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Real Estate Exam

Terms in this set (306)

Mortgage Broker
Brings borrowers and lenders together
Real Estate Broker
Brings buyers and sellers together
Title/Escrow
A disinterested 3rd party (title company) holds money until terms of the contract are met. They do not work for either party.
Appraisal
Process of estimating market value. Must be licensed by the Arizona Department of Financial Institutions, Real Estate Appraisal Division
Do you need a real estate license to be a property manager?
Only if you manage more than one property for someone else with expectation of compensation
Two most popular financing methods...
Mortgage and Deed of Trust
Who regulates Escrow and Mortgage institutions in AZ?
Arizona Department of Financial Institutions
What is NMLS?
Nationwide Mortgage Licensing System... A NMLS number is a unique identifying number for mortgage officers that stays with them through their career
Subdivision/Development
Purchasing and dividing a single property into smaller parcels
Who licenses home inspectors?
Arizona State Board of Technical Registration
Who licenses pest control inspectors?
Department of Agriculture through the Pest Management Division
Categories of Real Property
(1) Residential, (2) Commercial, (3) Industrial, (4) Agricultural, (5) Special Purpose
Bundle of legal rights
"DEEPC" disposition, exclusion, enjoyment, possession, control
Appurtenance
Improvements that belong to and pass with the transfer of property but are not necessarily a part of the property. Ex: right-of-way, easements, water rights, parking stalls
Personal property
Moveable items, not real property
Emblements
Annual plantings or crops of wheat, corn, fruit, are considered personal property. Former owner is entitles to first harvest unless specified in sales contract
Are mobile homes real property?
It depends whether they are attached to the ground. In AZ to sell mobile homes you must be licensed by Arizona Department of Housing (ADOH) unless it is not attached to the ground
Severance
Taking something that was once real property and turning it into personal property
Annexation
Changing personal property into real property through creating a fixture
Fixtures
An article that was once personal property but has been so affixed to real estate that it has become real property
3 part test to determine when personal property, a chattel, has become a fixture
1. Annexation to the real property. 2. Adaptability or application as affixed to the use of the real estate. 3. An intention of the party to make the object a permanent part of the real property
Trade Fixtures
Personal property used in a business and can be removed by the lessee when the lease terminates. Ex: window curtains, hanging TV
Permanence of investment
Involves improvements, such as sewer, roads, and utilities, that are long-term, stable investments with relatively stable returns over time
Area preference/ Situs
People's desire for one area over another, based on a number of factors such as history, reputation, convenience, scenic beauty, and location, also referred to as "Situs"
Capital Gains Tax Exemptions
Single - $250,000 or Married - $500,000 for principal residence ONLY, must occupy for 2 years. You must have lived there 2 out of the past 5 years before date of sale
National Association of REALTORS
Founded on May 12, 1908 in Chicago with 120 members. Objective: "to unite the real estate men of America for the purpose of effectively exerting a combined influence upon matters affecting real estate interests". In 1972 they changed name to current name. Not all real estate professionals are REALTORS, a trademark of someone who pledges to abide by a strict code of ethics and standards. NAR's Code of Ethics (1913) was the first codifications of ethical duties adopted by any business group, ensuring that REALTORS cooperate to further client's best interests
Nonhomogeneity
A lack of uniformity; dissimilarity. Because no two parcels of land are exactly alike, real estate is said to be nonhomogeneous
Included in definition of real estate but not in definition of land
Fixtures to property
A real property becomes personal property by
Severance
The right to control the use of the property and to dispose of it by will or deed are contained in the
Bundle of legal rights
Most important economic characteristic of land is
Location (situs)
Personal property that now becomes real property is called
Annexation
In order for mobile homes to be considered real property, what must be recorded?
Affidavit of affixture
Article XXVI of AZ Constitution
Allows real estate brokers/sales people to prepare instruments incident to property transactions without charging for those services. Legislation passed this in 1962
AZ Statutes Title 32 Chapter 20
Define the scope of the department's authority to promulgate rules, which are often referred to as "Commissioner's Rules" and issue Substantive Policy statements
ADRE
Arizona Department of Real Estate- purpose is to protect public interest through licensure and regulation of the real estate profession
Advisory Board
Composed of 10 members appointed by the governor. The term of office is 6 years. Members of the board are unpaid but reimbursed for expenses and meet once every three months
The advisory board consists of...
