 20 neighbors Listing the property on the MLS Providing the letter in multiple languages for non-English speakers

Listing the property on the MLS

Which of the following loan types can be packaged into a mortgage-backed security eligible for guarantee by Ginnie Mae? Loans insured or guaranteed by U.S. government agencies Loans issued by commercial banks Loans issued by rural lenders Loans issued by thrifts

Loans insured or guaranteed by U.S. government agencies

Which of the following is a true statement about police power and public land use controls? Government agencies may exercise police power only when it does not restrict the freedom of its citizens. Local governments and their planning boards control budgeting, site-plan review, and building codes. Planning, zoning, and subdivision development are primarily controlled at the state level. Police power is citizens' rights to police themselves.

Local governments and their planning boards control budgeting, site-plan review, and building codes.

What steps must a lien-holder take to perfect their mechanic's lien in Arizona? File a preliminary 20-day notice and then file a conditional waiver File the lien within 60 days of the general contractor filing a Notice of Completion Make copies of the lien claim, give one to the county recorder, give the other to the building's owner Take the party who hasn't paid to court and follow the judge's rulin

Make copies of the lien claim, give one to the county recorder, give the other to the building's owner

Retaining paper and electronic records of transactional documents for the time period prescribed by your regulating authority helps to ______ risk. Elevate Eliminate Increase Manage

Manage

What is the purpose of Arizona's Article X? Create and manage public schools. Manage state and school lands. Promote the exchange of open spaces for school land. Promote the use of open spaces for agricultural purposes.

Manage state and school lands.

Your client Tino is selling 15 acres of property. The land includes a well, and the new owner, Margaret, is also buying the water rights. Which statement about this situation is true? If the property is within an INA, Margaret won't be able to use this water to irrigate crops. Margaret has to supply ADWR with the new ownership information. Margaret must apply for either a Type 1 or Type 2 right to use the well. You or Tino need to fill out a Request to Change Well Information form.

Margaret has to supply ADWR with the new ownership information

Determining who the buyers of subdivision homes are, the market niche to target, and whether to have different price points for various phases of development are all considerations in the ___________. Environmental assessment Feasibility study Marketing strategy Subdivision lot release plan

Marketing strategy

If an item is permanently attached to a property, a court would most likely consider it a fixture if it passes which of the following tests? Adaptability of the item to the land's use Agreement of the parties Method of annexation Relationship of the parties

Method of annexation

Which REITs make money by incurring short-term debt to acquire longer-term mortgage securities, earning the spread between the two rates? Equity REITs Mortgage REITs Short-term/long-term REITS Tax-deferred REITs

Mortgage REITs Many mortgage REITs make money by incurring short-term debt to acquire longer-term mortgage securities, earning the spread between the two rates. They focus on buying mortgage securities backed by Freddie Mac and Fannie Mae.

Information about which of the following is included in the Uniform Residential Loan Application? Children's names Mortgage type Survey Taxes

Mortgage type

In Arizona, statutes regarding bedbugs and bedbug infestations apply to ______. Hotels Mobile homes Multi-family dwellings Single family dwellings

Multi-family dwellings

A professional corporation is like a regular corporation except that each of the professional corporation's officers, directors, and shareholders ______. May be held separately liable in a lawsuit Must have separate insurance Must hold an active real estate license Must hold equal shares of the company

Must hold an active real estate license

How is net operating income used in an income-based approach to appraisal? NOI is deducted from potential gross income to find effective gross income. NOI is divided by a cap rate to find estimated property value. NOI is divided by potential gross income to find a capitalization rate. Operating expenses are deducted from NOI to find effective gross income.

NOI is divided by a cap rate to find estimated property value.

One task a commercial property manager has that a residential property doesn't is ______. Collecting rent Locating tenants Negotiating leases Supervising repairs to the property

Negotiating leases The commercial property manager's role includes lease negotiation. Residential leases are typically set and non-negotiable.

Seller Walt has an agreement for sale with buyer Jessie, who's agreed to buy Walt's property just outside Prescott. Two years later, Jessie defaults on the loan. He's paid Walt $75,000 of the $100,000 purchase price and still owes 25%. Walt is allowed to start forfeiture proceedings ______ after Jessie's first missed payment. 120 days 60 days Immediately Nine months

Nine months

In Arizona, when a judgment lien is renewed, which of the following is true? No lien exists until a copy of the renewal affidavit is certified and recorded. No lien exists until the original judgment expires. The creditor has 10 days after the original lien expires to renew it. The creditor has 90 days after the original lien expires to renew it.

No lien exists until a copy of the renewal affidavit is certified and recorded.

How much advance notice must the Arizona landlord give the tenant to pay monthly rent? 10 days' Five days' No notice is required. One week's

No notice is required. Rent must be paid at the time and place that the parties have agreed on.

Jolie and James just found out they are expecting a baby, so they have decided to convert the extra-large laundry room into a nursery. James is an unlicensed handyman and can do all the work himself, including capping off the gas line, for only $900. Is this permitted in Arizona? No, any job costing more than $500 must be done by a licensed contractor No, any job involving connections to a natural gas, propane, or other petroleum or gaseous fuel supply must be done by a licensed contractor Yes, as long as James files an application with the Arizona Registrar of Contractors Yes, as long as the cost is less than $1,000

No, any job involving connections to a natural gas, propane, or other petroleum or gaseous fuel supply must be done by a licensed contractor

CT is a licensed contractor with AZ Plumbing and Heating. He just put in his two-week notice, and then he will start working for Canyon Plumbing and Heating. Can he transfer his license to his new employer? No, licenses aren't transferable. No, not until he takes the specific trade exam again. Yes, if he receives approval from the Arizona Registrar of Contractors. Yes, no conditions apply.

No, licenses aren't transferable

If a licensee gives tenants rent reductions whenever they refer new tenants, is this a violation of Arizona law? No, there are no rules regarding paying finder's fees to tenants in Arizona. No, this is paying finder's fees appropriately according to Arizona law. Yes, a licensee can only provide finder's fee as cash payments to tenants. Yes, tenants are not allowed to receive finder's fees from property managers.

No, this is paying finder's fees appropriately according to Arizona law.

Nonny is purchasing a rental property where the tenants pay month-to-month rent. Which of the following is the most likely way for the rent to be prorated? A)Nonny will begin to receive prorated rents starting on the first of the month following the closing date. B)Nonny will receive all rents collected as of the first of the month in which the closing is held, even if closing is on the last day of that month. C)Nonny will receive full rents for tenants whose leases expire within one month of the closing date, and prorated rents as of the day of closing for other tenants. D)Nonny will receive prorated rents beginning the day of closing.

Nonny will receive prorated rents beginning the day of closing.

Donna won a final judgment against Arizona licensed contractor Marcus for work he failed to complete at her home. She sought restitution from the bond that covers him and discovered that he had no assets to satisfy the judgment. What last step can she take to recover the amount awarded in the final judgment? Notify the ADRE and seek payment from the recovery fund. Notify the Arizona Association of REALTORS® and file for restitution. Notify the AZ ROC and seek payment from the residential contractors recovery fund Sue the contractor's insurance company.

Notify the AZ ROC and seek payment from the residential contractors recovery fund

In Arizona, what must an owner of unsubdivided land do before selling or leasing any of the land? Create a corporation from which the land will be sold. Designate the land for industrial use only. Notify the commission of the sale or lease. Obtain clearance from the U.S. Land Grant Authority.

Notify the commission of the sale or lease.

What's the key difference between assignment and novation of a contract? Assignment releases the original party from all obligations, while novation does not. Individual contracts must specifically allow novation, but not assignment. Novation is disallowed in many states, while assignment is not. Novation releases the original party from all obligations, while assignment does not.

Novation releases the original party from all obligations, while assignment does not.

When representing a property owner, you must ______ before you're allowed to place a sign on the property. Develop a CMA for the property Obtain written permission from the property owner Provide the client with a marketing plan Review advertising options and receive approval from the client

Obtain written permission from the property owner

Arizona employing brokers and the designated brokers who work on their behalf carry responsibilities to supervise their employees, including all of the following EXCEPT _____. Ensuring licensees are familiar with federal, state, and local laws related to real estate Managing all funds Offering continuing education courses to their employees Reviewing all advertising

Offering continuing education courses to their employees

Sandra didn't realize that Arizona property taxes are split into two payments. While she paid the first half of her taxes by the October deadline, she didn't submit her second tax payment until April 28 of the following year. Sandra's payment is considered to be ______. Delinquent Insufficient On time Secondary

On time There's some wiggle room when it comes to paying tax bills. While the second tax bill for a year is due on March 1, homeowners have until May 1 to submit their payment.

