Arizona Real Estate Licence Exam Prep

police power

zoning enforcement
code enforcement
city planning enforcement

P.I.T.I. impound account

required on all FHA and VA loans
Principle
Interest
Tax
Insurance

Points

lenders charge to increase their return
either 1% of loan amount or 1/8% of lenders investment

Prior Appropriation

Water use depends on priority of use; "first in time first in right"; in times of drought, junior appropriators get cut off completely before the more senior appropriators

hereditament

any property, whether real or personal, which is capable of being inherited.

caissions

small parcels of land that serve as support foundations

intangible

meaning that they have no physical form ie rights of way

tangible

Capable of being touched

real property

Land, including land improvements, structures and appurtenances thereto, but excludes movable machinery and equipment.

littoral rights

(1) A landowner's claim to use water in large navigable lakes and oceans adjacent to his or her property. (2) The ownership rights to land bordering these bodies of water up to the high-water mark.

assessment rates

residential 10%
vacant land 16%
commercial property 20%

special assessment taxes

Payments for improvements

escheat

The reversion of property to the state in cases where a decedent dies intestate without heirs capable of inheriting, or when the property is abandoned

eminent domain

the right of the state to take private property for public use

police power

the power to temporarily confiscate land buildings in emergency

riparian rights

The right of a landowner to the use of water on or adjacent to his land.

exempt well

permit required to drill well
less then 2 acres and pumps maximum of 35 gallons per minute

bill of sale

A receipt that serves as written or formal evidence of the transfer of ownership of goods

right of emblement

right to havest money crops which mature after leaving property

trade fixtures

Items of personal property brought to the premises by the tenant that are necessary to carry on the trade or business to which a rental property will be devoted

chattel

an item of personal, movable property; slave

law of situs

governed by laws of where property land is situated

appurtenant

Those rights,privileges,and improvements that belong to and pass with the transfer of real property but are not necessarily a part of the property,such as right- of- way,easement,and property improvements.

municipalities

a local government unit that is incorporated by the state and has a large amount of self government

ad valorem

According to Value

M.A.R.I.A

-Method of Attachment
-Adaptibility
-Realtionship of the parties
-Intention
-Agreement

bundle of rights P.U.E.E.T

possession
use
encumbrance
exclusion
transfer

allodial system

free ownership which gives all rights except freedom and destruction

zoning categories

residential (r)
commercial (c)
industrial (I)
agricultural (a)
proposed development (pad)

government rights
P.E.T.E

police power
eminent domain
taxation
escheat

master plan

25 year plan of future development

property taxes

levied 1st jan due October and march
if not paid 16% intest charged

tax lien sales

sale of tax liens by state sold in febuary lowest bidder will get a certificate of purchase to pursue the debt if not paid within 3 years can foreclose on property

license

the act of giving a formal (usually written) authorization

easement appurtenant

Easement that is intended to benefit the property of the easement holder

easement in gross

A personal right to use the land of another.

easement by express agreement

grant an easement by right of eminent domain

easement by implication

Occurs because of necessity, such as the conveyance of a land-locked property.

easement by prescription

an easement acquired by continuous, open, and hostile use of the property for the period of time prescribed by state law

community property

property acquired during marriage owned separately and equally by both spouses.

joint tenants with right of survivorship

equal rights to a property however if one owner dies, that owner's share goes to the other owner or split amongst the others

tenants in common

shared ownership of a single property among two or more persons; interests need not be equal and no right of survivorship exists

freehold estates

Estates of indeterminable length, existing for a lifetime or forever

less than freehold

Those interests held by renters/lessees. A lease.

free simple absolute

the highest and most complete form of ownership, potentially infinite duration

fee determinable

A fee simple estate qualified by a special limitation. Language used to describe limitation includes the words, "so long as" or "while" or "during." if terminated automatically reverts to grantor

fee conditional

provided that" "on condition that" property is used as etc etc if violated grantor or grantors heirs must pursue court action to get property back

fee tail

can only be passed to blood relatives illegal in Az

ordinary life estate

an ordinary life estate ends with the death of the life estate owner and may pass back to the original owners or their heirs (reversion) or to a named third party (remainder).For example, John King grants a life estate in a property to Mary Brown, to endu

estate for year

lease for set period of time

estate from period to period

Leasehold interest that automatically renews until either party gives notice to change the terms; month to month; not terminated by death of either party, nor sale of property

estate at will

either the landlord or tenant may agree to terminate the lease "at will

estate at sufferance

Tenant remains on the property, without the landlord's permission, after the lease has expired

gross lease

Tenant pays rents, landlord pays all expenses of property; most common form of residential lease

net lease

Lease requiring tenant to pay not only rent but also taxes, insurance, utilities and repairs

percentage lease

Common lease for retail property; often a base monthly rent plus a percentage of any gross sales over that amount

index lease

allows rent to be increased or decreased periodically based on a stipulated index.

graduated lease

A lease where the rent will increase periodically in amounts specified in the lease, as contained in the escalation clause.

ground lease

A lease of land only, on which the tenant usually owns a building or is required to build as specified in the lease. Such leases are usually long-term net leases; the tenant's rights and obligations continue until the lease expires or is terminated throug

assignment lease

A tenant transfers all leasehold interests to new lessee. Original tenant retains secondary liability for paying the rent.

lease terminates

when it expires
agreement of both parties
abandonment
total destruction
condemnation
merger

easement by necessity

occurs when land does not have access to a street or public right-of-way and is landlocked

involuntary alienation

The act of transferring property to another without the owner's ?consent and usually carried out by operation of law, i.e., by adverse ?possession, eminent domain, escheat, or to satisfy delinquent tax or ?mortgage lieans. 12:202?

grantor

giver of the deed

grantee

reciever of the deed

habendum clause

to have and to hold

legal description

not street address uses government surveys etc

covenant of seizin

the grantor owns the property and has right to convey

convenient of quiet enjoyment

the grantor will defend grantees title against clams by third parties if the title turns out to be defective

covenen against further encumbrances

grantor promises the propert is free from encumbrances apart from those already revealed

further assurance

in both special and general warranty deeds , the grantor agrees to perfect or correct the title if necessary during their lifetime

warranty forever

nforevermore general warranty deeds the grantor agrees to defend he title against claims, if he doesn't he granted can sue for damages up to property value at time of sale

patent deeds

first deeds issue by government

conveying deeds

bargain and sale deeds
special warranty
general warranty

bargain and sale deed

sold generally by state or government ie foreclosures etc

sheriffs deed

foreclouse due to non paymen of mortgage or other defauts

treasurers deed

failure to pay taxes

executors deed

the selling of estates by probate

trustees deed

result of foreclose on title of deed loan

general warranty

3 covenants and 2 warranties greatest protection for purchasers

special warranty

most common used
3 covenants and 1 warranty

quit claim deeds

releaseing of minor interests in property

gift deed

used between relative to pass property to another as a gift

disclaimer deed

todeedforeclouse buy a house etc without spouse they must sigh disclaimer deed

deed recording

must be accompanied with notorized affidavit of value with signatures of buyer and seller once recorded affadavit of value sent to tax assessors office

proof of title

certificate of title
torrents certificate (not in az)
title insurance (most common)