Q Book: Missed answers Flashcards by Laura Riggs

Which of the following would be the best method for appraising vacant land?

a. Market data approach
b. Income approach
c. Cost approach
d. Substitution approach

Market data approach

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The affidavit of legal value must be signed by:

a. Title officer and loan originator
b. Buyer and seller or their agents
c. County recorder
d. Mortgage broker and the seller

Buyer and seller or their agents

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When do the anti-deficiency statutes apply?

a. The property at issue must be a duplex or a single-family residence
b. The real property must be 2.5 acres or less
c. The loan at issue must be a purchase money mortgage
d. All of the above

All of the above

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Mary and Jack started a brokerage together. Jack made a mistake that resulted in a lawsuit. One of the two had a large sum of money that had to be used to pay the lawsuit. What type of ownership did Mary and Jack have?

a. Joint Venture
b. Corporation
c. LLC
d. Sole Proprietor

Joint venture

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In a judicial foreclosure, which of the following is not true?

a. There is a ‘Power of sale clause’
b. A lawsuit is filed to obtain a court order
c. There is a statutory redemption period
d. The home is auctioned to the highest bidder

There is a “Power of sale clause”

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The Central Arizona Water Conservation District (CAWCD) was formed in:

a. 1964
b. 1968
c. 1971
d. 1988

1971

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Maggie May just purchased a condominium in Scottsdale Towers from the original purchaser who was allowed a 5 day right of recission. How many days is Maggie allowed to rescind her contract?

a. 5 days
b. 10 days
c. 7 days
d. 0 days

0 days

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A buyer purchases an unimproved lot from a developer who will also build a house on the lot within 6 months. How long does the buyer have to rescind the transaction?

a. 6 months
b. 7 calendar days
c. 7 business days
d. No recission

No recission

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What legal purpose does recording the deed fulfill?

a. Guarantees title
b. Creates the tax lien
c. Increases the value of the property
d. Gives constructive notice to 3rd parties about the title

Gives constructive notice to 3rd parties about the title

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The commissioner will not issue a cease and desist order to a licensee for?

a. Act
b. Practice
c. Transaction
d. Recover fund claim

Recovery fund claim

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To be in compliance with Regulation Z (Truth in Lending Act), which of the following statements in advertising would require full disclosure?

a. FHA financing available
b. 10% down payment
c. Low monthly payment
d. Small down payment

10% down payment

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The foreclosure sale on a commercial property brought in $50,000 less than what was owed. The lender can?

a. Not get the money back
b. File a deficiency judgment
c. Force the owner into bankruptcy
d. None of the above

File a deficiency judgment

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When was the Arizona Fair Housing Act enacted?

a. July, 1991
b. April, 1987
c. October, 1998
d. December, 1986

July, 1991

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When the government takes private property without paying any compensation is called?

a. Eminent domain
b. Escheat
c. Taxation
d. Inverse condemnation

Escheat

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When entering into a listing contract with a client, the omission of which of the following items could result in the licensee being disciplined by the Department of Real Estate?

a. A specific rate of commission
b. A definite termination clause
c. A broker protection clause
d. A legal description

A definite termination clause

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Josephine wanted to purchase a home but was not able to obtain a federally insured loan. The seller agreed to help her with the financing by having Josephine put down a $12,000 deposit and make monthly payments until the loan is paid off. This type of financing is called a

a. term loan
b. agreement for sale
c. take-out loan
d. amortized loan

agreement for sale

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To be extinguished by a court action brought by the servient property owner, a prescriptive easement must of been abandoned for at least

a. 5 years
b. 7 years
c. 10 years
d. 20 years

5 years

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Two sisters inherit a home from their recently deceased parents. They want the title to reflect that they own the home together, and they want to assure title will pass to the other should one of them die. Which of the following methods of ownership would allow them to accomplish this?

