Real Estate Test Arizona #3 Exam
Questions with Complete Solutions
When property zoning is changed from single family to commercial usage, this
change would be called:
(a) Variance
(b) Up zoning
(c) Spot zoning
(d) Down zoning - ANSWER-(a) Variance
A lease in which the lessor completes improvements to allow the lessee to
immediately start business is:
(a) Proprietary lease
(b) Certificate of Occupancy
(c) Turnkey lease
(d) Tenant improvements - ANSWER-(c) Turnkey lease
In a standard property management agreement, the manager's agreement is with
the:
(a) Broker
(b) Tenants
(c) Homeowners Association
(d) Owner - ANSWER-(d) Owner
How long does a broker doing sales need to keep records?
(a) 3 years
(b) 4 years
(c) 2 years
(d) 5 years - ANSWER-(d) 5 years
If an individual is having a new home built and are concerned about construction
defects, he/she should contact the:
(a) The Board of Technical Registration
(b) Attorney General
(c) Arizona Department of Real Estate
(d) Arizona Registrar of Contractors - ANSWER-(d) Arizona Registrar of Contractors
Which of these statements is true?
(a) Economic rent may never be higher than contract rent
(b) When a tenant's interest in a lease is assigned, both the assignor and assignee
have liability to the landlord
(c) In a positive leasehold there is no excess rent
(d) Subleasing or assigning a lease always requires the lessor's permission -
ANSWER-(d) Subleasing or assigning a lease always requires the lessor's
permission
,Bob and Mary have decided to purchase a house from a real estate auction. Which
of the following is true?
(a) No license is required
(b) The auction house needs a license but the auctioneer doesn't
(c) As long as Bob and Mary sign a waiver no license is required
(d) The auctioneer needs a license - ANSWER-(d) The auctioneer needs a license
Which of the following would NOT be required to appear on a broker's trust account
deposit receipt:
(a) Deposit breakdown and amount
(b) Name of the principals
(c) Name of the brokerage
(d) Date of deposit - ANSWER-(c) Name of the brokerage
A broker lists a property for sale, but the broker has never advertised, shown the
property, or communicated to the seller in any way. The seller has a right to
conclude that the broker:
(a) Has breached fiduciary and abandoned the listing
(b) Has a busy schedule
(c) Found the property overpriced
(d) Assigned the listing to another broker - ANSWER-(a) Has breached fiduciary and
abandoned the listing
How many days does the landlord have to give the tenant a full accounting of the
security deposit upon termination of tenancy?
(a) 10 business days
(b) 3 business days
(c) 21 business days
(d) 14 business days - ANSWER-(d) 14 business days
Under Arizona law, a landlord must return the tenant's security deposit, with an
itemized statement of deductions, within 14 days after the tenant has moved out.
The tenant has the right to be present at the final inspection.
You are the agent for a newly married couple that has young twin daughters. This is
the couple's first house and they are very concerned about the safety of their young
children. They tell the agent that it is very important to them that they have full
disclosure about the property. Which of the following is the agent required to
disclose?
(a) A person convicted for sex crimes against children lives next door
(b) Seller saw scorpions in the home
(C) A previous owner died from HIV/AIDS while living in the property
(d) This property had a drug murder in the house last year - ANSWER-(b) Seller saw
scorpions in the home
Stigmatized property is not required to be disclosed (i.e.. homicide in home or person
w/ AIDS lived there). Nor sex offender in neighborhood (buyer's responsibility to find
out).
Which of the following would not be used in the cost approach?
(a) Net income
(b) Depreciation
, (C) Replacement cost
(d) Separate value for the land - ANSWER-(a) Net income
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?
(a) The buyer is bound to the seller's decision
(b) Buyer can't back out
(C) Offer is void
(d) Buyer would owe the salesperson a commission - ANSWER-(C) Offer is void
If appropriate legal procedures have been followed, the tenant may terminate the
lease early for:
(a) Any personal emergency such as loss of job
(b) Domestic violence
(c) Bedbug infestation
(d) Accepting employment out-of-state - ANSWER-(b) Domestic violence
If a buyer withdraws his offer prior to the offer being accepted by the seller, what is
the status of the earnest money?
(a) Belongs to the buyer
(b) Split between the seller and the buyer
(C) Belongs to the seller
(d) Split between the seller and broker - ANSWER-(a) Belongs to the buyer
When a person buys a timeshare, their right to rescind is:
(a) 10 Calendar days
(b) 3 business days
(c) 3 Calendar days
(d) 7 business days - ANSWER-(d) 7 business days
A prospective timeshare purchaser has until midnight on the seventh calendar day to
cancel the transaction and have any paid fees refunded.
RESPA mandates the lender to provide the borrower all of the following EXCEPT:
(a) Loan estimate
(b) Closing disclosure
(c) Three day right of rescission
(d) Estimated closing costs in three days - ANSWER-(c) Three day right of rescission
If lead based paint disclosure is required on a specific property, the real estate agent
is to ensure that the buyer or tenant has received which of the following?
(a) Soil inspection report
(b) Lead-based disclosure and booklet
(c) Full disclosure statement of all cost to remove the lead paint
(d) Home inspection from a qualified inspector - ANSWER-(b) Lead-based disclosure
and booklet
On a closing statement, the earnest money paid by the buyer would be which of the
following?