2 real estate brokers with 5 years of experience
3 members who were engaged in real estate brokerage for the 5 years before appointment, one of whom has multi-family property management with a broker's license for 5 years
2 members who are engaged in subdividing real property
3 public members who are not closely related to anyone that has a real estate broker or salesperson licenses, unbiased
Real Estate Commissioner
Commissioner is appointed by the Governor and is "at the pleasure of the Governor"
Requirements to be Appointed RE Commissioner
Resident of AZ, must have been active for 5 years in any of the following: re broker/ salesperson, title, mortgage broker, banker
Must have 3 years administrative experience and not be financially interested in any re brokerage firm
Powers and Duties of Commissioner
Has charge of the department with power to administer in accordance with the provisions of and to carry out purposes of this chapter
Can investigate the actions of any person or entity engaged in the business or acting as a broker, salesperson, or developer and can examine records/books
Recovery Fund
The ARDE has a recovery fund to protect public from a wrong doing by a licensee
Salesperson contribution $10
Broker contribution $20
Minimum amount in fund $600,000, if it drops below by June 30 of each year, a salesperson and broker can be accessed amounts again upon renewing license
Fund's Liability
30 thousand dollars for each transaction, regardless of number of people involved
90 thousand for each licensee
Statute of Limitation is 5 years
License is terminated upon payment from Recovery Fund
A licensee is not eligible to receive a new license until they repaid in full plus interest back to the Recovery Fund and Commissioner approves re-issuance
Eligibility of the Recovery Fund
A person can receive Recovery Fund after a court or arbitration has found a re salesperson or broker in the wrong. If the person has documented attempts to collect the judgement award and was unsuccessful, they can apply for the recovery fund
Ineligible examples for Recovery Fund
If property is outside of AZ, unrealized losses/speculation, repairs of defects the purchaser was aware of, vandalism, natural causes, punitive damages, post judgement interest, undocumented losses
Exemptions to Licensing
For sale by owner (FSBO)
Property manager with only one property
Attorney at law in the performance of his duties as an attorney without receipt of commission
All licensees who list their own property must disclose that the seller...
Is a real estate salesperson in AZ, as soon as practicable
Does AZ have any licensing reciprocity agreements with other states?
No
Late license renewal
If a licensee is renewing a license within one year after it expired, the applicant may apply continuing education hours completed after expiration toward continuing education required for renewal. A late fee of $10 per month (max $60)
When will department terminate a license
When it has been expired for more than a year
A licensee who engages in unlicensed activity has how long to renew their license before commissioner will take disciplinary action?
30 days
Salesperson license requirements
Has not had a license denied within one year or revoked within two years after application
Is 18 or older
Completed 90 hours of pre-licensing and passed the school and state exam
6 hour continuing education course in contract law and writing
Broker's License Requirements
3 years of active, full-time experience as a salesperson or broker out of the 5 years from time of applying
Passed examination for broker's license
Three, 3 hour broker management classes (9 hours total)
Place of Business
Each employing broker has a definite place of business with a sign clearly visible to all entering the business with the name of broker, name of brokerage, and whether they are in re, cemetery, or membership camping
Branch Office Requirements
If the broker has more than one place of business he must procure an additional license for each branch and must be under management of a broker or licensed salesperson
Temporary Broker's License
If broker dies,
Their spouse or next of kin can act as the broker for 90 days
Their administrator can act as the broker for 15 months
Temporary Broker Absence
If the broker cannot act within 24 hours, they can designate a licensee whom he employs or another broker to act on his behalf
Must be in writing and kept for one year after effective date
Shall not exceed 30 days
Salesperson cannot hire or sever licenses
How long after passing RE state exam do you have to get licensed
One year
Inactive vs Active License
Active is hung with a broker, Inactive is current but maintained at the Department of Real Estate (they cannot perform real estate activities)
Renewal of License
Must complete 24 credit hours of continuing education courses every 2 years. You can include the 6 hour Contract Licensing Course towards your 24 hours if completed within a year of receiving license and it is your first time renewing
If a broker's license expires, what happens to its employed salespeople?
Their license is severed til they sign with another brokerage or they renew their license
How many days do you have to notify department of name changes, changes to address/employment, felonies/misdemeanors, broker business address?
