Arizona Real Estate
Tim's Arizona City Residential property has an assessed value of $43,500 and the tax rate is 4%. What is Tim's tax bill? A. $919.50 B. $1,087.50 C. $1,740.00 D. $3,480.00
$1,740.00
To lower the interest rate on a loan, the borrower is willing to pay two discount points. If the lender will loan the borrower 80% of the $200,000 purchase price, how much will discount points cost? A. $1,600 B. $2,000 C. $3,200 D. $4,000
$3,200
A 2,500 SF property is advertised at $18 per square foot. What is the tenant's monthly rent payment? A. $1,667 B. $3,750 C. $4,500 D. $5,400
$3,750
The maximum amount gain that would be tax-free to a married couple who sells their personal residence would be A. $125,000 B. $250,000 C. $500,000 D. unlimited
$500,000
It was determined that the assessed value of Joe's house is $15,000, and the tax rate for Arizona City is $4.00 per $100 of assessed value. Calculate Joe's tax bill. A. $375 B. $600 C. $3,750 D. $6,000
$600
An apartment complex rents as follows: Three 1 br at $350 per month; 15 2br at $440 per month; three 2br at $495 per month. You determine a 10% vacancy rate and 3% credit losses per year. The annual property tax is $7,300; the insurance is $2,100. The owner takes $6,500 per year in depreciation. An investment broker suggest a 10 1/4% capitalization rate. What is your estimate value? A. $838,726 B. $814,561 C. $775,311 D. $881,186
$838,726
You can contact a former client for up to _________ after a transaction closes even if that client is on National Do Not Call Registry. A. 9 months B. 12 months C. 18 months D. 24 months
18 months
The principal of _______ affirms that value is created by expected benefits to be derived in the future. Which of the following is the correct insertion? A. Anticipation B. Conformity C. Progression D. Substitution
Anticipation
After attending a presentation, Barney signed a contract to purchase a timeshare near Lake Mead, paying a $1,000 membership fee. The next morning, he regrets his decision. does he have any recourse? A. no, he signed the contract. His only recourse is to sell his timeshare B. Yes, he has 24 hours to cancel the transaction and get his money back C. Yes, he has until midnight of the next day to cancel the transaction and get up to 75% of his money back. D. Yes, he has until midnight of the 7th calendar day to cancel the transaction and get his money back.
Yes, he has until midnight of the 7th calendar day to cancel the transaction and get his money back.
Which of the following is true about land descriptions? A. an acre is 640 feet square B. a township is the same as a tier C. a 1/2 mile square is 160 acres D. all sections contain 640 acres
a 1/2 mile square is 160 acres
Arizona state law provides for which of the following regarding a mechanic's lien? A. extension of time for filing the lien by agreement B. a 20-day preliminary note C. filing within 60 days for the original contractor D. priority over mortgages and other liens, including property tax liens
a 20-day preliminary note
Which statements about liens is false? A. a lien does not prevent the transfer of property B. a lien is a financial encumbrance C. a lien is a possessory interest D. a lien may be placed against personal property
a lien is a possessory interst
Which statement indicates that the listing agreement is an exclusive right to sell? A. a statement about the negotiated commission percentage B. a statement that agreement terminates at the end of the listing period C. a statement that the broker is paid regardless of who sells the property D. a statement that the broker will list the property in the MLS
a statement that the broker is paid regardless of who sells the property
The lender will require a two-month reserve for insurance at closing. The insurance premium for a one-year policy has been paid outside of closing. The entry on the closing statement is: a. Debit the seller b. Credit the buyer c. Debit the buyer d. there is no entry
Debit the buyer
Of these transactions, which would not fall under the provisions of RESPA? A. April is buying a condominium in a 20-unit building B. Brad is buying a three-unit apartment building as an investment C. Carla is buying a house she might turn into a bed and breakfast D. Dick is buying an old bard to turn into a car was
Dick is buying an old bard to turn into a car was
Bob, the seller, signs an exclusive right to sell agreement with Bill, then signs exclusive agency agreements with Rick and with Don, trying to get the most exposure for his house. If Don sells the house, who gets paid commission? A. Don B. Rick and Don C. Bill and Don D. Don, Rick, Bill
Don, Rick, Bill
Mary, Donna, and Meg now co-own a property as joint tenants. Mary and Meg are killed in a car accident. What is Donna's interest in the property? A. Donna owns the property in severalty B. Donna is a joint tenant with 100% interest C. Donna still owns 33%, and the rest is split between the heir's of Mary and Meg D. The estate ends at the death of the majority of the co-owners
Donna owns the property in severalty
funds for a contract of sale are held in a brokers trust account for the benefit of A. the broker until close of escrow B. the buyer only C. both the buyer and seller D. the seller only
both the buyer and seller
What is another word for principal? A. agent B. client C. customer D. fiduciary
client
Which type of residential financing is not insured or guaranteed by the government? A. conventional mortgage B. FHA-insured mortgage C. USDA rural development mortgage D. VA-guaranteed mortgage
conventional mortgage
If a parcel of real estate is near a toxic waste site, the agent would be obligated to: A. conduct a phase one audit B. disclose the fact C. do nothing if he is not an agent for the buyer D. disclose only if it is a superfund site
disclose the fact
Mr. Williams owned his home for 15 years. It originally had an estimated life of 40 years. He has maintained his home in excellent condition. He decided to sell his house. It was appraised to be only 6 years old. The appraiser's determination exemplifies the concept of: A. Physical age B. Effective age C. Chronological age D. Depreciation table
Effective age
A standard form of title insurance policy would Most Likely Not protect against loss resulting from A. encroachment on the property B. forgery in the chain of title C. lack of capacity of the grantor D. undisclosed liens or encumbrances
encroachment on the property
The purpose of using PITI to structure mortgage payments is to A. allow the borrower to obtain actual cash from the equity built up in the property. B. allow the lender to participate in any earnings, income, or profits generated C. ensure that enough funds are collected to cover taxes and insurance premiums D. include the financing of personal property, such as appliances or furnishings
ensure that enough funds are collected to cover taxes and insurance premiums
A borrower is required to put 10% down for the purchase of a property. The 10% down would be considered A. equity B. boot C. tax shelter D. leverage
equity
With a VA-guaranteed loan, the COE A. establishes the amount and status of the veteran's eligibility B. limits the price a veteran can pay for a house C. sets the maximum guaranty assistance on a loan D. states the value of the subject property based on an appraisal
establishes the amount and status of the veteran's eligibility
All of the following would be the responsibility of a real estate agent EXCEPT A. reasonable skill and care B. accountability C. obedience D. financing
financing
The listing contract is an agreement between a broker and seller in which the broker is hired to A. find a ready, willing and able buyer B. become a universal agent for the seller C. exercise power of attorney on behalf of the seller D. hold open houses
find a ready, willing and able buyer
Mrs. Martin owns a house on a corner lot, and tears the house down in order to get a better price for the land. This is an example of A. substitution B. economic depreciation C. highest and best use D. contribution
highest and best use
Deed restrictions are placed on real property to A. force conformity to building costs B. limit the use of the subject property by the grantee C. force conformity to city ordinances D. carry out the role of the planning commission
limit the use of the subject property by the grantee
What is the name of the 1996 federal law that requires states to develop a procedure to notify community residents of a sexual offender living in the area? A. adam's law B. amber's law C. casey's law D. megan's law
megan's law
Seller Sam calls a real estate agent to list his home. Sam tells the agent that he wants $156,000 in his pocket at closing and the agent can have the rest for the commission. What type of listing would this be? A. exclusive agency B. exclusive right to sell C. net listing D. open listing
net listing
How many brokers can a licensee work for at the same time in Arizona? A. one at a time B. two, with Department approval C. two, if he declares he is inactive D. two, if one is a property manager
one at a time
What is the borrowing instrument that permits additional sums of money to be loaned by the same security device? A. subordination clause B. partial advance C. obligatory advance D. open-end mortgage
open-end mortgage
In an option, the option binds the: a. optionee b. optionor c. broker d. salesperson
optionor
The doctrine of water usage in Arizona is known as A. riparian B. prior application C. reliction D. littoral
prior application
Which lien would be paid first in the event of a foreclosure sale? A. judgement lien B. mechanic's lien C. mortgage lien D. property tax lien
property tax lien
Which Item is tax deductible for homeowners? A. credit card interest B. gas service fees C. maintenance fees D. property taxes
property taxes
Generally speaking, someone who owns property along a river is said to have _______________ rights. A. appropriative B. littoral C. principal D. riparian
riparian
When a person has the right to use the water adjacent to his land, this is referred to as A. navigable B. riparian C. effluent D. INA
riparian
Penny formed a joint tenancy with Samuel. Penny is married to Ralph. Penny dies, and one week later Samuel dies. Who owns the property? A. ralph B. penny's heirs C. samuel's heirs D. ralph's heirs
samuel's heirs
The commission amount is by agreement between the seller and the broker; this is according to A. Fair housing act B. sherman antitrust act C. statute of frauds D. statute of limitation
sherman antitrust act
Which of the following would Least Likely be a lawful use for taking homes through the power of eminent domain? A. light rail train in Tempe B. public k-12 shcool C. shopping center D. future freeway overpass
shopping center
Who appoints the members of the Advisory Board? A. the Arizona Attorney General B. the Arizona Governor C. the Arizona Senate D. the Real Estate Commissioner
the Arizona Governor
Who may NOT sign a broker's Property Management trust account? A. the broker's unlicensed assistant B. the broker's client C. a sales person whose license is with the broker D. an associate broker whose license is with the broker
the broker's client
Which of the following statements is false regarding the Real Estate Recovery Fund? A. a party wishing a claim must file a lawsuit within five years B. a real estate licensee may not file a claim against the fund C. the dollar award paid from the Recovery Fund may contain attorney's fees D. the claimant must be a resident of Arizona
the claimant must be a resident of Arizona
Building codes are primarily enforced by A. the granting of licenses B. the issuance of permits C. letters of approval D. zoning laws
the issuance of permits
What does the APR disclosures tell a borrower? A. the annual interest rate the borrower pays on the loan B. the loan-to-value based on the borrower's down payment C. the total cost of the loan including fees and interest D. the total amount of interest the borrower pays over the life of the loan
the total cost of the loan including fees and interest
When a defeasible estate ends, title will pass by all of the following except? A. to the original grantor B. to the original grantor's heirs C. to a specific third party D. by the law of descent
to a specific third party
A real estate mortgage would be an A. involuntary lien B. general lien C. voluntary lien D. statutory lien
voluntary lien
Generally speaking, when would a preliminary title report be prepared? A. three business days after the buyer's offer is accepted B. three business days prior to closing C. when escrow is closed D. when escrow is opened
when escrow is opened
Of these, which is Most Likely to be considered an example of puffing? A. "beautifully-maintained colonial on the most prestigious street in town" B. "country charm on this 5-acre beauty" C. "great bargain fixer-upper located in historic district" D. "stunning lakefront views from this modern condominium"
"beautifully-maintained colonial on the most prestigious street in town"
Janie has listed an apartment for rent and has agreed to a 12% commission. The apartment is on the second floor and the landlord is asking $750 per month. When Janie rents this unit, how much will her commission check be? A. $90 B. $675 C. $1,080 D. $1,296
$1,080
Steve wants to buy enough fencing to go all the way around his 40x50 lot. The 6' high fencing costs $18/ linear yard. How much will Steve spend to purchace the fencing? A. $1,080 B. $6,480 C. $19,440 D. $36,000
$1,080
The sale of property closes on May 11. Taxes are $3,600 per year and have not been paid. Assuming that the buyer owns the property on the day of closing, what is the seller's share of taxes, based on a calendar year? A. $1,200 B. $1,282.19 C. $1,300 D. $1,374.16
$1,282.19
Jan purchased a parcel of land that measures 75 feet wide by 50 feet deep. She plans to construct a fence that will cost her $5.43 per linear foot. How much is Jan's fence going to cost her? A. $950.25 B. $1,357.50 C. $1,493.25 D. $2,036.25
$1,357.5
Jim owns a parcel of property that is 50 feet wide by 150 feet deep. Jim is researching the cost of fencing his property and finds the cost of a simple fence to be $3.57 per linear foot. How much would it cost Jim to put up a simple fence? A. $1,071. B. $1,249.50 C. $1,428. D. $2,142
$1,428
A property could generate $200,500 in annual income. The building has an 8% collection loss, monthly expenses of $4,200, and the capitalization rate is 9%. What is the value of the property? A. $1,206,540 B. $1,489,556 C. $1,667,777 D. $2,096,222
$1,489,556
Prospective tenant Tiffany is ready to sign a lease to rent an apartment for $1,200 a month. What is the maximum security deposit the landlord can require her to pay? A. $600 B. $1,200 C. $1,800 D. there is no maximum
$1,800
Commission is 10% and you get half. How much did you make on that $37,500 sale? A. $750 B. $1,687.50 C. $1,875 D. $3,750
$1,875
A party bought 4.5 acres at $17,000 per acre. A bank now wishes to buy a 50' x 100' parcel at the same price. With this information only, what would be the cost to the bank for its parcel? A. $850 B. $878 C. $1,323 D. $1,951
$1,951
How much would a licensed real estate salesperson have to pay into the Real Estate Recovery Fund at the next renewal when the reserve falls below $600,000? A. $5 B. $10 C. $15 D. $20
$10
Listing agent Sarah procured a lease for 10,000 SF of warehouse space. The rental rate is $4 per square foot and the lease term is for five years. The property owner agreed to pay 5% lump sum commission. what is his commission? A. $2,500 B. $10,000 C. $20,000 D. $40,000
$10,000
Broker Judy agreed to list Tom and Anna's home for $175,000 at a 7% commission rate. If Judy sells the house for full price, what will Judy's commission be? A. $4,000 B. $5,600 C. $12,250 D. $25,000
$12,250
the operating statement on Ken's rental property shows an effective gross income of $48,750 and a net operating income of $28,000. He pays $2,900 a year for insurance, $7,000 a year for property taxes, and $15,600 a year on his mortgage. What is the tax cash flow? A. $2,500 B. $12,000 C. $18,100 D. $23,250
$12,400
Listing agent Ben procured a lease on 12,000 SF of warehouse space. The rental rate is $3 per square foot, and the lease term is six years. the property owner agreed to pay 6% lump-sum commission. What is Ben's commission? A. $7,200 B. $12,960 C. $21,600 D. $25,920
$12,960
A lender agreed to loan 75% of the value of a property. The current interest paid is $650 monthly at a rate of 8 1/2%. What is the value of the property? A. $68,824 B. $88,400 C. $91,765 D. $122,353
$122,353
Mike listed a warehouse for sale. He negotiated 5% commission on the first $2 million, 4% commission on the next $500,000, and 6% commission on any amount over $2.5 million. The warehouse sold for $2.6 million. What is Mike's commission? A. $106,000 B. $126,000 C. $130,000 D. $146,000
$126,000
Kim bought two lots for $205,000. Lot A cost 40% less than Lot B. What did she pay for Lot B? A. $119,583 B. $128,125 C. $128,125 D. $143,500
$128,125
The seller accepts a buyer's offer of $161,500 to buy a home. The appraisal on the property comes in at $163,000. If the lender requires an LTV of 80%, how much is the lender willing to lend? A. $129,200 B. $130,400 C. $145,350 D. $146,700
$129,200
A vacant lot in Cave Creek is valued at $1,000,000. Calculate the assessed value. A. $100,000 B. $120,000 C. $150,000 D. $180,000
$150,000
What is the homestead exemption in Arizona? A. $20,000 B. $50,000 C. $100,000 D. $150,000
$150,000
A seller wants to net $153,400 after paying a 7% commission and after paying 4% closing costs. What must the minimum sales price be? A. $136,526 B. $170,274 C. 171,544.07 D. $172,359.55
$172,359.55
Valley Bank has agreed to lend John $87,900 at 10 1/2% interest for 30 years. John is paying 2 discount points. How much will John be required to pay for the 2 discount points? A. $1,758 B. $1,845 C. $4,395 D. $6,300
$1758
Jack is appraising a new home and determines that the lot value is $14,000 and the replacement cost is $194,500. He finds no remarkable physical deterioration, but thinks that the lack of garage impacts the value. Cost manuals indicate that a garage would cost $30,000 to build. Using the cost approach, what might be Jack's final estimate of value? A. $178,500 B. $208,500 C. $210,500 D. $224,500
$178,500
A parking lot is being constructed on a 222' x 150' lot. Each stall requires 300 square feet of space. If asphalt costs $.50 per square foot, lighting costs a total of $4,000, and it costs $4.50 per front foot for curbs and gutter, what was the cost per parking stall? A. $159.00 B. $186.03 C. $192.11 D. $195.04
$195.04
Comp #3 has three bedrooms; the subject property has four bathrooms. A bathroom in that neighborhood is valued at $4,000. Comp #3 does not have a fireplace; the subject does. A fireplace is valued at $6,000. Comp #3 has a pool; the subject does not. A pool is valued at $12,000. Comp #3 sold for $200,000. What is the comp's adjusted value? A. $198,000 B. $200,000 C. $202,000 D. $210,000
$198,000
A borrower is buying a house for $90,000. He provides a down payment of $10,000. If he pays 3 discount points, what is the total cost of the points? A. $3,000 B. $2,700 C. $2,400 D. $2,000
$2,400
When Stella moved out of her apartment, she left it in pristine condition. It's now a month since she moved out, and landlord Lyle still has not returned any of her $1,200 security deposit. Lyle is now obligated to pay Stella A. $1,200 B. $1,800 C. $2,200 D. $2,400
$2,400
The sale of a property will close on June 16. Taxes are $5,424 per year and are paid in arrears. How will this be reconciled on the settlement statement, assuming a statutory year and assuming that the day of closing belongs to the buyer? A. $2,485.99 debit seller/$2,485.99 credit buyer B. $2,485.99 credit seller/$2,937.99 debit buyer C. $2,937.99 debit seller/$2,485.99 credit buyer D. $2,937.99 debit seller/$2,937.99 credit buyer
$2,485.99 debit seller/$2,485.99 credit buyer
Neighborhood Drug Store has agreed to pay a base rent of $7 per square foot for their 1,500 square foot store plus 4% of their annual gross sales. The store averages $500,000 annual sales. How much can neighbor hood drug store expect to pay for the coming year? What will their monthly rent payments be? A. $1,666.67 B. $1,785.00 C. $2,541.67 D. $2,716.67
$2,541.67
A lender will loan $183,000 after a 18% down payment. What is the purchase price? A. $215,940 B. $223,171 C. $329,400 D. $1,016,667
$223,171
A seller needs to pay an estimated $2,000 in closing costs, $150,000 on his current mortgage, and wants $58,000 in cash for a down payment on another house. His listing agreement obligates him to pay 7% commission to the brokerage. What is minimum selling price can he accept? A. $197,400 B. $218,400 C. $222,600 D. $225,807
$225,807
Tallulah sells her cottage through XYZ Realty, promising to pay commission of 7 1/4%. Both the listing broker and the selling broker are agents at XYZ Realty, which earns $31,646.25 on the deal. What did the house sell for? A. $221,524 B. $225,954 C. $229,435 D. $436,500
$436,500
Mr. Smith pays $300 monthly base rent plus 4.5% gross sales in excess of $80,000 annually. Last year Mr. Smith's gross sales were $125,000. What was Mr. Smith's monthly rent payments? A. $330.75 B. $468.75 C. $600 D. $768.75
$468.75
Jim owns a parcel of property that is 50 feet wide by 150 feet deep. Jim is researching the cost of laying sod on his property and finds the cost of sod to be 69 cents per square foot. How much would it cost Jim to put down sod? A. $1,086 B. $1,180 C. $5,175 D. $10,869
$5,175
Riley got an 75% loan-to-value mortgage from Big Bank to buy a $240,000 house. She will apply her $10,000 earnest money deposit toward the down payment. What is riley's cash to close? A. $40,000 B. $50,000 C. $60,000 D. $70,000
$50,000
What is the required down payment if the purchase price is $286,000 and the lender will approve a loan-to-value ratio of 80%? A. $21,440 B. $53,600 C. $8,000 D. $5,440
$53,600
Jim owns a parcel of property that is 50 feet wide by 150 feet deep. Additionally, he's looking at the cost of putting curbing along the front of the property at a cost of $11 per front foot. How much would it cost Jim to install curbing? A. $550 B. $1,100 C. $1,650 D. $4,400
$550
Two properties were purchased together for $127,000. One property was 25% higher than the other. What was the price of the less expensive property? A. $31,750 B. $56,444.44 C. $70,555.56 D. $79, 375.
