Real Estate Units 21 and 22
Brokers and salespersons may renew their licenses up to ___ days before expiration. A) 90 B) 120 C) 60 D) 30
A
Continuing education categories required for license renewals include three of these four. Which of the following is NOT a required category? A) Property Management B) Contract C) Commissioner's Standards D) Agency
A (The categories are Agency, Commissioner's Standards, Disclosure, Contracts, Legal Issues, Fair Housing, and General, also known as Electives.)
The safest water is usually provided from A) a spring-fed stream. B) a municipal water supply. C) a shared well system. D) a privately owned well system.
B
A seller accepts an offer on her home, which was built in 1892. Which of these statements about lead- based paint is FALSE? A) If the buyer requests a lead-based paint inspection, the seller has ten days in which to obtain one at her own expense. B) If the seller is aware of any lead-based paint on the premises, she must disclose that fact to the buyer. C) The buyer is entitled to receive a pamphlet that describes the hazards posed by lead-based paint. D) The seller must attach a lead-based paint disclosure statement to the sales contract.
A
In regulations regarding lead-based paints, HUD requires that A) known lead-based paint hazards be disclosed. B) paint be removed from surfaces before selling. C) only homeowners deal with its removal. D) homeowners test for its presence.
A
Lead-based paint is found in about 75% of all private housing built before A) 1978. B) 1992. C) 1996. D) 1985.
A
Licensee candidates and licensees who are renewing their license must disclose all but which one of the following convictions or situations? A) Minor traffic violation B) Misdemeanor C) Bankruptcy D) Felony
A
The MOST common source of harmful lead in older residential properties is A) alkyd oil-based paint. B) appliances. C) asbestos. D) basements.
A
Which of these has been proven to pose a health hazard? A) All of these B) Radon C) Asbestos D) Lead-based paint
A
If a licensee has a complaint filed against her and during the investigation the licensee and the Department cannot come to a meeting of the minds, which of the following is NOT an option? A) An administrative law judge will be assigned to hear the case. B) A consent order is issued. C) The Commissioner will refer the case to the Attorney General's Office, stating the violations. D) The licensee may voluntarily give up her license 10 days or more before the hearing.
B
MOST seller property disclosures are required for A) residential properties and vacant land. B) only residential properties. C) residential properties and retail centers. D) both commercial and residential properties.
B
Nontoxic, nonflammable chemicals used as refrigerants and in aerosol sprays that can create a problem when their vapors rise to the upper atmosphere are called A) radon. B) chlorofluorocarbons. C) polychlorinated biphenyls. D) volatile organic compounds.
B
On June 30 of every year, the Real Estate Recovery Fund must have at least ___________ or every broker renewing that year will pay a renewal fee plus $20 to the recovery fund; salespeople will pay $10 at renewal. A) $400,000 B) $600,000 C) $1,000,000 D) $800,000
B
The role of the Advisory Board is to A) create substantive policy statements. B) advise the Commissioner. C) liaison with the governor. D) make policy.
B
If you are a salesperson from another state who has been active for two of the past five years and are in good standing, you may do which one of these? A) Get an Arizona broker's license by taking the broker's exam B) Take only the Arizona state-specific exam by taking the salesperson exam C) Go directly to the Arizona prelicense test D) Be waived to active license status
C
If a designated broker's license expires on December 31, 2020, when does the employing broker's license expire? A) December 31, 2019 B) Two years from the last renewal C) December 31, 2020 D) Four years from the last renewal
C (The Department requires that renewal of the designated broker's license is the same as that of the employing broker's license.)
A licensee changes her home address and phone number. How soon must the licensee notify the Department? A) 14 calendar days B) 5 business days C) 10 business days D) 10 calendar days
D
Capped landfills have been used as A) shopping centers. B) mobile home parks. C) new-home subdivisions. D) parks and golf courses.
D
If a candidate fails the state-specific exam for the ___ time, that person may request to see the missed questions on the screen. A) Fourth B) First C) Third D) Second
D
If a potentially responsible party (PRP) refuses to pay the expenses of cleaning up a toxic site, the EPA may A) bring a criminal action and have the PRP jailed for up to 10 years. B) bring an administrative action and be awarded the actual cost of the cleanup, plus court costs. C) have no legal recourse. D) bring a civil action and be awarded three times the actual cost of the cleanup.
D
Which of the following is FALSE about asbestos? A) It is most dangerous when airborne. B) Its removal can cause further contamination of a building. C) It was commonly used as insulation. D) HUD requires that all residential buildings be tested for asbestos-containing materials.
