AZ Real Estate (Hogan) 2020 Flashcards
(1169 cards)
1
Q
Surface Water Rights - are regulated thru this Doctrine, which also means “First in Time - First in Right.”
A
Doctrine of Prior Appropriation -
Surface Water Rights - First in Time - First in Right. This means that the First Person to Claim a “Beneficial Use” of the Water Has the Senior Right To It
Chap 20
2
Q
Brings Colorado River Water to Urban Areas in Central Arizona by way of 336-Mile Canal?
A
(CAP) Central Arizona Project (CAP) -
Brings Colorado River Water to Urban Areas in Central Arizona by way of 336-Mile Canal
Chap 20
3
Q
What type of Renewable Water Source replenishes groundwater using CAP?
- In AMAs_Active Mgmt Areas (Maricopa, Pima and Pinal Counties) - _______ is responsible for replenishing groundwater using CAP water.
- Property Owners - charged on property tax bill.
A
CAGRD - Central AZ Groundwater Replenish District - Renewable Water Source replenishes groundwater using CAP
- _In AMAs_Active Mgmt Areas (Maricopa, Pima and Pinal Counties)_ -
- CA G RD is responsible for replenishing groundwater using CAP water.
- Property Owners - charged on property tax bill.
Chap 20
4
Q
What are the 2 Renewable Water Sources?
A
2 Renewable Water Sources are -
- CAP - Central Arizona Project - Brings Colorado river water to urban areas (336-mile canal)
- CA G RD - Central Arizona Groundwater Replinish District - Replenished groundwater using CAP (Colorado River water)
Chap 20
5
Q
- What was adopted in 1980 and established (ADWR) AZ Dept of Water Resourses
- What 3 things is this code responsible for?
A
AZ - Groundwater Mgmt Code -
- Adopted in 1980
- Established ADWR: the AZ Dept of Water Resourses (ADWR)
- Controls Severe Overdraft - INA’s and AMA’s_Overdraft
- Distribute Groundwater - Provide means
- Increases Water Available - ex: CAP_Central AZ Project
Chap 20
6
Q
AZ Groundwater Management Code Objectives:
- Con___ S_____ Ov_____: Over Pumpling of groundwater faster than it can be replaced by nature.
- Dis______ of Gr______ - Provide Means
- In______ W_____ - Supply in AZ - by supplemental sources like CAP - Central AZ Project (brings Colorado River Water in)
A
AZ Groundwater Management Code Objectives:
- Control Severe Overdraft: Over Pumpling of groundwater faster than it can be replaced by nature.
- Distribution of Groundwater - Provide Means
- Increase Water - Supply in AZ - by supplemental sources like CAP - Central AZ Project (brings Colorado River Water in)
Chap 20
7
Q
What type of groundwater restriction area?
- Threatens to Exceed Areas - Irrigation uses limited water supplies.
- Irrigated Acreage Restricted but specific conservation measures are not required.
A
INA’s - Irrigation (Non-Expansive) Areas -
- Threatens to Exceed Areas - Irrigation uses limited water supplies.
- Irrigated Acreage Restricted but specific conservation measures are not required.
Chap 20
8
Q
What Type of Groundwater Restriction Area is the following?
- Areas where Excessive Overdraft (over pumping) is occuring.
- Areas: Pinal, Phoenix, Prescott, Santa Cruz, and Tucson
A
AMA’s - Active (Management) Areas -
- Areas where Excessive Overdraft (over pumping) is occuring.
- AMA’s Areas: Pinal, Maricopa County (Phoenix), Yavapai County (Prescott), Santa Cruz County, and Pima (Tucson)
- Rashins: Domestic (25%), Agricultural (69%), Industrial (6%)
Chap 20
9
Q
Ass____ W____ S_____ P_____
Regulates Limited Groundwater supplies to Assure Water in AMA’s
A
Assured Water Supply Program -
Regulates Limited Groundwater supplies to Assure Water in AMA’s
Chap 20
10
Q
Under the Assured Water Supply Program,
- Public Report Issued - inside an AMA (must obtain):
- Ass____ Water S____ C_______ (100 years) - must be issued by _____ to Subdivider to get a P____ Re___.
Subdivider (Water Provider) must demonstrate:
- Unint_______ Water - Supply for ____yrs
- Fin_____ Ability - Con_____ Water D_____ System
- Subdivison Goals - Consistent with AMA Mgmt Goals.
A
Assured Water Supply Program (Rpt/Water) -
Public Report Issued - inside an AMA (must obtain):
- Assured Water Supply Certificate (100 years) -
must be issued by ADWR to Subdivider to get a public report.
Subdivider (Water Provider) must demonstrate:
- Uninterruptable Water - Supply for 100 yrs
- Financial Ability - Construct Water Delivery System
- Subdivison Goals - Consistent with AMA Mgmt Goals.
Chap 20
11
Q
Outside of an AMA
- What Water Supply Program is used from ADWR
- What ADWR Report must be provided?
ADWR’s AD______ WATER SU______ PROGRAM -
- Ad______ W____ Rep_____ - With App from ADWR
- If Inadequate Water: Dis______ in Pur_____ C_____ and Ad______
A
ADWR’s ADEQUATE WATER SUPPLY PROGRAM - (Outside)
Outside of an AMA Areas (Subdividers must provide):
With Public Report Application:
- Adequacy Water Report - With App from ADWR
- If Inadequate Water: Disclosure in Purchase Contracts and Advertising
Chap 20
12
Q
What type of wells are these?
- Wells used for domestic purposes, not for irrigation. Pump capacity of 35 gpm maximum.
- Permit required from ADWR.
A
Exempt Wells -
- Wells used for domestic purposes, not for irrigation.Pump capacity of 35 gpm maximum.
- Permit required from ADWR.
Chap 20
13
Q
When Property is sold with Well Rights, what form must be used?
Info Needed: names, contact info, w____ loc_____, and ass____’s p_____ n_____.
A
Transfer of Well Rights -
-
Transfer Form - filed with ADWR when property sold
* Info needed - names, contact info, well location, and assessor’s parcel number.
Chap 20
14
Q
This process is used for what?
- Court process - to determine extent and priority of water rights (Doctrine of Prior Appropriation) in the Gila River/Little Colorado River System.
- Well Owner’s (Claim) - must be filed to be included in court’s decision.
A
Adjudication of Water Rights -
- Court process - to determine extent and priority of water rights (Doctrine of Prior Appropriation) in the Gila River/Little Colorado River System.
- Well Owners (Claim) - must be filed to be included in court’s decision.
Chap 20
15
Q
This Code creates two types of areas for groundwater restrictions.
A
Arizona Groundwater Management Code
2 Groundwater Restrictions -
INA’s - Irrigation Non-expansion Areas - Areas where irrigation uses threaten to exceed limited water supplies
AMA’s - Active Management Areas - Areas where excessive overdraft (over pumping) occurs. AMA’s in Phoenix, Pinal, Prescott, Santa Cruz, and Tucson.
Chap 20
16
Q
What type of water rights are these?
- Irrigation Grandfathered Rights - Land Irrigated from 19__ to 19__.
- Type-1 Non-Irrigation Rights - Water Re___ from Irrigation can be used for In_____ or Sub______
- Type-2 Non-Irrigation Rights - Based on His_____ Groundwater Pumping such as Live____ Watering, In_____, or G___ C_____. May be Sold Seperately.
A
Grandfathered Water Rights -
- Irrigation Grandfathered Rights - Land was Irrigated from 1975 to 1980.
- Type-1 Non-Irrigation Rights - Water Retired from Irrigation can be used for Industry or Subdivision
- Type-2 Non-Irrigation Rights - Based on Historical Groundwater Pumping such as Livestock Watering, Industry, or Golf Course. May be Sold Seperately.
Chap 20
17
Q
What type of Irrigation right is the following?
- Land must have been “IRRIGATED” from 1975 to 1980.
- Allows irrigation to specific acreage
A
Irrigation - Grandfathered Right -
- Land must have been “irrigated” from 1975 to 1980.
- Allows irrigation to specific acreage
- Not Sold Seperately
Chap 20
18
Q
What type of Water right is this?
- Water use retired from irrigation
- Can be used for Industry (Mfg Goods) or Subdivision.
A
Non-Irrigation Rights - Type 1
- Water use retired from irrigation
- Can be used for Industry (Mfg Goods) or Subdivision.
- Not Sold Seperately
Chap 20
19
Q
What type of water right is this?
- Historical groundwater pumping for a non-irrigation use such as livestock watering, industry, or golf course.
- May be** **sold separately from land
A
Type 2 - Non-Irrigation Right -
- Historical groundwater pumping for a non-irrigation use such as livestock watering, industry, or golf course.
- May be** **sold separately from land
Chap 20
20
Q
A method of describing property boundaries using distances and compass directions from point to point.
Requires:
Point of Beginning, Distance/Direction between points, Closure must begin and end at same point
A
Metes and Bounds -
A method of describing property boundaries using distances and compass directions from point to point.
Requires:
Point of Beginning, Distance/Direction between points, Closure must begin and end at same point
Chap 20
22
Q
Recorded Plat Map or Lot & Block -
- Subdivision Map - that shows the Lo____ and Bo______ of individual parcels (platted) and is R______ with County Recorder’s Office.
- Area Mapped - P__ M__ that ID’s parcels by L__ & B____ numbers.
- “Sm_____ Parcels” use ths method. Most common in populated areas.
Plat - Means to make a map
A
Recorded Plat Map or Lot & Block -
- Subdivision map - that shows the Location and Boundaries of individual parcels (platted) and is “Recorded” with County Recorder’s Office.
- Area mapped - Plat Map ID’s parcels by Lot & Block numbers.
- “Smallest Parcels” use ths method. Most common in populated areas
Plat - Means to make a map
Chap 20
23
Q
A method of land description based on survey lines that run north to south (up/down) and east to west (right/left).
- Used to describe largest parcels of land.
A
Rectangular/Gov Survey aka PL SS - Public Land Survey System -
A method of land description based on survey lines that run north to south (up/down) and east to west (right/left).
- Used to describe largest parcels of land.
Chap 20
24
Q
Point beginning at the intersection of Gila and Salt Rivers is for what type of survey and used for largest parcels?
A
Rectangular/Government Survey aka Public Land Survey System (PLSS) -
Point beginning at the intersection of Gila and Salt Rivers (Used for Largest Parcels)
Chap 20
25
Q
Which way does the baseline run?
A
Baseline -
Runs east to west (right/left) - horizontal
Chap 20
26
Principle Meridian runs which way?
**Principle Meridian -**
**Runs North and South (Up/down)**. Same as range lines
**Chap 20**
27
Strips that run **every 6 miles from Principle Meridian**, North and South
**Ranges** **(Run North and South)** -
**Strips that run every 6 miles from Principle Meridian**, in the **same** direction **as Principle Meridian, north and south (up/down)**.
**Chap 20**
28
**North and South strips** from the Principle Meridian every 6 miles are called?
**Range (Strips) -**
**North and South strips** from the Principle Meridian every 6 miles. **Numbered from principle meridian (left to right)**
**Chap 20**
29
**Townships -**
**\_\_ miles by\_\_ miles squared parcels**, Township lines **run E\_\_\_ to W\_\_\_, same as baseline.**
**Townships -**
**6 miles by 6 miles squared parcels**, Township lines **run east to west, same as baseline.**
**Townships - Numbered** **up from baseline.**
**Chap 20**
30
**How many sections in a township?**
**Townships** -
**36 Sections** - 1 mile by 1 mile; 640 acres each.
**Chap 20**
31
**An East-West row of townships is called?**
**Tier -**
An East-West Row of Townships
**Chap 20**
32
Parcel of land (1 mile x 1 mile) containing 640 acres.
**Section** -
1. **Parcel** of land - **1 mile by 1 mile** **square** containing **640 acres.**
2. **Township has 36 Sections**
**_Partioning of Sections_**
**1/4 Section =** 160 Acres
**1/4 of 1/4 Section** = 40 Acres
**1/4 of 1/4 of 1/4 Section** = 10 Acres
**Chap 20**
33
**When Writing and Plotting Descriptions**
1. Start with **smallest parcel and work to largest**. Draw left to right (create picture) - **_is called?_**
2. Start with **largest area and work backwards** (right to left) to smallest area (how do you say). - **_is called?_**
**Writing and Plotting Descriptions -**
1. **_Diagram_** - Start with **smallest parcel and work to largest**. Draw left to right (create picture)
2. **_Description_** - Start with **largest area and work backwards** (right to left) to smallest area (how do you say)
**Chap 20**
34
**Corrections -**
What is **made every __ miles north** (up from bottom of state) **to re-establish __ mile seperation?**
**Corrections -**
**Made every 24 miles north** (**up from bottom of state) to re-establish 6 mile seperation of range lines.**
**Chap 20**
35
**Correction Township**
1. **Pieces of land distorted to correct** for the earth's curvature.
2. Contains **\_\_ standard sections** (640 acres each), and **\_\_ fractional sections.**
3. **Corrections Effect - N\_\_\_ (up) and W\_\_\_ (left) sides**
4. **Fractional Sections - 1-\_ and 18-\_\_ and 30-\_\_**
**Correction Township -**
1. **Pieces of land** **distorted to correct** for the **earth's curvature.**
2. Contains **25 standard sections** (640 acres each), and **11 fractional sections.**
3. **Corrections Effect - North (up) and West (left) sides**
4. **Fractional Sections - 1-7 and 18-19 and 30-31**
**Chap 20**
36
**Check**
**Parcel** of land **\_\_ miles square (\_\_ x \_\_) and contains __ townships**
**Check -**
Parcel of land **which is 24 miles square (24 x 24)** and **contains 16 townships**
**Chap 20**
38
Corrections **affect sections across which sides** and what are fractional section numbers?
**Fractional Sections for Correction**
1. **_Affects Sections_ - North (top)** and **West (left) Sides**.
2. **_Fractional Sections_ - 1-7, 18-19, 30-31.**
**Chap 20**
39
**_Conversions for Reference (Memorize):_**
1. **_1 mile_** = 5,280 feet - 1,760 yards
2. **_1 Acre_** - 43,560 sqft
3. **_Section_** = 1 sq mile (5280x5280ft) = 640 acres
4. **_Township_** - 6X6 miles square(36sq miles) = 36 Sections
5. **_Check_** = 24x24 miles sq (576sq miles) = 16 townships
6. **_1 yard_** = 3 ft
7. **_1 sq yard_** = 9 sqft
8. **_1/4 of Section_** = 640/4 = 160 acres
**_Conversions for Reference (Memorize):_**
1. **_1 mile_** = 5,280 feet = 1,760 yards
2. **_1 Acre_** - 43,560 sqft
3. **_Section_** = 1 sq mile (5280x5280ft) = 640 acres
4. **_Township_** - 6 miles square(36sq miles) = 36 Sections
5. **_Check_** = 24X24 miles sq = 16 townships
6. **_1 yard_** = 3 ft
7. **_1 sq yard_** = 9 sqft
8. **_1/4 of Section_** = 640/4 = 160 acres
**Chap 20**
40
Wastewater that has been treated for re-use
**Effluent -**
Wastewater that has been treated for re-use
**Chap 20**
41
What are **two categories of water**?
**Surface and Ground Water -**
**State regulates** **_surface water rights_** through **Doctrine of Prior Appropriation (first in time - first in right)**
**Groundwater is located Underground in Large Aquifers**
**Chap 20**
42
**These Groundwater Restrictions (2 Types) are covered by what Code?**
1. **_Irrigation Non-Expansion Areas (INA's)_**
1. Areas - Irrigation **Threatens to Exceed** Limited Water Supply
2. **Irrigated Acreage** - Restricted, but **Specific Conservation** measures are **not required.**
1. **_Active Management Areas (AMA's)_**
1. Areas where excessive **overdraft occurring**, AMA's in **Santa Cruz, Tucson, Pinal, Phoenix, Prescott.**
2. Ground Water Rashins: -
* Domestic 25% -
* Agricultural 69% -
* Industrial 6%
**Arizona Groundwater Management Code**
**Groundwater Restrictions - 2 Types** -
1. **_Irrigation Non-Expansion Areas (INA's)_**
1. Areas - Irrigation **Threatens** **to Exceed** Limited Water Supply
2. **Irrigated Acreage** - restricted, but **Specific Conservation** measures are **not required.**
1. **_Active Management Areas (AMA's)_**
1. Areas where excessive **overdraft occurring**, AMA's in **Santa Cruz, Tucson, Pinal, Phoenix, Prescott.**
2. **Ground Water Rashins: -**
* **Domestic 25% -**
* **Agricultural 69% -**
* **Industrial 6%**
**Chap 20**
43
**Corrections for Earth's Curvature** -
1. **R\_\_\_ lines** converge toward the earth's poles. **They _DON'T_ maintain a __ mile separation.**
2. **_Corrections_** - **Made every 24 miles** - **N\_\_\_ from bottom of state** to **re-establish __ mile separations**.
**Corrections for Earth's Curvature** -
1. **Range lines** converge toward the earth's poles. They **_DON'T_ maintain a 6-mile separation.**
2. **_Corrections_** - **Made every 24 miles** - **_North_ from bottom of state** to **re-establish 6 mile** **separations.**
**Chap 20**
44
**Corrections for Earth's Curvature** -
* **Range Lines - Don't maintain __ mile** seperation towards poles
* **Made Every __ miles North from b\_\_\_\_ of state** to re-establish 6 miles seperation.
**_Other Info to Remember_**
**C\_\_\_\_** - is a parcel 24 miles square (24x24) and **contains __ townships**
**Corrections for Earth's Curvature** -
* **Range Lines - Don't maintain 6 mile** seperation towards poles
* **Made Every 24 miles north from bottom of state** to re-establish 6 miles seperation.
**_Other Info to Remember_**
A "**_check_**" is a parcel 24 miles square (24x24) and **contains 16 townships**
**Chap 20**
45
**Assured Water Supply Program -** **_Subdivider/Water Provider (Must demonstrate):_**
1. **Uninteruptable W\_\_\_ S\_\_\_ -****\_\_\_ years**
2. **Water D\_\_\_\_\_ System - Fin\_\_\_\_ Ab\_\_\_\_** to **Con\_\_\_\_\_**
3. **_AMA Mgmt Goals / Subdivision Goals_** - **consistant**
**Assured Water Supply Program - _Subdivider/Water Provider (Must demonstrate):_**
1. **_Uninteruptable Water Supply-_** **100 years**
2. **_Water Delivery System -_** **Financial Ability** to **Construct**
3. **_AMA Mgmt Goals / Subdivision Goals_** - **consistant**
**Chap 20**
46
**Rectangular/Government Survey** also know as \_\_\_\_\_?
**Method of Land Description based on Survey Lines** that run **North to South and East to West.**
**This method is used to describe "Largest Parcels."**
**Chap 20**
**Public Land Survey System (PLSS) - Rectangular- Government Survey**
**Method of Land Description based on Survey Lines** that run **North to South and East to West.**
**This method is used to describe "Largest Parcels."**
**Chap 20**
47
What **Certificate** must be issued by ADWR to Subdivider to **Assure Water Supply in AMAs**?
**Assured Water Supply -Certificate of (100 years)** -
Must be **Issued by ADWR to Subdivider** to **get a Public Report in AMAs**
**Chap 20**
48
What is a another name for Rectangular/Government Survey?
**PLSS\_Public Land Survey System -**
Another name for Rectangular/Government Survey
**Chap 20**
49
What is a another name for Rectangular/Government Survey?
**PLSS\_Public Land Survey System -**
Another name for Rectangular/Government Survey
**Chap 20**
50
Under the **Assured Water Supply Program**,
1. **What must be issued in order to get public report in an AMA**,
**Assured Water Supply Program (Rpt/Water)** -
**Public Report Issued - inside an AMA** **(must obtain):**
1. **_Certificate of Assured Water Supply (100 years)_** -
must be **issued by _ADWR_ to Subdivider to get a public report.**
**Chap 20**
51
**Assured Water Supply Program (Rpt/Water)** -
**Public Report Issued - inside an AMA** **(must obtain):**
**_Subdivider (Water Provider) must demonstrate:_**
1. **Uninterruptable Water** - **\_\_\_ yrs Supply (Assured Water Supply Cert from ADWR)**
2. **Water Delivery System** - **F\_\_\_\_ Ab\_\_\_ to C\_\_\_\_\_**
3. **_Subdivison Goals_** - **consistent with** **AMA Mgmt Goals.**
**Assured Water Supply Program (Rpt/Water)** -
**Public Report Issued - inside an AMA** **(must obtain):**
**_Subdivider (Water Provider) must demonstrate:_**
1. **_Uninterruptable Water_** - **100 yrs Supply (Cert of Assured Water Supply from ADWR)**
2. **_Water Delivery System_** - **Financial Ability to Contruct**
3. **_Subdivison Goals_** - **consistent with** **AMA Mgmt Goals.**
**Chap 20**
52
What is a parcel of land **which is 24 miles square (24 x 24) and contains 16 townships**?
**Check -**
Parcel of land **which is 24 miles square (24 x 24)** and **contains 16 townships**
**Chap 20**
53
**Section** -
1. **Parcel** of land - **\_\_ mile by __ mile** **square** containing **\_\_\_\_ acres.**
2. **Township has 36 Sections**
**Section** -
1. **Parcel** of land - **1 mile by 1 mile** **square** containing **640 acres.**
2. **Township has 36 Sections**
**_Partioning of Sections_**
**1/4 Section =** 160 Acres
**1/4 of 1/4 Section** = 40 Acres
**1/4 of 1/4 of 1/4 Section** = 10 Acres
**Chap 20**
54
**Check -**
Parcel of land **which is ___ miles square (\_\_ x \_\_)** and **contains __ townships**
**Check -**
Parcel of land **which is 24 miles square (24 x 24)** and **contains 16 townships**
**Chap 20**
55
**Section** -
1. **Parcel** of land - **\_\_ mile by __ mile** **square** containing **\_\_\_\_ acres.**
2. **Township has 36 Sections**
**Section** -
1. **Parcel** of land - **1 mile by 1 mile** **square** containing **640 acres.**
2. **Township has 36 Sections**
**_Partioning of Sections_**
**1/4 Section =** 160 Acres
**1/4 of 1/4 Section** = 40 Acres
**1/4 of 1/4 of 1/4 Section** = 10 Acres
**Chap 20**
56
Aspects of real estate that deals with **_leasing**_, _**managing**_, _**marketing**_, and _**maintenance_** of **property for others and for a fee**.
**Property Management -**
Aspects of real estate that deals with **_leasing**_, _**managing**_, _**marketing**_, and _**maintenance_** of **property for others and for a fee**.
**Chap 19**
57
**AZ Residential - Landlord and Tenant Act**
1. **Applies to Rental Dwelling Units**.
* _**DOES NOT** apply to_:
1. **C\_\_\_\_ Prop\_\_\_\_**
2. **H\_\_\_\_ and M\_\_\_\_\_**
3. **Religious Ser\_\_\_ H\_\_\_\_\_**
4. **School D\_\_\_\_\_\_\_**
5. **P\_\_\_ H\_\_\_\_\_\_\_ (Bars)**
1. **Va\_\_\_ Rental By O\_\_\_\_ (VRBO)** - may apply
2. **Air B\_\_B\_\_\_\_ (Air B&B)** - may apply
3. **Prohibits Discrimination** - **Tenant w Child**
**AZ Residential Landlord and Tenant Act -**
1. **Applies to rental dwelling units.**
* **DOES NOT apply to**
1. **Commercial Properties**
2. **Hotels and Motels**
3. **Religious Service Housing**
4. **School Dormitories**
5. **Public Housing (Bars)**
1. **Vacation Rental By Owner (VRBO)** - may apply
2. **Air Bed Breakfast (Air B&B)** - may apply
3. Prohibits - discrimination Tenant w Child
**Chap 19**
58
These are obligations for whom under the - Landlord and Tenant Act ?
1. **_Security Deposit_** - including prepaid rent - **(\_\_\_ rent max)**
2. **_Refundable (if stated)_** - **Dep\_\_\_, Cl\_\_\_\_\_\_, Red\_\_\_\_\_\_**
3. **_Itemized Stmt_** - **\_ _ days of termination** - to use security deposit for damages/rent.
4. **_Landlord Noncompliance_** - subject to **\_\_x security deposit** as damages.
(Landlord and Tenant Act)
**Landlord Obligations** -
1. **_Security Deposit_** - including prepaid rent - **(1 1/2 rent max)**
2. **_Refundable (if stated)_** - **Deposits, Cleaning, Redecorating**
3. **_Itemized Stmt_** - **14 days of termination** - to use security deposit for damages/rent.
4. **_Landlord Noncompliance_** - subject to **2x security deposit** as damages.
**Chap 19**
59
Under Landlord and Tenant Act -
What are **Landlord Docs** that must be give to tenant?
**Name the 3 Items**
1. **L\_\_\_\_ -** Signed
2. **M\_\_\_ I\_ Form -** Tenant List Damages
3. **M\_\_-O\_\_ No\_\_\_ -** Written Notice that Tenant May Be Present
(Landlord and Tenant Act)
**Landlord docs - must give tenant -**
1. **_Lease_** - Signed
2. **_Move-In Form_** - Tenant list damages
3. **_Move-Out Notice_** - Written Notice that Tenant may be present.
**Chap 19**
60
Under Landlord and Tenant Act what are **Landlord Disclosures?**
**Landlord Must Disclose** -
1. **Per\_\_\_\_ Aut\_\_\_\_\_\_** to **manage property**
2. **O\_\_\_ or O\_\_\_\_ A\_\_\_\_\_** - for service process
3. **L\_\_\_\_ T\_\_\_\_ Act** - free copy avail through **AZ Dept of Housing.**
(Landlord ; Tenant Act)
**Landlord Must Disclose** -
1. **Person Authorized** to **manage property**
2. **Owner or Owner's Agent** - for service process
3. **Landlord Tenant Act** - free copy avail through **AZ Dept of Housing.**
**Chap 19**
61
Under Landlord and Tenant Act, what are Security Deposit Requirements?
1. **Security Deposit** - (Including prepaid rent) not to exceed __ of rent.
2. **Refundable (if not stated non-refundable)** - (3) Dep\_\_\_, Cl\_\_\_\_, Red\_\_\_
3. **Itemized Stmt** - (to tenant) \_\_\_\_\_\_\_days from termination.
4. **Landlord Noncompliance (landlord damages are)** \_\_\_x Security Deposit
5. **Non-Refundable Fees - Cl\_\_ning and P\_\_\_\_ Fees** **may be required _above_ security deposit**
(Landlord and Tenant Act)
**Security Deposit Requirements** -
1. **_Security Deposit_** - (Including prepaid rent) not exceed **1 1/2 rent**
2. **_Refundable (if not stated non-refundable)_** - Deposits, Cleaning, Redecorating
3. **_Itemized Stmt_** - to tenant **14 days** of termination - to use security deposit for damages/rent.
4. **_Landlord Noncompliance_** - subject to **2x security deposit as damages.**
5. **_Non-refundable Fees_** - **cleaning/pet** **fee** may be required **_above_ security deposit**
**Chap 19**
62
Under Landlord Tenant Act, **- Landlord compliance**
1. **Codes: H\_\_\_\_, S\_\_\_\_, B\_\_\_\_\_**
2. **Premises: F\_\_\_, Hab\_\_\_\_ and S\_\_\_\_**
3. **Mech Equip: W\_\_\_ 0rd\_\_\_\_**
4. **Trash: Have Dum\_\_\_ and Rem\_\_\_\_**
5. **Water/Air: H\_\_\_ and C\_\_\_\_**
(Landlord and Tenant Act)
**Landlord Compliance (Conditions) -**
1. **Health, Safety and Build Codes**
2. **_Premises_** - Fit, Habitable and Safe
3. **_Mech Equip_** - Working Order
4. **_Trash_** Have Dumpsters and Removal
5. **_Water/Air_** - Hot/Cold
**Chap 19**
63
Under Landlord and Tenant Act
**Tenant's Obligations**
1. **_Use Premises_** - S\_\_ Man\_\_\_\_
2. **_Keep Premises_** - Cl\_\_\_\_\_
3. **_Use Mech Equip_** - I\_ R\_\_\_\_\_\_\_\_ Man\_\_\_\_\_
4. **_Not Destroy/Deface_** - Pre\_\_\_\_\_\_\_
5. **_Rules/Regulations_** - Fo\_\_\_\_\_\_\_
(Landlord and Tenant Act)
**Tenant Obligations** -
1. **_Use Premises_** - Safe Manner
2. **_Keep Premises_** - Clean
3. **_Use Mech Equip_** - In Reasonable Manner
4. **_Not Destroy/Deface_** - Premises.
5. **Rules/Regulations** - Follow
**Chap 19**
64
Under Landlord and Tenant Act
To **enter tenant's premises** what are requirements?
1. Notice to Tenant - **\_\_ days** by Landlord
2. Emergency - N\_ N\_\_\_\_\_\_
(Landlord and Tenant Act)
**Entering Tenant's Premises -**
1. **_Notice to Tenant_** - **2 days** by Landlord
2. **_If emergency_** - No Notice
**Chap 19**
65
(Landlord and Tenant Act)
**Non-compliance of Landlord,** what are time lines to terminated lease?
1. Breach of Health, Safety Hazard Materials, No Heat, Air, Water - **\_\_\_\_ days**
2. Misc Breaches - **\_\_\_ days**
(Landlord and Tenant Act)
**_Non-Compliance of Landlord_** _(**Tenant May)**_:
**Terminated Lease** -
1. **_5 days_** - for breaches **health, safety hazard materials, no heat, no air.**
2. **_10 days_** - misc breaches
**Chap 19**
66
(Landlord and Tenant Act)
What may tenant do in regards to repairs?
S\_\_\_ H\_\_\_ for M\_\_\_ D\_\_\_\_
1. **Written Notice to Landlord** - Health/Safety (\_\_ days)/ Misc (\_\_ days).
2. **Hire Licensed Contractor** - Reasonable Cost - Greater of $\_\_\_\_ max or H\_\_\_ R\_\_\_\_ (If Landlord does not promptly repair)
(Landlord and Tenant Act)
**Self-Help for Minor Defects** -
1. **_Written Notice_** - to Landlord to remedy (**5days/10days)**
2. **Hire Licensed Contractor** - Reasonable cost - Greater of: **$300 max or Half/Rent.** (if landlord does not promptly repair minor defects)
**Chap 19**
67
(Landlord and Tenant Act)
Estate for Period (Indefinite- Month to Month) to terminate?
1. **Landlord Notice** - ___ day Notice to Terminate.
2. If Tenant Given Notice on March 15 - **When must they vacate (with __ day notice)?**
(Landlord and Tenant Act)
**Estate for Period (Periodic - Indefinite - Mo to Mo)**
1. **_Landlord Notice_** - 30 day notice to terminate
Example: If Month to Month and landlord gives **notice on March 15 tenant** must **vacate by May 1st**. So notice starts on next 1st of month April.
**Chap 19**
68
(Landlord and Tenant Act)
**Tenant fails to pay rent**, landlord may begin eviction by doing what?
1. **Written Notice T\_\_ P\_\_** - within **\_\_ days**
2. **Civil Courts** - File a **S\_\_\_\_ D\_\_\_\_ A\_\_\_\_\_**
3. **Hold P\_\_\_\_\_ P\_\_\_\_\_** then **S\_\_\_\_** - **Illegal In AZ**
(Landlord and Tenant Act)
**Tenant fails to pay rent**, landlord may begin eviction by
1. **_Written Notice to Pay_** - within **5 days**
2. **_Civil Courts_** - **S**pecial **D**etainer **A**ction
3. **Hold Personal Property** and then sell - **_Illegal in az_**
**Chap 19**
69
(Landlord and Tenant Act)
If **Tenant abandons premises** what happens?
1. **N\_\_\_\_ of A\_\_\_\_\_\_\_\_** - by **Cert\_\_\_ M\_\_\_** sent **to tenant** **and** must **("Posted on Door" - __ days)** before enter.
2. **P\_\_\_\_ Pro\_\_\_\_** - **held for (\_\_\_days)** after which time landlord may sell property and apply to unpaid balance. **Called D\_\_\_\_\_ - Illegal in Arizona**
(Landlord and Tenant Act)
If **Tenant abandons premises**
1. **_Notice of Abandonment_** - by **Certified Mail** sent **to tenant** **and** must **("Posted on Door" - 5 days)** before enter.
2. **_Personal Property_** - **held for (14 days)** after which time landlord may sell property and apply to unpaid balance. **Distraint - Illegal in Arizona**
**Chap 19**
70
If tenant was **victim of domestic violence**, what may he do?
**Tenant (Domestic Violence Victim) -**
May T\_\_\_\_\_\_ L\_\_\_\_\_, without P\_\_\_\_\_\_\_
(Landlord and Tenant Act)
**Tenant (Domestic Violence Victim) -**
May **Terminate Lease**, without **Penalty.**
**Chap 19**
71
(Landlord and Tenant Act)
**Term (Word) - for holding tenant's personal property** for back rent is abolished in Arizona
(Landlord and Tenant Act)
**Distraint -**
Holding tenant's personal property for back rent is abolished in Arizona
**Chapp 19**
72
(Landlord and Tenant Act)
What court system **deal with disputes of Landlord-Tenant Act?**
(Landlord and Tenant Act)
**Civil Courts -**
handle disputes of Landlord-Tenant Act
**Chap 19**
73
(Landlord and Tenant Act) These items pertain to what problem?
1. **Landlord May Not enter into Lease with Tenant. - If Ex\_\_\_\_ B\_\_\_\_ I\_\_\_\_**
2. **_Landlord Must Provide_** **- B\_\_\_\_ Ed\_\_\_ M\_\_\_\_\_**-
3. **Tenant must not move into Apt - M\_\_\_\_\_ I\_\_\_\_\_\_ with B\_\_\_\_\_\_\_**
4. **_Bedbugs Found_** - **T\_\_\_\_ - must N\_\_\_ L\_\_\_\_\_ by W\_\_\_\_\_ or E\_\_\_\_\_\_ M\_\_\_**
5. **_Landlord/Tenant of SFR_** are **Ex\_\_\_\_ from P\_\_\_\_\_ of B\_\_\_\_ L\_\_\_**
(Landlord and Tenant Act) **Bedbug Control** -
1. **_Existing Bedbug Infestation_** - Landlord may not enter into lease with tenant.
2. **_Bedbug Educational Materials_** - provided by landlord
3. **_Materials infested with bedbugs_** - Tenant - shall not move in to apt.
4. **_Bedbugs Found_** - Tenant - must **Notify Landlord by Written or Electronic Mail**
5. **_Landlord/Tenant of SFR_** are **Excluded from Provisions of BedBug Laws.**
**Chap 19**
74
**Aspect of real estate** that deals with **leasing, managing, marketing,** and **maintenance of property for others** for a **fee**.
1. Broker **(Property Manager)**
2. Broker **(General Agent) - of owner**
3. Must be **licensed** if he/she handles **more than one property.**
4. Has **fiduciary relationship** **to owner** (CARLOD - compentency, accounting, reasonable care, loyalty, obedience, disclosure)
5. **Agent represents broker**.
**Property Management** -
**Aspect of real estate** that deals with **leasing, managing, marketing,** and **maintenance of property for others** for a **fee**.
1. Broker **(Property Manager)**
2. Broker **(General Agent) - of owner**
3. Must be **licensed** if he/she handles **more than one property.**
4. Has **fiduciary relationship** **to owner** (CARLOD - compentency, accounting, reasonable care, loyalty, obedience, disclosure)
5. **Agent represents broker**.
**Chap 19**
75
These people are **concerned with getting the highest net return on the owner's investment** and **protecting** owner **from foreseeable risk.**
**Duties Include:**
1. Lease Units 6. Advertising
2. Vacancies 7. Reports to Owners
3. Collect Rents 8. Supplies
4. Keeping Accounts 9. Hire Employees
5. Maintenace 10. Remodeling
**Recommendations for:**
1. Liability & Fire Insurance
2. Workman's Comp Insurance
**Property Managers -**
Are concerned with **getting the highest net return on the owner's investment and protecting owner from foreseeable risk.**
**Duties Include:**
1. Lease Units 6. Advertising
2. Vacancies 7. Reports to Owners
3. Collect Rents 8. Supplies
4. Keeping Accounts 9. Hire Employees
5. Maintenace 10. Remodeling
**Recommendations for:**
1. Liability & Fire Insurance
2. Workman's Comp Insurance
76
Under AZ Law, **Property Mgmt Agmts shall state**:
1. **P**_**\_\_\_\_\_**_ **Mgmt S\_\_\_\_** - Terms/Conditions
2. **Ob\_\_\_\_, D\_\_\_\_\_ and Resp\_\_\_\_\_\_\_\_**
3. **_Signed_**: by **O\_\_\_\_** and **D\_\_\_\_\_\_ Br\_\_\_\_\_**
4. **B\_\_\_\_ and T\_\_\_\_\_\_\_\_ Dates**
5. **Can\_\_\_\_\_\_\_\_ Pro\_\_\_\_\_\_\_\_\_\_\_\_\_**
6. **_Requirement_** for Disposition of **M\_\_\_\_ C\_\_\_\_\_\_**.
7. **S\_\_\_\_\_ Reports** - Specify **ty\_\_** and **fr\_\_\_\_\_\_\_**
8. **Op\_\_\_\_\_\_ R\_\_\_\_\_\_** - state **amount/purpose** held for **emergencies**
9. **T\_\_\_\_ Acct** - Disposition/Allocation **interest earned** (remove every 12 months)
10. **Com\_\_\_\_\_\_\_** - state terms/conditions per owner
11. **No As\_\_\_\_\_\_\_\_** - without owners consent.
Under AZ Law -
**Property Management Agreements** shall state:
1. **_Property Mgmt Services_** - Terms/Conditions
2. **Obligations, Duties and Responsibilities**
3. **_Signed_**: by **Owner** and **Designated Broker**
4. **_Begin/Termination Date_**
5. **_Cancellation Provisions_**
6. **_Requirement_** for disposition of _**monies collected**._
7. **_Status Reports_** - Specify **type** and **frequency**
8. **_Operating Reserve_** - state **amount/purpose** held for **emergencies**
9. **_Trust Acct_** - Disposition/Allocation **interest earned** (remove every 12 months)
10. **_Compensation_** - state terms/conditions per owner
11. **_No Assignment_** - without owners consent.
**Chap 19**
77
These items refer to:
1. All **pro\_\_\_\_\_ mgmt ac\_\_\_\_\_\_** shall be **designated as trust accounts.**
2. Designated Broker, Agents, Employees may sign checks, but **OWNER MAY NOT SIGN!**
**Property Management Accounts**
1. All **_property management accounts_** shall be designated as **trust accounts.**
2. Designated Broker, Agents, Employees may sign checks, **but OWNER MAY NOT SIGN!**
**Chap 19**
78
**Property Management (Record Keeping)**
1. _Residential Property_:
1. _Leases/Finder Fee_ - **(\_ yr)** after termination
2. _Financial_ - **(\_\_ yrs)**
1. Commercial Properties - **(\_\_ years)**
2. _Property Mgmt Agmts - Terminated_ - To Owner in:
1. **(5 days)** - Security Deposit List
2. **(35 days)** - reimbursement all monies in accounts
3. **(75 days)** - final accounts receivable/payable list
4. **(75 days)** - final bank account reconciliation
**Property Management** **(Record Keeping)**
1. **_Residential Property_**:
1. _Leases/Finder Fee_ - **(1 year)** after termination
2. _Financial_ - **(3 years)**
1. **_Commercial Poperties_** - **(5 years)**
2. _Property Mgmt Agmts - Terminated_ - Give owner in;
1. **(5 days)** - Security Deposit List
2. **(35 days)** - reimbursement all monies in accounts
3. **(75 days)** - final accounts receivable/payable list
4. **(75 days)** - final bank account reconciliation
**Chap 19**
79
**Findeers Fee Payments** may be **paid** to an **unlicensed person** **who is a tenant in a apartment complex.**
Must be:
1. **R\_\_\_ Cr\_\_\_\_\_**
2. **R\_\_\_ R\_\_\_\_\_\_\_\_**
3. **C\_\_\_\_t be C\_\_\_\_**
**Finders Fee Payments to Tenants**
Finder Fees may be **paid** to an **unlicensed person** who is **a tenant in a apartment complex.**
Must be:
1. **Rent Credit**
2. **Rent Reduction**
3. **Cannot be Cash**
**Chap 19**
80
These are **Property Management Situations** that are **Legal or Illegal**?
1. **_Agent/Associate Broker_** **acting outside of brokerage** as management.
2. **_Unlicensed person_** providing property management services, **to more that one property**.
**Illegal Property Management Situations -**
1. **_Agent/Associate Broker_** **acting outside of brokerage** as management.
2. **Unlicensed person** providing property management services, **illegal if handling more than one property.**
**Chap 19**
81
**A real estate development** which includes real estate **owned by an association** created for purpose of the following is called?
1. **Prop\_\_\_\_ Du\_\_\_\_\_** - Managing, Maintaining, and Improving.
2. **Sep\_\_\_\_\_O\_\_\_\_\_ Par\_\_\_** - **Owners Manda\_\_\_\_ Members** and are **required to** **pay A\_\_\_\_\_\_ Assessments.**
3. **_Resale_** - **\_\_ days** **written notice of pending sale** and deliver docs to purchaser if
1. **_Under 50 units_** - **S\_\_\_\_\_ Provides**
2. **_50 units or more_** - **Ass\_\_\_\_\_ Provides**
**Planned Community -**
**A real estate development** which includes real estate **owned by an association** created for purpose of
1. **_Property Duties_** - Managing, Maintaining, and Improving.
2. **_Separate Owned Parcels_** - **Owners Mandatory Members** and are required to **pay association assessments.**
3. **_Resale_** - **10 days** **written noitce of pending sale** and deliver docs to purchaser,if
1. **_Under 50 units_** - Seller Provides
2. **_50 units or more_** - Association Provides
**Chap 19**
82
**Resale Units - Planned Community**
_**Written Notice of Pending Sale -** **(\_\_days) Buyer must receive**_:
1. **By-L\_\_\_\_** and **Ass\_\_\_\_ Rules**
2. ****_D_**ec\_\_\_\_\_\_\_** - of Planned Community
3. **_Name_** **- Pri\_\_\_\_\_ Con\_\_\_\_\_** **of Association**
4. **Association Ass\_\_\_\_\_\_\_ - Amount**
5. **Ins\_\_\_\_\_\_ Stmt** - Partial Coverage paid by Assoc
6. **R\_\_\_\_\_\_\_** - Total Monies Held
7. **Op\_\_\_\_\_ Bu\_\_\_\_\_/F\_\_\_\_\_\_\_ Rep\_\_\_** - Current Copy
8. **Alt\_\_\_\_\_\_/Im\_\_\_\_\_\_\_\_\_** - **In Violation**
9. **Lit\_\_\_\_\_ P\_\_\_\_\_\_\_** - On Unit to Owner or Association
* **_1-49 units_** - Seller must provide
* **_50+ units_** - Association must provide info. Board meets Annually - Complies with Open Mtg Laws
**Resale Units - Planned Community**
**_Written Notice of Pending Sale - (10days) Buyer must receive:_**
1. **_By-Laws_** and **Association Rules**
2. **_Declaration_** - of Planned Community
3. **_Name_** **- Principal Contact** **of Association**
4. **_Association Assessment_ - Amount**
5. **_Insurance Stmt_** - Partial Coverage paid by Assoc
6. **_Reserves_** - Total Monies Held
7. **_Operating Budget/Financial Reports_** - Current Copy
8. **_Alterations/Improvements_** - **In Violation**
9. **_Litigation Pending_** - On Unit to Owner or Association
* **_1-49 units_** - Seller must provide
* **_50+ units_** - Association must provide info. Board meets Annually - Complies with Open Mtg Laws
**Chap 19**
83
This **person** concerned with **getting highest return on owner's investment** and **protecting the owner from foreseeable risk.**
**Property Manager -**
This **person** concerned with **getting highest return on owner's investment** and **protecting the owner from foreseeable risk.**
**Chap 19**
84
This document must state all "material terms, regarding
1. Services, Obligations, and Duties.
2. Signed by Owner and Broker,
3. Begin and End dates,
4. Cancellations Provisions,
5. Conditions of Compensation
6. Frequency of Status Reports,
7. Deposition of all Monies,
8. Operating Reserves,
9. Trust Account - Interest Earned
10. Not assigned to Another without Consent
**Property Mgmt Agreement -**
This document must state all "material terms, regarding
1. Services, Obligations, and Duties.
2. Signed by Owner and Broker,
3. Begin and End dates,
4. Cancellations Provisions,
5. Conditions of Compensation
6. Frequency of Status Reports,
7. Deposition of all Monies,
8. Operating Reserves,
9. Trust Account - Interest Earned
10. Not assigned to Another without Consent
**Chap 19**
85
**What are first 5 material terms** of the **Property Management Agreement?**
**Hint: Signed Service Begins or Cancelled Compensation**
1. **Ser\_\_\_\_, Ob\_\_\_\_\_, and Du\_\_\_\_.**
2. **Signed by O\_\_\_ and B\_\_\_\_\_,**
3. **B\_\_\_\_ and E\_\_ dates,**
4. **Can\_\_\_\_\_\_\_ Pro\_\_\_\_\_\_\_,**
5. **Conditions of Com\_\_\_\_\_\_\_\_\_\_\_**
**Property Management Agreement (Terms) -**
**First 5 out of 10**
1. **Services, Obligations, and Duties.**
2. **Signed by Owner and Broker,**
3. **Begin and End dates,**
4. **Cancellations Provisions,**
5. **Conditions of Compensation**
**Hint: Signed Service Begins or Cancelled Compensation**
**Chap 19**
86
What are the **last 5 conditions** of **Property Management Agreement?**
**Hint: Status and Disposition Of Trust &Non Consent**
1. **St\_\_\_ Rep\_\_\_\_ - F\_\_\_\_\_\_ and Ty\_\_\_\_\_**
2. **Disp\_\_\_\_\_ of all M\_\_\_\_\_\_ C\_\_\_\_\_\_\_,**
3. **Op\_\_\_\_\_\_ R\_\_\_\_\_\_\_ - For emergencies and other purposes**
4. **Tr\_\_\_\_\_ Account - Disposition/Allocation of In\_\_\_\_ E\_\_\_\_\_\_**
5. **N\_\_\_ Ass\_\_\_\_\_\_ - To another Licensee without Consent**
**Property Management Agreement**
**Terms 6-10**
1. **Status Reports - Frequency and Type**
2. **Disposition of all Monies Collected,**
3. **Operating Reserves - for emergencies and other purposes,**
4. **Trust Account - Disposition/Allocation of Interest Earned**
5. **Not assigned - To Another Licensee without Consent**
**Hint: Status and Disposition Of Trust & Non Consent**
87
If a landlord and tenant enter into a lease agreement for **a single family residence**, what are the **bedbug provisions?**
**SFR Single Family Residence (Bedbugs)**
**Excluded from Bedbug Laws**
**Chap 19**
88
What are the Property Managers **first 5 of 10 Duties?**
1. **L\_\_\_s\_ U\_\_\_** 6. Advertising
2. **V\_\_\_\_\_\_\_** 7. Reports to Owners
3. **C\_\_\_\_ R\_\_\_\_** 8. Supplies
4. **Keep A\_\_\_\_\_\_\_** 9. Hire Employees
5. **M\_\_\_\_\_\_\_\_** 10. Remodeling
**Property Manager (Duties) -**
**First 5 of 10**
1. **Lease Units** 6. Advertising
2. **Vacancies** 7. Reports to Owners
3. **Collect Rents** 8. Supplies
4. **Keeping Accounts** 9. Hire Employees
5. **Maintenace** 10. Remodeling
**Chap 19**
89
What are the Property Managers, **last 5 of 10 duties?**
1. Lease Units 6. **Adv\_\_\_\_\_\_\_\_**
2. Vacancies **7. Rep\_\_\_\_ to Owners**
3. Collect Rents **8. Sup\_\_\_\_\_**
4. Keeping Accounts **9. H\_\_\_ E\_\_\_\_\_\_\_\_\_**
5. Maintenace **10. Remo\_\_\_\_\_\_\_\_**
**Property Manager (Duties) -**
**Last 5 of 10**
1. Lease Units **6. Advertising**
2. Vacancies **7. Reports to Owners**
3. Collect Rents **8. Supplies**
4. Keeping Accounts **9. Hire Employees**
5. Maintenace **10. Remodeling**
**Chap 19**
90
**Who are the Property Management (Parties)**
1. **Property Owner is** an **Inv\_\_\_\_\_\_** who employs broker.
2. **Broker (Prop Mgr)** is the **G\_\_\_\_\_ A\_\_\_\_** of the owner
3. **Broker** has **F\_\_\_\_\_ Relationship** towards **property owner**
4. The **Salesperson** represents **B\_\_\_\_\_\_.**
**Property Management (Parties) -**
1. **Property Owner** is **Investor** who employs broker.
2. **Broker (Prop Mgr)** is the **General Agent** of the owner
3. **Broker** has **Fiduciary Relationship** towards property owner
4. The **Salesperson** represents **Broker**
**Chap 19**
91
**Property Management Agrmt (Terminated) -**
**_Brokerage Must Give Owner -_**
1. **Security Deposits List** - ___ Days
2. **Prop Mgmt Acct Monies** - ___ Days
3. **Accts Rec/Pay** - ___ Days
4. **Bank Acct Reconciliation** ___ Days
**Property Management Agrmt (Terminated) -**
**_Brokerage Must Give Owner -_**
1. **Security Deposits List** - 5 Days
2. **Prop Mgmt Acct Monies** - 35 Days
3. **Accts Rec/Pay** - 75 Days
4. **Bank Acct Reconciliation** - 75 Days
**Chap 19**
92
**Property Management Records** for _leases/finder fees_ and _financials_ held for how long?
1. **Leases/Finder Fee** - \_\_\_year after terminated
2. **Financial** - __ years
**Property Management Records** for _leases/finder fees_ and _financials_ -
1. **Leases/Finder Fee** - 1 year after terminated
2. **Financial** - 3 years
**Chap 19**
93
**Property Management (Record Keeping)**
1. _Property Mgmt Agmts - Terminated_ - To Owner in:
1. **(\_\_days)** - Security Deposit (List)
2. **(\_\_ days)** - Reimbursement All Monies in Accounts
3. **(\_\_ days)** - Final Accounts Receivable/Payable list
4. **(\_\_ days)** - Final Bank Account Reconciliation
**Property Management** **(Record Keeping)**
1. _Property Mgmt Agmts - Terminated_ - Give owner in;
1. **(5 days)** - Security Deposit (List)
2. **(35 days)** - Reimbursement All Monies in Accounts
3. **(75 days)** - Final Accounts Receivable/Payable list
4. **(75 days)** - Final Bank Account Reconciliation
**Chap 19**
94
A real estate development - which includes _real estate owned by an association_ created for purpose of **"managing, maintaining or improving property,"** and which **"owners of seperately owned parcels"** are **"mandatory members"** and **"required to pay association assessments."**
**Planned Community -**
A real estate development - which includes _real estate owned by an association_ created for purpose of **"managing, maintaining or improving property,"** and which **"owners of seperately owned parcels"** are **"mandatory members"** and **"required to pay association assessments.**
**Chap 19**
95
Means "According to Value"
**Ad Valorem -**
Means according to value
**Chap 18**
96
**A claim against property** to secure a debt; **money encumbrance.**
**Lien -**
A claim against property to secure a debt; money encumbrance.
**Chap 18**
97
**What type of liens have 1st priority over all other liens.** They include **Full Cash Values, Limited Values, Deliquent Tax Liens, Community Facilities Districts**, and **Special Assessments.**
R**eal Estate Tax Liens -**
**_Have 1st priority over all other liens_**. They include **Full Cash Values, Limited Values, Deliquent Tax Liens, Community Facilities Districts, and Special Assessments.**
**Chap 18**
98
In Relation to Real Estate Taxes what property value does this process represent?
1. **_Establish (Jan 1st)_** - for next year,
2. **_Owner Notified by Mail_** - of **F\_\_ C\_\_\_ V\_\_\_** and **Assessed Value (LPV x AV Ratio)**
**Full Cash Value (FCV/Assessed Value) -**
1. **_Establish (Jan 1st)_** - for next year,
2. **_Owner Notified by Mail**_ - of _**Full Cash Value**_ and _**Assessed Value (LPV x AV Ratio)_**
**Chap 18**
99
All real estate taxes are calculated on this tax basis.
1. _____ cannot exceed FCV
2. Any increase - limited to 5% of previous year's \_\_\_\_
**Limited Property Value (LPV) -**
All real estate taxes are based on this tax basis.
1. _LPV_ cannot exceed FCV (Full Cash Value)
2. Any increase - **limited to 5% of Previous Year's LPV**
**Chap 18**
100
This is formula for what?
* Limited Property Value
* _x Assessed Value Ratio_
* = What
**Assessed Value Formula**
* Limited Property Value
* _x Assessed Value Ratio_
* **= Assessed Value**
* * **_Assessed Value Ratios are_**
* 18% - Commercial (Class 1)
* 15% - Vacant Land (Class 2)
* 10% - Own Occupied Resiential (class 3)
* 10% - Residential Income (class 4)
101
Set by State law what are the "Assesed Value Ratios" ratios for?
1. Commercial (class 1) - **\_\_\_%**
2. Vacant Land (class 2) - **\_\_\_%**
3. Res/Own Occ (class 3) - **\_\_\_%**
4. Res/Income Prop (class 4 ) - **\_\_\_%**
5. Note: Class 4 - **Files what?**
**Assessed Value Ratio (Set by State)** **-**
1. **Commercial** (class 1) - **18%**
2. **Vacant Land** (class 2) - **15%**
3. **Res/Own Occ** (class 3) - **10%**
4. **Res/Income Prop** (class 4 ) - **10%**
5. Note: Class 4 -
**Files "Residential Rental Prop Registration form"**
**Chap 18**
102
What is **"Set by Local Government" as a portion of Assessed Value**?
Usually stated as **_Amount per $100 of assessed value_**, also as mills (one thousandth per dollar = .001)
ex: $18 per $100 t\_\_\_ r\_\_\_ with limited value of $10,000
* 18/100 = .18 or 180 mills/1000 =.18
* 10,000 x .18 = $1800 Property Taxes
**Tax Rate (set by local government) -**
Usually stated as **Amount per $100 of assessed value**, also as mills (one thousandth per dollar = .001)
ex: $18 per $100 tax rate with limited value of $10,000
* 18/100 = .18 or 180 mills/1000 =.18
* 10,000 x .18 = $1800 Property Taxes
**Chap 18**
103
What does this describe?
**Once property taxes are deliquent,** a **treasurer's sale** is conducted, and owner is given a **3 year redemption period**. When no redemption takes place, the **Certificate of Puchase holder has Judicial Foreclosure** where a **Treasurer's Deed** is obtained.
***_Delinquent Tax Lien Sale_* and _Foreclosure_**
**Once property taxes are deliquent,** a **treasurer's sale** is conducted, and owner is given a **3 year redemption period**. When no redemption takes place, the **Certificate of Puchase holder has Judicial Foreclosure** where a **Treasurer's Deed** is obtained.
**Chap 18**
104
**C\_\_\_\_\_\_\_\_\_ Fac\_\_\_\_\_\_ Dis\_\_\_\_\_\_\_**
**Special taxing districts** formed to **finance (through bonds)** the **aquisition,** **construction, operation, maintenance** of **public infrastructures in planned community.**
* The owner is **_charged on property tax bill_**
* **(special taxing for public planned community infrastructures):**
**Community Facilities District (CFD) -**
**Special taxing districts** formed to **finance (through bonds)** the **aquisition**, **construction, operation, maintenance** of **public infrastructures in planned community.**
* The owner is **_charged on property tax bill_**
* **(special taxing for planned community infrastructures)**
**Chap 18**
105
**How are taxes paid (prepaid or arrears) and how often?**
1. _**Jan-June** **(1st half)**_ **-**
* **Due: \_\_\_\_\_**
* **Late: _____ (30 days)**
1. _**July-Dec** **(2nd half)**_ **-**
* **Due: _____ next year**
* **Late: _____ (60 days)**
**Hint: Owe No More Money (Oct, Nov, Mar, May)**
**Taxes paid in "arrears" (semi-annually) -**
1. _**Jan-June** **(1st half)**_ **- Due: 10-01 current year**
* **Late: 11-01 (30 days)**
1. _**July-Dec** **(2nd half)**_ **- Due: 03-01 next year**
* **Late: 05-01 (60 days)**
**Hint: Owe No More Money (Oct, Nov, Mar, May)**
**Chap 18**
106
**Lien** against property for **specific public improvements.**
(Paving, sewers, sidewalks, etc)
**Special Assessments Lien -**
**Lien** against property for **specific public improvements**. (Paving, sewers, sidewalks, etc). **Levied on front foot basis.**
**Chap 18**
107
These items pertain to what type of lien?
1. **_Subordinate Status_** - to **First Mortgage, Deed of Trust, Agreement of Sales Liens**
2. **_Foreclose_** - If **unpaid over 1yr /$1200** or more due.
3. **_Foreclosure_** - Judicially
**HOA Assessment Liens -**
1. **_Subordinate Status_** - to **First Mortgage, Deed of Trust, Agreement of Sales Liens**
2. **_Foreclose_** - If **unpaid over 1yr /$1200** or more due.
3. **_Foreclosure_** - Judicially
**Chap 18**
108
These general liens are called?
1. **_Priority_** established when recorded
2. **_Renewed_** - **Every 10 years**
3. **_Writ of Execution_** - Levy/Attachment
4. **_Revealed by_**:
* **Title Report**
* **County Recorder's Records**
* **Credit Report**
**Judgements (Court Ordered) General Liens -**
1. **_Priority_** established when recorded
2. **_Renewed_** - **Every 10 years**
3. **_Writ of Execution_** - Levy/Attachment
4. **_Revealed by_**:
* **Title Report**
* **County Recorder's Records**
* **Credit Report**
**Chap 18**
109
These general liens are called?
**Claims placed by IRS or AZ Gov** on **all property** both **real and personal**
1. Priority established when recorded.
2. No special priority over recorded liens.
**Income - Tax Liens (General Liens) -**
**Claims placed by IRS or AZ Gov** on **all property** both **real and personal**
1. Priority established when recorded.
2. No special priority over recorded liens.
**Chap 18**
110
**This exempts** a **portion** of a **homeowner's equity from attachment and execution of a forced sale** due to **(non-payment of judgment).****Max $150,000 - Home, Condo, Mobile Home. In AZ automatic, no recording.**
**No Forced Sale Protection -**
1. **Mortgage/Trust Deed**
2. **Land Contract**
3. **Property Taxes**
4. **Assessments**
5. **Mechanic's liens**
**Homestead Exemption**
This **exempts a portion** of a **homeowner's equity from attachment/execution of a forced sale** due to **(non-payment of judgment)**. **Max $150,000 - Home, Condo, Mobile Homes. In AZ automatic no recording.**
**No Forced Sale Protection - (May Lord Protect All Matter)**
1. **Mortgage/Trust Deed**
2. **Land Contract**
3. **Property Taxes**
4. **Assessments**
5. **Mechanic's liens**
**Chap 18**
111
What has **#1 priority over all liens**
**Real Estate Property Taxes**
**#1 priority over all liens**
**Chap 18**
112
A **percentage of the property's fair market value**, set by state law.
**Assessed Value Ratios -**
A **percentage of the property's fair market value**, set by state law.
* **_Commercial (Class 1)_** - 18%
* **_Vacant (Class 2)_** - 15%
* **_Res Own\_Occupied (Class 3)_** - 10%
* **_Res Income (Class 4)_** - 10%
* Res Rental Prop Registration (Assessors)
**Chap 18**
113
**At this sale, treasurer holds tax lien auction** live or online and **issues "Certificate of Purchase"** to highest bidder. **Owner has (3 year redemption period).**
**Treasurer's Sale -**
**Treasurer holds tax lien auction** live or online and **issues "Certificate of Purchase"** to highest bidder. **Owner has (3 year redemption period).**
**Chap 18**
114
**Received by highest bidder at** tax lien auctions (Treasurer's Sale).
**Certificate of Purchase -**
**Received by highest bidder at** tax lien auctions (Treasurer's Sale).
**Chap 18**
115
After Treasurer's Sale, 3 year Redemption period, and Judicial Foreclosure, how is title conveyed to highest bidder
**Treasurer's Deed -**
Title is conveyed after Treasurer's Sale, 3 year Redemption period, and Judicial Foreclosure to highest bidder.
**Chap 18**
116
On deliquent tax liens that have gone to auction, what is the redemption period?
**3 Year Redemption Period -**
**Afater Treasurer's Sale and the Cert of Purchase is issued to highest bidder. Owner has 3 years to redeem by paying all due plus interest on certificate.**
**Chap 18**
117
**LPV (LImited Prop Value)** may not increase more that \_\_\_% annually.
**LPV (LImited Prop Value) -**
**Max increase per year is 5%**
**Chap 18**
118
To record a deed what is also needed and shows sales price.
**Affidavit of Value -**
**Shows Sales price, and must be recorded with Deed**
**Chap 18**
119
If Owners Full Cash Value is too high, who can they appeal too?
**_Owners (FCV to High) - Appeals_**: -the A\_\_\_\_\_\_\_\_; then S\_\_\_Board of E\_\_\_\_\_\_ (SBOE); then T\_\_ C\_\_\_\_\_\_
**_New Constructions (Sept):_**
1. **_"Supplemental Notice of Value"_** - to **Owner in Sept**
2. **_Owner - Appeal_** - in __ days - to S\_\_\_\_ Board of E\_\_\_\_\_\_ (SBOE)
3. **_May Revalue_** - as (Partial Complete)
**Full Cash Value Appeals Process (25)**-
**_Owners (FCV to High) - Appeals_**: -***Assessor***, then ***State Board of Equalization (SBOE)***; then ***Tax Court***
**_New Constructions (Sept):_**
1. **_"Supplemental Notice of Value"_** - to **Owner in Sept**
2. **_Owner - Appeal_** - in ***25 days*** - to ***State Board of Equalization (SBOE)***
3. **_May Revalue_** - as (Partial Complete)
**Chap 18**
120
**1st Half of taxes (Jan-June) - Due Dates**
1. _**Jan-June** **(1st half)**_ **-**
* **Due:**
* **Late:**
**Hint: Owe No More Money (Oct, Nov, Mar, May)**
**1st Half of taxes (Jan-June) - Due Dates**
1. _**Jan-June** **(1st half)**_ **-**
* **Due: 10-01**
* **Late: 11-01 (30 days)**
**Hint: Owe No More Money (Oct, Nov, Mar, May)**
**Chap 18**
121
**These are due dates for what?**
1. _**Jan-June** **(1st half)**_ **- Due: 10-01**
1. **Late: 11-01 (30 days)**
2. _**July-Dec** **(2nd half)**_ **- Due: 03-01 next year**
1. **Late: 05-01 (60 days)**
**Hint: Owe No More Money (Oct, Nov, Mar, May)**
**Property Taxes - paid in arrears (semi-annually) -**
1. _**Jan-June** **(1st half)**_ **- Due: 10-01**
1. **Late: 11-01 (30 days)**
2. _**July-Dec** **(2nd half)**_ **- Due: 03-01 next year**
1. **Late: 05-01 (60 days)**
**Hint: Owe No More Money (Oct, Nov, Mar, May)**
**Chap 18**
122
**2nd Half of Taxes Due Dates:**
1. _**July-Dec** **(2nd half)**_ **-**
* **Due (Next Yr):**
* **Late (Next Yr):**
**Hint: Owe No More Money (Oct, Nov, Mar, May)**
**2nd Half of Taxes Due Dates:**
1. _**July-Dec** **(2nd half)**_ **-**
* **Due (Next Yr): 03-01 next year**
* **Late (Next Yr): 05-01 (60 days)**
**Hint: Owe No More Money (Oct, Nov, Mar, May)**
**Chap 18**
123
What type of Lien is for labor or material supplied to property?
1. **_Licensed Contractor Only_** - records lien
2. **_Lien Priority_** - Date work begins
**Mechanic's Lien -**
Lien for "labor or materials" supplied to property.
1. **_Licensed Contractor Only_** - records lien
2. **_Lien Priority_** - Date work begins
**Chap 18**
124
How much time do you have to **Foreclose on a Mechanics Lien?**
**Foreclose on Mechanic's Lien**
1. **_Foreclose in 6mos (180dys)_** - foreclose from **6 mos (180dys) of recording lien.**
**Chap 18**
125
During the Mechanic's Lien process...
What must Contractor/Material Supplier must **deliver to property owner in 20 days of work start**?
**Mechanic's Lien**
1. **_Preliminary Lien Notice_** - Contractor/Material Supplier **must deliver to property owner** **in** **20 days of work start date.**
**Chap 18**
126
When must **Mechanics Lien be filed upon completion of work**?
**Mechanic's Lien**
1. **_Mechanic's Lien_** - **Record 120 days of Completion** - both orig/sub-contractor must record
**Chap 18**
127
A Mechanic's **Lien Priority** is based on what?
**Mechanic's Lien - Lien Priority -**
1. **_Lien Priority_** - **Date work begins**
**Chap 18**
128
If a Lessee orders work to be done in his apartment,the lien belongs to whom?
**Work order by Lessee of Apt -**
1. **_Lessee Work Order_** - Lien on Lessee.