Homeowner Sophie moves around the country a lot for her job and has bought and sold several homes over the last decade. If she sells a home for more than she paid for it, how often may she claim the capital gains exclusion? Every time she sells a home she's lived in as her personal residence Once every five years Once every two years Once in her lifetime

Once every two years

While Fannie Mae considers total and housing debt-to-income ratios in its underwriting process, Freddie Mac considers ______. Both total and housing debt-to-income, as well as employment history Neither total nor housing debt-to-income Only housing debt-to-income Only total debt-to-income

Only total debt-to-income

Angelo's aging mother needs a place to live out her remaining years. Angelo conveys a home to her, but only for her lifetime. This is an example of what type of life estate? Dower and curtsey Homestead Ordinary Pur autre vie

Ordinary Ordinary life estates are granted for the lifetime of the grantee. When the life estate holder dies, remaining interest is either returned to the original owner (reversion) or is granted to a third party (the remainderman).

Walter is an Arizona real estate licensee whose license was revoked eight months ago. His licensure period expired six months ago. He's dealt with the reason for his revocation and is now otherwise in good standing with ADRE. He is eligible to apply for reinstatement by ______. New application Original application Re-application Renewal

Original application

Chloe's Arizona salesperson's license expired 18 months ago while it was inactive due to suspension. The suspension period has passed and there are no other outstanding issues, so she will apply for reinstatement by ______. New application Original application Re-application Renewal

Original application Licenses that are eligible for reinstatement but have been expired for more than one year are eligible for reinstatement by original application.

Which of the following outstanding issues could an abstract of title reveal? Owners, mortgages held, and easements Owners, property liens, and property condition Owners, property liens, and property insurance held Owners, property liens, taxes, and easements

Owners, property liens, taxes, and easements

Which phase of the investment cycle includes deductions for mortgage interest and property taxes? Acquisition Ownership Reversion Sale

Ownership

Several actions take place on the secondary mortgage market. Which of these is a common activity? Issuing loans to consumers Packaging loans into mortgage-backed securities Regulating primary lenders Setting loan origination fees

Packaging loans into mortgage-backed securities

Pamela's lender is foreclosing on her Arizona home because she hasn't made her monthly payment in five months. Pamela gets a new job shortly after receiving the Notice of Trustee's Sale from the trustee. She manages to pull together enough money to stop the trustee's sale. What's true about this situation?

Pamela must pay an amount covering her missed payments and the foreclosure costs to bring her loan current and reinstate it.

Which of the following leases is more commonly used with retail properties, such as shopping centers and malls? Ground leases Index leases Percentage leases Reappraisal leases

Percentage leases A percentage lease is a type of lease where the tenant pays a base rent plus a percentage of any revenue earned while doing business on the rental premises.

Bertrand wants to buy a property in a rural area and needs to know whether the property site can sustain a septic system. What test should he perform before deciding to purchase the property? Oil tank integrity test Percolation test Radon test Well water quality test

Percolation test A percolation test is a test to determine the water absorption rate of soil in preparation for the building of a septic drain field or infiltration basin

Randolph has a leasehold estate that automatically renews at the end of each lease period. What type of leasehold estate does Randolph hold? Estate at will Estate for months Periodic estate Renewable estate

Periodic estate Periodic tenancy is a type of leasehold agreement in which the lessee occupies the property from a specific start date, but with no agreed-upon end date. More often, this deal is known as a month-to-month lease. This lease automatically renews, unless the property owner or tenant gives notice.

A week-to-week tenancy is called ______. Non-traditional lease Periodic tenancy Tenancy for a time Tenancy per annuity

Periodic tenancy A week-to-week or month-to-month tenancy is called periodic tenancy.

Which of the following is a key consideration and starting reference for a metes and bounds description? Base line Benchmark Point of beginning Principal meridian

Point of beginning

Which of the following is a piece of general data an appraiser may gather? Improvements made to a property Kitchen upgrades Population size Property lot size

Population size General data is related to the area where the property is located, not the property itself.

Which of the following Code of Ethics principles applies to clear cooperation? Accept compensation only with the client's knowledge and consent. Competently manage the property of clients. Mediate all disputes. Present a true picture in advertising.

Present a true picture in advertising The three Code of Ethics principles that apply to the Clear Cooperation policy are: Cooperate with other REALTORS, present a true picture in advertising, and respect other REALTORS' exclusive agreements with clients.

Jose sent out a written notice to his tenants that a crew would be power washing the exterior of their apartment buildings. This is an example of ______. Preventive care Repair work Tenant improvements Unacceptable intrusion

Preventive care Keeping the exterior walls clean can prevent mold and is an example of preventive care.

What are the types of institutions that issue loans directly to consumers commonly called? Government-sponsored enterprises Primary market players Real estate brokerages Secondary market players

Primary market players

In which market do lenders that originate real estate loans operate? Government market Primary mortgage market Real estate investment trust market Secondary mortgage market

Primary mortgage market

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? Alluvial Littoral Prior appropriation Riparian

Prior appropriation This is a feature of prior appropriation: Someone can own the right to water that doesn't touch their property.

Mortgage bankers are mostly what type of enterprise? Closed Exclusive Private Public

Private

What legally binding document should give details about the reports a property manager will provide for a property owner? Employee policies and procedures manual Lease agreements Property management agreement Property management proposal

Property management agreement

The role of a property manager is to support the objectives and goals of the _______.

Property owner

Which of the following is true about zoning? Proposed zoning ordinances are examined for fairness before being enacted. While zoning may impact a community, it does not impact individual property owners. Zoning changes are enacted by local governments without public input. Zoning does not impact property value.

Proposed zoning ordinances are examined for fairness before being enacted

Trust funds have better protection when deposited into trust accounts because they are ______. In an interest-bearing account Insured by the banking industry Insured by the depositor's private insurance Protected from seizure

Protected from seizure

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? A straight-term loan Land contract Purchase money mortgage Wrap-around mortgage

Purchase money mortgage Purchase money mortgages allow the buyer to retain title to the property, but the seller has security interest in the property.

Which of these is a NOT a reason why agency disclosure is mandated? Before buyer representation came into being, buyers were often unaware that the agent they worked with actually represented the seller. Consumers may compromise their bargaining position if they're not aware how agency relationships work. Consumers often don't realize that the agency relationship guarantees that they benefit from the agent's fiduciary duties. Real estate transactions aren't covered by consumer protection laws; agency law and disclosures provide the only protections.

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

What's the best definition of real property? Artificial attachments to land that include things such as fencing, buildings, and walkways Earth, soil, and air Land, plus all things permanently attached to it naturally or artificially Real estate, plus all of the interests, benefits, and rights included in ownership

Real estate, plus all of the interests, benefits, and rights included in ownership

Conrad just closed on the house he's buying to fix up. Why should he follow up to be sure the deed has been recorded? He can't legally make any improvements to the property until the deed is recorded. He doesn't legally own the house until that occurs. Recording provides actual notice that he owns the property. Recording provides constructive notice that he owns the property.

Recording provides constructive notice that he owns the property.

In 1934, when the Federal Housing Administration was created, it adopted the practice of crossing off cities and neighborhoods it considered risky and refused to insure loans for purchases in those areas. What is this action called? Blockbusting Gerrymandering Redlining Steering

Redlining Redlining is the practice of denying a creditworthy applicant a loan for housing in a certain neighbor hood even though the applicant may otherwise be eligible for the loan.

Jamie owns a lakeside home. Over a period of years, the water has receded quite a bit, doubling the size of the sand beach on his property. What's the name of this process?

Reliction Reliction is the gradual receding of water, which uncovers new land.

_______ and familial status are protected classes. Gender identity Religion Student status Veteran status

Religion

What's the purpose of a quiet title suit? Compel the lender to finance a cloudy title. Compel the seller to provide title insurance. Pay all debts and liens against a title. Remove any claims against a property's title.

Remove any claims against a property's title. A quiet title suit is a legal proceeding that asks the court to remove any claims, or "clouds," against the title so that it can be conveyed.

Francis is training the new licensee who just started with the firm. One business practice for recordkeeping is to maintain a paper trail of client communications. What is the most efficient way to do this? Hire an administrative assistant. Print all emails sent and store them in transaction file. Request return receipts. Send all important files via certified mail.

Request return receipts.

Which stage of the investment cycle is an investor in when there is depreciated basis and tax-deferral through 1031 exchanges? Acquisition Depreciation Ownership Reversion

Reversion

Where can a party that's reviewing a title commitment find exceptions that aren't covered by the title insurance policy? Schedule A Schedule B-1 Schedule B-2 Title insurance information

Schedule B-2

Felicia and Alicia have just received a copy of the public report and proposed purchase contract from the developer to whom they have given a deposit. The land they want to build on is part of a large subdivision on the outskirts of Flagstaff. How long do Felicia and Alicia have to review the contract and execute it? 14 calendar days 21 calendar days 30 days Seven business days

Seven Business Days After receiving the public report, the buyer and seller then have seven business days to enter into a contract for the purchase of the reserved lot. If a contract is not executed, the reservation terminates, and the deposit must be returned.

