Real Estate Sales Licensing - Notes & Facts for Brief Study Flashcards
(171 cards)
1
Q
What rates are used to calculate the assessed value of 1) Residential and 2) Land
A
Residential 10%
Land 16%
2
Q
How will property taxes show on Closing Statement
A
Debit Seller, Credit Buyer
3
Q
What is lien priority
A
Property taxes
Special Assessments
4
Q
When a property tax sale is held. What does the low interest bidder receive
A
Certificate of Purchase
5
Q
Property Taxes Would be AHEAD of an IRS lien or a deed of trust
A
Arizona Property taxes would always be in first lien position
6
Q
What is a buyer most likely to accept title with….
A
property tax lien for the current year’s taxes
7
Q
Which of the deeds have the best warranties
A
General warranty
8
Q
Who receives title through a deed of conveyance
A
Grantee
9
Q
Deed restrictions that run with the land and liens are
A
Encumbrances
10
Q
Escrow Company works for….
A
Buyer and Seller
11
Q
A deed is legally enforceable if it is….
A
Recorded
12
Q
What is the purpose of a closing statement
A
Shows all monies / costs involved in a transaction
13
Q
Who signs the settlement sheet?
A
Buyer, Seller and Escrow agent
14
Q
What does the Covenant of Seisin promise?
A
The grantor has the right to convey the property
15
Q
Title Insurance has no impact on what?
A
No impact on property value
16
Q
When an abstract of title was completed, what does it indicate?
A
It indicates that a title search was completed
17
Q
What must be paid when a conventional loan is greater than 80%?
A
PMI Private Mortgage Insurance must be paid at time of closing.
18
Q
Owner’s Title Insurance is for the protection of who?
A
Buyer
19
Q
What would never show on a closing statement?
A
Principal payments
20
Q
What is the (mathematical) difference between debits and credits?
A
The amount needed to close the escrow and balance.
21
Q
When the buyer is buying a rental property, the security deposits are….
A
not prorated
22
Q
Owner’s title insurance policy would not cover…..
A
Parties in Possession
23
Q
What is it called when the escrow company turns the matter over to the court to settle a dispute?
A
Interpleader
24
Q
Can a property be sold with no ingress or egress?
A
Yes, is must be stated in the deed
25
What is the Affidavit of Value
document recorded along with the deed. (Affidavit literally means "has pledged one's faith".
26
When / Why is Affidavit or Value used by the county assessor
to hep the assessor determine property value for taxation
27
When is the docket and page number assigned
redecoration
28
What would an extended policy of title insurance cover
Encroachments
29
In order to record a deed it must be....?
Signed and Acknowledged
30
What is Pur Autre Vie
"For the life of another" when a party is given a life estate based on the life of another person.
31
What is Color of Title
Gives the appearance of title, but is not.
32
What is Color of Title
Gives the appearance of title, but is not.
33
When may the seller retain the earnest money?
if the buyer signs a contract and then decides not to complete the terms of the contract
34
What is is called when a party has the right of rescission in a contract?
Voidable
35
If a buyer can't qualify for a loan, what clause in a purchase contract would benefit the buyer?
Contingency
36
When a purchase contract is signed by the buer and seller, what is not required?
Notarized Signatures
37
All contracts must have what?
Consideration
38
When a contract is made between a competent party and a minor, it is?
Voidable by the minor
39
When an offer is written on another broker's listing, the selling agent is required to ?
Contact the Listing Broker
40
What would have priority on a purchase contract with handwritten and reprinted language?
The handwritten language would have priority
41
All contracts are required to be written per.... what?
Statue of Frauds
42
When a contract is based on fraud it is....
Voidable by the party the fraud was committed against.
43
A unilateral contract would be.....
Option
First right of refusal
Reward Poster
44
A contract is not considered valid until there is ....
An offer of acceptance
45
When a contract is for an illegal act or purpose it is?
Void
46
A makes an offer to B, the offer is signed by B who makes a counter and dies before A accepts, what is the contract status?
Unenforceable
47
What is Specific Performance?
A court action to compel a buyer or seller to carry out the terms of a contract.
48
What is Specific Performance?
A court action to compel a buyer or seller to carry out the terms of a contract.
49
When a contract is signed by someone other than the seller is would most likely be...
An attorney- in- fact
50
What could government power could terminate a purchase contract?
Eminent Domain or Condemnation
51
What should an agent do is a contract has pre-written language?
Review and alter if necessary
52
Which agent has the original contract and the earnest money?
Selling Agent
53
When an option to buy is exercised, the option is....
Unilateral Executed
54
What is a unilateral contract? Give an example
One party gives a promise in exchange for an act.
