Realtor Cheat Sheet Flashcards
(164 cards)
1
Q
What are the five rights of ownership?
A
Disposition
Enjoyment
Exclusion
Possession
Control
2
Q
What is the definition of an Easement?
A
The right to use or cross over someone else’s property for a specified purpose.
Ex. Landlocked Property
3
Q
Arizona Is A _________ Theory State
A
Lien
4
Q
Define Title?
A
Conceptual Rights To A Property.
Can’t Be Held In Hand Because It Is Only A Concept.
5
Q
What Is The Difference Between Legal Title & Equitable Title?
A
Legal Title: Comes with the right to CONTROL the property in compliance with the law.
Equitable Title: Comes with the right to ENJOY the property despite NOT being the Legal Title holders.
6
Q
Does The MORTGAG-EE Have Legal Title or Equitable Title?
A
Legal Title
7
Q
Does The MORTGAG-OR Have Legal Title or Equitable Title?
A
Equitable Title
8
Q
Does The TRUST-EE Have Legal Title or Equitable Title?
A
Legal Title
9
Q
Does The TRUST-OR Have Legal Title or Equitable Title?
A
Equitable Title
10
Q
Define Beneficiary?
A
The Lien Holder
11
Q
Define A Lien?
A
$$$ Owed As A Debt.
12
Q
Name All 6 Types Of Encumbrances?
A
Liens
Encroachments
HOA Dues
Gaps In Conveyance History
Deed Restrictions
Title Issues (i.e. Cloud On The Title)
13
Q
Define Encroachment?
A
An INTRUSION onto a person’s property violating their right to EXCLUSION.
14
Q
Define Arizona Article 26?
A
This is the real estate agent’s RIGHT to create contracts for clients.
15
Q
Define what a DEBIT means in a real estate transaction?
A
Any CHARGE or COST due to be PAID At CLOSING.
16
Q
Define what a CREDIT means in a real estate transaction?
A
Any $$$ Due To Be PAID BACK At CLOSING.
17
Q
What 3 Mortgage Companies are the PRIMARY buyers of FHA LOANS and also INSURES Them?
A
Fannie Mae - FNMA - Federal National Mortgage Association
Ginnie Mae - GNMA - Government National Mortgage Association
Freddie Mac - FHLMC - Federal Home Loan Mortgage Corporation
18
Q
Which Division of Arizona Department of Real Estate Administrator has NO Term Limit and Serves at the Governor’s Pleasure?
A
The Commissioner
19
Q
What Are The Names of the 7 Divisions of the Arizona Department of Real Estate?
A
- Office of Commissioner
- Auditing
- Development Service
- Education
- Enforcement and Compliance
- Investigations
- Licensing
20
Q
What 7 Items Are REQUIRED for a Real Estate CONTRACT to be COMPLETE?
A
- COMPETENTPARTIES
- OFFER and ACCEPTANCE of Contract
- LEGAL PURPOSE of the Contract
- DESCRIPTION of Subject Property or Address
- SIGNED by Competent Parties
- Must be IN WRITING
- Payment Amount or CONSIDERATION
21
Q
U.S. Department of Housing and Urban Development (HUD) oversees which Administration?
A
Federal Housing Administration (FHA)
22
Q
What are the duties of FIDUCIARY?
A
- Trust
- Confidential
- Honesty
- Non-Compete
- Fairness (Goes On Forever)
23
Q
What do CONDO rights include?
A
Air Rights
Tenancy In Common Rights (In Common Areas)
24
Q
What do TOWNHOUSE rights include?
A
Ownership of the Land
Ownership of the Building
25
Comparables Vs. Subject Property:
What does CIA mean?
If the COMPARABLE property is INFERIOR then we ADD
26
Comparables Vs. Subject Property:
What does CBS mean?
If the COMPARABLE property is BETTER (SUPERIOR) then we SUBTRACT.
27
Comparables Vs. Subject Property:
If the Subject Property VALUE goes UP.
What happens to the Capitalization Rate Percentage?
Capitalization Rate Percentage goes DOWN!
28
Comparables Vs. Subject Property:
If the Subject Property VALUE goes DOWN.
What happens to the Capitalization Rate Percentage?
Capitalization Rate Percentage goes UP!
29
Seller Financing:
Vendee @ Less Than 20% Equity
How long do they have to redeem the property, catch up on their payments, and continue making payments as scheduled on the property?