Ari owned acreage in a rural area. He sold a small portion of it to a neighbor in an informal transaction but made no record of the sale or change of ownership. A developer offered Ari several million dollars for the entire acreage, and Ari eagerly accepted the offer. What covenant is Ari in danger of violating? Against encumbrances Quiet enjoyment Seisin Warranty

Seisin The covenant of seisin guarantees that the grantor owns the property that appears in the deed. Because the sale of property to Ari's neighbor was never recorded, his deed still shows that he owns the entire parcel.

Which of the following is NOT a way to remove a tax lien from a property? A buyer obtains the title to the property at a tax sale. Paying all property taxes, penalties, interest, and fees in full. Proving that there is an error that invalidates the lien. Selling the property after the lien has been in effect for at least three years.

Selling the property after the lien has been in effect for at least three years. There are several ways to remove a tax lien, but generally a property can't be sold or transferred without the lien being released.

Frank owns a property on which there is walkway to the beach shared by his neighbors on either side. What is Frank's property? Dominant estate Gross estate Prescriptive estate Servient estate

Servient estate Servient estate is a parcel of land that is subject to an easement and benefits another parcel of land.

Gretchen receives a call from a prospective employer wanting information on one of her tenants. In accordance with the FTC privacy rule, Gretchen can do which of the following?

Share information about her tenant with the prospective employer without her tenant's written consent

Mavis is a buyer's agent working with Blaine, an unrepresented seller. Mavis's buyer, Cintra, makes an offer on Blaine's property. Mavis assists Blaine with the paperwork. What's Mavis's relationship to the parties? She's a buyer's agent to Cintra and an undisclosed dual agent with the seller. She's a dual agent to the buyer and seller. She's an agent to Cintra, and the seller is her customer. The seller and buyer are her customers.

She's an agent to Cintra, and the seller is her customer. Assisting with paperwork doesn't create agency.

What's one reason that buyers might need additional cash at closing for a short sale? Interest rates are higher for short sale transactions. Mortgage origination fees are higher for short sale transactions. Short sales don't clear liens from the title, so buyers may have to pay debts at closing. Short sales include a commission premium for the listing agent.

Short sales don't clear liens from the title, so buyers may have to pay debts at closing.

Kayla purchased a home in January, fixed it up, and then sold the property in May of the same year for a gain of $45,000. What type of capital gain is this? Appreciated Long-term Short-term Temporary

Short-term

Joanna and Charles got a great tip from a friend about a new subdivision going in near Tucson. He said he got a prime spot because the developer had not begun selling lots to the public. The couple jumped at the chance and purchased a lot. A few months later, when construction still had not begun on their home, they discovered that the developer had not obtained a public report before selling them their lot and was still having trouble getting the report. What can they do in this situation? Nothing. They just have to wait it out. Since there is no public report, they can rescind their offer and bring action against the developer. They can file a complaint with the local construction workers union. They can notify the local government and ask it to intercede.

Since there is no public report, they can rescind their offer and bring action against the developer.

If a private individual owner doesn't own more than three single-family homes at one time, which exemption from the Fair Housing Act could apply? Housing designated for senior use "Mrs. Murphy" exemption Owner-occupied buildings with no more than six units Single-family housing sold or rented without the use of a broker

Single-family housing sold or rented without the use of a broker

To be considered a subdivider in Arizona, how many lots in the same subdivision must be owned? 10 20 Eight Six

Six

Glenn was still living in the house his lender foreclosed on, but he moved out the day after the sheriff's sale. He stayed in a cheap apartment in town, because he hoped to save enough money to redeem his adobe home on a full acre one day. What's the length of the redemption period that Arizona law gives Glenn? 30 days None; Arizona foreclosures don't allow a redemption period. One year Six months

Six months

How long is a term for an Arizona real estate advisory board member? Seven years Six years Three years Two years

Six years

Topography depicts the physical features and contours of a project, including rocks, trees, and other vegetation, as well as ______. Available commercial properties Climate Soil types Square footage of skyscrapers

Soil types

A building permit is required in Arizona when the ______ and/or electrical, gas, plumbing, or mechanical systems are affected.

Structure

Along with property ownership, rights are granted to use the land's physical components. Which right allows a property owner to use or sell the underground resources, such as natural gas and minerals? Air Sub-surface Surface Water

Sub-surface

Lewis and Elliot started a real estate investment business together. After much discussion with their attorney, they decided to incorporate, but in such a way that they are treated like a partnership and don't have to pay corporate taxes. What form of business do they have? Double proprietorship Limited liability partnership Subchapter C corporation Subchapter S corporation

Subchapter S corporation S corporations are corporations that are taxed as partnerships. They don't pay corporate income taxes, and shareholders may deduct losses on their taxes that represent their share of the corporation's losses.

What's it called when lien holders allow another lien holder's claim to have priority over their own? Equitable lien Lis pendens Subordination agreement Voluntary lien

Subordination Agreement

On which principle of value is the sales comparison approach based? Anticipation Competition Conformity Substitution

Substitution Substitution: The principle of substitution is extremely important in real estate. It is the process used that identifies alternatives that would satisfy the same want, desire, or need.

Arizona licensees who have been notified of investigation under suspicion of license law violations have the option to ______ if they do so not less than 10 days prior to their hearing. Choose their own penalty Issue a written letter of apology Pay a fine to nullify the charges Surrender their license

Surrender their license

What term is defined as "a group of any records under the control of any agency from which information is retrieved by the name of the individual or by some identifying number, symbol, or other identifying particular assigned to the individual," according to the Privacy Act of 1974? Collection report Credit report Personal archive System of records

System of records

Which type of pest may make mud tubes—tunnels that run along the walls—or shed tiny wings? Carpenter ants Fire ants Powder post beetles Termites

Termites

Martine, a seller, is looking at her closing statement. Which of the following is she most likely to see? The $5,000 earnest money she received as an item in the buyer's credit column The $5,000 in earnest money she received as an item in her credit column The details of the loan arrangement between the buyer and his mortgage company The price for which she initially listed her house

The $5,000 earnest money she received as an item in the buyer's credit column

What entity does the Arizona Real Estate Commissioner oversee in order to enforce the state's real estate laws? The Arizona Department of Commerce The Arizona Department of Real Estate The Commission of Real Estate The Licensing Division of Real Estate

The Arizona Department of Real Estate

What does the Arizona state legislature enact to create laws governing real estate activities? The Arizona Administrative Code The Arizona Revised Statutes The Occupational Licensing Code The Rules for Commercial Licensing

The Arizona Revised Statutes

Kenneth plans to shop around for his mortgage loan to be sure he's getting the best interest rate and terms. What lender-provided document outlines loan rates and fees so he can make comparisons? Kenneth's settlement statement details all closing costs, so he can use it to compare lender loan products. The buyer's net sheet provides all the figures necessary for comparing loan products. The Closing Disclosure discloses all loan costs, so he can compare costs between lenders. The Loan Estimate permits Kenneth to comparison shop.

The Loan Estimate permits Kenneth to comparison shop.

If you've shown Suzie three properties, and she decides to put an offer in on one of them but hasn't signed an agency agreement with you, who do you represent? Both Suzie and the seller No one Suzie The seller

The Seller Unless Suzie signs an agency agreement, you'll technically represent the seller of whichever property she puts an offer on.

Two real estate firms in one small town, Vineyard Realty and Homestead Homes, agreed to charge the same commission rate to avoid the possibility of clients selecting a firm based simply on price. What specific federal legislation prohibits this? The Clayton Act of 1914 The Federal Trade Commission Act of 1914 The Restraint of Trade Act of 1894 The Sherman Antitrust Act of 1890

The Sherman Antitrust Act of 1890

Before a landlord can issue a Five-Day Notice of Noncompliance Affecting Health and Safety, two conditions must be met. One is that there must be a breach that materially affects health and safety. What is the other condition? The breach must be a violation of the tenant's obligation to maintain the premises. The landlord must personally observe the tenant causing the health or safety hazard. The local government must have cited the tenant for a health or safety hazard. The tenant must fail to obtain an appropriate trash receptacle.

The breach must be a violation of the tenant's obligation to maintain the premises

It's closing day! Which of the following is likely to happen at this time? A preliminary title report will be issued to the buyer. The buyer's loan funds will be transferred. The buyer will receive loan approval. The seller will receive the buyer's pre-approval letter.

The buyer's loan funds will be transferred. Funds are transferred on the day of closing. The rest of these events must occur in advance of closing.

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. The buyer/lessee has to pay higher federal capital gains taxes if purchasing a property through a lease with an option to buy transaction. The buyer/lessee has to wait until the property owner is ready to sell the property before he can take possession of it. The buyer/lessee is unlikely to qualify for a regular mortgage if he decides to move or buy another property later.

The buyer/lessee could lose any funds credited to the purchase price if he breaches the lease's terms.

