AZ Real Estate exam questions Flashcards

AZ Real Estate exam questions Flashcards

The smallest area to survey would be:Lot and Block

Recourse Loana loan that allows the lender to seek repayment from the borrower's personal assets Ernest Moneyit shows buyers sincere intention (putting skin in the game), and serves as liquidated damages thus protecting seller if buyer breaches. Note that earnest money is not required but does bolster an offer.Deed of Reconveyanceis to indicate that the borrower has been released from the mortgage debt. The deed transfers the property title from the lender, also called the beneficiary, to the borrower. This document is most commonly used when a mortgage has been paid in full When an attorney gives an abstract of title, he would also

give:

An opinion.

Building codes are primarily enforced by: the issuance of permits

Constructive fraud is also known as:Constructive fraud is an unintentional concealment or omission of a material fact, also known as negligent misrepresentation.Notary ClauseThe notarial clause is signed by the notary, stating that the mortgage was signed freely and voluntarily by the borrower.Conveyence clauseThe conveyance clause states that the property is being conveyed in a deed, not a mortgage.The homestead exemption protects which of the following?Protects the equity in your primary residence. (up to $150k) If the seller retains the buyer's earnest money due to a contract breach, this would be called Liquidated damages To receive a tax-free sale of your principal residence, the homeowner must live in the property as their principal

residence for at least:

Homeowners seeking the tax-free gain exemption from the IRS must live in their home for at least 2 years.A subdivision public report is required on the following properties except?Commercial Lots-The public report statutes do not regulate commercial lot sales.An out-of-state prospect asks an agent to locate a diverse

neighborhood for him. The agent should:

A real estate agent has no duty or obligation to provide demographic data that would have the effect of limiting housing choices.Which is not considered a fractional section? section 32 is a standard section Federal Emergency Management Agency (FEMA) is

responsible for:

Flood are maps Improved subdivided property is defined as: A parcel of land on which a structure has been built-Improved subdivided property is defined as a parcel of land that has a structure or will have a structure in the next two years.

Who signs a deed of re-conveyance?The Trusteeeeee At what point does recordation take place? The document is recorded at the close of escrow and priority of the lien is established by the docket and page number.Short term capital gains are taxed atordinary income tax rates When a person has the right to use the water adjacent to

his land, this is referred to as:

Riparian non-recourse loana loan that limits the lender's repayment options to the assets of the business and the collateral at risk Which best describes prior appropriation? First in time, First in right. The oldest permit holder has the legal right to first use of the water.Which of the following defines an encumbrance? A limitation that is attached to the property Which applies to Tenancy in commonAll other co-ownership tenancies have an "equal undivided shares". Tenancy in common has "fractional shares or interests" which can be unequal.Before placing or erecting a sign giving notice that specific property is being offered for sale, lease, rent or exchange,

a licensee shall secure:

According to Commissioner's Rule R4-28-502 (I): before

placing or erecting a sign giving notice that specific property is being offered for sale, lease, rent, or exchange, a salesperson or broker shall secure the written consent of the property owner, and the sign shall be promptly removed upon request of the property owner.A legitimate reason for appraising a property as of some

date in the past is:

To settle an estate Deed in Lieuthis conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not cease foreclosure activities if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts, the avoidance and non-repayment of debt will most likely show on a credit history. It may prevent having the documents preparatory to a foreclosure being recorded and become a matter of public record. A deed in lieu will not eliminate any liens against the property and a lender may be reluctant to accept it for just this reason.CPAcertified public accountant Adverse position is gained byLiving open & hostile on a property for ten years

Legal action to enforce a contract is called: Specific Performance

The price of a listed property should NOT be advertised or

offered unless it conforms to:

The price of a listed property should NOT be advertised or offered unless it conforms to an amount previously agreed to by the owner.An interest in and possession of any real property is calledAn estate

A trust deed is signed by the:Trustor

The day after the broker's listing expired, the seller sold the property to a buyer that was shown the property by the listing broker. Which of the following is true regarding the real estate commission?The seller would owe the full commission.

