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Realty
Real Estate Exam For Arizona
99
Real Estate & Planning
Not Applicable
04/12/2022

Additional Real Estate & Planning Flashcards

 


 

Cards

Term
The term used to describe the legal process of transferring real property is:
Definition
Conveyance
Term

A deed would be invalid if it were found to be:

  • Recorded after the sale took place.
  • Signed by both the grantor and the grantee.
  • Had a consideration in the form of other than money.
  • Missing a legal description.
Definition
Missing a legal description
Term

5 Legal Rights

DEEP-C

Definition
  1. D-Disposition
  2. E-Enjoyment
  3. E-Exclusion
  4. P-Possession
  5. C-Control
Term

Which of the following have rights of survivorship? (2)

  • Community Property in AZ
  • Tenancy by the Entirety
  • Tenants in Common
  • Joint Tenancy
Definition

Community Property in AZ

&

Joint Tenancy

Term

Which of these is NOT a type of easement?

  • Easement in Gross
  • Easement Appurtenant
  • Easement in Monetary
  • Easement by Necessity
Definition
Easement in Monetary
Term

True or False:

To prove to a buyer that a seller has clear title, the seller would purchase a title report.

Definition
False
Term

A change in zoning directly across the street would be a potential:

  • Non-monetary encumbrance
  • Choice 2 Monetary Encumbrance
  • Potential Encumbrance
  • Zoning Encumbrance
Definition
Potential Encumbrance
Term
The act of transferring real property from one person to another.
Definition
Alienation
Term

The IRS has the power to lien both personal and real property. This is what type of encumbrance?

  • General, Involuntary, Statutory
  • General, Specific, Involuntary
  • Specific but Involuntary
  • General but Involuntary
Definition
General, Involuntary, Statutory
Term

Which of these is NOT a superior lien:

  • Income Tax lien
  • Non Judgement Lien
  • Financing Lien
  • Deceased Estate Lien
Definition
Non Judgement Lien
Term
A common reasoning tool used to determine the status of a fixture would be:
Definition
Intent
Term

The impound account is used to pay what on behalf of the new property owner?

  • Property taxes
  • Mortgage
  • HOA dues
  • Interest to the lender
Definition
Property Taxes
Term
What are the 4 types of Leasehold Estates?
Definition

Estate for Years

Periodic Estate

Estate at Sufferance

Estate at will

Term
The affidavit of value form would be used by the ______ to help determine other property values in the same area.
Definition
Assessor
Term
An AirB and B renter would have what type of estate?
Definition
Leasehold
Term
When a house in Arizona is owned in severalty and the owner dies, who does the property ownership pass on to by default?
Definition
The heirs
Term

Which of these statements is false about Tenancy in Common:

  • It's undivided, each party has the rights to possess and use.
  • Each owner cannot sell, will or give their ownership interest away without the approval of all involved.
  • If an owner dies, their interest will pass on to their heirs, not to the co-owners.
  • No rights of survivorship. 
Definition
Each owner cannot sell, will or give their ownership interest away without the approval of all involved.
Term
When is a commission earned in a real estate contract?
Definition
At the time the sale is procured.
Term
The _______ would transfer full ownership rights back to the grantor from the grantee.
Definition
Reverter Clause
Term
Real Estate agents find resources on how to operate safely and stay within the law by reviewing all of the following:
Definition
  • Substantive Policy Statements
  • Quarterly bulletin publised by the Real Estate Division
  • Arizona revised Statutes
Term
Another term used to describe the recorded history of a title is:
Definition
Abstract of Title
Term

A policy underwriter discovers a defect in the chain of title and they can't seem to find where a previous owner ever signed the deed to the current owner. This defect would cause what potential action?

  • A cloud was found and can be easily cleared by the title company.
  • A title policy most likely won't be issued.
  • The new buyers of the property would need to clear the defect.
  • A title policy could be issued but would have a defect note.
Definition
A title policy most likely won't be issued.
Term

The biggest reason why banks don't typically lend money on Co-ops is due to the fact that:

  • The prices are not determined by fair market.
  • Owners have a proprietary leasehold interest in the building.
  • Owners don't have any form of ownership in the corporation.
  • The sellers don't have any input as to how the board is run.
Definition
Owners have a proprietary leasehold interest in the building.
Term
Sams Place leased a 2400sqft commercial space from Bogeys Piano Factory for a period of 5 years. What type of lease does Sams Place have?
Definition
Estate for Years.
Term

By dying intestate, what happens to the real property in Arizona?

  • It goes to the owners partner automatically.
  • The Statutes of Decent will be followed. 
  • The estate would revert to the State.
  • Whatever is recorded in the Will. 
Definition
The Statutes of Decent will be followed.
Term
What acronym can be used to describe what would be personal property vs. real property.
Definition
MARIA
Term
 A current copy of _____ must be readily available in a Real Estate office. 
Definition
AZ RE Law
Term

Which party would be responsible for handling of all monies in a real estate conveyance?