30 Day Redemption Period
30
Seller Financing:
Vendee @ 20% - 30% Equity
How long do they have to redeem the property, catch up on their payments, and continue making payments as scheduled on the property?
60 Day Redemption Period
31
Seller Financing:
Vendee @ 31% - 50% Equity
How long do they have to redeem the property, catch up on their payments, and continue making payments as scheduled on the property?
120 Day Redemption Period
32
Seller Financing:
Vendee @ 50% Equity or More
How long do they have to redeem the property, catch up on their payments, and continue making payments as scheduled on the property?
270 Day Redemption Period
33
Estates = Types of Interests:
Name All 4 Types of Timed- Leasehold Estates?
1. Estate for Years
2. Periodic Estate (M2M/Y2Y)
3. Estate At Will
4. Estate At Sufferance (Holdover Tenant)
34
Estates = Types of Interests:
Name All 4 Types of Freehold (FOREVER) Estates?
- FEE ESTATES?
1. Absolute
2. Determinable
3. Conditional
4. Subsequent
35
Estates = Types of Interests:
Name All 2 Types of Freehold (FOREVER) Estates?
- LIFE ESTATE?
1. Conventional
2. Legal Life
36
Estates = Types of Interests:
Name All 2 Types of Freehold (FOREVER) Estates?
- LIFE ESTATE?
1. Conventional
2. Legal Life
37
A PUBLIC REPORT is REQUIRED for ______ or more PARCELS in total of less than _____ ACRES.
6 or MORE Parcels
36 or LESS Acres
REMEMBER: 6 x 6 = 36
38
What is the definition of P.I.T.T. ?
Possession
Interest
Time
Title
39
Joint Tenancy Vs. Tenancy In Common:
Which MUST Have All P.I.T.T.?
Joint Tenants
40
Define a Community Property state?
Privately owned property becomes JOINTLY owned when any couple gets married couple.
41
Define With Rights Of Survivorship (WROS)?
42
CLUE Report MUST be given to the homebuyer by the LISTING AGENT ____ Days after Contract Acceptance.
5 Days
43
Measurements:
1 Acre = _______ Feet
43,560 Feet
44
Measurements:
1 Mile = _______ Feet
5,280 Feet
45
Measurements:
1 Section = _______ Acres
640 Acres
46
Measurements:
1 Township = _______ Total Sections
36 Total Sections
47
Compensation:
All commissions need to be paid to the _______ licensed to earn commissions.
With the exception of a _________ in one building or an apartment complex.
Broker
Property Manager
48
What is the rule when claiming Water Rights on a subject property?
First In TIME.
First In LINE.
49
What year was the Surface Water Code Enacted?
1919
50
What year was the Ground Water Code Enacted?
1980
51
Real Estate Agents are REQUIRED to complete _______ hours of education.
90
52
Real Estate Agents are REQUIRED to test within _____ years through the State.
10
53
Real Estate Agents are REQUIRED to ACTIVATE their license up to _______ year(s).
1
54
Real Estate Agents are REQUIRED to be given a grace period of ________ year(s) to ACTIVATE your real estate license.
1
55
Real Estate Agents are REQUIRED to attend ______ hours of Continuing Education every ________ years.
24 hours
2 years (REMEMBER: 24 month)
56
What are the 4 MAIN government powers?
1. Police Powers
2. Eminent Domain
3. Taxation
4. Escheat
REMEMBER: P.E.T.E.
57
Land always has ______. This can never go down to ZERO.
Value
58
Property Management:
Must give at least _____ days notice to enter, unless it is an EMERGENCY.
2
59
Property Management:
Tenant deposit cannot EXCEED _______ months total rent.
1.5 Months
60
Property Management:
Cannot deny applicants with ______ animals, or try to charge them more.
Service
61
Property Management:
Reasonable modifications can be made by request for a ________ tenant.
Special Needs
62
Property Management:
__________, tenant moves out, due to lack of repairs.
Constructive Eviction
63
Property Management:
Tenant can make repairs up to $______ or half the monthly rent.
$300
64
Property Management:
Home owners funds cannot be ____________ or __________ with the money of the property manager.
Commingled or Converted
65
Property Management:
Property Manager or Broker needs a SEPARATE ___________ account and to be able to provide ALL accounting records UPON REQUEST.
Trust
66
Property Management:
Cannot discriminate against tenants in neither __________ or ___________.
Advertising or Leasing
67
Property Management:
Leases must be IN WRITING unless the tenant is only planning on staying less than _________.
One Year
68
Property Management:
All agreements must be IN WRITING and also MUST have an ________.