10 DAYS
Cease and Desist Order
The commissioner can issue an order for a person to cease and desist from an act, practice, or transaction is they feel it violating the rules
Trust Accounts
Broker does NOT need one
They may have $3,000 of their own money in the account
Broker Record Keeping Requirements
Any employing broker shall keep records of all real estate, time-share, cemetery or membership camping transactions handled through the broker and all employment records
All licensees shall promptly place all cash received as payment in connection with a transaction in the care of the broker
Does commissioner deal with payment of commission?
No, the commissioner won't entertain any purely civil disputes between licenses, courts will
Restrictions on Employment or Compensation
Broker may only pay and employ active licensees, it is unlawful to pay an unlicensed person and no compensation for negotiating loans
Advertising oneself as a re broker or salesperson without being licensed is guilty of what?
A class 6 felony
A person who performs acts that require a re license without it is guilty of what?
A class 5 felony
An Unlicensed assistant shall not:
Originate documents
Perform a walk-through inspection
Provide advice on pricing to a customer
Negotiate regarding a transaction or assist in the preparation of documents with a consumer
Attend a closing with a consumer without a licensee
Statute of Frauds
All real estate contracts need to be in writing to be enforceable except for leases of one year or less and broker to broker agreements
Time-shares in Arizona
To sell a time-share you must have a re license
Licensee must be in room when telephone solicitors are making calls
There is a 10 CALENDAR DAY rescission period on time-share sales
No person is required to attend any presentation for longer than 120 minutes (2 hours) to receive the premium
Bankruptcy
Chapter 7 is most severe, and can be used by any individual or business. All unsecured debts are terminated and are paid if any money remains after secured creditors are paid
Chapter 13 is used by wage earners and small businesses: it delays and reduces amount of payments to creditors over a period of time, also known as reorganization
Chapter 11 is used by large businesses and resembles a chapter 13 except with more requirements
Errors and Omissions Insurance
Real estate equivalent of malpractice coverage
Does not cover fraud, criminal acts, punitive damages, securities, personal transactions, discrimination, or any activities not related to real estate
Homeowners Association
Condos and planned community HOAs are regulated by the statute
In a condo, each owner has a undivided percentage of ownership in common areas
In planned community the common area is owned by HOA
The statute allows HOA to charge "reasonable fees"
Within 10 days of written notice of pending sale, the HOA (50 units or more) or seller (less than 50 units) must provide CC&Rs to the buyer
AZ law requires HOAs to conduct annual meetings
Arizona property taxes are based on:
Ad Valorem
Property taxes become lien on what date
January 1st
Who signs the deed of re-conveyance?
The trustee
Bare and Naked Title best describes the interest of:
Trustee under a trust deed
Which of the following may a property manager not receive?
Rebates from suppliers
A licensee cannot charge a fee to write a contract based on...
Article XXVI of the AZ Constitution
How long must a broker keep completed purchase contracts?
5 years
A broker is required to deposit the earnest money in escrow...
No later than the next banking day
On a closing statement, the selling price would be shown as:
Debit to buyer
What is an "exempt domestic well"?
A well that is used for domestic or household purposes
To be considered an exempt domestic well...
One with a max pumping capacity of 35 gallons per minute
When are 1st half property taxes delinquent?
November 1st
Property acquired during marriage is considered:
Community property
In Arizona the homestead exemption is...
$150,000
A tenant hires a roofer to construct a patio roof. The tenant refuses to pay the roofer the amount owed. Who may the roofer file a complaint against?
Tenant
In Arizona the statutory redemption period on a mortgage foreclosure is
6 months
Every 2 years a licensee must complete how many hours of continued education?
24
What is the fine levied on a broker for administrative misconduct?
$1,000
Which is a credit on the seller's closing statement?
Prepaid insurance
The doctrine of water usage in Arizona is...
Prior appropriation
Husband and wife own a title as community property, when the husband dies his share goes to...
His heirs according to his will
In Arizona the deed must be signed by the...
Grantor
When the deed of trust is paid in full the trustee issues:
Deed of re-conveyance
Without the public report a sub-divider can...
Take lot reservations
Real estate commissions are set by...
Negotiation
To find out if a property has a mechanics lien one would...
