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AZ Real Estate > Practice Test > Flashcards

Practice Test Flashcards

1
Q

A 3.45 acre lot sells for 50 cents per square foot. What is the selling price?

A. $37,570
B. $75,141
C. $76,230
D.$78,712

A

B. $75,141

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2
Q

A blind ad refers to an ad that is

A. provides no price
B. provides no address
C. gives no indication that the property is listed with a broker
D. gives no indication that the property has been sold or not

A

C. gives no indication that the property is listed with a broker

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3
Q

A borrower is required to put 10% down for a purchase of a property. The 10% down would be considered

A. equity
B. boot
C tax shelter
D. leverage

A

A. equity

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4
Q

A broker, acting as a property manager, would be what type of agent?

A. special
B. general
C. implied
D. ostensible

A

B. general

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5
Q

A buyer pays 20% down and obtains a real estate mortgage. The buyer makes no further payments. What clause would the lender now exercise?

A. alienation
B. habendum
C. novation
D. acceleration

A

D. acceleration

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6
Q

When a new home is still under construction the County Assessor may

A. increase the assessed value ratio
B. increase the full cash value
C. decrease the tax rate
D. appeal the limited property value

A

B. increase the full cash value

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7
Q

A contract has been signed, but title has not yet passed. The contract is

A. executed
B. executory
C. recorded
D. estopped

A

B. executory

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8
Q

A handicapped person is leasing a house that requires modification. Which of the following is TRUE about the modifications?

A. the lessor my forbid handicapped modifications
B. the lessor can require the lessee to reasonable restore the property at the end of the lease
C. the lessor must pay for the modifications
D. the lessor can increase the rent due to the risk of the handicapped person

A

B. the lessor can require the lessee to reasonable restore the property at the end of the lease

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9
Q

A holdover tenant would have a(n)

A. estate at sufferance
B. estate at will
C. freehold estate
D. remainder estate

A

A. estate at sufferance

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10
Q

Which of these property classification is used for vacant land?

A. Class 1
B. Class 2
C. Class 3
D. Class 4

A

B. Class 2

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11
Q

A house costs $100,000. The buyer is making a down payment of $32,000 and getting a $68,000 loan. If there are 4 points, how much money will be paid out of the closing for the points?

A. $400
B. $1,280
C. $2,720
D. $4,000

A

C. $2,720

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12
Q

A lender refuses to loan or limits loans in a certain minority neighborhood. This action is called

A. steering
B. blockbusting
C. redlining
D. territory allocation

A

C. redlining

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13
Q

A lessee puts in a bookcase for commercial use; at the end of the lease the bookcase is removed. The bookcase would be considered

A. real property
B. a trade fixture
C. appurtenant
D. chattel real

A

B. a trade fixture

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14
Q

To finance the infrastructure for a subdivision development, Arizona law allows the formation of

A. Homeowners’ Associations
B. Community Facilities Districts
C. Planned Communities
D. Planned Unit Developments

A

B. Community Facilities Districts

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15
Q

A listing broker receives several offers at the same time. The broker should

A. present only the best
B. present all the offers
C. present the three best
D. wait for more offers before presenting to the seller

A

B. present all the offers

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16
Q

A Loan Estimate must be given to a borrower within three business days

A. of loan application
B. after the buyer’s request
C. after closing
D. prior to closing

A

A. of loan application

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17
Q

A party lives on a property without permission of the owner. After the legally required time period, if the occupant receives title to the property it was done so through

A. easement by prescription
B. adverse possession
C. escheat
D. eminent domain

A

B. adverse possession

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18
Q

In what situation would a short sale be likely?

A. the loan balance is greater than the property value
B. the loan balance is less than the property value
C. the loan has a non-recourse provision
D. the total of all liens is less than the property value

A

A. the loan balance is greater than the property value

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19
Q

A real estate mortgage would be a(n)

A. involuntary lien
B. general lien
C. voluntary lien
D. statutory lien

A

C. voluntary lien

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20
Q

A real estate sale was closed on March 21. The assessed value of the property was $72,500 and the tax rate was $1.75 per $100 of assessed value. What was the proper entry on the seller’s settlement statement if the buyer owns day of closing and we are using a calendar year?