When Julia and Matt decided to buy a home lot near Flagstaff, they visited the site, read the materials, put down a deposit, and are now ready to sign a purchase contract and provide an earnest money deposit. The contract they received for their review says the seller will not place their earnest money in an escrow account. In this situation, what could happen if the seller defaults on the contract? A)Nothing. No matter what, the seller must return all moneys received. B)The Arizona Real Estate Department will refund the earnest money to the buyer. C)The buyers could lose their earnest money deposit. D)The seller must repay the earnest money with interest.

The buyers could lose their earnest money deposit. no escrow = potentially losing all money

A client terminates a listing agreement before its expiration date. What happens now? The agent must send the client a notice of release form. The agent must sue. The client may owe a commission anyway. The listing is cancelled.

The client may owe a commission anyway.

What is the 200% rule as it relates to tax-deferred exchanges? The capital gains realized from the property sale cannot be more than 200% of the original purchase price. The capital gains realized from the property sale cannot be more than 200% of the sale price. The combined fair market value of the property (or properties) being exchanged into cannot be more than 200% of the relinquished property. The fair market value of the relinquished property must be 200% more than the property (or properties) being exchanged into.

The combined fair market value of the property (or properties) being exchanged into cannot be more than 200% of the relinquished property.

Arizona lender Big Bank is foreclosing judicially on Ariana's property. The court will order ______ to seize and sell the property to repay the debt Ariana owes to the lender. The county sheriff The county's public trustee The court clerk The lender

The county sheriff

Which of the following statements is true about constructive eviction? The court may award damages to the tenants. The court may order the vacated tenants to pay monetary damages to the landlord. The landlord can shut off the power to the unit, thereby forcing the tenant out. The tenants who abandoned the property may never legally re-enter the premises.

The court may award damages to the tenants.

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.

What makes distressed properties a valuable niche for investors? The ability to help a homeowner The cash-only requirement The chance to fix the property up The discounted price

The discounted price

What is the AZ ROC? The entity that licenses and regulates contractors in Arizona The entity that protects the rights of contractors in Arizona The entity that regulates broker operations in Arizona The entity that sets the rates for construction in Arizona

The entity that licenses and regulates contractors in Arizona The Arizona Registrar of Contractors is a state agency that licenses and regulates contractors in the state.

Which of the following statements about Colorado River water is true? Its use is governed by the doctrine of prior appropriation. The Arizona state government is responsible for determining how much of this water the state can use. The federal government regulates the distribution of this water. This water is used mainly for agriculture and irrigation.

The federal government regulates the distribution of this water.

Reconciliation

The final step in the appraisal process in which the appraiser weighs the estimates of value from the three approaches to value (market, cost, income) and arrives at a final number.

After foreclosure, a deficiency in Arizona is determined using the greater of ______. The amount owed to the lender or the foreclosure sale price The foreclosure sale price or the borrower's original purchase price The foreclosure sale price or the property's fair market value The property's fair market value or the borrower's original purchase price

The foreclosure sale price or the property's fair market value

What risk might an investor be taking by purchasing a foreclosed property at a sheriff's sale? The court may allow the property to be transferred back to a prior lien holder. The former homeowner may redeem the property within six months after the sale. The lender may choose to cancel the transaction within 24 hours of the auction. The sheriff's deed won't be issued until one year after the sale date.

The former homeowner may redeem the property within six months after the sale.

For tax years 2018 to 2025, a borrower can write off the interest on a home equity loan only if ______. Debt is kept under $5,000 The funds are used to buy, build, or improve the home that secures the loan The homeowner is a first-time homebuyer The loan is for less than $50,000

The funds are used to buy, build, or improve the home that secures the loan

In Arizona, who or what entity is responsible for paying for the travel, lodging, and food expenses when the commissioner examines unsubdivided land that is to be sold or leased? The commission The county where the land exists The landowner The state

The landowner

The Arizona boilerplate purchase contract includes a number of preprinted provisions, as well as many that the licensee will fill in. Which of these items in that boilerplate contract would be information specific to a transaction, and therefore subject to errors? The legal description The provision requiring that sellers provide a property disclosure The provisions reminding the buyer to perform inspections if items such as pests and homeowner's insurance are a concern The provision stipulating circumstances that require a lead-based paint disclosure

The legal description Only information that the licensee fills in (information specific to the transaction) is subject to error in the Arizona boilerplate contract. This includes the legal description, purchase price, buyer and seller names, closing date, etc.

Which of these steps does an Arizona lender take after borrower default on a loan secured by a mortgage? The lender accelerates the loan and files a court action requesting foreclosure. The lender notifies the trustee to initiate foreclosure by recording a Notice of Sale with the court. The lender records a lis pendens on the property as notice of foreclosure to the borrower. The lender requests a deed-in-lieu from the borrower. If the borrower declines, the lender files a court action to foreclose.

The lender accelerates the loan and files a court action requesting foreclosure.

Which of the following is a benefit of deed in lieu of foreclosure? The borrower's credit won't be negatively impacted. The borrower's debt is forgiven and the borrower is protected by Arizona anti-deficiency statutes. The borrower won't be required by pay tax on the forgiven debt. The lender avoids the cost of the foreclosure process.

The lender avoids the cost of the foreclosure process.

Kelly is closing on the house she's purchasing on Wednesday. Which of these statements is true? Kelly must receive the Loan Estimate at least four days before closing. The closing officer must deliver the Closing Disclosure at closing. The lender must provide the Closing Disclosure by Friday of the week before closing. The Loan Estimate amounts must be within 1/4 of a percent of the final settlement costs.

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

When calculating loan-to-value ratios, which of the following will be used by the lender?

The lesser of the sales price or appraisal value

A summary suspension is a penalty designed for the commissioner to levy if ______. A complaint is made against a licensee involving misrepresentation Any license law violation is suspected The licensee fails to pay license renewal fees The licensee's actions are causing an immediate threat to the public

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

Rachel is talking with a co-worker, Shawna, about homebuying. Rachel shares some general market trends and talks about the impact of rising interest rates. She notes that the listing price of Shawna's neighbor's house seems lower than it should be, and then they talk about the importance of getting pre-approved for a loan early in the process. Which of her statements might have created an implied agency situation? Current market trends Loan pre-approval The impact of rising interest rates The listing price of the neighbor's property

The listing price of the neighbor's property

Which of the following is an example of easement termination by merger? The dominant estate owner takes action that shows a clear intent to stop using the easement. The owner of a servient estate buys the property of the dominant estate. The owner of the dominant estate has an alternate route and no longer needs the easement. The owners of both estates decide not to use the easement.

The owner of a servient estate buys the property of the dominant estate. An example of a merger that terminates the need for an easement is when the owner of a servient estate buys the property of the dominant estate, thereby making the easement unnecessary.

The capitalization process uses a capitalization rate, which is based on what? Estimates of future sales Last year's sales The performance of comparable properties The stock market

The performance of comparable properties

Assuming no qualifying exceptions, who is responsible for handling real estate transaction negotiations in Arizona? The principals' brokers or their brokers' representatives The seller and the buyer's lender The transaction principals The transaction principals' lawyers

The principals' brokers or their brokers' representatives Arizona statute spells out that all negotiations in real estate transactions will be handled exclusively by either the transaction principal's broker or the broker's representative.

Accepting a borrower's deed in lieu of foreclosure allows the lender to avoid the cost of the foreclosure process. However, it will evaluate the property title and only accept if what other benefit can be proven? Existing junior liens on the property will be sufficient to cover any deficiency between the property value and the remaining balance of the loan. The borrower can qualify for additional mortgage or deed of trust loans in the future from the lender. The lender won't be liable for taxes due to cancellation-of-debt income. The property value is sufficient to recoup the remaining balance of the loan if sold on the open market.

The property value is sufficient to recoup the remaining balance of the loan if sold on the open market. (The lender only wants the deed to the property if its value will be sufficient to recoup the cost of the loan and leave the lender in a better financial position than a foreclosure would.)

Which option is true if a deed is not recorded after closing? The buyer must pay a fine to the seller. The entire closing is void. The property's legal ownership can be challenged. The title never changes hands from the seller to the buyer.

The property's legal ownership can be challenged.

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 cancellation policy and proof of the escrow account The public report submitted to the commissioner The public report submitted to the commissioner and terms of cancellation The terms of cancellation

The public report submitted to the commissioner and terms of cancellation

What dictates a leasehold estate's value? The length of the lease, and whether or not it's renewable The relationship between scheduled rent and the market rent The relationship between the lessee and lessor The wishes of the lessor, who owns the property

The relationship between scheduled rent and the market rent

Arizona law prohibits any city in Arizona from restricting the use of vacation rentals due to which of the following? The adoption of residential zoning ordinances The enforcement of residential use ordinances The protection of the public's health and safety The rental's classification

The rental's classification

Stan and Olivia put down a deposit on a home lot in a new subdivision. After a few months of waiting, they finally received a copy of the subdivision's public report and a proposed purchase contract. However, they are not able to execute the contract until they return from Ohio in two weeks. According to Arizona law, what happens if they can't enter into a purchase contract within seven days?

The reservation terminates, and the deposit must be returned.