  • Buyer's Broker
  • Seller's Broker
  • Escrow Agency
  • Title Agency
Definition
Escrow Agency
Term
With a leasehold estate, does the lesee have the right to dispose of the property?
Definition
NO
Term
Real Estate Office Must Have:
Definition
Designated Brokers name and Brokerage Name on the door or on the property.
Term
Who chooses the escrow company?
Definition
The Buyer
Term
In order to be up to date on changing issues, all agents must take how many hours of continuing education?
Definition
24hours every 2 years
Term

Landlocked property must be granted an easement and is known as the ____.

  • Dormant Tenement
  • Dominant Tenement
  • Divisive Tenement
  • Disputed Tenement
Definition
Dominant Tenement.
Term
A characteristic of land that defines no two parcels are identical would be known as:
Definition
Nonhomogeneous
Term
The amount of time allowed to notify the AZ Dept. of Real Estate that you have passed the State Real Estate Exam is:
Definition
365days (1 year)
Term

During a closing, which party would pay for the escrow fees due to the statutes?

  • The agreed upon party identified in the contract.
  • Both parties would split it according to the statutes.
  • There are no statutes that state who would pay for escrow.
  • Buyer would pay for the close of escrow.
Definition
There are no statutes that state who would pay for escrow.
Term

To further protect against large losses, a lessor might want to obtain what type of insurance policy that would cover them once their primary insurance is exhausted or runs out?

  • Jumbo Policy
  • Umbrella Policy
  • Gap Insurance Policy
  • Lender Comprehensive Policy
Definition
Umbrella Policy
Term

A seller would want to be able to prove that they have Marketable Title in order to show what?

  • The ability to transfer their real property to the escrow company.
  • The ability of the sellers or agent to market the property to others.
  • The ability for the general public to view recorded liens on the property.
  • The ability of the escrow company to provide title insurance.
Definition
The ability of the escrow company to provide a title insurance policy.
Term
This type of leasehold estate goes for as long as either party wants it to and can be cancelled at any time.
Definition
Estate at will
Term

What are other types of insurance besides title insurance?

  • Hazard and Flood insurance
  • Business Insurance
  • Landlord Insurance
  • Homeowners Insurance
Definition

Hazard and Flood Insurance

Business Insurance

Homeowners Insurance

Term

In Arizona, what gives agents the power to draft and write contracts?

 

Definition
Article XXVI (26) of the Arizona Constitution
Term

Which of the following is a physical characteristic of land?

  • Equitable
  • Defeasible
  • Indestructible
  • Intestate
Definition
Indestructible
Term

Unique to Arizona, what type of license is needed to sell timeshares?

  • Timeshare Sales License
  • Real Estate License
  • Developers License
  • Public Report Owners License
Definition
Real Estate License
Term
A purpose built greenhouse on the property was expressed in the listing agreement as not to convey. This is:
Definition
Severance
Term

HOA CC&R's are considered an:

  • Entitlement
  • Encumbrance
  • Escheat
  • Easement
Definition
Encumbrance
Term
How long does a licensee have to file a written reply to the Department of Real Estate if a complaint has been filed?
Definition
20 days
Term

A possessor of property that is not legally theirs can add onto the time that someone else was illegally using the property by doing what?

  • Taking On
  • Adverse Protection
  • Trailing behind
  • Adverse Property
Definition
Taking On
Term
A licensed real estate agent in the state of Arizona can only receive their commission or compensation from whom?
Definition
The designated broker for their office
Term
In order for it to be recognized, the deed to real property must be signed by:
Definition
The grantor
Term

Joint Tenancy must include which of the following:

  • Rights of Survivorship
  • Time and Title
  • Interest and Possession
  • All of These
Definition
All of These
Term
Which one of the bundle of rights would allow someone else to buy their land in the future for a set price now?
Definition
Disposition
Term

True or False

Business entities can own title with rights of survivorship.

Definition
False
Term

The Correct Terms that'll be found in Title Policies are: (3)

  • Bona Fide Purchaser
  • Innocent Purchaser
  • Subrogation
  • Policy Endorser
Definition

Bona Fide Purchaser

Innocent Purchaser

Subrogation

Term
The Advisory Board consists of __ members who serve for __ years each.
Definition
10, 6
Term
This is the weakest of all deeds as it offers the least protections to the buyer:
Definition
Bargain and Sale Deed
Term

True or False

Ownership is allowed in campgrounds

Definition
False
Term
Commissioner must investigate anytime:
Definition
A written complaint is filed
Term

Corporeal Hereditaments could be:

  • A timeshare that is used yearly
  • A shared easement
  • A car donated to charity
  • A property left in a will
Definition
A property left in a will
Term
Members of the Advisory Board earn how much per year?
Definition
$0
Term

True or False

Tenants have the rights to enjoy property they are renting

Definition
True
Term

A buyer tours a timeshare presentation in Arizona while on vacation. The buyer bought a timeshare. This contract is:

  • Enforceable since she was not a resident of Arizona
  • Rescindable by the Buyer for a period of 7 days
  • Valid
  • Unenforceable since she didn't have 3 days to review the contract.
Definition
Rescindable by the buyer for a period of 7 days.
Term

Earned money is held in what type of account?

