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222 Cards in this Set

  • Front
  • Back
Arizona property taxes are based on:
a. Pro rata share
b. Assessed value
c. Front footage
d. Transfer value
b. Assessed value
The tax rate applied to owner occupied residential property is:
a. 10%
b. 12%
c. 14%
d. 16%
a. 10%
Which of the following liens would have priority?
a. Recorded mechanics liens
b. Unrecorded mechanics liens
c. IRS liens
d. Property taxes
d. Property taxes
Property taxes become a lien the first day of:
a. January
b. October
c. November
d. March
a. January
If a property is not bid at a tax foreclosure sale:
a. The excess rebate goes to the property owner
b. Anyone can buy the property from the Treasurer
c. All other liens are terminated
d. The property can only be sold next February
b. Anyone can buy the property from the Treasurer
Rank the following liens in the order of their priority from highest to lowest: IRS lien, Property
Taxes, Special Assessments.
a. IRS lien, Property Taxes, Special Assessments
b. Property Taxes, Special Assessments, IRS Liens
c. Property Taxes, IRS Liens, Special Assessments
d. . IRS Liens, Special Assessments, Property Taxes
b. Property Taxes, Special Assessments, IRS Liens
When a broker misappropriates funds, this is called?
a. Conversion
b. Commingling
c. Conveyance
d. Consideration
a. Conversion
What type of property would pay the most taxes:
a. Vacant land
b. Shopping center
c. Parking lot
d. Residential housing
b. Shopping center
What is the priority of property tax liens?
a. Date recorded
b. After IRS liens
c. Always in first position
d. After the homestead exemption
c. Always in first position
When are the first half property taxes delinquent?
a. October 1
b. November 1
c. March 1
d. May l
b. November 1
Arizona real property taxes are based on:
a. Ad valorem
b. Assessed value
c. Per front foot
d. Pro rata share
b. Assessed value
The two designations or classifications of water law in Arizona are:
a. Navigable and non-navigable
b. Ground and surface
c. Flowing and stagnant
d. None of these
b. Ground and surface
Taxes are assessed on:
a. Improvements on the land
b. Value of the property
c. Amount paid for the property
d. Assessments on the property
b. Value of the property
The Doctrine of water usage in Arizona is known as:
a. Riparian
b. Prior appropriation
c. Reliction
d. Reliction back
b. Prior appropriation
Water rights in Arizona are:
a. A constitutional right of property owners
b. Indefeasible by right of law
c. Federal right
d. . First in time, first in right
d. . First in time, first in right
In Arizona, property taxes are payable:
a. Twiceayear
b. 90 days after bill received
c. January 1st every year
d. On the Fiscal year
a. Twiceayear
When a party owns land on a non-navigable stream it is said that they hold title to:
a. Low water mark
b. High water mark
c. As stated in the original legal description
d. Must be determined by a surveyor
a. Low water mark
When the county assessor evaluates real estate for the purpose of taxation, this is called:
a. Loan to value
b. Dollar value
c. Mill value
d. Assessed value
d. Assessed value
Real estate taxes are levied in Arizona:
a. Twice a year
b. Once a year
c. Every five years
d. Quarterly
b. Once a year
Second half real estate taxes are due:
a. January 1st
b. October 1st
c. November 1st
d. March 1st
d. March 1st
Once a homeowners association establishes the assessments they are paid:
a. Annually based on costs
b. Quarterly based on costs
c. Annually based on the homeowner's association’s budget
d. Quarterly based on the developer’s budget
c. Annually based on the homeowner's association’s budget
Which of the following liens are paid first after a foreclosure?
a. 1st mortgage
b. Mechanics liens
c. IRS liens
d. Property taxes
d. Property taxes
The doctrine of water usage in Arizona is known as:
a. Riparian
b. Prior appropriation
c. Reliction
d. Reliction back
b. Prior appropriation
At the end of the three year tax redemption period a person who holds the certificate
purchase:
a. Must foreclose
b. May extend the period
c. Will automatically obtain title
d. The period is automatically extended
b. May extend the period
The Homestead Exemption in Arizona is now set at:
a. 20,000
b. 50,000
c. 75,000
d. 100,000
d. 100,000
Homestead exemption will protect a person against which of the following?
a. Subsequent liens
b. Mechanics liens
c. Unforeseen personal judgments
d. Secured loans
c. Unforeseen personal judgments
What will not terminate a homestead exemption?
a. Selling the property
b. Moving out of the property
c. Buying other property
d. Filing an abandonment of homestead
c. Buying other property
If a husband and wife own community property and the husband dies, who receives the
husband’s half?
a. Wife in all cases
b. 1/2 wife, 1/2 heirs
c. Heirs
d. Children 3/4, wife 1/4
c. Heirs
A Declaration of Homestead may be terminated for all of the following except:
a. Filing an abandonment of homestead
b. Death of one spouse
c. Moving out of the property
d. Converting the property to a rental
b. Death of one spouse
What action will void a homestead?
a. Declaring bankruptcy
b. Filing joint tenancy
c. Declaring primary residence in another state
d. Death of a spouse
c. Declaring primary residence in another state
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. Community property
You homestead your property then default on a loan for $50,000 secured with a note and Deed
of Trust. How much does the one foreclosed on owe:
a. Nothing
b. 50,000
c. 90 days of payment
d. 6 months of payment
b. 50,000
Which of the following is not required to appear on a listing agreement?
a. Property taxes
b. Beginning and ending date
c. Sufficient description
d. Construction cost
d. Construction cost
A property that is in foreclosure has had a valid homestead recorded, what is the status of the
foreclosure:
a. Homestead will protect the equity
b. Homestead will delay the foreclosure
c. Foreclosure will continue as normal
d. Lender may only obtain the amount over the homestead limit
c. Foreclosure will continue as normal
Which of the following would not apply to community property with right of survivorship?
