32-Final Exam-Exam Prep Quiz Please sign up for the course before taking this quiz. Arizona land laws were most influenced by? legislation after Arizona statehood the bundle of legal rights. Spanish land grant law colonization by French explorers and fur trappers. Salesperson Robert pays his unlicensed assistant a portion of each commission that he earns. Is this arrangement legal? No. Only licensees may share in commissions Yes. Robert may dispose of his commissions in any way he chooses. Yes. However, Robert must pay the assistant only after each transaction closes. No. Robert may not compensate an unlicensed assistant directly. A property owner allows Betty Luanne to cross his property as a shortcut to her kindergarten school bus. One day the property owner dies. What right was Betty given, and what happens to it in the future? A personal easement in gross, which continues after the owner's death A license, which continues after the owner's death An easement by prescription, which continues after the owner's death A license, which terminates at the owner's death. Under normal circumstances, how much written notice much be provided to a tenant in Arizona before a landlord may enter a rented dwelling? 48 hours There is no requirement. 36 hours. 24 hours. If a parcel does not have a lot and block number and is too irregular to be described as a fraction of a section, the legal description will use an estimate of the sectional fraction. will create a special reference number. will include a metes and bounds description is the street address. Nominal consideration in Arizona warranty deeds is? Found in bargain and sales deeds, not warranty deeds. $10.00 The contract purchase price. 25% of the contract price. There are two adjoining properties. An easement allows property A to use the access road that belongs to property B. In this situation, property A is said to be which of the following in relation to property B? Senior tenant Dominant tenement. Subservient estate Servient estate A Loan Estimate must be given to a borrower within three business days prior to closing. of loan application. after the buyer’s request. after closing. The area running north and south between meridians strip. tier. range township. An agent owes customers several duties. These may be best described as fairness, care, and honesty honesty, diligence, and skill. obedience, confidentiality, and accounting. diligence, care, and loyalty. Purchase contracts for unsubdivided lands may be voided? For up to six months. Within seven days of signing, up to six months if all parties haven’t seen the property, and up to three years if promised access is not delivered. For up to three years Within seven days of signing. In what sense is the use of standardized forms a risk management procedure? It eliminates the risk of being unable to draft a contract correctly. It eliminates the risk of wasting valuable time in creating custom forms. It reduces the risk of losing a client by having to make a referral to an attorney. It reduces the risk of committing an unauthorized practice of law Barbara plans to open a business helping people trade and exchange real property in Arizona. Since clients will not be buying properties, she will accept fees rather than commissions as payment, Barbara needs? only to be bonded. an active Arizona real estate license. a certificate of convenience. no state license of any kind. A valid written lease must be signed by? Both lessor and lessee A property management company broker. The lessor and the rental agent. The owner, the rental agent, and the lessee. A borrower earns $3,000/month and makes credit card and car note payments of $500. A conventional lender requires a 27% income ratio. What monthly amount for housing expenses (principal, interest, taxes, insurance) will the lender allow this person to have in order to qualify for a conventional mortgage loan? $810 $972 $1,040 $675 One weakness of the cost approach for appraising market value is that market value is not always the same as what the property cost builders may not pay market value for materials or labor. new properties have inestimable costs and rates of depreciation. comparables used may not have similar quality of construction. The loan-to-value ratio is an important underwriting criterion, for the primary reason that? The lender wants to ensure the loan is fully collateralize A fair amount of borrower equity demonstrates good faith. A borrower can only afford to borrow a portion of the entire purchase price. Borrowers with no equity will default and abandon the property. Who must a broker appoint? a transaction manager. a temporary designated broker if unable to control the brokerage for at least 24 hours. assistant broker if the brokerage has more than 12 salespeople a membership camping and cemetery sales specialist if a full-service brokerage. A parcel is described as the SW 1/4 of the N 1/2 of the E 1/2 of Section 14. What is its acreage? 