D
Which of these is the byproduct of fuel combustion that may result in death if such equipment is not properly vented? A) Lead B) Radon C) Urea-formaldehyde foam insulation D) Carbon monoxide
D
Which of these is responsible for administering the Superfund? A) PRP B) CERCLA C) HUD D) EPA
D (the Superfund is administered by the Environmental Protection Agency (EPA). CERCLA is the law that established the Superfund)
Defunct, derelict, or abandoned commercial or industrial sites, many of which are suspected to contain toxic wastes, are called blackfields. True or False?
False
The Environmental Protection Agency (EPA) is authorized to set national health-based standards for drinking water and requires that water suppliers report any health-risk situation within 72 hours. True or False?
False
The Lead-Based Paint Hazard Reduction Act (LBPHRA) of 1992 requires disclosure of the presence of any known lead-based paint hazards to potential buyers or renters of commercial properties. True or False?
False
The designated broker and employing broker license must be renewed at the same time. If the licenses expire, any licensees associated with them will become inactive. True or False?
False (Any employed licensees will not be regarded as inactive but would be unable to conduct any real estate business until such time that the employing and/or designated brokers' licenses are on active status again. The affected employed licensees would be entitled to associate with another employing and designated broker and be able to conduct real estate business again once their status is employed with the new broker.)
A real estate licensee candidate must be 21 years of age to obtain a license in Arizona. True or False?
False (Licensees must be 18 years or older, in addition to meeting the rest of the licensure requirements.)
In the event of a complaint, a licensee has seven calendar days from the date of the letter to respond to the complaint. True or False?
False (The licensee has 14 calendar days to respond.)
An active real estate salesperson can represent principals as long as she is acting through a licensed real estate employing broker. True or False?
True
An incorrectly placed or poorly functioning septic system can contaminate the water source. True or False?
True
Asbestos was found in most construction, including residential, until 1978, when its use was banned. True or False?
True
Capping is the process of pouring two to four feet of concrete over the top of the landfill site to prevent erosion of the soil underneath. True or False?
True
Farm and residential storage tanks that hold 1,100 gallons or less of motor fuel used for noncommercial purposes are exempt from federal regulations. True or False?
True
In MOST states, a real estate professional may be liable if the professional has known of a hazardous condition, even if the seller neglected to make the disclosure of any material fact including environmental issues. True or False?
True
Real estate licensees in the State of Arizona may draft or complete documents associated with real estate under the 26th Amendment to the Arizona Constitution. True or False?
True (The Arizona REALTORS® proposed an initiative to the voters in 1962 to add to the Arizona Constitution the right of real estate licensees to draft real estate documents incidental to the transaction, and it was passed by Arizona voters.)
Underground storage tanks (USTs) are exempt from federal regulations if they hold less than 110 gallons. True or False?
True
Wetlands include swamps, marshes, bogs, and even wet meadows, river overflows, and mud flats, as well as natural ponds. True or False?
True
Arizona's real estate licensees get their authority to write real estate offers and contracts from which of the following? A) State constitution B) Real Estate Commissioner C) Governor D) State legislature
A
Federal and state laws have defined many of the liabilities related to hazardous waste; although, A) common law is being used for further interpretation. B) local municipalities are establishing their own interpretation. C) clarification may be required from Congress. D) they are incomplete and even common law offers no help.
A
Exposure to risk as it relates to environmental hazards is created for individuals involved in other aspects of real estate transactions, such as A) real estate appraisers. B) surveyors. C) title searchers. D) transaction coordinators.
A (Exposure to risk is created for individuals involved in certain aspects of real estate transactions, such as real estate appraisers. The other individuals noted are not typically in contact with the actual improvements on a property)
In a landfill, waste is laid on the liner at the bottom of the excavation, and A) a layer of topsoil is then compacted onto the waste. B) a layer of vegetation is then compacted onto the waste. C) a layer of oil is spread onto the waste. D) water is then spread onto the waste.
A (In a landfill, waste is laid on the liner at the bottom of the excavation, and a layer of topsoil is then compacted onto the waste.)
To file against the Arizona Recovery Fund you must do three of these four statements. Which one is NOT a requirement? A) Must be filed within three years B) Must extinguish all efforts to collect on the judgment C) Must be financially harmed by a licensee under the statutes and rules D) Must get a judgment from a court of legal jurisdiction
A (The claimant must file the original application, including appendices, within two years after the termination of all proceedings, reviews and appeals connected with the judgment.)
