32-Final Exam-Exam Prep Quiz Please sign up for the course before taking this quiz. The purpose of a homestead tax exemption is? To offer tax abatement on a principal residence. to exempt owners from ad valorem taxation. to encourage owners to finance their principle residences. to exempt owners of principal residences who rent their properties. A landowner leases out the land to a tenant farmer then terminates the lease. The landlord may: Keep the crops as the landlords personal emblements Allow others to harvest the crop and pay the landlord money Give the tenant the right to re-enter the land to harvest his crops. Sell the land to a developer prior to harvest without previous tenant’s right to harvest What is co-brokerage? Outside brokers acting as subagents assist a listing agent in procuring a customer. An owner agent and a buyer agent combine efforts to complete a sale An owner or buyer lists with several brokers to complete a transaction Agents from a single agency cooperate to generate listings for the broker A leased property is conveyed to a new owner. What happens to the lease? It remains in effect. It moves with the owner to a new property, if purchased within one year. It is cancelled. It automatically renews at closing for its original term. If a lease does not state a specific ending date, when does it terminate? Immediately, since it is an invalid lease Whenever the property is sold After one year When either party gives proper notice. At the closing of a mortgage loan? the lender issues a firm loan commitment. the borrower pays off the note and receives clear title. the parties complete all loan origination documents and the loan is funded the borrower's loan application is complete and the file closed. An appraisal in which the appraiser views only the exterior of a home without an interior inspection is called a(n) Drive-by appraisal Desk-top appraisal. URAR appraisal. AMC appraisal. What is the purpose of an affidavit of value? comply with IRS requirements assist the State Treasurer in sales tax revenue assist in determining capital gains tax assist the County Assessor in determining property values With respect to the financing of real estate loans, Arizona is primarily what type of state? Deed of trust and lien theory Deed of trust and title theory. Mortgage and lien theory Mortgage and title theory An interest in real estate is best defined as ownership of one or more of the bundle of rights to real property. the full bundle of rights to real property. the right to possession and use of real property. an estate. An investment property seller pays $14,000 in closing costs. These costs? may be deducted from the sale price for gains tax purposes. may be deducted from personal income. may be deducted from the property's income. may be deducted from the adjusted basis for gains tax purposes. Under the ARLTA, a tenant no longer intending to live or perform under the terms of a lease? Is exercising constructive eviction. Is considered to be abandoning the premises Is exercising self-help. May be evicted after 30 days’ notice from the landlord. Which of the following is an illustration of the legal concept of elective share? A surviving spouse places a lien on a debtor's property. A spouse who loses her home because of her husband's gambling debt sues in court for exemption from the debt. A widow who was excluded from a will makes a claim to a portion of the couple's principal residence. A widower whose spouse died without a will sues to change the provisions of the will. Boot is best defined as mortgage relief. the difference between long- and short-term capital. like-for-like property. personal property given to make up the difference in equity. Who must a broker appoint? assistant broker if the brokerage has more than 12 salespeople a membership camping and cemetery sales specialist if a full-service brokerage. a temporary designated broker if unable to control the brokerage for at least 24 hours. a transaction manager. What is the purpose of a deed in a commercial business sale? To transfer ownership of the business’s real and personal property. To transfer ownership of the business’s personal property. Not used in this type of transaction. To transfer title to the business’s real estate A person claims ownership of a parcel of real estate to a prospective buyer, stating that she has lived on the property for five years and nobody has ever bothered her. The claimant also shows the buyer a copy of the deed. The legal basis of this claim is referred to as hostile notice. constructive notice. actual notice prescriptive notice. How does a constructive eviction occur? A tenant declares a landlord in default and vacates the leased premises A landlord declares a tenant in default and takes possession of the leased premises. A landlord obtains a court order to force the tenant to vacate the leased premises. A court officer forcibly removes the tenant from the premises. Which of the following is a distinctive feature of metes and bounds descriptions? To eliminate all possible boundary disputes. To eliminate cumbersome metes and bounds descriptions. To comply with federal laws. To create a consistent, unchanging standard for locating the property The primary type of listing agreement for residential properties in Arizona is the Exclusive-right-to sell agreement Net listing. Exclusive agency agreement. Open listing. The principal role of