a. Step up in basis
b. Avoiding probate
c. Willing to a third party
d. Can only be held by husband and wife
c. Willing to a third party
All of the following deeds will convey title except...
a. General Warranty
b. Special Warranty
c. Quit Claim
d. Disclaimer
d. Disclaimer
Which of the following would not appear on a public report?
a. Utilities
b. Title condition
c. Market value
d. Legal description
c. Market value
When a lot is sold outside of a subdivision, which of the following must appear in the deed?
a. Zoning ordinances
b. Square footage
c. Water rights
d. No ingress or egress exists
d. No ingress or egress exists
An affidavit of Value would contain all of the following except...
a. Consideration
b. Tax transfer stamps
c. Description
d. Signatures
b. Tax transfer stamps
What is the purpose of an affidavit of value?
a. Assist the County Assessor in determining property values
b. To meet IRS requirements
c. To assist in determining capital gains tax
d. To assist the State Treasurer in sales tax revenue
a. Assist the County Assessor in determining property values
In Arizona you may obtain title under which of the following?
a. Easement by prescription
b. Adverse possession
c. License action
d. Disclaimer deed
b. Adverse possession
Which of the following coverage would not be included in an owners policy of title insurance?
a. Forged documents
b. Unknown heirs
c. Parties in adverse possession
d. Recorded mechanics liens
c. Parties in adverse possession
Which of the following would not be covered in a standard owners policy of title insurance:
a. Easements obtained by prescription
b. improper delivery
c. Conveyance made by a minor
d. Forged documents
a. Easements obtained by prescription
An owners title policy would protect you against whicfl or me Toliowing:
a. Encroachments
b. Survey error
c. Unrecorded easements
d. Forgery
d. Forgery
In Arizona a deed must be signed by the:
a. Grantee
b. Mortgagor
c. Grantor
d. Trustor
c. Grantor
A deed is acknowledged in Arizona to:
a. Show the intent of the grantee
b. Meet the recordation requirements
c. Meet state law
d. Meet the statute of frauds
c. Meet state law
A licensed contractor is hired and paid in full directly by the owner of a commercial property. The general contractor fails to pay the subcontractors for the work they performed. The general contractor then files bankruptcy and the subcontractor files a mechanics lien within 125 days from the completion of his work. In this situation which of the following is true regarding the subcontractor:
a. The lien is not valid because the owner did not hire the subcontractor
b. The lien is not valid because it was not recorded within the required time period
c. The lien is not valid because the owner paid the general contractor in full
d. The lien is valid as long as a foreclosure action is taken within 100 days of recording the lien
b. The lien is not valid because it was not recorded within the required time period
How long does a subcontractor have to file his mechanics lien?
a. 60 days after completion
b. 60 days from contract date
c. 90 days after completion
d. 120 days after completion
d. 120 days after completion
Which of the following would not be involved in a Deed of Trust?
a. Trustor
b. Trustee
c. Beneficiary
d. Vendor
d. Vendor
A defeasance clause in a Deed of Trust allows for:
a. The trustee to foreclose
b. Cancellation of the lender’s claim upon full note payment
c. Lenders protection against forgery
d. Non assumability of a loan
b. Cancellation of the lender’s claim upon full note payment
If one was to research the county public records one would always find:
a. Loans on the property
b. Adverse possession
c. Easements.
d. Mechanics’ liens
d. Mechanics’ liens
When a Deed of Trust is satisfied, the trustee sends out a:
a. Satisfaction of mortgage
b. Defeasance clause
c. Deed of reconveyance
d. Warranty deed
c. Deed of reconveyance
An owner hires a general contractor to build a commercial project The owner pays the general in full but the general fails to pay the sub-contractors. Which of the following statements are true?
a. The subs can only look to the general for payment’
b. The subs can file a mechanics lien against the property
c. The subs cannot file a mechanics lien
d. The subs must wait for the general to file the mechanics lien
b. The subs can file a mechanics lien against the property
Who would sign the deed of reconveyance?
a. Trustor
b. Trustee
c. Beneficiary
d. Sheriff
b. Trustee
Naked legal title best describes the interest of:
a. Trustee under a trust deed
b. Trustee in an agreement for sale
c. Trustee in a mortgage
d. Beneficiary to owner
a. Trustee under a trust deed
What is not true regarding a mechanics lien?
a. General contractor has 120 days to file a lien
b. Sub-contractor has 120 days to file a lien
c. A mechanics lien may be filed at any time
d. A mechanics lien is valid for six months
c. A mechanics lien may be filed at any time
Property taxes are what type of lien?
a. General
b. Specific
c. Inchoate
d. Incorporeal
b. Specific
Which of the following could not be part of a Deed of Trust:
a. Judicial foreclosure
b. Non judicial foreclosure
c. Statutory forfeiture period
d. Reinstatement period
c. Statutory forfeiture period
An Assignment of Rent Clause is for the benefit protection of the:.
a. . Trustor
b. Beneficiary
c. Trustee
d. Mortgagor
b. Beneficiary
A mechanics lien is placed on title by a general contractor:
a. 90 days from the start of the job
b. 120 days after job is completed
c. 60 days from the start of the job
d. 60 days after completion
b. 120 days after job is completed
When do you file a mechanics lien:
a. Beginning of work
b. Completion of work
c. Six months after completion
d. After obtaining a judgment
b. Completion of work
A mechanic’s lien may be filed by:
a. The utility company
b. Construction employee
c. The auto mechanic
d. The lumber supplier
d. The lumber supplier
What will not terminate a homestead exemption?
a. Selling the property
b. Moving out of the property
c. Buying other property
d. Filing an abandonment of homestead
c. Buying other property
Mechanics lien take priority:
a. Date recorded
b. Date work began
c. 90 days after work began
d. 6 months after work began
b. Date work began
Which of the following liens have first priority:
a. IRS
b. Property taxes
c. First mortgage
d. Recorded judgments
b. Property taxes
If you have been given notice of a possible future lien this lien is probably:
a. Property taxes
b. Mechanics lien
c. Property insurance
d. Purchase money mortgage
b. Mechanics lien
A general contractor does work for a tenant in a commercial leased space. The tenant fails to
pay the contractor, which of the following is true regarding the mechanic’s lien?
