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AZ Real Estate (ASREB) 5/2017 > PREP EXAM > Flashcards

Flashcards in PREP EXAM Deck (39)
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1

C holds a life estate for his life and also purchases the interest of the vested remainderman. What interest would C now have?

Fee simple estate

2

An easement appurtenant is an example of

Property necessity

3

When a property is rented for only one month, this is called tenancy...

For years

4

Which of the following would NOT qualify for homestead exemption?

Family who owns a house in the name of a corporation

Single person living in a mobile home that is parked in rented space

Family who owns a house in the name of a corporation

RATIONALE
Homestead exemption is available only to natural entities, people, not companies which do not have "homes"

5

You homestead your property then default on a loan for $50,000 secured with a note and Deed of Trust. How much does the one foreclosed on owe?

$50,000

RATIONALE
He or she owes $50,000. The homestead exemption does not protect against a consensual (voluntary) lien.

6

What would be the holding of title received for the common area of a condo?

Tenancy in common

RATIONALE
The condo owner holds title to the common areas as tenants in common.

7

In order to have a valid deed, the ______ must sign.

Grantor

8

Delivery of a deed legally takes place...

When grantor hands the deed to a third neutral party with conditions and instructions to hand to the grantee

RATIONALE
This is the definition of an escrow delivery (handing the deed to a neutral party with instructions to deliver)

9

In Arizona, a deed must be signed by the

Grantor

10

An affidavit of value would NOT contain

Tax transfer stamps

11

Title would transfer involuntarily to whom?

Executor

12

Who gives instructions to sign the deed of re conveyance

Beneficiary

13

In an agreement for sale it transfers rights ....

An agreement for sale.... Transfers rights to buyers possession

14

What requires lenders to inform borrowers, when buying a home, secured by a mortgage or trust deed, of all finance charges, fees and interest at the time of signing the loan documents?

Reg Z

15

If FHA is to insure a loan placed by a lender for the purchase of real estate what would NOT be required

Government funds must be available is NOT requried

16

FHA is administered by the department of

HUD

17

An apartment complex would be required to keep the common grounds accessible to all the residents. What covers this requirement?

Federal Fair Housing

18

A complex meets the 62 year age requirement and the housing for old person exemption. A resident has a grandchild that would like to move into the complex. What is the status of the grandchild

The grandchild would not be allowed to stay due to the 62 year old exemption

19

Adjusted Gross Income Includes

Rents, minus vacancies, minus credit losses, plus other income

RATIONALE
Adjusted gross income is the same as "Effective gross income" and therefore has the same formula: Potential gross income minus vacancies, bad debts (credit losses) = Effective (Adjusted) gross income.

20

When a tenant does not pay the monthly rent, the landlord's first step would be to

Send a 5 day notice for non-payment of rent

21

When a tenant causes a material breach in the lease, the owner may issue a formal notice that states

Lease will terminate in 10 days if the matter is not corrected within 10 days

22

A condominium and cooperative would be the same in that

Both pay annual assessments

23

Is an auctioneer auctioning real property required to have a real estate license?

YES

RATIONALE
To auction any real property, business or timeshare a real estate license is required

24

When a broker represents a buyer only, what would be the relationship between the buyer, broker and seller?

Customer

25

An owner sold his listed property himself prior to expiration of the exclusive agency listing. The amount of commission owed is?

Nothing

26

If the buyer dies prior to a contract closing escrow, the contract is

Valid

27

An option once exercised is considered

Bilateral executory

RATIONALE
An option once exercised is considered Bilateral executory. Bilateral because it's two sided and executory because it hasn't closed.

28

A couple has an adult son heading to college in Arizona. The wife files for divorce after 27 years of marriage citing irreconcilable differences. The husband executes a lease on a property in Arizona for the son to attend college that begins on August 1, 2014 and terminates December 31, 2015 and converts to month to month unless one party gives 30 days notice. Who must sign?

The lease requires signatures of both parties in the marriage in order for it to be valid.

RATIONALE
A lease longer than 1 year requires signatures of both parties in order to be valid

29

In order to be enforceable, an exclusive listing

Must be signed by the owner and broker

RATIONALE
In order to be enforceable, an exclusive listing must be signed and accepted by the owner and the broker.

30

When you appraise land and add to it the depreciated value of the improved property, what appraisal approach is being used?

Cost