the Veteran’s Administration in the mortgage lending market is to? originate loans made by approved lenders. purchase loans made by approved lenders. guarantee loans made by approved lenders insure loans made by approved lenders. What is the maximum security deposit allowed under the Arizona Landlord Tenant Act? 1 and 1/2 month’s rent plus last month’s rent 1 and 1/2 month’s rent one month’s rent first and last month’s rent The level of government which is most active in regulating real estate licensees is the state government county government municipal government where the person resides federal government Arizona tax assessments are based on? 5% of full cash value. Full cash value. Full tax value or market value, whichever is greater. Limited property value A homeowner encourages an agent to aggressively persuade a buyer to purchase his house by overinflating historical appreciation rates. The agent and the seller agree that 25% annual appreciation would work, even though this figure is four times actual rates. The pitch succeeds, and the seller accepts the buyer’s resulting offer. This contract is valid void voidable. enforceable The relationship between a broker and their salesperson is what type of agency? fiduciary special ostensible general An affirmative easement gives the benefited party the right to prevent the owner of a real property from using it in a defined way. the right to possess a defined portion of another's real property. the right to a defined use of a portion of another's real property the right to receive a portion of any income generated by another's real property. Connie holds an active ADRE real estate license and is a property manager for a 250-unit complex in Mesa. She lives in one of the rental units free as a perk. What are her rights and responsibilities under the ARLTA? She only has the ARLTA tenant rights and responsibilities. She is exempted from the ARLTA rights and responsibilities. She has both ARLTA landlord and ARLTA tenant rights and responsibilities. She has the full ARLTA rights and responsibilities. An owner suddenly pulls a property off the market after hearing from the agent on the phone that the agent had received a full-price offer from a minority party. The agent then informs the offeror that the home has been removed from the market and is unavailable. Which party or parties, if any, have violated fair housing laws? The owner only Neither agent nor owner The agent and the owner. The agent only During the term of a listing, the listing broker or salesperson? Must present all offers until otherwise instructed by the principal May choose only the most advantageous offers to present to a principal. May choose to stop presenting new offers if a full-price offer has already been submitted. May present only offers within a set range of the listing’s full price. The role of local tax districts is to? levy income, sales, and property taxes to meet their budget requirements. place tax liens on its facilities. Impose property taxes for specific municipal services manage their budgeted portion of real estate tax revenues levied and distributed by the state. Real estate advertising is a regulated activity. One important restriction in placing ads is a broker must have all advertising approved by the proper state regulatory agency. a broker may only place blind ads in approved publications. the advertising must not be misleading sales agents may only advertise in their own name. 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 general partners who invest in and manage real estate for a profit a group of inactive investors who join with a number of active partners to purchase, manage, and sell properties for a profit. A valid contract must have offer and acceptance. escrow instructions. street address. earnest money. A holdover tenant would have a(n) freehold estate. estate at will. remainder estate. estate at sufferance. If an Arizona tax payer is paying taxes in two installments, the first one would be due? October 1 January 1 of the year following the tax year. November 1. June 1. A distinguishing feature of a deed condition is that it restricts who may own the property. it ceases to apply if a violation is allowed to continue for a certain period of time. it can be filed at any time after title has been transferred. it gives the grantor the right to re-possess the property if the grantee violates the condition The ADRE protects the public through Lawsuits and judgments. Federal regulations. Licensure and regulation of the Arizona real estate profession Criminal enforcement of state laws. To be valid, a local zoning ordinance must comply with federal zoning laws. apply only to unique properties. reasonably promote community health, safety and welfare be published periodically in the local newspaper. The term “commercial property” generally refers to retail properties non-owner-occupied properties. retail, office and industrial properties. multi-tenant properties. Recovery fund payments are? based on pain and suffering. unlimited. Limited to $30,00 per claim and $90,000 for any number of claims limited to no more than 50% of money recovered in a lawsuit. 