All of the following may contribute to the growth of mold EXCEPT A) low humidity. B) presence of EIFS. C) improperly installed gutters. D) roof leaks.
A (Mold grows where there is moisture, such as where a roof leaks, or where water is not routed away properly by the gutters. EIFS is a building material that can trap moisture in a house)
What is provided by the Brownfields Law? A) Funding to protect groundwater B) Funding to clean up abandoned industrial sites C) Funding to install radon mitigation systems D) Funding to manage underground storage tanks
B (Brownfields Law provides funds to assess and clean up defunct, derelict, or abandoned commercial or industrial sites. It clarifies liability protections, and provides tax incentives toward enhancing state and tribal response programs)
Nontoxic, nonflammable chemicals used as refrigerants in air conditioners, refrigerators, and freezers are A) asbestos. B) CFCs. C) UFFIs D) PCBs.
B (Chlorofluorocarbons (CFCs) are also used in aerosol sprays, paints, solvents, and foam-blowing applications. Although they are safe in most applications and inert in the lower atmosphere, CFC vapors rise to the upper atmosphere, where they may survive from 2 to 150 years and are broken down by ultraviolet light into chemicals that deplete the ozone layer)
The water table A) is usually several hundred feet underground. B) is usually always near the surface. C) may be several hundred feet underground or near the surface. D) is never near the surface.
C
What is the process for a law to be made and become part of the Arizona licensing statutes and rules? A) Passes both House and Senate, gets signed by the governor, then sent to the ADRE for implementation B) Passes Congress, signed by the governor, sent to ADRE for implementation C) Passes both House and Senate, goes to the governor's desk to be signed into law, then sent to the ADRE for rulemaking D) Passes the Legislature, signed by the governor, then sent to ADRE to enforce
C
Where in the United States does radon occur? A) Mostly in the western states B) Mostly in the warm southern and southwestern regions C) In every state in the United States D) Only in large urban areas
C
Which of the following describes the process of creating a landfill site? A) Waste is compacted and sealed in a container, then placed in a tomb designed to last several thousand years. B) Waste is buried in an underground concrete vault. C) Waste and topsoil are layered in a pit, mounded up, and then covered with dirt and plants. D) Waste is liquefied, treated, and pumped through pipes to tombs under the water table.
C
The Arizona Real Estate Advisory Board has seven members. True or False?
False (Since 1996, the Arizona Real Estate Advisory Board has increased from seven to 10 members, with the most recent addition of a member to the board who has at least five years of experience in residential real estate, specializing in multihousing and residential rentals.)
State regulations give the Commissioner the ability upon the Commissioner's own motion or in the event of a signed and verified complaint, the right to examine the employing broker's personal checking account. True or False?
False (The Commissioner under those circumstances has the right to examine the employing broker's books and records.)
A real estate licensee promises a buyer that the property will earn at least $1,200 in rent each month, but after the purchase the buyer is only able to rent it out for $950 each month. The buyer will be able to collect from the recovery fund. True or False?
False (The promise of income could be a regulatory violation, but it does not involve actual damages. The fund does not pay for damages or losses resulting from or caused by speculation, including lost profits and other unrealized losses.)
An ecological site assessment, commonly called Phase 1 or Phase 2, is often performed on a property to show that due care was exercised in determining whether any environmental impairments exist. True or False?
False (The work described is called an environmental site assessment (ESA).)
According to the U.S. General Accounting Office, as many as a hundred brownfields plague communities as eyesores and potentially dangerous and hazardous properties, often contributing to the decline of property values. True or False?
False (several hundred thousand brownfields plague communities as eyesores and potentially dangerous and hazardous properties, often contributing to the decline of property values.)
The Arizona governor approves a commissioner for the Department of Real Estate after the Legislature nominates a candidate for the position. True or False?
False (the governor of Arizona appoints the Commissioner of the Arizona Department of Real Estate. To be considered for the appointment, the candidate must be qualified under ARS 32-2102.)
Those who could be liable for damages related to environmental hazards include A) title agents. B) escrow agents. C) attorneys. D) hazard insurance carriers.
D
Lead is commonly found in all of these EXCEPT A) alkyd oil-based paint. B) soldered water pipes. C) soil around industrial sites. D) insulating material.
D (Asbestos, not lead, was formerly used for insulating material)
Capping is the method of A) compacting waste and sealing it in a container. B) burying waste and covering with soil. C) piling waste into a hill at surface level and covering with clay. D) laying soil over the surface of a landfill and planting vegetation.
D (Capping is the process of laying two to four feet of soil over the waste in a landfill site and then planting grass on it to enhance the landfill's aesthetic value and prevent erosion)
Lead-based paint disclosure is A) a requirement of most HOAs. B) required by state law. C) voluntary. D) required by federal law.
D (Federal law requires disclosure of known lead-based paint hazards for any residential property built before 1978.)
Groundwater that exists under the earth's surface forms the water table, which is A) never found less than several hundred feet underground. B) usually subject to only subsurface contamination. C) never found near the surface. D) the natural level at which the ground becomes saturated.
D (Groundwater that exists under the earth's surface within the tiny spaces or crevices in geological formations forms the water table, the natural level at which the ground becomes saturated)
All of the following are true about lead-based paint EXCEPT A) it is most dangerous when ingested. B) all residential buildings must be tested for lead-based paint. C) renovation by a contractor of a residence that has lead-based paint requires education and certification. D) it was commonly used in residences before 1978.
B
Asbestos dust can cause A) skin cancer. B) lung disease. C) radiation sickness. D) AIDS.
B
CERCLA regulations for administration of the Superfund, which helps pay for cleanup of uncontrolled hazardous waste sites, A) make no provision for recovering Superfund expenses incurred in cleanup operations. B) impose strict, joint and several, and retroactive liability on potentially responsible parties. C) release from liability those owners of contaminated property who did not actually cause known contamination. D) exempt from responsibility those sites that contaminate neighboring properties.
B
Special disclosure rules apply in the sale or lease of residential dwellings built before 1978 because of the possible presence of A) urea-formaldehyde foam insulation. B) lead-based paint. C) asbestos. D) mold.
B
The Arizona Real Estate Law Book, which is supposed to be in the hands of each licensee, either in print or through access to the internet, contains all but which of the following? A) Statutes B) Code of Ethics C) Substantive policy statements D) Rules
B
The Department requires that all prelicense instructors have A) a minimum of five years in real estate. B) a broker's license. C) a real estate brokerage. D) a college or university degree.
B
The EPA requires that water suppliers report any health risk situation within A) 96 hours. B) 24 hours. C) 48 hours. D) 72 hours.
B
The Arizona Real Estate Advisory Board consists of 10 members. Which of the following statements is NOT accurate? A) Two real estate brokers with a minimum of five years' experience B) Three real estate brokers with a minimum of five years' experience, one proficient in multihousing C) Two members who are proficient in subdividing D) Three members of the public
B (The membership of the board shall consist of: 1. Two members, each of whom is a real estate broker with at least five years of brokerage experience in this state. Not more than one member shall be appointed from any one county. 2. Three members, two of whom have been engaged in residential real estate brokerage for the five years immediately preceding appointment, and one of whom has been engaged in multifamily residential rental property management with a real estate broker license for the five years immediately preceding appointment. 3. Two members who are primarily engaged in subdividing real property. 4. Three public members who are not related within the third degree of consanguinity or affinity to any person holding a broker's or salesperson's license from this state.)
A real estate professional showed a pre-World War I house to a prospective buyer. The buyer has two toddlers and is worried about potential health hazards. Which of the following is TRUE? A) The real estate professional can offer to personally inspect for lead and remove any lead risks. B) There is a risk that urea-formaldehyde foam insulation was used in the original construction. C) Because of the age of the house, there is a good likelihood of the presence of lead-based paint. D) Removal of lead-based paint and asbestos hazards is covered by standard title insurance policies.
C
Federal underground storage tank (UST) regulations require that A) home fuel oil tanks in basements be registered with the EPA. B) states not develop regulations more stringent than the federal requirements. C) liquid petroleum tanks that store at least 10% of their volume underground be in compliance. D) septic tanks be pumped every five years.
C
The Rules and Commissioner's Standards are common names for A) Substantive policy statement B) Arizona statutes C) Arizona Administrative Code D) Standard of practice
C
The Arizona Constitution, under Article 26, allows real estate agent to draft or fill out and complete certain documents which are incidental to the transaction. Which one is NOT covered by the Article? A) Assignment B) Deed C) Escrow Instructions D) Mortgage
C (Escrow instructions are written by escrow companies for the purpose of clarifying the agreement. Not all agreements require escrow instructions.)