A. $278.08 debit
B. $278.08 credit
C. $274.60 debit
D. $274.60 credit

A

C. $274.60 debit

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21
Q

A right of way over Parcel A to Parcel B identifies Parcel B as the

A. servient tenement
B. dominant tenement
C. appurtenant estate
D. encroachment estate

A

B. dominant tenement

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22
Q

A company that acts as an intermediary between a lender and an appraiser is a(n)

A. full service appraisal company
B. real estate brokerage company
C. appraisal management company
D. appraisal evaluation company

A

C. appraisal management company

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23
Q

A seller lists a property with a brokerage, sells it himself, and does not have to pay a commission. What kind of listing did the seller sign?

A. exclusive right to sell
B. exclusive agency
C. net listing
D. gross listing

A

B. exclusive agency

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24
Q

A seller needs to pay an estimated $2,000 in closing costs, $150,000 on his current mortgage and wants $58,000 in cash for a down payment on another house. His listing agreement obligates him to pay 7% commission to the brokerage. What is the minimum selling price he can accept?

A. $197,400
B. $218,400
C. $222,600
D. $225,807

A

D. $225,807

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25
Q

A seller wants to list a four plex and live in one unit, but doesn’t want any children in the units. What should the agent do?

A. list the property and indicate no children
B. refuse the listing; it violates fair housing
C. charge the families with children a higher deposit
D. refuse the application if they have children

A

B. refuse the listing; it violates fair housing

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26
Q

A valid contract must have

A. offer and acceptance
B. street address
C. earnest money
D. escrow instructions

A

A. offer and acceptance

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27
Q

If the percentage of renters in a community exceeds 50%, many lenders require that the homeowners’ association reserves be what percentage of HOA budgeted income?

A. 5%
B. 10%
C. 15%
D. 20%

A

D. 20%

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28
Q

After a deed if tryst foreclosure sale, which of the following is TRUE?

A. a deed of reconveyance is given to the trustor
B. the note is marked paid and returned to the trustor
C. a trustee’s deed is given to the new owner
D. the trust deed is returned to the trustor

A

C. a trustee’s deed is given to the new owner

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29
Q

After a mortgage foreclosure, if the sale amount was insufficient to cover the debt, the lender may ask for a(n)

A. deficiency judgment
B. assessment
C. assignment of rents
D. deed in lieu of foreclosure

A

A. deficiency judgment

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30
Q

All of the following would be considered appurtenant in a real estate transaction EXCEPT

A. mineral rights
B. property improvements
C. annual crops
D. the bundle of rights

A

C. annual crops

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31
Q

A property in which unrelated people who need care, support or supervision live together and which is protected by fair housing laws from discrimination by neighbors is a

A. homestead
B. relined home
C. single-family home
D. group home

A

D. group home

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32
Q

An option once exercised is considered

A. unilateral executed
B. bilateral executed
C. unilateral executory
D. bilateral executory

A

A. unilateral executed

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33
Q

As of Jun 30th of any year, what must the balance in the Real Estate Recovery Fund to avoid additional fees to licensees?

A. $200,000
B. $250,000
C. $300,000
D. $600,000

A

D. $600,000

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34
Q

At what point does recordation take place?

A. when a docket and page number are assigned
B. at close of escrow date
C. the date the document was signed
D. the date the document was notarized

A

A. when a docket and page number are assigned

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35
Q

B expects a return of 8% on his investments and is considering a property with an asking price of $670,000. The records show a potential income of $6,200 a month, expenses of $1,500 a month, and a vacancy factor of 10%. With this information in mind what would be the estimate of value?

A. $137,000
B. $343,250
C. $612,000
D. $818,250

A

C. $612,000

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36
Q

Before a tenant can exercise the self-help for minor defect provision, the tenant must give the owner how many days to cure the defect?

A. 3 days
B. 5 days
C. 7 days
D. 10 days

A

D. 10 days

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37
Q

What is required at the time an Affidavit of Affixture is recorded?

A. the mobile home must have skirts installed
B. the County Assessor must inspect the property
C. the titles to the mobile home must be surrendered
D. the mobile home must be owner-occupied

A

C. the titles to the mobile home must be surrendered

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38
Q

A broker has what duty to a third party?

