Real Estate Exam Preparation: Comprehensive Guide, Exams of Advanced Education

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HOGAN FINAL EXAM COMPLETE UPDATE

All considered to be renewable water sources except - Deepground water Outside of AMA public report must include - Water adequacy report Arizona grandfathered water rights - conveyed with property When a property has a well is sold what must be sent to ADWR? - Transfer of well right If a property lies within boundaries of the areas in which water rights are being adjudicated owners must: - file to be included in court decision Asbestos - encapsulation A salesperson sold property out of state. The sales person can legally be paid by: - The employing broker If a broker sells his home "fore sale by owner" what must be on the sign? - owner/agent Listing expires-owner on vacation? - Remove sign and wait until the owner returns Which of the following is not part of a land disclosure affidavit? - Appraisal An agent must submit all new offers to the owner until? - The close of escrow How many continuing hours of education are required? - 24 every two years A title report discloses that a property has 3 years of delinquent property taxes, a first deed of trust and IRS lien, which has 2nd highest priority? - Deed of trust Anonymous buyer= - or nominee Promissory note - acknowledgment of debt Which of the following items is NOT normally found in the note? - description of collateral unlike kind property - boot timeshare - 12 or more units-can cancel contract within 10 days

After a lease expires tenants are living in the premises without the landlords consent, tenants are - tenants at sufferance In Arizona the tax assessment rate on a single family owner-occupied come is - 10% Which of the following would not reveal insurance claims or losses related to specific property or claimant? - Loss payee The amount of earnest money is determined by the - buyer/seller When contracting to buy a new home, the agreement usually calls foe the earnest money to be

• deposited in the sellers business account An escrow, once established, is subject to rescission by - an agreement between the buyer and the seller An agent lists a home during the summer months. The sellers tells the agent that a new heating system was installed five years ago. What should the agent say to a prospective buyer? - "if you are concerned you should have it inspected" A licensee exclusively represents a seller. During the home inspection the inspector fails to notice a crack in the swimming pool. The seller instructs the agent not to disclose the information about the crack. In this situation which of the following is correct and why? - The licensee must disclose the crack because of the duty to disclose all material defects A person named in an insurance policy who will receive the insurance proceeds if the property is damaged - the payee A property governed by a homeowners association of 50 or more units has a patio cover which was built in violation of the association declaration (CC&RR's). Prior to closing, the association gave notice to the buyer regarding the violation. After the close of escrow, which of the following statements is correct: - the patio cover is in violation of the association's rules and the buyer can be forced to remove it Which would be considered illegal property management activity? - A licensed associate broker managing property directly for an investor A property management agreement must contain all of the following items except - written registration of prospective tenants a broker who does property management is - a general agent The main objective of a property manager should be to provide the owner with - the highest net return on the amount of capital invested

A property management agreement is a contract between the - broker and property owner Distraint - placing a lien on a tenant's personal property to collect back rent rent-to-own - option A salesperson can buy property listed with his or her broker when the salesperson - discloses the intention to the owner in writing As the salesperson in about to present an offer to the seller another offer for the same house comes into the office. the agent should submit the: - second offer at the same time A salesperson is charged with the responsibility of - obtaining all pertinent facts regarding a property he or she lists What is the max age of public report in order to qualify for a subsequent owner - 5 years What does the high bidder receive at a judicial foreclosure sale? - Certificate of sale Which article of the Arizona Constitution created the State of Trust Land? - Article X(10) If an owner improves a property, a licensed contractor is required to be used in all of these situations EXCEPT if the property - is owner occupied for more than one year Arizona is considered to be a - Lien theory state In title theory state - mortgagee retains title, legal title is conveyed to the lender In what situation would a short sale be likely - the loan balance is great than the property value Bank owned property - REO 3 methods of land description - Metes and bounds, recorded plot or lot & block and rectangular survey or government survey In purchase money loan which of the following provisions would not be a benefit to the seller? - Non-recourse clause tennis player-no steady income has a good down payment - seller carry back loan FNMA - buy loans at discount from lenders Applied agency is established through - voluntary and intentional acts of the parties

failing to disclose dual agency - violates licensing laws If an agent holding an open house openly discusses comparable properties in the area with a potential buyer it creates - implied agency A salesperson refers his buyers to ABC mortgage company and 3 different buyers use the company. A month after al the properties have closed the salesperson receives a $125 referral fee from the Mortgage company broker. Which of the following statements is true? - Both the sales person and the mortgage broker are violating the Real Estate Settlement and procedures Act(RESPA) Regarding comparables an appraiser would disregard all of the following sales except a sale - at arms length The city wants to create a zone for green overlay in a blighted area. Which of the following is correct? - The city may acquire the property by paying just compensation to the owner only after the property is condemned The buyer makes monthly payments to the seller but does NOT receive title until the full balance is paid off. This is usually called a(n): - installment sale contract Who pays for property taxes and assessments under the terms of net lease? - Lessee In a recorded plat and land description, the item recorded is the - survey Map If a sales person representing a buyer works in one offie and a broker representing a seller works in a branch office under the same designated broker, the buyers agent cam - inform the buyer that they can get an inspection what authorities an individual to sign or execute a contract on behalf of another? - Power of attorney A seller enters into an exclusive right to sell listening with a broker who has some subagents. Both the broker and sub agents show the property extensively but the seller finds the buyer directly. - the listing broker is owed a commission If agent A takes an open listing for 6 months on March 1st and agent B takes an exclusive right to sell listing on March 15th for 3 months but agent A finds a buyer on April 15th, what may occur? - Seller may owe both A landlord of a residential property must give the tenant all of the following except - a copy of land-lord tenant act

