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Real estate > Real Estate > Flashcards

Real Estate Flashcards

1
Q 
All of the following items are personal property EXCEPT:
A. A lease
B. Potted plant
C. Living room furniture
D. Yard shrubbery
A

D. Yard shrubbery

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2
Q 
Authorization for zoning comes from the:
A. U.s. constitution 
B. Police power
C. Statutes of frauds
D. Real estate commissioner
A

B. Real estate commissioner

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3
Q

Which of the following does NOT fall under police power?
A. Health department and fire department regulations
B. Licensing of real estate agents
C. Zoning ordinances
D. Taking land for schools

A

D. Taking land for schools

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4
Q 
Which of the following items is considered personal property?
A. Fence around a yard
B. Growing trees
C. Installed water heater
D. A trust deed or mortgage
A

D. A trust deed or mortgage

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5
Q 
The party to whom a deed conveys real estate is called the: 
A. Grantee
B. Grantor
C. Beneficiary
D. Buyer
A

A. Grantee

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6
Q 
The trespass of an improvement on another’s land is known as a(n):
A. Encroachment
B. Easement
C. License
D. Lien
A

A. Encroachment

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7
Q

Which of the following situations BEST illustrates a zoning variance?
A. Creating a political zone
B. Granting permission to build an improvement contrary to the existing zoning
C.a use in violation of present zoning laws but permitted because the use was in effect prior to the current zoning
D. A grandfathered use

A

B. Granting permission to build an improvement contrary to the existing zoning

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8
Q

Which of the following best defines an encumbrance?
A. Any lien or claim on the title
B. An improvement built on a neighbor’s property
C. A non-conforming use
D. A quit claim deed

A

A. Any lien or claim on the title

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9
Q 
Front footage is the:
A. Area of a tract of land
B. Width of a parcel along the street
C. Depth of a parcel from the front to the rear
D. Perimeter of a parcel of land
A

B. Width of a parcel along the street

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10
Q

If an area in which an apartment complex is located is renowned to allow only single family homes:
A. It’s use may continue
B. More apartments may be added on
C. The units may now be sold as single family residences
D. If a portion is destroyed it cannot be rebuilt

A

A. It’s use may continue

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11
Q 
Which of the following elements is NOT essential to a binding contract?
A. Lawful object
B. Legally competent parties
C. Monetary consideration
D. Meeting of the minds
A

C. Monetary consideration

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12
Q 
In a contract there is always an offer and:
A. Execution
B. Acceptance
C. Counter offer
D. Right of rescission
A

B. Acceptance

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13
Q 
A clause in a lease, in which the lessor agrees that the lessee shall have the right to purchase the property at the same price as offered by a prospective purchaser is called a(n):
A. Option clause
B. Right of first refusal
C. Equity of redemption
D. Reversionary rights
A

B. Right of first refusal

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14
Q

When a contract is based on misrepresentation of a material fact the contract is:
A. Illegal
B. Voidable by both parties
C. Voidable by the party damaged by the misrepresentation
D. Unenforceable on either party

A

C. Voidable by the party damaged by the misrepresentation

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15
Q 
A contract where one promise is NOT exchanged for another promise is a(n):
A unilateral contract
B. Bilateral contract
C. Expressed contract
D. Implied contract
A

A. Unilateral contract

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16
Q 
A listing agreement in which the owner promises to pay a commission under all circumstances of sale EXCEPT if the owner sells the property, is known as a(n):
A. Exclusive right to sell listing
B. Exclusive agency listing
C. Net listing
D. Open listing
A

B. Exclusive agency listing

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17
Q 
An owner sells the property himself and will not owe a commission in all of the following listings EXCEPT in an:
A. Open listing
B. Open net listing
C. Exclusive agency listing
D. Exclusive right to sell listing
A

D. Exclusive right to sell listing

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18
Q 
A listing in which the seller pays the broker, even though the seller sells the property without the aid of the broker would be called a(n):
A. Exclusive agency listing
B. Exclusive right to sell listing
C. Multiple listing
D. Open listing
A

B. Exclusive right to sell listing

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19
Q 
Which of the following items is required to e in a listing?
A. Street address
B. Rate of commission
C. Termination date
D. Mortgage debt amount
A

C. Termination date

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20
Q 
The seller is NOT required to pay the broker a fee when she sells her own property in which of the following listings?
A. Exclusive right to sell listing
B. Exclusive agency listing
C. Multiple listing
D. Management listing
A

B. Exclusive agency listing

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21
Q

If a person who has an option to buy a commercial property wishes to extend the term of the option they are most likely to be required to:
A. Obtain a first right of refusal
B. Wait until the option expires
C. Sell the option in order to extend the term
D. Pay additional consideration

A

D. Pay additional consideration

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22
Q

A seller enters into an exclusive right to sell listing with a broker who has some subagents. Both the broker and subagents show the property extensively but the seller finds a buyer directly. In this situation:
A. The subagents are entitled to a commission
B. The listing broker is owed a commission
C. The seller does not owe anyone a commission
The seller owes a fee to both the listing broker and the subagents

