ARIZONA REAL ESTATE COMPREHENSIVE EXAM QUESTIONS WITH A
QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔what would be done with the earnest money if the seller cannot produce clear title? -
✔✔It goes back to the buyer
✔✔Jim and Andy have a purchase contract. Jim wants to transfer to Mary. This would
be done with which clause? - ✔✔The assignment clause
✔✔a valid contract must have offer and: - ✔✔Acceptance
✔✔Jim makes an offer to Andy. Andy makes a counter offer back to Jim. Who is the
offeree? - ✔✔Jim is
✔✔Jim makes an offer to Andy, and Andy makes a counter offer and then dies. Does a
contract still exist? - ✔✔No contract exists.
✔✔When a salesperson intentionally misstates a material fact to cause someone
financial harm, this is called: - ✔✔Fraud
✔✔a contract has been signed but title has not yet passed. this is called: -
✔✔Executory
✔✔Jim makes an offer to Andy. Andy counters and sends the offer back to Jim. Andy
dies prior to Jim accepting the contract. what is Jim's position regarding the contract? -
✔✔The contract is unenforceable
✔✔A tenant enters into an option to buy the rental property at a future date. when does
the option become binding on both the lessor and lessee? - ✔✔when the option to buy
is exercised by the optionee
✔✔a buyer enters into an agreement that gives him the opportunity to buy but not the
obligation. the buyer has entered into a(n) - ✔✔option
✔✔a buyer and a seller wish to cancel a contract. who must sign the cancellation? -
✔✔the buyer and seller
✔✔a contract that has been accepted but not closed escrow is referred to as: -
✔✔Executory
,✔✔a salesperson was presenting the buyer's offer to the seller, and at the same time
the buyer calls the salesperson to cancel his offer. what is the status of the buyer's
offer? - ✔✔the offer is void
✔✔a buyer and seller enter into a sales contract in which the broker was the procuring
cause. before the close of escrow, the buyer and seller agree to mutually cancel the
contract. what is the status of the broker's commission? - ✔✔The broker would be paid
a commission
✔✔money pre-agreed in a contract that will be forfeited in case of a breach by the other
is called: - ✔✔liquidated damages
✔✔True or false: an option must have consideration to be valid? - ✔✔True
✔✔who is primarily responsible for presenting an offer? - ✔✔listing broker
✔✔if the broker dies prior to a contract closing escrow, the contract is: - ✔✔valid
✔✔an option agreement is referred to as an: - ✔✔unilateral executory
✔✔a purchase contract is in escrow but has not yet closed. the status of the contract is:
- ✔✔bilateral-executory
✔✔Jim delivers a contract to Sally and gives Sally five days to accept the offer. one day
later, Jim withdraws the offer. Can Jim do this? - ✔✔Yes, Jim may withdraw the offer.
✔✔If a husband and wife buy real property and the wife fails to sign the purchase
contract, the contract is: - ✔✔Unenforceable against both.
✔✔when does a buyer have equitable title? - ✔✔When the contract is executed
"signed"
✔✔what would hold up in court for a breach of a purchase contract if the broker were to
sue for a commission? - ✔✔Listing agreement, terms, and conditions of sale.
✔✔a broker is required to give copies of all documents to all parties associated with the
transaction. True or false? - ✔✔True. All parties associated with the transaction.
✔✔A verbal contract for the purchase of real estate is: - ✔✔Unenforceable
✔✔An amount stated in a purchase contract in case the buyer breaches is called: -
✔✔Liquidated damages
, ✔✔Buyer signs a contract under duress, the contract status is: - ✔✔voidable by the
buyer
✔✔an agent receives two offers on a listing one after another. how do you present the
offers to the seller? - ✔✔present both offers at the same time.
✔✔a buyer puts down $5000 earnest money, the buyer and seller can not come to an
agreement. what is the status of the earnest money? - ✔✔It is returned to the buyer.
✔✔A broker has a contract signed by the buyer and seller. before the close of escrow
the building is destroyed by fire. What is true regarding the brokers commission? -
✔✔No commission is owed.
✔✔A salesperson receives an offer on a listing that is much lower than the listed price.
what should the salesperson do? - ✔✔Present the offer.
✔✔while a transaction is in escrow, the listing broker receives another offer on the
same property. what should the broker do? - ✔✔Present the offer, unless directed to do
otherwise by the seller, in writing.
✔✔when a listing is taken, the owner says he wants to net $20,000 upon closing. an
offer comes in that will net the owner $15,000. What should the broker do? - ✔✔Present
the offer.
✔✔An offer is made and accepted by telephone. the contract is: - ✔✔unenforceable
✔✔if the buyer withdraws his offer prior to the offer being accepted by the seller, what is
the status of the earnest money? - ✔✔it belongs to the buyer
✔✔how can a buyer best be assured of getting his earnest money back IF HIS LOAN IS
NOT APPROVED? - ✔✔place a contingency clause in the contract.
✔✔A broker is asked to list a property that is in violation of the local zoning ordinances.
he should: - ✔✔Refuse the listing.
