Quiz
A contractor starts work on May 1, 2000. He completes the work on August 15, 2000 and records a mechanic's lien on October 10, 2000. What is the effective date of the lien?
A) May 1st
B) August 15th
C) October 10th
D) December 1st
B) August 15th
Seller sells a property to a buyer and has repairs done thirty days before the close of escrow. The buyer obtains a new FHA loan and closes escrow, and after closing the contractor files a mechanic's lien. What is the status of the FHA loan?
A) Mechanic's lien may not be recorded
B) FHA is in first position
C) FHA is in second position
D) Mechanic's lien is in second position
C) FHA is in second position
Which of the following is filed with the Arizona Secretary of State
A) The Deed
B) The assignment of lease
C) Actual notice
D) The UCC-1 financing statement
D) The UCC-1 financing statement
When could a person receive legal title to the property under an Agreement of Sale
A) Upong paying 30% of the price with 20 days notice to vendor
B) Upon the last payment
C) Upon paying 50% of purchase price
D) When the agreement was recorded
B) Upon the last payment
A buyer buys a property under an Agreement for Sale with only 10% down. The buyer then leaves town and abandons the property. Which of the following is true:
A) Seller must go through a foreclosure process
B) Buyer will forfeit their equity after a specific time period
C) Buyer will automatically lose their equity
D) Buyer has a 9-day reinstatement period
B) Buyer will forfeit their equity after a specific time period
Which of the following instruments contain the note and security in one document?
A) Agreement for sale
B) Exchange contract
C) Lease with first right to refuse
D) Purchase-money mortgage
A) Agreement for sale
The forfeiture period on a land contract is:
A) A reinstatement period as agreed by the parties
B) A specific statutory period of time
C) 90 days after constructive notice
D) 6 months after actual notice
B) A specific statutory period of time
At a mortgage foreclosure sale, if the property is abandoned, the statutory period of redemption can be cut to which of the following times?
A) 30 days
B) 60 days
C) 90 days
D) 120 days
A) 30 days
A commercial project was in foreclosure, and after the sale the mortgage did not receive enough money to satisfy the note. Which of the following statements are true?
A) The lender can sue the borrower for deficiency judgement
B) The lender would not be able to sue for deficiency judgement
C) The lender's only recourse is the property
D) The lender would have to honor the property homesetead
A) The lender can sue the borrower for deficiency judgement
A property has a first note and Deed of Trust for $20,000 and a second note and Deed of Trust for $10,000. The first is in default, and the lender agrees to take back a quitclaim deed. What is the position of the $10,000 second?
A) The quitclaim deed eliminated the second
B) The second must be paid before a quitclaim can be given on the first
C) The second is now in first position
D) The $10,000 is still in second position
C) The second is now in first position
A buyer obtains a loan on a parcel of land secured by a Deed of Trust. Later the buyer moves a mobile home on the lot and defaults on the Deed of Trust. Which of the following is true?
A) Lender may foreclose on the land and mobile home.
B) Lender may not foreclose under the homestead act
C) Lender may foreclose on the land only
D) Lender may foreclose on the mobile home only
C) Lender may foreclose on the land only
After a Deed of Trust Foreclosure sale, which of the following is true?
A) A deed of Reconveyance is given to the Trustor
B) The note is marked paid and returned to the Trustor
C) The trustee's deed is given to the new owner
D) The trust deed is returned to the trustor
C) The trustee's deed is given to the new owner
Which of the following would NOT be part of an agreement of sale?
A) Statutory notice
B) Account servicing agreement
C) Trustee notice
D) Forfeiture rights
C) Trustee notice
State usury laws would set:
A) Interest rates
B) Rescission laws
C) Disclosure
D) Advertising restrictions
A) Interest rates
A land contract has an acceleration clause and is now in default. Which of the following is true?
A) No acceleration clause is allowed in a land contract
B) Vendor can forfeit the vendee's equity immediately
C) Once the acceleration clause is exercised, a lender would foreclose as a mortgage
D) The vendee would have a 90-day reinstatement period
C) Once the acceleration clause is exercised, a lender would foreclose as a mortgage
A seller may accelerate payment on a land contract when the buyer defaults:
A) If foreclosed as a mortgage
B) If foreclosed as a Deed of Trust
C) If the seller uses the forfeiture provisions
D) If the loan has a subordination clause
A) If foreclosed as a mortgage
Who benefits from a non-disturbance clause in a loan?
A) Seller of the property
B) New buyer of the property
C) Tenant leasing the property
D) Broker who sells the property
C) Tenant leasing the property.
What is the primary difference between an agreement for sale and a purchase money mortgage?
A) A purchase money mortgage contains the note and security all in one document
B) The purchase money mortgage is the evidence of the debt
C) The agreement for sale contains the note and security all in one document
D) The agreement for sale is used only when selling land
C) The agreement for sale contains the note and security all in one document
When a buyer buys under a land contract with 10% down, how long would the forfeiture period be if the buyer defaulted?
A) 30 days
B) 60 days
C) 90 days
D) 120 days
A) 30 days
Regarding a trust deed foreclosure, which of the following is true?
