ARIZONA REAL ESTATE SET COMPREHENSIVE
ANSWERS AND QUESTIONS SET A+
✔✔What would it cost to build again using today's methods and materials -
✔✔Replacement method
✔✔Loss of value due to any reason (land does not depreciate) - ✔✔Depreciation
✔✔Initial cost divided by the economic life of improvement to land - ✔✔Straight-line
depreciation
✔✔The value of property plus the income, the property is generating - ✔✔Income
approach
✔✔Rate of return a property will produce on owner's investment - ✔✔Capitalization rate
(CAP RATE)
✔✔Short-cut to income approach when there is 1 to 4 residential units - ✔✔Gross rent
multiplier
✔✔Poor maintenance can be curable or incurable - ✔✔Physical deterioration
✔✔How many houses can be built per acre of land - ✔✔Density zoning
✔✔Arizona mechanic liens must be files - ✔✔60 days of notice of completion, recorded
or 120 days of notice not recorded
✔✔Actions to enforce mechanics liens must be filed - ✔✔Within 6 months
✔✔How many days does a licensee have to respond to a ADRE investigation - ✔✔20
days
,✔✔The document signed, giving someone power to ask on your behalf - ✔✔Power of
attorney
✔✔In 1968 the Supreme Court upheld the 1866 Civil Rights Act - ✔✔Jones vs Mayer
✔✔Race, color, religion, national origin, sex familiar status, or handicap - ✔✔Federal
fair, housing act of 1968
✔✔Under the direction of the broker, but no federal withholding, taking from income -
✔✔Independent contractor
✔✔Created by rules and court decisions - ✔✔Common law
✔✔Enacted by legislation, and other governing authorities - ✔✔Statutory law
✔✔Federal law to promote free competition - ✔✔Sherman antitrust
✔✔One who is licensed and must work for a broker in order to practice real estate -
✔✔Sales person
✔✔One licensed as a broker, but not designated to any authority - ✔✔Associate broker
✔✔A natural person that's responsible to the entity for all supervision - ✔✔Designated
broker
✔✔Licensed by the state to have a real estate company - ✔✔Employing broker
✔✔Mixing trust funds with a brokers operating account - ✔✔Commingling
✔✔The unbroken chain of events that led to the completion of the transaction -
✔✔Procuring cause
✔✔Properties that are regarded as having psychologically impacted defects -
✔✔Stigmatize properties
✔✔Hidden structural defects, not seen by the naked eye - ✔✔Latent defect
✔✔A legal exaggeration - ✔✔Puffing
✔✔An error or a misunderstanding that was not caused intentionally - ✔✔Innocent
misrepresentation
✔✔Misrepresentation with the intent to harm someone - ✔✔Fraud
, ✔✔One broker representing two principles in the same transaction - ✔✔Dual agency
✔✔Represent one principal in a transaction - ✔✔Single agency
✔✔An agent of an agent - ✔✔Sub agency
✔✔The broker, allowing one agent to ask on behalf of one principal - ✔✔Designated
agency
✔✔Represents principal in one business activity - ✔✔Special agency
✔✔Agent authorized to act in a wide range of business activities - ✔✔General agent
✔✔Universal agent - ✔✔Power of attorney
✔✔When a non-agent acts as an agent and the person believes an agency exists -
✔✔Agency by estoppel
✔✔An agency created by the actions of both parties, and not by formal agreement -
✔✔Implied agency
✔✔An agency relationship created in writing or verbally - ✔✔Express agency
✔✔An intermediary who assist one or both parties, but doesn't represent them -
✔✔Non-agent
✔✔The individual who hires a broker to represent them in a RE transaction -
✔✔Principle
✔✔Care, obedience, loyalty disclosure, accounting and confidentiality - ✔✔Fiduciary
(COLDAC)
✔✔The third party in the transaction - ✔✔Customer
✔✔The client becomes the principal, and you become the agent - ✔✔Client
✔✔The individual authorize to represent another person - ✔✔Agent
✔✔One who delegates to another the right to act on their behalf - ✔✔Agency
✔✔Approval and adoption of an agents act, which has already been performed, but was