A

B. The listing broker is owed a commission

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23
Q 
If a lease is agreed upon on March 15th but does not take effect until April 1st and ends on March 31st, the lease:
A. Must be in writing
B. Does not need to be in writing
C. Is an implied contract
D. Is an invalid contract
A

A. Must be in writing

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24
Q

If agent A takes an open listing for 6 months on March 1st and agent B takes an exclusive right to sell listing on March 5th for 3 months but agent A finds a buyer on April 15th, what may occur?
A. Only agent A is owed a commission
B. Only agent B is owed a commission
C. The seller may owe both agents a commission
D. No commission is owed to either agent

A

C. The seller may owe both agents a commission

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25
Q

A contract contains the following language: ‘No changes to this agreement may be made without the prior written consent of both parties.’ What type of communication would be accepted to alter the agreement?
A. A faxed notice delivered by one party
B. An email communication from one party received and accepted by the other party
C.a telephone conversation between the parties agents
D. An addendum prepared by one of the parties

A

B. An email communication from one party received and accepted by the other party

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26
Q 
What type of listing provides fiduciary duties to the seller while protecting the brokers best interests?
A. Open
B. Exclusive agency
C. Exclusive right to sell
D. Net
A

C. Exclusive right to sell

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27
Q

The Sherman Anti-Trust Act regulates:
A. Sale of real estate across state lines
B. Contracts that fall under the statute of Frauds
C. Brokerage firms agreeing to change their fees from commission basis to each firm charging the same flat rate
D. Disclosure of finance charges in a loan

A

C. Brokerage firms agreeing to change their fees from commission basis to each firm charging the same flat rate

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28
Q 
Under a typical listing agreement what is the agency created between the broker and seller?
A. Special agency
B. Universal agency
C. General agency
D. Ostensible agency
A

A. Special agency

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29
Q

A special agent can do all of the following EXCEPT:
A. Represent the principal in all real estate transactions
B. Represent the principal in a specific real estate transaction
C. Sell land
D. Find a ready willing and able buyer

A

A. Represent the principal in all real estate transactions

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30
Q 
A person who hires another individual to act for him is called the:
A. Agent
B. Principal
C. Fiduciary
D. Attorney-in-fact
A

B. Principal

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31
Q 
The agency created between the broker and seller in a signed listing is a(n):
A. Expressed agency
B. Implied agency
C. Agency of necessity
D. Ostensible agency
A

A. Expressed agency

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32
Q

If an agent has fiduciary duties to the client, what duties does the client have to an agent?
A. Compensation, indemnification and performance
B. Cooperation, confidential and correction
C. Honesty, disclosure and insurance
D. Information, independence and inspection

A

A. Compensation, indemnification and performance

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33
Q

XYZ Realty, a small family owned real estate company, was bought out by PDQ Realty which is a large corporation. What is the status of XYZ Realty’s listings at the time PDQ Realty takes owner ship?
A. They remain in effect
B. XYZ can assign them without the seller’s consent
C. The listings are only valid for 30 days after change of companies
D. E must be renegotiated

A

D. They must e renegotiated

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34
Q

The seller has listed a property with an exclusive right to sell listing. The broker abandons the listing.
A. The listing will remain in effect until its expiration date
B. The seller will have to pay the broker a commission
C. A notice of abandonment must be filed before the listing can be terminated
D. The seller can terminate the listing immediately

A

D. The seller can terminate the listing immediately

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35
Q

How are ethical standards enforced?
A. They are set in the common law
B. Federal laws and regulations establish the procedures
C. State agencies and professional groups enforce them on their members
D. By numerous Supreme Court rulings

A

C. State agencies and professional groups enforce them on their members

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36
Q 
If one agency is exclusively representing the seller, and a buyer’s broker brings the buyer and seller together it would be a(n)
A. Single agency
B. Dual agency
C. Universal agency
D. Ratified agency
A

A. Single agency

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37
Q

If a salesperson representing a buyer works in one office and a broker representing a seller works in a branch office under the same designated broker,the buyers agent can:
A. Let the buyer know that the seller is going through a divorce
B. Suggest an offer price to the buyer
C. Tell the prospective buyer that the seller is willing to take $10,000 less than the listed price
D. Inform the buyer they should get an inspection

A

D. Inform the buyer they should get an inspection

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38
Q

If the buyer in a purchase agreement were killed in an auto accident before closing:
A. The purchase agreement is null and void
B. The purchase agreement is voidable by their estate
C. The purchase agreement is voidable by their estate
D. Their insurance company is bound to the contract

A

B. The purchase agreement is binding on their estate

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39
Q 
The amount agreed upon as the full damages in the event a contract is breached is known as:
A. Liquidated damages
B. Judgment damages
C. Punitive damages
D. Nominal damages
A

A. Liquidated damages

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40
Q 
The amount of the earnest money is determined bu the:
A. Buyer
B. Seller
C. Buyer and seller
D. Broker
A