In AZ taxes become a lien against real property on - January 1st Real Estate taxes are due - March 1st and October 1st A lien is sold to recover delinquent taxes. The statutory redemption period after the tax foreclosure sale is - 3 years The real estate sales person license would automatically be terminated - upon settlement form of recovery fund who is responsible for latent defects(hidden defects)? - Seller If a broker changes or abandons the location of the business without notifying the Arizona Department of Real Estate, the brokers license is - automatically canceled Vendor - seller Real Estate Advisory Board (REAB) is appointed by - the governor All of the following individuals can collect from the Recovery Fund except a - licensee An appraiser is estimating the value of a commercial site and notes the is "excess land"- excess means: - the is land which not needed foe the highest and best use of the site A release clause is normally found in a - Blanket loan American with disability act(ADA) - prohibits descrimination against persons with disabilities by requiring equal access to public accommodations and all comercial properties to meet requirements. While making a listing presentation to a seller, a licensee is also considering purchasing the property. In this situation does the agent need to disclose their intentions to the seller? Why or why not. - Yes because it may have an impact on the owners decision to list with the agent A tenant gives notice of hazardous material on their property to the landlord. Within how many days must the landlord take action to cure the problem before the tenant can terminate the lease? - 5 days A dedication is best defended as - a developer or individual giving property to the state If an agent had fiduciary duties to the client, what duties does the client have to an agent? - Compensation, indemnification and performance

After the seller has accepted the offer, the salesperson must immediately deliver a copy of the signed agreement to the: - buyer A commercial property is sold at a foreclosure sale for 10k less than what is owed. To recover the loss the lien holder may: - sue the morgator The mortgage foreclosure sale did not produce enough to satisfy the debt. Why could the mortgagee do? - File for deficiency against the borrower What is the redemption period of after a non-judicial foreclosure of a trust deed? - There is no redemption A monthly payment is due on Jan 1st and has not been received by January 7th. In order to begin a foreclosure the beneficiary must - instruct the trustee to take action A contract to sell land or an agreement for sale is also known as - vendors lien An older home is put up for sale and the owner doesn't tell the listing agent about the poor electrical wiring. When a prospective buyer comes to view the home and asks about the electrical wiring, the agent state that it is in "good working condition" the agent: - has made a considerable misrepresentation Puffing - overstatements of personal property misrepresentation - false statements of material facts which a party relies on to his damage Fraudulent Misrepresentation - occurs when a person intentionally misrepresents a fact latent defects - seller is responsible for A buyer asks the agent about the rate in an area. The agent responds that there is no problem when in fact the agent knows the rate is high. This is an example of - fraudulent misrepresentation A contract was singed by the buyer under duress is - voidable by the buyer The greatest ownership right an individual can have is called - fee simple absolute Pest control managed by - Arizona Dept. of Agriculture Which of the following situations would automatically terminate a lease? - Expiration date of the lease Surrender and acceptance - mutual agreement to terminate a lease

Between the time the purchase contact is signed by the buyer and the seller, title changes hands, the contact is - voidable An owner sells the property himself and will NOT owe a commission in all of the following listings except in a - Exclusive right to sell listing The unlawful practice of restricting the number of loans in certain areas is known as - redling Federal Fair Housing Act of 1968 - no descrimination based on race, color, religion, national orgin, or sex Steering - Denying that housing is available for sale or rent, or channeling prospects towards or away from certain areas. Blockbusting - Encouraging owners to sell their properties because minorities are moving into a neighborhood Redlining - a lender altering terms and conditions for home loans in specific areas as a means of discrimination Advising a buyer how to take title could be considered - unlawful practice of law The Comprehensive Environmental Response Compensation and Liability act (CERCLA) established - Superfunds to bear costs of clean up Under the Comprehensive Environmental Response Compensation and Liability act(CERCLA) with regards to the cleanup of toxic waste spills, the current and previous owners have what type of responsibility - Strict liability A husband and wife purchase a piece of unimproved vacant land with a 60% loan. A year later they divorce and the husband signs a Quit Claim Deed to the wife and she records the document. Six months later the wife is unable to make payments and the lien is foreclosed. The property sells for less than what is owed. Who can the lender go after for the deficiency judgment? - both the husband and wife A deficiency judgment can be obtained against an owner of which of the following properties? - Owner occupied four-plex On a closing statement how would a buyers new loan be shown? - Credi to the buyer If a broker changes or abandons the location of the business without notifying the Arizona department of Real estate, the brokers license is - automatically cancelled

When does a broker need to notify the Arizona Dept. of Real Estate of a change in address - 10 days In which of the following situations would the lender have completed a foreclosure? - An REO transaction Mold can be associated with: - airtight windows What are construction feature has lead to an increase in mold? - Airtight walls and windows Open listing - Listing broker will only be paid a commission if he finds a buyer Exclusive agency listing - Listing broker will be paid a commission if he or any other broker find a buyer but not if the seller finds a buyer Exclusive right to sell listing - Listing broker will paid regardless of who finds a buyer. Multiple listing - a broker can just list a property for someone in MLS but not have to do any other work for the seller. Net listing - Seller agrees to take specified amount as net proceeds and broker may retain amount of sales price above net amount. Pocket listing - a listing that is not shared with other licensees in the company or in the MLS coming soon - property that will eventually be for sale but currently not available Exclusive listing - cooperation and compensation is not offered to other companies Dual agency - when one or more licensee in the brokerage firm represents both the buyer and seller in the same transaction. Written consent is required from both parties. (Consent to limited representation)