MRED ADRE TEST
Upon conviction of a felony or misdemeanor, a licensee must notify the real estate department within how many days?
10
Which Arizona tax rate is applied to owner occupied residential property?
10%
When a licensee receives a complaint from the Arizona Department of Real Estate the licensee must respond in?
14 calendar days
What is the minimum holding period when a person declares a tax-free gain on a personal residence?
2 years
Four people make an offer on a residential investment property. They give the broker a $40,000 earnest money deposit, and he steals the money. If payment is made from the Recovery Fund, the maximum dollar the parties may receive is:
30,000
How much may be paid on a single claim from the Arizona Real Estate Recovery Fund?
30,000
What is the maximum number of lots a salesperson can sell without a public report?
5
How long is a broker required to keep a copy of a purchase contract?
5 years
An Arizona real estate broker holds a license under the name Frank Larson PLLC. Using his broker's license, the broker would like to open a real estate company under the name FL Realty. Which of the following is true?
A PLLC may not operate under a fictitious name
Which of the following would apply to a property located in a "community facility district"?
A charge for infrastructure that is added to the property taxes
According to the commissioner's rules, who may "initial" a purchase contract?
A designated or associate broker
According to Arizona Revised Statutes Section 416(a)(2) the definition of Improved Real Property includes four (4) possible conditions except which of the following:
A lot where a structure could be built within two years of the contract
According to the Arizona Revised Statutes, which one of the following parties must have a real estate license?
A person that manages more than one property
A mobile home is placed on a parcel of land in a mobile home park. The owner of the mobile home has a long-term lease on the land. Which of the following is true regarding the listing and sale of the mobile home?
An Arizona licensee may list and sell the only the mobile home
Which of the following parties needs a real estate license?
An attorney listing a house for a client
Irrigation Grandfathered rights __________.
Are owned by the owner of the land to which they are appurtenant.
Jane and Sam enter into a purchase contract. Jane wants to transfer the contract to Bill. What type of clause is used to do this?
Assignment clause
For a licensee to be paid a real estate commission, the licensee must have an active license when?.
At the time of the sale
Two Arizona brokers agree to split the commission on a commercial transaction, which one of the following statements listed below are true?
Commission agreements between brokers may be oral and still be enforceable
In Arizona, which of the following listed below is not required for a valid listing:
Commission split
Who is the primary beneficiary from the sale or lease of Arizona State Trust Land?
Common schools
What is it called when money is placed into a community savings account but was earned solely by one individual?
Community Property
A person would like to create an easement on a parcel that would preserve the land as is and prohibit any land development. This type of easement is referred to as.
Conservation easement
What does not relate to the legal test of a fixture?
Cost
On a settlement sheet, rent paid in advance would be reflected as a __________.
Credit buyer, debit seller
Property taxes have been paid for the entire year, at closing the pro rata number of days remaining in the year appears as ___________.
Credit seller, debit buyer
Taxes on a property are $1,825 a year. The first half taxes have not been paid. What is the proper proration if the close of escrow is April 15th?
Debit seller $527.22
On a closing statement, the selling price is shown as __________.
Debit to the buyer
What action will void a homestead?
Declaring primary residence in another state
When a spouse would like to own real estate sole and separate the other spouse would need to sign a?
Disclaimer deed
A real estate brokerage company with 20 listings is sold to another local real estate company. What is the status of the listings?
Each property owner and the new company must sign a new listing agreements
What should a buyer be concerned with if they see a worn path across the property they are interested in buying?
Easement by prescription
What is it called when a structure adds value to the land?
Economic life
What governmental right requires compensation be given to private property owners?
Eminent domain
A long narrow crack in the earth's surface would be referred to as?
Fissure
Which of the following is Federal Emergency Management Agency (FEMA) is responsible:
Flood area maps
What is the purpose of Arizona 811?
Identifies public utility locations before trenching commences
Which of the following violates, the commissioner's rules?
Inducing a party to breach a contract
Which one of the following statements is true regarding the Arizona Department of Real Estate
It audit brokerage offices
When a licensee leaves a broker, what happens to the license?
It is sent to the real estate department
The EPA program that covers Brownfields would refer to:
Land contaminated with hazardous substances
A buyer may rescind the sale of the subdivided property if the property does not have:
Legal access
The only person who cannot recover from the Arizona Recovery Fund is the
Licensee
After payment has been made from the recovery fund on behalf of a licensee if the licensee repays the recovery fund, the licensee's right to reapply for a license:
May be denied for a maximum of 5 years
Which of the following would be true of a Limited Liability Company?
May be taxed as a corporation or a partnership
Of the following liens: delinquent taxes since 2021, mortgage recorded in 2017, IRS lien recorded in 2018 - would have second priority?
Mortgage
A buyer is buying a property in an area that states that specific areas of the property are to remain undisturbed. This is best described as:
Natural open space
The role of escrow is to __________.
Neutral party that, among other tasks, provides an accounting of monies and how they are distributed
A buyer signs a contract with a new home builder. The builder informs the buyer that the house will take eight months to complete. What statement listed below is true?