What event was the precursor to the passage of the 26th Amendment to the Arizona Constitution? A) Arizona Bar Association filed an initiative to allow real estate licensees to practice law during a real estate transaction B) The governor enacted a change to the Arizona Constitution that allows real estate licensees to draft or fill out and complete documents incidental to the transaction C) Land Title Association and real estate licensees found guilty of practicing law without a license D) Legislators enacted a change to the Arizona Constitution that allows real estate licensees to draft or fill out and complete documents incidental to the transaction
C (In 1961, the Arizona Bar Association sued the Land Title Association and Ford Hoffman Realty stating they were practicing law without a license during a real estate transaction. Easy win. In response, an initiative was drafted by the REALTORS®, voted on by the citizens, and passed in 1962 to become the 26th Amendment to the Arizona Constitution.)
Which of these statements is NOT accurate when applying for an Arizona broker's license? A) Must have a certified work history from state licensing entity to verify licensed activity in another state B) Must have statements from previous brokers to verify being a licensed agent for three of the last five years C) Must have completed a contract-writing course D) Must have attended three 3-hour broker management clinic classes
C (The contract-writing class is only required of a sales associate candidate before activating his license.)
A consumer who has been damaged financially by the acts of an Arizona licensee may file against the recovery fund for payment. Of these four statements, which statement is inaccurate? A) The real estate buyer agent was asked if the vacant land had access to the city's sewer system and the agent said yes. After closing, the buyer found out the property was not eligible to connect to the city's sewer system and would require an alternative waste system that would cost $25,000 more than if the property could have been hooked up to the sewer system. The buyer has no alternative but to pay the additional monies and sue the buyer for misrepresentation. This would be covered by the recovery fund if the buyer receives a judgment and tries to collect, but is unsuccessful. B) A tenant does not receive his security deposit of $5,000 back within 14 business days and the property manager does not return phone calls. The tenant takes the case to civil court and receives a judgment from the court. Attempts to collect from the licensee are fruitless. The tenant can file against the recovery fund. C) The real estate licensee promised the buyer that the property would rent for $500 more a month than the buyer could get from a tenant. Recovery fund would pay out on this. D) The harmed consumer may go to the recovery fund after receiving a judgment from the court, and after attempting to collect from the licensee, if the consumer cannot collect the debt.
C (The promise of income could be a regulatory violation; but it does not involve actual damages and the recovery only covers actual damages.)
If a licensee has been sent a Notice of Hearing and Complaint, which of the following is NOT an option for the licensee? A) Voluntarily surrender their license to the Department at least 10 days before the hearing B) Attend the hearing as scheduled C) Appeal the Notice D) Don't attend the hearing
C (Within 20 days after service of a notice of hearing, the respondent shall appear by filing a written answer to the complaint. A licensee against whom the department has commenced a disciplinary proceeding under this chapter may voluntarily surrender to the department the license if the surrender of the license occurs not less than 10 days prior to a hearing under this section.)
Three of these people are exempt from having an Arizona real estate license. Which one must have a license? A) A person conducting telemarketing solicitations for appointments with licensed persons B) A person who (on behalf of another) offers, solicits, or takes reservations for occupancies of less than 31 days C) A person doing property management for two or more nonresidential income properties D) A person holding a power of attorney
C (a person is only exempt from having a license if managing two or more nonresidential income properties if the properties are under common ownership and the person managing them is employed by the owner or the owner's licensed management agent to perform the duties customarily associated with that employment.)
Tanks that are exempt from federal regulation do NOT include A) tanks on or above the floor of underground areas, such as basements or tunnels. B) farm and residential tanks that hold 1,100 gallons or less of motor fuel used for noncommercial purposes. C) tanks that store heating oil burned on the premises. D) tanks that hold 200 gallons.
D
Test wells around landfill operations are installed to constantly monitor the groundwater in the surrounding area, and soil analyses test for contamination. True or False?
True
The Arizona Real Estate Law Book compiles information from the Arizona State Constitution, Arizona Revised Statutes, Arizona Administrative Code, and substantive policy statements. True or False?
True
The Superfund Amendments and Reauthorization Act (SARA) created an "innocent landowner" immunity status under which a landowner in the chain of ownership who was completely innocent of all wrongdoing in certain cases should NOT be held liable. True or False?
True
The Superfund, established to finance the cleanup of uncontrolled hazardous waste sites and to respond to spills, was created by the Comprehensive Environmental Response, Compensation, and Liability Act in 1980. True or False?
True
The water table is the natural level at which the ground is saturated. True or False?
True
An independent contractor doing property management for two or more nonresidential income properties must have a real estate license. True or False?
True (an independent contractor doing property management for two or more nonresidential income properties is not exempt from licensure requirements in the State of Arizona.)