20 acres 160 acres 80 acres 40 acres Which is considered functional obsolescence? lack of parking worn out carpet a five-bedroom house with one bathroom a building located next to a factory Current year property tax bills are sent to Arizona property owners prior to? March 1 October 1. January 1. March 1 of the following year. Because of the agency concept of imputed notice, a client may be held responsible for something the client’s agent knows, even if the agent hasn’t communicated it. an agent may be held responsible for failing to inform his or her client of a material fact. any disclosure made by an agent is regarded as having been made by the agent’s client. any notice given to a client is presumed to have been given to the client’s agent. . An individual who wishes to donate land for a public park must? file a quitclaim deed before initiating the transfer. complete the necessary dedication forms for government approval. obtain a certificate from the county recorder showing that all taxes have been paid. have two witnesses and a notary declare the donor of sound mind. If two salespeople in a brokerage are representing the seller and buyer, respectively, in a transaction, there are two single agencies for the salespeople. the situation is illegal in Arizona. there is a dual agency for the brokerage. one of the salespeople has to exit the transaction. One of the primary purposes for the secondary mortgage market is to issue second mortgages and sell them in the home equity market. cycle funds back to primary lenders so they can make more loans pay off defaulted loans made by primary mortgage lenders. lend funds to banks so they can make more loans. Which of the following best characterizes a conventional sale contract? Voluntary, bilateral, and executory. Involuntary, bilateral, and contingent Involuntary, unilateral, and executory Voluntary, unilateral, and executory Which of the following is included in the bundle of rights inherent in ownership? To tax To vote To transfer To inherit Property managers are usually considered to be? dual agents serving both the landlord and the tenants. special agents empowered to perform a specific task for the landlord. employees who have no agency relationship with their employer. general agents empowered to perform a wide range of duties for the landlord. Which entity in a trust deed foreclosure instructs the trustee to sell a property in default? A court The trustor The beneficiary. The mortgagor A distinct feature of a joint tenancy is that joint tenants? own separate physical portions of the land. cannot will their interest to a party outside the tenancy. cannot lease the property. may elect to have any percent of ownership in the property. Which of the following is exempted from ARLTA? Apartment complexes with fewer than 12 units or more than 360. Rental units and complexes built before 1990. Duplexes, triplexes, and fourplexes. Mobile home rentals Arizona traces the fundamentals of its real estate law back to? The original 13 American colonies. The European Middle Ages. French land laws. English common law As part of the assessment process, many taxing entities utilize equalization boards in order to? ensure that property owners have nearly equal tax bills. adjust millage rates within the district to ensure fairness. modify the tax rate from one neighborhood to the next. smooth out wide discrepancies of assessed values within the district How many brokers can a licensee work for at the same time in Arizona? two, with Department approval one at a time, in general real estate two, if he declares he is inactive two if one is a property manager The residency requirement for obtaining an Arizona real estate license is? one year as a full- or part-time Arizona resident. not applicable; there is no residency requirement for licensure in Arizona three out of the last five years as an Arizona resident. two year’s minimum as an Arizona resident. Which statement regarding an option to purchase is true. the buyer does not have to buy the property A real estate purchase option is a contract on a specific piece of real estate that allows the buyer the exclusive right to purchase the property. the seller is obligated to sell the property if the property rises in value the purchase price will also rise Regulations created by state or federal agencies to support and enforce statutory law are referred to as administrative law may not be enforceable because the state congress does not vote on them. cannot be applied to unlicensed parties. are collectively called common law. Ad valorem taxes are based on? the replacement value of property. the millage value of property. the broker's estimate of value. the assessed value of property. All of the following would be considered appurtenant in a real estate transaction EXCEPT property improvements. mineral rights. the bundle of rights. annual crops. Which of the following communication records must (as opposed to should) be kept? Copies of required communications to principals Notes on every conversation. Business cards of licensees one meets at open houses. Notes from company training sessions. A primary objective of residential zoning is to eliminate nonconforming uses, variances, and special exceptions. regulate rates of appreciation and depreciation of residences. promote the value and planned land use of a neighborhood. disperse intensity of usage. One difference between a cooperative estate and a condominium estate is that the condominium owner owns the common elements and the airspace whereas the coop