C. Buyer and seller

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41
Q

S makes an offer to purchase a home listed by a broker but the seller is not available until Wednesday. On Tuesday S wishes to withdraw the offer. Which of the following statements is correct?
A. S cannot do this as S has signed the contract
B. S must forfeit the earnest money
C. The broker must return the deposit and offer
D. The broker should tell S the offer has been accepted

A

C. The broker must return the deposit and offer

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42
Q 
The signing of an offer by the seller does NOT creat a binding contract if the acceptance is:
A. Absolute
B. Made by the offered
C. Unconditional
D. A modification of the original offer
A

D. A modification of the original offer

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43
Q 
Between the time the purchase contract is signed by the buyer and seller, and title changes hands the contract is:
A. Executory 
B. Executed
C. Voidable
D. Unenforceable
A

A. Executory

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44
Q 
A seller accepts a purchase contract but makes a minor modification in the terms. The purchaser is:
A. Bound by the original offer
B. Bound to accept the changes
C. Bound by the agents decision
D. Relieved of the original offer
A

D. Relieved of the original offer

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45
Q 
What type of clause in a contract would protect the buyers and/or sellers agent from being sued?
A. Indemnification clause
B. Contingency clause
C. Due diligence clause
D. Liquidated clause
A

A. Indemnification clause

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46
Q

T made an offer to buy a property which the seller accepted. The acceptance was communicated to T by phone but T died before receiving the contract. In this situation:
A. There is an enforceable contract
B. T’s hires are bound to the agreement
C. T’s death voided the contract
D. The hires must void the contract within 30 days

A

C. T’s death voided the contract

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47
Q 
A provision in a contract to purchase which specifies that the sale depends on whether or not the buyer can obtain financing is a(n):
A. First right of refusal
B. Contingency
C. Option
D. Hold harmless clause
A

B. Contingency

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48
Q 
Earnest money is normally held:
A. By the listing agents broker
B. By the buyers agents broker
C. Only in a brokers trust account
D. By the seller
A

B. By the buyers agents broker

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49
Q

An older home is put up for sale and the owner doesn’t tell the listing agents about the poor electrical wiring. When a prospective buyer comes to view the home and asks about the electrical wiring, the agent states that it’s in good working condition. The agent:
A. Has made a considerable misrepresentation
B. Has not done anything because they did not know about the problem
C. Cannot be held liable for any repairs because they were unaware of the problem
D. Has made a puffing statement

A

A. Has made a considerable misrepresentation

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50
Q 
In a contract for the sale of real estate which of the following terms related to alternative dispute resolution?
A. Arbitration
B. Negotiation
C. Special performance
D. Contingency
A

A. Arbitraton

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51
Q 
The type of interest usually charged on home loans is:
A. Annuity interest
B. Accrued interest
C. Compound interest
D. Simple interest
A

D. Simple interest

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52
Q 
If a mortgage loan payment is paid PITI, which portion goes into escrow(impound) account?
A. Interest and taxes
B. Taxes and insurance
C. Insurance and principal
D. Principal and interest
A

B. Taxes and insurance

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53
Q 
Z purchased a property for $15,000 with a $1,500 down payment. Two weeks later Z sold the property for $6,000 more than Z paid for it and realized a 400% return on the original investment. This would be an example of:
A. Leverage
B. Pottage
C. Escalation
D. Highest and best use
A

A. Leverage

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54
Q 
The clause in a mortgage that states that the lender no longer has an interest in the property is called a(n):
A. Alienation clause
B. Satisfaction clause
C. Defeasance clause
D. Release clause
A

C. Defeasance clause

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55
Q 
The interest rate ad monthly payment are subject to periodic changes in a(n):
A. Adjustable rate mortgage
B. Graduated payment mortgage
C. Package mortgage
D. wraparound mortgage
A

A. Adjustable rate mortgage

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56
Q 
The difference between the value and the mortgage balance is called:
A. Profit
B. Equity
C. Loan to value ratio
D. Net value
A

B. Equity

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57
Q 
When a listing agent is selling a property using a seller carryback the agent should be most concerned with:
A. Clear title
B. The buyers income
C. The sellers financial status
D. Listing price
A

B. The buyers income

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58
Q 
Discount points on a new loan are determined by the:
A. Federal home loan bank
B. Federal reserve
C. Secretary of HUD
D. Money market
A

D. Money market

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59
Q

Insured conventional loans permit:
A. Lenders to make loans with higher loan to value ratios
B. Borrowers to waive principal payments
C. Lenders to insure the entire loan amount
D. Lower interest rates for borrowers

A

A. Lenders to make loans with higher loan to value ratios

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60
Q

A buyer assumes an FHA mortgage. The seller does NOT want to remain liable. What actions can the seller take?
A. Get a written agreement from the buyer
B. Get a written release from the lender
C. Novate the mortgage
D. Assign the mortgage

