Arizona Real Estate - Out of state exam prep Flashcards

Arizona Real Estate - Out of state exam prep Flashcards Cam is a broker. His licensees, Jane and John, represent two sides in a single transaction. Jane represents the seller; John represents the buyer. What relationship does Cam have to the buyer and the seller?Cam is a dual agent to both the buyer and seller.The transfer of land through eminent domain or condemnation is known as what?Involuntary alienation - Eminent domain and condemnation are considered involuntary alienation 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 - The Closing Disclosure, provided at least three business days before closing, details the buyer's closing costs, as well as other loan terms, such as the projected monthly payment.Susan is a real estate licensee. Her mother is moving to a facility for active seniors and has asked Susan to sell her home. What information does Susan need to disclose to prospective buyers?She is related to the seller (her mother). - Susan has a personal interest in selling her mother's home. She needs to disclose that this is her mother's property.Morty, a land surveyor, was called out to survey a property.After doing some research, he located the legal description for the property in question. Now, if he could just find the point of beginning located at the iron pin on the southerly line of state route 117, 30 feet east of the oak tree next to Bear Creek. What type of legal description is Morty working with?Metes and bounds - Point of beginning is common with metes and bounds descriptions.To calculate property taxes, multiply the ______ by the tax rate.Assessed value - To calculate property taxes, multiply the tax rate by the assessed value.Which of the following duties do Arizona licensees owe to their clients, according to Arizona statute?Obtain information that might be impactful to your clients' decisions in the transaction. - Arizona licensees are expected to exercise reasonable care in ensuring that they obtain information material (impactful) to a client's interests and accurately communicate the information to the client Your client has just bought a property that includes a well that pumps 45 gallons a minute. What kind of well is it?Non-exempt - Any well that pumps more than 35 gallons a minute is non-exempt.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"

• Advertisements for property must clearly identify that it's

being offered by someone licensed in real estate, not by a private party.The Arizona State Constitution empowers licensees to

______.

Draft and fill out documents incidental to real estate transactions - Article 26 of the Arizona State Constitution empowers licensees to draft or fill out, without charge, any and all real estate transaction instruments, such as purchase agreements, earnest money receipts, mortgages, leases, and bills of sale.

If an Arizona licensee misses the deadline for the continuing education requirements, the Arizona real estate commissioner can grant a waiver or additional time if the licensee shows Good cause - The real estate commissioner reserves the right to waive all or a portion of a licensee's CE requirement or grant additional time if the licensee submits a written request showing good cause for the waiver/additional time.Which of the following is true about Arizona real estate licenses?Licensees may only hold one license at any given time. - While a licensed broker or salesperson may engage in cemetery or membership camping sales without holding a separate license, not more than one license will be issued to a licensee at any time.Arizona licensees are _____ represent(ing) more than one party to a transaction without the prior written consent of all parties.Prohibited from - Arizona statute states that licensees must not represent more than one party to a transaction (dual agency) without the prior written consent of all parties.Which of the following isn't required to be filed with the Arizona Department of Real Estate as part of the timeshare public report application?The business organizational chart and proof of business operation for at least one year - The public report application doesn't include a minimum number of years of operation or a full business organization chart.Which of the following is a true statement regarding record keeping requirements for Arizona real estate licensees?Records are subject to ADRE audit - It's fine for licensees to retain transactional records electronically, subject to certain conditions. One of those conditions is having the ability to access them within 24 hours of a ADRE audit.The Arizona law governing timeshares is the ______.Arizona Timeshare Owners' Association and Management Act - Arizona Timeshare Owners' Association and Management Act governs the actions of developers to protect consumers in sales, advertising, and promotions.Steve is preparing a market analysis for the Joneses and has selected three comparable properties. How many adjustments should Steve make to the Joneses' property?Zero - Steve won't adjust the subject property. Only the comparable sales price is adjusted. If it is inferior, adjust upward. If it's superior, adjust downward.Your clients received a check for $395,000 when they sold their property, which they owned free and clear. Their closing expenses were $4,575, and they paid 5% in brokerage fees. What was the sales price of their property?Round to nearest whole dollar.$420,605 - 100% - 5% = 95% (.95), and $395,000 + $4,575 (before commission) = $399,575. $399,575 ÷ .95 = $420,605 (rounded).With which of the following problems can ADWR help?Willis wants to know if he has the right to irrigate a piece of land that's been in his family for generations. It's in an INA.

• ADWR has the authority to help Willis learn if he can

irrigate or not A lot measuring 108,900 square feet is for sale. How many acres is this?Two-and-a-half - An acre is 43,560 square feet, so 108,900 square feet is equal to two-and-a-half acres.When a property is sold at an Arizona non-judicial foreclosure, the auction is called a ______.Trustee's sale - When the non-judicial process is used, the foreclosure sale is called a trustee's sale.Which of the following should be filed in the questionnaire section of the Arizona public report application?Subdivision information - Subdivision information is filed in the questionnaire section, while the subdivision map is included in the required documents section.