a. Community property
b. Tenancy in common
c. Joint tenancy with right of survivorship
d. Community property with right of survivorship

Joint tenancy with right of survivorship

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A real estate licensee must make an agency disclosure to prospective purchasers or tenants:

a. Before they are shown any properties
b. At an open house
c. At the close of escrow
d. Before any purchase offers or leases are prepared

Before any purchase offers of leases are prepared

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Addison Woods is a salesperson for Grayson Realty Group and is representing Steve Braxton a home owner looking to sell his home. The type of agency created is:

a. Designated agency
b. DIsclosed dual agency
c. Special agency
d. Exclusive buyer agency

Special agency

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Charles has just made the final payment on his home mortgage to the mortgagee. There will still be a lien on the property until the mortgagee records a(n):

a. Deed of reconveyance
b. Satisfaction certificate
c. Alienation of mortgagee
d. Promissory note

Satisfaction certificate

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A “friendly foreclosure” enables a mortgagor to prevent the mortgagee from taking the property by statutory means. This can be accomplished by use of a(n)

a. Reconveyance deed
b. Deed in lieu of foreclosure
c. Assumption
d. Escrow deed

Deed in lieu of foreclosure

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Who administers the Real Estate Settlement and Procedures Act (RESPA)?

a. Federal Trade Commission
b. Consumer Financial Protection Bureau
c. Office of the US Attorney General
d. Department of Veteran Affairs

Consumer Financial Protection Bureau

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A document that protects against hidden risks such as forgeries and loss due to defects in the title, subject to specific exceptions, is called:

a. title insurance policy
b. certificate of title
c. abstract of title
d. chain of title

title insurance policy

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The severalty owner of a parcel of land sells it to a buyer. The buyer insists that the owner's wife join in signing the deed. The purpose of obtaining the wife's signature is to: a. satisfy the parole of evidence rule b. provide evidence that the owner is married c. defeat any curtesy rights d. waive any marital or homestead rights

satisfy the parole of evidence rule

When purchasing a commercial property, the buyer places $15,000 in an escrow account, and the offer stipulated the seller was to place $15,000 in an escrow account. If either party breached the contract, the aggrieved party was to receive the $15,000. This is best described as a(n) a. liquidated damage clause b. equitable damage clause c. earnest money clause d. punitive damage clause

liquidated damage clause

What is the meaning of a non-conforming loan? a. Borrower is delinquent in payments b. the loan is secured by personal property rather than real property c. lacks government guarantee of insurance d. Does not meet the purchase requirements of Fannie May

Does not meet the purchase requirements of Fannie May

When would employers need to be in compliance with Title 1 of the Americans with Disabilities Act? a. All employers b. Those with 3 or more employees c. Those with 12 or more employees d. Those with 15 or more employees

Those with 15 or more employees

If the grantor delivers a deed to the grantee in which the name of the grantee has been left out inadvertently, the deed is a. Void b. Voidable c. Valid d. Forged

Void

Broker Y has a listing, broker K represents the buyer and presents the offer, and notes the home has a sewer. Broker Y knows the home is on a septic system. Broker Y should a. Advise the buyer to counteroffer with the correction to avoid misrepresentation b. Advise the seller to accept the offer c. Advise the buyer to accept the offer and then add a clause in the contract later d. Advise the seller to reject the offer

Advise the seller to accept the offer

A claim of title can be defeated by adverse possession by the property owner by: a. permission b. condemnation c. will d. confirmation

permission

When real estate is sold under a contract for deed, possession is usually given to the buyer. The vendee's interest in the property is: a. held by the mortgagee until final payment is made b. held by the seller until the full purchase price is paid in full c. legal title interest d. equitable title interest

equitable title interest

What is true about the Federal National Mortgage Association? a. it participates in the secondary mortgage market b. it participates in the primary mortgage market c. it regulates the savings and loan market d. it lends money to first time home buyers

it participates in the secondary mortgage market

You bought a home for $375,000 which was 20% less than the list price and sold the home for 10% more than the list price. What was your percentage of profit? a. 25% b. 38% c. 42% d. 52%

purchase price / (100-%) = list price list price x 1.(%) = sold price sold - purchase = profit $ profit $ / purchase = % profit 375000/80% = 468750 468750 x 1.10 = 515625 515625-375000 = 140625 140625/375000 = .375

