Arizona 6-Hour Contract Writing Course
EXAM
All of the following subsections are in the Property section of the AAR
purchase contract, EXCEPT which one?
A) Close of escrow
B) Cure notice period
C) Fixtures and personal property
D) Possession correct answersB) Cure notice period
A(n) is essentially an agreement or promise between parties.
E) Addendum
F) Amendment
G) Contract
H) Disclosure correct answersC) Contract
A week after their contract fell through, buyer Julie sued seller Omar
for specific performance. What does this mean?
I) Julie is the reason the contract fell through.
J) Julie still wants Omar to sell her his property.
K) Julie wants Omar to reimburse her for the appraisal she paid for.
L)Julie wants Omar to return her earnest money deposit. correct
answersB) Julie still wants Omar to sell her his property.
A suit for specific performance compels a contract party to fulfill the
contract terms; in this case, the seller is compelled to sell the property.
Federal law requires sellers of homes built before 1978 to provide the lead-
based paint disclosure. When must it be provided?
M)Before closing
N) When the contract is signed
O) Within 10 days after the contract is signed
P)Within three calendar days after the contract is signed correct
answersA) Before closing
,The lead-based paint disclosure and EPA booklet must be provided before
closing. Buyers must acknowledge receipt of the disclosure, and they have
10 days to conduct a risk assessment.
In addition to providing a disclosure of any lead-based paint hazards in
homes built before 1978, what must a seller's agent provide to
prospective buyers?
A) Assurance that the home is lead-free before offering it for sale
B) EPA lead safety pamphlet
C) List of reputable home improvement contractors
D) Written proof that the home is lead-free correct answersB) EPA lead
safety pamphlet
Arizona buyer Natalie is curious as to whether the seller has filed an
insurance claim for the property in the past. Which of the following is true?
E) The seller is not required to disclose insurance claim information from the
past.
F)The seller must provide a 10-year insurance claim history of the
property (or the length of time the seller has owned the property, if less
than 10 years) within five days of contract acceptance.
G) The seller must provide a five-year insurance claim history of the
property (or the
length of time the seller has owned the property, if less than five years)
within five days of contract acceptance.
D)The seller must provide a three-year insurance claim history of the
property (or the length of time the seller has owned the property, if less than
three years) within 10 days
of contract acceptance. correct answersC) The seller must provide a five-year
insurance claim history of the property (or the length of time the seller has
owned the property, if
less than five years) within five days of contract acceptance.
Remi offered to purchase Vera's house for $350,000. He paid the earnest
money, but couldn't get enough for the down payment by the closing date.
Where will the earnest money go now?
E) Remi is entitled to get his earnest money back.
F) Remi's agent is entitled to keep the earnest money.
G) Remi will get the earnest money back, minus fees to both his and Vera's
agents.
H)Vera is entitled to keep the earnest money because Remi breached
their contract. correct answersD) Vera is entitled to keep the earnest money
because Remi breached their contract.
Which of the following statements is true regarding purchase agreements in
Arizona?
I) A purchase contract is not a binding agreement.
J) A purchase contract states the price and terms of the agreement.
K) Disclosures are optional when it comes to purchase agreements.
L)Only the seller is bound by the purchase agreement. correct answersB)
A purchase contract states the price and terms of the agreement.
,Don is the buyer and Sandra is the seller. On the contract, they are
considered the
.
A) Particulars
B) Persons of interest
C) Primaries
D) Principals correct answersD) Principals
The Domestic Water Well Addendum gives the seller days from contract
acceptance to deliver the SPDS, including details about the well's use, to
the buyer.
E) Five
F) Four
G) Three
H) Two correct answersA) Five
Harvey, an Arizona listing agent, has been presented with an offer from a
buyer's agent for his client's property. Where should he look in order to see
the buyer financing information as part of the bid?
I) The Loan Estimate
J) The Loan Status Update
K) The Mortgage Verification
L) The Pre-Qualification Form correct answersD) The Pre-Qualification Form
Which of the following best describes a lease agreement?