**Chap 18**
129
**C\_\_\_\_\_\_\_\_\_ Fac\_\_\_\_\_\_ Dis\_\_\_\_\_\_\_**
**Special taxing districts** formed to **finance (through bonds)** the **aq\_\_\_\_\_\_,** **con\_\_\_\_\_\_, oper\_\_\_\_\_\_, main\_\_\_\_\_\_** of **public infrastructures in planned community.**
* The owner is **_charged on property tax bill_**
* **(special taxing for public planned community infrastructures):**
**Community Facilities District (CFD) -**
**Special taxing districts** formed to **finance (through bonds)** the **aquisition**, **construction, operation, maintenance** of **public infrastructures in planned community.**
* The owner is **_charged on property tax bill_**
* **(special taxing for planned community infrastructures)**
**Chap 18**
130
**During Redemption period (Tax Liens), what must owner pay and to whom?**
1. **_3 yrs Redemption_** - Owner to pay B\_\_\_\_\_ due plus I\_\_\_\_\_\_\_
2. **Paid to** - **C\_\_\_ of Pur\_\_\_\_ Holder**
**During Redemption period (Tax Liens), what must owner pay and to whom?**
1. **_3 yrs Redemption_** - Owner to pay **balance** **due** **plus interest**
2. **Paid to** - **Certificate of Purchase Holder**
**Chap 18**
131
**Delinquent Tax Lien**
1. **_Delinquent Tax Lien_** - Interest accrues at **\_\_% a year**
***_Delinquent Tax Lien Sale_* and Foreclosure**
1. **_Delinquent Tax Lien_** - Interest accrues at **16% a year**
**Chap 18**
132
**If No Redemption in 3 years (Tax Lien)?**
1. **_If No Redemption_** -
* **_Foreclose (Judicial)_** - Within **\_\_\_ yrs from Cert of Purchase Issuance**
* **_Allow Interest to Accrue_** on deliquent taxes
* **_Owner Notified_** - **\_\_\_ days "before** **foreclosure action**" **by certified mail.**
***_Tax Liens - If No Redemption in 3 years -_***
1. **_If No Redemption_** -
* **_Foreclose (Judicial)_** - Within **10 yrs** from **Cert of Purchase Issuance**
* **_Allow Interest to Accrue_** on deliquent taxes
* **_Owner Notified_** - **30 days "**before foreclosure action" **by certified mail.**
* **_Treasurer's Deed_** - Acquired at Foreclose Judicial Action
**Chap 18**
133
**If No Redemption (Tax Lien) - when can you foreclose?**
**Foreclosure (If No Redemption)**
* **_Foreclose (Judicial)_** - Within **\_\_\_yrs** from **Cert of Purchase Issuance**
* **_Allow Interest to Accrue_** on deliquent taxes
**If No Redemption (Tax Lien) - when can you foreclose?**
**Foreclosure (If No Redemption)**
* **_Foreclose (Judicial)_** - Within **10 yrs** from **Cert of Purchase Issuance**
* **_Allow Interest to Accrue_** on deliquent taxes
**Chap 18**
134
**Upon Foreclosure of Tax Lien, is owner notified?**
1. **_If No Redemption_** -
* **_Owner Notified_** - **\_\_\_\_ days "before** **foreclosure action**" **by C\_\_\_\_\_ M\_\_\_.**
* **_Treasurer's Deed_** - Acquired at Foreclose Judicial Action
**Foreclosure of Tax Lien - Owner Notification**
1. **_If No Redemption_** -
* **_Owner Notified_** - **30 days "**before foreclosure action" **by Certified Mail.**
* **_Treasurer's Deed_** - Acquired at Foreclose Judicial Action
**Chap 18**
135
Failure to comply with any terms of the note or mortgage
**Default -**
Failure to comply with any terms of the note or mortgage
**Chap 17**
136
**Lien placed** on property **with owner's consent are called?**
_Three (3) types of liens are_
1. **Mortgagees, Trust Deeds, and Agreements of Sale.**
2. All three hypothecate real estate as security for debt.
**Voluntary Liens** -
**Lien placed** on property **with owner's consent.**
_**Three (3) types** of liens are_
1. **Mortgagees, Trust Deeds, and Agreements of Sale.**
2. All three hypothecate real estate as security for debt.
**Chap 17**
137
**A pledge of real property as security** _without_ **giving possession of property to lender.**
**Hypothecation** -
A **pledge of real property as security** _without_ **giving possession of property to lender.**
Note: _Promissory Note (Chap 6)_ - Personal Promise to repay a debt. Serves as evidence of debt, but **does not reference collateral.**
**Chap 17**
138
Mortage Default Process, what are 6 steps?
1. **E\_\_\_ of R\_\_\_\_\_\_** - Borrower holds
2. **L\_\_ P\_\_\_\_\_\_ (Lawsuit)** - recorded
3. **C\_\_\_\_ Ac\_\_\_** - takes place
4. **S\_\_\_\_'s S\_\_\_\_\_** - Highest Bidder received **S\_\_\_\_'s C\_\_\_\_ of Sale**
5. **Stat\_\_\_\_ Ri\_\_\_ of Redem\_\_\_\_** - **For __ months begins**
6. **If N\_ R\_\_\_\_\_\_** - **S\_\_\_\_\_'s Deed** issued to certificate bidder
**Mortgage Default Process (Judicial Foreclosure)**
1. **_Equity of Redemption_** - borrower holds
2. **_Lis Pendens (Lawsuit)_** - recorded
3. **_Court Action_** - takes place
4. **_Sheriff's Sale_** - Highest Bidder received **Sheriff's Certificate of Sale**
5. **_Statutory Right of Redemption_** - **For 6 mos** begins
6. **_No Redemption_** - **Sheriff's Deed** issued to bidder
**Chap 17**
139
**Mortgage Sheriff's Sale - Biddng**
1. **Ex\_\_\_ M\_\_\_ Bid** - Excess funds belong to borrower **(minus foreclosure cost)**
2. **N\_ B\_\_\_** - **Lender bids** and receives **S\_\_\_\_\_'s C\_\_\_\_\_ of S\_\_\_\_\_**
3. **Insu\_\_\_\_\_\_\_ M\_\_\_\_ B\_\_\_** -- **Deficiency Judgment is obtained by lender when sale brings less than amt owed.**
**Mortgage Sheriff's Sale - Bidding**
1. **_Excess Money Bid_** - Excess funds belong to borrower **(minus foreclosure cost)**
2. **_No Bids_** - **Lender bids** and receives **Sheriff's Certificate of Sale**
3. **_Insufficient Money Bid_** -- **Deficiency Judgment is obtained by the lender when sale brings less than amt owed.**
**Remember: Arizona law prohibits (Deficiency Judgment) on 2.5 acres or less or used as sfr)**
**Chap 17**
140
**T\_\_\_\_ D\_\_\_\_ds** -
1. **_Promissory Note_** - promise to repay debt (amount, rate, pattern of payments - no collateral reference)
2. **_Trust Deed_** - Secures note with collateral/property
3. **Trustor**/Borrower; **Beneficiary**/Lender; **Trustee**/3rd Party with power to sell
4. **_Trustee_** acts by Beneficiary instructions, and only when Trust Deed **is paid-off or in default**.
5. **_Defeasance (Pay-off)_** - **Deed of Reconveyance** releases you from Deed of Trust; Beneficiary lender instructs **Trustee to send - 30 days of payoff.**
**Trust Deeds** -
1. **_Promissory Note_** - promise to repay debt (amount, rate, pattern of payments - no collateral reference)
2. **_Trust Deed_** - Secures note with collateral/property
3. **Trustor**/Borrower; **Beneficiary**/Lender; **Trustee**/3rd Party with power to sell
4. **_Trustee_** acts by Beneficiary instructions, and only when Trust Deed **is paid-off or in default.**
5. **_Defeasance (Pay-off)_** - **Deed of Reconveyance** releases you from Deed of Trust; Beneficiary lender instructs **Trustee to send - 30 days of payoff.**
**Chap 17**
141
**_Non-Judicial (Trustee's Power of Sale)_**
1. **Tr\_\_\_ Instructed to S\_\_\_ -** Per Benificiary-Lender
2. **Not\_\_ of Def\_\_\_ and Tru\_\_ S\_\_\_** - **recorded** by Trustee (County Recorder Office)
3. **N\_\_\_ to Tr\_\_\_/Borrower**: Trustee sends "Notice of Default and Trustee Sale" **to Tr\_\_\_\_ and anyone who recorded "Request for Notice of Default.**
4. **R\_\_\_\_ of Rein\_\_\_\_\_\_\_\_** - Trustor/Borrower may cure default by **paying back balance due and (cost/penalties)** at **anytime before sale in** **(\_\_\_ days)**
5. **Tr\_\_\_\_\_ Sale held** - After 90 days Right of Reinstatement period. **Sale held and T\_\_\_\_ Deed** - to highest bidder.
6. **Tr\_\_\_\_ D\_\_\_\_\_ -** given to highest bidder.
**Def\_\_\_\_\_ J\_\_\_\_\_\_\_ prohibited** - 2 1/2 acres or less (SFR/2Units)-
Trust Deed in Default (Non Judicial Foreclosure)
**_Non-Judicial (Trustee's Power of Sale)_**
1. **_Trustee Instructed_** **_to Sell_ -** Per Benificiary-Lender
2. **_Notice of Default and Trustee Sale_** - **recorded** by Trustee (County Recorder Office)
3. **_Notice to Trustor/Borrower**_: Trustee sends "Notice of Default and Trustee Sale" _**to trustor and anyone who recorded "Request for Notice of Default._**
4. **_Right of Reinstatement_** - Trustor/Borrower may cure default by payng back **balance due and (cost/penalties)** at **anytime before sale** **in** **(90 days)**
5. **_Trustee Sale held_** - After 90 days Right of Reinstatement period. **Sale held and Trustee Deed** - to highest bidder.
6. **_Trustee Deed_** - given to highest bidder
**_Deficiency Judgement prohibited_** - 2 1/2 acres or less (SFR/2Units)
**Chap 17**
142
**Agreement for Sale** is also know as?
**1) Contract for S\_\_\_ of R\_\_\_ Es\_\_\_\__;_ 2) L\_\_\_ Con\_\_\_\_; 3) C\_\_\_\_\_ for D\_\_\_\__;_ 4) V\_\_\_\_\_'s L\_\_\_\_**
**Entails the following:**
1) **A Contract for Sale** **of Property** and **financing instrument - all in one**. **2)** **Deed is not delivered at closing** as with a mortgage/trust deed. **3) At closing buyer should "record" contract to show "equitable title." 4)** **Seller** usually delivers **deed to buyer after final payment.**
**Agreement for Sale** also known as:
**1) _Contract for Sale of Real Estate;_ 2) _Land Contract_; 3) _Contract for Deed;_ 4) _Vendor's Lien_**
This type of contract entails the following:
1) **A Contract for Sale** **of Property** and **financing instrument - all in one**. **2)** **Deed is not delivered at closing** as with a mortgage/trust deed. **3) At closing buyer should "record" contract to show "equitable title." 4)** **Seller** usually delivers **deed to buyer after final payment.**
**Chap 17**
143
**Agmt for S\_\_\_ aka C\_\_\_ for S****\_\_\_ of R\_\_ Es\_\_\_, aka L\_\_\_ C\_\_\_\_, C\_\_\_\_ for D\_\_\_, and V\_\_\_\_\_ Lien**
1. **Agreement** used as **S\_\_\_ Fin\_\_\_\_\_\_ (contract/financing all in one)**
2. **Vend\_\_/Seller** and **Vend\_\_/Buyer**
3. **At Closing:** **Buyer records** **contract** to show ownership with no deed **(Eq\_\_\_ Ownership)**
**Remember Or Gives and EE receives**
**Agreement for Sale (Contract for Sale of Real Estate, Land Contract, Contract for Deed, and Vendor's Lien)**
1. **Agreement** used as **Seller Financing (contract financing all in one)**
2. **Vend**_or_**/Seller** and **Vend**_ee_**/Buyer**
3. **At Closing:** **Buyer records contract** to show ownership with no deed **(Equitable Ownership)**
**Remember Or Gives and EE receives - Vendor gives financing to Vendee (Buyer)**
**Chap 17**
144
**L\_\_\_ C\_\_\_\_\_ Default Process**: (Agmt of S\_\_\_\_, C\_\_\_ for S\_\_\_ of R\_\_ E\_\_\_, aka L\_\_\_ C\_\_\_\_, aka C\_\_\_ for D\_\_\_\_, V\_\_\_\_'s L\_\_\_)
**_Option #2 - Forfeiture Action_**
1. **_Reinstate (Grace Period)_ - 30 days to 9 mos.** Depending on Purchase Price already paid.
* **1**-**19%** (19pts) - **30 days - single**
* **20%-29%** (9pts) - **60 days - double**
* **30%**-**49%** (9pts) - **120 days - double**
* **50%**-**more** (50pts)- **9 mos - max**
2. **_Grace Period Expires_** - Complete Forfeiture Action
**_Option #1 - Judicial Forclosure - Accelertion Clause -_** exercised foreclose as mortgage.
1. **_Equity of Redemption_** - Held by Borrower
2. **_Lawsuit (Lis Pendens)_** - recorded
3. **_Court Action_** - takes place
4. **_Sheriff's Sale_** - Highest Bid (Sheriff's Certificate of Sale)
5. **_Statutory Right of Redemption_** - 6 mos begins
6. **_No Redemption_** - Sheriff's Deed issued
**_Land Contract Default Process (2 options)_**: (Agreement of Sale aka Contract for Sale of Real Estate, aka Land Contract, aka Contract for Deed, aka Vendor's Lien)
**_Option #2 - Forfeiture Action (Opt 1 Jud Foreclose)_**
1. **_Reinstate (Grace Period)_ - 30 days to 9 mos.** Depending on Purchase Price already paid.
* **1-19%** (19pts) - **30 days - single**
* **20%-29%** (9pts) - **60 days - double**
* **30%-49%** (9pts) - **120 days - double**
* **50%-more** (50pts)- **9 mos - max**
2. **_Grace Period Expires_** - Complete Forfeiture Action
**_Option #1 - Judicial Forclosure - Accelertion Clause -_** exercised foreclose as mortgage.
1. **_Equity of Redemption_** - Held by Borrower
2. **_Lawsuit (Lis Pendens)_** - recorded
3. **_Court Action_** - takes place
4. **_Sheriff's Sale_** - Highest Bid (Sheriff's Certificate of Sale)
5. **_Statutory Right of Redemption_** - 6 mos begins
6. **_No Redemption_** - Sheriff's Deed issued
**Chap 17**
145
**A Sheriff's Sale** is held for **what type of foreclosure?**
**Mortgages (Judicial Foreclosure) -**
**A Sheriff's Sale** is held for Mortgages, after court action. "**Sheriff's Certicated of Sale**" given to highest bidder. Then, _Statutory Right of Redemption_ is held for 6 months by Mortgagor(Borrower).
**Chap 17**
146
What is **given to highest bidder in Sheriff's Sale**
**Sheriff's Certificate of Sale** - is given **to highest bidder.**
_Statutory Right of Reemption_- Begins for 6 months after **Sheriff's Certificate of Sale issued at Sheriff's Sale.** Then **Sheriff's Deed** conveys full title.
**Chap 17**
147
**After a mortgage is paid-off**, what is issued in 30 days by Lender?
**Satisfaction of Mortgage (Defesance/Pay-off)** -
For Mortgages: Lender delivers in 30 days of pay-off to borrower.
**Chap 17**
148
**Mortgages** have a **Judicial or Non-Judicial** Foreclosure?
**Mortgages** have **Judicial Foreclosure** -
1. **_Equity of Redemtion_ -** Held by Borrower
2. **_Lawsuit (Lis Pendens)_** - **Recorded** states pending litigation.
3. **_Court Action_** - Approval
4. **Sheriff's Sale** - Sheriff's Cert of Sale (highest bidder),
5. **_Statutory Redemption (6 mos)_** - for Borrower
6. **_Sheriff's Deed_** - Not redeemed given to holder of Sheriff's Cert of Sale.
**Chap 17**
149
In Trust Deeds, who are the **_trustor**_, _**beneficiary_**, and **_trustee_**.
**Trust Deeds (Parties) -**
1. Trustor/Borrower
2. Beneficiary/Lender
3. Trustee/3rd Party
150
**Trust Deed** - Defeasance (Pay-off) uses what document for pay-offs recieved from Trustor?
**_Deed of Reconveyance_ -**
Beneficiary(lender) instructs Trustee to process **in 30 days of payoff to Trustor (Borrower).**
**Chap 17**
151
Is a **Trust Deed** Foreclosure **Judicial or Non-Judicial?**
**Trust Deed Foreclosure - (Non-Judicial)** both options avail.
1. **_Lender Instructs_** - Trustee to Sell.
2. **_Trustee records_** - Notice of Default and Trustee Sale
3. **_Trustee sends Notice_** to Borrower/2nd Lien Holder
4. **_Right of Reinstatement_** - Bring current plus cost/penalties **(90 days - from recording Notice of Default)**
5. **_Trustee Sale_** - **Trustee's Deed** delivered
**_Deficiency Judgements_** - **prohibited** (SFR/2 Units) **or 2 1/2 acres or less.**
**Chap 17**
152
What other type of sale uses **Judicial proceedings as an option and forfeitures.**
**Land Contract Default Process**: (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor's Lien)
**_Option #2 - Forfeiture Action_**
1. **_Reinstate (Grace Period)_** - 30 days to 9 mos.
2. Depending on Purchase Price already paid. -
* **1- 20% Paid**- 30 days - single
* **20%- 29% Paid** (9pts) - 60 days - double
* **30%- 49% Paid** - (9pts) 120 days - double
* **50%- More** **Paid** - (50pts) 9 mos - baby born
3. **_Grace Period Expires_** - Complete Forfeiture Action **(Bankruptcy's Stop)**
**_Option #1 - Judicial Forclosure - Accelertion Clause_ -** exercised foreclose as mortgage.
1. **_Equity of Redmption_** - Borrower holds
2. **_Lawsuit (Lis Pendens)_** - recorded
3. **_Court Action_** - takes place
4. **_Sheriff's Sale_** - Highest Bid (Sheriff's Certificate of Sale)
5. **_Statutory Right of Redemption_** - 6 mos begins
6. **_No Redemption Done_** - Sheriff's Deed issued
**Chap 17**
153
These **two theories** relate to what?
1. **\_\_\_\_ Theory** -States the **mortgage/trust deed** **_DOES NOT_ convey** any **ownership to lender**.
2. **\_\_\_\_ Theory** - States **legal title** is **conveyed to lender.**
3. Arizona uses what theory?
**Lien vs Title Theory**
1. **Lien Theory** - States the **mortgage/trust deed DOES NOT convey** any ownership to lender.
2. **Title Theory** - States **legal title is conveyed** **to lender.**
3. **Arizona uses "Lien Theory."**
**Chap 17**
154
A legal document obtained by a lender when a **foreclosure sale brings less than the amount owed**.
1. **2 1/2 Acres or less** - (SFR/2Units) **prohibit this document from being filed**
2. Married Couple - (Quit Claim Deed) does not relieve spouse from liability of Deficiency Judgment.
**Deficiency Judgment -**
A legal document obtained by a lender when a **foreclosure sale brings less than the amount owed.**
1. **2 1/2 Acres or less** - (SFR/2Units) **prohibits Deficiency Judgment from being filed**
2. Married Couple - (Quit Claim Deed) does not relieve spouse from liability of Deficiency Judgment.
**Chap 17**
155
**Bankruptcies effect** foreclosures in what way.
**Bankruptcies -**
Stop foreclosures or forfeiture process
**Chap 17**
156
**Property given to lender** in return for cancellation of debt (subject to superior and subordinate liens).
**Deed in Lieu of Forclosure -**
**Property given to lender** in return for cancellation of debt (subject to superior and subordinate liens).
**Chap 17**
157
**Foreclosure with Multiple Liens**
1. **Foreclosure of Sup\_\_\_\_\_ (Prior) Lien** - may cancel subordinate lien's interest
2. **Sub\_\_\_\_ (junior) Lien** - has **right to cure Superior Lien** and **foreclose on Jr Lien.**
3. **If Sub\_\_\_\_\_ (junior) Lien foreclosed** - Property delivered to highest bidder **subject to any higher liens.**
**Foreclosure with Multiple Liens** -
1. **_Foreclosure of Superior (Prior) Lien_** - may cancel subordinate lien's interest
2. **_Subordinate (junior) Lien_** - has **right to cure Superior Lien** and **foreclose on Jr Lien.**
3. **_If Subordinate (junior) Lien foreclosed_** - Property delivered to highest bidder **subject to any higher liens.**
**Chap 17**
158
Sale which the **loan balance is higher than the property value.** Lender agrees to accept reduced (short) pay-off.
**Short Sale -**
Sale which the **loan balance is higher than the property value.** Lender agrees to accept reduced (short) pay-off.
**Chap 17**
159
A sale in which the lender has acquired the property thru auction or (trustee sale)
**Bank Owned Property (REO - Real Estate Owned) -**
A sale in which the lender has **acquired the property thru auction** (trustee sale)
**Chap 17**
160
An arrangement between a borrower and lender in which the **lender agrees to delay foreclosure.**
**Forbearance** -
An arrangement between a borrower and lender in which the **lender agrees to delay foreclosure.**
**HOLDING BACK.....THE PROCESS**
**Chap 17**
161
**An agreement** between a borrower and lender **changing loan terms**.
**Loan Modification -**
**An agreement** between a borrower and lender **changing loan terms**
**Chap 17**
162
What type of properties do these items pertain to?
1. **Owner O\_\_\_\_\_\_ (Not Sold/Leased)** - Licensed Contractors - **NOT required to perform all improvements if property** intended to be owner-occupied, not sold/leased.
2. **_Licensed Contractors - Work Required_** -
* Property offered for **sale/lease**, or **sold/leased within 1 year** of completion or upon certificate of occupancy issued.
* **Price is $1000 or more**.
1. **_No Permit_** - Gov Agency may require a permit
* **Owner to obtain permit retroactively**
* **Structure may be demolished**
**Fix and Flips**
1. **_Owner Occupied (Not Sold/Leased)_** - Licensed Contractors - **NOT required to perform all improvements** if property intended to be owner-occupied, not sold/leased.
2. **_Licensed Contractors - Work Required_** -
* Property offered for **sale/lease**, or **sold/leased within 1 year** of completion or upon certificate of occupancy issued.
* **Price is $1000 or more**.
1. **_No Permit_** - Gov Agency may require a permit
* **Owner to obtain permit retroactively**
* **Structure may be demolished**
**Chap 17**
163
**A claim against property** to secure a debt; **money encumbrance.**
**Lien -**
A claim against property to secure a debt; money encumbrance.
**Chap 18**
164
States the litigation is pending against the property owners.
**Lis Pendens -**
States the litigation is pending against the property owners.
**Chap 17**
165
In a Mortgage Default Process...
After Sheriff's Sale held and Sheriff's Certificate is issued and 6 mos Statutory Right of Redemption has passed, **what is given to convey full title?**
**Sheriff's Deed -**
**_Given to convey full title_, after Sheriff's Sale held and Sheriff's Certificate is issued** and after **6 mos Statutory Right of Redemption has passed**.
**Chap 17**
166
**What does borrower have, prior to Sheriff's Sale** in a mortgage default?
**Equity of Redemption -**
**borrower has this status, prior to Sheriff's Sale** in a a mortgage default.
**Chap 17**
167
A promise to repay the debt. Serves as evidence of debt, **not as collateral**?
**Promissory Note -**
A promise to repay the debt. Serves as evidence of debt, **not as collateral.**
**Chap 17**
168
What is another name for borrower in a Trust Deed. This person conveys legal title to the 3rd party and signs the deed of trust.
**Trustor -**
Another name for borrower. This person conveys legal title to the Trustee (3rd party) and signs the deed of trust.
**Chap 17**
169
3rd party who has power to sell the property at foreclosure, when borrower is in default. Must be instructed by lender.
**Trustee -**
**3rd party who has power to sell the property** at foreclosure, when borrower is in default. Must be **instructed by lender.**
**Chap 17**
170
Another name for the lender in a a deed of trust. Lender instructs trustee (3rd party) to sell at a foreclosure.
**Beneficiary -**
Another name for the lender in a deed of trust. Lender instructs trutee (3rd party) to sell at a foreclosure.
**Chap 17**
171
**N\_\_\_\_ of Def\_\_\_\_ and T\_\_\_\_\_'s Sale**
When beneficiary instructs Trustee to force the sale. **This document is recorded by Trustee. This documents is then sent to trustor (Borrower) and anyone else who has recorded request** (seller and 2nd lien holder)
**Notice of Default and Trustee's Sale -**
When beneficiary instructs Trustee to force the sale. **This document is recorded by Trustee. This documents is then sent to trustor (Borrower) and anyone else who has recorded request** (seller and 2nd lien holder)
**Chap 17**
172
**Trustor (borrower) can cure default** for Trust Deed, by **paying back what is owed plus cost and penalties** - **within 90 days** *_before Trustee's Sale_*. This is called?
**Right of Reinstatement (for Trust Deed Defaults)-**
**Trustor (borrower) can cure default** for Trust Deed, by **paying back what is owed plus cost and penalties - within 90 days** *_before Trustee's Sale._*
**Chap 17**
173
Trust Deed in Default -
**After the "Right of Redemption (90 days)** has taken place. What happens next?
**Trustee Sale -**
**Sale is held** after **the "Right of Redemption (90 days)** has taken place. Then, ***"Trustee's Deed"*** delivered to highest bidder to convey title.
**Chap 17**
174
This document conveys title to highest bidder after Trustees Sale.
**Trustee's Deed -**
This document conveys title to highest bidder after Trustees Sale.
**Chap 17**
175
Land Contract in default. **Seller must give buyer grace period** to reinstate **(30dys - 9 mos), depending on percent of purchase price paid.** Then may complete **F\_\_\_ A\_\_\_\_.**
**Forfeiture Action -**
Land Contract in default. **Seller must give buyer grace period** to reinstate **(30dys - 9 mos), depending on percent of purchase price paid.** Then may complete Forfeiture Action.
**Chap 17**
176
States that the **mortgage/trust deed DOES NOT convey any ownership** to lender **(used in Arizona).**
**Lien Theory -**
States that the **mortgage/trust deed DOES NOT convey any ownership** to lender **(used in Arizona).**
**Chap 17**
177
States legal title is conveyed to lender. (not in AZ)
**Title Theory -**
States legal title is conveyed to lender. (not in AZ)
**Chap 17**
178
**Secures note with collateral (property), document is called?**
1. **_Promissory Note_** - promise to repay debt (amount, rate, pattern of payments - no collateral reference)
2. **M\_\_\_\_\_or** - Borrower / **M\_\_\_\_\_gee** - Lender
**Remember Or Gives and EE receives**
**Mortgages -** secured note with collateral (property)
1. **_Promissory Note_** - promise to repay debt (amount, rate, pattern of payments - no collateral reference)
2. **Mortgagor** - Borrower / **Mortgagee** - Lender
**Remember Or Gives and EE receives - Mortgagor gives money to Mortgagee.**
**Chap 17**
179
Promise to repay debt - with amount, rate, pattern of payments noted - and (no collateral referenced) is called?
1. **_Mortgage_** - Secures note **with collateral**/property
2. **Mortgagor** - Borrower / **Mortgagee** - Lender
**_Promissory Note_** - promise to repay debt - with amount, rate, pattern of payments noted - and (no collateral referenced)
1. **_Mortgage_** - Secures note **with collateral**/property
2. **Mortgagor** - Borrower / **Mortgagee** - Lender
**Chap 17**
180
**Payoff or Satisfaction of Mortgage** - **Lender delivers in 30 days**. This document is called?
**Defeasance** **(Payoff)** or **Satisfaction of Mortgage** -
**Lender delivers in 30 days to borrower as proof of payment in full.**
**Chap 17**
181
**Lawsuit filed**, **and recorded** and the **debt is accelerated**. This document states that **litigation** is pending **against the property owners**. **Used in mortgage process.**
**Lis Pendens** -
**Lawsuit filed**, **and recorded** and the **debt is accelerated**. This document states that **litigation** is pending **against the property owners**. **Used in mortgage process.**
**Chap 17**
182
Mortgage in Default Process -
1. **L\_ P\_\_\_\_\_\_** - Lawsuit filed and recorded. The debt is accelerated. L\_\_ P\_\_\_\_\_ states litigation is pending against property owners.
2. **C\_\_\_\_ Ac\_\_\_\_** - takes place
3. **Sh\_\_\_ S\_\_\_\_** - Highest bidder gets **S\_\_\_\_\_\_ Cert\_\_\_\_\_ of S\_\_\_**
4. **Stat\_\_\_\_\_ R\_\_\_\_ of Red\_\_\_\_\_** - **\_\_\_ months** given to owner
5. **S\_\_\_\_\_'s D\_\_\_\_** - If no Redemption - Sherrif's Certificate of Sale holder gets **full title**.
Mortgage in Default Process -
1. **Lis Pendens** - Lawsuit filed and recorded. The debt is accelerated. Lis Pendens states litigation is pending against property owners.
2. **Court Action** - takes place
3. **Sheriff's Sale** - _Highest bidder_ gets **Sheriffs Certicate of Sale**
4. **Statutory Right of Redemption** - **6 months** given to owner
5. **Sheriff's Deed** - If no Redemption - Sherrif's Certificate of Sale holder gets **full title**.
**Chap 17**
183
In a Mortgage Default **when does court action take place?**
Mortgage Default -
**Court Action** - takes place **after Lis Pendens filed** and before the Sheriff's Sale.
**6 Steps:**
1. **Lis Pendens**
2. **Court Action**
3. **Sheriff's Sale - Sherrif's Cert of Sale (highest bidder)**
4. **Redemption Period**
5. **Sheriffs Deed - Title Conveyed.**
**Chap 17**
184
In a Mortgage Default, when does Sheriff's Sale take place?
**Mortgage Default**
**Sheriff's Sale** - takes place **after Lis Penden's filed, and court action takes place**. Then Sheriff's Sale is conducted, then Statutory Right of Redemption.
**Chap 17**
185
**Mortgage Defaults -**
**At the Sheriff's Sale** what does the **Highest Bidder receive and what happens next?**
Mortgage Defaults **-**
**Sheriff's Certificate of Sale -**
At Sheriff's Sale the Highest Bidder receives "*Sheriff's Cert of Sale*." ***Next,* Statutory Right of Redemption - follows for 6 months.**
**Note to Self:** _Mortgages_ - 6 mos to reinstate after sale / _Trust Deeds_ - 90 days to reinstatte.before sale
**Chap 17**
186
In Mortgage Defaults -
**How does borrower hold title** _before_ the Sheriff's Sale
In Mortgage Defaults **-**
**_Equity of Redemption_ -** Borrower holds this title **before the Sheriff's Sale**
**Chap 17**
187
In Mortgage Default
**After the Sheriff's Certificate of Sale** is given to Highest bidder. **What happens next?**
**Mortgages Defaults -**
**Statutory Right of Redemption** -
After **Sheriff's Sale (Certificate of Sale** given _to highest bidder)_. **The owner is given (6 months) to reinstate.**
**Chap 17**
188
**_Non-Judicial (Trustee's Power of Sale)_**
1. **Tr\_\_\_ Instructed to S\_\_\_ -** Per Benificiary-Lender
2. **Not\_\_ of Def\_\_\_ and Tru\_\_ S\_\_\_** - **recorded** by Trustee (County Recorder Office)
3. **N\_\_\_ to Tr\_\_\_(Borrower):** **_Trustee sends_** Notice of Default/Default Trustee Sale **to Tr\_\_\_\_ and anyone who recorded "Request for Notice of Default.**
4. **R\_\_\_\_ of Rein\_\_\_\_\_\_\_\_** - Trustor/Borrower may cure default pay back-payments (cost/penalties) at **anytime before sale** **(\_\_\_ days)**
5. **Tr\_\_\_\_\_ Sale held** - Title to highest bidder
6. **Tr\_\_\_\_ Deed -** to highest bidder.
**Def\_\_\_\_\_ J\_\_\_\_\_\_\_ prohibited** - 2 1/2 acres or less (SFR/2Units)-
Trust Deed in Default (Non Judicial Foreclosure)
**_Non-Judicial (Trustee's Power of Sale)_**
1. **_Trustee Instructed_** **_to Sell_ -** Per Benificiary-Lender
2. **_Notice of Default and Trustee Sale_** - **recorded** by Trustee (County Recorder Office)
3. **_Notice to Trustor/Borrower**_: _**Trustee sends**_ Notice of Default/Default Trustee Sale _**to trustor and anyone who recorded "Request for Notice of Default._**
4. **_Right of Reinstatement_** - Trustor/Borrower may cure default pay back-payments (cost/penalties) at **anytime before sale** **(90 days)**
5. **_Trustee Sale held_** - Title to highest bidder.
6. **Tr\_\_\_\_ Deed -** to highest bidder.
**Def\_\_\_\_\_ J\_\_\_\_\_\_\_ prohibited** - 2 1/2 acres or less (SFR/2Units)-
**Chap 17**
189
What is 1st step in Trustee's Power of Sale?
Trustee's Power of Sale - 1st Step
1. **_Trustee Instructed_** **_to Sell_ -** Beneficiary-Lender instructs trustee (3rd party) to sell. (Step 1)
**Chap 17**
190
What does the Trustee do **after instructed to proceed with Trustee's Sale?**
## Footnote
**N\_\_\_ of D\_\_\_\_ and Tr\_\_\_\_ Sale is re\_\_\_\_\_\_**
Trutee's Power of Sale (Step 2)
**_Notice of Default and Trustee Sale_** -
**Is recorded by Trustee** with County Recorder Office **(Step #2)**
**Chap 17**
191
In a Trustee Sale process, **what happens after 90 days of Right of Reinstatement period?**
Trustee's Power of Sale - (Step 5)
1. **_Trustee Sale held_** - **After 90 days of Right of Reinstatement period**, **Trustee Deed** - given to highest bidder. (Step 5)
**_Deficiency Judgement prohibited_** - 2 1/2 acres or less (SFR/2Units)
**Chap 17**
192
In a Trustee's Sale process, **what do owners have before the sale and for what time frame?**
Trustee's Power of Sale - (Step 4)
**_Right of Reinstatement_** - Given to Trustor/Borrower, who may cure default by paying back- **balance due plus (cost/penalties) at anytime before sale in 90 days (step 4).**
**After Notice of Default & Trustee Sale sent out....**
**Chap 17**
193
In a Trustee Sale - what is done with Notice of Default and Trustee Sale document?
Trustee's Power of Sale - (Step 3)
**_Notice to Trustor/Borrower_**:
Trustee sends **- Notice of Default/Default Trustee Sale** _to trustor_ **and** _anyone_ who has recorded **"Request for Notice of Default. (step 3)**
**Chap 17**
194
In the Trustee Sale process, **what is given to highest bidder at the Trutee's Sale (at the final step of process)?**
Trustee's Power of Sale - (Step 6)
1. **Trustee Deed** - given **_to highest bidder_** after 90 days redemption period **_at Trustee's Sale_ (step 6)**
**_Deficiency Judgement prohibited_** - 2 1/2 acres or less (SFR/2Units)
**Chap 17**
195
**_Land Contract Default Process (2 options)_**: (Agmt of S\_\_\_, **aka** C\_\_\_\_ for S\_\_\_ of R\_\_ E\_\_\_\_, **aka** L\_\_\_ C\_\_\_, **aka** C\_\_\_\_ for D\_\_\_, **aka** V\_\_\_\_'s L\_\_)
**_Option #2 - Forfeiture Action_**
1. **_Reinstate (Grace Period)_ - 30 days to 9 mos.** Depending on Purchase Price already paid.
* **1- 19%** (20pts) - **\_\_ days - single**
* **20%-29%** (9pts) - **\_\_ days - double**
* **30%-49%** (9pts) - **\_\_\_ days - double**
* **50%-more** (50pts)- **\_\_ mos - max**
2. **_Grace Period Expires_** - Complete Forfeiture Action
**_Option #1 - Judicial Forclosure - Accelertion Clause -_** exercised foreclose as mortgage.
1. **_Equity of Redemption_** - Held by Borrower
2. **_Lawsuit (Lis Pendens)_** - recorded
3. **_Court Action_** - takes place
4. **_Sheriff's Sale_** - Highest Bid (Sheriff's Certificate of Sale)
5. **_Statutory Right of Redemption_** - 6 mos begins
6. **_No Redemption_** - Sheriff's Deed issued
**_Land Contract Default Process (2 options)_**: (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor's Lien)
**_Option #2 - Forfeiture Action_**
1. **_Reinstate (Grace Period)_ - 30 days to 9 mos.** Depending on Purchase Price already paid.
* **1- 19%** (20pts) - **30 days - single**
* **20%-29%** (9pts) - **60 days - double**
* **30%-49%** (9pts) - **120 days - double**
* **50%-more** (50pts)- **9 mos - max**
2. **_Grace Period Expires_** - Complete Forfeiture Action
**_Option #1 - Judicial Forclosure - Accelertion Clause -_** exercised foreclose as mortgage.
1. **_Equity of Redemption_** - Held by Borrower
2. **_Lawsuit (Lis Pendens)_** - recorded
3. **_Court Action_** - takes place
4. **_Sheriff's Sale_** - Highest Bid (Sheriff's Certificate of Sale)
5. **_Statutory Right of Redemption_** - 6 mos begins
6. **_No Redemption_** - Sheriff's Deed issued
**Chap 17**
196
**_Land Contract Default Process (2 options)_**: (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor's Lien)
**_Option #2 - Forfeiture Action_**
1. **_Reinstate (Grace Period)_ - 30 days to 9 mos.** Depending on Purchase Price already paid.
* **1**- 19% paid (20pts) - **\_\_\_ days - single**
2. **_Grace Period Expires_** - Complete Forfeiture Action
**_Land Contract Default Process (2 options)_**: (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor's Lien)
**_Option #2 - Forfeiture Action_**
1. **_Reinstate (Grace Period)_ - 30 days to 9 mos.** Depending on Purchase Price already paid.
* **1**- **19% paid** (20pts) - **30 days - single**
2. **_Grace Period Expires_** - Complete Forfeiture Action
**Chap 17**
197
These options refer to what?
**_Option #2 - Forfeiture Action_**
1. **_Reinstate (Grace Period)_ - 30 days to 9 mos.** Depending on Purchase Price already paid.
* **20%-29%** **Paid** (9pts) - **\_\_ days - double**
2. **_Grace Period Expires_** - Complete Forfeiture Action
**_Land Contract Default Process (2 options)_**: (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor's Lien)
**_Option #2 - Forfeiture Action_**
1. **_Reinstate (Grace Period)_ - 30 days to 9 mos.** Depending on Purchase Price already paid.
* **20%**-**29% Paid** (9pts) - **60 days - double**
2. **_Grace Period Expires_** - Complete Forfeiture Action
**Chap 17**
198
These options refer to what?
**_Option #2 - Forfeiture Action_**
1. **_Reinstate (Grace Period)_ - 30 days to 9 mos.** Depending on Purchase Price already paid.
* **30%-49%** **Paid** (9pts) - **\_\_\_ days - double**
2. **_Grace Period Expires_** - Complete Forfeiture Action
**_Land Contract Default Process (2 options)_**: (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor's Lien)
**_Option #2 - Forfeiture Action_**
1. **_Reinstate (Grace Period)_ - 30 days to 9 mos.** Depending on Purchase Price already paid.
* **30%-49% Paid** (9pts) - **120 days - double**
2. **_Grace Period Expires_** - Complete Forfeiture Action
**Chap 17**
199
These options refer to what?
**_Option #2 - Forfeiture Action_**
1. **_Reinstate (Grace Period)_ - 30 days to 9 mos.** Depending on Purchase Price already paid.
* **50%**-more (50pts)- **\_\_\_ mos - max**
2. **_Grace Period Expires_** - Complete Forfeiture Action
**_Land Contract Default Process (2 options)_**: (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor's Lien)
**_Option #2 - Forfeiture Action_**
1. **_Reinstate (Grace Period)_ - 30 days to 9 mos.** Depending on Purchase Price already paid.
* **50%**-more (50pts)- **9 mos - max**
2. **_Grace Period Expires_** - Complete Forfeiture Action
**Chap 17**
200
In a Trust Deed **Defeasance (Pay-off) document used** for pay-offs received from Trustor?
**_Deed of Reconveyance_ -**
Beneficiary(lender) instructs Trustee to process **in 30 days of payoff to Trustor (Borrower).**
**Chap 17**
201
In Trust Deed - **Defeasance (Pay-off) document** that is used for pay-offs received from Trustor?
**_Deed of Reconveyance_ -**
Beneficiary(lender) instructs Trustee to process **in 30 days of payoff to Trustor (Borrower).**
**Chap 17**
202
With a Trust Deed, the **document used as a Defeasance (Pay-off)** for balance paid in full and received from Trustor is called?
**_Deed of Reconveyance_ -**
Beneficiary (lender) instructs Trustee to process **in 30 days of payoff to Trustor (Borrower).**
**Chap 17**
203
**What does borrower have, prior to Sheriff's Sale** in a mortgage default?
**Equity of Redemption -**
**borrower has this status, prior to Sheriff's Sale** in a a mortgage default.
**Chap 17**
204
**What does borrower have, prior to Sheriff's Sale** in a mortgage default?
**Equity of Redemption -**
**borrower has this status, prior to Sheriff's Sale** in a a mortgage default.
**Chap 17**
205
**What does borrower have, prior to Sheriff's Sale** in a mortgage default?
**Equity of Redemption -**
**borrower has this status, prior to Sheriff's Sale** in a a mortgage default.
**Chap 17**
206
**Who signs Deed of Trust?**
**Trustor Signs Deed of Trust** -
Trustor is the borrower and conveys legal title to the trustee. **Therefore the Trustor is the only one who signd the "Deed of Trust"**.
**Chap 17**
207
**Allows buyer/owner** of subdivision to **used current public report** issued **in past 5 years.**
**Subsequent Owner Exemption -**
**Allows buyer/owner** of subdivision to **used current public report** issued **in past 5 years.**
**Chap 16**
208
Real Estate Code/Article 4
**Commissioner may "De\_\_, Susp\_\_\_\_, Rev\_\_\_\_," public report** for
1. **Incompleteness** or
2. **Inability** to meet all **statutory requirements**.
Real Estate Code/Article 4
**Commissioner may "_Deny, Suspend, Revoke_," public report** for
1. Incompleteness or
2. Inability to meet all Statutory Requirements.
**Chap 16**
209
**Subdivider** must give to buyers a **receipt to sign for Public Report** and **retain receipt for how long**?
(Real Estate Code/Article 4)
**Public Report (Subdivision Disclosure Report) Receipt to Buyer**
1. **Buyer must Sign**
2. **Subdivider** Must keep **receipts for - 5 years**
**Chap 16**
210
If there are **material changes to original report,** what can Commissioner require?
**A\_\_\_\_\_\_ R\_\_\_\_\_\_\_\_ -**
1. Commissioner may require, if there are **Material Changes to Original Report.**
2. **_Buyer_** has **\_\_\_ days to review** it **or cancel**
(Real Estate Code/Article 4)
**Amended Report -**
1. Commissioner may require, if there are **material changes to original report.**
2. **_Buyer_** has **10 days to review** it **or cancel**
**Chap 16**
211
**Exemptions to Public Report**
1. **B\_\_k S\_\_\_/L\_\_se** (**\_\_ or more lots**) to one buyer
2. **Sale/Lease** - **\_\_\_ acres or more**
3. **C\_\_\_\_\_\_ and Ind\_\_\_\_\_\_** **zoned/restricted** parcels - **for Sale/Lease**
4. **Sub\_\_\_\_\_\_ Owner Ex\_\_\_\_\_\_\_\_** - Allows buyer/owner of existing subdivision to use **Cur\_\_\_/Acc\_\_\_\_\_ P\_\_\_\_ Report** **(issued within __ years).**
(Real Estate Code/Article 4)
**Exemptions to Public Report**
1. **Bulk Sale/Lease** (**6 or more lots**) to one buyer
2. **Sale/Lease** - **160 acres or more**
3. **Commercial and Industrial** **zoned/restricted** parcels - **for Sale/Lease**
4. **_Subsequent Owner Exemption_** - Allows buyer/owner of existing subdivision to use **Current/Accurate Public Report** **(issued within 5 years).**
**Chap 16**
212
**Lot Reservation (Requirements)**
1. **Max $\_\_\_\_\_ deposit** - for lot (in escrow)
2. **_Public Report_** - ***Delivered*** ***\_\_ calendar days of issuance***
3. **Lot Reservation Terminated** - In **\_\_ business days** of **buyer's receipt of public report** _unless_ "**purchase contract signed"**
4. **_Lot Reserve Cancel_** - Buyer may cancel **anytime**"Prior to entering **P\_\_\_\_ C\_\_\_\_\_."**
5. **_Signed Purchase Contract_** - **Buyer __ days** to review and cancel **Amended Public Reports**
(Real Estate Code/Article 4)
**"Lot Reservations" (Requirements) -**
1. **_Max $5,000 deposit_** for lot (in escrow)
2. **_Public Report_** - ***Delivered*** ***15 calendar days of issuance***
3. **_Lot Reserve Terminates_** - In **7 business days** of **buyer's receipt of public report** _unless_ **"purchase contract signed"**
4. **_Lot Reserve Cancel_** - Buyer may cancel **anytime**"**Prior to Entering Purchase Contract."**
5. **_Signed Purchase Contract_** - **Buyer 10 days** to review and cancel **Amended Public Reports**
**Chap 16**
213
**If sale** made **prior to final approval of public report** or subdivider fails to provide a public report to purchaser:
1. **Sale is R\_\_\_\_\_\_\_\_** by buyer.
2. Buyer may take **legal action** within **\_\_ years.**
(Real Estate Code/Article 4)
**No Public Report -**
**If sale** made prior to **final approval of public report** or subdivider fails to provide a public report to purchaser
1. **Sale is Recindable** by buyer.
2. Buyer may take **legal action** with in - 3 years.
**Chap 16**
214
**Unimproved Lands**
1. **_Lands Inspected_** - Buyer- **\_\_ calendar days** unilateral right to **rescind**
2. **_Uninspected Land_** - Buyer - **\_\_ mos to inspect** or may **rescind at time of inspection**
(Real Estate Code/Article 4)
**Unimproved Lands**
1. **_Inspected_** - Buyer - **7 calendar days** unilateral right to **rescind**
2. **_Uninspected Land_** - Buyer- **6 mos to inspect** or may **rescind** **at time of inspection**
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**Unimproved Lands - Inspected**.
**Buyer Unilateral Right Recind - has** **\_\_ calendar days** **for "inspected" unimproved lands**
(Real Estate Code/Article 4)
**Unimproved Lands (Inspected) -**
_**Buyer** **Unilateral Right Recind**_ - **In** **7 calendar days for "inspected" unimproved lands**
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**Unimproved Lands - Uninspected** - **Buyer has __ mos** to inspect or may rescind.
(Real Estate Code/Article 4)
**Unimproved Lands (Uninspected) -**
Buyer has **6 mos to inspect** or may rescind at inspection
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**Property divided** into **6 or more lots** for the purpose of **sale/lease** , with lots **36-159 acres each** are called?
**_6 or more lots_** -
1. **36 acres or more** **each**
2. **But less than 160 acres** **each**
(Real Estate Code/Article 4) -
**Unsubdivided Lands**
**Property divided** into **6 or more lots** for the purpose of **sale/lease** , with lots **36-159 acres each**
1. **36 acres or more** **each**
2. **But less than 160 acres** **each**
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In reference to what concerning lots?
1. **Orchestrating a scheme** or acting in concert to **circumvent subdivision laws is illegal.**
2. Creation of **five or fewer parcels** from one parcel does not create a subdivision.
(Real Estate Code/Article 4)
**Illegal Lot Splits**
1. **Orchestrating a scheme** or acting in concert to **circumvent subdivision laws is illegal.**
2. Creation of **five or fewer parcels** from one parcel does not create a subdivision.
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**Recorded with Deed** for any **improved or unimproved property** that is in the **(unicorporated area of a county - not a municipality)** and **not** in a **recorded subdivision**
(Real Estate Code/Article 4)
**Affidavit of Disclosure**
**Recorded with Deed** for any **improved or unimproved property** that is in the **(unicorporated area of a county - not a municipality)** and **not** in a **recorded subdivision**
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Pertaining to **improved/unimprove property**
**Affidavit of Disclosure**
**Recorded with Deed** - Pertaining to **improved/unimproved property** this **requires disclosure of** information regarding
1. **W\_\_\_\_ Av\_\_\_\_\_\_\_**,
2. **S\_\_\_\_ or S\_\_\_\_ T\_\_\_\_\_**,
3. **Leg\_\_\_ Ac\_\_\_\_**,
4. **Eas\_\_\_\_\_**, etc
(Real Estate Code/Article 4)
**Affidavit of Disclosure -**
**Recorded with Deed** - Pertaining to **improved/unimproved property** this **requires disclosure of** information regarding
1. **_Water Availability_**,
2. **_Sewer or Septic Tanks_**,
3. **_Legal Access_**,
4. **_Easements_**, etc
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**Affidavit of Disclosure** - Pertaining to **improved /unimproved properties** in unincorporated areas and **un-recorded** subdivisions.
Disclosures requires info regarding w\_\_\_ a\_\_\_\_, s\_\_\_\_ or s\_\_\_ tanks, leg\_\_ access, e\_\_\_\_\_\_, etc. (No Appraisal required)
1. **Disclosure** - **Delivered** **to Buyer** at least - **\_\_ days prior to close.**
2. **Buyer Can Rescind** - In **\_\_ days** the transaction from **Receipt of Aff\_\_\_\_\_ of Dis\_\_\_\_\_\_.**
**Affidavit of Disclosure** **-** Pertaining to **improved/unimproved** **properties** in -unincorporated areas and unrecordered subdivisions)
Disclosures requires info regarding **_water availability_**, **_sewer or septic tanks_**, **_legal access,_** **_easements,_** etc. **(No Appraisal required)**
1. **Disclosure** - **Delivered to Buyer** at least - **7 days prior to close.**
2. **Buyer Can Rescind** - **In 5 days** the transaction from **Receipt of Affidavit of Disclosure.**
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**Affidavit of Disclosure -** Pertaining to properties improved or unimproved ii unincorporated area of county.
Seller must **record A\_\_\_\_\_ of D\_\_\_\_\_\_** when **D\_\_\_\_** is recorded.
(Real Estate Code/Article 4) -
**Affidavit of Disclosure** - Pertaining to properties improved or unimproved ii unincorporated area of county.
Seller must **record _Affidavit of Disclosure_ when _Deed_ is recorded**
**Chap 16**
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is a **share or interest in real property** (usually in a **resort, condominium or hotel**) with a **right to use** **the facility** **for a certain period of time.**
(Real Estate Code/Article 9) -
**Time Share -**
**a share/interest in real property** (usually in a **resort condominium or hotel**) with a **right to use** the facility for a **certain period of time.**
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**Timeshare Reports**
**\_\_ or more timeshares** sold**,** a "**timeshare report" is required.**
(Real Estate Code/Article 9)
**Timeshare Reports**
**12 or more timeshares** sold, a **"timeshare report" is required.**
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**Timeshare Report (Requirements)**
1. **N\_\_\_ and Ad\_\_\_\_** of Owner and Developer
2. "**Comp\_\_\_\_\_ St\_\_\_\_\_\_**" of the **timeshare program.**
3. **Leg\_\_ Desc\_\_\_\_\_\_** and location of land
4. "**St\_\_\_\_\_ of Assur\_\_\_\_\_\_**" for the **Installation of All Im\_\_\_\_\_\_\_\_\_**, including offsite **Im\_\_\_\_\_\_\_\_\_.**
5. **"Prov\_\_\_\_\_"** for the **Exchange of Occ\_\_\_\_\_ Rights** with owners of other timeshare projects.
(Real Estate Code/Article 9)
**Timeshare Reports (Requirements) -**
1. **_Name/Address_** of Owner and Developer
2. **_Comprehensive Statement_** - of the **timeshare program.**
3. **_Legal Description_** and **location** of land
4. _"**Statement of Assurances**"_ - for the **Installation of Improvements**, including **offsite** **Improvements.**
5. **"Provisions"** for the _**Exchange of Occupancy** **Rights**_ with owners of other timeshare projects.
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**Rescinding Timeshare Purchases**
1. **_Recind Time Share Purchase Contract_** - **In** **\_\_ days of Executing the Contract**, recind without cause.
2. **Sale Prior to Pub\_\_ R\_\_\_\_\_** - The **S\_\_\_** is **V\_\_\_\_ by the Purchaser**
3. **L\_\_\_ Ac\_\_\_\_\_** - To Void, the **Action must be brought within - __ years of the sale.**
(Real Estate Code/Article 9)
**Rescinding Timeshare Purchases**
1. **_Recind Time Share Purchase Contract_** - In **7 dys of Executing the Contract**, recind without cause
2. **_Sale Prior to Public Report_** -The Sale is **Voidable by the Purchaser**
3. **_Legal Action_** - To Void, **the Action must be brought within -** **3 years of the sale**.
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(Arizona Commissioner's Rules/Article 3 - Licensing)
**General Licensing Requirements -**
1. Requires **Licensee Dis\_\_\_\_\_\_ Q\_\_\_\_\_\_\_\_**, **F\_\_\_\_\_\_\_** and **S\_\_\_\_ S\_\_\_\_\_\_ Number** of applicants
2. **Broker license** - **issued after A\_\_\_\_ L\_\_\_\_\_ C\_\_\_\_\_\_\_.**
3. Only use **L\_\_\_\_\_ N\_\_\_\_ on License**
4. **B\_\_\_\_\_\_ and R\_\_\_\_\_\_ Addresses** - must file
5. **Notify Commissioner - In __ Days of Any: Mis\_\_\_\_\_\_ or F\_\_\_\_ - Adverse J\_\_\_\_\_\_** in Real Estate suits and **C\_\_\_\_\_\_ of Address**
(Arizona Commissioner's Rules/Article 3 - Licensing)
**General Licensing Requirements -**
1. Requires **_Licensee Disclosure Questionaire**_, _**Fingerprints**_ and _**Social Security Number_** of applicants
2. **_Broker license**_ - _**issued after Agent License Cancelled_**
3. Only use **_Legal Name on License_**
4. **_Business and Residential Addresses_** - must file
5. **_Notify Commissioner - In 10 Days of Any_: Misdemeanor or Felony - Adverse Judgement** in Real Estate suits and **_Change of Address_**
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**License Renewing**
1. **_Upon renewing_** - **Exi\_\_\_ L\_\_\_\_** in effect until expires.
2. **_Renewing Late_** - Specify if **A\_\_\_\_\_** conducted after expiration.
3. **_If Renewal Very Late_** - **P\_\_ P\_\_\_\_\_**, advise if activities after expiration
4. **_Sever Form_** - **Ad\_\_\_\_\_\_\_ S\_\_\_\_\_\_\_\_** by Broker sent to DRE to sever licensee from office.
(Arizona Commissioner's Rules/Article 3 - Licensing)
**License Renewing -**
1. **_Upon renewing_** - **Existing License** in effect until expires.
2. **_Renewing Late_** - Specify if **Activities** conducted after expiration.
3. **_If Renewal Very Late**_ - _**Pay Penalty_**, advise if activities after expiration
4. **_Sever Form_** - **Administrative Severance** by Broker sent to DRE to sever licensee from office.
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**Branch Manager Requirements**
1. **_Agent/Assoc Broker_** - may act as **Br\_\_ Manager**
2. **_Designated Broker_** - may ask **A\_\_\_\_ Br\_\_\_\_\_** to perform designated **B\_\_\_\_ Func\_\_\_\_**.
3. **_Branch Office Onsite_** - no **Sep\_\_\_\_ Li\_\_\_\_ R\_\_\_\_\_\_.**
(Arizona Commissioner's Rules/Article 3 - Licensing)
**Branch Manager Requirements -**
1. **_Agent/Assoc Broker_** - may act as **Branch Manager**
2. **_Designated Broker_** - may ask **Assoc Broker** to perform designated **Broker Functions.**
3. **_Branch Office Onsite_** - no **Separate License Required**
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**Advertising by a Licensee -**
1. Agent may not imply **N\_ A\_\_ is Involved**.
2. **Agent Owns Property - Dis\_\_\_\_ Agent-Owned**
3. **Misl\_\_\_\_ Fa\_\_\_\_ -** Advertising shall not contain**.** Accurate claims only
4. **_Employing Broker Name_ -** at **T\_\_ of W\_\_ Pages and Adv\_\_\_\_\_\_\_.**
5. **_All Advertising_** - **Sup\_\_\_\_\_\_\_ by Designated B\_\_\_\_**.
6. **_Acre_** - must represent _______ square feet
7. **_Sign on Property_** - Owner W\_\_\_\_ C\_\_\_\_\_\_.
(Arizona Commissioner's Rules/Article 5)
**Advertising by a Licensee -**
1. Agent may not imply **No Agent is Involved.**
2. **_Own Property_ - disclosed agent-owned**
3. **_Misleading Facts_ -** Advertising shall not contain**.** Accurate claims only
4. **_Employing Broker Name_ -** at **Top of Web Pages and Advertising.**
5. **_All Advertising_** - **Supervised** by designated broker.
6. **_Acre_** - must represent **43,560** square feet
7. **_Sign on Property_** - Owner **Written Consent.**
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**Promotional Activities**
1. **_Agents shall not_** describe **"Pre\_\_\_\_ Off\_\_\_\_\_"** at **N\_ C\_\_\_ or Red\_\_\_\_ C\_\_\_\_** as **"Award/Prize."**
2. **_Premium Offer_** - states **T\_\_\_, Cost, C\_\_\_\_\_\_, Res\_\_\_\_\_\_ in writing before offeree participates**.
3. **_Interest in Development_** - **may not Soli\_\_, S\_\_\_, or Of\_\_\_** by conducting a **Lot\_\_\_\_, Con\_\_\_, Drawing or Ga\_\_\_ of Ch\_\_\_\_** to influence purchaser.
4. **Sub\_\_\_\_\_\_/T\_\_\_\_\_\_/C\_\_\_\_\_\_\_ Memberships**: **May conduct lottery, contest, drawing, or game of chance.**
(Arizona Commissioner's Rules/Article 5)
**Promotional Activities**
1. **_Agents shall not_** describe **"Premium Offered"** at **No Cost** or **Reduced Cost** as **"Award/Prize."**
2. **_Premium Offer_** - state **Terms, Cost, Conditions, Restrictions** **in writing before offeree participates**.
3. **_Interest in Development_** - **may not Solicit, Sell, or Offer** by conducting a **Lottery, Contest, Drawing or Game of Chance** to influence purchaser.
4. **_Subdividers/Timeshares/Campground Memberships_**: **May conduct lottery, contest, drawing, or game of chance.**
**Note:** In marketing, premiums are promotional items — toys, collectables, souvenirs and household products
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**Compensation Sharing Disclosure**
1. **Real Estate Broker** - in **W\_\_\_\_ Before C\_\_\_\_\_**, name of each Employing Broker representing parties and who will Receive Compensation.
2. **Compensation to Agents/Referral Fees** - to other brokers have **(N\_\_ D\_\_\_\_\_\_ R\_\_\_\_\_\_)**
(Arizona Commissioner's Rules/Article 7 - Compensation)
**Compensation Sharing Disclosure -**
1. **Real Estate Broker** - in **Writing Before Closing**, name of each **Employing Broker** representing parties and who will **Receive Compensation**.
2. **Compensation to Agents/Referral Fees** - to other brokers have **(Not Disclosure Required)**
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**Documents / Conveyance of Documents**
1. **_Executed Docs_** - **Deliver** **S\_\_\_\_ copies to Parties**
2. **_Offers_** -
1. **_List Agmt Terms_** - **Submit all Of\_\_\_** **(Wri\_\_\_ and Ver\_\_\_)**
2. **_Disclose to Offerors (Byr)_** - **Receive Owner P\_\_\_\_\_\_** to disclose all **T\_\_\_ of Additional Of\_\_\_\_**
3. **Prior to Closing - Submit all Offers**
4. **"Cease Offers" (O\_\_\_\_ Wr\_\_\_\_ Con\_\_\_)** - Agent is released from duty to submit all offers **but M\_\_ D\_ V\_\_\_\_\_\_.**
5. **_Broker Retains_** - **C\_\_\_\_, Escrow Rec\_\_\_\_, Cl\_\_\_ Sta\_\_\_\_\_, E\_\_\_\_\_ Ins\_\_\_\_, L\_\_\_ Agmts, Emp\_\_\_\_ A\_\_\_\_\_\_\_, all Dis\_\_\_\_\_\_\_ (Signed and Delivered)**
Arizona Commissioner's Rules/Article 8
**_Documents / Conveyance of Documents_**
1. **_Executed Docs_** - Deliver **Signed** copies to Parties
2. **_Offers_** -
1. _List Agmt_ - **Submit all Offers** **(Written/Verbal)**
2. **_Disclose to Offerors (Byr)_** - **Receive Owner Permission** to disclose all **Terms of Additional Offers**
3. **_Prior to Closing - submit all offers_**
4. **"Cease Offers" (Owner Written Consent)** - Agent is released from duty to submit all offers but **May Do Voluntary.**.
5. **_Broker Retains_** - **Contracts, Escrow Receipts, Closing Statements, Escrow Instructions, List Agmts, Employment Agreements, all Disclosures (Signed and Delivered).**
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**Arizona Commissioner's Rules - Article 11**
**Professional Conduct -Duties of Client - (1 -3 of 6)**
1. **_Fiduciary Duties_** - licensee owes to client **CARLOD (Con\_\_\_\_\_, Acc\_\_\_\_\_, R\_\_\_\_\_ Care, Loy\_\_\_\_, Ob\_\_\_\_\_, Dis\_\_\_\_\_\_)**
2. **_Disclose_** - All **Mat\_\_\_\_ and Adv\_\_\_\_\_ Fa\_\_\_** that Agent Knows in writing which includes:
1. _Any info Seller/Lessor_ **U\_\_\_ to P\_\_\_\_\_**
2. _Any info Buyer/Lessee_ **U\_\_\_\_ to P\_\_\_\_\_\_**
3. **Mat\_\_\_\_ Defects** - Existing in Property
4. **L\_\_\_\_/E\_\_\_\_\_\_\_\_\_\_** May possibly Existing in Property.
3. **Pub\_\_\_/Pri\_\_\_ Air\_\_\_, Mil\_\_\_\_ Tra\_\_\_ Facility**
**Arizona Commissioner's Rules - Article 11**
**Professional Conduct -Duties of Client - (1-3 of 6)**
1. **_Fiduciary Duties_** - licensee owes to client **CARLOD (Confidentiality, Accounting, Reasonable Care, Loyalty, Obedience, Disclosure)**
2. **_Disclose_** - All **Materially/Adverse Facts** that Agent Knows in writing which includes:
1. _Any info Seller/Lessor_ **Unable to Perform**
2. _Any info Buyer/Lessee_ **Unable to Perform**
3. **Material Defects** - Existing in Property
4. **Liens/Encumbrances** May Possibly Existing in Property
3. **_If in Public/Private Airport, Military Training Facility_**
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Arizona Commissioner's Rules - **Article 11 -**
**Professional Conduct Duties to client:**
**Fiduciary Duties owed to client (CARLOD)**
1. **Con\_\_\_\_\_\_,**
2. **Acc\_\_\_\_\_\_\_,**
3. **R\_\_\_\_\_\_ Care,**
4. **Loy\_\_\_,**
5. **Obe\_\_\_\_\_\_\_,**
6. **Dis\_\_\_\_\_\_**
(Arizona Commissioner's Rules/Article 11 - Prof Conduct)
**_Duties to Client (Fiduciary Duties)_** -
1. Confidentiality,
2. Accounting,
3. Reasonable Care,
4. Loyalty,
5. Obedience,
6. Disclosure
**Chap 16**
**Chap 16**
236
(Arizona Commissioner's Rules-Article 11 -
**Prof Conduct Duties to Client**
**Disclosure Includes:**
**All Materially/Adverse Facts that Agent knows in writing which includes:**
1. _Any info seller/lessor_ - **U\_\_\_\_ to P\_\_\_\_\_\_**
2. _Any info buyer/lessee_ - **U\_\_\_\_\_ to P\_\_\_\_\_\_**
3. **Mat\_\_\_\_\_ Def\_\_\_\_** - existing in property
4. **L\_\_\_\_/E\_\_\_\_\_\_\_\_\_** possible existance in property.
(Arizona Commissioner's Rules-Article 11 - Prof Conduct) Duties to client:
**Disclosure includes -**
**All materially/adverse facts that agent knows in writing which includes:**
1. Any info seller/lessor - **Unable to Perform**
2. Any info buyer/lessee - **Unable to Perform**
3. **_Material Defects_** - existing in property
4. **_Liens/Encumbrances_** possible existance in property.
**Chap 16**
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(Arizona Commissioner's Rules/Article 11 -
**Profesional Conduct Duties to Client - Disclose Properties in these Areas**
1. **Pub\_\_\_/Pri\_\_\_\_ Airport,**
2. **Mil\_\_\_\_ Air\_\_\_\_ or Ancillary Mil\_\_\_ Fac\_\_\_\_\_**
3. **Mil\_\_\_\_\_ Tr\_\_\_\_\_ Fac\_\_\_\_**
(Arizona Commissioner's Rules/Article 11 - Prof Conduct)
**Profesional Conduct Duties to Client - Disclose Properties in these Areas** -
1. Public/Private Airport,
2. Military Airport or Ancillary Military Facility
3. Military Training Facility
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(Arizona Commissioner's Rules/Article 11 Professional Conduct - Duties to Client
**_Duties to Client (Prospective Interest or Conflict)_ Written Statement (Disclosure) Necessary for:**
1. _Agent_ - **A\_\_\_\_ as P\_\_\_\_\_**
2. _Seller/Buyer_ - **M\_\_\_\_ of A\_\_\_\_'s Family**
3. _Seller/Buyer_ - **Is Emp\_\_\_\_\_ B\_\_\_\_ or A\_\_\_\_\_**
4. _Agent/Family Member_ - **Fin\_\_\_\_\_ Int\_\_\_\_\_\_**
5. _Licensee Compensation from Buyer and Seller_ - **W\_\_\_\_ C\_\_\_\_\_ from A\_\_ P\_\_\_\_\_**
(Arizona Commissioner's Rules/Article 11 - Prof Conduct)
**_Duties to client (Prospective Interest or Conflict):_** **Written Statement (Disclosure) Necessary for:**
1. _Agent_ - **Acting as Principal**
2. _Seller/Buyer_ - **Member of Agent's Family**
3. _Seller/Buyer_ - **Is Employing Broker or Agent**
4. _Agent/Family Member_ - **Financial Interest**
5. _Licensee Compensation from Buyer and Seller_ - **Written Consent from All Parties**
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**Arizona Commissioner's Rules/Article 11 - Profesional Conduct (Summary) -**
1. **_Disclosure_** - **CARLOD, Air\_\_\_\_, Mil\_\_\_Tra\_\_\_, Con\_\_\_\_ of Int\_\_\_\_** to client
2. **_Compensation_** - **A\_\_\_\_ shall not accept Mon\_\_\_, Reb\_\_\_\_ for any G\_\_\_\_/Ser\_\_\_\_ provided and related to real estate transaction** without persons **W\_\_\_\_\_\_ Ack\_\_\_\_\_\_\_\_ of Com\_\_\_\_\_\_\_\_.**
3. **_Services Outside of Agent's Field_** - Must Use **P\_\_\_\_ Com\_\_\_\_\_ in those S\_\_\_\_\_**, or **Disclose La\_\_ of K\_\_\_\_\_\_\_** and **then client employs the Licensee**
4. **_Agent Obtain and Communicate Information_** - Use **R\_\_\_\_\_\_\_ Care for In\_\_ Mat\_\_\_\_ to Transaction**
5. **_Occupancy_** - Shall Not **Permit T\_\_ Party or B\_\_\_\_ without W\_\_\_\_\_ C\_\_\_\_\_**, **Before Close of Escrow.**
6. **_Occupancy Disclosure_** - Agent shall recommend client to **seek** appropriate **L\_\_\_\_ C\_\_\_\_ of R\_\_\_\_** of **Pre-Possession** or **Post-Possession.**
**Arizona Commissioner's Rules/Article 11 - Profesional Conduct (Summary) -**
1. **_Disclosure_** - **CARLOD, Airports, Military Training, Conflict of Interest** to client
2. **_Compensation_** - **Agent shall not accept Monies, Rebates for any Goods/Services provided** **and related to real estate transaction** without persons **Written Acknowledgment of Compensation.**
3. **_Services Outside of Agent's Field_** - Must Use **Person Competent in Those Services**, or **Disclose Lack of Knowledge** and then client employs the Licensee.
4. **_Agent Obtain and Communicate Information_** - Use **Reasonable Care for Info Material to Transaction**.
