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540 Cards in this Set
- Front
- Back
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1% of the loan amount |
a point |
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160 acres or more of land |
Bulk land |
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2 examples of security instruments |
1) Deed of trust |
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2 exemptions from the Statute of Frauds: |
1) Leases under 1 year |
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2 types of consideration |
1) Value (i.e. money) |
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3 things a real estate agent must have to discuss the terms of a property listing. |
1) Price |
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4 duties the RE Commissioner does not do |
1) Set commission rates |
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4 examples of encumbrances. |
1) Liens |
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4 exemptions from the AZ Landlord and Tenant Act |
1) Mobile homes |
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4 general rules for agents in regards to all contracts |
1) May only fill in the blanks and make deletions |
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5 examples of property restrictions. |
1) Encumbrances |
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5 terms that must be specified in a property management contract. |
1) Terms of management |
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6 areas that licensed agents may work. |
1) Residential resale |
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6 requirements of a valid lease |
1) Legally competent |
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7 duties of the RE Commissioner |
1) Governs requirements of all agents |
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7 exemptions to Fair Housing Laws. |
1) FSBO |
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A 24-mile-square parcel that contains 16 townships |
Government check |
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A broker or a salesperson |
An agent |
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A broker who assists another broker in a real estate transaction. |
Cooperating broker |
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A broker who steps in to manage a brokerage if the designated broker is unavailable for more than 5 days. |
Temporary broker |
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A business with one owner. |
Severalty |
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A claim against one property owner as security for debt |
Lien |
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A common wall between properties |
Party wall |
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A competent and disinterested person who is authorized act on another person's behalf. |
Attorney in fact |
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A contract between a lessor and lessee that transfers the right to exclusive possession and use of the property for a specific period of time. |
Lease |
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A deed must clearly identify the land being conveyed by a… |
Legal land description |
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A document that is filed with the county when changing a mobile home from personal property to real property. |
Affidavit of affixture |
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A fee charged by one agent or broker to another for a client referral |
Referral fee |
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A firm name, company name, or entity. |
Employing broker |
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A guarantee in a deed that the grantor has the power and authority to convey title. |
Seisin |
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A judgment against a debtor's personal assets if the sale of real estate is not sufficient to satisfy the loan. |
Deficiancy judgment |
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A land owner's right to use available water based on a government administered permit system. |
Prior appropriation |
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A legal document in which title to a property is transferred by a borrower to a third party as security for the beneficiary. |
Deed of trust |
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A lien against a person and all the he owns |
General lien |
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A lien or charge against a specific parcel of property |
Specific lien |
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A life estate that protects a portion of the value of an owner's principal residence from unsecured creditors. |
Homestead |
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A loan covering more than one property. |
Blanket loan |
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A loan that combines both real and personal property. |
Package loan |
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A loan where the lender funds the full amount of construction. |
Construction loan |
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A loan where the mortgagor may borrow additional money up to the original amount of the loan, using the same property as collateral. |
Open-end loan |
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A loan where the seller covers some of the loan and is paid from the buyer (the seller charges highest interest and makes more money this way) |
Purchase-money mortgage |
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A map that only shows lot locations and size. |
Plat map |
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A mortgage based on the amount of equity already in the property |
Home equity loan (second mortgage) |
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A mortgage clause that determines the borrower's rights and duties if the loan is prepaid. |
Prepayment clause |
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A mortgage lien is an example of what type of lien? |
Voluntary lien |
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A negotiation between a buyer and seller with the goal of coming to an agreement (beginning point) |
An offer |
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A new loan that is larger than the original loan amount. |
Wraparound loan |
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A nonresident of AZ may cancel a membership camping contract within… |
7 business day |
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A piece of property intruding on another's land. |
Encroachment |
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A privately owned entity that provides services or accommodations to the public. |
Public accommodations |
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A real estate tax based on the value of the property. |
Ad valorem tax |
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A section is how many square miles? |
1 sq/mi |
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A set of principles of conduct to achieve a higher standard of conduct than that required by law |
Code of Ethics |
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A tax levied on specific parcels of real estate to pay for local improvements |
Special assessments |
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A trustee under a deed of trust would not be involved in… |
Collection of monthly loan payments |
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A violation of any of the terms of a lease. |
Breach of contract |
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A written instrument to secure repayment of a debt for real property. |
Mortgage (Deed of Trust) |
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According to Arizona's Revised Statutes, within how long for the contract date does a structure have to be built? |
2 years |
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According to the AZ Landlord and Tenant Act, how much notice is required to cancel a month to month lease? |
30 days |
