ARIZONA REAL ESTATE TEST PAPER 2025/2026
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔When a deed of trust is paid in full what does the borrower receive?
(a) Warranty deed
(b) Assignment of equity
(c) Satisfaction of mortgage
(d) Deed of reconveyance - ✔✔(d) Deed of reconveyance
A mortgage holder issues a deed of reconveyance to indicate that the borrower has
been released from the mortgage debt. The deed transfers the property title from the
lender, also called the beneficiary, to the borrower.
✔✔When a salesperson leaves a brokerage office where does the license go?
(a) Back to the Real Estate Department
(b) Remains with the broker
(C) Is given to the salesperson to keep
(d) Sent to the Board of Realtors within ten days - ✔✔(a) Back to the Real Estate
Department
✔✔Which of the following is true regarding adverse possession?
(a) Right to use the land of another
(b) Owner's permission is necessary to file claim
(c) When the property is sold the claimant's right terminate
(d) Statutory period of time - ✔✔(a) Right to use the land of another
Adverse possession is a legal doctrine that allows a person to claim a property right in
land owned by another. Common examples of adverse possession include continuous
use of a private road or driveway, or agricultural development of an unused parcel of
land.
✔✔Two lots sold for $180,500. One lot sold for 18% more than the other. What was the
value of the more expensive lot?
(a) $148,010
(b) $1,002,777.77
(c) $97,701.84
(d) $82,798.16 - ✔✔(c) $97,701.84
1) 180,% = 82,798.16 (lower priced lot)
2) 180,500 - 82,798.16 = 97,701.84 (higher priced lot)
✔✔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
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔When a deed of trust is paid in full what does the borrower receive?
(a) Warranty deed
(b) Assignment of equity
(c) Satisfaction of mortgage
(d) Deed of reconveyance - ✔✔(d) Deed of reconveyance
A mortgage holder issues a deed of reconveyance to indicate that the borrower has
been released from the mortgage debt. The deed transfers the property title from the
lender, also called the beneficiary, to the borrower.
✔✔When a salesperson leaves a brokerage office where does the license go?
(a) Back to the Real Estate Department
(b) Remains with the broker
(C) Is given to the salesperson to keep
(d) Sent to the Board of Realtors within ten days - ✔✔(a) Back to the Real Estate
Department
✔✔Which of the following is true regarding adverse possession?
(a) Right to use the land of another
(b) Owner's permission is necessary to file claim
(c) When the property is sold the claimant's right terminate
(d) Statutory period of time - ✔✔(a) Right to use the land of another
Adverse possession is a legal doctrine that allows a person to claim a property right in
land owned by another. Common examples of adverse possession include continuous
use of a private road or driveway, or agricultural development of an unused parcel of
land.
✔✔Two lots sold for $180,500. One lot sold for 18% more than the other. What was the
value of the more expensive lot?
(a) $148,010
(b) $1,002,777.77
(c) $97,701.84
(d) $82,798.16 - ✔✔(c) $97,701.84
1) 180,% = 82,798.16 (lower priced lot)
2) 180,500 - 82,798.16 = 97,701.84 (higher priced lot)
✔✔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