5. **_Occupancy_** - Shall Not **Permit Third party or Buyers without Written Consent**, **Before Close of Escrow.**
6. **_Occupancy Disclosure_** - Agent shall recommend client to **Seek** appropriate **Legal Counsel of Risks of Pre-Possession or Post-Possession.**
**Chap 16**
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Arizona Commissioner's Rules/Article 11 - Prof Conduct
**_Property Negotiations_ -** **Shall be conducted through Principal's Broker or Licensed Representative UNLESS:**
1. **FSBO** - **For Sale By Owner**
2. **Prin\_\_\_\_ Waives Requirement in Wr\_\_\_** or
3. **_No Licensed Representative of Broker_** - **Available in __ hours. Get Written Consent to present offer**
(Arizona Commissioner's Rules/Article 11 - Prof Conduct)
**_Property Negotiations_ -** **Shall be conducted through Principal's Broker or Licensed Representative UNLESS -**
1. **FSBO - For Sale By Owner**
2. **Principal Waives Requirement in Writing** or
3. **_No Licensed Representative of Broker_** - **Available in 24 hours. Get Written Consent to present offer**
**Chap 16**
241
AZ Commissioner's Rules/Article 11 - Prof Conduct
**Broker Supervision and Control -**
**Reasonable Super\_\_\_\_ and C\_\_\_\_\_**, and **Enfor\_\_\_** of **Written Pol\_\_\_\_, R\_\_\_\_\_**, **Proc\_\_\_\_\_, and Sy\_\_\_\_** over **Activities of Associate Brokers and Agents.**
(Arizona Commissioner's Rules/Article 11 - Prof Conduct)
**Broker Supervision and Control -**
**Reasonable Supervision and Control**, and Enforcement of **Written Policies, Rules**, **Procedures, and Systems** over **Activities of Associate Brokers and Agents.**
**Chap 16**
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Land which is divided into **6 or more lots**, parcels or **fractional interest created for sale or lease.**
**Subdivision -**
Land which is divided into 6 or more lots, parcels or fractional interest created for sale or lease.
**Chap 16**
243
**Documents Retained by Broker**
1. **_Broker Retains_** - **C\_\_\_\_, Esc\_\_\_\_ Rec\_\_\_\_, Clo\_\_\_ St\_\_\_\_\_, E\_\_\_\_ Ins\_\_\_\_, List A\_\_\_\_, Emp\_\_\_\_ Ag\_\_\_\_\_, all Dis\_\_\_\_\_ (Si\_\_\_ and De\_\_\_\_\_)**
Arizona Commissioner's Rules/Article 8
**Documents Retained by Broker**
1. **_Broker Retains_** - Contracts, Escrow Receipts, Closing Statements, Escrow Instructions, List Agmts, Employment Agreements, all Disclosures (Signed and Delivered).
**Chap 16**
244
**Arizona Commissioner's Rules - Article 11**
**Professional Conduct -Duties of Client - (3 to 6)**
1. **_All Acts_** - **Expedit\_\_\_\_ Comp\_\_\_\_**
2. **_Controversy with Another Agent_** - shall not **Jeo\_\_\_\_, Del\_\_\_ or Inter\_\_\_ with Transaction**
3. **_Prospective Interest/Conflict_** -
1. _Agent_ - **A\_\_\_\_\_ as Pr\_\_\_\_\_\_**
2. _Seller/Buyer_ - **Mem\_\_\_\_ of A\_\_\_\_'s Fam\_\_**
3. _Seller/Buyer_ - **Is Employing B\_\_\_\_ or A\_\_\_\_**
4. _Agent/Family Member_ - **Fin\_\_\_\_\_ Int\_\_\_\_**
5. _Agent Compensation from Buyer and Seller_ - **Has Wr\_\_\_\_\_ C\_\_\_\_\_ of A\_\_ Parties**
Arizona Commissioner's Rules - Article 11
**Professional Conduct -Duties of Client - (3 to 6)**
1. **_All Acts_** - Expenditiously completed
2. **_Controversy with another agent_** - shall not Jeopardize, Delay or Interfere with Transaction
3. **_Prospective Interest/Conflict_** -
1. _Agent_ - **Acting as Principal**
2. _Seller/Buyer_ - **Member of Agent's Family**
3. _Seller/Buyer_ - **Is Employing Broker or Agent**
4. _Agent/Family Member_ - **Financial Interest**
5. _Agent Compensation from Buyer and Seller_ - **Has Written Consent of All Parties**
**Chap 16**
245
**Lot Reservation - Terminate or Cancel**
1. **Lot Reserve Terminates** - In **\_\_ Business Days** of **buyer's receipt of public report** _unless "purchase contract signed"_
2. **_Cancel_** - Buyer may cancel **_anytime_** **"Prior to Entering P\_\_\_\_ C\_\_\_\_\_."**
3. **_Signed Purchase Contract_** - **Buyer __ days** to review and **cancel Amended Public Reports**
(Real Estate Code/Article 4)
**"Lot Reservations" Terminate or Cancel -**
1. **_Lot Reserve Terminates_** - In **_7 Business Days_** of **buyer's receipt of public report** _unless "Purchase Contract Signed"_
2. **_Cancel_** - Buyer may cancel **_anytime_**"**Prior to Entering Purchase Contract."**
3. **_Signed Purchase Contract_** - **Buyer _10 days_ to review** and **cancel Amended Public Reports**
**Chap 16**
246
**Lot Reservation (Requirements)**
1. **Max $\_\_\_\_\_ deposit** - for lot (in escrow)
2. **_Public Report_** - **Delivered** **\_\_ calendar days of issuance**
3. **Lot Reserve Termination** - In **\_\_ business days** of **buyer's receipt of public report** _unless "purchase contract signed"_
(Real Estate Code/Article 4)
**"Lot Reservations" (Requirements) -**
1. **_Max $5,000 deposit_** for lot (in escrow)
2. **_Public Report_** - **Delivered** **15 calendar days of issuance**
3. **_Lot Reserve Terminates_** - In **7 business days** of **buyer's receipt of public report** _unless "Purchase contract Signed"_
**Chap 16**
247
**Lot Reservation & Purchase Contracts**
1. **Lot Reserve Prior to P\_\_\_\_\_ C\_\_\_\_\_ Cancel** - Buyer may cancel **_anytime_**"**Prior to entering P\_\_\_\_ C\_\_\_\_\_."**
2. **Signed P\_\_\_\_\_ C\_\_\_\_\_\_** - **Buyer __ days** to review and cancel **Amended P\_\_\_\_\_ R\_\_\_\_ts**
(Real Estate Code/Article 4)
**"Lot Reservations" and Purchase Contracts**
1. **_Lot Reserve Prior to Purchase Contract - Cancel_** - Buyer may cancel **_anytime_**"prior to entering **Purchase Contract."**
2. **_Signed Purchase Contract_** - **Buyer 10 days** to review and cancel **Amended Public Reports**
**Chap 16**
248
**Arizona Commissioner's Rules/Article 11 - Profesional Conduct (Summary) -**
1. **_Disclosure_** - **CARLOD, Air\_\_\_\_, Mil\_\_\_Tra\_\_\_, Con\_\_\_\_ of Int\_\_\_\_** to client
2. **_Compensation_** - **A\_\_\_\_ shall not accept Mon\_\_\_, Reb\_\_\_\_ for any G\_\_\_\_/Ser\_\_\_\_ provided and related to real estate transaction** without persons **W\_\_\_\_\_\_ Ack\_\_\_\_\_\_\_\_ of Com\_\_\_\_\_\_\_\_.**
3. **_Services Outside of Agent's Field_** - Must Use **P\_\_\_\_ Com\_\_\_\_\_ in those S\_\_\_\_\_**, or **Disclose La\_\_ of K\_\_\_\_\_\_\_** and **then client employs the Licensee**
4. **_Agent Obtain and Communicate Information_** - Use **R\_\_\_\_\_\_\_ Care for In\_\_ Mat\_\_\_\_ to Transaction**
5. **_Occupancy_** - Shall Not **Permit T\_\_ Party or B\_\_\_\_ without W\_\_\_\_\_ C\_\_\_\_\_**, **Before Close of Escrow.**
6. **_Occupancy Disclosure_** - Agent shall recommend client to **seek** appropriate **L\_\_\_\_ C\_\_\_\_ of Risk** of **Pre-Possession** or **Post-Possession.**
**Arizona Commissioner's Rules/Article 11 - Profesional Conduct (Summary) -**
1. **_Disclosure_** - **CARLOD, Airports, Military Training, Conflict of Interest** to client
2. **_Compensation_** - **Agent shall not accept Monies, Rebates for any Goods/Services provided** **and related to real estate transaction** without persons **Written Acknowledgment of Compensation.**
3. **_Services Outside of Agent's Field_** - Must Use **Person Competent in Those Services**, or **Disclose Lack of Knowledge** and then client employs the Licensee.
4. **_Agent Obtain and Communicate Information_** - Use **Reasonable Care for Info Material to Transaction**.
5. **_Occupancy_** - Shall Not **Permit Third party or Buyers without Written Consent**, **Before Close of Escrow.**
6. **_Occupancy Disclosure_** - Agent shall recommend client to **Seek** appropriate **Legal Counsel of Risks of Pre-Possession or Post-Possession.**
**Chap 16**
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**Affidavit of Disclosure** - Pertaining to **improved /unimproved properties** in unincorporated areas and **un-recorded** subdivisions.
1. **Disclosure** - **Delivered** **to Buyer** at least - **\_\_ days prior to close.**
2. **Buyer Can Rescind** - In **\_\_ days** the transaction from **Receipt of Aff\_\_\_\_\_ of Dis\_\_\_\_\_\_.**
**Affidavit of Disclosure** **-** Pertaining to **improved/unimproved** **properties** in -unincorporated areas and unrecordered subdivisions)
1. **Disclosure** - **Delivered to Buyer** at least - **7 days prior to close.**
2. **Buyer Can Rescind** - **In 5 days** the transaction from **Receipt of Affidavit of Disclosure.**
**Chap 16**
250
The purchaser of **Unimproved Land** in AZ Subdivision can void the purchase contract if the **subdivider does NOT provide**:
1. Title Insurance
2. Water Rights
3. Permanent Access
4. Warranty Deed
The purchaser of **Unimproved Land** in AZ Subdivision can void the purchase contract if the subdivider does NOT provide:
1. Title Insurance
2. Water Rights
3. **Permanent Access**
4. Warranty Deed
**Chap 16**
251
Salesperson receives offer to purchase from buyer, **but is unable to contact anyone in listing office for 24 hours**. Salesperson may:
1. Present offer to seller
2. Hold the offer until the listing agency can be contacted
3. Request written permission from the seller to submit the offer
4. Send the offer to lisitng agency by certified mail
Salesperson receives offer to purchase from buyer, **but is unable to contact anyone in listing office for 24 hours**. Salesperson may:
1. Present offer to seller
2. Hold the offer until the listing agency can be contacted
3. **Request written permission from the seller to submit the offer**
4. Send the offer to lisitng agency by certified mail
**Chap 16**
252
Real Estate Commissioner can **deny the issuance of a public report** on a subdivision because the subdivider's inability to:
1. Provide buyers with comparable sales prices
2. Provide paved roads to the property
3. Deliver clear title or equitable interest promised
4. Provide elevations and floor plans
Real Estate Commissioner can **deny the issuance of a public report** on a subdivision because the subdivider's inability to:
1. Provide buyers with comparable sales prices
2. Provide paved roads to the property
3. **Deliver clear title or equitable interest promised**
4. Provide elevations and floor plans
**Chap 16**
253
An AZ real estate **broker is required to perform all** of the following procedures EXCEPT:
1. Obtain the seller's permission to place a sign on the property
2. Keep records for 5 years from the termination of a transaction
3. Maintain trust account
4. Obtain the written consent of all parties when evaluating a property in which the broker has an interest
An AZ real estate **broker is required to perform all** of the following procedures EXCEPT:
1. Obtain the seller's permission to place a sign on the property
2. Keep records for 5 years from the termination of a transaction
3. **Maintain trust account**
4. Obtain the written consent of all parties when evaluating a property in which the broker has an interest
**Chap 16**
254
**Subdivision Requirements** - Must submit Public Report to RE Commissioner with:
1. **Name and A\_\_\_\_\_** - Owner and Developer
2. **Liens and T\_\_\_** **Condition** - to land
3. **Terms and Conditions** - Of Sale
4. **M\_\_ of Subdivision**
5. **Restrictive Cov\_\_\_\_\_**
6. **Perm\_\_\_\_ Access Provisions** - to each parcel
7. **If AMA - Cert of Assured W\_\_\_ S\_\_\_\_** - from ADWR
**Subdivision Requirements -** Must submit Public Report to RE Commissioner with:
1. **Name and Address** - Owner and Developer
2. **Liens and Title Condition** - to land
3. **Terms and Conditions** - Of Sale
4. **Map of Subdivision**
5. **Restrictive Covenants**
6. **Permanent Access Provisions** - to each parcel
7. **If AMA - Cert of Assured Water Supply** - from ADWR
**Chap 16**
255
Someone who **performs real estate service for another**
**Real Estate Broker -**
Someone who **performs real estate service for another**
**Chap 15**
256
**Person** engaged to **represent a real estate broker**
**Real Estate Salesperson -**
**Person** engaged to **represent a real estate broker**
**Chap 15**
257
**AZ Constitution - Article XXVI (Article 26)** -
Gives **licensees Aut\_\_\_ to** **prepare all types** of **Real Estate C\_\_\_\_\_\_**, but only when preparation **incidental to their function as agent** **(N\_ Ch\_\_\_)**
1. **_Statute of Frauds_**: Contracts in **Writing to be Enf\_\_\_\_\_\_.**
2. **_Actual Laws_** (**Articles 1-\_\_, Title 3\_, Chapter \_\_)**
3. **_Commissioner Rules_**: **Not Law** but **they** **have F\_\_\_ and Ef\_\_\_ of Law** on **Licensees**
4. **Sub\_\_\_\_\_ Policy S\_\_\_\_- Cl\_\_\_\_** **ADRE Policies**
5. **_Case Law_**: Legal Cases that **Est\_\_\_\_\_\_** Law
**AZ Constitution - Article XXVI (Article 26)** -
Gives **licensees Authority to** **prepare all types** of **Real Estate Contracts**, but only **when preparation incidental to their function as agent** **(No Charge)**
1. **_Statute of Frauds_**: Contracts in **Writing to be Enforced**
2. **_Actual Laws_** **(Articles 1-10, Title 32, Chapter 20)**
3. **_Commissioner Rules_**: **Not Law** but they **have Force and Effect of Law** on **Licensees**
4. **_Substantive Policy Stmts_**: **Clarify ADRE Policies**
5. **_Case Law_**: Legal Cases that **Establishes Law**
**Chap 15**
258
What is **not law** but **has force and effect of law**?
**Commissioner Rules:**
**Not Law** - **but** has **force/effect** of law
**Chap 15**
259
**Established to clarify ADRE policies** on **Statute and Rules?**
**(SPS) Substantive Policy Statements:**
**Established to clarify ADRE policies** on **Statute and Rules.**
**Chap 15**
260
**Real Estate Commissioner**
1. **Appointed by G\_\_\_\_\_\_**
2. _Qualifications_: **\_\_yrs Admin** and **\_\_ yrs Real Estate**
3. **Cannot** hold **Real Estate License**
**Real Estate Commissioner**
(Real Estate Code/Article 1 - ADRE) -
1. **Appointed by Governer**
2. **Qualifications:** **3 yrs Admin** and **5 yrs Real Estate**
3. **Cannot** hold R**eal Estate License**
**Chap 15**
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(Real Estate Code/Article 1 - ADRE)
**_Real Estate Commissioner's duties (PAMI):_**
1. **Prom\_\_\_\_\_\_:** **Commissioner's** **Rules** (by Public Process)
2. **A\_\_\_\_:** **Bo\_\_s/Records** of **L\_\_\_\_\_**
3. **M\_\_\_\_\_:** **Daily** **Op\_\_\_\_\_** **ADRE Dept (hire/fire)**
4. **In\_\_\_\_\_\_:** **Com\_\_\_\_\_** against licensees
a) Commissioner can **Sub\_\_\_\_** documents
b) May apply to **Sup\_\_\_\_ Court** - Compel Agent Comply with subpoena
(Real Estate Code/Article 1 - ADRE)
**_Real Estate Commissioner's duties (PAMI):_**
1. **_Promulgate_: Commissioner's Rule** (by Public Process)
2. **_Audit:_** **Books/Records** of Licensees
3. **_Manage:_** Daily Operation **ADRE Dept (hire/fire)**
4. **_Investigate:_** **Complaints** against licensees
a) Commissioner can **Subpoena** docs
b) May apply to **Superior Court** - Compel Agent Comply with subpoena
**Chap 15**
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This falls under what?
_**Real Estate Advisory Board (10)** - (Qtrly Meetings/No Money):_
1. **Gov\_\_\_\_ Appointed and holds Q\_\_\_\_ Mtgs**
2. _Real Estate Brokers_ **\_\_ Members**
3. _Subdividers_ **\_\_ Members**
4. _Real Estate Residential_ **\_\_ Members** - in biz **last __ yrs**
5. **_Multi-Family Residential_ 1 Member - In biz last 5 yrs**
6. _Public Members_ **\_\_ Members**
(Real Estate Code/Article 1 - ADRE)
_**Real Estate Advisory Board (10)** - (Qtrly Meetings/No Money):_
1. **Governor Appointed and holds Quarterly Mtgs**
2. _Real Estate Brokers_ 2 Members
3. _Subdividers_ 2 Members
4. _Real Estate Residential_ 2 Members - **in biz last 5 yrs**
5. **_Multi-Family Residentia_**_l_ **_1 Members_ - in biz last 5 yrs**
6. _Public Members_ 3 Members
**Chap 15**
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Gives the state right to license brokers and sales people.
(Real Estate Code/Article 2 - Licensing)
**Police Power -**
Gives the state right to license brokers and sales
**Chap 15**
264
**Real Estate Broker: Qualifications:**
1. **Licensed in AZ - \_yrs - (In past \_yrs)** - or elsewhere
2. **Broker License Course** - **\_\_hrs - (In past 10yrs)**
3. **Pass** - **Sc\_\_\_\_ and S\_\_\_\_ Exam**
**Real Estate Broker: Qualifications:**
(Real Estate Code/Article 2 - Licensing)
1. **Licensed in AZ - 3yrs - (In biz past 5yr)** - or elsewhere
2. **_Broker License Course_** - **90 hrs - (In past 10yrs)**
3. **Pass - School/State Exam**
**Chap 15**
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**Real Estate Broker (Requirements):**
1. **_Definite Place of Business or Change of Location_** - **Notify C\_\_\_\_\_\_\_\_**
2. **_Failure to Notify Commissioner_** - **Will C\_\_\_\_** Broker License/Agent License
3. **_Branch Offices_** **(S\_\_\_\_\_\_ License)** - Managed by Licensed Broker or Agent
4. **_Broker Displays_** - **Broker L\_\_\_\_ and F\_\_\_ Housing S\_\_\_**
**Real Estate Broker (Requirements):**
(Real Estate Code/Article 2 - Licensing)
1. _Definite Place of Business_ **or Change of Location** - **Notify Commissioner**
2. **_Failure to Notify Commissioner_** - **Will Cancel** Broker License/Agent **License**
3. _Branch Offices_ **(Separate License**) - Managed by Licensed Broker or Agent
4. _Broker Displays_ - **Broker License and Fair Housing Sign**
**Chap 15**
266
(Real Estate Code/Article 2 - Licensing)
**If Broker cannot act in 24 hours (Process Is) -**
Broker may **designate L\_\_\_\_\_ or Designated Br\_\_\_\_** - **for \_\_days max**
(Real Estate Code/Article 2 - Licensing)
**If Broker cannot act in 24 hours (Process Is) -**
Broker may **designate Licensee or Designated Broker** - For **30 days max**
**Chap 15**
267
(Real Estate Code/Article 2 - Licensing)
**Real Estate Salesperson -** **Qualifications**
1. **\_\_ yrs old**
2. **_Licensing Course_** - **\_\_ hours (last 10 years)**
3. **Pass - Sch\_\_\_ and St\_\_\_\_ Exam**
4. **_License_** - **Broker He\_\_ and Avail for Rev\_\_\_**
5. _DRE_ - **H\_\_\_ Form/Sever Form**
**Real Estate Salesperson -**
(R eal Estate Code/Article 2 - Licensing)
**Real Estate Salesperson - Qualifications**
1. **18 yrs old**
2. _Licensing Course_ - **90 hours (last 10 years)**
3. **Pass - School/State Exam**
4. _License_ - **Broker Held/Avail for Review**
5. _DRE_ - **Hire Form/Sever Form**
**Chap 15**
268
**Brokers and Salespersons - Can have License Issued To**
1. **Prof\_\_\_\_\_ Ltd L\_\_\_\_\_\_ Company (PLLC)** or
2. **Prof\_\_\_\_\_\_ C\_\_\_\_\_\_ (PC)**
(Real Estate Code/Article 2 - Licensing)
**Brokers and Salespersons - Can have License Issued To**
1. **Professional Ltd Liability Company (PLLC)** or
2. **Professional Corp (PC)**
**Chap 15**
269
(Real Estate Code/Article 2 - Licensing)
**Simultaneously Employ with Another Broker**
1. **Cem\_\_\_\_\_ Broker or**
2. **Mem\_\_\_\_\_\_ Ca\_\_\_ground Broker**
(Real Estate Code/Article 2 - Licensing)
**Simultaneously Employ with Another Broker**
1. Cemetery Broker or
2. Membership Campground Broker
**Chap 15**
270
(Real Estate Code/Article 2 - Licensing)
**Individuals** - **RE License (Not Required) -**
1. **Pe\_\_\_\_ or C\_\_\_\_ Officers (B\_\_\_\_, S\_\_\_, Le\_\_\_\_, R\_\_\_\_\_ or Exchanging** their **Own Property.**
2. **Attorney-\_\_-F\_\_\_** - Isolated Transaction
3. **Attorney at L\_\_** - in **Perf\_\_\_\_\_\_ Duties**
4. **BK Court Referee** - by **C\_\_\_\_ O\_\_\_\_**
5. **Trustee** - selling under **D\_\_\_ of T\_\_\_\_\_**
6. **Go\_\_\_\_\_\_** - in Performance Duties
7. **Natural Person Acts as Property Manager** - **O\_\_ Commercial Property**
8. **Manager - Apts (1 Location** during **W\_\_\_\_\_)**
1. May receive Performance Bonus
2. Bonus cannot exceed 1/2 salary - only **\_x month**
9. **Broker Admin** - **Cl\_\_\_\_, Ac\_\_\_\_, Book\_\_\_\_, Ad\_\_\_\_**
(Real Estate Code/Article 2 - Licensing)
**Individuals** - **RE License (Not Required) -**
1. **Persons or Corp Officers** (**Buying, Selling, Leasing, Renting or Exchanging** their **"Own Property."**
2. **Attorney-in-Fact** - **Isolated** Transaction
3. **Attorney at Law** - in **Performance Duties**
4. **BK Court Referee** - by **Court Order**
5. **Trustee** - selling under **Deed of Trust**
6. **Government** - in Performance Duties
7. **Natural Person** **Acts as Property Manager** - **One** Commercial Property
8. **Manager - Apts** **(1 location during Workday)**
1. May receive Performance Bonus
2. Bonus cannot exceed 1/2 salary - only **1x month**
9. **Broker Admin** - Clerical, Acctg, Bookkeeper, Admin
**Chap 15**
271
**Activation of License** -
1. **_Broker/Agents Licensed_** - **\_\_ year from Ex\_\_\_nation Date** to become **Licensed under Broker**
2. _**License Active** for_ - **\_\_yrs - (from activation month end)**
3. **_Agent_** - **\_\_\_hr Course/\_hrs Contract Writing**
4. **_Broker_** - **\_\_hr Course/Broker M\_\_\_\_\_ Clinics**
(Real Estate Code/Article 2 - Licensing)
**Activation of License** -
1. **_Broker/Agents Licensed_** - **1 year from Examination Date** to become **Licensed under Broker**
2. **_License Active for_** - **2 yrs - (from activation month end)**
3. **_Agent_** - **90hr Course/6hrs Contract Writing**
4. **_Broker_** - **90hr Course/Broker management clinics**
**Chap 15**
272
**Death of Broker**
**Sp\_\_\_\_, Next of K\_\_, Exe\_\_\_\_** - **May be issued __ day Temp Broker License.**
(Real Estate Code/Article 2 - Licensing)
**Death of Broker**
Spouse, Next of Kin, Executor - **90 day Temp Broker License.**
**Chap 15**
273
**Broker (All Monies) Immediately In -**
1. **Neutral** **Es\_\_\_\_ Account; OR**
2. **T\_\_\_\_ Fund - F\_\_\_\_\_ Insured Dep\_\_\_\_\_** **located in Arizona.**
3. **Brokers in Arizona - "_Not Required_" to maintain a T\_\_\_\_\_ A\_\_\_\_\_\_**
(Real Estate Code/Article 3 - Regulation)
**Broker (All Monies) Immediately In -**
1. **Neutral** **Escrow Account; OR**
2. **Trust Fund - Federally Insured Depository located in Arizona**
3. **Brokers in Arizona - "_Not Required_" to maintain a Trust Account**
**Chap 15**
274
**Trust Account Requirements:**
1. **_Deposits_** Must be made by **d\_\_\_\_ sl\_\_**
2. **_Receipts shall_**: **(ID Tran\_\_\_\_\_, D\_\_\_, A\_\_\_\_, N\_\_\_\_\_)**
3. **Broker's Name - N\_\_\_ Not Ap\_\_\_\_ on Receipts**
4. **No Commingling - Cl\_\_\_\_ Funds with Br\_\_\_\_ Funds**
5. **Complete records** in **M\_\_\_ Bra\_\_\_ O\_\_\_\_**
6. **_Per (GAAP)_:** **Desc\_\_\_\_\_ Receipt, Disbur\_\_\_\_ Ledger, and Cl\_\_\_\_ Ledger**
7. **Broker** - **Reconcile C\_\_\_\_ L\_\_\_\_** - **Balance** **M\_\_\_\_\_**
8. _**Remove** **Interest Earned**_ - Every **\_\_ months**
9. **_Not Commingling_**: **If Not in excess $\_\_\_\_\_\_** deposits to keep trust account open.
(Real Estate Code/Article 3 - Regulation)
**Trust Account Requirements:**
1. **_Deposits_** Must be made by **Deposit Slips**
2. **_Receipts shall_**: **(ID Transaction, Date, Amount, Names)**
3. **Broker's Name - Need Not Appear Receipts**
4. **No Commingling - Clent's Funds with Broker's Funds**
5. **Complete records** - in Main Branch Office
6. **_Per (GAAP)_**: **Descriptive Receipt, Disbursement Ledger, and Client Journal Ledger**
7. **Broker** - **Reconcile Client Ledger** and **Balance-** **Monthly**
8. _**Remove** **Interest Earned**_ - Every **12 months**
9. **_Not Commingling_**: **If Not in excess $3000** deposits to keep trust account open.
**Chap 15**
275
**Trust Accounts Receipts shall contain -**
1. ID each Tr\_\_\_\_\_\_,
2. D\_\_\_,
3. A\_\_\_\_\_,
4. N\_\_\_\_\_
5. Brokers Name - N\_\_ Req\_\_\_\_
(Real Estate Code/Article 3 - Regulation)
**Trust Accounts Receipts shall contain -**
1. ID each transaction,
2. Date,
3. Amount,
4. Names
5. Brokers Name - Not Required
**Chap 15**
276
**Trust Accounts (GAAP requires) -**
1. **Des\_\_\_\_\_ Receipt**
2. **Disb\_\_\_\_\_\_ J\_\_\_\_\_**
3. **Cl\_\_\_ L\_\_\_\_\_**
(Real Estate Code/Article 3 - Regulation)
**Trust Accounts (GAAP requires) -**
1. Descriptive Receipt
2. Disbursement Journal
3. Client Ledger
**Chap 15**
277
**In Trust Accounts - Broker reconciles "Client Ledgers" how often?**
(Real Estate Code/Article 3 - Regulation)
## Footnote
**Trust Accounts - Broker Reconcile "Client Ledgers"**
**Monthly**
**Chap 15**
278
In **Trust Account** how often must broker **remove** **interest earned** from **client ledger** balance?
(Real Estate Code/Article 3 - Regulation)
**Trust Account** **Client Ledger** (**Remove Interest Earned)** -
**Every 12 months**
**Chap 15**
279
**Broker Records -**
1. **_Broker Records_** From Closing or Termination - **\_yrs**
2. **_Earnest Money_** **(C\_\_, Ch\_\_\_, Prom\_\_\_\_ Note)** **Must state in purchase contract.**
3. **_Broker Transaction Folders_** - **Chro\_\_\_\_\_ Log or other systematic manner**
**_Sales Transaction Folders include_**:
1. **_Monies_ - Confirmation** **H\_\_\_ Properly**
2. **_Copies_**: **S\_\_\_ Co\_\_\_\_, Es\_\_\_\_ Receipts, Cl\_\_\_ St\_\_\_\_, Escrow Ins\_\_\_\_, List Ag\_\_\_\_, Em\_\_\_\_ Ag\_\_\_\_\_**
**_All Contracts (Except Res Lease Agmt) must_:**
1. **_Broker Review_** - Within **\_\_ business days**.
2. **Contract Still V\_\_\_** even if Broker fails to review.
**_Offers Rejected_**
1. **_Rejected Offer_** (Copy/Orig) must retain for - **\_yr**
2. **_Binding Offer (Rejected)_** must be kept - **\_\_yrs**
**Broker Records -** (Real Estate Code/Article 3 - Regulation) -
1. **_Broker Records_** From closing or termination - **5yrs**
2. **_Earnest Money_** **(Cash,Check,Promissory Note) Must state in purchase contract.**
3. **_Broker Transaction Folders_** - **Chronological Log or other systematic manner**
**_Sales Transaction Folders include_**:
1. **_Monies_ -** Confirmation **Handled Properly**
2. **_Copies_**: **Sales Contracts, Escrow Receipts, Closing Statements, Escrow Instructions, List Agreement, Employment Agreement**
**_All Contracts (Except Res Lease Agmt) must_:**
1. _Broker Review_ - Within **10 business days**
2. _Contrac Still Valid_ - Even if Broker fails to review.
**_Offers Rejected_**
1. **_Rejected Offer_** (Copy/Orig) must retain for - **1 yr**
2. **_Binding Offer (Rejected)_** must be kept - **5 yrs**
**Chap 15**
280
**Broker to Keep Records - Sales Transaction Folder (Requirements) -**
1. **Sales** C\_\_\_\_\_,
2. **Escrow** Ins\_\_\_\_ and R\_\_\_\_\_,
3. **Cl\_\_\_\_\_ Statments**,
4. **L\_\_\_** Agreement,
5. **Em\_\_\_\_\_** Agreements
(Real Estate Code/Article 3 - Regulation)
**Broker to Keep Records - Sales Transaction Folder (Requirements) -**
1. **Sales** Contracts,
2. **Escrow** Instructions and Receipts,
3. **Closing** Statements,
4. **List** Agreement,
5. **Employment** Agreements
**Chap 15**
281
**Except for residential lease agreements**, all contracts must be reviewed within **\_\_\_days** by broker
(Real Estate Code/Article 3 - Regulation)
**Broker Contract Review (Required)**
**_All Contracts (Except Res Lease)_ - 10 days.**
**Chap 15**
282
**Rejected Purchase Offer** (Orig/Copy) retained by broker how long?
**Rejected Purchase Offer (Orig/Copy) Retained -**
1 year
**Chap 15**
283
**Binding Contract - Rejected Offer** must be held for?
(Real Estate Code/Article 3 - Regulation)
**Binding Contract Retained (Rejected Offer)** -
5 years
**Chap 15**
284
**Contract for hiring broker** to **_buy_ or _sell_ real estate for compensation** is called**?**
Ex: Listing and Buyer Broker Agreements.
(Real Estate Code/Article 3 - Regulation)
**Employment Agreements -**
**Contract or hiring broker** to **_buy**_ or _**sell_** real estate for **compensation** is called?
Ex: Listing and Buyer Broker Agreements.
**Chap 15**
285
**Employment Agreements (Requirements) -**
1. **Be written in Unam\_\_\_\_\_\_** (one interpretation) **language**
2. **Mat\_\_\_\_ Fa\_\_\_** - set forth all
3. **Dur\_\_\_\_\_ -** **Inception / Ex\_\_\_\_\_ dates**
4. **Signed** - by **A\_ P\_\_\_\_**
(Real Estate Code/Article 3 - Regulation)
**Employment Agreements (Requirements) -**
1. **Be written in unambiguous** (one interpretation) **language**
2. **Material Facts** - set forth all
3. **Duration:** Inception / Expiration dates
4. **Signed** - by all parties
**Unambigous** - not open to more than one interpretation
**Chap 15**
286
**_Actions by Agents to Collect Compensation_**
1. **In Arizona C\_\_\_\_** - Action used to **"Collect Comp\_\_\_\_\_\_,"** but agent must prove they were licensed.
2. **Commissioner** **s\_\_\_ not** **entertain complaints** regarding civil disputes for **"Collecting C\_\_\_\_\_\_\_."**
(Real Estate Code/Article 3 - Regulation) .
**_Actions by Agents to Collect Compensation_**
1. **_In Arizona Civil Courts Action_** - To **"Collect Compensation,"** but agent must prove they were licensed.
2. _Commissioner_ **- _shall not_** **entertain complaints** for "**Collecting Compensation**."
**Chap 15**
287
**Denial, Suspension, or Revocation of licenses**
1. **Statute** - __ reasons license can be **D\_\_\_\_\_.**
2. **If Disciplinary Action** - Agent May used **an A\_\_\_\_\_**.
3. **Commissioner may issue** **C\_\_ and D\_\_\_ Or\_\_\_** to someone found **violating any "Act, Practice or Transaction"** _required by_ **Statute of Commissioner's Rules.**
(Real Estate Code/Article 3 - Regulation)
**Denial, Suspension, or Revocation of licenses**
1. **_Statute**_ - 30 reasons license can be _**denied_**.
2. **_If Disciplinary Action_** - Agent **may use an _Attorney_**
3. **_Commissioner**_"_**Cease and Desist Order_**" to someone found **violating any "Act, Practice or Transaction"** _required by_ S**tatute of Commissioner's Rules.**
**Chap 15**
288
This is issued **by Commissioner** if someone is found **violating** any "**Act, Practice or Transaction**," required by statue of Commissioner's rules?
(Real Estate Code/Article 3 - Regulation) -
**Cease and Desist Order**
This is issued **by Commissioner** if someone is found **violating** any "**Act, Practice or Transaction,**" required by statue of Commissioner's rules
**Chap 15**
289
**MAY NOT perform real estate services** unless they enter into a **written cooperation agreement with a AZ broker** who will take liability for their real estate services.
(Real Estate Code/Article 3 - Regulation) -
**Out-of State Brokers -**
MAY NOT perform real estate services unless they enter into a **written cooperation agreement** with a **AZ broker who will take liability** for their real estate services.
**Chap 15**
290
**Real Estate Brokers (Compensation)**
1. Can Real Estate Brokers **receive compensation from anyone?**
**Real Estate Brokers Pay:**
1. **Their Own A\_\_\_\_ and Ass\_\_\_\_ B\_\_\_\_\_**
2. **Other Li\_\_\_ Designated Br\_\_\_\_\_**
(Real Estate Code/Article 3 - Regulation)
**Real Estate Brokers (Compensation)**
1. **Yes** - Can receive compensation from anyone
**Real Estate Brokers Pay:**
1. Their **own agents** and **associated brokers**
2. **Other licensed designated brokers**
**Chap 15**
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Can real estate agents or associate brokers pay anyone one?
(Real Estate Code/Article 3 - Regulation)
**Real Estate Agents / Associate Brokers (Pay) -**
NO ONE!!!
**Chap 15**
292
**Restrictions on Compensation**
**Escrow Companies (Disburse Commissions) by:**
**Only by Br\_\_\_\_'s Instructions** may commission be disbursed to Agents and Associate Brokers directly.
(Real Estate Code/Article 3 - Regulation) - **Restrictions on Compensation**
**Escrow Companies (Disburse Commissions) by:**
**Only by Broker's Instructions** may commission be disbursed to Agents and Associate Brokers directly.
**Chap 15**
293
Can an unlicensed person receive a commission?
(Real Estate Code/Article 3 - Regulation)
**Unlicensed Person Commission -**
CANNOT RECIEVE A COMMISSION!!!!!
**Chap 15**
294
An unlicensed person acting as a licensee is guilty of what?
(Real Estate Code/Article 3 - Regulation)
**Unlicensed Person (Act as Licensee) -**
GUILTY OF FELONY!!!
**Chap 15**
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**Unlicensed Assistants (Requirements) -**
1. **Licensed Broker** - **May Em\_\_\_ Unlicensed Assts**
2. **Duties that Require License** - **May Not be P\_\_\_\_\_**
3. **On Sale of Property** - **M\_\_ N\_\_** be compensated
4. **Sub\_\_\_\_\_\_ Policy Statement (SPS)** - Regulates Activities of Unlicensed Assts
(Real Estate Code/Article 3 - Regulation)
**Unlicensed Assistants (Requirements) -**
1. **Licensed Broker** - **May Employ** Unlicensed Asst
2. **Duties (Require License)** - May Not be Perform
3. **On Sale of Property** - **MAY NOT** be compensated
4. **Substantive Policy Statement (SPS)** - Regulates Activities of Unlicensed Asst
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**Real Estate Recovery Fund:**
Protect **Parties** harmed due to **R\_\_\_\_** on an agent where agent:
1. **_Acts (Requiring License)_** - Performed with N\_ Li\_\_\_\_
2. **Fr\_\_\_ or Misr\_\_\_\_\_\_\_ (Committed)** - while acting as a principal in the purchase or sale of real estate.
(Real Estate Code/Article 5)
**Real Estate Recovery Fund:**
Protect parties harmed due to reliance on an agent where agent:
1. **_Acts (Requiring License)_** - Performed with No License
2. **_Fraud/Misrepresentation (Committed)_** - while acting as a principal in the purchase or sale of real estate.
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**Real Estate Recovery Fund** **(Agent Lawsuit Requirements) -**
1. **Lawsuits filed** - within **\_ yrs**
2. **Commissioner** must be **notified** - within **\_\_days of filing lawsuit**
(Real Estate Code/Article 5)
**Real Estate Recovery Fund** **(Agent Lawsuit Requirements) -**
1. **Lawsuits filed** - within **5 yrs**
2. **Commissioner** must be **notified** - within **45 days of filing lawsuit**
**Chap 15**
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**Real Estate Recovery Fund (Payouts):**
1. **_Recovery Fund Payment_** - **By "C\_\_ Or\_\_,"**
2. **_Pymts (Only After)_** - **"C\_\_\_ J\_\_\_\_ Uncollected" against agent**
3. **_Per Action Cause_** - **$\_\_,000**
4. **_Per Agent_** - **$\_\_,000**
5. **_License Terminated_** - Until **F\_\_\_ P\_\_\_ B\_\_\_**
(Real Estate Code/Article 5)
**Real Estate Recovery Fund (Payouts):**
1. **_Recovery Fund Payment_** - By "court order,"
2. **_Pymts (Only After)_** - "Civil Judgement Uncollected " against agent
3. **_Per Action Cause_** - **$30,000**
4. **_Per Agent_ - $90,000**
5. **_License Terminated_** - Until **Fund Paid Back.**
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**Real Estate Recovery Fund (Facts):**
1. **Per Cause of Action** - **$\_\_,000 max**
2. **Per Agent** - **$\_\_,000 max**
3. **Lawsuit Filing (Timeline)** - **\_\_ years**
4. **Commissioner Notified Lawsuit By** - **\_\_ days**
5. **Until Funds Paid Back - Lic\_\_\_ T\_\_\_\_**
(Real Estate Code/Article 5)
**Real Estate Recovery Fund (Facts):**
1. **Per Cause of Action** - $30,000 max
2. **Per Agent** - $90,000 max
3. **Lawsuit Filing (Timeline)** - 5 years
4. **Commissioner Notified Lawsuit By** - 45 days
5. **Until Funds Paid Back** - License Terminated
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**Real Estate Recovery Fund (Licenses):**
1. **License Automatically Terminated** - upon **Pay\_\_ of Fu\_\_\_s.**
2. **Licenses Reinstated** - after **F\_\_\_ P\_\_ B\_\_ with interest.**
3. **Licensee Claim against Recovery Funds.**- **C\_\_\_\_ Be Made**
(Real Estate Code/Article 5)
**Real Estate Recovery Fund (Licenses):**
1. **Licenses Automatically Terminated** - upon payout of Funds.
2. **Licenses Reinstated** - after Funds Paid Back with Interest
3. **Licensee Claim against Recovery Funds.**- **CANNOT BE MADE**
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**Real Estate Recovery Fund** **(Below $600,000 on June 30th):**
**When Originating/Renewing License,** **if Funds Dip Below $600K on June 30th, fees are:**
1. **Broker pays $\_\_\_**
2. **Salesperson pays $\_\_**
(Real Estate Code/Article 5)
**Real Estate Recovery Fund** **(Below $600,000 on June 30th):**
**When Originating/Renewing License, if Funds Dip Below $600K on June 30th, fees are:**
1. **Broker pays $20**
2. **Salesperson pays $10**
**Chap 15**
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Someone who **requires no real estate license**, **holds a specific power of attorney** and
## Footnote
**Acting in a "Isolated Transaction" is called?**
**Attorney in Fact -**
Someone who **requires no real estate license**, **holds a specific Power of Attorney** and acting in a **"Isolated Transaction"**
**Chap 15**
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**Group of licensees, headed by a lead agent**, that works for a brokerage company. They market themselves but **must include broker's company name in all marketing.**
**Real Estate Team -**
**Group of licensees, headed by a lead agent**, that works for a brokerage company. They market themselves but **must include broker's company name in all marketing.**
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**Activation of License** -
1. **_Broker/Agents Licensed_** - **\_\_year from date of Ex\_\_\_\_** to become licensed under broker
2. **_License Active for_** - **\_\_yrs - (from activation month end)**
(Real Estate Code/Article 2 - Licensing)
**Activation of License** -
1. _Broker/Agents Licensed_ - **1 year from date of Examination** to become licensed under broker
2. _License Active for_ - **2 yrs - (from activation month end)**
**Chap 15**
305
**Activation and Renewal of License** **(School Req'd)**
1. _Agent_ - **\_\_\_hr Course/\_hrs Contract Writing**
2. _Broker_ - **\_\_hr Course/Broker M\_\_\_\_\_ Clinics**
3. _Ass Broker/Agent_ - **\_\_ hrs Cont Ed - Every __ yrs**
4. _Designated/Ass Broker (Delegated Auth) and Self Employed_ - **\_\_ hrs - Cont Ed - plus __ mgmt clinics** - **Every \_\_yrs**
(Real Estate Code/Article 2 - Licensing)
**Activation and Renewal of License** **(School Req'd)** -
1. _Agent_ - **90hr Course/6hrs Contract Writing**
2. _Broker_ - **90hr Course/Broker management clinics**
3. _Ass Broker/Agent_ - **24 hrs Cont Ed - Every 2 yrs**
4. _Designated/Ass Broker (Delegated Auth) and Self Employed_ - **30 hrs - Cont Ed - plus 3 mgmt clinics** - Every 2 yrs
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**Activation of License** **(School Required)**
1. _Agent_ - **\_\_\_hr Course/\_hrs Contract Writing**
2. _Broker_ - **\_\_hr Course/Broker M\_\_\_\_\_ Clinics**
(Real Estate Code/Article 2 - Licensing)
**Activation of License** **(School Required)** -
1. _Agent_ - **90hr Course/6hrs Contract Writing**
2. _Broker_ - **90hr Course/Broker management clinics**
**Chap 15**
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**Activation of License** -
1. **_Broker/Agents Licensed_** - **\_\_year from Ex\_\_\_\_ Date** to become **Licensed under Broker**
2. **_License Active for_** - **\_\_yrs - (from activation month end)**
(Real Estate Code/Article 2 - Licensing)
**Activation of License** -
1. **_Broker/Agents Licensed_** - **1 year from Examination** Date to become **Licensed under Broker**
2. **_License Active for_** - **2 yrs - (from activation month end)**
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**Trust Account Records and Accounting**
1. **Complete records** in **M\_\_\_ Bra\_\_\_ O\_\_\_\_**
2. **_Per (GAAP)_:** **Desc\_\_\_\_ Receipt, Disb\_\_\_\_\_ Ledger, and Cl\_\_\_\_ Ledger**
3. **Broker** - **Reconcile C\_\_\_\_ L\_\_\_\_** - **Balance** **M\_\_\_\_\_**
4. _**Remove** **Interest Earned**_ - Every **\_\_ months**
(Real Estate Code/Article 3 - Regulation)
**Trust Account Records and Accounting**
1. **Complete records** - in Main Branch Office
2. **_Per (GAAP)_**: **Descriptive Receipt, Disbursement Ledger, and Client Journal Ledger**
3. **Broker** - **Reconcile Client Ledger** and **Balance-** **Monthly**
4. _**Remove** **Interest Earned**_ - Every **12 months**
**Chap 15**
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**Trust Account Deposits and Receipts**
1. **_Deposits_** Must be made **by D\_\_\_\_ Sl\_\_**
2. **_Receipts shall_**: **(ID Tran\_\_\_\_\_, D\_\_\_, A\_\_\_\_, N\_\_\_\_\_)**
3. **Broker's Name - Need Not Ap\_\_\_ on Receipts**
(Real Estate Code/Article 3 - Regulation)
**Trust Account Deposits and Receipts**
1. **_Deposits_** Must be made **by Deposit Slips**
2. **_Receipts shall_**: **(ID Transaction, Date, Amount, Names)**
3. **Broker's Name - Need Not Appear Receipts**
**Chap 15**
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**Trust Account Commingling**
1. **No Commingling - Cl\_\_\_\_ Funds with Br\_\_\_\_ Funds**
2. **_Not Commingling_**: **If Not in Excess $\_\_\_\_\_\_** deposits to keep trust account open.
(Real Estate Code/Article 3 - Regulation)
**Trust Account Commingling**
1. **No Commingling - Clent's Funds with Broker's Funds**
2. **_Not Commingling_**: **If Not in Excess $3000** deposits to keep trust account open.
**Chap 15**
311
**Real Estate Recovery Fund (Payouts):**
1. **_Recovery Fund Payment_** - **By "C\_\_ Or\_\_,"**
2. **_Pymts (Only After)_** - **"Civ\_\_ J\_\_\_\_ Uncollected" against agent**
3. **_Per Action Cause_** - **$\_\_,000**
4. **_Per Agent_** - **$\_\_,000**
5. **_License Terminated_** - Until **F\_\_\_ P\_\_\_ B\_\_\_**
(Real Estate Code/Article 5)
**Real Estate Recovery Fund (Payouts):**
1. **_Recovery Fund Payment_** - By "**Court Order**,"
2. **_Pymts (Only After)_** - "**Civil Judgement Uncollected**" against agent
3. **_Per Action Cause_** - **$30,000**
4. **_Per Agent_ - $90,000**
5. **_License Terminated_** - Until **Fund Paid Back.**
**Chap 15**
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**Real Estate Recovery Fund (Facts):**
1. **Per Cause of Action** - **$\_\_,000 max**
2. **Per Agent** - **$\_\_,000 max**
3. **Lawsuit Filing (Timeline)** - **\_\_ years**
4. **Commissioner Notified Lawsuit By** - **\_\_ days**
5. **Until Funds Paid Back - Lic\_\_\_ T\_\_\_\_**
(Real Estate Code/Article 5)
**Real Estate Recovery Fund (Facts):**
1. **Per Cause of Action** - $30,000 max
2. **Per Agent** - $90,000 max
3. **Lawsuit Filing (Timeline)** - 5 years
4. **Commissioner Notified Lawsuit By** - 45 days
5. **Until Funds Paid Back** - License Terminated
**Chap 15**
313
**Broker Sign At Offices**
Must have a sign at the "e\_\_\_\_\_\_\_" to the **Broker's O\_\_\_\_.** If the broker **C\_\_\_\_\_ Lo\_\_\_\_** the sign must be **R\_\_\_\_\_** immediately
**Broker Sign At Offices**
Must have a **sign at the "entrance"** to the **Broker's Offices**. If the broker **Changes Locations** the sign must be **Removed** immediately
**Chap 15**
314
**Renewal of Broker Licenses**
1. **_Grace Period_** - **\_\_ months** after Expiration
2. **_Ass Broker/Agent_** - __ hrs Cont Ed - Every **\_\_ yrs**
3. **_Designated/Ass Broker (Deligated Auth) and Self Employed_** - **\_\_ hrs - Cont Ed** - plus **\_\_ broker mgmt clinics - Every \_\_yrs**
**Renewal of Broker Licenses**
1. **_Grace Period_** - **12 months** after **Expiration**
2. **_Ass Broker/Agent_** - **24 hrs Cont Ed - Every 2 yrs**
3. **_Designated/Ass Broker (Deligated Auth) and Self Employed_** - **30 hrs - Cont Ed** - plus **3 broker mgmt clinics - Every \_\_yrs**
**Chap 15**
315
**Denial, Suspension, or Revocation of licenses**
1. **Statute** - __ reasons License can be **D\_\_\_\_\_.**
2. **Disciplinary Action** - Agent May used **an A\_\_\_\_\_**.
3. **Commissioner may issue** **C\_\_ and D\_\_\_ Or\_\_\_** to someone found **Vio\_\_\_\_\_ any "A\_\_, Pr\_\_\_\_ or T\_\_\_\_\_\_\_\_"** _required by_ **Statute of Commissioner's rules.**
(Real Estate Code/Article 3 - Regulation)
**Denial, Suspension, or Revocation of licenses**
1. **_Statute_** - **30 reasons License** can be **_denied_**.
2. **_Disciplinary Action_** - Agent **may use an _Attorney_**
3. **_Commissioner**_"_**Cease and Desist Order_**" to someone found **violating any "Act, Practice or Transaction"** _required_ by **Statute of Commissioner's rules.**
**Chap 15**
316
**Renewal License** **(Cont Ed Required)**
1. _Ass Broker/Agent_ - **\_\_ hrs Cont Ed - Every __ yrs**
2. _Designated/Ass Broker (Delegated Auth) and Self Employed_ - **\_\_ hrs - Cont Ed - plus __ mgmt clinics** - **Every \_\_yrs**
(Real Estate Code/Article 2 - Licensing)
**Renewal License** **(Cont Ed Required)** -
1. _Ass Broker/Agent_ - **24 hrs Cont Ed - Every 2 yrs**
2. _Designated/Ass Broker (Delegated Auth) and Self Employed_ - **30 hrs - Cont Ed - plus 3 mgmt clinics** - **Every 2 yrs**
**Chap 15**
317
**AZ Constitution - Article XXVI (Article 26)** -
Gives **licensees "Aut\_\_\_" to** **prepare all types** of **Real Estate** **C\_\_\_\_\_\_**, but only when preparation **incidental to their function as agent** **(N\_ Ch\_\_\_)**
1. **_Statute of Frauds_**: Contracts in **Writing to be Enf\_\_\_\_\_\_.**
2. **_Actual Laws_** (**Articles 1-\_\_, Title 3\_, Chapter \_\_)**
3. **_Commissioner Rules_**: **Not Law** but **they** **have F\_\_\_ and Ef\_\_\_ of Law** on **Licensees**
4. **Sub\_\_\_\_\_ Policy S\_\_\_\_-** Clarify **ADRE Policies**
5. **_Case Law_**: Legal Cases that **Est\_\_\_\_\_\_** Law
**AZ Constitution - Article XXVI (Article 26)** -
Gives **licensees "*Authority"* to** **prepare all types** of Real Estate **Contracts**, but only **when preparation incidental to their function as agent** **(No Charge)**
1. **_Statute of Frauds_**: Contracts in **Writing to Enforce**
2. **_Actual Laws_** **(Articles 1-10, Title 32, Chapter 20)**
3. **_Commissioner Rules_**: **Not Law** but they **have Force and Effect of Law** on **Licensees**
4. **_Substantive Policy Stmts_**: Clarify ADRE Policies
5. **_Case Law_**: Legal Cases that **Establishes Law**
**Chap 15**
318
**AZ Constitution - Article \_\_\_\_\_** -
Gives **licensees Authority to** **prepare all types** of real estate **Contracts**, but only **when preparation incidental to their function as agent** **(No Charge)**
1. **_Statute of Frauds_**: Contracts in writing
2. **_Actual Laws_** **(Articles 1-10, Title 32, Chapter 20)**
**AZ Constitution - Article XXVI (Article 26)** -
Gives **licensees Authority to** **prepare all types** of real estate **Contracts**, but only **when preparation incidental to their function as agent** **(No Charge)**
1. **_Statute of Frauds_**: Contracts in writing
2. **_Actual Laws_** **(Articles 1-10, Title 32, Chapter 20)**
**Chap 15**
319
**AZ Constitution - Article \_\_\_\_**
Gives **licensees Authority to** **prepare all types** of real estate **Contracts**, but only **when preparation incidental to their function as agent** **(No Charge)**
1. **_Commissioner Rules_**: **Not Law** but they **have Force and Effect of Law** on **Licensees**
2. **_Substantive Policy Stmts_**: Clarify ADRE Policies
3. **_Case Law_**: Legal Cases that **Establishes Law**
**AZ Constitution - Article XXVI (Article 26)** -
Gives **licensees Authority to** **prepare all types** of real estate **Contracts**, but only **when preparation incidental to their function as agent** **(No Charge)**
1. **_Commissioner Rules_**: **Not Law** but they **have Force and Effect of Law** on **Licensees**
2. **_Substantive Policy Stmts_**: Clarify ADRE Policies
3. **_Case Law_**: Legal Cases that **Establishes Law**
**Chap 15**
320
**(SPS) Subst\_\_\_\_\_\_ P\_\_\_\_ Statements**
**Established to clarify ADRE policies** on **Statute and Rules?**
**(SPS) Substantive Policy Statements:**
**Established to clarify ADRE policies** on **Statute and Rules.**
**Chap 15**
321
(Real Estate Code/Article 2 - Licensing)
**Real Estate B\_\_\_\_\_ Qualifications:**
1. **Licensed in AZ - 3yrs expertise - (In biz past 5yr)** - or elsewhere
2. **_Broker License Course_** - **90 hrs - (In past \_\_\_yrs)**
3. **Pass - School/State Exam**
(Real Estate Code/Article 2 - Licensing)
**Real Estate Broker Qualifications:**
1. **Licensed in AZ - 3yrs expertise - (In biz past 5yr)** - or elsewhere
2. **_Broker License Course_** - **90 hrs - (In past 10yrs)**
3. **Pass - School/State Exam**
**Chap 15**
322
**Real Estate Broker: Qualifications:**
1. **Licensed in AZ - \_yrs - (In past \_yrs)** - or elsewhere
2. **Broker License Course** - **\_\_hrs - (In past 10yrs)**
3. **Pass** - **Sc\_\_\_\_ and S\_\_\_\_ Exam**
**Real Estate Broker: Qualifications:**
(Real Estate Code/Article 2 - Licensing)
1. **Licensed in AZ - 3yrs - (In biz past 5yr)** - or elsewhere
2. **_Broker License Course_** - **90 hrs - (In past 10yrs)**
3. **Pass - School/State Exam**
**Chap 15**
323
**Income** **remaining** **after** the **Operating Expenses** **(deducted from) Effective Gross Income.**
**Net Operating Income -**
**Income** **remaining** **after the Operating Expenses** **(deducted from) Effective Gross Income.**
**Chap 14**
324
**Detailed accounting** prepared **by escrow**, shows:
1. Cashed received
2. All charges debit/credit
**Closing Statement**
**Detailed accounting** prepared **by escrow** shows:
1. Cashed received
2. All charges debit/credit
**Chap 14**
325
Proportional division or distribution of funds (30 days used)
**Prorations** -
Proportional division or distribution of funds (by 30 dys used)
**Chap 14**
326
**Owner pays in Arrears - Debit or Credit?**
1. **_Real Estate Taxes (Arrears)_** - Seller ___ Buyer \_\_\_\_
2. **_Interest on Loans (Arrears)_** - Seller ___ Buyer \_\_\_\_
3. **_Water Bills (Arrears)_** - Seller ____ Buyer \_\_\_\_
**Arrears - Means overdue payment**
**Owner pays in Arrears: (Debit Seller)**
**Seller Debit / Buyer Credit**
1. **_Real Estate Taxes (Arrears)_** - **Seller Debit / Buyer Credit**
2. **_Interest on Loans (Arrears)_** - **Seller Debit / Buyer Credit**
3. **_Water Bills (Arrears)_** - **Seller Debit / Buyer Credit**
**Arrears - Means overdue payment**
**Chap 14**
327
**Owner pays in Advance**
1. **_Pre-paid Taxes_** - Seller ____ / Buyer \_\_\_\_\_
2. **_Insurance Premiums (Advance)_** - Seller ____ / Buyer \_\_\_\_
3. **_HOA (Advance)_** - Seller ______ / Buyer \_\_\_\_\_
4. **_Propane (Advance)_** - Seller ______ / Buyer \_\_\_\_\_\_
**Owners pays in Advance: (Seller Credit)**
1. **_Pre-paid Taxes (Advance)_** - **Seller Credit** / Buyer Debit
2. **_Insurance Premiums (Advance)_** - **Seller Credit** / Buyer Debit
3. **_HOA (Advance)_** - **Seller Credit** / Buyer Debit
4. **_Propane (Advance)_** - **Seller Credit** / Buyer Debit
**Chap 14**
328
**_Rental Properties:_**
1. **_Prorated Rent_** - Seller ____ / Buyer \_\_\_\_\_
2. **_Security Deposits_** - Seller _____ / Buyer \_\_\_\_\_
**Rental Properties:**
1. **_Prorated Rent_** - **(Seller** **Debit** / Buyer Credit)
2. **_Security Deposit_** - **(Seller Debit** /Buyer Credit)
**Chap 14**
329
Closing Cost: credit/debit to who (soley)?
1. **Loan Origination Fee** - **Buyer \_\_\_\_\_\_**
2. **ALTA Title Insurance** - **Buyer \_\_\_\_\_**
3. **Owner Policy** - **Seller \_\_\_\_\_**
4. **Commission - Seller \_\_\_\_\_\_**
5. **Escrow Fee** - **Seller \_\_\_\_\_/ Buyer \_\_\_\_\_**
**Closing Cost (debit/credit):**
1. **Loan Origination** - Buyer Debit
2. **ALTA Title Insurance** - Buyer Debit
3. **Owner Policy** - Seller Debit
4. **Commissions -** Seller Debit
5. **Escrow Fee (Seller/Buyer Debits)**
**Chap 14**
330
**All Closing Cost (Debit/Credit)**
1. **Sales Price** - Seller _____ Buyer \_\_\_\_\_
2. **\*Earnest Money** - Buyer \_\_\_\_\_
3. **\*New Loan** - Buyer \_\_\_\_\_
4. **Slr Carryback** - Seller ____ Buyer \_\_\_\_\_
5. **Rent Collected** - Seller _____ Buyer \_\_\_\_
6. **Security Deposits** - Seller _____ Buyer \_\_\_\_\_
7. **Taxes (Arrears)** - Seller ____ Buyer \_\_\_\_\_
8. **Water (Arrears)** - Seller _____ Buyer \_\_\_\_\_
9. **\*\*Commission** - Seller \_\_\_\_\_
10. **\*\*Owner Title** - Seller \_\_\_\_\_
11. **\*\*ALTA** - Buyer \_\_\_\_\_
12. **\*\*Loan Orig Fee** - Buyer \_\_\_\_\_
13. **\*\*Impounds** - Buyer \_\_\_\_\_\_
14. **Fuel Reserves** - Seller ___ Buyer \_\_\_\_\_
15. **Prepaid Tax** - Seller _____ Buyer \_\_\_\_
16. **Escrow Fees** - Seller _____ Buyer \_\_\_\_
**All Closing Cost (Debit/Credit)**
1. **Sales Price: (Credit Seller**/Debit Buyer)
2. **\*Earnest Money: (Credit Buyer)**
3. **\*New Loan: (Credit Buyer)**
4. **Seller Carryback**: (**Debit Seller**/Credit Buyer)
5. **Rent Prorated**: (**Debit-Seller**/Credit Buyer)
6. **Security Deposit:** (**Debit Seller**/Credit Buyer)
7. **Taxes (Arrears)**: **(Debit Seller**/Credit Buyer)
8. **Water (Arrears)** (**Debit Seller**/Credit Buyer)
9. **\*\*Commission:** (**Debit Seller**)
10. **\*\*Owner Title:** (**Debit Seller**)
11. **\*\*ALTA:** (**Debit Buyer**)
12. **\*\*Loan Orig Fee** - **(Debit Buyer)**
13. **\*\*Impounds:** (**Debit Buyer**)
14. **Fuel Reserves:** (**Credit** **Seller/Debit Buyer)**
15. **Prepaid Tax (Credit Seller/Debit Buyer)**
16. **Escrow Fees: (Debit Seller / Debit Buyer)**
331
**Projected rent** if property is **100% occupied** is called?
* Contract Rent + Mrk Rent (Vacancies)
**Gross Scheduled Income (Annual):**
**Projected rent** if property is **100% occupied.**
**Contract Rent + Mkt Rent (Vacancies)**
**Chap 14**
332
Units not rented are called?
**Vacancies -**
Units not rented
**Chap 14**
333
**Rent** which was **owed by a tenant** **but not collected** is?
**Credit Losses -**
**Rent** which was **owed by a tenant** but **not collected**
**Chap 14**
334
**Actual Income** received **after** **deducting Vacancies** and **Credit Losses** from the **Gross Scheduled Income**
* **Gross Schedule Income**
* **- Vacancies**
* **- _Credit losses_**
* =
**Effective Gross Income** -
**Actual Income** received **after** **deducting Vacancies** and **Credit Losses** from the **Gross Scheduled Income**
* Gross Schedule Income
* - Vacancies
* - _Credit losses_
* **= Effective Gross Income**
**Chap 14**
335
**Income Property - Operating Expenses - Not Mortgage (PI) or Depreciation:**
1. **Pr\_\_\_ Mgmt F\_\_\_**
2. **R\_\_\_\_**
3. **Main\_\_\_\_\_**
4. **Ut\_\_\_\_\_\_**
5. **T\_\_\_ and In\_\_\_\_\_\_**
6. **Ad\_\_\_\_\_\_\_**
**Income Property - Operating Expenses - Not Mortgage (PI) or Depreciation):**
1. Propery Mgmt Fees
2. Repairs
3. Maintenance
4. Utilities
5. Taxes and Insurance
6. Advertising
**Chap 14**
336
The **principal and interest payments** on the loan.
**Debt Service -**
The **principal and interest payments** on the loan.
**Chap 14**
337
**Amount remaining** after **paying Operating Expenses and Debt Service** and **_before Income Taxes_**. Formula:
* **Gross Schedule Income**
* **_- Vacancy and Credit Losses_**
* = Effective Gross Income
* **_Effective Gross Income - Operating Expenses_**
* = Net Operating Income (NOI)
* **Net Operating Income - Debt Service (PI)**
* = What? (Before Income Taxes)
**Cash Flow (Before Income Taxes)** -
Amount remaining **after paying Operating Expenses and Debt Service** and **_before Income Taxes_**
* **Gross Schedule Income (Proj Rents 100%)**
* **- _Vacancy (@ Market) and Credit Losses_**
* = Effective Gross Income
* **_Effective Gross Income - Operating Expenses_**
* = Net Operating Income (NOI)
* **_Net Operating Income - Debt Service (PI)_**
* **=** **Cash Flow (Before Income Taxes)**
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**Income from** **salaries, wages, _commissions_**, and **_interest_**.
**Ordinary** **Income** -
**Income** from **salaries, wages, _commissions,_ and _interest_.**
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**Income** **realized** from the **sale of** an **asset** **as a profit.**
1. **Short Term** - Asset - L\_\_\_ than _ year
2. **Long Term** - Asset - M\_\_\_ than _ year
**Capital Gain Income** -
**Income realized** from the **sale** of an **asset as a profit.**
1. **Short Term** - Asset - 1 year or less
2. **Long Term** - Asset - more than 1 year
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**_Income_** **"_taxed_**" from an **entity like LLC** **at _level of individual_** (not at level of entity).
**Pass-through Income** -
**_Income_** "**_taxed"_** from an **entity like LLC** **at _level of individual_** (not at level of entity).
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**_Tax Deductions_** - for **SFR Own Occupied/2nd Homes**.
1. **_Real Property Taxes/Other Taxes_** - Upto to **$\_\_\_\_\_\_\_ max deduction**
2. **_Interest on Loans_** - **Upto $\_\_\_\_\_\_\_** for **Purchase and Improvements**
3. **_Home Equity loan_** **_(Interest)_ - Is N\_\_ D\_\_\_\_\_\_.**
**Tax Deductions = Property Taxes and Loan Interest**
**_Tax Deductions_ - for SFR Own Occupied/2nd Homes -**
1. **_Real Property Taxes/Other Taxes_ - Upto $10,000 max deduction**
2. **_Interest on Loans_** - **Upto $750,000** for **Purchase and Improvements**
3. **_Home Equity loan (Interest)_** - **Is Not Deductible.**
**Tax Deductions = Property Taxes and Loan Interest**
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**Capital Gain Excluded Amts -**
**Personal _Residence Sale_ - _Capital Gains Excluded_ from Taxes**
1. Single - $\_\_\_\_\_ gain excluded
2. Married - $\_\_\_\_\_ gain excluded
3. **_Must be Owner Occupied_** - **\_\_yrs/In past \_\_yrs.**
**Capital Gain (Excluded Amts) -**
**Personal _Residence Sale_ - _Capital Gains Excluded_ from Taxes:**
1. **Single - $250,000** gain excluded
2. **Married $500,000** gain excluded
3. **Must be Owner Occupied - 2 yrs/In past 5yrs.**
**Chap 14**
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**FIRPTA Foreign Investment In Real Property Tax Act**
1. Federal Law which **Non-R\_\_\_\_\_ Al\_\_\_ must pay US Income T\_\_ G\_\_\_** from the **S\_\_\_** of **US Real Property.**
2. **_Escrow holds_** **\_\_% of sales price.**
3. **_Buyer Could Be Liable_ - for** **S\_\_\_'s T\_\_, if not withheld.**
**FIRPTA Foreign Investment In Real Property Tax Act**
1. Federal Law which **Non-Residential Aliens** **must pay US Income Tax Gain** from the **Sale** of **US Real Property.**
2. **_Escrow holds_** **15% of sales price.**
3. **_Buyer Could Be Liable_ - for** **Seller's Tax, if not withheld.**
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**_Investment_ Property _Tax Deductions_ -**
1. **O\_\_\_\_\_\_ Ex\_\_\_\_\_\_\_**
2. **Int\_\_\_\_ on Lo\_\_\_\_**
3. **_Cost Recovery (Depreciation):_**
* **L\_\_\_/Per\_\_\_\_ SFR** - **No Dep\_\_\_\_\_**
* **_Residential (Income) Property_** - **\_\_\_ Yrs**
* **_Non-Residential Property_** - **\_\_\_ Yrs**
1. **Straight Line Depreciation:** **S\_\_\_\_ Amt of "Depreciation" every year**
**_Investment_ Property _Tax Deductions_ -**
1. **Operating Expenses**
2. **Interest on Loans**
3. **_Cost Recovery (Depreciation):_**
* **_Land/Personal SFR_** - No depreciation
* **_Residential Income Property_** - **27.5 Yrs** -
* **_Non-Residential Property_** - **39 Yrs**
1. **_Straight Line Depreciation:_** **Same amount of "Depreciation" every year**
**Chap 14**
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Allows "**tax gain**" to be **deferred in future years.**
**1031 Exchanges:**
Allows **tax gain** to be **deferred in future years.**
**Chap 14**
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**Properties** **held for "Income or Investment" in an exchange?**
**Like Kind** -
**Properties** held for "**Income or Investment"** in an exchange.
**Chap 14**
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**One property is** **traded** **"Directly for Another" property.**
All Exchanges - tax on gain is deferred
**Simultaneous Exchange** -
**One property is traded**"**Directly for Another"** property.
All Exchanges - tax on gain is deferred
**Chap 14**
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**"New property Acquired"** within **specific time** frames.