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Act of 1890 which ensures fairness in the marketplace |
Sherman Antitrust Act |
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Act that prohibits descrimination against race & color in certain resal estate transactions |
Civil Rights Act of 1866 |
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Act the prohibits descriminatin against race, color, religion, national origin, hender, familial status & handicap in certain real estate transactions |
Federal Fair Housing Act |
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Act which requires full discosure of all costs involved in obtaining financing & closing on a property |
(RESPA) Real Estate Settlement Procedures Act |
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Acting on behalf of both the buyer and the seller |
Dual agency |
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Actions of a landlord that disturb or impair the tenant's enjoyment of the leased premises. |
Constructive eviction |
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Added gender as a protected class. |
Housing & Community Development Act |
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Adjustments in township and range lines that account for the curvature of the earth. |
Correctional lines |
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Advertisements placed by a sales agent that do not include the employing broker's name |
Blind Ads (illegal) |
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After passing the states exam, how long does a student have to activate his license? |
1 year |
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All monies (less outstanding debt) must be paid from the property manager to the owner within how many days of the termination of the PM agreement? |
35 days |
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Allows an owner to catch up on delinquent taxes after the tax sale. |
Statutory Redemption Rights |
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Allows an owner to catch up on delinquent taxes before the tax sale. |
Equitable Redemption Rights |
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Allows for prepoerties to be exchanged with other "like kind" properties. |
Section 1031 of the IRS Code |
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Allows the lender to demand immediate payment of the loan balance if the borrower breaks the terms of the note or mortgage. |
Acceleration clause |
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Allows the lender to make the entire loan balance due if title to the property is transferred. |
Alienation clause (Due-on-sale clause) |
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An acre equals how many square feet? |
43,560 |
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An activated licensee who doesn't have a broker will have his license placed in… |
Inactive status |
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An agency where someone is authorized to act on behalf of another with broad authority. |
Universal agency |
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An AZ resident buying a membership camping site may cancel within… |
3 days |
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An easement created in a landlocked situation. |
Easement by necessity |
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An exception to the zoning law. |
Variance |
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An item of personal property |
chattel |
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An offer that has been negotiated to a satisfactory state and is legally binding |
A contract |
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An unauthorized intrusion of real property reducing its value |
Encroachment |
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An unconditional promise in writing to repay a debt. |
Promissory note |
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Another name for landlord. |
Lessor |
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Another name for tenant. |
Lessee |
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Another word for an index lease |
Escalation lease |
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Another word for freehold. |
Ownership |
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Any claim attached to real property that may lessen its value or impair its use |
Encumbrance |
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Any document, claim, unreleased lien or encumbrance that my impair or invalidate the marketability of the title |
Cloud |
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Appears to be valid, but not legally enforceable. |
Unenforcable contract |
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Areas where water is limited and water management programs are needed. |
(AMAs) Active Management Areas |
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Authorized by a principal to perform a particular act. |
Special agent |
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Authorizes the use of the power of sale in a deed of trust. |
Beneficiary |
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Both parties promise to do something. |
Bilateral contract |
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Broker's discussion of commission rates with one another is called |
Price-fixing |
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Brokers who agree to share listing information. |
Multiple listing |
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Bronze markers, placed by the USGS, that serve as permanent reference points and indicate elevation |
Benchmarks |
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Building and construction standards for environmental and public health that are enforced by the state. |
Building codes |
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Butting against each other is |
Abutting |
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Changes in a parcel of land affect its value. |
Modifications/Improvements |
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Changes in assessed value to make statewide similarities. |
Equalizer |
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Characteristics of real estate |
1) Economic |
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Characteristics of the real estate market |
1) Supply/Demand and Price |
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Classes of a lien |
1) voluntary vs involuntary |
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Cleaning, painting, etc. |
Routine |
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CLUE |
Comprehensive Loss Underwriting Exchange |
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Combining adjactent lots into one larger lot, resulting in a greater value than the two together. |
Plottage |
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Commission is any amount above the net amount due to the seller. Broker sets the asking price. |
Net listing |
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Complete ownership |
Fee Simple Absolute |
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Completed |
Executed contract |
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Contain all essential elements |
Valid contract |
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Controls the nation's money supply |
Federal Reserve |
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Court case that upheld the Civil Rights act. |
Jones vs. Mayer |
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Denying loans based on ethnicity. |
Redlining |
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Detailed map showing geographic boundaries of individual lots. |
Plats |
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Disclosing all cost in financing & closing on a property is required by |
(RESPA) Real Estate Settlement Procedures Act |
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Dividing parcel into less than 6 parcels. |
Lot split |
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Does bulk land require a subdivision report? |
No |
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Does subdivided land require a subdivision report? |