An apartment complex was purchased two years ago for $850,000 and now appraises for $925,000. The net operating income for the year is $65,000. What would the capitalization rate be? a. 5% b. 7% c. 10% d. 18%

``` income/value = cap rate 65000/925000 = 0.07 ```

How much annual tax will be paid on a parcel of real estate assessed at $278,000, using an equalization factor of 1.20 and a tax rate of $3.25 per $100 of assessed value? a. $9035 b. $10,842 c. $12,324 d. $14,383

assessed value x equalization factor / 100 x $$ | 278,000 x 1.20 = 333600 / 100 = 3336 x 3.25 = 10842

A homeowner borrows $4800 from a lender to install a new air conditioner at 8% interest. When the loan is paid off at the end of 9 months, the total paid will be? a. $5,088 b. $5,184 c. $6,250 d. $6,875

4800 x .08 = 384 annual interest 384/12 = 32 monthly interest 32 x 9 = 288 total interest paid 4800 + 288 = 5088 total paid with interest

Lance Thomas owner acreage described as the SE1/4 of section 8. He sold half of his property for $6,000 per acre and a quarter of the balance for $5,200 per acre. What was the total sales price? a. $688,000 b. $584,000 c. $1,064,000 d. $896,000

SE1/4 of section 8 = 160 acres 1/2 is 80 acres x 6000 = 480000 1/4 balance is 20 acres x 5200 = 104000 480000+104000 = 584000

There is a tract of land that is 2.25 acres. The lot is 275 feet deep. How much will the lot sell for at $1,865 per front foot? a. $512,875 b. $375,000 c. $425,534 d. $664,686

total acreage x 43560 = 98010 98010/275 = 356.40 356.40 x 1865 = 664686

If the capitalization rate on a property is 7% and the income property has 50 units renting for $875 per month, what would the value be if operating expenses are $58,000 per year and the vacancy rate is 5% of the gross income? a. $62,900.50 b. $6,296,429 c. $629,000 d. $614,000

875 x 50 = 43750 x 12 = 525000 gross income 525000 x .05 = 26250 525000-26250-58000 = 440750 NOI 440750 / .07 = 6296429

Tom and Beth wish to obtain a new loan. Their combined monthly income is $10,000. What monthly P&I payment can they qualify for using the 28/36 qualifying ratios set by Fanny May if they have no other debt? a. $3,600 b. $2,800 c. $4,800 d. $10,000

- housing payment cannot exceed 28% of gross monthly income - housing payment plus all other monthly obligations cannot exceed 36% of the borrower's gross monthly income 10000 x .28 = 2800

Bobby owns an apartment building that contains 14 units. The total monthly rent generated is $5,000 and it represents a 8% return on Bobby's investment. What was the original cost of the property? a. $62,500 b. $78,000 c. $750,000 d. $825,000

5000 x 12 = 60000 | 60000 / 0.08 = 750000

In regards to priority of a lien, which would be paid in second position? a. Property tax lien b. HOA lien c. IRS lien d. Mortgage lien

Mortgage lien

What does a purchase money mortgage and agreement for sale have in common? a. Both originate from federally insured banking institutions b. both types of financing involve seller carry-back financing c. Both types of financing are used for land transactions only d. both are prohibited in AZ

Both types of financing involve seller carry-back financing

Jordan purchased a home for $220,000. He took out a 95% conventional loan and would pay 0.78% PMI in which 1/12th of that amount would be due monthly. How much of a PMI payment is due the first of the month? a. $1,630 b. $171.45 c. $1,850 d. $135.85

220000 x .95 = 209000 209000 x .0078 = 1630.20 1630.20 / 12 = 135.85

Which of the following defects on a property would be considered an environmental concern? a. A crack in a foundation b. Crumbling cement on a driveway c. A home backing up to a commercial building d. Standing water in a crawl space

Standing water in a crawl space