$56,444.44
Becca bought a condo from Zach, closing on May 13. Zach paid the annual insurance premium of $450. The policy expired on June 30. Assuming that seller Zach owns the day of closing, how will the expense be prorated on the settlement statement if Becca assumes his? A. $57.50 credit seller/$57.50 debit buyer B. $60 debit seller/$60 credit buyer C. $285 credit seller/$285 debit buyer D. $285 debit seller/$285 credit buyer
$57.50 credit seller/$57.50 debit buyer
A property has an annual income of $50,000 and building expenses of $2,500. Annual debt service is $16,000 and depreciation is 3% of value. Using a capitalization rate of 8%, determine the value of the building. A. $363,812 B. $393,750 C. $575,937 D. $593,750
$593,750
Broker Allen negotiates a three year lease for a client who is renting 5,000 sf. The rent is $14.50 per square foot. The commission rate is 3%. What is Allen's earned commission? A. $1,827 B. $2,175 C. $5,481 D. $6,525
$6,525
Barry gets a 10 year straight loan for $60,000 at an interest rate of 4% to finance the purchase of a cabin in the woods. Every month, he pays the lenders $200. In 10 years, how much will she owe the lender? A. $0 B. $24,000 C. $60,000 D. $84,000
$60,000
As of June 30th of any year, the real estate recovery fund must maintain a balance of to avoid additional fees to licensees: A. $200,000 B. $250,000 C. $300,000 D. $600,000
$600,000
B expects a return of 8% on his investments and is considering a property with an asking price of $670,000. The records show a potential income of $6,200 a month, expenses of $1,500 a month and a vacancy factor of 10%. With this information in mind, what would be the estimate of value? A. $137,000 B. $343,250 C. $612,000 D. $818,250
$612,000
Sam owns a parcel of property that is 105 feet wide by 201 feet deep. Sam finds out that the homeowners in this development have approved sidewalks to be constructed at a cost to each homeowner of $7.50 per front foot. What will Sam's portion of the sidewalk construction cost? A. $750. B. $787.5 C. $1,507.5 D. $1,582.5
$787.5
A lending institution will lend 70% of the sales price. The interest rate is 6% with 8 points. What is the cost is points for the loan if the sales price is $160,000? A. $3,840 B. $5,376 C. $8,960 D. $12,800
$8,960
Calculate the total commission owed on the sale of a property. The commission rate is 6% and the sales price is $150,000. A. $900 B. $2,500 C. $4,000 D. $9,000
$9,000
Helen's Hair Salon pays the landlord a base rent of $650 per month plus 5% of her annual gross sales in excess of $125,000. What was Helen's annual rent in the year her gross sales were $155,000? A. $7,750 B. $9,300 C. $14,050 D. $15,550
$9,300
Ben is buying a house for $200,000. He makes a down payment of 20% and pays an interest rate of 6% on the loan. At the end of the first year of his loan, how much will ben pay in intersts? A. $1,250 B. $8,000 C. $9,600 D. $12,000
$9,600
A young couple purchases a home for $130,000 and receives a $120,000 loan at 9%. What is the first month's interest? A. $900 B. $974 C. $1,080 D. $1,170
$900
Abe's stable monthly income is $3,500. Every month he pays: $250 car payment, $100 student loan payment, and $50 gym membership. What is the maximum monthly mortgage payment he would qualify for on a conventional loan (assume a front-end ratio of 28% and a back-end ration of 36%)? A. $1,260 B. $980 C. $910 D. $860
$910
Freddie has an annuity that pays 6.5%. He receives a check for $525 every month. What is the prinicpal of the annuity? A. $40,950 B. $80,769f c. $90,623 D. $96,923
$96,923
How much of a down payment is required for a VA guaranteed loan? A. 0% B. 3.5% C. 5% D. 10%
0%
The required down payment by the VA on a non-graduated payment guaranteed loan is _______% of the loaned amount. A. 3.8% B. 1.25% C. 3.5% D. 0%
0%
the required down payment by the VA on a non-graduated payment guaranteed is __________% of the loaned amount. A. 3.8% B. 1.25% C. 3.5% D. 0%
0%
What is the maximum security deposit allowed under the Arizona Landlord Tenant Act? A. one month's rent B. 1 1/2 month's rent C. 1 1/2 month's rent plus last month's rent D. first and last month's rent
1 1/2 month's rent
How many members are on the Advisory Board of the Department of Real Estate? A. 6 B. 10 C. 12 D. 14
10
Valley Bank has agreed to lend John $87,900 at 10 1/2% interest for 30 years. John is paying 2 discount points. If John had not paid the 2 discount points, what would his interest rate have been? A. 10 3/4% B. 11% C. 11 1/4% D. 12 1/2%
10 3/4%
Under the federal CAN-SPAM Act, companies must honor a consumer's opt-out request within A. 10 business days B. 30 calendar days C. 45 business days D. 3 months
10 business days
Before a tenant can exercise the self-help for minor defect provision, the tenant must give the owner how many days to cure the defect: A. 3 days B. 5 days C. 7 days D. 10 days
10 days
An assured water supply is one that can adequately meet the needs of the proposed development for at least _______ years. A. 50 B. 75 C. 100 D. 125
100
You pay $20,000 for a lot by putting $10,000 down and borrowing the balance. Prior to making any loan payments, you sell the lot for $30,000. What was your percent profit on your cash invested? A. 50% B. 66.67% C. 100% D. 150%
100%
Sam owns a parcel of property that is 105 feet wide by 201 feet deep. Sam finds out that the homeowners in this development have approved sidewalks to be constructed at a cost to each homeowner of $7.50 per front foot. What is the frontage dimension of Sam's property? A. 105 feet B. 100.5 feet C. 201 feet D. 306 feet
105 feet
A commercial property sells for $319,200. A look at its operating statement shows an effective gross income of $70,000 and operating expenses of $32,000. What would be an appropriate cap rate to use when evaluating a similar property? A. 2.2% B. 4.5% C. 8.4% D. 11.9%
11.9%
Licensee Louise missed the deadline to renew her license. She has _________ to complete the renewal requirements and reinstate her license. A. 3 months B. 6 months C. 9 months D. 12 months
12 months
Ivy's account has balance of $6,800. Every month she gets a check for $68 in interest. What is the interest rate on this account? A. 5.6% B. 8.3% C. 10% D. 12%
12%
According to the Arizona Landlord Tenant Act, once a lease terminates and a tenant demands the return of the security deposit, the landlord must return the security deposit and give a full accounting in how many days? A. 14 calendar days B. 7 calendar days C. 7 business days D 14 business days
14 business days
Rich purchased a vacant lot and started construction on a commercial building. Rich's current assessment ration is ___________%. Once the building is completed, Rich's assessment ratio will be _____________%. A. 10/15 B. 10/18 C. 15/18 D. 15/15
15/18
A 90 x 150 lot sells at $80 per front foot. An adjoining property is selling at $.75 per square foot. If a buyer has a total $10,200 to invest and buys the whole of the first lot and as much as his money will pay for in the adjacent lot, which is the total square footage of land purchased? A. 13,500 SF B. 15,800 SF C. 17,500 SF D. 23,625 SF
17,500 SF
How many hours of approved continuing education must an Arizona Real Estate Salesperson complete during each renewal cycle? A. 12 hours of specific topics + 6 hours of electives B. 18 hours of specific topics + 6 hours of electives C. 24 hours of specific topics + 6 hours of elective D. 30 hours of specific topics + 6 hours of electives
18 hours of specific topics + 6 hours of electives
It's May, and Jane is selling her warehouse property to another investor. If she wants to take advantage of the provisions of Section 1031, how long does she have to purchase an acceptable like-kind property as an exhange? A. 30 days B. 45 days C. 120 days D. 180 days
180 days
Stan is looking at two rectangular lots that are adjacent. According to the plat map, Lot A has a square footage of 46,060, and Lot B has square footage of 43,005. The common boundary they share is 235 feet long. What is the width of lot B? A. 183 B. 186 C. 189.5 D. 196
183
The lead paint disclosures are required for any house that was built prior to A. 1978 B. 1982 C. 1992 D. 2001
1978
Which of the following is not a participant in the secondary mortgage market? A. FNMA B. FHA C. FHLMC D. GNMA
FHA
Which statement about FHA-insured loans is TRUE? A. FHA loans are targeted to low-income borrowers B. FHA loans require a smaller down payment than conventional loans C. FHA provides funds directly to borrowers D. only first-time homebuyers can qualify for an FHA loan
FHA loans require a smaller down payment than conventional loans
Appraiser qualifications are required by A. federal reserve B. HUD C. Sherman Antitrust act D. FIRREA
FIRREA
The initial loan amount amount on a full amortized fixed-rate loan is $200,000 with an interest rate of %5. The monthly payment of P&I is $1,073.64. What is the balance of the loan after the first month's payment? A. $198,926.36 B. $199,166.67 C. $199,759.69 D. $200,000
199,759.69
Which of the following be the largest area? A. 2 sections B. 1/10 of a township C. 2 miles square D. 2 square miles
2 miles square
Which of the following would be the largest area? A. 2 sections B. 1/10 of a township C. 2 miles square D. 2 square miles
2 miles square
Sunland Bank is willing to make a loan of $77,500 at 9% interest, but Tom is paying 4 discount points. If Tom would like an interest rate of 8 3/4%, how many additional points will Sunland Bank charge him? A. 3/4 of a point B. 1 point C. 2 points D. 3 points
2 points
A real estate license is granted for A. 1 year B. 2 years C. 3 years D. 4 years
2 years
When a person declares a tax-free gain on a personal residence, the minimum holding period is A. 12 months B. 18 months C. 2 years D. none required
2 years
The N 1/2 of the NW 1/4 of the SW 1/4 of section 32 contains how many acres? A. 20 acres B. 40 acres C. 160 acres D. 320 acres
20 acres
If the percentage of renters in a community exceeds 50% many lenders require that the homeowner's association reserves be hat percentage of HOA budgeted income? A. 5% B. 10% C. 15% D. 20%
20%
A county road is 68' wide and the county has a 50' setback on each side. How many acres are contained in the first mile of road and right of way? A. 13.86 B. 14.30 C. 20.36 D. 20.83
20.36
A parcel of land is 500 feet wide and 135 yards long. What's the square footage of the property? A. 22,500 B. 67,500 C. 202,500 d. 607,500
202,500
Sam owns a parcel of property that is 105 feet wide by 201 feet deep. Sam finds out that the homeowners in this development have approved sidewalks to be constructed at a cost to each homeowner of $7.50 per front foot. How many square feet does Sam's parcel contain? A. 6,120 sf B. 12,240 sf C. 20,200 sf D. 21,105 sf
21,105 sf
To keep the range lines as nearly as possible six miles apart, a correction line is made as the line continues north. This correction is made every A. 3 miles B. 6 miles C. 12 miles D. 24 miles
24 miles
Mark wants to enclose his entire backyard with a fence for his dogs. The backyard is 70 x 50. How much linear feet of fencing will he require? A. 240 B. 350 C. 2,400 D. 3,500
240
A legal description reads as follows; "NW 1/4 of Section 2 and the W 1/2 of the SW 1/4 of SEction 35". How many acres in this? A. 20 acres B. 160 acres C. 240 acres D. 320 acres
240 acres
A legal description reads as follows; "the NW 1/4 of section 2; and the W 1/2 of the SW 1/4 of section 35". How many acres is this? A. 20 acres B. 160 acres C. 240 acres D. 320 acres
240 acres
Mr. Scott paid $98,500 cash for a lot. He later sold the lot for $126,000. What was Mr. Scott's percent profit? A. 7.8% B. 12.8% C. 21.8% D. 27.9%
27.9%
A property managing broker must make deposits to the trust account within A. 3 banking days after receipt B. one week after receipt C. one month after receipt D. one year after receipt
3 banking days after receipt
How many days would a lender have to give the buyer a Loan Estimate disclosure in a residential loan transaction? A. 3 business days from purchase contract B. 3 business days from close of escrow C. 3 business days from loan application D. 3 business days from approval
3 business days from loan application
How many days would a lender have to give the buyer a loan estimate disclosure in a residential loan transaction? A. 3 business days from purchase contract B. 3 business days from close of escrow C. 3 business days from loan application D. 3 business days from approval
3 business days from loan application
Paul is doing an appraisal for Fannie Mae. What is the minimum number of comps he needs to consider when using the sales comparison approach? A. 2 comps B. 3 comps C. 4 comps D. 5 comps
3 comps
How many business days after a borrower submits a loan application must the lender make the required disclosures? A. 2 days B. 3 days C. 5 days D. 10 days
3 days
Ned's offer to purchase Jo's house was accepted. Jo now has ________ to disclose all material facts related to the property. A. 24 hours B. 3 days C. 5 days D. 10 days
3 days
If a buyer buys a parcel of land in which the public report was required but was not issued, the buyer may void the sale within A. 1 year B. 2 years C. 3 years D. 5 years
3 years
Jim owns a parcel of property that is 50 feet wide by 150 feet deep. She plans to construct a fence that will cost her $5.43 per linear foot. This parcel contains how many square feet? A. 1,500 sf B. 2,500 sf C. 3,750 sf D. 6,250 sf
3,750 sf
The owner of Hillside Apartments has decided that he wants Hillside to be a no-pet facility. While the new policy will not impact current leases, it will apply to new tenants and to current tenants when they renew their leases. The property manager must give the residents a ____________ of this rule of change. A. 20 day B. 30 day C. 60 day D. 90 day
30 day`
Kyle defaulted his mortgage and his home was sold at a sheriff's sale. Kyle immediately vacated the property. What is the statutory redemption period during which Kyle could reclaim his property? A. 30 days B. 3 months C. 6 month D. There is no redemption period after a sheriff's sale
30 days
Each of these would be prohibited on a qualified mortgage except A. 30-year loan terms B. balloon payments C. excessive upfront points D. negative amortization
30-year loan terms
How many gallons are there in one acre foot of water? A. 325,851 gallons B. 435,600 gallons C. 522,720 gallons D. 528,000 gallons
325,851 gallons
Section 2 in any township is directly south of what section in a township? A. 2 B. 5 C. 32 D. 35
35
What is the maximum pump capacity of an exempt domestic well? A. 25 gallon per minute B. 35 gallons per minute C. 40 gallons per minute D. 50 gallons per minute
35 gallons per minute
Harold dedicates his family's 8.2 acre farm to the state to be used as a nature preserve. How many square feet does that represent? A. 5,312 sf B. 188,240 sf C. 357,192 sf D. 371,952 sf
357,192 sf
How many square miles are there in a township? A. 1 B. 6 C. 36 D. 640
36
A township contains A. 1 square mile B. 6 square mile C. 640 acres d. 36 sections
36 sections
If a developer has 15 acres to subdivide, how many 150' x 90' lots can be lined after allowing 20% for streets, sidewalks, and alleys? A. 38 lots B. 40 lots C. 42 lots D. 48 lots
38 lots
If a developer has 15 acres to subdivide, how many full '150 x '90 lots can be plotted after allowing 20% for streets, sidewalks, and alleys? A. 12 lots B. 34 lots C. 38 lots D. 48 lots
38 lots
What is the distance between Section 5 and Section 32 of the same township? A. 4 miles B. 5 miles C. 6 miles D. 7 miles
4 miles
How many phases might there be in an environmental site assessment as required by CERCLA? A. 2 phases B. 3 phases C. 4 phases D. 5 phases
4 phases
Arizona City has a tax levy budget of $7,000,000. It is determined that the assessed value of all the real estate in Arizona City is $175,000,000. What is the Tax rate? A. 2.5% B. 4% C. 12.25% D. 25%
4%
Jim owns a parcel of property that is 50 feet wide by 150 feet deep. How many linear feet is the perimeter of the property? A. 200 B. 400 C. 600 D. 750
400
How many acres of land are contained in the tract described as "beginning at the NW corner of the SW 1/4, then south along the west boundary line to the SW corner of the section, then east 2,640 feet along the south boundary line of the section to the SE corner of the said SW 1/4, then in a straight line to the POB? A. 80 acres B. 160 acres C. 40 acres D. 320 acres
80 acres
Which of the following conventional loan-to-value ratios would not need private mortgage insurance? A. 80% LTV B. 85% LTV C. 90% LTV D. 95% LTV
80% LTV
Education required for a real estate salesperson's license incluedes A. a four-year college degree B. 15 hours of undergraduate work C. 9 hours of broker management clinic course D. 90 hours of real estate education
90 hours of real estate education
Which of the following would not be exempt under the Federal Fair Housing Act? A. a room leased to an individual in a person's home B. a church leasing a commercial space C. a for sale by owner selling their own home D. a For sale by owner selling a five-plex
A For sale by owner selling a five-plex
The designated broker at ABC Realty had a terrible car accident. The decision is made to close the business. Which statement is False? A. the brokerage cannot take on any new business or supervise new transactions B. the broker's unlicensed spouse could be appointed as temporary broker C. A temporary broker can hire new licensees to speed the process of closing current transactions D. A temporary broker license is good for up to 90 days but could be extended to 15 months
A temporary broker can hire new licensees to speed the process of closing current transactions
Which is least likely to be an example of an illegal kickback under RESPA? A. ABC Brokerage allows FOX Title to use its downtown offices to conduct closings as a convenience to downtown clients B. Every month, Lock Title Company pays for a one-page ad in the local newspaper for the real estate brokerage that sends them the most referrals C. Home inspector Hank gives broker Kevin tickets to a football game to thank him for the business he's sent his way this year D. Minute Mortgage puts a link to Rose Realty's website on its website in exchange for Rose sending buyer clients their way
ABC Brokerage allows FOX Title to use its downtown offices to conduct closings as a convenience to downtown clients
Who regulates groundwater in Arizona? A. ADWR B. ADEQ C. EPA D. CAGRD
ADWR
The Arizona communities that rely most heavily on water are known as A. AMAs B. AWBAs C. CAGARDs D. INAs
AMAs
What is the term that describes how title to land is gained by the open and notorious, hostile and adverse, exclusive and continuous use of another's land for a designated period of time, as defined by laws of the state? A. adverse possession B. eminent domain C. devise D. intestate
Adverse possession
``An Affidavit of Value requires which of the following? a. Grantor's name and signature b. Grantee's name and signature c. Sales price of the property d. All of these
All of these
Which statement about applying for an Arizona real estate saleperson license is true? A. Applicants must be atleast 21 years old B. Applicants must be residents of the State of Arizona C. Applicants must complete 75 hours of approved prelicensing education D. Applicants must complete an additional six hour class on contract writing
Applicants must complete an additional six hour class on contract writing
An Arizona real state licensee may not charge for document preparation according to A. Statute of Frauds B. Commissioner's Rules C. Sherman Anti Trust D. Arizona Constitution Article XXVI
Arizona Constitution Article XXVI
What entity is required to make earth fissure maps available to the public upon request? A. Arizona Department of Environmental Quality B. Arizona Department of Real Estate C. Arizona Geological Survey D. Arizona Land Subsidence Group
Arizona Department of Real Estate
Agent Artie of Elk Realty is creating a new website to promote both his listings and his services. Which statement about the commissioner's rules related to advertising is false? A. Artie must obtain written permission from all seller clients to feature their homes on the website. B. Artie's name must appear on every page without requiring the user to scroll down to see it. C. the name Elk Realty must be prominent on the web page D. the name Elk Realty must appear on every page without requiring the user to scroll down to see it.
Artie's name must appear on every page without requiring the user to scroll down to see it.
Agent Allen is working with buyer Baily, who wants to see a 3,000 SF house listed for $350,000. Under what circumstance could Allen refuse to show the home to Baily? A. Baily is new to the town and doesn't realize that she doesn't fit in with the ethnic mix of that neighborhood B. Baily is pre-approved for a $100,000 and she has $15,000 in assets for a down payment. C. Baily is single and has no kids, so 3,000 SF house is too big for her. D. There are no legitimate circumstances for refusing to show Baily the home.
Baily is pre-approved for a $100,000 and she has $15,000 in assets for a down payment.
Beth signs a six-month listing agreement with Hillside Realty. Six months later, the property has not sold. Which statements is False? A. Beth could choose to renew the listing with Hillside for another six months B. Beth's listing agreement could include an automatic renewal clause that extends the listing period C. if there's a broker protection clause. Hillside could still earn commission D. the listing agreement automatically terminates
Beth's listing agreement could include an automatic renewal clause that extends the listing period
Which situation represents a blind ad placed by a licensee? A. Amy is selling her personal residence FSBO but does not include her brokerage name on the sign. B. Boris places a for sale sign in his client's yard with only his phone number on it. C. Carl includes the NAR logo in an ad, but he is not a REALTOR D. Darla includes a national franchise logo in an ad, but she has no affiliation with them
Boris places a for sale sign in his client's yard with only his phone number on it.
The income and losses from each of these business entities is passed through to the individual EXCEPT for a A. C corporation B. general partnership C. limited partnership D. sole proprietorship
C corporation
What type of business ownership could be faced with double taxation? A. sole and separate B. S corporation C. C corporation D. limited liability company
C corporation
Which method of organizing a business entity may result in double-taxation? A. subchapter S corporation B. limited liability company C. general partnership D. C corporation
C corporation
Poor layout of rooms would be included as an element of obsolescence in: A. Economic obsolescence B. Functional obsolescence C. Political obsolescence D. Social obsolescence
Functional obsolescence
To qualify for deferring gain on real property exchange, property must be "like-kind". Which of the following trades could not qualify? A. an apartment building for a ranch B. vacant land for an 8 plex C. an office building for a shopping cneter D. GM common stock for AT&T common stock
GM common stock for AT&T common stock
Broker Bob has a real estate office in Phoenix. He decides to open a branch office in Prescott Valley. Initially, there will be four licensees in the office; associate broker ED and salesperson Cindy, Jack and Sue. Which statement is true? A. Cindy could be the branch manager B. Ed could be the designated broker C. Ed must be the managing broker D. Only Ed could be the branch manager
Cindy could be the branch manager
That which is not title, but gives the appearance of title is: a. Color of title b. Exoneration c. Alienation d. Subordination
Color of title
What is the only navigable waterway in Arizona? A. Colorado River B. Salt River C. Agua Fria River D. Bartlett Lake
Colorado River
What is the only waterway in Arizona that is used for commercial traffic? A. Colorado River B. Gila River C. Salt River D. Verde River
Colorado River
What agency enforces the Truth-in-Lending Act? A. Consumer Financial Protection Bureau B. Department of Housing and Urban Development C. Federal Housing Authority D. Federal Reserve
Consumer Financial Protection Bureau
The intersection of Arizon's base and meridian is located at the confluence of which two rivers? A. Colorado River and Rillito River B. Gila River and Salt River C. Rillito River and Salt River D. Salt River and Colorado River
Gila River and Salt River
Water rights for what Arizona rivers are being adjudicated in court? A. Gila and Salt Rivers B. Gila and Little Colorado Rivers C. Gila and Santa Cruz Rivers D. Gila and Colorado Rivers
Gila and Little Colorado Rivers
Which statement about manufactured homes is false? A. A mobile home park must have at least four rental spaces for manufactured homes B. Real estate licensees need separate dealer license to sell new manufactured homes in mobile home parks C. Real estate licensees can sell a used, installed manufactured home on private property D. Unless there is a recorded affidavit of affixture, a manufactured home is considered to be personal property
Real estate licensees need separate dealer license to sell new manufactured homes in mobile home parks
After the appraiser has used all three appraisal approaches to estimate value, what process is used to arrive at one estimate of value? A. Data evaluation B. Summation C. Reconciliation or correlation D. None of these
Reconciliation or correlation
Which of the following requires lenders to inform borrowers, when buying a home secured by a mortgage or a trust deed, of all finance charges, fees, and interest? A. HUD B. FHA C. Regulation Z D. RESPA
Regulation Z
Tori has a proprietary lease on an individual unit in the prestigious Triumphant Estates. Most likely, what does Tori own? A. a condominium unit B. a deeded timeshare C. Shares in a cooperative unit D. a townhome
Shares in a cooperative unit
The broker asks you to review the rules of the Real Estate Commissioner. Where would you find these? A. Title 4, Chapter 28 of the Arizona Administrative Code B. Title 20, Chapter 32 of the Arizona Administrative Code C. Title 28, Chapter 4 of the Arizona Revised Statutes D. Title 32, Chapter 20 of the Arizona Revised Statutes
Title 4, Chapter 28 of the Arizona Administrative Code
Associate broker Travis forms Team Top at Butte Realty, where Betty is the designated broker. Julie is an unlicensed assistant for Team Top. Which statement is False? A. Betty is ultimately responsible for Julie's activities working ` B. Betty should address the work of Julie and other unlicensed assistants in an office P&P manual C. Team Top must include the Butte Realty name in any advertising it does D. Travis can pay part of his commission to Julie for all she did to help the sale
Travis can pay part of his commission to Julie for all she did to help the sale
Regulation Z implements what federal lending law? A. Dodd-Frank Wall Street Reform Act B. Equal Credit Opportunity Act C. Real Estate Settlement Procedures Act D. Truth-In-Lending Act
Truth-In-Lending Act
Which statement about FHA-insured loans is false? A. they require a larger down payment than a VA-guaranteed loans B. prepayment penalties are prohibited C. the lender origination fee cannot exceed one point D. U.S. citizenship is required
U.S. citizenship is required
Which statement about FHA-insured loans is false? A. they require a larger down payment that VA-guarenteed loans B. prepayment penalties are prohibited C. the lender origination fee cannot exceed one point D. US citizenship is required
US citizenship is required
An option once exercised is considered: A. Unilateral executed B. Bilateral executed C. Unilateral executory D. Bilateral executory
Unilateral executed
Arizona State Law provides for which of the following in regards to a mechanic's lien? A. extension of time for filing the lien by agreement B. a 20-day preliminary notice C. filing within 60 days for the original contractor D. priority over mortgages and other liens, including property tax liens
a 20-day preliminary notice
Which statement about VA-guaranteed loans is false? A. a 3.5% minimum down payment is required B. the property must be owner-occupied C. there is no maximum loan amount D. there is no private mortgage insurance required
a 3.5% minimum down payment is required
Which is NOT an example of an attachment? A. a basketball hoop that is moved into the garage in the winter B. a greenhouse that is built off the garage C. the lily pond in the backyard Japanese garden D. uncut roses on a rose bush planted by the back door
a basketball hoop that is moved into the garage in the winter
Which of these would be considered functional obsolescence? A. a bedroom through bedroom floor plan B. a home facing a busy four-lane highway C. a home with broken furnace D. a home with severe structural damage to the foundation
a bedroom through bedroom floor plan
Judy includes only a phone number on a sign the places in front of a client's home. This is Most Likely an example of A. bait and switch B. a blind ad C. a pocket listing D. spam
a blind ad
All of the following statements are TRUE regarding depreciation EXCEPT A. real estate tax depreciation must relate to an economic life B. when real estate is fully depreciated, the major tax benefit is lost C. all income property can be depreciated for tax purposes D. a building can only be depreciated once
a building can only be depreciated once
For which situation would the sales comparison approach be best? A. a commercial building in a residential neighborhood B. a condo in a complex with high turnover C. a recently constructed building with custom features D. a unique, octagon-shaped home in neighborhood of split levels
a condo in a complex with high turnover
Which element is required to be included in a management agreement? A. an annual budget B. an automatic renewal clause B. a definite start and end date D. an errors and omissions insurance policy
a definite start and end date
Conventional life estates are created by the actions of A. a grantor B. a grantee C. a life tenant D. the allodial system
a grantor
When the real estate commissioner receives a written complaint against a licensee, A. the commissioner will automatically suspend the license B. the commissioner will revoke the license C. the commissioner will turn the matter over to the courts D. a hearing will be held before any license suspension
a hearing will be held before any license suspension
What is an example of real estate put to its highest and best use? A. a flat, paved parking lot in downtown chicago B. a house in a residential subdivision C. an old house on a major highway surrounded by commercial buildings D. a vacant lot
a house in a residential subdivision
What is an example of a pocket listing? A. a licensee calls a select list of people to tell them about the home but does not list it in the MLS B. a license places and ad in the paper for a listed property but does not include his brokerage name C. a licensee places a "coming soon" sign in a yard two weeks before the seller is ready to show D. a license places a yard sign withouth any brokerage affiliation so as to look like FSBO
a licensee calls a select list of people to tell them about the home but does not list it in the MLS
Hannah signs a deed of trust with the lender in order to purchase a house. Who is the trustee in this situation? A. Hannah B. the lender C. a neutral third party D. whomever Hannah designates
a neutral third party
Which of the following would have the weakest claim to title? A. a person living on the property with an unrecorded deed B. a person living off the property with an acknowledged deed C. a person living off the property with a recorded deed D. a person living on the property with a recorded deed
a person living off the property with an acknowledged deed
Which is the best example of a general agent? A. a power of attorney given in order to transfer title to an automobile B. a power of attorney given to handle all dealings of a disabled person C. a property manager's relationship to a property owner D. a real estate agent's relationship to his client
a property manager's relationship to a property owner
The primary purpose of a comparative market analysis is to determine A. an estimate of a home's value for a secondary lender B. a range of probable selling prices for a homeowner C. the potential gross income that a rental property may be able to bring in D. the remaining economic life of the subject property
a range of probable selling prices for a homeowner
Which is an example of liquidated damages? A. a broker reimburses a former client who sued for breach of agency obligations B. a court orders a reluctant seller to pay the commission due a broker C. a court orders a seller to return the earnest money deposit when he backs out of the sale D. a seller keeps the earnest money deposit when the buyer backs out
a seller keeps the earnest money deposit when the buyer backs out
Which of the following property transactions would NOT BE EXEMPT from federal fair housing laws? A. a six-unit apartment owned by a church that will rent only to members of its faith B. the owner-occupant of a four-unit building who refuses to rent to families with children C. a single family home being sold by the owner who advertises "No African Americans" D. a woman looking for a roommate but who only wants another woman
a single family home being sold by the owner who advertises "No African Americans"
Which would be recognized as evidence of title in Arizona? A. an abstract with an attorney's opinion B. an affidavit from the previous owner C. a title insurance policy D. a torrens certificate
a title insurance policy
A lessee puts in a bookcase for commercial use; at the end of the lease the bookcase is removed. The bookcase would be considered: A. real property B. a trade fixture C. appurtenant D. chattel real
a trade fixture
When a person files chapter 7 bankruptcy, which of the following would occur? A. the debtor would remain in possession of the business B. all creditor's claims against the debtor are extinguished C. a trustee would be appointed to liquidate the assets D. the broker's listings would be unaffected
a trustee would be appointed to liquidate the assets
A licensed broker employed by a principal my not A. advertise the listed property B. accept or reject offers of purchase C. negotiate offers and acceptance D. show property to prospective purchasers
accept or reject offers of purchase
Which of the following would not terminate an agency relationship? A. destruction of property B. death of the seller C. acceptance of offer and opening escrow D. court order
acceptance of offer and opening escrow
Mortgage brokers A. act as intermediaries between borrowers and lenders B. originate and service mortgage loans C. provide funding for mortgage loans D. underwrite mortgage loans
act as intermediaries between borrowers and lenders
An agent is one who A. acts, or has the power to act, for another B. is owed fiduciary duty C. is represented by another D. represents the agent of another
acts, or has the power to act, for another
Which of the following best defines the landlord's legal eviction of the tenant? A. constructive eviction B. recorded eviction C. actual eviction D. prescriptive eviction
actual eviction
Once a person has gone to the courthouse and reviewed all documents pertaining to the property he intends to buy, he is said to have A. actual notice B. constructive notice C. inquiry notice D. legitimate notice
actual notice
Comp #2 has four bedrooms; the subject property has five bedrooms. Through matched pair analysis, the appraiser has determined that a bedroom in that neighborhood is worth $7,500. What is the appropriate way to apply this information when performing the sales comparison approach to valuation? A. add $7,500 to comp #2 value B. add $7,500 to the subject base C. subtract $7,500 from comp #2 value D. subtract $7,500 from the subject base
add $7,500 to comp #2 value
The original cost of the property plus gains, minus losses from taxes, and considering any boot is known as the A. adjusted Basis B. basis C. capital gains D. equity
adjusted basis
A party lives on a property without permission of the owner. After the legally required time period, if the occupant receives title to the property it was done so through A. easement by prescription B. adverse possession C. escheat D. eminent domain
adverse possession
A sworn statement, signed by both buyer and seller, that indicates the purchase price paid by the buyer in a transaction is known as the A. affidavit of value B. bring down endorsement C. closing disclosure D. title report
affidavit of value
What document is recorded with the deed? A. affidavit of value B. purchase contract C. promissory note D. settlement statement
affidavit of value
What document is recorded with the deed? A. affidavit of value B. purchase contract C. property disclosure D. closing disclosure
affidavit of value
What documents is recorded with the deed? A. affidavit of value B. purchase contract C. property disclosure D. closing disclosure
affidavit of value
When may a person use the term Realtor@? A. after becoming a member of the national association of realtors B. after closing their first successful transaction C. as soon as the person passes the state real estate license examination D. upon sponsorship of his or her employing broker
after becoming a member of the national association of realtors
A person who is authorized to represent the interest of another is called A. client B. agent C. principal D. customer
agent
A real estate financing device that does NOT transfer legal title but does place equitable title with the buyer is called a A. contract to purchase B. agreement for sale C. agreement to sell D. all of the above
agreement for sale
A real estate financing device that does NOT transfer legal title but does place equitable title with the buyer is called an A. contract to purchase B. agreement to sale C. agreement to sell D. all of the above
agreement to sale
When someone buys a condominium unit on the 10th floor or Triumph Towers, the legal description on the deed describes A. air lot B. benchmark C. monument D. plat
air lot
A broker is hired by a seller to sell the client's real property. The broker must obey which of the following? A. the concept of the buyer beware (caveat emptor) B. all lawful instructions of the client C. all of the buyer's instructions D. full disclosure to the buyer of any and all information
all lawful instructions of the client
What is the advantage of a REIT? A. avoidance of corporate taxes B. continuity of operation C. diversification of investment D. all of the above
all of the above
If there are material changes from an original public report, the commissioner may require the subdivider to create a A. subsequent owner exemption B. amended public report C. original subdivision disclosure report D. affidavit of disclosure
amended public report
The act of extinguishing a debt by regular payments is: A. depreciation B. amortization C. prepayments D. acceleration
amortization