Yes |
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Does unsubdivided land require a subdivision report? |
Yes |
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Duties of the Real Estate Advisory Board. |
1) Evaluation the commissioner |
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Easement that is attached to a person and ends with his death. |
Easement in gross |
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Easement that is attached to the land and passes with the land |
Easement appurtenant |
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East to west lines that mark a township's boundaries. |
Township lines |
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Elements of value |
(DUST) |
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Employs only one broker, but no commission is paid if the seller sells the property himself. |
Exclusive agency listing |
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Employs only one broker, who gets paid no matter who sells the property. |
Exclusive right to sell |
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Estimate the potential annual gross income of the property. |
Income apprach appraisal |
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Estimate the value of the raw land and how much it would cost to make the exact some property by figuring materials and labor. |
Cost approach appraisal |
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Exempt from property tax: |
1) Government buildings |
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Factors affecting the supply of real estate |
1) Availability of labor and supplies |
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Failure to display the equal opportunity poster can be construed as this. |
Evidence of discrimination |
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Federal regulation issues by the Federal Reserve Board to implement the Truth in Lending Act. |
Regulation Z |
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Fiduciary duties an agent has to his client |
(A COLD) 1) Accounting 3) Obedience |
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Figure the commission rate when given the sales price and the commission amount. |
'=commission amount / sales price |
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Figure the commission when given the sales price and the commission rate. |
'=sales price x rate of commission |
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Figure the monthly return when given a property's sale's price and the percentage of return. |
'=(sales price x percentage rate) / 12 |
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Figure the sales price given the commission amount and rate. |
'=commission amount / rate |
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Find the interest rate (%), given the loan amount and the interest paid on the loan. |
'=interest / loan amount |
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Fractional sections of a township are always on what 2 sides? |
North and West |
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Freehold (ownership) estates based on someone's life. |
Life Estates |
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Given the sales price and the percentage of profit, determine the original cost. |
'=sales price x (100% - profit) |
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Gives up property ownership rights |
Quit Claim Deed |
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Giving public notice |
Constructive notice |
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Government corporation that guarantees investors the payment of prinipal and interest on securities backed by federally insured loans. |
Ginnie Mae |
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Government's right to enact legislatoin for the health, safety and general welfare of the public. |
Police power |
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Gradual loss of land by nature. |
Erosion |
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Gradual subsiding of water, leaving more land. |
Reliction |
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Has a building or will be built on within 2 years |
Improved lot |
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Homeowner deductions |
1) Mortgage interest |
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How a building is placed on a lot in regard to its surroundings is called. |
Orientation |
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How are CC&Rs enforced? |
In court |
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How are members of the Real Estate Advisory Board selected? |
By the governor |
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How do you calculate GOI (Gross Operating Income)? |
GOI = Income minus vacancy and credit loss |
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How do you calculate NOI (Net Operating Income) |
NOI = Gross operating income minus expenses |
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How do you come to the appraisal value of a house when the comps are slightly different? |
Value each change and add/subtract that value from the comp (not the subject property) |
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How do you convert cubic feet to cubic yards? |
You divide by 27 (3x3x3) |
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How do you create an estate at will? |
Through a verbal agreement. |
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How do you determine pro-ration |
The number of days in the month minus the day before closing = the number of days the buyer pays for |
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How do you figure out how much interest is on a loan? |
Interest = Interest rate x principal x time |
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How do you figure the capitalization rate (CAP)? |
CAP = NOI divided by the value |
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How far apart are range lines? |
6 miles |
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How far apart are township lines? |
6 miles |
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How is an easement by prescription acquired? |
By adverse possession |
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How is Arizona tax rate expressed? |
Dollars per $100 of assessed value |
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How is assessed value calculated for a property? |
Full cash value x assessment ratio |
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How is tax rate calculated? |
Budget / assessed value of all properties in a district |
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How is the Real Estate Commissioner selected? |
By the governor |
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How long do you have to activate your license after passing the state exam? |
1 year |
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How long do you have to take the state exam after receiving an affidavit of completion |
10 years |
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How long does a general contractor have to file a mechanic's lien? |
120 days for the completion of the job |
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How long does a property manager have to supply a list of security deposits upon termination of PM contract? |
5 days |
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How long does an agent have to renew his license once it has expired? |
1 year |
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How long does the broker have to submit disclosures to the buyer? |
Within 3 business days |
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How long is paperwork kept in real estate? |
5 years |
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How long is the length of the term of a commissioner? |
Any length, but usually ends when a new governor is appointed. |
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How long is the term on the Real Estate Advisory Board? |
6 years |
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How long is the warranty required on new homes? |
1 year on structures and 2 years on mechanical equipment |
