Arizona Real Estate Exam Prep Test
Bank B 2026-2027 with 380 Correctly
Answered Practice Questions / AZ Real
Estate Exam Practice Test Bank 2
A homeowner sues a real estate agent for $6,000. In which Arizona court would
this case be heard?
A. municipal court
B. small claims court
C. justice court
D. superior court - ANSWER-justice court
Harvey sues his listing agent for breach of contract, asking for $7,500 in damages.
In which Arizona court would this civil case be heard?
A. justice court
B. magistrate's court
C. small claims division of the justice court
D. superior court - ANSWER-justice court
A few real estate brokers from different companies were discussing the possibility
of establishing an office policy to list for sale all raw land at a 10% commission.
Which of the following is true?
A. the brokers are not guilty of anything because it would be an office policy
B. the brokers violated REG Z
1
,C. the brokers are in violation of Sherman Antitrust Act
D. the brokers are in violation of RESPA - ANSWER-the brokers are in violation
of Sherman Antitrust Act
By definition, what does an appraiser give in the course of his work?
A. a valuation
B. an estimate
C. a reaction
D. a guarantee - ANSWER-an estimate
Under the principle of substitution
A. property cannot be worth more than the cost of acquiring an equally desirable
replacement
B. there should be a reasonable degree of uniformity in property values
C. excess profits tend to encourage ruinous competition
D. a good structure substituted for a bad structure will not cure the ills of the
surrounding neighborhood - ANSWER-property cannot be worth more than the
cost of acquiring an equally desirable replacement
After the appraiser has used all three appraisal approaches to estimate value, what
process is used to arrive at one estimate of value?
A. Data evaluation
B. Summation
C. Reconciliation or correlation
D. None of these - ANSWER-Reconciliation or correlation
2
,A run-down house in a good neighborhood
A. benefits from the principle of regression
B. is hurt by the principle of regression
C. benefits from the principle of progression
D. is hurt by the principle of progression - ANSWER-benefits from the principle
of progression
The increase in value created by joining ownership of several smaller parcels of
land into one large single ownership is called
A. par value increase
B. over improvement
C. plottage increment
D. physical inflation - ANSWER-plottage increment
The first step of the appraisal process is to
A. collect data
B. define the appraisal
C. define the data sources
D. determine highest and best use - ANSWER-define the appraisal
In checking for conformity of a home in a particular neighborhood, an appraiser
would not consider:
A. Size
B. Style of architecture
C. Listed price
3
, D. Amenities - ANSWER-Listed price
For which situation would the sales comparison approach be best?
A. a commercial building in a residential neighborhood
B. a condo in a complex with high turnover
C. a recently constructed building with custom features
D. a unique, octagon-shaped home in neighborhood of split levels - ANSWER-a
condo in a complex with high turnover
When applying the adjustments to the comparables, the appraiser will
A. add the value of a superior feature to the comp and subtract the value of an
inferior feature from the comp.
B. add the value of a superior feature to the subject and subtract the value of an
interior feature from the subject
C. subract the value of a superior feature from the comp and add the value of an
inferior feature to the comp
D. subtract the value of a superior feature from the subject and add the value of an
inferior feature to the subject - ANSWER-subtract the value of a superior feature
from the comp and add the value of an inferior feature to the comp
Comp #2 has a deck; the subject property does not have a deck. Through matched
pair analysis, the appraiser has determined that a deck in that neighborhood is
worth $3,000. What is the appropriate way to apply this information when
performing the sales comparison approach to valuation?
A. add $3,000 to comp #2 value
B. subtract $3,000 from comp #2 value
C. add $3,000 to the subject base
D. subtract $3,000 from the subject base - ANSWER-subtract $3,000 from comp
#2 value
4
Bank B 2026-2027 with 380 Correctly
Answered Practice Questions / AZ Real
Estate Exam Practice Test Bank 2
A homeowner sues a real estate agent for $6,000. In which Arizona court would
this case be heard?
A. municipal court
B. small claims court
C. justice court
D. superior court - ANSWER-justice court
Harvey sues his listing agent for breach of contract, asking for $7,500 in damages.
In which Arizona court would this civil case be heard?
A. justice court
B. magistrate's court
C. small claims division of the justice court
D. superior court - ANSWER-justice court
A few real estate brokers from different companies were discussing the possibility
of establishing an office policy to list for sale all raw land at a 10% commission.
Which of the following is true?
A. the brokers are not guilty of anything because it would be an office policy
B. the brokers violated REG Z
1
,C. the brokers are in violation of Sherman Antitrust Act
D. the brokers are in violation of RESPA - ANSWER-the brokers are in violation
of Sherman Antitrust Act
By definition, what does an appraiser give in the course of his work?
A. a valuation
B. an estimate
C. a reaction
D. a guarantee - ANSWER-an estimate
Under the principle of substitution
A. property cannot be worth more than the cost of acquiring an equally desirable
replacement
B. there should be a reasonable degree of uniformity in property values
C. excess profits tend to encourage ruinous competition
D. a good structure substituted for a bad structure will not cure the ills of the
surrounding neighborhood - ANSWER-property cannot be worth more than the
cost of acquiring an equally desirable replacement
After the appraiser has used all three appraisal approaches to estimate value, what
process is used to arrive at one estimate of value?
A. Data evaluation
B. Summation
C. Reconciliation or correlation
D. None of these - ANSWER-Reconciliation or correlation
2
,A run-down house in a good neighborhood
A. benefits from the principle of regression
B. is hurt by the principle of regression
C. benefits from the principle of progression
D. is hurt by the principle of progression - ANSWER-benefits from the principle
of progression
The increase in value created by joining ownership of several smaller parcels of
land into one large single ownership is called
A. par value increase
B. over improvement
C. plottage increment
D. physical inflation - ANSWER-plottage increment
The first step of the appraisal process is to
A. collect data
B. define the appraisal
C. define the data sources
D. determine highest and best use - ANSWER-define the appraisal
In checking for conformity of a home in a particular neighborhood, an appraiser
would not consider:
A. Size
B. Style of architecture
C. Listed price
3
, D. Amenities - ANSWER-Listed price
For which situation would the sales comparison approach be best?
A. a commercial building in a residential neighborhood
B. a condo in a complex with high turnover
C. a recently constructed building with custom features
D. a unique, octagon-shaped home in neighborhood of split levels - ANSWER-a
condo in a complex with high turnover
When applying the adjustments to the comparables, the appraiser will
A. add the value of a superior feature to the comp and subtract the value of an
inferior feature from the comp.
B. add the value of a superior feature to the subject and subtract the value of an
interior feature from the subject
C. subract the value of a superior feature from the comp and add the value of an
inferior feature to the comp
D. subtract the value of a superior feature from the subject and add the value of an
inferior feature to the subject - ANSWER-subtract the value of a superior feature
from the comp and add the value of an inferior feature to the comp
Comp #2 has a deck; the subject property does not have a deck. Through matched
pair analysis, the appraiser has determined that a deck in that neighborhood is
worth $3,000. What is the appropriate way to apply this information when
performing the sales comparison approach to valuation?
A. add $3,000 to comp #2 value
B. subtract $3,000 from comp #2 value
C. add $3,000 to the subject base
D. subtract $3,000 from the subject base - ANSWER-subtract $3,000 from comp
#2 value
4