a. The contractor may not file a lien
b. The contractor will lien the entire building
c. The contractor can only lien the leasehold interest
d. The contractor must have the owners permission to file a lien
c. The contractor can only lien the leasehold interest
A tenant hires a mechanic to construct a patio roof. The tenant refuses to pay the amount
owed; the mechanic may file a lien against:
a. Beneficiary
b. . Mortgagor
c. Tenant’s improvements
d. Owner
c. Tenant’s improvements
When could a person receive legal title to the property under an Agreement for Sale?
a. Upon paying 30 percent of the price with 20 day notice to vendor
b. Upon the last payment
c. Upon paying 50 percent of purchase price
d. When the agreement was recorded
b. Upon the last payment
A buyer buys a property under an Agreement for Sale with only 10 percent down. The buyer
then leaves town and abandons the property. Which of the following statements are true?
a. Seller must go through a foreclosure process
b. Buyer will forfeit his equity after a specific time period
c. Buyer will automatically lose his equity
d. Buyer has a 90-day reinstatement period
b. Buyer will forfeit his equity after a specific time period
Which of the following instruments contain the note and security in one document?
a. Agreement for sale
b. Exchange contract
c. Lease with first right to refuse
d. Purchase-money mortgage
a. Agreement for sale
The forfeiture period on a land contract is:
a. A reinstatement period as agreed by the parties
b. A specific statutory period of time
c. 90 days after constructive notice
d. 6 months after actual notice
b. A specific statutory period of time
At a mortgage foreclosure sale if the property is abandoned the statutory period of redemption
can be cut to which of the following times?
a. 30 days
b. 60 days
c. 90 days
d. 120 days
a. 30 days
A commercial project was in foreclosure and after the sale the mortgagee did not receive
enough money to satisfy the note. Which of the following statements are true?
a. The lender can sue the borrower for deficiency judgment
b. The lender would not be able to sue for deficiency judgment
c. The lender~s only recourse is the property
d. The lender would first have to honor the property homestead
a. The lender can sue the borrower for deficiency judgment
property has a first note and Deed of Trust for $20,000 and a second note and Deed of Trust for $10,000. The first is in default and the lender agrees to take back a quit claim deed. What is the position of the $10,000 second?
a. The quit claim deed eliminated the second
b. The second must be paid before a quit claim can be given on the first
c. The second is now in first position
d. The $10,000 is still in second position
c. The second is now in first position
A buyer obtains a loan on a parcel of land secured by a Deed of Trust. Later the buyer moves
a mobile home on the lot and defaults on the Deed of Trust. Which of the following is true?
a. Lender may foreclose on the land and mobile home
b. Lender may not foreclose under the homestead act
c. Lender may foreclose on the land only
d. Lender may foreclose on the mobile home only
c. Lender may foreclose on the land only
After a Deed of Trust Foreclosure sale which of the following is true?
a. A Deed of Re-conveyance 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
c. A trustee’s deed is given to the new owner
Which of the following would not be part of an agreement for sale:
a. Statutory notice
b. Account servicing agreement
c. Trustee notice
d. Forfeiture rights
c. Trustee notice
State usury laws would set:
a. Interest rates
b. Recision laws
c. Disclosure
d. Advertising restrictions
a. Interest rates
A land contract has an acceleration clause and is now in default. Which of the following is true?
a. No acceleration clause is allowed in a land contract
b. Vendor can forfeit the vendee's equity immediately
c. Once the acceleration clause is exercised, you would foreclose as a mortgage
d. The vendee would have a d0-day reinstatement period
c. Once the acceleration clause is exercised, you would foreclose as a mortgage
A seller may accelerate payment on a land contract if the buyer defaults
a. If foreclosed as a mortgage
b. If foreclosed as a Deed of Trust
c. If the seller uses the forfeiture provisions
d. if the loan has a subordination clause
a. If foreclosed as a mortgage
Who benefits from a non-disturbance clause in a loan?
a. Seller of the property
b. New buyer of the property
c. Tenant leasing the property
d. Broker who sells the property
c. Tenant leasing the property
What is the primary difference between an agreement for sale and a purchase money mortgage?
a. A purchase money mortgage contains the note and security all in one document
b. The purchase money mortgage is the evidence of the debt
c. The agreement for sale contains the note and security all in one document
d. The agreement for sale is used only when selling land
c. The agreement for sale contains the note and security all in one document
What is not part of the property manager's responsibilties?
a. Ethics
b. Keeping up with rental rates in the area
c. Telling the owner the market value of the building
d. Keeping current with vacancies
c. Telling the owner the market value of the building
What is not required of a property manager?
a. Register prospective tenants
b. Collect rents
c. Acts as a general agent
d. Keep up with current rental rates
a. Register prospective tenants
Which of the following may a property manager not receive?
a. Reimbursement for out of pocket expenses
b. Free rent on an apartment unit
c. Monthly management fee
d. Rebates from suppliers
Which of the following may a property manager not receive?
a. Reimbursement for out of pocket expenses
b. Free rent on an apartment unit
c. Monthly management fee
d. Rebates from suppliers
What is not part of a typical property management agreement?
a. Beginning and ending date
b. Frequency of management reports
c. Thirty day cancellation clause
d. Annual budget
d. Annual budget
Which of the following would not be part of the landlord tenant act?