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How long may a temporary broker work if a designated broker becomes ill or dies? |
90 days, but this can be renewed for up to 15 months |
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How long must someone have an active license before applying to become a broker? |
3 out of the last 5 years |
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How many acres is 1 square mile? |
640 acres |
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How many base lines are there across the country? |
32 |
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How many continuing education hours are required to renew a real estate license? |
24 hours every 2 years |
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How many linear feet are in a mile? |
5280 ft |
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How many members are on the Real Estate Advisory Board? Who are they? |
9 (2 brokers, 2 residential brokers, 2 subdividers, 3 public members with no ties to real estate) |
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How many principal meridians are there across the country? |
36 |
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How many square miles are in a township? |
36 |
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How many witnesses are required for a formal Will? |
2 |
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How many years is a real estate license good for in AZ? |
2 years (through the end of the month that marks the 2 year period) |
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How much notice is required before actual eviction? |
5 days |
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How much notice must a landlord give to enter a premises? |
48 hours |
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How often must a code of ethics class be taken? |
Every 4 years |
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If a lender rejects a loan application, that lender must do what? |
Provide a written reason for rejection within 30 days |
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If a licensee terminates employment with one broker and finds a new broker, what must the licensee do? |
Fill out a hire form and submit to ADRE for a new license under the new broker. |
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If an agent doesn't complete his 24 hours of continuing education, his license will… |
Expire |
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If money is paid out of the Recovery Fund, what happens to the agent? |
His license is terminated for a minimum of 2 years, plus the funds must be repaid. |
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Imaginary lines that run north and south, used for plotting |
Principal meridians |
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Implies a higher standard of concern for what is right or fair for all parties involved |
Ethical |
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In a deed of trust, the impartial third party is called |
Trustee |
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In a lease, the right retained by the lessor |
Reversionary rights |
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In addition to 90 hours of training, what course is required for a broker's license? |
Broker Management Clinic |
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In AZ, non resident property owners are required to have this. |
A statutory agent within the state. |
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In Government Rectangular Survey, how many fractional sections are made by correctional lines? |
11 (1-6, 7, 18, 19, 30, 31) |
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In property management, this is "identification" that is required in the contract. |
Names of parties and address of the property |
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In property management, what are examples of fixed expenses? |
Taxes, insurance, salaries, etc. |
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In property management, what are examples of variable expenses? |
Repairs, advertising, supplies, etc. |
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Income taxes & judgments are examples of what type of lien? |
General lien |
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Inducing homeowners to sell by making representations that members of an undesirable class are moving in and will devalue their property. |
Blockbusting (Panic selling) |
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Insurance for Real Estate Companies |
Errors and Omissions |
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Interest paid by someone to entice them to build. |
Buydown |
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Involuntary ways to transfer title to real estate |
1) Descent |
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Know how to determine the number of acres when given distance. |
1 acre = 640 miles |
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Land and anything permanently attached |
Real Property |
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Land is indestructible |
Indestructibilty/durability |
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Land with 6 or more parcels of 36 or more (but less than 160) acres. |
Unsubdivided land |
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Land with 6 or more parcels under 36 acres each. |
Subdivided land |
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Largest property management organziatoin. Affiliated with NAR. |
Institute of Real Estate Management |
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Laws passed by states that limit the interest rates lenders can charge borrowers. |
Usury laws |
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Leasehold for a fixed period of time. |
Estate for years |
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Leasehold from period to period |
Periodic estate |
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Lender can change the interest rate under certain conditions |
Escalation clause |
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Lien created by the intentional action of a property owner. |
Voluntary lien |
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Lien created when a court ordered lien is placed against a property and files with the courts when the homeowner fails to pay a debt |
Judgment lien |
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Lien placed on your property for the labor and/or material rendered in the improvement of a property |
Mechanic's lien |
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Limitations on the use of property imposed by a past owner that is binding on future buyers. |
Restrictive covenants |
|
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Limits who has access to a person's credit history. |
Fair Credit Reporting |
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Lines that are 6 miles aparts and run north to south (parallel to the principal meridian) |
Range lines |
|
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Loans that fail to meet the requirements of the secondary mortgage market |
Non-conforming loans |
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Loans that follow the established guidelines of the secondary mortgage market. |
Conforming loans |
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Lot, Block, & Tract is conveyed using… |
A plat (map) of a tract |
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Made by agreement |
Contractual Lien |
|
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Made by law |
Statutory lien |
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Made by the courts |
Equitable live |
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Many buyer's brokers. Commission only to the one the finds the property. |
Open Buyer |
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May employ any number or brokers, but only owes commission to the broker who sells the property. |
Open listing |
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Means "buyer beware" |
Caveat emptor |
|
