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General RE

Eminent Domain Gvmt takes private property via Police Powers Processed via Condemnation
Quit Claim Deeds Grantor must sign, but both name and address of grantor and grantee property address and legal description Consideration Notorized
FHA loans Insured by FHA government
VA Loans 417,000 Government Guaranteed no Mortgage insurance Can reuse more lenient credit cannot charge more market value
Three approaches of an Appraiser Sales comparison Cost - replacement value Income it produces
Property Management Agreement 3 days to give money to owner if no disputes all statute of frauds cancellation clause how disp $ coll, type and freq stat reprts emerg $ disp of interest $
Estoppel Agency Assumed Ostensible Inferred For example, when a Broker allows a seller or buyer to create the illusion that the broker is his agent
Special Agency Listing and Buyer Broker Short term and/or limited
Agency by Ratification Accepts agents Unauthorized Act
Ostenible Agent Independent working for broker
Lessor Owner, Landlord
Disclosures for both residential and commercial Flood Mil airport, any airport expansive soils, fissures special tax assessments Radon suprfund QA fund sites
Security Deposit 1.5 months 14 days must refund and if do not any portion withheld receive 2 times amount
Exempt Fair Housing Act Contract for sale Rec lodging owner occupied of condo/coop member of fraternal or social org insititutions, medical, religious,
Comply with Fair Housing no more than 3 rental properties Advertise RE agent used
If Landlord has prohibited provisions Tenant gets actual damages Not more than 2 months rent
If tenant repairs 10 day written emergency asap lien release waiver by worker deduct from rent max $300 or 1/2 months rent, whichever is greater
Delivery to tenant/landlord last know address of ten or landlord deemed received 5 calendar days via cert mail or registered mail
Abandonment stuff there, gone 7 days and rent overdue 10 days stuff gone, gone 5 days, rent overdue 5 days Landlord posts 5 day notice and mail cert mail Security Dep is deemed forfeit
RPEA Az rules of Procedure for Eviction Actions
Prior Appropration First time, first right of beneficial use of surface water
GMA Groundwater Mgmt Act Est ADWR 5 Active Management areas
5 Active Management Areas Phoenix Pinal Prescott Tuscon Santa Cruz 80% of all population and 70% groundwater draft
ADWR Az Dept of Water Resources Enforce regs, planning, and research director is apptd by Govenor
Beneficial Use Less than .5 acres to water yard irrigation stock watering water power recreation mining wildlife nonrecoverable water storage municipal
Az Water Banking Authority AWBA Long term storage credits stores water into Aquifers
1980 Groundwater Mgmt Act/Code Est rights and permits prohibit irr of new agric within AMAs 5 AMA Dev 100 yr supply for new growth measure large, pumped wells Report use withdrawals and audits by ADWR arm these codes
GMA 3 levels Lowest = general Middle = Irrigation, non exp areas High = AMA
Grandfathered Rights Irrigated= for farming cash crops and convey with the land Type1 = retired farming and to non farm use and cannot exceed 3 acre per ft/acre Type 2 = non irrig only, golf crs, live stock, may be sold sep or lease portion of from land or well
New owner of a well 30 days Buyer must register Notify if any more open, new wells within 10 days
CERCLA Superfund by congress to tax petroleum and chem companies Allows EPA to clean up 9 NPL Superfund sites in Az.
Asbestos EPA banned in 1989
Lead Any home prior to 1978 must: Lead warming statmt on contract Lead inspect from Cert Inspector In rentals same
Septic within 6 mos of property transfer, no less than 3 days prior to actual closing Only ADEQ cert inspector Buyer must submit "Notice of Transfer" 15 days from closing
Meander Lands Avulsion Sudden Loss of land by river, earthquake, volcano eruption
Overdraft Aquifer not recharged naturally as quick as needed
Alluvion Increase in land by a ocean or river
Aquifer Geologic Unit suff sat water to yield usable to a well or spring
3 Types of permits for Non-Exempt wells in an AMA Grandfathered Service Area Rts Withdrawal Rts
Accretion out of ordinary land by deposit of soil To accrue land
Title 8 Civil Rts Act 1968 Lyndon B Johnson Advertising Terms of Rental/Sale Denial Interfering Retaliating
ADA penalty fees $75,000 - $150,000
Civil Rts Act 1968 Race Color Sex (74) National Origin Religion
Blockbusting Telling folks race/religious, etc moving into their hood, so they can purchase their home cheap and sell to that group for profit
Grievance with HUD 1 - 100d- 2 File with HUD 1 yr, they have 100 days to conciliate 2 years to file in Court
Violations of HUD Compensation and Injuncture Relief $10,000 first $25,000 second within 5 yrs 50,000 if 2 or more within 7 yrs
Mrs Murphy Exemption - FHA Up to 4 units, but owner must occupy 1 of units Recognized in AZ Exempt from FHA
Mrs Murphy Exemption continued Sell or rent your own home Cannot own more than 3 single family homes No advertising No RE Agent used If owner is not a resident, only 1 sale/rent is allowed per 24 months.