Check the county public records
On a land contract the statutory redemption period is
A specific statutory time period
If a vendee has paid less than 20% deposit to the vendor and now is in default, how long would he have to repay the vendor?
30 days
You purchased unimproved land without inspecting it, how long would you have to rescind?
6 months
Who appoints the real estate advisory board?
The govenor
A verbal lease for 6 months is:
Enforceable
What happens to a listing if the listing expires while the seller is in negotiations to sell?
Listing is extended because it is implied by negotiations
A gas station has been at the location for 20 years and now is functioning in a residential area, what is this an example of?
Nonconforming use
What is the best recorded legal description for a subdivision?
Lot and Block
An agent is taken to court for a property owned by 4 people in one transaction, how much will the recovery fund pay out?
$90,000
What term is not used in a deed of trust foreclosure?
Redemption
An affidavit of legal value is used:
To establish what was paid for the property
Where are all recorded titles kept?
County recorders office
A mechanics lien takes priority...
Date work began
Which one of these would be second in line given this information?
2nd year of property taxes
State usury laws would set:
Interest rates
How many days notice must a landlord give to enter your apartment?
2 days
A property management agreement does not deal with
Building age
A sub-divider must give a purchaser...
Ingress and egress
A listing can be canceled by
Mutual agreement
Right of survivorship means
No probate
A listing agreement is
An employment agreement
The agency relationship between a broker and her salesperson is
General agency
Regarding prorations in AZ the day of closing belongs to:
Buyer
The non-disturbance clause benefits who?
The lessee
Upon passing the State real estate exam a student must activate their license within...
1 year
To collect a real estate commission one must be licensed at
Time of sale
The Superfund Amendments and Reauthorization Act (SARA) amended:
CERCLA
In AZ, who would not be entitled to the homestead exemption?
A family corporation
By Arizona law you are a sub-divider if you own or have owned how many lots in a single platted subdivision and offer any number of them for sale?
6
What is the time period that property managers have to keep residential leases?
1 year after expiration of the lease
How would a corporation hold title to property in AZ?
Severalty
If the vendee does not redeem himself in the period required by law on a land contract, what is the vendor allowed to keep?
Nothing, because all money received as a deposit must be returned to the vendee
When the husband sells the community property without the wife's permission the contract is...
Void
When is transfer of title valid?
When it is delivered and accepted
The property tax is $1275 a year and the closing is March 14. Prorate this buyer and seller based on a statutory year and the day of closing belongs to the buyer
$258.54 credit to buyer
In AZ property taxes are paid
Twice a year
Which liens are paid first in AZ?
Property taxes
An affidavit of disclosure would have to be provided by the seller to the buyer in which of the following situations?
The property being purchased is 5 acres of country-zoned commercial property
In Arizona a broker can collect commissions from both buyer and seller if:
Both parties give their informed written consent to dual compensation
When a document is recorded, what type of notice is given?
Constructive
The assignment of rents clause protects:
Beneficiary
An abstract of title is best described as:
History of title
A fair housing violation must be filed with the Arizona Attorney General within:
1 year
If an evicted tenant does not remove his or her belongings, then under summary process the belongings of the evicted tenant may be:
Held by the landlord for 14 days
In Arizona a tenant has how much time after receiving written notice from the landlord to pay past due rent and any resulting penalties?
5 days
Which one of the following enforces Arizona's environmental laws?
ADEQ
Asbestos
A long, thin, fibrous silicate mineral with insulating properties, which can cause cancer when inhaled. Does not have to be removed from schools or buldings
Radon testing is mandatory when
Never
Superfund site
A material fact that must be disclosed
Lead based paint disclosure is necessary if a home is built before
1976
A perc test is used when
Septic tank is to be installed
Ownership rights of land bordering non-navigable rivers and streams are known as
Riparian rights
What is the distance in the perimeter of a section?
4 miles
Section 31 will be found in what corner of a township?
SW
A quarter of a quarter of a section is an area of?
1/4 mile by 1/4 mile
How many members are on the advisory board?
10
The advisory board consists of
2 real estate brokers, 3 residential licensees (one being a property management broker)m 2 sub-dividers, and 3 public members
After filing a mechanics lien, a contractor may enforce it by filing a suit within...
6 months
A tenant skips out on her last scheduled monthly payment on a one year lease. In Arizona the landlord may do what?