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Means "goes with the property". |
Appurtenant |
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Means undue delay. |
Laches |
|
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Measures risk for an investment |
Cap rate |
|
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Metes and Bounds means… |
Distance and direction |
|
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Missing one or more contract elements. |
Void contract |
|
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Mixing a client's and agent's funds. |
Commingling |
|
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Mortgage where you pay the principle and interest until it is paid off. |
Amoritized loan |
|
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Most commonly used lease in a residential property. |
Gross lease |
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Movable items, not attached to real estate |
Chattel/personal property |
|
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Must be given to buyers or renters of properties built in 1977 or earlier |
Lead-based paint disclosure |
|
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Necessary to become a REALTOR. |
Becoming a member of NAR (National Association of Realtors) |
|
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No buildings or plays to build within 2 years |
Unimproved lot |
|
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No two parcels are the exact same. |
Nonhomogeneity/Uniqueness |
|
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North to south lines that mark a township's boundaries. |
Range lines |
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Not yet completed |
Executory contract |
|
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One buyer broker. Gets commission no matter who finds the property. |
Exclusive agency buyer |
|
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One buyer broker. Gets the commission unless the buyer finds his own place. |
Exclusive buyer |
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One of the parties has the power to cancel the contract at will. |
Voidable contract |
|
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One party makes a promise; second party not obligated to act. |
Unilateral contract |
|
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One who supervises all activities of sales agents and is liable for their actions. |
Designated broker |
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Ownership by two or more people who own an undivided interest with right of survivorship. |
Joint tenancy |
|
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Ownership subject to terms and conditions. |
Fee Simple Defeasible |
|
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Parties show their intentions in words. |
Expressed contract |
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Parties show their intentions through actions and conduct. |
Implied contract |
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People's preference for certain areas. |
Situs/Area preference |
|
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Per the Truth in Lending Act, if one of these things is shown, all of them must be. |
1) Monthly payments |
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Permission to use the land of another for some limited purpose |
License |
|
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Permitted use of real property that no longer conforms to current zoning laws. |
Non-conforming use |
|
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Personal Property that is changed to Real Property by permanently attaching it |
Fixture |
|
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Personal Property used in a business or trade that is attached to real estate is |
Trade Fixture |
|
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PITI should not be more than 25 - 28% of the borrower's gross monthly income. |
Payment to income ratio |
|
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Place private restrictions on the use of real property. |
(CC&Rs) Covenants, conditions, and restrictions |
|
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Pledging property as security for a loan without giving up possession. |
Hypothecate |
|
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Prepaid expenses that haven't fully been paid |
Pro-rations |
|
|
Price-fixing is made illegal by |
Sherman Antitrust Act |
|
|
Principles of value (12) |
1) Anticipation 2) Change 3) Competition 4) Conformity 5) Contribution 6) Highest and best use 7) Increasing and diminishing returns 8) Plottage 9) Progression 10) Regression 11) Substitution 12) Supply and demand |
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Prior to getting a Commissioner's Public Report, what can a subdivider do to the land? |
Collect $5,00 as a lot reservation, but this is fully refundable. |
|
|
Property pledged as security for a loan or debt. |
Collateral |
|
|
Property tax liens are an example of which type of lien? |
Specific lien |
|
|
Protects employment and accessibility rights of individuals with mental and physical disabilities, including AIDS and alcoholism. |
Americans with Disabilities Act (1990) |
|
|
Provides an estimate of settlement charges |
Good Faith Estimate |
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Real estate broker receiving a client/customer from another broker. |
Referral (referring broker) |
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Real property is transferred by |
Deed (of trust) |
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Received upon competion of 90 hours real estate training and passing the school exam |
Affidavit of completion |
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Regularly scheduled maintenance |
Preventive |
|
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Regulates the relationship between a landlord and tenant (residential). |
Universal Resident Landlord and Tenant Act of 1973 |
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Renter intends to purchase the property at the end of the lease |
Lease to purchase |
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Repairs |
Corrective |
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Required elements of a contract |
1) Legally competent parties |
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Requirements of a mortgage |
1) Must be in writing |
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RESPA stands for |
Real Estate Settlement Procedures Act |
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Restricts the maximum number of houses per acre. |
Density zoning |
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Return on investment tends to be long term and stable. |
Fixity/Permanence of investment |
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Rule of dual agency |
Must be disclosed in writing |
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Rules for adverse possession |
1) Use |
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Rules for finder's fees |
1) Only paid to tenants |
|
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Rules for handling earnest money |
1) It is held in an escrow account |
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Rules of joint tenancy |
1) Equal partners |
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Rules of tenants in common |
1) Ownership % could be different |
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Rules to earn a commission. |
1) Must be licensed |
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Rules used by state law to determine how title to property will pass if the owner dies leaving no will. |
Descent |
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Says a licensee can fill out the real estate paperwork. |
Article 26 of the Arizona constitution |
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Security deposits are…_____...and cannot be spent. |
Trust money |
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Seeing the notice is called: |
Actual notice |
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Someone who has completed the requirements for a broker's license, but does not have the broker responsibilities. |