A

B. Get a written release from the lender

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61
Q 
The payment of $750 on a fixed rate FHA mortgage increases to $755. This increase is probably cause by an increase in:
A. Real property taxes
B. The interest rate
C. Inflation
D. The mortgage insurance premium
A

A. Real property taxes

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62
Q 
Funds for FHA loans are secured from.
A. Fannie may
B. Approved local lenders
C. FDIC
D. FHA
A

B. Approved local lenders

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63
Q 
Which of the following loans would have the highest loan to value ratio?
A. Conventional
B. Conventional with PMI
C. FHA
D. VA
A

D. VA

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64
Q 
A couple who are winning tennis professionals but have no regular/verifiable income want to buy a home. They have a significant amount of money for a down payment and want to pay off the loan in 5 yrs. what type of loan are they most likely to be able to obtain? 
A. FHA loan
B. VA loan
C. Small business administration loan
D. Personal bank loan
A

D. Personal bank loan

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65
Q 
A contract granting the exclusive right to buy a property for a specified time period, price and terms is a(an) 
A. Option
B. Right of first refusal
C. License
D. Lease
A

A. Option

66
Q 
A listing contains all of the following provisions, EXCEPT a(n)
A. Contract for services
B. Contract for the sale of real estate
C. Agreement
D. Definite termination date
A

B. Contract for the sale of real estate

67
Q 
A listing whereby the broker is to be compensated only if he or she procures a ready, willing and able buyer is known as a(n)
A. Exclusive listing
B. Open listing
C. Exclusive agency listing
D. Net naturals
A

B. Open listing

68
Q 
In Arizona, real property that was acquired prior to marriage, after marriage: 
A. Becomes community property
B. Remains separate property 
C. Remains personal property 
D. Is held in joint tenancy
A

B. Remains separate property

69
Q 
The unlawful practice of restricting the number of loans in a certain areas is known as:
A. Blockbusting
B. Panic peddling
C. Steering
D. Redlining
A

D. Redlining

70
Q 
The sale of property to satisfy delinquent taxed is:
A involuntary alienation
B. Voluntary alienation
C. A trustee’s sale
D. A sheriff’s sale
A

A. Involuntary alienation

71
Q 
P sells the rights to the oil & has found on p’s land to an oil company. P sells a fee simple interest to a third party, reserving the coal interest. What ownership interest does p have?
A. Fee simple title
B. Ownership of the coal
C. Ownership of the gas and minerals
D. No ownership
A

B. Ownership of the coal

72
Q 
A person holds an easement across a neighbor’s property to reach their garage. The neighbor’s property is the:
A. Prescriptive property
B. Dominant tenement
C. Servient tenement
D. Easement appurtenant
A

C. Servient tenement

73
Q

J deeds a property to s on January 3rd and it recorded on January 15th. T obtains and records a judgment against j o. January 10th. Which of the following statements is true?
A. The judgment is valid against s’s property
B. There is a general lien against s
C. The transfer to s is void
D. The judgment is not valid against s’s property

A

A. The judgment is valid against s’s property

74
Q 
In a purchase contract, a buyer has 45 days to conduct environmental research on a property. This is referred to as:
A. Time is of the essence
B. Due diligence
C. A title search
D. Disclosure
A

B. Due diligence

75
Q 
The owner of a property with a condition subsequent has a(n):
A. Remainder interest
B. Defensible estate
C. Less than a freehold interest
D. Estate for years
A

B. Defeasible estate

76
Q

If the listing broker is aware that the property is on a septic tank but the buyer’s broker submits an offer incorrectly stating that the property is connected Ted to the sewer, the listing broker should:
A. Not present the offer due to the incorrect information
B. Ignore the issue
C. Suggest a counter offer correcting the misinformation
D. Not disclose the error to the seller nor buyer’s broker

A

C. Suggest a counter offer correcting the misinformation

77
Q 
The maker of a will is the:
A. Testator
B. Administrator
C. Divisor
D. Executor
A

A. Testator

78
Q 
Two individuals hold property as tenants in common. The partners cannot agree on a way to dissolve their ownership. What legal action could be used to dissolve the tenancy in common?
A. Suit to quiet title
B. Suit for severance
C. Foreclosure 
D. Suit for partition
A

D. Suit for partition

79
Q

A woman and her brother hold property in joint tenancy. If the woman deeds her part to her husband:
A. The joint tenancy is broken
B. The deed to the husband is invalid
C. All three now hold title in joint tenancy
D. The husband and brother now hold title in joint tenancy

A

A. The joint tenancy is broken

80
Q 
A real property gift by will is a:
A. Demise
B. Devise
C. Bequest
D. Legacy
A

B. Devise

81
Q 
A contract created by two parties stating their intentions either orally or in writing is referred to as a(n):
A. Executed contract
B. Executory contract
C. Implied contract
D. Expressed contract
A

D. Expressed contract

82
Q 
Regarding comparables, an appraiser would disregard all of the following sales EXCEPT a sale:
A. Between relatives
B. To a governmental agency
C. Through condemnation
D. At arm’s length
A

D. At arms length

83
Q

When using the comparative method an appraiser would make an adjustment for all of the following items, EXCEPT:
A. Comparable properties in a different neighborhood
B. Comparable properties of different square footage
C. A selling price over six months old
D. Financing terms the same as the subject property

A

D. Financing terms the same as the subject property

84
Q

Which of the following items would LEAST important in the market data approach?
A. Date of sale
B. Neighborhood appearance
C. Condition and appearance of the property
D. Original cost of the property

A

D. Original cost of the property

85
Q 
All of these items are used in the income approach EXCEPT:
A. Depreciation
B. Rent schedule 
C. Operating expenses
D. Capitalization rate
A

A. Depreciation

86
Q 
A corporation would take title in partnership with an individual in which of the following ways?
A. Tenancy in common
B. Joint tenancy
C. Tenancy by the entireties
D. Severally
A

A. Tenancy in common

87
Q 
Which of the following clauses would NOT usually be found in a commercial lease?
A. Rent escalator clause
B. Condemnation clause
C. Quiet enjoyment
D. Acceleration clause
A

D. Acceleration clause

88
Q 
G offers a property for sale. S offers to purchase the property. Concerning the purchase contract:
A. G is the offeree 
B. G is the offeror 
C. S is the offeree
D. The Broker is the offeror
A

A. G is the offeree

89
Q 
A insurance company not insuring a property due to its location may be guilty of:
A. Redlining
B. Blockbusting
C. Steering
D. Misrepresentation
A

A. Redlining

90
Q

A broker is considered to have EARNED a commission when:
A. The seller signs a listing agreement
B. The broker produces an offer from a purchaser who is willing and able to purchase the property on the terms set by the listing agreement
C. Purchaser has qualified for the financing
D. A sale is completed between the seller and a purchaser who was procured by the broker

A

B. The broker produces an offer from a purchaser who is ready, willing and able to purchase the property on the terms set by the listing agreement

91
Q

The real estate settlement & procedures act of 1974:
A. Gives the buyers a chance to cancel the sales contract if it would get them into financial difficulty
B. Provides more time to raise money for the home purchase
C. Allows the home buyer to understand settlement costs and determine how much money will be needed at closing
D. Insurance that the lending institution will not charge an interest rate above the legal limit

A

C. Allows the home buyer to understand settlement costs and determine how much money will be needed at closing

92
Q 
Which of the following items that might appear in an advertisement would be a “trigger term” requiring full disclosure in the ad?
A. 7% assumable loan
B. 5% down payment
C. Full disclosure of the APR
D. FHA & VA financing available
A

B. 5% down payment

93
Q

A landlord sells a property. Without any stipulation in the leases:
A. An estate at will would be automatically terminated
B. New leases would have to be negotiated
C. Existing leases remain in force
D. The lease would revert to the lessor

A

C. Existing leases remain in force

94
Q 
The statute of frauds sets forth the requirement that, to be enforceable, a deed must be:
A. Recorded
B. Notarized
C. Prepared on a standard form
D. In writing
A

D. In writing

95
Q 
Which of the following elements is essential to a valid contract?
A. Written contract
B. Words of conveyance
C. Consideration
D. Acknowledgment
A

C. Consideration

96
Q 
A homeowner determined that the following expenses had been sustained due to home ownership: principal paid= $871, interest paid= $5,210, property taxes= $900, insurance= $350 and repairs= $155. Which of the following items could be deducted from the homeowner’s federal income taxes?
A. Principal and interest
B. Property taxes
C. Interest and property taxes
D. Interest and repairs
A

C. Interest and property taxes

97
Q

A federal law that requires that the borrower MUST be informed of the true cost of obtaining credit is the:
A. Real estates settlement & procedures act
B. Truth in lending act
C. Equal credit opportunity act
D. Fair housing laws

A

B. Truth in lending act

98
Q

The duties of the real estate commissioner include:
A. Overseeing the activities of local real estate boards
B. Overseeing the distribution of brokers commission
C. Prescribing rules
D. Appointing the real estate advisory board

A

C. Prescribing rules

99
Q

Which of the following persons needs a real estate license?
A. Attorney-in -fact selling a residence for a principal
B. Attorney-in-fact who is acting as a broker
C. Attorney at law selling a residence to settle a clients estate
D. Licensed personal property broker acting under their own license

A

B. Attorney-in-fact who is acting as a broker

100
Q

Which of the following individuals must have a real estate license?
A. Secretary in a real estate office performing office functions
B. Licensed personal property broker
C. Attorney at law acting as a real estate broker
D. Escrow agent

A

C. Attorney at law acting as a real estate broker

101
Q

A salesperson is legally allowed to:
A. Advertise the property for sale in the salesperson’s name
B. Act as agent for the seller
C. Close a pending transaction
D. Accept a listing on behalf of the broker

A

D. Accept a listing on behalf of the broker

102
Q 
The commissioner may issue a cease and desist order against a licensee for all of he following reasons that constitue a violation of statute or rule EXCEPT:
A. Transaction
B. Acts
C. Contract
D. Practices
A

C. Contracts

103
Q

The real estate salespersons license would automatically be revoked:
A. Upon conviction of driving while intoxicated
B. Upon drug charge
C. Upon settlement from the recovery fund
D. For lying to a client

A

C. Upon settlement from the recovery fund

104
Q 
The purchaser of unimproved land in an Arizona subdivision can void the purchase contract if the subdivided does NOT provide
A. Title insurance
B. Water rights
C. Permanent access
D. Warranty deed
A

C. Permanent access

105
Q 
If a buyer has NOT inspected a parcel of land before purchasing it from the developer, he or she has:
A. 3 days to rescind under regulation z
B. 7 days to rescind
C. 7 days to inspect & rescind
D. 6 months to inspect & rescind
A

6 months to inspect & rescind

106
Q 
A purchaser of a timeshare in Arizona may rescind the contract to purchase within a maximum of how many calendar days of execution of the contract?
A. Three
B. Five
C. Seven
D. Six months
A

C. Seven

107
Q

A salesperson can buy property listed with his or her broker when the salesperson:
A. Takes title in the name of another person
B. Takes title in the name of the broker in trust for the salesperson
C. Notifies the real estate department in advanced
D. Discloses the intention to the owner in writing

A

D. Discloses the intention to the owner in writing

108
Q

A deficiency judgment can be obtained against an owner of which of the following properties?
A. Owner occupied single family residence on less that 2 1/2 acres
B. Owner occupied duplex on less that 2 1/2 acres
C. Non-owner occupied single family residence
D. Owner occupied four-plex

A

D. Owner occupied four-plex

109
Q 
All of the following elements are part of the trustee’s non-judicial foreclosure process EXCEPT:
A. Reinstatement
B. Recorded notice
C. Public auction
D. Acceleration
A

D. Acceleration

110
Q 
After a sheriffs sale a trustor has a statutory right of redemption of:
A. 6 months
B. 9 months
C. 1 year
D. 3 years
A

A. 6 months

111
Q

What is the first step taken after the notice of default and trustees sale is recorded in a non-judicial trust deed foreclosure?
A. The notice is sent to the debtor
B. The debtor has 60 days to redeem
C. Trustor will file lis pendens
D. Trustee will order the beneficiary to proceed with the foreclosure

A

A. The notice is sent to the debtor

112
Q 
What is the redemption period after a non-judicial foreclosure of a trust deed?
A. 90 days
B. 6 months
C. 3 years
D. There is no redemption
A

D. There is no redemption

113
Q 
What does the high bidder receive at a judicial foreclosure sale?
A. Sheriffs deed
B. Treasurers deed
C. Trustees deed
D. Certificate of sale
A

D. Certificate of sale

114
Q 
Which party or parties must sign the trust deed?
A. Trustee
B. Trustor and beneficiary
C. Trustor
D. Trustor and trustee
A

C. Trustor

115
Q 
The borrower using a trust deed is called the:
A. Mortgagor 
B. Beneficiary
C. Trustor
D. Trustee
A

C. Trustor

116
Q

If a property is encumbered by a first and second trust deed and the borrower defaults on bot loans which of the following statements is CORRECT?
A. If the first beneficiaries exercises judicial foreclosure the second lien becomes void
B. The second beneficiary should cure the default on the first lien to protect her lien interest
C. Both beneficiaries must forclose their liens simultaneously
D. A trustees sale for the second lien will transfer the property to the highest bidder free and clear of the first lien

A

B. The second beneficiaries should cure the default on the first lien to protect her lien interest

117
Q

Under Arizona law, if a buyer default on payments on a contract to purchase real estates
A. Vendor can immediately forfeit the venders interest
B. Vendor can forfeit the venders interest after the expiration of a period of time stipulated by law
C. Vendor can have the venders forfeit the property after an agreed upon time to reinstate has passed
D. The vender is protected from losing the property by the homestead laws

A

B. Vendor can forfeit the venders interest after the expiration of a period of time stipulated has passed

118
Q

A property has a second mortgage and a valid property recorded first mortgage. If the liens are foreclosed, under what circumstances would the second mortgage holder be paid before the first?
A. If the second mortgage holder had signed a subordination agreement
B. If the first mortgage was an income tax lien
C. If the second mortgage was an income tax lean
D. If the first mortgage holder had signed a subordination agreement

A

D. If the first mortgage holder had signed a subordination agreement

119
Q

In relation to a deed-in-lieu of foreclosure, all of the following are arrest EXCEPT:
A. It is considered to be voluntary alienation of the property
B. It eliminates all lower priority liens gains the property
C. The lender accepts it to reduce the cost of foreclosure
D. The lender is not required to accept

A

B. It eliminates all lower priority liens against the property

120
Q 
A contract granting the exclusive right to buy a property for a specified time period price and terms is a(n)
A. Option
B. Right of first refusal 
C. License
D. Lease
A

