Arizona real estate pre-license final exam

Q90) A residential seller in Arizona must disclose the condition of the property to a buyer on a A. Seller Property Disclosure Statement B. Home Inspection Form C. Residential Property MLS Form D. Real Estate Transfer Disclosure Form

A. Seller Property Disclosure Statement

Q51) A seller accepts a buyer's counteroffer and mails the accepted contract to the buyer two days after receiving it. Because of confusion in the post office, it takes four days for the accepted contract to reach the buyer. In the meantime, the buyer's offer has expired. Which of the following is true? A. The buyer is bound to the contract. B. The buyer has no obligations to the seller whatsoever. C. The buyer's counteroffer expired before it was accepted. D. The seller is no longer bound to the agreement.

A. The buyer is bound to the contract.

Q93) Who is responsible for ensuring that a leased residential unit is maintained in a habitable condition? A. The landlord B. The tenant C. The local housing authority D. The landlord and tenant jointly

A. The landlord

Q81) In deriving cash flow from net operating income, A. debt service is subtracted from NOI. B. debt service is added to NOI. C. income taxes are added to NOI. D. cost recovery expense is subtracted from NOI.

A. debt service is subtracted from NOI.

Q99) The doctrine of prior appropriation A. governs Arizona?s interior watersheds B. determines the priority of liens in Arizona C. establishes prescriptive easements in Arizona D. determines the right to unoccupied real property in Arizona

A. governs Arizona?s interior watersheds

Q96) Pursuant to Article XXVI (26) of the Arizona Constitution, Arizona real estate licensees A. may draft or fill out instruments incident to a real estate transaction B. may practice law without being a member of the bar C. must have at least 2 years of postsecondary education D. must be at least 21 years old

A. may draft or fill out instruments incident to a real estate transaction

Q87) For how long is an Arizona real estate license valid? A. 1 year B. 2 years C. 3 years D. 4 years

B. 2 years

Q21) A tract of land is described as the W 1/2 of the N 1/2 of the NE 1/4 of Section 16. What is its acreage? A. 20 acres B. 40 acres C. 80 acres D. 160 acres

B. 40 acres

Q2) Which of the following is included in the legal concept of land? A. A corn crop B. A lake C. A felled tree D. An abandoned vehicle

B. A lake

Q67) At the direction of a seller-client, an agent tells a pregnant working woman that the property is not in a good neighborhood for a single woman, particularly if she regularly works late hours. The neighborhood has an increasing crime rate, and people are moving out. What has this agent done wrong? A. Practiced blockbusting B. Engaged in steering C. Committed negligent misrepresentation D. Nothing: an agent may show or not show any property if the client so directs

B. Engaged in steering

Q3) A property abuts a non-navigable stream. What does the owner own? A. Land to the low-water mark B. Underlying land to the middle of the waterway C. Land to the high-water mark D. All water to the middle of the waterway

B. Underlying land to the middle of the waterway

Q64) A business buyer wants to acquire a business in its totality, including the business identity and all rights, obligations, liabilities, and assets. The type of transaction that would accomplish this aim is A. an asset sale. B. a stock sale. C. a proprietary lease. D. a rights lease.

B. a stock sale.

Q95) Marital property in Arizona is governed by A. common law B. community property law C. the Marital Property Act D. dower and curtsey

B. community property law

Q98) Which of the following is a non-monetary encumbrance? A(n) A. mechanic?s lien B. easement C. deed of trust D. tax lien

B. easement

Q23) A critical determinant of commercial and residential property demand in a market is A. availability of land. B. employment. C. existing supply of properties. D. per capita income.

B. employment

Q54) An agent fails to discover crumbling wallboard on the basement ceiling beneath a bathroom. The agent sells the property, and the buyer later sues the agent for not discovering and disclosing a clearly visible and obvious problem. In this case, the agent A. may be guilty of intentional misrepresentation. B. has an exposure to negligent misrepresentation. C. can countersue the buyer for not employing an inspector. D. is not vulnerable, since the problem is not expensive to correct.