✔✔a rate of return would be related to which of the following: - ✔✔Cap rate
✔✔When Buying an apartment building, it would be appraised using what approach? -
✔✔The income approach
✔✔when a house is built with cheap materials and shows signs of deterioration, this is
called - ✔✔Physical depreciation
QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔what would be done with the earnest money if the seller cannot produce clear title? -
✔✔It goes back to the buyer
✔✔Jim and Andy have a purchase contract. Jim wants to transfer to Mary. This would
be done with which clause? - ✔✔The assignment clause
✔✔a valid contract must have offer and: - ✔✔Acceptance
✔✔Jim makes an offer to Andy. Andy makes a counter offer back to Jim. Who is the
offeree? - ✔✔Jim is
✔✔Jim makes an offer to Andy, and Andy makes a counter offer and then dies. Does a
contract still exist? - ✔✔No contract exists.
✔✔When a salesperson intentionally misstates a material fact to cause someone
financial harm, this is called: - ✔✔Fraud
✔✔a contract has been signed but title has not yet passed. this is called: -
✔✔Executory
✔✔Jim makes an offer to Andy. Andy counters and sends the offer back to Jim. Andy
dies prior to Jim accepting the contract. what is Jim's position regarding the contract? -
✔✔The contract is unenforceable
✔✔A tenant enters into an option to buy the rental property at a future date. when does
the option become binding on both the lessor and lessee? - ✔✔when the option to buy
is exercised by the optionee
✔✔a buyer enters into an agreement that gives him the opportunity to buy but not the
obligation. the buyer has entered into a(n) - ✔✔option
✔✔a buyer and a seller wish to cancel a contract. who must sign the cancellation? -
✔✔the buyer and seller
✔✔a contract that has been accepted but not closed escrow is referred to as: -
✔✔Executory
,✔✔a salesperson was presenting the buyer's offer to the seller, and at the same time
the buyer calls the salesperson to cancel his offer. what is the status of the buyer's
offer? - ✔✔the offer is void
✔✔a buyer and seller enter into a sales contract in which the broker was the procuring
cause. before the close of escrow, the buyer and seller agree to mutually cancel the
contract. what is the status of the broker's commission? - ✔✔The broker would be paid
a commission
✔✔money pre-agreed in a contract that will be forfeited in case of a breach by the other
is called: - ✔✔liquidated damages
✔✔True or false: an option must have consideration to be valid? - ✔✔True
✔✔who is primarily responsible for presenting an offer? - ✔✔listing broker
✔✔if the broker dies prior to a contract closing escrow, the contract is: - ✔✔valid
✔✔an option agreement is referred to as an: - ✔✔unilateral executory
✔✔a purchase contract is in escrow but has not yet closed. the status of the contract is:
- ✔✔bilateral-executory
✔✔Jim delivers a contract to Sally and gives Sally five days to accept the offer. one day
later, Jim withdraws the offer. Can Jim do this? - ✔✔Yes, Jim may withdraw the offer.
✔✔If a husband and wife buy real property and the wife fails to sign the purchase
contract, the contract is: - ✔✔Unenforceable against both.
✔✔when does a buyer have equitable title? - ✔✔When the contract is executed
"signed"
✔✔what would hold up in court for a breach of a purchase contract if the broker were to
sue for a commission? - ✔✔Listing agreement, terms, and conditions of sale.
✔✔a broker is required to give copies of all documents to all parties associated with the
transaction. True or false? - ✔✔True. All parties associated with the transaction.
✔✔A verbal contract for the purchase of real estate is: - ✔✔Unenforceable
✔✔An amount stated in a purchase contract in case the buyer breaches is called: -
✔✔Liquidated damages
, ✔✔Buyer signs a contract under duress, the contract status is: - ✔✔voidable by the
buyer
✔✔an agent receives two offers on a listing one after another. how do you present the
offers to the seller? - ✔✔present both offers at the same time.
✔✔a buyer puts down $5000 earnest money, the buyer and seller can not come to an
agreement. what is the status of the earnest money? - ✔✔It is returned to the buyer.
✔✔A broker has a contract signed by the buyer and seller. before the close of escrow
the building is destroyed by fire. What is true regarding the brokers commission? -
✔✔No commission is owed.
✔✔A salesperson receives an offer on a listing that is much lower than the listed price.
what should the salesperson do? - ✔✔Present the offer.
✔✔while a transaction is in escrow, the listing broker receives another offer on the
same property. what should the broker do? - ✔✔Present the offer, unless directed to do
otherwise by the seller, in writing.
✔✔when a listing is taken, the owner says he wants to net $20,000 upon closing. an
offer comes in that will net the owner $15,000. What should the broker do? - ✔✔Present
the offer.
✔✔An offer is made and accepted by telephone. the contract is: - ✔✔unenforceable
✔✔if the buyer withdraws his offer prior to the offer being accepted by the seller, what is
the status of the earnest money? - ✔✔it belongs to the buyer
✔✔how can a buyer best be assured of getting his earnest money back IF HIS LOAN IS
NOT APPROVED? - ✔✔place a contingency clause in the contract.
✔✔A broker is asked to list a property that is in violation of the local zoning ordinances.
he should: - ✔✔Refuse the listing.
✔✔a rate of return would be related to which of the following: - ✔✔Cap rate
✔✔When Buying an apartment building, it would be appraised using what approach? -
✔✔The income approach
✔✔when a house is built with cheap materials and shows signs of deterioration, this is
called - ✔✔Physical depreciation