A. fiduciary
B. full disclosure of all material facts
C. client relationship
D. loyalty

A

B. full disclosure of all material facts

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39
Q

A federal rent subsidy program is known as

A. Pathway to Purchase
B. Section 8
C. Landlord Tenant Act
D. Protecting Tenants in Foreclosure Act

A

B. Section 8

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40
Q

How can a buyer best be assured of getting his earnest money back if his loan is not approved?

A. request the earnest money from the lender
B. request the earnest money from the seller
C. place a stop payment on the check
D. place a contingency clause in a contract

A

D. place a contingency clause in a contract

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41
Q

In a sublease with a positive leasehold, who normally benefits from the excess rend?

A. sublessee
B. lessor
C. broker
D. sublessor

A

D. sublessor

42
Q

A legal description reads as follows: “ The NW 1/4 of Section 2 and the W 1/2 of the SW 1/4 of Section 35.” How many acres is this?

A. 20
B. 160
C. 240
D. 320

A

C. 240

43
Q

If a tenant abandons a residential apartment, the landlord must do all of the following EXCEPT

A. sell the tenant’s personal property after holding it for 10 days
B. hold nay personal property of the tenant for a least 14 days before disposing of it
C. post a notice of abandonment on the apartment door and wait 5 days before entering
D. send a notice of abandonment to the tenant through certified mail

A

A. sell the tenant’s personal property after holding it for 10 days

44
Q

How many days does the landlord have to give the tenant a full accounting of the security deposit upon termination of tenancy?

A. 3 days
B. 10 days
C. 14 days
D. 21 days

A

C. 14 days

45
Q

How many townships are in a 24-mile square?

A. 8
B. 12
C. 16
D. 24

A

C. 16

46
Q

How much of a down payment is required for a VA guaranteed loan?

A. 0%
B. 3.5%
C. 5%
D. 10%

A

A. 0%

47
Q

Past due taxes would appear on a title report as a(n)

A. encumbrance
B. encroachment
C. lis pendens
D. adverse possession

A

A. encumbrance

48
Q

If a buyer buys a parcel of land for which a Public Report was required but was not issued, the buyer may void the sale within

A. 1 year
B. 2 years
C. 3 years
D. 5 years

A

C. 3 years

49
Q

If there are material changes from an original Public Report, the Commissioner may require the subdivider to create a(n)

A. subsequent owner exemption
B. amended Public Report
C. original subdivision disclosure report
D. affidavit of disclosure

A

B. amended Public Report

50
Q

If cap rates in an area are going up, how does this influence value?

A. value remains the same
B. value goes up
C. value goes down
D. value goes up by a multiple of the cap rate

A

C. value goes down

51
Q

The state obtains the property of someone who dies intestate though

A. police power
B. escheat
C. eminent domain
D. taxation

A

B. escheat

52
Q

If there is a contract dispute, which one of the following would take precedence?

A. printed word
B. items crossed out
C. handwritten words
D. boilerplate

A

C. handwritten words

53
Q

In an agency relationship, the primary ethical duty of a broker is to

A. disclose all items to all parties
B. represent all parties
C. represent neither buyer or seller
D. represent the principal

A

D. represent the principal

54
Q

When conveying property in Arizona, a deed must be signed by the

A. grantee
B. mortgagor
C. grantor
D. trustor

A

C. grantor

55
Q

In Arizona, property owned before marriage is sole and separate. Property acquired after marriage would be considered

A. community property
B. sole and separate
C. tenancy in common
D. joint tenancy

A

A. community property

56
Q

The right of an Arizona real estate licensee to prepare certain legal documents and forms comes from

A. the Arizona Statute of Frauds
B. the Commissioner’s Rules
C. the Arizona Constitution
D. local ordinance

A

C. the Arizona Constitution

57
Q

What clarifies ADRE’s position on statutes or rules?

