A property located in an Arizona '100-year floodplain' (Zone AE on FEMA maps) faces which additional costs compared to a non-flood zone property?
Why Mandatory flood insurance for federally financed mortgages and potentially higher construction costs for flood-proofing Is Correct
Answer B: Mandatory flood insurance for federally financed mortgages and potentially higher construction costs for flood-proofing
Exam Tip: Environmental
Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.
Key Environmental Terms in This Question
People Also Study
Related Arizona Questions
- The National Flood Insurance Program (NFIP) in Arizona requires flood insurance for properties:Environmental
- Arizona's requirement for a Flood Zone Disclosure is triggered when a property is located in:Environmental
- In Arizona, a 'floodway' versus a 'flood fringe' in FEMA flood maps are:Land Use & Zoning
- Under Arizona law, a property located within a Special Flood Hazard Area (SFHA) requires:Environmental
- An Arizona property located within a Wellhead Protection Area (WPA) may face:Environmental
- In Arizona, a lender who fails to comply with TRID disclosure requirements may face:Finance
- An Arizona property has a potential gross income of $108,000, a 6% vacancy rate, and $36,000 in operating expenses. If properties in the area sell at a 7.5% cap rate, what is the estimated value?Real Estate Math
- An Arizona homeowner makes $200,000 in insurance claim after a fire destroys their property. They paid $350,000 for the property 5 years ago (land value $80,000; building $270,000). After receiving the insurance payment and rebuilding costs of $180,000, what is their approximate net position?Real Estate Math
Key Terms to Know
A non-possessory right to use another person's land for a specific purpose.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Study This Topic
Practice More Arizona Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →