A deed would be invalid if it were found to be:

• Recorded after the sale took place.
• Signed by both the grantor and the grantee.
• Had a consideration in the form of other than money.
• Missing a legal description.

5 Legal Rights

DEEP-C

1. D-Disposition
2. E-Enjoyment
3. E-Exclusion
4. P-Possession
5. C-Control

Which of the following have rights of survivorship? (2)

• Community Property in AZ
• Tenancy by the Entirety
• Tenants in Common
• Joint Tenancy

Community Property in AZ

&

Joint Tenancy

Which of these is NOT a type of easement?

• Easement in Gross
• Easement Appurtenant
• Easement in Monetary
• Easement by Necessity

True or False:

To prove to a buyer that a seller has clear title, the seller would purchase a title report.

A change in zoning directly across the street would be a potential:

• Non-monetary encumbrance
• Choice 2 Monetary Encumbrance
• Potential Encumbrance
• Zoning Encumbrance

The IRS has the power to lien both personal and real property. This is what type of encumbrance?

• General, Involuntary, Statutory
• General, Specific, Involuntary
• Specific but Involuntary
• General but Involuntary

Which of these is NOT a superior lien:

• Income Tax lien
• Non Judgement Lien
• Financing Lien
• Deceased Estate Lien

The impound account is used to pay what on behalf of the new property owner?

• Property taxes
• Mortgage
• HOA dues
• Interest to the lender

Estate for Years

Periodic Estate

Estate at Sufferance

Estate at will

Which of these statements is false about Tenancy in Common:

• It's undivided, each party has the rights to possess and use.
• Each owner cannot sell, will or give their ownership interest away without the approval of all involved.
• If an owner dies, their interest will pass on to their heirs, not to the co-owners.
• No rights of survivorship. 

• Substantive Policy Statements
• Quarterly bulletin publised by the Real Estate Division
• Arizona revised Statutes

A policy underwriter discovers a defect in the chain of title and they can't seem to find where a previous owner ever signed the deed to the current owner. This defect would cause what potential action?

• A cloud was found and can be easily cleared by the title company.
• A title policy most likely won't be issued.
• The new buyers of the property would need to clear the defect.
• A title policy could be issued but would have a defect note.

The biggest reason why banks don't typically lend money on Co-ops is due to the fact that:

• The prices are not determined by fair market.
• Owners have a proprietary leasehold interest in the building.
• Owners don't have any form of ownership in the corporation.
• The sellers don't have any input as to how the board is run.

By dying intestate, what happens to the real property in Arizona?

• It goes to the owners partner automatically.
• The Statutes of Decent will be followed. 
• The estate would revert to the State.
• Whatever is recorded in the Will. 

Which party would be responsible for handling of all monies in a real estate conveyance?

• Buyer's Broker
• Seller's Broker
• Escrow Agency
• Title Agency

Landlocked property must be granted an easement and is known as the ____.

• Dormant Tenement
• Dominant Tenement
• Divisive Tenement
• Disputed Tenement

During a closing, which party would pay for the escrow fees due to the statutes?

• The agreed upon party identified in the contract.
• Both parties would split it according to the statutes.
• There are no statutes that state who would pay for escrow.
• Buyer would pay for the close of escrow.

To further protect against large losses, a lessor might want to obtain what type of insurance policy that would cover them once their primary insurance is exhausted or runs out?

• Jumbo Policy
• Umbrella Policy
• Gap Insurance Policy
• Lender Comprehensive Policy

A seller would want to be able to prove that they have Marketable Title in order to show what?

• The ability to transfer their real property to the escrow company.
• The ability of the sellers or agent to market the property to others.
• The ability for the general public to view recorded liens on the property.
• The ability of the escrow company to provide title insurance.

What are other types of insurance besides title insurance?

• Hazard and Flood insurance
• Business Insurance
• Landlord Insurance
• Homeowners Insurance

Hazard and Flood Insurance

Business Insurance

Homeowners Insurance

In Arizona, what gives agents the power to draft and write contracts?

Which of the following is a physical characteristic of land?