a. Security deposits regulations
b. Property management regulations
c. Notice for eviction
d. Notice of self help repairs
b. Property management regulations
A landlord wishes to show a party your apartment. He may do so with which of the following
notices:
a. 24 hours
b. 48 hours
c. 72 hours
d. 6 hours
b. 48 hours
All of the following can be signators on a property management trust account except
a. Designated Broker
b. Managers licensed under the broker
c. Property owner
d. Employees of the broker
c. Property owner
Which of the following is not true regarding a property management trust account:
a. Multiple properties can be in one trust account
b. A salesperson can be a signator on the trust account
c. A salesperson signator may sign checks paying miscellaneous maintenance fees
d. Only licensed signators are permitted
d. Only licensed signators are permitted
Property management agreement doesn’t deal with which of the following:
a. Commissions
b. Rents
c. Building age
d. Frequency of reports
c. Building age
If a property is damaged by fire and the tenant moves out, which of the following statements
are true:
a. Tenant may terminate the lease with a 14 day written notice
b. Tenant may terminate the lease with a 10 day written notice
c. Tenant may terminate the lease with a 7 day written notice
d. Tenant may terminate the lease with a 3 day written notice
a. Tenant may terminate the lease with a 14 day written notice
A property management agreement may be terminated:
a. By a ruling of the real estate department
b. Within 10 day written notice by either party
c. Within anytime that was agreed to in the agreement
d. With a majority consent of the lessee’s
c. Within anytime that was agreed to in the agreement
In order to terminate a month-to-month lease, a person would be required to give:
a. 10 days notice
b. 14 days notice
c. 21 days notice
d. 30 days notice
d. 30 days notice
When a tenant fails to pay rent, the landlord would first deliver to the tenant which of the following?
a. Judgement
b. 5 day notice
c. Forcible detainer
d. Abandonment notice
b. 5 day notice
A Property management company is required to keep a copy of all residential rental agreements upon expiration for a period of?
a. One year
b. Three years
c. Five years
d. Six Years
a. One year
All of the following are true regarding security deposits on residential property except...
a. Landlord may collect up to one and one half times the monthly rent
b. Tenant may pay in excess of one and one half times the monthly rent if agreed
c. Landlord may charge one and one half times monthly rent plus first and last months rent
d. Landlord may charge a non-refundable cleaning deposit
c. Landlord may charge one and one half times monthly rent plus first and last months rent
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. l0 days
c. 14 days
d. 21 days
c. 14 days
If the landlord fails to give the tenant a full accounting of the security deposit within the required time, which of the following is true?
a. The landlord would be liable for twice the amount wrongfully held
b. The landlord would be liable for three times the amount wrongfully held
c. The landlord would only be required to return the original deposit plus interest
d. The landlord would be required to return the original deposit plus twice the amount of interest
a. The landlord would be liable for twice the amount wrongfully held
All of the following disclosures are required to be given by the landlord to the tenant except:
a. Name of the person authorized to manage the unit
b. Notify the tenant that a free copy of the landlord tenant act is available at the Secretary of State’s office
c. Name of the person who is to receive all notices and demands
d. Name and address of the property owner
d. Name and address of the property owner
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
b. 5
c. 7
d. 10
d. 10
If the landlord fails to comply with the rental agreement the tenant may terminate the lease if
the breach is not corrected in how may days?
a. 3 days
b. 7 days
c. 10 days
d. 14 days
c. 10 days
If the landlord fails to comply with the rental agreement in matters affecting health and safety
the tenant may terminate the lease if the breach is not corrected in how many days?
a. 3 days
b. 5 days
c. l0 days
d. 14 days
b. 5 days
All of the following are true regarding self-help for minor defects except...
a. Tenant must give the landlord ten days to comply
b. All notices given to the landlord must be in writing
c. Tenant may spend up to 1/2 month rent or $300 whichever is greater
d. Tenant may deduct work from rent in the amount of twice the rent
d. Tenant may deduct work from rent in the amount of twice the rent
Before the commissioner issues a public report on subdivided land, the subdivider may not:
a. Take lot reservations
b. Enter into a binding contract
c. Advertise the lots for sale
d. Begin lot improvements
b. Enter into a binding contract
All of the following can be used in a developers’ public report advertisement except:
a. Specific prices
b. The public report is an endorsement of the project
c. Names of the owners and past history
d. Future plans of the general area
b. The public report is an endorsement of the project
As of June 30th of any year, the real estate recovery fund must maintain a balance of
a. 200,000
b. 250,000
c. 300,000
d. 600,000
d. 600,000
How long are the real estate exam tests scores valid for?
a. One year
b. Two years
c. Three years
d. Four years
How long does a broker need to keep his records?
a. 2 years
b. 3 years
c. 4 years
d. 5 years
The commissioner may deny a public report for all of the following reasons EXCEPT:
a. The property is without ingress or egress
b. The owners have previously declared bankruptcy
c. The owner can’t produce perfect title
d. The owner can’t produce marketable title
c. The owner can’t produce perfect title
All listings must be in writing to be enforceable according to:
a. Arizona Constitution Article XXVI
b. Law of Agency
c. Arizona Revised Statutes
d. . R.E.S.P.A.
c. Arizona Revised Statutes
The commissioner has the power to do all of the following acts EXCEPT:
a. Prescribe rules and regulations
b. Investigate signed written complaints
c. Examine office records
d. Create real estate statutes
d. Create real estate statutes
After passing the real estate exam, a licensee must activate his license within:
a. Six months of the examination date
b. Six months of notification of passing the test
c. One year of the examination date
d. Three years of the examination date
c. One year of the examination date
Unless otherwise specified, a broker is required to deposit earnest monies in escrow or a trust
account:
a. Upon the buyer’s acceptance
b. Upon seller’s acceptance
c. By the close of the next business day
d. Within 72 hours of receipt
c. By the close of the next business day
The commissioner may deny a public report on a subdivision because of the subdivider’s
inability to:
a. Provide buyers with water rights
b. Provide building permits
c. Deliver clear title
d. Provide floor plans
c. Deliver clear title
Who may accept a commission from an out of state broker?
a. The referring salesperson
b. The referring broker
c. Unlicensed property manager
d. Any individual who made the referral
b. The referring broker
If a broker abandons or moves his real estate office and fails to notify the commissioner,
Which of the following is true according to Arizona Statutes?