Example: Open listing listing contract where a seller agrees to pay the the first broker who brings in a ready, willing and able buyer.
55
When an option to buy is exercised, the new contract is....
Bilateral Executory
56
When can a real estate agent modify a contract
Only if it is signed by the buyer and seller
57
What is not recorded when a real estate transaction is set to close escrow?
Purchase Contract
58
When would a buyer get the earnest money deposit back
If the contract contained a Contingency Clause
59
When a buyer defaults on a purchase contract and the seller keeps the earnest money, this is called....?
Liquidated Damages
60
A makes an offer to B, all parties sign, and then B dies,. Is the contract valid or invalid?
Valid Contract
61
When a buyer enters into a lease - purchase....
the buyer is OBLIGATED TO BUY THE PROPERTY ON A SPECIFIC DATE.
62
When a salesperson has a buyer sign a "buyer brokerage agreement" it must have what?
A beginning and ending date
63
What is Intentional misrepresentation?
A false statement made with the intention of inducing another party
64
What should the salesperson do is PERSONAL PROPERTY is included in a sale?
Take an inventory
65
If a sales contract is signed by one spouse, what is the status?
Unenforceable against both.
66
When a purchase contract is signed under duress, the contract is?
Voicable
67
An illusory contract is?
Unenforceable
68
What is an illusory contract?
Seems to be a contract... buy may not be.
69
In a listing agreement the seller is also known as what?
Client or Principal
70
What is a client (or principal) owed from their agent?
Fiduciary duties
71
What is a third party in a real estate transaction?
Customer
72
What listing gives the broker the least protection
Open listing
73
What type of listing gives the broker the greatest protection
Exclusive Right to Sell
74
All listings must have what?
Beginning and End date
75
What is a dual agency
When the brokerage company represents both the buyer and seller.
Legal as long as all parties AGREE IN WRITING
76
What is an Exclusive Agency Listing
Owner hires one broker but may sell the property for sale by owner and not pay a commission
77
In an exclusive agency listing who would a commission be paid to?
MLS agents and sub-agents
78
Why is a net listing illegal in some states
Because a broker may undervalue the property
79
What is implied agency
Of an agent makes a person think they're their agent
80
When would a listing be terminated
Bankruptcy
81
What is it called when a broker speaks for a seller without their authority?
Ostensible
82
What are an Agents Fiduciary Duties?
```
CARLOAD:
Confidentiality
Accountability
Reasonable CARE and Skill
Loyalty
Obedience
Advocacy
Disclosure
```
83
How is the broker's right to a commission established
the Listing Agreement
84
When does a mechanics lien take priority
the day the work began
85
How long does a general contractor have to file after their Notice of Completion?
120 days to file their lien.
| The sub-contractor also has 120 days
86
How long does a Mechanics Lien stay Valid?
Six Months from the fay of recordation - a lawsuit must be filed within six months for the lien to remain valid
87
Who may file a Mechanic's Lien?
```
General Contractor,
Sub-Contractor,
Architect,
Engineer
Provider of Materials
```
88
If a tenant imroves a property and fails to pay the contractor, the Mechanics Lien will....
encumber the tenant's leasehold interest
89
What does the Arizona Homestead Exemption protect.?
Protects the Equity in a personal residence up to $150,000.
90
What does the Arizona Homestead NOT protect?
a person against any action they voluntary entered into, secured liens, or rights of the government.
91
When is homestead protection lost?
When the person sells or moves out of the property
92
How long are judgments valid for?
5 years
93
When may judgments be renewed?
May be renewed within the last 90 days of the five years
94
How are judgments from another state recorded in Arizona?
Foreign Judgment
95
Where would judgments appear?
Title report, credit report and in the county recorder's office
96
Judgement are what type of lien?
A general lien. They attach to real and personal property.
97
What determines Value
Utility, Scarcity, and Transerability
98
When conducting a neighborhood analysis, the appraiser is interested in
Economic Depreciation
99
What is an example of external (economic) obsolence?
Air pollution; Noise
100
What are the CAP rate and Capitalized value based on?
Net Income
101
What approach would an appraiser use when appraising special property (church)
Cost Approach
102
What are appraisers paid based on?
Time, travel, work
103
What is Integration and Disintegration (Development, Stability & Decline).
What an appraiser looks for when studying an area for growth and decline.
104
Is a building has a poor floor plan it is an example of
Functional Obsolescence.
105
What happens when the CAP rate goes up?
The value goes down
106
What approach must an appraiser use when appeasing land
The Market Approach
107
What is the Cost Approach
Also known as summation.This is an estimate of value based on reproduction / replacement costs. Used for new construction, custom homes, special use or service property (churches, theaters) where comps are unavailable.
