Arizona Sale Person License Exam Prep & Review

Ownership Forms of Ownership Tenancy in severalty Sole ownership is when one natural person owns the property Tenancy in common – a shared tenancy in which each holder has a…

Estate Types Gross Lease Landlord pays all expenses; tenant pays higher rent than net.   Net lease Tenant pays some or all expenses (taxes, insurance, maintenance, etc.). Rent is less…

Purpose of a legal description is to: To accurately locate and identify the boundaries of a parcel of real property to a degree acceptable by courts of law in the…

An appraisal is the act or process of developing an opinion of value. An appraisal is merely an opinion of value, not a guarantee or determination of value. The appraisal…

The TRID RULE In 2013, the Consumer Financial Protection Bureau issued a final rule to integrate disclosures and regulations required by the Real Estate Settlement Procedures Act (RESPA) and the…

Real Property Taxation  Property exemptions Immune property: government property. Exempt property: religious organization and nonprofit facilities. Partial exemption: homestead exemption. The purpose of homestead is to protect or exempt a…

Listings   Parties / Duties / Contract   Parties Listing broker– fiduciary of buyer client or seller client. Subagent– fiduciary of listing broker’s client Customer– non-fiduciary principal in transaction. Fiduciary…

Closing Process  Settlement process Identify selling terms & costs – this is off of the contract and addenda attached. Determine non-prorated debits and credits- also info off the contact and…

Property Management Functions A property manager is a person who is hired by a real property owner to do the following: administer, market, and maintain the property or properties, especially…

A Property Manager Must Disburse Funds as Directed by the Parties FACTS: In light of significant credit problems, the tenants offered to pay a full year’s rent in advance if…

Basic Math Fractions Adding and subtracting same denominator: Formula: a / c + b / c = (a + b) ÷  c Example: 1/2 + 1/2 = (1 + 1)…

Condominium Assessment Calculation Formula:          Monthly assessment = (Total annual building budget x Condo unit % of value)÷12 Example: Assume a condominium complex with a $300,000 budget…

Appreciation Calculations Simple appreciation Formulas:            Total appreciation = Current value – Original price                                               Total appreciation rate =  Total appreciation  ÷  Original price                                                Average annual appreciation rate =  Total…

Part I: Real Estate Law in Arizona   Sources of Real Estate Law Article XXVI of the Arizona Constitution Adopted in 1962 Authorizes Arizona licensees to engage in the limited…

Arizona Licensing Requirements Who must be licensed The purpose of licensing and regulation is to protect the public. Any person who aids another in selling, purchasing, exchanging, renting, leasing, or…

Conveyances by Deed Alienation defined Alienation is the act of transferring title from one person to another Voluntary alienation is transferring with the consent of the owner such as sale,…

Water Laws Definitions Potable water: water which can be safely and agreeably consumed by humans. Non potable is not safe to drink. Ever see purple sprinkler boxes at the park,…

Arizona Land Management Bureau of Land Management AZ ownership splits: 42.2% federal; 27.6% Native American; 17.5% private; 12.7% state trust land AZ State Land Department manages AZ state trust lands Held…

Arizona Agency Disclosure  Disclosure purpose and requirements Principals in an Arizona real estate transaction have the right to know how they are represented by a brokerage. In the sale and…

Advertising Definition Per ADRE, virtually everything a licensee does to circulate his or her name – other than “keep in touch” or “thank you” items such as birthday cards –…

Financing Documents Trust deeds Arizona is primarily a deed of trust, or trust deed state, although mortgages are still offered and exist in Arizona A deed of trust is a…

Definitions Terminology Age-restricted community – limits majority of residents to a minimum age group, usually 55 years old; permitted by fair housing laws Anchor tenant – the largest tenant in…

Business Brokerage Transactions Commercial opportunity transactions A commercial opportunity transaction is where business and all real property associated with it are jointly conveyed Building space owned by the owner is…

Abatement: A reduction or decrease.  The removal of a nuisance. Absorption- The consumption of available vacant property in a building or market. Abstract of Title- A written, chronological record of…

Datum- A standard elevation reference point used by surveyors to measure elevations of property in an area. Debit- An accounting entry on a closing statement indicating an amount a party…

Implied agency- An agency relationship that arises by implication from the actions and representations of either agent or principal. Implied contract- An unstated or unintentional agreement that may be deemed…

Obsolescence- A loss of property value because of functional or economic (external) factors. See functional obsolescence and economic obsolescence. Offer- A proposal to enter into a binding contract under certain…

Sale contract- A contract for the purchase and sale of real property containing all terms and provisions of the sale and describing the responsibilities of the parties. Sale-leaseback- A sale…