A licensee owes a fiduciary duty to the client that includes protecting and promoting the client's interests. If the client is the seller or lessor and may be unable to perform, the

licensee:

According to Commissioner's Rule R4-28-1101 (B1): a

licensee participating in a real estate transaction shall disclose in writing to all other parties any information which the licensee possesses that materially and adversely affects the consideration to be paid by any party to the transaction, including any information that the seller or lessor may be unable to perform.What is the form of co-ownership in which two or more persons each have an undivided interest in the property but no right of survivorship?Tenancy in Common 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 are chlorofluorocarbons, an inert chemical used in refrigeration and aerosol cans.If you buy unimproved land in a subdivision "sight unseen" you have how long to rescind the contract?

• Month recession right

When the appraiser looks at the home Sandy has just purchased, he notices it has a fireplace and the comparable homes do not. He makes a $3,000 upward adjustment on his sales comparison approach worksheet.The $3,000 adjustment is based on what appraisal principle?Contribution What deed would place the least liability on the grantor?Quit claim What sections are NOT considered standard? Section 18 is a fractional section.The selling price of real estate is most generally based on:The selling price of real estate is most generally based on market value; the most probable price a property should bring in a competitive and open market A debit isMoney that is owed Using one's authority or weakness to secure consent to a

contract is termed:

Undue influence When the principal terminates the agency relationship

before it expires, it is called:

Revocation Building permits would be issued under the government's

right of:

Building permits would be issued under the government's right of police power.A general contractor does work for a tenant in a commercial leased space. The tenant fails to pay the contractor. What is true regarding the lien?The contractor can only lien the leasehold interest.A "mutual fund" for pooling investor money for investment

in real estate:

Real Estate Investment Trust REIT The seller lists a property with a broker and the listing is to expire on October 20th. On October 19th, the broker presents an offer to the seller. After two days of negotiations the seller accepts the buyer's offer. Since the broker's listing has expired, what is the status of the broker's commission?The seller is obligated to pay a commission

What is it called if a property is sold and the seller remains on the land without permission?Tenancy at sufferance A property owner is selling a house "For Sale by Owner." the seller places the ad in the local newspaper looking for buyers. If the seller is on the Do Not Call Registry the

broker may call when:

The broker represents the buyer Habendum ClauseThe habendum clause is the "to have and to hold" clause.The "escape clause" in FHA insured financing of a home

purchase is the:

The FHA requires that an escape clause be included with the purchase contract that permits the buyer to cancel the contract if the property does not appraise for the sale price.Nonconforming use would apply to which of the following, listed below?A use that was once lawful but no longer conforms What would NOT be provided for in a non-recourse loan?A non-recourse loan prevents a deficiency judgment.A definition of involuntary alienation is: Title to property can be conveyed by action of the court In escrow, who is your customer when your brokerage has the listing?The Buyer An easement cannot be extinguished byThis is a decision of the property owner (servient tenement).Cumulative Zoningis a method of zoning in which any use permitted in a higher-use, less intensive zone is permissible in a lower

use, more intensive zone. For example: under this method,

a house could be built in an industrial zone but a factory could not be built in a residential zone.If the loan value is 80%, and the property was appraised at $86,500.00 and sold for $88,000.00, how much would the purchaser be permitted to borrow?The borrower could borrow 80% of the 86,500. Which would be 69,200 What insulating material was pumped into houses until its ban in the 1970s urea-formaldehyde insulation All of the following would apply to a buyer broker exclusive

employment agreement EXCEPT:

Legal description of the property. it is addressing employment terms not the property The Real Estate Settlement Procedures Act was enacted

to:

RESPA ensures that consumers are provided with important, accurate, and timely information about the actual costs of selling or closing a transaction, not about the cost of obtaining a loan and interest. The costs of obtaining loans and interest are provided under Regulation Z of the Truth-in-Lending Act.What must be recorded to be valid?Beneficiary Deed A buyer purchases property in a homeowner's association with CC&Rs. The CC&Rs would most likely be found where?The CC&Rs would be found in the county recorder's office An auctioneer may only auction real property in the state of

Arizona if:

The auctioneer is licensed with a licensed employing brokerage Which of the following would be a debit to the sellerProperty Taxes When a buyer purchases a parcel of unimproved land, there exists a right to rescind. Which of the following