Real estate Review

Question 1

Transfer of real property requires what?

Answer 1

Deed

Question 2

When a landlord does not comply and tenant moves out due to noncompliance, this is what type of eviction?

Answer 2

Constructive Eviction

Question 3

What doesn’t impact property value?

• Lenders Appraisal
• Conformity
• Contribution
• Title Insurance Policy

Answer 3

Title Insurance Policy

Question 4

What appraisal approach uses depreciation?

• Income
• Cost
• Comparative Analysis
• Market

Answer 4

Cost Approach

Question 5

What would not apply to the cost approach of appraising?

• Reproduction
• Net Income
• Unit in Place
• Summation

Answer 5

Net Income

Question 6

Wetlands Would come under which of the following controls? Police power, deed restrictions, zoning, eminent domain

Answer 6

Police power

Question 7

Water table is defined as

Answer 7

The level at which water will be located

Question 8

When appraising a commercial rental office, which approach would be used? Market, cost, highest and best use, income

Answer 8

Income Approach would be utilized

Question 9

When appraising a church, the appraiser would use what approach? Income approach, market approach, average of income cost and market approach, or cost approach?

Answer 9

Cost Approach

Question 10

Is Net Income used in Cost Approach?

Answer 10

Net Income is irrelevant in the cost approach

Question 11

When a rule neighborhood loses its only fire station, this is called physical depreciation, economic depreciation, functional depreciation, regression and progression

Answer 11

This is an example of economic depreciation

Question 12

Would be considered functional obsolescence? Broken garage door, worn out carpet, high crime area, five bedroom one bath

Answer 12

Five bedrooms and one bath

Question 13

The best approach would be

Highest and best use, market, income, cost

Answer 13

Land is appraised at market value

Question 14

$200,000 house in a $100,000. This would be

Substitution, highest and best use, progression, regression

Answer 14

Regression

Question 15

Which of the following would not be an operating expense in the income method of appraising?
Utilities
Property Taxes
Principal and interest payments
Management fee

Answer 15

Principal and interest payments are not included in operating expenses

Question 16

What would be least important when appraising property? Location of property, highest and best use, zoning, original cost?

Answer 16

Original cost is generally irrelevant in an appraisal

Question 17

When a rural neighborhood loses its only fire station this is called one
, physical depreciation, economic depreciation, regression and progression, or functional depreciation?

Answer 17

Economic depreciation

Question 18

When the cost is to determine the value, which of the following applies?

Answer 18

Replacement minus depreciation

Question 19

Package mortgage

Answer 19

Where personal property is included in RE sale and financed with one contract.

Question 20

Points

Answer 20

One percent of the loan amount. Often used for discount points. Points are used to increase the lenders yield on a loan.

Question 21

What is the rescission time when a party purchases a timeshare?

Answer 21

7-Days

Question 22

When a buyer purchases a parcel of unimproved land, there exists a right to rescind

Answer 22

AZ Statutes; the buyer has a 7 day unilateral right to rescind if he has seen the property.

Question 23

A subdivision public report is not required on what properties.

Answer 23

Commercial Lots

Question 24

A licensee May place a sign on a property with whose permission?

Answer 24

Written agreement from property owner

Question 25

``` The Real Estate rules are formulated by: State Legislature Governor Commissioner Advisory board ```

Answer 25

Commissioner

Question 26

``` The rate for a license to prepare contracts in Arizona comes from: AZ Revised Statutes Statute of Frauds Commissioners Rules AZ Constitution Article XXVI ```

Answer 26

AZ Constitution Article XXVI

Question 27

True or False: | Dual agency requires prior written consent from the principle?

Answer 27

True

Question 28

``` What would terminate a listing agreement? Death is Salesperson Increase in property value Change in sellers financial condition Death of the seller ```

Answer 28

Death of the Seller will terminate the listing agreement

Question 29

When a broker is charged with an administrative fine, the fine amount can be up to:

Answer 29

$1000

Question 30

``` The commission rate on the sale of commercial property is determined by: The Commissioner Law The local real estate board Agreement between broker and principal ```

Answer 30

The commission is established by an agreement between broker and principal.

Question 31

``` Puffing is: Exaggeration Fraud Proven and factual statements Opinion of fact ```

Answer 31

Exaggeration

Question 32

RESPA

Answer 32

Federal law dealing with real estate closings which sets forth specific procedures and guidelines for disclosure settlement costs

Question 33

A selling broker may present an offer directly to the seller without the listing broker if he tries to reach the listing broker for how many hours?

Answer 33

24 Hours

Question 34

What does Megan’s Law provide?

Answer 34

Information regarding child molesters

Question 35

What kind of deed would you find a Habendum clause? Warranty/Grant deed Deed of trust

Answer 35

Warranty/Grant Deed

Question 36

``` What type of title insurance would a lender require if loaning money on residential property? Errors and omissions Extended Liability Standard ```

Answer 36

Extended title insurance is required

Question 37

A mortgage has been satisfied but there’s no evidence of this in the chain of title. What is the condition of the title? A disclaimer deed would need to be recorded Title is clear Cloud on title A deed restriction would appear on title

Answer 37

(Cloud Title) | When there is no evidence in the chain of title that a mortgage has been satisfied, a cloud on title exists

Question 38

Words in a deed that limit the extent of the grantees ownership: Granting Habendum Defeasance Estoppel

Answer 38

The Habendum clause limits the extent of the grantees ownership