owner only owns the apartment. the condominium owner must pay expenses as well as rent. the coop owner owns stock and a freehold real estate interest whereas the condominium owner simply owns real estate. a default by a coop owner may cause a foreclosure on the entire property instead of just a single unit, as with a condominium One of the aims of the Uniform Residential Landlord and Tenant Act is to force states to enact tenants' rights laws. establish uniform rental rates for each type of property. create a standard residential lease for use nationwide. discourage the use of unfair and overly complex leases The purpose of a covenant clause in a deed of conveyance is to warrant that the grantor has never encumbered title. describe the consideration that the grantee promises to give in return for title. state the grantor's assurance or warrant to the grantee that a certain condition or fact concerning the property is true state the grantee's promise to use the property in a prescribed manner. What kind of law is the Arizona Code of Real Estate? Case Common Administrative Statutory The environmental audit consisting of a visual site inspection, review of public documents, and interviews with current and past owners is known as a? WQARF environmental audit. Phase III environmental audit. Phase I environmental audit. Phase II environmental audit. The principal role of the Veteran’s Administration in the mortgage lending market is to? guarantee loans made by approved lenders insure loans made by approved lenders. purchase loans made by approved lenders. originate loans made by approved lenders. Several buyers are competing for the last available home in a desirable new subdivision. One buyer calls the owner-developer directly on the phone and offers $10,000 over and above the listed price. The developer accepts the offer. At this point, the parties have completed a verbal, executory contract the parties have a valid, enforceable sale contract on the home. the developer could not entertain other offers on the property. the parties may not cancel their contract. The primary distinction between the legal concepts of land and real estate is that land has no defined boundaries. real estate includes air above the surface and minerals below the surface. real estate is indestructible. land does not include man-made structures. Implied agency arises when a principal accepts an oral listing. a principal agrees to all terms of a written listing agreement, whether express or implied. a party creates an agency relationship outside of an express agreement an agent accepts an oral listing. One of the most important actions an owner’s agent is authorized to perform under an exclusive listing agreement is executing the sale or lease agreement. authorizing price adjustments in a timely manner. assisting the customer in evaluating the relative merits of other properties. showing the property In addition to income, credit, and employment data, a mortgage lender requires additional documentation, usually including? a default recourse waiver. an appraisal report a subordination agreement. a criminal record report. A condominium complex prohibits ownership of any unit by persons under 55 years of age. The association claims it has made the prohibition properly. Which of the following is true? They are guilty of age discrimination. The prohibition may be legal They are violating the Civil Rights Act of 1866. They are violating the Fair Housing Amendments Act of 1988. How much security deposit is a landlord entitled to collect from a new tenant? There is no limit specified in the ARLTA. A deposit equal to two month’s rent. A deposit equal to one month’s rent. A deposit equal to one and one-half times one month’s rent A prospective home buyer submits a signed offer to buy a house with the condition that the seller pays financing points at closing. The seller disagrees, crosses out the points clause, then signs and returns the document to the buyer. At this point, assuming all other contract validity items are in order, the status of the offer is a counteroffer. an invalid offer. an accepted offer, therefore, a valid contract. an invalid contract. A property that conformed with zoning ordinances when it was developed but does not conform to new ordinances is said to be a special exception. a legal nonconforming use an anomaly. a variance. The right to use real property is limited by taxation and subordination. the right of others to use and enjoy their property. the police. Title 12 of the U.S. Civil Code. The highest form of ownership interest one can acquire in real estate is the defeasible fee simple estate. dower and curtesy. conventional life estate. absolute fee simple estate. Which of the following is a valid distinction between a corporation and a proprietorship? Proprietorships are liable for their actions, while corporations are not. Corporations are not subject to taxation, while proprietorships are. Proprietorships may broker real estate, while corporations may not. A corporation has perpetual existence; a proprietorship terminates upon the owner's death A buyer agrees to all terms of a seller’s offer except price. The buyer lowers the price by $1,000, signs the form, and mails it back to the seller. At this