All Exchanges - tax on gain is deferred
**Delayed Exchange -**
**"New property** **Acquired"** within **specific time** frames.
All Exchanges - tax on gain is deferred
**Chap 14**
349
**"Unlike kind property"** received in an exchange.
All Exchanges - tax on gain is deferred
**Boot -**
**"Unlike kind property**" received in an exchange
All Exchanges - tax on gain is deferred
**Chap 14**
350
**1031 Exchanges - Allows "tax gain" to be deferred into future.**
1. **Like Kind** - **In\_\_\_\_ and Inv\_\_\_\_\_\_ Properties.**
2. **Simultaneous Exchange** - **One Property "T\_\_\_\_ Dir\_\_\_\_ for** **A\_\_\_\_\_"** Property
3. **Delayed Exchange** - **New Pro\_\_\_\_** **Ac\_\_\_\_** within **specific time** frames.
4. **_Boot_** - **Un\_\_\_\_ K\_\_\_ Pr\_\_\_\_\_** received in an exchange.
**1031 Exchanges** - **Allows "tax gain" to be deferred into future.**
1. **_Like Kind_** - **Income/Investment Properties.**
2. **_Simultaneous Exchange_** - One property **"Traded Directly for Another"** property
3. **_Delayed Exchange_** - **"New Property** **Acquired"** within **specific time** frames.
4. **_Boot_** - **"Unlike Kind Property"** received in an exchange.
**Chap 14**
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**When new financing used** by buyer, **RESPA** **requires** use of this **document, which "details the terms of the loan"made to buyer.**
**TRID Closing Disclosure -**
**When new financing used** by buyer, **RESPA requires** use of this **document, which "details the term of the loan," made to buyer.**
**Chap 14**
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A **reduction in the value of an asset** **with the passage of time,** due in particular to wear and tear.
**_Note:_** **Land/Personal Residence "C\_\_ N\_\_\_" be reduced in value.**
**Cost Recovery (Depreciation) -**
A **reduction in the value of an asset** **with the passage of time,** due in particular to wear and tear.
**_Note:_** **Land/Personal Residence "CAN NOT" be reduced in value.**
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**_Income & Commerical Props_ - Depreciation -Cost Recovery Periods**
1. **Res Income Property** - **\_\_\_ yrs**
2. **Non-Residential Property** - **\_\_\_ yrs**
3. **Land/Personal SFR - __ yrs**
**_Income & Commercial Props_ - Depreciation - Cost Recovery Periods**
1. **Res Income Property** - **_27.5 yrs_**
2. **Non-Residential Property** - **_39 yrs_**
3. **Land/Personal SFR - 0 yrs - No Depreciation**
**Chap 14**
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**Same amount recovery deductions _on Investments_ every year** is called?
**Straight Line Depreciation -**
**Same amount** of **recovery deductions** **_on Investments_** **every year**
**Chap 14**
355
Closing Cost: Credit/Debit to one side only?
1. Loan Origination Fee - **Buyer \_\_\_\_\_\_**
2. ALTA Title Insurance - **Buyer \_\_\_\_\_**
3. Owner Policy - **Seller \_\_\_\_\_**
4. Escrow Fee - **Seller \_\_\_\_\_/ Buyer \_\_\_\_\_**
**Closing Cost Credit/Debit to one side only?**
1. **Loan Origination** (Buyer Debit)
2. **ALTA** (Buyer Debit)
3. **Owner Policy** (Seller Debit)
4. **Escrow Fee (Seller/Buyer Debits)**
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**Closing Cost - Soley - Seller Debits**
1. **\*\*Com\_\_\_\_\_**- Seller Debit
2. **\*\*O\_\_\_\_ T\_\_\_ P\_\_\_\_** - Seller Debit
**All Closing Cost (Debit/Credit)**
1. **\*\*Commission: Debit Seller**
2. **\*\*Owner Title Policy**: **Debit Seller**
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**"Solely Credited" to Buyer and not shown on seller's side**
1. **E\_\_\_\_ Money** - **Buyer Credit**
2. **N\_\_\_ L\_\_\_** - **Buyer Credit**
**"Solely Credited" to Buyer and not shown on seller's side**
1. **\*Earnest Money: Buyer Credit**
2. **\*New Loan: Buyer Credit**
358
**All Closing Cost as - Seller Debit and Buyer Credit**
1. **Seller C\_\_\_b\_\_\_\_**: (**Seller Debit** / Buyer Credit)
2. **R\_\_\_** **C\_\_\_\_\_**: (**Seller Debit** / Buyer Credit)
3. **Sec\_\_\_\_ Dep\_\_\_\_:** (**Seller Debit** / Buyer Credit)
4. **T\_\_\_\_ (Arrears)**: (**Seller Debit** / Buyer Credit)
5. **W\_\_\_\_ (Arrears)**: (**Seller Debit** / Buyer Credit)
**Seller Carryback** - aka Purchase Money Loan. Seller becomes the Lender; Buyer the borrower. Used as loan to borrower for downpayment.
**All Closing Cost as - Seller Debit and Buyer Credit**
1. **Seller Carryback**: (**Seller Debit** / Buyer Credit)
2. **Rent** **Collected**: (**Seller Debit** / Buyer Credit)
3. **Security Deposit:** (**Seller Debit** / Buyer Credit)
4. **Taxes (Arrears)**: (**Seller Debit** / Buyer Credit)
5. **Water (Arrears)**: (**Seller Debit** / Buyer Credit)
**Seller Carryback** - aka Purchase Money Loan. Seller becomes the Lender; Buyer the borrower. Used as loan to borrower for downpayment.
**Chap 14**
359
**Same amount recovery deductions** on Investments **every year** is called?
**Straight Line Depreciation -**
**Same amount of recovery deductions on** investments **every year**
**Chap 14**
360
**Federal Law** **which Non-Residential Aliens** **must pay**"_US Income Tax Gain_" from the **Sale of US Real Property. Escrow holds** **15% of sales price.** Buyer Could Be Liable for Seller's Tax, if not withheld.
**FIRPTA Foreign Investment In Real Property Tax Act**
**Federal Law** **which** **Non-Residential Aliens** **must pay**"_US Income Tax Gain_" from the **Sale of US Real Property**. **Escrow holds** **15% of sales price.** Buyer Could Be Liable for Seller's Tax, if not withheld.
**Chap 14**
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FIRPTA stands for
## Footnote
**For\_\_\_\_ Inv\_\_\_\_\_ In Real Property T\_\_ A\_\_**
**FIRPTA**
Foreign Investment In Real Property Tax Act
**Chap 14**
362
**1031 Exchanges - Allows "tax gain" to be deferred into future.**
1. **Like Kind** - **In\_\_\_\_ and Inv\_\_\_\_\_\_ Properties.**
2. **Simultaneous Exchange** - **One Property "T\_\_\_\_ Dir\_\_\_\_ for** **A\_\_\_\_\_"** Property
3. **Delayed Exchange** - **New Pro\_\_\_\_** **Ac\_\_\_\_** within **specific time** frames.
4. **_Boot_** - **Un\_\_\_\_ K\_\_\_ Pr\_\_\_\_\_** received in an exchange.
**1031 Exchanges** - **Allows "tax gain" to be deferred into future.**
1. **_Like Kind_** - **Income/Investment Properties.**
2. **_Simultaneous Exchange_** - One property **"Traded Directly for Another"** property
3. **_Delayed Exchange_** - **"New Property** **Acquired"** within **specific time** frames.
4. **_Boot_** - **"Unlike Kind Property"** received in an exchange.
**Chap 14**
363
**"Unlike kind property"** received in an exchange.
All Exchanges - tax on gain is deferred
**Boot -**
**"Unlike kind property**" received in an exchange
All Exchanges - tax on gain is deferred
**Chap 14**
364
**1031 Exchanges - Allows "tax gain" to be deferred into future.**
1. **Like Kind** - **In\_\_\_\_ and Inv\_\_\_\_\_\_ Properties.**
2. **Simultaneous Exchange** - **One Property "T\_\_\_\_ Dir\_\_\_\_ for** **A\_\_\_\_\_"** Property
3. **Delayed Exchange** - **New Pro\_\_\_\_** **Ac\_\_\_\_** within **specific time** frames.
4. **_Boot_** - **Un\_\_\_\_ K\_\_\_ Pr\_\_\_\_\_** received in an exchange.
**1031 Exchanges** - **Allows "tax gain" to be deferred into future.**
1. **_Like Kind_** - **Income/Investment Properties.**
2. **_Simultaneous Exchange_** - One property **"Traded Directly for Another"** property
3. **_Delayed Exchange_** - **"New Property** **Acquired"** within **specific time** frames.
4. **_Boot_** - **"Unlike Kind Property"** received in an exchange.
**Chap 14**
365
**1031 Exchanges - Allows "tax gain" to be deferred into future.**
1. **Like Kind** - **In\_\_\_\_ and Inv\_\_\_\_\_\_ Properties.**
2. **Simultaneous Exchange** - **One Property "T\_\_\_\_ Dir\_\_\_\_ for** **A\_\_\_\_\_"** Property
3. **Delayed Exchange** - **New Pro\_\_\_\_** **Ac\_\_\_\_** within **specific time** frames.
4. **_Boot_** - **Un\_\_\_\_ K\_\_\_ Pr\_\_\_\_\_** received in an exchange.
**1031 Exchanges** - **Allows "tax gain" to be deferred into future.**
1. **_Like Kind_** - **Income/Investment Properties.**
2. **_Simultaneous Exchange_** - One property **"Traded Directly for Another"** property
3. **_Delayed Exchange_** - **"New Property** **Acquired"** within **specific time** frames.
4. **_Boot_** - **"Unlike Kind Property"** received in an exchange.
**Chap 14**
366
If an item **r\_\_\_\_\_ the cash** the seller takes home at closing, it is a **Seller (Credit or Debit)**?
**Seller Debit** -
If an item **reduces** **the cash** the seller will take home at closing, it is a **Seller Debit**
**Chap 14**
367
If an item **r\_\_\_\_\_ the cash** the buyer must bring to closing, it is a **Buyer (Credit or Debit)**?
**Buyer Credit** -
If an item **reduces** **the cash** the buyer must bring to closing, it is a **Buyer Credit**
**Chap 14**
368
If an item **r\_\_\_\_\_ the cash** the **seller takes home** at closing, it is a **Seller (Credit or Debit)**?
**Seller Debit** -
If an item **reduces** **the cash** the **seller will take home** at closing, it is a **Seller Debit**
**Chap 14**
369
If an item **r\_\_\_\_\_ the cash** the **buyer must bring** to closing, it is a **Buyer (Credit or Debit)**?
**Buyer Credit** -
If an item **reduces** **the cash** the **buyer must bring** to closing, it is a **Buyer Credit**
**Chap 14**
370
If an item **r\_\_\_\_\_ the cash** the **buyer must bring** to closing, it is a **Buyer (Credit or Debit)**?
**Buyer Credit** -
If an item **reduces** **the cash** the **buyer must bring** to closing, it is a **Buyer Credit**
**Chap 14**
371
If an item **r\_\_\_\_\_ the cash** the **buyer must bring** to closing, it is a **Buyer (Credit or Debit)**?
**Buyer Credit** -
If an item **reduces** **the cash** the **buyer must bring** to closing, it is a **Buyer Credit**
**Chap 14**
372
**Tax Advise** -
Upon purchase or sale of property, there can be significant **I\_\_\_\_ T\_\_** consequences. A real estate licensee should advise thier clients to **s\_\_\_\_** Competent Legal Advice from a **Q\_\_\_\_\_ Ex\_\_\_\_.(Tax Advisor)**
**Tax Advise** -
Upon purchase or sale of property, there can be significant **Income Tax** consequences. A real estate licensee should advise thier clients to **seek** Competent Legal Advice from a **Qualified Expert.(Tax Advisor)**
**Chap 14**
373
**R\_\_\_\_\_\_\_\_ -**
Giving **constructive notice** to the **general public.**
**Recording -**
Giving **constructive notice** to the **general public.**
**Chap 13**
374
**Written instrument** that **transfers ownership** of real property.
**Deed -**
Written instrument that transfers ownership of real property.
**Chap 13**
375
Conveys the grantor's interest and **warrants title against all claims**
**Warranty Deed** -
Conveys the grantor's interest and **warrants title against all claims**
**Chap 13**
376
Conveys the grantor's interest and warrants title against **claims arising only from the grantor's actions.**
**Special Warranty Deed -**
Conveys the grantor's interest and warrants title against claims arising **only from the grantor's actions.**
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377
Conveys that grantor's interest but **has no expressed warranty.**
1. **Implied warranty** that grantor has the right to convey the property..
2. **Guardian Deeds**, **Executor's Deeds** and **_Foreclosure deeds_**: **Sheriff's Deeds**, **Trustee's Deeds**
**Bargain and Sale Deed** -
Conveys that grantor's interest but has **no expressed warranty.**
1. **Implied warranty** that grantor has the right to convey the property.
2. **Guardian Deeds**, **Executor's Deeds** and **_Foreclosure Deeds_**: **Sheriff's Deeds, Trustee's Deeds**
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**Releases all of the grantor's interest**, if any.
1. **No Warranties** - expressed or implied
2. Used to **clear title defects**
**Quit Claim Deed** -
**Releases all of the grantor's interest,** if any.
1. **No Warranties** - expressed or implied
2. Used to **clear title defects**
**Chap 13**
379
An instrument that conveys **real property from the state or f\_\_\_\_\_\_ government** to an individual
**Patent -**
An instrument that conveys real property **from the state or federal government** to an individual
**Chap 13**
380
This Deed specifies **who will receive real estate** **when the grantor dies**. This deed is recorded by the grantor and **can be rescinded//changed** before grantor's death.
1. Takes effect on Grantor's death
2. **Deed supersedes** Grantor's Will.
3. **Purchase Contract supersedes** Beneficiary Deed.
**Beneficiary Deed -**
Deed specifies who will receive real estate **when the grantor dies**. This deed is recorded by the grantor and **can be rescinded/changed** before grantor's death.
1. Takes effect on Grantor's death
2. **Deed supersedes Grantor's Will.**
3. **Purchase Contract supersedes** Beneficiary Deed.
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381
**_Documents signed by one spouse_**, **prior to the other spouse acquiring property** in order to **prevent** it from **becoming community property.**
**Disclaimer Deed -**
**_Documents signed by one spouse_**, **prior to the other spouse acquiring property** in order to **prevent** it from **becoming community property.**
**Chap 13**
382
**Valid Deed -**
1. **S\_\_\_\_** by the **Gr\_\_\_\_\_.**
2. **_Acknowledged/Notarization_**: **For\_\_\_\_ De\_\_\_\_\_** made before a **No\_\_\_\_ Public** **(protects against forgery) Need to R\_\_\_\_\_**
3. **_Delivery and Acceptance_: is R\_\_\_\_\_ing** also **Fin\_\_ S\_\_\_\_ to Transfer Title**
**Note: Law does not r\_\_\_\_\_ deed to be recorded to be vaiid**
**Valid Deed** -
1. **Signed** by the **Grantor.**
2. **_Acknowledged/Notarization_**: Formal Declaration made before **Notary Public** **(protects against forgery) Need to Record**
3. **_Delivery and Acceptance_: is Recording** also **Final Step to Transfer Title**
**Note: Law does not require deed to be recorded to be vaiid**
**Chap 13**
383
What is importance of Recording?
**Recording Importance -**
Gives **constructive notice** to general **public.**
**Chap 13**
384
**Notice given (to public)** when a **document is recorded** in the county in which the property exists.
**Constructive Notice -**
**Notice given (to public)** when a **document is recorded** in the county in which the property exists.
**Chap 13**
385
**Notice by inspection of the property**, **records** or by **actual knowledge** **of a fact.**
**Actual Notice (Inspection)-**
**Notice by** **inspection of the property**, **records** or by **actual knowledge** **of a fact.**
**Chap 13**
386
**Affidavit of Value (Prop Taxes)**
This document is needed for **T\_\_ Ass\_\_\_\_\_**
1. Must accompany or **r\_\_\_\_\_ with deed**
2. **S\_\_\_\_** by **both Par\_\_\_\_**
3. **Sa\_\_\_ Pr\_\_\_\_** ***(consideration)*** stated
4. **Pro\_\_\_\_ Des\_\_\_\_\_** stated
5. **_Used instead_** of (Tr\_\_\_\_ T\_\_ Stamps)
**Affidavit of Value (Prop Taxes)**
This document is needed for **Tax Assessors**.
1. Must accompany or **record with deed**
2. **Signed** by **both Parties**
3. **Sales Price** ***(consideration)*** stated
4. **Property Description** stated
5. **_Used instead_** of (**Transfer Tax Stamps)**
**Chap 13**
387
**Haben\_\_\_\_ Clause**
Clause in deed that **_defines_ _interest_** being **conveyed.** Starts with **"To have or To hold"**
**Habendum Clause** -
Clause in deed that **_defines**_ _**interest_** being **conveyed.** Starts with **"To have or To hold"**
**Chap 13**
388
**Res\_\_\_\_\_\_\_\_ and Exem\_\_\_\_\_\_ Clause**
Clause in deed where **Grantor holds back some** **interest** or which **list encumbrances**.
**Reservation and Exemption Clause** -
Clause in deed where **Grantor holds back some interest** or which **list encumbrances.**
**Chap 13**
389
**G\_\_\_\_ing Clause -**
Clause in deed, **conveys title to grantee**
**Granting Clause -**
Clause in deed, **conveys title to grantee**
**Chap 13**
390
**T\_\_\_\_\_\_\_ Clause**
**Witness clause** in deed citing the **A\_\_ and D\_\_\_ of Execution.**
**Testimonium Clause** -
**Witness clause** in deed citing the **Act and Date of Execution.**
**Chap 13**
391
**Title** that is **without cloud or defect**
**Merchantable (Marketable) Title -**
**Title** that is **without cloud or defect**
**Chap 13**
392
**Summary** of the **Chain of Title**
**Abstract Title** -
**Summary** of the **Chain of Title**
**Chap 13**
393
**Chain of Title**
1. **C\_\_\_\_\_ H\_\_\_\_\_** **of the Property.**
2. Would **Rev\_\_\_ Ga\_\_ in Ownership** record.
3. **Q\_\_\_\_ T\_\_\_\_ Action** - Would **remove clouds** on that title.
**Chain of Title (Complete and Gaps) -**
1. **Complete History** **of the** **Property.**
2. Would **Reveal Gaps in Ownership** record.
3. **Quiet Title Action** - Would **remove clouds** on that title.
**Chap 13**
394
A policy that **protects the policy holder** against loss due to **title defects.**
**Title Insurance -**
A policy that **protects the policy holder** against loss due to **title defects.**
**Chap 13**
395
**_Owner's Title Policy (for Buyer):_**
1. **Seller usually purchases policy**
2. **_Protects Buyer From:_**
1. **F\_\_\_\_\_ D\_\_\_\_\_\_**
2. **Inc\_\_\_\_\_\_\_\_ Grantor**
3. **Improperly Dr\_\_\_\_/Del\_\_\_\_\_/Mis\_\_\_\_ Docs**
4. **If only __ spouse conveyed**
5. **Unknown D\_\_\_\_\_\_ Heirs**
3. **_Page of Exceptions Sched B(not covered)_**
1. **Existing L\_\_\_ and En\_\_\_\_\_\_\_ of Record**
2. **Me\_\_\_\_\_\_ Liens not yet Rec\_\_\_\_\_**
3. **Persons in Pos\_\_\_\_\_\_\_**
4. **Enc\_\_\_\_\_\_\_ or Errors a S\_\_\_\_ would reveal**
4. Extended Coverage same coverage as ALTA Policy **(not covered - existing liens, encumbrances, defects, zoning)**
**_Owner's Title Policy (for Buyer):_**
1. **Seller usually purchases policy**
2. **_Protects Buyer From:_**
1. Forged documents
2. Incompetent Grantor
3. Improperly Drawn/Delivered/Misfiled Docs
4. If only 1 spouse conveyed
5. Unknown Discovery Heirs
3. **_Page of Exceptions Sched B (not covered)_**
1. Existing **Liens and Encumbrancesof Record**
2. Mechanics Liens not yet Recorded
3. Persons in possession
4. Encroachments or Errors a Survey would reveal
4. Extended Coverage same coverage as ALTA Policy **(Never Covered - existing liens, encumbrances, defects, zoning)**
**Chap 13**
396
**Owner's Title Policy - _Page of Exceptions (Sched B)_**
1. **Existing L\_\_\_ and E\_\_\_\_\_\_\_\_\_\_ of Record**
2. **Me\_\_\_\_\_\_ Liens not yet Re\_\_\_\_\_**
3. **Persons in Po\_\_\_\_\_\_\_**
4. **Enc\_\_\_\_\_\_\_ or Errors a S\_\_\_\_\_ would Reveal**
**No Policy Covers: Existing Liens, Encumbrances, Defects Known, or Zoning Ordanances**
**Owner's Title Policy - _Page of Exceptions (Sched B)_**
1. Existing **Liens and Encumbrances of Record**
2. **Mechanics Liens** not yet **Recorded**
3. Persons in **Possession**
4. **Encroachments** or **Errors a** **Survey** would Reveal
**No Policy Covers: Existing Liens, Encumbrances, Defects Known, or Zoning Ordanances**
**Chap 13**
397
A **policy that _protects lender_ against defects** which could be **determined by an inspection of public records** (constructive notice) or **an inspection of property** (actual notice). **Buyer Pu\_\_\_\_\_\_ this policy**
**_Protects Against_**
1. **For\_\_\_\_ Documents**
2. **Inc\_\_\_\_\_\_ Grantor**
3. **Improperly Dr\_\_\_\_/De\_\_\_\_\_\_/Mis\_\_\_\_ Docs**
4. **If only 1 spouse conveyed**
5. **Unknown Di\_\_\_\_\_ Heirs**
**_Also protects against:_**
1. **Me\_\_\_\_\_ Liens not yet Re\_\_\_\_\_**
2. **Persons in Po\_\_\_\_\_\_**
3. **Enc\_\_\_\_\_\_\_ or Errors a S\_\_\_\_ would reveal**
**_Not protected against:_**
1. **Existing L\_\_\_ or Encu\_\_\_\_\_ of record**
2. **De\_\_\_\_\_ known to the insured**
3. **Z\_\_\_\_\_ Ordances or changes in zoning**
**ALTA Title Policy -**
**A policy that _protects lender_ against defects** which could be **determined by an inspection of public records** (constructive notice) or **an inspection of property** (actual notice). Buyer **Purchases** this Policy
**_Protects Against_**
1. **Forged** documents
2. **Incompetent** grantor
3. Improperly **Drawn/Delivered/Misfiled** Docs
4. If only 1 spouse conveyed
5. Unknown **Discovery Heirs**
_Also protects against:_
1. **Mechanics Liens** not yet Recorded
2. Persons in **Possession**
3. **Encroachments** or **Errors a Survey** would reveal
**_Not protected against:_**
1. Existing **Liens or Encumbrances** of record
2. **Defects** known to the insured
3. **Zoning Ordances** or changes in zoning
**Chap 13**
398
**_No Title Policy Covers These Items_:**
1. **Existing Enc\_\_\_\_\_\_\_** of Record
2. **De\_\_\_\_ known** to insured
3. **Z\_\_\_\_ Ordinances** or changes in zoning
**_No Title Policy Covers These Items_:**
1. **Existing encumbrances** of Record
2. **Defects known** to insured
3. **Zoning Ordinances** or changes in zoning
**Chap 13**
399
**T\_\_\_\_\_ P\_\_\_\_\_**
A **duplicate set of public records** maintained **by a title company.**
**Title Plant -**
A **duplicate set of public records** maintained **by a title company.**
**Chap 13**
400
**Commitment of Title Insurance** issued prior to closing of sale?
**Preliminary Title Report -**
**Commitment of Title Insurance** issued prior to closing of sale
**Chap 13**
401
**Subr\_\_\_\_\_\_\_**
**Substitution of 3rd person** in place of another in relation **to claim/debt**
**Subrogation -**
**Substitution of 3rd person** in place of another in relation **to claim/debt**
**Chap 13**
402
**(UCC) Uniform Commercial Code** - governs
1. **Co\_\_\_\_\_\_\_ and Bu\_\_\_\_\_** transactions
2. **S\_\_\_/Fi\_\_\_\_\_ of P\_\_\_\_\_\_** **Property**
**(UCC) Uniform Commercial Code** - governs
1. **Commercial and Business** transactions
2. **Sales/Financing of Personal** **Property**
**Chap 13**
403
In (UCC) Uniform Commercial Code
**Security Agreement -**
1. **Places L\_\_\_** on **P\_\_\_\_\_\_ Property.**
2. **_UCC-1_** establishes **Lien Pri\_\_\_\_**. **U\_\_\_\_ filed with S\_\_\_\_\_\_\_ of State**
3. **_Business Sold_** - **U\_\_\_\_ search by Se\_\_\_\_\_ of State to determine outstanding U\_\_\_\_ L\_\_\_\_.**
(UCC) Uniform Commercial Code -
**Security Agreement -**
1. **Places Lien** on **Personal Property.**
2. **_UCC-1_** establishes **Lien Priority** **(UCC-1 filed) with Secretary of State**
3. **_Business Sold_** - **UCC-1 search by Secretary of State to determine outstanding UCC-1 Liens.**
**Chap 13**
404
Under (UCC) Uniform Commercial Code
**B\_\_\_ S\_\_\_ Aff\_\_\_\_\_ -**
**"_Buyer of Business_**" - provided with **List of Seller's Creditors**
Under (UCC) Uniform Commercial Code -
**Bulk Sales Affidavit -**
1. _**Buyer** **of Business**_ - provided with **List of Seller's Creditors**
**Chap 13**
405
**Deeds (Transfers of Ownership) -**
1. **General Warranty (_Fee Simple_) - Against A\_\_ C\_\_\_\_**
2. **Special Warranty (_Defeasible Fee_) - Only from G\_\_\_\_\_ Ac\_\_\_\_\_**
3. **Bargain and Sale (_Life Estate_) - No W\_\_\_\_\_\_ (Guardian Deed, Executor's Deed, Trustee's Deed, Sheriff's Deed)**
4. **Quit Claim (Leasehold Estate) - _Releases all Grantor's Interest_, No Warranties, Clears T\_\_\_ Def\_\_\_.**
**Deeds (Transfers of Ownership) -**
1. **General Warranty (_Fee Simple_)** - Against All Claims
2. **Special Warranty (_Defeasible Fee_)** - Only from Grantor's Actions
3. **Bargain and Sale** **(_Life Estate_)** - No Warranties **(Guardian Deed, Executor's Deed, Trustee's Deed, Sheriff's Deed)**
4. **Quit Claim** **(_Leasehold Estate_)** - **_Releases all Grantor's Interest_**, No Warranties, **Clears Title Defects**
**Chap 13**
406
Person who gives the deed and gives up ownership.
**Grantor -**
Person who gives the deed and gives up ownership.
**Chap 13**
407
Person who receives the deed and acquired ownership.
**Grantee -**
Person who receives the deed and acquired ownership.
**Chap 13**
408
**Formal Declaration** made **before** an authorized official such as a **notary public**
**Acknowledgement/Notarization -**
**Formal Declaration** made **before** an authorized official such as a **notary public**
**Chap 13**
409
**Final step necessary to transfer title**, and recording implies the same.
**Delivery and Acceptance -**
**Final step necessary to transfer title**, and recording implies the same.
**Chap 13**
410
In a Affidavit of Value, what is another word for "sales price?"
**Consideration -**
In a Affidavit of Value, what is another word for "sales price"
**Chap 13**
411
**Bargain and Sale Deed** -
Conveys that grantor's interest but **has no expressed warranty. Has "implied warranty",** grantor has right to convey**.**
**_Types:_**
1. **Guar\_\_\_\_\_ Deeds**, **Ex\_\_\_\_\_'s Deeds** and **F\_\_\_\_\_\_ Deeds**: **S\_\_\_\_\_'s Deeds**, **T\_\_\_\_\_ee's Deeds**
**Bargain and Sale Deed** -
Conveys that grantor's interest but has **no expressed warranty. Has "implied warranty",** grantor has right to convey**.**
**_Types:_**
1. **Guardian Deeds**, **Executor's Deeds** and **_Foreclosure Deeds:_ Sheriff's Deeds, Trustee's Deeds**
**Chap 13**
412
**Beneficiary Deed -** This Deed specifies who will receive real estate when the grantor dies.
## Footnote
**Beneficiary Deed supersedes what document?**
**Beneficiary Deed -** This Deed specifies who will receive real estate when the grantor dies.
## Footnote
**Beneficial Deed _supersedes Grantor's Will._**
**Chap 13**
413
**Beneficiary Deed -**
This Deed specifies who will receive real estate when the grantor dies.
**What document supersedes** **Beneficiary Deed?**
**Beneficiary Deed -**
Deed specifies who will receive real estate **when the grantor dies**.
**_Purchase Contract_ supersedes** **Beneficiary Deed**.
**Chap 13**
414
**Beneficiary Deed -** This Deed specifies who will receive real estate when the grantor dies.
## Footnote
**Beneficiary Deed supersedes what document?**
**Beneficiary Deed -** This Deed specifies who will receive real estate when the grantor dies.
## Footnote
**Beneficial Deed _supersedes Grantor's Will._**
**Chap 13**
415
**Beneficiary Deed -**
This Deed specifies who will receive real estate when the grantor dies.
**What document supersedes** **Beneficiary Deed?**
**Beneficiary Deed -**
Deed specifies who will receive real estate **when the grantor dies**.
**_Purchase Contract_ supersedes** **Beneficiary Deed**.
**Chap 13**
416
**U\_\_\_\_\_\_ Com\_\_\_\_\_\_ C\_\_\_\_\_\_**
Governs the following
1. **Commercial and Business** transactions
2. **Sales/Financing of Personal** **Property**
**(UCC) Uniform Commercial Code** - governs
1. **Commercial and Business** transactions
2. **Sales/Financing of Personal** **Property**
**Chap 13**
417
**Valid Deed -**
1. **S\_\_\_\_** by the **G\_\_\_\_\_.**
2. **Ack\_\_\_\_\_\_ment/Not\_\_\_\_\_\_\_\_**: **Fo\_\_\_ Dec\_\_\_\_\_** made before **Notary Public. Protects Against Forgery and _Needed to Record_**
3. **Del\_\_\_\_\_ and Ac\_\_\_\_\_\_- is Recording** also **"*_Final Step_*" to Transfer Title**
**Note: Law does not r\_\_\_\_\_ deed to be recorded to be valid**
**Valid Deed** -
1. **_Signed_** by the **Grantor.**
2. **_Acknowledment/Notarization_**: **Formal Declaration** made before **Notary Public** **(Protects Against Forgery) _Needed to Record_**
3. **_Delivery and Acceptance_ - is Recording** also **"*_Final Step_*" to Transfer Title**
**Note: Law does not require deed to be recorded to be valid**
**Chap 13**
418
**Valid Deed -**
1. **S\_\_\_\_** by the **G\_\_\_\_\_.**
2. **Ack\_\_\_\_\_\_/Not\_\_\_\_\_\_\_\_**: **For\_\_\_ Dec\_\_\_\_\_** made before **Notary Public**
3. **Del\_\_\_\_\_ and Acc\_\_\_\_\_\_- is Recording** also **Final Step to Transfer Title**
**Note: Law does not r\_\_\_\_\_ deed to be recorded to be vaiid**
**Valid Deed** -
1. **Signed** by the **Grantor.**
2. **Acknowledged/Notarization**: Formal Declaration made before **Notary Public** **(protects against forgery) Need to Record**
3. **Delivery and Acceptance- is Recording** also **Final Step to Transfer Title**
**Note: Law does not require deed to be recorded to be vaiid**
**Chap 13**
419
**Merch\_\_\_\_\_\_ (Mar\_\_\_\_\_) Title -**
**Title** that is **without cloud or defect**
**Merchantable (Marketable) Title -**
**Title** that is **without cloud or defect**
**Chap 13**
420
**C\_\_\_\_ of T\_\_\_\_\_**
1. **Complete History** **of the** **Property and** would **Reveal Gaps in Ownership** record.
**Chain of Title -**
1. **Complete History** **of the** **Property and** would **Reveal Gaps in Ownership** record.
**Chap 13**
421
**C\_\_\_\_ of T\_\_\_\_\_**
1. **Complete History** **of the** **Property and** would **Reveal Gaps in Ownership** record.
**Chain of Title -**
1. **Complete History** **of the** **Property and** would **Reveal Gaps in Ownership** record.
**Chap 13**
422
An instrument that conveys **real property from the state or federal government** to an individual
**Patent -**
An instrument that conveys real property **from the state or federal government** to an individual
**Chap 13**
423
**B\_\_\_\_\_ and S\_\_\_\_\_ D\_\_\_\_\_ -**
Conveys that grantor's interest but **has no expressed warranty.**
1. **Implied warranty** that grantor has the right to convey the property..
2. **Guardian Deeds**, **Executor's Deeds** and **_Foreclosure deeds_**: **Sheriff's Deeds**, **Trustee's Deeds**
**Bargain and Sale Deed** -
Conveys that grantor's interest but has **no expressed warranty.**
1. **Implied warranty** that grantor has the right to convey the property.
2. **Guardian Deeds**, **Executor's Deeds** and **_Foreclosure Deeds_**: **Sheriff's Deeds, Trustee's Deeds**
**Chap 13**
424
**Pre\_\_\_\_\_\_ T\_\_\_\_ R\_\_\_\_\_ -**
**Commitment of Title Insurance** issued prior to closing of sale?
**Preliminary Title Report -**
**Commitment of Title Insurance** issued prior to closing of sale
**Chap 13**
425
**A Chain of Title is a:**
1. Measurement used by a surveyor
2. Listing of all Recorded Instruments affecting title
3. Certificated of Title
4. List of the Heirs of a Deceased Owner
**A Chain of Title is a:**
1. Measurement used by a surveyor
2. **Listing of all Recorded Instruments affecting title**
3. Certificated of Title
4. List of the Heirs of a Deceased Owner
**Chap 13**
426
**A Standard Title Insurance Policy includes coverage for:**
1. Items of Record which are not disclosed in the Policy
2. Zoning Ordinances
3. Persons in Possession of the Property
4. Errors A Survey would show.
**A Standard Title Insurance Policy includes coverage for:**
1. **Items of Record which are not disclosed in the Policy**
2. Zoning Ordinances
3. Persons in Possession of the Property
4. Errors a Survey would show.
**Chap 13**
427
**In a Standard Owner's Title Policy "The Page of Exceptions" indicates the:**
1. Legal Description
2. Type of Interest being Insured
3. Method of Ownership for the Buyers
4. Liens and Encumbrances of Record
**In a Standard Owner's Title Policy "The Page of Exceptions" indicates the:**
1. Legal Description
2. Type of Interest being Insured
3. Method of Ownership for the Buyers
4. **Liens and Encumbrances of Record**
**Chap 13**
428
**All of the following are required to be in a Deed of Conveyance EXCEPT:**
1. Acknowledgement
2. Sale Price
3. Legal Description
4. Consideration
**All of the following are required to be in a Deed of Conveyance EXCEPT:**
1. Acknowledgement
2. **Sale Price**
3. Legal Description
4. Consideration
**Chap 13**
429
**Ownership is transferred when the:**
1. Title is Recorded
2. Deed is Signed by the Seller
3. Deed is delivered to and accepted by the Buyer
4. Title Insurance Policy is Issued
**Ownership is transferred when the:**
1. Title is Recorded
2. Deed is Signed by the Seller
3. **Deed is delivered to and accepted by the Buyer**
4. Title Insurance Policy is Issued
**Chap 13**
430
**An ALTA Policy would be terminated under al of the following circumstances EXCEPT:**
1. Sale of the Property and Assumption of the Loan
2. Sale of the Property with the Buyer Originating new FHA
3. Refinance of Property
4. Acceptance of Deed in Lieu of Forclosure by Lender
**An ALTA Policy would be terminated under al of the following circumstances EXCEPT:**
1. **Sale of the Property and Assumption of the Loan**
2. Sale of the Property with the Buyer Originating new FHA
3. Refinance of Property
4. Acceptance of Deed in Lieu of Forclosure by Lender
**Chap 13**
431
**Upon review of a Title Report an attorney finds gaps in the Chain of Ownership. What should the owner do to correct these title defects?**
1. Obtain Title Insurance
2. File a Quite Title Action
3. Secure An Affidavit of Title
4. Obtain Affidavit of Ownership from County Administrator
**Upon review of a Title Report an attorney finds gaps in the Chain of Ownership. What should the owner do to correct these title defects?**
1. Obtain Title Insurance
2. **File a Quite Title Action**
3. Secure An Affidavit of Title
4. Obtain Affidavit of Ownership from County Administrator
**Chap 13**
432
**Which is MOST likely to reveal all of the owners in the property's history?**
1. Certificate of Tile
2. Abstract of Title
3. Title Report
4. Affidavit of Title
**Which is MOST likely to reveal all of the owners in the property's history?**
1. Certificate of Tile
2. **Abstract of Title**
3. Title Report
4. Affidavit of Title
**Chap 13**
433
**Arizona law requires that a document accompany every deed before the deed can be recorded. This document is signed by:**
1. Buyer
2. Seller
3. Buyer and Seller
4. Buyer, Seller and Broker
**Arizona law requires that a document accompany every deed before the deed can be recorded. This document is signed by:**
1. Buyer
2. Seller
3. **Buyer and Seller**
4. Buyer, Seller and Broker
**Chap 13**
434
**Deeds, to be valid, must contain:**
1. Monetary Consideration
2. Date
3. Acknowledgement
4. Grantee's Signature
**Deeds, to be valid, must contain:**
1. Monetary Consideration
2. Date
3. **Acknowledgement**
4. Grantee's Signature
**Chap 13**
435
**Which type of Deed created the GREATEST LIABILITY for the Grantor?**
1. Quit Cliam Deed
2. Bargain & Sale Deed
3. Special Warranty Deed
4. Warranty Deed
**Which type of Deed created the GREATEST LIABILITY for the Grantor?**
1. Quit Cliam Deed
2. Bargain & Sale Deed
3. Special Warranty Deed
4. **Warranty Deed**
**Chap 13**
436
At death when the decedents **estate is probated** is called?
**Inheritance -**
At death when the decedents **estate is probated**
**Chap 12**
437
**Te\_\_\_\_cy in Sev\_\_\_\_ty - Sole and Separate Ownership.**
**_Ownership By One Person_**
1. **N\_\_\_\_\_ or L\_\_\_\_ Person**, **(C\_\_\_\_, Cities, etc)**
2. **_Probate_** - **Used to Pass Es\_\_\_\_ to H\_\_\_s, at Decedent's Death**
**Tenancy in Severalty - Sole and Separate Ownership.**
**_Ownership By One Person_**
1. **Natural or Legal Person**, **(Corps, Cities, etc)**
2. **_Probate_** - **Used to Pass Estate to Heirs, at Decedent's Death.**
**Severalty - means condition of being separate**
**Chap 12**
438
**Join Tenancy** - **Ownership shared by (_2 or more_ _people_)**, having **"Right to Survivorship**."
1. **_Unities_**: **(T\_\_\_\_, T\_\_\_\_, In\_\_\_\_\_ and Pos\_\_\_\_\_)**
2. **Nat\_\_\_\_\_ Pe\_\_\_\_ Only** **(\*\*\*No Corps\*\*\*)**
3. Joint Tenants can - **Convey In\_\_\_\_\_\_** **without Permission** of others.
4. **Automatic Right to Sur\_\_\_\_\_\_\_ - No Probate**
5. **Joint Interest conveyed becomes - T\_\_\_\_\_ in C\_\_\_\_\_\_ which passes to Heirs**
**Join Tenancy** - **Ownership shared by** **(_2 or more people_**), having **"Right to Survivorship."**
1. **_Unities_**: **(Time, Title, Interest and Possession)**
2. **Natural Person Only (\*\*\*No Corps\*\*\*)**
3. Joint Tenants **can - Convey Interest wihout Permission** of others**.**
4. **Automatic Right to Survivorhip - No Probate**
5. **Joint Interest conveyed becomes Tenants in Common whch passes to Heirs**
**Chap 12**
439
**C\_\_\_\_\_\_\_\_ Pr\_\_\_\_\_\_\_ -**
1. **Property acquired by spouses during marriage.**
**_Seperate Property_**
1. Property received by **G\_\_\_ or Inh\_\_\_\_\_\_, Purchase with Sep\_\_\_\_\_ F\_\_\_\_** or **Acquired Prior to Ma\_\_\_\_\_** - **Remains Separate**.
**Community Property -**
1. **Property acquired by spouses during marriage.**
**_Separate Property_**
1. Property received by **Gift or Inheritance, Purchase with Separate Funds** or **Acquired Prior to Marriage** - **Remains Separate**.
**Chap 12**
440
**Community Property** -
1. **Salaries E\_\_\_\_** by **Either Spouse** are **Com\_\_\_\_\_ Property**
2. **Each Spouse** has **\_\_% Interest.**
3. **Both Spouses** must **Si\_\_ to Con\_\_\_ Property**
4. **At Death Spouse's Half** Passes to **His/Her H\_\_\_**.
**Community Property** -
1. **Salaries Earned** by **Either Spouse** are **Community Property**
2. **Each Spouse** has **50% Interest.**
3. **Both Spouses** must **Sign to Convey Property**
4. **At Death Spouse's Half** Passes to **His/Her Heirs**.
**Chap 12**
441
**Com\_\_\_\_\_\_ Pr\_\_\_\_\_\_\_ with R\_\_\_ of S\_\_\_\_\_\_\_\_**
This type of title allows **deceased spouses Interest to pass directly to surviving spouse** **_without Probate_**
**Community Property with Right of Survivorship -**
This type of title allows **deceased spouses Interest to pass directly to surviving spouse** **_without Probate_**
**Chap 12**
442
**Tenancy in Common** -
1. **Co-Ownership** by **Two or M\_\_\_\_ Persons** **(Leg\_\_ or Nat\_\_\_\_)** with **"No R\_\_\_\_" to Sur\_\_\_\_\_\_**."
2. **Each holds distinct Und\_\_\_\_\_ In\_\_\_\_\_\_**
3. Only **Unity is "Pos\_\_\_\_\_"** necessary
4. At **Decedent's Death** **his/her shares goes to H\_\_\_**
**Tenancy in Common** -
1. **Co-Ownership** by **Two or More Persons** **(Legal or Natural)** with **"No Right" to survivorship**."
2. **Each holds distinct undivided interest**
3. Only **Unity is "Possession"** necessary
4. At **Decedent's Death** **his/her shares goes to H\_\_\_**
**Chap 12**
443
**T\_\_\_\_\_\_ in C\_\_\_\_\_\_\_\_\_**
**_Co-ownership**_ by _**two or more persons_** with **No Right to Survivorship.**
1. **Natural or Legal Person** can **Hold Title**
2. **Each holds** a separate and **Distinct Undivided Interest**.
3. **_Unity_** is **\*\*\*\*Possession\*\*\*\*\***
4. At Death **Interest goes to Heirs**
**Tenancy in Common** -
**_Co-ownership**_ by _**two or more persons_** with **No Right to Survivorship.**
1. **Natural or Legal Person** can **Hold Title**
2. **Each holds** a separate and **Distinct Undivided Interest.**
3. **_Unity_** of **Possession**
4. At death **Interest goes to Heirs**
**Chap 12**
444
**Un\_\_\_\_\_ Pra\_\_\_\_**
**Advising a buyers how to take title** is considered what?
**Unlawful Practice -**
**Advising a buyers how to take title** is considered what
**Chap 12**
445
**S\_\_ for P\_\_\_\_\_\_**
**Legal Action** used to **terminate a _Tenancy in Common_ or _Joint Tenancy_.**
**Suit for Partition** -
**Legal Action** used to **terminate a _Tenancy in Common_ or _Joint Tenancy_.**
**Chap 12**
446
**R\_\_\_ E\_\_\_\_ Syn\_\_\_\_\_\_\_** -
**Pooling together Resources for Investment**. **(Such as: General or Limited Partnerships; Corporations, Limited Liabiility Co; Trust; REIT's.**
**Real Estate Syndications** -
**Pooling together Resources for Investment.** **(Such as: General or Limited Partnerships; Corporations, Limited Liabiility Co; Trust; REIT's.**
**Chap 12**
447
**G\_\_\_\_\_\_\_ P\_\_\_\_\_\_\_\_\_\_**
In this partnership, **each partner has F\_\_\_ L\_\_\_\_\_\_ for D\_\_\_\_** of Partnership. Also **Actively M\_\_\_\_\_\_** the Partnership
**General Partnership -**
**Each partner has full liability for debts** of partnership. Also **Actively Manages** the **Partnership**
**Chap 12**
448
**L\_\_\_\_\_\_ P\_\_\_\_\_\_\_** - **Composed of _General_ and _Limited_ Partners.**
1. **General Partners** - **F\_\_ L\_\_\_\_\_ for D\_\_\_** and **Actively Man\_\_\_\_ Par\_\_\_\_\_\_**
2. **Limited Partners** - Liability Limited to **Or\_\_\_\_\_** **Ag\_\_\_\_\_\_\_\_** - **Passive Investors (Puts M\_\_\_\_ In)**
**Limited Partnership** - **Composed of _General_ and _Limited_ Partners.**
1. **_General Partners_** - **Full Liability for debts** - Actively **Manages Partnership**
2. **_Limited Partners_** - Liability Limited to **Original Agreement** - **Passive Investors (put money in)**
**Chap 12**
449
**C\_\_\_\_\_\_\_\_**
**A Bu\_\_\_\_\_ Entity** made up of One or More Persons **(Who Receive S\_\_\_\_\_)** that is treated as a **Sep\_\_\_\_\_ Entity**.
**Corporation -**
**A Business Entity** made up of One or More Persons **(Who Receive Stocks)** that is treated as a Separate Entity.
**Chap 12**
450
**Li\_\_\_\_\_ Li\_\_\_\_\_ C\_\_\_\_\_\_**
**A Business Entity** with ***_Combined Characteristics_*** of **L\_\_\_\_ Pa\_\_\_\_\_\_ and** certain types of **C\_\_\_\_\_\_\_.**
**Limited Liability Company (LLC)** -
**A business entity** with ***_Combined Characteristics_*** of **Limited Partnerships and** certain types of **Corporations.**
**Chap 12**
451
**T\_\_\_\_ -**
**Legal Title** to property is **Transferred to** and **M\_\_\_\_\_\_ by a Tr\_\_\_\_\_,** for the **benefit of B\_\_\_\_\_\_\_.**
**Trust -**
Legal title to property is **Transferred to** and **Managed by a Trustee,** for the **benefit of Beneficiary.**
**Chap 12**
452
**REIT (Real Estate Investment Trust)**
A company with at least **\_\_\_ Investors** that owns **Inc\_\_\_\_ Producing Real Estate** and provides **T\_\_ Favored Tre\_\_\_\_\_\_ to the Inv\_\_\_\_\_\_.**
1. Must **Invest** at least **\_\_% of its Ass\_\_\_ in Real Estate**
2. Must **Pay Out** at least **\_\_% of its Taxable Income** to its **Shareholders.**
**REIT (Real Estate Investment Trust) -**
A company with at least **_100 investors_** that owns I**ncome Producing Real Estate** and provides **_Tax Favored Treatments to the Investors._**
1. Must invest at least **75% of its assets in real estate**
2. Must **pay out at least 90% of its taxable income** to its shareholders.
**Chap 12**
453
**Securities** -
The **Sale of Interest** in **Part\_\_\_\_\_\_\_, Cor\_\_\_\_\_\_, Tr\_\_\_\_ and Inv\_\_\_\_\_\_\_\_ Entities would be considered Securities**
**Securities** -
The **Sale of Interest** in **_Partnerships_**, _**Corporations**,_ **_Trusts**_ and _**Investment Entities_ would be considered Securities**
**Chap 12**
454
**Securities** -
1. **Regulated by "B\_\_\_ S\_\_ L\_\_\_\_"** and **Enforced by the Federal "Se\_\_\_\_\_ and Ex\_\_\_\_\_\_\_ C\_\_\_\_\_\_\_ (SEC)" and by the "Ar\_\_\_\_\_ C\_\_\_ Co\_\_\_\_\_\_\_\_."**
2. **R\_\_\_\_ E\_\_\_\_** **Ag\_\_\_\_** may **need Sec\_\_\_\_\_\_ License to sell Interest in these Entities.**
**Securities** -
1. **Regulated by "Blue Sky Laws"** and **Enforced by the Federal "Securities and Exchange Commission (SEC)" and by the "Arizona Corp Commission."**
2. **Real Estate** **Agents** may **need Securities License to sell Interests in these Entities.**
**Chap 12**
455
**Probate - *_Court proceeding_*** that..
1. **Val\_\_\_\_\_ the W\_\_**
2. **Totals A\_\_\_\_\_**
3. **Distributes A\_\_\_\_\_ to H\_\_\_\_\_**
**Probate - *_Court proceeding_*** that...
1. **Validates the Will**
2. **Totals Assets**
3. **Distributes Assets to Heirs**
**Chap 12**
456
**T\_\_\_\_\_\_ -** When Decedent **dies with a Will**.
1. **C\_\_\_\_ validates Will**
2. **A\_\_\_\_ pass to H\_\_\_ in W\_\_**
3. **T\_\_\_tor is Person who Makes W\_\_\_**
**Testate -** When Decedent **dies with a Will.**
1. **Court validates Will**
2. **Assets pass to Heirs in Will**
3. **Testator - Person who Makes Will**
**Chap 12**
457
Person who **makes a will** is?
**Testator -**
Person who **makes a will**
**Chap 12**
458
**In\_\_\_\_\_\_\_**
Decedent dies **"Without a Will"**
1. **A\_\_\_\_ pass to H\_\_\_ according to L\_\_\_\_**
**Intestate -**
Decedent dies **"Without a Will"**
1. **Assets pass to Heirs according to Law**
**Chap 12**
459
**Ad\_\_\_\_\_\_\_\_\_/\_\_\_\_\_\_\_trix**
**Person App\_\_\_\_\_\_ by Court** when no executor is named
**Administrator/Administratrix -**
**Person Appointed by Court** when no executor is named
**Chap 12**
460
**Right of S\_\_\_\_\_\_\_\_\_ (JTWRS or CPWRS) -**
When at **Death of One Joint Tenant** or Co-Owneer and that **Joint Tenant's/Co-Owner's Int\_\_\_\_\_ Passes Aut\_\_\_\_\_\_\_ to the Sur\_\_\_\_\_\_\_ Tenant(s) "_Without Probate."_**
**Right of Survivorship (JTWRS or CPWRS) -**
When at **Death of One Joint Tenant** or Co-Owner, and that **Joint Tenant's/Co-Owner's Interest Passes Automatically to the Surviving Tenant(s) "_Without Probate."_**
**Chap 12**
461
**Bl\_\_\_\_ S\_\_ Laws -**
Regulates Securities
**Blue Sky Laws -**
Regulates Securities
**Chap 12**
462
**C\_\_\_\_\_\_\_\_\_\_\_ -**
**Individual "Fee Simple Ownership**" **of Unit** with **"Sh\_\_\_\_ Own\_\_\_\_\_\_ of Com\_\_\_\_\_\_ Areas (Buildings, L\_\_\_, Pa\_\_\_\_, St\_\_\_ways, Pool), as Tenants In Common**
**Condominium -**
**Individual "Fee Simple Ownership**" **of Unit** with **"Shared Ownership of Common Areas (Buildings, Land, Parking, Stairways, Pool), as Tenants in Common**
**Chap 12**
463
**Involuntary Alienation**
**Forced Transfer** **through any of the following**:
1. **E\_\_\_\_ D\_\_\_\_\_** (Gov Takes Property)
2. **Ad\_\_\_\_\_ P\_\_\_\_\_\_\_\_** (Title by Court - **Not\_\_\_\_, O\_\_\_\_, Con\_\_\_\_\_, Ho\_\_\_\_ Use**)
3. **F\_\_\_\_\_\_\_\_\_** (Trust Deed-Lender takes Property)
**Involuntary Alienation -**
**Forced transfer** **through any of the following:**
1. **Eminent Domain** (Gov Takes Property)
2. **Adverse Possession** (Title by Court-Notorious, Open, Continous, Hostile use)
3. **Foreclosure** (Trust Deed-Lender takes Property)
**Chap 12**
464
**V\_\_\_\_\_ Al\_\_\_\_\_\_\_\_**
**An _Uncoerced Transfer_ by "Gift or Deed, or Document"**
**Voluntary Alienation -**
An **_Uncoerced Transfer_** by **"Gift or Deed, or Document"**
**Chap 12**
465
**E\_\_\_\_\_\_\_/E\_\_\_\_\_\_trix -**
**Person Named in Will** to carry out its provisions
**Executor/Executrix -**
**Person named in will** to carry out its provisions
**Chap 12**
466
**Severalty Ownership -**
1. **T\_\_\_\_\_\_ in Sev\_\_\_\_\_\_\_ which is S\_\_\_ and Sep\_\_\_\_\_\_\_ Ownership**
2. **Ownership by One Person**
3. **Pr\_\_\_\_\_ used to pass Estate to Heirs**
**Severalty Ownership -**
1. **Tenancy in Severalty (Sole and Separate Ownership)**
2. **Ownership by One Person**
3. **Probate - used to pass Estate to Heirs**
**Severalty - Condition of Being Separate**
**Chap 12**
467
**_Joint Tenancy with Right to Survivorship_** - **(Hint TTIP)**
1. **T-T\_\_\_\_ -** All joint tenants acquire Interest at **Same T\_\_\_\_\_**
2. **T-T\_\_\_ -** All joint tenants acquire Interest in **Same D\_\_\_**
3. **I-I\_\_\_\_\_\_\_ -** All joint tenants must hold **Eq\_\_\_ and Un\_\_\_\_\_ I\_\_\_\_\_.**
4. **P-P\_\_\_\_\_\_\_ -** All joint tenants have **Eq\_\_\_\_ R\_\_\_\_** to possess property fully.
**Joint Tenancy with Right to Survivorship -**
1. **T-Time -** All joint tenants acquire interest at same time
2. **T-Title -** All joint tenants acquire interest in same deed
3. **I-Interest -** All joint tenants must hold equal, undivided interest.
4. **P-Possession -** All joint tenants have equal rights to possess property fully
**Chap 12**
468
**JTWRS - Joint Tenants with Rights to Survivorship** -
**_Cannot take this Title Type_**
**C\_\_\_\_\_\_\_\_ "cannot" take this type of title** due to **Perpetual E\_\_\_\_\_\_\_**.
**JTWRS - Joint Tenants with Rights to Survivorship** -
**Corporations "cannot" take this type of title** due to **Perpetual Existence**.
**Perpetual - Never Ending and Changing**
**Chap 12**
469
**Under "Community Property"** what is **earned income**?
**Under Community Property -**
**Earned Income is community property**
**Chap 12**
470
**Under Community Property Title -**
**At Death of Spouse** his **share goes to H\_\_\_\_**, so there is **\_\_\_ Right to Survivorship.**
**Under Community Property Title -**
At Death of Spouse his **share goes to heirs**, so there is **no right to survivorship.**
**Chap 12**
471
**SEC - S\_\_\_\_\_\_\_\_ and Ex\_\_\_\_\_\_\_ Com\_\_\_\_\_\_\_ -**
**Enforces "Securites**" on a **F\_\_\_\_\_\_ Level**; and **Ar\_\_\_\_\_ Corp Com\_\_\_\_\_\_; and Bl\_\_ S\_\_ L\_\_\_\_ regulate them on a State Level.**
**SEC - Securities and Exchange Commission -**
**Enforce "Securites"** on a **Federal Level**; **and Arizona Corp Commission;** and **Blue Sky Laws** **Regulates them on a State Level.**
**Chap 12**
472
**AZ Co\_\_\_\_\_\_\_ C\_\_\_\_\_\_\_\_\_\_ -**
**_Enforces_ "Securites"** on a **State Level**.
**AZ Corporation Commission -**
**_Enforces_ Securites** on a **State Level**.
**Chap 12**
473
**Condo Owners -**
1. Owner - **Receives D\_\_\_\_**
2. Owner - Responsible for **Pr\_\_\_\_ T\_\_\_\_ and HOA Dues**
**Condo Owners -**
1. Owner - **Receives Deed**
2. Owner - Responsible for **Property Taxes and HOA Dues**
**Chap 12**
474
Condo Board of Directors meet how often?
**Condo Board of Directors -**
Meet **Annually**
**Chap 12**
475
In a Cooperative, who holds the deed to property?
**Cooperative (Title/Deed) -**
**Held by Corporation - Deed to Property**
**Chap 1 2**
476
**Cooperative (Buyer Holds) -**
**Buyer holds a Sto\_\_\_ Sh\_\_\_\_ in the Cor\_\_\_\_\_\_\_.** If Buyer (Owner) sells, he sells his **Sto\_\_\_ Sh\_\_\_\_**.
**Cooperative (Buyer Holds) -**
**Buyer holds a Stock Share in the Corporation.** If Buyer (Owner) sells; he sells his **Stock Share**
**Chap 12**
477
**Cooperative Taxes -**
**Corporation holds *title* *to building* and buyers purchase a *unit* as a *stock share*.**
**For Taxes:**
There is **Only O\_\_ T\_\_ St\_\_\_\_\_** for **Entire Coo\_\_\_\_\_\_\_\_.**
**Cooperative Taxes -**
**Corporation holds *title* *to building* and buyers purchase a *unit* as a *stock share*.**
There is **Only One Tax Statement** for **Entire Cooporative.**
**Chap 12**
478
**Securities "Sale of Interest" -**
**With any Business Entity** it is necessary to determine which **P\_\_\_\_\_ has Au\_\_\_\_\_\_ to Si\_\_ on the Entitie's behalf.**
**Securities "Sale of Interest" -**
**With any Business Entity** it is necessary to determine which **Person has Authority to Sign on the Entitie's behalf.**
**Chap 12**
479
**S\_\_ for P\_\_\_\_\_\_**
**_Legal Action**_ used to _**terminate_ a Tenancy in Common or Joint Tenancy.**
**Suit for Partition** -
**_Legal Action**_ used to _**terminate_ a Tenancy in Common or Joint Tenancy.**
**Chap 12**
480
**Joint Tenancy**
**Ownership shared by 2 or more people**, having **Right to Survivorship.**
1. Created by: **(T\_\_\_\_, T\_\_\_\_, In\_\_\_\_\_ and Pos\_\_\_\_\_)**
2. **Nat\_\_\_\_\_ Pe\_\_\_\_ Only** **(\*\*\*\*No Corps\*\*\*\*)**
3. Joint Tenants can **Convey In\_\_\_\_\_\_**.
4. **Automatic Sur\_\_\_\_\_\_\_**
5. **Joint Interest conveyed become Tenants in Common, where interest pass to Heirs**
**Joint Tenancy** -
**Ownership** shared by **2 or more people**, having **Right to Survivorship.**
1. Created by: **(Time, Title, Interest and Possession)**
2. **Natural Person Only (\*\*\*\*No Corps\*\*\*\*)**
3. Joint Tenants **can convey interest.**
4. **Automatic Survivorship**
5. **Joint Interest conveyed become Tenants in Common, where interest passes to Heirs**
**Chap 12**
481
**G\_\_\_\_\_\_\_ P\_\_\_\_\_\_\_\_\_\_**
In this partnership, **_each_ _partner_ has F\_\_\_ L\_\_\_\_\_\_ for D\_\_\_\_** of Partnership.
**General Partnership -**
**_Each_ _partner_ has Full Liability for Debts** of partnership.
**Chap 12**
482
Does **Tenancy in Common** have a **Right to Survivorship?**
**Tenancy in Common -**
**Has _NO_ Right to Survivorship. It passes to Heirs**
**Chap 12**
483
Tenancy in Severalty **what process** is used for decedent's estate?
**Tenancy in Severalty -**
At Decedent's Death the estate is processed through **Probate to pass to Heirs.**
484
**Tenancy in Common** -
What type of persons can take title?
**Tenancy in Common** -
**Both Natural or Legal Persons** may take title in this form.
**Chap 12**
485
Joint Tenancy -
What **can and cannot take title** under Joint Tenancy?
**Joint Tenancy -**
1. **_Natural Persons_** **- _Can_** take title
2. **_Corps, Cities, etc_** **- _Cannot_** take title.
**Chap 12**
486
**Real Estate Syndications** -
Pooling together Resources for Investment. **(Such as: Gen\_\_\_\_\_ or Lim\_\_\_\_\_ Partnerships; Cor\_\_\_\_\_\_, Limited L\_\_\_\_\_\_\_ Co; Tr\_\_\_; and REIT's.**
**Real Estate Syndications** -
Pooling together Resources for Investment. **(Such as: General or Limited Partnerships; Corporations, Limited Liabiility Co; Trust; and REIT's.**
**Chap 12**
487
What **_Two Types_** of **_Title_** pass without Probate?
**_Pass Automatically without Probate_** -
1. Joint Tenancy wtih Right to Survivorship
2. Community Property with Right to Survivorship (1944)
**Chap 12**
488
**_Tenancy in Common_** - has what type of Unity?
**Tenancy in Common** -
**_Unity_** - **Possession Only**
**Chap 12**
489
A man and his brother purchase a condo as joint tenants. Their Interest in the **common areas** would be held as:
1. Community Property
2. Joint Tenants
3. Tenants In Common
4. Severalty
A man and his brother purchase a condo as joint tenants. Their Interest in the **common areas** would be held as:
1. Community Property
2. Joint Tenants
3. **Tenants In Common**
4. Severalty
**Chap 12**
490
If a person owns a condominium they own:
1. Undivided Interest in Common Areas and a Separate Interest in the Unit
2. Undivided Interest in Whole, and Separate Interest in the Unit and Ownership of Land.
3. Separate Interest in the Whole
4. Divided Interest in Common Areas and Undivided Interest in the Unit
If a person owns a condominium they own:
1. **Undivided Interest in Common Areas and a Separate Interest in the Unit**
2. Undivided Interest in Whole, and Separate Interest in the Unit and Ownership of Land.
3. Separate Interest in the Whole
4. Divided Interest in Common Areas and Undivided Interest in the Unit
**Chap 12**
491
**Condominium Rules -**
The rules that govern the condo are found in the **B\_\_\_\_\_\_\_.**
**Condominium Rules -**
The rules that govern the condo are found in the **Bylaws.**
**Chap 12**
492
**The Condominium Rules are found in the**:
1. Master Deed
2. Bylaws and Corporate Chapter
3. Covenants, Conditions and Restrictions
4. Unit Owner's Deed
**The Condominium Rules are found in the**:
1. Master Deed
2. **Bylaws and Corporate Chapter**
3. Covenants, Conditions and Restrictions
4. Unit Owner's Deed
**Chap 12**
493
**An example of "Voluntary" Alienation is**
1. Aquisition by Eminent Domain
2. Assignment by an Attorney-In-Fact
3. Loss of Property through Avulsion
4. Escheat of Property after a Person Dies instestate
**An example of "Voluntary" Alienation is**
1. Aquisition by Eminent Domain
2. **Assignment by an Attorney-In-Fact**
3. Loss of Property through Avulsion
4. Escheat of Property after a Person Dies instestate
**Chap 12**
494
**Can anyone use Tenancy In Severalty to take title?**
**Tenancy In Severalty -**
**Yes** - **Natural or Legal person (Corps, Cities, Etc)** can take title in this form.
**Chap 12**
495
Uncoerced Transfer by Gift or Deed or Document.
**_Example:_** **Attorney-In Fact** is when someone voluntarily gives power to another to handle any decisions made in an isolated transaction.
**Voluntary Alienation -**
Uncoerced Transfer by Gift or Deed or Document
**_Example:_** **Attorney-In Fact** is when someone voluntarily gives power to another to handle any decisions made in an isolated transaction.
**Chap 12**
496
What Title can **Corporations not** **take**?
**Corporations -**
**Joint Tenants** - A Tile Corporations **_CANNOT TAKE_**, due to Perpetual Existance!
**Chap 12**
497
Any Property received as a Gift or Inheritane, Purchased with Separate Funds or Acquired before Marriage is considered
1. Community Property
2. Tenancy in Severalty Property
3. Separate Property
4. Probate Proceedings will decide
**Any Property received as a Gift or Inheritane, Purchased with Separate Funds or Acquired before Marriage is considered**
1. Community Property
2. Tenancy in Severalty Property
3. **Separate Property**
4. Probate Proceedings will decide
**Chap 12**
498
**If a Limited Partnership took ownership in a building, with "distinct" and "undivided interest" and each partner could used that building for anything at anytime, what type of Title did they take?**
1. Joint Tenancy
2. Community Property
3. Tenants In Common
4. Tenancy In Severalty since the General Partner assumes all liability
**If a Limited Partnership took ownership in a building, with "distinct" and "undivided interest" and each partner could used that building for anything at anytime, what type of Title did they take?**
1. Joint Tenancy
2. Community Property
3. **Tenants In Common**
4. Tenancy In Severalty since the General Partner assumes all liability
**Chap 12**
499
**Term** used in the law of real property to describe an **Act, by Court Order** to **Divide up a Concurrent Estate into Separate Portions** representing the **Proportionate Interests of the Owners of Property**. It is sometimes described as a Forced Sale.
**Suit for Partition -**
**Term** used in the law of real property to describe an **Act, by Court Order** to **Divide up a Concurrent Estate into Separate Portions** representing the **Proportionate Interests of the Owners of Property**. It is sometimes described as a Forced Sale
**Chap 12**
500
**(REIT) Real Estate Investment Trust -**
This pool of investors must **Invest \_\_\_% fo its Assets in Real Estate**. They must **Payout \_\_\_% of Taxable Income to all Shareholders.**
**(REIT) Real Estate Investment Trust -**
This pool of investors must Invest **75% fo its Assets in Real Estate.** They must **payout 90% of Taxable Income to all Shareholders.**
**Chap 12**
501
**Condo Owners -**
**Must Pay P\_\_\_\_\_\_ T\_\_\_ and HOA Dues. Rules governing Condos can be found in the B\_\_\_\_\_\_\_.**
**Condo Owners -**
**Must Pay Property Taxes and HOA Dues. Rules governing Condos can be found in the Bylaws.**
**Chap 12**
502
**Cooperative -**
Cooperation holds Title to Building. And a Buyer gets stock shares, But what is also given to the Buyer?
**Cooperatives -**
Cooperation holds Title to Building. And a Buyer gets stock shares AND is given **Proprietary Lease for Apt** **(No Deed is Given)**
**Chap 12**
503
When the **grantor "will re-aquire"** property, what is he called.
**Reverter -**
When the **grantor "will re-aquire"** property, he is called a Reverter
**Chap 11**
504
**Degree or Extent of Interest** a person **has in real property**. Synonymous with **r\_\_\_\_, t\_\_\_\_, in\_\_\_\_\_\_, ten\_\_\_\_, and eq\_\_\_\_.**
**Estate** -
**Degree** or **Extent of Interest** a person **has in real property**. Synonymous with **right, title, interest, tenancy, and equity.**
**Chap 11**
505
What are the two categories of Estates?