B. has an exposure to negligent misrepresentation.

Q56) The nature and import of the agency relationship should be disclosed to the client A. prior to completing an offer. B. prior to completing a listing agreement. C. upon the initial contact with the person. D. within 24 hours after completing a listing agreement.

B. prior to completing a listing agreement.

Q53) A principal instructs an agent to inform any minority buyer that the property was just put under contract an hour ago and is no longer available. The agent refuses to comply. In this case, A. the agent should exercise caution until the listing expires, then decline to renew it. B. the agent has not violated fiduciary duty. C. the agent is liable for breaching the listing terms. D. the agent may sue the principal for discrimination and misrepresentation.

B. the agent has not violated fiduciary duty.

Q30) Lenders use the loan-to-value ratio as a guideline in underwriting because A. the property's value serves to measure the profitability of the loan. B. the loan amount needs to be less than the property's value. C. borrowers tend to inflate the true value of the property. D. a full-price loan overfinances the borrower.

B. the loan amount needs to be less than the property's value.

Q9) An easement by prescription requires that A. the use be continuous, known, and permitted by the owner for a period of time. B. the use be continuous, open, and hostile for a required period of time. C. the owner of an adjoining property be landlocked. D. the owner of the affected property be an adverse possessor.

B. the use be continuous, open, and hostile for a required period of time.

Q50) The president of a local bank wants to sell her home. She instructs an agent to inform a buyer moving to town that her bank, along with others, is about to curtail mortgage lending for the rest of the year. Hearing this, the buyer hurries to make a full-price offer in order to get the loan application in before the freeze. The seller accepts the offer. This contract is A. enforceable. B. voidable. C. null. D. vaild.

B. voidable.

Q36) A borrower grosses $4,000 per month and pays $600 monthly for debt obligations. What monthly payment for housing expenses (principal, interest, taxes, insurance) can this person afford based on an FHA debt ratio of 41%? A. $760 B. $1,394 C. $1,040 D. $1,404

C. $1,040

Q94) In the transfer of a business personal property is transferred by a A. quitclaim deed B. warranty deed C. bill of sale D. bargain and sale deed

C. bill of sale

Q97) The designated broker of an Arizona real estate brokerage firm must A. ensure that salespeople arrive at work on time B. provide associated salespeople with a desk and work area C. provide reasonable supervision of salespeople D. reimburse salespeople for their work related expenses

C. provide reasonable supervision of salespeople

Q4) A retailer installs special display counters to exhibit her products. At the end of the lease term, the retailer moves to another state, leaving the counters in the store. At this point the counters are considered which of the following? A. trade fixtures, and therefore real property B. trade fixtures and therefore personal property C. real property, since the trade fixtures were abandoned D. personal property that must be returned to the retailer

C. real property, since the trade fixtures were abandoned

Q75) A sale transaction on rental property closes on December 16. The landlord received the December rent of $713 on December 1. Assuming the closing day is the buyer's, and that the 365-day method is used for prorating, which of the following entries would appear on the settlement statement? A. Debit seller $345.00 B. Credit seller $713.00 C. Debit buyer $345.00 D. Credit buyer $368.00

D. Credit buyer $368.00

Q20) What are the dimensions of a township? A. One mile square B. Six miles by one mile C. One mile by one mile D. Six miles by six miles

D. Six miles by six miles

Q5) How is a legal life estate created? A. By an owner's voluntary grant B. By operation of law C. Through the four unities D. Through a defeasible conveyance

B. By operation of law

Q11) Five liens have been recorded against a certain house, in the following order: first mortgage, mechanic's lien, second mortgage, real estate tax lien, special assessment lien. Which lien will be the last one to be paid from the proceeds of the sale of the house? A. Special assessment lien B. Mechanic's lien C. Second mortgage lien D. Real estate tax lien

C. Second mortgage lien

Q84) A kind of insurance that provides coverage for losses resulting from the criminal acts of an employee is A. workers? compensation. B. consequential loss. C. liability. D. surety bond.

D. surety bond.

Q7) Three people have identical rights in a property, share an indivisible interest, but may sell or transfer their interest without consent of the others. This type of ownership is A. joint tenancy. B. tenancy by the entireties. C. estate in severalty. D. tenancy in common.

D. tenancy in common.

Q73) Which of the following are examples of items typically prorated between seller and buyer at closing? A. Real estate taxes B. Inspections C. Survey D. Mortgage origination fees

A. Real estate taxes

Q15) A tenant obtains a low rental rate for a building, but agrees to pay all operating expenses. This is an example of a A. net lease. B. percentage lease. C. gross lease. D. proprietary lease.

A. net lease

Q77) Exceeding the limits of the authority granted is a major risk in A. the fulfilling of listing agreements. B. the development of policy manuals. C. complying with fair housing laws. D. cooperating with brokers from other firms.

A. the fulfilling of listing agreements.

Q14) A miner openly lives and prospects on a 20,000-acre ranch. After twenty years, the owner notices the miner and kicks him off the property. The miner makes a claim of ownership to the property. This claim will likely be A. upheld, because the possession was not concealed. B. declined in favor of an easement by prescription. C. declined, because the occupancy period was insufficient. D. declined since the owner was not aware of the possession.

A. upheld, because the possession was not concealed.

Q34) A $300,000 loan has monthly interest payments of $2,000. Its annual interest rate is: A. 4 B. 6% C. 8% D. 10%

C. 8%

Q88) An unlicensed assistant may NOT A. run errands for a licensee B. perform clerical or administrative tasks C. provide pricing opinions or advice D. deliver documents

C. provide pricing opinions or advice

Q12) For a conveyance by deed between private parties to be valid, the deed must be A. warranted by the grantor. B. recorded by the grantee. C. signed by the grantee. D. accepted by the grantee.

D. accepted by the grantee.

Q91) Sally Salesperson's advertising for ABC Realty must be supervised by A. the owner of ABC Realty B. her team leader C. the office manager D. the designated broker

D. the designated broker

Q49) A homeowner's rented residence has an assessed valuation of $150,000, and a market value of $170,000. The homestead exemption is $25,000. Tax rates for the property are 7 mills for schools; 3 mills for the city; 2 mills for the county; and 1 mill for the local community college. What is the homeowner's tax bill? A. $1,625 B. $1,885 C. $1,950 D. $2,210

A. $1,625

Q44) A principal residence is bought for $180,000. A new porch is added, costing $7,000. Five years later the home sells for $220,000, and the closing costs $18,000. What is the homeowner's capital gain? A. $15,000 B. $29,000 C. $33,000 D. $51,000

A. $15,000

Q60) Spenser, who works for selling broker Smith, sells a house listed by listing broker Adams. The house sells for $425,000. The co-brokerage split between Smith and Adams is 50-50. Spenser is on a 65% commission schedule with Smith. If the total commission rate is 7%, what is Spenser's commission? A. $9,669 B. $13,812 C. $14,875 D. $19,338

A. $9,669

Q38) Which of the following items would affect a homeowner's adjusted basis? A. Installing a new furnace B. Replacing a washing machine C. Stripping and staining hardwood floors D. Replacing a broken picture window

A. Installing a new furnace

Q74) Which of the following items are paid in arrears? A. Interest and taxes B. Rents and interest C. Insurance and interest D. Rents and taxes

A. Interest and taxes

Q86) Disciplinary action against an Arizona real estate licensee can be imposed by the A. Real Estate Commissioner B. Real Estate Advisory Board C. Governor D. Attorney General

A. Real Estate Commissioner

Q17) A property owner in a development is required to have a shake roof. This requirement is most likely to come from A. a deed restriction. B. a zoning ordinance. C. a building code. D. a condominium declaration.

A. a deed restriction.

Q55) A buyer representative locates a suitable property through an owner broker. The buyer buys the property, the seller pays a commission, and the two agents split the commission. In this instance, the owner broker is acting as A. a single agent for the owner. B. a dual agent. C. a subagent of the buyer representative. D. a co-operating agent.

A. a single agent for the owner

Q19) A zoning board of adjustment might give favorable consideration to a land use variance if A. compliance would cause the owner undue and unjustified hardship. A. compliance would cause the owner undue and unjustified hardship. B. the appeal is prepared by professional land use attorneys employing the correct procedures. C. the owner can demonstrate a valid homestead exemption. D. there is a grandfathering clause in the deed.

A. compliance would cause the owner undue and unjustified hardship.

Q47) A tax rate is derived by A. dividing the tax requirement by the tax base. B. multiplying the tax base times the tax requirement. C. subtracting other sources of revenue from the total budget of the taxing district. D. dividing the tax base by the tax requirement.

A. dividing the tax requirement by the tax base.

Q68) During the executory period of a sale contract, the buyer enjoys which of the following interests? A. equitable title. B. legal title. C. executory title. D. equity of redemption.

A. equitable title.

Q85) The most common kind of landlord default is A. failure to maintain the property and provide services. B. selling the property without notifying the tenants. C. entering the leased premises without the tenant?s permission. D. death of the landlord.

A. failure to maintain the property and provide services.

Q33) The Veteran's Administration assists numerous qualified mortgage loan applicants because it A. guarantees loans made by approved lenders. B. insures loans made by approved lenders. C. purchases loans made by approved lenders. D. originates loans made by approved lenders.

A. guarantees loans made by approved lenders.

Q48) A special assessment tax differs from other tax levies in that A. properties that receive no benefit do not pay the tax. B. the tax levy takes into account other ad valorem taxes paid. C. less valuable properties which stand to benefit will pay proportionately lower taxes. D. it creates an voluntary junior lien on the property.

A. properties that receive no benefit do not pay the tax.

Q69) A sale contract contains a one-month financing contingency to allow the buyer to procure a loan. Thirty- two days later, the buyer still has no loan commitment. At this point the seller may A. put the property back on the market. A. put the property back on the market. B. sue for specific performance. C. retain the buyer's deposit. D. sue the lender to commit to a loan under fair financing laws.

A. put the property back on the market.

Q41) A property sells for $180,000 one year after it was purchased. If the annual appreciation rate is 10%, how much did the original buyer pay for it? A. $162,000 B. $163,636 C. $180,000 D. $198,000

B. $163,636

Q65) In which of the following situations would Fair Housing laws allow discrimination? A. The developer of a subdivision containing fifty single-family homes refuses to sell to families that have children. B. A retirement community whose residents are all over 62 refuses to allow families with children to buy in the community. C. A condominium community refuses to allow married couples or persons older than 40 to buy a condominium unit. D. A condominium community refuses to allow married couples or persons older than 40 to buy a condominium unit.

B. A retirement community whose residents are all over 62 refuses to allow families with children to buy in the community.

Q83) How does the Equal Credit Opportunity Act (ECOA) affect property managers? A. Managers cannot charge higher rents to tenants because of the fact they have children. B. Managers must be consistent and nondiscriminatory in evaluating the creditworthiness of tenant applicants. C. Managers must make housing facilities available to handicapped persons. D. Managers must identify the owners of all funds in their keeping for others.

B. Managers must be consistent and nondiscriminatory in evaluating the creditworthiness of tenant applicants.

Q71) Which of the following transactions requires a large lender (more than five loans per year) to use the CFPB Closing Disclosure form? A. The buyer/borrower is not represented by a broker. B. The loan is for a 30-year fixed first mortgage secured by a house. C. The loan amount exceeds $85,000. D. The closing costs exceed one percent of the loan amount.

B. The loan is for a 30-year fixed first mortgage secured by a house.

Q37) What is meant by "opportunity cost" when speaking of real estate as an investment? A. The financing charge associated with borrowing money to invest in real estate. B. The return an investor could reasonably expect to earn from competing investments. C. The full cost of acquiring an investment property. D. The financial risk of the investment.

B. The return an investor could reasonably expect to earn from competing investments.

Q82) What is the primary aim of a marketing program for a managed property? A. To enhance the image of the property owner B. To find and attract the right kind of tenants C. To attract skilled professional staff to the property D. To discourage current tenants from leaving the property

B. To find and attract the right kind of tenants

Q31) In the past, borrowers were often surprised by unexpected financing costs and charges at closing. This situation has been largely corrected through disclosure requirements mandated by which of the following laws? A. Equal Credit Opportunity Act B. Truth-in-Lending laws C. National Disclosure Procedures Act D. Federal Fair Housing Laws

B. Truth-in-Lending laws

Q92) The security instrument most commonly used in Arizona for a real estate financing transaction is a A. mortgage B. deed of trust C. chattel mortgage D. financing statement

B. deed of trust

Q26) A strength of the sales comparison approach to value is that A. old as well as new sales data may be used in the adjustment process. B. the approach is based on the principle of substitution. C. the approach is accurate with unique, special purpose properties. D. sale prices can be compared in a neighborhood, since all enjoy the same approximate rate of appreciation.

B. the approach is based on the principle of substitution.

Q22) As an economic product, real estate is unique because A. it has appreciation value. B. the demand must come to the supply. C. it is quick to respond to supply-demand imbalances. D. its appeal is predictable.

B. the demand must come to the supply

Q10) In a lien-theory state A. liens are recorded in trusts as opposed to title records. B. the lender records a lien while the borrower retains title to the mortgaged property. C. liened properties are foreclosed by strict foreclosure. D. trustees retain title during a mortgage period.

B. the lender records a lien while the borrower retains title to the mortgaged property.

Q45) A certain investor wants an 11% return on investment from any real estate investment. A property priced at $360,000 has gross income of $60,000 and expenses of $22,000. Approximately how much too high or too low is the price of this property for the investor to obtain her desired return exactly? A. $1,000 overpriced B. $8,000 underpriced C. $15,000 overpriced D. $16,000 underpriced

C. $15,000 overpriced

Q35) A lender determines that a homebuyer can afford to borrow $120,000 on a mortgage loan. The lender requires an 80% loan-to-value ratio. How much can the borrower pay for a property and still qualify for this loan amount? A. $96,000 B. $106,000 C. $150,000 D. $160,000

C. $150,000

Q43) A property has a net income of $50,000, interest payments of $35,000, principal payments of $3,000, and annual cost recovery of $7,000. The property's tax rate is 28%. What is the property's annual tax on income? A. $4,200 B. $3,360 C. $2,240 D. $1,400

C. $2,240

Q42) An apartment building has an effective income of $150,000. Its bills total $64,000, and depreciation is an additional $12,000. Interest payments on the loan total $40,000, and principal payments are $5,000. What is the property's pre-tax cash flow? A. $29,000 B. $34,000 C. $41,000 D. $46,000

C. $41,000

Q6) Which of the following is true of a homestead? A. A homestead interest can be conveyed by one spouse B. A homestead interest cannot be exempt from creditors C. A homestead interest is a form of legal life estate D. A homestead is any privately owned single-family residence

C. A homestead interest is a form of legal life estate

Q1) Which of the following ways of specializing is common in the real estate brokerage business? A. By type of mortgage financing required B. By years of experience in the business C. By type of property D. By background of client

C. By type of property

Q70) While a property is under a contract for deed, the buyer, or vendee, takes possession of the property and makes timely payments of principal and interest. At the end of the term, the vendee obtains a loan and uses the funds to pay off the vendor. Given these circumstances, what option does the seller have? A. He may cancel the agreement because of an improper financing arrangement. B. He may extend the vendee's lease term since timely payments were made. C. He may offer to repurchase the property after conveying title. D. He may exercise the right to retain the deposit as liquidated damages.

C. He may offer to repurchase the property after conveying title.

Q13) If a person dies with legal heirs and has left no valid will, what happens to real property owned by that person? A. It is taken by the state according to the process called escheat. B. It is probated according to the terms agreed to by the heirs. C. It is probated and passes to the heirs by laws of descent. D. It is conveyed to the highest bidder at a public auction.