Deduct the rent due from security deposit
When a broker moves his office, how long does he have to remove his sign?
Immediately
A broker goes on a cruise for 10 days, who can be left in charge?
Any real estate licensee employed by the broker
No criminal, civil or administrative action may be bought against a licensee for failure to disclose which of the following?
Property was a site of natural death or suicide
Who must be licensed?
Salesperson working for a land developer
A notice of foreclosure under a deed of trust is given by whom?
Trustee
The two classifications of water in Arizona are:
Ground and surface
In Arizona, how long does a purchaser have to rescind a time-share contract?
10 calendar days
Which is not recognized in Arizona?
Tenancy by entirety
In Arizona the prescriptive period of time to acquire an easement is:
10 years
To be eligible for recording in Arizona, a deed must be:
Acknowledged
A normal Arizona title search goes back:
To the recording of the patent
If the HOA has less than 50 units...
The seller is obligated to provide copies of the CC&Rs to the buyer
In a lien theory state the Trustor is the:
Borrower
When there is a power of sale clause used:
There is a non-judicial foreclosure
If a licensee has a dispute with her broker, she must:
File a complaint in civil court
What is the meaning of constructive eviction?
Tenant moving out of apartment due to uninhabitable living conditions
The Arizona Department of Financial Institutions requires licensing and regulates:
Escrow companies
A married couple put an offer on a house. Their broker is unable to contract the listing broker for over 24 hours. What can the buyer's broker do?
Present the offer directly to the seller if the seller gives written permission
According to the Arizona Residential Landlord and Tenant Act (ARLTA), the landlord:
Cannot charge a security deposit of more than 1 1/2 times the monthly rent
Improved land means:
A structure is or will be built within 2 years
A subdivision is:
6 or more parcels of land improved or unimproved, any of which are less than 36 acres each
Un-subdivided land is:
6 or more lots improved, all of which are 36 acres but less than 160 each
A real estate broker representing the seller knows that the property has a cracked foundation and that its former owner committed suicide in the kitchen, the broker must disclose:
The cracked foundation but not the suicide
Is a broker required to have a trust account?
No
A property manager must place all trust money in the trust account:
Within three days of receipt
Property management agreements (Broker & Owner) must be kept for:
5 years
The statutory redemption period for an Arizona property tax foreclosure is:
3 years
The Arizona tax lien foreclosure sales are held:
Every February
Which of the following is not a protected class under the Arizona Civil rights act?
Sexual preference
If a broker violates the licensing law that results in a financial loss by a consumer, how long does the consumer have to file a lawsuit and notify the Real Estate Commissioner to protect the consumer's right to collect from the Real Estate Recovery Fund?
Five years after the alleged violation occurred
The on-site property manager for royal Apartments is responsible for negotiating leases solely for these apartments. In this situation, the on-site manager:
Is exempt from the licensing requirements
What type of agency relationships are recognized in Arizona?
Seller agency, buyer agency, disclosed dual agency, and subagency
Licensing law requires that each employing broker:
Keep transaction records for at least five years
The minimum period of time that a property manager must be used by a trespasser who wants to acquire title to a property through adverse possession is:
10 years
All of the following methods may be used in Arizona as evidence of the condition of title to real property except:
A Torrens certificate
Three brothers want to buy a cabin in the mountains. Each is contributing a different amount of money toward the purchase. Which of the following methods of ownership would allow their unequal contributions to be recognized?
Tenancy in common
How many people must witness the signature of the maker of a formal will and then sign the will to that effect to fulfill the legal minimum?
Two
A property has a loan secured by a trust deed. Once the "notice of trustee's sale" has been recorded, the owner of the property may stop the foreclosure process:
Until 5:00 pm on the day prior to the scheduled sale under the right of reinstatement
What is the maximum rate of interest that can be charged on a loan secured by real property before the rate is considered usurious?
There is no limit
How often is the assessed valuation of real estate adjusted by the county assessors?
Annually
A parcel of property may be sold for unpaid real estate taxes when such taxes are delinquent for:
At least two half-year payments
Signage is properly affixed at the main entrance to the brokerage office and each branch office and is in clearly visible lettering. The rule of thumb for the size of the lettering is?
1 inch
The broker keeps all employee records for a period of how many years after termination?
