ARIZONA REAL ESTATE EXAM AND PRACTICE EXAM
NEWEST 2026/ 2027 TEST BANK WITH 950
QUESTIONS AND ANSW
1. Which type of estate lasts for the lifetime of a measuring person and ends
upon that person's death?
A) Fee Simple Absolute
B) Leasehold Estate
C) Life Estate
D) Estate for Years
Answer: C) Life Estate
Rationale: A life estate is a possessory interest that endures for the duration of a
specific person's life. Fee Simple (A) is inheritable; Leasehold (B) is a tenant's
interest; Estate for Years (D) has a definite end date.
2. The government's right to take private property for public use, provided just
compensation is paid, is known as:
A) Escheat
B) Eminent Domain
C) Police Power
D) Taxation
Answer: B) Eminent Domain
Rationale: Eminent domain is the power of the government to confiscate private
property for public benefit (e.g., roads, schools) with compensation. Escheat (A)
reverts property to the state if an owner dies without heirs. Police Power (C)
regulates land use (zoning). Taxation (D) is the power to levy property taxes.
3. A seller tells the listing agent, "I will not sell to any Asian families." Under the
Fair Housing Act, which statement is TRUE?
,A) The agent can comply because the seller sets the terms.
B) The agent must refuse the listing and cannot discriminate.
C) The agent can advertise "Asian buyers preferred."
D) This is legal if the property is the seller's primary residence.
Answer: B) The agent must refuse the listing and cannot discriminate.
Rationale: The Fair Housing Act prohibits discrimination based on race, color,
religion, sex, national origin, familial status, or disability. A real estate professional
cannot accept a listing with discriminatory instructions, even if the seller demands
it. The "Mrs. Murphy" exemption (D) does not apply to licensed agents.
4. Which of the following is NOT a protected class under the federal Fair Housing
Act?
A) Familial Status
B) Marital Status
C) Disability
D) Religion
Answer: B) Marital Status
Rationale: Federal Fair Housing protects race, color, religion, sex, national origin,
familial status, and disability. Marital status is protected under some state laws
(e.g., Arizona's Fair Housing Act) but is NOT a federal protected class.
5. A buyer signs a contract to purchase a home, but the seller dies before
closing. The contract is:
A) Void automatically due to death.
B) Voidable at the buyer's option.
C) Enforceable against the seller's estate.
D) Terminated because the seller cannot convey title.
Answer: C) Enforceable against the seller's estate.
Rationale: Real estate contracts are generally binding on the heirs, successors, and
,assigns of the parties. The seller's estate is obligated to complete the transaction
unless the contract specifically states otherwise.
6. What is the legal description method that uses a grid system based on
Principal Meridians and Base Lines?
A) Metes and Bounds
B) Lot and Block (Recorded Plat)
C) Rectangular Survey System (Government Survey)
D) Geodetic Survey
Answer: C) Rectangular Survey System
Rationale: Also called the Public Land Survey System (PLSS), it divides land into
townships and sections using meridians and base lines. Metes and Bounds (A)
uses natural monuments and compass directions. Lot and Block (B) is used for
subdivisions.
**7. A property appraised for $300,000. The local assessment ratio is 40%, and
the mill levy is 150 mills. What is the annual property tax?**
A) $1,800
B) $18,000
C) $4,500
D) $6,000
**Answer: B) $18,000**
*Rationale:* Assessed Value = $300,000 × 40% = $120,000. Tax = Assessed Value ×
Mill Levy / 1,000 = $120,000 × ,000 = $18,000.
8. The "Bundle of Rights" in real property includes all EXCEPT:
A) The right to possess.
B) The right to control.
, C) The right to exclude.
D) The right to mortgage personally property.
Answer: D) The right to mortgage personally property.
Rationale: The bundle of rights (possession, control, exclusion, enjoyment,
disposition) applies to real property. Personal property (chattels) is covered under
different laws.
9. A deed contains a covenant that the grantor will defend the title against any
lawful claims. This is called the covenant of:
A) Seizin
B) Quiet Enjoyment
C) Warranty
D) Further Assurances
Answer: C) Warranty (Specifically, the Covenant of Warranty)
Rationale: The covenant of warranty (or warranty forever) promises the grantor
will defend the title against third-party claims. Seizin (A) promises the grantor
owns the property. Quiet Enjoyment (B) promises freedom from disturbance.
10. In a dual agency situation, what is the agent required to do?
A) Disclose the dual agency only to the seller.
B) Obtain written informed consent from both parties.
C) Charge a higher commission to cover the risk.
D) Keep all information confidential from both sides.
Answer: B) Obtain written informed consent from both parties.
Rationale: Dual agency (representing both buyer and seller) creates a conflict of
interest. The agent must fully disclose and obtain written consent from both
parties before proceeding. The agent cannot keep material facts confidential (e.g.,
price concessions).
NEWEST 2026/ 2027 TEST BANK WITH 950
QUESTIONS AND ANSW
1. Which type of estate lasts for the lifetime of a measuring person and ends
upon that person's death?
A) Fee Simple Absolute
B) Leasehold Estate
C) Life Estate
D) Estate for Years
Answer: C) Life Estate
Rationale: A life estate is a possessory interest that endures for the duration of a
specific person's life. Fee Simple (A) is inheritable; Leasehold (B) is a tenant's
interest; Estate for Years (D) has a definite end date.
2. The government's right to take private property for public use, provided just
compensation is paid, is known as:
A) Escheat
B) Eminent Domain
C) Police Power
D) Taxation
Answer: B) Eminent Domain
Rationale: Eminent domain is the power of the government to confiscate private
property for public benefit (e.g., roads, schools) with compensation. Escheat (A)
reverts property to the state if an owner dies without heirs. Police Power (C)
regulates land use (zoning). Taxation (D) is the power to levy property taxes.
3. A seller tells the listing agent, "I will not sell to any Asian families." Under the
Fair Housing Act, which statement is TRUE?
,A) The agent can comply because the seller sets the terms.
B) The agent must refuse the listing and cannot discriminate.
C) The agent can advertise "Asian buyers preferred."
D) This is legal if the property is the seller's primary residence.
Answer: B) The agent must refuse the listing and cannot discriminate.
Rationale: The Fair Housing Act prohibits discrimination based on race, color,
religion, sex, national origin, familial status, or disability. A real estate professional
cannot accept a listing with discriminatory instructions, even if the seller demands
it. The "Mrs. Murphy" exemption (D) does not apply to licensed agents.
4. Which of the following is NOT a protected class under the federal Fair Housing
Act?
A) Familial Status
B) Marital Status
C) Disability
D) Religion
Answer: B) Marital Status
Rationale: Federal Fair Housing protects race, color, religion, sex, national origin,
familial status, and disability. Marital status is protected under some state laws
(e.g., Arizona's Fair Housing Act) but is NOT a federal protected class.
5. A buyer signs a contract to purchase a home, but the seller dies before
closing. The contract is:
A) Void automatically due to death.
B) Voidable at the buyer's option.
C) Enforceable against the seller's estate.
D) Terminated because the seller cannot convey title.
Answer: C) Enforceable against the seller's estate.
Rationale: Real estate contracts are generally binding on the heirs, successors, and
,assigns of the parties. The seller's estate is obligated to complete the transaction
unless the contract specifically states otherwise.
6. What is the legal description method that uses a grid system based on
Principal Meridians and Base Lines?
A) Metes and Bounds
B) Lot and Block (Recorded Plat)
C) Rectangular Survey System (Government Survey)
D) Geodetic Survey
Answer: C) Rectangular Survey System
Rationale: Also called the Public Land Survey System (PLSS), it divides land into
townships and sections using meridians and base lines. Metes and Bounds (A)
uses natural monuments and compass directions. Lot and Block (B) is used for
subdivisions.
**7. A property appraised for $300,000. The local assessment ratio is 40%, and
the mill levy is 150 mills. What is the annual property tax?**
A) $1,800
B) $18,000
C) $4,500
D) $6,000
**Answer: B) $18,000**
*Rationale:* Assessed Value = $300,000 × 40% = $120,000. Tax = Assessed Value ×
Mill Levy / 1,000 = $120,000 × ,000 = $18,000.
8. The "Bundle of Rights" in real property includes all EXCEPT:
A) The right to possess.
B) The right to control.
, C) The right to exclude.
D) The right to mortgage personally property.
Answer: D) The right to mortgage personally property.
Rationale: The bundle of rights (possession, control, exclusion, enjoyment,
disposition) applies to real property. Personal property (chattels) is covered under
different laws.
9. A deed contains a covenant that the grantor will defend the title against any
lawful claims. This is called the covenant of:
A) Seizin
B) Quiet Enjoyment
C) Warranty
D) Further Assurances
Answer: C) Warranty (Specifically, the Covenant of Warranty)
Rationale: The covenant of warranty (or warranty forever) promises the grantor
will defend the title against third-party claims. Seizin (A) promises the grantor
owns the property. Quiet Enjoyment (B) promises freedom from disturbance.
10. In a dual agency situation, what is the agent required to do?
A) Disclose the dual agency only to the seller.
B) Obtain written informed consent from both parties.
C) Charge a higher commission to cover the risk.
D) Keep all information confidential from both sides.
Answer: B) Obtain written informed consent from both parties.
Rationale: Dual agency (representing both buyer and seller) creates a conflict of
interest. The agent must fully disclose and obtain written consent from both
parties before proceeding. The agent cannot keep material facts confidential (e.g.,
price concessions).