point, the seller’s offer becomes a counteroffer has been accepted becomes an executory contract is void. The purpose of a recovery fund is to? protect damaged licensees from clients who fail to pay earned commissions. replenish losses in escrow accounts of brokerages found to have mismanaged impounded monies. ensure that judgments against licensees will be collectible assist in the liquidity of a troubled brokerage through low-interest loans. On a settlement statement, rent paid in advance would be a credit to the buyer, debit to the seller. credit to the buyer only. credit to the seller only. debit to the buyer only. The primary distinction between the legal concepts of real estate and real property is that real property is physical, not abstract. real property includes ownership of a bundle of rights. real estate can be owned. real property includes improvements. One way investors measure the yield of an investment is by? multiplying cash flow times the price paid for the property. dividing net operating income by cash flow. dividing cash flow by the investor's equity multiplying the investor's required yield times after-tax cash flow. A distraint clause allows landlords to lock out tenants for default on a lease? In public housing managed by the federal government. In commercial leases only In a fraternity or sorority house. In any residential lease after 10 days of missed rent payments. A central goal of public land use planning is to subordinate private interests to the public good. balance individual property rights with the community's welfare develop an accord between property owners and tenants. impede development by for-profit developers and construction contractors. Which of the following would be considered a grandfathered water right? exempt domestic well riparian district Type II water right flood area A canal dredging project is to cost $100,000. There are 40 properties along the canal, and 40 others across the street from the canal. The total canal footage to be dredged is 2,500 feet. How much will the assessment be for a 150-foot property on the canal? $2,500 $3,000 $1,250 $6,000 An important commitment employing brokers make to salespeople is a pledge of continued employment over a predetermined period. a guarantee of market-based, competitive commission structures. providing them with all listings in the agency producing a sufficient number of customers through advertising to make a reasonable living. A lessee puts in a bookcase for commercial use; at the end of the lease the bookcase is removed. The bookcase would be considered a trade fixture. real property. appurtenant. chattel real. A certain property has the following liens recorded against it: a mortgage lien dating from three years ago; a mechanic’s lien dating from two years ago; a real estate tax lien for the current year; and a second mortgage lien dating from the current year. In case of a foreclosure, which of these liens will be paid first? First mortgage lien Second mortgage lien Real estate tax lien. Mechanic's lien A lender is charging 2.75 points on a $240,000 loan. How much must the borrower pay for points? $6,600. $550 $660. $5,500. The Equal Credit Opportunity Act (ECOA) requires lenders to? extend equal credit to all prospective borrowers. specialize lending activity by geographical area for improved customer service. discount the income of a person involved in child-rearing or child-bearing. consider the income of a spouse in evaluating a family's creditworthiness An important legal feature of a contract is it is not voidable it represents a "meeting of the minds." it must use precise wording in a document it can be created only by an attorney Which of the following describes a situation in which an easement might be created against the wishes of the property owner? The owner of an adjoining property grants an easement to a third party that includes an easement on the first property. The owner of an adjoining property asks the property owner for an easement, is refused, and then uses the property anyway without the knowledge of the owner. The property has been continuously used as an easement with the knowledge but without the permission of the owner for a period of time The owner of an adjoining property decides he needs to widen his driveway by sharing his neighbor's driveway and sues in court to create an easement by necessity. A salesperson runs an ad in the local paper promoting a broker’s listing. Which of the following is TRUE? The brokerage name must appear prominently in the ad. The designated broker’s name must be larger in size that the salesperson’s name. The salesperson’s name must appear. The broker’s telephone number must appear in the ad. The area running east and west between baselines is a tier parameter. parallel. range. A tax certificate exempts its holder from paying taxes on the particular property referenced by the certificate. certifies to tax collectors that a property owner has paid all ad valorem taxes on the property for the calendar year. entitles its holder to apply for a tax deed after a certain period waives a property owner's rights of redemption in a foreclosure. A person has occupied a property for seven years, and no one has ever attempted to evict her or co-occupy