5 years
Each property management agreement entered into by the brokerage may have but not mandatory:
An automatic renewal with at least a 30 day advance written notice
All property management financial records are kept for a period of how many years?
3 years
Owner occupied real estate is taxed at what rate on the assessed value?
10%
For how long must you first prove an assured water supply to obtain a public report in an AMA?
100 years
How much is the transfer tax on real estate in Arizona?
There is no transfer tax in Arizona
How long shall a real estate school maintain all records for each student attending?
5 years
In Arizona, if you die without a will or heirs (escheat), the state will sell your property and keep the money for how many years in case an heir materializes?
7
Wetlands account for how much of Arizona land?
Less than 1%
The only navigable river in Arizona is the:
Colorado
In regards to an apartment finders fee, the maximum credit towards a tenants rent is?
$200
At what website can a tenant download a copy of the Arizona Residential Landlord & Tenant Act (ARLTA)?
Arizona Department of Housing
The current market value of a property is $350,000 and it is assessed at 10% of its current market value. What is the amount of real estate tax due if the tax rate is $3.50 per $100 of assessed value?
$1,225
The designated broker reviews, dates and initials all employment agreements, sales contracts, leases (as applicable) and similar documents within how many days of execution?
10 business days
Unlicensed personal assistants and other unlicensed employees receive compensation based on:
Their work
The broker removes interest earnings in a trust account at least:
Every 12 months
Property management finder fees paid are kept for how many years?
3 years
Which of the following has the highest assessed tax rate in Arizona?
Vacant shopping center
When you enter a branch office which of the following is correct?
The branch office license is prominently displayed
The Superfund Amendments and Reauthorization Act (SARA) amended:
The Comprehensive Environmental Response Compensation and Liability Act
The Homestead exemption in Arizona would not apply to who?
A family corporation
What does the term "Hypothecation" mean?
Pledging personal or real property for collateral without giving up possession
When a double escrow is used:
All parties must be informed
The mortgagee is selling the mortgage to a third party and the purchaser wants to be assured of the amount and terms of the mortgage and that the mortgagor acknowledges the full amount of the debt. Which of the following would be used?
Estoppel certificate
Which one is not a leasehold estate?
Life estate
What type of ownership holds the most liability for a brokerage?
Sole proprietorship
When a septic tank is present and must be inspected within 6 months of closing, who, if anyone must pay?
Seller
A salesperson wrote an offer with her buyer while the broker's license was expired. When the broker's license was renewed what was the outcome?
Neither the broker nor the salesperson receives commission
A non-resident license applicant must consent to:
The appointment of the real estate commissioner as agent or attorney-in-fact
If a property is located in an "Active Management Area" (AMA), how much water supply would a sub-divider/developer have to prove to the commissioner in order to receive a public report?
100 years
The property manager is transferred with a General Warranty Deed and a mechanics lien is filed on the property 30 days after closing. Who would the new owner pursue for a settlement?
The Seller
The only navigable river in Arizona is the
Colorado
Which of the following sales is exempt from a public report?
The sale of 160 acres or more, the sale of six lots or more to the same buyer in one transaction, and the sale of commercially zoned parcels
In a judicial foreclosure, which of the following is true?
There is a statutory redemption period, a lawsuit is filed to obtain a court order, the home is auctioned to the highest bidder
An investor bought a tract of land for $320,000. A year later the investor divided the tract into four parcels and sold each for $92,000. What rate of return did he make?
15%
A three year lease agreement provides for rent of $800 a month in the first year, $1,000 a month in the second, and $1,200 in the third would be an example of a...
Graduated lease
Mary and Jack started a brokerage together. Jack made a mistake that resulted in a lawsuit. One of the two had a large sum of money that had to be used to pay the lawsuit. What type of ownership did Mary and Jack have?
Joint venture
For what purpose does the title company issue a title commitment?
To insure the title will be covered
If the capitalization rate in the income approach to appraising is lowered the value of the property will...
Go up
What does the acronym D.U.S.T stand for?