Commercial Only under Contract Law Gross Net % Sandwich
Gross Lease Fixed Monthly pmt
Net Lease Tenant pays taxes, fees, maintenance, and mo rent
Useable area in commercial Actual sq feet uses
Rentable area in commercial Useable and % of common area Load Factor of 5% - 15% Bldg Owners & mgrs Assoc International
Sublease Sandwich Lease Partial or full to another-- Salon Original tenant is still liable
Assignment Transfer All to another New ten pays the landlord directly No rts to retake property nor evict if nonpayment of rent
ADA Compliance of Elevators Landlord and Tenant Only forced to add an accessibility if no greater than 20% of cost of orig alt No elevators in less than 3 story, and 3,000 sq feet Must have elevators in all malls/ shopping centers
Unlicensed asst. in RE office can Collect Demographic Set appts for, but cannot show on own Asst in open house, unlock home for and with licensee present Deliver docs via mail or delivery Can Disc features, but not pricing of
Implied Contract All parties agree even if not done expressly similar to Dr. appt.
Offeree Seller
Expressed Contract Terms Time formed Verbal or Written
Valid Contract Binding executed in compliance
Void Contract Subject matter is not legal one party no competent cannot be enforced
Buyer Offeror
Voidable Contract Valid contract voided due to duress or lack of capacity
Legal description of real property No street address legal desc of property Tax parcel #
Purchase Agreement Conveyance Agreement
Bona Fide Purchaser Purchase with Consideration of property Due Diligence Closes Enjoys property
Elements of a contract Offer via Offeror Acceptance via Offoree Consideration (something for something) Capacity Legality
Equitable Interest Life Tenant (mom) Benfeciary of a Trust (Drew)
Novate Give Assignment (person to another person) to a 3rd party in a commercial lease and agreed by Landlord, Assignor and Assignee.
Termination of Property Mgmt Agreement Reimburse 35 days All accts rec/payables, bank reconciliation 75 days Tenant gets Security 5 days 3 Banking days a lll money to owner if no disputes
Residential Rental Agreement records kept 1 year from expiration or at time given to owner
Who may sign for a Non-Residential Agreement Designated Broker
Warranty Deed Entire past history of property is General Specialized is history of last owner Grantor signs and Notorized "Affidvit of Value" Good and clear Title
Bargain and Sale Deet No warranties of liens/encumb of title unless stated Implied Grantor has rt to transfer of the deed Special Warranty Deed
Preliminary Report Schedule B of has Exceptions/Restrictions, such as HOA, CCR, Debit and Credit to seller and buyer
Specific Lien Against the Property prop taxes mechanics lien HOA. CCR Trust deeds/morgages
Released Lien within 20 days when satisfied $1,000 and Actual Damages if not done in time
Quiet Title as in Adverse Possession
Statuatory Agency None is AZ same as designated agency, Facilitator transaction broker
When Commissioner requests of me 14 calendar days
CAN SPAM Act No false or misleading headers must have Physical Address "Opt Out" within 10 days and means to do so
To become an RE Commissioner 5/3 appt by governor no term restriction cannot be an active RE agent
RE Advisory Board 2/3/2/3 Broker, RE Agent and multi fam, Commercial, Public apptd by gov no salary
Entity Employing Broker
To become a Broker 3/5 90 hours 27 hour Broker course in addition or equiv experience 30 hour renewal / 2 yrs
Disciplinary Actions of ADRE Close case "Letter of Concern" in file "Consent Order" cannot appeal if all agree and sign Refers to Atty General
Atty General Notice of Hearings and Complaint with Adm to Judge "Recommended Order" back to Commissioner "Final Order" Supreme Court
Disclosures of RE Agent Latent, material defects Material and or adverse defects Unable to Perform Liens/Encumbrances If buyer or seller, ee broker are family
No license required at Property Management HOA unless paid 1 Non-residental income property or 2 or more if same owner Short Term rentals of less than 31 days
Civil Penalties of Sub and Unsub lands Following the Hearing: $1,000 per infraction