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 seller. Place a stop payment on the check. Request the earnest money from the lender. Place a contingency clause in the contract. Buyers and sellers rely on escrow accounts in order to? earn equal interest on their funds. prevent the broker from receiving a commission until after closing. allow a third party fiduciary to handle the funds. have access to the funds without interference from the broker. Arizona brokers must provide: free initial business cards. reimbursement for licensee advertising costs. reasonable supervision a desk in the brokerage at no charge. The City of Phoenix is located in what direction from the G&SRB&M? northeast southeast northwest southwest According to law, states? may not levy real estate taxes. may delegate taxing authority to county governments may not impose tax liens. may prevent federal taxation of real estate within their respective jurisdictions, if properly legislated. If two salespeople in a brokerage are representing the seller and buyer, respectively, in a transaction, there are two single agencies for the salespeople. there is a dual agency for the brokerage. the situation is illegal in Arizona. one of the salespeople has to exit the transaction. All real estate advertising in Arizona must include, in a clear and prominent manner, the state identity number of the salesperson. the state identity number of the brokerage. the state identity number of both the salesperson and brokerage. the employing broker’s name A multiple listing authorization gives a broker what authority? To list the owner's property in a multiple listing service. To delegate the listing responsibilities to other agents To sell or lease the property To sell several properties for the owner at once One situation in which a zoning board might permit a variance is when the property owner is the one who brings the variance to the attention of the zoning board. the property is in conflict with no more than one zoning ordinance. the variance was caused by a contractor rather than by the property owner. it would cause the property owner unreasonable hardship to bring the property into compliance with zoning ordinances An unscrupulous investor completes a contract with a buyer to sell a property the investor does not own. The sale contract for this transaction is illegal yet potentially enforceable. must be in writing. is voidable. is void Arizona branch offices must be managed by? an unlicensed manager with five years’ experience. a licensed broker or salesperson an individual holding at least two ADRE licenses. a licensed broker or property manager. Which laws or regulations prevent mortgage lenders from discriminating in extending credit to potential borrowers based on race, color, religion, national origin, sex, marital status, age, and dependency on public assistance? Truth-in-Lending laws The Real Estate Settlement and Procedures Act Federal Fair Housing Laws The Equal Credit Opportunity Act. Property managers have a _______ relationship with the property owner. partnership subagency non-binding fiduciary. The transfer of real property with the consent of the owner is Done through a bargain and sales deed. Often the result of foreclosure, tax sale, judgment, eminent domain. Voluntary Alienation Involuntary alienation. While a property is under a contract for deed, the seller, or vendor, mortgages her equity in the property, and has a separate judgment lien placed on the property. Faced with financial loss, the vendor assigns the contract to another party, then leaves town. What can the vendee do in this case? rightfully cancel the agreement and reclaim all deposits. disclaim the lien and the mortgage due to homestead rights. sue the creditor for removal of the judgment lien. comply with the contract and take legal title when its terms are fulfilled The formula for return on equity is? required yield times gross income. cash flow times the capitalization rate. cash flow divided by equity. net operating income divided by equity. Which level of government controls zoning laws? State Federal Taxing authorities County and local All investors desire their investments to increase in value. However? the degree of return is inversely related to the degree of risk. investments requiring intense management have lesser returns. the more liquid an investment is, the greater the chances are that the investment will not appreciate. the more the investor stands to gain, the greater the risk that the investor may lose. Which of the following statements about branch offices is TRUE? A branch office may be managed by an unlicensed office manager. A branch office does not require any special kind of licensing. The sign identifying a branch office must include the name of the brokerage of which it is a branch office. The sign identifying a branch office must state that it is an independently operated brokerage. Why is it important for a property manager to maintain good relations with tenants? Unhappy tenants lead to expensive tenant turnover. Happy tenants are easier to work with. If tenants like the manager they will like the owner. The manager owes the landlord the fiduciary duty of pleasing the tenants. In Arizona, how old must a person be to obtain a real estate broker’s license? 24 21 17 18. The Federal Reserve System regulates the money supply in which of the following ways? Printing money, changing interest rates, and selling T-bills. Controlling the prime rate, trading securities, and purchasing loans. Selling securities, printing money, and controlling lending underwriting requirements. Buying securities, changing the discount rate, and controlling banking reserves The document which transfers the responsibility for paying property taxes from grantor to grantee is the? Transfer tax stamp. Affidavit of value Affidavit of affixture. Beneficiary deed. Property taxes are assessed on the amount paid for the property. assessments on the property. capital gains on the property. value of the property. A significant difference between an appraisal and a broker’s opinion of value is the appraiser tends to use only one or two of the approaches to value. the appraiser uses less current market data. the broker may not be a disinterested party the broker is subject to government regulation in generating the opinion. The only required clause in a deed of conveyance is one that states the parties and the type of estate being conveyed. states the grantor's intention, names the parties, describes the property, and indicates a consideration states restrictions and limitations to the estate being conveyed. states that the grantor has done nothing to impair title to the property being conveyed. Arizona land laws were most influenced by? legislation after Arizona statehood Spanish land grant law the bundle of legal rights. colonization by French explorers and fur trappers. As part of their fiduciary duty under agency law, Arizona licensees have the duty to disclose? That a previous occupant died of AIDS. All offers to a seller until closing Any stigmas or rumors that attach to a property. The whereabouts of sexual predators in the neighborhood. How many acres are there in the S 1/2 of the NW ¼ of Section 3? 80 acres. 20 acres 40 acres 180 acres Under what circumstance can an owner of a single-family residence depreciate the property for tax purposes? if the property is a rental if it is held for at least 27.5 years if it is owner-occupied when the property is sold A buyer’s equity in a land contract is 10%. If the buyer defaults, what is the forfeiture period? 120 days 90 days 30 days 60 days 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 coop owner owns stock and a freehold real estate interest whereas the condominium owner simply owns real estate. the condominium owner must pay expenses as well as rent. a default by a coop owner may cause a foreclosure on the entire property instead of just a single unit, as with a condominium A lender is charging 3 points on a $50,000 loan. The borrower must therefore pay the lender an advance amount of? $3,000. $1,500 $300. $150. One feature of a wraparound mortgage loan is that? the second mortgage borrower may make payments directly to the first mortgage lender. the loan is a senior loan. the seller offering the buyer a wraparound can profit from a difference in interest rates the interest rate may vary. Len is a designated broker for a large franchise brokerage. He is planning to attend a week-long franchise meeting in Las Vegas. Prior to leaving Arizona, he must? have a licensed assistant in place. appoint a temporary designated broker. notify ADRE of his planned absence. appoint a temporary broker. Regarding contracts and forms, once written and signed they cannot be changed except by a lawyer. the principals may make changes as long as they sign or initial each change real estate licensees may alter forms but not contracts. whoever originates them can make changes without the risk of unauthorized practice of law. Escheat occurs in Arizona? When real property is condemned for public use. When a property owner dies intestate and without apparent legitimate heirs Whenever a quit claim deed is used. To resolve foreclosure disputes. When conveying property in Arizona, a deed must be signed by the grantor. trustor. grantee. mortgagor Buyers are responsible for? Completing the property disclosure statement. Reporting discovered property defects to the county building inspector. Inspecting the property before buying Informing the seller of hidden property defects. A landlord promises to compensate a broker for procuring a tenant, provided the broker is the procuring cause. This is an example of a(n) exclusive agency agreement. exclusive right-to sell agreement. open listing net listing. A brokerage must retain most transaction files for? 5 years 3 years. 1 year. An indefinite period. The basis on which real property taxes in Arizona are calculated is called? limited property value. full market value. full cash value. equalized property value. What lien would always be ahead of a lender’s first mortgage? mechanics lien special assessment property tax lien judgment The main purpose of the Federal Housing Administration is to sell loans. lend money. guarantee loans. insure loans. Which of the following is NOT a requirement to obtain a real estate sales license in Arizona? passing a state examination 90 days’ residence in the state 90 hours of approved education at least 18 years old What guarantees the right of private ownership of real estate in the United States? Common law Local statutes The Napoleonic Code The Constitution Capital gain tax is figured by multiplying one’s tax bracket times? the sum of the beginning basis plus gain. the difference between net sale proceeds and capital gain. the sum of net sale proceeds and capital gain. the difference between net sale proceeds and adjusted basis. Judy is an Arizona real estate licensee but not a licensed appraiser. She gives an opinion of the potential value of a parcel of real property to a client. That opinion is? a broker price opinion. unlicensed activity. illegal in Arizona. useless and invalid. The concept of market value is best described as the price a buyer will pay for a property, assuming other similar properties are within the same price range. the price an informed, unhurried seller will charge for a property assuming a reasonable period of exposure with other competing properties. the price a buyer and seller agree upon for a property assuming stable interest rates, appreciation rates, and prices of other similar properties. the price that a willing, informed, and unpressured seller and buyer agree upon for a property assuming a cash price and the property's reasonable exposure to the market The steps in the market data approach are choose nearby comparables, adjust the subject for differences, estimate the value. select comparable properties, adjust the comparables, estimate the value gather relevant price data, apply the data to the subject, estimate the value. identify previous price paid, apply an appreciation rate, estimate the value. Under the doctrine of littoral rights, an owner claims ownership of all of the land underlying a lake where there are three other abutting property owners. Which of the following is true? d. The owner's claim is valid, because the lake is navigable. a. The owner's claim is invalid, because the state owns the underlying land. c. The owner's claim is invalid, because he may only own underlying land to the middle of the lake. b. The owner's claim is invalid, because the underlying land is shared equally with the other owners. An owner leases a property to a business in exchange for rent. The tenant is required to pay all operating expenses as well. This is an example of a gross lease. percentage lease. net lease proprietary lease. 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. An agent fails to discover flood marks on the walls in the basement of a property. The agent sells the property, and the buyer later sues the agent for failing to mention the problem. In this case, the agent has an exposure to a charge of negligent misrepresentation has little exposure, since the problem was not mentioned on the signed disclosure form. is not vulnerable, since the problem was not discovered. may be guilty of intentional misrepresentation. How many townships are in a 24-mile square? 24 16 12 8 Article 26 gives Arizona real estate licensees the authority of originate loans. full power to practice law in the state. the power to draft or complete legally binding documents in a real estate transaction the opportunity to write contracts on a freelance basis and charge for their services One aim of the statute of frauds is to? set time limits for disputing contract provisions. prevent fraudulent assignments of listing agreements. require certain conveyances to be in writing. make all oral agreements unenforceable. In the contracting process, a licensee must be careful to avoid? pointing out to the principals the importance of meeting contingency deadlines. giving the principal any advice about the transaction. drafting a contract illegally. describing the normal requirements of a contract to a client. Rows of townships are called tiers townhouses condominiums ranges To represent businesses in a commercial sale, an Arizona real estate professional must have Nothing more than a regular salesperson or broker license issued by ADRE At least nine continuing education hours in commercial and business opportunity sales every two years. A certification rider attached to a regular salesperson or broker license. A business or commercial sales license. Unlike tenants in common, joint tenants own distinct portions of the physical property. may own unequal shares of the property. cannot sell their interest to outside parties. cannot will their interest to a party outside the tenancy. An owner agrees to pay a broker for procuring a tenant unless it is the owner who finds the tenant. This is an example of a(n) exclusive agency agreement net listing. exclusive right-to sell agreement. open listing. . An individual who wishes to donate land for a public park must? file a quitclaim deed before initiating the transfer. have two witnesses and a notary declare the donor of sound mind. obtain a certificate from the county recorder showing that all taxes have been paid. complete the necessary dedication forms for government approval. Regulations created by state or federal agencies to support and enforce statutory law are referred to as administrative law cannot be applied to unlicensed parties. may not be enforceable because the state congress does not vote on them. are collectively called common law. Licensee salesperson Rich is asked about the priority of liens to be paid in foreclosure. He tells his client Martha that the following liens take precedence over all other liens in Arizona. Internal Revenue Service liens. Mortgage liens. Mechanics liens. Property taxes and special assessments Which is considered functional obsolescence? a five-bedroom house with one bathroom worn out carpet lack of parking a building located next to a factory Which laws or regulations require mortgage lenders to disclose financing costs and annual percentage rate to a borrower before funding a loan? The Real Estate Settlement and Procedures Act The Equal Credit Opportunity Act Federal Fair Housing Laws Truth-in-Lending laws . License regulators, empowered by state law