a. He may receive a warning from the Real Estate Department
b. He will be fined $1000.00
c. His license will be automatically revoked
d. He might be fined up to $500.00
c. His license will be automatically revoked
A broker receives an oral offer over the telephone. What should he do?
a. Refuse to present it until it is in writing
b. Refuse to present it unless he has earnest money
c. He must present the oral offer
d. Tell the buyer that oral offers are illegal
c. He must present the oral offer
A licensee may not charge for document preparation as a result of what of the following:
a. Rules and Regulations
b. Arizona Statutes
c. Arizona Constitution Article XXVI
d. Law of Agency
c. Arizona Constitution Article XXVI
Which of the following is not required for a sales license in Arizona?
a. . 90 hours of education
b. 90 day residence
c. Pass an examination
d. Minimum age
b. 90 day residence
A broker prepares documents at a cost of $35. Which of the following is true?
a. He cannot charge for the service
b. He may charge if the parties agree
c. He may charge if it is considered an escrow fee
d. He may charge if the fee was negotiated
a. He cannot charge for the service
What happens when a brokers license expires?
a. The salespeople lose their licenses
b. The salespeople must find another broker
c. The salespeople may continue to work
d. the broker may work for an additional ninety days tenant may deduct work from rent in the amount of twice the rent
b. The salespeople must find another broker
How many brokers can a licensee work for at the same time in Arizona?
a. One at a time
b. Two with Department approval
c. Two if he declares he is inactive
d. two if one is a property manager
a. One at a time
When a complaint is filed against a licensee, which of the following is true.
a. The licensee is automatically suspended
b. The commissioner must conduct an investigation
c. The license is revoked
d. The licensee is suspended until a hearing is held
b. The commissioner must conduct an investigation
When a licensee leaves a broker, the license:
a. Goes with the licensee
b. Is sent to the real estate department
c. Remains on the brokers wall
d. Is automatically terminated
b. Is sent to the real estate department
When the commissioner receives a written complaint against a licensee:
a. He will automatically suspend the license
b. He will revoke the license
c. He will turn the matter over to the courts
d. A hearing will be held before any suspension
d. A hearing will be held before any suspension
Which of the following would not be required to appear on a brokers trust account deposit
Receipt:
a. Name of the principals
b. Date of deposit
c. Name of the brokerage
d. Deposit break down and amount
c. Name of the brokerage
Arizona Subdivision law would be found in which of the following articles:
a. Article 2
b. Article 3
c. Article 4
d. Article 5
c. Article 4
A broker informed his clients that “there is no need to consult your attorney concerning this
Contract. I am authorized by law to handle the necessary forms.” The licensee is acting:
a. Appropriately in his fiduciary capacity
b. Within the “Rules and Regulations” of the Commissioner
c. In violation of the Constitution of Arizona
d. In violation of the “Rules and Regulations” of the Commissioner
d. In violation of the “Rules and Regulations” of the Commissioner
A subdivider employed hostesses to show houses. The hostesses explained the features of
the homes and quoted prices and terms. In this instance:
a. Only the broker need be licensed
b. The hostesses are employees only and need no license
c. The hostesses must be licensed real estate salespeople
d. As long as the hostesses do not accept deposits and do not write contracts, the hostesses need not be licensees
c. The hostesses must be licensed real estate salespeople
You buy unimproved land in a subdivision sight unseen; you have how long to rescind the contract?
a One year
b Six months
c Three months
d Ninety days
b Six months
Who appoints the Arizona Real Estate Commissioner
a. State legislature
b. Governor
c. Popular vote
d. Elected official
b. Governor
Who is responsible for formulating the Rules and Regulations in Arizona?
a. State Legislature
b. Governor
c. Real Estate Commissioner
d. Attorney General
c. Real Estate Commissioner
When a broker moves his office, how long does he have to remove his sign?
a. Six months
b. Ten days
c. Immediately
d. Thirty days
c. Immediately
Right to license real estate agents comes from the:
a. Commissioner
b. State Legislature
c. Municipalities
d. County Government
b. State Legislature
If you do not renew your license on time your license wilt be:
a. Suspended
b. Terminated
c. Valid
d. Unaffected
b. Terminated
When a commission dispute arises between two licensees their recourse would be to:
a. Appeal to the Real Estate Commissioner
b. Appeal to the employing broker
c. Seek relief through civil action
d. Appeal to the advisory board
c. Seek relief through civil action
For a licensee to be paid a real estate commission a license is required:
a. At the close of escrow
b. When all documents are recorded
c. When earnest money is accepted
d. At the time of the sale
d. At the time of the sale
A public report will be denied a developer for all of the following reasons EXCEPT:
a. Failure to deliver marketable title
b. Not providing detailed floor plans
c. Failure to advertise use as the actual use
d. Not able to show financial ability to complete the project
b. Not providing detailed floor plans
When the designated broker is on a temporary absence, all of the following are true
EXCEPT:
a. Temporary absence is 30 days or less
b. Salesperson be appointed as a designated representative
c. Temporary absence relieves the designated broker of responsibility
d. Written evidence of a designated representative must be kept for five years
c. Temporary absence relieves the designated broker of responsibility
Which applies to the statute of fraud?
a. All leases need to be in writing
b. Defines misrepresentation
c. Real estate contracts must be in writing
d. All personal property contracts must be notarized
c. Real estate contracts must be in writing
Which of the following need a real estate license?