the parcel. In this case, the person might base a claim of legal ownership on? her prescriptive easement. tenancy in severally. title records. constructive notice of possession. The roof of a property cost $10,000. The economic life of the roof is 20 years. Assuming the straight-line method of depreciation, what is the depreciated value of the roof after 3 years? $1,500 $10,000 $7,000 $8,500. A hermit secretly lives in a cave on a 200-acre property. After twenty years, the person makes a claim of ownership to the property. This claim will likely be to give constructive notice of one's rights and interests in the property assemble all relevant documents in a single place. avoid adverse possession. prove ownership of the property. Which of the following professionals involved in the real estate business are most concerned about managing real estate for clients? Brokers and agents Corporate real estate managers Property managers Appraisers The 1988 Amendments to the Federal Fair Housing Act prohibits discrimination based on familial status and handicapped. handicapped and religion. familial status and age. age and sex. An equitable right of redemption? gives a holder of a tax deed the right to acquire the property named in the tax certificate. gives a delinquent taxpayer a grace period after the tax sale to pay property taxes. allows a holder of a tax certificate to redeem it for a tax deed. gives a delinquent taxpayer a grace period prior to the tax sale to pay property taxes An affirmative easement gives the benefited party the right to receive a portion of any income generated by another's real property. the right to prevent the owner of a real property from using it in a defined way. the right to a defined use of a portion of another's real property the right to possess a defined portion of another's real property. Arizona state laws govern reinstatement periods for forfeiture if the borrower defaults. In Arizona, these reinstatement periods are based on the amount of equity the buyer has in the property. Which one is correct regarding land? Equity of at least 250% but less than 45% has 120 days Equity of less than 10% has 30 days Equity of at least 20% but less than 30% has 45 days Equity of at least 50% has 270 days (nine months). The purpose of a formal legal description of a property is to? locate and identify the property reliably. eliminate the possibility of surveyor error. eliminate encroachments. qualify for title recordation. Which of the following is an example of intangible property? Stock Personal property Real estate Artwork An important difference between a judicial foreclosure and a non-judicial foreclosure is there is no right to redeem the property in a non-judicial foreclosure a non-judicial foreclosure ensures that all liens are paid in order of priority. a judicial foreclosure forces a sale of the property. the lienor receives title directly in a non-judicial foreclosure. A landlord suddenly terminates a tenant’s lease in violation of the lease terms. The tenant takes action to compel the landlord to comply with the violated terms. This is an example of a suit for forfeiture. damages. specific performance rescission. Pricing property correctly is pivotal to marketing listings, because overpricing a property does not serve the best interests of customers. underpriced properties do not require the broker's services. underpricing a property does not serve the best interests of a client overpricing a property will lengthen the time required to receive compensation for services. The original owners in a property tax foreclosure have what period of time to redeem the property? One year. Three years. Six months. 90 days. The principal mechanism for implementing a master plan is zoning public elections. referendum. property management. When conveying property in Arizona, a deed must be signed by the grantor. mortgagor grantee. trustor. What is the tax assessment rate applied to owner-occupied residential property in Arizona? 15% 10% 18% 12% A valid contract must have street address. offer and acceptance. escrow instructions. earnest money. A sale contract stipulates that a buyer is to pay the seller’s title insurance expenses. This practice is not customary in the area. In this case The buyer must pay the expense The buyer and seller must amend the contract before closing. The buyer may pay or not pay the expense, at his or her option. The contract is voidable, since the seller must pay the expense. Which of the following is exempt from needing an Arizona real estate license? Cemetery sales Membership camping sales An attorney in the performance of an attorney’s duties as an attorney. A real estate broker According to the ARLTA, the primary responsibility of a tenant is to Pay agreed-upon rent on time Not smoke in the rental dwelling. Make minor repairs. Remove trash. Real estate commissions are Paid directly to the salesperson who earned them. Payable to both licensed and unlicensed people. Paid when a licensee successfully completes a transaction Earned when a purchase contract is signed by both buyer and seller. A lease contract is best described as a conveyance of a possessory interest a title conveyance in exchange for rent. an instrument of conveyance of limited