RE Book question multiple choice

27. In Arizona, which of the following persons would need to be licensed as a real estate broker or salesperson

a. A residential leasing agent who collects rent on no more than one property on behalf of a building owner in any one working day and who is not paid on a commission basis b. A company that matches individuals from different parts of the country who want to exchange properties and that assists them in doing so c. An individual who is a property manager for one nonresidential property, who is employed by the owner or the owner's licensed management agent d. An executor under a will who sells the property of a decedent to settle the decedent's estate

46. When an employing broker has his or her license suspended, what effect does this have on the associate brokers and salespeople affiliated with this broker

a. Affiliates' licenses will be revoked, subject to reinstatement after one year. b. Affiliates' licenses will also be suspended. c. Suspension has no effect on the affiliates. d. Affiliates' licenses must be returned to the Arizona Department of Real Estate.

34. In Arizona, all of the following are requirements for obtaining a real estate broker's license EXCEPT

a, having successfully completed a minimum of 90 hours of approved real estate courses. b. being at least 18 years of age. c. having been actively engaged as a licensed salesperson for at least five years. d. being of good moral character.

85. A seller has no knowledge of any plumbing system problems with her property. In actuality, however, the pipes are seriously corroded and will soon need to be replaced. In the seller's property condition disclosure statement, when responding to whether the seller has any knowledge of plumbing system problems, she should respond

a. "yes." b. "no." c. "unknown." d. The seller is not required to respond to this question.

23. The maximum liability of the Real Estate Recovery Fund for the actions of a licensee in a single transaction is

a. $1,000. b. $30,000. c. $50,000. d. $100,000.

25. To avoid any additional assessments of licensees renewing their licenses, what must be the minimum balance of the Real Estate Recovery Fund as of June 30 of each year

a. $400,000 b. $600,000 c. $750,000 d. $800,000

1. A buyer has signed a purchase contract with a developer to have a new home constructed for him in the developer's community. If the buyer changes his mind, how many days may he take to rescind the contract

a. 0 b. 5 c. 7 d. 10

15. A complaint alleging illegal discrimination must be filed with the Arizona Attorney General within

a. 30 days. c. 1 year. b. 6 months. d. 2 years

22. Who may receive compensation from the Real Estate Recovery Fund

a. A broker who does not receive an earned commission b. A party to a real estate transaction that suffered financial damage because of a licensee's actions c. A buyer who pays a fee to a broker under a buyer agency agreement d. A cooperating broker who does not receive a promised commission split

7. According to the Arizona Revised Statutes, an unlicensed individual who engages in activities that require a real estate license is subject to which of the following penalties

a. A fine by the Arizona Department of Real Estate not to exceed $20,000 b. Imprisonment by the Commissioner c. Civil penalty or imprisonment or both d. Civil penalty not to exceed $5,000

36. Which of the following persons must have a real estate broker's license in order to transact business in Arizona

a. A person who owns a sixplex and personally manages the building, collects rents, and shows the apartments to prospective tenants b. A person who negotiates the sales of entire businesses, including their buildings and business equipment, for a promised fee c. The janitor of a large apartment building who shows apartments to prospective tenants, incidental to his or her regular duties d. A person who has his or her parents' written authority to negotiate the sale of the parents' residence

26. In Arizona, a broker commits a fraudulent act in connection with the sale of a property for a consumer on March 15, 2007. On March 30, the transaction closes. On November 1, the consumer sues the broker, alleging fraud. On December 20, the jury finds in favor of the consumer. When can the consumer receive payment from the Recovery Fund

a. After filing a complaint against the broker with the Department b. Within one year after filing a civil suit against the licensee c. Within five years after filing the suit against the licensee d. After notifying the Commissioner within five years of the event, winning a judgment, and then attempting to collect from the licensee

8. How are members of the Arizona Real Estate Advisory Board selected

a. Appointed by the governor for six-year staggered terms b. Appointed by the Commissioner of Real Estate for indefinite terms c. Elected by licensees every two years d. Elected in statewide elections every six

82. An airline pilot told a broker about some friends who were looking for a new home. The broker contacted the friends and eventually sold them a house. When may the broker compensate the airline pilot for this valuable lead

a. As soon as a valid purchase contract is signed by the parties b. Only after the transaction has closed c. Anytime after the funds are disbursed by the escrow company d. Never, unless the pilot holds an active real estate license