A loan in which total payments over the life of the loan pay off the entire balance of principal and interest due at the end of the term is referred to as A. amortizing B. annualized C. compounding D. diminishing
amortizing
Which of the following would not be a debit to the seller at closing? A. IRS lien B. amount of buyer's new loan C. amount of the loan the buyer is assuming D. broker's commission
amount of buyer's new loan
Market price is closest to the A. price asked by the seller in the open market B. price offered by a buyer in the open market C. market value D. amount of money given in exchange for the property
amount of money given in exchange for the property
The type of note that has an interest rate that varies up or down depending on the cost of money as determined by and index is called A. an adjustable rate note B. a fully amortized installment note C. an installment note D. a straight note
an adjustable rate note
Of the following, who is required to have a real estate license? A. an attorney dealing within his expertise B. a person buying and selling 4 properties every 12 months C. an auctioneer auctioning real property D. a property manager managing one property for one owner
an auctioneer auctioning real property
Real Property can be divided into corporeal and incorporeal. Which would be an incorporeal right? A. an easement B. fences and walls C. All improvements D. a house and barn
an easement
By definition, what does a appraiser give in the course of his work? A. a valuation B. an estimate C. a reaction D. a guarantee
an estimate
By definition, what does an appraiser give in the course of his work? A. a valuation B. an estimate C. a reaction D. a guarantee
an estimate
When a real estate agent sends unsolicited e-mail it must include A. the agent's name and telephone number B. the list price of any advertised properties C. the date and time, and tax ID number D. an opt-out provision
an opt-out provision
Which statement about an option to purchase is true? A. an option is a bilateral contract B. an option is enforceable by the optionee C. any money paid with an option must be refunded D. an option does not require consideration to be enforceable
an option is enforceable by the optionee
Real estate taxes are levied A. biannually B. annually C. semi-annually D. in even-numbered years
annually
The principal of ________ affirms that value is created by expected benefits to be derived in the future. A. anticipation B. conformity C. progression D. substitution
anticipation
two property managers are planning to set rental rates on their units to keep the rents high in the area. which of the laws would have been violated? A. fair housing laws B. RESPA C. antitrust laws D. laws against steering
antitrust laws
What is the maximum number of grantees that can be named on a deed? A. two B. four C. ten D any number
any number
How is the Real Estate Commissioner chosen? A. appointed by the Governor B. selected by the advisory board C. voted on by the general public D. voted on by licenses
appointed by the Governor
A company that acts as an intermediary between a lender and an appraiser is A. full service appraisal company B. real estate brokerage company C. appraisal management company D. appraisal evaluation company
appraisal management company
What type of water rights may be described as "first in time, first in right"? A. appropriative B. littoral C. principal D. riparian
appropriative
a person is selected to settle a dispute between a buyer and seller. the decision will be binding on all parties. this person is called A. arbitrator B. middleman C. trustee D. executor
arbitrator
Who is the primary beneficiary of Arizona's State Land Trust? A. arizona public schools B. arizona state parks C. national parks D. native american tribes in arizona
arizona public schools
All of the following relate to limited liability companies except A. members B. limited liability C. articles of incorporation D. articles of organization
articles of incorporation
The word friable most likely apply to A. radon gas B lead-based paint C. superfund area D. asbestos
asbestos
The word friable would most likely apply to A. radon gas B. lead-based paint C. superfund area D. asbestos
asbestos
The word friable would most likely apply to which of the following? a. radon gas b. lead based paint c. superfund area d. asbestos
asbestos
the word friable would most likely apply to A. radon gas B. lead-based paint C. superfund area D. asbestos
asbestos
John's house has asbestos coating the water pipes. What does he need to be concerned about? A. asbestos can contaminate the house further if removal is done improperly since airborne particles are the issuee B. asbestos is dangerous only when wet and therefore should be encapsulated in waterproof material C. asbestos is inexpensive to remove D. removal is required if asbestos is found in a residential property
asbestos can contaminate the house further if removal is done improperly since
John's house has asbestos coating the water pipes. What does he need to be concerned about? A. asbestos can contaminate the house further if removal is done improperly since airborne particles are the issue B. asbestos is dangerous only when wet and therefore should be encapsulated in waterproof material C. asbestos is inexpensive to remove D. removal is required if asbestos is found in a residential property
asbestos can contaminate the house further if removal is done improperly since airborne particles are the issue
When a developer combines two or more adjacent parcels of land into one large development, it is known as A. assemblage B. conformity C. partition D. subdividision
assemblage
If a retainer fee is charged, it should be referenced in which agreement? A. both a listing agreement and a buyer broker agreement B. a listing agreement only C. an agency agreement D. a buyer-broker agreement only
both a listing agreement and a buyer broker agreement
If a retainer fee is charged, it should be referenced in which agreement? A. both a listing agreement and a buyer-broker agreement B. a listing agreement only C. an agency agreement D. a buyer-broker agreement only
both a listing agreement and a buyer-broker agreement
funds for a contract of sale are held in a brokers trust account for the benefit of A. the broker until close of escrow B. the buyer only C. both buyer and seller D. the seller only
both buyer and seller
Failure to perform or fulfill a contract is termed a A. defect B. fault C. breach D. delinquency
breach
A party's failure to fulfill their end of the bargain under a contract, or prohibit the other party from performing the terms of the contract, is known as A. a back-up offer B. breach of contract C. mutual assent D. specific performance
breach of contract
Horace had an exclusive listing on Susie's house for 9 months. The week after it expired, she sold it to a co-worker. Is there anything that might help Horace collect commission on this transaction? A. broker protection clause B. protection agreement C. protection waiver D. Horace is completely unprotected
broker protection clause
Property management agreements do NOT deal with which of the following? A. commissions B. rents C. building age D. frequency of reports
building age
When rights transfer with a deed this is referred to as: A. chattel real B. reversionary rights C. Leasehold D. bundle of rights
bundle of rights
You are closing an escrow on the 15th of the month. The buyer is assuming the existing loan. Which of the following is true? A. seller will be charged for 15 days interest B. buyer will be credited for 15 days interest C. buyer will be credited for 14 days interest, seller debited for 14 days interest D. buyer will be credited for 16 days interest, seller debited for 16 days interest
buyer will be credited for 14 days interest, seller debited for 14 days interest
What do you call proceeds from the sale of an investment greater than the acquisition cost of the investment? A. deferred income B. capital gain C. equity D. leverage
capital gain
Net operating income minus debt service is equal to A. cash flow B. expenses C. leverage D. rate of return
cash flow
To establish the value of a property for a VA-Guaranteed loan, the required documentation is a A. Broker price opinion B. certificate of eligibility C. certificate of reasonable value D. competitive market analysis
certificate of reasonable value
A title examiner tries to establish the present owner of a certain property by reviewing all the previous deeds of the previous owners he can find. The title examiner is trying to establish A. abstract of title B. certificate of sale C. chain of title D. opinion of title
chain of title
Which type of bankruptcy proceeding allows an individual debtor to recognize the debt by putting in place a plan to pay the debts off? A. chapter 7 B. chapter 11 C. chapter 12 D. chapter 13
chapter 13
A person selling or leasing residential housing may not discriminate based solely by race as a result of: a. housing and community development act of 1974 b. civil rights act of 1866 c. federal housing act of 1988 d. state constitutions
civil rights act of 1866
Which of these property classifications is used for vacant land? A. class 1 B. class 2 C. class 3 D. class 4
class 2
Which document is NOT required by RESPA to be given to consumers within three business days of a loan application? A. closing disclosure B. loan estimates C. mortgage servicing disclosure statement D. your home loan toolkit
closing disclosure
A trustee under a deed of trust would not be involved in which of the following circumstances? A. loan paid in full B. issuance of the deed of reconveyance C. trustor is delinquent D. collection of monthly loan payments
collection of monthly loan payments
The Real Estate Settlement Procedures Act applies to all of the following transactions EXCEPT A. FHA-insured Loans B. VA-guaranteed loans C. conforming loans sold to Fannie Mae D. commercial loans
commercial loans
The Real Estate Settlement Procedures Act applies to all of the following transactions EXCEPT A. FHA-insured loans B. VA-guaranteed loans C. conforming loans sold to Fannie Mae D. commercial loans
commercial loans
Licensee Sue deposits a client's earnest money check into her brokerage general account. Her actions could be considered an example of A. commingling B. conversion C. cooperation D. condemnation
commingling
Regarding the size of lettering in the ad, all of the following are true except the A. salesperson's name may be larger than the brokerage name B. company name must be prominent on all advertising C. commissioner's rules dictate the specific lettering size for brokerage advertising D. salesperson's and broker's name may be the same size
commissioner's rules dictate the specific lettering size for brokerage advertising
Angie, the seller, signs the agreement of sale from the prospective buyer and hands it back to her agent. What element is missing in order to make this a valid contract? A. communication back to the offeree B. communication back to the offeror C. earnest money deposit D. meeting of the minds
communication back to the offeror
To finance the infrastructure for a subdivision development, Arizona Law allows the formation A. homeowner's association B. community facilities districts C. planned communities D. planned unit developments
community facilities districts
In Arizona, property owned before marriage is sole and seperate. Property acquired after marriage would be considered A. community property B. sole and seperate C. tenancy in common D. joint tenancy
community property
An appraiser is preparing an appraisal for the lender. The subject property is older and has a pool. The comparable property is newer and has no pool. How would the appraiser make the necassary adjustments? A. sale price of seller's property up for age and pool B. sale price of seller's property down for age and pool C. comparable property up for age and down for pool D. comparable property down for age and up for pool
comparable property down for age and up for pool
An appraiser is preparing an appraisal for the lender. The subject property is older and has a pool. The comparable property is newer and has no pool. How would the appraiser make the necessary adjustments? A. sale price of seller's property up for age and pool B. sale price of seller's property down for age and pool C. comparable property up for age and down for pool D. comparable property down for age and up for pool
comparable property down for age and up for pool
An appraiser used various cost manuals and regional multipliers, as well as his own experience, to determine that it would cost $72/SF to replace the subject property. If the property's square footage is 1,775, he estimates that it would cost $127,800 to rebuild the house. Which costing method did he use? A. comparative B. economic measure C. quantity survey D. unit in place
comparative
What do you think is the primary purpose of most civil lawsuits? A. compensate a person who has been harmed B. deter crime C. protect society D. punish a wrongdoer
compensate a person who has been harmed
Lester signs a contract to buy Kathy's house. The contract is conditional on Kathy installing new carpet throughout. Kathy installed the carpet at a cost of $12,500. Before closing, Lester tells Kathy that he does not want to buy the house. Kathy sues Lester for $12,500 and wins. The court awarded her A. collateral damages B. compensatory damages C. liquidated damages D. punitive damages
compensatory damages
Claire owns one of 40 air lots in a residential building. What is the Most Likely type of ownership? A. condominium B. cooperative C. townhouse D. timeshare
condominium
If you own a unit fee simple plus a right in the common area, this ownership is called: A. cooperative B. chattel real C. condominium D. timeshare
condominium
If you own a unit fee simple, plus an undivided interest in the common areas, this ownership is called A. cooperative B. chattel real C. condominium D. timeshare
condominium
Ollie shows a property to his buyer client. Jan, the listing broker, calls OIlie to ask for feedback. She asks, "is the buyer interested in making an offer?" Ollie tells Jan his client is still in the process of looking at other porperties. Jan replies, "I can tell you, my seller is really desperate for an agreement". At this point, Jan is violating the duty of A. confidentiality B. disclosure C. accounting D. obedience
confidentiality
Which is not a necessary element for a valid and enforceable contract? A. consequence B. contractual capacity C. lawful and possible objective D. mutual agreement
consequence
When you default on a deed of trust, what is the first notice given? A. 5 day failure to pay B. constructive notice C. actual notice D. writ of execution
constructive notice
When you default on a deed of trust, what is the first notice given? A. 5-day failure to pay B. constructive notice C. actual notice D. writ of execution
constructive notice
A condition in a purchase contract states the agreement depends on the property passing a home inspection and radon gas test. This is called a A. contigency clause B. counteroffer C. tender offer D. time is of the essence clause
contingency clause
An authorization to sell consists of a mutual agreement between broker and seller and is considered an A. contract of sale B. agreement of sale C. purchase of contract D. contract for personal service
contract for personal service
An authorization to sell consists of a mutual agreement between broker and seller and is considered an A. contract of sale B. agreement of sale C. purchase contract D. contract for personal services
contract for personal services
A buyer of a residential unit receives stock as a form of ownership. This is best described as: a. fee simple ownership b. cooperative c. townhouse d. master planned community
cooperative
The amount of money that the buyer has to bring to escrow to close a transaction would show on a closing statement in the following manner: A. debit seller, credit buyer B. credit seller, debit buyer C. debit buyer only D. credit buyer only
credit buyer only
A contract states that the taxes be prorated between the buyer and seller. The taxes have been paid in advance. The proper entry on the closing statement is: A. debit the seller and debit the buyer for the same amount B. credit the seller for taxes accrued before close and credit the buyer for the unused portion covering the period after close C. credit the seller and debit the buyer D. debit the seller and credit the buyer
credit the seller and debit the buyer
An earnest money deposit held in escrow is reflected at settlement as a A. debit to the buyer B. credit to the buyer C. credit to both the buyer and seller D. credit to the seller
credit to the buyer
On a closing statement, a new mortgage loan is usually a A. credit to the buyer B. credit to the seller C. debit to the buyer D. debit to the seller
credit to the buyer
On a settlement statement, rent paid in advance would be a A. credit to the seller only B. debit to the buyer only C. credit to the buyer, debit to the seller D. credit to the buyer only
credit to the buyer, debit to the seller
The electrical outlets in Dave's home are out of compliance. It will cost $8,000 to replace them, but will have little to no effect on value of the property. This would most likely be considered A. curable physical deterioration B. curable functional obsolescence C. incurable physical deterioration D. incurable external obsolescence
curable functional obsolescence
Which of these would Least Likely be considered a material fact? A. current owner believes the house is haunted B. nearby factory spewing pollutants into the groundwater C. previous termite infestation D. warped window frames
current owner believes the house is haunted
Property taxes are prorated as of the day of closing. If the real estate taxes are paid in arrears, they are a A. credit to both buyer and seller B. debit to both buyer and seller C. debit to the seller and credit to the buyer D. debit to the buyer and credit to the seller
debit to the seller and credit to the buyer
Which element does NOT figure into the equation to find net operating income? A. debt service B. effective gross income C. expenses D. vacancy losses
debt service
Which item is deducted from NOI to find cash flow? A. collection losses B. debt service C. vacancy losses D. variable expenses
debt service
Betty signs a listing agreement with Lots-O-Wealth Real Estate Company. They sell her house and she pays them the promised commission. Therefore, all terms of the contract have been met. This contract is A. discharged B. liquidated C. mitigated D. rescinded
discharged
Which is not one of the sections in the Realtor@ code of ethics? A. duties to clients and consumers B. duties to other REaltors@ C. duties to the public D. duties to real estate licensees
duties to real estate licensees
Past due taxes would appear on a title report as a A. encumbrance B. encroachment C. lis pendens D. adverse possession
encumbrance
Value minus debt is best defined as A. a return B. equity C. yeild D. loan to value
equity
The state obtains the property of someone who dies intestate through A. police power B. escheat C. eminent domain D. taxation
escheat
An escrow company may disburse commissions directly to a broker's salesperson if the A. salesperson's license is inactive B. escrow officer receives written authorization from the broker in each transaction C. escrow agent is also a licensed broker D. broker gives written authorization to the escrow company annually
escrow officer receives written authorization from the broker in each transaction
Jonah lists his home with PDQ Realty, allowing them to put a sign in the yard, list it in MLS, and advertise it in the local newspaper. During the listing period, Jonah sells the home to his brother and is not obligated to pay PDQ any commission. What type of listing did Jonah have with PDQ? A. exclusive agency B. net listing C. non-exclusive right to sell D. open listing
exclusive agency
Adam and Jenny enter into an agreement wherein Adam will buy Jenny's house at the asking price if Jenny will install a new roof and if Adam can qualify for a loan sufficient to cover the purchase. Until the roof is installed and the financing obtained, the contract is said to be A. executed B. executory C. recinded D. voidable
executory
Luke signs an open listing agreement with agent Raelynn, promising to pay a 7% commission only if she finds a buyer for his house. This contract is an A. executed bilateral contract B. executed unilateral contract C. executory bilateral contract D. executory unilateral contract
executory unilateral contract
All of the following are considered grandfathered water rights except A. type 1 rights B. type 2 rights C. exempt domestic well D. irrigation grandfathered right
exempt domestic well
All of the following are cosidered grandfathered water rights except A. type 1 rights B. type 2 rights C. exempt domestic well D. irrigation grandfathered right
exempt domestic well
Which of these costs at closing would most likely be paid by the seller? A. discount points B. escrow reserves C. existing lien payoff D. mortgage insurance premiums
existing lien payoff
If a licensee does not complete the required CE or does not pay the renewal fee by the renewal date, the license is considered A. expired B. revoked C. suspended D. terminated
expired
when the buyer and seller have signed the purchase contract, there is a/an A. unilateral contract B. expressed contract C. implied contract D. contract by estoppel
expressed contract
when the buyer and seller have signed the purchase contract, there is a/an A. unilateral contract B. expressed contract C. implied contract D. contract by estoppel
expressed contract
Person who holds the greatest ownership rights in the property that is allowed by law owns a A. leasehold B. life estate C. defensible estate D. fee simple estate
fee simple estate
The relationship of a licensed real estate broker to the principal is best described by which of the following terms? A. trustee B. salesperson C. fiduciary D. beneficiary
fiduciary
If an Arizona property owner does not pay her property tax, a lien can be attached against her property on what day? A. last friday in december B. first monday in January C. first day of February D. last day of April
first monday in january
Julie is preparing to make an offer on Mike's house, and she request an insurance claims history report so that she can see the number of an type of property loss claims that mike has filed in the past A. two years B. three years C. five years D. seven years
five years
A blind ad refers to an ad that A. provides no price. B. provides no address C. gives no indication that the property is listed with a broker D. gives no indication that the property has been sold or not
gives no indication that the property is listed with a broker
Jim wants to sell his house to daughter Daisy for $1 and love and affection. Such an arrangement would be considered A. deficient consideration B. good consideration C. inadequate consideration D. valuable consideration
good consideration
Dave and Sara are young couple with a new baby who are buying a home. Sara will be working full time at her law firm for the next five years while Dave stays home with the baby and finishes school. In six years, both plan to be full time at the law firm. Which type of mortgage would offer them the best monthly payment plan and tax advantages? A. equity participation mortgage B. graduated payment mortgage C. reverse equity mortgage D. shared appreciation mortgage
graduated payment mortgage
Recordation of a deed is the responsibility of the A. grantor B. grantee C. lender D. vendor
grantee
Jackie is selling her house to Brad. When conveying title in this transaction, Jackie is the A. grantee B. grantor C. optionor D. vendee
grantor
A property in which unrelated people who need care, support or supervision live together and which is protected by fair housing laws from discrimination by neighbors is a A. homestead B. relined home C. single-family home D. group home
group home
A statement that follows the words of conveyance in a deed and includes "to have and to hold" is called the A. covenant of seizin B. granting clause C. habendum clause D. recital
habendum clause
The clause in a deed that sets forth or limits the extent of the interests in the title being conveyed is the A. demising clause B. testimonium clause C. habendum clause D. indenture clause
habendum clause
If there is a contract dispute, which of the following would take precedence? A. printed word B. item crossed out C. handwritten words D. boilerplate
handwritten words
Which is true regarding the printed words in a standard form listing contract? A. the parties may not cross out any of the printed words B. handwritten words take precedence over printed words if there is an inconsistency C. nothing may be added to the printed form except in spaces provided D. if handwritten items are added, signatures must be acknowledged
handwritten words take precedence over printed words if there is an inconsistency
To qualify as an Arizona real estate broker, the candidate must: A. be a resident of ARizona B. obtain a bond C. first become an associate and then a designated broker D. have had real estate experience for three of the last five year
have had real estate experience for three of the last five year
The rules of the Real Estate Commissioner A. have the force and effect of the law B. are enacted by legislation C. are part of the Arizona Revised Statutes D. are part of statutory real estate law
have the force and effect of the law
Lisa lives in Cactus Apartments. When the unit next to her becomes vacant, she refers her friend Joe to property manager Matt. In what way, if any, can Matt compensate Lisa for the Referral? A. He can give her a rent reduction B. he can giver her a new television C. he can pay her up to $500 D. he cannot compensate her in any way
he can give her a rent reduction
What is not part of a tax-deferred exchange? A. boot B. mortgage relief C. like kind D. highest and best use
highest and best use
Which is not an accepted appraisal approach? A. cost approach B. income approach C. highest and best use approach D. sales comparison approach
highest and best use approach
Arizona Real Estate Law states that the Real Estate Commissioner may do each of the following Except A. investigate a written and verified complaint made against a licensee B. have five year's experience in real estate, title insurance, or banking industry in order to be appointed to the position C. investigate the action of a licensee at any time D. hold an active real estate license while acting as a Real Estate Commissioner
hold an active real estate license while acting as a Real Estate Commissioner
Under a land contract, the vendor A. is considered the trustee B. holds a mortgage lien as security C. holds equitable title D. holds legal title as security
holds legal title as security
Which type of will does not require witnessing? A. holographic B. nuncupative C. formal D. all require witnessing
holographic
Which of the following may be protected by Arizona anti-deficiency legislation? A. commercial building B. restaurant on 2 1/2 acres C. home on a 9,000 square foot lot D. business brokerage
home on a 9,000 square foot lot
The Arizona Department of Real Estate has the authority to investigate disputes between A. consumers title companies over escrow money B. homeowners associations and residents/owners C. landlords and tenants D. licensees over commission
homeowners associations and residents/owners
Which homes should an appraiser consider when finding comps? A. homes currently listed for sale in the market B. homes for which the listing agreements have expired C. homes that have sold recently in the subjects area D. all homes should be considered
homes that have sold recently in the subjects area
Of these, which is the Only statutory life estate recognized in Arizona? A. curtesy B. dower C. fee tail D. homestead
homestead
When a broker represents only a buyer in a transaction, which of the following duties would a buyer broker owe the seller? A. loyalty B. honesty C. accountability D. confidentiality
honesty
When a broker represents only a buyer in a transaction, which of the following duties would a buyer owe the seller? A. loyalty B. honesty C. accountability D. confidentiality
honesty
Which type of description is inadequate for describing property in a deed? A. house number and street B. lot number and page in the plat map C. metes and bounds D. rectangular survey description
house number and street
Which term describes the process by which a borrower pledges property as security for a loan without giving up possession of it? A. defeasance B. hypothecation C. redemption D. subordination`
hypothecation
Real estate licensees should safeguard a client's or customer's personal information in order to prevent A. identity theft B. misrepresentation C. double escrows D. wire fraud
identity theft
Under what circumstance can an owner of a single-family residence depreciate the property for tax purposes? A. when the property is sold B. if it is owner-occupied C. if the property is a rental D. if it is held for at least 27.5 years
if the property is a rental
A seller accepts a buyer's offer while the seller is out of town. What should the broker do with the earnest deposit? A. contact the seller and ask the seller where they would like the earnest money deposited B. keep the earnest deposit in a safe in the office until the sellers return from vacation C. immediately deposit it into an escrow account D. have the buyer hold the money until the seller is back from vacation
immediately deposit it into an escrow account
Which is not a consequence that the Commission may impose on a licensee who violate the Arizona Revised statutes? A. deny renewal of a real estate license B. impose imprisonment of no more than 6 months C. permanently revoke a real estate license D. temporarily suspend a real estate license
impose imprisonment of no more than 6 months
Debits to the seller include all of the following except A. commissions B. impound accounts C. seller carryback financing D. buyer's assumption of existing loan
impound accounts
Debits to the seller include all of the following except A. commissions B. impound accounts C. seller carryback financing D. buyer's assumption of existing loan
impound accounts
The concept that information given to a client's agent has been given to the client is known as A. vicarious liability B. fiduciary duty C. imputed notice D. caveat emptor
imputed notice
When a real property tax lien is sold for failure to pay taxes, the sale is held A. in February B. October 16 C. March 1 D. November 1
in February
What term describes a party who is incapable of entering into a valid contract on his own part? A. increment B. inchoate C. incompetent D. investor
incompetent
When a new home is still under construction, the County Assessor may A. increase the assessed value ratio B. increase the full cash value C. decrease the tax rate D. appeal the limited property value
increase the full cash value
In appraisal terminology, "A factory to close to a home" is an example of A. incurable obsolescence B. curable economic obsolescence C. curable physical deterioration D. functional obsolescence
incurable obsolescence
Friable particles from asbestos are a dangerous when A. encapsulated B. inhaled C. touched D. wet
inhaled
Which of the following is NOT a way that a listing agreement can be terminated? A. revocation B. renunciation C. destruction of property D. insanity, death, or bankruptcy of the agent
insanity, death, or bankruptcy of the agent
If you suspect a home may have asbestos, who do you call? A. broker B. salesperson C. encapsulator D. inspector
inspector
The main purpose of the federal housing administration is to A. guarantee loans B. insure loans C. lend money D. sell loans
insure loans
If the buyer is assuming an existing loan on the property, which of the following is prorated at closing? A. interest only B. principal only C. mortgage principal D. both interest and principal
interest only
A monetary judgement by the court is an A. involuntary lien on the personalty and realty of the subject debtor B. voluntary lien on the personalty and realty of the subject C. involuntary lien against the realty only of the subject debtor D. voluntary lien against the personalty only of the subject debtor
involuntary lien on the personalty and realty of the subject debtor
A void contract is one that A. may be rescinded B. is not enforceable by law C. is paid in monthly installments D. is made by a sick person
is not enforceable by law
A void contract is one that A. may be rescinded B. is not enforceable bylaw C. is paid in monthly installments D. is made by a sick person
is not enforceable bylaw
A latent defect can be best described as a defect that A. has been present for some time B. is not plainly observed C. is unknown to the seller D. the seller doesn't disclose
is not plainly observed
When a new FHA loan is acquired the mortgage insurance premium: A. is paid by the lender B. is a quarterly payment C. cannot be added to the loan D. is paid upfront and then monthly
is paid upfront and then monthly
What is the significance of Article XXVI of the Arizona Constitution in a real estate transaction? A. it allows real estate licensees to earn commission on a real estate transaction B. it allows real estate licensees to write contracts C. it requires all real estate contracts to be in writing D. it requires an attorney to review all real estate contracts
it allows real estate licensees to write contracts
Which of the following is true of the metes and bounds system for describing real estate? A. it is only used in states that do not use rectangular survey B. it always starts and finishes at the same point C. it produces short descriptions D. it is the most recent method developed for use
it always starts and finishes at the same point
What is the purpose of a date in a appraisal report? A. It is required by law B. it defines the market conditions under which the appraisal was made C. it helps to identify the report D. it serves no important purpose
it defines the market conditions under which the appraisal was made
What is the purpose of a date in an appraisal report? A. it is required by law B. it defines the market conditions under which the appraisal was made C. it helps identify the report D. it serves no important purpose
it defines the market conditions under which the appraisal was made
What is generally considered to be the purpose of a lender's pre-qualification letter? A. it allows a buyer's agent to pull a credit report B. it binds the lender to an amount it is willing to lend C. it indicates the price range a borrower can afford D. it prove to the seller that the buyer will be able to complete the purchase
it indicates the price range a borrower can afford
Which statement about earnest money is true? A. it can be given to the seller as compensatory damages if the deal falls through B. it is the required consideration needed to create a valid contract C. it must be a specific percentage of the asking price D. it shows that a buyer is serious about offering to purchase the property
it shows that a buyer is serious about offering to purchase the property
Doctors Dora, Cora, and Flora pool their resources to purchase a vacant lot in their neighborhood. Their plan is to look for a company willing to buy the property and build a market with fresh produce for their underserved area. This could best be described as a A. joint venture B. limited parntership C. real estate investment trust D. syndicate
joint venture
All of the following are specific liens except A. judgement liens B. mechanic's liens C. property tax liens D. special assessments
judgement liens
A homeowner sues a real estate agent for $6,000. In which Arizona court would this case be heard? A. municipal court B. small claims court C. justice court D. superior court
justice court
Harvey sues his listing agent for breach of contract, asking for $7,500 in damages. In which Arizona court would this civil case be heard? A. justice court B. magistrate's court C. small claims division of the justice court D. superior court
justice court
Parkway crossing HOA has several deed restrictions related to flying flags in front of houses. A number of people violate the restriction, but no one complained until someone flew the flag of the rival college football team on game day. The HOA may not be able to enforce this deed restriction because of A. appropriation B. escheat C. laches D. reversion
laches
When a note and security instrument are in one document, this is best described as: A. purchase money mortgage B. wraparound C. land contract D. deed of trust
land contract
A man may take depreciation for income tax purposes on all of the following EXCEPT: a. a home rented to friends b. an apartment building c. a vacant duplex d. land held for future profit
land held for future profits
If lead-based paint disclosure is required on a specific property, the real estate agent is to ensure that the buyer or tenant has received which of the following? A. lead-based paint disclosure and booklet B. full disclosure statement of all cost to remove the lead paint C. home inspection from a qualified inspector D. soil inspection report
lead-based paint disclosure and booklet
The higher the capitalization rate expected by an investor, the A. less value a property would have B. more value a property would have C. more likely the investor is to invest in bank deposits D. more likely the investor is to insist on contract rent, not market rent
less value a property would have
Investor Betty borrows money from a bank to purchase a small office building. She is able to make the mortgage payments from the rent generated by the leases and still realize a profit. This is an example of what financing concept? A. appreciation B. leverage C. liquidity D. Marketability
leverage
Frank allows Rich to use his ice fishing shack while he's in Florida for the winter. This is most likely an example of an A. appurtenance B. easement in gross C. encroachment D. license
license
In order to qualify for a tax-deferred exchange, the properties must be A. same monetary value B. like for like C. matching equities D. equal mortgage amounts
like for like
Deed restrictions are placed on real property to A. force conformity to building codes B. limit the use of the subject property by the grantee C. forces conformity to city ordaninces D. carry out the role of the planning commission
limit the use of the subject property by the grantee
Which of the following defines an encumbrance? A. down payment in a property B. total sum of money invested in a property C. structure or improvement on the property D. limitation that is attached to the property
limitation that is attached to the property
What is the most common way to create an agency relationship between a home seller and a broker? A. buyer broker agreement B. by implication C. listing agreement D. oral contract
listing agreement
Which contract addresses the payment of a retainer? A. listing agreement B. purchase contract C. counteroffer D. addendum
listing agreement
