ARIZONA REAL ESTATE BUNDLED EXAMS
STUDY GUIDE QUESTIONS AND
ANSWERS VERIFIED 100% CORRECT
◉ 1031 Exchange. Answer: A transaction that, under provisions of
Section 1031 of the Internal Revenue Code, allows a taxpayer to sell
an investment property and purchase another investment property
in its place without paying capital gains on the proceeds from the
sale.
◉ 1099-Misc. Answer: The Internal Revenue Service form that is
used to report various types of miscellaneous income earned other
than salary earned from an employer
◉ Abandonment of a Homestead. Answer: The loss of a homestead
exemption if the owner moves to another state, sells the property,
turns the property into a rental or no longer occupies the home as a
primary residence
◉ Abutting. Answer: Refers to parcels that share a boundary
◉ Acceleration Clause. Answer: A clause in loan documents that
allows the lender to call the note all due and payable if the borrower
breaches the terms
,◉ Accretion. Answer: The gradual addition of land by natural causes,
such as shoreline movements
◉ Acre (in square feet). Answer: 43,560 square feet
◉ Acre Foot. Answer: One foot of water over the entire surface of an
acre; contains 325,851 gallons of water
◉ Active Management Area (AMA). Answer: Areas within Arizona
where water management programs, such as restriction governing
groundwater use, are in place; requires demonstration of Assured
Water Supply
◉ Actual Eviction. Answer: The physical removal of a tenant from a
leased property with the tenant relieved of any further
responsibility to pay rent
◉ Actual Notice. Answer: Express knowledge of a fact (compared to
Constructive Notice, which is notice given by publication)
◉ Ad Valorem. Answer: A concept for property taxes that means
"according to value"
,◉ Adequate Water Supply. Answer: The standard required from
developers OUTSIDE of an Active Management Area (AMA); if
adequate water supply cannot by demonstrated, the developer must
disclose this fact in all advertising and promotional material
◉ Adjustable Rate Mortgage (ARM). Answer: A mortgage loan that
has an interest rate on the note that periodically adjusts based on an
index that reflects the cost to the lender; also called Variable Rate
Mortgage
◉ Adjusted Basis. Answer: The purchase price of a property (basis)
minus accumulative depreciation, plus acquisition costs, plus capital
improvements; also called Adjusted Purchase Price
◉ Adjusted Sales Price. Answer: Sales price minus costs of sale
(commission and closing costs)
◉ Administrator. Answer: Court-appointed personal representatives
of an estate for someone who dies intestate (without a will)
◉ Administrator's Deed. Answer: A document that transfers title to
real estate from an intestate person to his or her heirs
◉ Adverse Possession. Answer: Acquiring title to land because of a
long-term, open and notorious use of the land. The legal process is
, called PRESCRIPTION. The required time period in Arizona is 10
years.
◉ Advisory Board. Answer: A 10-member board appointed by the
Governor that advises and gives recommendations to the
Commissioner of the Arizona Department of Real Estate. Member
serve a 6-year term
◉ Affidavit of Affixture. Answer: A document for owners of mobile
homes certifying that the home is immobilized, i.e., anchored to real
property
◉ Affidavit of Disclosure. Answer: A disclosure document that may
be required when selling property that is either in an
unincorporated area (not in a city or town), NOT in a subdivision, or
if five or fewer parcels are involved in the transaction. It provides
information about certain aspects of the property and allows the
buyer an opportunity to rescind the contract.
◉ Affidavit of Value. Answer: A sworn statement under oath that
indicates the purchase price paid by the buyer in a trascaction; must
be filed with the deed and signed by both buyer and seller.
◉ Agency. Answer: A relationship of trust between one person (the
principal) and another (the agent) in which the agent has the
STUDY GUIDE QUESTIONS AND
ANSWERS VERIFIED 100% CORRECT
◉ 1031 Exchange. Answer: A transaction that, under provisions of
Section 1031 of the Internal Revenue Code, allows a taxpayer to sell
an investment property and purchase another investment property
in its place without paying capital gains on the proceeds from the
sale.
◉ 1099-Misc. Answer: The Internal Revenue Service form that is
used to report various types of miscellaneous income earned other
than salary earned from an employer
◉ Abandonment of a Homestead. Answer: The loss of a homestead
exemption if the owner moves to another state, sells the property,
turns the property into a rental or no longer occupies the home as a
primary residence
◉ Abutting. Answer: Refers to parcels that share a boundary
◉ Acceleration Clause. Answer: A clause in loan documents that
allows the lender to call the note all due and payable if the borrower
breaches the terms
,◉ Accretion. Answer: The gradual addition of land by natural causes,
such as shoreline movements
◉ Acre (in square feet). Answer: 43,560 square feet
◉ Acre Foot. Answer: One foot of water over the entire surface of an
acre; contains 325,851 gallons of water
◉ Active Management Area (AMA). Answer: Areas within Arizona
where water management programs, such as restriction governing
groundwater use, are in place; requires demonstration of Assured
Water Supply
◉ Actual Eviction. Answer: The physical removal of a tenant from a
leased property with the tenant relieved of any further
responsibility to pay rent
◉ Actual Notice. Answer: Express knowledge of a fact (compared to
Constructive Notice, which is notice given by publication)
◉ Ad Valorem. Answer: A concept for property taxes that means
"according to value"
,◉ Adequate Water Supply. Answer: The standard required from
developers OUTSIDE of an Active Management Area (AMA); if
adequate water supply cannot by demonstrated, the developer must
disclose this fact in all advertising and promotional material
◉ Adjustable Rate Mortgage (ARM). Answer: A mortgage loan that
has an interest rate on the note that periodically adjusts based on an
index that reflects the cost to the lender; also called Variable Rate
Mortgage
◉ Adjusted Basis. Answer: The purchase price of a property (basis)
minus accumulative depreciation, plus acquisition costs, plus capital
improvements; also called Adjusted Purchase Price
◉ Adjusted Sales Price. Answer: Sales price minus costs of sale
(commission and closing costs)
◉ Administrator. Answer: Court-appointed personal representatives
of an estate for someone who dies intestate (without a will)
◉ Administrator's Deed. Answer: A document that transfers title to
real estate from an intestate person to his or her heirs
◉ Adverse Possession. Answer: Acquiring title to land because of a
long-term, open and notorious use of the land. The legal process is
, called PRESCRIPTION. The required time period in Arizona is 10
years.
◉ Advisory Board. Answer: A 10-member board appointed by the
Governor that advises and gives recommendations to the
Commissioner of the Arizona Department of Real Estate. Member
serve a 6-year term
◉ Affidavit of Affixture. Answer: A document for owners of mobile
homes certifying that the home is immobilized, i.e., anchored to real
property
◉ Affidavit of Disclosure. Answer: A disclosure document that may
be required when selling property that is either in an
unincorporated area (not in a city or town), NOT in a subdivision, or
if five or fewer parcels are involved in the transaction. It provides
information about certain aspects of the property and allows the
buyer an opportunity to rescind the contract.
◉ Affidavit of Value. Answer: A sworn statement under oath that
indicates the purchase price paid by the buyer in a trascaction; must
be filed with the deed and signed by both buyer and seller.
◉ Agency. Answer: A relationship of trust between one person (the
principal) and another (the agent) in which the agent has the
