Arizona Exam - Missed Questions on Practice Exam

Which of the following is a triggering term when used in advertising financing?

"10% Down"

Darren has been found guilty of four violations relating to fraud in the practice of real estate activities, and has been levied civil penalties. If each violation has been assigned the maximum civil fine amount, how much will Darren be fined?

$1,000 $10,000 $20,000 $4,000 *The maximum civil find per license law violation is $1,000, so if Darren is fined the maximum amount per violation, he would be fined $4,000.

If the education revolving fund exceeds ______ at the end of any fiscal year, the excess is transferred into the state's general fund.

$10,000 $25,000 $50,000 $60,000

After operating the firm for 17 years, Trethlon Manufacturing just sold its entire operation for $5.7 million. The adjusted purchase price was $3.9 million. While the corporation ran the business, it spent $970,000 on capital improvements. Real estate commissions and other costs of the sale were $358,000. What is Trethlon's capital gain?

$472,000 Trethlon's adjusted basis in the property is $3,900,000 + $970,000 + $ 358,000 = $5,228,000. Then, $5,700,000 - $5,228,000 = $472,000.

Seller Walt has an agreement for sale with buyer Jessie, who's agreed to buy Walt's property just outside Prescott. Two years later, Jessie defaults on the loan. He's paid Walt $75,000 of the $100,000 purchase price and still owes 25%. Walt is allowed to start forfeiture proceedings ______ after Jessie's first missed payment.

120 days 60 days Immediately Nine months *Since Jessie has paid more than 50% of the original purchase price, Arizona law doesn't allow Walt to start the forfeiture process until Jessie's been in default for nine months.

Homeowners who don't agree with the county assessor's valuation of their property may file a petition within ______ days of their notice's mailing date.

14 30 45 60 *Homeowners have 60 days from the date their assessment notice is mailed to file an appeal if they don't agree with the assessor's valuation of their property. The assessor will render a final decision regarding the petition by August 15.

Upon the termination of the property management agreement the property management firm must return all owner monies remaining in property accounts except for money needed to pay obligations related to the property during the term of the property management agreement. The money must be returned to the owner within _____.

14 days 14 days, excluding holidays 30 days 35 days *Once a property management agreement is terminated, the property manager has 35 days to reimburse any money remaining in the property management accounts maintained for the owner, except for money needed for unpaid obligations incurred during the property management agreement term.

The Arizona Environmental Quality Act of ______ created the Arizona Department of Environmental Quality.

1971 1986 1997 2011

Which of these is a central element of an antitrust violation?

A contract Customer relationships High stakes Interstate dealings *Antitrust involves a contract and conspiracy among competitors.

Freddie Mac is ______.

A government entity A government-sponsored enterprise A private entity A public-private partnership *Like Fannie Mae, Freddie Mac is a government-sponsored enterprise (GSE).

Jimmy is a real estate investor who owns several rental properties in the area. After the economy took a turn, he was relying on TRA 86 to be able to deduct some of his losses. He is active in the management of the properties and his taxable income is $90,000. What is the maximum deduction Jimmy can claim on his taxes to make up for his losses on those rental properties?

A. $10,000 B. $100,000 C. $25,000 D. $35,000 *TRA 86 says that the first $25,000 of losses from rental properties can be deducted from an investor's taxes, provided the investor is active in the management and operation of the rental properties, and has a taxable income of $100,000 (or less).

What is an accident potential zone in Arizona?

A. A 25-mile radius surrounding an airport or military facility B. Areas prone to dust storms C.Areas surrounding runways and military facilities that are incompatible with land uses D. Areas that are rated as violent or susceptible to gang influence as determined by ADRE *Accident potential zones in Arizona are areas surrounding runways and military facilities that are incompatible with land uses involving high concentrations of people.

After Arizona landlord Roberto sent his former tenant, Brenda, an itemized list of the deductions he's taken from her security deposit, along with a check for the remaining deposit that's due to her, she contacted him to dispute his findings. She insists he cannot deduct the $200 he did for normal wear and tear on the apartment, and wants it returned to her. Which of the following is true of this situation?