**Estates (2 Categories) -**
1. **_Freehold Estate:_** (Fee Simple Absolute, Defeasible Simple, Life Estates)
2. **_Leasehold Estate:_** (**Estate for Years**, **Period to Period**, **Estate at Will** - Permission, **Estate at Sufference** - Tenant Holding Over Wrongfully)
**Chap 11**
506
Which **3 types of Estates have an Ownership Interest**?
**Freehold Estates (Ownership Interest)** -
**_Fee Simple Absolute_**: Highest Form, All bundle of rights forever.
**_Deafeasible Fee Simple_**: (Conditional Ownership), if violated reverts back to Grantor (reverter)
**_Life Estates_** - Interest created by life of a certain person.
507
Which Type of Estate gives **Right to Possess and Use** of Another's Property.
**Leasehold Estate -**
Gives **Right to Possess and Use** of Another's Property.
**Chap 11**
508
What are the **_3 Types_** of **Freehold Estates**?
**Freehold Estates (Types)** -
1. **_Fee Simple Absolute_** (Highest Form of Ownership)
2. **_Defeasible Fee Simple_** (Conditional)
3. **_Life Estates_** (for Life of Certain Person)
**Chap 11**
509
Which type of **Freehold Estate** **gives Highest Form of Ownership, Absolute Ownership**, and **has all _Bundle of Rights Forever_**?
**Fee Simple Absolute**-
**Gives Highest Form of Ownership, Absolute Ownership** and **all _Bundle of Rights Forever_.**
**Chap 11**
510
Which type of **Freehold Estate** **gives _Conditional Ownership_**, and **Reverts Back to Grantor (Reverter), if violated?**
**Defeasible Fee Simple** -
**Conditional Ownership**, if violated Reverts Back to Grantor (Reverter).
1. **Fee Simple Determinable** (If Condition Occurs Ownership Ends)
2. **Fee Simple Subject To Condition Subsequent** (Condition Occurs Ownership May End)
3. **Fee Simple Subject To Executory Limitation** (Passes to 3rd Party)
**Chap 11**
511
Which type of **Freehold Estate** gives **Ownership Interest to a Life Tenant**?
**Life Estates** -
**Gives Ownership Interest** to certain person **(Life Tenant)** for their life.
**Chap 11**
512
**Conv\_\_\_\_\_\_\_ L\_\_ Estate -**
**_Estate created by One Person for Another_** Person (Life Tenant).
1. **Interest cannot be "Willed"**
2. **Waste cannot be committed.**
**Conventional Life Estate -**
**_Estate_** **_created by One Person for Another_** Person (Life Tenant).
1. **Interest cannot be "Willed"**
2. **Waste cannot be committed.**
**Chap 11**
513
**Deliberate damage** to property **by life tenant** is?
**Waste -**
**Deliberate damage** to property by life tenant
**Chap 11**
514
An "**Interest" held by Grantor (Reverter)** by which **Grantor will Re-aquire Interest** is called?
**Reversionary Interest (Estate in Reversion)** -
An **"Interest" held** by Grantor (Reverter) by which **Grantor will Re-aquire Interest.**
**_Example:_** Son creates life estate for Mom and at Mom's death interest "reverts back" to Son.
1. Mom holds a life estate **(Warranty Deed)**
2. Son holds a Reversionary Interest **(Estate in Reversion)**
**Chap 11**
515
**Life Estate** example, **what type of "Interest**" **does son hold?**
1. Mom holds life estate
2. Son is the grantor which will re-aquire estate.
**Reversionary Interest (Estate in Reversion)**
Life Estate example where:
1. Mom holds life estate
2. Son is the grantor which will re-aquire estate.
**Chap 11**
516
An **Interest held** by a **Another Person** **Than the Grantor** by which they will **Acquire a Greater Interest in the Future** (ex: death of grantor)?
**Remainder Interest (Person is: Remainderman) -**
An **Interest held** by a **Another Person Than the Grantor** by which they will **Acquire a Greater Interest in the Future** (example: death of grantor).
**Chap 11**
517
**Estate in Rem\_\_\_\_\_ (Rem\_\_\_\_\_\_\_ In\_\_\_\_\_\_)**
Son created Life Estate for Mom. **Son is** **Grantor but Holds No Interest**. **Sister will Acquire Interest upon Mom's death**. **What interest will Sis hold**?
**Estate in Remainder (Remainder Interest) - Sis holds this interest.**
**Life Estate where**: Son creates Life Estate for Mom. **Son is** **Grantor but holds No Interest.** **Sister will acquire interest upon Mom's death**.
**Chap 11**
518
**Life estate** where **Mom conveys Fee Simple Title to Son**, and **holds Life Estate for Herself**.
## Footnote
**What type of interest does Son hold?**
**Son holds - Remainder Interest (Estate in Remainder)**
**Life estate** where **Mom conveys Fee Simple Title to Son**, and **holds Life Estate for Herself**. **Son will hold Greater Interest in Future**
**Chap 11**
519
**Type of Estates** that gives **Right to Possess and Use Another's Property**. The Rights are **Evidence by Lease (Demise)**?
**Leasehold Estates (Conditional Ownership) -**
**Types of Estates** that **gives Right to Possess and Use of** **Another's Property .** The Rights are **Evidence by Lease (Demise)**
**Chap 11**
520
**Leasehold Estates Tenancies -**
1. **Estate for _____ (Tenancy)** - **Ending Date** and No Notice Needed
2. **Estate from \_\_\_\_\_\_\_** - **Indefinite Period** and **\*\*\*\*\*NOTICE NEEDED\*\*\*\*\*\***
3. **Estate at \_\_\_\_\_\_** - **Unspecified Permission** and No Notice Needed
4. **Estate of \_\_\_\_\_\_\_\_\_**- **Hold-over after Expiration**
**Leasehold Estates Tenancies -**
1. **_Estate for Years (Tenancy)_** - **Ending Date** and No Notice)
2. **_Estate from Period to Period_** - **Indefinite Period \*\*\*\*NOTICE NEEDED\*\*\*\*\***
3. **_Estate at Will_** - **Unspecified Permission**/No Notice
4. **_Estate of Sufferance_** - **Hold-over after Expiration**
**Chap 11**
521
Which **Leasehold Estate** **has a Ending Date**, but requires **"no notice"** to terminate?
**Estate Tenancy for Years (ENDS) -**
1. **Ending Date** (Specified Time)
2. **_No Notice_** - to terminate
**Chap 11**
522
Which Leasehold Estate has an **Indefinite Duration**, and **REQUIRES NOTICE to terminate**?
**Estate Period to Period** -
1. **Indefinite Duration** (No End Date) - Month to Month, Year to Year
2. **REQUIRED \*\*\*\*NOTICE NEEDED\*\*\*\***
**Chap 11**
523
Which **Leasehold Estate** **gives**
1. **_Permission/Privilege to Use_**
2. **Unspecified Time Frame**
3. **_No Notice**_ to _**Terminate_**
**Estate at _Will_**
1. **_Permission/Privilege to Use_**
2. **Unspecified Time Frame**
3. **_No Notice_** to **_Terminate_**
**Chap 11**
524
**Tenant** **remains** on property **after lease expires** is what type of tenancy?
**Holdover Tenancy -**
Tenant **remains** on property **after lease expires**
**Chap 11**
525
**A Lease** in which the **Lessee (becomes Sub-Lessor)** by **_entering_ into a "_separate lease_**" with **another Lessee (who become Sub-Lessee)?**
**Sublease (Sandwich Lease)** -
**A Lease** in which the **Lessee (becomes Sub-Lessor)** by **_entering_** into a **"_separate lease_"** with **another Lessee (who becomes Sub-Lessee)**. Sub-Lessee pays rent to Lessee/Sub-lessor, who pays Landlord/Lessor.
**Chap 11**
526
A Lease where the **_Lessee (Assignor)_ _transfers all rights_ to lease to _3rd party**_ _**(Assignee)_** who takes over lease and **who pays Lessor directly**?
**Assignment of Lease** -
A lease where the **_Lessee (Assignor)**_ _**transfers all rights_ to lease to _3rd party (Assignee)_** who takes over lease and **who pays Lessor directly**
**Chap 11**
527
**Liability in a Sublease (Sandwich)**
1. **Sandwich** - Sub-Lessee (2nd Lessee) **Liable to Orig. Lessee(Sub-Lessor) -**
* **Liable to Landlord/Lessor - \_\_\_\_\_\_\_\_\_\_\_**
1. **Assignment** - Assignor-Lesee and Assignor (3rd Party) -
* **Liable to Landlord/Lessor - \_\_\_\_\_\_\_\_\_\_\_**
**Liability in a Sublease (Sandwich)**
1. **Sandwich** - Sub-Lessee (2nd Lessee) **Liable to Orig. Lessee(Sub-Lessor)**
* **Liable to Landlord/Lessor - _Orig Lessee/Sub-Lessor_**
1. **Assignment** - Assignor-Lessee and Assignor (3rd Party)
* **Liable to Landlord/Lessor - _Both_**
**Chap 11**
528
**Liability in Assignment** -
1. **_Assignor_ re-asigns Lease to (3rd Party)**
2. **_Assignee/Sub-Lessee_ (takes of over lease) and PAYS LANDLORD RENT**
3. *Who is Liable to Landlord for non-payment?*
**Liability in Assignment** -
1. **_Assignor_ re-asigns Lease to (3rd Party)**
2. **_Assignee/Sub-Lessee_ (takes of over lease) and PAYS LANDLORD RENT**
3. **Liable to Lessor/Landlord - Both**
529
**Rent stated in Lease** is called?
**Contract Rent -**
**Rent stated** in Lease
**Chap 11**
530
**Current Market Rent** that could be obtained is called?
**Economic Rent** -
**Current Market Rent** that could be obtained
**Chap 11**
531
**Lease in which** the "**Economic Rent is higher**" than **Contract Rent**
**Positive Leasehold** -
Lease in which the **"Economic Rent is higher"** than **Contract Rent.**
**Chap 11**
532
**Lease** in which the **"Contract Rent is higher"** than the **Economic rent.**
**Negative Leasehold** -
Lease in which the **"Contract Rent is higher"** than the **Economic Rent**
**Chap 11**
533
**T\_\_\_\_\_\_ Im\_\_\_\_\_\_\_\_\_**
**_Alterations_ or _Improvements_** **to a** **"leased space"** to configure the space for the **tenant's needs**. Made by owner or leaseholder to make it more appealing or useful for tenant.
**Tenant Improvements** -
**_Alterations_ or _Improvements_** **to a "leased space"** to configure the space for the **tenant's needs.** Made by owner or leaseholder to make it more appealing or useful for tenant.
**Chap 11**
534
**Made up of** **_roof_, _walls_, _floor_, _windows_, and _doors_**. **Everything that separate the inside** **of a building from the outside!**
**Building Shell** -
**Made up of** **_roof_, _walls_, _floor_, _windows_, and _doors_**. **Everything that separate the inside** **of a building from the outside!**
**Chap 11**
535
**C\_\_\_\_\_\_\_ of Oc\_\_\_\_\_\_\_** - **Gov Cert**
**_Government Certificate_** stating **commercial** **building is in Compliance with "_Building Codes_"** and **"_Suitable for Occupancy_"**
**Certificate of Occupancy** - **Gov Cert**
**_Government Certificate_** stating **commercial building is in Compliance with "_Building Codes_"** and **"_Suitable for Occupancy_"**
**Chap 11**
536
**(CAMs) Com\_\_\_ Area M\_\_\_\_\_\_\_\_ Charges** -
**_Fees charged_ to _Commercial Tenants_** **for Parking Lots, Walkways, Area Lighting etc.**
**(CAMs) Common Area Maintenance Charges** -
**_Fees charged_** to **_Commercial Tenants_** **for Parking Lots, Walkways, Area Lighting etc.**
**Chap 11**
537
**Ex\_\_\_\_\_ St\_\_\_ - (Tenant Pays Increase Tax and Utilities)**
1. _**Landlord's** **Operating Expenses**_ - **Provision Limit**
2. **_Tenant Pays Increases In_ - Ta\_\_, He\_\_\_\_/Co\_\_\_\_\_.**
**Expense Stop - (Tenant Pays Increase Tax and Utilities)**
1. **_Landlord's Operating Expenses_ - Provision Limit**
2. **_Tenant Pays Increases In_ - Taxes, Heating/Cooling.**
**Chap 11**
538
**Development _Project_** by which **developer completes building, and it becomes "Move in Ready"**
**Turnkey Project -**
**Development** **_Project_** by which **developer completes building, and it becomes "Move in Ready"**
**Chap 11**
539
**7 Ways to Terminate a Lease** -
1. **Sur\_\_\_\_\_ and Acc\_\_\_\_\_\_\_**
2. **Exp\_\_\_\_\_** **of Term** **(Estate for Years - Ends)**
3. **Em\_\_\_\_\_ Dom\_\_\_\_**
4. **Actual Ev\_\_\_\_\_** **(Breach of Tenant**)
5. **Constructive Ev\_\_\_\_\_** (**Breach of Landlord**)
6. **Dest\_\_\_\_\_\_** **of Property**
7. **Foreclosure of Mor\_\_\_\_\_\_** **(Protect Tenants At Forclosure Act - 90 days)**
**7 Ways to Terminate a Lease** -
1. **Surrender** **and Acceptance**
2. **Expiration** **of Term (Estate for Years - Ends)**
3. **Eminent Domain**
4. **Actual Eviction (Breach of Tenant)**
5. **Constructive Eviction** **(Breach of Landlord**)
6. **Destruction** **of Property**
7. **Foreclosure of Mortgage** **(Protect Tenants At Forclosure Act - 90 days)**
**Chap 11**
540
**Sur\_\_\_\_\_\_ and A\_\_\_\_\_\_\_\_** -
**Mutual Agreement** **to End** **Lease** is?
**Surrender and Acceptance** -
**Mutual Agreement to End** the Lease
**Chap 11**
541
**Estate for Years** how does this terminate?
**Estate Tenancy for Years (Ends) -**
**Ending Date (Expiration of Term)** Terminates Lease - **No Notice**
**Chap 11**
542
**Eminent Domain - Condem\_\_\_\_\_\_\_ Clause**
**Clause that "Cancels Lease"** **if Eminent Domain is exercised.** (Usually found in commercial lease).
**Eminent Domain - Condemnation Clause**
**Clause that "Cancels Lease**" **if Eminent Domain is exercised.** (Usually found in commercial lease).
**Chap 11**
543
**A\_\_\_\_\_ E\_\_\_\_\_\_\_ - (Tenant Breach)**
1. When **Tenant fails to Perform Obligations**,
2. **_Lessor Sues for Possession_**.
**Actual Eviction - (Tenant Breach)**
1. When **Tenant fails to Perform Obligations,**
2. **_Lessor Sues for Possession_**.
**Chap 11**
544
**C\_\_\_\_\_\_\_\_ E\_\_\_\_\_\_\_ - (Landlord Breach)**
When **Landlord fails to Perform** **Obligations.** **_Tenant_ _can_ _Terminate_ and Sue for Damages.**
**Constructive Eviction - (Landlord Breach)**
When **Landlord fails to Perform Obligations.** **_Tenant_ _can_ _Terminate_ and Sue for Damages.**
**Chap 11**
545
Can destruction of property terminate a lease?
**Yes -**
Destruction of property can terminate a lease
**Chap 11**
546
**"Protecting Tenants at Foreclosure Act"** -
1. Give tenants min of **\_\_\_ days** and **Notice to Vacate OR**
2. **Honor Remaining Term of** **Lease -** if greater than 90 days.
**"Protecting Tenants at Foreclosure Act"** -
1. Give tenants min of **90 days** and **Notice to Vacate. OR**
2. **Honor Remaining** **Term of Lease** if greater than 90 days.
**Chap 11**
547
How does death effect a **_Lease**_ or _**Sale of Property_**?
**How Death Effects Lease/Sale of Property** -
1. **_Death (Lessor/Lessee)_** - **does not terminate!**
2. **_Sale of Property_** - **does not terminate**
**Chap 11**
548
**Lessor's Rights -**
1. **Receives R\_\_\_**
2. **Rev\_\_\_\_\_\_\_\_ Right** (termination of lease)
**Lessor's Rights -**
1. Receives **Rent**
2. **Reversionary Right** (termination of lease)
**Chap 11**
549
**Right of Q\_\_\_\_\_ En\_\_\_\_\_\_** -
**Use of P\_\_\_\_\_ without Inter\_\_\_\_\_\_\_\_\_ by Lessor** or others claiming superior title.
**Right of Quiet Enjoyment** -
**Use of Property without Interference** **by Lessor** or others claiming superior title.
**Chap 11**
550
**Tr\_\_\_ Fi\_\_\_\_\_\_ - Operation of Biz**
1. **Tenant's Personal Property** used in **"Operation of Business"****(Examples: Draperies, Machinery**.)
2. **Must "_Remove_" before Termination of Lease.**
**Trade Fixtures - Operation of Biz**
1. **Tenant's Personal Property** used in Operation of Business **(Examples: Draperies, Machinery)**.
2. **Must "_Remove_" before Termination of Lease**
**Chap 11**
551
Ownership is created for Life of a Person, **what is holder called**?
**Life Tenant -**
When ownership is created for life of a person, that person is called a Life Tenant.
**Chap 11**
552
Life estate for Mom and at Mom's death will revert back to grantor (Son), is what type of Estate?
**Estate in Reversion -**
Life estate for Mom and at Mom's death will revert back to grantor (Son)
**Chap 11**
553
Grantor creates life estate for Mom, and after her death it reverts to Sister. What type of Estate?
**Estate In Remainder -**
Grantor creates life estate for Mom, and after her death it reverts to Sister. **Sister also know as Remainderman.**
**Chap 11**
554
When an Estate is created for One Person, but reverts to another other than grantor. That person is called?
**Remainderman -**
When an estate is created for one person, but reverts someone other than Grantor.
**Chap 11**
555
Another word for Lease is?
**Demise -**
Another word for **Lease**
**Chap 11**
556
Another word for Landlord
**Lessor -**
Another word for **Landlord**
**Chap 11**
557
Another word for Tenant
**Lessee -**
Another word for Tenant
**Chap 11**
558
**Estate at S\_\_\_\_\_\_\_\_\_\_ -**
**Existing lease terminated**, but "**_Tenant is "Holding Over_" wrongfully**. **_Rent neither Paid/Accepted._**
**Estate at Sufferance -**
**Existing lease terminated**, but **"_Tenant is "Holding Over_" wrongfully**. **_Rent neither Paid/Accepted._**
**Chap 11**
559
**Gr\_\_\_ Lease - (Lessor Pays Expenses)**
1. **Rent** is a **"Fi\_\_\_ Amount"** for tenant.
2. **Lessor** Pays **ALL** **"P\_\_\_\_\_\_ Ex\_\_\_\_\_."**
**Gross - Without Deduction**
**Gross Lease - (Lessor Pays Expenses)**
1. **Rent is a "Fixed Amount"** for tenant.
2. **Lessor** Pays ALL **"Property Expenses."**
**Gross - Withiout Deduction**
**Chap 11**
560
**_Net Lease aka Triple Net Lease_ - (Tenant Pays Expenses)**
**_Tenant Pays_**:
1. **F\_\_ Am\_\_\_\_\_ Rent**, plus
2. **Property Exp\_\_\_\_, Ut\_\_\_, Real Estate T\_\_\_\_, Ins\_\_\_\_\_ Pre\_\_\_\_\_, Mai\_\_\_\_\_\_**
**Landlord Pays:**
1. **Mor\_\_\_\_\_ (Debt Service)**
**_Net Lease aka Triple Net Lease_ - (Tenant Pays Expenses)**
**_Tenant Pays_**:
1. **Fix Amount Rent**, **PLUS**
2. **Property Expenses, Utilities, Real Estate Taxes, Insurance Premiums, Maintenance**
**Landlord Pays:**
1. **Mortgage (Debt Service)**
**Chap 11**
561
**Percentage Lease - (% of Gross Sales Paid)**
1. **Base Minumum Rent paid, plus % of Gr\_\_\_ S\_\_\_ Volume**
2. **Common: Retail Space Ex: Shopping Malls**
**Percentage Lease - (% of Gross Sales Paid)**
1. **Base Minimum Rent paid, plus % of Gross Sales Volume**
2. **Common: Retail Space Ex: Shopping Malls**
**Chap 11**
562
**Lease for "Land Only"**
**Ground Lease -**
Lease for **"Land Only"**
**Chap 11**
563
**Sale Leaseback - (Rent Tax Deductable)**
**Seller sells _Property to Investor_, which Leases Property B\_\_ to S\_\_\_\_\_.**
**_Benefits to Seller (Tenant)_**
1. **Frees up Working Ca\_\_\_\_\_**
2. **Rent - Tax Ded\_\_\_\_\_\_**
**_Disadvantages to Seller (Tenant)_**
1. **No More Dep\_\_\_\_\_\_ or Ap\_\_\_\_\_\_ for Taxes**
**Sale Leaseback - (Rent Tax Deductable)**
***Seller sells _Property to Investor_, which Leases Property Back to Seller.***
**_Benefits to Seller (Tenant)_**
1. **Frees up Working Capital**
2. **Rent - Tax Deduction**
**_Disadvantages to Seller (Tenant)_**
1. **No More Depreciation or Appreciation for Taxes**
**Chap 11**
564
**Grad\_\_\_\_\_\_ Lease - (Rent Increase/Decrease)**
**Lease with an Es\_\_\_\_\_\_ Clause** that calls for **_Increase/Decreases in Rent_ at specified intervals.**
**Graduated Lease - (Rent Increase/Decrease)**
**Lease with an Escalator Clause** that calls for **_Increase/Decreases in Rent_ at specified intervals.**
**Chap 11**
565
**Es\_\_\_\_\_\_\_\_ Clause -**
1. **_Definition_** - In a lease or contract that **guarantees a change in the agreement price once a particular factor beyond control of either party affecting the value has been determined (Ex: Inflation)**
2. **_Purchase Contract_:** **Buyer Will Pay** a certain amount of **Money above the Hi\_\_\_\_\_ Offer** **the Seller Receives.**
3. **_Commercial Leases_:** Rent Increases by % and tide to Consumer Price Index. **Operating Expenses Increase by Annual Budget Basis and collected as Rent Increases.**
**Escalator Clause -**
1. **_Definition_** - In a lease or contract that **guarantees a change in the agreement price once a particular factor beyond control of either party affecting the value has been determined (Ex: Inflation)**
2. **_Purchase Contract_:** **Buyer Will Pay** a certain amount of **Money above the Highest Offer** **the Seller Receives.**
3. **_Commercial Leases_:** Rent Increases by % and tide to Consumer Price Index. **Operating Expenses Increase by Annual Budget Basis and collected as Rent Increases.**
**Chap 11**
566
**Lease with Rent is tied to an Index**, such as **_Consumer Price Index_**. **Can go up or down.**
**Index Lease -**
**Lease with Rent is tied to an index,** such as **_Consumer Price Index_**. **Can go up or down.**
**Chap 11**
567
**An\_\_\_\_ Lease - (Major Tenant)**
**Lease with a _Major Tenant_** such as a **"Dep\_\_\_\_\_\_ Store or Sup\_\_\_\_\_\_\_\_."**
**Anchor Lease - (Major Tenant)**
**Lease with a _Major Tenant_** such as a **"Department Store or Supermarket."**
**Chap 11**
568
**L\_\_\_\_ O\_\_\_\_\_\_ -**
**_Lease_** with **Option to Buy or Re-Lease. Option is a right to buy or lease a property within "specified period," for a "specified price and term."**
**Lease Option -**
**_Lease_** with **Option to Buy or Re-Lease. Option is a right to buy or lease a property within "specified period," for a "specified price and term."**
**Chap 11**
569
**Lease in a Cooperative** in which the tenant has the right to rent a particular unit from a corporation. (usually in a corporate lease)
**Proprietary Lease -**
**Lease in a Cooperative** in which the tenant has the right to rent a particular unit (usually in a corporate lease)
**Chap 11**
570
**Section 8 Lease**
**"Federal R\_\_\_ Subsidy Program"** for **Low-to-Moderate Inc\_\_\_\_ Fam\_\_\_\_** that **"pays a portion" of the Tenant's Rent to the Landlord.**
**Section 8 Lease -**
**_Federal Rent Subsidy Program_** for **_Low-to-Moderate Income Families_** that **"pays a portion" of the Renant's Rent to the Landlord.**
**Chap 11**
571
**Freehold/Lease Estates -**
1. **Fee Simple** - **Hi\_\_\_\_\_ Own\_\_\_\_\_\_**
2. **Defeasible Fee Simple - Con\_\_\_\_\_\_\_ Ownership**
3. **Life Estate - Interest for Life of A\_\_\_\_\_\_ Person**
4. **Leasehold Estate - R\_\_\_\_ to Pos\_\_\_\_\_ and Use of Another Property**
**Freehold/Lease Estates -**
1. **Fee Simple** - Highest Ownership
2. **Defeasible Fee Simple** - Conditional Ownership
3. **Life Estate** - Interest for Life of Person
4. **Leasehold Estate** - Right to Possess and Use Another's Property
**Chap 11**
572
**Types of Tile -**
1. **Severalty** - Sole and Separate
2. **Community** - Property in Marriage (heirs).
3. **CPWRS** - Passes to Surviving spouse
4. **JTWRS** - Passes to surviving Joint Tenants - **NO CORPS** **(Time Title Interest Possess)**
5. **Tenants in Common** - Undivided interests, heirs, (Possession)
**Types of Tile -**
1. **Severalty** - Sole and Separate
2. **Community** - Property in Marriage (heirs).
3. **CPWRS** - Passes to Surviving spouse
4. **JTWRS** - Passes to surviving Joint Tenants - **NO CORPS** **(Time Title Interest Possess)**
5. **Tenants in Common** - Undivided interests, heirs, (Possession)
**Chap 11**
573
**Cur\_\_\_\_** -
The **life estate** that a **husband has in the estate of his deceased wife**
**Curtesy -**
The **life estate** that a **husband has in the estate of his deceased wife**
**Chap 11**
574
**Ejectment** -
**_Legal Proceeding_** to **Reg\_\_\_\_ Pos\_\_\_\_\_** of the property **for Breach of Lease**...aka - **Forcible En\_\_\_\_ & Det\_\_\_\_\_ Action. (Actual Eviction- Tenant Breach)**
**Ejectment** -
**_Legal Proceeding_** to **regain possession** of the property **for Breach of Lease**...aka - **Forcible Entry & Detainer Action. This is Actual Eviction (Tenant Breach)**
**Chap 11**
575
**Gift of Personal Property** through a Will
**Bequest (Legacy)** -
**Gift of Personal Property** through a Will
**Chap 11**
576
**Trade Fixtures - Biz Operations**
1. **Tenant's Pe\_\_\_\_\_\_ Pro\_\_\_\_\_\_\_** used in **"_Operation of Business_**." **Ex: Draperies, Machinery**
2. **Must "R\_\_\_\_\_" before Termination**
**Trade Fixtures - Bus Operations**
1. **Tenant's Personal Property** used in **"Operation of Business"** **Ex: Draperies, Machinery**.
2. **Must "_Remove_" before Termination**
**Chap 11**
577
**Trade Fixtures - Biz Operations**
1. **Tenant's Pe\_\_\_\_\_\_ Pro\_\_\_\_\_\_\_** used **in "Operation of Business." Ex: Draperies, Machinery**
2. **Must "R\_\_\_\_\_" before Termination**
**Trade Fixtures - Biz Operations**
1. **Tenant's Personal Property** used **in "Operation of Business."** **Ex: Draperies, Machinery**
2. **Must "Remove" before Termination**
**Chap 11**
578
**C\_\_\_\_\_\_\_**
The **life estate that a husband has** in the estate of his deceased wife
**Curtesy -**
The **life estate that a husband has** in the estate of his deceased wife
**Chap 11**
579
**Gift of Personal Property** through a "**_Will_**."
**Bequest (Legacy)** -
**Gift of** **Personal Property** through a "**_Will_**."
**Chap 11**
580
**B\_\_\_\_\_\_ (Legacy)**
**Gift of Personal Property** by **_Will_**
**Bequest (Legacy)** -
**Gift of Personal Property** by **_Will_**
**Chap 11**
581
**B\_\_\_\_\_\_ (Legacy)**
**Gift of Personal Property** through a "**_Will_**."
**Bequest (Legacy)** -
**Gift of Personal Property** through a "**_Will_**."
**Chap 11**
582
**Freehold Estates (Ownership Interest)** -
1. **Fee Simple Ab\_\_\_\_\_\_\_**: Highest Form, All bundle of rights forever.
2. **D\_\_\_\_\_\_\_\_\_ Fee Simple**: **(Conditional Ownership),** if violated reverts back to Grantor (reverter)
3. **L\_\_\_\_ Estates** - Interest created by life of a certain person.
**Freehold Estates (Ownership Interest)** -
1. **_Fee Simple Absolute_**: Highest Form, All bundle of rights forever.
2. **_Deafeasible Fee Simple_**: **(Conditional Ownership)**, if violated reverts back to Grantor (reverter)
3. **_Life Estates_** - Interest created by life of a certain person.
**Chap 11**
583
**(CAMs) Common Area Maintenance Charges** -
**Fees charged** to **_Commercial Tenants_** **for P\_\_\_\_ Lots, Wal\_\_\_\_, Area Li\_\_\_\_\_\_ etc.**
**(CAMs) Common Area Maintenance Charges** -
**Fees charged** to "**_Commercial Tenants_**" **for Parking Lots, Walkways, Area Lighting etc.**
**Chap 11**
584
**Ex\_\_\_\_\_\_ S\_\_\_\_ - (Tenant Increase Tax-Utilities)**
1. **Landlord's Op\_\_\_\_\_\_ Ex\_\_\_\_\_\_\_ (Provision Limit Expense)**
2. **Tenant pays **_Increase_**s in T\_\_\_\_, and Utilities such as He\_\_\_\_/Co\_\_\_\_\_.**
**Expense Stop - (Tenant Increase Tax-Utilities)**
1. **Landlord's Operating Expenses (Provision Limit Expense)**
2. **Tenant pays _Increases_ in Taxes, Utilities such as Heating/Cooling.**
**Chap 11**
585
**Def\_\_\_\_\_\_\_ F\_\_\_\_ S\_\_\_\_\_\_** -
**Conditional Ownership**, if violated **Reverts Back** to Grantor (Reverter).
**Defeasible Fee Simple** -
**Conditional Ownership**, if violated Reverts Back to Grantor (Reverter).
1. **Fee Simple Determinable** (If Condition Occurs Ownership Ends)
2. **Fee Simple Subject To Condition Subsequent** (Condition Occurs Ownership May End)
3. **Fee Simple Subject To Executory Limitation** (Passes to 3rd Party)
**Chap 11**
586
**Freehold Estates (Ownership Interest)** -
**F\_\_ S\_\_\_\_\_\_ Ab\_\_\_\_\_\_**: Highest Form, All bundle of rights forever.
**D\_\_\_\_\_\_\_\_ F\_\_ S\_\_\_\_\_\_**: (Conditional Ownership), if violated reverts back to Grantor (reverter)
**L\_\_\_ Es\_\_\_\_\_** - Interest created by life of a certain person.
**Freehold Estates (Ownership Interest)** -
**_Fee Simple Absolute_**: Highest Form, All bundle of rights forever.
**_Deafeasible Fee Simple_**: (Conditional Ownership), if violated reverts back to Grantor (reverter)
**_Life Estates_** - Interest created by life of a certain person.
**Chap 11**
587
**Estate** -
**Deg\_\_** or **Ext\_\_\_\_\_ of Int\_\_\_\_\_** a person **has in real property**. Synonymous with **right, title, interest, tenancy, and equity.**
**Estate** -
**Degree** or **Extent of Interest** a person **has in real property**. Synonymous with **right, title, interest, tenancy, and equity.**
**Chap 11**
588
**Ej\_\_\_\_\_\_\_\_**
**The proper way to remove a person other than a tenant who is in possession of real property.**
**Ejectment -**
**The proper way to remove a person other than a tenant who is in possession of real property.**
589
**F\_\_\_\_\_\_ Entry and D\_\_\_\_\_\_ Action**
**A _court proceeding_ used to evicted a tenant** for **Breach of One or More Provisions of the Lease Agreement.** Valid reasons for eviction may include:
1. **Failure to Pay Rent on time**
2. **Harboring Pets or Persons "not authorized" to reside at the premises under the Lease**
3. **Illegal or Criminal Activity on the Property**
**Forceble Entry & Detainer Action -**
**A _court procee_ding used to evicted a tenant** for **Breach of One or More Provisions of the Lease Agreement.** Valid reasons for eviction may include:
1. **Failure to Pay Rent on time**
2. **Harboring Pets or Persons "not authorized" to reside at the premises under the Lease**
3. **Illegal or Criminal Activity on the Property**
**Chap 11**
590
**(CAMs) C\_\_\_\_\_ A\_\_\_ Main\_\_\_\_\_ Charges -**
**Fees charged to "Commercial Tenants"** for **_Parking Lots**_, _**Walkways**_, _**Area Lighting_** etc.
**(CAMs) Common Area Maintenance Charges -**
**Fees charged to "Commercial Tenants"** for **_Parking Lots**_, _**Walkways**_, _**Area Lighting_** etc.
**Chap 11**
591
**Right to Buy or Lease a Property within a Specified Period for a Specified Price and Terms**. **_Holder of Option_:** **may or may not choose to Exercise the Right**. Only binding on Optionor(Owner).
**Option -**
**Right to Buy or Lease a Property within a Specified Period for a Specified Price and Terms**. **_Holder of Option_: may or may not choose to Exercise the Right. Only binding on Optionor(Owner)**.
**Chap 11 (From Chap 3)**
592
**In a lease with an option to purchase the option is enforceable by:**
1. Optionor
2. Optionee
3. Either Party
4. Nether Party
**In a lease with an option to purchase the option is enforceable by:**
1. Optionor
2. **Optionee**
3. Either Party
4. Nether Party
**Chap 11**
593
**The BEST example of a percentage lease would be a lease in which the rent was a percentage of the tenant's**
1. Gross Income
2. Net Income
3. Net Receipts with a Minimum Rent
4. Gross Receipts with a Minimum Rent
**The BEST example of a percentage lease would be a lease in which the rent was a percentage of the tenant's**
1. Gross Income
2. Net Income
3. Net Receipts with a Minimum Rent
4. **Gross Receipts with a Minimum Rent**
**Chap 11**
594
**A tenant is leasing a property which the tenant is interested in buying. The owners are not sure they want to sell at this time. What type of contract would give the owners the most freedom.**
1. Option
2. Purchase Contract
3. Right of First Refusal
4. Lease-Option
**A tenant is leasing a property which the tenant is interested in buying. The owners are not sure they want to sell at this time. What type of contract would give the owners the most freedom.**
1. Option
2. Purchase Contract
3. **Right of First Refusal**
4. Lease-Option
595
**A tenant rents a commercial space and installs a range above an oven used in the tenant's business. The range hood is an:**
1. Improvement to the Property and Part of Real Estate
2. Fixture which is Permanently attached and Cannot be removed
3. Trade Fixture and can be Removed by the Tenant prior to the Lease Expiration
4. Trade Fixture which can be Removed if the Tenant pays the Landlord for the Cost of the Range Hood
**A tenant rents a commercial space and installs a range above an oven used in the tenant's business. The range hood is an:**
1. Improvement to the Property and Part of Real Estate
2. Fixture which is Permanently attached and Cannot be removed
3. **Trade Fixture and can be Removed by the Tenant prior to the Lease Expiration**
4. Trade Fixture which can be Removed if the Tenant pays the Landlord for the Cost of the Range Hood
**Chap 11**
596
**B Sold a property to Y and reserved a Life Estate for himself. Y recorded the deed. B sold his Life Estate to D who recorded the deed. Y demanded the property pass to her in Fee Simple Title immediately. In this case:**
1. Y's claim is invalid beacuse B controls his interest while alive
2. Y's claim is valid
3. Neither Y nor B have a claim to this property
4. B needed to obtain Y's permission to make the transfer.
**B Sold a property to Y and reserved a Life Estate for himself. Y recorded the deed. B sold his Life Estate to D who recorded the deed. Y demanded the property pass to her in Fee Simple Title immediately. In this case:**
1. **Y's claim is invalid beacuse B controls his interest while alive**
2. Y's claim is valid
3. Neither Y nor B have a claim to this property
4. B needed to obtain Y's permission to make the transfer.
597
**Under tthe Federal Protecting Tenants at Foreclosure Act all the following are correct EXCEPT:**
1. Tenants must receive at lease 90 Days Notice to Vacate
2. Leases that were in force prior to the beginning of Foreclosure must be honored
3. Tenants who are evicted must receive Cash for Keys
4. The Act does not Protect Commerical Tenants
**Under tthe Federal Protecting Tenants at Foreclosure Act all the following are correct EXCEPT:**
1. Tenants must receive at lease 90 Days Notice to Vacate
2. Leases that were in force prior to the beginning of Foreclosure must be honored
3. **Tenants who are evicted must receive Cash for Keys**
4. The Act does not Protect Commerical Tenants
**Chap 11**
598
The **"Income Remaining" after Operating Expenses _deducted**_ _**from_** the **Gross Income (Annual Rent Collected)**
**Net Operating Income -**
The **"Income Remaining" after Operating Expenses _deducted from_** the **Gross Income (Annual Rent Collected)**
**Chap 10**
599
**Income Approach Methods are:**
1. **Cap\_\_\_\_\_\_\_** - (Income = Value x Rate)
2. **G\_\_\_\_\_ Rent M\_\_\_\_\_\_** - Value/GI =
3. **Recon\_\_\_\_\_\_\_\_ Data** - 3 Appraisal Methods Together
**Income Approach Methods are:**
1. **_Capitalization_** - (Income = Value x Rate)
2. **_Gross Rent Multiplier_** - Value/GI = GRM
3. **_Reconciliation Data_** - 3 Appraisal Methods Together
**Chap 10**
600
**Ec\_\_\_\_\_\_\_ L\_\_\_**
**_Period of time_** of which a **Property will _Produce Income._**
**Economic Life -**
**_Period of time_** of which a **Property** **will _Produce Income._**
**Chap 10**
601
**Gross Annual Income - Operating Expenses** equals what?
**Net Income aka Net Operating Income -**
**Gross Annual Income - Operating Expenses**
**Chap 10**
602
**Rate of Return** an **Investor wants to receive** for a property is called?
**Capitalization Rate (Cap Rate)** -
**Rate of Return** an **investor wants to receive** for a property.
**Chap 10**
603
Using the **_Capitalization Method_**, how do you **determine Value?**
**Capitalization Method - To Determine _Value_**
**Net Income (yr) / Cap Rate(Rate of Return) = Value**
* **Formula: (I=RV)**
* _Net Income (Yr)_
* Value x Cap Rate
**Chap 10**
604
What is sometimes used to **determine "_Value_**" on **Smaller Income Properties**?
## Footnote
**V=GGI**
**(GRM) Gross Rent Multiplier for _Smaller Income_ _Properties_ - Formula V=GGI**
**Answer: GRM x Gross Income (Mo) = Value**
* _Value_
* GRM x Gross Inc Mo (Subj)
**Chap 10**
605
What is formula to **determine _Value_ for Small Income Properties using GRM**?
## Footnote
**V=GGI**
**Formula** to **determine Value** **for Small Income Properties, using** **GRM**
**_Answer:_** **GRM X Gross Inc (Mo) = Value-Price**
* _Sales Price_ **Formula V=GGI**
* Gross Inc Mo x GRM
**Chap 10**
606
**(EPA) Env\_\_\_\_\_\_\_ Prot\_\_\_\_\_\_ Ag\_\_\_\_**
Regulates **_Federal_** **Environmental Rules and Laws.**
**(EPA) Environmental Protection Agency** - **Federal**
Regulates **_Federal_ Environmental Rules and Laws.**
**Chap 10**
607
**(ADEQ) Ar\_\_\_\_ Dept of Env\_\_\_\_\_\_\_\_\_ Q\_\_\_\_\_\_**
Sets **_State_ Environmental Standards**
**(ADEQ) Arizona Dept of Environmental Quality** -
Sets **_State_ Environmental Standards**
**Chap 10**
608
**(ADWR) A\_\_\_\_\_\_ Dept of W\_\_\_\_ R\_\_\_\_\_\_** -
**Regulates** use of **Ground Water**
**(ADWR) Arizona Dept of Water Resources** -
**Regulates** use of **Ground Water**
**Chap 10**
609
**(ADRE) Arizona D\_\_\_ of R\_\_\_ E\_\_\_\_\_ -**
Must **_obey_** **Commissioner's Rules Requirements** to Disclosure
**(ADRE) Arizona Dept of Real Estate -**
Must **_obey_** **Commissioner's Rules Requirements** to Disclosure
**Chap 10**
610
**HUD Title __ (Requirements) -**
Lead Base requirements are found under **HUD Title \_\_** for **Pre-1978 Building's with Lead Paint.**
**HUD Title X (Requirements) -**
Lead Base requirements are found under **HUD Title X** for **Pre-1978 Building's with Lead Paint**.
**Chap 10**
611
**Lead Base Paint (HUD Title X)**
1. **Built Pre \_\_\_\_**- **Disclose** Presence of **Known Lead** in Residential Homes
2. **R\_\_\_\_\_ - Provide Buyer/Leasee** with
3. **"Lead Base P\_\_\_\_\_ P\_\_\_\_\_\_"** - Provide Buyer
4. **Risk Assessment Inspection** - **Purchaser has ___ dys** or agreed time to conduct
5. **Dis\_\_\_\_\_/Ack\_\_\_\_\_\_\_\_ Language** -**Sales/Lease Contracts** must include.
**Lead Base Paint (HUD Title X) -**
1. **Built Pre 1978** - **Disclose** Presence of **Known Lead** in Residential Homes
2. **Records -** Provide Buyer/Leasee with
3. **"Lead Base Paint Pamphlet"** - Provide Buyer
4. **Risk Assessment Inspection** - Purchaser has **10 days** or agreed time to conduct
5. **Disclose/Acknowlegment Language** -**Sales/Lease Contracts** must include.
**Chap 10**
612
**R\_\_\_\_\_**
1. **Natural Odorless**, _Tasteless_ **Radioactive Gas** -
2. **Causes L\_\_\_ C\_\_\_\_\_**
**Radon -**
1. **Natural Odorless**, _Tasteless_ **Radioactive Gas** -
2. **Causes Lung Cancer**
**Chap 10**
613
**Asb\_\_\_\_\_\_\_**
1. **Tiny Airborne Fi\_\_\_**
2. **Creates Resp\_\_\_\_\_\_ Diseases**
**Asbestos -**
1. **Tiny Airborne Fiber** -
2. **Creates Respiratory Diseases**
**Chap 10**
614
**M\_\_\_\_**
1. Caused by **Ex\_\_\_\_ Moi\_\_\_\_**
2. **Airtight Windows**
**Mold -**
1. Caused by **Excess Moisture**
2. **Airtight Windows**
**Chap 10**
615
**Surface and Ground Water Contamination** -
**Types of contamination:**
1. **Conta\_\_\_\_\_\_** **Well S\_\_\_\_**
2. **Underground** **Pl\_\_\_\_\_**
3. **W\_\_\_\_ Disp\_\_ Sy\_\_\_\_**
4. **Le\_\_king** **Underground** **Stor\_\_\_ Ta\_\_\_ (LUST)**
**Surface and Ground Water Contamination** -
**Types of contamination:**
1. **Contaminated Well Sites**
2. **Underground Plumes**
3. **Waste Disposal** **Systems**
4. **Leaking** **Underground** **Storage Tank (LUST)**
**Chap 10**
616
**Soil Contamination (4)**
1. **Pestic\_\_\_\_\_**
2. **Herbic\_\_\_\_**
3. **Fert\_\_\_\_\_ and**
4. **Sol\_\_\_\_\_\_**
**Soil Contaminations as follows** -
1. **Pesticides**
2. **Herbicides**
3. **Fertilizers and**
4. **Solvents**
**Chap 10**
617
**Expansive Soil -**
**Soils** that may **Ab\_\_\_\_\_ W\_\_\_\_ and Ex\_\_\_\_**
**Expansive Soil -**
**Soils** that may **Absorb Water and Expand**
**Chap 10**
618
**Fiss\_\_\_**
**Cracks** that occur on **_Valley Floors_** **from Extensive Groundwater Withd\_\_\_\_\_**
**Fissures -**
**Cracks** that occur on **_Valley Floors_** from **Extensive Groundwater Withdrawal**
**Chap 10**
619
**B\_\_\_\_\_\_\_**
**Def\_\_\_\_**, **Aban\_\_\_\_\_\_ Commercial** **or Industrial Site contaminated with _Toxic Waste_.**
**Brownfield -**
**_Defunct_**, **_Abandoned_ Commercial** **or Industrial Site** **contaminated with _Toxic Waste_.**
**Chap 10**
620
**Disc\_\_\_\_\_\_ aka D\_\_ Dil\_\_\_\_\_\_\_** -
Process of **Investigating the Property** to determine if **_Hazardous Substances or Pollution exist_**. **Agent exercises Reasonable Skill and Care and must Disclose**
**Discovery aka Due Diligence** -
Process of **Investigating the Property** to determine if **_Hazardous Substances or Pollution exist_**. **Agent exercises Reasonable Skill and Care and must Disclose.**
**Chap 10**
621
**Phase 1 Assessment** -
Process of **Inspecting Property**, the **Rev\_\_\_ of Public Records** and **Int\_\_\_\_\_\_\_ Owners/Tenants** to determine if **Contamination** **Exist.**
**Phase 1 Assessment** -
Process of **_Inspecting_** **_Property_**, the **_Review_** **of** **_Public Records_** and **_Interviewing_ Owners/Tenants** to determine if **Contamination Exist**.
**Chap 10**
622
**Phase 2 Assessment** -
Process of **Taking** **S\_\_\_\_\_ to Analyze if Poll\_\_\_\_\_\_ exists.**
Remember: **_Phase 1_** - **Inspecting Property; Review Public Records, Interview Owners/Tenants to determin if contamination exists.**
**Phase 2 Assessment** -
Process of **_Taking_** **_Samples_ taken to Analyze if Pollution exists.**
Remember: **_Phase 1_** - **Inspecting Property; Review Public Records, Interview Owners/Tenants to determin if contamination exists.**
**Chap 10**
623
**Phase 3 Assessment** -
**C\_\_\_\_ Samples** taken and **Ac\_\_\_\_ C\_\_\_\_-Up** of **Contamination**
**Phase 3 Assessment** -
***Core Samples*** taken and **_Actual_ _Clean-up_ of Contamination**
**Chap 10**
624
**Superfund/Mini-Superfund - Property Location -**
**R\_\_\_\_\_ must Dis\_\_\_\_\_** **Knowledge** of property **located in boundaries of Super or Mini-Superfund** as per **Real Estate Comissioner**
**Superfund/Mini-Superfund - Property Location -**
**Realtor must Disclose** **Knowledge** of property **located in boundaries of Super or Mini-Superfund** as per **Real Estate Comissioner**
**Chap 10**
625
**Superfund** -
**Fund set up by Federal (CERCLA) Compre\_\_\_\_\_\_\_ Env\_\_\_\_\_\_\_ Response Compen\_\_\_\_\_\_** and **Lia\_\_\_\_\_ Act** **to bear Cost of Clean Up**
**Superfund** -
**Fund set up by Federal (CERCLA**) **_Comprehensive Environmental Response Compensation and Liability Act_ to bear Cost of Clean Up**
**Chap 10**
626
**Mini-Superfund -**
**Fund is set up by _State_ (WQARF)** **W\_\_\_ Q\_\_\_\_ Ass\_\_\_\_ Rev\_\_\_\_\_ F\_\_\_\_**
1. **Bears cost of Clean-Up that CERCLA does not cover.**
**Mini-Superfund -**
**Fund set up by _State_ (WQARF) _Water Quality Assurance Revolving Fund_**
1. **Bears cost of Clean-Up that CERCLA does not cover.**
**Chap 10**
627
**(CERCLA) Compre\_\_\_\_\_\_\_ Env\_\_\_\_\_\_\_ Resp\_\_\_\_ Comp\_\_\_\_\_\_\_\_\_ and Liab\_\_\_\_\_\_ Act** -
1. **Superfund** set up by the **Federal CERCLA** to bear **Cost of Clean Up** of **Polluted Property.**
**(CERCLA) Comprehensive Environmental Response Compensation and Liability Act** -
1. **Superfund** set up by the **Federal CERCLA** to bear **Cost of Clean Up** of **Polluted Property.**
**Chap 10**
628
**(WQARF) W\_\_\_ Q\_\_\_\_\_ Ass\_\_\_\_\_ Rev\_\_\_\_\_ F\_\_\_** -
1. **Mini Superfund** set up by **Arizona Law known as WQARF** to bear **Cost of Clean-Up not covered by CERCLA**.
**(WQARF) Water Quality Assurance Revolving Fund** -
1. **Mini Superfund** set up by **Arizona Law known as WQARF** to bear **Cost of Clean-Up not covered by CERCLA**.
**Chap 10**
629
**AZ On-Site Wastewater Facilities** -
1. **Seller** - **Has __ Months prior to Transfer** **of Property,** to have **System** **Insp\_\_\_\_\_ and Pum\_\_\_\_ and/or Cl\_\_\_\_\_\_.**
2. **Seller** - Give the Buyer **"Insp\_\_\_\_\_\_ Report"**
3. **Buyer** - **_Notice of Transfer_** completed within **\_\_ days** **of Purchase**
4. **_Percolation_** - **Ability for Gr\_\_\_\_\_ to Ab\_\_\_ and Dr\_\_\_\_ Water** **before Installation** of **Sep\_\_\_ Tank**
5. **_Perc Test_ - _Suitablity_ for Inst\_\_\_\_\_\_ of S\_\_\_\_ Tank**
6. **_Compaction_** - **Compr\_\_\_\_\_ Soil added** **to Site** to **F\_\_\_ in Low Area to Make Level**
**AZ On-Site Wastewater Facilities** -
(Septic Tanks and Alternative Systems)
1. **Seller** - **Has** **_6 Months_ prior to Transfer** **of Property,** to have **System Inspected and Pumped and/or Cleaned.**
2. **Seller** - Give the Buyer **"Inspection Report"**
3. **Buyer** - **_Notice of Transfer_** completed within **_15 Days_** of **Purchase**
4. **_Percolation_** - **Ability for Ground to _Absorb_ and _Drain_ Water before Installation of Septic Tank**
5. **_Perc Test_ - _Suitablity_ for Installation of Septic Tank**
6. **_Compaction_** - **Compressed Soil added** to **Site** to **Fill in Low Areas to Make Level**
**Chap 10**
630
**On-Site** **Wastewater Facilities - Notice of Transfer**
## Footnote
**Buyer has __ days from Purchase to complete "Notice of Transfer"**
**On-Site** **Wastewater Facilities - Notice of Transfer**
**Buyer has _15 days_ from Purchase to complete
"_Notice of Transfer_"**
**Chap 10**
631
**Perc Test** -
**Test** done to determine **Suitability of Site for Insta\_\_\_\_\_ of S\_\_\_\_ T\_\_\_.**
**Perc Test** -
**Test** done to determine **_Suitability_ of Site for Installation of Septic Tank**
**Chap 10**
632
**Seller's Responsibility** - **On-Site** **Wastewater Facilities**
1. **Within __ mos** **prior to Transfer,** **Seller to have** **System Insp\_\_\_\_\_, Pu\_\_\_\_\_ or Cl\_\_\_\_\_; then Cert\_\_\_\_**
2. **Provide** **Buyer** with **In\_\_\_\_\_ Report**
**Seller's Responsibility** **- On-Site** **Wastewater Facilities**
1. **Within _6 mos_** **prior to Transfer**, **Seller to have system _Inspected_, _Pumped_ or _Cleaned_; then Certified**
2. **Provide** Buyer with **Inspection Report**
**Chap 10**
633
**Perc\_\_\_\_\_\_\_ -**
**Ability of Ground** to **_Absorb_ and _Drain_ Water.**
**Percolation -**
**Ability of Ground** to **_Absorb_ and _Drain_ Water.**
**Chap 10**
634
**Compa\_\_\_\_\_\_ -**
**Compressed Soil** added to **Site to Fill Low Areas** **to Make Level**
**Compaction -**
**Compressed Soil** added to **Site to Fill Low Areas** **to Make Level**
**Chap 10**
635
**S\_\_\_\_ L\_\_\_\_\_\_**
**All Owners Current and Previous** are **Responsible for Polluted Properties**
**Strict Liability -**
**All Owners Current and Previous** are **responsible for Polluted Properties**
**Chap 10**
636
**(EPA) Env\_\_\_\_\_\_\_ Pro\_\_\_\_\_\_\_ Ag\_\_\_\_\_**
1. Regulates **_Federal_** **Environment Rules and Laws**
**(EPA) Environmental Protection Agency**
1. Regulates **_Federal_** **Environment Rules and Laws**
**Chap 10**
637
**(ADEQ) AZ D\_\_\_ of Env\_\_\_\_\_ Q\_\_\_\_\_**
1. Sets **_State_** **Environmental Standards**
**ADEQ (stands for) -** AZ Dept of Environmental Quality
1. Sets **State** E**nvironmental Standards**
**Chap 10**
638
**G\_\_\_\_ R\_\_\_ M\_\_\_\_\_\_\_ -**
What is used to determine **"Values" on _Small_ _Income_ _Properties_.**
**Gross Rent Multiplier -**
What is used to determine "**Values"** on **_Small**_ _**Income**_ _**Properties_**.
**Chap 10**
639
**Recon\_\_\_\_\_\_\_ of D\_\_\_ -**
Process of Bringing Data Together from the **Three Apraisal Methods** to arrive at a **Final Estimated Value**.
**Reconciliation of Data -**
Process of Bringing Data Together from the **Three Apraisal Methods** to arrive at a **Final Estimated Value**.
**Chap 10**
640
**Lic\_\_\_\_\_\_ Ap\_\_\_\_\_\_ -**
May Appraise **Non-Complex __ Family Units** valued at **Less than $1,000,000.**
**Licensed Appraiser -**
May Appraise **Non-Complex 1-4 Family Units** valued at **Less than $1,000,000.**
**Chap 10**
641
**Cert\_\_\_\_ Res\_\_\_\_\_\_ Ap\_\_\_\_\_\_ - 1-4 Fam**
May Appraise **"All Types of 1-4 Family Units" (1 Million Plus)**
**Certified Residential Appraiser - 1-4 Fam**
May Appraise **"All Types of 1-4 Family Units" (1 Million Plus)**
**Chap 10**
642
**Cert\_\_\_\_\_ Gen\_\_\_\_ Appraiser - ALL**
May appraise **_All Types_ of Properties**
**Certified General Appraiser - ALL**
May appraise **_All Types_ of Properties**
**Chap 10**
643
**Ap\_\_\_\_\_ M\_\_\_\_\_\_\_ C\_\_\_\_\_ -**
Company that acts as **"Firewall" between Lender and Appraiser** to _Prevents Lender_ from _Choosing_ Appraiser Directly.
**Appraisal Mgmt Company -**
Company that acts as **"Firewall" between Lender and Appraiser** to _Prevents Lender_ from _Choosing_ Appraiser Directly.
**Chap 10**
644
**Com\_\_\_\_\_\_ M\_\_\_\_\_\_ A\_\_\_\_\_\_**
**Analysis of Current Market Conditions** used to _Help_ _Consumer_ **determine** **List Price, Sales Price/Purchase Price.**
**Competitive Market Analysis** -
**Analysis of Current Market Conditions** used to _Help_ _Consumer_ **determine** **List Price, Sales Price/Purchase Price.**
**Chap 10**
645
**B\_\_\_\_\_ P\_\_\_\_ O\_\_\_\_\_\_ -**
**Evaluation prepared by a Broker/Sales Person for Lender** for a **Property in Sho\_\_ S\_\_\_, For\_\_\_\_\_, or Ho\_\_ E\_\_\_\_ Line of Credit.**
**Broker Price Opinion -**
**Evaluation prepared by a Broker/Sales Person for Lender** for a **Property in Short Sale, Foreclosure, or Home Equity Line of Credit.**
**Chap 10**
646
**Fl\_\_\_p\_\_\_ -**
**Flat portion of Land** located along **Rivers or Streams** which are **Subject to Flooding**.
**Floodplain -**
**Flat Portion of Land** located along **Rivers or Streams** which are **Subject to Flooding.**
**Chap 10**
647
**FEMA - F\_\_\_\_ Emer\_\_\_\_\_\_ Man\_\_\_\_ Ag\_\_\_\_\_\_ -**
**Develop Flo\_\_\_\_\_ M\_\_\_**. If Home in **Flo\_\_\_\_** **Area**, Lender will **Require Flood Ins\_\_\_\_\_\**_ _**Purchased_** **_by Buyer_**.
**FEMA - Federal Emergency Mgmt Agency -**
**Develop Floodplain Maps**. if Home in **Floodplain** **Area**, Lender will **Require Flood Insurance** to be **Purchased by Buyer**.
**Chap 10**
648
**National Flood Insurance -**
**Operated by FEMA,** **_provides_** **Insurance** to **O\_\_\_\_, Te\_\_\_\_, and B\_\_\_\_\_\_**
**National Flood Insurance -**
**Operated by FEMA**, **_provides_** **Insurance** to **_Owners_**, **_Tenants**_, and _**Businesses_**.
**Chap 10**
649
**Fl\_\_\_\_ Elev\_\_\_\_\_ Certificates -**
**Used by _FEMA**_ and _**Private Insurance Companies_**
1. **"_TO RATE_" Fl\_\_\_\_ Ins\_\_\_\_\_\_ Policies.**
**Flood Elevation Certificates - Rate Insurance**
**Used by _FEMA**_ and _**Private Insurance Companies:_**
**"_TO RATE_" Flood Insurance Policies.**
**Chap 10**
650
**Wetlands -**
**Land areas where Ground\_\_\_\_\_ is "at or near" the surface** so as to produce a **W\_\_\_\_ Plant Com\_\_\_\_\_. These Areas Subject** to many **_Federal_, _State_ and _Local_ Environmental Controls** for **Pre\_\_\_\_\_\_\_ and Con\_\_\_\_\_\_\_.**
**Wetlands -**
**Land areas where Groundwater is "at or near" the Surface** so as to produce a **Wetland Plant Community. These Areas Subject** to many **_Federal**_, _**State**_ and _**Local**_ _**Environmental Controls_** for **"_Preservation_" and "_Conservation_."**.
**Chap 10**
651
**Capitalization -**
Process of Converting **N\_\_ I\_\_\_\_ into V\_\_\_\_\_\_**
**Capitalization -**
Process of Converting Net Income into Value.
**Gross Income - Operating Income = NOI**
**Chap 10**
652
**Income = Value x Rate**
A property produces a **Net Income of $24,000 Annually.** The Market indicates that Investors can expect a **12% Rate of Return**. **What is the Value of Property.**
**Income = Value x Rate**
A property produces a **Net Income of $24,000 Annually.** The Market indicates that Investors can expect a **12% Rate of Return**. **What is the Value of Property.**
**IRV FORMULA Net Annual Income = Value x Rate**
**24,000 (Income) \ .12 (rate) = 200,000 (value)**
**Chap 10**
653
A **Property Valued at $1,500,000** has a **Gross Income of $250,000** and **Operating Expenses of 40% of Gross Income.****If the Cap Rate Increases by 1%**; What will the New Value be?
* _Income NOI_
* Value x Rate
A **Property Valued at $1,500,000** has a **Gross Income of $250,000** and **Operating Expenses of 40% of Gross Income.****If the Cap Rate Increases by 1%**; What will the New Value be? I=RV
**_Find Income_**: $250,000 x 60% = $150,000 **NOI**
**_Find Cap Rate_:** $150,000 (I) / $1,500,000 (V) = 10% (R)
**Find New Value**: $150,000 (Inc) X 11% = $1,363,636.36
655
**A property produces a Net Income $24,000 Annually. The market indicates the Investor can expect a 12% Rate of Return. What is the Value of Property?**
**A property produces a Net Income $24,000 Annually. The market indicates the Investor can expect a 12% Rate of Return. What is the Value of Property?**
* **_Income (Annual)_**
* **Value x Rate**
**$24,000 (Inc) / 12% = $200,000 Value**
656
**A Property Valued at $1,500,000 has a Gross Income of $250,000 and Operating Expenses of 40% of Gross Income. If Cap Rate increase by 1% what will New Value be?**
**A Property Valued at $1,500,000 has a Gross Income of $250,000 and Operating Expenses of 40% of Gross Income. If Cap Rate increase by 1% what will New Value be?**
**_Formula_**: **(IRV)** Net Income = Value x Rate
**Find Net Inc $250,000 (Inc) x 60% = $150,000 NOI**
**Find Cap $150,000 (NOI) / $1,500,000 = 10% Rate**
**Rate Change $1,500,000 x 11% = 1,363,636.36**
657
**A comparable Duplex Sold for $96,000 and rented for $800 per month. If the Subject Property rents for $775, what is its Value using GRM**
**A comparable Duplex Sold for $96,000 and rented for $800 per month. If the Subject Property rents for $775, what is its Value using GRm**
**_Formula_: Value = Gross Inc x GRM**
**_Find GRM for Comp_: $96,000 (V) / $800(mo) = 120**
**_Apply to Subj_: 120 (GRM) x $775 = 93,000 Value**
658
**What causes Lung Cancer?**
**Radon -**
1. **Natural Odorless**, _Tasteless_ **Radioactive Gas** -
2. **Causes Lung Cancer**
**Chap 10**
659
**_Three Type of Appraisers:_**
1. **_License Appraiser_** - _Non-Complex_ 1-4 Res Units - **under 1 M\_\_\_\_**
2. **_Cert Res Appraiser_** -All Types 1-4 Res **M\_\_\_\_ Plus**
3. **_Cert Gen Appraiser_** - **All Types of Property**
**_Three Type of Appraisers:_**
1. **_License Appraiser_** - _Non-Complex_ **_1-4 Res Units_** - **Under 1 Million**
2. **_Cert Res Appraiser_** -**All Types** **_1-4 Res Units_ Million Plus**
3. **_Cert Gen Appraiser_** - **All Types of Property**
**Chap 10**
660
**National Fl\_\_\_\_ Ins\_\_\_\_\_ -**
**Operated by FEMA,** **_provides_** **Insurance** to **_Owners_, _Tenants_, and _Businesses_**
**National Flood Insurance -**
**Operated by FEMA**, **_provides_** **Insurance** to **_Owners_**, **_Tenants**_, and _**Businesses_**.
**Chap 10**
661
**Na\_\_\_\_\_ Fl\_\_\_\_ In\_\_\_\_\_\_ -**
**Operated by FEMA,** **_provides_** **Insurance** to **_Owners_, _Tenants_, and B\_\_\_\_\_\_**
**National Flood Insurance -**
**Operated by FEMA**, **_provides_** **Insurance** to **_Owners_**, **_Tenants**_, and _**Businesses_**.
**Chap 10**
662
**National Flood Insurance -**
**Operated by FEMA,** provides **Insurance** to **O\_\_\_\_, Te\_\_\_\_, and B\_\_\_\_\_\_**
**National Flood Insurance -**
**Operated by FEMA**, provides **Insurance** to **_Owners_**, **_Tenants**_, and _**Businesses_**.
**Chap 10**
663
**Fl\_\_\_\_ Elev\_\_\_\_\_ Certificates -**
**Used by _FEMA**_ and _**Private Insurance Companies_**
1. **"_TO RATE_" Fl\_\_\_\_ Ins\_\_\_\_\_\_ Policies.**
**Flood Elevation Certificates - Rate Insurance**
**Used by _FEMA**_ and _**Private Insurance Companies:_**
**"_TO RATE_" Flood Insurance Policies.**
**Chap 10**
664
**W\_\_\_\_\_\_\_\_ -**
**Land areas where Ground\_\_\_\_\_ is "at or near" the surface,** so as to produce a **W\_\_\_\_ Plant Com\_\_\_\_\_. These Areas Subject** **Environmental Controls** for **Preservation and Conservation.**
**Wetlands -**
**Land areas where Groundwater is "at or near" the Surface** so as to produce a **Wetland Plant Community. These Areas Subject** to many **_Federal**_, _**State**_ and _**Local**_ _**Environmental Controls_** for **"_Preservation_" and "_Conservation_."**.
**Chap 10**
665
**Compared to the Physical Life of a building, the Economic Life is:**
1. Longer
2. Shorter
3. The Same
4. Based on the Type of Improvements
**Compared to the Physical Life of a building, the Economic Life is:**
1. Longer
2. **Shorter**
3. The Same
4. Based on the Type of Improvements
**Chap 10**
666
**The Income Approach would be relied on Most Heavily in estimating the Value of:**
1. An Office Building
2. A Cooperative Apartment
3. A Municipal Building
4. Vacant Land
**The Income Approach would be relied on Most Heavily in estimating the Value of:**
1. **An Office Building**
2. A Cooperative Apartment
3. A Municipal Building
4. Vacant Land
**Chap 10**
667
**S\_\_\_\_\_\_\_\_ Property**
Has a **Negative Psychological Impact** **on Prospective Buyers**. This affects Home Value, making the house harder to sell at full price regardless of its location or physical condition.
**_Examples**_ Site of an _**Infamous Murder_** or **Suicide** or a house with a reputation for **_Paranormal Activity_**.
**Stigmatized Property -**
Has a **Negative Psychological Impact** **on Prospective Buyers**. This affects Home Value, making the house harder to sell at full price regardless of its location or physical condition.
**_Examples**_ Site of an _**Infamous Murder_** or **Suicide** or a house with a reputation for **_Paranormal Activity_**.
**Chap 10**
668
**Which of the follwing situations would be considered to be a Sigma on a House?**
1. Pink Walls
2. A Murder that Occured in the Basement
3. A Deteriorating Neighborhood
4. One Bathroom
**Which of the follwing situations would be considered to be a Sigma on a House?**
1. Pink Walls
2. **A Murder that Occured in the Basement**
3. A Deteriorating Neighborhood
4. One Bathroom
**Chap 10**
669
**A Brownfield in an area causes loss in value to neighboring properties. This is an example:**
1. Economic Obslescense
2. Economic Quality
3. Economic Life
4. Functional Obsolescence
**A Brownfield in an area causes loss in value to neighboring properties. This is an example:**
1. **Economic Obslescense**
2. Economic Quality
3. Economic Life
4. Functional Obsolescence
**Chap 10**
670
**_Estimate_ or _Opinion of Value_** and supported by an **Analysis of Facts.**
**Appraisal -**
**_Estimate_ or _Opinion of Value_** and supported by an **Analysis of Facts**
**Chap 9**
671
**(AVM) Aut\_\_\_\_\_\_\_ Val\_\_\_\_\_\_ Mod\_\_\_\_**
**Appraisal** made by **Placing** **Data into an Algorithm**
**(AVM) Automated Valuation Model** -
**Appraisal** made by **Placing** **Data into an Algorithm**
**Chap 9**
672
**Or\_\_\_\_\_\_\_**
Way **Building** is "**_Situated on Lot_**"
**Orientation -**
Way **Building** is "**Situated on Lot**."