a. Person giving information about subdivision
b. Receiver in bankruptcy
c. Trustee handling a trust
d. Attorney at law in the course of business
a. Person giving information about subdivision
The Commissioner can refuse a subdivision because:
a. The commissioner fears the subdivision will not be economically profitable
b. Subdivider has filed previous bankruptcy
c. The subdivider fails to provide floor plan
d. The commissioner fears the properties have no real value
b. Subdivider has filed previous bankruptcy
In Arizona the right of the licensee to prepare certain legal documents and forms comes from:
a. US constitution
b. Federal law
c. Arizona constitution
d. Local ordinance
c. Arizona constitution
Subdivider must be able to give the purchaser:
a. Building permits
b. Permanent access
c. Water rights
d. Perfect title
b. Permanent access
What can’t the real estate commissioner do in the normal tine of work:
a. Check files of licensee
b. Hold an active real estate license
c. Hire and fire Department of Real Estate employees
d. Revoke a real estate license
b. Hold an active real estate license
If you buy a parcel of land in which a CPR 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
c. 3 years
A real estate broker is required to have all of the following except:
a. Trust account
b. Day to day control of the business
c. Use the brokerage name when advertising
d. Have an acting manager at each branch office
d. Have an acting manager at each branch office
Which of the following statements is true regarding a broker trust account:
a. It may contain up to $600 of the broker’s personal funds
b. The broker may not pay other bills with the trust money
c. The salesperson can be a signator on the account
d. All trust accounts must be bonded
c. The salesperson can be a signator on the account
In order to renew a real estate license you need how many hours of classroom education
every two years:
a. 12
b. 16
c. 18
d. 24
d. 24
Which is not the responsibility of a real estate agent:
a. Inform the real estate department of change of address in 10 days
b. Do whatever the broker says
c. Turn earnest money over to the broker
d. Act as a sub-agent
b. Do whatever the broker says
Which of the following is NOT true regarding a brokers trust account
a. It may be interest bearing
b. The salesperson may be an authorized signator
c. The salesperson may withdraw trust money to pay commissions
d. A trust account may contain up to $500 of the broker’s personal funds
c. The salesperson may withdraw trust money to pay commissions
Which of the following is NOT required of a real estate broker
a. Keep a copy of all contracts for 5 years
b. Have day to day control of the operation
c. Maintain a neutral trust account
d. Approve advertising material before publication
c. Maintain a neutral trust account
If you are an active licensee your license:
a. May be kept in the licensee possession
b. Remain on file with the broker
c. Remain on your person
d. Remain with the state
b. Remain on file with the broker
When a broker is charged with an administrative fine the amount of the fine is:
a. $100
b. $500
c. $1000
d. $5000
c. $1000
A temporary broker license can be obtained by another party for all except:
a. Broker dies
b. Broker declared insane
c, Broker injured
d. Broker is on an extended vacation
d. Broker is on an extended vacation
A subdivision public report would be required on all of the following properties except?
a. Residential time share
b. New home sales
c. Apartments converted to condo
d. Commercial lots
d. Commercial lots
Upon conviction of a felony or misdemeanor a licensee must notify the real estate department within…
a. 3 days
b. 7 days
c. l0 days
d. 14 days
c. l0 days
Which of the following listed below would be a violation of the commissioner’s rules?
a. Arizona broker paying a referral fee to an out of state broker
b. Inducing a party to breach a contract
c. Opening an interest bearing trust account
d. Representing both buyer and seller in a transaction
b. Inducing a party to breach a contract
Which is false about a contract that does not have a CPR?
a. You may void the contract but will lose your deposit
b. You may still buy the property
c. You have a voidable contract for 3 years
d. You as a buyer are not receiving full protection
a. You may void the contract but will lose your deposit
Who may initial a purchase contract per commissioner’s rules?
a. Any office manager
b. Designated or Associate Broker
c. Salesperson
d. Office employees
b. Designated or Associate Broker
To qualify as a temporary broker all of the following must be met EXCEPT:
a. You must hold an associate brokers license
b. Have three of the last five years experience
c. Hold a valid real estate license
d. Obtain the temporary license from the real estate department
a. You must hold an associate brokers license
When a sales license has expired and is now being renewed, the late charge would be...
a. A graduated monthly fee
b. Three times the license fee
c. Two and one half the license fee
d. Up to $100.00 penalty
a. A graduated monthly fee
The real estate commissioner may do each of the following EXCEPT:
a. Hire and fire employees
b. Look at the broker books at anytime
c. . Formulate rules and regulations
d. Immediately revoke a real estate license on a complaint of fraud
d. Immediately revoke a real estate license on a complaint of fraud
You have 30 acres and want to make six 5 acres lots. Which of the following is true?
a. A public report is required.
b. A public report is only required on re-sale.
c. A public report is not required due to size
d. A public report is only required if you improve the lots
A public report is required.
A public report is to be given to a buyer:
a. Before he signs the contract
b. Within three days of signing the contract
c. Within seven days after signing the contract
d. Within six months of signing the contract
a. Before he signs the contract
When a public report is issued on a time-share project, which of the following would not be
included in the report?
a. Time-Share exchange status
b. Names of owners and developers
c. Condition of the title
d. Association fees to be paid
a. Time-Share exchange status
Who appoints the real estate advisory board?
a. Commissioner
b. State Legislature
c. Governor
d. Popular election
c. Governor
A verbal lease of one year would be:
a. Void
b. Voidable
c. Valid
d. Unenforceable
c. Valid
When a real estate license is required to be renewed; it is done every two years at:
a. The end of the month
b. The beginning of the month
c. The day issued
d. Each birthday
a. The end of the month
Real estate commissions are set by:
a. Custom
b. Negotiation
c. Multiple listing service
d. Realtor association
b. Negotiation
A salesperson receives an offer on a property of another listing broker. The salesperson
cannot contact the listing broker within 24 hours. What must he do?
a. Request the seller to give him written authorization to present the offer
b. Mail the offer back to the buyer
c. Submit the offer to the seller immediately
d. Hold the offer until he can contact the listing broker
a. Request the seller to give him written authorization to present the offer
When the real estate commission pays a claim from the recovery fund, which of the following
is true before a licensee may obtain a real estate license once again?