A. A claim surrounding "normal wear and tear" is one for small claims court in Arizona, especially when that claim is for less than $500. B. Brenda is correct. Landlords may not charge tenants for normal wear and tear. Roberto must refund the $200 to Brenda, plus an extra $400 in damages. C. Landlords are only permitted to charge 50% of costs for normal wear and tear, so Roberto may charge Brenda only up to $100 for these costs. D. Roberto was within his legal rights to deduct that money from Brenda's security deposit. *If a landlord doesn't comply with requirements regarding the list and money, or otherwise wrongfully withholds money, the tenant may recover the property and money due to the tenant, along with damages equal to twice the amount that was wrongfully withheld.

Which of the following is an example of constructive eviction?

A. A landlord locks a tenant out of her unit after she fails to pay her rent for three months. B. A tenant chooses not to renew a lease when the term expires and moves out. C. tenant dies. D. A tenant moves out of the apartment after repeated unsuccessful requests to the landlord to repair the broken water heater. *A constructive eviction occurs if a tenant vacates the property because the landlord failed to uphold the warranty of habitability.

Which of the following isn't required to be filed with the Arizona Department of Real Estate as part of the timeshare public report application?

A. A statement confirming buyers are not required to pay taxes affecting the property B. The business organizational chart and proof of business operation for at least one year C. The declaration of dedication filed with the state of Arizona D. The property covenants owners are required to comply with

Elaina and Allen just purchased a home using a deed of trust. Which of the following is most likely true about their home loan?

A. A trustee will hold title until the loan is paid. B. Their transaction is secured with a mortgage as well. C. The lender will hold the mortgage, while a trustee will hold the deed of trust until their loan is paid off. D. The lender will hold the title until the loan is paid off. *When a deed of trust secures a loan, a trustee holds the title until the loan is paid. Because the right to sell in the event of a default is part of the deed of trust's language, a non-judicial foreclosure may be used.

Which of the following statements about real estate advertisements in Arizona is true?

A. All advertising must be under the supervision and approval of a designated broker. B. Associated licensees must include the name of their designated broker in all advertisements for property or services, without exception. C. Classified ads for property sales don't need to identify the representing broker or company name due to space limitations. D. Only designated brokers may advertise real estate services. *Arizona administrative code requires all real estate advertisements to be under the supervision and approval of a designated broker.

Which of the following statements about transaction records retention in Arizona is true?

A. All escrow and transaction records may be retained off-site or at the designated broker's office. B. All escrow and transaction records must be retained at the designated broker's office for six years. C. Escrow and transaction records related to transactions must be maintained at the designated broker's office. D. Escrow records three years old and newer must be maintained at the sponsoring broker's office.

Which of the following statements about material facts is true?

A. All material facts are related to physical conditions. B. All parties considering a property would regard each material fact in the same way. C. A material fact may have more or less effect on a buyer based on the buyer's needs and values. D. Material facts are only those that can be easily seen or discovered. *Information is material if it affects a buyer's decision to buy a given property. Different information will be weighed differently based on the buyer.

Which federal act makes it illegal to send unsolicited commercial solicitations via fax without the recipient's permission or an established relationship?

A. Anti-Telemarketer Act of 2000 B. CAN-SPAM Act of 2003 C. Do Not Call Implementation Act of 2003 D. Junk Fax Prevention Act of 2005 *Under the Junk Fax Prevention Act of 2005, it's illegal to send an unsolicited commercial message via fax unless the sender has permission from the recipient or an established business relationship with the recipient.

Which of the following situations is an example of a non-agency relationship?

A. Dutton was previously a licensee. He's selling his home, and he wants Wanda, who's currently licensed, to assist him with the paperwork. B. Kendra represents Steven in the sale of his home by helping him complete the necessary paperwork to make his offer. C. Licensee Alexa works closely with her buyer clients' lender to be sure the lender has all information needed to approve the loan. D. Licensee Ingrid helps her neighbor Jeremy spruce up his house before Jeremy's agent holds an open house. *A non-agent, also referred to as a transaction broker, may assist a customer with ministerial tasks.

What can Arizona homeowners use the homestead exemption to do?

A. Exempt part of the value of their primary residence from seizure for payment of debts B. Exempt their home from foreclosure C. Reduce the amount of property taxes they pay D. Reduce the amount of state income taxes they pay *The Arizona homestead exemption allows homeowners to exempt up to $250,000 of their primary residence's (homestead) value from seizure for payment of certain types of debts, but not foreclosure.

Which statement most accurately describes the role and function of Ginnie Mae in the secondary mortgage market?

A. Ginnie Mae insures MBSs made up of conventional loans. B. Ginnie Mae insures MBSs made up of government-insured or -guaranteed loans. C. Ginnie Mae purchases conventional loans and packages them to sell. D. Ginnie Mae purchases government-insured or -guaranteed loans and packages them to sell.

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?

A. Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer. B. Ronna's buyer client asked her to keep his financial situation confidential. C. Ted, Ronna's broker, insisted that she teach a contracts class, even though she's a new agent. D. Though her customer was adamant, Ronna turned down a commercial listing because it was outside her area of expertise. *Ronna's duty of reasonable skill and care prohibits her from providing legal advice and supersedes her duty of obedience to Jefferson, her client.

Which of the following best describes the Arizona Real Estate Advisory Board?

A. One member must be the Arizona real estate commissioner. B. The majority of the board members must be from the same county. C. There must always be a total of nine members in order to avoid split decisions. D. Three members must be unlicensed residents of Arizona. *The board consists of 10 members. Three of them must be members of the general public who aren't licensed and aren't related to an Arizona real estate licensee.

Which of these steps does an Arizona lender take after borrower default on a loan secured by a mortgage?

A. The lender accelerates the loan and files a court action requesting foreclosure B. The lender notifies the trustee to initiate foreclosure by recording a Notice of Sale with the court. C. The lender records a lis pendens on the property as notice of foreclosure to the borrower. D. The lender requests a deed-in-lieu from the borrower. If the borrower declines, the lender files a court action to foreclose.

What two pieces of information regarding compensation must be disclosed to all transaction parties in any given Arizona real estate transaction?

A. The name of each employing broker representing a transaction party and the license numbers of all involved licensees B. The name of each employing broker representing a transaction party and who will receive compensation from the transaction C. The names of individuals who will receive compensation from the transaction and an itemization of any fees assessed by the brokerage from the commission amount D. The names of individuals who will receive compensation from the transaction and the license numbers of those involved

Which of the following statements about Arizonan private water companies is true?

A. They are all regulated by the Arizona Corporation Commission. B. They are federally regulated, so there's a cap on how much water they can deliver. C. They're mainly used to deliver water to municipalities and recreational areas, such as golf courses. D. They're only allowed to sell water as long as they recycle a certain percentage of effluent. *There are a lot of private water companies in Arizona, and they're all regulated by the Arizona Corporation Commission.

What is the trustee's role when a deed of trust is used to secure property for a loan?

A. To collect payments and service the loan B. To hold funds in escrow C. To hold legal title to the property on behalf of the beneficiary until the loan is repaid D. To hold the note to the property on behalf of the trustor until the loan is repaid *When a deed of trust is used in a title theory state, the trustee holds legal title to the property on behalf of the beneficiary.

Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's one purpose of this document?

A. To detail the amount Lawrence needs to bring to closing B. To disclose the interest rates available on this lender's various loan programs C. To disclose the lender's source of loan funds D. To provide the estimated closing costs for Lawrence's loan *The Loan Estimate, which the lender must provide within three days of loan application, provides an estimate of mortgage loan costs.

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

Acceleration Alienation Power of sale Reconveyance *The power of sale clause is standard in a deed of trust and allows the non-judicial foreclosure process to be used in case of default.

A(n) _____ septic system mixes air into the tank's water to speed up the waste breakdown process.

Aerobic unit Drip irrigation Mound system Sand filter

Ari owned acreage in a rural area. He sold a small portion of it to a neighbor in an informal transaction but made no record of the sale or change of ownership. A developer offered Ari several million dollars for the entire acreage, and Ari eagerly accepted the offer. What covenant is Ari in danger of violating?

Against encumbrances Quiet enjoyment Seisin Warranty

The Arizona Department of ______ protects the environment and prevents pollution in Arizona.

Air and Water Control Environmental Quality Environmental Safety Pollution Prevention

Brandon has a right-to-use timeshare. What can he NOT do with this type of timeshare?

Allow a friend to use his week. Pass the timeshare on to an heir. Purchase an additional week if it becomes available. Try to exchange weeks with another timeshare holder. *A right-to-use timeshare conveys the right of possession, but it isn't ownership and therefore can't be sold or passed on to another individual.

Jonathon set up an advertising campaign to promote Whispering Pines timeshare sales. The commissioner requested copies of the advertising material. What must the advertising include to be in compliance?

An accurate representation of the property's material facts according to the public report, and drawings of proposed improvements The customer disclosure statement and draft contract with rescission clause The photos showing the finished project The property material facts as described in the public report *Advertising must reflect the true and comprehensive material facts without omissions, and proposed improvement drawings if the project is still being developed.

Which of the following may you omit from an exception submission for a contest or lottery in Arizona?

Any conditions or restrictions to entry The broker's name The licensee's professional website URL The public report number

The commissioner has all of the following powers EXCEPT ______.

Appointing members of the advisory board Conducting investigations of formal complaints Determining licensees' moral character Producing education materials about relevant real estate topics *The commissioner does not appoint members of the Real Estate Advisory Board. That power is held by the governor.

The ______ category of appraiser licensure requires a minimum of 1,000 hours of applicable experience.

Appraiser trainee Certified general real property appraiser Certified residential real property appraiser Licensed residential real property appraiser

Jacob is a developer who purchased 78 acres and had it subdivided into half-acre lots. He decided to install sewer and underground electric for the entire subdivision, because he thinks that he will easily recoup his initial infrastructure investment. This is an example of which economic characteristic of real property?

Area preference Immobility Permanence of investment Scarcity *Infrastructure installation is an example of permanent improvements to a property that upgrade the entire subdivision and reduce issues down the road. They can't be easily reversed. Thus, these types of improvements represent "permanence of investment."

Mary agreed to buy her mother's house when her mother planned to move to a senior living community. They signed a purchase agreement, but when Mary had to move because of work, she signed her rights in the contract over to her sister, Tina. Mary may still owe money if Tina can't come up with the agreed-upon funds. What's happening in this scenario?

Assignment

Which lease clause verifies facts that are already in writing?

Attornment Estoppel Remainder Repeat *An estoppel certificate simply verifies facts that are in writing, and stops a party from later disavowing the facts. It means, basically, "Yes, I agreed to these terms."

Which one of the following is a substance found in air fresheners, cleansers, paint, and building materials that at high levels can make indoor air quality toxic?

BPA Natural scents PCBs VOCs Volatile organic compounds (VOCs), which can make indoor air quality toxic at high levels, are found in some air fresheners, cleansers, paint, and building materials.

While Fannie Mae considers total and housing debt-to-income ratios in its underwriting process, Freddie Mac considers ______.

Both total and housing debt-to-income, as well as employment history Neither total nor housing debt-to-income Only housing debt-to-income Only total debt-to-income *Fannie Mae looks at total debt-to-income as well as the housing debt to-income for a borrower. Freddie Mac focuses on the total debt-to-income ratio.

The duties that Arizona licensees owe to their clients as outlined in the law are called ______ duties.

Brokerage Client Fiduciary Statutory *These legal duties are outlined in the statutes, so they're called statutory duties.

Land, plus all things permanently attached to it, either naturally or artificially, is known as _________.

Bundle of sticks Interest Real estate Real property *Real estate includes land, plus all things permanently attached to it, either naturally or artificially.

Janson Industries worked with architects and engineers to draw up plans for a planned community that will include residential, shopping, dining, and entertainment uses within the community itself. As a property that falls under mixed-use zoning, what does the company have to provide to the planning commission?

By-laws Covenant Easements Plat map

For what environmental issue are CFCs blamed?

Carbon monoxide poisoning Ozone depletion Radon levels above 4 pc/L Water contamination

Which of the following should be filed in the questionnaire section of the Arizona public report application?

Certificate of Assured Water Supply Subdivision information Subdivision map Title insurance policy

Prior to a certain act's existence, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing. What's this act called?

Civil Rights Act of 1866 Fair Housing Amendments Act of 1988 Federal Fair Housing Act of 1968 Housing and Community Development Act of 1974 *The Housing and Community Development Act of 1974 included gender or a person's sex in the list of protected classes.

Which of these statements is true about tenancy by the entirety?

Co-owners have a right to sell their fractional interest. It gives co-owners a right of inheritance. It requires five unities to create it. It's the default form of ownership in most states. *Tenancy by the entirety requires five unities to create it: possession, interest, time, title, and person. It's used for married couples and isn't recognized in all states.

The section of a property management plan that is likely to include demographic information about potential tenants is the _______ analysis.

Competitive Demographic Market Property *The section of a property management plan that is likely to include demographic information about potential tenants is the market analysis.

The ______ provides financial and technical assistance to landowners who put conservation practices into place on their agricultural and non-industrial private forestland.

Comprehensive Environmental Response, Compensation, and Liability Act Environmental Protection Agency Environmental Quality Incentive Program Superfund Amendments and Reauthorization Act *Landowners who proactively perform conservation practices are given special assistance from the Environmental Quality Incentive Program. It's a nice incentive to be good to the environment!

Government regulation of a property that deprives the landowner of the economic value of the property without compensation from the government is called ______.

Condemnation Eminent domain Escheat Inverse condemnation *Inverse condemnation occurs when government takes private property, either physically or by the effect of regulation on the property value, without offering the owner just compensation as is required by eminent domain.

As part of his lease agreement with his landlord, Alex mows the grass around his apartment building each week in return for a small reduction in rent. What is this an example of?

Condition Covenant Enjoyment Promissory *A covenant is an agreement or promise made between the lease parties.

To what type of ownership do horizontal property acts apply?

Condominium

In which method of involuntary alienation does a court decide how the proceeds from the sale of land owned by tenants in common will be distributed?

Court-ordered partition of property Eminent domain Foreclosure Regulatory taking *If the tenants in common cannot agree about how the property should be divided, the courts may step in and order the sale of the property.

In Arizona, what must an owner of unsubdivided land do before selling or leasing any of the land?

Create a corporation from which the land will be sold. Designate the land for industrial use only. Notify the commission of the sale or lease. Obtain clearance from the U.S. Land Grant Authority.

Which banking-related entity shares similarities with the purpose and function of the NCUA?

Department of Treasury FDIC Federal Reserve IRS

Which of the following does C-A-P NOT do?

Employ more than 400 people to maintain and operate it. Help more communities recycle effluent water. Provide 1.5 million acre-feet of Colorado River water to its users. Reduce dependence on groundwater.

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?

Enforceable Unilateral Void Voidable

Determining who the buyers of subdivision homes are, the market niche to target, and whether to have different price points for various phases of development are all considerations in the ______.

Environmental assessment Feasibility study Marketing strategy Subdivision lot release plan *These are all considerations for the marketing strategy, and when it comes to the marketing strategy, sooner is better - this plan should be in place before ground is broken.

Stacy's lease agreement states that she's responsible for paying any tax increase over the base year's taxes, in addition to the base rent. What type of clause is this?

Escalation Estoppel Services included Tax *A tax clause stipulates that the tenant is responsible for paying any tax increase over the base year's taxes, in addition to the base rent.

Under which of the following clauses are the costs of building maintenance over a specified level are passed on to the tenant?

Escalator clause Expense stop clause Lease option clause Tax stop clause

Terry has a costume shop in a commercial building. He has a one-year lease that automatically renews for another year unless either Terry or the landlord terminates. What type of leasehold estate is this?

Estate at sufferance Estate for years Estate from period-to-period Month-to-month tenancy

Randolph has a leasehold estate that automatically renews at the end of each lease period. What type of leasehold estate does Randolph hold?

Estate at will Estate for months Periodic estate Renewable estate *A periodic estate may be for any specified period of time, often monthly.

Which form of ownership allows an unlimited number of co-owners but can only be created if the four unities are present?

Estate in severalty Joint tenancy Tenancy by the entirety Tenancy in common *Joint tenancy requires the four unities (possession, interest, time, and title), and includes the right of survivorship. It creates an equal interest among the co-owners.

Gross potential rental income ‒ ______ = effective gross income

Expense reimbursements Late rent Net operating income Vacancies and credit loss *Gross potential rental income ‒ vacancies and credit loss = effective gross income

Which act gives consumers the right to access information held by consumer reporting agencies?

Fair Credit Reporting Act Gramm-Leach-Bliley Act Privacy Act Truth in Advertising Act *The FCRA gives consumers the right to access information held by consumer reporting agencies.

Which act protects a consumer's financial information, restricts which third parties can access it, and when they may do so?

Fair Credit Reporting Act Gramm-Leach-Bliley Act Privacy Act Truth in Advertising Act *The Gramm-Leach-Bliley Act protects a consumer's financial information, restricts which third parties can access it, and when they can do so.

Which act was established in 1974 to protect private information held in a system of records by federal agencies?

Fair Credit Reporting Act Gramm-Leach-Bliley Act Privacy Act Truth in Advertising Act *The Privacy Act of 1974 was established to protect private information held in a system of records by federal agencies.

The Swansons left the family property to their son, Jason, with the stipulation that he does not build on it. The type of estate Jason holds is ______.

Fee simple absolute Fee simple defeasible Leasehold Qualified lease

The Crows gave their son, Gibson, the family property, so long as he doesn't join his friend's rock band. If he joins the band, the property goes back to them. What type of estate is this?

Fee simple absolute Fee simple defendable Fee simple determinable Fee simple subject to a condition subsequent *With fee simple determinable, the property holder owns the property subject to a condition. If the condition is breached, then the property will go back to the original owner.

Sebastian owns a country house and vacations there every summer and on holiday weekends. As much as he'd like to will it to his niece when he passes, his ownership of the house ends when he dies. What type of estate does Sebastian own?

Fee simple estate Free leasehold estate Life estate Remainder estate

All property management firms must deposit trust funds within ______ days of receipt.

Five Seven Three Two *Property management firms must deposit trust funds within three days of receipt, in either the owner's direct account or the property management firm's trust account.

The income from what reliable source benefits the entire community by funding essential services and public works?

Fundraisers Private donations Property taxes Special assessments

Brittany has a small office in a professional building. She has a set monthly lease payment that has been calculated to include maintenance of the common areas in the building, such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for her space. The payment also includes taxes and insurance. The landlord takes these payments and pays the individual expenses himself. What type of lease does Brittany have?

Graduated lease Gross lease Net lease Percentage lease

A ______ is a mortgage-backed security issued by Freddie Mac.

Home equity line of credit Participation certificate Real estate investment trust Reverse annuity mortgage *Participation certificates are what Freddie Mac calls their mortgage-backed securities.

Construction loans are a type of ______ financing.

Immediate In-between Interim Intermediary Construction projects need short-term financing to complete the job, which is known as interim financing.

Stephanie is an Arizona licensee who has recently been contacted because her conduct is causing an immediate threat to public welfare. What penalty does she most likely face?

Immediate revocation of her license Issuance of a provisional license Letter of concern Summary suspension of license *ADRE may summarily (immediately) suspend a licensee's license if the commissioner finds that the licensee's actions are causing an immediate threat to public health, safety, or welfare.

What section of the Arizona public report application contains an estimate of how long the application process will take?

Instructions and general information Questionnaire Required documents Watershed disclosure

Marsha leases a ranch house in a bedroom community. When the owner decided to sell the house, Marsha was given the opportunity to purchase it but declined. What does Marsha have?

Lease with obligation to buy Lease with option to buy Option contract Right of first refusal *With a right of first refusal, the holder of the right waits until the owner wants to sell and then can exercise that right or let the property go. This is a reactive position as compared to an option to buy, which is more proactive.

The Sanchezes learned that the home they recently purchased has a limitation built in to the deed affecting what sort of aesthetic changes they can make to the outside of their home. This limitation is imposed by the home's builder, a small, family-owned construction company. What kind of limitation is this?

Limiting land use control Private land use control Public land use control Restrictive land use control

What does NCUA stand for?

National Credit Union Administration National Credit Union Affiliation National Credit Union Alliance National Credit Union Association

Arizona licensee Kurt is within his original license period, but his license was cancelled. He resolved the cancellation issues, and is eligible for reinstatement through ______.

New application Original application Re-application Renewal *Cancelled licenses that are within the original license period (unexpired), and where the reason for cancellation has been resolved, are eligible for reinstatement by re-application.

Liza's Arizona salesperson's license is inactive due to a suspension. The suspension period is up, but her license expired three months ago. With the suspension resolved, she is eligible to apply for reinstatement by ______.

New application Original application Re-application Renewal *When a license has been canceled or suspended and the reason for inactivation has been resolved but the license has expired, that licensee would apply for reinstatement by renewal.

Gregory called his landlord to let him know a city inspector came by and left a notice that the paint on the house was peeling, which was against code and had to be remedied. Instead of his landlord having to put out a lot of money, Gregory suggested that he would paint the house over the weekend and deduct the cost of materials plus a modest amount from his next month's rent. Is this permitted under Arizona law?

No, because the tenant can't reduce rent in that manner. No, because the work had to be done to meet housing code. Yes, as long as both parties agree. Yes, but the tenant must supply an itemized list of goods and services. *If work must be done to a property to address a code violation, a landlord can't make arrangements with the tenant to take care of the problem.

Which agency is charged with enforcing fair housing laws and holding all parties accountable for compliance with these laws and regulations?

Office of Civil Rights Office of Equal Credit Opportunity Office of Fair Housing and Equal Opportunity Office of Housing and Community Development

Which of the following, when done for others and for compensation, may be done by someone who doesn't hold an Arizona real estate license?

Performing official real estate duties as an Arizona government employee

Emblements are ______.

Personal property/fructus industriales Personal property/fructus naturales Real property/fructus industriales Real property/fructus naturales *Think personal property and the product of the tenant or worker's labor.

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

You're accompanying your buyer client, Charlene, to an open house. She brings along her best friend, Hillary. What's your relationship to Hillary?

She's not a client, customer, or third party.

Three senior women live together in a house in which they share ownership. When one of them passes away, her share is inherited by her daughter, who is now a co-owner of the property. What type of ownership does this describe?

Tenancy in common

Who holds the promissory note when a deed of trust is used as a security instrument?

The buyer The lender The seller The trustee *With a deed of trust, the lender receives the promissory note; the trustee holds the deed of trust.

What title guarantees will Jody have when she buys a property at a foreclosure auction?

The covenant against encumbrances The covenant of further assurances The covenant of quiet enjoyment The covenant of seisin

What might prevent an Arizona lender from accepting a borrower's deed in lieu of foreclosure?

The existence of prior or junior liens on the property

What differentiates hypothecation property and pledging property?

The type of collateral used to secure the loan The value of the collateral used to secure the loan Whether the borrower is an individual or business Who possesses the collateral while the loan is being paid

A client of yours is selling a piece of property with a well attached. He's not allowed to use the well for irrigation, but he uses it to water his livestock. He can sell the water right separately from his property. What is true about this well?

This well has a Type 2 right. Of the different rights associated with non-exempt wells, only Type 2 rights can be sold separately.

Dry Lake Properties has begun marketing an un-subdivided tract of land for sale just north of the Phoenix metro area. The property proves to be very popular, and lots begin selling at a rapid pace. Two years after the property first went up for sale, it is discovered that Dry Lake marketed the land before it had acquired a public report. Based on this information, how long does a buyer have to file a complaint against the seller?

Three Years

Which of the following statements is true regarding timeshare estates?

Timeshare estates are illegal. Timeshare estates can be sold or passed down to heirs. Timeshare estates cannot be passed down to heirs. Timeshare estates cannot be sold.