**Chap 9**
673
**Dir\_\_\_\_\_\_\_nal G\_\_\_\_\_\_**
Way **Community is Developing**
**Directional Growth** -
Way **Community is Developing**
**Chap 9**
674
**Greater Properties "_Positively Effect**_ _**Value"_** of **Lesser Properties**
**Principle of Progression** -
**Greater Properties "_Positively Effect_ _Value_**" of **Lesser Properties**
**Chap 9**
675
**F\_\_\_ C\_\_\_ V\_\_\_\_ aka Ass\_\_\_\_\_ Val\_\_\_\_**
**Value** for **Tax Purpose**
**Full Cash Value; Assessed Value** -
**Value** for **_Tax Purpose_**
**Limited Prop Value x Assessed Value Ratio** **=** **Assessed Value**
**Chap 9**
676
**Ins\_\_\_\_ V\_\_\_\_**
**_Value_** when **Building Destroyed**
**Insurance Value** -
**_Value_** when **Building Destroyed**
**Chap 9**
677
**U\_\_\_\_\_**
**_Capacity of_** **_Product_ to "_Satisfy Human Need_"**
**Utility -**
**_Capacity of_** **_Product_ to "_Satisfy Human Need_"**
**Chap 9**
678
**T\_\_\_\_\_\_\_\_\_**
Relative _Ease of Transferring_ Ownership
**Transferability** -
Relative _Ease of Transferring_ Ownership
**Chap 9**
679
**Principal of R\_\_\_\_\_\_\_\_**
**_Presence_ of Lesser Properties** **"_Adversely Affect**_ _**Value_**" of Greater Properties
**Principal of Regression** -
**_Presence_ of Lesser Properties**"**_Adversely Affect_** **_Value_**" of Greater Properties
**Chap 9**
680
**_Major Elements_ of _Value_ - DUST:**
1. **Dem\_\_\_**
2. **U\_\_\_\_,**
3. **Sc\_\_\_\_**
4. **T\_\_\_\_\_\_\_\_\_\_**
**_Major Elements_ of _Value_ -**
**DUST:**
1. Demand,
2. Utility,
3. Scarcity
4. Tranferability
**Chap 9**
681
**Mar\_\_\_ V\_\_\_\_ -**
Amount willing **Buyer Will Pay** and willing **Seller Would Accept**
**Market Value -**
**Amount** willing buyer **will pay** and willing **seller would accept**
**Chap 9**
682
**M\_\_\_\_ P\_\_\_\_\_\_**
**Amount _Given and Taken_** for a Property
**Market Price** -
**Amount _Given and Taken_ for a Property**
**_Arms Length transaction_** - one in which parties have equal bargaining positions.
**Chap 9**
683
Amount of **money to Build Brand New**?
**Cost** -
Amount of **money to Build Brand New**
**Chap 9**
684
**Principle of H\_\_\_\_\_ and B\_\_\_ Use -** **Use of property** that brings **Greatest N\_\_\_ Ret\_\_\_\_**
1. **Only O\_\_ Highest and Best use at any one time**
2. **Based on _Net Income_ and takes: Z\_\_\_, Bui\_\_\_\_ C\_\_\_\_ and Surrounding M\_\_\_\_ into account.**
3. **Excess Land: Does N\_\_ Support Highest and Best Use**
**Principle of Highest and Best Use** - **Use of property** that brings **Greatest _Net_ _Return_**
1. **Only _One_ Highest and Best use at any one time**
2. **Based on _Net Income_ and takes: _Zoning_, _Building Codes_ and _Surrounding Market_ into account.**
3. **Excess Land: _Does Not_ Support Highest and Best Use**
**Chap 9**
685
**Principle of Sub\_\_\_\_\_\_\_\_\_**
**No reasonable person will pay more** for a property **than they would pay for a duplicate**
**Will Not Pay More for Duplicate**!
**Principle of Substitution** -
**No reasonable person will pay more** for a property **than they would pay for a duplicate**
**Will Not Pay More for Duplicate**!
**Chap 9**
686
**Principle of Su\_\_\_ and De\_\_\_\_**
**The idea that Value** is **_affected by**_ the _**Scarcity_ and _Desire_.**
**Principle of _Supply_ and _Demand_** -
The idea that **Value** is **_affected by**_ the _**Scarcity**_ and _**Desire._**
**Chap 9**
687
**Principle of C\_\_\_\_\_\_\_\_**
**_Value_ will** **_Remain Stable_** in area with **Reasonable _Conformity_.**
**Principle of Conformity** -
**_Value_ will** **_Remain Stable_** in area with **Reasonable Conformity.**
**Chap 9**
688
**D\_\_\_\_\_**
**Amount of "Desire"** **to buy** a product
**Demand -**
**Amount of desire** to buy a product
**Chap 9**
689
**Principle of C\_\_\_\_\_\_\_\_**-
Idea that **_Excess Profits_ can _Increase Competition_ which _Destroys Profits_**
**Principle of Competition** -
Idea that **_Excess Profits_ can _Increase Competition_** which **_Destroys Profits_**
**Chap 9**
690
**Principle of Ch\_\_\_\_ -**
**Appraisal** principle "**Values _do not_ Remain the Same**." **Appraisers** must consider how changing **_Economic**_ and _**Social Conditions**_ affect _**Value_**
**Principle of Change -**
**Appraisal** principle "**Values _do not_ Remain the Same**." **Appraisers** must consider how changing **_Economic**_ and _**Social Conditions**_ affect _**Value_**
**Chap 9**
691
**Principle of Dev\_\_\_\_\_\_, Equi\_\_\_\_\_, Disin\_\_\_\_\_\_\_ -**
Idea that **Property goes through** **Phases** of **_Growth**_, _**Stability**_, and _**Decline_**.
**Principle of Development, Equilibrium, Disintegration -**
Idea that **Property goes through** **Phases** of **Growth** (_Development_), **Stability** (Equilibrium), and **Decline** (_Disintegration_)
**Chap 9**
692
**Com\_\_\_\_\_\_\_ Approach (Ma\_\_\_\_ Da\_\_/ Dir\_\_\_ Sa\_\_\_\_ Approach)** -
**Appraisals** that uses **_similar_ Comparable and Recent Sales**
**Comparison Approach (Market Data/ Direct Sales Approach)** -
**Appraisals** that **uses _similar_ Comparable** and **Recent Sales**
**Chap 9**
693
**Sq\_\_\_\_ F\_\_\_\_\_ of Liv\_\_\_\_ Area -**
**Measuring "Exterior Dimensions"** of **Exterior Walls**
**Square Footage of Living Area -**
**Measuring "Exterior Dimensions"** of **Exterior Walls**
**Chap 9**
694
**Deterioration** -
**Loss of Value** **by "Wear and Tear."**
**Deterioration** -
**Loss of Value** **by "Wear and Tear."**
**Chap 9**
695
**Principle of An\_\_\_\_\_\_\_\_\_** -
Value **affected by** **"Future Events"**
**Principle of Anticipation** -
Value **affected by** **"Future Events"**
**Chap 9**
696
**_E\_\_\_\_\__ In\_\_\_\_\_\_** -
**Appreciation by Owners** Efforts
**_Earned Increments_** -
**Appreciation** by **Owners Efforts**
**Chap 9**
697
**U\_\_\_\_\_\_\_\_ Increments -**
**Appreciation by Other Factors**, out of owners control
**Unearned Increments -**
**Appreciation by Other Factors**, out of owners control
**Chap 9**
698
**Plot\_\_\_\_\_ (Assem\_\_\_\_\_\_\_)** -
**_Joining_** **"_Smaller Parcels_" into** one **_Larger One_**.
**Plottage (Assemblage)** -
**_Joining_ "_Smaller Parcels_" into** one **_Larger One_.**
**Chap 9**
699
**Principle of Contr\_\_\_\_\_\_\_** -
Value of component that **_Adds To or Detracts_** from **Value** **of Whole**.
**Principle of Contribution** -
Value of component that **_Adds To or Detracts_** from **Value** **of Whole**
**Chap 9**
700
**Def\_\_\_\_\_\_ M\_\_\_\_\_\_\_\_\_\_** -
**Repairs put off _for future_**.
**Deferred Maintenance** -
**Repairs put off** **_for future_**.
**Chap 9**
701
**Functional Obsolescence** - **(Outdated)**
1. **Loss Due To** **Out\_\_\_\_ Features (curable)** ,
2. **T\_\_\_\_\_\_\_ Advances (curable)**, or
3. **Poor Floor D\_\_\_\_\_ (\*\*Incurable\*\*).**
**Functional Obsolescence** - **(Outdated)**
1. **Loss Due To** **Outdated Features (curable),**
2. **Technological Advances (curable),**
3. **Poor Floor D\_\_\_\_\_ (\*\*Incurable\*\*)**
**Chap 9**
702
**_Deterioration**_ such as _**Termites_, _Weather Damage_, _Leaky Roof_, _Cracked Paint_**.
## Footnote
**Are they Curable or Non-Curable?**
**Curable** -
**_Deterioration_** such as **_Termites_, _Weather Damage_, _Leaky Roof_, _Cracked Paint_**.
**Remember: Floor Plan Design** - **NOT Curable**
**Chap 9**
703
**C\_\_\_ Approach (S\_\_\_\_\_\_ Approach)** -
**Appraisal** that uses **Calculated Building Costs, _Subtracted_ Depreciaton and _Added_ Land Values**
**Cost Approach (Summation Approach)** -
**Appraisal** that uses **Calculated Building Costs, _Subtracted_ Depreciaton and _Added_ Land Values**
**Chap 9**
704
**Repl\_\_\_\_\_\_ Cost** -
**_Cost_** to **build _Reasonable_ Duplicate**
**Replacement Cost** -
**_Cost_** to **build _Reasonable_ Duplicate**
**Chap 9**
705
**Repro\_\_\_\_\_ Cost -**
**_Cost_** to **Build "Exact" Duplicate at Today's Prices.**
**Reproduction Cost -**
**_Cost_** to **Build "Exact" Duplicate at Today's Prices.**
**Chap 9**
706
**Reh\_\_\_\_\_\_\_\_\_** -
## Footnote
**Curing "Deferred Maintenance"**
**Rehabilitation** -
_Curing_ **deferred maintenance**
**Chap 9**
707
**Economic Obsolescence - (Outside)**
**Loss by outside factors:**
1. **Neigh\_\_\_\_\_ Conditions (Air, Noise, Pollution)**
2. **Over Imp\_\_\_\_\_,**
3. **Negative Legislation** **(Z\_\_\_\_),**
4. **Change in B\_\_\_\_\_\_/Mar\_\_\_ Conditions**
**Economic Obsolescence - (Outside)**
**Loss by outside factors)**:
1. **Neighborhood Conditions (Air, Noise, Pollution),**
2. **Over Improvements,**
3. **Negative Legislation (Zoning),**
4. **Change in Business/Market Conditions**
**Chap 9**
708
**(URAR) Un\_\_\_\_ Res\_\_\_\_\_\_ Appraisal Report** -
**Standard Appraisal** Form **for SFR**
**(URAR) Uniform Residential Appraisal Report** -
**Standard Appraisal** Form **for SFR**
**Chap 9**
709
**Sq\_\_\_\_ F\_\_\_\_\_ Under R\_\_\_\_ -**
**Area** **of Building** **includes Garages and Patios**
**Square Footage Under _Roof_ -**
**Area of Building** **includes Garages and Patios**
**Chap 9**
710
**De\_\_\_\_ Appraisal -**
**Appraisal** from "**_Internet Information_" _without_ Inspecting** **Property**
**Desktop Appraisal -**
**Appraisal** from **"_Internet Information"_ _without_ Inspecting** **Property**
**Chap 9**
711
**Principle of Extern\_\_\_\_\_\_\_** -
**Principle** that **Factors "Outside Property" have _Positive_ or _Negative_ _Affect on Value_.**
**Principle of Externalities** -
**Principle** that **Factors "Outside Property" have _Positive_ or _Negative_ _Affect on Value_.**
**Economic Obsolescence - Neighborhood, Air, Noice, Over Improved, Adverse Zoning**
**Chap i**
712
**Salv\_\_\_\_ (Resid\_\_\_) Value -**
**Value** **of Buildings** at **_End of Physical Life_**
**Salvage (Residual) Value -**
**Value of Buildings** at **_End of Physical Life_**
**Chap 9**
713
**M\_\_\_\_\_ Value** -
**Value** for **Loan Purposes, using Property as Collateral**
**Mortgage Value** -
**Value** for **Loan Purposes, using Property as Collateral**
**Chap 9**
714
**Mar\_\_\_\_ P\_\_\_\_\_**
Money **Given/Taken**
**Market Price** -
Money **Given/Taken**
**Chap 9**
715
**Principle of H\_\_\_\_ and B\_\_\_ U\_\_** -
**Use of Property** that Brings **Greatest Net Return**
**Principle of Highest and Best Use** -
**Use of Property** that Brings **Greatest Net Return**
**Chap 9**
716
**Principle of S\_\_\_\_ and D\_\_\_\_\_** -
Value by _Scarcity_ and _Desire_ of Item
**Principle of Supply and Demand** -
Value by _Scarcity_ and _Desire_ of Item
**Chap 9**
717
**A\_\_ L\_\_\_\_\_\_ Tran\_\_\_\_\_\_** -
Transaction where parties have **Equal Bargaining Positions.**
**Arm's-Length Transaction** -
Transaction where parties have **Equal Bargaining Positions.**
**Chap 9**
718
**Arm's Length Transactions include**?
## Footnote
**For\_\_\_\_\_, Relatives S\_\_\_\_, and Condem\_\_\_\_\_ Proceedings**
**Arm's Length Transactions include**?
Foreclosures, Relatives Sales, and Condemnation Proceedings
**Chap 9**
719
**Principle of H\_\_\_\_\_ and B\_\_\_ Use -**
Principle Used that will generate **Greatest Net Return**
What is **based on** **"_Net Income_,"** **_Zoning_**, **_Building Codes_**, and **_Surrounding Market_?**
**Principle of Highest and Best Use -**
Principle Used that will generate **Greatest Net Return**
Based on **"_Net Income_,"** **_Zoning_**, **_Building Codes_**, and **_Surrounding Market_**
**Chap 9**
720
**Fu\_\_\_\_\_\_\_ Ob\_\_\_\_\_\_\_\_\_** - **Outdated**
**Poor Fl\_\_\_\_ P\_\_\_\_\_** form of depreciation that **"is not" curable** **(Incurable)**
**Functional Obsolescence** - **Outdated**
**Poor Floor Plans** form of depreciation that **"is not" curable** **(Incurable)**
721
**Economic Obsolescence (External) - Factors Outside of Property** that deal with **Neighborhood Issues** includes?
1. **A\_\_,**
2. **N\_\_\_\_**
3. **Poll\_\_\_\_\_,**
4. **Traf\_\_\_\_**
5. **Adverse Z\_\_\_\_\_**
6. **O\_\_\_ Im\_\_\_\_ Pr\_\_\_\_\_**
**Economic Obsolescence (External) - Factors Outside of Property** that deal with **Neighborhood Issues** includes?
1. **Air,**
2. **Noise**
3. **Pollution,**
4. **Traffic**
5. **Adverse Zoning**
6. **Over Improved Property**
**Chap 9**
722
**Comparison Approach** relies most **"Heavily Relies On** -
1. **Ex\_\_\_\_ Res\_\_\_\_\_\_**
2. **V\_\_\_\_ L\_\_\_\_**
**Comparison Approach** relies most **"Heavily Relies On** -
1. Existing **_Residences_**
2. **_Vacant Land_**
**Chap 9**
723
**Comparison Approach** **(Market Data/Sales) -**
1. Many Buyer/Sellers
2. **C\_\_\_\_\_\_\_ Sales at A\_\_\_ L\_\_\_\_\_**
3. **\_\_ Comparables**
4. **Adj\_\_\_\_\_\_**
5. **_Heavily Relies On:_** **Ex\_\_\_\_\_ Re\_\_\_\_\_ and V\_\_\_\_ L\_\_\_\_**
**Comparison Approach** **(Market Data/Sales) -**
1. Many Buyer/Sellers
2. **Comparable Sales at Arm's Length**
3. **_3_** **Comparables**
4. **Adjustments**
5. **_Heavily Relies On_** **Existing Residence and Vacant Land**
**Chap 9**
724
**Comparison Approach - Adjustments**
1. **D\_\_\_ of Sale**
2. **Loc\_\_\_\_\_\_**
3. **Fin\_\_\_\_\_\_\_\_**
4. **Cond\_\_\_\_\_\_ or Feat\_\_\_\_\_\_**
5. **Conce\_\_\_\_\_\_\_\_**
6. **Property with \*\*_Fewest_ Adj\_\_\*\* \*\*\*_Most Comparable_\*\*\***
**Comparison Approach - Adjustments**
1. **Date of Sale**
2. **Locations**
3. **Financing**
4. **Condition or Features**
5. **Concessions**
6. **Property with \*\*_Fewest Adjustments_\*\* \*\*\*_Most Comparable_\*\*\***
**Chap 9**
725
**C\_\_\_ Approach (Su\_\_\_\_\_\_) -**
**Building Cost - Depreciation + Land Value**
**= Appraised Value**
**Cost Approach (Summation) -**
**Building Cost - Depreciation + Land Value**
**= Appraised Value**
**Chap 9**
726
**Cost Approach** (**Heavily Relies On**}:
**One of a K\_\_\_ Properties**, such as **Chu\_\_\_\_,** **Muni**\_\_\_\_ **Buildings**, **New Con\_\_\_\_\_\_\_\_**
**Cost Approach** (**Heavily Relies On):**
**One of a kind properties**, such as **Churches,** **Municipal** **Buildings**, **New Constructions**
**Chap 9**
727
Scarcity means
**Supply = Scarcity**
**Chap 9**
728
Desire means
Demand = Desire
## Footnote
**Chap 9**
729
Growth means
**Development = Growth**
**Chap 9**
730
**Stability (Balance) means**
**Equilibrium = Stability, Balance**
**Chap 9**
731
Decline means
**Disintegration = Decline**
**Chap 9**
732
**V\_\_\_\_\_**
**Worth of Property** and has for **4 Major Elements** such as **_Demand_**, **_Utility**_, _**Scarcity**_, and _**Transferabilty_**
**Value (Worth) -**
**Worth of Property** and has for **4 Major Elements** such as **_Demand_**, **_Utility**_, _**Scarcity**_, and _**Transferabilty_**
**Chap 9**
733
**_Land_** **_Not Needed_** to support the **Highest and Best Use.**
**Excess Land -**
**_Land_ _Not Needed_** to support the **Highest and Best Use.**
**Chap 9**
734
**Increase in Value** for **Any Reason**
**Appreciation -**
**Increase in Value for Any Reason.**
**Chap 9**
735
**Loss in Value** for **Any Reason.** In the **Cost Approach** **_most difficult_ to Estimate**.
**Depreciation -**
**Loss in Value** for **Any Reason**. In the **Cost Approach _most difficult_ to Estimate.**
**Chap 9**
736
An **_Exterior Inspection_** of a home **by a Licensed Appraiser**. **Lenders typically use to document Comparable Properties.**
**Drive-By Inspection**
An **_Exterior inspection_** of a home **by a Licensed Appraiser**. **Lenders typically use to document Comparable Properties.**
737
**C\_\_\_ Approach (S\_\_\_\_\_\_ Approach)** -
**Appraisal** that uses **Calculated Building Costs, _Subtracted_ Depreciaton and _Added_ Land Values**
**Cost Approach (Summation Approach)** -
**Appraisal** that uses **Calculated Building Costs, _Subtracted_ Depreciaton and _Added_ Land Values**
**Chap 9**
738
**C\_\_\_ Approach (S\_\_\_\_\_\_ Approach)** -
**Appraisal** that uses **Calculated Building Costs, _Subtracted_ Depreciaton and _Added_ Land Values**
**Cost Approach (Summation Approach)** -
**Appraisal** that uses **Calculated Building Costs, _Subtracted_ Depreciaton and _Added_ Land Values**
**Chap 9**
739
**C\_\_\_ Approach (S\_\_\_\_\_\_ Approach)** -
**Appraisal** that uses **Calculated Building Costs, _Subtracted_ Depreciaton and _Added_ Land Values**
**Cost Approach (Summation Approach)** -
**Appraisal** that uses **Calculated Building Costs, _Subtracted_ Depreciaton and _Added_ Land Values**
**Chap 9**
740
**Principle of H\_\_\_\_ and B\_\_\_ U\_\_** -
**Use of Property** that Brings **Greatest Net Return**
**Principle of Highest and Best Use** -
**Use of Property** that Brings **Greatest Net Return**
**Chap 9**
741
**In preparing an Estimate of Value for a thirty year old house, an appraiser will MOST LIKELY use which of the following approaches to value?**
1. Replacement Cost
2. Reproduction Cost
3. Market Data
4. Income
**In preparing an Estimate of Value for a thirty year old house, an appraiser will MOST LIKELY use which of the following approaches to value?**
1. Replacement Cost
2. Reproduction Cost
3. **Market Data**
4. Income
**Chap 9**
742
**When Market Data is lacking and the property has no income, the appraisal approach MOST LIKELY to be used is the:**
1. Comparison
2. Cost
3. Capitalization
4. Market Data
**When Market Data is lacking and the property has no income, the appraisal approach MOST LIKELY to be used is the:**
1. Comparison
2. **Cost**
3. Capitalization
4. Market Data
743
**If a property is built usng inferior building materials this would directly result in**
1. Functional Obsolescence
2. Physical Deterioration
3. External Obsolescense
4. Reproduction Cost
**If a property is built usng inferior building materials this would directly result in**
1. **Functional Obsolescence**
2. Physical Deterioration
3. External Obsolescense
4. Reproduction Cost
**Chap 9**
744
**An owner improves a property bringing it up to value commensurate with surrounding properties. This is an example of:**
1. Conformity
2. Contribution
3. Competition
4. Regression
**An owner improves a property bringing it up to value commensurate with surrounding properties. This is an example of:**
1. **Conformity**
2. Contribution
3. Competition
4. Regression
**Chap 9**
745
**Federal Fair Housing Laws - 7**
**Laws that** **Prohibit Discrimination** in the **S\_\_**, **R\_\_\_\_**, **Adv\_\_\_\_\_\_\_**, and **Fin\_\_\_\_\_\_ of Housing**, support for the following **Protected Classes**:
**Hint: Race and Color Religiously Never Opposes the Sexes PLUS _Handicapped_ and _Familial Status_**
1. **Race (Race)**
2. **Color (Color)**
3. **Religion (Religiously)**
4. **Natural Origin (Neve Opposes)**
5. **Sex (Sex)**
6. **H\_\_\_\_\_ (Hope)**
7. **F\_\_\_\_\_ (Faith)**
**Federal Fair Housing Laws - 7**
**Laws that Prohibit Discrimination** in the **_Sale_**, **_Rental_**, **_Advertising_**, and **_Financing_** **of Housing**, support the following **Protected Classes**:
**Hint: Race and Color Religiously Never Opposes the Sexes PLUS _Handicapped_ and _Familial Status_**
1. **Race (Race)**
2. **Color (Color)**
3. **Religion (Religiously)**
4. **Natural Origin (Neve Opposes)**
5. **Sex (Sex)**
6. **Handicap (Hope)**
7. **Familial (Faith)**
**Chap 8**
746
**(CFPB) Cons\_\_\_\_\_ Fin\_\_\_\_\_\_ Pro\_\_\_\_\_\_\_ Bur\_\_\_\_\_\_** -
**_Federal Agency_** that **_Administers_** and **_Enforces_** many **_Federal Laws_ and _Rules_ to _Financing_**
**(CFPB) Consumer Financial Protection Bureau** -
**_Federal Agency_** that **_Administers_** and **_Enforces_ many _Federal Laws_ and _Rules_ to _Financing_**
**Chap 8**
747
**T\_\_\_\_ In L\_\_\_\_\_ (Regulation Z)** -
**Federal Law** that **requires lenders to Disclose _All_ T\_\_\_ and _Cost_** to **obtain Cons\_\_\_\_ Loan.**
Has to do with **APR**, **F\_\_\_\_\_\_\_ Charges**, **Tr\_\_\_\_\_** **Terms**, and **Ad\_\_\_\_\_\_**, and **Ref\_\_\_\_\_\_**.
**Truth in Lending (Regulation Z)** -
**Federal Law** that **requires lenders to Disclose _All Terms_ and _Cost_** to **obtain _Consumer Loan_.**
Has to do with **_APR_**, **_Finance Charges_**, **_Trigger Terms**_, and _**Advertising_**, and _**Refinances**._
**Chap 8**
748
**An\_\_\_\_\_ P\_\_\_\_\_\_ R\_\_\_** **(APR)** -
**_Interest_, _Discount Points**_ and _**Loan Costs_** are expressed as the **Annual Percentage Rate.**
**Annual Percentage Rate** **(APR)** -
**_Interest**_, _**Discount Points**_ and _**Loan Costs_** are expressed as the **Annual Percentage Rate.**
**Chap 8**
749
**When _Trigger Terms_ are used,** **_Full Disclosure of Financing_ Must be Used**. Note: These **_do not_** apply to **Loan Assumptions.**
**Trigger Terms:**
1. **D\_\_\_** Payment,
2. **Nu\_\_\_\_** of Payments,
3. **Am\_\_\_\_** of Payments,
4. **Per\_\_\_\_** of Payment (Mo),
5. **Fin\_\_\_\_ Ch\_\_\_\_\_**
**When _Trigger Terms_ are used,** **_Full Disclosure of Financing_ Must be Used**. Note: These **_do not_** apply to **Loan Assumptions.**.
**Trigger Terms:**
1. **_Down_** Payment,
2. **_Number_** of Payments,
3. **_Amount_** of Payments,
4. **_Period_** of Payment (Mo),
5. **_Finance Charges_**
**Chap 8**
750
**Full Disclosure** contains **All Trigger Terms** as follows and what else?
1. **D\_\_\_** Payment,
2. **N\_\_\_\_\_** of Payments,
3. **A\_\_\_** of Payments,
4. **Per\_\_** of Payments (Mo, etc),
5. **F\_\_\_\_\_ C\_\_\_\_**, **and also.....**
6. **L\_\_\_** Amount
7. **T\_\_\_\_ of All P\_\_\_\_**,
8. **APR**
**Full Disclosure** contains **All Trigger Terms** as follows and what else?
1. **Down** Payment,
2. **Number** of Payments,
3. **Amount** of Payments,
4. **Period** of Payments (Mo, etc),
5. **Finance Charge**, **and also.....**
6. **Loan** Amount
7. **Total of All Payments**,
8. **APR**
**Chap 8**
751
**Truth in Lending (Reg Z**)
**Federal law** that **requires lenders to** **Disclose _All Terms_ and _Cost_** in **obtaining _Consumer Loan_** Includes:
1. **Disclosing** **APR** **(Int\_\_\_\_, Dis\_\_\_\_\_, L\_\_\_ Costs)**
2. **Applies to Institutional Lenders** **Only** - **Regulated by Feds and State** (not Private)
**Banks, Ins\_\_\_\_\_ Companies, Commer\_\_\_\_\_\_ Banks, Cred\_\_\_ Un\_\_\_\_, T\_\_\_\_ Companies, Br\_\_\_\_ F\_\_\_\_**
1. **Trigger Terms (D\_\_\_ Pmt, N\_\_\_\_ of Pmts, A\_\_\_ of Pmt, P\_\_\_\_ of Pmts, and Fin\_\_\_\_ Charges**
2. **Full Disclose (7)**: **Includes D\_\_\_ Pmt, Nu\_\_\_, A\_\_\_ and Fre\_\_\_\_ Pmts, plus L\_\_ Amt, T\_\_\_ of All Pmts, and APR**
3. **Refinances: __ Day Right to Recind**
**Truth in Lending (Reg Z**) -
**Federal law** that requires lenders to **Disclose _All Terms_ and _Cost_** of **obtaining Consumer Loan** and includes:
1. **Disclosing** **APR** **(Interest, Discounts, Loan Costs)**
2. **Applies to Institutional Lenders** **Only - Regulated by Feds and State** (not Private)
**Banks, _Insurance_ Companies, _Commerical_ Banks, _Credit Unions_, _Trust Companies_, _Broker Firms_**
1. **Trigger Terms** **(Down Pmt, # of Pmts, Amount of Pmt, Period of Pmts, and Finance Charges**
2. **Full Disclose (7):** **Includes _Down_ Pmt, _Number_ of Pmts, _Amount_ of Pmts, and _Frequency_ of Pmts, plus *_Loan Amount*_, _*Total of All Pmts*_, and _*APR_***
3. **Refinances: 3 Day Right to Recind**
752
**_Full Disclosure_ - Under Reg Z (Truth In Lending) includes -**
**_Trigger Terms_:** (**D\_\_\_ Payment, Nu\_\_\_ of Pmts, Am\_\_\_\_of Pmts, Per\_\_\_\_ of Pmts, and F\_\_\_\_ Charges.(5)**
**_For Full Disclosure Add:_**
1. **L\_\_\_ Amount**
2. **APR**
3. **T\_\_\_ of A\_\_ Payments**
**_Full Disclosure_ - Under Reg Z (Truth In Lending) includes -**
**_Trigger Terms:_ (Down Payment, No. of Pmts, Amount of Pmts, Period of Pmts, and Finance Charges. (5)**
**_For Full Disclosure Add:_**
1. **Loan Amount**
2. **APR**
3. **Total of All Payments**
**Chap 8**
753
**(RESPA) Real Estate Settlement and Procedure Act** - **Requirements**
This Act requires: (Disclosure of Settlement Cost)
1. **_Loan Estimate_** - **\_\_ days of Loan App**,
2. **_Trid-Closing Cost Disclosure_** -**\_\_ days of Closing.**
3. **_Federal Loans Only_** - **(FHA, VA, USDA)**
4. **_Prohibits_ _Excess Money_** **in Im\_\_\_\_\_\_\_**
5. **_Disclosure_ of _Affiliated Business_**
6. **_Prohibits_ K\_\_\_\_ and Un\_\_\_\_\_ Fees from Settlement Services.**
7. **_Title Company_ - B\_\_\_\_'s Choice**
**(RESPA) Real Estate Settlement and Procedure Act** - **Requirements**
This Act requires: (Disclosure of Settlement Cost)
1. **_Loan Estimate_** - **3 days of Loan App**
2. **_Trid-Closing Cost Disclosure_** - **3 days of Closing.**
3. **_Federal Loans Only_** - **(FHA, VA, USDA)**
4. **_Prohibits_ _Excess Money_** **In Impounds**
5. **_Disclosure_ of _Affiliated Business_ -**
6. **_Prohibits_ _Kickbacks_ and _Unearned Fees_ from Settlement Services.**
7. **_Title Company_ - Buyer's Choice**
754
_**RESPA Does Not Cover** - **(If Not Federal Loans)**_
1. **Ca\_\_\_ Deals**,
2. **Seller Ca\_\_\_\_\_\_**,
3. **Pur\_\_\_\_\_ M\_\_\_\_ Loans**, or
4. **H\_\_\_ M\_\_\_\_\_ Loans**
_**RESPA Does Not Cover** - **(If Not Federal Loans)**_
1. **_Cash Deals_**,
2. **_Seller Carrybacks_**,
3. **_Purchase Money Loans_**, or
4. **_Hard Money Loans_**
**Chap 8**
755
**Loan Estimate given**-
## Footnote
**Within __ Days of Loan App**
**Loan Estimate given**-
## Footnote
**Within 3 Days of Loan App**
**Chap 8**
756
**TRID Closing Disclosure** -
## Footnote
**Given __ Days Prior to _Closing Date_**
**TRID Closing Disclosure** -
## Footnote
**Given 3 Days Prior to _Closing Date_**
**Chap 8**
757
**(FCRA) _Fair_ _Credit_ Reporting Act** -
**Act** created to **Protect from Inac\_\_\_\_\_ Rep\_\_\_\_** **to Cr\_\_\_ Bureaus - Includes:**
1. **Consumer** has **Right to Insp\_\_\_\_ Information**,
2. **Correct** any **Inac\_\_\_\_\_\_ Info.**
3. If **"Den\_\_\_ Cr\_\_\_\_"** the **Identity of Credit Bureau** has to be **Disc\_\_\_\_\_**.
**(FCRA) _Fair_ _Credit_ Reporting Act** -
**Act** created to **Protect from Inaccurate Reporting** **to Credit Bureaus - Includes:**
1. **Consumer** has **Right to Inspect Information**,
2. **Correct** any **Inaccurate Info**.
3. If **"Denied Credit"** the **Identity of Credit Bureau** has to be **Disclosed**.
**Chap 8**
758
**_(ECOA)_** **_Equal Credit_ Opportunity Act** -
**Act** **Prohibits Discrimination in Extension of Credit** based on (**R\_\_\_, C\_\_\_, R\_\_\_\_\_, Nat\_\_\_\_ O\_\_\_\_, and S\_\_**),
But also **M\_\_\_\_\_ Status,** **A\_\_**, or **P\_\_\_\_ Ass\_\_\_\_\_**
**Race and Color Religiously Never Opposes the Sexes. Mariage has an Ageless Power to Assist**
**(ECOA) _Equal Credit_ Opportunity Act** -
**Act** **Prohibits Discrimination in Extension of Credit** based on (**_Race_, _Color_, _Religion_, _National Origin_, and _Sex_**),
But also **_Marital Status_,** **_Age**_, or _**Public Assistance_**.
Race and Color Religiously Never Opposes Sex. Marriage has Ageless Power to Assist
**Chap 8**
759
**The (ADA) American with Disability Act** - requires **Equal Access to Public Accommodations.**
**_Commercial Properties_** are required to provide
1. **Handicapped** **P\_\_\_\_\_ Sp\_\_\_\_**
2. **Wheelchair Ra\_\_\_\_**
3. **Handicapped** **Res\_\_\_\_\_**
**The (ADA) American with Disability Act** - requires **Equal Access to Public Accommodations.**
**_Commercial Properties_** are required to provide
1. **Handicapped** **Parking Spaces**
2. **Wheelchair Ramps**
3. **Handicapped** **Restrooms**
**Chap 8**
760
**The Interstate _Land Sales_ _Full Disclosure Act_** regulates and requires:
1. **_Regulates:_** **Int\_\_\_\_ L\_\_\_ S\_\_\_,**
2. **_Property Report_** with **F\_\_ Dis\_\_\_\_\_ of M\_\_\_\_\_ Info. Required and Given to B\_\_\_\_**
**The Interstate _Land Sales_ _Full Disclosure Act_** regulates and requires:
1. **_Regulates:_** Interstate Land Sales,
2. **_Property Report_** with Full Disclosure of Material Info. Required **and Given to Buyer**
**Chap 8**
761
**Consumer Protection Act**
**_Established and Regulates_** the "**National Do Not C\_\_\_ Re\_\_\_\_\**_." But _**Regulated By_** the **Fed\_\_\_\_ Tr\_\_\_\_ Com\_\_\_\_\_\_**
**Consumer Protection Act**
**_Established and Regulates_** the "**National Do Not Call Registry**." But **_Regulated By_** the **Federal Trade Commission**
**Chap 8**
762
**_Do Not Call Registry_** -
**Registrated Phone Number Last How Long?**
**_Do Not Call Registry_** -
**Registration phone number** last for how long?
**Indefinitely**
**Chap 8**
763
**Do Not Call Registry - Call Limitations**
1. **Business Relationships** - **(Upto __ Months),**
2. **Political Organizations and Charities** - **(\_\_\_\_).**
**Do Not Call Registry - Call Limitations**
1. **Business Relationships** - (upto 18 months),
2. **Political Organizations and Charities** - (None).
**Chap 8**
764
**Consumer Privacy** **Act of 1974** -
1. **Act** governs **Col\_\_\_\_\_, U\_\_, Main\_\_\_\_\_**, and **Dissem\_\_\_\_\_ of In\_\_ About Individuals**
2. Must have **Consent of Ind\_\_\_\_\_\_ (To Disclose Info).**
**Consumer Privacy** **Act of 1974** -
1. Act governs **Collection, Use, Maintenance**, and **Dissemination of Info About Individuals**.
2. Must have **Consent of Individuals (To Disclose Info).**
**Chap 8**
765
**Federal Fair Housing Act of 1968 and 1988** - **Fair Housing Laws** that **Prohibits Discrimination** in the **S\_\_\_, R\_\_\_\_, Adv\_\_\_\_\_, and Fin\_\_\_\_\_** **of a House** and on Basis:
1. **Race (Race and)**
2. **Color (Color)**
3. **Religion (Religiously)**
4. **National Origin (Never Opposes)**
5. **Sex (Sex)**
6. **Handicap,**
7. **Familial**
**(Hint: Race and Color Religously Never Opposes Sex)**
**Federal Fair Housing Act of 1968 and 1988** - **Fair Housing Laws** that **Prohibits Discrimination** in the **Sale, Rental, Advertising, and Financing** **of a House** and on Basis:
1. **Race,**
2. **Color,**
3. **Religion,**
4. **National Origin**
5. **Sex,**
6. **Handicap**,
7. **Familial**
**(Hint: Race and Color Religously Never Opposes Sex)**
766
**_Federal Fair Housing Act of 1968_** - **Prohibits Discrimination** when **_Leasing_ or _Selling Property_**. **It is part of Civil Rights Act of 1968 and Prohibits:**
1. **_Refusing_ S\_\_/R\_\_\_/Neg\_\_\_\_\_ with Any Persons** - **Making House Unavailable.**
2. **Quo\_\_\_\_ _Different_ - T\_\_\_\_** **and Cond\_\_\_\_\_\_** for **Buying/Renting** to **Dif\_\_\_\_\_ Races.**
3. _**Advertising** **Properties**_ - **Available Only** to **Cet\_\_\_ P\_\_\_\_\_**.
4. **_Steering_ - Den\_\_\_ Avaiable and Chanelling People _Towards_ and Aw\_\_\_ from Ar\_\_\_\_**
5. **_Blockbusting_** - **Encouraging to Sell/Rent** because **Min\_\_\_\_\_ Mov\_\_\_ into A\_\_\_\_.**
6. **_Redlining_** - **Lenders Alt\_\_\_\_\_ T\_\_\_\_ based on Homes in Sp\_\_\_\_ Ar\_\_\_\_. Insurance Co refusing Insurance**
7. **_Denying Membership_**: **MLS, Bkr Orgs, etc**
**_Federal Fair Housing Act of 1968_** - Prohibits Discrimination when **_Leasing_ or _Selling Property_**. **It is part of Civil Rights Act oof 1968 and Prohibits:**
1. **_Refusing Sell/Rent/Negotiate_** **with Any Persons** - **Making House Unavailable**.
2. **_Quoting Different_ Terms** **and Conditions** for Buying/Renting to **Different Races.**
3. _**Advertising** **Properties**_ available to **Certain People**.
4. **_Steering_ - Denying Availabiity and Chanelling People Towards and Away from Area**
5. **_Blockbusting_** - **Encouraging to Sell/Rent** because **Minorities Moving into Area.**
6. **_Redlining_** - **Lenders Altering Terms** based on **Homes in Speific Areas**. **Insurance Co refusing Insurance**
7. **_Denying Membership_**: **MLS, Bkr Orgs, etc**
**Chap 8**
767
**Federal Fair Housing 1968 Exemptions (4)**
1. **_FSBO_:** **No Br\_\_\_\_\_ Used**, **Adv\_\_\_\_\_\_\_\_ not Discriminating**, Only **\_\_ Units Max Owned**.
2. **_Room Rentals_:** Owner Occupied **(\_\_ Unit)**
3. **_Religious Orgs_:** **Restrict to S\_\_\_\_ Religion** okay **(No Restriction by** **R\_\_\_**, **C\_\_\_** or **N\_\_\_\_\_ Origin**)
4. **_Private Clubs_:** **R\_\_\_\_\_ to Members** **Only (If Not Commercial Operated)**
**Federal Fair Housing 1968 Exemptions (4)**
1. **_FSBO_:** No Broker Used, Advertising not Discriminating, Only __ **Units Max Owned.**
2. **_Room Rentals_:** Owner Occupied (1-4 Unit)
3. **_Religious Orgs_:** **Restrict to Same Religion** okay (No Restriction by Race, Color or National Origin)
4. **_Private Clubs_:** **Restrict to Members** **Only (If Not Commercial Operated)**
**Chap 8**
768
**What is considered** **Handicapped**:
1. **Vis\_\_\_, Hea\_\_\_\_, Spee\_\_,**
2. **H\_\_\_\_,**
3. **Can\_\_\_\_\_,**
4. **Alc\_\_\_\_\_\_\_, Mental I\_\_\_\_\_, HIV**
**What is considered** **Handicapped**:
1. Visual, Hearing, Speech,
2. Heart,
3. Cancer,
4. Alcoholics, Mental Illness, HIV
**Chap 8**
769
**Handicap Must be allowed to do what?**
1. **_Modifications_**: Tenant **M\_\_ D\_** Modifications, But They Must Be **Res\_\_\_\_\_.**
2. **_Deposits_:** **Must be Cust\_\_\_\_\_**, **unless P\_\_\_ Credit then Int\_\_\_\_\_ Bear\_\_\_\_ Esc\_\_\_\_ Account**
3. **_Reasonable Accomodations_**: **In Ru\_\_\_\_ and Pol\_\_\_ such as _Parking_ and _Ramps_ and _Restrooms_**
4. **_Group Homes_**: **Zo\_\_\_\_/De\_\_\_\_ Restrictions** **Cannot Prevent being Created in Neighborhood.**
**Handicap Must be allowed to do what?**
1. **_Modifications_**: Tenant **May Do** Modifications, But They Must Be **Restored.**
2. **_Deposits_:** Must be **Customary,** **unless Poor Credit then Interest Bearing Escrow Account**
3. **_Reasonable Accomodations_**: **In Rules and Policies such as Parking and Ramps and Restrooms**
4. **_Group Homes_**: **Zo\_\_\_\_/De\_\_\_\_ Restrictions** **Cannot Prevent being Created in Neighborhood**
**Chap 8**
770
**_Federal Fair Housing 1988 (Familial Status)_** - The **Amendment** **Prohibits Discrimination** on the Basis of **Familial Status** such as **Refu\_\_\_\_ to Rent/Sell Home to Families with Children under __ years old.**
**_Exemptions (Housing Occupied)_:**
1. **62 or Older Only Occupied**
2. **55 or Older at Least One Per Unit (\_\_% Occupancy)**
**_Federal Fair Housing 1988 (Familial Status)_** -The **Amendment Prohibits Discrimination** on the Basis of **Familial Status** such as **Refusing to Rent/Sell Home to Families with Children under 18 years old.**
**_Exemptions (Housing Occupied)_:**
1. **62 or Older Only Occupied**
2. **55 or Older at Least One Per Unit (80% Occupancy)**
**Chap 8**
771
**Discriminating Advertising -**
Examples:
1. **No Whe\_\_\_\_\_\_\_\_\_**
2. **Able Bod\_\_ Only**
3. **Chris\_\_\_\_ Handyman**
4. **Close to Catho\_\_\_\_\_ School**
5. **Wh\_\_\_\_ Neighborhood**
**Discriminating Advertising -**
Examples:
1. **No Wheelchairs**
2. **Able Bodied Only**
3. **Christian Handyman**
4. **Close to Catholic School**
5. **White Neighborhood**
**Chap 8**
772
**_Fair Housing Acts 1968 and 1988_ - _Complaint Procedures_**
1. **\_\_ year file Complaint** - **In Writing**
2. **HUD Must** **Inv\_\_\_\_\_\_\_**
3. **HUD Must Conc\_\_\_\_\_ Problem** - In Investigation -
4. **HUD Prepares Report** - **After Investigation. Decides as Follows**
1. **Dism\_\_\_\_** or **Aw\_\_\_\_ Damages**;
2. **Send Attorney General Fi\_\_\_\_\_**; and **Recommend** **"Susp\_\_\_\_\_" or "Rev\_\_\_\_\_\_\_"**
**_Fair Housing Acts 1968 and 1988_ - _Complaint Procedures_**
1. **1 year file Complaint** - **In Writing**
2. Hud must **investigate**
3. **Conciliate Problem** - In Investigation -
4. **Hud Prepares Report** - **After Investigation, Decides as Follows**
5. **Dismiss** or **Award Damages**;
6. **Send Attorney General Findings**; and **Recommend "Suspension" or "Revocation"**
**Chap 8**
773
**Civil Rights Act of 1866 (Discrimination)** -
## Footnote
**\_\_ years to File Complaints in _Federal Court_**
**Civil Rights Act of 1866 (Discrimination)** -
## Footnote
**2 years to File Complaints in _Federal Court_**
**Chap 8**
774
**(RESPA) Real Estate Settlement Procedure Act - Booklet**,
**Your H\_\_\_ Loan T\_\_\_\_ Kit** - **CFPBs** **Settlement Cost Booklet** must be given to borrower under this law. **Along with "_Loan Estimate_" Given __ Business Days of Loan Application**
**Note CFPB** - **Consumer Financial Protection Bureau**
**(RESPA) Real Estate Settlement Procedure Act - Booklet**,
**Your Home-Loan Tool Kit CFPBs Settlement Cost Booklet** must be given to borrower under this law. **Along with "_Loan Estimate_" Given 3 Business Days of Loan Application**
**Note CFPB** - **Consumer Financial Protection Bureau**
**Chap 8**
775
**(RESPA) Real Estate Settlement Procedure Act** -
**CFPB Cl\_\_\_\_\_\_ Disclosure** is same as the **TRID Dis\_\_\_\_\_\_**
**(RESPA) Real Estate Settlement Procedure Act** -
**CFPB Closing Disclosure** is same as the **TRID Disclosure**
**Chap 8**
776
**(RESPA) Real Estate Settlement Procedure Act** -
**Law** that **prohibits "K\_\_\_\_\_\_\_" and Un\_\_\_\_\_\_ Fees** from **Set\_\_\_\_\_\_\_\_ Service Providers. Prohibits E\_\_\_\_\_ M\_\_\_\_\_ in Impounds**
**(RESPA) Real Estate Settlement Procedure Act** -
**Law** that **prohibits "Kickbacks" and Unearned Fees** from **Settlement Service Providers. Prohibits Excess Money in Impounds.**
**Chap 8**
777
**LOAN ESTIMATE (RESPA) required -**
**Give To Borrower** in**\_\_ Business days** of **Loan Application**
**LOAN ESTIMATE (RESPA) required -**
**Give To Borrower** in **3 Business days** of **Loan Application**
**Chap 8**
778
**(ECOA) _Equal_ Credit Opportunity Act** -
**Prohibits Discrimination in *_Extension of Credit_*** on Basis of **Race, Color, Religion, National Origin, Sex,** but **also M\_\_\_\_ Status, A\_\_** and **_Income_** from **P\_\_\_\_ Assistance.**
**Race and Color Religiously Never Opposes Sex****. Mariage has Ageless Power to Assist**
**(ECOA) _Equal_ Credit Opportunity Act** -
**Prohibits Discrimination in *_Extension of Credit_*** on Basis of **Race, Color, Religion, National Origin, Sex,** but **also _Marital Status_, _Age**_ and _**Income**_ from _**Public Assistance_.**
**Race and Color Religiously Never Opposes Sex****. Marriage has Ageless Power to Assit**
**Chap 8**
779
**(ADA) Americans with Disability Act** -
**Requires Commerical Properties to have**:
1. **Wh\_\_\_\_\_\_\_ Ramps to Public Bu\_\_\_\_\_** is required under this law.
2. **Handicapped P\_\_\_\_\_ Spaces**
3. **Handicapped R\_\_\_\_\_\_\_**
**(ADA) Americans with Disability Act** -
**Requires Commerical Properties to have**:
1. **Wheelchair Ramps to Public Buildings** is required under this law.
2. **Handicapped Parking Spaces**
3. **Handicapped Restrooms**
**Chap 8**
780
**_RESPA Loans Covered:_**
**F\_\_\_\_\_\_\_ Loans Only**: **(FHA, VA, USDA)**
**_RESPA Loans Covered:_**
**Federal Loans Only**: **(FHA, VA, USDA)**
**Chap 8**
781
**Federal Fair Housing Act of 1866**
**Bl\_\_\_\_\_\_\_\_ -**
**Minorities Moving in Area**, Encouraging Owners to Sell
**Federal Fair Housing Act of 1866**
**Blockbusting -**
**Minorities Moving in Area**, Encouraging Owners to Sell
**Chap 8**
782
**In\_\_\_\_\_\_ L\_\_\_ S\_\_\_ F\_\_\_ Disclosure Act** -
1. **_Regulates_ -** **In\_\_\_\_\_\_ L\_\_\_ S\_\_\_\_**
2. **_Requires Property Report_** - **Full Disclosure of Material Info to Buyers**
**Interstate Land Sales Full Disclosure Act** -
1. **_Regulates_** - **Interstate land sales**
2. **_Requires Property Report_ - Full Disclosure of Material Info to Buyers**
**Chap 8**
783
**(FCRA) _Fair_ Credit Reporting Act -**
**Allows Consumers to Cor\_\_\_\_ Inac\_\_\_\_\_ Cre\_\_\_\_**
**(FCRA) _Fair_ Credit Reporting Act -**
**Allows Consumers to _Correct Inaccurate_ Credit**
**Chap 8**
784
**(RESPA) Real Estate Settllement Procedure Act** -
**Prohibits Lenders** from **Keeping To Much M\_\_\_\_** in **Im\_\_\_\_ Accounts.**
**(RESPA) Real Estate Settllement Procedure Act** -
**Prohibits Lenders** from **Keeping To Much Money** in **Impound Accounts.**
**Chap 8**
785
**(ADA) Americans with Disabilities Act** -
**Prohibits Discrimination** **against the Handicapped** and requires **Equal Ac\_\_\_\_\_ to All P\_\_\_\_ Accommodations**
**(ADA) Americans with Disabilities Act** -
**Prohibits Discrimination against the Handicapped** and requires **Equal Access to All Public Accommodations**
**Chap 8**
786
**Con\_\_\_\_\_ Pri\_\_\_\_ Act** **1974**
**Law _Prohibits**_ _**Disclosure_ of _Personal Information_ Without Consent. _Federaly Established Code**_ of Fair Practices governing _**Collection_, _Use_, _Maintenance_, and _Dissemination_ of Information**
**Consumer Privacy Act 1974**
**Law _Prohibits**_ _**Disclosure_ of _Personal Information_ Without Consent. _Federaly Established Code**_ of Fair Practices governing _**Collection_, _Use_, _Maintenance_, and _Dissemination_ of Information**
**Chap 8**
787
**Federal Fair Housing Acts 1968 and 1988 (7 Classes)**
**(_Hint_: Race and Color Religiously Never Opposes Sex)**
1. Race
2. Color,
3. Religion,
4. National Origin
5. Sex,
6. **H\_\_\_\_\_\_\_**
7. **F\_\_\_\_\_\_\_\_**
**Federal Fair Housing Acts 1968 and 1988 (7 Classes)**
**(_Hint_: Race and Color Religiously Never Opposes Sex)**
1. Race
2. Color,
3. Religion,
4. National Origin
5. Sex,
6. **Handicap**
7. **Familial**
**Chap 8**
788
**ECOA - _Equal Credit_ Opportunity Act** **(Protected Classes) -**
**(Hint: Marriage has Ageless Power to Assist)**
**Race, Color, Religion, National Origin, and Sex,**
1. **M\_\_\_\_\_ Status**
2. **A\_\_,**
3. **P\_\_\_\_\_ Assistance**
**ECOA - _Equal Credit_ Opportunity Act** **(Protected Classes) -**
**(Hint: Marriage has Ageless Power to Assist)**
**Race, Color, Religion, National Origin, and Sex,**
1. **Marital Status**
2. **Age,**
3. **Public Assistance**
**Chap 8**
789
**(APR) Annual Percentage Rate -**
**Interest Rate** computed to include **An\_\_\_\_\_ Interest** plus **Upfront One-Time L\_\_\_ C\_\_\_\_, and D\_\_\_\_\_ P\_\_\_\_\_**; **Apple to Apple Comparisons of Loans.**
**(APR) Annual Percentage Rate -**
**_Interest Rate_** computed to include **_Annual Interest_** plus **_Upfront One-Time Loan Costs_**, **and** **_Discount Points_**. **Apple to Apple Comparisons of Loans.**
**CHAP 8**
790
**Fair Housing Act (1968)** -
**When S\_\_\_\_\_ or L\_\_\_\_\_ Homes**, **Prohibits Discrimination** based on **_Five Classes_**:
**Race, Color, Religion, National Origin, and Sex**
**Race and Color Religiously Never Opposes Sexes**
**Fair Housing Act (1968)** -
**When Selling or Leasing Homes**, **Prohibits Discrimination** based on **_Five Classes_**:
**Race, Color, Religion, National Origin, and Sex**
**Race and Color Religiously Never Opposes Sexes**
**Chap 8**
791
**Federal Fair Housing Amendments of (1988) -**
**Hand\_\_\_\_\_ Status or Fa\_\_\_\_\_\_ Status** where added to **Federal Fair Housing Act of 1968 Discrimination Classes:**
**Race, Color, Religion, Nat Origin, and Sex**
**Federal Fair Housing Amendments of (1988) -**
**Handicapped Status or Familial Status** where added to **Federal Fair Housing Act of 1968 Discrimination Classes:**
**Race, Color, Religion, Nat Origin, and Sex**
**Chap 8**
792
**Truth in Lending - Trigger Terms -** **Trigger Terms Require Full Disclosure in Advertising:**
1. **D\_\_\_\_** Payment
2. **Num\_\_\_\_** of Payments
3. **Am\_\_\_\_** of Payments
4. **Per\_\_\_\_** of Payments
5. **Fin\_\_\_\_** **Charge** Amounts
**Truth in Lending - Trigger Terms -** **Trigger Terms Require Full Disclosure in Advertising:**
1. **Down** Payment
2. **Number** of Payments
3. **Amount** of Payments
4. **Period** of Payments
5. **Finance** **Charge** Amounts
**Does Not Include Loan Assumptions**
**Chap 8**
793
**C\_\_\_ R\_\_\_\_ Act 18\_\_ -**
Act that Prohibits Discrimination based on **Race or Color (No Exemptions)**
**Civil Rights Act 1866 -**
**Act that Prohibits Discrimination based on Race or Color (No Exemptions)**
**Chap 8**
794
**Steering -**
**Denying that Housing is Available** for Sale/Rent or **Channeling Prospects T\_\_\_\_/A\_\_\_\_** **from Certain A\_\_\_\_.**
**Steering -**
**Denying that Housing is Available** for Sale/Rent or **Channeling Prospects Towards/Away** **from Certain Areas.**
**Chap 8**
795
**Redlining -**
A **Lender Alt\_\_\_\_ the T\_\_\_ or Con\_\_\_\_\_ for Home Loans** in **Specific Geographic Areas** as a means of **Discrimination**.
Also when **Insurance** **Companies** **Refuses to Ins\_\_\_ H\_\_\_** due to the **Home's Geographic Location.**
**Redlining -**
A **Lender Altering the Terms or Conditions for Home Loans** in **Specific Geographic Areas** as a means of **Discrimination**.
Also when **Insurance** **Companies** **Refuses to Insure Homes** due to the **Home's Geographic Location.**
**Chap 8**
796
**Group Home -**
**Home** where a **Number of Unrel\_\_\_ People Live Together,** in need of **C\_\_\_, Sup\_\_\_\_\_ or Super\_\_\_\_\_\_\_**.
**These types of homes** **may not be discrimnated by using "Z\_\_\_\_ L\_\_" or "D\_\_\_ Restr\_\_\_\_\_\_' to Prevent One from Being Built.**
**Group Home -**
**Home** where a **Number of Unrelated People Live Together,** in need of **_Care_, _Support_ or _Supervision_**.
**These types of homes** **may not be discrimnated by using "Zoning Laws" or "Deed Restrictions' to Prevent One from Being Built.**
**Chap 8**
797
**Familial Status -**
1. **Refusing to** **"Rent" or "Sell"** **Apt/Home** to **"Families with Children under 18"**
2. **_Properties Occupied_**- **Only People** **62 or Older**
3. **_Properties Occupied_** - **\_\_\_ Person 55 or Older each unit - Occupying \_\_\_% of Units.**
**Familial Status -**
1. **Refusing to** **"Rent" or "Sell"** **Apt/Home** to **"Families with Children under 18"**
2. **_Properties Occupied_**- **Only People** **62 or Older**
3. **_Properties Occupied_** - **1 Person 55-Older each unit - Occupying 80% of Units.**
**Chap 8**
798
**Do Not Call Registry (www.donotcall.gov)**
**Con\_\_\_\_\_ Pro\_\_\_\_\_\_ Act** **regulates** **"Do Not Call Registry."** Regulated by Federal Trade Commission
**Do Not Call Registry (www.donotcall.gov)**
**Consumer Protection Act** **regulates** **"Do Not Call Registry."** Regulated by Federal Trade Commission
**Chap 8**
799
**Eq\_\_\_\_ H\_\_\_\_\_ P\_\_\_\_\_ -**
**As per HUD** this must be **displayed in the Broker's Office.**
**Equal Housing Poster -**
**As per HUD** this must be **displayed in the Broker's Office.**
**Chap 8**
800
**(FCRA) F\_\_ Cre\_\_\_ Rep\_\_\_\_\_ Act -**
**Allows Consumers to Correct Inaccurate Credit to be FAIR**
**(FCRA) Fair Credit Reporting Act -**
**Allows Consumers to Correct Inaccurate Credit to be FAIR**
**Chap 8**
801
**(FCRA) F\_\_\_ C\_\_\_\_\_\_ Repor\_\_\_\_ Act** -
**Act** **Created** to **Protect from Inaccurate Reporting** **to Credit Bureaus - Includes:**
1. **Consumer** has **Right to Inspect Information**,
2. **Correct** any **Inaccurate Info**.
3. If **"Denied Credit"** the **Identity of Credit Bureau** has to be **Disclosed**.
**(FCRA) _Fair_ _Credit_ Reporting Act** -
**Act** **Created** to **Protect from Inaccurate Reporting** **to Credit Bureaus - Includes:**
1. **Consumer** has **Right to Inspect Information**,
2. **Correct** any **Inaccurate Info**.
3. If **"Denied Credit"** the **Identity of Credit Bureau** has to be **Disclosed**.
**Chap 8**
802
**The Int\_\_\_\_\_\_ L\_\_\_ S\_\_\_ F\_\_ Dis\_\_\_\_\_\_ Act** regulates and requires:
1. **_Regulates:_** Interstate Land Sales,
2. **_Property Report_** **To Buyers** with **Full Disclosure of Material Info.**
**The Interstate Land Sales _Full Disclosure Act_** regulates and requires:
1. **_Regulates:_** Interstate Land Sales,
2. **_Property Report_** **To Buyers** with **Full Disclosure of Material Info**
**Chap 8**
803
**Con\_\_\_\_\_\_\_ Priv\_\_\_** **Act of 19\_\_** -
1. Act governs **Collection, Use, Maintenance**, and **Dissemination of Info About Individuals**.
2. Must have **Consent of Individuals (To Disclose Info).**
**Consumer Privacy** **Act of 1974** -
1. Act governs **Collection, Use, Maintenance**, and **Dissemination of Info About Individuals**.
2. Must have **Consent of Individuals (To Disclose Info).**
**Chap 8**
804
**Con\_\_\_\_\_\_\_ Priv\_\_\_** **Act of 19\_\_** -
1. **_Federally Governed Act**_ governs _**Collection_, _Use_, _Maintenance**_, and _**Dissemination_ of Info About Individuals**.
2. Must have **_Consent of Consumer_ Individuals (To Disclose Info).**
**Consumer Privacy** **Act of 1974** -
1. **_Federally Governed Act_** governs **_Collection_, _Use_, _Maintenance**_, and _**Dissemination_ of Info About Individuals**.
2. Must have **_Consent of Consumer_ Individuals (To Disclose Info).**
**Chap 8**
805
**_Federal Fair Housing Act of 1968_** - **Prohibits Discrimination** when **Leasing or Selling Property**. **It is part of Civil Rights Act of 1968 and Prohibits:**
1. **Ref\_\_\_\_ Sell/Rent/Negotiate**
2. **Qu\_\_\_\_\_ Different Terms** **and Conditions**
3. **Adv\_\_\_\_** **Properties** to **Certain People**.
4. **Ste\_\_\_\_ - People Towards and Away from Area**
5. **Blo\_\_\_\_\_** - **Encouraging to Sell/Rent** because **Minorities Moving into Area.**
6. **Redl\_\_\_\_** - **Lenders Altering Terms** and **Insurance Co refusing Insurance in GEO Areas**
7. **Denying Mem\_\_\_\_**: **MLS, Bkr Orgs, etc**
**_Federal Fair Housing Act of 1968_** - Prohibits Discrimination when **Leasing or Selling Property**. **It is part of Civil Rights Act oof 1968 and Prohibits:**
1. **_Refusing Sell/Rent/Negotiate_** **with Any Persons** -
2. **_Quoting Different_ Terms** **and Conditions** to **Different Races.**
3. _**Advertising** **Properties**_ to **Certain People**.
4. **_Steering_ - People Towards and Away from Area**
5. **_Blockbusting_** - **Encouraging to Sell/Rent** because **Minorities Moving into Area.**
6. **_Redlining_** - **Lenders Altering Terms** and **Insurance Co refusing Insurance in GEO Areas**
7. **_Denying Membership_**: **MLS, Bkr Orgs, etc**
**Chap 8**
806
**_Federal Fair Housing Act of 1968_** - **Prohibits Discrimination** when **Leasing or Selling Property**. **It is part of Civil Rights Act of 1968 and Prohibits:**
1. **Refu\_\_\_ - Sell/Rent/Negotiate**
2. **Qu\_\_\_\_\_ - Different Terms** **and Conditions**
3. **Adv\_\_\_\_ -** **Properties** to **Certain People**.
4. **Ste\_\_\_\_ - People Towards/Away from Area**
5. **Blo\_\_\_\_\_** - **Encouraging to Sell/Rent** because **Minorities Moving into Area.**
6. **Redl\_\_\_\_** - **Lenders Altering Terms** and **Insurance Co refusing Insurance in GEO Areas**
7. **Denying Mem\_\_\_\_**: **MLS, Bkr Orgs, etc**
**_Federal Fair Housing Act of 1968_** - Prohibits Discrimination when **Leasing or Selling Property**. **It is part of Civil Rights Act oof 1968 and Prohibits:**
1. **_Refusing Sell/Rent/Negotiate_** **with Any Persons** -
2. **_Quoting Different_ Terms** **and Conditions** to **Different Races.**
3. _**Advertising** **Properties**_ to **Certain People**.
4. **_Steering_ - People Towards/Away from Area**
5. **_Blockbusting_** - **Encouraging to Sell/Rent** because **Minorities Moving into Area.**
6. **_Redlining_** - **Lenders Altering Terms** and **Insurance Co refusing Insurance in GEO Areas**
7. **_Denying Membership_**: **MLS, Bkr Orgs, etc**
**Chap 8**
807
**(ECOA) Eq\_\_\_ Credit Opp\_\_\_\_\_\_ Act** -
**Prohibits Discrimination in Ext\_\_\_\_\_\_\_ of Credit**.
**Basis** of **Race, Color, Religion, National Origin, Sex,** but **also**
**_Marital Status_, _Age**_ and Income from _**Public Assistance_.**
**Race and Color Religiosly Never Opposes Sex. Marriage has Ageless Power to Assist**
**(ECOA) _Equal Credit_ Opportunity Act** -
**Prohibits Discrimination in Extension of Credit**.
**Basis of Race, Color, Religion, National Origin, Sex,** but **also**
**_Marital Status_, _Age**_ and Income from _**Public Assistance_.**
**Race and Color Religiosly Never Opposes Sex. Marriage has Ageless Power of Assist.**
**Chap 8**
808
**(ADA) Americans with Disability Act** -
**Requires Commerical Properties to have**:
1. **Wh\_\_\_\_\_\_\_ Ramps**
2. **Handicapped P\_\_\_\_\_ Spaces**
3. **Handicapped R\_\_\_\_\_\_\_**
**(ADA) Americans with Disability Act** -
**Requires Commerical Properties to have**:
1. **Wheelchair Ramps**
2. **Handicapped Parking Spaces**
3. **Handicapped Restrooms**
**Chap 8**
809
**(ADA) Americans with Disability Act** -
**Requires Commerical Properties to have**:
1. **Wh\_\_\_\_\_\_\_ Ramps to Public Bu\_\_\_\_\_** is required under this law.
2. **Handicapped - P\_\_\_\_\_ Spaces**
3. **Handicapped - R\_\_\_\_\_\_\_**
**(ADA) Americans with Disability Act** -
**Requires Commerical Properties to have**:
1. **Wheelchair _Ramps_ to Public Buildings** is required under this law.
2. **Handicapped _Parking Spaces_**
3. **Handicapped _Restrooms_**
**Chap 8**
810
**(ADA) Americans with Disability Act** -
**Requires Commerical Properties to have**:
1. **Wh\_\_\_\_\_\_\_ Ramps to Public Bu\_\_\_\_\_** is required under this law.
2. **Handicapped P\_\_\_\_\_ Spaces**
3. **Handicapped R\_\_\_\_\_\_\_**
**(ADA) Americans with Disability Act** -
**Requires Commerical Properties to have**:
1. **Wheelchair Ramps to Public Buildings** is required under this law.
2. **Handicapped Parking Spaces**
3. **Handicapped Restrooms**
**Chap 8**
811
**The Int\_\_\_\_\_ L\_\_\_ S\_\_\_ F\_\_\_ Disclosure Act** regulates and requires:
1. **_Regulates:_** **Int\_\_\_\_ L\_\_\_ S\_\_\_,**
2. **_Property Report_** with Full Disclosure of Material Info. Required **and Given to Buyer**
**The Interstate _Land Sales_ _Full Disclosure Act_** regulates and requires:
1. **_Regulates:_** Interstate Land Sales,
2. **_Property Report_** with Full Disclosure of Material Info. Required **and Given to Buyer**
**Chap 8**
812
**Federal Fair Housing Act of 1866**
**Bl\_\_\_\_\_\_\_\_ -**
**Minorities Moving in Area**, Encouraging Owners to Sell
**Federal Fair Housing Act of 1866**
**Blockbusting -**
**Minorities Moving in Area**, Encouraging Owners to Sell
**Chap 8**
813
**(RESPA) Real Estate Settlement and Procedure Act Requirement (7 Items)**
1. **_Loan Estimate_** - **\_\_ Days of Loan App**, and **Your H\_\_\_ L\_\_\_ Tool Kit (CFPB Closing Cost Booklet)**
2. **_Trid-Closing Cost Disclosure_** - **\_\_ Days Prior to Closing.**
3. **F\_\_\_\_\_ Loans Only** **(FHA,VA,USDA)**
4. **_Prohibits_ Ex\_\_\_\_ M\_\_\_\_** held in **Impounds**
5. **_Disclosure_ of Aff\_\_\_\_\_\_ Business Required**
6. **_Prohibits_ Ki\_\_\_\_\_ and Une\_\_\_\_\_ Fees from Settlement Services**
7. **Specific _Title Company_ -** Seller Cannot Require Buyer Use
**(RESPA) Real Estate Settlement and Procedure Act** - **Requirements**
This Act requires: (Disclosure of Settlement Cost)
1. **_Loan Estimate_** - **3 days of Loan App**, and **Your Home Loan Tool Kit** (closing cost booklet)
2. **_Trid-Closing Cost Disclosure_** - **3 days Prior to Closing.**
3. **_Federal Loans Only_** - **(FHA, VA, USDA)**
4. **_Prohibits_ _Excess Money_** held **in Impounds**
5. **_Disclosure_ of _Affiliated Business_ - Required**
6. **_Prohibits_ _Kickbacks_ and _Unearned Fees_ from Settlement Services.**
7. **Specific _Title Company_ -** Seller cannot require buyer use
**Chap 8**
814
**(RESPA) Real Estate Settlement and Procedure Act Requirement (7 Items)**
1. **_Loan Estimate_** - **\_\_ Days of Loan App**, and **Your H\_\_\_ L\_\_\_ Tool Kit (CFPB Closing Cost Booklet)**
2. **_Trid-Closing Cost Disclosure_** - **\_\_ Days Prior to Closing.**
3. **F\_\_\_\_\_ Loans Only** **(FHA,VA,USDA)**
4. **_Prohibits_ Ex\_\_\_\_ M\_\_\_\_** held in **Impounds**
5. **_Disclosure_ of Aff\_\_\_\_\_\_ Business Required**
6. **_Prohibits_ Ki\_\_\_\_\_ and Une\_\_\_\_\_ Fees from Settlement Services**
7. **_Title Company_ -** Buyer's Choice
**(RESPA) Real Estate Settlement and Procedure Act** - **Requirements**
This Act requires: (Disclosure of Settlement Cost)
1. **_Loan Estimate_** - **3 days of Loan App**, and **Your Home Loan Tool Kit** (closing cost booklet)
2. **_Trid-Closing Cost Disclosure_** - **3 days Prior to Closing.**
3. **_Federal Loans Only_** - **(FHA, VA, USDA)**
4. **_Prohibits_ _Excess Money_** held **in Impounds**
5. **_Disclosure_ of _Affiliated Business_ - Required**
6. **_Prohibits_ _Kickbacks_ and _Unearned Fees_ from Settlement Services.**
7. **_Title Company_ -** Buyer's Choice
**Chap 8**
815
**_Federal Fair Housing Act of 1968_** - Prohibits Discrimination when **_Leasing_ or _Selling Property_**. **It is part of Civil Rights Act oof 1968 and Prohibits:**
1. **Ref\_\_\_\_\_ Sell/Rent/Negotiate** - **with Any Persons** - **Making House Unavailable**.