In property ownership, what is an undivided interest? Ownership that includes all surface, subsurface, and air rights Sole ownership The right of each co-owner to use the entire property The right to transfer an interest in property to another

The right of each co-owner to use the entire property

Which of the following is a feature of the doctrine of prior appropriation? It's used mainly in the wetter eastern and midwestern states. The right to divert water is a key aspect. To own a claim to the water, you must purchase land that touches the water. Water usage is limited to those who own riparian land.

The right to divert water is a key aspect.

Who is responsible for requesting a loan payoff statement before closing? The buyer The lender The seller The title insurance representative

The seller Sellers are responsible for requesting a loan payoff statement before closing if they still owe on their mortgage at the time of the sale.

Simon is a buyer represented by Peter. Peter shows Simon several homes currently on the market. What is Peter's relationship to the sellers, if he doesn't represent them? Peter has no relationship with the sellers. Peter is a fiduciary for the sellers. The sellers are Peter's customers. The sellers are Peter's principals.

The sellers are Peter's customers.

In Arizona, there are two conditions—only one of which must be met—under which the commission will issue a public report. Which of the following is one of those conditions? A tribal council must hold the land. The land can't be located within a mountain water runoff zone. The land must be certified to not have a mine below it. The subdivider has obtained a written water commitment from a city, town, or water utility.

The subdivider has obtained a written water commitment from a city, town, or water utility.

In Arizona, under which circumstance may tenants withhold rent in an amount equal to property repairs? The landlord has failed to make repairs within one day of notice. The landlord has failed to perform safety-related repairs within one week. The landlord has failed to repair damages the tenant within 14 days. The tenant has given appropriate notice and waited a reasonable amount of time.

The tenant has given appropriate notice and waited a reasonable amount of time.

Landlord Lenny sells the four-family flat he owns. He notifies each tenant about this sale in writing. What else does Lenny need to do to ensure he's no longer liable under the rental agreement or law? He must have each tenant sign to confirm they've received the notification he sent them. He must have the notification he sends his tenants notarized. He must provide each tenant with a copy of the purchase agreement. There's nothing else he needs to do.

There's nothing else he needs to do.

Which of the following is true about net listings? The listing agent is guaranteed at least some commission. They don't include compensation for the buyer's agent. They often involve a conflict of interest. They're legal in all 50 states.

They often involve a conflict of interest.

Walt and Ginger were informed by their landlord that their option to purchase the bungalow they're renting has just been terminated. Which of the following things that can occur is likely to terminate an option to purchase? Ginger put up new curtains. They sublet the bungalow for a month without permission. They went on vacation and left the house empty for 12 days. Walt lost his job.

They sublet (Lease/rented) the bungalow for a month without permission.

Danette hasn't paid the first quarter water bill on her property. It was due on April 1. She's closing with the buyer, Jason, on April 1. What type of expense is this and how will it appear on the settlement statement? This is an accrued expense, and will appear as a buyer debit and a seller credit. This is an accrued expense, and will appear as a seller debit and a buyer credit. This is a prepaid expense, and will appear as a buyer debit and a seller credit. This is a prepaid expense, and will appear as a seller debit and a buyer credit.

This is an accrued expense, and will appear as a seller debit and a buyer credit.

What's the minimum number of business days prior to closing that lenders have to provide borrowers with the Closing Disclosure form? Five Four Three Two

Three

Why is it important to publicly record a deed? The title insurance policy schedule of exceptions will include anything that's publicly recorded. Title insurance policies don't cover publicly recorded events. Title insurance policies must be publicly recorded to be legal. Title representatives and attorneys who perform title searches look for documents that are publicly recorded.

Title representatives and attorneys who perform title searches look for documents that are publicly recorded

What is the purpose of the Truth in Lending Act? To better educate consumers about the cost of credit or obtaining a loan To establish loan terms that lenders must follow To require borrowers to disclose specific information to lenders To set strict restrictions on the amount of interest a lender may charge for a loan or credit

To better educate consumers about the cost of credit or obtaining a loan

Jennings has received a Closing Disclosure from his lender. What's the purpose of this form? To detail all costs Jennings will owe at closing To disclose the distribution of commissions that will occur at closing To estimate closing costs To estimate the seller's net proceeds

To detail all costs Jennings will owe at closing

The mortgage industry is made up of the primary and secondary markets. What's the role of the primary mortgage market? To loan money to banks To originate and fund mortgage loans to consumers To provide personal and consumer loans to individuals To purchase loans from banks

To originate and fund mortgage loans to consumers

What's the purpose of the ECOA?

To prevent discrimination in lending

Which of the following is the purpose of most calculations that real estate professionals make for their clients? To act as clients' financial advisor To advise the client about the tax implications of a purchase To provide information the client can use to help them make strategic decisions To qualify the client for a mortgage

To provide information the client can use to help them make strategic decisions

Arizona creditors who hold a junior lien on a property in foreclosure have which one of these rights? To accept a deed in lieu of foreclosure To purchase foreclosure rights from the senior lien holder To pursue a deficiency judgment prior to the foreclosure sale To reinstate the loan and take the position of the senior lien holder

To reinstate the loan and take the position of the senior lien holder

According to best practices, how far out should the decimals in your proration calculations be rounded? To the nearest $10 To the nearest cent To the nearest dollar To the nearest five decimal places

To the nearest cent

Why do brokerage firms purchase general liability insurance as a risk management method?

To transfer risk

Considering where pipelines and utilities can be located and their impact on the overall look in the subdivision are factors of ______. Development cost District zoning TDR Topography

Topography

The ______ was updated in 2016 and allows the EPA the authority to regulate chemical substances. Comprehensive Environmental Response, Compensation, and Liability Act Environmental Quality Incentives Program Superfund Amendments and Reauthorization Act Toxic Substances Control Act

Toxic Substances Control Act

An advertisement through which of the following sources may include a link to the name of the employing broker (rather than the full name of the employing broker within the ad itself)? Facebook Posters Twitter Yard sign

Twitter

Arizona Real Estate Advisory Board

Two members, each of whom is a real estate broker with at least five years of brokerage experience in this state. Not more than one member shall be appointed from any one county. Three members, two of whom have been engaged in residential real estate brokerage for the five years immediately preceding appointment, and one of whom has been engaged in multifamily residential rental property management with a real estate broker license for the five years immediately preceding appointment. Two members who are primarily engaged in subdividing real property. Three public members who are not related within the third degree of consanguinity or affinity to any person holding a broker's or salesperson's license from this state.

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? Five years One year Three years Two years

Two years Claimants must begin legal proceedings against a licensee to win a judgment within five years of the incident, but after the judgment has been awarded, they have two years to try to get restitution from the offending licensee and file a claim to the recovery fund if the licensee can't pay.

A/n ______ is the most flexible of the grandfathered rights, and it's granted to land that's never been irrigated. Exempt grandfathered right Irrigation grandfathered right Type 1 right Type 2 right

Type 2 right

Brendan's lender set him up with a loan in which the majority of Brendan's early payments go toward interest, his monthly payments remain the same, and he doesn't start paying much toward his principal until closer to the end of the loan. This is ______. A sub-prime loan Illegal Predatory lending Typical amortization

Typical amortization Amortization means the loan is paid off over time, with the interest paid first in decreasing increments and the principal paid in increasing increments as the interest owed is reduced.

Hank leases 150 acres from Sara and Jesse. He has an option contract attached to his lease, with an option to purchase that can be exercised within the next two years. What type of contract is this? Bilateral Executed Unilateral Voidable

Unilateral

In Arizona, when foreclosing on a house bought under an agreement for sale, the process ____. Has a 180 day right of redemption period Is exactly the same as foreclosing on a house bought under a deed of trust Is exactly the same as foreclosing on a house bought under a mortgage Varies depending on the amount the buyer has paid toward the purchase price

Varies depending on the amount the buyer has paid toward the purchase price Under an agreement for sale, the seller is NOT allowed to start forfeiture proceedings as soon as the buyer misses a payment. Sellers must wait a minimum period of time dependent on the amount the buyer has paid toward the purchase price.

Lack of capacity has made the contract non-binding, so the contract is _____. Illegal Unenforceable Void Voidable

Voidable

As part of the terms of the sales contract, the seller was supposed to provide a copy of the seller's disclosure but failed to do so. What type of contract is this? Implied Incomplete Valid Voidable

Voidable When one party doesn't meet a term of the contract, the contract is voidable by the other party.

ADWR administers or enforces all of the following EXCEPT ______. Irrigation non-expansion areas Policies for water conservation and distribution Surface and groundwater resources Water quality standards

Water quality standards Water quality standards are handled by a different department. ADWR is concerned with surface and groundwater conservation and distribution.

Roger's offer on Trenton's property was accepted. At what point in the transaction does Roger first get equitable title to Trenton's property? When he makes the first payment on his mortgage loan When the contract is accepted When the mortgage loan is paid in full When the transaction closes

When the contract is accepted When Roger's offer was accepted, he received equitable title to the property. He has the right to full ownership when the sales closes (dependent that the equitable title is transferred to the lender as security on the mortgage loan).