  • Brokers Personal Account
  • Impound Account
  • Escrow Account
  • Savings Account
Definition
Escrow Account
Term

True or False

HOA can legally foreclose due to unpaid assessments.

Definition
True
Term
The Arizona State Constitution has how many total articles?
Definition
30
Term
If the commissioner pays money from the recovery fund on behalf of a licensee:
Definition
that licensee is AUTOMATICALLY terminated
Term

Clear title means:

  • There are no known defects in the title history
  • Full ownership history has been documented
  • The sellers have cleared the clouds on title
  • All of these
Definition
All of these
Term
Where would you find the written laws that deal specifically with the Arizona Department of Real Estate?
Definition
The Arizona Revised Statutes
Term

True or False

An HOA can foreclose on a homeowner for failing to pay fines.

Definition
False
Term

When buying a property jointly, two individuals who are not married would most likely take title to a property how?

  • Tenants in Law
  • Equal Tenants
  • Tenants in Common
  • Joint Ownership with Rights of Disposal
Definition
Tenants in Common
Term
A buyer saw an advertisement in his local paper about 40 acres for sale in Northwestern Arizona. He and his wife purchased the property but didn't view it before the purchase. How long do they have to rescind their purchase?
Definition
6months
Term
Surrender and ____ is a term used to describe when the tenant voluntarily moves out and neither the landlord nor the tenant will incur penalties.
Definition
acceptance
Term

Choose the correct requirements for a lease to be considered 'valid' (2)

  • Both parties must be over the age of 18
  • If leasing for more than a period of a year, can be verbal
  • If leasing for less than a year, must be in writing
  • Set rules and limits on items like guests, occupancy, pets, etc
Definition

Both parties must be over the age of 18

&

Set rules and limits on items like guests, occupancy, pets, etc

Term

Under the Arizona Landlord Tenant Act who is responsible for making repairs?

  • The Tenant
  • Whoever is on the lease that was agreed to by both parties
  • The Landlord
  • The Property Manager or Property Management Company
Definition
Whoever is on the lease that was agreed to by both parties
Term

Which of the following would not be covered under the Arizona Landlord Tenant Act?

  • Landlord renting out their house
  • Fraternity Housing
  • Low rent apartment complex
  • Multi-family housing managed by a licensed property
Definition
Fraternity Housing
Term

John Deadbeat hasn't paid his rent on time again. Landlord Biggy is tired of this and wants to evict. Biggy must serve a notice of default at least how many days before commencing of an eviction suit?

  • 5days
  • 30days
  • Immediately
  • 1day after rent is late
Definition
5days
Term

According to the AZ Residential Landlord Tenant Act, who must be written into the lease as a point of contact for tenant repairs?

  • Owners broker
  • A member of the LLC
  • An elected agent on behalf of owner or the owner
  • Only a licensed property manager
Definition
An elected agent on behalf of owner or the owner
Term

Sandwich Lease is:

  • Where the lessee becomes lessor and sub-lessee will make payments to their lessor who will in turn make the payments to the original lessor. 
  • Where the lessor agrees to a new tenant taking over the old tenants place as long as the old tenant is going to pay the difference in rent to the lessor.
  • Most commonly found in commercial spaces where two large anchors support the tenants in the middle of the complex. 
Definition
Where the lessee becomes lessor and sub-lessee will make payments to their lessor who will in turn make the payments to the original lessor.
Term

Which of the following is not a way to terminate a lease?

  • Death of the Lessor
  • Fire Completely Destroys the Building
  • City Ordinance changes
  • Bankruptcy of the Lessor
Definition
Death of the Lessor
Term

Seizing or Taking a Arizona residential tenants property and placing the items in safe storage until the lease has been paid is:

  • Demise and it is legal in the State of Arizona
  • Discord and is legal in the state of Arizona
  • Destraint and is illegal in the State of Arizona
  • Surrender and it is illegal in the State of Arizona
Definition
Distraint and is illegal in the State of Arizona
Term

Which of these is NOT an example of an incompetent party?

  • Someone who is under the age of 18
  • Someone being threatened into an agreement
  • Someone who has a prescription for anxiety medication
  • Someone under the influence of alcohol and drugs
Definition
Someone who has a prescription for anxiety medication
Term

If the offeror dies before the offer was accepted, the offer is...

