Under Arizona law, a property located within a Special Flood Hazard Area (SFHA) requires:
Why Federal flood insurance if the buyer is obtaining a federally backed mortgage Is Correct
Answer B: Federal flood insurance if the buyer is obtaining a federally backed mortgage
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.
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Key Terms to Know
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
State-Specific Concepts
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