Which document would least likely require a legal description? A. deed B. listing agreement C. mortgage D. title insurance
listing agreement
Which of the following would create an agency relationship? A. commission agreement B. listing agreement C. purchase contract D. rental agreement
listing agreement
in Arizona, a broker must be able to prove employment by a seller in order to be assured of collecting a commission. proof of employment is: A. deposit reciept B. escrow agreement C. listing agreement D. purchase contract
listing agreement
Who has the primary responsibility for presenting an offer? A. listing broker B. selling broker C. salesperson D. buyer's broker
listing broker
In Arizona, a broker must be able to prove employment by a seller in order to be assured of collecting a commission. Proof of employment is A. deposit receipt B. escrow agent C. listing contract D. purchase contract
listing contract
When a salesperson and broker are in court to settle a dispute, this would most likely be called A. mediation B. arbitration C. litigation D. interpleader
litigation
A person named in an insurance policy who will receive the insurance proceeds if the property is damaged is the A. loss payor B. loss payee C. additional party insured D. homeowner
loss payee
Jane consults a plat map to confirm the legal description for a piece of property she is preparing to purchase. What type of legal description is being used for this property? A. governmental survey B. lot and block C. metes and bounds D. rectangular survey
lot and block
What duty is an agent of the buyer breaching when she appears to be advocating for the seller customer? A. disclosure B. loyalty C. obedience D. reasonable care
loyalty
A property manager becomes an agent of a property owner by signing a A. listing agreement B. management agreement C. power of attorney D. specialized statement
management agreement
The Federal Reserve (or the fed) is responsible for A. determining levels of taxation B. managing the supply of money C. regulating real estate markets D. setting the interest rate
managing the supply of money
A title free from defects that an owner has the right to convey is an A. equitable title B. inequitable title C. legal title D. marketable title
marketable title
A purchase informs you that the seller has five days in which to accept this offer. The purchaser during this period. A. may not demand his earnest money be returned B. must wait the full five days before taking any action C. may withdraw the offer before acceptance D. may do nothing unless the time of the listing has expired
may withdraw the offer before acceptance
A purchaser informs you that the seller has five days in which to accept this offer. The purchaser during this period A. may not demand his earnest money be returned B. must wait the full five days before taking any action C. may withdraw the offer before acceptance D. may do nothing unless the time of the listing has expired
may withdraw the offer before acceptance
The multiple listing service MLS was created so that A. agency agreements and disclosures would not be necessary B. brokers could have a secure place to record a client's confidential information C. member brokers could share listings with a blanket offer of cooperation and compensation D. sellers and buyers could find each other
member brokers could share listings with a blanket offer of cooperation and compensation
Milo, who is buying a house, was looking through the purchase documents when he noticed this property description: "Beginning at the old oak tree, then south 15 degrees east to the embedded street pin, thence north 90 degrees..." what type of legal description system is this? A. government survey B. lot and block C. metes and bounds D. plat map
metes and bounds
The following would be an example of what type of surveying system? Beginning at the SE corner of Tatum and Cactus, proceed 2,640 feet north, thence 400' west, thence 700 feet south, and back to the beginning. A. rectangular survey B. block and lot C. metes and bounds D. recorded plat
metes and bounds
The main appeal of FHA loans to the borrower lies in A. low interest rates B. minimum down payment C. unlimited mortgage ceiling D. easy accessibility
minimum down payment
The main appeal of FHA loans to the borrower lies in: a. low interest rates b. minimum down payment c. unlimited mortgage ceiling d. easy accessibility
minimum down payment
Which of the following is NOT essential to a valid contract? A. monetary consideration B. competent parties C. mutual assent D. lawful object
monetary consideration
Cash-on-cash returns is A. money received on equity B. money received on loan C. money received on taxable income D. money received on profit
money received on equity
What is Not Likely to be included on a plat map? A. easements B. subdivisions name C. lot and block D. monuments
monuments
A lender of a conventional loan would require private mortgage insurance PMI when the loan-to-value is A. less than 80% B. less than 75% C. more than 80% D. more than 75%
more than 80%
In Arizona, a lease is required to be in writing if it is for A. more than six months B. one year or less C. more than one year D. a minimum of two years
more than one year
At closing, the lender would collect what cost that is owed in arrears? A. discount points B. mortgage insurance C. mortgage interest D. mortgage principal
mortgage interest
What is a voluntary, specific lien? A. attachment lien B. judgement lien C. mortgage lien D. property tax lien
mortgage lien
Who is most likely to work directly with a buyer throughout the entire loan process? A. mortgage banker B. mortgage broker C. mortgage dealer D. mortgage loan originator
mortgage loan originator
If a property lies within the boundaries of the areas in which water rights are being adjudicated, the owners A. must file a claim to be included in the court's decision B. are not affected by the court action C. must wait until the court decision is made before asserting a claim D. are automatically included in the court action
must file a claim to be included in the court's decision
A property owner and broker agree to a listing agreement that provides for the owner to receive a specified amount from the sale and the broker to receive anything above that amount. This type of listing is called A. net listing B. exclusive agency listing C. exclusive right to sell listing D. open listing
net listing
A property owner and broker agree to a listing agreement that provides for the owner to receive a specified amount from the sale and the broker to receive anything above that amount. This type of listing is called a A. net listing B. exclusive agency listing C. exclusive right to sell listing D. open listing
net listing
The type of listing in which the broker is LEAST LIKELY to know the amount of money that will be received as commission for the sale of the property is an A. open listing B. exclusive right to sell listing C. exclusive agency listing D. net listing
net listing
The most important component in determining cash flow is A. appreciation B. depreciable value C. interest D. net operating income
net operating income
Who carries out the foreclosure when a property is secured by a deed of trust? A. mortgagor B. beneficiary C. redemption officer D. neutral third party
neutral third party
At a mortgage foreclosure sale, the buyer gets a deed from A. the sheriff B. the mortgagor C. the mortgagee D. no one
no one
At a mortgage foreclosure sale, the successful bidder gets a deed from A. the sheriff B. the mortgagor C. the mortgagee D. no one
no one
Which statement about bedbugs under the provisions of the Arizona Landlord and Tenant Act is false? A. landlord cannot lease a dwelling unit if he knows of a current bedbug infestation B. tenant must notify the landlord of the presences of bedbugs C. A tenant shall not knowingly move materials infested with bedbugs into a dwelling unit D. no resident property is exempt from the provisions related to bedbugs
no resident property is exempt from the provisions related to bedbugs
Once the trustee's sale has occurred in the foreclosure of a trust deed, the trustor has: A. no right to redeem B. 30 days to redeem if property is abandoned C. 6 months to redeem D. 90 days to reinstate
no right to redeem
Once the trustee's sale has occurred in the foreclosure of a trust deed, the trustor has: A. no right to redeem B. 30 days to redeem if the property is abandoned C. 6 months to redeem D. 90 days to reinstate
no right to redeem
Jim's broker, Bruce, submits to Tom an offer to purchase signed by Jim, stipulating a price of $250,000 and closing within 90 days. Tom accepts the price and changes the closing to 60 days, then signs and returns the contract to Bruce, who gives it to Jim. Is the contract valid? A. no, because there was no meeting of the minds B. yes, because it is in writing and signed by both parties C. yes, because they agreed on the price D. yes, because Tom initialed his changes
no, because there was no meeting of the minds
In an exclusive right to sell listing with a 120-day broker protection clause, the owner sells the property to one of the broker's previous referrals on day 121. What commission is the broker to receive if the property was relisted? A. none B. 50% C. 75% D. 100%
none
Which sequence of events BEST represents the steps in a judicial foreclosure? A. foreclosure suit; notice of default; writ of execution; statutory redemption' sheriff's sale; equitable redemption B. forclosure suit; writ of execution; notice of default; equitable redemption; sheriff's sale; statutory redemption C. notice of default; foreclosure suit; writ of execution; equitable redemption; sheriff's sale; statutory redemption D. write of execution; notice of default; equitable redemption; foreclosure suit; sheriff's sale; statutory redemption
notice of default; foreclosure suit; writ of execution; equitable redemption; sheriff's sale; statutory redemption
Lis Pendens is an A. type of special assessment levied under the tax laws B. intermediate license status C. notice of pending court action D. pending contract
notice of pending court action
Lis pendens is an A. type of special assessment levied under the tax laws B. intermediate license status C. notice of pending court action D. pending contract
notice of pending court action
In order to be an enforceable contract there must be a valid offer, acceptance and A. counteroffer B. earnest money C. notification D. good faith deposit
notification
Ned has a signed agreement to buy Tim's car. The day before the title transfer, Ned calls Tim and says that he has changed his mind, but his sister Fay would like to buy the car on the same terms. Tim substitutes Fay's name for Ned's on the agreement. This is an example of A. assignment B. novation C. recission D. tender offer
novation
Credit scoring refers to A. the dollar amount of the loan a lender is willing to make to the borrower B. the lender's decision to approve the loan application C. numerical values the lender assigns to qualify the borrower D. the review of a loan application by the underwriting department
numerical values the lender assigns to qualify the borrower
Of these, which is a duty that someone owes only to a client? A. disclosure B. honesty C. obedience D. reasonable care
obedience
What duty would require a licensee to limit showings to one hour block on a sunday morning if the seller insists? A. accountability B. loyalty C. obedience D. The licensee would actually be in breach of the duty of reasonable care if he did not make every appropriate effort to market the property
obedience
The primary difference in buying property subject to the mortgage instead of assumption of the mortgage is in the A. quality of the title conveyed B. obligation of the trustee C. obligation of the vendee D. time for foreclosure
obligation to the vendee
Ordinarily, first half property taxes are due and payable A. march 1 B. may 1 C. october 1 D. november 1
october 1
When are property taxes payable? A. january B. november and may C. october and may D. october and march
october and march
Lisa owns a condo, which means she owns fee simple, the interior A. and exterior of her unit as well as the land it sits on B. and exterior of her unit only C. of her unit and a prorated percentage of the common elements D. of her unit only
of her unit only
A loan estimate must be given to a borrower within three business days A. of loan application B. after the buyer's request C. after closing D. prior to closing
of loan application
A valid contract must have A. offer and acceptance B. street address C. earnest money D. escrow instructions
offer and acceptance
On which of the Following properties would you most likely use the income approach to appraising? A. residential B. condominium C. office building D. vacant land
office building
RESPA applies to ________________________ financed by a federally regulated loan A. any commercial or residential property B. any residential property C. one to four family residences D. single family dwellings only
one to four family residences
Which of the following would be considered an exempt domestic well? A. one with a maximum pumping capacity of 50 gallons per minute B. one with a maximum pumping capacity of 35 gallons per minute C. any size pump used for domestic use D. any size pump as long as notice of intention to drill is given
one with a maximum pumping capacity of 35 gallons per minute
The maximum amount of money a residential tenant may deduct from their rent for self-help defects would be A. one month's rent B. one-half month's rent not to exceed $300 C. one-half month's rent or $300, whichever is greater D. one-half month's rent or $250, whichever is greater
one-half month's rent or $300, whichever is greater
A seller who lives in a small town has posters made up advertising his house for sale. He posts them on many telephone poles around the neighborhood. As part of the poster, he advertises that he will pay 3% to any broker who brings him a buyer. What type of "listing" might this be considered? A. exclusive agency B. exclusive right to sell C. net listing D. open listing
open listing
If the buyer of a property wants to remain anonymous, what term should be used for that buyer's name in the purchase contract? A. or nominee B. or nominor C. or principal D. or assignor
or nominee
Short-term capital gains are taxed at A. a maximum of 15% B. a maximum of 20% C. a maximum of 28% D. ordinary income tax rates
ordinary income tax rates
A particular metropolitan area draws more groundwater than is currently being replaced. This situation is known as A. excess utilization B. extreme liquidation C. overdraft D. undue depletion
overdraft
When land is designated to be in an AMA, which of the following apply? A. the land is located out of the CAP supply zone B. overdraft of the underground water supply may be occurring C. surface water rights have been eliminated D. irrigation rights have been lost
overdraft of the underground water supply may be occurring
Which statement about townhouse ownership is true? A. all owners own the common areas as tenants in common B. owners are members of a non-profit organization that owns the common areas C. owners are shareholders in the corporation that owns the common areas D. owners have horizontal ownership rights of the common areas
owners are members of a non-profit organization that owns the common areas
Familial status under the Federal Fair Housing prohibits discrimination against A. parents and all children B. parents that are handicapped C. parents with children under 18 years of age and pregnant women D. children who are dependent
parents with children under 18 years of age and pregnant women
Oral evidence may not e used to alter a written contract, this is called A. laches B. specific performance C. doctrine of relation back D. parol evidence
parol evidence
The rule that prevents the admission into court of any prior or simultaneous oral or written agreements that contradict the terms of the written contract is referred to as the A. doctrine of laches B. parol evidence rule C. rule of genuine assent D. statute of fraud
parol evidence rule
A lender agrees to reduce the interest rate on a loan but specifics in the agreement with the borrower that the lender shall receive 2% of all gross income from the property on which the loan was placed. This is an example of a A. package loan B. participation loan C. subrogation loan D. subordination loan
participation loan
A lender agrees to reduce the interest rate on a loan but specifies in the agreement with the borrower that the lender shall receive 2% of all gross income from the property on which the loan was placed. This is an example of a: a. Package loan b. Participation loan c. Subrogation loan d. Subordination loan
participation loan
Bonnie's Balloons rents retail space from ARC Inc. Bonnie pays ARC $600 each month in rent in addition to 12% of her balloon shop's gross sales. What kind of lease is this? A. gross lease B. index lease C. net lease D. percentage lease
percentage lease
What type of lease is more common for retail property than other types of commercial property? A. graduated lease B. ground lease C. index lease D. percentage lease
percentage lease
Which of the following documents would homeowners association not be required to give a buyer upon resale? A. financial statements for HOA B. reserve analysis C. bylaws of the association D. personal financial statements
personal financial statements
Which would most likely be a health concern to homeowners living near golf courses? A. noise B. golf balls C. pesticides D. early morning traffic
pesticides
Hypothecation involves the A. maker and payee. B. passing of legal title to disinterested third party until a loan is repaid C. pledge of property as collateral for a loan while continuing to possess it. D. promise to discharge the lien on the property once a loan is repaid.
pledge of property as collateral for a loan while continuing to possess it.
Jared buys two adjacent parcels of land for $20,000 each. An appraisal shows that his combined parcel is now work $50,000. The increase in value is an example of A. assemblage B. frontage C. plottage D. subdividing
plottage
The increase in value created by joining ownership of several smaller parcels of land into one large single ownership is called A. par value increase B. over improvement C. plottage increment D. physical inflation
plottage increment
In the metes and bounds system the description is always ends at the A. fixed monument B. intersection of range lines and base lines C. point of beginning D. primary deviation
point of beginning
FHA monthly loan payments include all of the following EXCEPT: a. loan principal b. pre-paid property taxes c. pre-paid property insurance d. pre-paid loan interest
pre-paid loan interest
What special authority is given to the real estate licensees by the Arizona Constitution in Article XXVI? A. charge fees for brokering real estate transactions B. create fiduciary relationships with consumers C. prepare documents related to real estate transactions D. share property listings with other real estate licensees
prepare documents related to real estate transactions
Which of the following actions is not permissible by a licensed real estate broker? A. preparing an appraisal for a property owner B. preparing a competitive market analysis for a seller C. paying a referral fee to an out of state broker D. placing an ad in the newspaper using a telephone number other than the company's
preparing an appraisal for a property owner
An interest in title to real property, not government owned, obtained by action at law based on adverse possession best describes A. acquisition B. escheat C. prescriptive suit D. homestead
prescriptive suit
A listing broker receives several offers at the same time. The broker should A. present only the best B. present all the offers C. present the three best D. wait for more offers before presenting to the seller
present all the offers
A salesperson receives an offer on a listing that is much lower than the listed price. What should the salesperson do? A. ignore the offer B. present the offer C. counter the offer for the seller D. reject the offer for the seller
present the offer
Mortgage bankers typically make loans in the A. money market B. primary market C. secondary market D. stock market
primary market
When NOI is based on hypothetical future estimates in order to assist in decision making, it is known as an A. financial statement B. market analysis C. operating budget D. proforma statement
proforma statement
Which document is evidences of debt, showing who owes what to whom? A. deed B. mortgage C. promissary note D. purchase agreement
promissary note
Which of these is NOT an example of a collateral lien document? A. land contract B. mortgage C. promissory note D. trust deed
promissory note
Littoral rights would refer to A. building material B. the heir rights in deeded property C. mineral rights easements D. property bordering lakes and oceans
property bordering lakes and oceans
Littoral rights would refer to A. building material B. the heir rights in deeded property C. mineral rights and easements D. property bordering lakes and oceans
property bordering lakes and oceans
Which of the following would be considered community property? A. property bought by either party before marriage B. property acquired by gift after marriage C. property acquired by inheritance after the marriage D. property bought by one of the parties during the marriage
property bought by one of the parties during the marriage
Under the principle of substitution A. property cannot be worth more than the cost of acquiring an equally desirable replacement B. there should be a reasonable degree of uniformity in property values C. excess profits tend to encourage ruinous competition D. a good structure substituted for a bad structure will not cure the ills of the surrounding neighborhood
property cannot be worth more than the cost of acquiring an equally desirable replacement
Under the principal of substitution: a. property cannot be worth more than the cost of acquiring an equally desirable replacement property b. there should be a reasonable degree of uniformity in property values c. excess profits tend to encourage ruinous competition d. a good structure substituted for a bad structure will not cure the ills of the surrounding neighborhood
property cannot be worth more than the cost of acquiring an equally desirable replacement property
A property manager owes his or her fiduciary duties to the A. tenant B. arizona department of housing C. property owner D. local police force
property owner
What is NOT allowed in a valid listing agreement? A. signature of the principal B. material terms C. provisions for automatic renewal D. inception and expiration dates
provisions for automatic renewal
What is Not allowed in a valid listing agreement? A. signature of the principal B. material terms C. provisions for automatic renewal D. inception and expiration dates
provisions for automatic renewal
Of these types of deed, which would most likely be used to clear a cloud on the title? A. bargain and sale deed B. quitclaim deed C. referee's deed D. limited warranty deed
quitclaim deed
Which of the following documents would be used to remove a cloud on the title? A. special warranty deed B. quitclaim deed C. disclaimer deed D. bargain and sale deed
quitclaim deed
What environmental hazard is a product of the natural decay of radioactive substances found in the ground? A. asbestos B. radon C. lead D. carbon monoxide
radon
Which statement regarding radon is False? A. the process of radon gas abatement is relatively inexpensive B. radon enters a home through the ground C. radon is a gas that forms as a result of uranium decay D. radon is a gas that is formed from poor furnace maintenance
radon is a gas that is formed from poor furnace maintenance
In the rectangular survey system, strips of land that run north and south and are six miles wide are called A. ranges B. townships C. sections D. government lots
ranges
Of these assets, which is the Least liquid? A. certificates of deposit B. gold C. real estate D. savings bonds
real estate
At least 100 people are required by law to participate in order to form a A. syndicate B. corporation C. limited partnership D. real estate investment trust
real estate investment trust
Which of the following does the Arizona Department of Real Estate enforce? A. fair housing statues B. landlord-tenant disputes C. complaints regarding escrow officers D. real estate statutes and rules
real estate statutes and rules
Which of these is Least Likely a legitimate reason to deny giving a lease to a prospective tenant? A. income level to low B. previous eviction C. receives public assistance D. recent arrest for drug trafficking
receives public assistance
A competitive market analysis is performed by reviewing A. recently sold properties only B. similar properties C. recently sold properties and other properties currently on the market D. the appraiser's notes
recently sold properties and other properties currently on the market
What is a dual agent Not allowed to share with his client in a real estate transaction? A. closing costs that each should expect to pay B. real estate terms C. recommended offer price D. sale price of comparable properties
recommended offer price
Appraiser Alan developed all three approaches to value. What is Alan's next step in the appraisal process? A. analyze the data B. determine highest and best use C. prepare the appraisal report D. reconcile the approaches
reconcile the approaches
Generally, the priority of a lien is, in the absence of fraud, created as of the date it was A. signed B. acknowledged C. recorded D. certified
recorded
A property described by lot and block number is part of a A. development B. government survey C. recorded deed D. recorded plat
recorded plat
A seller of a listed property instructs the broker not to show the property to a specific religious group. The broker should a. obey the instructions B. refuse and revoke the listing C. Obey, but only if the client puts it in writing D. comply, provided that the religious group is not a corporation
refuse and revoke the listing
A seller wants to list a four plex and line in one unit, but doesn't want any children in the units. What should the agent do? A. list the property and indicate no children B. refuse the listing, it violates fair housing C. charge the families with children a higher deposit D. refuse the application if they have children
refuse the listing, it violates fair housing
In a blanket mortgage, which special clause would you most likely find? A. acceleration clause B. release clause C. alienation clause D. subrogation clause
release
A quitclaim deed is commonly used to A. convey title B. release an interest in title C. secure a loan D. cloud the title to real property
release an interest in title
In a blanket mortgage, which special clause would you most likely find? A. acceleration clause B. release clause C. alienation clause D. subrogation clause
release clause
Agent Ollie's seller client has asked him to violate fair housing laws, so his broker determines that the best course of action is to cancel the listing agreement. In this case, the agency relationship is terminated due to A. abandonment B. renunciation C. revocation D. subrogation
renunciation
When the cost approach is used to determine value, which of the following applies? a. replacement minus depreciation b. gross income minus expenses c. net income plus land value d. comparable properties in the area plus the land
replacement minus depreciation
What is the purpose of Form 1099-s? A. discloses the final settlement costs owed by a seller of real property B. documents the commission earned by a broker from the sale or real property C. provides details of the closing requirements to the settlement officer D. reports the seller's proceeds from the sale of the real property to the irs
reports the seller's proceeds from the sale of the real property to the irs
In an agency relationship, the primary ethical duty of a broker is to A. disclose all items to all parties B. represent all parties C. represent neither buyer or seller D. represent the principal
represent the principal
What is the purpose of the Foreign Investment Real Property Act? A. reports the sale of personal property B. reports the sales price to IRS C. requires tax withholding if seller is a non-resident alien D. describes the loan status of foreign nationals
requires tax withholding if seller is a non-resident alien
What is the purpose of the foreign investment real property act? A. reports the sale of personal property B. reports the sale price to IRS C. requires tax withholding if seller is a non-resident alien D. describes the loan status of foreign national
requires tax withholding if seller is a non-resident alien
A voidable contract is A. enforceable B. void C. rescindable by one the parties D. all of the above
rescindable by one the parties
The Arizona Department of Real Estate has Authority over all of the Following Except: A. cemetery brokers and salespersons B. development of residential subdivisions C. membership camping brokers and salespersons D. residential real estate appraisers
residential real estate appraisers
The type of mortgage where a lender pays the borrower based on the equity of the house is called a A. reverse mortgage B. blanket mortgage C. package mortgage D. budget loan
reverse mortgage
The type of mortgage where the lender pays the borrower based on the equity of the home is called: A. reverse mortgage B. blanket mortgage C. package mortgage D. budget loan
reverse mortgage
Amy grants property to Bill for the life of Charles. After the death of Charles, the property goes back to Amy. What does Amy have? A. life estate pur autre vie B. leasehold estate C. reversionary interest D. freehold estate
reversionary interest
When property escheats, the title A. passes to the named heirs B. passes to the next of kin C. reverts to the named remainderman D. reverts to the state
reverts to the state
Agent Amy has not been responsive to seller Sam, and actually forgot to show up for a scheduled open house. If Sam decides to terminate the listing agreement, Sam would be terminating the contract throught A. mutual consent B. renunciation C. revocation D. subrogation
revocation
Monthly payments on a FHA loan would most likely increase due to a A. rise in insurance premiums B. rise in the interest rate C. shortening of the length of the loan D. change in loan amount
rise in insurance premiums
Monthly payments on an FHA loan would most likely increase due to a A. rise in insurance premiums B. rise in the interest rate C. shortening of the length of the loan D. change in loan amount
rise in insurance premiums
What was the outcome of the Supreme Court case Jones v Mayer? A. declared private "restrictive covenants" unconstitutional B. ruled for a "separate but equal" doctrine of legalized racial segregation C. ruled that race is a protected class with no exceptions D. ruled that "separate but equal" was unconstitutional
ruled that race is a protected class with no exceptions
Which document is the most critical to settlement, basically laying the foundation for the closing? A. abstract of title B. bill of sale C. mortgage D. sales of contract
sales of contract
A salesperson who prepares a written listing agreement with a seller is assisting in the creation of a contractual relationship between the A. salesperson and the listing broker B. salesperson's broker and seller C. salesperson and the buyer D. salesperson and the seller
salesperson's broker and seller
A salesperson who prepares a written listing agreement with a seller is assisting in the creation of a contractual relationship between the A. salesperson and the listing broker B. salesperson's broker and the seller C. salesperson and the buyer D. salesperson and the seller
salesperson's broker and the seller
Fannie Mae is active in the A. primary mortgage market B. secondary mortgage market C. loan origination market D. federal reserve market
secondary mortgage market
Fannie Mae is active in the: a. primary mortgage market b. secondary mortgage market c. loan origination markets d. federal reserve market
secondary mortgage market
If you're standing in the middle of section 23 and walk 4 miles east, what section are you in? A. section 4 B. section 19 C. section 21 D. section 35
section 21
A federal rend subsidy program is known as A. pathway to purchase B. section 8 C. landlord tenant act D. protecting tenants in foreclosure act
section 8
Steven's home was auctioned at a sheriff sale and the investor paid less than the amount owed on the loan. To recover the remaining debt owed on the loan. To recover the remaining debt owed on the property, what recourse might the lender have? A. attach a new mortgage lien B. file a lis pendens C. seek a deficiency judgement D. the lender has no recourse
seek a deficiency judgement
If a tenant abandons a residential apartment, the landlord must do all of the following except A. sell the tenant's personal property after holding if for 10 days B. hold any personal property of the tenant for at least 14 days before disposing it C. post a notice of abandonment on the apartment door and wait 5 days before entering D. send a notice of abandonment to the tenant through certified mail
sell the tenant's personal property after holding if for 10 days
Jane is a licensee who works for Jim Smith Realty, Inc. As such, Jane would be considered what type of agent of the employing broker? A. she is a general agent B. she is a special agent C. she is a universal agent D. she is not an agent of the employing broker
she is a general agent
An example of involuntary alienation is where title to real estate passes by: A. quitclaim deed B. trust deed C. grant deed D. sheriff's deed
sheriff's deed
Mary Ann wants to avoid foreclosure, so she asks the lender to accept a purchase price that is less than the amount owed on her property. This type of agreement is a A. deed in lieu of foreclosure B. deficiency agreement C fiduciary deed D. short sale
short sale
Which is not a requirement in order to receive an Arizona real estate brokers license? A. complete the approved Broker Management Clinic B. complete 90 hours of approved brokerage prelicensing education C. pass the state broker's license exam D. show verified full-time Arizona real estate experience for 3 of preceding 5 years
show verified full-time Arizona real estate experience for 3 of preceding 5 years
A husband acquires property of several types as sole and separate. What should the wife do to protect herself? A. sign a disclaimer deed B. sign a quitclaim deed C. sign a prenuptial agreement D. divorce him
sign a disclaimer deed
Which of the following would be considered a security? A. single family homes in an investment pool B. more than six separate lots for sale C. land owned by a corporation D. single-family home listed by an LLC
single family homes in an investment pool
When performing a CMA, which properties should a licensee evaluate A. active listings only B. sold properties only C. sold and expired listings only D. sold, active, expired, and withdrawn listings
sold, active, expired, and withdrawn listings
Which type of business ownership does NOT protect the owner from the business's financial liability? A. corporation B. limited liability company C. limited partnership D. sole proprietorship
sole proprietorship
If you are standing in Section 20 and go to Section 25, what direction are you going? A. due south B. due east C. southeast D. southwest
southeast
A real estate broker in the typical agency relationship with a client is a A. implied agent B. ostensible agent C. special agent D. general agent
special agent
Roger has moved out of the country for his job and does not have time to deal with selling his house. He signs a statement granting best friend Louis the authority to list his house and negotiate with prospective buyers. Louis would most likely be considered a A. general agent B. implied agent C. special agent D. universal agent
special agent
Which of the following is determined by measuring the exterior dimensions of a home including garages, patios and entryways? A. square footage of living area B. square footage under roof C. front footage area D. heated and cooled areas
square footage under roof
What organization receives most of the benefit of proceeds from the sale or lease of state trust land? A. county governments B. state schools C. arizona house of representatives D. arizona senate
state schools
A state law that requires all real estate contracts to be in writing to be enforceable by the courts is the A. parol evidence statute B. specific performance statute C. statute of frauds D. statute of limitations
statute of frauds
A home developer has an existing mortgage for the purchase of land. If the new lender of a second construction mortgage wants to ensure that the second construction mortgage take priority over the existing first mortgage, what type of clause must be contained in the construction mortgage? A. acceleration clause B. defeasance clause C. power of sale clause D. subordination clause
subordination clause
When applying the adjustments to the comparables, the appraiser will A. add the value of a superior feature to the comp and subtract the value of an inferior feature from the comp. B. add the value of a superior feature to the subject and subtract the value of an interior feature from the subject C. subract the value of a superior feature from the comp and add the value of an inferior feature to the comp D. subtract the value of a superior feature from the subject and add the value of an inferior feature to the subject
subract the value of a superior feature from the comp and add the value of an inferior feature to the comp
Tom and Margo find their dream house, which includes the stainless steel appliances they wanted, but it's priced high. They decided to buy a house two blocks away with nearly identical features, minus the appliances, for $20,000 less. They figure they can replace the appliances later if they choose and still come out ahead financially. What theory is at work? A. conformity B. contribution C. regression D. substitution
substitution
Comp #2 has a deck; the subject property does not have a deck. Through matched pair analysis, the appraiser has determined that a deck in that neighborhood is worth $3,000. What is the appropriate way to apply this information when performing the sales comparison approach to valuation? A. add $3,000 to comp #2 value B. subtract $3,000 from comp #2 value C. add $3,000 to the subject base D. subtract $3,000 from the subject base
subtract $3,000 from comp #2 value
Tom hires broker Mary to help him find a house, agreeing to a 180-day contract. After 30 days and 42 houses, Mary tells Tom she will not show him any more houses since he's clearly uninteresting in buying anything. Which is LEAST LIKELY to be an option for Tom? A. renegotiate the contract with Mary, offering a greater commission if she shows him more houses B. file a complaint against Mary with the state real estate commission C. sue Mary for breach of her duties to her client D. sue to compel Mary to honor the contract and show him more houses.