2. **Qu\_\_\_\_ Different Terms** **and Conditions**
3. **Adv\_\_\_\_\_** **Properties** to **Certain People**.
4. **Ste\_\_\_\_\_ - Chanelling People Towards/Away from Area**
5. **Bloc\_\_\_\_\_\_** - **Encouraging to Sell because** **Minorities Moving into Area.**
6. **Red\_\_\_\_\_** - **Lenders Altering Terms** **and Insurance Co refusing Insurance**
7. **Denying Mem\_\_\_\_\_\_**: **MLS, Bkr Orgs, etc**
**_Federal Fair Housing Act of 1968_** - Prohibits Discrimination when **_Leasing_ or _Selling Property_**. **It is part of Civil Rights Act oof 1968 and Prohibits:**
1. **_Refusing Sell/Rent/Negotiate_** **with Any Persons** - **Making House Unavailable**.
2. **_Quoting Different_ Terms** **and Conditions**
3. _**Advertising** **Properties**_ to **Certain People**.
4. **_Steering_ - Chanelling People Towards/Away from Area**
5. **_Blockbusting_** - **Encouraging to Sell because** **Minorities Moving into Area.**
6. **_Redlining_** - **Lenders Altering Terms** **and Insurance Co refusing Insurance**
7. **_Denying Membership_**: **MLS, Bkr Orgs, etc**
**Chap 8**
816
**_Federal Fair Housing Act of 1968_** - Prohibits Discrimination when **_Leasing_ or _Selling Property_**. **It is part of Civil Rights Act oof 1968 and Prohibits:**
1. **Ref\_\_\_\_\_ Sell/Rent/Negotiate** - **with Any Persons** - **Making House Unavailable**.
2. **Qu\_\_\_\_ Different Terms** **and Conditions**
3. **Adv\_\_\_\_\_** **Properties** to **Certain People**.
4. **Ste\_\_\_\_\_ - Chanelling People Towards/Away from Area**
5. **Bloc\_\_\_\_\_\_** - **Encouraging to Sell because** **Minorities Moving into Area.**
6. **Red\_\_\_\_\_** - **Lenders Altering Terms** **and Insurance Co refusing Insurance**
7. **Denying Mem\_\_\_\_\_\_**: **MLS, Bkr Orgs, etc**
**_Federal Fair Housing Act of 1968_** - Prohibits Discrimination when **_Leasing_ or _Selling Property_**. **It is part of Civil Rights Act oof 1968 and Prohibits:**
1. **_Refusing Sell/Rent/Negotiate_** **with Any Persons** - **Making House Unavailable**.
2. **_Quoting Different_ Terms** **and Conditions**
3. _**Advertising** **Properties**_ to **Certain People**.
4. **_Steering_ - Chanelling People Towards/Away from Area**
5. **_Blockbusting_** - **Encouraging to Sell because** **Minorities Moving into Area.**
6. **_Redlining_** - **Lenders Altering Terms** **and Insurance Co refusing Insurance**
7. **_Denying Membership_**: **MLS, Bkr Orgs, etc**
**Chap 8**
817
RESPA'S main purpose is to Disclosures of S\_\_\_\_\_\_\_ Costs.
**RESPA'S main purpose** is to **- Disclosures of Settlement Costs.**
818
**Advertising (Part of What Act?)**
1. Ads cannot contain wording (no matter how subtle) indicating a **Discriminatory Preference.**
2. **Discriminatory Wording**: No Wheellchairs, Able Bodied Persons Only; Christian Handyman; Close to Catholic School, White Neighborhood.
3. **Photos** should represent **Entire Population**
4. **Advertising** should be broad based and **Not Focus** on Any one group or **Groups.**
**Advertising - Fair Housing Act of 1968**
1. Ads cannot contain wording (no matter how subtle) indicating a **Discriminatory Preference.**
2. **Discriminatory Wording**: No Wheellchairs, Able Bodied Persons Only; Christian Handyman; Close to Catholic School, White Neighborhood.
3. **Photos** should represent **Entire Population**
4. **Advertising** should be broad based and **Not Focus** on Any one group or **Groups.**
**Chap 8**
819
**L\_\_\_\_ to V\_\_\_ R\_\_\_\_ -**
Often used **Ratio in Mortgage Lending** to **Determine the Amount Necessary to Put in a Down-Payment** and **Whether a Lender will Extend Credit to a Borrower.**
**Loan Amt / Appraised Value = LTV**
**Loan to Value Ratio -**
Often used **Ratio in Mortgage Lending** to **Determine the** **Amount Necessary to Put in a Down-Payment** and **Whether a Lender will Extend Credit to a Borrower.**
**Loan Amt / Appraised Value = LTV**
**Chap 7**
820
FHA is regulated by what Dept?
**HUD -**
**Dept of Housing and Urban Developmen**t - _Regulates FHA_.
**Chap 7**
821
**Cond\_\_\_\_\_\_ C\_\_\_\_\_\_\_\_\_**
FHA Appraisal
**Conditional Commitment** -
FHA Appraisal
**Chap 7**
822
**Es\_\_\_\_ Clause** **(FHA Amen\_\_\_\_\_ Clause)** -
1. **Used if FHA Appraisal** **Value** is **Not Equal to or Greater** **than Purchase Price.**
2. **Buyers must** **See Appr\_\_\_\_\_ or Can Back Out of Contract.**
**Escape Clause** **(FHA Amendatory Clause)** -
1. **Used if FHA Appraisal Value** is **not equal to or greater** **than purchase price.**
2. **Buyers must** **See Appraisal or Can Back Out of Contract.**
**Chap 7**
823
**(CRV) Cer\_\_\_\_\_ of Rea\_\_\_\_\_\_ Value** -
## Footnote
**VA Appraisal**
**(CRV) Certificate of Reasonable Value** -
## Footnote
**VA Appraisal**
**Chap 7**
824
**VA F\_\_\_\_\_ Fee -**
**Charged** on **VA loan instead of MIP**
**VA Funding Fee -**
**Charged** on **VA loan instead of MIP**
**Chap 7**
825
**FHA and VA Loans** -
Both types of loans have **No Pre\_\_\_\_\_\_ Pen\_\_\_\_\_\_**
**FHA and VA Loans** -
Both types of loans have **No Prepayment Penalties**
**Chap 7**
826
**Assist Lenders to _Provide Loans**_ for _**Low to Moderate_ _Income_** **Households** in **"Rural Areas"**
**(USDA) US Dept of Agriculture Loans** **(Guaranteed) - Rural Areas**
**Assist lenders to _Provide Loans**_ for _**Low to Moderate Income_** **Households** in **"****_Rural Areas"_**
**Chap 7**
827
**P**
**AZ Department of Housing** provides these **_Loans in Hardest Hit Areas by Foreclosures_**
**Pathway to Purchase - Down Payment Assistance** - **Foreclosure Areas**
**AZ Department of Housing** provides these **_Loans in Hardest Hit Areas by Foreclosures_**
**Chap 7**
828
**Con\_\_\_\_\_\_\_ Loans** -
**Loan** is made Solely **Based on Security and Borrower's Ability to Repay.**
**No Guarantees or Government Insurance**
**Conventional Loans** -
**Loan** is made Solely **Based on Security and Borrower's Ability to Repay.**
**No Guarantees or Government Insurance**
**Chap 7**
829
**Conventional (Un\_\_\_\_\_\_) Loans** -
**Loans** that **Require \_\_% down. Based on Borrower's Ability to Repay. No Government Insurance or Guarantee**
**Conventional (Unisured) Loans** -
**Loans** that **Require 20% down. Borrower's Ability to Repay. No Government Insurance or Guarantee**
**Chap 7**
830
**Loans** **offered at a Higher Interest Rate** for **Less Qualified Borrowers**
**Subprime Loans - (Less Qualified)**
**Loans** **offered at a Higher Interest Rate** for **Less Qualified Borrowers**
**Chap 7**
831
**P\_\_\_\_\_\_\_ I\_\_\_\_\_ and H\_\_\_\_ M\_\_\_\_ L\_\_\_\_\_**
**Loans** offered at **Higher Interest for**
**"_Hard to Finance_" Borrowers and Properties**
**Private Investor and Hard Money Loans -**
**Loans** offered at **Higher Interest for**
**"_Hard to Finance_" Borrowers and Properties**
**Chap 7**
832
**Discount Point** **and Buydowns**
Used to **Increase L\_\_\_\_'s Y\_\_\_** or **Lower Borrowers Rate**
**Discount Point** **and Buydowns**
Used to **Increase Lender's Yield** or **Lower Borrowers Rate**
**Chap 7**
833
**Loan O\_\_\_\_\_ Fee** -
**Covers** **_Initial Cost_ of Loan**
**Loan Origination fee** -
Covers **Initial Cost of Loan**
**Chap 7**
834
**Und\_\_\_\_\_\_\_ Fee** -
**Offset Cost** to determine **Borrower's Ability Qualify** or to **Repay Loan**
**Underwriting fee** -
**Offset Cost** to determine **Borrower's Ability Qualify** or to **Repay Loan**
**Chap 7**
835
**Estimate** how much **Borrower can Afford to Borrow**
**Pre-Qualification** -
**Estimate** how much **Borrower can Afford to Borrow**
**Chap 7**
836
**Pre-Approval** -
**Completed** **L\_\_\_ App**, **Inc\_\_\_\_** **provided**, and **Borrower's****Cr\_\_\_ Report reviewed**that _indicates_ a**Strong Possibility Loan will Close.**
**Pre-Approval** -
**Completed** **Loan App**, **Income** provided, and **Borrower's****Credit Report reviewed**that indicates a**Strong Possibility Loan will Close.**
**Chap 7**
837
**Credit Score (Fico Score)** -
**Ma\_\_\_\_\_\_\_\_ Formula** to indicate **Person's Credit History**
**Credit Score (Fico Score)** -
**Mathematical Formula** to indicate **Person's Credit History**
**Chap 7**
838
**_HOA Reserve Funding_** **(FHA Loans Require)** -
**FHA Loans and other Loans Require HOA Reserves:**
1. **\_\_% Of HOA Budgeted Income,**
2. **\_\_%** - **If less than \_\_% Occupancy**
**_HOA Reserve Funding_** **(FHA Loans Require)** -
**FHA Loans and other Loans Require HOA Reserves:**
1. **10%** - **Of HOA Budgeted Income,**
2. **20%** - If less than **50% Occupancy**
**Chap 7**
839
**(DCR) D\_\_\_ Cov\_\_\_\_\_\_ Rat\_\_\_** -
**_Net income_****divided by** (**_Annual) PI payments_**
**=** **_Ratio of Net Income_** **from "_Commercial Properties_**."
**Lenders require above \_\_**
* **_Net Income_**
* **_(_Annual) PI Payments**
**(DCR) Debt Coverage Ratio** -
**_Net income_****divided by** (**_Annual) PI payments_****= Ratio of Net Income** **from "_Commercial Properties_**."
**Lenders require above 1**
* **_Net Income_**
* **_(_Annual) PI Payments**
**Chap 7**
840
**C\_\_\_\_\_\_\_ Cre\_\_\_\_ Tran\_\_\_\_\_\_\_**
**(Financial Institutes/Merchants -Person/Company) -**
**Acquires Property for P\_\_\_\_\_\_, Fam\_\_\_ or Household** purposes **(Loan, Lease or Sale under $25,000)**
**Owner Occ and 1-4 Units Only**
**Consumer Credit Transaction**
**(Financial Institutes/Merchants -Person/Company) -**
**Acquires Property for _Personal_, _Family_ or _Household_** purposes. **(Loan, Lease or Sale under $25,000)**
**Owner Occ and 1-4 Units Only**
**Chap 7**
841
**Non-Consumer Credit Transaction**
(Finance Institutes/Merchant - Person or Company) -
**Acquires Property for Bus\_\_\_\_\_ Purposes**. **Profit motives** or **Inv\_\_\_\_\_ Purposes**, **Property Taxes**
**Non-Consumer Credit Transaction**
(Finance Institutes/Merchant - Person or Company) -
**Acquires Property for Business Purposes.** Profit motives or **Investment Purposes**, **Property Taxes**
**Chap 7**
842
**W\_\_\_\_\_ R\_\_\_\_\_ from the L\_\_\_\_\_** -
**Seller must request,** when **Seller _Does Not_ want to remain Liable for Loan and wants Buyer to take over loan.**
**Written Release from the Lender** -
**Seller must request**, when **Seller _Does Not_ want to remain Liable for Loan and wants Buyer to take over Loan**
**Chap 7**
843
**N\_\_\_\_\_\_\_ -**
**_Process_ of Lender _Rewriting Loan_ Terms** **of Existing Loan**, _Subs New Buyer_ and Releases Seller's Liability.
**_Novation_ -**
**_Process_ of Lender _Rewriting Loan_ Terms** **of Existing Loan**, _Subs New Buyer_ and Releases Seller's Liability.
**Chap 7**
844
**Red\_\_\_\_ Cert\_\_\_\_\_ (Assu\_\_\_\_\_ Letter)** - **For Assumed Loans**
1. **Lender Gives to Buyer Assuming Loan**.
2. **Verifies Loan Balance and Terms** when **Buyer takes over Payments**
**Reduction Certificate (Assumption Letter)** - **For Assumed Loans**
1. **Lender Gives to Buyer Assuming Loan**.
2. **Verifies Loan Balance and Terms** when **Buyer takes over Payments**
**Chap 7**
845
**Financial Intermediaries (Primary Mortage Market Lenders) -**
**_Originate Loans directly to Borrower_:**
1. **Comm\_\_\_\_ Banks** and **C\_\_\_\_ Unions**,
2. **Ins\_\_\_\_\_** **Companies,**
3. **Port\_\_\_\_\_ Lenders,**
4. **Mort\_\_\_\_\_** **Brokers** and **Mortgage Bankers**
**Financial Intermediaries (Primary Mortage Market Lenders) -**
**_Originate Loans directly to Borrower_:**
1. **Commercial** **Banks** and **Credit Unions**,
2. **Insurance** **Companies,**
3. **Portfolio Lenders,**
4. **Mortgage** **Brokers** and **Mortgage Bankers**
**Chap 7**
846
1. **2 Financial Intermediaries (Prime Market) that _Originate Loans_**
2. **Buy Loans - in _Secondary Market_**
**_Commercial_ _Banks_ and _Credit Unions_ (Buy)**
1. **2 Financial Intermediaries (Prime Market)** that **_Originate Loans_**
2. **_Buy Loans_** in **_Secondary Market_**
**Chap 7**
847
-
1. **_Financial Intermediary_** that **Make "Large Loans" to Commercial and Industrial Borrowers.**
2. **_Residential Loans Done_ - thru Mortgage Companies**
3. **_Buy Loans_ in Secondary Market**
**Insurance Companies** -
1. **_Financial Intermediary_** that **Make "Large Loans" to Commercial and Industrial Borrowers.**
2. **_Residential Loans Done_ - thru Mortgage Companies**
3. **_Buys Loans_ in Secondary Market**
**Chap 7**
848
**Por\_\_\_ Lenders** -
A Primary Market Lender (Financial Intermediary). **Does Not Sell Loans. Non-Conforming or Jumbo Loans**
**Portfolio Lenders** -
A Primary Market Lender (Financial Intermediary). **Does Not Sell Loans. Non-Conforming or Jumbo Loans**
**Chap 7**
849
**_M_**
1. **Primary Lender (Financial Intermediary)**
2. **_May_** **_Represent_ - _Life Insurance Co_.**, **_Pension Funds_**, and **_Private Investos_** **in _Originating Loans_**.
3. **Sells Loans** to **Secondary Market**
**_Mortgage Brokers_ and _Bankers_**
1. **Primary Lender (Financial termediary)**
2. **_May_** **_Represent_ - _Life Insurance co_.**, **_Pension Funds_**, and **_Private Investors_** **in _Originating Loans_**.
3. **_Sells Loans_** to **Secondary Market**
**Chap 7**
850
**AZ Dept of Fin\_\_\_\_\_\_ Inst\_\_\_\_\_\_**
**"Licenses" Mortgage Loan Originators (ML0)**
**AZ Dept of Financial Institutions**
**"Licenses" Mortgage Loan Originators (ML0)**
**Chap 7**
851
**Gathering of Loans** to **Sell in Secondary Market**
**Warehousing** -
**Gathering of Loans** to **Sell in Secondary Market**
**Chap 7**
852
1. **Certificate Signed** **by Borrower** **stating**
1. **Exact Loan Balance and Interest Rate**.
2. **Tenant to Verify Lease Terms**.
3. **Used by Lenders Selling Loans.**
**Estoppel Certificate** -
1. **Certificate Signed by Borrower** **Stating**
1. **Exact _Loan Balance and Interest Rate_**.
2. **Tenant to Verify _Lease Terms_**_._
3. **Used by Lenders Selling Loans.**
**Chap 7**
853
**Borrower Makes Payments to this service provider**, which are **Passed to Loan Investor**. **Seller Carrybacks often use Title Companies**
**Chap 7**
**Loan Servicing** -
**Borrower Makes Payments to this service provider**, which are **Passed to Loan Investor**. **Seller Carrybacks often use Title Companies**
**Chap 7**
854
1. **Issues Certicates** that **Guarantee _FHA and VA Loans_** to **Secondary Market Purchasers.**
2. **_Operates Special Assistance_** aspects of **Federally _Assisted Low Income_ Housing.**
**Ginnie Mae aka Gov Nat'l Mortgage Assoc.(GNMA) -**
1. **Issues Certificates** **that _Guarantee FHA and VA Loans_** to **Secondary Market Purchasers**.
2. **_Operates Special Assistance_** aspects of **Federally _Assisted Low Income_ Housing.**
**Chap 7**
855
**Fannie Mae (Fed**. **Nat'l Mortgage Assoc)** and **Freddie Mac (Fed. Home Loan Mort. Corp)**
1. **Sets Standards** for **Conv\_\_\_\_\_ Loans.**
2. **Buys Conv\_\_\_\_\_ Loans** in **Sec\_\_\_\_\_ Market.**
3. **Sells Loans and Issues Bo\_\_\_ - Secured by Mortgages (Mortgage Backed Securities).**
4. **Created "Uniform Res Loan App (URLA-Form \_\_\_\_).**
**Fannie Mae (Fed**. **Nat'l Mortgage Assoc)** and **Freddie Mac (Fed. Home Loan Mort. Corp)**
1. **Sets Standards** for **Conventional Loans.**
2. **Buys Conventional Loans** in Secondary Market.
3. **Sells Loans** **and Issues Bonds** - **Secured by Mortgages (Mortgage Backed Securities).**
4. **Created "Uniform Res Loan App (URLA-Form 1003)**
**Chap 7**
856
**Financial Intermediaries "_Buy Loans_" from _Secondary Market_**
1. **Ins\_\_\_\_\_\_ Companies - _(Buy Loans)_**
2. **Com\_\_\_\_\_ Banks and Credit Unions - (_Buy Loans)_**
3. **Fa\_\_\_\_ M\_\_ - _(Buy Conventional Loans)_**
**Financial Intermediaries "_Buy Loans_" from _Secondary Market_**
1. **Insurance Companies (Buy Loans)**
2. **Commercial Banks and Credit Unions (Buy Loans)**
3. **Fannie Mae (Buy Conventional Loans)**
**Chap 7**
857
**Financial Intermediaries who "_Sell Loans_" to _Secondary Market_**
1. **Mortgage Br\_\_\_\_** and **Ba\_\_\_\_\_\_,**
2. **Fannie Mae Sells** **Loans** and **Issues Secured Bonds (Mortgage Backed Securities)**
3. **GNMA - Issues Certs Guarantee VA/FHA loans to 2nd Market P\_\_\_\_\_\_\_\_\_.**
**Chap 7**
**Financial Intermediaries who "_Sell Loans_" to _Secondary Market_**
1. **Mortgage Brokers** and **Bankers,**
2. **Fannie Mae Sells** **Loans** and **Issues Secured Bonds (Mortgage Backed Securities)**
3. **GNMA - Issues Certs Guarantee VA/FHA loans to 2nd Market Purchasers**
**Chap 7**
858
**Ins\_\_\_\_ Conv\_\_\_\_\_\_ Loans** -
**Loans that have** **PMI**, and are **above 80% but no more that 97%** **of Appraised Value.**
**Insured Conventional Loans** -
**Loans that have** **PMI**, and are **above 80% but no more that 97%** **of Appraised Value.**
**Chap 7**
859
Market where **Primary Market Loans are Bought and Sold to Other Lenders and Investors.**
**Secondary Market** -
Market where **Primary Market Loans are _Bought_ and _Sold_ to Other Lenders and Investors**.
**Chap 7**
860
**(MGIC) Mor\_\_\_\_ Guarantee Ins\_\_\_\_\_ Corporation** -
**A Private Company** where mortgage insurance providers **Assume a Portion of a Lender’s or Investor’s Risk in Making a Mortgage Loan**, ultimately shielding taxpayers from liability
**(MGIC) Mortgage Guarantee Insurance Corporation** -
**A Private Company** where mortgage insurance providers **Assume a Portion of a Lender’s or Investor’s Risk in Making a Mortgage Loan**, ultimately shielding taxpayers from liability
**Chap 7**
861
**Borrowers must pay Upfront MIP (UFMIP) at Closing** and will also **Have their Annual Premium Added to their Monthly Mortgage Payments**.
**Also Protects Lender in Event of Foreclosure**
**(MIP) Mortgage Insurance Premium** -
**Borrowers must pay Upfront MIP (UFMIP) at Closing** and will also **Have their Annual Premium Added to their Monthly Mortgage Payments**.
**Also Protects Lender in Event of Foreclosure**
**Chap 7**
862
**Mo\_\_\_\_ Market** -
## Footnote
**Determines the Discount Points**
**Money Market** -
## Footnote
**Determines the Discount Points**
**Chap 7**
863
**Mor\_\_\_\_ (Receives Loan)**
**In a Loan**, **the Lender is the Person who Receives Loan**
**Mortgagee (Receives Loan)**
In a Loan the **Lender is known as Mortgagee.**
**Chap 7**
864
**\_\_\_\_\_\_\_\_ and \_\_\_\_\_\_\_\_**
1. **Sets Standards** for Conventional Loans.
2. **Main Purpose** is to **_Buy Conventional Loans_ in Secondary Market.**
**Fannie Mae/Freddie Mac**
1. **Sets Standards** for Conventional Loans.
2. **Main Purpose** is to **_Buy Conventional Loans_ in Secondary Market.**
**Chap 7**
865
**FHA and L\_\_\_\_\_** -
**Gives Approval,** **when Seller has** **Buyer, who wants to _Assume FHA Loan_**
**FHA and Lender** -
**Gives Approval,** **when Seller has** **Buyer, who wants to _Assume FHA Loan_**
**Chap 7**
866
**SBA Loans (S\_\_\_\_ B\_\_\_\_\_ Adm\_\_\_\_\_\_\_) -**
Loans made to **Purchase or Expand a Small Business**
**SBA Loans (Small Business Administration) -**
Loans made to **Purchase or Expand a Small Business**
**Chap 7**
867
**Certificate** issued by the **VA to Veterans Stating the Eligibility and Amount of Guarantee (Entitlement)**.
**Note: When Paid Off Eligibity is Restored.**
**Certificate of Eligibility -**
**Certificate** issued by the **VA to Veterans Stating the Eligibility and Amount of Guarantee (Entitlement)**.
**Note: When Paid Off Eligibity is Restored.**
**Chap 7**
868
**Required** **on _Conventional Loans_** **above 80%-97% LTV.**
**Mortgage Insurance (MI) or Private Mortgage Insurance (PMI)**
**Required** **on _Conventional Loans_** **above 80%-97% LTV.**
**Chap 7**
869
**Conf\_\_\_\_\_\_ Loans**
**Loans** that **meet all Fannie Mae and Freddie Mac Guidelines**.
**Conforming Loans -**
Loans that **meet all** **_Fannie Mae**_ and _**Freddie Mac_** **Guidelines**
**Chap 7**
870
**Loans** that **"Do Not" meet** **Fannie Mae** or **Freddie Mac** **Guidelines.**
**Non-Conforming Loans -**
Loans that **"Do Not" meet** **Fannie Mae** or **Freddie Mac** **guidelines.**
**Chap 7**
871
**J\_\_\_\_ Loans -**
**Non-Conforming loans** that **Exceed Max Dollar Limits set by Fannie Mae or Freddie Mac** and have Less Favorable Terms.
**Jumbo Loans -**
**Non-conforming loans** that **Exceed Max Dollar Limits set by Fannie Mae or Freddie Mac** and have Less Favorable Terms.
**Chap 7**
872
**R\_\_\_ Lock -**
Lender Guarantees **interest Rate will Not Change prior to closing**
**Rate Lock -**
Lender guarantees **interest rate will not change prior to closing.**
**Chap 7**
873
**Floating Rate -**
**When Rate Could Change** Prior to Closing.
**Floating Rate -**
**When Rate Could Change** Prior to Closing.
**Chap 7**
874
**Tri-\_\_\_\_\_ Credit Report -**
**Single Credit Report** that brings together Data from all **3 Major Credit Reporting Agencies.**
**Tri-Merged Credit Report -**
**Single Credit Report** that brings together Data from all **3 Major Credit Reporting Agencies.**
**Chap 7**
875
**Loan As\_\_\_\_\_\_\_ -**
**Buye**r does not Originate Loan but **Takes Over Payments and Assumes Personal Liability on Existing Loan.**
**Loan Assumption -**
**Buye**r does not Originate Loan but **Takes Over Payments and Assumes Personal Liability on Existing Loan.**
**Chap 7**
876
**P\_\_\_\_\_\_ M\_\_\_\_ M\_\_\_\_\_ -**
**Originate Loans Directly with Borrowers.** These **Lenders** are also **called "Financial Intermediaries".**
**Primary Mortgage Market -**
**Originate Loans Directly with Borrowers.** These **Lenders** are also **called "Financial Intermediaries".**
**Chap 7**
877
**Assig\_\_\_\_\_ -**
The "Process" of **Selling a Loan to Another Lender**
**Assignment -**
The "Process" of **Selling a Loan to Another Lender**
**Chap 7**
878
**FHLMC - Federal H\_\_\_\_ L\_\_\_ M\_\_\_\_ Corp -**
Another Term for **Freddie Mac**
**FHLMC - Federal Home Loan Mortgage Corp -**
Another Term for **Freddie Mac**
**Chap 7**
879
**URLA - Uniform R\_\_\_\_\_\_ L\_\_\_\_ Application -**
Created by Fannie Mae for Residential Loans
**URLA - Uniform Residential Loan Application -**
Created by Fannie Mae for Residential Loans
**Chap 7**
880
**Assist lenders to provide** loans for **_Low to Moderate_ _Income_** **_Households_** in **Rural Areas**
**(USDA) US Dept of Agriculture Loans** **(Guaranteed)** - **Rural Areas**
**Assist lenders to provide** loans for **_Low to Moderate_ _Income_** **_Households_** in **Rural Areas**
**Chap 7**
881
**P\_\_\_\_\_\_ ______ and D\_\_\_\_\_\_ _____ \_\_\_\_\_\_**
**AZ Department of Housing** provides these **Loans in Hardest Hit Areas by Foreclosures**
**Pathway to Purchase - Down Payment Assistance** - **Foreclosure Areas**
**AZ Department of Housing** provides these **Loans in Hardest Hit Areas by Foreclosures**
**Chap 7**
882
**Interest Problems Formula**
**Interest Problems Formula -**
* **_Interest_**
* **Principal x Rate**
**Chap 7**
883
**Loan Problems Formula**
**Loans Problem Formula -**
* **_Loan Amount_**
* **Value x Rate**
**Chap 7**
884
**Lender is** **Insured from Loss by this housing program.****This Insurance Protection Allows Borrower to obtain Loans with _Higher Loan to Value Ratio (LTV)_****and _Smaller Down Payment_** as compared to Unisured Conventional Loans
**(FHA) Fed Housing Administration - Insured Loans**
**Lender is** **Insured from Loss by FHA**. This Insurance **Protection Allows Borrower to obtain Loan with _Higher Loan to Value Ratio (LTV)_****and _Smaller Down Payment_** as compared to Unisured Conventional Loans
**Chap 7**
885
**FHA Insured Loans Guidelines**
1. **FHA Ap\_\_\_\_\_ Lenders make the Loans**
2. **FHA Regulated by Dept of H\_\_\_\_\_ & Ur\_\_\_ Development (HUD)**
3. **_Borrower Pays_ (MIP) Mor\_\_\_\_ Ins\_\_\_\_\_ Pre\_\_\_\_\_. Mortgage Insurance protects the Lender if Property For\_\_\_\_\_**
4. **Appraisal is called Cond\_\_\_\_\_ Com\_\_\_\_\_\_**
5. **Escape Clause (FHA Am\_\_\_\_\_\_ Clause) - Used if Appraisal is _Not Equal or Above Purchase Price_. Buyer can Back-Out.**
6. **Owner Occupied - 1 to __ Units Only**
7. **No Pre\_\_\_\_\_\_ Pen\_\_\_\_\_**
**FHA Insured Loans Guidelines**
1. **FHA Approved Lenders make the Loans**
2. **FHA Regulated by Dept of Housing & Urban Development (HUD)**
3. **_Borrower Pays_ (MIP) Mortgage Insurance Premium. Mortgage Insurance protects the Lender if Property Forclosed**
4. **Appraisal is called Conditional Commitment**
5. **Escape Clause (FHA Amendatory Clause) - Used if Appraisal is not Equal or Above Purchase Price. Buyer can Back-Out.**
6. **Owner Occupied - 1 to 4 Units Only**
7. **No Prepayment Penalties**
886
**VA Loan Requirements**
1. **VA Ap\_\_\_\_\_\_ Lenders makes Loans**
2. **Cert\_\_\_\_\_\_ of Elig\_\_\_\_\_ - Veteran Eligibility and Amount Guarantee (Entitlement)**
3. **VA F\_\_\_\_\_\_ Fee - So No MIP**
4. **_Appraisal is called_ - Cert\_\_\_\_\_ of Reas\_\_\_\_\_ V\_\_\_ (CRV)**
5. **No Down Payment - \_\_\_\_% LTV Unless Over Purchase Price**
6. **Owner Occupied - 1 to __ Units**
7. **No Pre\_\_\_\_\_\_\_ Penalties**
**VA Loan Requirements**
1. **VA Approved Lenders makes Loans**
2. **Certificate of Eligibility - Veteran Eligibility and Amount Guarantee (Entitlement)**
3. **VA Funding Fee - So No MIP**
4. **_Appraisal is called_ - Certiticate of Reasonable Value (CRV)**
5. **No Down Payment - 100% LTV Unless Over Purchase Price**
6. **Owner Occupied - 1 to 4 Units**
7. **No Prepayment Penalties**
**Chap 7**
887
R\_\_ L\_\_
Lender Guarantees the **Interest Rate will not Change** Prior to Closing.
**Rate Lock -**
Lender Guarantees the **Interest Rate will not Change** Prior to Closing.
**Chap 7**
888
**T\_\_\_ S\_\_\_ F\_\_\_**
Charge to **Hire a Tax Service Company** to **_Infom Lender_ _When Property Taxes are Due_ and Payable.**
**Tax Service Fee**
Charge to **Hire a Tax Service Company** to **_Inform Lender When Property Taxes are Due_ and Payable.**
**Chap 7**
889
F\_\_\_\_ R\_\_\_
**Interest Rate Could Change** prior to Closing
**Floating Rate**
**Interest Rate Could Change** prior to Closing
**Chap 7**
890
**Redu\_\_\_\_ Cert\_\_\_\_\_ (Assu\_\_\_\_\_ Letter)**-
1. **Lender Gives to Buyer who is _Assuming Loan_**_._
2. **Verifies Loan Balance and Terms** when **Buyer Takes Over Payments**
**Reduction Certificate (Assumption Letter)**-
1. **Lender Gives to Buyer who is _Assuming Loan._**
2. **Verifies Loan Balance and Terms** when **Buyer Takes Over Payments**
**Chap 7**
891
1. **2 Financial Intermediaries that Originate Loans in Prime Market**
2. **_Buy Loans_ in Secondary Market**
**Commercial Banks and Credit Unions** - **(Buy)**
1. **2 Financial Intermediaries** that **Originate Loans in Prime Market**
2. **_Buy Loans_** in **Secondary Market**
**Chap 7**
892
1. **Primary Lender (Financial Intermediary)**
2. **May** **Represent _Life Insurance Co_.**, **_Pension Funds_**, and **_Private Investors_** **in "_Originating Loans_**."
3. **_Sells Loans_** to **Secondary Market**
**Mortgage Brokers and Bankers (Sell)**
1. **Primary Lender (Financial Intermediary)**
2. **May** **Represent _Life Insurance Co_.**, **_Pension Funds_**, and **_Private Investors_** **in "Originating Loans**."
3. **_Sells Loans_** to **Secondary Market**
**Chap 7**
893
**(MLO) Mortgage Loan Originators**
1. _Licensed by_ **Arizona Dept of Fin\_\_\_\_\_\_ Inst\_\_\_\_\_**
2. _Regulated by_**Nat\_\_\_\_\_ Mortgage Lic\_\_\_\_\_ System (NMLS)**
**(MLO) Mortgage Loan Originators**
1. **_Licensed by_** **Arizona Department of Financial Institution**
2. **_Regulated by_** the **Nationwide Mortgage Licensing System (NMLS)**
**Chap 7**
894
**Ginnie Mae aka Gov N\_\_\_\_ Mor\_\_\_\_ Asso\_\_\_\_ (GNMA)**
1. **_Issues Certificates_** **that _Guarantee_ _FHA and VA Loans_** to **Secondary Market Purchasers**.
2. **_Operates Special Assistance_** aspects of **Federally Assisted _Low Income Housing_.**
**Ginnie Mae aka Gov Nat'l Mortgage Assoc (GNMA) -**
1. **_Issues Certificates_** **that _Guarantee_ _FHA and VA Loans_** to **Secondary Market Purchasers.**
2. **_Operates Special Assistance_** aspects of **Federally Assisted Low Income Housing.**
**Chap 7**
895
1. **_Issues Certificates_** **that Guarantees FHA and VA loans** to **Secondary Market Purchasers.**
2. **Operates Special Assistance** aspects of **Federally Assisted "_Low Income_" Housing.**
**Ginnie Mae aka Gov Nat'l Mortgage Assoc (GNMA) -**
1. **_Issues Certificates_** **that Guaranteeing FHA and VA loans** to Secondary Market Purchasers.
2. **_Operates Special Assistance_** aspects of **Federally Assisted _Low Income Housing_.**
**Chap 7**
896
**(GNMA) Ginnie Mae aka Gov Nat'l Mortgage Assoc -**
1. **_Issues Certs_** **that** **Guar\_\_\_\_\_\_ _FHA and VA Loans_** to **Secondary Market Purchasers.**
2. **_Operates Special Assistance_** aspects of **Federally Assisted "L\_\_ Inc\_\_\_\_" Housing.**
**(GNMA) Ginnie Mae aka Gov Nat'l Mortgage Assoc -**
1. **_Issues Certs_** **that Guaranteeing _FHA and VA Loans_** to **Secondary Market Purchasers**.
2. **_Operates Special Assistance_** aspects of **Federally Assisted _Low Income Housing_.**
**Chap 7**
897
1. **Primary Lender (Financial Intermediaries)**
2. **_May_** **_Represent_ _Life Insurance Co_.**, **_Pension Funds_**, and **_Private Investors_** **in "_Originating Loans_**."
3. **_Sells Loans_** to **Secondary Market**
**_Mortgage Brokers and Bankers_**
1. **Primary Lender (Financial Intermediary)**
2. **_May_** **_Represent_ _Life Insurance Co_.**, **_Pension Funds_**, and **_Private Investors_** **in _"Originating Loans_**_."_
3. **_Sells Loans_** to **Secondary Market**
**Chap 7**
898
**Assist lenders to provide** loans for **Low to Moderate Income** **Households** in **Rural Areas**
**(USDA) US Dept of Agriculture Loans** - (Guaranteed) -
**Assist lenders to provide** loans for **Low to Moderate Income** **Households** in **Rural Areas**
**Chap 7**
899
**AZ Department of Housing** provides these **Loans in Hardest Hit Areas by Foreclosures**
**Pathway to Purchase - Down Payment Assistance** - **Foreclosure Area**
**AZ Department of Housing** provides these **Loans in Hardest Hit Areas by _Foreclosures_**
**Chap 7**
900
**Mortgage Brokers and Bankers**
1. **Primary Lender (Financial termediary)**
2. **May** **Represent L\_\_ Insurance co.**, **P\_\_\_\_\_ Funds**, and **Pr\_\_\_\_\_ Investors** **in "Originating Loans**."
3. **_Sells Loans_** to **Secondary Market**
**Mortgage Brokers and Bankers (Sell)**
1. **Primary Lender (Financial termediary)**
2. **May** **Represent _Life Insurance co_.**, **_Pension Funds_**, and **_Private Investors_** **in Originating Loans**.
3. **_Sells Loans_** to **Secondary Market**
**Chap 7**
901
**P\_\_\_\_\_\_ to P\_\_\_\_\_\_\_\_ - D\_\_\_\_\_\_ P\_\_\_\_ A\_\_\_\_\_\_\_**
**AZ Department of Housing** provides these **Loans in Hardest Hit Areas by Foreclosures**
**Pathway to Purchase - Down Payment Assistance** - **Foreclosure Areas**
**AZ Department of Housing** provides these **Loans in Hardest Hit Areas by Foreclosures**
**Chap 7**
902
**AZ Department of Housing** provides these **Loans in Hardest Hit Areas by Foreclosures**
**Pathway to Purchase - Down Payment Assistance** - **Foreclosure Areas**
**AZ Department of Housing** provides these **Loans in Hardest Hit Areas by Foreclosures**
**Chap 7**
903
**D\_\_\_\_\_\_\_\_\_\_ and B\_\_\_\_\_\_\_\_**
**Used to** **_Increase Lender's Yield_** or **Lower Borrowers Rate**
**Discount Point** **and Buydowns**
Used to **_Increase Lender's Yield_** or **Lower Borrowers Rate**
**Chap 7**
904
**Gathering of Loans** to **Sell in Secondary Market**
**Warehousing** -
**Gathering of Loans** to **Sell in Secondary Market**
**Chap 7**
905
**E\_\_\_\_\_\_\_\_ \_\_\_\_\_\_** -
1. **Certificate Signed by Borrower** **Stating**
1. **Exact _Loan Balance and Interest Rate_**.
2. **Tenant to Verify _Lease Terms_**_._
3. **Used by Lenders Selling Loans.**
**Estoppel Certificate** -
1. **Certificate Signed by Borrower** **Stating**
1. **Exact _Loan Balance and Interest Rate_**.
2. **Tenant to Verify _Lease Terms_**_._
3. **Used by Lenders Selling Loans.**
**Chap 7**
906
1. **Certificate Signed by Borrower** **Stating**
1. **Exact _Loan Balance and Interest Rate_**.
2. **Tenant to Verify _Lease Terms_**_._
3. **Used by Lenders Selling Loans.**
**Estoppel Certificate** -
1. **Certificate Signed by Borrower** **Stating**
1. **Exact _Loan Balance and Interest Rate_**.
2. **Tenant to Verify _Lease Terms_**_._
3. **Used by Lenders Selling Loans.**
**Chap 7**
907
1. **Certificate Signed** **by Borrower** **stating:**
1. **Exact Loan Balanace and Interest Rate**.
2. **Tenant to Verify Lease Terms**.
3. **Used by Lenders Selling Loans.**
**Estoppel Certificate** -
1. **Certificate Signed by Borrower** **Stating:**
1. **Exact _Loan Balance and Interest Rate_**.
2. **Tenant to Verify _Lease Terms_**_._
3. **Used by Lenders Selling Loans.**
**Chap 7**
908
1. **_Financial Intermediary_** that **Make "Large Loans" to Commercial and Industrial Borrowers.**
2. **_Residential Loans Done_ - thru Mortgage Companies**
3. **_Buys Loans_ in Secondary Market**
**Insurance Companies** - **(Buy)**
1. **_Financial Intermediary_** that **Make "Large Loans" to Commercial and Industrial Borrowers.**
2. **_Residential Loans Done_ - thru Mortgage Companies**
3. **_Buys Loans_ in Secondary Market**
**Chap 7**
909
**I\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_** -
1. **_Financial Intermediary_** that **Make "_Large Loans_" to Commercial and Industrial Borrowers.**
2. **_Residential Loans Done_ - thru Mortgage Companies**
3. **_Buys Loans_ in Secondary Market**
**Insurance Companies** -
1. **_Financial Intermediary_** that **Make "Large Loans" to Commercial and Industrial Borrowers.**
2. **_Residential Loans Done_ - thru Mortgage Companies**
3. **_Buys Loans_ in Secondary Market**
**Chap 7**
910
-
1. **_Financial Intermediary_** that **Make "Large Loans" to Commercial and Industrial Borrowers.**
2. **_Residential Loans Done_ - thru Mortgage Companies**
3. **_Buys Loans_ in Secondary Market**
**Insurance Companies** -
1. **_Financial Intermediary_** that **Make "Large Loans" to Commercial and Industrial Borrowers.**
2. **_Residential Loans Done_ - thru Mortgage Companies**
3. **_Buys Loans_ in Secondary Market**
**Chap 7**
911
Used to **Increase Lender's Yield** or **Lower Borrowers Rate**
**Discount Point or Buydowns**
Used to **Increase Lender's Yield** or **Lower Borrowers Rate**
**Chap 7**
912
1. **Primary Lender (Financial Intermediary)**
2. **May** **Represent _Life Insurance Co_.**, **_Pension Funds_**, and **_Private Investors_** **in "_Originating Loans_**."
3. **_Sells Loans_** to **Secondary Market**
**Mortgage Brokers and Bankers**
1. **Primary Lender (Financial Intermediary)**
2. **May** **Represent _Life Insurance Co_.**, **_Pension Funds_**, and **_Private Investors_** **in "Originating Loans**."
3. **_Sells Loans_** to **Secondary Market**
**Chap 7**
913
1. **Primary Lender (Financial Intermediary)**
2. **May** **Represent _Life Insurance Co_.**, **_Pension Funds_**, and **_Private Investors_** **in "_Originating Loans_**."
3. **_Sells Loans_** to **Secondary Market**
**Mortgage Brokers and Bankers**
1. **Primary Lender (Financial Intermediary)**
2. **May** **Represent _Life Insurance Co_.**, **_Pension Funds_**, and **_Private Investors_** **in "Originating Loans**."
3. **_Sells Loans_** to **Secondary Market**
**Chap 7**
914
**Lender is** **Insured from Loss by FHA**. This Insurance **Protection Allows Borrower to obtain _Loan with Higher Loan to Value Ratio (LTV)_****and _Smaller Down Payment_** as compared to Unisured Conventional Loans
**(FHA) Fed Housing Administration - Insured Loans**
**Lender is** **Insured from Loss by FHA**. This Insurance **Protection Allows Borrower to obtain _Loan with Higher Loan to Value Ratio (LTV)_****and _Smaller Down Payment_** as compared to Unisured Conventional Loans
**Chap 7**
915
**Funds For Conventional Loans are secured from**:
1. FHA
2. Fannie Mae
3. Freddie Mac
4. Private Sources
**Funds For Conventional Loans are secured from**:
1. FHA
2. Fannie Mae
3. Freddie Mac
4. **Private Sources**
**Chap 7**
916
**Funds for FHA loans are secured from:**
1. Fannie Mae
2. Approved Local Lenders
3. FDIC
4. FHA
**Funds for FHA loans are secured from:**
1. Fannie Mae
2. **Approved Local Lenders**
3. FDIC
4. FHA
**Chap 7**
917
**Which of the following loans has the Highest Loan to Value?**
1. Conventional
2. Conventional with PMI
3. FHA
4. VA
**Which of the following loans has the Highest Loan to Value?**
1. Conventional
2. Conventional with PMI
3. FHA
4. **VA**
**Chap 7**
918
**The government agency that supervises and administers subsidy programs for low-income housing is:**
1. FHA
2. Fannie Mae
3. GNMA
4. Freddie Mac
**The government agency that supervises and administers subsidy programs for low-income housing is:**
1. FHA
2. Fannie Mae
3. **GNMA**
4. Freddie Mac
**Chap 7**
919
**Freddie Mae and Freddie Mac do NOT:**
1. Sell Loans
2. Sell Bonds Secured by Mortgages
3. Buy Conventional Loans
4. Originate FHA and VA Loans
**Freddie Mae and Freddie Mac do NOT:**
1. Sell Loans
2. Sell Bonds Secured by Mortgages
3. Buy Conventional Loans
4. **Originate FHA and VA Loans**
**Chap 7**
920
**Original Loan Amount** or **Current Loan Balance** is?
**Principal in Loan -**
**Original Loan Amount** or **Current Loan Balance**
**Chap 6**
921
**L\_\_\_\_\_\_**
**_Increase of Rate of Return_ - Using Borrower's Money**
**Leverage** -
**_Increase of Rate of Return_** - **Using Borrower's Money.**
**Chap 6**
922
**Motivated by** **_High Yield**_, _**Low Risk_** and **_Good Security_**
**The Lender -**
Motivated by **_High Yield**_, _**Low Risk_** and **_Good Security_**
**Chap 6**
923
1. **Personal Promise to Repay** - **Serves As Evidence of Debt.**
2. **_No Collateral Referenced_**
3. **_States_ Parties; Amt of Debt; Rate; Pattern of Pymts**
**Promissory Note** -
1. **Personal Promise to Repay** - **Serves As** **Evidence of Debt.**
2. **_No Collateral Referenced_**
3. **_States_ Parties; Amt of Debt; Rate; Pattern of Pymts**
**Chap 6**
924
**P\_\_\_\_\_\_\_ N\_\_\_\_**
**States:**
1. **Lender/Borrower,**
2. **Debt Amt,**
3. **Rate**,
4. **Pattern of Pymts**
5. **No Collateral Stated**
**Promissory Note**
**States:**
1. **Lender/Borrower,**
2. **Debt Amt,**
3. **Rate**,
4. **Pattern of Pymts**
5. **No Collateral Stated**
**Chap 6**
925
1. **_Hypothecates Property_ as _Collateral_,** **with Provisions to Foreclose.**
2. **States _Legal Description_** and
3. **_Recorded_ by Lender**.
**Mortgage or Trust Deed** -
1. **_Hypothecates Property_ as _Collateral_,** **with Provisions to Foreclose.**
2. **States _Legal Description_** and
3. **_Recorded_ by Lender**.
**Chap 6**
926
**Level Payments** of **Principal and Interest Only**
**Amortized** - **P&I**
**Level Payments** of **Principal and Interest Only**
**Chap 6**
927
**PITI Payments - Principal, Interest, Taxes and Insurance** are called?
**Budget** -
## Footnote
**PITI Payments - Principal, Interest, Taxes and Insurance**
**Chap 6**
928
**Str\_\_\_\_\_ Loan aka S\_\_\_\_ Term Loan/T\_\_\_\_ Loan** -
**Loan with _Interest Only Payments_**. **Principal due at end.**
_Example_: **Construction loans.**
**Straight Loan aka Short Term Loan/Term Loan** -
**Loan with _Interest Only Payments_. Principal at end.**
_Example_: Construction Loan
**Chap 6**
929
What type of **Principal Only** **Payments (Amoritized)** and **Interest Added to Loan Balance.**
**Negative Amortization** -
**Principal Only Payments (Amoritized),** and **Interest Added to Loan Balance**
**Chap 6**
930
**Payments on Real Estate Loans:**
**Are They Paid in _Advance_ or in _Arrears_**?
**Arrears** -
**Payments on Real Estate Loans**"**Paid in Arrears**."
**Chap 6**
931
**Buyer has** **Insufficent Down Payment**, and **Seller becomes Lender (Seller CarryBack Financing)**
**Purchase Money Loan** -
**Buyer has** **Insufficent Down Payment**, and **Seller becomes Lender (Seller CarryBack Financing)**
1. **200 SP**
2. **120 1st Balance**
3. **_80 Seller Equity_**
4. **(50 Buyer Down From Slr Equity)**
5. **30 To Seller (Seller Carr Back)**
6. **120 New Lender Loan**
**Chap 6**
932
**In this Loan,** **Rate Adjustments are Tied to**
1. **(MTA)** **Monthly Tr\_\_\_\_\_ Av\_\_\_\_\_**
2. **(LIBOR) L\_\_\_\_ Interb\_\_\_ Offered R\_\_\_**
**Adjustable Rate Loan (ARM) -**
**Rate Adjustments Tied to:**
1. **(MTA)** **Monthly Treasury Average**
2. **(LIBOR) London Interbank Offered Rate**
**Chap 6**
933
**Loan** **Secures More than One Property.**
**Blanket Loans** -
**Loan** **Secures More than One Property**
**Chap 6**
934
**Con\_\_\_\_\_\_\_\_ Loan aka Interim Loan**
1. **_Funds Advanced in Installments_ as Things Progress**.
2. **Interest Only Payments. Principal Due at Maturity of Debt.**
3. **Short (Term) Loans or Interim Loans**.
**Construction Loan** **aka Interim Loan** -
1. **_Funds Advanced in Installments_ As Things Progress**.
2. **Interest Only Payments**, Principal Due at Maturity of Debt.
3. **Short** **(Term) or Interim loans, Straight loan**.
**Chap 6**
935
**T\_\_\_\_-O\_\_\_ Loan** -
**To** **Pay-Off Construction Loan - Buyer will take _Long Term Financing_ or** **_Permanent Loan_.**
**Take-Out Loan** -
**To** **Pay-Off Construction Loan - Buyer will take _Long Term Financing_ or** **_Permanent Loan_.**
**Chap 6**
936
**G\_\_\_\_, Sw\_\_\_\_\_ or Br\_\_\_\_ Loan**
**Short Term Loan** to **Allow Buyer to _Borrow Funds for Down Payment_** **for Another Property.**
Used to **Bridge The Gap** **_between_** **Construction Loan and Take-Out (Permanent Buyer Loan)**
**Gap, Swing, or Bridge Loan** -
**Short Term Loan** to **Allow Buyer to** **_Borrow Funds for Down Payment_ for Another Property.**
Used to **Bridge Gap between** **Construction Loan** **and Take-Out loan** **(Permanent Buyer Loan)**
**Chap 6**
937
**R\_\_\_\_ Ann\_\_\_ M\_\_\_\_\_ (RAM)**
**Lender Pays** **Borrower - Monthly Payments** **- For this Type of Loan**
**Reverse Annuity Mortgage (RAM)** -
**Lender Pays** **Borrower - Monthly Payments - For this Type of Loan**
**Chap 6**
938
**N\_\_-R\_\_\_\_\_\_ Loan** -
**_Borrower Not Held Liable_**. **Lender Can Sieze Collatoral** but **_No Further Compensation_** From Borrower.
**Non-Recourse Loan** -
**_Borrower Not Held Liable_**. **Lender Can Sieze Collatoral** but **_No Further Compensation_** From Borrower.
**Chap 6**
939
**Acc\_\_\_\_\_\_ Clause** -
**Due and Payable** upon **Default (Think Fast!).**
**Acceleration Clause** - **Default**
**Due and Payable** upon **Default (Think Fast!).**
**Chap 6**
940
**A\_\_\_\_\_\_\_ Clause** -
**Due** and **Payable _Upon Sale_, Upon Transfer of Ownership**
**Alienation Clause** -
**Due** and **Payable _Upon Sale_, Upon Transfer of Ownership**
**Chap 6**
941
**Pr\_\_\_\_\_\_\_ P\_\_\_\_\_\_ Clause** -
**_Lender Yield Maintenance_ Clause**. **Used if _Loan Paid-Off Early_.**
**Prepayment Penalty Clause** -
**_Lender Yield Maintenance_ Clause****Used If _Loan Paid-Off Early_.**
**Chap 6**
942
**De\_\_\_\_\_\_\_\_ Clause** -
**Borrower Pays-Off**, **Mortgage and Note Null and Void**
**Defeasance Clause** -
**Borrower Pays-Off**, **Mortgage and Note Null and Void**
**Chap 6**
943
**R\_\_\_\_\_\_ Clause or P\_\_\_\_\_ Release** -
**Allows Individual Parcels** to be **Released From Blanket Loan**
**Release Clause or Partial Release** -
**Allows** **Individual Parcels** to be **Released From Blanket Loan**
**Chap 6**
944
**N\_\_-Dist\_\_\_\_\_\_ Clause** -
**Lender Agrees** **_Not To_** **_Terminate_ Tenant Leases**, **During Foreclosure**
Note: **_Under Protecting Tenants at Foreclosure_**: **Tenant Gets** **90 day Notice to Vacate** or **Lease is honored to term.**
**Non-Disturbance Clause** -
Lender Agrees **_Not To_** **_Terminate_ Tenant Leases**, **During** **Foreclosure**
Note: **_Under Protecting Tenants at Foreclosure_**: **Tenant Gets** **90 day Notice to Vacate** or **Lease is honored to term.**
945
**P\_\_\_\_\_\_\_ G\_\_\_\_\_\_\_\_ Clause** -
1. **_Indicates_** **_Person Liable_ if Default Occurs - Used for Corps / LLC's**.
**Personal Guarantee Clause** -
1. **_Indicates_** **_Person Liable_ if Default Occurs - Used for Corps / LLC's**.
**Chap 6**
946
**U\_\_\_\_\_** -
**_Charging_** **_More Than_ Rate by Law**
**Usury** -
**_Charging_** **_More Than_ Rate by Law**
**Chap 6**
947
**C\_\_\_\_\_\_ Rate, No\_\_\_\_ Rate, Nom\_\_\_\_ Rate** -
Rate Specified in Note
**Contract Rate, Note Rate, Nominal Rate** -
Rate Specified in Note
**Chap 6**
948
**If No Rate** **in Agreement, This Rate is Used**. Also in **Judgements** **unless Court Stipulates Different Rate**.
**Legal Rate** -
**If No Rate** **in Agreement, This Rate is Used**. Also in **Judgements** **unless Court Stipulates Different Rate.**
**Chap 6**
949
**Charge Made To - Borrow Money** (Usually Simple Interest)
**Interest -**
**Charge Made To - Borrow Money** (Usually Simple Interest)
**Chap 6**
950
## Footnote
**Type of Loan that is Insured by Federal Housing Admin, HUD**
**FHA Loan -**
Insured by Federal Housing Admin, HUD
**Chap 6**
951
**Guaranteed** by the **Dept of Veteran's Affairs**
**VA Loan -**
**Guaranteed** by the **Dept of Veteran's Affairs**
**Chap 6**
952
**Made by Lending Institutions** but **Without Government Guarantee or Insurance.**
**Conventional Loan -**
**Made by Lending Institutions** but **Without Government Guarantee or Insurance.**
**Chap 6**
953
**W\_\_\_\_\_\_\_\_ Loan -**
1. **_Seller Remains Liable for Existing Loan_**.
2. **Seller Creates _New Loan for Buyer for Greater Amount_ (which included 1st loan) and a _Higher Interest Rate_**.
3. **_Buyer**_ Takes - _**No Liability_** for Existing Loan.
**Wraparound Loan -**
1. **_Seller Remains Liable for Existing Loan_**.
2. **Seller Creates _New Loan for Buyer for Greater Amount_ (which included 1st loan) and a _Higher Interest Rate_**.
3. **_Buyer**_ Takes - _**No Liability_** for Existing Loan.
**Chap 6**
954
**"One Payment" is Larger than Monthly Payments**. **May be Partially Amortized** with **Last Payment being a Baloon.**
**Balloon Payment -**
**"One Payment" is Larger than Monthly Payments**. **May be Partially Amortized** with **Last Payment being a Baloon**
**Chap 6**
955
**B\_\_\_\_ P\_\_\_\_ -**
**One one-hundreth of 1%** - Used to Indicate **Increases or Decrease in Interest Rate**. **.0001**
**Basis Points -**
**One one-hundreth of 1%** - Used to Indicate **Increases or Decrease in Interest Rate**. **.0001**
**Chap 6**
956
**P\_\_\_\_\_\_ Loan -**
**Loan** **includes Items of Personal property**. (Refrigerator, Range, etc)
**Chap 6**
**Package Loan -**
**Loan** **includes Items of Personal property**. (Refrigerator, Range, etc)
**Chap 6**
957
**O\_\_\_ E\_\_ Loan -**
**Allows Borrower to Borrow More Funds in Same Loan**. **(Example: Home Equity Line of Credit - HELOC)**
**Open End Loan -**
**Allows Borrower to Borrow More Funds in Same Loan**. **(Example: Home Equity Line of Credit - HELOC)**
**Chap 6**
958
## Footnote
**Loan with Highest Priority**
**Superior Loan -**
**Loan with Highest Priority**
**Chap 6**
959
**J\_\_\_\_ Loan -**
**Loan which has Lowest Priority to Another Loan**. Different Lien position than 1st. **Subordinate Loan**
**Subordinate - Lower In Rank**
**Junior Loan -**
**Loan which has Lowest Priority to Another Loan**. Different Lien position then 1st. **Subordinate Loan**
**Subordinate - Lower In Rank**
**Chap 6**
960
**Sub\_\_\_\_\_\_\_\_\_ Clause -**
**Calls for Existing Loan to be Placed in a Lower Position to Another Loan.** Lender Agrees to Waive his Rights in Favor of Another.
**Subordination Clause -**
**Calls for Existing Loan to be Placed in a Lower Position to Another Loan.** Lender Agrees to Waive his Rights in Favor of Another.
**Chap 6**
961
**Motivations (Borrower) -**
1. **_Oppurtunity:_** **(Financing) Couldnt become H\_\_\_\_\_ Any Other Way**
2. **_Leverage:_ Increase R\_\_\_ of R\_\_\_\_ by Using Borrowed Money**
3. **_Tax Advantage:_ Interest is T\_\_ Deductable**
**Motivations (Borrower) -**
1. **_Oppurtunity:_** **(Financing) Couldnt become Homeowner Any Other Way**
2. **_Leverage:_ Increase Rate of Return by Using Borrowed Money**
3. **_Tax Advantage:_ Interest is Tax Deductable**
**Chap 6**
962
Expresses the **Parties Intention to Invest in Buy or Develop a Property Withtout Creating a Binding Legal Obligations to do so.**
**Letter of Intent -**
Expresses the **Parties Intention to Invest in Buy or Develop a Property Withtout Creating a Binding Legal Obligations to do so.**
**Chap 5**
963
What agreements are assignable?
**Purchase Agreements** and **Leases** -
Assignable
**Chap 5**
964
**Assignor** is the **Person that Assigns Transfer of Rights**, and the **Assignee** is the **Person that Gets Rights Transfered to**. Who has 1st and 2nd Liability in the Transfer of Rights?
**Deals with** **Purchase Contracts and Leases**, unless prohibited.
**During the Assignment of Contract Rights -**
1. **Assignor (Assigning Rights) - 1st Liability**
2. **Assignee (Rights Transfered To) - 2nd Liability**
**Deals with Purchase Contracts and Leases,** unless prohibited.
**Chap 5**
965
**Conv\_\_\_\_ of F\_\_\_\_\_**
**Agent uses Trust Funds** for His/Her **_Own Use_**
**Conversion of Funds** - **Own Use**
**Agent Uses Trust Funds** for **_Own Use_**
**Chap 5**
966
**Resc\_\_\_\_\_** **of Contract** -
1. **Mutual Agreement to Cancel**,
2. **Restoring Parties** - Original Positions.
3. **Broker** must follow **Buyer and Seller's Instructions**
**Rescission** **of Contract** -
1. **Mutual Agreement to Cancel**,
2. **Restoring Parties** - Original Positions.
3. **Broker** must follow **Buyer and Seller's Instructions**
**Chap 5**
967
**Clause that Allows Party to Withdraw.** Contingent **Upon a Certain Condition/Event. Voids Contract.**
**Contingency Clause** -
**Clause that Allows party to Withdraw.** Contingent **Upon a Certain Condition/Event. Voids Contract.**
**Chap 5**
968
**N\_\_\_ H\_\_\_ Sales Contacts**
**Contracts where _Earnest Money**_ is _**Not_** **_Held_** **in Escrow but in _Business Account_**
**New Home Sales Contracts** -
**Contracts where _Earnest Money**_ is _**Not**_ _**Held_ in Escrow but in _Business Account_**
**Chap 5**
969
Clause where **Contingency is Based On** Buyer obtaining **Financing**. **Specifies:**
1. **Amount,**
2. **Interest Rate,**
3. **Terms,**
4. **Commitment Date**
**Mortgage Contingency Clause** -
Clause **Contingency Based On** Buyer obtaining **Financing**. **_Specifies_:**
1. **Amount,**
2. **Interest Rate,**
3. **Terms,**
4. **Commitment Date**
**Chap 5**
970
**Rotted Wood and Cellulose Debris is part of what inspection?**
**Termite Inspection** -
**Rotted Wood and Cellulose** **fall under this type of inspection.**
**_Pest Control is Licensed by:_ AZ Dept of Agriculture**
**Chap 5**
971
Termite Inspectors are License by whom?
**AZ Dept of Agriculture** -
## Footnote
**Licensing for Termite Inspectors**
**Chap 5**
972
**AZ State Board of Te\_\_\_\_\_\_ Regis\_\_\_\_\_\_\_**
**Home Inspectors are License** by whom?
**AZ State Board** of **Technical Registration** -
**Licensing for** **Home Inspectors**
**Chap 5**
973
**Pre-printed Words** are these. And the Written Word Always Prevails.
**Boiler Plate** -
**Pre-Printed Words are these.** And the Hand Written Word Always Prevails.
**Chap 5**
974
**Cl\_\_\_ of Es\_\_\_\_**
**Typically Occurs when Deeds are Recorded**
**Close of Escrow** -
## Footnote
**Typically Occurs when Deed Recorded**
**Chap 5**
975
**Person or Entity _Other Than_ the Policy Holder** who is Covered by Policy
**Additional Insured** -
**Person or Entity _Other Than_ the Policy Holder** who is Covered by Policy
**Chap 5**
976
**If Buyer Defaults** - **Seller May:**
1. **Allow W\_\_\_\_\_\_**
2. **Retain Earnest Money** as **L\_\_\_\_\_\_ Damages**
3. **Sue for Damages** **"Sp\_\_\_\_\_ P\_\_\_\_\_"** **in Court**.
...
**If Buyer Defaults** - **Seller May:**
1. **Allow Withdraw**,
2. **Retain Earnest Money** as **Liquidated Damages**
3. **Sue for Damages** **"Specific Performance"** **in Court**.
**Chap 5**
977
**If Seller Defaults - Buyer May:**
1. **Allow W\_\_\_\_\_\_\_,**
2. **Sue for Damages "Sp\_\_\_\_\_ P\_\_\_\_\_\_\_" in Court**
**If Seller Defaults - Buyer May:**
1. **Allow Withdrawal,**
2. **Sue for Damages "Specific Performance" in Court**
**Chap 5**
978
**Cav\_\_\_ Em\_\_\_**
**_Latin Term for Obvious Defects_** - **Buyer is responsible**, which means **Buyer Beware Of.**
**Caveat Emptor** -
**_Latin Term for Obvious Defects_** - **Buyer is responsible**, which means **Buyer Beware Of.**e
**Chap 5**
979
**Dispute Resolution "Process"** to help Resolve Differences, **Conducted** **by a 3rd Party.**
**Mediation** -
**Dispute Resolution "Process"** to help Resolve Differences, **Conducted** **by a 3rd Party.**
**Chap 5**
980
**Non-Judicial Submission to a Third Party,** where **Both Parties Agree** to Comply **with Final Decision by 3rd Party as Binding**
**Arbitration** -
**Non-Judicial Submission to a Third Party,** where **Both Parties Agree** to Comply **with Final Decision by 3rd Party as Binding**
**Chap 5**
981
In these Type of Offers, **Seller Can Reserve the Right to Counter Multiple Offers and Accept Any** He Receives from Buyer.
**Multiple Offers/Counter Offers** -
In these Type of Offers, **Seller Can Reserve the Right to Counter Multiple Offers and Accept Any** He Receives from Buyer.
**Chap 5**
982
**If a Buyer Makes Multiple Offers on Different Properties, what must he do?**
**Buyers Multiple Offers**:
**Buyer must Disclose in Each Offer,** that He is Making Multiple Offers.
**Chap 5**
983
**After Written Acceptance of an Offer, what Type of Title does Buyer Have**?
**Equitable Title** -
After Written Acceptance of Offer, **Buyer has this Type of Title, and** **Contract is Exectory.**
**Chap 5**
984
**Indemni\_\_\_\_\_\_ C\_\_\_\_\_\_**
**Hold Harmless Clause. One Party _Protects Another Party from Damage._**
**Indemnification Clause** -
## Footnote
**Hold Harmless Clause. One _Party Protects Another Party from Damage._**
**Chap 5**
985
An Invitation to Enter Into a Contract
**Offer -**
An Invitation to Enter Into a Contract
**Chap 5**
986
The Buyer who Makes the Offer is called?
**Offeror -**
Person Who Makes the Offer
**Chap 5**
987
**An Offer** **Made by the Offeree to the Offeror**, which **Modifies the Offeror's Original Offer**
**Counter Offer -**
**An Offer** **Made by the Offeree to the Offeror**, which **Modifies the Offeror's Original Offer**.
**Chap 5**
988
**Term used a Purchase Contract or Lease** to indicate that the **Buyer/Lessee may _Name Another Person or Entity_ Who Will Complete the Transaction.**
**Nominee -**
**Term used a Purchase Contract or Lease** to indicate that the **Buyer/Lessee may _Name Another Person or Entity_ Who Will Complete the Transaction.**
**Chap 5**
989
**Buyer's Money Given to Show Good Faith to Seller** to Complete the Transaction.
As a check, cash, or note
**Earnest Money -**
**Buyer's Money Given to Show Good Faith to Seller** to Complete the Transaction.
As a check, cash or note
**Chap 5**
990
**Tr\_\_\_\_\_ Ac\_\_\_\_\_**
**Legal Arrangement through which _Funds or Assets are Held_ By a Third Party** **(Trustee)** for Benefit of Another Party (the Beneficiary).
**Trust Account -**
**Legal Arrangement through which _Funds or Assets are Held_ By a Third Party** **(Trustee)** for Benefit of Another Party (the Beneficiary).
**Chap 5**
991
**Legal Arrangement** in which a **Third Party Temporarily holds Large Sums Money or Property** **_Until Particular Conditions has been met_** (e.g., Purchase Agreement Fullfilment).
**Escrow -**
**Legal Arrangement** in which a **Third Party Temporarily holds Large Sums Money or Property** **_Until Particular Conditions_** has been **met** (e.g., Purchase Agreement Fullfilment).
**Chap 5**
992
**Disinterested** **Nuetral Third Party** Hired to Close the Transaction
**Escrow Agent -**
**Disinterested** **Nuetral Third Party** Hired to Close the Transaction.
**Chap 5**
993
**Mixing of Client's Funds** with **_Broker's Business/Personal Accounts_**
**Commingling -**
**Mixing of Client's Funds** with **_Broker's Business/Personal Accounts._**
**Chap 5**
994
**Simultaneous Escrows on Same Property**, where **Buyer** has Sold Property Prior to Escrow Closing, **Uses Some of Proceeds From that Sale to Fund Another Purchase.**
**Double Escrow -**
**Simultaneous Escrows on Same Property**, where **Buyer** has Sold Property Prior to Escrow Closing, **Uses Some of Proceeds From that Sale to Fund Another Purchase.**
**Chap 5**
995
**Specifies What Items will be Split** and The Date of Such Spilts (usually Close of Escrow).
**Prorations -**
**Specifies What Items will be Split** and The Date of Such Spilts (usually Close of Escrow).
**Chap 5**
996
**L\_\_\_ P\_\_\_\_**
**_Person Designated_** **in** **Insurance Policy** **_To Be Paid_**, **If Property is Damaged or Destroyed**.
**(ex: Morgage Lender)**
**Loss Payee -**
**_Person Designated_** **in** **Insurance Policy** **_To Be Paid_**, **If Property is Damaged or Destroyed**.
**(ex: Morgage Lender)**
**Chap 5**
997
**Cla\_\_\_ H\_\_\_\_\_ and Cl\_\_\_ Report**
A **Record of Insurance Losses** on a **Property** **or Specific Consumer** is called?
(Answer has 2 names)
**Claims History / Clue Report** -
**A Record of Losses On a Property** or Specific Consumer.
**Chap 5**
998
**Service Contract Covering the Repairs or Replacement** **of Appliances/Systems,** Such as Furnaces, Air Conditioners, Plumbing, Roof, etc.
**Home Warranty -**
**Service Contract Covering the Repairs or Replacement** **of Appliances/Systems,** Such as Furnaces, Air Conditioners, Plumbing, Roof, etc.
**Chap 5**
999
**Amount Pre-Determined** By the Parties as **Total Amount of** **Compensation an Injured Party Should Receive - For Breach of Contract.**
**Liquidated Damages -**
**Amount Pre-Determined** By the Parties as **Total Amount of** **Compensation an Injured Party Should Receive - For Breach of Contract.**
**Chap 5**
1000
**S\_\_\_\_\_\_\_ P\_\_\_\_\_\_\_\_**
**_Court Order to Enforce_ Terms** **of a Contract is Called?**
**Specific Performance -**
**_Court Order to Enforce_ Terms** **of a Contract**
**Chap 5**
1001
**Making Over-Statments of Personal Opinion,** is not considered misrepresentation.
**Puffing -**
**Making Over-Statments of Personal Opinion,** is not considered misrepresentation.
**Chap 5**
1002
**False Statements of Material Facts** Which a Party Relies on to His Damage.
**Misrepresentation -**
**False Statements of Material Facts** Which a Party Relies on to His Damage.
**Chap 5**
1003
Occurs When **Person** **_Intentionally_ Misrepresents a Fact.**
**Fraudulent Misrepresentation -**
Occurs When **Person** **_Intentionally_ Misrepresents a Fact.**
**Chap 5**
1004
**Id\_\_\_\_\_ Th\_\_\_\_**
**Using Another Person's _Personal Info for Illegal Purposes_**.
**Real Estate Agents must Safeguard Clients' and Consumers' Information.**
**Identity Theft -**
**Using Another Person's Personal Info for Illegal Purposes**.
**Real Estate Agents must Safeguard Clients' and Consumers' Information.**
**Chap 5**
1005
Occurs When **Hacker Intercepts Email** and **Sends Fraudulent Wiring Instructions** Directing Client's Money **to Hacker's Account**
**Wire Fraud -**
Occurs When **Hacker Intercepts Email** and **Sends Fraudulent Wiring Instructions** Directing Client's Money **to Hacker's Account**
**Chap 5**
1006
**M\_\_\_\_\_ C\_\_\_\_\_\_\_ C\_\_\_\_\_**
Clause where **_Contingency is Based On_** **Buyer Obtaining _Financing**_. _**Specifies_:**
1. **Amount,**
2. **Interest Rate**
3. **Terms,**
4. **Commitment Date**
**Mortgage Contingency Clause** -
Clause **_Contingency Based On**_ Buyer Obtaining _**Financing._****_Specifies_:**
1. **Amount,**
2. **Interest Rate,**
3. **Terms,**
4. **Commitment Date**
**Chap 5**
1007
**The Amount of the Earnest Money is determined by the:**
1. Buyer
2. Seller
3. Buyer and Seller
4. Broker
**The Amount of the Earnest Money is determined by the:**
1. Buyer
2. Seller
3. **Buyer and Seller**
4. Broker
**Chap 5**
1008
**While making a listing presentation to a seller, a licensee is also considering purchasing the property. In this situation does the agent neeed to disclose their intentions to the seller and why?**
1. No, beause there is no need to discuss personal issues.
2. No, because the licensee is not yet the seller's agent
3. Yes, because it may have an impact on the owner's decision to list with the agent
4. Yes, because it is required by the Statute of Frauds.
**While making a listing presentation to a seller, a licensee is also considering purchasing the property. In this situation does the agent neeed to disclose their intentions to the seller and why?**
1. No, beause there is no need to discuss personal issues.
2. No, because the licensee is not yet the seller's agent
3. **Yes, because it may have an impact on the owner's decision to list with the agent**
4. Yes, because it is required by the Statute of Frauds.
**Chap 5**
1009
**Buyer Makes an offer to purchase a home listed by a broker, but the seller is not available until Wednesday. On Tuesday Buyer wishes to withdraw the offer. Which of the followig statements iis correct?**
1. Buyer cannot do this as he has signed contract
2. Buyer must forfeit the Earnest Money
3. The Broker must Return the Deposit and Offer
4. The Broker should tell Buyer the Offer is Accepted.
**Buyer Makes an offer to purchase a home listed by a broker, but the seller is not available until Wednesday. On Tuesday Buyer wishes to withdraw the offer. Which of the followig statements iis correct?**
1. Buyer cannot do this as he has signed contract
2. Buyer must forfeit the Earnest Money
3. **The Broker must Return the Deposit and Offer**
4. The Broker should tell Buyer the Offer is Accepted.
**Chap 5**
1010
**An Escrow once established, is subject to Recission by:**
1. The Broker
2. Only the Seller
3. Onlly the Buyer
4. An Agreement between Buyer and Seller
**An Escrow once established, is subject to Recission by:**
1. The Broker
2. Only the Seller
3. Onlly the Buyer
4. **An Agreement between Buyer and Seller**
**Chap 5**
1011
**A Property was listed for $45,000. Broker brings a Buyer who offers $44,000. The seller then counters with $44,500 but the counter offer is NOT accepted by the Buyer. Later the Seller decides to accept the $44,000 offer. Which of the following statements is correct?**
1. Broker is Entitled to Commission
2. There is a Contract in Effect for $44,500
3. There is a Contract in Effect for $44,000
4. There is No Contract In Effect
**A Property was listed for $45,000. Broker brings a Buyer who offers $44,000. The seller then counters with $44,500 but the counter offer is NOT accepted by the Buyer. Later the Seller decides to accept the $44,000 offer. Which of the following statements is correct?**
1. Broker is Entitled to Commission
2. There is a Contract in Effect for $44,500
3. There is a Contract in Effect for $44,000
4. **There is No Contract In Effect**
**Note: In Real LIfe the Original Offer for $44,000 could still be accepted (Answer C)**
**Chap 5**
1012
**An Offer to Purchase is An:**
1. Unilateral Contract
2. Expression of Intent to Enter a Contract
3. Bilateral Contract to Purchase
4. Binding On the Offeror
**An Offer to Purchase is An:**
1. Unilateral Contract
2. **Expression of Intent to Enter a Contract**
3. Bilateral Contract to Purchase
4. Binding On the Offeror
**Chap 5**
1013
**Earnest Money is normally held by:**
1. By Listing Agent's Broker
2. By Buyer's Agent's Broker
3. Only in Broker's Trust Account
4. By The Seller
**Earnest Money is normally held by:**
1. By Listing Agent's Broker
2. **By Buyer's Agent's Broker**
3. Only in Broker's Trust Account
4. By The Seller
**Chap 5**
**Note: It actually goes to Escrow(Title)**
1014
**When a Buyer's Interest in a Purchase Contract is Assigned to a Third Party, the Seller's Permission:**
1. Is Always Required
2. Is Never Required
3. Must be Obtained At time of Listing the Property
4. May be Required
**When a Buyer's Interest in a Purchase Contract is Assigned to a Third Party, the Seller's Permission:**
1. Is Always Required
2. Is Never Required
3. Must be Obtained At time of Listing the Property
4. **May be Required**
**Chap 5**
**Note: Contract May Prohibit**
1015
**A\_\_\_\_\_**
**Represents the Principal** **and** **_Must Follow_ All the _Principals Instructions_** **Unless Violates the Law**?
**Agent -**
**Represents the Principal** **and _Must Follow_ All the _Principals Instructions_** **- Unless Violates the Law**
**Chap 4**
1016
**Who Employs the Salesperson, When** **Broker is the Agent of The Client**
**Principal** -
## Footnote
**Principal Employs Salesperson, When Broker is the Agent of Client**
**Chap 4**
1017
Persons represented by Outside Brokerage Firms.
**Customer -**
**Represented** **by Outside Brokerage Firms**
Chap 4
1018
**If Both Parties are Represented by Your Brokerage Firm.** These Parties Are Called?
**Clients** -
Both Represented by Your Brokerage Firm
**Chap 4**
1019
**Fiduciary Duties to client, or C.A.R.L.O.D**
1. **Conf\_\_\_\_\_\_\_\_,**
2. **Acc\_\_\_\_\_\_,**
3. **R\_\_\_\_\_\_\_\_ Care,**
4. **Loy\_\_\_,**
5. **Ob\_\_\_\_\_\_\_,**
6. **Dis\_\_\_\_\_\_\_**
**C.A.R.L.O.D - Fiduciary Duties to client**
1. **Confidentiality,**
2. **Accounting,**
3. **Reasonable Care,**
4. **Loyalty,**
5. **Obedience,**
6. **Disclosure**
**Chap 4**
1020
**_Duties to Customers - 5 (Fiduciary Duties)_:**
**Hint: Fairness Honestly Gives Good Faith to Customers Deserved**
1. **Fai\_\_\_\_\_\_,**
2. **Hon\_\_\_\_\_\_,**
3. **G\_\_\_\_ Faith,**
4. **Compen\_\_\_\_\_,**
5. **Dis\_\_\_\_\_**
**_Duties to Customers - 5 (Fiduciary Duties)_:**
1. **Fairness,**
2. **Honesty,**
3. **Good Faith,**
4. **Competency,**
5. **Disclosure**
**Hint: Fairness Honestly Gives Good Faith to Customers Deserved**
**Chap 4**
1021
**Agents Not Held Liable For Non-Disclosure Of**:
1. **Nat\_\_\_\_\_ Death,**
2. **Su\_\_\_\_,**
3. **Hom\_\_\_\_,**
4. **Felo\_\_\_\_\_,**
5. **S\_\_\_ Offender Area**
6. **HIV or AIDS (Handicap Fair Housing Admin 1988)**
**Agents Not Held Liable For Non-Disclosure Of**:
1. **Natural death,**
2. **Suicide,**
3. **Homicide,**
4. **Felony,**
5. **Sex Offender Area**
6. **HIV or AIDS (handicap Fair Housing Admin 1988)**
**Chap 4**
1022
**Client's Duties to Agent:**
1. **Comp\_\_\_\_\_\_\_\_\_,**
2. **Perf\_\_\_\_\_\_\_,**
3. **Indem\_\_\_\_\_\_\_\_,**
**Clients Duties to Agent:**
**Compensation, Performance, Indemnification**
**Chap 4**
1023
**L\_\_\_\_\_ A\_\_\_\_\_\_\_\_**
What **Employment Contract Must Be in Writing****, In Order to Collect a Fee in Court**, and to**Comply with Arizona Statutes?**
**Written Listing Agreement** -
Must be in Writing In Order to **Collect a Fee in Court** and **Comply with Arizona Statutes.**
**Chap 4**
1024
**Ex\_\_\_\_\_\_ Ag\_\_\_\_\_\_**
**Type of Agency Created by**"**Specific Authorization**" **From Principal,** **"_Verbally or Written_."**
**Expressed Agency -**
**"Specific Authorization,"** **from Principal in "_Writing or Verbal_."**
**Chap 4**
1025
**Im\_\_\_\_\_\_ A\_\_\_\_\_**
**Type of Agency Created _By Actions_ - not In writing**
**Implied Agency** -
## Footnote
**Agency Created _By Actions_ - not in writing.**
**Chap 4**
1026
**S\_\_-\_\_\_\_\_\_**
**What is the Salesperson To the Client called?**
**If the Broker Is the Agent of the Client. And the Salesperson Is the Agent of the Broker.**
**Sub-Agent** -
**The Saleperson Is the Sub-Agent to the Client.**
**If the Broker Is the Agent of the Client. And the Salesperson Is the Agent of the Broker.**
**Chap 4**
1027
**Cons\_\_\_\_ to Limited Rep\_\_\_\_\_\_\_**
**_When a Dual Agency Exist_, Written** **Permission** **of Both Parties** **(Informed Consent) Is Necessary**. This is called?
**Consent** **to Limited Representation** -
**_When a Dual Agency Exist_, Written** **Permission** **of Both Parties** **(Informed Consent) Is Necessary**.
**Chap 4**
1028
**(READE) R\_\_\_ Es\_\_\_\_ Ag\_\_\_\_** **Dis\_\_\_\_\_ and El\_\_\_\_ Form -**
**At First Substantive Discussion With Client**, AZ Agents Should Use This Form.
**(READE) Real Estate Agency** **Disclosure and Election form -**
**At First Substantive Discussion With Client**, AZ Agents Should Use This Form.
**Chap 4**
1029
**Unrep\_\_\_\_\_ Seller** **Com_**\_\_\_\_\_**_ Ag\_\_\_\_\_\_\_ -**
**In working with FISBO's and Making an Offer** **as Buyer's Agent**, **when Seller is Unrepresented.**
**What Form Maintains Single Agency and Gives Compensation to Buyer's Agent**?
**Unrepresented Seller** **_Compensation_ Agreement -**
**In** **FISBO Making an Offer as Buyer's Agent**.
**This Form** **Maintains Single Agency and Gives Compensation to Buyer's Agent.**
**Chap 4**
1030
**_Person Authorized_** to **Represent Another thru a Power of Attorney**
**Attorney in Fact** -
**_Person Authorized_** to **Represent Another thru a Power of Attorney**
**Chap 4**
1031
**Sp\_\_\_\_\_ (Spec\_\_\_) Agency** -
## Footnote
**Limited Authority under Listing and Buyer Broker Agreements**
**Specific (Special) Agency** -
## Footnote
**Limited Authority under Listing and Buyer Broker Agreements**
**Chap 4**
1032
**G\_\_\_\_\_ Agency** -
1. **Agency Used for** **"****_Various Duties_**" **-** **_Personal and Business_**
2. **"****_Property Management Listings_**,"
3. **Agent Holds This Type of Agency to Broker.**
**General Agency** -
1. **Agency Used for** **"****_Various Duties_****"** **-** **_Personal and Business_**
2. **"****_Property Management Listings_**,"
3. **Agent Holds This Type of Agency to Broker.**
**Chap 4**
1033
**Un\_\_\_\_\_ Agency** -
**Agency** has **Authority** **Over All Matters of Principal.**
**Universal Agency** -
**Authority Over All Matters** **of Principal**
**Chap 4**
1034
**Im\_\_\_\_ Notice** -
**Communicated To Agent**, **Automatic Notice to Principal.**
**Imputed Notice** -
**Communicated To Agent**, **Automatic Notice to Principal.**
**Chap 4**
1035
**Vic\_\_\_\_\_ Liab\_\_\_\_** **(Respondeat Superior)** -
Concept that **Principal is Responsible for Acts of Agent**
**Respondeat means "Let the Master Answer!"**
**Vicarious Liability** **(Respondeat Superior)** -
Concept that **Principal is Responsible for Acts of Agent**
**Respondeat means "Let the Master Answer!"**
**Chap 4**
1036
**G\_\_\_\_\_\_ Liab\_\_\_\_\_ Ins\_\_\_\_\_\_**
**_Insures_ "_Broker/Agent_" Against Claims** **- When a 3rd Party Is Injured**
**General Liability Insurance** -
**_Insures_ "_Broker/Agent_" Against Claims** - **When a 3rd Party Is Injured**
**Chap 4**
1037
**Extra Liablity** Insurance for **Major Claims and Lawsuits**
**Umbrella Insurance** -
**Extra Liablity** Insurance for **Major Claims and Lawsuits**
**Chap 4**
1038
**What "Does Not" Terminate _Purchase Contract_ or _Lease_!**
**Death** -
**_Does Not Terminate_** **Purchase Contract** or **Lease**
**Chap 4**
1039
**Reasonable Skill and Care 5 (Fiduciary Duty)**
1. **Con\_\_\_\_ Prep,**
2. **Mark\_\_\_\_**,
3. **Adv\_\_\_\_** on **Price**,
4. **Meeting** **Dea\_\_\_\_\_**,
5. **Disclosure** of **Mat\_\_\_\_ Facts**
**Reasonable Skill and Care 5 (Fiduciary Duty)**
1. **Contract Prep,**
2. **Marketing**,
3. **Advising on Price,**
4. **Meeting Deadlines,**
5. **Disclosure of Material Facts**
**Chap 4**
1040
**_Disclosure_** **_(Fiduciary Duties)_** - **Agents must make Full Disclosure:**
1. **Conf\_\_\_\_ of Interest**,
2. **Other Off\_\_\_\_** on **Property**
3. **Ag\_\_\_\_ Relationship Status**
4. **Mat\_\_\_\_ Defects**
5. **Info Mat\_\_\_\_** to **Client Int\_\_\_\_\_**
**_Disclosure_** **_(Fiduciary Duties)_** - **Agents must make Full Disclosure:**
1. **Conflicts of Interest**,
2. **Other Offers** on **Property**
3. **Agency Relationship Status**
4. **Material Defects**
5. **Info Material** to **Client Interest**
**Chap 4**
1041
**7 Ways** to **Terminate Agency:**
1. **Perf\_\_\_\_\_\_**,
2. **Mutual Agr\_\_\_\_\_,**
3. **Exp\_\_\_\_\_,**
4. **Revo\_\_\_\_\_,**
5. **Des\_\_\_\_\_ of Property,**
6. **Ba\_\_\_\_\_\_ (BK),**
7. **Death of Prin\_\_\_\_\_ or Agent**
**7 Ways** to **Terminate Agency:**
1. **Performance**,
2. **Mutual** Agreement,
3. **Expiration**,
4. **Revocation**,
5. **Destruction** of Property,
6. **Bankruptcy** (BK),
7. **Death** of Principal or Agent
**Chap 4**
1042
**Ag\_\_\_** -
**Relationship When Hired To Act** **on Behalf of Principal**
**Agency** -
**Relationship When Hired To Act** **on Behalf of Principal**
**Chap 4**
1043
**New Homes** **Agency** -
**Agents Represent** **S\_\_\_\_/Bu\_\_\_\_\_**
**New Homes** **Agency** -
**Agents Represent** **Seller/Builder**
**Chap 4**
1044
**This Agreement is Binding on Heirs of Buyer and Seller, If Either Dies**
**Purchase Agreement** -
Binding on Heirs of Buyer and Seller if Dies.
**Chap 4**
1045
Who is the Agent of the Client?
**Broker -**
**Is the Agent of the Client**
**Chap 4**
1046
When the Agent Only Represents One Party (Buyer or Seller)
**SIngle Agency -**
When the Agent Only Represents One Party (Buyer or Seller)
**Chap 4**
1047
**A Document** through which the **Client Authorizes the Agent to Act on His/Her Behalf.**
**Power of Attorney -**
**A Document** through which the **Client Authorizes the Agent to Act on His/Her Behalf.**
**Chap 4**
1048
**_Insures Licensees_ - _Against**_ _**Misrepresentations_ of Material Facts** the **Licensee Failed to Disclose** is called?
**Errors & Omissions Insurance -**
**_Insures Licensees_ - _Against**_ _**Misrepresentations_ of Material Facts** the **Licensee Failed to Disclose**
**Chap 4**
1049
1. **One Who Contracts His/Her Services to the Broker and Pays Own (Taxes and Social Secuirty)**
2. **_IRS Requires_**: **Written Independant Contractor Agmt**
3. **Broker Monitor Overall Performance Only**
**Independent Contractor -**
1. **One Who Contracts His/Her Services to the Broker and Pays Own (Taxes and Social Security)**
2. **_IRS Requires_**: **Written Independant Contractor Agmt**
3. **Broker Monitors Overall Performance Only**
**Chap 4**
1050
**What Type of Fiduciary Duty?**
**The Agent Must Place the Client's Interest Above the Agent's Interest**
**Loyalty (Fiduciary Duties) -**
**The Agent Must Place the Client's Interest Above the Agent's Interest**
**Chap 4**
1051
**What type of Fiduciary Duty?**
**An Agent Must _Follow the Client's Instructions_ Unless They Violate The Law.**
**Violations**:
1. Seller Asks to Violate Fair Housing Laws
2. Seller Asks Not To Disclose Defects In Property.
**Obedience (Fiduciary Duty) -**
**An Agent Must _Follow the Client's Instructions_ Unless They Violate The Law.**
**Violations**:
1. Seller Asks to Violate Fair Housing Laws
2. Seller Asks Not To Disclose Defects In Property.
**Chap 4**
1052
**What type of Fiduciary Duty?**
**The Agent Must Account To the Parties For All Monies the Agent Accepts In the Transaction.**
**Accounting (Fiduciary Duties) -**
**The Agent Must Account To the Parties For All Monies the Agent Accepts In the Transaction.**
**Chap 4**
1053
**What type of Fiduciary Duty?**
**The Agent Must Keep Certain Information Confidential.**
**_Examples_**
1. **Price Seller will Accept**
2. **Price Buyer will Pay**
3. **Duty Remains in Effect Indefinately After Expiration.**
**Confidentiality (Fiduciary Duties) -**
**The Agent Must Keep Certain Information Confidential. What type of Fiduciary Duties**
**_Examples_**
1. **Price Seller will Accept**
2. **Price Buyer will Pay**
3. **Confidentiality Remains in Effect Indefinately After Expiration.**
**Chap 4**
1054
**Ag\_\_\_\_\_**
**Created through Authorization of Principal, may or may not be in writing**
**Agencies -**
**Created through Authorization of Principal, may or may not be in writing**
**Chap 4**
1055
**The Sherman Anti-Trust Act regulates:**
1. Sale of Real Estate Across State Lines
2. Contracts that Fall Under Statute of Frauds
3. Brokerage Firms Agreeing to Change Their Fees From Commission Basis to Each Firm Charging Same Flat Rate
4. Disclosure of Finance Charges in a Loan
**The Sherman Anti-Trust Act regulates:**
1. Sale of Real Estate Across State Lines
2. Contracts that Fall Under Statute of Frauds
3. **Brokerage Firms Agreeing to Change Their Fees From Commission Basis to Each Firm Charging Same Flat Rate**
4. Disclosure of Finance Charges in a Loan
**Chap 4**
1056
**The Agent shows Several House to a Buyer and tells Him that One House is the Best Investment. What type of Agency may the Saleperson be Creating?**
1. Expressed Agency
2. Implied Agency
3. General Agency
4. Specific Agency
**The Agent shows Several House to a Buyer and tells Him that One House is the Best Investment. What type of Agency may the Saleperson be Creating?**
1. Expressed Agency
2. **Implied Agency**
3. General Agency
4. Specific Agency
**Chap 4**
1057
**A Special Agent Can Do All of the Following EXCEPT:**
1. Represent the Principal in All Real Estate Transactions
2. Represent the Principal in a Specific Real Estate Transaction
3. Sell Land
4. Find a Ready Will and Able Buyer
**A Special Agent Can Do All of the Following EXCEPT:**
1. **Represent the Principal in All Real Estate Transactions**
2. Represent the Principal in a Specific Real Estate Transaction
3. Sell Land
4. Find a Ready Will and Able Buyer
**Chap 4**
1058
**A Property is Listed for Sale and Before Expiration the Principal is declared Bankrupt**
1. Terminated
2. Not Affected
3. Subjected to Court Review
4. Transferred to the Trustee
**A Property is Listed for Sale and Before Expiration the Principal is declared Bankrupt**
1. **Terminated**
2. Not Affected
3. Subjected to Court Review
4. Transferred to the Trustee
**Chap 4**
1059
**All of the Following Situations would Legally Terminate a Listing EXCEPT:**
1. Death of the Listing Salesperson
2. Revocation By The Seller
3. Revocation By The Broker
4. Insanity of The Seller
**All of the Following Situations would Legally Terminate a Listing EXCEPT:**
1. **Death of the Listing Salesperson**
2. Revocation By The Seller
3. Revocation By The Broker
4. Insanity of The Seller
**Chap 4**
1060
**If One Agent is Exclusively Representing the Seller, and the Buyer's Broker brings the Buyer and Seller together it would be a:**
1. Single Agency
2. Dual Agency
3. Universal Agency
4. Ratified Agency
**If One Agent is Exclusively Representing the Seller, and the Buyer's Broker brings the Buyer and Seller together it would be a:**
1. **Single Agency**
2. Dual Agency
3. Universal Agency
4. Ratified Agency
**Chap 4**
1061
**The Concept that Informaiton given to Client's Agent has been given to Client is know as:**
1. Caveat Emptor
2. Respondent Superior
3. Vicarious Liability
4. Imputed Notice
**The Concept that Informaiton given to Client's Agent has been given to Client is know as:**
1. Caveat Emptor
2. Respondent Superior
3. Vicarious Liability
4. **Imputed Notice**
**Chap 4**
1062
**Com\_\_\_\_\_\_ P\_\_\_\_\_**
**Legally Capable Individuals** Who Can Enter into a Binding Contract are called?
**Competent Parties -**
**Legally Capable Individuals** Who Can Enter into a Binding Contract
**Chap 3**
1063
**Emp\_\_\_\_\_\_ Agr\_\_\_\_\_\_\_**
**Used to Hire a Broker to Provide Services Aiding the Purchase/Sale or Real Property for Compensation.**
**_Examples_**: **Listing Agreement or Buyer Broker Agreement**
Chap 3
**Employment Agreement** -
**Used to Hire a Broker to Provide Services Aiding the Purchase/Sale or Real Property for Compensation.**
**_Examples_**: **Listing Agreement or Buyer Broker Agreement**
**Chap 3**
1064
**C\_\_\_\_\_\_ (Must Be In Writing Per Statute of Frauds)**
**Examples**
1. **Agreements Hiring Broker to Sell or Purchase** Property.
2. **Agreements to Transfer or Sell** **Interest** therein **(Deeds, Purchase Contract, Mortgages, Trust Deeds and Options).**
3. **Lease for More than 1 Year.**
**Contracts (Must be in Writing Per Statute of Frauds)**
**Examples**
1. **Agreement Hiring Broker to Sell or Purchase** Property.
2. **Agreements to Transfer or Sell Interest** therein **(Deeds, Purchase Contract, Mortgages, Trust Deeds and Options).**
3. **Lease for More than 1 Year.**
1065
**Essential Elements of a Contract**
1. **Comp\_\_\_\_\_ Parties,**
2. **Val\_\_\_ Consideration,**
3. **Of\_\_\_ and Acceptance,**
4. **Leg\_\_\_ Object,**
5. **In Writ\_\_\_ (Statute of Frauds)**
6. **Property Des\_\_\_\_\_**
**Essential Elements of Contract**
1. **Competent Parties,**
2. **Valid Consideration,**
3. **Offer and Acceptance,**
4. **Legal Object,**
5. **In Writing (Statute of Frauds)**
6. **Property Description**
**Chap 3**
1066
**Exp\_\_\_\_\_ Contract** -
Terms Specifically **Stated Verbally or In Writing**
**Expressed Contract** -
Terms **Specifically Stated Verbally or In Writing**
**Chap 3**
1067
**Imp\_\_\_\_\_ Contract** -
Created by **Actions or Conduct of Parties**
**Implied Contract** -
Created by **Actions or Conduct of Parties**
**Chap 3**
1068
1. This **Agreement Gives Opportunity to Lease or Buy** Within a "**_Specific Time_**" for a "**_Specific Price_"** and Terms."
2. It is **Only _Binding on_ the Optionor _(Owner)_.**
3. If **Optionee Wants to Extend, There is Additional Consideration Required.**
**Option** -
1. This **Agreement Gives Opportunity to Lease or Buy** Within a "**Specific Time**" for a "**Specific Price"** and Terms."
2. It is **Only _Binding on_ the Optionor _(Owner)_.**
3. If **Optionee Wants to Extend, There is Additional Consideration Required.**
**Chap 3**
1069
**If Seller Decides to Lease or Sell,** Holder Can Match the Offer Given to Owner.
**Right of First Refusal** -
**If Seller Decides to Lease or Sell,** Holder Can Match the Offer Given to Owner.
**Chap 3**
1070
Contain All Essentials of Contract
**Valid Contract** -
## Footnote
**All Essentials of Contract**
**Chap 3**
1071
Not Enforceable by Law, No Contract
**Void or Invalid** **Contract -**
**Not Enforceable by Law,** No Contract
**Chap 3**
1072
Can be Overturned by One of the Parties.
**Voidable Contract** -
Overturned by One of the Parties
**Chap 3**
1073
**Not Shared with Others** Nor Put on MLS
**Pocket Listing** -
**Not Shared with Others** Nor Put on MLS
**Chap 3**
1074
1. **No Cooperation Offered to Other Companies**, but All Offers Presented.
2. **Buyer's Agent** May Need **Separate Compensation Agreement**
**Exclusive Listing** -
1. **No Cooperation Offered to Other Companies**, but All Offers Presented.
2. **Buyer's Agent** May Need **Separate Compensation Agreement**
**Chap 3**
1075
Buyer uses to Hire Broker to Locate Properties.
**Buyer Broker Agreement** -
Buyer uses to Hire Broker to Locate Properties.
**Chap 3**
1076
**Com\_\_\_\_\_\_ Lien**
**Lein in AZ,** **for Unpaid Moneys,** may be placed on _Seller's Property_, **Commercial Leases Only**
**Commissions Lien -**
**Lein in AZ,** **for Unpaid Moneys,** may be placed on _Seller's Property_, **Commercial Leases Only**
**Chap 3**
1077
**Sh\_\_\_\_\_\_ An\_\_\_\_\_\_ A\_\_\_**
1. **Prohibits** **Anti-Competitive** **Practices.**
2. **No Fixed Commissions** **or Prices.**
3. **Commissions** are **Negotiable.**
4. **No Geographical** **Non-Compete Areas.**
5. **No Boycotting** **Other Company Listings**
**Sherman Anti-Trust Act** -
1. **Prohibits** **Anti-Competitive** **Practices.**
2. **No Fixed Commissions** **or Prices.**
3. **Commissions** are **Negotiable.**
4. **No Geographical** **Non-Compete Areas.**
5. **No Boycotting** **Other Company Listings**
**Chap 3**
1078
**Cov\_\_\_\_\_\_ Not to C\_\_\_\_\_\_\_**
**Promise by Seller of Business**, "**_Not to Compete_**" with **Buyer of Business in Agreed Area for a "Specific Time."**
**Covenant Not to Compete** -
**Promise by Seller of Business**, "**_Not to Compete_**" with **Buyer of Business in Agreed Area for a "Specific Time."**
**Chap 3**
1079
**Illu\_\_\_\_\_ Contract**
Contract **Worded Loosely**
**Illusory Contract** -
Contract **Worded Loosely**
**Chap 3**
1080
**Regulation that says Contracts Must Be In Writing to be Enforceable** and **Signed by All Parties** / Authorized Agents
**Statute of Frauds -**
**Regulation that says Contracts Must Be In Writing to be Enforceable** and **Signed by All Parties** / Authorized Agents
**Chap 3**
1081
**Agreements that Must Be In Writng - (As per Statute of Frauds) -**
1. **Emp\_\_\_\_\_\_ Agreement with Broker**
2. **Lis\_\_\_\_\_ Agreement**
3. **B\_\_\_\_\_ Broker Agreement**
4. **Pur\_\_\_\_\_ Agreement**
5. **De\_\_\_**
6. **Tr\_\_\_\_ Deeds & Mortgages**
7. **L\_\_\_\_ - More than 1 year**
**Agreements that Must Be In Writng - (As per Statute of Frauds) -**
1. **Employment Agreement with Broker**
2. **Listing Agreement**
3. **Buyer Broker Agreement**
4. **Purchase Agreement**
5. **Deeds**
6. **Trust Deeds & Mortgages**
7. **Lease - More than 1 year**
**Chap 3**
1082
**Money or** Valuables such as **Labor, Love or Affection (Gift)**
**Valid Consideration -**
**Money or** Valuables such as **Labor, Love or Affection (Gift)**
**Chap 3**
1083
**Of\_\_\_\_ and Ac\_\_\_\_\_\_\_ -**
**All Parties Must Agree** to **_All Terms_** -**A Meeting of The Minds**
**Offer and Acceptance -**
**All Parties Must Agree** to **_All Terms_**. **A Meeting of The Minds**
**Chap 3**
1084
**L\_\_\_\_\_ O\_\_\_\_\_\_**
The Objective of the Agreement Must be Lawful.
**Legal Object (Legal Purpose) -**
The Objective of the Agreement Must be Lawful.
**Chap 3**
1085
All the **Terms** **Have Been** **Performed by All Parties**
**Executed Cotract -**
All the **Terms** **Have Been** **Performed by All Parties**
**Chap 3**
1086
**All Terms _Have Not Been_ Fully Performed.** Purchase Contract is a Executory Contract.
**Executory Contract -**
**All Terms _Have Not Been_ Fully Performed.** Purchase Contract is a Executory Contract.
Chap 3
1087
**A Promise is Made By (One Party) _In Return_** For the Promise of Another
**_Examples_**
1. Listings
2. Purchase Contracts
3. Leases
**Bilateral Contract -**
**A Promise is Made By (One Party) _In Return_** For the Promise of Another
**_Examples_**
1. Listings
2. Purchase Contracts
3. Leases
**Chap 3**
1088
**One Party Makes Promise to _Induce_ Other Party** Into Action
**Examples**:
1. **_Option_**: Right to Buy in **Specific Period/Time/Price**
2. **_Right of First Refusal_**: **"_If Offered for Sale_**," 1st Right
**Unilateral Contract -**
**One Party Makes Promise to _Induce_ Other Party** Into Action
**Examples**:
1. **_Option_**: Right to Buy in **Specific Period/Time/Price**
2. **_Right of First Refusal_**: **"_If Offered for Sale_**," 1st Right
**Chap 3**
1089
**R\_\_\_\_\_\_ E\_\_\_\_ Emp\_\_\_\_\_ Contract**
**Written Agreement Authorizing / Employing an Agent and Broker to Purchase or Sell Property** **For Compensation or Commission.**
**Must Contain:**
1. Inception Date
2. Expiration Date
3. Signed by All Parties
4. Cannot not be Re-Assigned to 3rd Party
**Real Estate Employment Contract -**
**Written Agreement Authorizing / Employing an Agent and Broker to Purchase or Sell Property For Compensation or Commission.**
**Must Contain:**
1. Inception Date
2. Expiration Date
3. Signed by All Parties
4. Cannot not be Re-Assigned to 3rd Party
**Chap 3**
1090
**O\_\_\_\_ Listing -**
**Listing Broker** will be **Paid a Commission only if He/She Finds a Buyer for the Property**
**_Note:_**
**1. Listing Broker Not Paid If Another Broker Finds Buyer or If Seller Sells Property.**
**Open Listing -**
**Listing Broker** will be **Paid a Commission only if He/She Finds a Buyer for the Property**
**_Note:_**
**1. Listing Broker Not Paid If Another Broker Finds Buyer or If Seller Sells Property.**
**Chap 3**
1091
**Ex\_\_\_\_\_\_ A\_\_\_\_\_ L\_\_\_\_\_\_\_ -**
The **Listing Broker will be Paid a Commission if He/She Finds a Buyer, or If Another Broker Finds a Buyer**. What type of listing?
**\*\*\* Seller Reserves the Right to Sell Property to Buyer Witout Paying Commission.**
**Exclusive Agency Listing -**
The **Listing Broker will be Paid a Commission if He/She Finds a Buyer, or If Another Broker Finds a Buyer**. What type of listing?
**\*\*\* Seller Reserves the Right to Sell Property to Buyer Witout Paying Commission.**
**Chap 3**
1092
**Listing Broker** will be **Paid No Matter Who Sells Property.** What type of listing?
**Notes**:
1. **Offers "Most" Protection** for the broker
2. **Contains Provision Entitles Broker Commssion** (Within Specific Time Frame After Expiration of Listing) for Buyers Procured By Broker Previously.
1.
**Exclusive Right to Sell -**
**Listing Broker** will be **Paid No Matter Who Sells Property.** What type of listing?
**Notes**:
1. **Offers "Most" Protection** for the broker
2. **Contains Provision Entitles Broker Commssion** (Within Specific Time Frame After Expiration of Listing) for Buyers Procured By Broker Previously.
**Chap 3**
1093
**This is what type of listing?**
**Seller Agrees To Take Specific Amount as Net Proceeds** and **Broker May Retain Amount Above Net Proceeds Seller Agreed To.**
**Net Listings -**
**Seller Agrees To Take Specific Amount as Net Proceeds** and **Broker May Retain Amount Above Net Proceeds Seller Agreed To.**
**Chap 3**
1094
**Refers to a Property that is** **Not Yet Availlable For Sale.**
**_Could Violate Agent's Duty to Seller by_**:
1. **Circumventing MLS rules**
2. **Marketing to Select Groups**
3. **Requiring Buyers to Use Listing Broker for Transcation. (Exclusve to One Company)**
1.
**Coming Soon Listing -**
**Refers to a Property that is Not Yet Availlable For Sale.**
**_Could Violate Agent's Duty to Seller by_**:
1. **Circumventing MLS rules**
2. **Marketing to Select Groups**
3. **Requiring Buyers to Use Listing Broker for Transcation. (Exclusve to One Company)**
**Chap 3**
1095
What type of Listing Has the Following Boundaries:
1. **_Cooperation and Compensation_** is **Not Offered To Other Companies**
2. However, All Offers Must be Presented
3. **_Buyer's Agent May Need_** **Separate Compensation Agreement to Assure Payment**.
**Exclusive Listing -**
**Following Boundaries of Listing:**
1. **_Cooperation and Compensation_** is **Not Offered To Other Companies**
2. However, All Offers Must be Presented
3. **_Buyer's Agent May Need_** **Separate Compensation Agreement to Assure Payment**.
4. .
**Chap 3**
1096
**If an Adult and a Minor enter Into a Contract, the Contract**
1. Void on Its Face
2. Voidable By the Minor
3. Voidable By Either Party
4. Binding on Both Parties
**If an Adult and a Minor enter Into a Contract, the Contract**
1. Void on Its Face
2. **Voidable By the Minor**
3. Voidable By Either Party
4. Binding on Both Parties
**Chap 3**
1097
**When a Contract is Based on a Misrepresentation of Material Fact, the Contract is:**
1. Illegal
2. Voidable by Both Parties
3. Voidable by the Party Damaged by Misrepresentation
4. Unenforceable on Either Party
**When a Contract is Based on a Misrepresentation of Material Fact, the Contract is:**
1. Illegal
2. Voidable by Both Parties
3. **Voidable by the Party Damaged by Misrepresentation**
4. Unenforceable on Either Party
**Chap 3**
1098
**A Contract Where One Promise is NOT Exchange for Another Promise is a:**
1. Unilateral Contract
2. Bilateral Contract
3. Expressed Contract
4. Implied Contract
**A Contract Where One Promise is NOT Exchange for Another Promise is a:**
1. **Unilateral Contract**
2. Bilateral Contract
3. Expressed Contract
4. Implied Contract
**Chap 3**
1099
**Which of the Following Items is Required to Be in a Listing**
1. Street Address
2. Rate of Commission
3. Termination Date
4. Mortgage Debt Amount
**Which of the Following Items is Required to Be in a Listing**
1. Street Address
2. Rate of Commission
3. **Termination Date**
4. Mortgage Debt Amount
**Chap 3**
1100
**If Agent A takes an Open Listing for 6 Months on March 1st and Agent b take an Exclusive Right to Sell Listing on March 15th for 3 Months, but Agent A finds Buyer on April 15th, what may occur?**
1. Only Agent A is owed a Commission
2. Only Agent B is owed a Commission
3. The Seller May owe Both Agents a Commission
4. No Commission is owed to Either Agent
**If Agent A takes an Open Listing for 6 Months on March 1st and Agent b take an Exclusive Right to Sell Listing on March 15th for 3 Months, but Agent A finds Buyer on April 15th, what may occur?**
1. Only Agent A is owed a Commission
2. Only Agent B is owed a Commission
3. **The Seller May owe Both Agents a Commission**
4. No Commission is owed to Either Agent
**Chap 3**
1101
An Area Separating Two Incompatbly Zoned Areas From Each Other.?
Chap 2
**Buffer Zone -**
An Area Separating Two Incompatbly Zoned Areas From Each Other.
**Chap 2**
1102
**The Minimum Distance From the Street and/or Lot Lines** Beyond which a Structure can be Built.
**Setback** -
**The Minimum Distance From the Street and/or Lot Lines** Beyond which a Structure can be Built.
**Chap 2**
1103
**NAOS: N\_\_\_\_\_ Area O\_\_\_ S\_\_\_\_** -
**Easement Restricting and** **Preserving Use of Natural Environment**
**NAOS: Natural Area Open Space** -
**Easement Restricting and** **Preserving Use of Natural Environment**
**Chap 2**
1104
**An Area Set Off by Municipal Authorities for Specific Use** (Residential, Commercial, Agricultural, Industrial, Special Purpose)
Chap 2
**Zone** -
**An Area Set Off by Municipal Authorities for Specific Use** (Residential, Commercial, Agricultural, Industrial, Special Purpose)
Chap 2
1105
**V\_\_\_\_\_** -
**Use** **Granted In Violation** of the **Zoning Ordinance**, when **Zoning Poses a Undue Hardship**.
**_Example:_** Build a Garage Closer To the Property Line than the Setback Allows.
**Variance** -
**Use** **Granted In Violation** of the **Zoning Ordinance**, when **Zoning Poses a Undue Hardship**.
**_Example:_** Build a Garage Closer To the Property Line than the Setback Allows.
Chap 2
1106
**N\_\_\_C\_\_\_\_\_\_\_ U\_\_\_ (G\_\_\_\_\_\_\_\_ U\_\_\_)**
**Pre-dates Zoning Ordinance**
**Nonconforming Use (Grandfathered Use)** -
**Pre-dates Zoning Ordinance**
Chap 2
1107
**En\_\_\_\_\_\_\_\_** -
**_Claim**_, _**Right**_ or _**Interest_** **Held by Non-Legal Owner** **By Deed Restriction, Easement or Liens**
**Chap 2**
**Encumbrance** -
**_Claim**_, _**Right**_ or _**Interest_** **Held by Non-Legal Owner** **By Deed Restriction, Easement or Liens**
Chap 2
1108
**D\_\_\_\_ R\_\_\_\_\_\_\_**
1. **Restrictive Covenants, CCR's.**
2. **_Enforced By_** - **Property Owners** and **HOA**. Can seek **"injuctive relief," in court.**
3. **_Most Restrictive Applies_** - Zoning vs Restriction.
4. _**"For Sale"** or **"For Rent"**_ **_Signs_** and **_Solar Devises_** May Not Be Prohibited, But Must Conform to Industry Standards
Chap 2
**Deed Restrictions** -
1. **Restrictive Covenants, CCR's.**
2. **_Enforced By_** - **Property Owners** and **HOA**. Can seek **"injuctive relief," in court.**
3. **_Most Restrictive Applies_** - Zoning vs Restriction.
4. _**"For Sale"** or **"For Rent"**_ **_Signs_** and **_Solar Devises_** May Not Be Prohibited, But Must Conform to Industry Standards
**Chap 2**
1109
**Easement App\_\_\_\_\_\_** -
1. **Gives Right Across Property** for **Benefit of Adjacent Property.**
2. It is a **Permanent Easement.**
3. **Easement** May Be **For** **Ingress and Egress** **Access to Water or Utilities**.
**Chap 2**
**Easement Appurtenant** -
1. **Gives Right Across Property** for **Benefit of Adjacent Property.**
2. It is a **Permanent Easement.**
3. **Easement** May Be **For** **Ingress and Egress** **Access to Water or Utilities**.
**Chap 2**
1110
**Easement In Gr\_\_\_\_\_**
1. **Right Across Property fo**r **Benefit of 3rd party** **(Utility Easement**)
2. Not To Be Confused with Easement Appurtenant.
**Chap 2**
**Easement in Gross** -
1. **Right Across Property fo**r **Benefit of 3rd party** **(Utility Easement**)
2. Not To Be Confused with Easement Appurtenant.
**Chap 2**
1111
**Easement P\_\_\_\_\_\_\_** -
1. **Gives One Person** **Permission (License)** To **Cross** or **Use Another's Property**
2. **Not permanent**, **May Be Revoked**
1.
**Chap 2**
**Easement Personal** -
1. **Gives One Person** **Permission (License)** To **Cross** or **Use Another's Property**
2. **Not permanent**, **May Be Revoked**
**Chap 2**
1112
**C\_\_\_\_\_\_\_\_ Easement** -
**An Agreement** **that** **Limits Certain Types of Uses** **or Prevents Development** from Taking Place on Property, when **Land in Private Ownership.**
**Chap 2**
**Conservation Easement** -
**An Agreement** **that** **Limits Certain Types of Uses** **or Prevents Development** from Taking Place on Property, when **Land in Private Ownership.**
**Chap 2**
1113
**Ways to Terminate Easements**:
1. **Mer\_\_\_\_**
2. **Quit C\_\_\_\_\_ Deed (Title Defects)**
3. **Quiet T\_\_\_\_ Action (Court Action Remove Cloud)**
**Chap 2**
**Ways to Terminate Easements**:
1. **Merger**
2. **Quit Claim Deed (Title Defects)**
3. **Quiet Title Action (Court Action Remove Cloud)**
**Chap 2**
1114
**Assessments Revealed by Survey, and Liens for Public Improvements** (Lights, Sidewalks, Pavement, Etc) are called?
Chap 2
**Government Assessments** -
**Assessments Revealed by Survey, and Liens for Public Improvements** (Lights, Sidewalks, Pavement, Etc)
Chap 2
1115
**Con\_\_\_\_\_** -
**Legally Enforceable Agreement**, To Do or Not To Do a Specific Thing. **Promise or a Set of Promises,** **Courts will Enforce.**
**Chap 3**
**Contract** -
**Legally Enforceable Agreement**, To Do or Not To Do a Specific Thing. **Promise or a Set of Promises,** **Courts will Enforce.**
**Chap 3**
1116
Assessments for Specific Improvements (Lights, Sewer)
**Special Assessments** -
Assessments for **Specific Improvements** (Lights, Sewer)
**Chap 2**
1117
**Liens** placed against a **Specific Property**, such as **Real Estate Taxes, Government Assessments, Mechanical Liens**, but also **Mortgages, Trust Deeds, and Land Contracts**
## Footnote
**Chap 2**
**Specific Liens** -
**Liens** placed against a **Specific Property**, such as **Real Estate Taxes, Government Assessments, Mechanical Liens**, but also **Mortgages, Trust Deeds, and Land Contracts**
**Chap 2**
1118
**G\_\_\_\_\_ Liens** -
**Liens Placed Against an Individual and All Real** and Personal Property, such as
**Examples: Judgement and Income Tax Liens.**
**General Liens** -
**Liens Placed Against an Individual and All Real** and Personal Property, such as
**Examples: Judgement and Income Tax Liens.**
**Chap 2**
1119
**Priority of Liens are:**
1. **Pro\_\_\_\_ Taxes,**
2. **Fore\_\_\_\_\_ Costs,**
3. **Sp\_\_\_\_\_ Assessments,**
4. **Mec\_\_\_\_\_ Liens,**
5. **HOA Assessements**
**Priority of Liens are:**
1. **Property Taxes,**
2. **Foreclosure Costs,**
3. **Special Assessments,**
4. **Mechanic Liens,**
5. **HOA Assessements**
Chap 2
1120
**Court Action** to Remove Cloud
Chap 2
**Quiet Title Action** -
**Court Action** to Remove Cloud
Chap 2
1121
Deed Used to Clear Title Defects. Has No Warranties.
**Example: Taking Spouse Off Title.**
Chap 2
**Quit Claim Deed** -
Clear Title Defects
Chap 2
1122
Claim (Money Encumbrance) on Property to Secure Debt
Chap 2
**Lien** -
Claim (Money Encumbrance) On Property to Secure Debt
Chap 2
1123
**Equivalent to 9 SqFt**
Chap 2
**1 Sq Yard**
Equivalent to 9 sq ft.
Chap 2
1124
**Cov\_\_\_\_\_\_** -
**Type of Agreement in a Contract** or Obligation, **Restricts the Buyer from Taking Some Action** or Requires that They Abstain from a Specific Action
**Covenant** -
**Type of Agreement in a Contract** or Obligation, **Restricts the Buyer from Taking Some Action** or Requires that They Abstain from a Specific Action
**Chap 2**
1125
**E\_\_\_\_\_\_** -
**Right to Use Another's Property** for a Specific Purpose
Chap 2
**Easement** -
**Right to Use Another's Property** for a Specific Purpose
**Chap 2**
1126
When There is a Right Across one Property For the Benefit of the Adjacent Property. **The Adjacent Property is Benefited by the Easement**
**Dominant Parcel -**
When There is a Right Across one Property For the Benefit of the Adjacent Property. **The Adjacent Property is Benefited by the Easement** and called Dominant Parcel
**Chap 2**
1127
When there is a Right Across a Property (an easement). **What is the Property Called that has the Easement Across it?**
Chap 2
**Servient Parcel** -
When there is a Right Across a Property (an easement). That property with Right Across it is Servient.
**Chap 2**
1128
**A Right a Property Owner** has In an Adjacent Property By Which the **Adjacent Property Owner** **May** **Not Interfer with View** **of Easement Holder.**
**View Easement** -
**A Right a Property Owner** has In an Adjacent Property By Which the **Adjacent Property Owner** **May** **Not Interfer with View** **of Easement Holder.**
**Chap 2**
1129
**Easement by N\_\_\_\_\_\_\_\_**
Land Owned by Single Owner Broken into 2 or More Parcels, and One Parcel is Landlocked is called?
**Easement by Necessity**
Land Owned by Single Owner Broken into 2 or More Parcels, and One Parcel is Landlocked is called?
**Chap 2**
1130
An Easement created by Adverse Possession?
**Prescriptive Easement -**
An Easement created by Adverse Possession
Chap 2
1131
**Method of Taking Title or Interest in Property of Another.** Person taking Title/Interest Must Show Court it was Taken In the Following Manner
1. **N - Notoriously**
2. **O - Open**
3. **C - Continuous**
4. **H - Hostile or Adverse**
**Adverse Possession -**
**Method of Taking Title or Interest in Property of Another.** Person taking Title/Interest Must Show Court it was Taken In the Following Manner:
1. **N - Notoriously**
2. **O - Open**
3. **C - Continuous**
4. **H - Hostile or Adverse**
**Chap 2**
1132
**Merger** -
Holder of Easement Buys the Property.
**Merger** -
Holder of Easement Buys the Property.
**Chap 2**
1133
**Building or Improvement that** **Invades or Trepasses Onto Someone Else's Property**. **Can Be Revealed By a Survey**
_Examples_: Driveway or Garage that Extends Over Property Lines. Overhanging Tree or Roof.
**Encroachment -**
**Building or Improvement that** **Invades or Trepasses Onto Someone Else's Property**. **Can Be Revealed By a Survey**
_Examples_: Driveway or Garage that Extends Over Property Lines. Overhanging Tree or Roof.
**Chap 2**
1134
Money Encumbrances are called?
**Liens -**
Money Encumbrances
**Chap 2**
1135
Dimensions of a Parcel Along Street. 1st Measurement Given.
**Front Footage -**
Dimensions of a Parcel Along Street. 1st Measurement Given.
**Chap 2**
1136
**Court Ordered Liens (also General Liens).** **General Liens Go Against an Individual and All Real/Personal Property.**
**Judgment Liens -**
**Court Ordered Liens (also General Liens).** **General Liens Go Against an Individual and All Real/Personal Property.**
**Chap 2**
1137
**Claims Placed by the Government For Nonpayment of Income Taxes** (also General Liens)
General Liens Go Against Individual, Real/Personal Property.
**Income Tax Liens -**
Claims Placed by the Government For Nonpayment of Income Taxes (also General Liens)
General Liens Go Against Individual, Real/Personal Property.
**Chap 2**
1138
Liens Placed By the Owner on Property (also considered Specific Liens)
1. **Mortgages**
2. **Trust Deeds**
3. **Land Contracts**
**Voluntary Liens -**
Liens Placed By the Owner on Property (also considered Specific Liens)
1. **Mortgages**
2. **Trust Deeds**
3. **Land Contracts**
**Chap 2**
1139
**Placed by Action of Law Against a Property** without the Owner's Consent.
**Involuntary Liens** -
**Placed by Action of Law Against a Property** without the Owner's Consent.
Chap 2
1140
**When Planning to Dig in Arizona**. Need to call 811 to Find Out where Underground Utilities May be Marked
**Blue Stake (811) -**
When Planning to Dig in Arizona. Need to call 811 to Find Out where Underground Utilities May be Marked
Chap 2
1141
**Which of the following situations BEST illustrates a zoning variance?**
1. Creating a Political Zone
2. Granting Permission to Build an Improvement Contrary to the Exisiting Zoning
3. A Use in Violation of Present Zoning Laws but Permitted because the Use was In Effect Prior to the Current Zone
4. A Grandfathered Use
**Which of the following situations BEST illustrates a zoning variance?**
1. Creating a Political Zone
2. Granting Permission to Build an Improvement Contrary to the Exisiting Zoning
3. **A Use in Violation of Present Zoning Laws but Permitted because the Use was In Effect Prior to the Current Zone**
4. A Grandfathered Use
1142
**When an Easement Appurtenant exist between two Parcels of Land which are Separately Owned the:**
1. Dominant Tenement has Use of This Easement Oly for Ingress and Egress
2. Servient Tenement is Benefitted by the Easement
3. Dominant Tenement is Benefitted by the Easement
4. Servient Tenement May Revoke the Use of Easement by Giving Proper Notice.
**When an Easement Appurtenant exist between two Parcels of Land which are Separately Owned the:**
1. Dominant Tenement has Use of This Easement Only for Ingress and Egress
2. Servient Tenement is Benefitted by the Easement
3. **Dominant Tenement is Benefitted by the Easement**
4. Servient Tenement May Revoke the Use of Easement by Giving Proper Notice.
**Chap 2**
1143
**After Buyiing a House the Buyer discovers that Roof is 2 Feet from Property Line and should be 5 Feet by law. Best Solution:**
1. File Cliam Under their Homeowner's Insurance
2. Apply for a Variance in the Zoning Law
3. Negotiate with Adjacent Owner
4. Sell Property without Disclosing Condition
**After Buyiing a House the Buyer discovers that Roof is 2 Feet from Property Line and should be 5 Feet by law. Best Solution:**
1. File Cliam Under their Homeowner's Insurance
2. **Apply for a Variance in the Zoning Law**
3. Negotiate with Adjacent Owner
4. Sell Property without Disclosing Condition
**Chap 2**
1144
**Movable property** such as _**potted** **plants**_**, _furniture_, _autos_,** and **_documents_** such as
1. **Le\_\_\_\_\_**
2. **Con\_\_\_\_\_**
3. **D\_\_\_\_ of Trust**
4. **Prom\_\_\_\_\_ Notes**
**All transfered by a "Bill of Sale"**
Chap 1
**Chattel (Personal Property) -**
**Movable property** such as **_potted_ _plants_, _furniture_, _autos**_, and _**documents_** such as
1. Leases
2. Contracts
3. Deeds of Trust
4. Promissory Notes
**All transfered by a "Bill of Sale"**
Chap 1
1145
**State Trust Land: Article X** - **AZ Constitution -**
1. **Land transferred** from **F\_\_\_\_\_ Government to AZ** **(in 1910)** **held in trust**.
2. **Land** **Held in Tr\_\_\_\_** and **Managed by** **AZ State Land Dept** to be **Sold and Leased.**
3. **Benefits Sc\_\_\_\_\_**
**Chap 1**
**State Trust Land: Article X** - **AZ Constitution -**
1. **Land Transferred** from **Federal Government to AZ** **in 1910** **held in trust.**
2. **Land** **held in Trust** and **Managed by** **AZ State Land Dept** to be **Sold and Leased**.
3. **Benefits Schools**
**Chap 1**
1146
**Appurtenances** -
**Rights and Imp\_\_\_\_\_\_\_\_\_ "Transferred" with Land**, _unless_ _Reserved_ or _Excepted_.
1. **Imp\_\_\_\_\_\_\_\_** (Buildings, Fences, Trees, Sidewalks, Plants)
2. **Emb\_\_\_\_\_\_\_** (Tenant Farmer Harvesting Crops after Lease Expires)
3. **Bundle of R\_\_\_\_\_** (Mineral, Air, Riparian, Littoral Rights)
**Appurtenances** -
**Rights and Improvements "Transferred" with Land**, _unless_ _Reserved_ or _Excepted_.
1. **Improvements** (Buildings, Fences, Trees, Sidewalks, Plants)
2. **Emblements** (Tenant Farmer Harvesting Crops after Lease Expires)
3. **Bundle of Rights** (Mineral, Air, Riparian, Littoral Rights)
**Chap 1**
1147
**C\_\_\_\_\_\_\_\_\_**
**Process** of Changing Property **to Real or Personal**. By Agreement can become Personal Property.
**_If Court Decides, will ask seller intent:_**
1. Was the **article** **Permanently Attached**?
2. Will **Damage Occur** if item removed?
3. **Cost** has **No Bearing**!
**Conversion (of property**) -
**Process** of Changing Property **to Real or Personal**. By Agreement can become Personal Property.
**_If Court Decides, will ask seller intent:_**
1. Was the article **permanently attached**?
2. Will **damage occur** if item removed?
3. **Cost** - has **no bearing!**
**Chap 1**
1148
**Govern Rights (P.E.T.E) -**
1. **P** -
2. **E** -
3. **T** -
4. **E** -
**Govern Rights (P.E.T.E) -**
1. **P** - Police Power,
2. **E** - Eminent Domain,
3. **T** - Taxation,
4. **E** - Escheat
1149
**Right to Enact Laws** for **Health, Safety and Welfare of Public**.
## Footnote
**Zoning Laws, Health Codes, Building codes, and Right to License Brokers/Agents**
**Police Power** (**Health, Safety, and Welfare of Public**) -
**Right to Enact Laws** for **Health, Safety and Welfare of Public**.
**Zoning Laws, Health Codes, Building codes, and Right to License Brokers/Agents**
1150
1. **_Right to take_** **Private Property** **_for Public Use_** with **just Compensation Paid.**
2. **Note: 20 Day Notice of Court Action, Written Offer and Appraisal**
**Eminent Domain** -
1. **_Right to take_** **Private Property** **_for Public Use_** with **just Compensation Paid.**
2. **Note: 20 Day Notice of Court Action, Written Offer and Appraisal**
**Chap 1**
1151
**Reversion of Property** **to** **_State_** when **Owner Dies Intestate - No Will**. **Heirs have** **7 years to Claim Proceeds** **of Sale**.
**Escheat** -
**Reversion of Property** **to** **_State_** when **Owner Dies Intestate - No Will**. **Heirs have** **7 years to Claim Proceeds** **of Sale**.
**Chap 1**
1152
**D\_\_\_\_\_\_\_\_\_\_**
**Transfer of Privately Owned** Land to Public, **With No Consideration**, with **Intent for** **Public Use**.
**Example: Developer** **Grants a Right-of-Way Across** his **Property** for **Public Streets**
**Chap 1**
**Dedication** -
**Transfer of Privately Owned** Land to Public, **With No Consideration**, with **Intent for** **Public Use**.
**Example: Developer** **Grants a Right-of-Way Across** his **Property** for **Public Streets**
**Chap 1**
1153
**Intangible Rights and Privileges**, such as **Mineral Rights**, **Air Rights, Riparian Rights, Littoral Rights,** and **Easements**
**Bundle of Rights** -
**Intangible Rights and Privileges**, such as **Mineral Rights**, **Air Rights, Riparian Rights, Littoral Rights,** and **Easements**
**Chap 1**
1154
**C\_\_\_\_\_\_\_\_\_\_**
**"Process or Act"** of **_Taking Property_**
1. **20 Day Notice** - to owner before Court Action
2. **Written Offer and Appraisal**
3. **Compensation**
**Chap 1**
**Condemnation**-
**"Process or Act"** of _Taking Property_
1. **20 Day Notice** - to owner before Court Action
2. **Written Offer and Appraisal**
3. **Compensation**
**Chap 1**
1155
**D\_\_\_**
**Written Instrument** by which a **Property Owner (Grantor) Conveys** (To Grantee) an "Ownership Interest in Real Property.
1. Grantor - Give Deed
2. Grantee - Receives Deed
**Deed -**
**Written Instrument** by which a **Property Owner (Grantor) Conveys** (To Grantee) an "Ownership Interest in Real Property.
1. Grantor - Give Deed
2. Grantee - Receives Deed
**Chap 1**
1156
**Land and Everything Attached to it**, such as **Rights, "Immovable." Transfered by Deed**?
**Real Property (Real Estate)**
**Land and Everything Attached to it**, such as **Rights, "Immovable." Transfered by Deed**?
**Chap 1**
1157
Who gives a Deed?
**Grantor -**
Gives the Deed
**Chap 1**
1158
Who received the Deed?
**Grantee -**
**Recieves** the Deed
**Chap 1**
1159
**Ownership** extends **to the Sky and to Center of Earth**, **includes "Air Rights" and "Subsurface Rights"**
**Ownership:**
1. **Federal Gove 42.2%**
2. **Native American - 27.6%**
3. **Private - 17.5%**
4. **State Trust Land 12.7%**
**Land -**
**Ownership** extends **to the Sky and to Center of Earth**, **includes "Air Rights" and "Subsurface Rights"**
**Ownership:**
1. **Federal Gove 42.2%**
2. **Native American - 27.6%**
3. **Private - 17.5%**
4. **State Trust Land 12.7%**
**Chap 1**
1160
**Tearing Away of Land** due to Natural Causes is called what two things?
## Footnote
**Chap 1**
**Erosion / Avulsion -**
**Tearing Away of Land** due to Natural Causes
**Chap 1**
1161
**The Increase of Land** due to Natural Causes is called?
**Accretion -**
**The Increase of Land** due to Natural Causes
**Chap 1**
1162
No Two Parcels of Land are the Same
**Heterogeneity** -
No Two Parcels of Land are the Same
**Chap 1**
1163
**Right of a Tenant Farmer** **to Harvest Crops** after the Lease has Expired. **Also known as Annual Crops - Fructus Naturales**.
**Emblements -**
**Right of a Tenant Farmer** **to Harvest Crops** after the Lease has Expired. **Also known as Annual Crops - Fructus Naturales**.
**Chap 1**
1164
Water Rights **Next to a River or Stream** are called?
**Riparian Rights -**
Water Rights **Next to a River or Stream**
**Chap 1**
1165
**Water Rights Next** to a **Lake or Ocean** is called?
**Littoral Rights** -
**Water Rights Next** to a **Lake or Ocean**
**Chap 1**
1166
**F\_\_\_\_\_\_ -**
**Item** which **was Personal Property** but has been **_Permanently Attached_** to and Has become **Real Property**.
1. **Agmt of Parties** - Will Allow these Items to become Personal Property again.
2. **_No Agrmt - Court Decides by asking_**:
1. Was it **Permanently Attached**?
2. **Will Damage Occur** if removed?
3. **Cost has No Bearing**
**Fixture -**
**Item** which **was Personal Property** but has been **_Permanently Attached_** to and Has become **Real Property**.
1. **Agmt of Parties** - Will Allow these Items to become Personal Property again.
2. **_No Agrmt - Court Decides by asking_**:
1. Was it **Permanently Attached**?
2. **Will Damage Occur** if removed?
3. **Cost has No Bearing**
Chap 1
1167
**Af\_\_\_\_\_ of A\_\_\_\_\_\_\_ -**
**Document** used to _Make Mobile/Manufactured Home_ "Real Property," and **Must be Recorded?**
Notes:
1. **_Vehicle Titles_** **must be Surrendered**
2. **_Real Estate Licensees may_:**
1. **May List (New/Used) Unaffixed** Mobile/Manufactured Homes
2. Represent **Dealers or Private Sellers**
**Affidavit of Affixture -**
**Document** used to _Make Mobile/Manufactured Home_ "Real Property," and **Must be Recorded?**
Notes:
1. **_Vehicle Titles_** **must be Surrendered**
2. **_Real Estate Licensees may_:**
1. **May List (New/Used) Unaffixed** Mobile/Manufactured Homes
2. Represent **Dealers or Private Sellers**
**Chap 1**
1168
**Charge** Against Property to **Bear Cost of Muncipal Functions**
## Footnote
**Chap 1**
**Taxation -**
**Charge** Against Property to **Bear Cost of Muncipal Functions**
**Chap 1**
1169
**AZ S\_\_\_\_ L\_\_\_ D\_\_\_\_ -**
**Managed Land Held in Trust** to be Sold and Leased
**AZ State Land Dept -**
**Managed Land Held in Trust** to be Sold and Leased
**Chap 1**
1170
**S\_\_\_ T\_\_\_ L\_\_\_\_ P\_\_\_\_\_ -**
**Benefit Schools and Other Entities**
**State Trust Land Proceeds -**
**Benefit Schools and Other Entities**
**Chap 1**
1171
**State Trust Land (AZ Constituion - Article 10)** -
This Land was Transfered When and by Whom?
**Chap 1**
**State Trust Land (AZ Constitution - Article 10) -**
**_Land Transfered_ - In 1910 by "Federal Government" to AZ**
**Chap 1**
1172
What **Transfers "Personal Property?"**
**Bill of Sale -**
Transfers "Personal Property"
**Chap 1**