Fabiola and Rex just learned that their offer on Dena's condo was accepted. Dena's broker sent the contract to the escrow company, and Rex will drop off the earnest money tomorrow. When does escrow open? When Dena accepts the offer When the earnest money is delivered When the escrow company gets a copy of the contract When the title search is complete

When the escrow company gets a copy of the contract

When may a home warranty be purchased? Only at the time the property is listed Right after closing When something breaks When the property is listed or at the time of closing

When the property is listed or at the time of closing (Basically anytime during transaction)

In which of these scenarios is an Arizona property seller allowed to initiate forfeiture after borrower default? When the security instrument is a deed of trust, and the property is commercial. When the security instrument is a mortgage and the property is commercial. When the seller is a junior lien holder. When the transaction uses an agreement for sale.

When the transaction uses an agreement for sale.

Advertising or promotional materials must accompany a sale or lease notification for un-subdivided land to the Arizona Real Estate Commission. Which of the following must be clearly presented in the materials? An affidavit of mineral resource content of land A waiver of mining rights The name of the owner's personal bank Whether a water availability report has been issued

Whether a water availability report has been issued

Sondra thinks the new business contract she signed with her business partner is valid. Both parties are legally competent, the contract has a legal purpose, an offer was made and accepted, and a fee has been negotiated and documented. Which essential element of a valid contract has Sondra not yet considered? Whether consent was voluntary Whether the contract has been translated into all possible languages Whether the contract is in writing Whether the parties are over 21

Whether consent was voluntary

In Arizona, what must the Real Estate Commission determine within 15 days of receiving a completed public report for unsubdivided land? Whether buyers may begin putting deposits on lots Whether the owner is financially able to make improvements Whether the public report is administratively complete or not Whether the seller is a properly licensed real estate agency

Whether the public report is administratively complete or not

It's always a good idea for notices to and from a property manager to be ______. Conveyed through an attorney Notarized Oral Written

Written

Within how many days of a tenancy's termination and the tenant moving out of the dwelling must the landlord provide the tenant with a list of the deductions and the amount due and payable to the tenant in Arizona? Within 14 days (including weekends and legal holidays) Within 14 days (not including weekends and legal holidays) Within 30 days (including weekends and legal holidays) Within 30 days (not including weekends and legal holidays)

Within 14 days (not including weekends and legal holidays)

What must Arizona landlords provide to all new tenants before or at the beginning of their tenancy? A copy of the Arizona Landlord-Tenant Act A copy of the Fair Housing Act Written notification that the Arizona Residential Landlord and Tenant Act is available on the Arizona Department of Housing's website Written notification that they can verify a licensee's license status on the Arizona Department of Real Estate's website

Written notification that the Arizona Residential Landlord and Tenant Act is available on the Arizona Department of Housing's website

Aldrich is conveying marketable title to a property buyer. Should he also furnish a title insurance policy? No. Marketable title isn't insurable. No. Marketable title is perfect title, so there's no need for title insurance. Yes, because marketable title may have known defects that buyers could find unacceptable; title insurance will cover these defects. Yes, because title defects not revealed in a title search can crop up even with marketable title.

Yes, because title defects not revealed in a title search can crop up even with marketable title

Lisa represented a large land development company in Tucson that wanted to buy a large piece of land elsewhere in Arizona for a planned community. It settled on a 200-acre site outside of Flagstaff. Lisa, with the consent of her client, arranged a sales agreement for the property. Two months later, Andrew Scripps, the company owner, visited the site in Flagstaff for the first time. After carefully inspecting the site, he determined that the land was not suitable. Can he back out of the sale?

Yes, since he bought the land sight-unseen, and it is less than six months since the contract was executed.

Ruby's single-family home in an urban neighborhood was auctioned off at a trustee's sale. There was also a junior lien on the property for a home equity loan. Will Arizona's anti-deficiency statutes protect Ruby? No, the anti-deficiency statutes apply only to the loan that's being foreclosed and won't affect the junior lien. No, the anti-deficiency statutes only apply to judicial foreclosures. Yes, the statutes prohibit any deficiency judgments after a property is sold at a trustee's sale. Yes, the statutes protect Ruby because her property meets the requirements for a protected residential property.

Yes, the statutes protect Ruby because her property meets the requirements for a protected residential property.

You're representing Crystal in the purchase of a house. Crystal has a trust fund and can easily afford the house on which she's made an offer. Which of the following statements is true? Your duty of confidentiality to your client dictates that you not disclose your client's financial situation to the seller. Your duty of disclosure to customers and third parties requires that you disclose Crystal's financial status to the seller. Your duty of honesty and fairness to customers dictates that you must share with the seller Crystal's ability to pay more for the property than she offered. Your duty of working in your client's best interests means you should be showing her properties that are in a higher price range since she can afford it.

Your duty of confidentiality to your client dictates that you not disclose your client's financial situation to the seller.

Arizona property taxes are paid twice a year

def

A home warranty will cover things like appliances and major systems.

definition

Nearby industrial odor is an example of which type of depreciation? Curable depreciation External depreciation Functional obsolescence Physical depreciation

external depreciation (economic obsolescence) A loss in value that is caused by negative influences that are outside of a property's site, such as economic factors or environmental changes.

Which of the following is NOT an exception to the Interstate Land Sales Full Disclosure Act? cemeteries lots that are less than five acres in size lots with contracts for buildings lots with existing buildings

lots that are less than five acres in size

What does PITI stand for? Price, information, trust, interest Price, interest, taxes, insurance Principal, interest, taxes, insurance Public Insurance Trust Information

principal, interest, taxes and insurance.

The HUD requirements, administered by the Office of Interstate Land Sales Registration, apply primarily to _____. multifamily dwellings that are contained within residential stigmatized properties ownership transfers of a deceased individual's estate when there are multiple heirs subdivision lots located in one state and sold to residents of another state zoning requirements of industrial facilities that process hazardous waste products

subdivision lots located in one state and sold to residents of another state

Michael paid $385,000 for his home, which now has an assessed value of $392,000. His tax rate is 0.51%. How much will his monthly taxes be? $163.62 $166.60 $186.52 $297.50

$166.60 Explanation: assessed value x tax rate 392,000 x 0.0051 = 1,999.2 Monthly taxes = annual taxes / 12 mos in year 1,999.2 / 12 = 166.60

A seller wants to net $40,000 after paying the broker's commission of 5% and a loan balance of $170,000. Assuming no other closing costs, calculate the sales price of the property to the nearest whole dollar. $175,587 $210,000 $221,053 $225,040

$221,053 First start with 100% and minus the 5% which will leave you with 95% Secondly add 40,000 + 170,000 = 210,000 Lastly divide 210,000 by .95 = $221,053

According to the Interstate Land Sales Full Disclosure Act, the buyer of land covered by this law must be given the opportunity to rescind the sales contract within _____. 10 days 30 days 3 days 7 days

7 days

In Arizona, what is a public report? A report indicating the existence of groundwater below a prospective subdivision. A report issued by the Environmental Protection Agency that states the land is free from toxins. A report on the cost to the public of providing public services to the subdivision. A report that provides information about the water supply, soil, and other information that subdivision occupants need.

A report that provides information about the water supply, soil, and other information that subdivision occupants need

Which of these is NOT a result of Arizona's Groundwater Management Act of 1980? Adoption of stricter drinking water quality standards Creation of active management areas Mandatory creation of drought-preparedness plans The Assured Water Supply Program

Adoption of stricter drinking water quality standards

A CMA or a BPO is an example of ______. A formal appraisal An assessment An informal estimate of market value An inspection

An informal estimate of market value

Which of the following is true about the Federal Housing Administration's (FHA) qualifying standards for a mortgage loan? Allow lenders to approve 90% of borrowers Are different for first-time homeowners than for anyone who has owned a home before Are somewhat less stringent than standards for conventional loans Make borrowing with no cash down easy

Are somewhat less stringent than standards for conventional loans

Through the divorce process, Gail was granted ownership of the couple's vacation timeshare. Gail is ready to sell the timeshare but discovers that her ex-husband Daniel's name is still on the deed, creating a cloud on the title. What should Gail do? Ask Daniel to sign a general warranty deed so the new buyers enjoy all the deed covenants. Ask Daniel to sign a quitclaim deed to release his ownership share. File a quiet title suit against Daniel. Purchase a title insurance policy for the new owners to cover any eventual ownership issues.

Ask Daniel to sign a quitclaim deed to release his ownership share. Quitclaim deeds, therefore, are commonly used to transfer property within a family, such as from a parent to an adult child, between siblings, or when a property owner gets married and wants to add their spouse to the title. Married couples who own a home together and later divorce also use quitclaim deeds.

