AZ Real Estate License Practice Test Questions Terms Flashcards

AZ Real Estate License Practice Test Questions & Terms Flashcards Oliver's parents grant him ownership of an estate on the condition that Oliver maintains the barns and cares for the horses. What kind of estate does Oliver have?fee simple defeasible What is a benchmark?a permanent marker of known location and elevation above sea level as established by a government survey team (such as the USGS) How do married couples generally hold property in the state of Arizona?community property What kind of rights are granted by a government entity and allow a party to take water from a body of water for a specific and approved use?prior appropriation (appropriative rights) If a deed restriction is in conflict with a fair housing law, what happens with the deed restriction, and how is the deed affected?The deed restriction is unenforceable, but it doesn't affect the deed or ownership.What right allows someone to put a property on the line as collateral for debt The right of control What instrument is used to convey real property? A written deed Areas around a condominium such as a swimming pool

and laundry room are known as:

common elements What is the difference between a fee simple determinable estate and a fee simple condition subsequent estate?The difference is that, for ownership to change in a condition subsequent estate, the grantor of the estate must prove (in court) that the defeasible fee estate condition has been violated. This MUST happen within a certain time frame.This lien is voluntary and specific. It's the most common kind of lien there is, and it usually takes first position after any tax liens. What kind of lien is it?Mortgage Lien What is an estate characterized by perpetual ownership on the condition that the property is used for a certain purpose or under specific conditions. Ownership reverts back to the original owner if these stipulations are violated.Defeasible fee simple estate Gerard's house has been foreclosed on. He had a property tax lien, a mortgage, a judgment lien, and a mechanic's lien on the property. Which is MOST likely to be the senior lien?the property tax lien What is a monument?a fixed landmark, whether natural or human-made, used as a reference point in a metes and bounds legal description What is the difference between a determinable estate and condition subsequent estate?the need for court approval before the grantor of the estate can retake title What is the main difference between an easement and a license?A license is revocable at any time, an easement is not.

Zora is purchasing a property. When she closes, the seller will transfer her shares of a corporation. She will also be given a proprietary lease to the unit she will live in. What kind of property is Zora most likely purchasing?Co-op When Jim added his new driveway, a portion of it was on

Mary's property. This is a(n):

encroachment Alice, Tom, George, and Brenda bought a property as joint tenants with the right of survivorship. When they bought the

property, they each had:

a 25% share of ownership interest Blackberry bushes are growing in Heidi's backyard. Heidi has the right to pick those blackberries, eat them, make them into jam, or share them with her neighbor. This

concept is known as:

Accession When does a testamentary trust come into being? when the trustor dies Marcela has a mango tree in her backyard. It's not part of a commercial orchard; it's just a decorative planting. She picks a mango from the tree to eat. What kind of property is the picked mango?Personal Property Nina has her property held in a trust. She's both the trustor and the trustee, and she can take the property in and out whenever she wishes. When she dies, however, the property will have a new designated trustee and go to her heirs. What kind of trust is this?revocable trust How is real estate different from real property? Real estate is land and improvements. Real property is land, improvements, and the bundle of rights.What is the right of control?the right to alter, change, or improve the property as the owner sees fit. To use the property in any way that is not illegal.What is the primary distinction between a PUD and a condo?PUD owners own the land beneath their unit; condo owners do not.A subdivision includes covenants, conditions, and restrictions in the deeds for all properties. One covenant bans barnyard animals even though city laws permit them.A resident builds a chicken coop in his backyard to raise chickens. Do the neighbors have any recourse to have them removed?Yes, because when city and private restrictions overlap, the stricter of the two is applied.Tom and John, who are business associates, own a property as tenants in common. If John dies, what happens to his share of the property?It passes to John's heirs.Gerry drills for oil under his property, making his neighbor's oil drill produce less. What right is Gerry impacting?Subsurface rights Siblings Meg and Jack own property together. Meg owns 60% and Jack owns 40%. If Meg dies, her share is inherited by her spouse, not Jack. Based on these facts, what kind of ownership do they have?tenancy in common