Associate broker |
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Standardizes landlord-tenant law and protects both parties. |
Uniform Residential Landlord and Tenant Act |
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State regulated fund used to pay purchasers of real estate who have suffered a loss due to actions or inactions of licensee |
Recovery Fund |
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Stipulates that the mortgage lien is void when the loan is paid. |
Defeasance clause |
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Substituting a new contract for an old one. |
Novation |
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Sudden removal of land by nature. |
Avulsion |
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Supply in given location is considered finite. |
Scarcity |
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Supports the designated broker in day to day operations. |
Managing broker |
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Taking undeveloped acreage and dividing it into smaller lots for sale. |
Subdividing |
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Tends to be concerned with accepted codes for good behavior or sanctions of a community & is related to feeling |
Moral |
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The 2 (general) responsibilities of a property manager. |
1) Generate income |
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The 3 types of easements |
1) Easement by necessity |
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The 4 classifications of liens. |
1) Specific |
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The 4 government powers |
1) Police Powers |
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The 4 property management classifications. |
1) Residential |
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The 8 duties of a property manager |
1) Generate income |
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The ability to enter a property |
Ingress |
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The ability to exit a property |
Egress |
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The act of brokerages working only with a certain type of customer or in a certain area in order to avoid competition. |
Customer allocation (Market allocation) |
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The act of setting prices for products & services for the purpose of controlling the market. |
Price fixing |
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The amount of a return on improvements eventually caps, leaving less return on investment. |
Increasing and diminishing returns |
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The amount of time a landlord has to fix problems in order to avoid constructive eviction. |
10 days |
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The basic unit of a township |
section |
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The borrower in a deed of trust |
Trustor |
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The borrower in a mortgage |
Mortgagor |
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|
The Bundle of Legal Rights |
(DEEPC) |
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The charge for the added cost of services (such as hooking up water and sewer) in construction |
Impact studies/fees |
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The charge for using another's money. |
Interest |
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The combination of actual notice and constructive notice. |
Inquiry |
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The conract conditioned on obtaining the results of specified inspections. |
Inspection contingency |
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The contract between the property and the broker (in property management). |
Management contract |
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The contract conditioned on the buyer's obtaining a mortgage |
Mortgage contingency |
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The contract conditioned on the sale of the purchaser's current home. |
Property sale contingency |
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The court annuls the contract and puts both parties to their original positions |
Mutual rescission |
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The court forces the defaulting party to go through with the contract. (i.e. the buyer may sue the seller to complete the sale) |
Specific performance |
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The court refrains parties from a certain act. |
Injunction |
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The definitive starting point in metes and bounds descriptions |
(POB) Point of beginning |
|
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The designation given to a property manager by the Institute of Real Estate Management. |
(CPM) Certified Property Manager |
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The estate that is the giver of the easement |
Servient estate |
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The external facing for an exterior wall is. |
Siding |
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The fee charged by the lender for making the loan. |
Origination fee |
|
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The first mortgage. |
Senior mortgage |
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The geographic location of any given parcel can never be changed. |
Immobility |
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The gradual addition of land by nature. |
Accretion |
|
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The initial event that lead to the purchase of a property. |
Procuring cause |
|
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The internal facing for an exterior wall is. |
Sheathing |
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The largest conventional loan owner. |
Freddie Mac |
|
|
The largest mortgage purchaser. |
Fannie Mae |
|
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The legal process that results in the tenant being physically removed from the leased premises. |
Actual eviction |
|
|
The lender in a deed of trust |
Beneficiary |
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|
The lender in a mortgage. |
Mortgagee |
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The level surface from which elevations are measured |
Datum |
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The limited right to use another's land. |
Easement in gross |
|
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The lines that run parallel to the base line. |
Township lines |
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The loan where the final (balloon) payment is the same as the original principal of the loan. |
Interest only (Term loan) |
|
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The loss of a right (or something of value) as a result of failure to perform on a contract. |
Forefeiture |
|
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The lowest part of a structure, usually beneath the ground. |
Foundation |
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The maximum allowed security deposit. |
1.5 times the monthly rent |
|
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The maximum value for a property is reached when it conforms to the surrounding land use. |
Comformity |
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The maximum value of a property is based off of what it costs to buy something similar. |
Substitution |
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The method of legal land description that begins at a well-defined point and then follows the exterior boundaries by directions & distances. |
Metes and bounds |
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The method of legal land description that uses points and angles? |
Metes and bounds |
|
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The method of legally describing land perimeters that uses principal meridians & base lines. |
Rectangular Government Survey |