Characteristic of value
The buyer's agent receives an earnest deposit check from her buyer, the agent should:
Give the check immediately to her designated broker
Arizona has a new law (SB1306) that is now going into effect regarding bed bugs. The new law:
Prohibits landlords from renting units known to have current bed bug infestations, prohibits tenants from moving items into buildings if they are known to be infested with bed bugs, and requires land lords to provide bed bug educational material to existing and new tenants
A tenant must be aware of all the rules and regulations:
Before signing the lease
If the landlord does not want the tenant to remove any trade fixtures:
The tenant has the right to remove them before the lease is over
Regarding a mechanics lien a contractor must:
Give the owner a 20 day preliminary notice before filing the lien
What type of advertising does not require your broker to manage?
A salesperson's personal FB page
Under AZ law, any person who acts as a real property securities dealer must...
Be registered as a securities dealer or salesperson
Salesperson Donna has entered into a 90 day "Exclusive Right to Sell" listing with Seller Steve. The listing has expired three days ago and Seller Steve has just sold the home on his own to someone who has seen the home while it was listed. What effect does this have on Salesperson Donna?
The salesperson would be entitled to the commission if an "after expiration" clause was used in the listing agreement
The real estate broker personally owns six investment properties. The real estate broker has major cash flow problems and would like to auction all of the six investment properties with the help of an auctioneer. Does the auctioneer have to have an AZ real estate license, even though the real estate broker will be standing next to the auctioneer and sign all paperwork?
Yes
If you lose your license because money was paid out of the recovery fund to cover your wrong doing in a sale, how can you obtain your license again?
You must pay back the recovery fund and re-apply for your license
A buyer purchases a property and at closing discovers that there is no access (no way in or out) to the property, what kind of contract do they have?
Voidable
When a broker receive an earnest deposit from her buyer, when must it be deposited into a trust account?
Within 24 hours
If your AZ real estate license is not renewed on time then during the 1 year grace period it is considered:
Expired
Can you charge a pet deposit if your rental complex does not allow pets and you rent to a disabled person with an assisted animal?
No, you cannot charge a pet deposit under any circumstances
A Sub-divider is planning to build on existing lots. Which would NOT be a consideration of "Depth of Water" for an Assured Water Supply?
An affidavit of usage by the homeowner
When do the Anti-Deficiency Statutes apply?
The property at issue must be a duplex or a single family resident, the real property must be two and one-half acres or less, or the loan at issue must be a purchase money mortgage
Which of the following is true regarding grandfathered irrigation rights?
They run with the land
If the commissioner pays from the real estate recovery fund any amount in a settlement of an applicant's claim toward satisfaction of a judgement against a broker or salesperson, the license of that person shall automatically be...
Terminated
According to the new "Bed Bug Law", landlords must provide information to:
Only multi-unit rental dwellings
Can a real estate agent sign for a seller at closing?
No, licensee can't sign for the client and bind them to a contractual agreement
The agent has a listing with the seller that states "90 listing and 90 days after or until home is sold", is this a valid listing?
No, listings must have a beginning and an end date
Can an employee be a signer on a property management trust account?
Yes, if the employee is a direct employee of the broker
The affidavit of legal value must be signed by:
Buyer and seller or their agents
According to Arizona's Ground Water Act of 1980, which of the following is NOT true?
A new subdivision scheduled to be built in an Active Management Area can obtain a public report without a certificate of assured water supply
A "beneficiary deed" has been recorded and the property owner died before closing without a will. What happens?
The contract is still binding and the beneficiary needs to convey the property in accordance with the contract
A property has a loan secured by a deed of trust. Once the notice of trustee's sale has been recorded, the owner of the property may stop a foreclosure process...
Until 5:00 pm on the day prior to the scheduled sale under the right of reinstatement
What is the meaning of a Fee Tail estate?
An estate in land that is limited to a fixed line of succession or blood relatives and is not allowed in Arizona
When would a phase 1 environmental audit NOT be required?
In the sale of a residential property
Water which seeps through the earth but is not part of a defined underground waterway is called...
Percolated water
A homeowner contracted with ABC Construction Company put a new deck on her house. They began work on May 1 and finished June 1, but they were never paid. On July 1, the homeowner sold her house to a buyer who received a mortgage loan from Country Bank and a mortgage loan from City Bank. City Bank recorded its mortgage on July 1 and Country Bank recorded on July 2. ABC Construction Company recorded its mechanic's lien on July 3, what is the priority of liens?
ABC Construction, City Bank, Country Bank
The buyers gave their agent a promissory note as earnest money along with the purchase agreement. Who should the promissory note be made out to?