A. Option

121
Q 
A listing contains all of the following provisions EXCEPT a(n)
A. Contract of service 
B. Contract for the sale of real estate
C. Agreement for commission
D. Definite termination date
A

B. Contract for the sale of real estate

122
Q 
A listing whereby the broker is to be compensated only if he or she procures a ready willing and able buyer is known as a(n)
A. Exclusive listing
B. Open listing
C. Exclusive agency listing
D. Net listing
A

B. Open listing

123
Q 
In Arizona real property that was acquired prior to marriage after marriage:
A. Becomes community property
B. Remains separate property
C. Remains personal property
D. Is held in joint tenancy
A

B. Remains separate property

124
Q 
The unlawful practice of restricting the number of loans in certain areas is known as:
A. Blockbusting
B. Panic peddling
C. Steering
D. Redlining
A

D. Redlining

125
Q 
The sale of property to satisfy delinquent taxes is:
A. Involuntary alienation 
B. Voluntary alienation 
C. A trustees sale
D. A sheriffs sale
A

A. Involuntary alienation

126
Q 
P sells the rights to the oil & has found on P’s land to an oil company. P then sells a fee simple interest to a third party reserving the coal interest. What ownership does P have?
A. Fee simple title
B. Ownership of the coal
C. Ownership of the gas and minerals
D. No ownership
A

B. Ownership of the coal

127
Q 
A person holds an easement across a neighbors property to reach their garage. The neighbors property is the:
A. Prescriptive property
B. Dominant tenement
C. Servient tenement
D. Easement appurtenant
A

C. Servient tenement

128
Q

J deeds a property to S on January 3rd and it is recorded on January 15th. T obtains and records a judgment against Jon January 10th. Which of the following statements is true?
A. The judgment is valid against s’s property
B. There is a general lean against S
C. The transfer to S is void
D. The judgment is not valid against S’s property

A

A. The judgment is valid against s’s property

129
Q 
In a purchase contract a buyer has 45 days to conduct environmental research on a property. This is referred to as:
A. Time is of the essence
B. Due diligence 
C. A title search
D. Disclosure
A

B. Due diligence

130
Q 
The owner of a property with condition subsequent has a(n)
A. Remainder interest
B. Defeasible estate
C. Less then a freehold interest
D. Estate for years
A

B. Defeasible estate

131
Q

If the listing broker is aware that the property is on a septic tank but the buyer broker submits an offer incorrectly stating that the property is connected to the sewer the listing broker should
A. Not present the offer due to the incorrect information
B. Ignore the issue
C. Suggest a counter offer correcting the misinformation
D. Not disclose the error to the seller nor buyers broker

A

C. Suggest a counter offer correcting the misinformation

132
Q 
The maker of a will is the
A. Testator 
B. Administrator
C. Divisor
D. Executor
A

A. Testator

133
Q 
Two individuals hold property as tenants in common. The partners cannot agree on a way to dissolve their ownership. What legal action could be used to dissolve the tenancy in common?
A. Suit to quiet title
B. Suit for severance
C. Foreclosure
D. Suit for partition
A

D. Suit for partition

134
Q

A woman and her brother hold property in joint tenancy. If the woman deeds her part to her husband:
A. The joint tenancy is broken
B. The deed to the husband is invalid
C. All three now hold title in joint tenancy
D. The husband and brother now hold title in joint tenancy

A

A. The joint tenancy is broken

135
Q 
A real property gift by will is a 
A. Demise
B. Devise
C. Bequest
D. Legacy
A

B. Devise

136
Q 
A contract created by two parties stating their intentions either orally or in writing is referred to as a(n)
A. Executed contract
B. Executory contract
C. Implied contract
D. Expressed contract
A

D. Expressed contract

137
Q 
Regarding comparables an appraiser would disregard all of the following sales EXCEPT a sale
A. Between relatives 
B. To a government agency 
C. Through condemnation
D. At arms length
A

D. At arms length

138
Q

When using the comparative method an appraiser would make an adjustment for all of the following items EXCEPT
A. Comparable properties in a different neighborhood
B. Comparable properties of different square footage
C. A selling price over six months
D. Financing terms the same as the subject property

A

D. Financing terms the same as the subject property

139
Q

Which of the following items would be LEAST important in the market data approach
A. Date of sale
B. Neighborhood appearance
C. Condition and appearance of the property
D. Original cost of the property

A

D. Original cost of the property

140
Q 
All of these items are used in the income approach EXCEPT
A. Depreciation 
B. Rent schedule 
C. Operating expenses 
D. Capitalization rate
A

A. Depreciation

141
Q 
A corporation would take title in partnership with an individual in which of the following ways?
A. Tenancy in common
B. Joint tenancy
C. Tenancy by the entireties
D. Severalty
A

A. Tenancy in common

142
Q 
Which of the following clauses would NOT usually be found in a commercial lease?
A. Rent escalator clause
B. Condemnation clause
C. Quiet enjoyment
D. Acceleration clause
A