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The mortgage loan where the payments involve the principal, interest, taxes, and insurance. |
Budget loan (the most common) |
|
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The mortgage rate changes at intervals. |
(ARM) Adjustable rate mortgage |
|
|
The new land that was added through accretion. |
Alluvion |
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|
The oldest method of legal description |
Metes and bounds |
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The one legal use that gives a property its greatest profitability. |
Highest and best use |
|
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The party that benefits from the easement |
Dominant estate |
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The person encumbered by the lien. |
Lienee |
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The person holding the lien. The one who benefits. |
Lienor |
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The PITI and long term debt should not be more than 36% of the borrower's gross monthly income. |
Debt to income ratio |
|
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The practice of refusing to make loans to purchase, construct, or repair a dwelling in a specific area. |
Redlining |
|
|
The process by which the government takes property. |
Condemnation |
|
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The process in which a bank takes a property back as a result of a default on the loan. |
Foreclosure |
|
|
The process of merging lots. |
Assemblage |
|
|
The property tax assessment ratio for commercial properties. |
25% |
|
|
The property tax assessment ratio for residential properties. |
10% |
|
|
The property tax assessment ratio for vacant land or agricultural properties. |
16% |
|
|
The RE commissioner immediately suspends a license if he feels the public health, safety, or welfare are in jeopardy. |
Summary suspension |
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|
The redemption period on a deed of trust following the trustee's sale is: |
Does not exist |
|
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The reference line from which east and west measurements are made. |
Principal meridians |
|
|
The reference line from which north and south measurements are made. |
Base lines |
|
|
The relationship between the amount of a loan and the appraised value of a property. |
Loan to Value Ratio |
|
|
The report protects the public by ensuring that buyers receive a complete and accurate disclosure of all material facts related to a subdivision. |
Commissioner's Public Report |
|
|
The rescission period on unsubdivided land. |
6 months if it isn't inspected, 7 days if it is. |
|
|
The reversion of property to the state or county. |
Escheat |
|
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The right of the government to charge its people to pay for the costs of government and area improvements. |
Taxation |
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The right of the government to take private property for "necessary public use" in exchange for compensation. |
Eminent domain |
|
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The right to egress and ingress refers to which easement? |
Necessity |
|
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The right to take back possession of a property if a lease ends |
Reversionary rights |
|
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The rights associated with navigable waterways. |
Littoral |
|
|
The rights associated with non-navigable waterways. |
Riparian |
|
|
The rights to anything above the land on a property |
Air Rights |
|
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The rights to everything above and below the land and its profits |
Mineral rights |
|
|
The rules for subdivided and unsubdivided land in Arizona is set by: |
Arizona Real Estate Code |
|
|
The rules of eminent domain. |
1) Public good |
|
|
The second, third, etc. mortgages |
Junior mortgage |
|
|
The secondary lender, established in 1938, that buys FHA, VA, & conventional loans. |
Fannie Mae |
|
|
The seller accepts a down payment, but then pays the rest of the loan. |
Land contract |
|
|
The statute of limitations to file a claim with the Recovery Fund |
5 years |
|
|
The steps to determining property tax. |
1) The gov't prepares a budget |
|
|
The strip of land separating one land use from another. |
Buffer zone |
|
|
The tenant may possess the property with the consent of the landlord |
Tenancy at will (Estate at will) |
|
|
The tenant wrongfully remains in possession of the property. |
Tenancy at sufferance (estate at sufferance) |
|
|
The time requirement for easement by prescription. |
10 years |
|
|
The type of lease typically used in retail operations |
Percentage lease |
|
|
The type of lease where payments start at a fixed rate, but the increase at set intervals. |
Graduated lease |
|
|
The type of lease where rent adjusts according to changes in a price index. |
Index (escalation) lease |
|
|
The type of lease where the tenant erects a building. |
Ground lease |
|
|
The type of lease where the tenant pays a fixed amount. |
Gross lease |
|
|
The type of lease where the tenant pays a percentage of his income, plus a gross or net lease. |
Percentage lease |
|
|
The type of lease where the tenant pays rent and most of the property charges. |
Net lease |
|
|
The type of loan where both principal and interest are paid during the term of the loan, leaving a $0 balance. |
Amoritized loan |
|
|
The type of responsibility shared between a property manager and owner. |
Fiduciary |
|
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The use of trust funds for any use other than their stated purpose. |
Conversion |
|
|
The value of a better property will be lessened by the presence of poorer properties. |
Regression |
|
|
The value of a poorer property will increase if it is near better property. |
Progression |
|
|
The value of a property may change based on a belief in a future event. |
Anticipation |
|
|
The value of an improvement on a property. |
Contribution |
|
|
This document signals the end of one ownership and the beginning of another |
Deed (of trust) |
|
|
Touching at any point is |
Contiguous |
|
|
Townships are divided into this many sections. |
36 |
|
|
Transfer of personal property is done with a… |
Bill of sale |
|
|
Transferring part of a lessee's interest for a portion of the term of a lease |
Subletting |
|
|
Type of lien created by law. |
Involuntary lien |
|
|
Types of leasehold estates |
1) Estate for years |
|
|
Types of zoning |
1) Residential |
|
|
Under the Fair Housing Act of 1968, it is prohibited to discriminate against |
Protected classes (Race, color, religion, national origin, gender, familial status & handicap) |
|
|
Unities of joint tenancy |
1) Possession |
|
|
Value over and above what is debt. |
Equity |
|
|
Voluntary ways to transfer title to real estate |
1) Will |
|
|
Ways a property manager cares for the premises. |
1) Preventative, routine, maintenance |
|
|
Ways to discharge (terminate) a contract |
1) Completion |
|
|
Ways to end a contract |
1) Discharge (terminated) |
|
|
Ways to manage risk |
1) Avoid the risk |
|
|
Ways to terminate a listing: |
1) Performance 2) Expiration 3) Abandonment by broker 4) Revocation by owner 5) Renunciation by the broker 6) Death, insanity, bankruptcy 7) Destruction 8) Mutual consent 9) A change in the property use 10) Eminent domain |
|
|
What 2 documents go to the Recorder's Office? |
1) Deed |
|
|
What act prohibits two real estate companies from working together to put a competitor out of business? |
Sherman Antitrust Act |
|
|
What are the 3 methods used to legally describe land? |
1) Government rectangular survey |
|
|
What are the 3 types of appraisals? |
1) Sales comparison |
|
|
What are the 4 tests of a fixture? |
1) How it is attached |
|
|
What are the 5 requirements to get a license from the ADRE (Arizona Dept. of Real Estate)? |
1) Complete 90 hour training |
|
|
What are the advantages to investing in real estate? |
1) The rate of return is usually high |
|
|
What are the disadvantages to investing in real estate? |
1) Lack of liquidity |
|
|
What are the economic characteristics of real estate? |
1) Scarcity |
|
|