Seller
Which of the following would NOT be entitled to a homestead exemption
Family trust
The seller is selling his/her house, what needs to be disclosed to the buyers?
Superfund
In a purchase contract, all of the following must be included...
Starting date, closing date, seller's signature

Commission split does NOT need to be included
If a couple are getting a divorce and the husband signs a year lease, the lease is:
Legal and enforceable
All of the following would void a homestead:
Filing an abandonment, owner moves out, property is sold
Name the hazardous substance which is highly friable and was banned in 1978
Asbestos
Out of: mechanics lien, IRS lien, second year property taxes, HOA lien... Which would be second in line of priorty?
Second year property taxes
A husband and wife are buying a house in AZ and have not declared how they are going to take title. In this case, the type of ownership they will have is:
Community property
Which of the following is the exact classification of familial status:
Families with children under the age of 18 living with them
Which of the following would cause mold growth in a home?
Humidity
A gas company has owned a property from 1950 to 1985 and eventually sells it to a private party. In 2012 the private party signs a contract with a buyer. A phase 1 inspection is ordered and comes back with the land being polluted. Who is responsible for cleaning up the property?
The seller, gas company, and state of AZ
Which of the following would be the best method for appraising a vacant land?
Market data approach
A tenant moves out of a property with $1250 in damages. The tenant has a $1000 security deposit and leaves behind a $250 gaming system when moving out. The tenant subsequently demands to have the deposit and gaming system returned. What is true?
Landlord has rights to security deposit, tenant has rights to gaming system
For a married couple, which of the following would be allowed under AZ's Community Property Laws?
A 6 month lease with only the wife's signature for a child going off to college
A married couple in AZ want to purchase a home with only the wife being the sole owner. What must the husband sign for this to be accomplished?
A disclaimer deed
If the deed to the conveyance of a property is not recorded, then the deed is...
Valid
The broker and his salesperson have a few deals already in escrow; however, the broker's license is now suspended. What happens to the commission?
Both the broker and salesperson will receive commission
A property manager receives a nonrefundable cleaning fee from the tenant. What must the property manager do with this money?
Deposit it in the property manager's operating account and deposit it in the property management trust account to hold on behalf of the owner
A real estate licensee renews her license but two weeks later the ADRE notified her that she did not complete the renewal requirements. Since her renewal, the agent has a couple of transactions in progress. Will she be entitled to commissions on these transactions?
Yes, she is entitled to commissions on transactions before her notification of termination from the ADRE
How often is the assessed valuation of real estate adjusted by the county assessor?
Annually
When would a broker not be in violation if one of his agents violated the "commissioner's rules"
The broker notified the commissioner immediately
Which of the following would NOT be disclosed on a terminate/wood inspection report?
History of wood eating pest infestation of adjacent property
If a person records a lien that is not valid (such as an acquaintance of the property owner making up a fictitious reason to file a lien), the remedies the property owner has is:
$5,000 or triple damages whichever is greater
If an invalid lien is filed in good faith or without knowledge or reason to know it is invalid the court can still impose what penalities:
$1,000 or triple damages whichever is greater if the holder refuses to release the lien in 20 days after written notice
The taxes that are levied to fund the Central AZ Project are paid by:
The tax is funded by the residents of Maricopa, Pinal and Pima counties and will show up as a line item on the individual's tax bill
Who must sign to mutually terminate a purchase contract?
Buyer and seller
Does a personal bankruptcy cancel out a homestead you hold on your primary residence?
No because the homestead protects equity in your home
According to the AZ Residential Landlord Tenant act, if Bobby fails to pay his rent in time, his land lord can legally
Issue a 5 day pay or quit notice
A 120 degree heat wavehas just hit AZ and the tenants A/C unit is broken. What should the tenant do?
Vacate the property because it is inhabitable
Jackie Mayson has signed a purchase contract to buy a condo from the original owner who was allowed a 5 day right of recession. How long will Jackie have to cancel her contract without any penalty?
She may not cancel the contract
What is recorded at time of closing?
Deed and Trust
A person has 21 acres of land in an area not allowed for subdivisions. He plans to break the land into lots to build properties on it. What is the maximum parcels the person can break his land into without violating laws?
5
Fidicuary
Care, Obedience, Loyalty, Disclosure, Accounting (COLDAC)
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