not pre-approved - ✔✔Ratification
ANSWERS AND QUESTIONS SET A+
✔✔What would it cost to build again using today's methods and materials -
✔✔Replacement method
✔✔Loss of value due to any reason (land does not depreciate) - ✔✔Depreciation
✔✔Initial cost divided by the economic life of improvement to land - ✔✔Straight-line
depreciation
✔✔The value of property plus the income, the property is generating - ✔✔Income
approach
✔✔Rate of return a property will produce on owner's investment - ✔✔Capitalization rate
(CAP RATE)
✔✔Short-cut to income approach when there is 1 to 4 residential units - ✔✔Gross rent
multiplier
✔✔Poor maintenance can be curable or incurable - ✔✔Physical deterioration
✔✔How many houses can be built per acre of land - ✔✔Density zoning
✔✔Arizona mechanic liens must be files - ✔✔60 days of notice of completion, recorded
or 120 days of notice not recorded
✔✔Actions to enforce mechanics liens must be filed - ✔✔Within 6 months
✔✔How many days does a licensee have to respond to a ADRE investigation - ✔✔20
days
,✔✔The document signed, giving someone power to ask on your behalf - ✔✔Power of
attorney
✔✔In 1968 the Supreme Court upheld the 1866 Civil Rights Act - ✔✔Jones vs Mayer
✔✔Race, color, religion, national origin, sex familiar status, or handicap - ✔✔Federal
fair, housing act of 1968
✔✔Under the direction of the broker, but no federal withholding, taking from income -
✔✔Independent contractor
✔✔Created by rules and court decisions - ✔✔Common law
✔✔Enacted by legislation, and other governing authorities - ✔✔Statutory law
✔✔Federal law to promote free competition - ✔✔Sherman antitrust
✔✔One who is licensed and must work for a broker in order to practice real estate -
✔✔Sales person
✔✔One licensed as a broker, but not designated to any authority - ✔✔Associate broker
✔✔A natural person that's responsible to the entity for all supervision - ✔✔Designated
broker
✔✔Licensed by the state to have a real estate company - ✔✔Employing broker
✔✔Mixing trust funds with a brokers operating account - ✔✔Commingling
✔✔The unbroken chain of events that led to the completion of the transaction -
✔✔Procuring cause
✔✔Properties that are regarded as having psychologically impacted defects -
✔✔Stigmatize properties
✔✔Hidden structural defects, not seen by the naked eye - ✔✔Latent defect
✔✔A legal exaggeration - ✔✔Puffing
✔✔An error or a misunderstanding that was not caused intentionally - ✔✔Innocent
misrepresentation
✔✔Misrepresentation with the intent to harm someone - ✔✔Fraud
, ✔✔One broker representing two principles in the same transaction - ✔✔Dual agency
✔✔Represent one principal in a transaction - ✔✔Single agency
✔✔An agent of an agent - ✔✔Sub agency
✔✔The broker, allowing one agent to ask on behalf of one principal - ✔✔Designated
agency
✔✔Represents principal in one business activity - ✔✔Special agency
✔✔Agent authorized to act in a wide range of business activities - ✔✔General agent
✔✔Universal agent - ✔✔Power of attorney
✔✔When a non-agent acts as an agent and the person believes an agency exists -
✔✔Agency by estoppel
✔✔An agency created by the actions of both parties, and not by formal agreement -
✔✔Implied agency
✔✔An agency relationship created in writing or verbally - ✔✔Express agency
✔✔An intermediary who assist one or both parties, but doesn't represent them -
✔✔Non-agent
✔✔The individual who hires a broker to represent them in a RE transaction -
✔✔Principle
✔✔Care, obedience, loyalty disclosure, accounting and confidentiality - ✔✔Fiduciary
(COLDAC)
✔✔The third party in the transaction - ✔✔Customer
✔✔The client becomes the principal, and you become the agent - ✔✔Client
✔✔The individual authorize to represent another person - ✔✔Agent
✔✔One who delegates to another the right to act on their behalf - ✔✔Agency
✔✔Approval and adoption of an agents act, which has already been performed, but was
not pre-approved - ✔✔Ratification