a. . Licensee must pay back the amount the fund paid out
b. Licensee must work under probation for one year
c. Licensee will have a limited license for one year
d. Licensee must ask permission from the court to reinstate the previous license
a. . Licensee must pay back the amount the fund paid out
176. How can a listing be canceled?
a. Ruling of the real estate department
b. Mutual agreement
c. Lack of a legal description
d. Lack of a stated commission
b. Mutual agreement
When a broker secures a listing which of the following actions would not require the owners approval?
a. Placing a sign on the property
b. Advertising the property for sale
c. Assign the listing to another salesperson
d. Assigning the listing to another brokerage firm
c. Assign the listing to another salesperson
A real estate brokerage company has twenty listings. The company is sold to another local
real estate company, what is the status of the listings?
a. Listings may be assigned to the new company
b. Property owner and new company must sign a new listing
c. Listings remain valid and no action is necessary
d. The real estate department must approve the sale and listing transfer
b. Property owner and new company must sign a new listing
How many recovery funds does the Real Estate Commissioner administer?
a. None
b. One
c. Two
d. Three
b. One
How much will be paid on a single claim from the real estate recovery fund?
a. 20,000
b. 25,000
c. 30,000
d. 45,000
a. 20,000
lf a claim is paid from the recovery fund the status of the license in question is:
a. Suspended pending investigation
b. Revoked - terminated
c. Unaffected
d. Continues with no alteration
b. Revoked - terminated
A broker may represent a buyer and seller in a real estate transaction and receive a
commission from both, provided:
a. The broker splits the commission with the co-operating broker
b. The broker orally disclosed to all parties per statutes of frauds
c. The broker has given written disclosure to buyer and seller
d. The total payment in commission does not exceed the seller full commission paid
c. The broker has given written disclosure to buyer and seller
All of the following apply to the Arizona Recovery Fund except:
a. File suit within 5 years
b. Obtain a judgment
c. Try to collect on judgment
d. Need to be an Arizona resident
d. Need to be an Arizona resident
The only person who could not recover from the State recovery fund is:
a Buyer
b. Seller
c. Escrow officer
d. Licensee
d. Licensee
The body of laws that governs listings are called:
a. Statute of Fraud
b. Statute of limitations
c. Arizona revised statutes
d. Law of agency
c. Arizona revised statutes
A broker may collect a commission from both buyer and seller it
a. Oral approval is given
b. Commissioner must approve
c. Written approval is given before execution
d. Written approval is given after execution
c. Written approval is given before execution
The Real Estate Recovery Fund is subject to all of the following conditions EXCEPT:
a. The aggrieved party must file suit within five years
b. The Real Estate Commissioner acts as the fund administrator
c. Licensees can claim commissions if their broker declares bankruptcy
d. Arizona has one recovery fund
c. Licensees can claim commissions if their broker declares bankruptcy
Which of the following can’t file a claim against the recovery fund?
a. Corporation that was harmed by a licensee
b. A single person that was harmed by a licensee
c. A husband and wife with expired real estate licenses that were harmed by a licensee
d. An out of state party that had earnest money stolen by a licensee
a. Corporation that was harmed by a licensee
The relationship between a broker and his salesperson is what type of agent?
a. General
b. Special
c. Ostensible
d. Fiduciary
a. General
A special agent can do all of the following for the principal except
a. Show real estate in all areas
b. Handle all real estate for the principal
c. Perform specific duties
d. Speak for the seller regarding the property listed
b. Handle all real estate for the principal
A broker lists Mr. Wilson’s property and only Mr. Wilson signs the listing. The broker finds A buyer who is ready and willing to buy the property under the terms of the listing Mrs. Wilson Refuses to sign the sales contract. Which of the following is true regarding the commission?
a. Mr. Wlson is responsible only
b. Mr. and Mrs. Wilson are responsible
c. Mrs. Wilson only is responsible
d. Neither party is responsible
b. Mr. and Mrs. Wilson are responsible
A listing agreement is known as:
a. A sales contract
b. An agreement to sell
c. A real estate contract
d. A contract for personal and professional services
d. A contract for personal and professional services
Which of the following listed below would not be part of an exclusive buyer brokerage
agreement?
a. Agreement must be in writing
b. Beginning and ending date is required
c. All material terms set forth
d. All signatures notarized
d. All signatures notarized
When a buyer signs an exclusive buyer brokerage agreement the buyer agrees to all of the
following except...
a. To have one broker represent them
b. Pay the broker a commission if stated in the agreement
c. To be shown properties listed by that brokerage house only Buyer agrees to definite beginning and ending date
d. Buyer agrees to definite beginning and ending date
c. To be shown properties listed by that brokerage house only Buyer agrees to definite beginning and ending date
A real estate purchase contract must contain which of the following:
a. Date of prorations
b. Form in which earnest money is given
c. Method of taking title
d. Type of conveying instruments
b. Form in which earnest money is given
When a buyer enters into a lease — purchase which of the following are true?
a. The buyer has an option to buy the property
b. The buyer is obligated to buy the property
c. The buyer would have the first right to refuse
d. The buyer would have a life estate
b. The buyer is obligated to buy the property
A buyer and seller enter into a purchase contract but the broker fails to initial the contract within
the required five days, what is the status of the purchase contract?
a. Valid
b. Void
c. Unenforceable
d. Voidable
a. Valid
After a seller accepted an offer, another offer is given to the listing broker. Which of the
following is true?
a. Agent is not required to present the offer
b. Agent is not required to present the offer if instructed by the owner in writing
c. Agent may present the offer only if it is a higher price
d. Agent may present the offer only if the seller will receive a higher net
b. Agent is not required to present the offer if instructed by the owner in writing
When taxes are prorated on a closing statement, which of the following statements are true:
a. Taxes are based on the prior year
b. Taxes are based on the present year
c. Taxes are based on the future year
d. Taxes are based on a bi-annual year
a. Taxes are based on the prior year
You sell a property on June 6, the annual water bill is $86 and the taxes are $778. All have
been pre-paid. What is the proration at the close of escrow?