title. a temporary transfer of legal title. A map of a subdivision is called a? rendering. plat tract. design. How can a buyer best be assured of getting his earnest money back if his loan is not approved? Request the earnest money from the lender. Place a contingency clause in the contract. Request the earnest money from the seller. Place a stop payment on the check. Insurance is a method of? risk elimination. risk acceptance. risk outsourcing risk mitigation. A lender refuses to loan or limits loans in a certain minority neighborhood. This action is called redlining. steering. territory allocation. blockbusting. The abbreviation POB stands for point of beginning plat of boundary. point of bounds. perimeters of boundaries. To be valid, a listing agreement may be oral or written must be an express agreement. must be in writing. must be enforceable. An example of a local datum is? The Arizona Divide near Bellemont The Grand Canyon. Walnut Canyon. Government Mountain. A plat map would include everything EXCEPT lot size. buildings. lot and block. easements A grocer temporarily installs special fruit and vegetable coolers in a leased grocery store in order to prevent spoilage. The coolers would be considered which of the following? Trade fixtures that are personal property Permanent fixtures that are personal property Trade fixtures that are real property Permanent fixtures that are real property The major players in the secondary mortgage market are? Fannie Mae, Freddie Mac, and the Federal Reserve. Fannie Mae, Freddie Mac, and Ginnie Mae Fannie Mae, GMAC, and MGIC. Freddie Mac, FHA, and VA. A property is purchased for $200,000. Improvements account for 75% of the value. Given a 39-year depreciation term, what is the annual depreciation expense? $6,410 $3,846 $5,128 $8,294 A syndication is an organization engaged in illegal property acquisition and sale a network of active brokers who purchase and sell properties a group of inactive investors who join with a number of active partners to purchase, manage, and sell properties for a profit. a group of general partners who invest in and manage real estate for a profit As a business asset, “blue sky” refers to Relative lack of debt. Customer loyalty and goodwill High quality management. Projected earnings. Which of the following is an illustration of the legal concept of elective share? A spouse who loses her home because of her husband's gambling debt sues in court for exemption from the debt. A widower whose spouse died without a will sues to change the provisions of the will. A widow who was excluded from a will makes a claim to a portion of the couple's principal residence. A surviving spouse places a lien on a debtor's property. A property owner is precluded by deed restriction from developing a thirty foot boat dock. The limitation prompts the owner to sell to another party. The new owner can build the dock with special permission from the zoning board. may build, since the restriction is extinguished by the sale. takes title subject to the same restriction is free to build the dock since the next door neighbor built a similar dock two weeks later. Vacation Rentals by Owner (VRBOs)? Require an active Arizona real estate license for landlords. Must be registered with the Arizona Department of Revenue as of 1-1-2019 Are illegal in Arizona due to zoning laws. Have restrictions in order to retain principal residence status. What guarantees the right of private ownership of real estate in the United States? The Napoleonic Code Common law Local statutes The Constitution Boot is best defined as personal property given to make up the difference in equity. the difference between long- and short-term capital. mortgage relief. like-for-like property. If a person dies with no legal heirs or relations and has left no valid will, what happens to real property owned by that person? It is taken by the state according to the process called escheat It is reconveyed to the previous owner in the chain of title. It is conveyed to the highest bidder at a public auction. It is taken by the title insurance company according to the process called involuntary alienation. The best way to minimize the risk of violating fair housing laws is to? obtain education in the content and intent of the laws deal only with consumers who do not belong to a protected class. stay away from transactions involving public housing. make sure there is always a witness present at all meetings with consumers. In Arizona, a civil lawsuit for $2,500 would be heard in Municipal Court. Superior Court. Justice Court. Court of Small Claims. In Arizona, how old must a person be to obtain a real estate broker’s license? 21 18. 