108
What is the Market Approach
Also known as comparative analysis, used when appraising land and "used" residential property.
109
Operating Expenses do not include
Vacancies and loss of credit
110
What is reconciliation?
Also known as correlation. This is the final step when an appraiser used all three appraisal approaches (Cost, Market and Income Approach).
111
What is the least important factor when using the Market Approach?
Property in Foreclosure
112
What may you have at the end of the economic life?
Salvage Value
113
What is the highest price a property will demand?
Market Value
114
Economic Depreciation is always.... what?
Incurable
115
What would an appraiser do is the comps in the area has less features than the subject property?
Add dollar value to the subject property.
116
What is substitution?
The benefits of one property when compared to another
117
What can the landlord keep if the lessee pays upfront deposits and then cancels the lease
Security Deposit
118
When must a licensee notify the RE dept of a felony or misdemeanor
10 days
119
All contracts must be initialed by a designated broker or delegated associate broker... when?
Within 10 business days
120
Who regulated Arizona Environmental policies?
AZ Department of Environmental Quality
121
When is the seller responsible to give HOA documents to the buyer?
Less than 50 units
122
When is the HOA responsible to giver the buyer documents regarding HOA?
50 units or more
123
What are Arizona "Superfund" sites?
Water Quality Assurance Revolving Fund
124
A revocable permission to use property for weekends only would be a
License
125
When does the seller receive the buyers earnest money?
COE
126
What is similar to medical malpractice insurance?
Errors and Omissions insurance
127
Fair dealing is the same as what
Honesty
128
How long is a broker required to keep rejected offers
one-year
129
When a property owner is requesting a variance, they must show what?
They are required to show a hardship
130
What is required when 5 or fewer parcels other than subdivided land are located in an unincorporated area of a county?
Land Disclosure Affidavit
131
What is RESPA
Real Estate Settlement Procedures Act
(The purpose of RESPA is to help consumers become better shoppers for settlement services and to eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services)
132
What types of RE does RESPA cover?
Residential real estate, 1-4 plex
133
What types of loans would RESPA not cover?
Seller Carryback and Loan Assumptions
134
A limited partnership is closest to a .... what?
Syndicate
135
How is a master planned community defined?
Two or more platted subdivisions with CC & R's
136
What does CC & R stand for?
Covenants, Conditions and Restrictions
137
What is an assignment? Who is involved?
The transfer of the right, title and interest in the property of one person (the assignor) to another (the assignee).
138
Regulation Z shows all costs of borrowing the money except for....
Document Preparation Fees
139
What is an interest only payment loan called?
Term loan
140
What type of lien is a mortgage
A voluntary lien
141
If RE companies agreed not to do business in each other's areas what would this violate?
The Sherman Anti-Trust Act
142
What is the rate the Federal Reserve charges when loaning money to banks?
Discount Rate
143
What is the fee called that a lender charged to cover their overhead?
Origination Fee
144
Trustor =
Borrower
145
Beneficiary =
Lender
146
Trustee =
Hold Legal Title "Bare & Naked"
147
Mortgagor =
Borrower
148
Mortgagee =
Lender
149
Vendor =
Seller
150
Vendee =
Buyer
151
When is an Agreement for Sale used?
Between two private parties in a carryback
152
AMA
Active Management Area
| In relation to Water Rights
153
Why are areas designated to be an AMA?
Overdraft of the underground water supply
154
Assured Water Supply
Water Available for 100 years. Needed for residential RE Development in an AMA
155
Outside of an AMA, subdivider must provide an
Adequate Water supply
156
A grandfathered water right that remains with the land but could be used for non-irrigation purposes is called....
Type 1
157
A grandfathered water right that may be sold separate from the land is called
Type II
158
Who regulated Arizona water usage?
Department of Water Resources
159
Civil Rights of 1866
prohibits any type of discrimination by race
160
What is Redlining
limiting loans or insurance to a geographical area
161
What is the Fair Housing Penatly (fine for first offense)
$16,000
162
Who administers Federal Fair Housing Law?
HUD
163
ADA Title I
Requires employers to make reasonable accommodations that enable person with disability to perform a job.
Applies to employer with 15 or more employees
164
ADA First Offense Fine? All future Fines?
$55,000 for First Offense
| $110,000 for all future fines.
165
What are the dimensions of a section? How many acres are in a section?
1 mile by 1 mile.
| 640 acres.
166
What are the dimensions of a township?
How many square miles?
How many sections?
6 miles square
36 sq miles.
36 sections
167
How is the distance of townships measured?
In a span
168
Which direction do tiers run?
East and West
169
Which direction do range lines run?
North and South
170
What is the distance between range lines?
6 miles
171
How many sq rods are in an acre
160