A. Case Law
B. Arizona Administrative Code
C. Arizona Revised Statutes
D. Substantive Police Statements

A

D. Substantive Police Statements

58
Q

The concept that information given to a client’s agent has been given to the client is known as

A. vicarious liability
B. fiduciary duty
C. imputed notice
D. caveat emptor

A

C. imputed notice

59
Q

Mrs. Martin owns a house on a corner lot, and tears the house down in order to get a better price for the land. This is an example of

A. substitution
B. economic depreciation
C. highest and best use
D. contribution

A

C. highest and best use

60
Q

On a settlement statement, rent paid in advance would be a

A. credit to the seller only
B. debit to the buyer only
C. credit to the buyer, debit to the seller
D. credit to the buyer only

A

C. credit to the buyer, debit to the seller

61
Q

Property taxes are assessed on the

A. capital gains on the property
B. value of the property
C. amount paid for the property
D. assessments on the property

A

B. value of the property

62
Q

Rows of townships are called

A. tiers
B. ranges
C. townhouses
D. condominiums

A

A. tiers

63
Q

The 1988 Amendments to the Federal Fair Housing Act prohibits discrimination based on

A. age and sex
B handicapped and religion
C. familial status and handicapped
D. familial status and age

A

C. familial status and handicapped

64
Q

If the buyer of a property wants to remain anonymous, what term should be used for that buyer’s name in a purchase contract

A. Nominee
B. Nominor
C. Principal
D. Assignor

A

A. Nominee

65
Q

The doctrine of water usage in Arizona is known as

A. riparian
B. prior appropriation
C. relicition
D. littoral

A

B. prior appropriation

66
Q

which of the following listings would NOT be entered into a MLS?

A. pocket listing
B. entry only listing
C. limited service listing
D. full service listing

A

A. pocket listing

67
Q

The following would be an example of what type of surveying system? Beginning at the SE corner of Tatum and Cactus, proceed 2,640 ft north thence 400’ west, thence 700 ft south and back to the beginning

A. rectangular survey
B. block and lot
C. metes and bounds
D. recorded plot

A

C. metes and bounds

68
Q

Which is the highest form of an estate?

A. fee simple
B. defeasible fee
C. fee conditional
D. estate in remainder

A

A. fee simple

69
Q

What is the homestead exemption in Arizona?

A. $20,000
B. $50,000
C. $100,000
D. $150,000

A

D. $150,000

70
Q

The main purpose of the Federal Housing Administration is to

A. guarantee loans
B. insure loans
C. lend money
D. sell loans

A

B. insure loans

71
Q

The relationship between a broker and their sales person is what type of agency?

A. general
B. special
C. ostensible
D. fiduciary

A

A. general

72
Q

Which of the following is determined by measuring the exterior dimensions of a home including garages, patios and entryways?

A. square footage of living area
B. square footage under roof
C. front footage area
D. heated and cooled area

A

B. square footage under roof

73
Q

What is the tax assessment rate applied to owner occupied residential property in Arizona?

A. 10%
B. 12%
C. 15%
D. 18%

A

A. 10%

74
Q

When a property that has a well is sold, what must be sent to ADWR?

A. Affidavit of Affixture
B. Well Inspection Report
C. Transfer of Well Rights Form
D. Affidavit of Disclosure

A

C. Transfer of Well Rights Form

75
Q

The word friable would most likely apply to which of the following?

A. radon gas
B. lead-based paint
C. a Superfund site
D. asbestos

A

D. asbestos

76
Q

Two property managers are planning to set rental rates on their units to keep rents high in the area. This would be a violation of

A. fair housing laws
B. RESPA
C. antitrust laws
D. laws against steering

A

C. antitrust laws

77
Q

Under what condition would a listing agreement NOT terminate?

A. the principal dies
B. the broker dies
C. the salesperson dies
D. the bankruptcy of the seller

A

C. the salesperson dies

78
Q

What document is recorded with he deed?

A. affidavit of value
B. purchase contract
C. promissory note
D. settlement statement

A

A. affidavit of value

79
Q

What organization receives most of the benefit of proceeds from the sale or lease of state trust land?

A. County governments
B. State Schools
C. Arizona House of Representatives
D. Arizona Senate

A

B. State Schools

80
Q

Which is considered functional obsolescence?

A. worn out carpet
B. lack of parking
C. a building located next to a factory
D. a five-bedroom house with one bathroom

A

D. a five-bedroom house with one bathroom

81
Q

what is the maximum security deposit allowed under Arizona Landlord Tenant Act?

A. one month’s rent
B. 1 1/2 month’s rent
C. 1 1/2 month’s rent plus last month’s rent
D. first and last month’s rent

A

B. 1 1/2 month’s rent

82
Q

What is the name of the third party that will receive a life interest in a property upon the death of a measuring tenant?