to oversee brokerage practices, may? take punitive actions against fraud or misrepresentation disapprove a broker's branch office location to maintain competitive balance in an area. limit the size of a brokerage to prevent possible monopoly. dictate the commission structures of practicing brokers and salespeople. The best definition of a master plan is a comprehensive analysis of existing land use patterns in a market. a state or regional land use law requiring compliance on a county-by-county basis. an annual review of all land use permits and zones. a fusion of land use laws and local land use objectives and strategies A homeowner’s tax bill for a taxing district is derived by? multiplying the millage rate times the equalization factor. multiplying the tax rate times the assessed value of the property. dividing the tax base by the district's needed revenues. multiplying the tax rate times the taxable value of the property. Bill, Sal, and Bryan plan to form a real estate team; a lawful Arizona real estate team ? may consist of members from two to four different brokerages. must be made up of holders of active licensees working within the same brokerage. may include inactive licensees. can include unlicensed personnel. A contact has been signed, but title has not yet passed. The contract is recorded estopped executory executed A principal discloses that she would sell a property for $150,000. During the listing period, the house is marketed for $180,000. No offers come in, and the listing expires. Two weeks later, the agent grumbles to a customer that the seller would have sold for less than the listed price. Which of the following is true? The agent has violated the duty of confidentiality. The agent has created a dual agency situation with the customer. The agent is violating the duties owed this customer. The agent has fulfilled all fiduciary duties, including confidentiality, since the listing had expired How many principle baselines and meridians are currently in Arizona? 4 NONE 2. 1 A homeowner bought a house for $278,000. She sold it nine years later for $264,000. What is her percent of loss? 3.9% 5.3% 5.0% 9.5% To aid in the sale of a manufactured home on a rental pad in Arizona, a person must hold A used vehicle sales permit. An active ADRE real estate license A dealer license from the Arizona Department of Housing. No required license. What is meant by a “lien-theory” state? A state in which liens are given priority over other encumbrances A state in which the holder of a mortgage lien receives title to the mortgaged property until the debt is satisfied A state in which liens exist in theory but not in practice A state in which a mortgagor retains title to the property when a mortgage lien is created. 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. The capital gain on sale of an investment is computed as? net sales proceeds minus beginning basis. net sales proceeds minus adjusted basis. beginning basis plus gain. sale price minus beginning basis. Which of the following is true with respect to real property taxation by the federal government? It may not impose property taxes nor tax liens. It may impose ad valorem tax, but not capital gain tax. There are no federal ad valorem taxes on real property It may impose ad valorem property taxes and capital gain tax. One similarity between a general partnership and a limited partnership is that both may broker real estate if properly licensed both are subject to double-taxation. all partners bear full liability for debts to the extent of the debt. the partners in both organizations take an active role in managing the business. An owner completes a contract to sell her property. Before closing, she runs into financial trouble and assigns the contract to her mortgagor. Which of the following is true? The assignment can take effect only after the closing. The owner has defaulted. The sale contract remains valid. The buyer can sue to nullify the mortgage. The distinguishing feature of a defeasible fee simple estate is that the estate may revert to a grantor or heirs if the prescribed use changes it can be passed on to heirs. it is of unlimited duration. it has no restrictions on use. The guardian for a mentally incompetent party enters into an oral contract with another party to buy a trade fixture. This contract must be in writing to be valid is valid but unenforceable is possibly valid and enforceable. does not meet validity requirements Why does a manager need to keep tenants happy? High tenant turnover increases expenses and reduces profits Unhappy tenants make the owner look bad. Happy tenants make fewer demands for services. Managers are contractually required to please tenants. The buyer in a land contract transaction has more than fifty per cent equity invested when he runs into trouble and begins defaulting on payments. How long does he have to reclaim the property and reinstate the contract before forfeiture occurs? 