Arizona Real Estate Practice Questions Flashcards

Arizona Real Estate Practice Questions Flashcards A trustor lists his property for sale on May 1. On May 2 he was notified of default on the trust deed, which default had occurred 45 days prior to notification. The trustor, under

these conditions:

May sell the property within the 90 day reinstatement period All of the following would apply to a buyer broker exclusive

employment agreement EXCEPT:

Legal description of the property Permanent finance payments would include which of the following?Principal and interest Market price is closest to:The amount of money given in exchange for the property (value in exchange) What would NOT apply to an easement appurtenant? Prescription In an agreement for sale, when does title convey? Upon the last payment What would NOT be provided for in a non-recourse loan?Deficiency judgment Jones sells his property to Smith but Jones stays on the

land. Jones holds:

An estate at sufferance What is market value?The price the property is likely to bring in an "arm's length" transaction

Real estate loan usury rates are set by: State laws

A title free from defects that an owner has the right to

convey is a/an:

Marketable title

Negligence that causes harm is a/an:Tort

A third party named to receive the life estate upon the death of the original grantee of the life interest is known as

the:

Vested remainderman Which of the following is not essential to a valid contract?monetary consideration An easement that conveys along with the title to a

dominant estate is known as:

An appurtenant easement What document lets a buyer and seller see the costs involved with closing the transaction?HUD-1 statement Which of the following would NOT terminate an agency relationship?Accepting an offer and opening escrow Termination of joint tenancy with rights of survivorship is

accomplished by:

Deed by one or more property owner Prorated taxes would be shown on the settlement

statement as a:

Credit to buyer, debit to seller What is not an encumbrance?Warranty deed What document is recorded with the deed? Affidavit of value An Arizona real estate licensee may not charge for

document preparation according to:

Arizona Constitution Article XXVI The owner of a two-family residence lists the property with New Age Realty. Two weeks later, an offer comes in from a

financially qualified woman with two children. Living in one of the units, the owner decides to reject her offer. Which law has been violated?The Federal Fair Housing Act

Which best describes a layer of clay or other impermeable material installed over the top of a closed landfill to prevent entry of rainwater and minimize leachate?cap A real estate broker, in the typical agency relationship with

a seller, is a/an:

Special agent After a mortgage is being foreclosed, if the sale amount was insufficient to cover the debt, the lender may ask for a/an?Deficiency judgment A salesperson earns $75,000 per year. If he receives 75% of the 7% commissions paid to his firm on his sales, what is his monthly dollar volume of sales?

$119,047

The difference between the actual value of a property and

the total amount of liens against the property would be:

The owner's equity While determining the net operating income of an investment property, an appraiser will take into account all

of the following except:

Interest expense What is the purpose of a date in an appraisal report?Define the market Conditions under which the appraisal was made Property listed at $150,000 and sold for 10 % less. It is subsequently re-sold for 20% more than original listing.What was the percentage of profit?33 percent A title company is employed by a lender to collect payments on a deed of trust, what is the title company called?Servicing agent

How many acres are in the following description: NE4 SW4

and the SE4 NW4; SE4 SW4 NE4 Section 22:

90 Seller and buyer sign a purchase contract. The buyer

wishes to give it to another party. This action is called:

Assignment

A subordination clause is most often used in a: Trust deed

What deed would place the least liability on the grantor?Quit claim Within how many days after property transfer shall a buyer submit a completed transfer form and file with ADEQ 15 days

In real estate terms, an estate for years also may be called:A leasehold

A buyer and a seller were separated in negotiations by only five hundred dollars. The listing and sales agent agree to reduce the commission by that amount to make the deal.Each agent gives their clients two hundred and fifty dollars after closing. What unethical practices exist here?Undisclosed inducement and dividing commissions with non licensees The back-end ratio of a loan would apply to: Total monthly obligations divided by gross monthly income Buyer purchases property and receives a warranty deed.What would not transfer with the deed?Annual crops What warrant indicates that the grantee is the owner of the property?Seizin

The mortgagor is:The borrower

Chemicals used in refrigeration, air conditioning, insulation, and aerosol propellants that drift into the upper atmosphere where their chlorine components destroy ozone are called CFCs What is the rescission time when a party purchases a timeshare?

• calendar days

The clause in a deed which sets forth or limits the extent of

the interests in the title being conveyed is:

The habendum clause

The effective rate of interest is best described as:Annual percentage rate

Which of the following is NOT necessary for a valid transfer of title to real estate?Recording of the deed Who benefits from the assignment of rents clause? Beneficiary Where would the exceptions and reservations appear on a title report?Schedule B

An instrument that conveys a grantor's interest is called a:Deed

Which of the following requires probate? Tenancy in common The customary procedure for arriving at the fair market

value of an office building for selling purposes is:

Figure the adjusted gross income, deduct all costs of operation, and divide the net operating income by the current rate of return for this type of investment What agency oversees Active Management Areas and regulates ground water?

ADWR A listing agreement is a mutual agreement between a

broker and a principal and is considered:

An authorization to sell What law creates an automatic lien on a commercial property, subject to the listing agreement?Broker lien law

A defeasance clause would apply to:Deed of trust

The VA funding fee would change based on: Loan to Value

What event will create an involuntary life estate?Dower interest becoming cohate Which of the following does not relate to appraising?Establishing value A property described as T5N, R4E of the GSRB&M is located between _____ and _____ miles north of the base line.24 and 30 A valid warranty deed must contain all of the following

elements, except:

Signed by grantee Title to personalty is conveyed by means of a document

called:

Bill of sale A residential tenant with a month-to-month lease enjoys which leasehold estate?Periodic tenancy What law requires lenders to limit the amount of funds that can be held in reserves?

RESPA

The Gila and Salt River Baseline runs:East and west

Which of the following is NOT synonymous with "title"?Possession When land is offered interstate it would be regulated by the Office of Interstate Land Sales Registration. What number of lots must be offered for the regulation to take place?100 or more