So in plain terms, a Purchase Agreement is the document buyers and sellers sign with all the terms and conditions of their transaction on it. Demand: This means the desire to buy and an ability to pay. Steven owns a property with natural gas located deep beneath the property. A blind offer in real estate is a purchase contract written by a buyer without seeing the property. The results of a percolation test are required to properly design a septic system. A broker receives an oral offer over the telephone. Commingling can be legal in some circumstances, but in most cases, as an agent or a broker, its best to avoid it. There is no anti-assignment clause in the contract. All A salesperson working for Trinity Real Estate LLC has moved to Lotus Realty. What is the status of the FHA loan: When could a person receive legal title to the property under an Agreement for Sale: A buyer buys a property under an Agreement for Sale with only 10 percent down. If a minor signs the contract it is considered voidable. Crossing out part of a printed contract is actually allowed and legally enforceable as long as both parties and the original text is still readable. Have fun, study hard, and reach out if you have any questions. And lastly, the Income Approach, is also known as capitalization. A set of standards created to create a uniform way in which all commercial real estate transactions must be conducted. Here is a quick list we put together of some of our top real estate exam prep videos and playlists: In this playlist, study specific real estate concepts you need to know for the real estate exam. What is the general technique of determining three-dimensional positions of points and the distances and angles between them? Josephine inherited a ranch from her grandpa on the condition that she cares for his elderly horses. Which of the following documents would a homeowner's association NOT be required to give a buyer upon resale? If an individual practices real estate without a license, this would be considered a. The length of the real estate exam varies from about 1.5 hours to 3.5 hours again, based on the state youre in. Unlike with a joint tenancy, tenants in common have no rights of survivorship. Anyone whos already in the process of getting licensed can benefit from taking a real estate practice exam in Arizona. Appraiser Leo was hired to prepare a feasibility study for a 12-unit apartment complex in which the owner is considering putting in a swimming pool. These principal meridian lines are named or numbered to identify their location. A contract that legally binds two or more parties together, to specific obligations, that create a legally binding contract between the buyer and the seller. Sign up for the newsletter to get exclusive real estate exam tips that I don't share anywhere else. A property owner enters into a listing agreement with an agent. How hard is the real estate exam in Arizona? An addendum is an attachment to a contract that modifies the terms and conditions of the original contract. In fact, there are correlations between inflation and any good with a limited supply. TIC is when a parcel of real estate is owned by two or more tenants. What was the proration at close of escrow? Even with an as is sale, you'll need to disclose any known termite damage on the property. What is not true when a designated broker is away on a temporary absence? What would NOT appear on a public report: When a lot is sold outside of a subdivision, what must appear in the deed: What is the purpose of an affidavit of value: Assist the County Assessor in determining property values. In order to pass the Arizona real estate exam you must get a 75% or higher on the test. exempts a portion of a homeowners equity from attachment and execution of a forced sale due to nonpayment of judgment. 3. financials from property management. licensed residential real property appraiser. A package loan is a real estate loan used to finance the purchase of both real property and personal property, such as in the purchase of a fully furnished condominium. Time this up with when your exam is scheduled, and practice an exam question every day. Which business structure traditionally features a board of directors? This often happens for land that is required for infrastructure like highways, major pipelines, railroads etc. When a buyer enters into a lease-purchase, what is true? Is replacement cost and reproduction cost the same thing and if it is different, what is the difference? Basically, it would be returning the parties to the same legal position they were in before entering into the contract. Those are all examples of encroachment. Which of the following best describes Eminent Domain? Which act protects a consumer's financial info, restricts which third parties can assess it, and when they may do so? Using a trust typically has advantages and disadvantages. Failure to comply with any terms of the note or mortgage. How many brokers can a licensee work for at the same time in Arizona? A property owner enters into a listing agreement with an agent. Salesperson candidates who have completed an Arizona real estate license course must bring: -The Prelicensure Education Certificate (from your school), -A calculator (suggested) which must meet certain requirements that can be found in the Pearson Vue Candidate Handbook. The rescission of a contract occurs when: The rescission of a contract occurs when there is an agreement between the contracting parties to waive all the remaining duties and to terminate the contract. 100-year-old trees surround her home, and her neighbor Mr. Joe claims the trees are on his property and is planning on cutting them down. An addendum adds terms to a contract. Philip has a contract with his neighbor Jessica for lawn service. A seller may accelerate payment on a land contract if the buyer defaults: Who benefits from a non-disturbance clause in a loan: What is the primary difference between an agreement for sale and a purchase money mortgage: The agreement for sale contains the note and security all in one document. Later the buyer moves a mobile home on the lot and defaults on the Deed of Trust. Aaron will inherit an estate after the measuring life of a life estate ends. A satisfaction of mortgage is a document that confirms a mortgage has been paid off and details the provisions for the transfer of collateral title rights. Which of the following is NOT a valid way to terminate an easement? It still can be considered valid but only after the contingencies are met or no longer exist. The real estate agents power and authority is limited to that specific task. The __________ clause protects