CAGRD sets up a system for water providers and residents to demonstrate a(n) ______ water supply. Assured Necessary Renewable Suggested

Assured Central Groundwater Replenishment District (CAGRD) Arizona's groundwater replenishment authority; monitors the system to demonstrate an assured water supply in accordance with the assured water supply rules

Mariah was appointed to a two-year term on Garden City's planning board. She's looking forward to meeting her fellow board members and working collaboratively on issues that affect their town. She's been told that the first order of business is a revision of the document that outlines the community's long-term needs and provides guidance on capital budgeting for those needs. What is this document called? Comprehensive master plan Special use permit Environmental impact study Zoning ordinance

Comprehensive Master Plan (CMP)

Which of the following is an example of a universal agent? Buyer's agent Conservator Escrow officer Listing agent

Conservator

What is ADWR's responsibility regarding wetlands? A)It doesn't have any responsibility for the state's wetlands. B)It is actively trying to rid Arizona of its wetlands, since this land doesn't contribute to water conservation efforts. C)It is in charge of conserving what small amounts of wetlands are left in Arizona. D)It's involved in protecting the remaining wetlands, and is also working to restore former wetlands.

D)It's involved in protecting the remaining wetlands, and is also working to restore former wetlands.

Layla, a licensee, has had a few casual meetings with a potential client, Marcus. Marcus has told Layla the type of home and locations he's interested in. Layla has mentioned a few homes that she thinks Marcus might be interested in. Although Layla hasn't said that she will continue to look for homes for Marcus, Marcus believes she'll do just that. Which of these statements about this situation is correct? A)Because Layla doesn't know if Marcus is working with another agent, she's just inadvertently created a dual-agency situation. B)Because Layla has performed some agency tasks for Marcus, she has an express agency agreement with him. C)Layla and Marcus have no agency agreement, either express or implied until Layla begins showing Marcus homes. D)Layla's actions may have created an implied agency agreement with Marcus.

D)Layla's actions may have created an implied agency agreement with Marcus.

What's the primary source of funds for commercial banks? Bank fees Demand deposits Government funding Proceeds from property sales

Demand deposits

Broker Malcolm submits his client's purchase offer, then goes on vacation. When he returns two weeks later, he learns that a counter-offer was submitted, and the response date had expired. His client's offer was terminated because he failed to respond on time. This violation is an example of ______. Demonstrating untrustworthiness or incompetency to act as a real estate broker Failing to disclose an agency relationship Making a substantial and willful misrepresentation Performing services that would qualify as practice of law

Demonstrating untrustworthiness or incompetency to act as a real estate broker

Residents of Tinytown have been complaining to town officials that the village-like character of their town is being affected by the medium-rise condos that developers are building on the edge of town. In response, local government officials rezoned the areas on the edges of town as parklands. What type of zoning is this? Aesthetic zoning Downzoning Incentive zoning Spot zoning

Downzoning

Gene and Alex bought a property that backed up to a neighborhood park. The previous owner mentioned that ever since the park was built eight years ago, the next door neighbor who works at the park has cut through the yard to get to the park rather than going around via the streets, which saves about half a mile. What kind of easement is this? Easement by prescription Easement in gross Express easement Visible easement

Easement by prescription So for example, if your neighbor creates a path across your property to the woods where he hunts, and he uses the path for 5 years without any objection by you, your neighbor can obtain a prescriptive easement to use that path.

What information does Schedule B-2 of an ALTA title commitment provide? Basic facts related to the transaction and property, including a legal description Exceptions and flaws that the title insurance policy will not cover Information on how to dispute a title commitment Requirements that lenders must meet before a title policy will be issued

Exceptions and flaws that the title insurance policy will not cover

Which federal entity determines floodplain areas? FEMA FHA HUD USDA

FEMA The Federal Emergency Management Agency (FEMA) has placed more than 20,000 communities in the United States into a category of flood zones. Each community is able to participate in the agency's National Flood Insurance Program (NFIP), with premium rates determined by the risks of flooding.

Jeremy owns undeveloped acreage deeded to him by his aunt. In the middle of the property is a beautiful old tree. His aunt gave him the property to hold so long as the tree lives, at which point it will automatically revert to her (or her heirs if she's dead). What type of estate in this property does Jeremy have? Fee simple absolute Fee simple conditional Fee simple determinable Fee simple subject to a condition subsequent

Fee simple determinable a determinable fee simple estate is one that automatically terminates upon the occurrence of a specified event or the cessation of use for a specified purpose and will revert to the grantor

Which type of an estate doesn't end automatically when the stated event or condition occurs? Fee simple absolute Fee simple determinable Fee simple subject to a condition subsequent Freehold

Fee simple subject to a condition subsequent This is a description of a fee simple subject to a condition subsequent. The grantor can reclaim ownership by taking action.

You are working as a buyer's agent in Arizona. The listing agent hasn't yet paid you your portion of the commission split even though the closing was several weeks ago. If there's a dispute about the amount of your commission, what can you do? File a civil court action (lawsuit). File a license law violation complaint with the Arizona Real Estate Advisory Board. File an ethics complaint with NAR. File an ethics complaint with the Arizona Department of Real Estate.

File a civil court action (lawsuit).

Identifying the purpose of the appraisal leads the appraiser to do what next? Determine highest and best use. Estimate value of land. Identify data needed. Use three approaches to estimate value.

Identify data needed.

Sole ownership of real estate means title is held ______. As a single tenant In common In severalty In sole mio

In severalty Estate in severalty is sole ownership of real property.

Rhonda and Oliver bought an old schoolhouse with the hope of transforming it into a residence. They owned the property as joint tenants. After Oliver died, how did Rhonda own the building? As a joint tenant with rights of survivorship As a tenant in common with Oliver's heirs In severalty In trust

In severalty In a joint tenancy both owners have equal interest in the property. Joint Tenancy has a "right of survivorship" where if one owner dies the surviving owner takes the whole property. Which turns into a tenancy in severalty where the property only has one owner.

What purpose does bulk zoning serve? It homogenizes the look of the area. It keeps similar races together. It provides increased density. It restricts building density.

It restricts building density.

Johnny is overwhelmed by the amount of work that goes into being a landlord and has too many requests for repairs from his tenants. He needs to choose one of these to hold off on for now. Which repair can he legally postpone completing? Evie's key broke in her deadbolt and she can't lock the front door. Jay clogged up his toilet again, and still hasn't bought himself a plunger. The lights and outlets aren't working in Ethan's living room. The water to Julie's shower won't turn on.

Jay clogged up his toilet again, and still hasn't bought himself a plunger.

Which of these is an example of a legal covenant not to compete? A)Frederick and the licensees in his firm agree to not split commissions with Hometown Realty agents. B)Joe leases a strip mall space to Ron's Running Shoes and agrees to not rent any other space in the mall to another shoe store. C)Martha sells bakery supplies and signs a one-year agreement with Cakes by Connie to provide all her baking supplies. D)The brokers from Tempe Realty agree with Downtown Realty to not provide services to clients in the downtown area.

Joe leases a strip mall space to Ron's Running Shoes and agrees to not rent any other space in the mall to another shoe store. Covenant definition : a formal agreement or promise, usually included in a contract or deed, to do or not do a particular act

Ryanne is a tenant in a single-family home owned by Dominick. What type of interest does Ryanne have in the property? Freehold Homestead Leasehold Lifelong

Leasehold

How can borrowers reduce the term of their mortgage and the interest paid when they don't elect either a shorter term loan nor a bi-weekly payment plan? Making additional interest payments throughout the loan's term Making bi-weekly payments Making extra principal payments throughout the loan term Making payments that create a negative amortization situation

Making extra principal payments throughout the loan term

Which person or entity works with many different lenders to find the best loan for the customer? Commercial bank Credit union Mortgage banker Mortgage broker

Mortgage broker

What kind of budget serves two primary purposes: to help property managers maximize profitability and to avoid unforeseen major expenses? Cash reserve Expense Operating Stabilized

Operating An operating budget helps maximize profitability and avoid unforeseen major expenses and repairs. -An operating budget can be used to identify problems.

For what environmental issue are CFCs blamed? Carbon monoxide poisoning Ozone depletion Radon levels above 4 pc/L Water contamination

Ozone depletion Chlorofluorocarbons (CFCs) are a group of odorless manufactured chemicals. Because they damage the earth's ozone layer, CFCs have been banned since 1996. Organic compounds made up of atoms of carbon, chlorine, and fluorine.

Which of the following circumstances would likely constitute an emergency, giving a landlord the right to enter a tenant's premises without notice? Curiosity Inventory of valuables for building insurance Prevention of property destruction Spot check for cleanliness

Prevention of property destruction

Property owners may keep, sell, or lease their rights. Which of the following do those rights include? Collusion Encroachment Profit and license Tax-free status

Profit and license

With the exception of state liens or encumbrances, what type of lien takes priority over all others? First mortgages HOA assessment liens Mechanic's liens Property tax liens

Property tax liens

Roberto and Tabitha are purchasing Glenn's house. The inspection report was late, and Roberto and Tabitha missed the 10-day inspection deadline. What is Glenn required to do based on the AAR purchase contract cure period provision? Give Roberto and Tabitha another 10 days to complete the inspection. Provide a three-day cure notice to Roberto and Tabitha. Request the inspection report from the inspector. Terminate the contract.