Stephen lives on-site at an apartment complex where he manages the property. This is the only building he manages, and he doesn't receive any special compensation. Does Stephen need to be licensed to do his job?No, he doesn't need to be licensed in this case. - Property managers who live on-site and are residential leasing agents, as long as they conduct property management at only one location during their work day and don't receive special compensation, do not need to be licensed in Arizona.Darius is the buyer's agent for a transaction in which Cynthia (from a different brokerage) listed her seller client Allison's property. From whom will Darius receive his compensation?From his own broker - Licensees may receive compensation for real estate services only through their broker.A 30-unit income-producing property has a sales price of $6 million. Annual gross income is estimated at $500,000.What's the gross income multiplier?12x - The gross income multiplier is the sales price divided by gross income. Improperly calculating GIM could lead an investor to purchase a property that turns out to be a poor investment George is an Arizona salesperson representing a seller client in a real estate transaction. His employing broker, Hannah, is preparing a written disclosure to give to the transaction parties regarding who will receive compensation from the transaction. When will Hannah need to provide the compensation disclosure?Before closing - The broker must disclose to all the parties in a transaction, in writing before closing, the name of each employing broker who represents a party to the transaction, and who will receive compensation from the transaction.Which act gives consumers the right to access information held by consumer reporting agencies?Fair Credit Reporting Act - The FCRA gives consumers the right to access information held by consumer reporting agencies.Which of the following individuals would be ineligible for a real estate salesperson license in Arizona?Martin, who has been convicted of a felony - The Department CANNOT issue a license to a person who's been convicted of a felony, who is incarcerated, paroled, is under community supervision, or is on probation.Avery is about to close on his first home. What will protect him from financial loss if his ownership later comes into question?Title insurance - Title insurance protects property buyers from financial loss due to title defects. However, it covers only those items included in the policy.Which of these is the best description of what CAGRD does?It provides a system to demonstrate assured water supply.

• CAGRD provides a system for residents and water

providers to demonstrate an assured water supply in accordance with state rules.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?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.Lack of capacity has made the contract non-binding, so the contract is _____.Voidable - The two parties may still wish to be bound by the contract, but the party lacking capacity has the option to terminate.Which of the following is not a component of waste that needs to be periodically removed by professional septic pumping companies?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

What organization enforces privacy protection laws?Federal Trade Commission - The FTC is responsible for enforcing privacy protection laws Arizona Administrative Code rules apply to what sort of real estate advertisements?Arizona Administrative Code rules apply to ALL real estate advertisements. - Online, Print, Private etc What does a POA do?Gives one party the authority to act on behalf of another party - A power of attorney is a legal document that gives one person (called the agent or attorney-in-fact) the authority to act on behalf of another person (the principal) 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 - This describes a judicial foreclosure situation, so after borrower default, the lender accelerates the loan and files a court action requesting foreclosure.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 permitted to draft and fill in real estate transaction-related contracts and documents based but may not charge for this service. - Article 26 of the Arizona State Constitution empowers licensed real estate brokers and salespersons to draft or fill out any and all instruments of a real estate transaction, such as purchase agreements, earnest money receipts, deeds, mortgages, leases, and bills of sale. Licensees may not charge clients for this service.Which of these is NOT a benefit that the CAP project brought to Arizona?New, larger dam projects across the state - CAP required construction of tunnels, pipelines, pumping plants, and aqueducts, but no dams.Arizona employing brokers and the designated brokers who work on their behalf carry responsibilities to supervise their employees, including all of the following EXCEPT _____.Offering continuing education courses to their employees - Arizona employing brokers and the designated brokers who work on their behalf aren't required to offer CE courses to their staff.Which of the following laws requires that contracts-including contracts made for the sale of real estate or for leases of more than one year-be in writing?The statute of frauds - The intent of the statute of frauds is to prevent injury from fraudulent conduct in certain types of agreements, including the transfer of real property.Lucy inherited some land. When she makes the drive to check on it about two years later, she finds that, to her surprise, someone is living in a small cottage on that property. What's this an example of?Adverse possession - Adverse possession means that someone lives on, or possesses, the property without the owner's permission.Jeanine has an exclusive right-to-sell agreement with her listing agent, Tera. Which of these statements about Tera's compensation is true?The exclusive right-to-sell agreement means that, under contractual obligation, the broker will be paid no matter who brings the buyer to the transaction. - The exclusive right-to-sell agreement establishes a contractual obligation for the client to compensate the brokerage firm no matter who finds the buyer (or the property), provided the terms of the contract are met.Which of the following incidents would NOT require a licensee to notify the Arizona Department of Real Estate?Loan application - Adverse judgments and personal information changes require department notification, but