M)A legally binding, written contract between a landlord and a listing
licensee
N) A legally binding, written contract between a landlord and a tenant
O) A legally binding, written contract between a tenant and a buyer licensee
P)A legally binding, written contract between a tenant and a listing
licensee correct answersB) A legally binding, written contract between a
landlord and a tenant
Which of the following statements is true if a loan contingency is in
effect in a sales contract?
Q)If the buyer can't meet the terms of the agreement due to the
inability to obtain a loan, the agreement is terminated.
R) If the buyer can't obtain a loan, the buyer's broker may loan the client
the money so
that the deal can go through.
C)If the buyer can't obtain a loan, the seller may be forced to drop
the price of the property so that the buyer can afford to purchase the
home with available funds.
D) If the buyer can't obtain a loan, the transaction is placed on hold
until the buyer can
find another lender. correct answersA) If the buyer can't meet the
terms of the agreement due to the inability to obtain a loan, the
agreement is terminated.
, Sellers are required to disclose .
A) Known material facts
B) The home's proximity to a registered sex offender
C) The owner's HIV status
D)Whether or not someone died on the property correct answersA)
Known material facts
Broker Jamie just helped Vince buy his first house. After the transaction is
completed, how long does Jamie need to hold onto all documents
pertaining to Vince's purchase?
E) 30 days
F) Five years
G) Six months
H) Two years correct answersB) Five years
How long is the cure notice period (CPN) according to the Arizona purchase
contract?
I) Five days
J) One week
K) Three days
L) Two weeks correct answersC) Three days
The CPN is three days, and gives the noncompliant party three days to
comply or be in breach of the contract.
What is the default length of the inspection period in Arizona?
M)10 days
N) 14 days
O) 30 days
P) Five days correct answersA) 10 days
The AAR purchase contract states that the "Buyers Inspection Period shall
be ten (10) days" after contract acceptance, unless otherwise specified in
the contract.
Simone has three clients who want to buy the same house in Scottsdale.
What must she do in this situation?
Q)Disclose the situation to all her clients and avoid giving any client
details about another client's offer.
R) Let all of her clients submit offers without telling them about the
other offers.
S) Refer two of her clients to other licensees at her brokerage firm.
EXAM
All of the following subsections are in the Property section of the AAR
purchase contract, EXCEPT which one?
A) Close of escrow
B) Cure notice period
C) Fixtures and personal property
D) Possession correct answersB) Cure notice period
A(n) is essentially an agreement or promise between parties.
E) Addendum
F) Amendment
G) Contract
H) Disclosure correct answersC) Contract
A week after their contract fell through, buyer Julie sued seller Omar
for specific performance. What does this mean?
I) Julie is the reason the contract fell through.
J) Julie still wants Omar to sell her his property.
K) Julie wants Omar to reimburse her for the appraisal she paid for.
L)Julie wants Omar to return her earnest money deposit. correct
answersB) Julie still wants Omar to sell her his property.
A suit for specific performance compels a contract party to fulfill the
contract terms; in this case, the seller is compelled to sell the property.
Federal law requires sellers of homes built before 1978 to provide the lead-
based paint disclosure. When must it be provided?
M)Before closing
N) When the contract is signed
O) Within 10 days after the contract is signed
P)Within three calendar days after the contract is signed correct
answersA) Before closing
,The lead-based paint disclosure and EPA booklet must be provided before
closing. Buyers must acknowledge receipt of the disclosure, and they have
10 days to conduct a risk assessment.
In addition to providing a disclosure of any lead-based paint hazards in
homes built before 1978, what must a seller's agent provide to
prospective buyers?
A) Assurance that the home is lead-free before offering it for sale
B) EPA lead safety pamphlet
C) List of reputable home improvement contractors
D) Written proof that the home is lead-free correct answersB) EPA lead
safety pamphlet
Arizona buyer Natalie is curious as to whether the seller has filed an
insurance claim for the property in the past. Which of the following is true?
E) The seller is not required to disclose insurance claim information from the
past.
F)The seller must provide a 10-year insurance claim history of the
property (or the length of time the seller has owned the property, if less
than 10 years) within five days of contract acceptance.
G) The seller must provide a five-year insurance claim history of the
property (or the
length of time the seller has owned the property, if less than five years)
within five days of contract acceptance.