  • Valid
  • Void
  • Enforceable
  • Accepted
Definition
Void
Term

True or False:

By signing a contract, parties have ratified the terms and agree to them.

Definition
True
Term

What are the exceptions to the rule of "all real estate contracts must be in writing"(2)

  • Short term leases
  • Consideration
  • Parole of evidence
  • Commission agreement between brokers
Definition

Short term leases

&

Commission agreements between brokers

Term

The broker had been showing homes for some time to a buyer. After a few months, she found out that the buyer bought a home from a different agent. She tried to sue the other agent but the judge in the case cited that she was missing what?

  • Valid Consideration
  • Signatures by all parties
  • Statute of description
  • Statute of validity
Definition
Signatures by all parties
Term

A contract signed by a party under the influence of pain medication could be considered voidable due to the lack of?

  • Competent parties
  • Duress
  • Consideration
  • Parol of Evidence
Definition
Competent parties
Term

Which is not an additional requirement for real estate contract validity?

  • Signed
  • In Writing
  • Escrow Instructions
  • Consideration
Definition
Escrow Instructions
Term

What clause would an agent use in an offer to purchase that indicates in a hot market that they want an ANSWER before their deadline in an effort to prevent other buyers from making better offers?

  • Counteroffer
  • Time is of the essence
  • Description
  • Legal Purpose
Definition
Time is of the essence
Term

During contract negotiations, the counterofferor died unexpectedly. What is the status of the Sale?

  • The offer is under contract and must proceed
  • The agent must deliver the signed acceptance
  • There is no contract
  • The parties can sue for specific performance
Definition
There is no contract
Term

Which of these statements are incorrect?

  • The Promissory Note is the primary document that evidences the borrower's legally enforceable promise to repay the loan.
  • The mortgage is a document that you give to the lender that creates a lien on the property, given as security for the debt borrowed.
  • In a deed of trust, the three parties involved are; Trust-or, Beneficiary, Trustee
  • Mortgage is latin for 'Life Pledge'
Definition
Mortgage is latin for 'Life Pledge'
Term

In the State of Arizona, the two written instruments that are commonly used as evidence of a loan are?

  • Promissory Note and Deed of Trust
  • Promissory Note and Deed in Lieu
  • The borrower or trustor would sign the promissory note and the Deed of Trust
  • Recorded Note and Deed for Sale
Definition
Promissory Note and Deed of Trust
Term

Amanda goes to the credit union in her home town in hopes of borrowing money that can be used to purchase a property. She is told that she can qualify for a 10% down mortgage and she agrees. Which of the following parties would be required to sign and date the mortgage?

  • Lender Only
  • Borrower Only
  • Lender and Borrower
  • Lender, Borrower, and Witnesses
Definition
Borrower Only
Term

A borrower wishes to obtain a purchase money loan for their purchase of a home located in Arizona. The bank offers them a loan, as long as the borrower will allow the lender to create a lien on the house that was being used as collateral. In this case, the lender and the borrower are known as?

  • Beneficiary and Trustee
  • Trustee and Trustor
  • Beneficiary and Trustor
  • Trustor and Mortgagor
Definition
Beneficiary and Trustor
Term

Which of the following may not serve as a trustee in the State of Arizona?

  • Escrow Company
  • Insurance Agent
  • Real Estate Broker
  • Trustor
Definition
Trustor
Term

In Arizona, the trustor gave what to the Trustee?

  • Recognized Title
  • Legal Title
  • Clear Title
  • Marketable Title
Definition
Legal Title
Term

A person has permission from a property owner to hike on the owner's property during the autumn months. The hiker has:

  • An easement by condemnation
  • An easement by necessity.
  • A license
  • Riparian rights
Definition
A license
Term

A resident of Denver bought acreage in a distant county, never went to see the acreage, and did not use the ground. An artist moved a mobile home onto the land, had a water well drilled, and lived there for 22 years. The artist may become the owner of the land if the artist is in compliance with the state law regarding:

  • Avulsion
  • Requirements for a valid conveyance
  • Adverse possession
  • Voluntary alienation

 

Definition
Adverse possession
Term

Most states require that a real estate listing agreement contain:

  • A broker protection clause
  • An automatic extension clause
  • A multiple listing serve (MLS) clause
  • A definite contract termination date
Definition
A definite contract termination date
Term

What is the source of rules that govern the use of real estate advertisements in all media, if they include mortgage financing terms?

  • Equal Credit Opportunity Act
  • Regulation Z of the Truth in Lending Act
  • Fair Lending Act
  • Community Reinvestment Act
Definition
Regulation Z of the Truth in Lending Act
Term

At closing, the earnest money left on deposit with a real estate broker is:

  • A balancing factor
  • A credit to the seller
  • A credit to the buyer
  • A debit to the buyer
Definition
A credit to the buyer
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