sue to compel Mary to honor the contract and show him more houses
Which of the following is not recognized in Arizona? A. joint tenancy B. severalty C. tenancy by the entirety D. tenancy in common
tenancy by the entirety
What is the only form of co-ownership that permits division of property in unequal proportions? A. joint tenancy B. severalty C. tenancy by the entirety D. tenancy in common
tenancy in common
When a person buys a condo, how do they hold title to the common areas? A. sole and separate B. joint tenancy C. tenancy in common D. community property
tenancy in common
When a person buys a condo, how do they hold title to the common ground? A. sole and separate B. joint tenancy C. tenancy in common D. community property
tenancy in common
When a person buys a condo, how do they hold title to the common ground? A. sole and seperate B. joint tenancy C. tenancy in common D. community property
tenancy in common
When a claim is paid by the Real Estate Recovery Fund, the status of the licensee's license is A. inactive B. suspended C. terminated D. unaffected
terminated
Of these, which is not a cost that a seller typically pays? A. affidavit of value B. back taxes C. escrow fees D. termite report
termite report
Hank and Jeanine run brokerages on opposite sides of town. They decide they can save alot of money on gas if they concentrate on their side of town only. Hank agrees to send customers interested in north side properties to Jeanine if she will send him any customers interested in south side properties. This is an example of A. territory allocation B. blockbusting C. price-fixing D. redlining
territory allocation
A devise is an example of an_________________ conveyance. A. involuntary B. intestate C. testamentary D. defeasible
testamentary
When a person dies with a will, it's considered ___________. When a person dies without a will it's called _________. A. descent/devise B. intestate/devise C. intestate/testate D. testate/intestate
testate/intestate
The right of an Arizona real estate licensee to prepare certain legal documents and forms comes from A. the Arizona Statute of Frauds B. the commissioner's rules C. the Arizona Constitution D. local ordinances
the Arizona Constitution
Fred owns a unit in the Desert Sands Condominium Community, where there are 127 units. When he puts his condo on the market, who is required to provide copies of the bylaws and CC&Rs to prospective buyers? A. the Desert Sands Condo Association B. Fred, as the owner C. Fred's real estate agent D. no one; these are not required for subsequent owners
the Desert Sands Condo Association
When a property located within a homeowners association is listed for sale, who is responsible for supplying the relevant documents to the prospective buyer? A. the selling broker B. the listing broker C. the seller, if there are more than 50 units in the HOA D. the HOA, if there are more than 50 units
the HOA, if there are more than 50 units
In Arizona, who has the authority to issue real estate licenses? A. the Advisory Board of the Department of Real Estate B. the Department of Real Estate C. the Real Estate Commissioner D. the Superintendent of Public Instruction
the Real Estate Commissioner
A broker has earned a commission when: a. the broker lists the property b. the broker has shown the property to several prospects c. the broker secures a willing and able buyer making an offer meeting the seller's terms d. only when the seller accepts the buyer's offer and the escrow has closed
the broker secures a willing and able buyer making an offer meeting the seller's terms
In order to collect a commission under an exclusive right to sell listing, it is not necessary for a broker to prove which of the following? A. the listing was signed by the seller B. the listing was valid C. the broker was licensed at the time D. the broker was the procuring cause
the broker was the procuring cause
A salesperson runs an ad in the local paper promoting a broker's listing. What is true? A. the salesperson's name must appear B. the designated broker's name must be larger in size than the salesperson's name C. the brokerage name must appear prominently in the ad D. the broker's telephone number must appear in the ad
the brokerage name must appear prominently in the ad
Seller Stu and buyer Brenda come to terms and sign the purchase contract, agreeing to close in 30 days. Two weeks after they sign the contract, Stu's house was swept away by a flood, terminating the sale. What is the record retention requirement for the brokerages involved? A. the brokerages must maintain the contract for one year B. the brokerages must maintain the contract for three years C. the brokerages must maintain the contract for five years D. the brokerages are not required to keep the contract since the sale fell through
the brokerages must maintain the contract for five years
A few real estate brokers from different companies were discussing the possibility of establishing an office policy to list for sale all raw land at a 10% commission. Which of the following is true? A. the brokers are not guilty of anything because it would be an office policy B. the brokers violated REG Z C. the brokers are in violation of Sherman Antitrust Act D. the brokers are in violation of RESPA
the brokers are in violation of Sherman Antitrust Act
Which item is LEAST LIKELY to be a fixture? A. the built-in washer that's at the repair shop on the day of closing B. the curio cabinet in the living room that matches the room's decor C. the keys to the house D. the white picket fence around the house
the curio cabinet in the living room that matches the room's decor
Which is Least Likely to be a material fact that must be disclosed? A. the home has a crack in a basement wall B. the home is located in a floodplain C. the home is owned by the listing agent D. the home was the scene of a grisly murder
the home was the scene of a grisly murder
Sunshine Property is a REIT that owns and operates 79 strip malls. Sunshine Property has 420 stakeholders and is managed by a seven-member board of directors. Who, if anyone, are the beneficiaries in this arrangement? A. no one is a beneficiary B. the board of directors C. the investors D. the tenants of the strip mall
the investors
In a typical homeowners insurance property, who would likely be paid first in the event of a total loss of the property? A. the builder B. the homeowner C. the lender D. the real estate agent
the lender
A handicapped person is leasing a house that requires modification. Which of the following is true about the modification? A. the lessor may forbid handicapped modifications B. the lessor can require the lessee to reasonably restore the property at the end of the lease C. the lessor must pay for the modifications D. the lessor can increase the rent due to the risk of the handicapped person
the lessor can require the lessee to reasonably restore the property at the end of the lease
The water table is defined as A. all surface water B. water in relation to sea level C. where portable water can be found D. the level at which water will be located
the level at which water will be located
The water table is defined as A. all surface water B. water in relation to sea level C. where potable water can be found D. the level at which water will be located
the level at which water will be located
The listing agent presents a full-price cash offer with no contigencies to the seller during the listing period. The seller refuses to sign the contract, because he does not like the buyers. Which statement do you think is True? A. no commission can be due to unless the sale closes B. the buyer could sue to force the sale C. the listing agency is due a commission D. the listing contract should be automatically terminated
the listing agency is due a commission
When a seller lists his property with a broker and the seller subsequently files a chapter 13 bankruptcy, what is the status of the broker's lsiting? A. the listing is unaffected B. the listing must be ratified by the bankruptcy court to remain valid C. the listing would now be handled by the executor of the estate D. the listing would be part of the estate and cannot be canceled by either owner or broker
the listing must be ratified by the bankruptcy court to remain valid
You are currently associated with ACE Realty. The recently changed the commission structure and so you're looking for a new employing broker. You decide to go to work for Tip Top Real Estate. On your last day at ACE, you have three active listings. What happens to them? A. Ace can agree to sell the listings to Tip Top B. Ace has the option to let you take the listing with you if you agree to give them their commission split C. the listing remains at Ace D. you can take them with you to Tip Top
the listing remains at Ace
In what situation would a short sale be likely? A. the loan balance is greater than the property value B. the loan balance is less than the property value C. the loan has a non-recourse provision D. the total of all liens is less than the property value
the loan balance is greater than the property value
Rhonda is selling her condo in Cactus Condominiums, a community of 75 residences. She lists her condo with Tom of AT@Realty. Who is responsible for providing buyer Brenda with the bylaws and CC&Rs for Cactus Condominiums A. agent Tom B. the owners association of Cactus Condominiums C. seller Rhonda D. no one, although Brenda may request these documents
the owners association of Cactus Condominiums
Which of the following is not properly included in the concept of the power of eminent domain? A. the right of government to confiscate personal property from the owner B. an inherent power of government C. just compensation at fair market value D. taking property through legal procedures
the right of government to confiscate personal property from the owner
Under what condition would a listing agreement not terminate? A. the principal dies B. the broker dies C. the salesperson dies D. the bankruptcy of the seller
the salesperson dies
At closing, who signs the new deed? A. the buyer only B. the seller only C. both the buyer and seller D. the buyer, the seller, and a witness, usually the settlement officer
the seller
Of these, which agency termination is due to operation of law? A. the listing broker abandons the seller before the listing period ends B. the listing broker does not find a buyer before the listing period ends C. the listing broker sells the house D. the seller dies before the listing period ends
the seller dies before the listing period ends
What is required at the time an affidavit of affixture is recorded? A. the mobile home must have skirts installed B. the county assessor must inspect the property C. the titles to the mobile home must be surrendered D. the mobile home must be owner-occupied
the titles to the mobile home must be surrendered
What mandates how much a real estate broker can charge for a commission? A. multiple listing service membership regulations B. National Association of Realtors bylaws C. state licensing law D. there are no mandates
there are no mandates
The redemption period on a deed of trust after the trustee's sale is A. 30 days B. 90 days C. 6 months D. there is no redemption period
there is no redemption period
The redemption period on a deed of trust following the trustee's sale is: A. 30 days B. 90 days C. 6 months D. there is no redemption period
there is no redemption period
Paula defaulted on her deed of trust, and her property was sold at a trustee's sale. What is the statutory redemption period following sale during which Paula could reclaim her property? A. 30 days B. 3 months C. 6 months D. there is no redemption period after a trustee's sale
there is no redemption period after a trustee's sale
Gary is one of three brokers recently convicted of illegal boycotting. What did Gary and his fellow conspirators do? A. they agreed to charge the same commission for specific services B. they divided up their town into four quadrants so that each could focus on their specific area C. they decided to avoid showing clients homes listed by Discount Dan D. they included a clause in their listing contracts requiring clients to use AAA Co. as their home inspector.
they decided to avoid showing clients homes listed by Discount Dan
Rows of townships are called A. tiers B. ranges C. townhouses D. condominiums
tiers
The sales contract between homeowner Peyton and buyer Eli indicates a firm March 1 closing date. On the morning of March 1, Peyton calls and tells Eli that it's going to be a few days before he can transfer title. Eli indicates that since the deadline passed, the contract is now void. This contract most likely contained what type of clause? A. acceleration clause B. escape clause C. subordination clause D. time is of the essence clause
time is of the essence clause
Ned is co-owner of a property in Sedona. He is permitted to stay there only the first week of December and the third week of June every year. Ned Most Likely owns a A. cooperative B. condominium C. leasehold estate D. timeshare
timeshare
A bring down endorsement is associated with which of the following? A. points B. origination fee C. title D. homeowners insurance policy
title
A bring down endorsement is associated with which of the following? a. points b. origination fee c. title d. homeowner's insurance policy
title
Which form of title evidence is commonly used in Arizona? A. abstract and opinion B. title insurance C. Torrens certificate D. certificate of title
title insurance
Stephan buys a house from Joanne. Several documents show up prior to and during the settlement process. Which provides the best evidence that Joanne is passing marketable title to Stephan? A. affidavit of title B. deed C. title abstract D. title insurance policy
title insurance policy
An encumbrance is anything that burdens A. possession of property B. title of property C. zoning ordinances D. police power of the state
title of property
A purchase agreement does NOT need which of the following? A. signatures B. consideration C. title taken D. offer and acceptance
title taken
State in which title is conveyed to the mortgagee are referred to as A. equitable theory states B. intermediary theory states C. lien theory states D. title theory states
title theory states
Why are real estate instruments recorded in the county in which the property is located? A. because the law requires that such instruments be recorded B. because the broker cannot get his commission until these documents are recorded C. to comply with the terms of the statute frauds D. to give constructive notice of an interest in a particular parcel of real estate
to give constructive notice of an interest in a particular parcel of real estate
Why are real estate instruments recorded in the county in which the property is located? A. because the law requires that such instruments be recorded B. because the broker cannot get his commission until these documents are recorded C. to comply with the terms of the statute of frauds D. to give constructive notice of an interest in a particular parcel of real estate
to give constructive notice of an interest in a particular parcel of real estate
Deeds are recorded A. to provide constructive notice of their existence B. because law requires it C. to guarantee ownership D. to eliminate all other claims on title
to provide constructive notice of their existence
When would IRS form 1099-s be used? A. report foreign investors B. after a foreclosure sale C. to defer capital gains on a sale D. to report sales price
to report sales price
What is the purpose of state trust land? A. to support public institutions and public schools B. to provide income for the state government C. to preserve each state's natural areas D. to act as welcoming gift for being a state within the union
to support public institutions and public schools
What determines the north and south boundaries in a government survey? A. township lines B. range lines C. meridians D. metes and bounds
township lines
Which of the following is a security instrument in a real estate transaction? A. note B. trust deed C. easement D. estoppel
trust deed
which of the following is a security instrument in a real estate transaction? A. note B. trust deed C. easement D. estoppel
trust deed
A property is in the process of being foreclosed. Who is responsible for the property taxes? A. beneficiary B. trustor C. successful bidder D. trustee
trustor
When a trust deed is used as a security instrument, the borrower is considered to be the A. beneficiary B. holder C. trustee D. trustor
trustor
A landlord may inspect a rental unit if A. one day's notice is given B. two day's notice is given C. three day's notice is given D. no notice is given
two day's notice is given
New home builders in Arizona are required by law to provide a formal warranty on structures that is good for how many years? A. one year B. two years C. four years D. six years
two years
New home builders in Arizona are required by law to provide a formal warranty on structures that is good for how many years? A. one years B. two years C. four years D. six years
two years
Grandfathered water rights that can be sold separately from the land are known as A. type 1 B. assured C. adequate D. type 2
type 2
Radon gas would primarily be found in which of the following substances: A. insulation material B. lead-based paint C. underground minerals D. building materials containing formaldehyde
underground minerals
Radon gas would primarily be found in which of the following substances? A. insulation material B. lead-based paint C. underground minerals D. building materials containing formaldehyde
underground minerals
What would one most likely expect to find on a property that has been designated as a Superfund site? A. asbestos B. lead pipes C. radon D. underground storage tanks
underground storage tanks
A tenant and a landlord agree on an oral lease for three years. This lease is probably A. typical of leases B. illegal C. unenforceable D. renewable if in writing
unenforceable
An oral agreement for the sale of real property is A. unenforceable B. void C. enforceable D. voidable
unenforceable
Kyle is selling off his 200 acre farm. Neighboring farmer Beth tells Kyle she'd like to buy a 40 acre parcel that abuts her property. They shake hands. This oral contract is Most Likely A. unenforceable B. valid C. void D. voidable
unenforceable
You previously closed a real estate transaction for a client who is now deceased. You tell another agent about a bank account that the deceased person's spouse didn't know about. Which of the following describes this action? A. unethical because of fiduciary duties B. illegal because of fair housing duties C. ethical because the client is deceased D. legal because of fair housing
unethical because of fiduciary duties
Which of the following would NOT suffer from depreciation? A. an abandoned building B. a residential property used as a rental C. unimproved land D. a 2,700sq ft. commercial building
unimproved land
Joan has power of attorney to care for all aspects of her sister's life while her sister is serving in the military overseas. She handles her bills, signs legal papers, and even takes on the task of selling her sister's house. Which type of agency does this represent? A. general agency B. limited agency C. special agency D. universal agency
universal agency
Which type of agent is also known as an attorney in fact? A. general agent B. special agent C. universal agent D. all have equal authority
universal agent
Seller Sam files for bankruptcy prior to paying real estate agent Ann the commission that she earned for selling his house. Ann would be considered an A. secured creditor B. secured stakeholder C. unsecured creditor D. unsecured stakeholder
unsecured creditor
When a real estate brokerages declares Chapter 7 bankruptcy, the salesperson's commission would be considered a A. priority claim B. secured creditor claim C. unsecured creditor claim D. employee's wage claim
unsecured creditor claim
In an agreement for sale, when does the title convey? A. when the buyer has 50% equity B. as agreed upon in the contract C. as agreed upon in the note D. upon the last payment
upon the last payment
Charging interest rates in excess of the state maximum allowed is known as A. excrow B. defeasance C. hypothecation D. usury
usury
Which of the following would have the highest assessment ration? A. raw land B. apartment building with very low vacancy C. vacant shopping center D. single family residence
vacant shopping center
According to the Arizona Revised Statutes, when a deed is not recorded it is A. invalid B. valid only if recorded within 30 days of execution C. voidable if holder of deed does not hold title insurance D. valid, but potentially invalid against subsequently recorded interests
valid, but potentially invalid against subsequently recorded interests
if cap rates in an area are going up, how does this influence value? A. value remains the same B. value goes up C. value goes down D. value goes up by a multiple of the cap rate
value goes down
Property taxes are assessed on the A. capital gains on the property B. value of the property C. amount paid for the property D. assessments on the property
value of the property
________ is what property is expected to sell for; _________ is what the property actually sold for. A. cost/price B. price/value C. value/price D. value/cost
value/price
When performing the sales comparison approach, comparable sales should be A. competitive listings B. on the same street C. special sale properties D. very similar in most respects
very similar in most respects
A contract based on an illegal consideration is A. valid B. void C. legal D. illegal
void
Martin promises to pay Fred $10,000 to set fire to Martin's house so he can collect the insurance. Fred agrees and they shake on the deal. This oral contact could be described as A. invalid B. valid C. void D. voidable
void
You sign a contract agreeing to buy a piece of property from BOB, but Bob does not actually own the property. This contract is A. unenforceable B. valid C. void D. voidable
void
A seller accepted a contract on a house and then found out that the buyer was under 18 years of age A. void B. illegal C. voidable D. enforceable
voidable
A seller accepted a contract on a house and then found out that the buyer was under 18 years of age. The sale was A. void B. illegal C. voidable D. enforceable
voidable
Coercion and duress were applied against on party in a contract. The contract was A. void B. voidable C. valid D. enforceable
voidable
Ginny, age 16, inherits a parcel of land, and she agrees to sell it to Bob, age 45. this contract is A. unenforceable B. voidable by Bob C. voidable by Ginny D. voidable by either Bob or Ginny
voidable by Ginny
At what point does recordation take place? A. when a docket and page number are assigned B. at close of escrow date C. the date the document was signed D. the date the document was notarized
when a docket and page number are assigned
Generally speaking, a broker has earned his or her commission A. at the closing table B. when the listing agreement is signed C. when a ready, willing, and able buyer is found on terms acceptable to the seller D. when a sales contract is signed
when a ready, willing, and able buyer is found on terms acceptable to the seller
Phillip bought an office building several years ago for $195,000. He just sold it for $265,000 and bought an apartment building for $270,000 as part of a 1031 Exchange. When will Phillip have to pay capital gains taxes? A. never, by making the exchange, he avoids any capital gains taxes B. now that he sold the office building, but only for the $5,000 difference C. now that he sold the office building, since this want a like-kind exchange D. when he sells the apartment building, assuming he does not exchange it for another property
when he sells the apartment building, assuming he does not exchange it for another propert
At what point does title pass from seller to buyer? A. when the buyer accepts the keys from the seller B. when the buyer accepts the signed deed C. when the buyer pays the seller the purchase price D. when the new deed is recorded
when the buyer accepts the signed deed
At what point does recordation take place? A. when the docket and page number are assigned B. at close of escrow date C. the date the document was signed D. the date the document was notarized
when the docket and page number are assigned
PMI will automatically be eliminated from a conventional loan under what circumstances? A. after 5 years of payments B. upon borrower becoming disabled C. when the loan is sold to Fannie Mae D. when the loan amount is reduced to 78% LTV