Designated Broker maintains records of Trust Fund Acct Bank Recondiliation Client Ledger Reimbursement Interest outside $3,000 taken out of acct Done Monthly
Who can sign for the RE Broker on a Trust Acct. Licensed only, can withdraw In writing and paperwork on premises
Who can sign for the PM Trust Acct. Licensed or nat person ee unlicensed can: Deposit Sign
Employment Agreement Personal Service Agreement Broker Gets paid
Personal Services Agreements Listing Agreement Buyer Broker Agreement Non -Residential Agreement Employment Agreement
Summary Suspension Following hearing have 20 days to respond, if do not response within 30 days Commissioner enforces Suspension
Digital Filing of Docs Can Reconstruct Able to make hard copies for Commissioner Legible Confirmation of all $ handled by Broker Copy of : Sales Contract Settlement Escrow Instructs and all agreements Release of Escrow $
Subdivided Lands 6 or more lots Public Disclosure Report Not guaranteed by ADRE anything over 160 acres is exempt of repor
Exemption for Public Reports 1 buyer of 6 or more lots any over 160 acres lot size 1 within 5 years commercial or industrial all roads, utilities are completed and paid for
Lot RSVP less than $5,000 Dep down in one day Publc report within 15 days and /or prior to contract If no contract can rescind within 7 days and buyer in writing 5 days seller must refund deposit plus interest accrued
Disclosure Public Report Adj. lands and use des Who give utilities common and rec fac assurance of completed improvements schools, shop, fire, medical garbage taxes and assessments owners assoc details flood and drainage Given Prior to Contract signing
Voidable Sales of Lot purchase No public report 7 days grace period to rescind on unimproved lot if not seen, 6 months to rescind Receipt executed Deed by 60 days
5 or less than lots "Affidavit of Disclosure" Rescind within 5 days of Affidavit
Offer of Unsubdivided Land Must have name and address of owner/agent legal description of and area encumbrances use of land permanent access avail water, sewage, water, util
Builders and Developers can use Blanket Loans
RE Recovery Fund 2/5 yrs 2 yrs to file, 5 to get judgment June 30 - $600,000 in fund $30,000 per trans $90,000 per licensee
Fee Simple Absolute/estate gives owner the greatest interest possible and is of indefinate duration Indefeasable A Fee Estate
Fee Simple Determinable the property automatically reverts back to the Grantor upon the occurrence of specified event or condition
Freehold Estate--Fee Simple and Fee Simple Defeasible Own real property of unlimited duration: Fee Simples and Defeasible Life Estates Estates for years, will or sufferance Life Estates
Leasehold Estate own real property estate of certain duration also called a Non Freehold Estate Tenancy for years, at will and sufferance
Under Life Estates Conventional Legal Life Estates
Conventional Life Estate (PRO) Pur Autre Vie- Remainderman Reversion Ordinary
Legal Life Estates Homestead, Dower and Curtesy, Marital Life Estate
Non Freehold Estate A Leasehold
Manufactued Homes Affidavit of Affixture when considered perm attached via Tie Downs
Mobile Homes prior to 1976 No HUD
Fructus Industrialis Cultivated Emblements
Economic of Real Property (SIPL) Scarcity Improvements (bldg onto the land) Permanence of Investment Location/Situs
Physical of Real Property (UII) Unique Indestructible Immobile
Bundle of Rights in Estates in Land Sell Lease Encumber Use Enjoy Exclude Will
Life Tenant Example is mom lives in my home tip she dies
Beneficiary Deed Estate in Expectancy Auto to Grantees upon death No warranties and must be recorded Conveys an interest including any liens/debt/encumb Revocable
Easement Appurtenate Runs with the Land On the Serviant Tenanment Receiver is the Dominant tenement
Easement in Gross Does not go with the land as it just allows Use of the land Upon death or sale of land it is no longer valid
Joint Tenancy with Rt of Survivorship Must be at same time 50/50 rights to all
Community Property Married only surviving spouse receives 50 % as others may be listed to inherit dec spouses portion of property--