Rights that run with real property ownership that are most often transferred with the property, but are possible to sell

separately is the definition of:

Appurtenances a type of estate that allows for remainder or reversionary interests Life estate The right of exclusiongives an owner the right to tell trespassers (or anyone!) to get off their land. When you own real property, you can exclude anyone you care to from entering it or deny them the use of it.Married couple Nathaniel and Rakim own a home together in Arizona. They want to ensure that if either of them die unexpectedly, the property would go to the surviving spouse without having to go through probate, even without a will. How should they take title to ensure this?community property with the right of survivorship Which of these is an example of the doctrine of laches?An HOA allowed a neighbor to keep prohibited chickens for years, so now the prohibition against chickens is not enforceable.What is the main difference between how real and personal property are conveyed?Real property is conveyed by deed. Personal property is conveyed by a bill of sale.A quitclaim deed is used to:remove a cloud on the title/encumbrance on the property A buyer has the right to cancel after they have signed a

timeshare contract as long as the buyer:

rescinds the contract in writing within 10 days Conga installed her family's candelabras on the wall in her dining room when she first moved in. Ten years later, when she gets ready to move, she removes the candelabras from the walls so she can take them with her. What process did Conga go through when she removed the candelabras?Severance What is one reason a buyer considering a co-op should examine their board minutes and financial statements?to ensure the building has enough in the reserve fund to prevent foreclosure or an extra assessment in an emergency Hallie owns an estate for the full length of Thuy's life. When Thuy eventually passes, Hallie will lose ownership. What kind of an estate is this?life estate Which of these potential deed restrictions would not be enforceable?listing religions of purchasers who would be acceptable What is the right to sell, lease, and/or will a property to anyone you choose (you have the right to transfer all of your property rights or just some of them).The right of disposition A corporation has what type of ownership? ownership in severalty Jasmin, an Arizona homeowner, owes $70,000 on her mortgage loan. She stops paying the loan. The property is her primary residence, but she has not filed for a homestead exemption. Will the homestead exemption protect her from foreclosure? Why or why not?No, because voluntary loans like mortgages are not covered by homestead protections.

Kalani looks up the legal description for a property she is going to list. She finds a map of a subdivision and a set of numbers that identify the specific lot she's selling. Which type of legal description is she referencing?Block and lot What is an estate without restrictions that is freely given to heirs (this is the most common type of residential real estate). This is also called a fee title estate.Absolute fee simple estate What is the difference between equity REITs and mortgage REITs?Equity REITs invest in property; mortgage REITs invest in mortgages and mortgage-backed securities.In order to be exempt from corporate taxes, a REIT must

have at least:

100 investors All partners assume unlimited personal liability in what type of business organization?general partnership The S 1/2 of a section would measure how many acres?320 What is the most common type of REIT?equity REIT Rebecca owns a business in her own name. She is personally liable for her business's profits, losses, and legal liabilities. What kind of business is she most likely to have?sole proprietorship Maribel owns a condo that has exclusive use of a storage area in the basement. If a pipe breaks in the basement and the storage area floods, who is responsible for paying for repairs to the floor?the condo association or HOA The relative difficulty of converting an asset to cash without

loss of value is known as:

Illiquidity Rashid grants a life estate to Lily. Upon Lily's death, Rashid regains ownership of the estate. What type of interest did Rashid hold in this estate?reversionary interest Kevin has an easement appurtenant that allows him to cross Cassie's property to get to his own property. If Cassie sells her property, what happens to Kevin's easement?Nothing, because the easement runs with the land.What is the process that results in the gradual increase in land area through deposits of soil by natural forces?Accretion How many square-mile sections are found in a township?36 What is the right to use your property without interference.That interference could come from past owners trying to exert possession claims, or from literal interference like unreasonable noise.The right of quiet enjoyment Harriet is a shareholder in a company. This company has hundreds of shareholders, is publicly traded, owns property in severalty, and is subject to double taxation. What kind of business does Harriet most likely own shares in?C Corp When the parties to a contract agree that personal property will remain with the real property.Agreement With which type of land description does a surveyor indicate direction in degrees, minutes, and seconds?Metes and bounds