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ARIZONA REAL ESTATE EXAM
QUESTIONS AND ANSWERS 2025
John makes an offer to Joe, and Joe makes a counter offer. Joe
dies before the counter offer is accepted. What is the contract
status?
A. Valid
B. Void
C. Enforceable
D. Bilateral - correct answer- B. Void
1031 Exchange - correct answer- A transaction that, under
provisions of Section 1031 of the Internal Revenue Code,
allows a taxpayer to sell an investment property and purchase
another investment property in its place without paying capital
gains on the proceeds from the sale.
1099-Misc - correct answer- The Internal Revenue Service form
that is used to report various types of miscellaneous income
earned other than salary earned from an employer
Abandonment of a Homestead - correct answer- The loss of a
homestead exemption if the owner moves to another state,
sells the property, turns the property into a rental or no longer
occupies the home as a primary residence
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Abutting - correct answer- Refers to parcels that share a
boundary
Acceleration Clause - correct answer- A clause in loan
documents that allows the lender to call the note all due and
payable if the borrower breaches the terms
Accretion - correct answer- The gradual addition of land by
natural causes, such as shoreline movements
Acre (in square feet) - correct answer- 43,560 square feet
Acre Foot - correct answer- One foot of water over the entire
surface of an acre; contains 325,851 gallons of water
Active Management Area (AMA) - correct answer- Areas within
Arizona where water management programs, such as
restriction governing groundwater use, are in place; requires
demonstration of Assured Water Supply
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Actual Eviction - correct answer- The physical removal of a
tenant from a leased property with the tenant relieved of any
further responsibility to pay rent
Actual Notice - correct answer- Express knowledge of a fact
(compared to Constructive Notice, which is notice given by
publication)
Ad Valorem - correct answer- A concept for property taxes that
means "according to value"
Adequate Water Supply - correct answer- The standard
required from developers OUTSIDE of an Active Management
Area (AMA); if adequate water supply cannot by demonstrated,
the developer must disclose this fact in all advertising and
promotional material
Adjustable Rate Mortgage (ARM) - correct answer- A mortgage
loan that has an interest rate on the note that periodically
adjusts based on an index that reflects the cost to the lender;
also called Variable Rate Mortgage
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Adjusted Basis - correct answer- The purchase price of a
property (basis) minus accumulative depreciation, plus
acquisition costs, plus capital improvements; also called
Adjusted Purchase Price
Adjusted Sales Price - correct answer- Sales price minus costs
of sale (commission and closing costs)
Administrator - correct answer- Court-appointed personal
representatives of an estate for someone who dies intestate
(without a will)
Administrator's Deed - correct answer- A document that
transfers title to real estate from an intestate person to his or
her heirs
Adverse Possession - correct answer- Acquiring title to land
because of a long-term, open and notorious use of the land.
The legal process is called PRESCRIPTION. The required time
period in Arizona is 10 years.
Advisory Board - correct answer- A 10-member board
appointed by the Governor that advises and gives
ARIZONA REAL ESTATE EXAM
QUESTIONS AND ANSWERS 2025
John makes an offer to Joe, and Joe makes a counter offer. Joe
dies before the counter offer is accepted. What is the contract
status?
A. Valid
B. Void
C. Enforceable
D. Bilateral - correct answer- B. Void
1031 Exchange - correct answer- A transaction that, under
provisions of Section 1031 of the Internal Revenue Code,
allows a taxpayer to sell an investment property and purchase
another investment property in its place without paying capital
gains on the proceeds from the sale.
1099-Misc - correct answer- The Internal Revenue Service form
that is used to report various types of miscellaneous income
earned other than salary earned from an employer
Abandonment of a Homestead - correct answer- The loss of a
homestead exemption if the owner moves to another state,
sells the property, turns the property into a rental or no longer
occupies the home as a primary residence
,`2 | P a g e
Abutting - correct answer- Refers to parcels that share a
boundary
Acceleration Clause - correct answer- A clause in loan
documents that allows the lender to call the note all due and
payable if the borrower breaches the terms
Accretion - correct answer- The gradual addition of land by
natural causes, such as shoreline movements
Acre (in square feet) - correct answer- 43,560 square feet
Acre Foot - correct answer- One foot of water over the entire
surface of an acre; contains 325,851 gallons of water
Active Management Area (AMA) - correct answer- Areas within
Arizona where water management programs, such as
restriction governing groundwater use, are in place; requires
demonstration of Assured Water Supply
,`3 | P a g e
Actual Eviction - correct answer- The physical removal of a
tenant from a leased property with the tenant relieved of any
further responsibility to pay rent
Actual Notice - correct answer- Express knowledge of a fact
(compared to Constructive Notice, which is notice given by
publication)
Ad Valorem - correct answer- A concept for property taxes that
means "according to value"
Adequate Water Supply - correct answer- The standard
required from developers OUTSIDE of an Active Management
Area (AMA); if adequate water supply cannot by demonstrated,
the developer must disclose this fact in all advertising and
promotional material
Adjustable Rate Mortgage (ARM) - correct answer- A mortgage
loan that has an interest rate on the note that periodically
adjusts based on an index that reflects the cost to the lender;
also called Variable Rate Mortgage
, `4 | P a g e
Adjusted Basis - correct answer- The purchase price of a
property (basis) minus accumulative depreciation, plus
acquisition costs, plus capital improvements; also called
Adjusted Purchase Price
Adjusted Sales Price - correct answer- Sales price minus costs
of sale (commission and closing costs)
Administrator - correct answer- Court-appointed personal
representatives of an estate for someone who dies intestate
(without a will)
Administrator's Deed - correct answer- A document that
transfers title to real estate from an intestate person to his or
her heirs
Adverse Possession - correct answer- Acquiring title to land
because of a long-term, open and notorious use of the land.
The legal process is called PRESCRIPTION. The required time
period in Arizona is 10 years.
Advisory Board - correct answer- A 10-member board
appointed by the Governor that advises and gives