D)The seller must provide a three-year insurance claim history of the
property (or the length of time the seller has owned the property, if less than
three years) within 10 days
of contract acceptance. correct answersC) The seller must provide a five-year
insurance claim history of the property (or the length of time the seller has
owned the property, if
less than five years) within five days of contract acceptance.
Remi offered to purchase Vera's house for $350,000. He paid the earnest
money, but couldn't get enough for the down payment by the closing date.
Where will the earnest money go now?
E) Remi is entitled to get his earnest money back.
F) Remi's agent is entitled to keep the earnest money.
G) Remi will get the earnest money back, minus fees to both his and Vera's
agents.
H)Vera is entitled to keep the earnest money because Remi breached
their contract. correct answersD) Vera is entitled to keep the earnest money
because Remi breached their contract.
Which of the following statements is true regarding purchase agreements in
Arizona?
I) A purchase contract is not a binding agreement.
J) A purchase contract states the price and terms of the agreement.
K) Disclosures are optional when it comes to purchase agreements.
L)Only the seller is bound by the purchase agreement. correct answersB)
A purchase contract states the price and terms of the agreement.
,Don is the buyer and Sandra is the seller. On the contract, they are
considered the
.
A) Particulars
B) Persons of interest
C) Primaries
D) Principals correct answersD) Principals
The Domestic Water Well Addendum gives the seller days from contract
acceptance to deliver the SPDS, including details about the well's use, to
the buyer.
E) Five
F) Four
G) Three
H) Two correct answersA) Five
Harvey, an Arizona listing agent, has been presented with an offer from a
buyer's agent for his client's property. Where should he look in order to see
the buyer financing information as part of the bid?
I) The Loan Estimate
J) The Loan Status Update
K) The Mortgage Verification
L) The Pre-Qualification Form correct answersD) The Pre-Qualification Form
Which of the following best describes a lease agreement?
M)A legally binding, written contract between a landlord and a listing
licensee
N) A legally binding, written contract between a landlord and a tenant
O) A legally binding, written contract between a tenant and a buyer licensee
P)A legally binding, written contract between a tenant and a listing
licensee correct answersB) A legally binding, written contract between a
landlord and a tenant
Which of the following statements is true if a loan contingency is in
effect in a sales contract?
Q)If the buyer can't meet the terms of the agreement due to the
inability to obtain a loan, the agreement is terminated.
R) If the buyer can't obtain a loan, the buyer's broker may loan the client
the money so
that the deal can go through.
C)If the buyer can't obtain a loan, the seller may be forced to drop
the price of the property so that the buyer can afford to purchase the
home with available funds.
D) If the buyer can't obtain a loan, the transaction is placed on hold
until the buyer can
find another lender. correct answersA) If the buyer can't meet the
terms of the agreement due to the inability to obtain a loan, the
agreement is terminated.
, Sellers are required to disclose .
A) Known material facts
B) The home's proximity to a registered sex offender
C) The owner's HIV status
D)Whether or not someone died on the property correct answersA)
Known material facts
Broker Jamie just helped Vince buy his first house. After the transaction is
completed, how long does Jamie need to hold onto all documents
pertaining to Vince's purchase?
E) 30 days
F) Five years
G) Six months
H) Two years correct answersB) Five years
How long is the cure notice period (CPN) according to the Arizona purchase
contract?
I) Five days
J) One week
K) Three days
L) Two weeks correct answersC) Three days
The CPN is three days, and gives the noncompliant party three days to
comply or be in breach of the contract.
What is the default length of the inspection period in Arizona?
M)10 days
N) 14 days
O) 30 days
P) Five days correct answersA) 10 days
The AAR purchase contract states that the "Buyers Inspection Period shall
be ten (10) days" after contract acceptance, unless otherwise specified in
the contract.
Simone has three clients who want to buy the same house in Scottsdale.
What must she do in this situation?
Q)Disclose the situation to all her clients and avoid giving any client
details about another client's offer.
R) Let all of her clients submit offers without telling them about the
other offers.
S) Refer two of her clients to other licensees at her brokerage firm.
