ARIZONA REAL ESTATE MAIN EXAM TEST QUESTIONS WITH ANSWER
QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔Property taxes are $1,525. The first half was paid by the seller. A sale closes Nov
2nd, using a calendar year, what is the debit and credit to buyer and seller on the
settlement sheet?
(a) $518.07 debit seller, credit buyer
(b) $250.68 debit seller, credit buyer
(c) $250.68 Credit seller, debit buyer
(d) $518.07 credit seller, debit buyer - ✔✔(a) $518.07 debit seller, credit buyer
✔✔What is the most important factor a developer would take into consideration in
selecting a new area to develop?
(a) Population
(b) Bench mark
(c) Topography
(d) Location - ✔✔(d) Location
The adage "location, location, location" is still king and continues to be the most
important factor for profitability in real estate investing.
✔✔Which of the following is not essential to a valid contract?
(a) Monetary consideration
(b) lawful object
(c) competent parties
(d) mutual assent - ✔✔(a) Monetary consideration
✔✔Which of the following could be pursued by the lender for a deficiency?
(a) A home on 4 acres
(b) A 850-square-foot condo
(C) A mobile home on 2.5 acres
(d) A duplex on 1/2 acre - ✔✔(a) A home on 4 acres
✔✔When you are foreclosing on a tax lien, where would you go?
(a) Superior court
(b) County assessor
(c) Small claims court
(d) Justice of the peace - ✔✔(a) Superior court
Prior to initiating the court action, the CP holder is required to give the property owner a
minimum of thirty days' notice by certified mail of the impending foreclosure. If the
owner fails to redeem within that thirty-day period, the CP holder may begin the
foreclosure action in Superior Court.
✔✔When would a person be best advised to use a cap rate?
(a) When determining the highest and best use of the property
(b) When using the cost approach after depreciation
,(c) When determining the gross rent multiplier
(d) When converting income to value - ✔✔(d) When converting income to value
✔✔In order to acquire an easement by prescription you need:
(a) Open, hostile, continuous use
(b) Legal action
(c) Continuous use for 5 years
(d) Permission from the owner - ✔✔(a) Open, hostile, continuous use
In order to derive an easement by prescription, you must: Use the property openly and
in a notorious way. Make actual use of the property. Your use must be hostile. Your use
must be in a continuous way
✔✔The right of the mortgagor to regain title is called:
(a) Hypothecate
(b) Reinstatement
(c) Redemption
(d) Reversion - ✔✔(c) Redemption
The right of redemption allows individuals who have defaulted on their mortgages the
ability to reclaim their property by paying the amount due (plus interest and penalties)
before the foreclosure process begins.
✔✔The two designations or classifications of water law in Arizona are:
(a) Navigable and non-navigable
(b) Flowing and stagnant
(c) Ground and surface
(d) None of these - ✔✔(c) Ground and surface
✔✔A lease is for an indefinite period of time. This is called an:
(a) Estate for period to period
(b) Estate at Sufferance
(c) Estate at will
(d) Estate for years - ✔✔(a) Estate for period to period
An estate from period to period, or periodic tenancy, is created when landlord and
tenant enter into an agreement for an indefinite time; that is, the estate does not contain
a specific expiration date, but continues indefinitely until proper notice of termination is
given.
✔✔Littoral rights would refer to:
(a) Mineral rights and easements
(b) Building material
(c) Property bordering lakes and oceans
(d) The heir's rights in deeded property - ✔✔(c) Property bordering lakes and oceans
Littoral rights are a type of water rights that guarantee owners access and use of bodies
of water adjacent to lands that have access like lakes, seas and oceans.
, ✔✔A real estate licensee can prepare all the following EXCEPT:
(a) Listing
(b) Purchase contract
(c) Appraisal
(d) Deed - ✔✔(c) Appraisal
✔✔Radon gas would primarily be found in which of the following substances:
(a) Insulation material
(b) Underground minerals
(c) Building materials containing formaldehyde
(d) Lead paint - ✔✔(b) Underground minerals
✔✔Which of the following is NOT required for a sales license in Arizona?
(a) Pass an examination
(b) 90 days residence
(C) Minimum age
(d) 90 hours of education - ✔✔(b) 90 days residence
✔✔All of the following are paid by the seller EXCEPT:
(a) Property taxes
(b) Escrow fee
(c) Owners title policy
(d) Lenders title policy - ✔✔(c) Owners title policy
✔✔A wraparound loan would never be which of the following?
(a) A junior
(b) A first deed of trust
(c) A purchase money mortgage
(d) An agreement for sale - ✔✔(b) A first deed of trust
A wraparound mortgage is a type of junior loan which wraps or includes, the current
note due on the property. The wraparound loan will consist of the balance of the original
loan plus an amount to cover the new purchase price for the property.
✔✔What can't the real estate commissioner do in the normal line of work?
(a) Hire and fire Department of Real Estate employees
(b) Check files of licensee
(c) Hold an active real estate license
(d) Revoke a real estate license - ✔✔(c) Hold an active real estate license
✔✔Once a real estate license is issued in Arizona, it:
(a) Must be placed with a broker in order to earn a commission
(b) Will remain in the possession of the licensee in all cases
(c) Will be terminated if the licensee moves out of state
QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔Property taxes are $1,525. The first half was paid by the seller. A sale closes Nov
2nd, using a calendar year, what is the debit and credit to buyer and seller on the
settlement sheet?