• Equitable
• Defeasible
• Indestructible
• Intestate

Unique to Arizona, what type of license is needed to sell timeshares?

• Timeshare Sales License
• Real Estate License
• Developers License
• Public Report Owners License

HOA CC&R's are considered an:

• Entitlement
• Encumbrance
• Escheat
• Easement

A possessor of property that is not legally theirs can add onto the time that someone else was illegally using the property by doing what?

• Taking On
• Adverse Protection
• Trailing behind
• Adverse Property

Joint Tenancy must include which of the following:

• Rights of Survivorship
• Time and Title
• Interest and Possession
• All of These

True or False

Business entities can own title with rights of survivorship.

The Correct Terms that'll be found in Title Policies are: (3)

• Bona Fide Purchaser
• Innocent Purchaser
• Subrogation
• Policy Endorser

Bona Fide Purchaser

Innocent Purchaser

Subrogation

True or False

Ownership is allowed in campgrounds

Corporeal Hereditaments could be:

• A timeshare that is used yearly
• A shared easement
• A car donated to charity
• A property left in a will

True or False

Tenants have the rights to enjoy property they are renting

A buyer tours a timeshare presentation in Arizona while on vacation. The buyer bought a timeshare. This contract is:

• Enforceable since she was not a resident of Arizona
• Rescindable by the Buyer for a period of 7 days
• Valid
• Unenforceable since she didn't have 3 days to review the contract.

Earned money is held in what type of account?

• Brokers Personal Account
• Impound Account
• Escrow Account
• Savings Account

True or False

HOA can legally foreclose due to unpaid assessments.

Clear title means:

• There are no known defects in the title history
• Full ownership history has been documented
• The sellers have cleared the clouds on title
• All of these

True or False

An HOA can foreclose on a homeowner for failing to pay fines.

When buying a property jointly, two individuals who are not married would most likely take title to a property how?

• Tenants in Law
• Equal Tenants
• Tenants in Common
• Joint Ownership with Rights of Disposal

Choose the correct requirements for a lease to be considered 'valid' (2)

• Both parties must be over the age of 18
• If leasing for more than a period of a year, can be verbal
• If leasing for less than a year, must be in writing
• Set rules and limits on items like guests, occupancy, pets, etc

Both parties must be over the age of 18

&

Set rules and limits on items like guests, occupancy, pets, etc

Under the Arizona Landlord Tenant Act who is responsible for making repairs?

• The Tenant
• Whoever is on the lease that was agreed to by both parties
• The Landlord
• The Property Manager or Property Management Company

Which of the following would not be covered under the Arizona Landlord Tenant Act?

• Landlord renting out their house
• Fraternity Housing
• Low rent apartment complex
• Multi-family housing managed by a licensed property

John Deadbeat hasn't paid his rent on time again. Landlord Biggy is tired of this and wants to evict. Biggy must serve a notice of default at least how many days before commencing of an eviction suit?

• 5days
• 30days
• Immediately
• 1day after rent is late

According to the AZ Residential Landlord Tenant Act, who must be written into the lease as a point of contact for tenant repairs?

• Owners broker
• A member of the LLC
• An elected agent on behalf of owner or the owner
• Only a licensed property manager

Sandwich Lease is:

• Where the lessee becomes lessor and sub-lessee will make payments to their lessor who will in turn make the payments to the original lessor. 
• Where the lessor agrees to a new tenant taking over the old tenants place as long as the old tenant is going to pay the difference in rent to the lessor.
• Most commonly found in commercial spaces where two large anchors support the tenants in the middle of the complex. 

Which of the following is not a way to terminate a lease?

• Death of the Lessor
• Fire Completely Destroys the Building
• City Ordinance changes
• Bankruptcy of the Lessor

Seizing or Taking a Arizona residential tenants property and placing the items in safe storage until the lease has been paid is:

• Demise and it is legal in the State of Arizona
• Discord and is legal in the state of Arizona
• Destraint and is illegal in the State of Arizona
• Surrender and it is illegal in the State of Arizona

Which of these is NOT an example of an incompetent party?