A. fee simple tenant
B. life tenant
C. reversion
D. remainderman

A

D. remainderman

83
Q

What is the purpose of an affidavit of value?

A. assist the County Assessor in determining property values
B. comply with IRB requirements
C. assist in determining capital gains tax
D. assist the State Treasurer in sales tax revenue

A

A. assist the County Assessor in determining property values

84
Q

An escrow company may disburse commissions directly to a broker’s salesperson if the

A. salesperon’s license is inactive
B. escrow officers receives written authorization from the broker in each transaction
C. escrow agent is also a licensed broker
D. broker gives written authorization to the escrow company annually

A

B. escrow officers receives written authorization from the broker in each transaction

85
Q

Real estate licensees should safeguard a client’s or customer’s personal information in order to prevent

A. identity theft
B. misrepresentation
C. double escrows
D. wire fraud

A

A. identity theft

86
Q

If an owner improves a property, a licensed contractor is required to be used in all of these situations EXCEPT if the property

A. will be sold within one year
B. will be leased within one year
C. is owner-occupied for more than one year
D. is sold within six-months

A

C. is owner-occupied for more than one year

87
Q

When a developer combines two or more adjacent parcels of land into one large development, it is known as

A. assemblage
B. conformity
C. partition
D. subdivision

A

A. assemblage

88
Q

When a person buys a condo, how do they hold title to the common areas?

A. sole and separate
B. joint tenancy
C. tenancy in common
D. community property

A

C. tenancy in common

89
Q

A person named in an insurance policy who will receive the insurance proceeds if the property is damaged in the

A. loss payor
B. loss payee
C. additional party insured
D. homeowner

A

B. loss payee

90
Q

When a property located within a homeowners association is listed for sale, who is responsible for supplying the relevant documents to prospective buyers?

A. the selling broker
B. the listing broker
C. the seller, if there are more that 50 units in the HOA
D. the HOA, if there are more than 50 units

A

D. the HOA, if there are more than 50 units

91
Q

At close of escrow, which of the following forms must be filed with the IRS?

A. 1099 INT
B. K-1
C. 1099 S
D. W2

A

C. 1099 S

92
Q

Under what circumstance can an owner of a single-family residence depreciate the property for tax purposes?

A. when the property is sold
B. if it is owner-occupied
C. if the property is a rental
D. if it is held for at least 27.5 years

A

C. if the property is a rental

93
Q

When land is purchased intestate, how long would a buyer have to rescind under provisions of the Federal Interstate Land Sales Full Disclosure Act?

A. 3 days after signing the contract
B. until the property is inspected by the buyer
C. within 7 days of receiving the property report
D. within 6 months of bough sight unseen

A

C. within 7 days of receiving the property report

94
Q

When the Real Estate Commissioner receives a written complaint against a licensee,

A. the Commissioner will automatically suspend the license
B. the Commissioner will revoke the license
C . the Commissioner will turn the matter over to the courts
D. a hearing will be held before any license suspension

A

D. a hearing will be held before any license suspension

95
Q

A lender of a conventional loan would require private mortgage insurance when the loan to value is

A. less that 80%
B. less than 75%
C. more than 80%
D. more than 75%

A

C. more than 80%

96
Q

Which of the following is NOT a participant in the secondary mortgage market?

A. FNMA
B. FHA
C. FHMC
D. GNMA

A

B. FHA

97
Q

Water rights for what Arizona rivers are being adjudicated in court?

A. Gila and Salt Rivers
B. Gila and Little Colorado Rivers
C. Gila and Sana Cruz Rivers
D. Gila and Colorado Rivers

A

B. Gila and Little Colorado Rivers

98
Q

Which of the following would be considered a grandfathered water right?

A. exempt domestic well
B. Type II water right
C. flood area
D. riparian district

A

B. Type II water right

99
Q

A septic tank inspection report is valid for

A. 6 months
B. 1 month
C. 3 months
D. 12 months

A

A. 6 months

100
Q

If a property lies within the boundaries of the areas in which water rights are being adjudicated, the owners

A. must file a claim to be included in the court’s decision
B. are not affected by the court action
C. must wait until the court decision is made before asserting a claim
D. are automatically included in the court action

A

A. must file a claim to be included in the court’s decision

AZ Real Estate (20 decks)

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