Provide a three-day cure notice to Roberto and Tabitha.

Which of the following must a landlord in Arizona do in regard to bed bugs? Ask tenants each month if they have noticed any signs of an infestation. Provide educational materials on the subject of bed bugs. Provide reimbursement for any medical charges resulting from a bed bug infestation. Replace all infested mattresses and furniture in an infested unit.

Provide educational materials on the subject of bed bugs.

The Hendersons don't have enough money to make the full 20% down payment their institutional lender requires. To close the sale, the seller is willing to finance a loan for the amount between the home's list price and what the institutional lender is willing to loan. What's this type of financing called? Equity mortgage Purchase agreement Purchase money mortgage Seller-insured loan

Purchase money mortgage

What are the three primary acts that impact mortgage loan disclosure? RESPA, TILA, and Dodd-Frank RESPA, TRID, and Dodd-Frank TRID, TILA, and Dodd-Frank TRID, TILA, and ECOA

RESPA, TILA, and Dodd-Frank RESPA, TILA, and Dodd-Frank are the three primary acts that impact mortgage loan disclosures. TRID is an acronym for TILA-RESPA Integrated Disclosures (the LE and CD).

Which of the following is a true statement regarding record keeping requirements for Arizona real estate licensees? Records are subject to ADRE audit. Records must be stored electronically. Records must be stored electronically, in hard copy, or both, but must be available to be produced within 48 hours of a ADRE request. Records must be stored in hard copy, off site, in a fireproof filing container.

Records are subject to ADRE audit. (Records must also be available to be produced in 24 hours of a ADRE request)

What discriminatory lending practice by lenders resulted in the destruction of whole neighborhoods, with perfectly good housing left abandoned? Blockbusting Gerrymandering Redlining Steering

Redlining Redlining is the practice of denying a creditworthy applicant a loan for housing in a certain neighbor hood even though the applicant may otherwise be eligible for the loan.

Which commitment section matches the schedule to its description and provides information related to the transaction, including legal description and parties? Schedule A Schedule B-1 Schedule B-2 Schedule C

Schedule A

Which of the following is a characteristic of a cooperative? Can be sold, similar to other properties. Ownership includes air space within the unit and shared ownership of common areas. Share of mortgage interest and real estate taxes are deductible on personal income tax returns. Subletting is often allowed, with some restrictions.

Share of mortgage interest and real estate taxes are deductible on personal income tax returns.

Arizona designated broker Rhonda decides to keep all of her transactional records in electronic format. Which of the following is true about Rhonda's new practice? She may be committing an ethical breach. She must be able to produce the records within 24 hours. She must keep off-site hard copies as well. She's actually breaking the law by using electronic records.

She must be able to produce the records within 24 hours.

Arizona landlord Tara receives a notice of a trustee's sale on the property she's already rented out to tenant Will. What is Tara's obligation under the law? She must send Will a written notice of this within 10 business days of receiving the sale notice. She must send Will a written notice of this within five business days of receiving the sale notice. She must tell Will about this within 10 business days of receiving the sale notice. She must tell Will about this within five business days of receiving the sale notice.

She must send Will a written notice of this within five business days of receiving the sale notice.

Charlise has an important meeting this afternoon and dropped by her firm's Mesa office to restock her supply of real estate employment agreements because she'll need one for her meeting. What do we know about her meeting? A)She'll be meeting with another licensee to discuss how they'll work with the same client and the amount of the commission split. B)She'll be meeting with a potential client. C)She'll be meeting with her broker to discuss becoming a salaried employee. D)She'll be meeting with property owners to discuss becoming their leasing agent.

She'll be meeting with a potential client. (A real estate employment agreement is Arizona's term for a listing agreement or buyer agency agreement.)

What occurs when people occupying a building begin to feel unwell due to air quality issues? Chemical sensitivities Chronic asthma Sick building syndrome VOC illness

Sick building syndrome

Arizona broker Sarah has had a trust account open for six months now. How many times has Sarah had to reconcile and record a reconciliation for this trust account? Approximately 24 times, because the account must be reconciled once per week. Six times, because the account must be reconciled once per month. Twice, because the account must be reconciled once per fiscal quarter. Zero times, because the account will be reconciled upon closing.

Six times, because the account must be reconciled once per month. The trust account reconciliation should be completed at the same time each month to coincide with the date of the bank statement.

Suppose Garnett and Kennedy own a downtown apartment in tenancy by the entirety. If Garnett dies, what type of ownership does Kennedy now have? Joint tenancy Sole Ownership Tenancy by the entirety Tenancy in common

Sole Ownership Tenancy by the entirety is a legal arrangement where a married couple shares equal ownership of a property, and ownership automatically passes to the survivor if their partner dies.

If a landlord wants to notify a tenant that the leasehold interest in the property is subordinate to a mortgage, what clause would be included in the lease? Mortgage clause Subjective clause Subordination clause Use clause

Subordination clause

The Arizona Department of Real Estate will occasionally produce ______ offering advisement on some regulations. Administrative codes Advisory bulletins Revised statutes Substantive policy statements

Substantive policy statements

Which form of real property ownership requires five unities to create and gives owners the right of survivorship, but doesn't allow owners the right to sell the fractional interest owned? Estate in severalty Joint tenancy Tenancy by the entirety Tenancy in common

Tenancy by the entirety

Which one of these forms of ownership gives owners the right of inheritance and allows co-owners to sell their fractional undivided interest without permission from other co-owners? Estate in severalty Joint tenancy Tenancy by the entirety Tenancy in common

Tenancy in common A tenancy in common (TIC) defined as an estate that has shared ownership, in which each owner owns a share of the property

What would a landowner applying for a zoning variance have to demonstrate to the zoning board of appeals? That the current zoning restrictions are causing the owner unnecessary hardship That the owner has the means to finance any construction needed for the new use That there is sufficient demand in the community for the proposed use That the use proposed is the highest and best use of the property

That the current zoning restrictions are causing the owner unnecessary hardship

What source of Arizona real estate law consists of codified regulations that carry the force of the law without being laws themselves? The Arizona Administrative Code The Arizona Regulatory Handbook The Arizona Revised Statutes The Arizona State Constitution

The Arizona Administrative Code

How is a loan assumption documented? The buyer and seller both sign an assumption agreement. The buyer must add his or her signature to the existing promissory note and security instrument, which must be recorded. The lender must return the promissory note to the original maker and attach a new note to the security instrument. The loan is refinanced with a new loan agreement.

The buyer and seller both sign an assumption agreement An assumption agreement allows a third party to "assume" or take over the loan of the property's seller.

Ad valorem taxes are based on what? The property's assessed value The property's market value The property's mortgage value The property's square footage

The property's assessed value Ad valorem means according to value

Clarence is a Gilbert broker who's performing a three-step reconciliation. He's compared the bank statement balance—adjusting for any outstanding checks or receipts—to the balance on his receipts and disbursements journal for the same date. How should these numbers compare? The journal amount should be larger than the bank balance. The journal amount should be smaller than the bank balance. The journal should include interest that doesn't show up on the bank statement. They should match.

They should match.

An Arizona judicial foreclosure gives junior lien holders which one of these rights? To accelerate the junior lien To pay off all amounts owed to the senior lender and then continue with the foreclosure To reinstate the loan and take the position of the senior lien holder To take title to the property by paying all other creditors holding a lien on the property, including the foreclosed loan

To pay off all amounts owed to the senior lender and then continue with the foreclosure

An Arizona house was foreclosed on and sold at a trustee sale. The proceeds from the sale exceeded the loan amount, foreclosure process costs, and other liens secured by the property. The excess funds are given to the _____. Lender State Trustee Trustor

Trustor

Which of the following is an instance when an Arizona landlord can bring an action for possession against a tenant? Any time after the lease has expired Any time a tenant is in breach of the lease When a lease term has expired, the tenant has been properly given notice and has failed to vacate the premises Whenever the landlord does not intend to renew a lease

When a lease term has expired, the tenant has been properly given notice and has failed to vacate the premises

While at the local hardware store, you run into one of your clients. She is picking out windows to have installed in the home after closing. What is the best advice you can give her? You show her window decals she can put on the windows to block out the sun. You tell her double-pane windows are better than single-pane windows. You tell her she should also consider buying curtains. You tell her that she'll need a building permit and a licensed contractor to do the work.

You tell her that she'll need a building permit and a licensed contractor to do the work.

As an Arizona licensee, what happens to you if a consumer is paid a claim on your behalf from the real estate recovery fund? Nothing. That's what the fund is for! You can continue to practice real estate but must reimburse the fund at 10% interest. You must reimburse the fund with 10% of your real estate commissions until it's fully repaid. Your license will be automatically terminated.

Your license will be automatically terminated.