Tenancy in Common Varies in % of ownership given away as no survivorship
Community Property with Rt of Survivorship only married and this one gives full ownership to spouse upon death
Condos Fee Simple ownership with fractional Interest in common areas Tenants in Common Go to Fire, Bldg and Life and Safety dept. for disputes
Co op Corporation with owning as stock 1 mortgage and title so, each has a Proprietary Lease as a personal prop interest Not regulated by AZ Condo Act
Camping Contract membershps Must have a public report rescind in 3 days
Police Powers Safety, Health, Welfare and Morals of Community 10 amend of Constitution Enacts Substantive Laws
Property Tax Lien Superior to any other lien Voluntary Lien
Tax Lien Sales Certificate of Purchase every February
Categories of IRS Tax Personal Passive, Rent Portfolio, Stocks Phantom - Lim Partnership with 0 income
Exclusions of Gross Income to IRS Lived 2/5 years of your home 0 tax on if less than 250,000 per single of cap gains made
1031 Exchange Tax Deferred like kind exchange 3, 200%, 95% rule 3 prop within 45 days have 180 days to close must have qualified intermediary facilitator, straw man
Property Depreciation 27.5 years
All Deeds must be notorized
Constructive Notice Trumps an actual notice Mailbox Rule 5 days via Cert or reg mail
Flood Insurance required all HUD
CLUE Report 7 Goes back to 7 years of history on property claims by ins company
Owner Carry Back on Land Contract, Agreement for Sale Vendor finances Vendee with 0-20% down, 30 days
Purchase Money Mortgage Deed of Trust refers to any loan, whether owner, bank, etc or combo of both for purchase of real property
Calculate % of an equation Large # A - small #B = C; then you: C Divided by Large # A = %
Nonconforming Use bldg or land use that does not conform to the zoning ordinance if grandfathered rts it is ok, if a fire, abandoned or destroyed then it has to conform to zoning ordinances. not a encumbrance as good for us.
Tacking Adverse Possession
Subrogate Substitute
Deed of Reconveyance Deed of Trust Release the Deed
3 components of a Deed THP Testimonium Habendedum Premises
FEMA Federal Emergency of Homeland Security
Seisan ownership or interest in property to possess,
Types of Title Insurance policies ALTA Residential Extended ALTA Plain Language
Devise To Will
Habendum to have and to hold
Components of RE Value in DUST Demand Utility Supply Transferability
Highest and Best use of property Net return on money over time
Depreciation in 3 ways Physical Deteriation Location Obsolence Functional Obsolence - poor design
Gross Rent Multipler GRM price divided by gross income the higher the number the better for the seller
Appraiser FIRREA FEE is based on time and difficulty know market
1 Acre 43,560 feet
Cap Rate T small # divided by Big # = cap rat %; or $ of property divided by % = $ amount
Fannie Mae 417,000 single Do not give out loans, just insure them
FIRREA Reform and Recovery Act and placed FDIC, manages and disposes of failed institutions, such as savings and loans. Appraisers assoc also part of this
Progress to Regress highest price home compared to lower priced market in your area
Broker Price Opinion trumps as appraiser makes this
Guest Cottage rules less than 640 sq feet cannot rent cannot have kitchen or food prep area
Ginnae Mae Loans HUD controls it Self Financing and insurance guarantee via government. Primary financing mechanism for all govmt insured or guar mortgage loans it provides access to capital for affordable housing
Fannie Mae and Freddie Mac Loans purchase a pool of loans a secondary mortgage market now on the stock market and public owned Insures!! does not loan out money Freddie Mac is largest purchaser of conventional loans
Metes and Bounds oldest style and start with a landmarks like trees, etc called monuments Points of Beg POB
Riparian Doctrine In Az to land, not water own lands next to a waterway
Range Lines 6 miles north and south, but measure space of east and west
Township Lines
Unsubdivided lots 36-160 acres of 6 or more parcels just exempt from a public report if 5 or less lots...