D. Acceleration clause

143
Q 
G offers a property for sale. S offers to purchase the property. Concerning the purchase contract:
A. G is the offeree
B. G is the offeror
C. S is the offeree
D. The broker is the offeror
A

A. G is the offeree

144
Q 
An insurance company not insuring a property due to its location may be guilty of:
A. Redlining
B. Blockbusting
C. Steering
D. Misrepresentation
A

A. Redlining

145
Q

A broker is considered to have EARNED a commission when
A. The seller signs a listing agreement
B. The broker produces an offer from a purchaser who is ready willing and able to purchase the property on the terms set by the listing agreement
C. Purchaser has qualified for the financing
D. A sale is completed between the seller and a purchaser who was procured by the broker

A

B. The broker produces an offer from a purchaser who is ready willing and able to purchase the property on the terms set by the listing agreement

146
Q

The real estate settlement & procedures act of 1974
A. Gives the buyers a chance to cancel the sales contract if it would get them into financial difficulty
B. Provides more time to raise money for the home purchase
C. Allows the home buyer to understand settlement costs and determine how much money will be needed at closing
D. Insured that the lender institution will not charge an interest rate above the legal limit

A

Allows the home buyer to understand settlement costs and determine how much money will be needed at closing

147
Q

A landlord sells a property. Without any stipulation in the lease
A. An estate at will would be automatically
B. New leases would have to be negotiated
C. Existing leases remain in force
D. The lease would revert to the lessor

A

C. Existing leases remain in force

148
Q 
The statute of frauds sets forth the requirement that to be enforceable a deed must be
A. Recorded
B. Notarized
C. Prepared on a standard form
D. In writing
A

D. In writing

149
Q 
Which of the following elements is essential to a valid contract?
A. Written contract
B. Words of conveyance
C. Consideration
D. Acknowledgment
A

C. Consideration

150
Q 
In Arizona a renewable water resource that has application to obtaining a 100 year assured water supply 
A. Local water wells
B. The central Arizona project
C. Water conservation
D. Grandfathered water rights
A

B. The central Arizona project

151
Q

In Arizona a deed of trust is used
A. To convey title after a foreclosure sale
B. To secure the sellers interest in an agreement
C. To secure the lenders interest
D. To secure the borrowers interest

A

C. To secure the lenders interest

152
Q

A purchaser buys a lot from a subdivider prior to receiving the public report. Which of the following statements is INCORRECT
A. The sale is voidable by the purchaser
B. The purchaser can accept title without issuance of the public report
C. The sale is revoked and the purchaser loses his deposit
D. The purchaser must take legal action to void the sale within 3 years

A

C. The sale is revoked and the purchaser loses his deposit

153
Q 
A deed of trust conveys the
A. Legal title to the trustee
B. Equitable title to the trustee
C. Legal title to the beneficiary 
D. Equitable title to the trustor
A

A. Legal title to the trustee

154
Q 
What is the time period within which the trustee must deliver the deed of release and reconveyance to the trustor when a note secured by a trust deed is paid in full
A. 30 days
B. 90 days
C. 6 months
D. 1 year
A

A. 30 days

155
Q

What is the first step taken after the notice of default and trustees sale is recorded in a non-judicial trust deed foreclosure?
A. The notice is sent to the debtor
B. The debtor has 60 days to redeem
C. Trustor will file lis pendens
D. Trustee will order the beneficiary to proceed with the foreclosure

A

A. The notice is sent to the debtor

156
Q 
The Arizona residential landlord tenant act addresses all of the following areas EXCEPT
A. Non-payment of rent
B. Property managements
C. Forcible entry and detainer actions
D. Self-help for minor defects
A

B. Property management agreements

157
Q 
All of the following procedures relate to a trust deed foreclosure EXCEPT
A. Judicial foreclosure 
B. Forfeiture
C. Non-judicial foreclosures 
D. Recorded notice of sale
A

B. Forfeiture

158
Q 
All of the following are associated with a non-judicial foreclosure of a trust deed EXCEPT
A. Right of redemption 
B. Right of reinstatement
C. Beneficiary 
D. Recorded notice of sale
A

A. Right of redemption

159
Q

The purpose of an affidavit of value is to
A. Allow a manufactured home to be taxed as real estate
B. Set the market value of the property
C. Report the sale price to the IRS
D. Inform the assessor of the sale price

A

D. Inform the assessor of the sale price

160
Q 
In Arizona which of the following property classifications has the highest assessed value ratio?
A. Owner occupied residential
B. Fully occupied apartment building
C. Vacant land
D. Vacant shopping center
A

D. Vacant shopping center

161
Q 
An active management area is an area in which
A. Excessive overdraft is occurring
B. Excessive irrigation is occurring
C. Surface water is actively managed
D. No new wells can be drilled
A

A. Excessive overdraft is occurring

162
Q 
An applicant for a real estate salespersons license must
A. Be an Arizona resident
B. Be a United States citizen
C. Have a high school diploma
D. Complete a licensure disclosure form
A

D. Complete a licensure disclosure form

Real estate (5 decks)

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