C. It is probated and passes to the heirs by laws of descent.

Q16) In accordance with the statute of frauds, A. leases in excess of one year must be recorded to be enforceable. B. oral leases are not enforceable. C. a five-year lease must be in writing to be enforceable. D. an unwritten lease is fraudulent.

C. a five-year lease must be in writing to be enforceable

Q18) A master plan can be best described as A. a forecast of existing land use patterns in a market. B. a plat of subdivision preceding the design of a land use development. C. a fusion of land use laws and local land use objectives and strategies. D. none of the above.

C. a fusion of land use laws and local land use objectives and strategies.

Q8) A condominium estate is distinguished by A. ownership of a share in an association and a condominium lease on the owned unit. B. tenancy in common interest in airspace and common areas of the property. C. fee simple ownership of a unit and an undivided share of the common areas. D. fee simple ownership of an equal share of the entire property.

C. fee simple ownership of a unit and an undivided share of the common areas.

Q27) A major employer relocates, leaving many homes in an area vacant and unmaintained. This is an example of A. physical deterioration. B. functional obsolescence. C. incurable economic obsolescence. D. curable external obsolescence.

C. incurable economic obsolescence.

Q25) Highest and best use of a property is that use which A. involves the highest permissible structure and yields the best income. B. is economically feasible, and gives the developer the best return. C. is legal, physically and financially feasible, and most productive. D. complies with the area's master plan and is best for the community.

C. is legal, physically and financially feasible, and most productive.

Q57) A landlord agrees to pay a broker for procuring a tenant unless someone else finds the tenant first. This is an example of a(n) A. exclusive right-to sell agreement. B. exclusive agency agreement. C. open listing. D. net listing.

C. open listing.

Q78) To shift some of the risk inherent in recommending vendors to consumers, a licensee is advised to A. recommend only one well-known vendor and tell the consumer that the licensee vouches for that vendor. B. recommend only vendors who are willing to share their fee with the licensee. C. present a broad range of choices and allow the consumer to make the selection. D. recommend a different vendor to each consumer or client.

C. present a broad range of choices and allow the consumer to make the selection.

Q76) The risk management strategy that aims to decrease the probability or the severity of a potential loss is called A. risk retention. B. risk avoidance. C. risk reduction. D. risk transference.

C. risk reduction.

Q24) If rents are declining in office properties in a market, it is likely that A. unemployment is decreasing. B. the market is in equilibrium. C. supply exceeds demand for space. D. demand exceeds supply of space.

C. supply exceeds demand for space.

Q29) In evaluating a loan application, a mortgage lender is most concerned about A. the loan interest rate and loan term. B. the property location and the amount of the borrower's down payment. C. the applicant's financial capability and the value of the collateral. D. the applicant's credit history and background.

C. the applicant's financial capability and the value of the collateral.

Q79) When a licensee is sued by the Federal Trade commission, it is usually for A. acting without a license. B. failing to following correct renewal procedures. C. violating antitrust laws. D. violating fair housing laws

C. violating antitrust laws.

Q66) A family is looking for a home in a certain price range. The wife suggests several listings on the east side of town, and the agent agrees to show the family the suggested properties. En route to the targeted neighborhood, the agent drives a certain route to show the family certain retail services and two schools. What has this agent done wrong? A. He is liable for blockbusting. B. He has provided unequal services. C. He has steered the family. D. He has done nothing wrong.

D. He has done nothing wrong.

Q40) The taxable income from an investment property is estimated by using which of the following formulas? A. Cash flow minus depreciation B. Net income plus depreciation C. Net income minus debt service D. Net income minus interest and depreciation

D. Net income minus interest and depreciation

Q52) A buyer submits an offer to the seller. While the seller is considering the offer, the buyer calls and cancels the offer, saying the home was too expensive. The seller protests, claiming she was going to accept the contract. Which of the following is true? A. The buyer may not revoke the offer in such a short period of time. B. The seller may accept the offer, thus binding the buyer to a contract. C. The seller can offer to lower the price, thereby binding the buyer. D. The original offer is cancelled, and the protest means nothing.

