Practice questions

What is the maximum civil penalty that can be imposed per license law violation in Arizona?

1000

Carlos has been renting a small efficiency apartment month to month from Nigel for the past few months. Recently, Carlos accepted a promotion with his company and must move to another state. How much notice must Carlos give Nigel before vacating, according to Arizona law?

30 days

In Arizona, a temporary designated broker can be appointed when a designated broker will be absent, but only up to a certain amount of time. What is that maximum time period?

30 days

Equipment attached to property and used as part of business activities is considered ______.

A trade fixture

The property manager's primary responsibility to an owner is to ______.

Achieve the highest possible return on the owner's investment

Which type of analysis performed by a property manager is similar to a highest and best use analysis that an appraiser would use?

Analysis of alternatives

What's meant by the term of a lease?

Beginning and ending dates

Which of the following is the most serious consequence of treating a customer as a client?

Breaching your duty to your actual client

What's an appropriate strategy when working with a prospective short sale seller

Bring a list of documents the lender will need.

To what type of ownership do horizontal property acts apply?

Condominium

With the cost approach to value, what is the replacement cost?

Cost to build a functionally equivalent improvement

Which of the following describes an estate for an unknown period of time, with either party permitted to terminate the lease by giving notice to the other?

Estate at will

What's a key feature of the Federal Housing Administration's loan program?

Insures lenders against loss from borrower default

If a licensee has fiduciary duties to obey all lawful instructions from a client and also to exercise reasonable skill and care, which answer describes a situation in which there is a conflict between the two fiduciary duties?

Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer.

John is selling his rental property to Tony. Marcus represents John, and Meredith is working with Tony, though there is no agency relationship between them. In this scenario, who is/are the principal(s) in an agency relationship?

John

Sunshine Surveyors Inc. created a lot and block survey for a new residential development, Happy Acres. The first thing the surveyor did when he surveyed the new neighborhood was to reference what type of description?

Metes and bounds description

Nate represents Elena in the purchase of a house. Katherine represents the seller, Timothy. Which of the following statements accurately reflects the agency duties owed?

Nate owes Timothy the duty of disclosure.

Which of the following is prohibited under federal fair housing laws?

Offering different terms, conditions, or privileges based on protected class status

What's the property manager's primary function?

Produce the greatest net return for the owner.

Kali signed a lease in which an appraisal is performed every three years, and the rent is then adjusted according to percentage of the prior rent. What type of lease is this?

Reappraisal lease

Richard lives in a state that uses the riparian water right management system. He is selling his lakefront house, but wants to retain the right to use the lake even though he hasn't used the lake in more than 10 years. As his agent, what should you tell him?

Sorry, but in this state, the right to use that lake transfers with the lakefront property."

Although the real estate commissioner has the power to investigate formal complaints brought against Arizona licensees, who performs the actual investigations?

The Department of Real Estate's certification and enforcement unit

Alma's family is getting assistance from the Section 8 program in Arizona. What organization provides the funds for this program?

The U.S. Department of Housing and Urban Development

CAP is at least partially responsible for ______.

The current size of the real estate sector

Which one of the following statements about income tax rates is correct?

The tax rate on long-term capital gains is less than the tax rate for ordinary income.

Seller Jamison is closing on his property with buyer Conrad. Jamison paid the current year's property taxes already. Is this a prepaid or accrued expense, and how will it be represented on the settlement statement?

The taxes are a prepaid expense, and will appear as a buyer debit and a seller credit.

What experience level is required to obtain a broker's license in Arizona?

Three years' experience as a real estate licensee

Title VIII of the Civil Rights Act of 1968

Title VIII of the Civil Rights Act of 1968 (aka the Fair Housing Act) prohibits housing discrimination based on race, color, national origin, and religion.

What's the purpose of an assessor's parcel number?

To identify a property for tax purposes

Arizona creditors who hold a junior lien on a property in foreclosure have which one of these rights?

To reinstate the loan and take the position of the senior lien holder

What's the role of the primary mortgage market?

To work with borrowers in originating and funding mortgage loans

All of the following materials can be used to create an effective drainfield EXCEPT ______.

Trees and shrubs

Marissa, a new licensee, has some questions. Which of these questions can the Arizona Association of REALTORS® help her answer?

Where can I go to find some marketing data on my area so I can advertise more effectively?

Which type of insurance can property managers carry to protect against employee claims of injury?

Worker's compensation

Which of the following scenarios accurately represents your environmental disclosure responsibility as a real estate licensee?

You must disclose all known environmental hazards for both residential and commercial properties.

Which of the following is an action borrowers take to temporarily lower the interest rate on their mortgage loan?

buy down

Becky's client asked, "Who contributes to the escrow account to maintain the proper funds for insurance payment?" How should she respond?

buyer

Which of the following business entities may apply for an employing broker's license in Arizona?

partnership

Which clause is standard in a deed of trust and affects the foreclosure process that can be used if the borrower defaults?

power of sale

What occurs when people occupying a building begin to feel unwell due to air quality issues?

sick building syndrome

The distance between single-family residences in the new Desert Vista subdivision in Mesa is 30 feet. What is the distance known as in subdivision development terms?

the setback

You sign a contract to purchase a machine that will allow you to travel back in time and meet Abraham Lincoln. Assuming that time machines don't actually exist (for now), what type of contract is this?

void

Lack of capacity has made the contract non-binding, so the contract is _____.

voidable