What are the monetary penalties for noncompliance with Federal Fair Housing Laws? |
A minimum of $10,000 for the first offense. |
|
|
What are the physical characteristics of real estate? |
1) Indestructability |
|
|
What are the police powers? |
1) Zoning |
|
|
What are the protected classes under the Federal Fair Housing act of 1968? |
1) Race |
|
|
What are the requirements for easement by prescription? |
1) Adverse |
|
|
What are the tests for a fixture? |
1) Agreement between parties |
|
|
What are the things that only a licensed real estate agent can discuss? |
Price, terms, or availability of a property |
|
|
What changes must be reported to the ADRE within 10 days? |
1) Change of address |
|
|
What describes real property when it comes to converance documents that are accepted by the state courts? |
Legal land description |
|
|
What does an estate mean? |
The person has interest or tenancy in the property. |
|
|
What does CC&R stand for? |
Covenants, conditions, and restrictions |
|
|
What does PITI stand for? |
1) Principal |
|
|
What does PMI stand for? |
Private mortgage insurance |
|
|
What experience is required to be eligible to become commissioner? |
5 years real estate related (real estate, banking, title insurance, or mortgage broker) and 3 years administrative experience |
|
|
What happens if a licensee fails to renew their license in time? |
1) Sever the license |
|
|
What happens if a tenant leaves personal property after a lease? |
It becomes the owner's property. |
|
|
What happens to an agent's commission if he leaves the brokerage while the transaction is in escrow? |
He will still be paid, directly from the original broker |
|
|
What insures identity of real property in the future? |
Legal land description |
|
|
What is a deed? |
An instrument (document) |
|
|
What is awarded to the successful bidder in a mortgage sale. |
Sheriff's deed |
|
|
What is land? |
Surface + below + above + natural things attached |
|
|
What is not protected through homestead? |
Taxes and mortgage (because they are specific) |
|
|
What is real estate? |
land + artificial attachments |
|
|
What is real property? |
real estate + rights |
|
|
What is required as proof of a valid mechanic's lien? |
A contract (expressed or implied) with the owner's authorization |
|
|
What is required for a subdivider to sell the properties? |
Commissioner's Public Report |
|
|
What is required to legally convey any interest or estate in real property? |
Legal land description |
|
|
What is the difference between appraisals and CMA? |
An appraisal only compares the property to others that have sold. |
|
|
What is the major provision of the Statute of Frauds? |
Everything must be in writing |
|
|
What is the maximum amount for a civil penalty? |
$1,000 per infraction |
|
|
What is the maximum covered in homestead? |
150,000 |
|
|
What is the maximum paid from the Recovery Fund for multiple claims against one agent? |
90,000 |
|
|
What is the maximum payment made, per property, from the Recovery Fund? |
30,000 |
|
|
What is the maximum penalty for violating the Sherman Antitrust Act? |
$100,000 and 3 years in prison |
|
|
What is the minimum amount to be kept in the Recovery Fund? |
600,000 |
|
|
What is the of appraisal method to value raw land? |
Sales comparison approach (Market data approach) |
|
|
What is title? |
It is ownership (not a piece of paper) |
|
|
What is typically required of a buyer to successfully close escrow? |
1) Cash - Down payment, closing costs |
|
|
What kind of tenemant do you own if your property is landlocked and requires and easement of necessity? |
Dominant |
|
|
What makes a land contract different than all other loans? |
The seller keeps the title. |
|
|
What method of legal land description is most common in subdivision? |
Plat-of-survey (lot, black & tract) |
|
|
What must a subdivider file with the county clerk before working? |
A plat (map) of a tract |
|
|
What must be hung in all brokerages? |
An Equal Housing Opportunity sign |
|
|
What must be provided about all parties receiving any commissions? |
A disclosure |
|
|
What takes priority over all other liens? |
Property taxes |
|
|
What to the words "ad valorem" mean? |
"According to value" |
|
|
What type of lien is a charge against all of a debtor's real and personal property? |
General lien |
|
|
What word lets you know that you need to add two different dimensions (instead of continuing from the last measurement)? |
"And" |
|
|
When a broker gets a commission regardless of who sells the property. |
Exclusive right to sell |
|
|
When a licensee terminates employment from an employing broker |
Sever the license |
|
|
When a mortgage is sold to another lender |
Assignment |
|
|
When a tenant moves out without payment of rent. |
Abandonment |
|
|
When an owner requests that his property be purchased by the government because of damages caused by their actions. |
Inverse condemnation |
|
|
When an owner sells a property and then turns around and leases it. |
Sale and Leaseback |
|
|
When are commissions earned? |
A buyer is found who is ready, willing, and able to buy the property. |
|
|
When are commissions paid? |
At the close of escrow (once it's recorded) |
|
|
When are graduated leases used? |
1) For commercial tenants |
|
|
When brokers direct buyers to (or away from) some of their listings to change the character of an area. |
Steering |
|
|
When does a customer become a client |
Once a buyer-broker agreement has been signed |
|
|
When does the commissioner have to investigate a complaint? |
When it is in writing |
|
|
When is commission paid? |
During transfer of title |
|
|
When is the effective date of a mechanic's lien? |
When the work began. |
|
|
When making a real estate transaction, the seller is the |
client or principal |
|
|
When new buildings are completed and within code, this is given |
Certificate of occupancy |
|
|
When the buyer assumes the current loan with the same terms and conditions. |
Assumption |
|
|
When the lienholder causes the property to be sold so that the unpaid lien can be satisfied. |
Foreclosure |
|
|
When the right and interest is transferred to another. |
Assignment |
|
|
Where are rectangular government surveys mainly used? |
West of the Mississippi |
|
|
Where does a complaint filed for alleged violation of the Code of Ethics go? |
Grievance Committee |
|
|
Where will a judgment lien be recorded? |
With the county in the land records |
|
|
Which method of legal land description describes even the smallest parcel of land? |
Plat-of-survey (lot, black & tract) |
|
|
Which section of a township is generally reserved for schools? |
16 |
|
|
Who administers the Federal Fair Housing Law? |
(OEO) Office of Equal Opportunity |
|
|
Who are commissions paid to? |
Selling broker |
|
|
Who benefits from the assignments of rents clause? |
Beneficiary |
|
|
Who created the real estate code of ethics? When? |
NAR in 1913 |
|
|
Who does a real estate agent protect and promote the interest of? |
client or principal |
|
|
Who does not need a real estate license? |
1) FSBO |
|
|
Who does the real estate agent represent? |
The broker |
|
|
Who gets the earnest money? |
The broker |
|
|
Who is a life tenant? |
The person receiving the benefit from a life estate. |
|
|
Who is protected under the Fair Housing Amendment Act of 1988? |
Disabilities and familial status |
|
|
Who is the trustee in a deed of trust? |
The third party (usualy a bank, title company, or escrow company) |
|
|
Who must display equal opportunity posters? |
Brokerages, model homes, mortgage offices, other real estate related businesses |
|
|
Who must sign a lease? |
Lessor (landlord) and lessee (tenant) |
|
|
Who negotiates commissions? |
The seller (principal) and the agent (broker) |
|
|
Who pays a sales agent's compensation? |
Their employing broker |
|
|
Who performs real estate activites while employed by or associated with a broker? |
Salesperson |
|
|
Why must a mechanic's lien be recorded? |
To establish the position of the lien (time and place) |
|
|
Why would a seller accept an agreement for sale instead of a purchase money mortgage? |
The seller keeps the deed until the carryback is paid. |
|
|
With and easement, which estate benefits? |
Dominant estate |
|
|
With and easement, which estate has to give or serve? |
Servient estate |