when the loan amount is reduced to 78% LTV
PMI will automatically be eliminated from a conventional loan under what circumstances? A. after 5 years of payments B. upon borrower becoming disabled C. when the loan is sold to Fannie Mae D. when the loan to amount is reduced to 78% LTV
when the loan to amount is reduced to 78% LTV
A negative amortization loan would be a loan A. where the balance declines each month B. with principal payments only C. with private mortgage insurance D. where principal balance increases
where principal balance increases
The Real Estate Advisory Board A. will formulate new rules B. may revoke a saleperson's real estate license C. is appointed by the Real Estate Commissioner D. will advise and evaluate the real estate commissioner
will advise and evaluate the real estate commissioner
When land is purchased interstate, how long would a buyer have to rescind under the Federal Interstate Land Full Disclosure Act? A. 3 days after signing the contract B. until the property is inspected by the buyer C. within 7 days of receiving a property report D. within 6 months of bought sight unseen
within 7 days of receiving a property report
Keisha signs a lease with property manager Dave, giving him a security deposit as well as her first month's rent. The broker of the property management firm must place those security deposit funds in property management trust account A. by the end of the day B. by the end of the next banking day C. within three banking days D. within three calendar days
within three banking days
Which is NOT another name for an agreement for sale? A. contract for deed B. installment sale C. land contract D. wraparound contract
wraparound contract
When a person wishes to enforce a judgement, they would seek a A. lawsuit B. right of redemption C. notice of completion D. writ of execution
writ of execution
A buyer's agent has actual knowledge of structural damage to the floor boards of a home due to termite infestation. He informs his client that there are no termites in the home. The buyer signs a contract to purchase the property. Could the licensee be susceptible to claims of fraud? A. no because he is protected by the 'as is' clause in the purchase agreement B. no because he said there were no termites, which could be true at present C. yes because he knowing made a potentially untrue statement that could be seen as an inducement to buy D. yes unless there are visible signs of termites, in which case the buyer should have recognized it
yes because he knowing made a potentially untrue statement that could be seen as an inducement to buy
Broker David sold a house to Sue eight months ago and just heard that she's getting a transferred. Even though her name is on the National Do Not Call Registry, can David call her to see if she would list her house with him? A. no, since her name is on the National DNC registry, she is protected from solicitation for new buisness B. no, the transaction was so long ago that they no longer have an established business relationship C. yes, assuming that her name is not on his company's internal do not call list D. yes, they have and established business relationship that allows him to call her for up to 18 months with no restrictions
yes, assuming that her name is not on his company's internal do not call list
A preliminary title report would disclose all of the following except A. tax liens B. easements C. zoning D. judgements
zoning
Which is Not one of Arizona's Active Management Areas? A. Harquahala B. Pinal C. Prescott D. Santa Cruz
Harquahala
A man lives in a four-plex and rents out three of the units. Which of the following is true? A. He must comply with the federal fair housing act B. He does not need to comply with the Federal Fair Housing Act C. He must rent to disabled tenant D. He must install handrails on the property if requested
He does not need to comply with the Federal Fair Housing Act
The maintenance crew of Loma Linda Towers will be doing their annual checks of the furnace, air conditioning, and water heaters in each unit of the building. What is the property manager's obligation regarding notification before maintenance crew enters each dwelling unit? A. He must give each tenant a 24-hour notification B. He must give each tenant a two-day notification C. He can send out a general notification that crews will be in the building for the next two weeks D. since this is in annual maintenance check, no notification is required
He must give each tenant a two-day notification
Licensee Ivy of listing agency Green Realty has concluded a lengthy and detailed negotiation with licensee jack of buyer agency Scarlet Realty. After the closing of this transaction, which is the most likely scenario? A. Ivy and Jack will both be paid by Green Realty B. Ivy and Jack will both be paid by Scarlet Realty C. Ivy and Jack will both be paid by the seller D. Ivy is paid by Green Realty and Jack is paid by Scarlet Realty
Ivy is paid by Green Realty and Jack is paid by Scarlet Realty
Who would most likely be required to be licensed as a real estate broker or salesperson? A. Jan, who is an auctioneer auctioning real property B. Karrie, who is selling six properties that she owns C. Luke, who is managing a four-unit apartment building for its owner D. Melvin, an attorney drafting contracts for the sale of real property
Jan, who is an auctioneer auctioning real property
Which real estate licensee is Most Likely to be an independent contractor? A. Jack works for a builder/ developer selling new homes in a subdivision B. Jill works for a commercial brokerage specializing in retail leasing C. Joe works for a brokerage specializing in residential sales D. Julie works as a property manager for the owner of two large apartment complexes
Joe works for a brokerage specializing in residential sales
Betty gave an exclusive right to sell listing to Broker John, an exclusive agency listing to Broker Carole, and an open listing to several other brokers, including Broker Paul. Paul sold the house and collected a commission while the other listings were still in effect. Which of the following statements is correct? A. John and Carol are entitled to split the commission with Paul B. John and Carole are entitled to a second commission to be split between them C. John and Carole are each entitled to a full commission D. only Paul is entitled to a full commission
John and Carole are each entitled to a full commission
Which court case tested the constitutionality of the Civil Rights Act of 1866? A. US v Meyers B. 13th amendment C. State of Arizona v Miranda D. Jones V. Mayer
Jones V. Mayer
Work on a new dwelling was started on July 1. On August 1, the builder placed on record a mortgage. On September 1, work was completed and on October 25, the general contractor, not having been paid, files a mechanic's lien. Said lien has an effective date as of: a. July 1 b. August 1 c. September 1 d. October 25
July 1
The Real Estate Recovery Fund must have a minimum balance of $600,000 by what date? A. December 31 B. January 1 C. March 15 D. June 30
June 30
Licensee Karen of listing agency Diamond Realty has concluded a lengthy and detailed negotiation with licensee Jim of buyer agency Garnet Realty. After the closing of this transaction, which is the most likely scenario? A. Karen and Jim will both be paid by Diamond Realty B. Karen and Jim will both be paid by Garnet Realty C. Karen and Jim will both be paid by the seller D. Karen is paid by Diamond Realty and Jim is paid by Garnet Realty
Karen is paid by Diamond Realty and Jim is paid by Garnet Realty
Licensee Katrina of City Realty is monitoring an open house for her colleague Larry, who is on vacation. Prospective buyer Josh comes to the open house. If Katrina welcomes Josh to the house and answers his questions about the property, Josh is most likely A. Katrina's client B. Katrina's customer C. Larry's client D. neither a client nor a customer
Katrina's customer
In the cost approach, when figuring depreciation, which does not qualify as a depreciation item? A. Roof B. Air conditioner C. Land D. Fixtures
Land
After meeting at an open house, Lisa tells listing agent Kyle her wish list and how much she has to spend. He tells her that he has another house that is exactly what she's looking for, and there will be an open house there tomorrow. Lisa tells him she'll be there and hopes that he can help her get a good deal. Identify the statement that best describes the situation. A. Kyle breached his fiduciary duty to the seller by telling Lisa about another house B. Lisa could be Kyle's client through implied agency C. Lisa should assume that she is represented since he volunteered to show her a house D. Since Lisa disclosed confidential information, Kyle became her agent through express agency
Lisa could be Kyle's client through implied agency
Each of these borrowers is getting a conventional loan. Who will not be required to pay PMI? A. Kevin, who is borrowing $85,000 to purchase a house for $100,000 B. Lori, who is borrowing $150,000 to purchase a house for $250,000 C. Maurice, who is borrowing $250,000 to purchase a house for $250,000 D. None of them; PMI is only for FHA-insured loans
Lori, who is borrowing $150,000 to purchase a house for $250,000
Marge is a licensed sales associate at Bob's Brokerage. Which of these phrases is Least Likely to be evidence of her conspiracy to commit an antitrust violation? A. "let's do something about Top's discount fee policy" B. "no one will show your house for less than 6%" C. "our brokerage charges 7%, but I can talk to Bob about lowering that" D. "this is my neighborhood. Tell him to go sell somewhere else"
"our brokerage charges 7%, but I can talk to Bob about lowering that"
Clark and Lois bought their primary residence in 2001 for $300,000. They recently sold it for $500,000. On what amount will they owe capital gains? A. $0 B. $200,000 C. $300,000 D. $500,000
$0
What is the maximum civil penalty that the Real Estate Commission can levy against a licensee per violation? A. $500 B. $1,000 C. $25,000 D. there is no limit
$1,000
What is the maximum civil penalty that the Real Estate Commissioner could impose on a licensee who violates a provision of a statute or rule? A. $500 per violation B. $1,000 per violation C. $1,500 per violation D. $2,500 per violation
$1,000 per violation
A section of land sold for $1 million. What was the price per acre? A. $22.95 B. $22,960 C. $1,562.50 D. $15,625
$1,562.50
James is selling his home. He needs to pay off a $96,000 first mortgage, a $12,000 second mortgage, and wants $10,000 cash in hand for himself. If his closing costs are $3,100 and he contracts to pay a 7% commission, how much must he sell the property for? Round your answer up to the nearest dollar. A. $118,877 B. $129,577 C. $130,216 D. $233,723
$130,216
An appraiser has determined that the replacement cost for a structure is $127,800. What would be the final estimate of value using the cost approach if deterioration is estimated as $19,170 and the site value is estimated as $25,000? A. $83,630 B. $96,130 C. $133,630 D. $171,970
$133,630
Joe's Arizona City home has a market value of 150,000. What is Joe's assessed value? A. $15,000 B. $22,500 C. $27,000 D. $150,000
$15,000
Under the terms of its lease, Arlington Cleaners pays a base rent of $1,100 every month and 6% of annual gross sales in excess of $99,000. If gross sales are $134,000, what is the total annual rent? A. $13,992 B. $15,300 C. $18,400 d. $22,320
$15,300
What is the value of a property if the annual gross income is $25,000 and the annual gross rent multiplier is 6? A. $75,000 B. $125,000 C. $150,000 D. $180,000
$150,000
A seller wants to net $130,500 after paying an 8% commission and after paying $11,000 for closing costs. What must the minimum sales price be? A. $151,940 B. $152,820 C. $152,847.82 D. $153,804.35
$153,804.35
The Browns bought a tract of farmland described as the W 1/2 of the N 1/2 of the SE 1/4 of section 10. A total of $640,000 was paid for the land. What was the cost per acre? A. $8,000 per acres B. $10,000 per acre C. $16,000 per acre D. $32,000 per acre
$16,000 per acre
Two properties were purchased together for $364,600. One property was 12% higher than the other. What was the price of the less expensive proeprty? A. $160,424 B. $171,981 C. $192,619 D. $193,936
$171,981
An investment pays 11%. If the monthly return check is $165, what amount is invested? A. $15,000 B. $18,000 C. $19,800 D. $21,780
$18,000
A house costs $100,000. The buyer is making a down payment of $32,000 and getting a $68,000 loan. If there are 4 points, how much money will be paid out of the closing for the points? A. $400 B. $1,280 C. $2,720 D. $4,000
$2,720
A broker is managing a property which has a 20 year lease. His commission is to be 5% of the rent the first year, 2% for the next four years, 1 1/2% the next ten years, and 1% for the remainder of the lease. If the monthly income is $6,500, how much total commission will the managing broker be paid? A. $24,570 B. $24,960 C. $25,740 D. $26,130
$25,740
A real estate sale was closed on March 21. The assessed value of the property is $72,500 and the tax rate is $1.75 per $100 of assessed value. What is the proper entry on the seller's settlement statement if the buyer owns day of closing and we are using a calendar year? A. $278.08 debit B. $278.08 credit C. $274.60 debit D. $274.60 credit
$274.60 debit
Joan buys a house for $150,000. She makes a $30,000 down payment and pays three discount points. what is the total cost of the discount points? A. $1,500 B. $3,000 C. $3,600 D. $4,500
$3,000
Sunland Bank is willing to make a loan of $77,500 at 9% interest, but Tom is paying 4 discount points. How much will these discount points cost Tom? A. $1,937 B. $2,152 C. $3,100 D. $6,696
$3,100
Bob is borrowing $60,000. He's paying 6 points to bring the interest rate down 3/4% to 9 1/2 %. How much money will Bob have to pay the lender? A. $1,000 B. $3,600 C. $5,700 D. $6,000
$3,600
The commission rate charged by a real estate company is 6% of the selling price. The company's salesperson receives 60% of the commission. the property sold for $110,000. How much commission was received by the salesperson? A. $2,640 B. $3,300 C. $3,960 D. $6,600
$3,960
Agent Sal did not disclose known structural issues with a house she sold, and the buyer sued. The buyer won the case and had to file to recover the $70,000 judgement against Sal from the Real Estate Recovery Fund. What is the maximum that could be paid out for this transaction? A. $25,000 B. $30,000 C. $60,000 D. $70,000
$30,000
What is the maximum amount of money which someone may recover from the Real Estate Recovery Fund per transaction? A. $10,000 B. $15,000 C. $30,000 D. $90,000
$30,000
A 1.75 acre lot sells for 40 cents per square foot. What is the selling price? A. $17,424 B. $21,780 C. $30,492 D. $76,230
$30,492
A man purchased an apartment building containing eight apartments for $200,000. Expenses are $10,500 per year. How much must he collect per month from each apartment to realize a 10% return on the investment after taxes and expenses? A. $197.39 B. $219.27 C. $208.33 D. $317.71
$317.71
You sell two lots. The small lot was $15,000. The other lot cost 50% more. What was the total sales price? A. $22,500 B. $37,500 C. $45,000 D. $48,750
$37,500
A village determines its tax budget for the next year is $900,000. The assessed value of all the property in the village is determined to be $25,000,000. Harvey's home has a market value of $110,000. What is his tax bill? A. $2,970 B. $396 C. $4,752 D. $7,128
$396
Ed is appraising a 60 year old duplex. He estimates that such a structure should have an economic life of 100 years, but its condition is good, so he puts the effective age at 40. He determines the replacement cost for such a structure is $460,000 and the value of the site is $120,000. Using the cost approach formula, what is the most likely opinion of value? A. $276,400 B. $321,600 C. $304,000 D. $396,000
$396,000
Jim is getting a loan for $100,000 with an interest rate of 4%. Jim wants to buy down his interest rate to be 3.5%. How much money does he have to pay the lender to accomplish his goal? A. $2,000 B. $3,500 C. $4,000 D. $5,000
$4,000
An apartment complex has a net semi-monthly income of $14,000. The cap rate is 8%. What is the value of the apartment complex? A. $2,100,000 B. $2,380,950 C. $2,688,000 D. $4,200,000
$4,200,000
An appraiser determines that the value of the site is $118,000. She decides it would cost $322,000 to replace the building. She further decides that the building is exhibiting $30,000 of depreciation. What is her overall opinion of value? A. $234,000 B. $385,800 C. $410,000 D. $470,000
$410,000
Joe's dad invested money for him years ago, and every year Joe receives $2,940 return. He has always wondered how much was invested and just found out it was paying 7%. What was invested? A. $20,580 B. $35,000 C. $42,000 D. $50,400
$42,000
Edna bought two adjacent lots. Lot A is 50 x 100 and Lot B is 100 x 100. She divided the two lots into three lots and is selling them for $2,800 per front foot. If she sells all three for her asking price, how much will Edna get? A. $280,000 B. $332,500 C. $420,000 D. $560,000
$420,000
Victoria gets a 10-year straight loan for $60,000 at an interest of 4% to finance the purchase of a vacation cottage in the hills. Every month, she pays the lender $200. In 10 years, how much will she owe the lender? A. $0 B. $24,000 C. $60,000 D. $84,000
$60,000 this is an example of balloon payment
What is the minimum balance that must be maintained in the Arizona Real Estate Recovery Fund? A. $500,000 B. $600,000 C. $750,000 D. $1 Million
$600,000
Each unit in a duplex rents for $800 a month. The owner sells the duplex, and escrow closes on March, 20. Using a calendar year, with the buyer owning the day of closing, what is the appropriate way to prorate this on the settlement statement? A. $619.32 credit seller/$619.32 debit buyer B. $619.32 debit seller/$619.32 credit buyer C. $980.59 credit seller/$980.59 debit buyer D. $980.59 debit seller/$980.59 credit buyer
$619.32 debit seller/$619.32 credit buyer
A young couple receives a monthly interest check of $337.50 on a trust that is paying 6 1/2%. What is the principal? A. $26,325.00 B. $51,923.07 C. $62,307.69 D. $78,000.00
$62,307.69
Mr. Dunlap wants to buy a parcel of land measuring 1,935 feet x 1,800 feet. If neighboring land has recently sold for $800 per acre, how much should Mr. Dunlap expect to pay? A. $60,000 B. $60,800 C. $64,000 D. $65,600
$64,000
A farmer owns 168 acres of land. One-third of the land was planted in corn, one-third was left unplowed, and one-fourth the remaining was sold at $500 per acre. How much did the farmer receive for the land sold? A. $7,000 B. $10,500 C. $28,000 D. $35,000
$7,000
A 3.45-acre lot sells for 50 cents per square foot. What is the selling price? A. $37570 B. $75,141 D. $76,230 C. $78,712
$75,141
Calculate the total commission owed on the sale of a property. The commission rate is 6% on the first $50,000 of the sales price and 5% on the remainder of the sales price. The property sold for $150,000. A. $7,500 B. $8,000 C. $8,500 D. $9,000
$8,000
Mr. Black receives a monthly interest payment of 440 from his saving account, which is paying 6% interest. How much does Mr. Black have in his savings account? A. $2,880 B. $6,666 C. $8,000 D. $12,500
$8,000
Briana's investment property has an income of $728 each month. Her accountant tells her that her return rate is 9.85%. what is the value her property? A. $71,708 B. $86,050 C. $88,690 D. $95,965
$88,690
Kelly's gross stable monthly income is $3,500. What is the maximum monthly mortgage payment (PITI) she would qualify for using a front-end qualifying ration of 28%? A. $875 B. $980 C. $1,020 D. $1,750
$980
Jim owns a parcel of property that is 50 feet wide by 150 feet deep. How many acres does Jim own? A. .13 acres B. .16 acres C. .17 acres D. .32 acres
.17
Brokers are required to keep copies of rejected offers for a period of A. 1 year B. 3 years C. 5 years D. 10 years
1 year
If a property is located in the 100-year floodplain, it has a ______ chance of being flooded in any given year A. .001% B. .1% C. 1% D. 10%
1%
Begin at the NE corner of section 4 and travel in a straight line to the SW corner of section 8, then travel 2 miles east, then back to POB. This is how many acres? A. 960 B. 1,020 C. 1,120 D. 1,280
1,280
How many acres are there in the NE 1/4 of the NE 1/4 of the NE 1/4 of section 16? A. 10 acres B. 20 acres C. 40 acres D. 80 acres
10 acres
Buyers are generally allowed how much time to conduct a lead-paint investigation on a property? A. 5 days B. 10 days C. 15 days D 20 days
10 days
Buyers are generally allowed how much time to conduct a lead-paint investigation on a property? A. 5 days B. 10 days C. 15 days D. 20 days
10 days
If a dwelling is damaged or destroyed by fire how many days must a tenant give the landlord to terminate the rental agreement? A. 5 days B. 7 days C. 10 days D. 14 days
10 days
Kelly is making an offer to buy Stu's home in Dusty Acres, a community of 45 houses with a homeowners association. She is entitled to receive copies of the association bylaws and CC&R's within _______ of Stu accepting her offer A. 2 days B. 5 days C. 10 days D. 12 days
10 days
Ethel lives in a house on the lot behind Terry's property, driving across Terry's vacant lot to get to the road without an easement. When Terry finally builds, she puts a fence all around her property, blocking Ethel from the road. To claim easement by prescription, Ethel would need to have crossed Terry's property for at least A. 5 years B. 10 years C. 15 years D. 20 years
10 years
How many years after a consumer declares chapter 7 bankruptcy can he expect to see that on his credit report? A. 3 years B. 7 years C. 10 years D. 14 years
10 years
What is the assessment ratio for residential investment property? A. 10% B. 12% C. 15% D. 18%
10%
What is the tax assessment rate applied to owner occupied residential property in Arizona? A. 10% B. 12% C. 15% D. 18%
10%
Investor Tony buys a rental house for $120,000. It rents for $1,200 a month, assuming no vacancy. It has annual operating costs of $1,800. What is his capitalization rate on this property? A. 8.3% B. 9.5% C. 10.5% D. 11.2%
10.5%
If you owned a duplex, which is valued at $120,000 with a combined rent of $950 per month, what is the annual gross rent multiplier? A. 1.9 GRM B. 9.5 GRM C. 10.53 GRM D. 15.83 GRM
10.53 GRM
At close of escrow, which of the following forms must be filed with the IRS? A. 1099 INT B. K-1 C. 1099 S D. W-2
1099 S
According to the Arizona Landlord Tenant Act, once a lease terminates and a tenant demands the return of the security deposit, the landlord must return the security deposit and give full accounting in how many days? A. 14 calendar days B. 7 calendar days C. 7 business days D. 14 business days
14 business days
When tenant Tom moved out of Hilltop Apartments, he left the unit in poor condition. Landlord Luke will not be returning Tom's full security deposit. Luke must provide Tom with an itemized statement regarding the security deposit within A. one week B. 14 business days C. 20 business days D. one month
14 business days
A consumer files a complaint against a real estate licensee, and the commission initiates an investigation. How many days does the licensee have to respond to the allegations? A. 7 days B. 10 days C. 14 days D. 30 days
14 days
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
14 days
If a dwelling is damaged or destroyed by fire how many days must a tenant give the landlord to terminate the rental agreement? A. 5 days B. 7 days C. 10 days D. 14 days
14 days
A fully amortized fixed rate mortgage in the amount of $50,000 at a rate of 12% has been granted for a period of 30 years, with monthly payments due of $514.31. What is the principal portion of the first monthly payment? A. $14.31 B. $17.14 C. $19.45 D. $61.72
14.31
If Bob pays $695.20 for P&I every month for 30 years on his $110,000 fully amortized fixed rate loan, how much interest will he pay over the life of the loan? A. $20,856 B. $110,000 C. $140,272 D. $250,272
140,272
What is the assessment ratio for raw land? A. 10% B. 12% C. 15% D. 18%
15%
John loans Barbara $7500. Barbara is to make monthly payments of $100 plus interest at 9% on the balance due. What is the first month's payment? A. $146.85 B. $149.50 C. $150.25 D. $156.25
150.25
John loans Barbara $7500. Barbara is to make monthly payments of $100 plus interest at 9% on the balance due. What is the first month's payment? A. $155.08 B. $155.50 C. $156.25 D. $166.