Receipt of Publc Report of subdivided lots buyers must sign a receipt that they received the public report prior to signing a contract and must be kept on file for 5 years
Priority of Liens Property taxes special assessments mechanics lien (depends when date of work began)
Property Tax is due October 1 March1-- no later than May 1
A mill for property tax equation is 1/1000 or .001 or set by an amount per $100
Special Assessments improvements that enhance the value of property, sidewalks, sewers, lights, streets, etc
Front Footage part of front of land that faces a street do not use the depth when calculating
Writ of Execution Judgment attach to property and sell it to satisfy debt
Writ of Attachment legal process of seizing real or personal property can be filed prior to court action for judgment so not sold before court has acted held in custody of the court
Lis Pendens as in Mortgage Action/suit pending
Limited Partnership can be asked to pay more into partnership Limited parters Do Not manage Share in profits and losses
Real Estate Investment Trusts REIT 75% of holdings must be in RE must be at least 100 owners title and possession to the Trustee, who manages trust prop for their benefit investors purchase ownership in the trust, which is transferable
Fiduciary duty of an Agent to client Loyalty Obedience Disclosure Confidentiality Reasonable care and diligence Accountability
CEU requirements for 24 hours to Renew License Agency Law Contract Law Commissioners Disclosure Fair Housing Standars Legal Issues General RE
Methods to transfer Gen and spec Warrenty Deeds Quit Claim Deeds, Beneficiary Deeds, Sheriffs Deeds, Probate, Escheat, Foreclosures, Prescription
Prescription To claim a right to use or title by virtue of long use and enjoyment
To Convey real property in writing, motorized and delivered to person whom interest is conveyed
Deed of Reconveyance--noun Deed of Trust A INSTRUMENT TO DO SO
Deed of Release--verb Mortgage, Deed of Trust, any Lien, Judgment Same as a Quit Claim Deed It RELEASES a property
Certificate of Acknowledgment Notorized
Title Insurance Standard Residential Extended ALTA ALTA Residential Purchase Contract Coverage
Standard/Residential Title Ins. Cvg the basics on the title
Extended ALTA title ins Cvg adds mechanics liens HOA liens Someone else has a easement on your land others rt out of leases, options, contracts
ALTA Purchase Contract title ins cvg. 3 all extended ALTA and forced removal of structure due to encroachment onto someones property plain and understandable language, gap automatic inflation coverage up to 150%
Commercial Banks Take Deposits and make loans
Investment Banks Securities
Mortgage Banker originates loans and may sell loans to investors
Usury Law to control what creditors charge in interest. in Az 10% cap, but negotiable if agreed upon for both parties
FHA Federal Housing Administration INSURES LOANS of approved FHA lenders Largest Insurer in the world
VA Loans military GUARANTEED LOAN o down, o mortgage insurance, can be reused and closing costs are set what is reasonable for buyer to pay
USDA Rural loans less than population of 200,000 18 yrs or older, us citizen, legal alien, credit 640 plus, debt to income 29% to 49% max with all debt
Residential loan requirements for 1-4 family units
Commerical loans 5 or more family units
Holder in due course takes an instrument in good faith
Ammortization loans pay more interest in beg of loan, more principle near end Schedule repayment loan
Fixed Rate loan same entire loan
Adjustable Loan interest varies within a benchmark and may have added spread ARM
blanket loans for builders and dev who purchase more than one property
Interest only loan usually have a balloon pmt usually a 5-10 year loan borrowers have rt to pay more than the interest
Private Mortgage Insurance. .5 - 1 % of LTV rato. The higher this is more adv to the Seller/Lender Once reach 50% balance no longer required or pay down mortgage to 78% lender has to remove via Lenders Protection Act
Owner Carryback Seller finances all or part of the loan Restrictions and regulated by Dodd Frank Usually utilizes a Promissory Note
Truth in Lending Act--RESPA Dodd Frank Act Lender must give info when req Seller cannot select Title Insurance co unless paying all himself
Loan Assumptions can be conventional, but usually FHA insured or VA guaranteed loans
Federal Reserves on Interest Does not control directly, but sets Federal Funds Rate in which banks interest to borrow from each other. Been 0 % since 2008 and the lower the percentage = more money to banks to lend out
Day of closing owned by buyer
Promissory Note Never recorded it is a written promise to pay a debt, often in a Seller Carryback loan
Hypothecate A pledge of something as collateral security for a loan enables lender to liquidate, for ex a car loan
Tenement Add a bldg to a land
Appurtanance Rights, privilege, improvements
Created by: coco clark
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