31. If they are engaging in real estate activities on behalf of another person, which of the following parties are exempt from the real estate licensing requirements

a. Attorneys-at-law b. Appraisers c. Corporations, partnerships, and limited liability companies d. Securities dealers

91. A real estate broker representing the seller knows that the property has a cracked foundation and that its former owner committed suicide in the kitchen. What must the broker disclose to a prospective purchaser

a. Both facts, as they impact the purchasing decision of the buyer b. Only the suicide, as it may tend to stigmatize the property for the buyer c. Only the cracked foundation, as it is material to the purchase decision d. Neither fact, as both are exempted under state law

35. A person successfully passed her real estate license examination on November 1, 2007. What is the latest date on which she may apply for a salesperson's license

a. December 31, 2007 b. May 1, 2008 c. November 1, 2008 d. December 1, 2008

69. Which of the following actions is NOT a violation of licensing law

a. Encouraging a seller to reject an offer because the prospective buyer is of a particular religious sect b. Placing a For Sale sign in front ofa house after receiving written permission from the owner todo so c. Advertising that individuals who attend a promotional presentation will receive a prize without also disclosing that they will also have to travel to a new subdivision site as well d. Advertising that a listed property is available as a "For Sale By Owner" property

44. What is the procedure that a salesperson must follow when the salesperson decides to terminate his or her affiliation with the employing broker

a. Give the broker an official letter of resignation that the broker can send to the Arizona Department of Real Estate. b. Do nothing as the broker is responsible for notifying the Department of Real Estate in writing of the change within ten days. c. Return his or her real estate salesperson license to the employing broker. d. Return his or her license along with a letter of resignation to the Arizona Department of Real Estate.

9. Which of the following statements regarding the Arizona Department of Real Estate is FALSE

a. The Commissioner is selected by the state association of REALTORS® b. The Commissioner makes and enforces the rules by which all real estate licensees must abide. c. The examinations that must be taken by all applicants for real estate licensing are administered by an independent testing service. d. The routine operation of the Arizona Department of Real Estate is administered by executive staff hired specifically for that purpose.

78. Several weeks after a closing, an associate broker received a thank-you letter and a nice bonus check from the seller of the house. The associate broker cashed the check because he felt it was earned. In this situation, which of the following statements is TRUE

a. The associate broker may accept the bonus because he is licensed as an associate broker. b. Accepting the money is allowed if more than 30 days have elapsed since the closing. c. The associate broker may accept the money if his broker permits him to do so. d. Accepting the money is a violation of Arizona Department of Real Estate rules.

71. A seller told a broker that she wanted to clear $50,000 when she sold her house. The broker accepted the listing and sold it for $160,000. He gave $50,000 to the seller and kept the rest for himself. Which of the following is correct

a. The broker has not violated his fiduciary duty because he has complied with the wishes of his client. b. The broker's compensation has exceeded guidelines set by the marketplace. c. The broker accepted an illegal net listing. d. As the seller's agent, the broker had a duty to sell the house for as much as possible.

63. A broker decides to "sweeten" a listing for a property in the multiple listing service by making a unilateral offer of subagency. Is the broker's action acceptable

a. Yes, because Arizona law permits the creation of subagency relationships only through multiple listing services b. Yes, because a subagency relationship may be created by either a unilateral offer in a multiple listing service or through a specific agreement between parties c. No, because subagency is illegal under Arizona real estate licensing law d. Yes, because subagency relationships in Arizona may be offered but are not created unless there is a specific agreement between the parties

70. A broker has obtained a purchase contract between a seller and a buyer. If the broker provides the buyer's lender with a second contract showing the sales price of the property higher than the actual price in the first contract, the

a. broker has done nothing wrong as long as the appraisal substantiates this price. b. buyer is likely to receive an interest rate break. c. broker can be charged with trying to commit fraud against the lender. d. buyer can receive a higher mortgage amount.

67. A licensed salesperson may receive commissions or bonuses that he or she earned before leaving a broker's employment only from the

a. broker they are currently working for. b. principal through a licensed escrow company. c. employing broker they worked for at the time the commissions or bonuses were earned. d. former employing broker through the new employing broker.

83. A broker wants to list a very desirable property, but there is a lot of competition from other brokers who would also like to list the property. The broker offers the seller the following inducement to sign his listing agreement: "I'll buy your property if it doesn't sell within 90 days." If this stipulation is incorporated in their listing contract, the broker must do all of the following EXCEPT

a. buy the property at the listed price at any time during the 90 days. b. market the property as if no special agreement existed. c. show the seller evidence of the broker's financial ability to buy the property. d. show the seller written details of the broker's plan before any guaranteed sales contract is signed.

89. Six months after a buyer bought a house, the roof leaked during a rainstorm. When the house was listed, the seller told the broker that the roof leaked, but they agreed not to tell any prospective buyers. The broker claims that the buyer did not ask about the roof. Given these facts, the buyer

a. can sue the seller and the broker for the nondisclosure. b. can sue the seller only for the nondisclosure under contract law. c. can sue the broker only for the nondisclosure under licensing law. d. cannot do anything because the leaking roof could have been discovered by a home inspection.

100. An unlicensed real estate assistant may perform all of the following activities EXCEPT

a. compute the amount of commission checks. b. assemble the required documents for a closing. c. explain contract provisions to prospective buyers. d. prepare and distribute flyers and promotional materials.

77. A real estate salesperson may lawfully be compensated by

a. either the buyer or the seller in the transaction. b. his or her employing broker only. c. any party to the transaction or that party's representative. d. a licensed real estate broker or associate broker only.

72. In Arizona, real estate commissions are

a. established by law. b. set by the Arizona Department of Real Estate. c. determined by local brokerage organizations. d. negotiated between the principal and the broker.

93. The Realty Company enters into agency agreements with both a seller and a buyer. The seller and the buyer sign a dual agency consent agreement. The salesperson with the Realty Company has been working with the buyer. Legally, the salesperson may

a. provide the comparable market data to the seller that may have been provided to the buyer by another course. b. provide the buyer's financial qualifications to the seller. c. disclose to the buyer that the seller will accept less than the listing price. d. disclose to the seller that the buyer will pay more than the offering price.

74. In Arizona, brokers and salespeople who are not attorneys may NOT

a. recommend to buyers how they should take title to a property. b. fill in blanks on preprinted form contracts customarily used in their community. c. suggest additional language to be added to a preprinted sales contract by a buyer or seller. d. explain the significance of specific preprinted contract clauses to a buyer or seller.

59. A broker took a listing for a small office building. Because the property is in excellent condition and produces a good, steady income, the broker's salesperson has decided to purchase it as an investment. If the broker's salesperson wishes to buy this property, the salesperson must

a. resign as the broker's agent and make an offer after the owner has retained another broker. b. have some third party purchase the property on the salesperson's behalf so that the owner does not learn the true identity of the purchaser. c. obtain permission from the Arizona Department of Real Estate. d. inform the owner in writing that he is a licensee.

75. Once he or she has obtained a listing, a broker is obligated to

a. set up a listing file and number it in compliance with the Arizona real estate licensing law. b. place advertisements in the local newspapers showing the availability of the property. c. cooperate with other real estate brokers wishing to participate in the marketing of the listed property. d. present all offers regardless of their source to the seller as soon as possible.

3. In Arizona, the real estate licensing law is administered by the

a. state Attorney General's office. b. Arizona Department of Real Estate c. Arizona Association of REALTORS. d. Department of Housing and Urban Development (HUD).

87. A salesperson represents the seller in a transaction. When prospective buyers ask to look at the property, the salesperson must

a. tell them that they must first enter into a buyer representation agreement with another licensee. b. inform them in writing that the salesperson represents the seller's interests. c. inform them, either orally or in writing, that the salesperson represents the seller's interests. d. show them the property without making . any disclosures about the salesperson's relationship with the seller.

56. In Arizona, a broker may collect a commission from both the seller and the buyer if

a. the broker holds an Arizona real estate license. b. the buyer and seller are related by blood or marriage. c. both parties give their informed written consent to the dual compensation. d. both parties are represented by attorneys.

29. Under Arizona licensing law, a corporation, partnership, or limited liability company will be granted a license only if

a. the designated broker for the entity possesses a current real estate license. b. every officer, partner, or member actively participating in the business has a broker's license. c. all appropriate documents are filed with the Arizona Secretary of State. d. the entity has paid a one-time fee to the Real Estate Recovery Fund.

4. The Arizona Real Estate Commissioner and the members of the Real Estate Advisory Board are appointed by

a. the governor. b. the attorney general. c. the state association of REALTORS®. d. the real estate licensees.

62. A broker enters into a listing agreement with a seller. Another broker, who has been working with a buyer, learns of the property through the multiple listing service. Typically, the second broker would represent

a. the seller as a subagent. b. the buyer as an agent. c. the buyer as a subagent. d. neither the buyer nor the seller.

32. The office manager for a local real estate firm is responsible for the following activities: coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. The office manager is

a. violating the licensing law. b. required to have a broker's license. c. required to have a salesperson's license. d. exempt from real estate licensing requirements.

92. When a broker represents a seller, the latest that the broker can make agency disclosure to the buyer is

a. when the buyer first meets the broker in person. b. when the buyer first visits the property. c. when the purchase offer is being written. d. when the buyer is being informed of the seller's acceptance of the offer.

19. If an aggrieved person is awarded a judgment against a real estate licensee for violating Arizona licensing laws and rules, which of the following correctly states the aggrieved party's rights regarding the Real Estate Recovery Fund

a. He or she has the right to immediately apply to the Commissioner for payment from the Recovery Fund for the full judgment amount plus court costs and attorney's fees. b. He or she has the right to a maximum award in the amount of $50,000 from the Recovery Fund, including court costs and attorney's fees. c. He or she has the right to seek satisfaction from the licensee in a private civil action after being compensated from the Recovery Fund. d. He or she has the right to payments from the Recovery Fund with maximums of $30,000 per transaction and $90,000 per licensee.

17. A landlord has a "no pets" policy in his apartment building. If a visually impaired person who owns a guide dog wants to rent an apartment from the landlord, which of the following statements is TRUE

a. If the landlord's "no pets" policy is applied uniformly in a nondiscriminatory manner, it may be legally applied to the guide dog as well. b. The Arizona Civil Rights Act specifically prohibits the landlord from refusing to rent the apartment to the visually impaired person on the basis of the owner's "no pets" policy. c. Under the Arizona Civil Rights Act, the landlord may not discriminate against the visually impaired person on the basis of a"no pets" policy, but the landlord may require the tenant to pay a pet deposit or an additional damage fee. d. The Arizona Civil Rights Act does not address the issue of guide, hearing, or support dogs or other types of assistance or companion animals.

65. A buyer who is a client of the broker wants to purchase a house that the broker has listed for sale. Which of the following statements is TRUE

a. If the listing salesperson and selling salesperson are two different people, there is no problem. b. The broker should refer the buyer to another broker to negotiate the sale. c. The seller and buyer must be informed of the situation and agree in writing to the broker's dual representation. d. The buyer should not have been shown a house listed by the broker.

99. What is the legal relationship of licensees to their employing broker

a. Independent contractors b. Agents of the principal c. Employees of the principal d. Employees of the broker

6. The Arizona Department of Real Estate must undertake an investigation of a licensee based on which of the following situations

a. Its own initiative b. A random selection of licensees c. A motion from Advisory Board members d. A verified written complaint submitted by a consumer

38. In Arizona, a real estate license will expire

a. March 31 of every odd-numbered year. b. June 30 of every even-numbered year. c. at the end of the month every two years after the date of the issuance of the license. d. on the birth date of the licensee every two years after the date of the issuance of the license.

81. Under the terms of a purchase contract, the buyer is required to obtain a termite inspection report. The buyer requests that the salesperson order one. The salesperson does so, knowing she will receive a referral fee from the pest control company. Is this a violation of the license law

a. No, if the fee is less than $25. b. No, if the fee is disclosed, either orally or in writing, to the parties to the contract. c. Yes, because a licensee may not receive such a fee without written disclosure to and consent of the parties to the contract. d. Yes, but such compensation may only be paid by the buyer to the salesperson.

51. A real estate company has entered into agency agreements with both a seller and a buyer. The buyer is interested in making an offer on the seller's property. Can this occur

a. No, the real estate company would then be a dual agent b. Yes, as long as written agency agreements have been entered into with both parties c. Yes, if the seller has agreed to pay the commission d. Yes, if the seller and buyer both give their informed written consent to dual agency

20. If a broker violates the licensing law that results in a financial loss by a consumer, how long does the consumer have to file a lawsuit and notify the Real Estate Commissioner to protect the consumer's right to collect from the Real Estate Recovery Fund

a. One year after the alleged violation occurred b. Two years after the alleged violation occurred c. Three years after the alleged violation occurred d. Five years after the alleged violation occurred

18. Which of the following is NOT a protected class under the Arizona Civil Rights Act

a. Race b. Handicap c. Sexual preference d. National origin

55. What types of agency relationships are recognized in Arizona

a. Seller agency, buyer agency, and undisclosed dual agency b. Seller agency, disclosed dual agency, and subagency c. Seller agency, buyer agency, disclosed dual agency, and subagency d. Seller agency, buyer agency, and full fiduciary agency

42. Which of the following is a requirement to obtain a real estate salesperson's license in Arizona

a. Successful completion of a minimum of 12 credit hours of real estate law, investments, finance, and appraisal b. An associate degree or certificate in real estate from an accredited college, university, or proprietary school c. U.S. citizenship and Arizona residency d. Successful completion of a minimum course of 90 classroom hours in general principles of real estate

43. Which of the following situations satisfies the biennial continuing education requirement for real estate licensees in Arizona

a. Taking two 12-hour courses on topics appropriate to the management of a real estate office, offered by a local community college b. Taking four six-hour courses on unspecified topics offered by an approved continuing education sponsor c. Retaking and passing the licensing exam d. Obtaining the equivalent subject matter hours in a prelicensing course taken since the last renewal

58. A competitive market analysis (CMA) is used to show an owner the prices paid for similar properties in the area that have been sold recently. Which of the following statements is TRUE

a. The CMA is an appraisal. b. Only the broker may prepare a CMA. c. Only licensed or certified appraisers can prepare CMAs. d. CMAs are not appraisals if they are prepared by real estate licensees.

10. In Arizona, all of the following could result in a fine or the suspension or revocation of a real estate broker's license EXCEPT

a. being convicted of a felony. b. advertising in a newspaper that the licensee is a member of the Arizona Association of REALTORS® when in fact he or she is not. c. depositing escrow money in his or her personal checking account. d. agreeing with a seller to accept a listing for an above-market commission rate.

16. A broker is convicted on May 1 of possession and distribution of a controlled substance. Both the crime and the conviction took place out of state. On June 15, the broker calls the Arizona Department of Real Estate and leaves a message informing the Department of the conviction. Based on these facts, which of the following statements is TRUE

a. The broker has properly informed the Department of Real Estate within 60 days after the conviction, and the broker's license is in good standing. b. Both the conviction and the broker's failure to notify the Department of Real Estate within ten days violate Departmental rules. c. Because the conviction did not occur in Arizona, it is not evidence of improper or unprofessional conduct. d. The conviction is evidence of both improper dealing and fraud.

86. When a broker is listing a home for sale and asks the seller to complete a property condition disclosure statement, which of the following statements is TRUE

a. The disclosures are optional, and sellers may avoid liability by refusing to make any property condition disclosures. b. The standard disclosures cover a narrow range of structural conditions only. c. The broker should not give the seller any advice regarding which property conditions to disclose and which to ignore. d. Seller disclosure of known material and adverse property conditions is required by the Arizona Revised Statutes.

60. A real estate licensee has signed an employment contract with a tenant who is looking for an apartment to rent. The licensee does not charge a fee to prospective tenants; rather, the licensee receives a commission from landlords. The licensee tells a landlord that the prospective tenant could probably pay a somewhat higher rent than the landlord is asking. Which of the following statements is TRUE

a. The licensee owes a fiduciary to the landlords who pay the commission. b. The licensee's disclosure to the landlord was appropriate under these circumstances. c. The licensee's disclosure violated the fiduciary duty owed to the tenant. d. Because the licensee is not charging a fee to prospective tenants, the licensee has complied with Arizona agency law.

96. An affidavit of disclosure would have to be provided by the seller to the buyer in which of the following situations

a. The property being purchased is a 20-acre parcel of land outside the city. b. The property being purchased is five acres of county-zoned commercial property. c. The property being purchased is a residential lot in a subdivision. d. The property being purchased is two time-share intervals.

76. A seller listed his house for sale with a broker on February 1. The listing agreement was to last five months. In April, the seller decided that the house was no longer for sale. Which of the following statements is TRUE

a. The seller has canceled the agreement and must pay the broker the agreed commission. b. The seller has withdrawn the broker's authority to market the property. c. The seller is required by law to leave his house on the market until June. d. The Arizona Department of Real Estate will decide if the seller's action is justifiable.

40. What are the continuing education requirements for real estate brokers and salespersons in Arizona

a. There are no continuing education requirements for real estate licensees. b. A minimum of 12 hours of courses on any topics approved by the Department of Real Estate c. A minimum of 18 hours of approved home-study or correspondence courses on law, rules, and ethics d. A minimum of 24 hours of courses on topics required and approved by the Department of Real Estate

39. A licensee who allows his or her license to expire has how long to reinstate the license without a monetary penalty

a. There is no time provided for the renewal of an expired license without a late charge. b. Up to 30 days after the license expires c. No more than 90 days after the license expires d. One year after the license expires

98. Once a buyer is provided with an affidavit of disclosure by the seller, how long can the buyer take to rescind the contract

a. Three days b. Five days c. Seven days d. Ten days

21. Which of the following BEST describes the purpose of the Real Estate Recovery Fund

a. To ensure that Arizona real estate licensees have adequate funds available to pay their licensing and continuing education fees b. To provide a means of compensation for losses suffered by individuals as a result of the acts of a licensee who has violated the licensing law or committed any other illegal acts in relation to a real estate transaction. c. To protect the Arizona Department of Real Estate from claims by individuals that have suffered a monetary loss as the result of the action of a licensee in violating the licensing law or committing other illegal acts related to a real estate transaction d. To provide an interest-bearing source of revenue to fund the activities of the Arizona Department of Real Estate

45. A licensed salesperson may hold a concurrent real estate license with more than one Arizona broker under which of the following circumstances

a. Under no circumstances b. With the permission of his or her sales manager c. With the written consent of each of the multiple brokers being represented d. With the permission of the Arizona Department of Real Estate

84. In which of the following situations is a seller required to provide a buyer with a written property condition disclosure statement

a. When the buyer is not assisted by a licensed real estate agent b. When the seller has not resided on the property in the past year c. When the property being sold is commercial property d. When the buyer makes it a contingency of the purchase contract

13. Which of the following actions by a real estate licensee would result in the automatic termination of his or her license

a. When the licensee fails to perform as promised in a guaranteed sales plan b. When the Department is ordered by a court to pay from the Recovery Fund for the actions of the licensee c. When the licensee commingles others' money or property with his or her own d. When the licensee fails to provide information requested by the Department within 30 days of the request as part of a complaint or audit procedure

95. When property is subject to public reporting requirements, when must a copy of the public report be given to prospective buyers

a. Within 24 hours after signing the purchase offer b. Upon the seller's acceptance of the buyer's offer to purchase c. Within seven days after signing a purchase contract d. Prior to the buyers signing a purchase contract with the seller

97. When must a buyer be provided with the affidavit of disclosure from the seller

a. Within five days after acceptance of the buyer's offer b. No more than ten days after the opening of escrow c. During the buyer's inspection period d. At least seven days before the close of escrow

68. Three weeks before N begins his real estate prelicensing classes, he offers to help his neighbor sell her house. The neighbor agrees to pay N a 5 percent commission. An offer is accepted while N is taking the class and closes the day before N passes the examination and receives his salesperson's license. The neighbor refuses to pay N the agreed commission. Can N sue to recover payment

a. Yes, because N was formally enrolled in a course of study intended to result in a real estate license at the time an offer was procured and accepted. b. No, because a real estate salesperson must have a permanent office in which his or her license is displayed in order to collect a commission from a seller. c. Yes, because, while the statute of frauds forbids recovery on an oral agreement for the conveyance of real property, Arizona law permits enforcement of an oral commission contract under these facts. d. No, because licensing law prohibits lawsuits to collect commissions unless the injured party is a licensed broker or salesperson and the license was in effect at the time the agreement was reached.

57. A buyer does not wish to enter into an agency relationship with a salesperson from Beta Realty. However, she would like the salesperson to show her a house listed with Alpha Realty. Can the Beta Realty salesperson show Alpha's listing to the buyer

a. Yes, if Alpha Realty obtains the seller's consent to show the house b. Yes, if Alpha Realty obtains Beta Realty's consent to subagency c. Yes, if the buyer verbally agrees to buyer agency d. No, the Beta Realty salesperson cannot show Alpha Realty's listing to this buyer.

53. A real estate salesperson has been working with buyers. After helping them negotiate for their dream home, the buyers ask the salesperson if she can help them secure a mortgage. The salesperson knows a lender that pays a fee for referring purchasers to him. Should the salesperson refer the buyers to this lender

a. Yes, if the salesperson does not request or receive a finder's fee b. Yes, if the salesperson and the buyers have previously entered into a written buyer agency agreement c. Yes, if the salesperson discloses the finder's fee to the sellers d. Yes, if the lender offers the market's best interest rates and terms

47. A broker intends to open a branch office in a neighboring town. The broker applies for a branch office license, giving the office a name that clearly identifies its relationship with his main office. The broker names a licensed real estate salesperson as the branch office manager. Given these facts, will the broker receive approval for the branch office

a. Yes, the broker has fully complied with the requirements of the license law. b. No, under the license law, brokers cannot have branch offices in more than one municipality. c. Yes, by naming the salesperson as the branch manager, the broker is in compliance with the requirement that a broker may be in direct operational control of only one office at a time. d. No, the manager of a branch office must also be a licensed real estate broker.

88. Five years ago, Unit 5B in a condominium project was the site of a brutal and highly publicized murder. The unit was sold to an elderly woman who contracted the AIDS virus in a blood transfusion and died in the unit last year. As the agent for the woman's estate, what are your disclosure responsibilities to prospective purchasers of Unit 5B

a. You must disclose both the murder and the AIDS-related death. b. You are specifically prohibited by law from disclosing either event. c. You are specifically relieved of liability for nondisclosure of either event by Arizona licensing law. d. You do not need to disclose the AIDS-related death, but you must disclose the murder.

49. When a licensed broker changes his or her place of business,

a. a new license will be issued by the Arizona Department of Real Estate immediately. b. his or her license may be revoked if the Arizona Department of Real Estate is not notified. c. a new license will be issued for a full term. d. the new address must be approved by the board.

80. All of the following are necessary for a broker to be entitled to a commission ЕХСЕРТ

a. an active real estate license. b. a signed employment contract between the broker and his or her client. c. a signed purchase contract between the seller and the buyer. d. a closing of the transaction.

73. Real estate commissions earned by a broker in real estate transactions

a. are determined by agreement between the broker and his or her principal. b. may be shared with an unlicensed person, provided that this person aided the broker in bringing the buyer and seller together. c. may be deducted from the earnest money deposit and claimed by the broker as soon as the buyer and seller execute the purchase contract. d. are based on a schedule of rates set by the Arizona Department of Real Estate.

64. A brokerage's relationship with a buyer or seller as agent or dual agent must be determined, and all necessary agreements executed

a. at any time after a purchase and sale agreement is executed by the parties. b. at the time of the first substantial business contact. c. no later than the time a purchase contract is prepared. d. no later than the closing.

11. The Arizona Department of Real Estate has the power to revoke a salesperson's license if the salesperson

a. attempts to represent a real estate broker other than his or her employing broker. b. attempts to represent a buyer through his or her employing broker. c. enters into an exclusive listing contract on behalf of his or her employing broker. d. deposits a buyer's down payment in a neutral trust account.

28. Under Arizona law, any person who acts as a securities dealer must

a. be appropriately licensed as a securities dealer. b. have his or her securities license endorsed by the Arizona Department of Real Estate. c. be approved by the Arizona Secretary of State. d. be approved by the Securities and Exchange Commission.

33. In Arizona, applications for a real estate license must

a. be completed before they are submitted to the Department. b. be completed before an applicant may take the state examination. c. be made before the 15th of each month. d. be accompanied by letters of reference attesting to the applicant's character.

90. A real estate licensee must make an agency disclosure to prospective purchasers or tenants

a. before they are shown any properties. b. at an open house. c. at the close of escrow. d. before any purchase offers or leases are prepared.

12. In Arizona, a broker may have his or her license suspended or revoked for all of the following actions EXCEPT

a. being declared mentally incompetent. b. depositing earnest money into the brokerage's trust account. c. helping another person cheat on the licensing examination. d. displaying a For Sale sign on a property without the owner's written consent.

48.An associate broker is not satisfied with her present real estate company and has decided to become affiliated with another.Before the associate broker can begin actively selling for the new company, the

a. first broker must transfer the associate broker's license to the new company. b. new broker must notify the Arizona Department of Real Estate of the change and send in the proper forms and fees. c. associate broker must take her license to the new brokerage and notify the Arizona Department of Real Estate within three days of the transfer to a new location. d. associate broker's license, along with the proper fee and hire form signed by the new broker, must be sent to the Arizona Department of Real Estate and the old license returned

66. In Arizona,the agency relationship between a broker and a principal, as in a listing agreement, is

a. general. b. universal. c. special. d. under a power of attorney.

61. A licensed salesperson obtains a listing. Several days later, the salesperson meets prospective buyers at the property and tells them, "I am the listing agent for this property, and so I'm very familiar with it." Under these circumstances, the salesperson

a. has failed to disclose properly his or her agency relationship to the buyers. b. has properly disclosed his or her agency relationship with the seller. c. has created a dual agency, which is a violation of Arizona licensing law. d. is in violation of Arizona license law because the listing belongs to the broker.

37. An applicant for a real estate license in Arizona must

a. have completed at least two years of college-level education. b. be at least 21 years old at the time of their license application. c. be given a hearing if the application is denied due to a felony or misdemeanor convictions. d. show proof of passing the license examination any time up to 24 months prior to submitting the application.

79. In real estate sales transactions that a broker negotiates, the broker is NOT required to

a. inform the buyer of his or her personal opinion of the condition of the seller's title to the property. b. make sure that the written purchase contract includes all the terms of the parties' agreement. c. make sure that the closing statement is accurate and that a copy of it is delivered to both buyer and seller. d. keep copies of all documents involved in the transaction in his or her files for five years after the date the transaction was closed.

52. A seller's listing agreement with a broker has expired, and subsequently the seller decides to list with a different brokerage firm. The original listing agent now has a buyer interested in the seller's property. The original listing agent

a. is a dual agent. b. cannot disclose to the buyer offers received on the seller's property while it was listed with him. c. cannot disclose information about the physical condition of the property to the buyer. d. cannot represent the buyer.

50. A licensed broker procures a ready, willing, and able buyer for his seller-principal. The seller accepts the buyer's offer in writing and the buyer is notified of the acceptance, but the seller experiences a change of heart and withdraws the acceptance. In this situation, the broker

a. is entitled to collect a commission. b. is without recourse because the transaction was never completed. c. may sue the buyer. d. may retain the deposit as commission.

94. When a broker has taken a listing, the fiduciary duties of agency and the Commissioner's Rules require that the broker

a. keep all information that the seller has provided confidential. b. disclose everything that the seller tells him or her. c. disclose all material information that might affect the price even though the buyer does not ask for it. d. disclose any personal information that the broker obtains on the seller to the buyer.

54. In order for a listing salesperson to receive a commission for a property sold during the term of a listing, he or she must meet all the following requirements EXCEPT be

a. licensed when the listing is signed. b. employed by a licensed broker when the listing is signed. c. employed by the listing broker when the contract of sale is signed by the buyers and sellers. d. employed by the buyer's broker when the contract is signed.

24. Whenever the Arizona Department of Real Estate is required to satisfy a claim against a licensee with payment from the Real Estate Recovery Fund, the

a. licensee may continue engaging in real estate activities under the Department's direct supervision. b. licensee must repay the soul amount plus license will be reinstated. c. aggrieved party may later collect additional damages by forcing the sale of any property newly acquired by the defendant-licensee. d. licensee's license is automatically terminated.

14. A person who believes that he or she has been illegally discriminated against may file a complaint with the

a. local Board of REALTORS® b. local homeowners' association. c. Arizona Department of Real Estate. d. state Attorney General or HUD.

5. The Arizona Real Estate Commissioner has the authority to

a. make and enforce the rules by which all real estate licensees must abide. b. compose the examination questions on the state exam. c. administer the examinations given at the testing sites. d. enact the laws that govern real estate licensees.

30. "Engaging in the real estate business" aunsists of acting for another and for a fee in all of the following activities EXCEPT

a. managing real estate. b. selling a mobile home. c. selling real estate. d. collecting rent for the use of real estate.

41. The on-site property manager for Acme Apartments is responsible for negotiating leases solely for these apartments. In this situation, the on-site manager

a. must have a salesperson's license. b. must have a broker's license. c. is exempt from the licensing requirements. d. is violating the license law.

2. All of the following proposed projects would be subject to the public reporting requirements of the Real Estate Licensing Law EXCEPT a

a. new home community planned for 68 patio homes. b. time-share project scheduled to be constructed in Mexico. c. condominium project to be built with 42 commercial units. d. rural project of 16 40-acre parcels.