(a) Debit buyer, credit seller
Questions with Complete Solutions
When property zoning is changed from single family to commercial usage, this
change would be called:
(a) Variance
(b) Up zoning
(c) Spot zoning
(d) Down zoning - ANSWER-(a) Variance
A lease in which the lessor completes improvements to allow the lessee to
immediately start business is:
(a) Proprietary lease
(b) Certificate of Occupancy
(c) Turnkey lease
(d) Tenant improvements - ANSWER-(c) Turnkey lease
In a standard property management agreement, the manager's agreement is with
the:
(a) Broker
(b) Tenants
(c) Homeowners Association
(d) Owner - ANSWER-(d) Owner
How long does a broker doing sales need to keep records?
(a) 3 years
(b) 4 years
(c) 2 years
(d) 5 years - ANSWER-(d) 5 years
If an individual is having a new home built and are concerned about construction
defects, he/she should contact the:
(a) The Board of Technical Registration
(b) Attorney General
(c) Arizona Department of Real Estate
(d) Arizona Registrar of Contractors - ANSWER-(d) Arizona Registrar of Contractors
Which of these statements is true?
(a) Economic rent may never be higher than contract rent
(b) When a tenant's interest in a lease is assigned, both the assignor and assignee
have liability to the landlord
(c) In a positive leasehold there is no excess rent
(d) Subleasing or assigning a lease always requires the lessor's permission -
ANSWER-(d) Subleasing or assigning a lease always requires the lessor's
permission
,Bob and Mary have decided to purchase a house from a real estate auction. Which
of the following is true?
(a) No license is required
(b) The auction house needs a license but the auctioneer doesn't
(c) As long as Bob and Mary sign a waiver no license is required
(d) The auctioneer needs a license - ANSWER-(d) The auctioneer needs a license
Which of the following would NOT be required to appear on a broker's trust account
deposit receipt:
(a) Deposit breakdown and amount
(b) Name of the principals
(c) Name of the brokerage
(d) Date of deposit - ANSWER-(c) Name of the brokerage
A broker lists a property for sale, but the broker has never advertised, shown the
property, or communicated to the seller in any way. The seller has a right to
conclude that the broker:
(a) Has breached fiduciary and abandoned the listing
(b) Has a busy schedule
(c) Found the property overpriced
(d) Assigned the listing to another broker - ANSWER-(a) Has breached fiduciary and
abandoned the listing
How many days does the landlord have to give the tenant a full accounting of the
security deposit upon termination of tenancy?
(a) 10 business days
(b) 3 business days
(c) 21 business days
(d) 14 business days - ANSWER-(d) 14 business days
Under Arizona law, a landlord must return the tenant's security deposit, with an
itemized statement of deductions, within 14 days after the tenant has moved out.
The tenant has the right to be present at the final inspection.
You are the agent for a newly married couple that has young twin daughters. This is
the couple's first house and they are very concerned about the safety of their young
children. They tell the agent that it is very important to them that they have full
disclosure about the property. Which of the following is the agent required to
disclose?
(a) A person convicted for sex crimes against children lives next door
(b) Seller saw scorpions in the home
(C) A previous owner died from HIV/AIDS while living in the property
(d) This property had a drug murder in the house last year - ANSWER-(b) Seller saw
scorpions in the home
Stigmatized property is not required to be disclosed (i.e.. homicide in home or person
w/ AIDS lived there). Nor sex offender in neighborhood (buyer's responsibility to find
out).
Which of the following would not be used in the cost approach?
(a) Net income
(b) Depreciation
, (C) Replacement cost
(d) Separate value for the land - ANSWER-(a) Net income
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?
(a) The buyer is bound to the seller's decision
(b) Buyer can't back out
(C) Offer is void
(d) Buyer would owe the salesperson a commission - ANSWER-(C) Offer is void
If appropriate legal procedures have been followed, the tenant may terminate the
lease early for:
(a) Any personal emergency such as loss of job
(b) Domestic violence
(c) Bedbug infestation
(d) Accepting employment out-of-state - ANSWER-(b) Domestic violence
If a buyer withdraws his offer prior to the offer being accepted by the seller, what is
the status of the earnest money?
(a) Belongs to the buyer
(b) Split between the seller and the buyer
(C) Belongs to the seller
(d) Split between the seller and broker - ANSWER-(a) Belongs to the buyer
When a person buys a timeshare, their right to rescind is:
(a) 10 Calendar days
(b) 3 business days
(c) 3 Calendar days
(d) 7 business days - ANSWER-(d) 7 business days
A prospective timeshare purchaser has until midnight on the seventh calendar day to
cancel the transaction and have any paid fees refunded.
RESPA mandates the lender to provide the borrower all of the following EXCEPT:
(a) Loan estimate
(b) Closing disclosure
(c) Three day right of rescission
(d) Estimated closing costs in three days - ANSWER-(c) Three day right of rescission
If lead based paint disclosure is required on a specific property, the real estate agent
is to ensure that the buyer or tenant has received which of the following?
(a) Soil inspection report
(b) Lead-based disclosure and booklet
(c) Full disclosure statement of all cost to remove the lead paint
(d) Home inspection from a qualified inspector - ANSWER-(b) Lead-based disclosure
and booklet
On a closing statement, the earnest money paid by the buyer would be which of the
following?
(a) Debit buyer, credit seller
