Arizona Real Estate Exam Prep 2026: Complete
Questions with Verified Answers & Explanations ||
Latest Update - Already Graded A+
COMPLETE EXAM REVIEW
Question 1
The real estate advisory board is appointed by the:
a. Commissioner
b. Governor
c. State legislature
d. General election
Correct Answer: b. Governor
Rationale: The real estate advisory board is appointed by the Governor. The board
advises the Real Estate Commissioner on matters related to real estate licensing,
regulations, and disciplinary actions. The Commissioner is appointed by the Governor
and serves as the chief administrative officer of the Real Estate Department, but the
advisory board itself is appointed by the Governor.
Question 2
What would terminate a purchase contract?
a. Death of the seller
b. Death of the buyer
c. Eminent domain
d. Lack of earnest money
Correct Answer: c. Eminent domain
Rationale: Eminent domain is the government's right to take private property for
public use. When the government exercises eminent domain, it can terminate a
purchase contract because the property is no longer available for private sale. The death
of either party does not automatically terminate a real estate contract; the contract is
pg. 1
,binding on the heirs and assigns. Lack of earnest money may make the contract voidable
but does not automatically terminate it.
Question 3
A tenant's right to harvest crops after a lease expires is called:
a. Remainder Rights
b. Leasehold Rights
c. Reversion Rights
d. Emblements
Correct Answer: d. Emblements
Rationale: Emblements is the legal right of a tenant to harvest crops that were planted
before the lease ended. This right applies when the tenant has cultivated the land and
planted crops, but the lease terminates unexpectedly (e.g., due to death of the landlord
or tenant, or expiration of the lease). The tenant may enter the land to harvest the crops
after the lease terminates. This protects the tenant's investment in labor and materials.
Question 4
What would not be a use of police power?
a. State laws
b. Environmental regulations
c. Condemnation of a property
d. Licensing of real estate agents
Correct Answer: c. Condemnation of a property
Rationale: Police power is the government's authority to enact laws and regulations to
protect the public health, safety, morals, and general welfare. Examples include zoning
laws, building codes, environmental regulations, and licensing
requirements. Condemnation is the exercise of eminent domain, not police
power. Eminent domain is the government's power to take private property for public
use, with just compensation. While both are government powers, they are distinct:
police power regulates the use of property (without compensation), while eminent
domain takes property (with compensation).
Question 5
pg. 2
,Wetlands would come under what control?
a. Police power
b. Deed restrictions
c. Zoning
d. Eminent domain
Correct Answer: a. Police power
Rationale: Wetlands are regulated under police power through environmental
regulations and laws (such as the Clean Water Act). These regulations protect the public
health, safety, and welfare by preserving wetlands that filter water, control flooding, and
provide wildlife habitat. While zoning can also regulate land use, wetlands are
specifically protected by federal and state environmental laws, which are an exercise of
police power. Deed restrictions are private controls, not government controls. Eminent
domain involves taking property, not regulating its use.
Question 6
Owner of lakefront property divides his 50 acres into lots. The owner keeps the lots
closest to the lake. What rights do the other lot owners have to the lake?
Correct Answer: Easement appurtenant
Rationale: An easement appurtenant is a right to use the land of another for a specific
purpose that benefits the dominant tenement. When a property owner sells lots but
retains the lakefront property, the buyers of the other lots may have an easement
appurtenant to access the lake. This right "runs with the land" and is attached to the
property, not the individual owner. The lot owners have a right to use the lakefront
property for reasonable access to the water. This is different from an easement in gross,
which benefits an individual or entity rather than a parcel of land.
Question 7
Which of the following would have a percentage lease?
a. Municipality
b. Utility company
c. Public library
d. Art gallery
Correct Answer: d. Art gallery
pg. 3
, Rationale: A percentage lease requires the tenant to pay a base rent plus a percentage
of their gross sales or revenue. This type of lease is commonly used for retail businesses,
such as art galleries, restaurants, and retail stores, where the landlord shares in the
tenant's success. Municipalities, utility companies, and public libraries are not typically
retail businesses and would not have a percentage lease. The tenant's sales can be easily
tracked and verified in a retail setting.
Question 8
Who signs the estoppel certificate?
a. Borrower / Lessee
b. Lender / Lessor
c. Trustee / Grantee
d. Trustee / Lessee
Correct Answer: a. Borrower / Lessee
Rationale: An estoppel certificate is a document signed by a borrower or tenant that
verifies the status of a loan or lease. It confirms the amount owed, the terms of the
agreement, and that there are no defenses or offsets against the obligation. The
borrower/lessee signs the certificate, which is then relied upon by a lender or buyer.
This document "estops" the signer from later claiming different terms. The lender/lessor
uses the certificate for due diligence purposes.
Question 9
What is the difference between fee simple and non-freehold?
a. Fee simple is freely inheritable. Non-freehold is a lease
b. Fee simple is for a person's life. Non-freehold is freely inheritable
c. Non-freehold has no time limit. Freehold has a definite period of time
d. Non-freehold is for a person's life. Fee simple is a lease
Correct Answer: a. Fee simple is freely inheritable. Non-freehold is a lease
Rationale: Fee simple is the highest form of ownership, which is freely inheritable and
has no time limit. Non-freehold estates (leasehold estates) are not ownership interests
but rather the right to possess property for a specific period of time under a lease. The
key distinction is that fee simple is an estate of inheritance, while a leasehold is not. Fee
simple can last forever, while a lease has a definite term. Freehold estates (including fee
simple and life estates) involve ownership, while non-freehold estates involve
possession without ownership.
pg. 4
Questions with Verified Answers & Explanations ||
Latest Update - Already Graded A+
COMPLETE EXAM REVIEW
Question 1
The real estate advisory board is appointed by the:
a. Commissioner
b. Governor
c. State legislature
d. General election
Correct Answer: b. Governor
Rationale: The real estate advisory board is appointed by the Governor. The board
advises the Real Estate Commissioner on matters related to real estate licensing,
regulations, and disciplinary actions. The Commissioner is appointed by the Governor
and serves as the chief administrative officer of the Real Estate Department, but the
advisory board itself is appointed by the Governor.