(a) $518.07 debit seller, credit buyer
(b) $250.68 debit seller, credit buyer
(c) $250.68 Credit seller, debit buyer
(d) $518.07 credit seller, debit buyer - ✔✔(a) $518.07 debit seller, credit buyer
✔✔What is the most important factor a developer would take into consideration in
selecting a new area to develop?
(a) Population
(b) Bench mark
(c) Topography
(d) Location - ✔✔(d) Location
The adage "location, location, location" is still king and continues to be the most
important factor for profitability in real estate investing.
✔✔Which of the following is not essential to a valid contract?
(a) Monetary consideration
(b) lawful object
(c) competent parties
(d) mutual assent - ✔✔(a) Monetary consideration
✔✔Which of the following could be pursued by the lender for a deficiency?
(a) A home on 4 acres
(b) A 850-square-foot condo
(C) A mobile home on 2.5 acres
(d) A duplex on 1/2 acre - ✔✔(a) A home on 4 acres
✔✔When you are foreclosing on a tax lien, where would you go?
(a) Superior court
(b) County assessor
(c) Small claims court
(d) Justice of the peace - ✔✔(a) Superior court
Prior to initiating the court action, the CP holder is required to give the property owner a
minimum of thirty days' notice by certified mail of the impending foreclosure. If the
owner fails to redeem within that thirty-day period, the CP holder may begin the
foreclosure action in Superior Court.
✔✔When would a person be best advised to use a cap rate?
(a) When determining the highest and best use of the property
(b) When using the cost approach after depreciation
,(c) When determining the gross rent multiplier
(d) When converting income to value - ✔✔(d) When converting income to value
✔✔In order to acquire an easement by prescription you need:
(a) Open, hostile, continuous use
(b) Legal action
(c) Continuous use for 5 years
(d) Permission from the owner - ✔✔(a) Open, hostile, continuous use
In order to derive an easement by prescription, you must: Use the property openly and
in a notorious way. Make actual use of the property. Your use must be hostile. Your use
must be in a continuous way
✔✔The right of the mortgagor to regain title is called:
(a) Hypothecate
(b) Reinstatement
(c) Redemption
(d) Reversion - ✔✔(c) Redemption
The right of redemption allows individuals who have defaulted on their mortgages the
ability to reclaim their property by paying the amount due (plus interest and penalties)
before the foreclosure process begins.
✔✔The two designations or classifications of water law in Arizona are:
(a) Navigable and non-navigable
(b) Flowing and stagnant
(c) Ground and surface
(d) None of these - ✔✔(c) Ground and surface
✔✔A lease is for an indefinite period of time. This is called an:
(a) Estate for period to period
(b) Estate at Sufferance
(c) Estate at will
(d) Estate for years - ✔✔(a) Estate for period to period
An estate from period to period, or periodic tenancy, is created when landlord and
tenant enter into an agreement for an indefinite time; that is, the estate does not contain
a specific expiration date, but continues indefinitely until proper notice of termination is
given.
✔✔Littoral rights would refer to:
(a) Mineral rights and easements
(b) Building material
(c) Property bordering lakes and oceans
(d) The heir's rights in deeded property - ✔✔(c) Property bordering lakes and oceans
Littoral rights are a type of water rights that guarantee owners access and use of bodies
of water adjacent to lands that have access like lakes, seas and oceans.
, ✔✔A real estate licensee can prepare all the following EXCEPT:
(a) Listing
(b) Purchase contract
(c) Appraisal
(d) Deed - ✔✔(c) Appraisal
✔✔Radon gas would primarily be found in which of the following substances:
(a) Insulation material
(b) Underground minerals
(c) Building materials containing formaldehyde
(d) Lead paint - ✔✔(b) Underground minerals
✔✔Which of the following is NOT required for a sales license in Arizona?
(a) Pass an examination
(b) 90 days residence
(C) Minimum age
(d) 90 hours of education - ✔✔(b) 90 days residence
✔✔All of the following are paid by the seller EXCEPT:
(a) Property taxes
(b) Escrow fee
(c) Owners title policy
(d) Lenders title policy - ✔✔(c) Owners title policy
✔✔A wraparound loan would never be which of the following?
(a) A junior
(b) A first deed of trust
(c) A purchase money mortgage
(d) An agreement for sale - ✔✔(b) A first deed of trust
A wraparound mortgage is a type of junior loan which wraps or includes, the current
note due on the property. The wraparound loan will consist of the balance of the original
loan plus an amount to cover the new purchase price for the property.
✔✔What can't the real estate commissioner do in the normal line of work?
(a) Hire and fire Department of Real Estate employees
(b) Check files of licensee
(c) Hold an active real estate license
(d) Revoke a real estate license - ✔✔(c) Hold an active real estate license
✔✔Once a real estate license is issued in Arizona, it:
(a) Must be placed with a broker in order to earn a commission
(b) Will remain in the possession of the licensee in all cases
(c) Will be terminated if the licensee moves out of state