No rescission period exists
A real estate salesperson sends a buyer to a lender. May the lender pay the salesperson for the referral?
No, payment of the fee would be illegal
A real estate salesperson sends a buyer to a lender. May the lender pay the salesperson for the referral?
No, payment of the fee would be illegal
A retail store has been in the same location for 20 years. The land around the store is sold for housing development. What is true regarding the retail store?
None, the sale of adjacent land has no legal effect.
The first half of Arizona property taxes become delinquent on __________.
November 1st
What is considered an exempt domestic well?
One with a maximum pump capacity of 35 gallons per minute
After passing the real estate exam, a licensee must activate his license within
One year
What is needed in order to acquire an easement by prescription?
Open, hostile, continuous use for 10 years
If a broker receives an oral offer by telephone, what should he do?
Present the oral offer
Which of the following would be a debit to the seller?
Pro rata share of property taxes
Where will a property owner find the charges for the groundwater replenishment district?
Property taxes
A buyer is most likely to accept title to property with which of the following liens remaining unpaid as of close of escrow:
Property taxes for the current year
A licensee receives an offer on a property listed with another broker. If the licensee cannot reach the broker within 24 hours, what must he do?
Request the seller give written authorization to present the offer
An associate broker is appointed manager of a branch office. All of the following listed below are true Except.
Since the branch manager is an associate broker, the designated broker is relieved of responsibility
A husband and wife would like to lease a property for eighteen months. While the husband is out of town, his wife finds the perfect house to lease. The wife signs the lease and gives the leasing agent the first month's rent. Which of the following is true regarding the lease?
Since the husband was aware of the transaction, only one signature is required
A subdivision public report is required on all of the following properties except
Six or more commercial lots
If the designated broker of a company has his license revoked, the status of the salespeople working for the company would be?
Suspended
Which one of the following can a developer do without a Commissioner's Public Report?
Take lot reservations
Which one of the following can a developer do without a Commissioner's Public Report?
Take lot reservations
When a person sells income-producing property, and the taxable gain is calculated, what is the seller most interested in?
Tax Basis which would include capital improvements
If a claim is paid from the Arizona Recovery Fund, the status of the license in question is
Terminated
A buyer is buying a property that requires an Affidavit of Disclosure. Which of the following is true regarding the Affidavit of Disclosure?
The Affidavit of Disclosure is recorded with the deed
Two real estate agents from different companies argue over a current real estate transaction. As a result, the agents will not show their clients any properties listed by the other agent. Which statement listed below is true?
The agent's actions violate the Commissioner's rules
There is a large existing apartment building in an area rezoned for only single family residential uses. What is true regarding the apartment building?
The apartment building may remain but cannot expand.
When advertising via a web page, which of the following is true?
The broker's name must appear prominently on every page, without the viewer having to scroll down to see it
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 is true?
The brokers are in violation of the Sherman Anti-Trust laws
A buyer is purchasing a home within a homeowner's association. The home has a violation not known by the association and not disclosed to the buyer. What is true regarding the violation?
The buyer may be required to correct the violation.
An out of state developer is marketing a sub-division targeting Arizona residents. What is required of the out of state developer?
The developer is required to obtain an Arizona Public report
A lender asks a salesperson to prepare a Broker's Price Opinion (BPO). Who does the lender make the payment to for the BPO?
The employing broker
In an escrow closing, the signed deed is delivered to _______.
The escrow agent
An Arizona real estate licensee has a friend acquire property for them and tells the friend not to disclose to the sellers the status of the licensee. This action is a violation of the rules unless:
The licensee is disclosed to all parties in writing
What is true when a property is held in joint tenancy with right of survivorship, and one of the parties dies testate?
The property goes to the joint tenant survivor.
A buyer is entering into a purchase contract to build a new home in a subdivision. The home will be completed in six months. How long does the buyer have to rescind the contract?
The right to rescind does not apply
A buyer is entering into a purchase contract to build a new home in a subdivision. The home will be completed in six months. How long does the buyer have to rescind the contract?
The right to rescind does not apply
A salesperson enters into a contract with a buyer and a seller and opens escrow. Before COE, his broker's real estate license is suspended. What is the status of the salesperson's commission?
The salesperson may receive a commission
What is the purpose of zoning?
To promote the health, safety and general welfare of a community
When grandfathered water rights are reclassified and can now be sold separate from the land, this reclassified rights are known as________.
Type II
If a contract doesn't have a legal description, the contract is _____.
Unenforceable
From what does a homestead exemption protect a person?
Unforeseen Personal jugements
When property zoning is changed from single family residential to commercial usage, this change would commonly be called:
Up zoning
According to the Arizona Administrative Code, when is a license not required for a temporary office?
When the temporary office is for original on-site sales within a subdivision
If a person does not renew his license on time, it is considered
expired
After passing the real estate exam, a licensee must activate his license within
one year
What can a renter deduct on a net lease?
property taxes
When a property tax lien is sold at auction, what is the statutory period of redemption before a foreclosure can occur?
three years