Question 2
What would terminate a purchase contract?
a. Death of the seller
b. Death of the buyer
c. Eminent domain
d. Lack of earnest money
Correct Answer: c. Eminent domain
Rationale: Eminent domain is the government's right to take private property for
public use. When the government exercises eminent domain, it can terminate a
purchase contract because the property is no longer available for private sale. The death
of either party does not automatically terminate a real estate contract; the contract is
pg. 1
,binding on the heirs and assigns. Lack of earnest money may make the contract voidable
but does not automatically terminate it.
Question 3
A tenant's right to harvest crops after a lease expires is called:
a. Remainder Rights
b. Leasehold Rights
c. Reversion Rights
d. Emblements
Correct Answer: d. Emblements
Rationale: Emblements is the legal right of a tenant to harvest crops that were planted
before the lease ended. This right applies when the tenant has cultivated the land and
planted crops, but the lease terminates unexpectedly (e.g., due to death of the landlord
or tenant, or expiration of the lease). The tenant may enter the land to harvest the crops
after the lease terminates. This protects the tenant's investment in labor and materials.
Question 4
What would not be a use of police power?
a. State laws
b. Environmental regulations
c. Condemnation of a property
d. Licensing of real estate agents
Correct Answer: c. Condemnation of a property
Rationale: Police power is the government's authority to enact laws and regulations to
protect the public health, safety, morals, and general welfare. Examples include zoning
laws, building codes, environmental regulations, and licensing
requirements. Condemnation is the exercise of eminent domain, not police
power. Eminent domain is the government's power to take private property for public
use, with just compensation. While both are government powers, they are distinct:
police power regulates the use of property (without compensation), while eminent
domain takes property (with compensation).
Question 5
pg. 2
,Wetlands would come under what control?
a. Police power
b. Deed restrictions
c. Zoning
d. Eminent domain
Correct Answer: a. Police power
Rationale: Wetlands are regulated under police power through environmental
regulations and laws (such as the Clean Water Act). These regulations protect the public
health, safety, and welfare by preserving wetlands that filter water, control flooding, and
provide wildlife habitat. While zoning can also regulate land use, wetlands are
specifically protected by federal and state environmental laws, which are an exercise of
police power. Deed restrictions are private controls, not government controls. Eminent
domain involves taking property, not regulating its use.
Question 6
Owner of lakefront property divides his 50 acres into lots. The owner keeps the lots
closest to the lake. What rights do the other lot owners have to the lake?
Correct Answer: Easement appurtenant
Rationale: An easement appurtenant is a right to use the land of another for a specific
purpose that benefits the dominant tenement. When a property owner sells lots but
retains the lakefront property, the buyers of the other lots may have an easement
appurtenant to access the lake. This right "runs with the land" and is attached to the
property, not the individual owner. The lot owners have a right to use the lakefront
property for reasonable access to the water. This is different from an easement in gross,
which benefits an individual or entity rather than a parcel of land.
Question 7
Which of the following would have a percentage lease?
a. Municipality
b. Utility company
c. Public library
d. Art gallery
Correct Answer: d. Art gallery
pg. 3
, Rationale: A percentage lease requires the tenant to pay a base rent plus a percentage
of their gross sales or revenue. This type of lease is commonly used for retail businesses,
such as art galleries, restaurants, and retail stores, where the landlord shares in the
tenant's success. Municipalities, utility companies, and public libraries are not typically
retail businesses and would not have a percentage lease. The tenant's sales can be easily
tracked and verified in a retail setting.
Question 8
Who signs the estoppel certificate?
a. Borrower / Lessee
b. Lender / Lessor
c. Trustee / Grantee
d. Trustee / Lessee
Correct Answer: a. Borrower / Lessee
Rationale: An estoppel certificate is a document signed by a borrower or tenant that
verifies the status of a loan or lease. It confirms the amount owed, the terms of the
agreement, and that there are no defenses or offsets against the obligation. The
borrower/lessee signs the certificate, which is then relied upon by a lender or buyer.
This document "estops" the signer from later claiming different terms. The lender/lessor
uses the certificate for due diligence purposes.
Question 9
What is the difference between fee simple and non-freehold?
a. Fee simple is freely inheritable. Non-freehold is a lease
b. Fee simple is for a person's life. Non-freehold is freely inheritable
c. Non-freehold has no time limit. Freehold has a definite period of time
d. Non-freehold is for a person's life. Fee simple is a lease
Correct Answer: a. Fee simple is freely inheritable. Non-freehold is a lease
Rationale: Fee simple is the highest form of ownership, which is freely inheritable and
has no time limit. Non-freehold estates (leasehold estates) are not ownership interests
but rather the right to possess property for a specific period of time under a lease. The
key distinction is that fee simple is an estate of inheritance, while a leasehold is not. Fee
simple can last forever, while a lease has a definite term. Freehold estates (including fee
simple and life estates) involve ownership, while non-freehold estates involve
possession without ownership.
pg. 4