Who administers AZ's "Safe Drinking Water Act"? a. ADEQ b. ADWQ c. WQARF d. CERCLA

ADEQ

The party to a deed of trust that is similar to a borrower in a mortgage is called the a. trustee b. beneficiary c. testator d. trustor

trustor

Bare and naked title best describes the interest of the a. vendor in a contract for deed b. trustee in a deed of trust c. beneficiary in a deed of trust d. trustor in a deed of trust

Trustee in a deed of trust

The person hypothecating real estate is a. giving up possession b. keeping possession c. leasing the property d. subordinating the property

keeping possession

The term usury means a. taking advantage b. legal amount of interest c. illegal amount of interest d. financing personal property

illegal amount of interest

After the foreclosure sale, a borrower has the right to pay off the debt and retain the property is called a. equitable right of redemption b. defeasance right c. subrogation right d. statutory right of redemption

statutory right of redemption

The winning bidder in a deed of trust foreclosure sale will receive a a. trustee's deed b. sheriff's deed c. treasurer's deed d. beneficiary deed

trustee's deed

A mortgage that covers more than one parcel of property is a a. package mortgage b. blanket mortgage c. carry-back mortgage d. open-end mortgage

blanket mortgage

Jim receives a mortgage in the amount of $100,000 for 30 years at an interest rate of 6%. If his monthly payments are $575 and credited first to interest, what will the balance be of principal after he makes the first payment? a. $87,500 b. $94,925 c. $99,925 d. $99,985

100000 x .06 = 6000 6000/12 = 500 575-500 = 75 100000-75 = 99925

Who integrated the Real Estate Settlement and Procedures Act and Truth in Lending Act in November 2013? a. The National Association of REALTORS b. Regulation Z c. The Federal Fair Housing Act d. The Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau

A lender makes an 80% loan on a house that sells for $265,500 and appraises for $259,000. What is the amount of the loan? a. $212,000 b. $207,200 c. $350,600 d. $425,400

259000 x .8 = 207200

An example of constructive eviction would be a. tenant remains in possession after expiration of lease b. tenant given pay or quit notice from lessor c. landlord cutting off tenant's water d. tenant refuses to pay rent

landlord cutting off tenant's water

In Arizona, a landlord has how many days to comply with tenants written request for non-emergency issues? a. 5 days b. 7 days c. 10 days d. 14 days

10 days

A broker who enters into a property management agreement with an owner of a property becomes a a. receiver b. trustee c. lessor d. fiduciary

fiduciary

Property management agreements are kept for _____ years from their termination a. 1 year b. 5 years c. 7 years d. 10 years

5 years

Which instrument is used when a property is conveyed by devise? a. deed b. will c. title d. lease

will

The personal representative that is appointed by the testator is the? a. executor b. administrator c. escrow officer d. broker

executor

What is the term that is used when a person makes an amendment to a will a. correction b. assertion c. codicil d. rider

codicil

The following is the protection a person would receive in a standard title insurance policy a. recorded liens b. unrecorded liens c. possession d. property inspection

recorded liens

The mortgagee would typically require the following type of title insurance policy to protect their interest in the property a. ALTA b. lender's policy c. owners policy d. subordination policy

lender's policy

What did you pay for a property that is worth $287,400 at the end of 4 years if it has appreciated 3% per year? a. $279,029 b. $330,344 c. $256,607 d. $324,824

4 x 3% = 12% | 287400 / 1.12 = 256607

Q Book: Missed answers Flashcards

(67 cards)