Mixed Deck — All Arizona Real Estate License Topics Flashcards

What is a 'setback requirement' in Arizona zoning regulations?

Answer: The minimum distance a structure must be placed from property lines or streets

Setback requirements specify the minimum distance a building or structure must be located from front, side, or rear property lines to ensure light, air, and space between buildings.

How many hours of continuing education are required for Arizona real estate license renewal?

Answer: 24 hours

Arizona requires 24 hours of approved continuing education to renew a real estate salesperson's license.

Under Arizona statute, what must accompany a lot sale in an unsubdivided land offering?

Answer: A public report and buyer's rescission right

Unsubdivided land sales require a public report, and buyers generally receive a statutory rescission right after purchase.

What is the purpose of private mortgage insurance (PMI) in a conventional loan?

Answer: To protect the lender if the borrower defaults when LTV exceeds 80%

PMI protects the lender against loss if the borrower defaults on a conventional loan where the down payment is less than 20%.

In Arizona, how long must a licensee's broker generally retain transaction and disclosure records?

Answer: 5 years

Arizona brokers must retain transaction records, including disclosures, for at least five years.

A transactional agent is someone who:

Answer: Acts as the buyer's and seller's representative to help with the closing documentation.

A transactional agent, or facilitator, assists both the buyer and seller in a real estate transaction without representing either party exclusively. Their role is to facilitate the transaction, handle paperwork, and ensure a smooth closing, rather than advocating for the best interests of one side over the other. This differs from a traditional agent who has a fiduciary duty to their client.

Substituting a new party into a contract, releasing the original party from obligation with all parties' consent, is known as:

Answer: Novation

Novation replaces a party or obligation and releases the original party by mutual agreement.

Which of the following is a permissible reason to reject a rental applicant?

Answer: The applicant's income and credit do not meet uniform criteria

Applying uniform, nondiscriminatory financial criteria such as income and credit is a legitimate basis for rejection.

Which of the following best describes 'highest and best use' as used by Arizona appraisers?

Answer: The legally permissible, physically possible, financially feasible, and maximally productive use of a property

Highest and best use is the reasonably probable use that is legally permissible, physically possible, financially feasible, and maximally productive, resulting in the highest value.

What is eligible for an escrow?

Answer: All of the above.

Escrow is a legal arrangement where a third party holds assets or money until certain conditions are met. While commonly associated with money in real estate transactions, escrow can also hold other valuable items like intellectual property or contractor funds, ensuring that all parties fulfill their obligations before the assets are released.

Under Arizona law, a licensee must disclose which of the following about a property?

Answer: A known defect in the septic system

Physical material defects like a failing septic system must be disclosed, while Arizona statute specifically exempts stigmatizing facts such as natural death or disease.

Which of the following actions by a real estate agent would constitute illegal steering under fair housing law?

Answer: Directing minority buyers away from predominantly white neighborhoods

Steering involves directing buyers toward or away from certain neighborhoods based on race, color, religion, or other protected characteristics.

In Arizona, what is the typical redemption period after a judicial foreclosure sale?

Answer: Six months

Arizona law generally provides a six-month statutory redemption period following a judicial foreclosure sale.

Based on the Arizona licensing law, which of these actions is allowed?

Answer: Prominently posting "For Sale" signs on real estate properties after receiving written authorization.

Arizona real estate law permits a licensee to place a 'For Sale' sign on a property, provided they have obtained written authorization from the property owner. This is a standard and legitimate practice that ensures transparency and adherence to agency agreements. The other options describe discriminatory, misleading, or unauthorized actions that are prohibited under Arizona licensing law.

Under Arizona law, what is the maximum duration of a residential lease that does not require the landlord to hold a real estate license?

Answer: There is no exemption based on lease duration

Arizona requires a real estate license for brokerage activities regardless of the lease term; the exemption applies to owners managing their own property, not lease duration.

A tenant requests to keep an assistance animal despite a 'no pets' policy. The landlord should treat this as a request for:

Answer: A reasonable accommodation

Waiving a no-pets policy for an assistance animal for a person with a disability is a reasonable accommodation.

What is the statutory requirement for a real estate salesperson's license to remain active in Arizona?

Answer: Must be employed by a designated broker

Arizona statutes require that a salesperson's license must be held under a designated broker for the license to remain in active status.

Which federal law prohibits discrimination in housing based on familial status?

Answer: Fair Housing Act of 1968 as amended in 1988

The 1988 amendment to the Fair Housing Act added familial status and disability as protected classes.

Which Arizona form is commonly used for a seller to disclose the property's condition to a buyer?

Answer: SPDS (Seller Property Disclosure Statement)

The SPDS is the standard Arizona form sellers use to disclose known material facts about the property's condition.

A seller instructs their real estate agent in Arizona to not disclose a past termite infestation that was treated and is no longer active. According to the Arizona Commissioner's Rules, what should the agent do?

Answer: Disclose the past infestation to all potential buyers, as it is a material fact.

According to Arizona Administrative Code R4-28-1101, a licensee must disclose any information they possess that materially or adversely affects the consideration to be paid. A history of termite infestation, even if treated, is considered a material fact that could influence a buyer's decision. The duty of disclosure of material facts overrides the duty of obedience to an unlawful instruction.