the borrower's assets that aren't part of the voluntary lien from a deficiency judgement in case of a foreclosure. There is no national portion to the exam. $150,000 for an individual OR a married couple. To facilitate the growth of urban and suburban areas throughout the state. The process of obtaining your real estate license varies from state to state and usually involves minimum age requirements, certain education and/or experience requirements, applications and fees, and other state-specific details. (Six months) refers to a mortgagor's right to regain their ownership of property that has been foreclosed. Which of the following could sign a property management agreement: A property manager who collects rents and holds the money for an owner must have: A property manager has an agreement with a property mangement company. When a broker secures a listing, which of the following actions would not require the owner's approval? Unlike with a joint tenancy, tenants in common have no rights of survivorship. Remember, liquidated damages are the amount agreed to in advance that will compensate a party for any loss they suffer on a purchase contract. Tenancy in common significantly differs from a joint tenancy, particularly in terms of survivorship rights and the degree of ownership each tenant has. What does the metes and bounds system use to develop a property's legal description? A voluntary ten is a lien placed on a property with the owner's consent. It's not a fixture, because Neera paid for it herself. All have been pre-paid. Puffing is usually common for a lot of sales people. She replies that to the best of her knowledge there are no plumbing defects. Max exemption is $150,000. A broker's listing on a house expired. The following would be an example of what type of surveying system? Timeshare units in Hawaii are being offered for sale or lease in Arizona. for violations, and require periodic water testing and notification to state authority and homeowners if contaminated. During your time as agent you will run into many different types of people from areas across the world. In plain terms, a bilateral contract is an agreement between two or more parties. If problems emerge after a sale is complete; that is not the seller's problem, and not a cause for the buyer to sue. The property owner also retains all property rights including the freedom to develop, rent and sell the property. Because Drew's estate comes with a condition, it's a defeasible fee. Tenancy in common would be the best answer. Scarcity: Limited in supply, as supply diminishes, value increases. The biggest difference is that the government does not write or enforce private controls but it does impose and enforce public controls like zoning. Percolation is the process of a liquid slowly passing through a filter. You have two rentals for $650 and two for $550. Usually the buyer or homeowners. The cost approach becomes nearly ineffective after 25 years or so because of the difficulty in: estimating depreciation, estimating changes in the cost of construction, and estimating changes in prices of building materials. Which is NOT a reason CAP was constructed? It is very important that this information is correct, as it will appear as it was entered on the documentation provided to you after you have completed the exam, as well as on any reports to your licensing agency. Pass the Arizona real estate Salesperson exam with confidence! A. An appurtenant easement is a type of easement that runs with the land. These all would be considered appurtenant, other than a trade fixture. Subordinate priority to fist mortgage, deed of trust and agreement of sale. Want to practice real estate exam questions every day; this is the perfect playlist for you. Beginning at the SE corner of Tatum and Cactus, proceed 2,640 feet north, thence 400' west, thence 700 feet south, and back to the beginning, How many acres would be contained in the following legal description: SW corner NE1/4 of Section 15 North to the NE corner of the SW1/4 of Section 10 Southeast to the SE corner of the NW1/4 of Section 14 thence west to the point of the beginning". A temporary broker's license may be issued for a period not to exceed 90 days to the surviving spouse, next of kin, or personal representative of the deceased broker or a broker who is disabled or incompetent. How would this appear on the seller's closing statement? Pearson VUE offers Broker and Sales practice tests for $19.95. Conspiracy to Boycott occurs when two or more persons or entities conspire to restrict the ability of someone from competing. Which answer includes 3 actual types of business structures? Buyer Dan is considering buying a lot to build a single family residence. From the question above; "Corporation, Sole Proprietorship, Limited Liability Company" are all real business structures. Both terms pertain to spouses. Subsurface rights are the rights to the natural resources lying below the earth's surface. Some include real estate practice exams and interactive real estate exam prep. The legal process of novation makes it possible to transfer all contract benefits and liabilities from previous parties to a set of new ones. Youll hear a lot of people use the word Market Value or Market Price. Arizona Real Estate Examination Testing Centers. Which action is legal as a real estate agent? What does it require from the owner? Which of the following forms of ownership would Tony and Taylor most likely have? When you buy real property, you gain several different kinds of rights. Property owner and new company must sign a new listing. Appointments may be made up to one calendar day prior to the day you wish to test, subject to availability. This is an example of which economic characteristic of real property? Which of the following can be achieved by dividing the price of the property by the rent that is produced? All Rights Reserved. So therefore, she has a fee simple condition subsequent estate. The income approach is primarily used for rental properties and this case would be given the most weight in the appraisal process. Theresa refused to allow the annoying neighbor to use her pool. A property owner wishes to build a neighborhood grocery store in an area zoned for residential use. After one partner dies when owning a building as joint tenants, how does the remaining person own the building? Codicil (pronounced kaa-duh-sl) is a written supplement or amendment to an existing will such as one affecting the transfer of real estate upon death. Once established, the property owner is notified by mail of the FCV and assessed value. A property has a first note the Deed of Trust for 20k, and a second note and Deed of Trust for 10k. Must be primary residence. Whether legally required or not (depending on which state you live in), you should always tell the seller to disclose termite damage. Remember DUST and your essential elements of value. While fannie mae considers total housing debt to income ratios in its underwriting process, freddie mac considers. A bit of a trick question. Selling property you listed to someone who resides in more than one state over is not a violation and is legal. What will not deny a developer a public report? False. Gerald has been granted the right to use Maria's Miami home for the rest of his life. Both closings occurred on the same day and both deeds were recorded the same day. The amount of interest really doesn't matter in this case. Holding a tenant's personal propter for back rent is abolished in Arizona. The tenant fails to pay the contractor. The buyer obtains a new FHA loan and closes escrow, after the closing the contractor files a mechanic's lien. In the appraisal of a building constructed in the 1930s, the cost approach would be the least accurate method because of difficulties in. Self-paced program that allows you to learn on your own schedule. Click on the course Study Set you wish to learn.) A voidable contract is a legal agreement between two parties that may be unenforceable for any number of reasons. The amount of interest really doesn't matter in this case. The only person who could NOT recover from the real estate recovery fund is, A broker may collect a commission from both buyer and seller if, Written approval is given before execution, Real Estate Recovery Fund is not subject to, Licensees can claim commissions if their broker declares bankruptcy, A claim against the recovery fund cannot be filed by, a corporation that was harmed by a licensee. In this case, since the owner wants a feasibility study, contribution would need to be used. Thats okay, even just a few hours with our prep guide will mean you are able to pass your AZ exam confidently first try. Real Estate Practice Tests. Established business relationship means a relationship between a seller and a consumer based on.. the consumer's purchase, rental, or lease of the seller's goods or services or a financial transaction between the consumer and seller, within the eighteen (18) months. Per 16 CFR 310.2. Gives the State the right to license brokers and salespeople. The real estate commissioner may not do what? As of June 30th of any year, the real estate recovery fund must maintain a balance of to avoid additional fees to licensees: How long are the real estate exam tests scores valid for: How long does a broker doing sales need to keep records: The commissioner may deny a public report for everything EXCEPT: All listings must be in writing to be enforceable according to: The commissioner has the power to do all of the following EXCEPT: After passing the real state exam, a licensee must activate his license within: Unless otherwise specified, a broker is required to deposit earnest monies in escrow or in a trust account: The commissioner will deny a public report on a subdivision because of the subdivider's inability to: Who may accept a commission from an out of state broker: If a broker abandons or moves their real estate office and fails to notify the commissioner, what is true according to Arizona Statues: Their license will be automatically cancelled. One large disadvantage especially when it comes to corporations is when owning income producing property they experience double taxation. While these practices are wrong, unfortunately sometimes they are perfectly legal. The salesperson can be a signatory on the account, In order to renew a real estate license, you need how many hours of classroom education every two years. Land trusts can not only bring some legal protection, but it can also help the property owner negotiate prices if he or she is particularly wealthy and wants to remain anonymous. Contractor or material supplier must deliver preliminary lien notice. What is not included i the public report? This just means the actual selling price of the property. A tenent hires a contractor to construct a patio roof. You should arrive at your exam 30 minutes prior to your exam time. Which of the following is true when paying an out-of-state referral fee to an employing broker? in addition to filing the petition to foreclose, it will file and record a _____. The tenant refuses to pay the amount owed, the mechanics may file a lien against: Once originated, under the Deed of Trust, who owns the property: Who paysthe fee for recording a Deed of Recoonveyance: What party would hold "naked title" in a deed of trust: Who gives instructions to sign the deed of reconveyance: When a mechanics lien is recorded and later results in a judgment, what is the lien priority of the judgment: Judgments in Arizona would be valid for what period of time: A contractor starts work on May 1, 2000. In order to pass the examination an examinee must answer 60 out of the 80 questions correct to pass (This is 75%). When a broker misappropriates funds, this is called: What type of property would have the highest tax rate: What is the priority of property tax liens: When are the first half property taxes delinquent: The two designations or classifications of water law in Arizona are: The doctrine of water usage in Arizona is known as: When a party owns land on a non-navigable stream, it is said they hold title to: When the county assessor evaluates real estate for the purpose of taxation, this is called: Once a homeowner's association establishes the assessments, they are paid: Annually based on the homeowner's association's budget. Which of the following circumstances would NOT give either party a justifiable reason to insist on a mutual release? How large is a section used in the rectangular government survey system? SARA also required EPA to revise the Hazard Ranking System to ensure that it accurately assessed the relative degree of risk to human health and the environment posed. He decided to install sewer and underground electric for the entire subdivision, because he thinks he will easily recoup his initial infrastructure investment. When a furnishing company creates materials for the construction of a house and is subsequently not paid, it may file a(n): A mechanics lien also called a construction lien is a lien placed on your property for nonpayment for work you had done on the property. All the others are forms of depreciation. If a minor signs a contract to buy real estate, the resulting contract is legally what?
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