a. Debit $492 seller
b. Debit $492 buyer
c. Credit $286 seller
d. Credit $286 buyer
b. Debit $492 buyer
The seller paid taxes for the year in the amount of $624. The property sold and closed escrow
November 20th. What was the proration at close of escrow?
a. $69.33 credit seller
b. $71.06 credit seller
c. $72.79 debit seller
d. $74.52 debit seller
b. $71.06 credit seller
A real estate sale was closed on March 21. The assessed value of the property is $72,500. Tax rate is $1.75 per $100 of assessed value. What is the proper entry on the seller’s settlement statement?
a. $285.47 debit
b. $285.47 credit
c. $281.94 debit
d. $281.94 credit
c. $281.94 debit
Taxes are paid in full on a property in the amount of $624. The seller closes escrow
November 20th of the same year. What is the seller’s credit in escrow?
a. $69.33
b. $71.06
c. $72.08
d. $74.53
b. $71.06
At the close of escrow, pre-paid rents on a settlement sheet would appear as:
a. Credit to seller, debit to buyer
b. Credit to buyer, debit to seller
c. Prepaid rents are not prorated
d. Prepaid rents belong to the seller
b. Credit to buyer, debit to seller
If the C.O.E. is June 5th, 1999, how much is owed if the seller prepaid $800 of property taxes
for the year?
a. Debit the buyer $457, credit seller $457
b. Credit buyer $457, debit seller $457
c. Debit the buyer $343, credit seller $343
d. Credit the buyer $343, debit seller $343
a. Debit the buyer $457, credit seller $457
Which of the following would appear as a credit on sellers closing statement:
a. Rents paid in advance
b. Title insurance
c. Prepaid insurance
d. Property taxes
c. Prepaid insurance
A salesperson runs an ad in the local paper promoting a broker’s listing. Which of the
following is true?
a. The salesperson’s name must appear
b. The broker’s name must be larger in size than the salespersons
c. The brokerage name must appear in the ad
d. The broker’s telephone number must appear in the ad
c. The brokerage name must appear in the ad
Which of the following advertising would not be regulated by the Department of Real Estate?
a. A classified ad with no brokerage name
b. Ads using the word “team”
c. Ads naming property specifics and details
d. Seller misusing the word acre
d. Seller misusing the word acre
When a licensee knows of material facts that affect the buying or selling decision, the facts must
be:
a. Disclosed orally
b. Disclosed in writing
c. Recorded with the Commissioner
d. Recorded on title before close of escrow
b. Disclosed in writing
A Salesperson can advertise as a “Team” as long as...
a. The Broker mails a copy of the team members to the Real Estate Department
b. The team members are all brokers
c. The real estate department approves of all team members
d. One member is an associate broker and the rest are assistants
a. The Broker mails a copy of the team members to the Real Estate Department
Which of the following documents would a homeowners association not be required to give a
buyer upon resale?
a. Financial statements
b. Reserve analysis
c. By laws of the association
d. Personal financial statements
d. Personal financial statements
Who is responsible to give all documents to a buyer upon the sale of a property located in a
homeowners association if there are less than fifty units?
a. Broker
b. Seller
c. Buyer
e. Escrow
b. Seller
When a property is located within a homeowners association who is responsible for supplying the appropriate documents?
a. Selling Broker
b. Listing Broker
c. Seller if more than fifty units
d. Association if more than fifty units
d. Association if more than fifty units
A buyer is buying a home located within a homeowners association. The home has a violation that is not known by the homeowners association and is not disclosed to the buyer. Which of the following is true regarding the violation?
a. Buyer may be required to correct the violation
b. Buyer would not be required to correct the violation
c. The violation is grandfathered in
d. After the close of escrow this violation would be stricken from the CCR’s
a. Buyer may be required to correct the violation
No criminal, civil or administrative action may be brought against a licensee for failure to disclose which of the following...
a. Property is located in a flood plain
b. Property is located in a superfund site
c. Property was a site of a natural death or suicide
d. Property is located near a military airport
c. Property was a site of a natural death or suicide
All of the following would be a violation of the commissioner’s rules except...
a. Showing a property presently listed
b. Presenting an offer directly to the owner and not the listing agent
c. Failure to present an oral offer
d. Inducing a buyer to cancel an existing purchase contract
a. Showing a property presently listed
Grandfathered irrigation rights do which of the following?
a. Run with the land
b. Remain with the seller
c. Can be transferred separately
d. Are used by permit
a. Run with the land
Arizona Superfund site is know as...
a. Water Quality Assurance Revolving Fund
b. Comprehensive Environmental Response Clean Up Liability Act
c. Assured site
d. Clean Air & water site
a. Water Quality Assurance Revolving Fund
Which of the following would be considered an exempt domestic well:
a. One with a maximum pump capacity of 50 gallons per minute
b. One with a maximum pump capacity of 35 gallons per minute
c. Any size pump used for domestic use
d. Any size pumps as long as you give notice of intent to drill
b. One with a maximum pump capacity of 35 gallons per minute
What appraisal approach would be used when appraising an older home?
A. Cost
B. Income
C. Market
D. Highest and Best Use
C. Market
An old home in an area of a new home development would be appraised using wha
approach?
A. Cost
B. Market
C. Income
D. Highest and Best Use
A. Cost
A party lives on a property without permission of the owner. After the legal required t
period if the occupant receives title to the property it was done so by:
A. Easement by prescription
B. Adverse possession
C. Escheat
D. Eminent Domain
B. Adverse possession
For a person to acquire title by adverse possession they must occupy the property for:
A. 3 years
B. 7 years
C. 10 years
D. 12 years
C. 10 years
When a minor enters into a real estate contract the status of the contract is:
A. Void
B. Voidable by the minor only
C. Enforceable by buyer and seller
D. Illegal per statute of fraud
B. Voidable by the minor only