End Date
69
Property Management:
In order to be a property manager, you MUST have an active real estate license for each case that you were found doing property management without an active license you will be charged a MANDATORY $______ civil penalty.
$1000
70
To Calculate Gain:
What is the formula?
Sales Price - Selling Costs
71
To Calculate Gain:
Sales Price is?
100% in Math
72
What are the 4 C’s of Lending Qualifications?
Credit Score
Capacity To Repay
Character History
Collateral
73
What is NOT a factor to determine credit worthiness?
Age
74
What is a factor to determine credit worthiness?
Credit Score
75
Appraisers determine the VALUE of a home based on their ________.
Opinion
76
Appraisers determine the VALUE of a home based on what THREE methods of appraisal?
Cost Approach
Sales Comparison Approach
Income Approach
77
Appraisers MUST be __________.
Licensed
78
When a homes value APPRECIATES what does this mean?
The Value INCREASES.
79
When a homes value DEPRECIATES what does this mean?
The Value DECREASES.
80
Often used for residential real estate and buildings that don't generate income, like schools, hospitals, and churches. This approach is considered the most accurate for valuing new homes. What Method Of Appraisal is this?
Cost Approach
81
This approach considers how individual features affect the overall value of the property. This approach uses comparisons of similar properties as evidence of value. What Method Of Appraisal is this?
Sales Comparison Approach
82
This method estimates the value of a property based on the income it generates. It involves dividing the net operating income by the capitalization rate, which is the expected rate of return. Also known as the capitalization approach. What Method Of Appraisal is this?
Income Approach
83
What is the purpose of the Recovery Fund?
It is a fund used to payout client’s recover losses caused by the conduct of a licensed agent.
84
The Recovery Fund’s liability shall not exceed ________ per INCIDENT?
$30,000
85
The Recovery Fund’s liability shall not exceed ________ per LICENSEE?
$90,000
86
If, on June 30 of any year, the balance in the Real Estate Recovery Fund is less than
$600,000, every broker and salesperson renewing a license during the following license year shall pay, in addition to the license renewal fee, a Recovery Fund fee of?
$10 and $20 Respectively
87
What type of loan requires 3.5% Down and Includes Mortgage Insurance?
Fair Housing Association (FHA)
88
What type of loan requires 0% Down and No Mortgage Insurance?
Veterans Affairs Loan (VA)
89
What type of loan requires at least 20% Down and No Mortgage Insurance?
Conventional Loan
90
What type of loan requires between 3 - 20% Down and requires Mortgage Insurance?
Conventional Loan
91
What type of loan meets federal guidelines?
Conforming Loan
92
What type of loan does NOT meet federal guidelines?
Non-Conforming Loan
93
Property Taxes:
When is the FIRST half of property taxes due?
When are they considered late?
Due in October
Late in November
94
Property Taxes:
When is the SECOND half of property taxes due?
When are they considered late?
Due in March
Late in May
95
Property Taxes:
When is NOTICE given to the public that property taxes are late?
September
96
Property Taxes:
When are the property taxes put up for Auction Sale to the public?
February
97
What governs the use of SURFACE water?
The Doctrine Of Prior Appropriation
98
The Doctrine Of Prior Appropriation:
What does “First in time, First in line” mean?
The first person historically on the property using the water will be allowed to continue using the water.
99
The Doctrine Of Prior Appropriation:
What does “Use it or Lose it” mean?
If the water is not used beneficially then the water rights can be lost.
100
The Doctrine Of Prior Appropriation:
What is the 5-Year Rule of Irrigation Rights?
The irrigation land must have been used for irrigation for at least 5 years before the creation of “The 1980 Groundwater Active Management Area (AMA’s) and Irrigation Non-Expansion Areas (INA’s) which created groundwater rights.
101
Closing Day:
This day usually belongs to the buyer which means they will have to bring _______ to the closing table.
Money
102
Closing Day:
Money given to someone who will be the RECIPIENT on the day of closing is called a ________.
Credit
103
Closing Day:
Money taken away to someone on the day of closing is called a ________.
Debit
104
Closing Day:
How many days are in a Banker’s Year?
How is each month calculated?
360 Days
30 Days Per Month
105
Closing Day:
How many days are in a Calendar Year?
How is each month calculated?
365 Days
Normal Amount Of Days Per Month
106
What is the acronym D.U.S.T. used for in land value?
It helps investors and homebuyers make informed decisions about their real estate purchases and potentially earn a good return on your investment.