155.50
John loans Barbara $7500. Barbara is to make monthly payments of $100 plus interest at 9% on the balance due. What is the first month's payment? A. $109. B. $156.25 C. $162.50 D. $167.5
156.25
How many townships are in a 24 mile square? A. 8 B. 12 C. 16 D. 24
16
How many townships are there in a government check? A. 6 B. 16 C. 24 D. 36
16
When an Arizona property taxes are in a delinquent status, the interest penalty assessed is __________ per annum until paid. A. 12% B. 15% C. 16% D. 18%
16%
Mark took out a 30 year fully amortized fixed rate loan for $165,000. At 4.75% interest, his monthly payment of principal and interest is $860.72. what is the balance of his loan after making his second payment? A. $164,139.28 B. $164,346.87 C. $164,583.99 d. $164,792.41
164,583.99
How many townships are in a government check? A. 16 B. 24 C. 25 D. 36
16`
What is the legal age of capacity to contract in Arizona? A. 14 B. 16 C. 18 D. 21
18
A licensee is required to disclose the presence of lead based paint if the property was built before: A. 1988 B. 1978 C. 1989 D. 1992
1978
A township labeled t25, R3W would be found A. 2 ranges south of a baseline and 3 tiers west of a principal meridian B. 2 ranges south of a principal meridian and 3 tiers west of a baseline C. 2 tiers south of a baseline and 3 ranges west of a principal meridian D. 2 tiers south of a principal meridian and 3 ranges west of a baseline
2 tiers south of a baseline and 3 ranges west of a principal meridian
Jan purchased a parcel of land that measures 75 feet wide by 50 feet deep. She plans to construct a fence that will cost her $5.43 per linear foot. What is the perimeter of Jan's property? A. 125 linear feet B. 175 linear feet C. 250 linear feet D. 275 linear feet
250 linear feet
Residential rental property can be depreciated over _______ years A. 15 B. 27 1/2 C. 31 1/2 D. 39
27 1/2
How many square feet are in one acre? A. 36,640 B. 43,560 C. 52,800 D. 64,000
43,560
How many square feet are there in one acre? a. 43,560 B. 45,360 C. 45,630 D. 46,350
43,560
Brock is selling an apartment building and wants to do a like kind exchange for an office building. What is his deadline for identifying the office property he wants to purchase? A. 30 days B. 45 days C. 120 days D. 180 days
45 days
Joanna paid $3,500 for one lot and $2,500 for an adjoining lot. She sold the now larger lot for $8,880. What was her percent of profit? A. 6.75% B. 14.8% C. 17.2% D. 48%
48%
If the landlord fails to comply with the rental agreement in matters affecting health and safety, the tenant may terminate the lease if the breach is not corrected in how many days? A. 3 days B. 5 days C. 10 days D. 14 days
5 days
If the landlord fails to comply with the rental agreement, the tenant may terminate the lease if the breach is NOT corrected in how many days: A. 3 days B. 5 days C. 10 days D. 14 days
5 days
How many times in 10 years could a single person sell their personal home and receive, tax-free, a gain of $250,000? A. 1 time B. 2 times C. 5 times D. not available to single taxpayers
5 times
Brokers are required to keep copies of contracts for a period of A. 1 year B. 3 years C. 5 years D. 10 years
5 years
If a buyer wants to file a claim against the Recovery Fund, she must do so within______ of the incident. A. 1 year B. 2 years C. 3 years D. 5 years
5 years
Calculate the rate of commission. The commission amount was $6,000 and the sales price was $120,000. A. 3.6% B. 5% C. 6.5% D. 20%
5%
The loan amount (principal) is $50,000 and the interest rate is 11%. What is the annual interest? A. $500 B. $550 C. $1,100 D. $5,500
5,500
Jim buys a four-unit apartment building. He put 10% down on a purchase price of $500,000. Based on his financing terms, the monthly principal and interest is approximately $2,700. The NOI is $35,000 annually. What is the cash-on-cash return? A. 4.4% B. 5.2% C. 6.5% D. 8.8%
5.2%
Jim owns a parcel of property that is 50 feet wide by 150 feet deep. Jim is researching the cost of fencing his property and finds the cost of a simple fence to be $3.57 per linear foot. Additionally, he's looking at the cost of putting curbing along the front of the property at a cost of $11 per front foot. What is the dimension of the front footage of the property? A. 50 feet B. 100 feet C. 150 feet D. 200 feet
50 feet
Mr. Jones wants to divide an acre parcel into four equal lots, each with a depth of 200 feet. What would be the front width of each lot? A. 52.17 ft B. 54.45 ft C. 57.03 ft D. 108.9 ft
54.45 ft
A developer has a property that measures 2,480 x 7,130. How many one-half acre parcels can he create after deducting 15% for parks, 10% for playgrounds and 7% for streets? A. 276 half-acre lots B. 552 half-acre lots C. 608 half-acre lots D. 690 half-acre lots
552 half-acre lots
The distance between township tiers is A. 4 miles B. 6 miles C. 24 miles D. 36 miles
6 miles
A mechanic's lien, once filed, is a valid lien on the subject property for how long? A. 990 days B. 60 days C. 6 months D. 1 year
6 months
A septic tank inspection report is valid for A. 6 months B. 1 month C. 3 months D. 12 months
6 months
Bob is borrowing $60,000. The market interest rate is 10 1/4%. Bob wants to reduce the interest rate to 9 1/2%. How many points will Bob have to pay? A. 3/4 of a point B. 3 points C. 4 points D. 6 points
6 points
Advisory Board members serve a staggered term of A. 3 years B. 4 years C. 5 years D. 6 years
6 years
Broker Jeff's JT Realty earns $18,785 commission on a $289,000 sale. What was the commission rate? A. 5.75% B. 6% C. 6.5% D. 7%
6.5%
The S 1/2 of the E 1/2 of the SE 1/4 of section 4, and the W 1/2 of the SW 1/4 of the NW 1/4 of section 5 contains how many acres? A. 20 acres B. 40 acres C. 60 acres D. 80 acres
60 acres
Sam owns a parcel of property that is 105 feet wide by 201 feet deep. Sam finds out that the homeowners in this development have approved sidewalks to be constructed at a cost to each homeowner of $7.50 per front foot.What is the perimeter of Sam's property? A. 306 linear feet B. 527 linear feet C. 612 linear feet D. 711 linear feet
612 linear feet
Families with children may be denied occupancy of rental units if all units in the building were reserved exclusively for those age _________ or older. A. 55 B. 60 C. 62 D. 65
62
If a property has the right to exclude families with children, which of the following parties would be allowed to reside on the property? A. 62-year-old retired doctor B. 52-year-old employed lawyer C. 50-year-old nurse D. 54-year-old minister
62-year-old retired doctor
How many acres are in each section of a township? A. 120 B. 240 C. 360 D. 640
640
How many acres are in each section? A. 36 acres B. 40 acres C. 360 acres D. 640 acres
640 acres
When a person buys a timeshare, his right to rescind is A. 3 calendar days B. 7 calendar days C. 7 business days D. 3 business days
7 calendar days
Jim owns a parcel of property that is 50 feet wide by 150 feet deep. Jim is researching the cost of laying sod on his property and finds the cost of sod to be 69 cents per square foot. How many square feed is Jim's lot? A. 400 sf B. 750 sf C. 4,000 sf D. 7,500 sf
7,500 sf
Mrs. Bee receives monthly interest payments of $1,020 from her bank. The current balance in her savings account is $163,200. What rate of interest is the bank paying her? A. 6.25% B. 7.5% C. 13.3% D. 16%
7.5%
Roger earns $6,337.50 this year on his investment of $84,500. What is Roger's rate of return? A. 6.25% B. 7.5% C. 9% D. 13.3%
7.5%
Jenny paid $245,000 for a small office building. Her net operating income is $35,750 and her cash flow is $18,650. What is her cash on cash reture? A. 7.0% B. 7.6% C. 8.9% D. 14.6%
7.6%
Jan purchased a parcel of land that measures 75 feet wide by 50 feet deep. She plans to construct a fence that will cost her $5.43 per linear foot. What is the frontage dimension of Jan's property? A. 50 feet B. 61 feet C. 75 feet D. 125 feet
75 feet
In order to avoid paying income tax, a REIT must earn _______% of its income from real estate and distribute ______% of its taxable income to its beneficiaries. A. 75/90 B. 85/90 C. 50/75 D. 70/90
75/90
By law, lenders must cancel PMI when the loan-to-value reaches what percent of the property's original value? A. 80% B. 78% C. 75% D. 72%
78%
An apartment sold for $240,000 and the gross rental income per year is $30,000. What is the annual gross rent multiplier? A. 8 B. 12.5 C. 72 D. 96
8
An investor buys a duplex for $208,000. Each unit rents for $950 a month. the property has a 5% vacancy and annual operating costs of $4,200. What is capitalization rate on this property? A. 8.4% B. 8.6% C. 10.9% D. 11.9%
8.4%
How many acres are there in the E1/2 of the NW 1/4 of section 23? A. 20 acres B. 40 acres C. 80 acres D. 160 acres
80 acres
The buyer has a $32,300 cash down payment. The sales price of the property is $161,500, so the buyer is looking at a mortgage of $129,200. What if the property appraisal came in, instead, at $159,500? What is the loan to value ration for this transaction? A. 78% B. 80% C. 81% D. 90%
81%
Homeowner Harry is getting ready to install an in-ground swimming pool. What number must he call to ensure that he will not be interfering with any buried utility lines? A. 411 B. 711 C. 811 D. 911
811
An apartment sold for $105,000 and the monthly gross rental income was $1,250. What is the monthly gross rent multiplier? A. 7 B. 14.3 C. 84 D. 131
84
Jake defaulted on this loan from ABC bank, and the trustee recorded a notice of election to sell. Jake has __________ to bring his loan current, pay any fees, and stop the foreclosure process. A. 30 Days B. 60 Days C. 90 Days D. 120 Days
90 days
Chris has an easement to harvest the final soybean crop on the land he sold. Just before harvest, Chris inherits $8 Million. He calls the new owner and tells her that he is moving to St. Croix and that she can do whatever she wants with the soybeans. What's the most likely way his easement will be terminated? A. abandonment B. destruction C. merger D. release
abandonment
A buyer pays 20% down and obtains a real estate mortgage. The buyer makes no further payments. What clause would the lender now exercise? A. alienation B. habendum C. novation D. acceleration
acceleration
What clause gives a lender the right to declare the entire loan balance due immediately because of borrower default or for violation of other contract provisions? A. acceleration clause B. alienation clause C. defeasance clause D. repayment clause
acceleration clause
A licensed broker employed by a principal may not A. advertise the listed property B. accept or reject offers of purchase C. negotiate offers and acceptance D. show property to prospective purchasers
accept or reject offers of purchase
Which situation is LEAST LIKELY to represent a conflict of interest? A. alex is a disclosed dual agent, representing both buyer and seller B. Kaye is a buyer's agent whose commission is based on the sales price of the home C. Paul is showing his buyer client a house on which he had a prior listing D. Susan is negotiating the purchase of a home for her client, who is also her sister
alex is a disclosed dual agent, representing both buyer and seller
Ivy still owes $40,000 on her house, but she decides to give a wraparound mortgage to buyer Pete for $120,000. If Ivy's loan with the bank has an ______________________, she might be required to repay the entire $40,000 when she sells the house to Pete. A. acceleration clause B. alienation clause C. defeasance clause D. power of sale clause
alienation clause
Which of the following is not a feature of an FHA loan? A. assumable B. or more clause C. budget loan D. alienation clause
alienation clause
Which of these would most likely be considered a cloud in the chain of title? A. an easement that was not recorded B. a judgement lien that was not recorded C. an undisclosed owner D. an unrecorded second mortgage
an undisclosed owner
Which would not be part of a typical property management agreement? A. beginning and ending date B. frequency of management reports C. cancellation clause D. annual budget
annual budget
All of the following would be considered appurtenant in a real estate transaction except A. mineral rights B. property improvements C. annual crops D. the bundle of right
annual crops
To find a tax jurisdiction's tax rate, it's necessary to calculate the _________ value of all property in the tax district. A. appraised value B. assessed value C. market value D. replacement value
assessed value
What is the purpose of an affidavit of value? A. assist the country assessor in determining property values B. comply with IRS requirements C. assist in determining capital gains tax D. assist the state treasurer in sales tax revenue
assist the country assessor in determining property values
Who must provide the buyer with the homeowner's association rules for a complex having more than 50 units: A. seller B. association C. escrow D. broker
association
Under Regulation Z, which advertisement would require full disclosure of credit terms? A. Affordable rates available B. assume loan at 8% interest C. low down payment D. terms to please everyone
assume loan at 8% interest
Haverty Corporation is developing a new subdivision that is located in one of the state's AMAs. Haverty must demonstrate what level of water supply? A. acceptable B. adequate C. appropriate D. assured
assured
A person having authority under a power of attorney is called: A. principal B. grantor C. attorney in fact D. trustee
attorney in fact
Who can sign a document on your behalf? A. attorney-in-fact B. power of attorney C. attorney at law D. your spouse
attorney-in-fact
A listing agreement is a mutual agreement between a broker and a principal and is considered an A. contract of sale B. agreement of sale C. purchase contract D. authorization to sell
authorization to sell
What would Most Likely cause a mold hazard? A. backed up sewer B. well-ventilated area C. decaying rock D. insufficient insulation
backed up sewer
What would most likely cause a mold hazard? A. backed up sewer B. well-ventilated area C. decaying rock D. insufficient insulation
backed up sewer
What would Most Likely cause a mold hazard? A. backup sewer B. well-ventilated area C. decaying rock D. insufficent insulation
backup sewer
Which is LEAST LIKELY to be an example of a common area in a condominium? A. balcony B. land C. laundromat D. swimming pool
balcony
Ad Valorem refers to a tax that is A. based on the assessed value of property B. charged by the county to transfer a deed when property sells. C. a percentage of a property's sale price D. a percentage of someone's income
based on the assessed value of the property
Brass markers posted to documents elevation are called A. benchmarks B. datum C. paradigms D. plats
benchmarks
The funds for a loan secured by a trust deed are supplied by the A. trustor B. mortgagor C. beneficiary D. trustee
beneficiary
The funds for a loan secured by a trust deed are supplied by the: A. trustor B. mortgagor C. beneficiary D. trustee
beneficiary
Who authorizes the use of the power of sale in a deed of trust? A. trustor B. court C. beneficiary D. trustee
beneficiary
Who authorizes the use of the power of sale in a deed of trust? A. trustor B. court C. beneficiary D. trustee
beneficiary
A run-down house in a good neighborhood A. benefits from the principle of regression B. is hurt by the principle of regression C. benefits from the principle of progression D. is hurt by the principle of progression
benefits from the principle of progression
Mary signs a one-year lease for landlord Sue's house. After six months of paying rent, this lease could be best described as A. bilateral, executory B. express, executed C. implied, bilateral D. unilateral, executed
bilateral, executory
Brett bought a farm, and two tractors were included in the sale. What is required at the settlement to transfer ownership of those tractors? A. bill of sale B. Deed C. purchase agreement D. sales contract`
bill of sale
What is the document that transfers title of personal property from one person to the other at closing? A. bill of sale B. deed C. sales contract D. settlement statement
bill of sale
A mortgage that includes more than one parcel of land is called a A. blanket mortgage B. package mortgage C. purchase money mortgage D. wraparound mortgage
blanket mortgage
Property that is not like-kind but part of a like-kind exchange is called A. adjusted basis B. boot C. capital asset D. qualified intermediary
boot
Which of the following could be borrowed in a tax-deferred exchange? A. income B. like for like C. debt relief D. boot
boot
A defeasance clause is in a mortgage for the protection of the A. lender B. borrower C. seller D. broker
borrower
A defeasance clause is in a mortgage for the protection of the A. lender B. borrower C. seller D. broker
borrower
The mortgage insurance premium required for an FHA-insured loan would least likely benefit which of the following? A. borrower B. lender C. FHA D. HUD
borrower
When a lender reviews a FICO score for a borrower it tells the lender if the A. borrower has sufficient credit B. loan will be a mortgage or deed of trust C. adjustable rate loan will have a cap D. loan will have a prepayment penalty
borrower has sufficient credit
When a lender reviews a FICO score for a borrower it tells the lender if: A. borrower has sufficient credit B. loan will be a mortgage or a deed of trust C. adjustable rate loan will have a cap D. loan will have a prepayment penalty
borrower has sufficient credit
A blanket mortgage A. usually has a release clause B. covers more than one parcel of real estate C. covers both personal and real property D. both a and b
both a and b
Earnest money serves what purpose? A. to show the buyer is sincere in his intention to complete the transaction B. to protect the seller's interest in case the buyer defaults C. both a and b D. neither a nor b
both a and b
Broker Allison presents an offer from buyer client Bob to listing agent Abe, who represents seller Shelley. After evaluating the offer, Shelley decides to reject it. Bob is not interested in presenting a counteroffer. Allison and Abe's brokerages are required to keep Bob's offer for how long? A. brokerages must maintain rejected offers for one year B. brokerages must maintain rejected offers for three years C. brokerages must maintain rejected offers for five years D. brokerages are not required to keep rejected offers, only completed transactions
brokerages must maintain rejected offers for one year
What does an escrow company do? A. process loan forms B. authorize commission payments C. offer title insurance D. calculate prorations
calculate prorations
What does an escrow company do? A. process loan forms B. authorize commission payments C. offer title insurance D. calculate prorations
calculate prorations
A type of ownership that is considered a long-term lease is best described as A. townhouse B. condominium C. patio home D. cooperative
cooperative
Sara's house is on the market for $180,000. Devin offers to buy it for $170,000. Sara is eager to sell, but wants to get at least $175,000, so she notes that in the agreement of sale and returns it to Devin. This is an example of an A. acceptance B. consideration C. counteroffer D. revocation
counteroffer
Once recorded, the buyer will receive the deed to the property from the A. title company B. escrow company C. county recorder D. county treasurer
county recorder
Once recorded, the buyer will receive the deed to the property from: A. title company B. escrow company C. county recorder D. county treasurer
county recorder
On a closing statement, the earnest money paid by the buyer would be which of the following? A. debit buyer, credit seller B. credit buyer, debit seller C. credit buyer only D. credit seller only
credit buyer only
The amount of money that the buyer has to bring escrow to close a transaction would show on a closing statement in the following manner; A. debit seller, credit buyer B. credit seller, debit buyer C. debit buyer only D. credit buyer only
credit buyer only
On a closing statement, the amount of the sales price would be A. debit seller, credit buyer B. debit buyer, credit seller C. debit buyer only D. credit seller only
debit buyer, credit seller
You are closing an escrow at the end of the month on a 4 plex. The rents are $500 per month per apartment. Each unit has a security deposit of $200 held by the landlord. Which of the following is True? A. credit seller $800 B. debit seller $800 C. debit buyer $800 D. credit buyer $2000
debit seller $800
You are closing an escrow at the end of the month on a 4-plex. The rents are $500 per month per apartment. Each unit has a security deposit of $200 held by the landlord. Which of the following is True? A. credit seller $800 B. debit seller $800 C. debit buyer $800 D. credit buyer $2000
debit seller $800
The lender will require a two-month reserve for insurance at closing. The insurance premium for a one-year policy has been paid outside of closing. The entry on the closing statement is A. debit the seller B. credit the buyer C. debit the buyer D. there is no entry
debit the buyer
The interest pre-paid on the closing statement with a new loan on the property by the buyer is A. credit to the buyer B. credit to the seller C. debit to the buyer D. debit to the seller
debit to the buyer
Real property title may be transferred by all of the following except A. decree from a municipality B. trustee deed of conveyance C. sheriff's deed of conveyance D. special warranty deed
decree from a municipality
A bank notifies a homeowner that she is delinquent on her mortgage and threatens foreclosure. The homeowner offers to give the property to the bank if the bank will NOT file the foreclosure suit against her. This is known as A. deed in lieu of foreclosure B. deed in trust C. deficiency judgement D. quitclaim deed
deed in lieu of foreclosure
A fee simple property owner deeds title to the property to a church group as long as they run a battered women's shelter on the property. The type of ownership interest held by the church group is A. fee simple B. life estate C. defeasible fee D. homestead
defeasible fee
After a mortgage foreclosure, if the sale amount was insufficient to cover the debt, the lender may ask for: A. deficiency judgement B. assessment C. assignment of rents D deed in lieu of foreclosure
deficiency judgement
After a mortgage has been foreclosed, if the sale amount was insufficient to cover the debt, the lender may ask for a A. deficiency judgement B. assessement C. assignment of rents D. deed in lieu of foreclosures
deficiency judgement
After a mortgage has been foreclosed, if the sale amount was insufficient to cover the debt, the lender may ask for an A. deficiency judgement B. assessment C. assignment of rents D. deed in lieu of foreclosure
deficiency judgement
When the tenant is paying less in rent than what is currently reasonable given the market, this is known as A. contract rent B. deficit rent C. economic rent D. excess rent
deficit rent
The first step of the appraisal process is to A. collect data B. define the appraisal C. define the data sources D. determine highest and best use
define the appraisal
title passed once the deed is A. acknowledged and recorded B. delivered and accepted C. granted and transferred D. signed and delivered
delivered and accepted
In a typical listing agreement, the agent's consideration is A. delivering a ready and willing buyer B. due diligence in marketing the property for sale C. placing the listing in the MLS D. the promise to find a buyer
delivering a ready and willing buyer
The individual person who is responsible for the activities that occur within an Arizona real estate brokerage is known as the A. delegated broker B. designated broker C. employing broker D. managing broker
designated broker
The VA funding fee would change based on A. value of home B. details of service C. amount of loan insurance D. military rank
details of service
The VA funding fee would change based on the A. value of the home B. details of service C. amount of loan insurance D. military rank
details of service
What is the first step in the process of calculating a tax bill? A. calculate the assessed value of all property in the tax district B. determine the assessed value of the property C. determine the tax rate D. prepare a budget for the tax district.
determine the assessed value of the property
The total amount of the VA-Guaranteed loan entitlement is A. the amount of the loan B. 10% of the loan C. 100% of the loan D. determined by Congress
determined by Congress
The total amount of the VA guaranteed loan entitlement is: a. the amount of the loan b. 10% of the loan c. 100% of the loan d. determined by Congress
determined by congress
The maximum VA loan limit is A. set by VA B. 4 times the guaranty C. determined by the lender D. 60% of eligibility
determined by the lender
The maximum VA loan limit is A. set by VA B. 4 times the guaranty C. determined by the lender D. 60% of eligibilty
determined by the lender
If a married couple in Arizona want to purchase a primary residence as community property with the right of survivorship, they must use a A. descent deed B. disclaimer deed C. quitclaim deed D. Severalty deed
disclaimer deed
A home inspector misses a large crack in the foundation of the house. The seller tells the agent not to tell the buyer. What should the agent do? A. keep it confidential B. disclose the information C. obey the seller's instructions D. let the buyer beware
disclose the information
If a listing agent is aware of an insect infestation in a home, she should A. advise the homeowner to paint the floorboard to disguise the damage B. disclose the information to potential buyers C. keep quiet until the transaction is closed D. put out bait and not mention the problem to anyone
disclose the information to potential buyers
In some states, the legal right of a landlord to seize the tenant's belongings for rents in arrears is called A. forbearance B. distraint C. constructive eviction D. actual eviction
distraint
A right of way over Parcel A to Parcel B identifies Parcel B as the A. servient tenement B. dominant tenement C. appurtenant estate D. encroachment estate
dominant tenement
Jon is granted an easement by necessity across Eric's property to get to the road. Jon's property is the A. dominant tenant B. dominant tenement C. servient tenant D. servient tenement
dominant tenement
What is not an advantage of a corporation? A. limited liability B. officers appointed by a board of directors C. double taxation D. living in perpetuity
double taxation
John and Maryare getting a divorce. John tells mary that unless she agrees to sell their home immediately and split the proceeds, he will institute legal proceedings to gain custody of the children. If she agrees, the sales contract may then be voidable because of A. duress B. fraud C. legality of object D. mental incapacity
duress
The CAN-SPAM Act applies to Unsolicited A. bulk mail B. telephone calls C. e-mails D. faxes
e-mails
You buy a house near the beach. After you move in, you and your neighbor sign a written agreement that allows you to cross your neighbor's property to get to the beach. The agreement states that if you move or die the permission is terminated. What is this an example of? A. appurtenant easement B. easement in gross C. voluntary lien D. life estate
easement in gross
The period of time that an improvement contributes value to the land is considered to be its A. economic life B. highest and best use C. effective age D. salvage value
economic life
Which of these is Not an example of a police power? A. building codes B. eminent domain C. environmental laws D. zoning
eminent domain
From whom may a salesperson or associate broker accept commission? A. employing broker only b. employing broker or buyer C. employing broker or listing broker D. employing broker or seller
employing broker only
The process of applying a sealant to a hazardous material such as asbestos is known as A. alienation B. encapsulation C. enclosure D. estrangement
encapsulation
A borrower is required to put 10% down for the purchase of a property. The 10% down would be considered: A. equity B. boot C. tax shelter D. leverage
equity
A hold over tenant would have an A. estate at sufferance B. estate at will C. freehold estate D. remainder estate
estate at sufferance
Your roommate from college moves to your town. You let her move in with you while she is looking for a job. What type of leasehold estate is this most likely to be? A. estate at sufferance B. estate at will C. estate for years D. periodic estate
estate at will
Which do you think CANNOT define a neighborhood's boundaries? A. physical boundaries B. ethnicity of residents C. income level of residents D. upkeep and maintenance
ethnicity of residents
The buyer in a land contract is in default and will not vacate the property. The seller can initiate a ____________ proceeding. A. bankruptcy B. eviction C. foreclosure D. lis pendens
eviction
You find out that the house you grew up in is for sale. The seller tells you that there's a $5,000 lien on the property that he has no interest in paying, but he'll sell you the house with the lien. The title insurance company will treat that lien as an A. continuance B. covered risk C. encroachment D. exception
exception
A seller list a property with a brokerage, sells it himself, and does not have to pay commission. What kind of listing did the seller sign? A. exclusive right to sell B. exclusive agency C. net listing D. gross listing
exclusive agency
The seller lists her house with New Age Realty. The next day, the seller goes to work and mentions listing her house. A co-worker expresses interest in the listing. Which listing would entitle the broker to a commission if the co-worker makes an acceptable offer to the seller? A. exclusive agency B. exclusive right to sell C. net listing D. open listing
exclusive right to sell
A listing agreement provides for the payment of a commission to the broker even if the owner sells the property without the broker's help. This type of listing agreement is called a A. net listing B. exclusive agency listing C. exclusive right to sell listing D. open listing
exclusive right to sell listing
A contact has been signed, but title has not yet passed. The contract is A. executed B. executory C. recorded D. estopped
executory
A contract which has been properly signed by all parties and contains conditions not yet accomplished is said to be A. executed B. executory C. invalid D. void
executory
Davis has been trying to sell his house for some time, but buyers seem to be turned off by the odor from a nearby chicken farm. This is an example of A. economic depreciation B. external obsolescence C. functional obsolescence D. physical deterioration
external obsolescence
there is a material defect on the property the broker has just listed. the broker does not disclose the defect to the prospective purchaser. what is true? A. the defect is not important because it can't be seen B. Only the seller is required to disclose C. there is no requirement to disclose since the buyer's title insurance would cover the defect D. failure to disclose could give the buyer grounds to sue the parties
failure to disclose could give the buyer grounds to sue the parties
The federal fair housing act amendments act of 1988 prohibits discrimination base on A. age and sex B. disability and religion C. familial status and disability D. family status and age
familial status and disability
Which were added as federally protected classes under the 1988 Fair Housing Amendments? A. age and familial status B. disability and marital status C. familial status and disability D. sexual orientation and age
familial status and disability
The 1988 amendments to the federal fair housing act prohibits discrimination based on A. age and sex B. handicapped and religion C. familial status and handicapped D. familial status and age
familial status and handicapped
Which is the highest form of an estate? A. fee simple B. defeasible fee C. fee conditional D. estate in remainder
fee simple
Julie is preparing to make an offer on Mike's house, and she requests an insurance claims history report so that she can see the number of and type of property loss claims that mike has filed in the past A. two years B. three years C. five years D. seven years
five years
Which of the following does NOT occur in a forbearance? A. work out B. deferment C. moratorium D. foreclosure sale
foreclosure sale
Which of the following does not occur in a forbearance? A. work out B. deferment C. moratorium D. foreclosure sale
foreclosure sale
Every _________ township line above a baseline known as a correction line A. second B. third C. fourth D. sixth
fourth
A broker has what duty to a third party? A. fiduciary B. full disclosure of all material facts C. client relationship D. loyalty
full disclosure of all material facts
A loan in which total payments over the life of the loan pay off the entire balance of principal and interest due at the end of the term is referred to as A. annualized B. compounding C. diminishing D. fully amortized
fully amortized
Which of the following applies to a VA-guaranteed loan? A. funding fee B. MIP C. PMI D. front and back end ratios
funding fee
Which of the following applies to a VA-guaranteed loan? A. funding fee B. MIP C. PMI D. front-and back-end ratios
funding fee
Which example of deterioration would most likely be considered curable? A. basement with collapsing walls B. furnace to small for size of home C. railroad track across the street D. steep, narrow staircase
furnace to small for size of home
Of these, which is LEAST LIKELY to be considered a conditional use in an area zoned as residential? A. cemetary B. gas station C. hospital D. school
gas station
A broker, acting as a property manager, would be what type of agent? A. special B. general C. implied D. ostensible
general
A licensed real estate salesperson is which type of agent to his or her broker? A. general B. special C. universal D. attorney-in-fact
general
A licensed real estate salesperson is which type of agent to his or her broker? A. general B. special C. universal D. attorney in fact
general
The relationship between a broker and their salesperson's is what type of agency? A. general B. special C. ostensible D. fiduciary
general
When considering the authority given to a property manager, which type of agency is property management usually considered to be? A. general agent B. principal agent C. special agent D. universal agent
general agent
If a partnership does not pay its debts, the creditors may collect from the personal assets of A. limited partners B. general partners C. stockholders of an incorporated company D. none of the above
general partners
Which deed guarantees title against all encumbrances occuring during any previous ownership, usually with the phrase "convey and warrant forever"? A. bargain and sale deed B. general warranty deed C. quitclaim deed D. referee's deed