• Someone who is under the age of 18
• Someone being threatened into an agreement
• Someone who has a prescription for anxiety medication
• Someone under the influence of alcohol and drugs

If the offeror dies before the offer was accepted, the offer is...

• Valid
• Void
• Enforceable
• Accepted

True or False:

By signing a contract, parties have ratified the terms and agree to them.

What are the exceptions to the rule of "all real estate contracts must be in writing"(2)

• Short term leases
• Consideration
• Parole of evidence
• Commission agreement between brokers

Short term leases

&

Commission agreements between brokers

The broker had been showing homes for some time to a buyer. After a few months, she found out that the buyer bought a home from a different agent. She tried to sue the other agent but the judge in the case cited that she was missing what?

• Valid Consideration
• Signatures by all parties
• Statute of description
• Statute of validity

A contract signed by a party under the influence of pain medication could be considered voidable due to the lack of?

• Competent parties
• Duress
• Consideration
• Parol of Evidence

Which is not an additional requirement for real estate contract validity?

• Signed
• In Writing
• Escrow Instructions
• Consideration

What clause would an agent use in an offer to purchase that indicates in a hot market that they want an ANSWER before their deadline in an effort to prevent other buyers from making better offers?

• Counteroffer
• Time is of the essence
• Description
• Legal Purpose

During contract negotiations, the counterofferor died unexpectedly. What is the status of the Sale?

• The offer is under contract and must proceed
• The agent must deliver the signed acceptance
• There is no contract
• The parties can sue for specific performance

Which of these statements are incorrect?

• The Promissory Note is the primary document that evidences the borrower's legally enforceable promise to repay the loan.
• The mortgage is a document that you give to the lender that creates a lien on the property, given as security for the debt borrowed.
• In a deed of trust, the three parties involved are; Trust-or, Beneficiary, Trustee
• Mortgage is latin for 'Life Pledge'

In the State of Arizona, the two written instruments that are commonly used as evidence of a loan are?

• Promissory Note and Deed of Trust
• Promissory Note and Deed in Lieu
• The borrower or trustor would sign the promissory note and the Deed of Trust
• Recorded Note and Deed for Sale

Amanda goes to the credit union in her home town in hopes of borrowing money that can be used to purchase a property. She is told that she can qualify for a 10% down mortgage and she agrees. Which of the following parties would be required to sign and date the mortgage?

• Lender Only
• Borrower Only
• Lender and Borrower
• Lender, Borrower, and Witnesses

A borrower wishes to obtain a purchase money loan for their purchase of a home located in Arizona. The bank offers them a loan, as long as the borrower will allow the lender to create a lien on the house that was being used as collateral. In this case, the lender and the borrower are known as?

• Beneficiary and Trustee
• Trustee and Trustor
• Beneficiary and Trustor
• Trustor and Mortgagor

Which of the following may not serve as a trustee in the State of Arizona?

• Escrow Company
• Insurance Agent
• Real Estate Broker
• Trustor

In Arizona, the trustor gave what to the Trustee?

• Recognized Title
• Legal Title
• Clear Title
• Marketable Title

A person has permission from a property owner to hike on the owner's property during the autumn months. The hiker has:

• An easement by condemnation
• An easement by necessity.
• A license
• Riparian rights

A resident of Denver bought acreage in a distant county, never went to see the acreage, and did not use the ground. An artist moved a mobile home onto the land, had a water well drilled, and lived there for 22 years. The artist may become the owner of the land if the artist is in compliance with the state law regarding:

• Avulsion
• Requirements for a valid conveyance
• Adverse possession
• Voluntary alienation

Most states require that a real estate listing agreement contain:

• A broker protection clause
• An automatic extension clause
• A multiple listing serve (MLS) clause
• A definite contract termination date

What is the source of rules that govern the use of real estate advertisements in all media, if they include mortgage financing terms?

• Equal Credit Opportunity Act
• Regulation Z of the Truth in Lending Act
• Fair Lending Act
• Community Reinvestment Act

At closing, the earnest money left on deposit with a real estate broker is:

• A balancing factor
• A credit to the seller
• A credit to the buyer
• A debit to the buyer