107
What does the acronym D.U.S.T. stand for?
Demand
Utility
Scarcity
Transferability
108
Measurements:
How large is a section?
1 Mile x 1 Mile
109
Measurements:
How large is a township?
6 Miles x 6 Miles
110
Measurements:
Tiers are NORTH and SOUTH of the _____________.
Baseline
111
Measurements:
Ranges are EAST and WEST of the _____________.
Meridian
112
Measurements:
Ranges and Tiers are separated by _______ mile(s).
6 Miles
113
Measurements:
How many square miles is a township?
36 Square Miles
114
Measurements:
How many square miles is a township?
36 Square Miles
115
Measurements:
How many sections are in a township?
36 Sections
116
Measurements:
How are sections numbered in a township?
It ALWAYS - STARTS with the 1st section in the TOP RIGHT
The numbers go in order from 1- 6 BACKWARD
It ends with the 6th section on the LEFT
The next row starts with the 7th section
The numbers go in order from 7 -12 FORWARD
The next row starts with the 13th section
The numbers go in order from 13 -18 BACKWARD
The next row starts with the 19th section
The numbers go in order from 19 - 24 FORWARD
The next row starts with the 25th section
The numbers go in order from 26 -30 BACKWARD
The next row starts with the 31st section
The numbers go in order from 32 - 36 FORWARD
It ALWAYS - ENDS with the 36th section in the BOTTOM RIGHT
117
Ownership & Title:
One single person, Business, or Government Entity can only own a home in _________.
Severalty
118
Ownership & Title:
Two non-married individuals can only own a home in _________ or __________.
Tenancy In Common
Joint Tenancy
119
Timelines:
After a judicial mortgage foreclosure in Arizona, the debtor or his successors in interest ordinarily may redeem at any time at any time within ______ after the date of the sale.
6 Month Redemption Period
120
Timelines:
After a non-judicial Deed Of Trust or Trust Deed foreclosure in Arizona, there is a mandatory
Recordation of Notice of default and then a Trustee's Sale.
Once the Notice of Default is recorded the Trustee has to wait a certain amount of days before having the trustees sale. During the _______ Day Notice of Default the Trustor (borrower) will have this time to reinstate the loan by paying all back payments plus any cost incurred by the Trustee.
This is called the period of reinstatement.
90 Day
121
Timelines:
Materialman’s Lien:
Subcontractors and materialmen must provide a _______-day notice prior to filing a lien to alert the property owner, general contractor, or lender. The notice period begins with the delivery of materials or completion of the labor.
20 Day
122
Timelines:
Mechanic’s Lien:
Both general and subcontractors in Arizona must record mechanic's liens within _______ days, which includes the 20 days of the notice.
120 Days
123
Timelines:
A lien sold to recover delinquent taxes. The statutory redemption period after the tax foreclosure sale is ______ years.
3 Years
124
Timelines:
The broker must maintain Employment Records for at least ______ years.
5 Years
125
Timelines:
The broker must maintain all Closed / Completed Transactions for at least ______ years.
5 Years
126
Timelines:
The broker must maintain all Rejected Contracts for at least ______ year(s).
1 Year
127
Timelines:
The broker must maintain all Reviewed Contracts / Offers for at least ______ day(s).
10 Days
128
Foreclosure:
A Deed of Trust must go through a _______ foreclosure.
Non-Judicial
129
Foreclosure:
A Mortgage must go through a _______ foreclosure.
Judicial
130
Foreclosure:
A Mortgage must go through a _______ foreclosure.
Judicial
131
Foreclosure:
In the Deed of Trust foreclosure the Trustee holds the _______ until it is fully paid off.
Legal Title (Trustee Deed)
132
Foreclosure:
In the Deed of Trust foreclosure the Trustee holds the _______ until it is fully paid off.
Legal Title (Trustee Deed)
133
Foreclosure:
In a Deed of Trust foreclosure the borrower has a ______ Day Reinstatement Period.
90 Day
134
Foreclosure:
In a Deed of Trust foreclosure the borrower has a ______ Day Reinstatement Period.
90 Day
135
Foreclosure:
In a Mortgage foreclosure the borrower has a ______ Day Redemption Period.
180 Day
136
Grandfathered Water Rights:
Utilized for Mining
These rights are Non-Transferrable
These rights can be converted one time to land that is appurtenant to another area in the same sub-basin.
Type 1 Non-Irrigation Grandfathered Rights (AMA)
137
Grandfathered Water Rights:
Utilized for Cattle
These rights are Transferable
These rights can be not be converted to land that is appurtenant.