general warranty deed
Tenant Terry is delinquent with her rent, again. Landlord Lois has let is slide before but decides it's time for Terry to move. What is the first step in the eviction procedure for nonpayment of rent? A. file a forcible entry and detainer B. forcibly remove Terry from the property C. give Terry a five-day notice to quit D. give Terry a 10-day notice to quit
give Terry a five-day notice to quit
when conveying property in Arizona, a deed must be signed by the A. grantee B. mortgagor C. grantor D. trustor
grantor
The two designations or classifications of water law in Arizona are A. navigable and non-navigable B. ground and surface C. flowing and stagnant D. none of the above
ground and surface
If an owner improves a property, a licensed contractor is required to be used in all of these situations except if the property A. will be sold within one year B. will be leased within one year C. is owner-occupied for more than one year D. is sold within six months
is owner-occupied for more than one year
Method used to create a legal description for real estate describes the property's boundaries is called A. rectangular survey B. lot and block C. metes and bounds D. plat of survey
metes and bounds
The type of legal description that references fixed monuments and landmarks is A. government survey B. lot and block C. metes and bounds D. rectangular survey
metes and bounds
After a mortgage foreclosure sale, any excess monies would go to the A. trustee B. mortgagee C. mortgagee's attorney D. mortgagor
mortgagor
When getting a loan to finance the purchase of a house, the borrower is known as the A. beneficiary B. mortgagee C. mortgagor D. vendee
mortgagor
Federal Fair Housing Act of 1968 identified which protected class? A. national origin B. marital status C. age D. gender
national origin
when showing a listing, a licensee is asked about the condition of the basement. Without having seen the basement, the licensee says that, to the best of her knowledge, the basement is free of dampness. In fact, the basement leaks steadily whenever it rains. This is most likely and example of A. actual fraud B. bait and switch C. negligence D. no error, since she had never been in the basement
negligence
A jumbo loan is an example of a A. conforming loan B. conventional loan C. nonconforming loan D. no down payment loan
nonconforming loan
The primary difference in buying property subject to the mortgage instead of assumption of the mortgage is in the A. quality of title conveyed B. obligation of the trustee C. obligation of the vendee D. time for foreclosure
obligation of the vendee
In an option, the option binds the A. optionee B. optionor C. broker D. salespers
optionor
In the property owner/property manger relationship, who is the principal? A. manager B. owner C. tenant D. tenant and owner
owner
What would be the preferable way to terminate a listing agreement? A. abandonment B. expiration C. mutual consent D. performance
performance
Which would most likely be a health concern to homeowners living near golf courses? A. noise B. golf balls C. pesticides D. early morning traffic
pesticides
Which is least likely to be a duty required by a property manager? A. fulfill the goals and objectives of the owners B. generate income and manage expenditures for the owners C. physically removing delinquent tenants from the premises D. reduce the property owner's risk
physically removing delinquent tenants from the premises
How can a buyer best be assured of getting his earnest money back if his loan is not approved? A. request the earnest money from the lender B. request the earnest money from the seller C. place a stop payment on the check D. place a contingency clause in the contract
place a contingency clause in the contract
A detailed survey map of a subdivision is called a A. county recorder map B. plat map C. plot map D. topographic map
plat map
Which of the following listings would not be entered into a multiple listing service? A. pocket listing B. entry only listing C. limited service listing D. full service listing
pocket listing
What type of clause allows a trustee to sell property to pay the debt the borrower owes without going through the courts? A. alienation clause B. defeasance clause C. power of sale clause D. subordination clause
power of sale clause
At a local convention of real estate licensees, broker Quinn mentioned that he was going to have to raise his commission rates or close his office. Quinn could be found guilty of A. allocation B. price-fixing C. securities violations D. nothing; he did not violate any rules or laws
price-fixing
To clear the cloud on the title caused by having a different name on the deed used to convey her property to someone else, Margaret can file a A. bargain and sale deed B. limited warranty deed C. quitclaim deed D. referee's deed
quitclaim deed
In a real estate closing, what would the buyer normally pay for? A. deed preparation B. real estate commission C. release of old liens D. recording of new loan
recording of new loan
When a mortgage that was in default has been satisfied, the mortgage has been A. recaptured B. reinstated C. reverted D. redeemed
redeemed
Which of the following would not apply to a deed of trust? A. redemption periods B. option to judicially foreclose C. reinstatement period D. curing the default
redemption period
Which of the following would NOT apply to a deed of trust? A. redemption periods B. option to judicially foreclose C. reinstatement period D. curing the default
redemption periods
A lender refuses to loan or limits loans in a certain minority neighborhood. This action is called A. steering B. blockbusting C. redlining D. territory allocation
redlining
Which action by a property owner would not increase the net operating income? A. cut expenses B. increase occupancy C. raise the rent D. refinancing to a lower interest rate
refinancing to a lower interest rate
When a veteran pays off a VA loan in full, the veteran is entitled to: a. partial reinstatement b. reinstatement of full VA benefits c. Return of MIP paid d. Return of PMI paid
reinstatement of full VA benefits
Margaret provides her landlord with a police report and an order of protection from a court indicating that she is a victim of domestic abuse. She wants to move out of state but still has six month on her lease. What is her landlord's obligation? A. allow her to vacate once she has paid the rent for half the remaining lease term B. release her from the lease within 30 days without penalty C. release her from the lease but retain her security deposit as an early termination fee D. require her to find someone to sublet the unit for the remainder of the lease
release her from the lease within 30 days without penalty
A father owns a house as a fee simple owner and gives his daughter a life estate in the property with a provision that the property will pass to the son after her death. The son has a A. reversion interest B. remainder interest C. homestead interest D. riparian interest
remainder interst
What is the name of the third party that will receive a life interest in a property, upon the death of a measuring tenant? A. fee simple tenant B. life tenant C. reversion D. remainderman
remainderman
A voidable contract is A. enforceable B. void C. rescindable by one of the parties D. all of the above
rescindable by one of the parties
Who must sign the deed at settlement? A. buyer B. escrow officer C. lender D. seller
seller
If the subtotals on a seller's closing statement shows more debits than credits, this means the A. seller gets a refund B. seller has to pay money to close escrow C. buyer gets a refund D. buyer has to pay money to close escrow
seller has to pay money to close escrow
When a property is sold in "as is" condition, this means the A. seller will not make any necessary repairs B. seller is not responsible to disclose any material defects C. broker is not responsible to disclose any material facts D. buyer is on notice that he is responsible to discover all facts known and unknown
seller will not make any necessary repairs
When a tenant does not pay the monthly rent, the landlord's first step would be to: a. file a lawsuit in justice court b. send a 5 day notice for non-payment of rent c. ask the tenant to vacate immediately d. have the sheriff evict the tenant
send a 5 day notice for non-payment of rent
Real estate owned by a corporation is owned in A. joint tenancy B. partnership C. severalty D. tenancy in common
severalty
An article may be changed from realty to personalty by: A. annexation B. severance C. verbal declaration D. order of the commissioner
severance
Which of the following warrants title only for the period during which the seller owned the property? A. general warranty deed B. special warranty deed C. quitclaim deed D. disclaimer deed
special warranty
Cameron gets a 5 year loan for $22,000 at 8% interest to build a pole barn on the back of his lot. He pays the bank $146.67 every month. At the end of five years, he has a $22,000 balloon payment. What kind of loan does Cameron have? A. ARM B. full-amortized C. installment D. straight
straight
Within the Arizona Groundwater Code, all the following rights were created except A. irrigation grandfathered right B. subdivision grandfathered right C. type 1 non-irrigation right D. type 2 non-irrigation right
subdivision grandfathered right
In a sublease with a positive leasehold, who normally benefits from the excess rent? A. sublessee B. lessor C. broker D. sublessor
sublessor
Bill, who represents a seller under an exclusive listing agreement , receives two offers for the seller's property at the same time: One from a fellow agent in his office, and one from an agent of a cooperating broker. What should Bill do? A. submit both offers at the same time, allowing the seller to decide after looking at both B. submit the higher offer first; if it is not acceptable, submit the second one C. submit the offer from his colleague first; if it is not acceptable, submit the one from the cooperating agent D. submit the offer from the cooperating agent first; if it is not acceptable, submit the one from his colleague
submit both offers at the same time, allowing the seller to decide after looking at both
Fannie Mae would be Least Likely to purchase ________________ loans. A. conventional B. FHA-insured C. subprime D. VA-Guareenteed
subprime
A hundred doctors get together and put in $10 million each to purchase every strip mall in town as they become available over the next several years. This is most likely an example of a A. general partnership B. joint venture C. syndicate D. trust
syndicate
Which method of ownership is NOT legal in Arizona? A. joint tenancy WROS B. severalty C. tenancy by the entirety D. tenants in common
tenancy by the entirety
Alan, the owner of ABC Realty, files for Chapter 7 bankruptcy. What happens to the listing agreement he has with seller Joy? A. Joy has the option to void the listing agreement B. the listing agreement is suspended until Alan sets up a repayment plan C. the listing agreement is terminated D. nothing, the listing agreement expires on the date indicated in the agreement
the listing agreement is terminated
How long must a licensee keep confidential information obtained from the client? A. licensees have no duty to keep information confidential B. licensees must maintain confidentiality for three years afer the transaction closes C. licensees must maintain confidentiality only until the relationship ends D. this duty never ends, even when the relationship does.
this duty never ends, even when the relationship does.
Which of the following is personal property? A. appurtenances B. fixtures C. trade fixtures D. shrubbery
trade fixtures
When a property that has a well is sold, what must be sent to ADWR? A. affidavit of affixture B. well inspection report C. transfer of well rights form D. affidavit of disclosure
transfer of well rights form
In Arizona, which type of irrigation rights may be sold separately from the land? A. type 1 B. type 2 C. type 3 D. type 4
type 2
Which of the following would be considered a grandfathered water right? A. exempt domestic well B. type 2 water right C. flood area D. riparian district
type 2 water right
In a seller carryback whose financial situation should a salesperson be most concerned with? A. vendee B. vendor C. trustee D. broker, if the broker represents the seller
vendee
A negative amortization loan would be a loan A. where the loan balance declines each month B. with principal payments only C. with private mortgage insurance D. where principal balance increases
where principal balance increases
Of these, which is LEAST LIKELY to be negotiable in a listing agreement A. the broker's cooperation with other brokers B. the commission to be paid C. whether there is an end date D. the scope of activities permitted
whether there is an end date
In the context of contracts, what is boilerplate? A. the evidence of contractual capacity B. the consideration needed to form a contract C. the meeting of the minds signifying agreement D. words on a preprinted contract form
words on a preprinted contract form
Which entity enforces water rights in Arizona? A. ADEQ B. ADWR C. AMA D. AWBA
ADWR
___________ may stipulate that condo owners cannot paint doors a certain color or must use a specific type of patio furniture. A. board packages B. bylaws C. CC&Rs D. master deed
CC&Rs
Each of these is an example of involuntary alienation Except A. abc bank forecloses on a property for nonpayment of a loan B. Bob claims title to property through adverse possession C. Calvin dedicates property to the city for a park D. The state takes property through eminent domain to build a freeway
Calvin dedicates property to the city for a park
Who would most likely be required to have a real estate license in Arizona? A. Amy, who manages two properties she owns B. Ben, who gets a rent reduction for managing the apartment building he lives in C. Carl, who is paid a fee for leasing units for multiple property owners D. Denise, who is paid by the property owner to maintain the building's landscaping
Carl, who is paid a fee for leasing units for multiple property owners
If Dan and Emily decide to install an in-ground pool in their back yard, they may or may not be able to recoup the cost of the pool when selling their house. What principal applies to this scenario? A. anticipation B. Conformity C. Contribution D. Substitution
Contribution
Gareth inherits a plot of land from Jessie. A year later, he sells half of the property to kim. A year later, she gives her half to Alex, who sells the mineral rights. This series of events best represents the legal property of: A. Control B. Disposition C. Possession D. Quiet enjoyment
Disposition
Becky just bought a condominium. Which statement regarding her ownership is true? A. Her property taxes are levied against her directly B. she has a proprietary lease C. she may not sell the property without approval of the association D. she must take title as a joint tenant with other owners
Her property taxes are levied against her directly
Betty gave an exclusive right to sell listing to Broker John, an exclusive agency listing to Broker Carole, and an open listing to several other brokers, including Broker Paul. John sold the house. Which of the following statements is correct? A. John and Carole and Paul are entitled to split a commission B. John and Carole are each entitled to a full commission C. John is entitled to a full commission and Carole and Paul are entitled to split a commission D. John is entitled to a full commission
John and Carole are each entitled to a full commission
Betty gave an exclusive right to sell listing to Broker John, an exclusive agency listing to Broker Carole, and an open listing to several other brokers, including Broker Paul. Betty sold the house and collected a commission while the other listings were still in effect. Which of the following statements is correct? A. John, Carole, and Paul are each entitled to a full commission B. John and Carole are each entitled to a full commission C. John and Carole are entitled to split a commission D. John is the only broker who is entitled to a commission
John is the only broker who is entitled to a commission
In checking for conformity of a home in a particular neighborhood, an appraiser would not consider: A. Size B. Style of architecture C. Listed price D. Amenities
Listed price
Lot A is 350 x 200 and lot b is 200 x 350. Commercial lots on this street are selling for $500 per front foot. Which lot will sell for more? A. Lot A B. Lot B C. They'll sell for the same amount D. need more information
Lot A
Jackson suddenly moved out of his Tuscon apartment, leaving behind clothes, furniture, and other personal items. Landlord Lucy is eager to lease the unit, but first she will need to clean it out. What does the Arizona Landlord and Tenant Act say about abandoned property? A. Lucy can discard his personal property immediately B. Lucy must retain his personal property for 10 days C. Lucy must retain his personal property for 14 days D. Lucy must retain his personal property until the date the lease would have termination
Lucy must retain his personal property for 10 days
Homeowner June signs a listing agreement with ABC Realty. Salesperson Mark is the listing agent. Which situation would not terminate the listing agreement. A. June Dies B. June's house burns down C. June's property is rezoned as commercial only D. Mark dies
Mark dies
John receives his Arizona real estate salesperson license on May 7, 2019. The first expiration date is A. December 21, 2020 B. May 7, 2021 C. May 31, 2021 D. December 31, 2021
May 31, 2021
Fractional Sections of a township are on which boundaries? A. North and West B. South and East C. North and South D. West and East
North and West
When land is designated to be in an AMA, which of the following apply? A. The land is located out of the CAP supply zone B. Overdraft of the underground water supply may be occurring C. Surface water rights have been eliminated D. Irrigation rights have been lost
Overdraft of the underground water supply may be occurring
Jess has a one-year lease on office space. Her husband is transferred, and she has to move six months into the lease. She assignes the lease to Owen. When Owen does not pay the rent, who can the landlord go after? A. Jess only B. Owen only C. Owen first, then Jess D. Both Owen and Jess equally
Owen first, then Jess
Who would not have the right to rescind a loan? A. Glenn gets a home equity loan on his primary residence B. Margaret refinances the mortgage she has on her house C. Ned gets a home purchase loan and the lender does not provide required disclosures D. Penny makes a 40% down payment when she gets a loan to purchase a house
Penny makes a 40% down payment when she gets a loan to purchase a house
The booklet "Your Home Loan Toolkit" is a requirement of A. the federal reserve B. Regulation Z C. RESPA D. the Fair Housing ACT
RESPA
The booklet "your home loan toolkit" is a requirement of A. the Federal Reserve B. Regulation Z C. RESPA D. the Fair Housing Act
RESPA
Which law requires the delivery of the Closing Disclosure prior to loan consummation? A. ECOA B. FIRPTA C. RESPA D. HUD
RESPA
Which of the following requires lenders to inform borrowers, when buying a home secured by a mortgage or trust deed, of all finance charges, fees, and interest A. HUD B. FHA C. Requlation Z D. RESPA
Regulation Z
What clarifies ADRE's position on statutes or rules? A. Case Law B. Arizona Administrative Code C. Arizona Revised Statutes D. Substantive Policy Statements
Substantive Policy Statements
Which type of co-ownership is presumed in Arizona? A. community property B. joint tenancy C. tenancy by the entirety D. tenancy in common
Tenancy in common
Otis rents and empty storefront to open a restaurant. He attaches a pizza oven to the floor and wall of the kitchen. the oven was installed by the ____________ and is ____________ property. A. Landlord/personal B. Landlord/real C. Tenant/personal D. Tenant/real
Tenant/personal
Shelving and counters are securely fastened in a leased retail store. Such items are: A. realty B. Fixtures C. Trade Fixtures D. None of these.
Trade Fixtures
Will and Gwen are getting divorce and need to sell their house. Ursula is considering purchasing the home. Listing agent Bill just finished a comparative market analysis on the home. Who is the most likely audience for his value estimation? A. Gwen's divorce attorney B. Ursula C. Ursula's lender D. Will and Gwen
Will and Gwen
for which of these properties would the gross rent multiplier method be most appropriate? A. a single family home that is owner occupied B. a duplex C. a retail complex with three units D. an apartment building with five units
a duplex
Which is considered functional obsolescence? A. worn out carpet B. lack of parking C. a building located next to a factory D. a five bedroom house with one bathroom
a five bedroom house with one bathroom
An example of an easement in gross is A. a child cutting through your yard without asking your permission B. a gas company digging up part of your backyard to fix a leak C. a neighbor using a part of your driveway to get to a main road as agreed upon D. your tenant using a storage shed on the back of your property
a gas company digging up part of your backyard to fix a leak
Which of the following would require a dual agency disclosure? A. the licensee is the buyer's cousin B. the seller and buyer are represented by two different brokerage firms with the same national francise company C. a salesperson in a branch office of a company that represents the buyer, and an associate broker in the main office of the same company that represents the seller D. a licensee is purchasing a property from a seller who is represented by another brokerage firm
a salesperson in a branch office of a company that represents the buyer, and an associate broker in the main office of the same company that represents the seller
The lender may consider a mortgage or trust deed to be A. an estate in land B. a security agreement C. real property D. an encumbrance upon his property
a security agreement
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. a trustee's deed is given to the new owner D. the trust deed is returned to the trustor
a trustee's deed is given to the new owner
Of these, which property exchange would most likely be eligible for the tax-deferral benefits of a 1031 exhange? A. a free-standing store in San Diego for a strip mall in Tijuana B. a personal residence for an office building C. a vacant lot for gas station D. a yacht for a parking lot
a vacant lot for gas station
Which type of ownership is NOT entitled to a stepped-up tax basis upon the death of an owner? A. community property B. community property with the right of survivorship C. joint tenancy with the right of survivorship D. tenancy in common
tenancy in common
In Arizona, the "state presumption" is, unless state otherwise, that unmarried couples will take title as A. joint tenants B community property C. tenants in common D. severalty
tenants in common
Peggy and Paul own a parcel of land. Peggy owns 65% interest, and Paul owns the remainder. How do they hold title? A. joint tenancy B. tenants in common C. community property with right of survivorship D. tenancy by entirety
tenants in common
Arizona's homestead exemption protects homeowners from general creditors up to what amount? A. $100,000 B. $150,000 C. $200,000 D. $250,000
$150,000
A residential rental property is Glendale has a market value of $225,000. Calculate the assessed value. A. $22,500 B. $27,000 C. $33,750 D. $40,500
$22,500
A municipality has a budget of $2,000,000. The assessed value of all the real estate within the tax district is $50,000,000. Calculate the tax rate. A. $1.00 per $100 of assessed value B. $2.00 per $100 of assessed value C. $4.00 per $100 of assessed value D. $10 per $100 of assessed value
$4.00 per $100 of assessed value
If the county sells a lien due to unpaid property taxes, what redemption period does the owner have? A. 6 months B. 1 year C. 3 years D. 10 years
3 years
Grandpa owned property in fee simple. He granted a life estate to his brother Zach and a remainder estate to his son Joel. The life estate is based on Zach's life. What can Zach NOT do with his life estate? A. he can give his life estate away to his sister B. He can live on the property C. He can sell his life estate to a stranger D. He can will the life estate to his daughter
He can will the life estate to his daughter
John, Ted, and Alice own property as joint tenants. Alice sells her ownership interest to Sam. What best describes the current ownership of the property? A. John and Ted remain joint tenants with Sam as a tenant in common B. John, Ted, and Sam are now joint tenants C. John, Ted and Sam are now tenants in common D. all hold the property in severalty
John and Ted remain joint tenants with Sam as a tenant in common
Physical land, its attachments, and its bundle of rights is known as A. Land B. Real Estate C. Real Property D. Real and Personal Property
Real Property
An article may be changed from realty to personalty by: A. Annexation B. Severance C. Verbal Declaration D. Order of the commissioner
Severance
The word "ad valorem" best means A. the adding of value B. an assessment C. according to value D. worth is assumed
according to value
The word Ad Valorem best menas A. the adding of value B. an assessment C. according to value D. worth is assumed
according to value
Real property can be divided into corporeal and incorporeal. Which would be an incorporeal right? A. an easement B. fences and walls C. all improvements D. a house and barn
an easement
Escheated property is sold at public auction by the sheriff. The proceeds of the sale A. go to the heirs of the deceased B. go to the county where the property is located C. are received by the state real estate department for a deposit into the recovery fund D. are deposited into the general fund of the state of arizona
are deposited into the general fund of the state of arizona
An apartment building is located in an area that is rezoned industrial. The property owner A. can maintain the property as an apartment building as long as it does't expand B. must close down the apartment building. C. must apply for a variance D. must rezone the property
can maintain the property as an apartment building as long as it doesn't expand
The government sends you a notice stating that the houses on your road will be demolished to build a new landfill. You are paid fairly for your home and move. The act of demolishing your home is A. adverse possession B. condemnation C. eminent domain D. encroachment
condemnation
Which of the following lease arrangements would a landlord be Least Likely to use with a retail tenant in a shopping center? A. gross lease B. net lease C. percentage lease D. net-net lease
gross lease
Matilda wants to know that her granddaughter Rose will inherit her house when she dies. So, she deeds her house to her granddaughter but creates a situation where Matilda can still live in the house until she dies. When Matilda dies, Rose will own the house. What kind of estate is this? A. conventional life estate B. fee simple absolute C. fee simple defeasible D. life estate pur autre vie
conventional life estate
Which of the following would be considered personal property? A. a tree B. a bathtub C. window blinds D. Harvested crops
harvested crops
Sally's apartment lease has expired, but the building owner agrees to let her stay in the apartment until the owner's parents, who are in the process of selling their house, are ready to move in. The tenancy held by Sally is an A. estate at sufferance B. periodic estate C. estate at will D. fee simple
estate at will
Sally asks her parents is she can move back home for a little while after going through a messy divorce. Her parents agree that she can move back home for one year, as long as she pays them $700 a month in rent. What is this an example of? A. estate at sufferance B. tenancy at will C. estate for years D. periodic estate
estate for years
Henry buys a retirement home in the mountains. He never really got along with his son Mario, but he really likes Mario's wife, Joan. After Mario gets a divorce, Henry changes his will so that Joan inherits the house when he dies. What type of estate does Henry have? A. conventional life estate B. defeasible fee estate C. fee simple absolute D. life estate pur autre vie
fee simple absolute
Which of the following would e considered personal property? A. a tree B. a bathtub C. window blinds D. harvested crops
harvested crops
Bob and Bill bought an apartment building and took title to the property as joint tenants. Bob died and left a will. Bill now owns the apartment building A. in severalty B. as tenant in common with bob's heirs C. as joint tenant with bob's heirs D. the building would have to be sold upon bob's death
in severalty
How do government entities take title to real property? A. as a community property B. as joint tenants C. as tenants in common D. in severalty
in severalty
Patents, trademarks, copyrights and royalties are an example of: A. Corporeal realty B. Tangible realty C. incorporeal realty C. intangible personalty
intangible personalty
Patents, trademarks, copyrights, and royalties are an example of: A. corporeal realty B. tangible personalty C. incorporeal realty D. intangible personalty
intangible personalty
The term "right of survivorship" is closely associated with a A. corporation B. joint tenancy C. tenancy in common D. tenancy in severalty
joint tenancy
The government sends frank a notice stating that his house and neighborhood will be demolished to build a much-needed water treatment plant. What is the government required to offer frank in exchange for condemning his property? A. just compensation B. nothing, since it is for the public good C. whatever frank asks for D. whatever they decide is reasonable
just compensation
Michelle and Mike are husband and wife. Michelle inherits a home from her late uncle John and is careful not to commingle it with other property. When Michelle dies, who owns the home she inherited from John? A. michelle's heirs B. mike C. john's wife D. this will be determined in probate
michelle's heirs
Peter leases space for his ice cream shop in Stella's buidling. He pays her $800 a month in rent plus a portion of his profits. Peter most likely has what kind of lease? A. graduated lease B. ground lease C. index lease D. percentage lease
percentage lease
Homestead exemption will protect a person against: A. voluntary liens B. specific creditors C. personal judgements D. foreclosure
personal judgemnets
What is the legal proceeding that establishes the validity of a will? A. inchoate B. partition C. probate D. severalty
probate
Jean gives 20 acres to the city of Edgewood but stipulates that the city can use it only to create a nature preserve and park. If the city uses the land for any other purpose, it will revert to Jean's heirs. What kind of estate has Jean created? A. conventional life estate B. fee simple absolute C. life estate pur autre vie D. qualified fee
qualified fee
The concept of escheat means that property A. can be appropriated by the state when there's a public need B. can be confiscated for non payment of taxes C. must meet specific zoning requirements before it can be developed D. reverts to the state when a person dies without a will, an heir, or creditor.
reverts to the state when a person dies without a will, an heir, or creditor
As defined in local zoning ordinances, the distances between lot lines and improvements are known as A. buffer zones B. depth C. frontage D. setbacks
setbacks
How will a corporation hold title? A. community property B. joint tenancy C. tenant in common D. severalty
severalty
The charges levied against real estate as a result of city-installed sewer systems are called A. property taxes B. a general lien C. special assessments D. all of these
special assessments
Jill buys a house from jack. She assumed that the curtains would be included in the price, even though they were not listed in the agreement of sale. What is the best argument Jill could make to persuade a judge if this goes to court? A. Jack mentioned that they went with the house. B. My agent assured me they were included. C. The curtains were custom-made for the odd-shaped window. D. The curtains were in the ad that appeared in the paper.
the curtains were custom-made for the odd-shaped window
Which is not an example of an improvement? A. the barn on the back of the property B. the fence running along the edge of the property C. the line of pine trees planted along the edge of the property D. the sewer line running along the front of the property.
the line of pine trees planted along the edge of the property
Homeowners purchased a new residence and rented their existing home. Which statement is TRUE? A. they will keep the homestead protection on the home they are now renting, but will not have it on the new home. B. they will have homestead protection on neither home C. they will have homestead protection on the new home but not the one they rented D. they will have homestead protection on both homes
they will have homestead protection on the new home but not the one they rented
How long does an Arizona property owner have from the date of the tax lien sale to redeem the lien by paying the delinquent taxes, the required interest, and any fees? A. six months B. one year C. two years D. three years
three years
Which is NOT an appurtenance and, therefore, does not pass with a standard warranty deed? A. trade fixtures B. trees C. Shrubs D. custom Window blinds
trade fixtures
Which is NOT an appurtenance and, therefore, does not pass with a standard warranty deed? A. trade fixtures B. trees C. shrubs D. custom window blinds.
trade fixtures
Which of these is NOT considered when determining whether an item is a fixture or personal property. A. intention of the annexer B. manner of annexation C. Value of the annexed item D. Relationship of the parties
value of the annexed item
Fiona bought a lot to build a home. The zoning for that town said that the lot had to be 100 feet wide, but to Fiona's surprise, she learned that the lot was only 98 feet wide when she applied for a building permit. The land is worthless to Fiona if she cannot build the house for lack of two feet. What does Fiona need from the zoning board? A. buffer zone B. conditional use C. noncomforming use. D. variance
variance
Which is an example of personal property? A. custom-made draperies in an arched window B. minerals lying under the surface of the land C. a picket fence around the yard D. wheat just harvested in the field
wheat just harvested in the field