17 24 What kind of agency is commonly created by a management agreement? Vicarious Specific General. Universal Material facts are defined as those which? are known and readily apparent only. Affect the value of desirability of a property do not require disclosure. are listed in the statute of frauds. A lease? May be written or unwritten Negates a landlord’s recessionary right. Must be in writing to be enforceable Does not transfer possession of the leased premises. Six investors purchase a shopping center. One investor manages the tenants and another handles the marketing and leasing. Two investors manage accounting and finance, and the remaining two run the management office. This is a possible example of? a real estate investment trust. a limited partnership. a general partnership. an investment conduit. Keeping thorough records of every transaction is not only a risk management technique, it is? A technique for discovering market trends. Necessary for obtaining market share. Good for company morale. A legal requirement Broker licensee John is attempting to qualify to serve as real estate commissioner. In order to qualify, his credentials must include? a college degree in either law or accounting. an active financial interest in a brokerage at time of appointment. three years of administrative experience. a minimum of 10 years as a licensed Arizona real estate broker. A lender of a conventional loan would require private mortgage insurance (PMI) when the loan-to-value is less than 75%. less than 80%. more than 80%. more than 75%. Southwestern states like Arizona base their community property law on? Spanish property law Common law. Case law. Federal statutes Authorities conduct comprehensive land use planning in order to? limit growth. balance public interests with individual property rights. prevent the public from exercising police powers. ensure positive market conditions for development projects. The law requires a licensee representing a seller to present all offers? until told to stop by the seller. until escrow funds have been deposited. until the seller accepts an offer. until the transaction closes. What is the significance of base employment in a real estate market? It drives total employment and population growth, which lead to demand for real estate. It indicates the number of people who want to move into the market. It gives the basic number of people who will need housing. Following the client’s recommendation, an agent conceals the availability of a property from an employed but pregnant and unmarried minority woman. This agent could be liable for? steering. nothing: an agent may show or not show any property at his or her discretion. violating fiduciary duty. discriminatory misrepresentation How many principle baselines and meridians are currently in Arizona? NONE 1 4 2. Real estate trade associations promote a code of ethics primarily to establish? minimum standards of practice as imposed by law. high standards of practice for all facets of the business fair housing law. grounds for license revocation. Which of the following is not a category of property generally found in a multiple listing service? Residential leases Multiple Dwellings Easements. Business opportunities The Arizona real estate commissioner is appointed by the Arizona Association of Realtors®. the state house of representatives. the governor the state senate. An important characteristic of a promissory note is that? it must be secured by collateral. it is not a negotiable instrument. it must be recorded to be enforceable. It is assignable. Sam and Sally feel their real estate agent did not understand real estate and contract law because of the sloppy way he handled forms. They plan to complain to his designated broker. Their complaint will be most justified if it is based on? dishonest behavior. incompetent performance. bad character. unlicensed legal practice. Which of the following may not be paid in Arizona? Flat fees for real estate services. Referral fees. Finder’s fees paid to the public Hourly rates for real estate services. What type of investment entity requires at least 100 investors? general partnership limited partnership REIT S corporation Why is it important for a property manager to maintain good relations with tenants? If tenants like the manager they will like the owner. Unhappy tenants lead to expensive tenant turnover. The manager owes the landlord the fiduciary duty of pleasing the tenants. Happy tenants are easier to work with. The ADRE protects the public through Licensure and regulation of the Arizona real estate profession Lawsuits and judgments. Federal regulations. Criminal enforcement of state laws. The document which transfers the responsibility for paying property taxes from grantor to grantee is the? Affidavit of value Beneficiary deed. Affidavit of affixture. Transfer tax stamp. To be valid, a local zoning ordinance must reasonably promote community health, safety and welfare comply with federal zoning laws. be published periodically in the local newspaper. apply only to unique properties. The process of enforcing a lien by forcing sale of the lienee’s property is called attachment. execution. subordination. foreclosure The three overriding considerations of a lender’s mortgage loan decision are? The ability to re-pay, the value of the collateral, and the profitability of the loan the location of the mortgaged property, the borrower's cash, and the amount of the borrower's equity. points, interest rate, and loan term. the amount of the loan, the borrower's income, and the down payment. If a person having several heirs dies intestate, the property will pass to heirs by the laws of descent and distribution escheat to the state. pass to the surviving heirs according to the provisions of the will. pass to the surviving spouse through elective share.