A) Debtor receives a notice of sale
B) Debtor notifies trustee of default
C) Trustee notifies beneficiary of default
D) Mortgagor would notify trustee
A) Debtor receives a notice of sale
In foreclosure of a Deed of Trust, which is the order of notice?
A) Services of process, then actual, then constructive
B) Constructive, then actual
C) Actual, then constructive
D) Legal, then actual, then constructive
B) Constructive, then actual
A notice of foreclosure under a Deed of Trust is given by whom?
A) Trustor
B) Trustee
C) Beneficiary
D) Sheriff
B) Trustee
How could a lender save 5 months in a judicial foreclosure?
A) Waive service of process
B) File for an abandonment suit
C) Release notice of acceleration
D) Substitute the trustee
B) File for an abandonment suit
To have a trustee sale, the beneficiary notifies the:
A) Trustor
B) Beneficiary
C) Mortgagee
D) Trustee
C) Beneficiary
What is NOT part of the property manager's responsibilities?
A) Ethics
B) Keeping up with rental rates in the area
C) Telling the owner the market value of the building
D) Keeping current with vacancies
C) Telling the owner the market value of the building
What is not required of a property manager?
A) Register prospective tenants with a state registration system
B) Collect rents
C) Acts as a general agent
D) Keep up with current rental rates
A) Register prospective tenants with a state registration system
Which of the following may a property manager NOT receive?
A) Reimbursement for out of pocket expenses
B) Free rent on an apartment unit
C) Monthly management fee
D) Rebates from suppliers
D) Rebates from suppliers
What is NOT part of a typical property management agreement?
A) Beginning and ending date
B) Frequency of management reports
C) 30 day cancellation clause
D) Annual budget
D) Annual budget
Which of the following would NOT be part of the landlord-tenant act?
A) Security deposits regulations
B) Property management regulations
C) Notices for eviction
D) Notice of self-help repairs
B) property management regulations
A landlord wishes to show a part of your apartment. He may do so with which of the following notices?
A) 24 hours
B) 48 hours
C) 72 hours
D) 6 hours
B) 48 hours
All of the following can be signors on a property management trust account EXCEPT:
A) Designated broker
B) Managers licensed under the broker
C) Property owner
D) Employees of the broker
C) Property owner
Which of the following is NOT true regarding a property management trust account:
A) Multiple properties can be in one trust account
B) A salesperson can be a signatory on the trust account
C) A salesperson signatory may sign checks paying miscellaneous maintenance fees
D) Only licensed signatories are permitted
D) Only licensed signatories are permitted
Property management agreements do NOT deal with which of the following:
A) Commissions
B) Rents
C) Building age
D) Frequency of reports
C) Building age
If a property is damaged by fire and the tenant moves out, which of the following statements is true?
A) Tenant may terminate the lease with a 14 day written notice
B) Tenant may terminate the lease with a 10 day written notice
C) Tenant may terminate the lease with a 7 day written notice.
D) Tenant may terminate the lease with a 3 day written notice
A) Tenant may terminate the lease with a 14 day written notice
A property management agreement may be terminated:
A) By a ruling of the real estate department
B) With 10 days written notice by either party
C) By complying with any time parameters in the agreement
D) With a majority consent of the lessees
C) By complying with any time parameters in the agreement
In order to terminate a month-to-month lease, a person would be required to give:
A) 10 days notice
B) 14 days notice
C) 21 days notice
D) 30 days notice
D) 30 days notice
When a tenant fails to pay rent, the landlord would first deliver to the tenant a/an:
A) judgement
B) 5-day notice
C) forcible detainer
D) abandonment notice
B) 5-day notice
A property management company is required to keep a copy of all residential rental agreements upon expiration for a period of:
A) one year
B) three years
C) five years
D) six years
C) five years
All of the following are true regarding security deposits on residential property EXCEPT:
A) Landlord may collect up to one and one-half times the monthly rent
B) Tenant may pay in excess of one and one-half times the monthly rent, if agreed
C) Landlord may charge one and one-half times monthly rent, plust first and last month's rent
D) landlord may charge a non-refundable cleaning deposit.
C) Landlord may charge one and one-half times monthly rent, plust first and last month's rent
How many days does the landlord have to give the tenant a full accounting of the security deposit upon termination of tenancy?
A) 3 days
B) 10 days
C) 14 days
D) 21 days
C) 14 days
If the landlord fails to give the tenant a full accounting of the security deposit within the required time, which of the following is true?
A) The landlord would be liable for twice the amount wrongfully held
B) The landlord would be liable for three times the amount wrongfully held
C) The landlord would only be required to return the original deposit plus interest
D) the landlord would be required to return the original deposit plus twice the amount of interest
A) The landlord would be liable for twice the amount wrongfully held.
All of the following disclosures are required to be given by the landlord to the tenant except:
A) Name of the person authorized to manage the unit
B) Notification to the tenant at a free copy of the landlord tenant act is available at the secretary of states office
C) Name of the person who is to receive all notices and demands
D) Name and address of the property owner
D) Name and address of the property owner