Type 2 Non-Irrigation Grandfathered Rights (AMA)
138
Active Management Areas: Where are the 5 Active Management Areas (AMAs) in Arizona located?
Phoenix
Prescott
Pinal
Santa Cruz
Tucson
139
Active Management Areas:
Water providers or developers must demonstrate that the water supply is uninterruptible for a _____ -year period, or that sufficient backup supplies exist for any anticipated shortages.
100-year period
140
Water providers or developers must demonstrate that the water supply is uninterruptible for a _____ -year period, or that sufficient backup supplies exist for any anticipated shortages.
100-year period
141
Active Management Areas:
A ________ form must be filed to drill all wells outside AMAs and any exempt wells inside AMAs.
Notice of Intention to Drill (NOI)
142
Active Management Areas:
An Application for a Drilling _______ is required for non-exempt wells inside AMAs. Payment of filing fees will also be necessary when you file.
Permit
143
Active Management Areas:
An Application for a Drilling Permit is required for non-exempt wells inside AMAs. You have ______ years to use it but, you don’t use it you lose it.
5 Years
144
Active Management Areas:
_______ carry restrictions on bringing in new irrigated acreage & all owners of irrigation groundwater withdrawal authorities must report their water use to the Arizona Department of Water Resources (ADWR) if the water was used during the calendar year. The three areas are administered by the ADWR AMA staff.
Irrigation Non-Expansion Areas (INAs)
145
The Development Services Division oversees the sale of Subdivided Lands, Unsubdivided Lands, Timeshares, Membership Campgrounds, and Cemetery Plots. Except in the case of Cemetery Plots, a developer must obtain a _________ prior to making offers for sale.
Disclosure Report (Public Report)
146
All of the following can be used in a developer's public report advertisement except a statement which says, This public report is an ______ of this project.
Endorsement
147
All of the following can be used in a developer's public report advertisement except a statement which says, This public report is an ______ of this project.
Endorsement
148
A developer can sell Lot Reservations without a Public Report up to $_______ Max?
$5,000
149
How long does a developer have to keep a receipt of having given a public report to the buyer?
5 Years
150
If the required notice or material disclosures are not delivered, the right to rescind shall expire ______ years after contract consummation.
3 Years
151
Deeds:
A _______ is an agreement between a borrower, a lender and a third-party person who's appointed as a Trustee. It's used to secure real estate transactions where money needs to be borrowed in order for property to be purchased.
Deed of Trust
152
Deeds:
A Deed is a written, legal document that shows ______ or legal interest in a property. These documents also serve as property transfer deeds, which are used to transfer property ownership from one person or entity to another.
Proof of Ownership
153
Deeds:
_______ are typically associated with unpaid mortgages. This is a type of public auction where interested buyers can bid on foreclosed properties.
Sheriff Sale’s
154
Deeds:
A _______ deed transfers real estate to a new owner. A properly completed and recorded as such cannot be undone.
Quit Claim Deed
155
Deeds:
The four tests of highest and best use are:
1.
2.
3.
4.
The first two tests are interchangeable in order and, in many circumstances, the last two are combined.
Legally Permissible
Physically Possible
Financially Feasible
Most Profitable
156
Deeds:
A ______ deed demonstrates that only the seller of the property holds title of ownership and legally has the right to transfer the property. This type of deed doesn’t offer any protection against any claims to the property from previous owners, just the current one. Thus, buyers must check everything before purchasing, as the responsibility for these issues will be on the buyer.
Bargain and Sale Deed
157
Deeds:
Deeds:
From the buyer’s perspective, the _______ is a safer option than a quitclaim deed but not as safe as a general warranty deed.
Bargain and Sale Deed
158
Deeds:
A _______ deed is considered the most common and preferred type of deed used in real estate transactions because it offers the highest level of protection for the buyer. It guarantees the buyer receives the property free of any claims or title defects, both present and past.
General Warranty Deed
159
Lending:
_____ are on the loan amount not on the sales price.
Points
160
Lending:
One discount point is equal to ______% off of the rate. This is a credit to the borrower as an incentive for the loan.
0.125%
161
Lending:
One origination point is equal to ______% off of the loan amount. This is paid to the lender as profit for originating the loan.
1%
162
Lending:
1 Point = ______ (/)
1/8th
163
Lending:
1 Point = ______%
0.125%
164
Lending:
______ Point(s) = 100%
8 Points