60 days 365 days 270 days. 120 days Consumer complaints about a licensee’s professional practices? Must be filed with the State Attorney General. May be submitted to the Arizona Department of Real Estate Will be acted on by the local Board of Ethics Can only be addressed in a municipal court. An agent’s performance of due diligence concerning a listing can best be described as initiating the marketing plan on or before a deadline. helping customers satisfy their needs to the extent they are entitled. expending an amount of effort that is commensurate with the nature and size of the transaction. ascertaining the facts about the client and the property at the onset of the listing period On a settlement statement, rent paid in advance would be a debit to the buyer only. credit to the buyer, debit to the seller. credit to the buyer only. credit to the seller only. Property management and real estate asset management are both real estate management professions. The primary distinction between the two is that property managers always report to an asset manager. asset managers have greater knowledge of a property's finances. property managers handle day-to-day operations while asset managers manage portfolios of properties. asset managers are primarily responsible for maintenance technicians. Mario and William want to terminate their apartment lease early to move to another apartment. Which of the following is their best course of action? Pay damages to avoid a lawsuit Abandon the apartment but keep paying the rent Obtain the landlord’s agreement Stop paying rent to force an eviction A 3.45-acre lot sells for 50 cents per square foot. What is the selling price? $78,712 $37,570 $75,141 $76,230 The primary role of the Federal Housing Authority in the mortgage lending market is to? guarantee loans made by approved lenders. originate loans made by approved lenders. purchase loans made by approved lenders. insure loans made by approved lenders A real estate investment can take a long period of time to sell. For the investor, this means that real estate is? vulnerable to seller's markets. management intensive. insensitive to marketing. relatively illiquid. A defaulting borrower may avoid foreclosure by giving the mortgagee a promissory note. a deed in lieu of foreclosure a lis pendens. a redemption notice The right of an Arizona real estate licensee to prepare certain legal documents and forms comes from the Commissioner’s Rules. local ordinance. the Arizona Constitution. the Arizona Statute of Frauds. Which of the following is the formula for deriving the tax base of a jurisdiction? The total tax required divided by assessed values. The annual budget divided by the millage rate. The total of all assessed values minus exemptions. The annual budget times the tax rate. If net income on a property is $20,000 and the cap rate is 5%, the value of the property using the income capitalization method is $100,000. $4,000,000. $1,000,000. $400,000 The legal description of a parcel in a subdivision that has been recorded with lot and block numbers on a plat of survey is the standard rectangular survey description. the subdivision plat map. the lot and block number, with section, township and meridian references the lot and block number. How does disclosure manage risk? It deflects and reduces risk by preventing others from claiming they were misled It accepts the risk of revealing confidential information. It eliminates the risk of committing an error. It transfers the risk of a code violation to the client. Which of the following represents the core activity of real estate brokerage? Buying and selling properties for one's company Prospecting for and qualifying potential customers Negotiating sale or lease terms for a client Procuring customers for clients and effecting transactions. Commingling is the practice of mixing socially with prospects at open houses or other marketing functions. mixing escrow funds with the broker's operating funds blending escrow funds on a number of properties in one escrow account. appropriating client or customer deposits for use in the agency's business. Arizona’s Real Estate Recovery fund is? no longer in existence. a program administrated by the Arizona Association of Realtors®. a malpractice fund administered by ADRE a funding program to help errant licensees regain suspended licenses. 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 real property Trade fixtures that are real property Permanent fixtures that are personal property An agent informs owners in an area that a decline in property values over the past five years is due to an influx of minority families. He suggests that the trend will continue, and advises them to sell before it is too late. This agent is probably guilty of? redlining. negligent misrepresentation. blockbusting. discriminatory misrepresentation. A domestic well may only be used for? Watering pets and less than two acres of grass or garden. Pumping more than 35 gallons per minute Large-scale cattle and horse ranches Commercial irrigation A seller needs to pay an estimated $2,000 in closing costs, $150,000 on his current mortgage, and wants $58,000 in cash for a down payment on another house. His listing agreement obligates him to pay 7% commission to the brokerage. What is the minimum selling price he can accept? (Round your answer up to the nearest dollar.) $222,600 $218,400 $225,807 $197,400 What is the significance of base employment in a real estate market? It indicates the number of people who want to move into the market. It gives the basic number of people who will need housing. It drives total employment and population growth, which lead to demand for real estate. Dower refers to a wife's homestead interest. a child's life estate interest in his or her parents' homestead. joint tenancy of husband and wife. a wife's life estate interest in her husband's property.