D. The original offer is cancelled, and the protest means nothing.

Q72) The Real Estate Settlements and Procedures Act prohibits A. a broker from having any business relationship with an insurance company that is involved in the broker's transaction. B. a broker from pre-qualifying a buyer for a mortgage loan. C. a lender from requiring a deposit from a borrower for a tax and insurance escrow account. D. a lender from paying a fee to a broker for referring a borrower to the lender.

D. a lender from paying a fee to a broker for referring a borrower to the lender.

Q39) One investment advantage of owning a principal residence is that the owner may be able to A. deduct mortgage interest and principal. B. defer depreciation expenses. C. deduct capital gain when the property is sold. D. defer capital gain tax.

D. defer capital gain tax.

Q89) The U.S. Army Corps of Engineers A. classifies whether a waterway in Arizona is navigable or non-navigable B. ensures the safety of bridges on public highways in Arizona C. establishes standards for the licensing of engineers in Arizona D. ensures the safety of public highways in Arizona

D. ensures the safety of public highways in Arizona

Q28) Two important tasks in identifying value through the cost approach are A. estimating the cost of the land and its accrued depreciation. B. estimating the value of the improvements and the obsolescence of the land. C. estimating the cost and depreciation of the land and improvements. D. estimating the cost of the land and the depreciation of the improvements.

D. estimating the cost of the land and the depreciation of the improvements.

Q59) Under a special agency agreement, a broker is not authorized to A. schedule open houses. B. advertise the property using the name of the brokerage. C. discuss price adjustments with the principal. D. execute a contract for sale agreement.

D. execute a contract for sale agreement.

Q61) A broker and salesperson agree to a 40-60 commission split. This commission rate A. must be within guidelines set by state regulation. B. must be approved by the listing client. C. is probably the result of an agreement with other brokers. D. is probably a reflection of competitive commission rates.

D. is probably a reflection of competitive commission rates.

Q80) Unintentional misrepresentation is generally considered A. an accident that requires no punishment. B. the same as fraud. C. more serious than intentional misrepresentation because it demonstrates a lack of professional competence. D. less serious than intentional fraud but still a violation to be punished.

D. less serious than intentional fraud but still a violation to be punished.

Q46) The function of a board of equalization is to A. equalize millage rates among taxing districts. B. adjust ad valorem taxes in accordance with a household's income. C. adjust assessed values so that most property owners have nearly equal tax bills. D. minimize wide discrepancies of assessed values within the district.

D. minimize wide discrepancies of assessed values within the district.

Q63) Commingling is the practice of A. mixing deposits from multiple transactions in a single account. B. mixing agents' commissions with funds for operating expenses of the agency. C. appropriating client or customer deposits for use in the agency's business. D. mixing escrow funds with the broker's operating funds.

D. mixing escrow funds with the broker's operating funds.

Q58) A property owner wants to put $240,000 in the bank after selling a property and accounting for all expenses. A broker finds a buyer and sells the property for $280,000. Closing costs come to $10,000, not including the broker's commission. According to agreement, the remainder of the amount over $240,000 goes to the broker as commission. The listing agreement is probably a(n) A. exclusive right-to sell agreement. B. exclusive agency agreement. C. open listing. D. net listing.

D. net listing.

Q100) Dual agency in Arizona A. requires the buyer and seller to share equally in payment of the broker?s fee B. is not allowed if the broker?s fee is based on a percentage of the sales price C. is not allowed in Arizona D. requires the informed, written consent of a buyer and seller

D. requires the informed, written consent of a buyer and seller

Q32) An important function of the secondary mortgage market is to A. borrow funds from banks so the banks can make more loans. B. issue tax certificates and sell them to primary lenders. C. purchase pools of defaulted loans from lenders to keep them solvent. D. sell mortgage-backed securities in order to buy pools of loans.

D. sell mortgage-backed securities in order to buy pools of loans.

Q62) The primary jeopardy of overpricing a property is that A. the tax rate will be higher for the client. B. buyers are put at an unfair disadvantage. C. the agent stands to lose a commission. D. the client's expectations may not be achieved.

D. the client's expectations may not be achieved