Arizona Real Estate License Exam – Complete 100
Questions with Verified Answers and Detailed
Answers- Latest Test (Updated 2026) | Graded A+
Question 1
A 3.45-acre lot sells for 50 cents per square foot. What is the selling price?
Answer: $75,141 ✔✔
Rationale: 3.45 acres × 43,560 sq ft/acre = 150,282 sq ft. 150,282 × $0.50 = $75,141.
Question 2
A blind ad refers to an ad that:
Answer: Gives no indication that the property is listed with a broker ✔✔
Rationale: A blind ad omits the broker's name and contact information, making it
unclear who is representing the property. This is deceptive and prohibited in real estate
advertising.
Question 3
A borrower is required to put 10% down for the purchase of a property. The 10% down
would be considered:
Answer: Equity (or down payment) ✔✔
Rationale: The down payment represents the buyer's initial equity in the property. It is
the portion of the purchase price not financed by the lender.
Question 4
A broker, acting as a property manager, would be what type of agent?
Answer: General agent ✔✔
Rationale: A property manager is a general agent because they have continuing
authority to handle multiple transactions and make decisions on behalf of the principal,
such as signing leases and overseeing maintenance.
pg. 1
,Question 5
A buyer pays 20% down and obtains a real estate mortgage. The buyer makes no further
payments. What clause would the lender now exercise?
Answer: Acceleration clause ✔✔
Rationale: An acceleration clause allows the lender to demand the full remaining
balance of the loan if the borrower defaults. After non-payment, the lender can
accelerate the loan and proceed with foreclosure.
Question 6
Which represents the County Assessor's reflection of Full Cash Value?
Answer: Market value ✔✔
Rationale: Full Cash Value (FCV) is the assessed value placed on property by the
County Assessor, intended to reflect the property's market value as of January 1st of the
assessment year.
Question 7
A contract has been signed, but title has not yet passed. The contract is:
Answer: Executory ✔✔
Rationale: A contract is executory when something remains to be done—in this case,
the transfer of title. The contract has been executed (signed) but is not yet fully
performed (title has not passed).
Question 8
A handicapped person is leasing a house that requires modification. Which is TRUE
about the modifications?
Answer: The lessor can require the lessee to reasonably restore the property at the end
of the lease ✔✔
Rationale: Under fair housing laws, a landlord must allow reasonable modifications
for accessibility. The tenant may be required to restore the property to its original
condition at lease termination.
pg. 2
, Question 9
A holdover tenant would have a(an):
Answer: Estate of sufferance ✔✔
Rationale: A holdover tenant remains in possession after the lease has expired without
the landlord's consent. This creates an estate at sufferance, which is the lowest form of
estate and not a true tenancy.
Question 10
Which property classification is used for vacant land?
Answer: Class 2 ✔✔
Rationale: In Arizona, property is classified for tax assessment purposes. Class 2
properties include vacant land and agricultural land. Residential property is Class 3, and
commercial is Class 1.
Question 11
A house costs $100,000. The buyer is making a down payment of $32,000 and getting a
$68,000 loan. If there are 4 points, how much money will be paid out of the closing for
the points?
**Answer:** $2,720 ✔✔
Rationale: Points are calculated on the loan amount, not the purchase price. $68,000
× 4% = $2,720. Each point equals 1% of the loan amount.
Question 12
A lender refuses to loan or limits loans in a certain minority neighborhood. This action
is called:
Answer: Redlining ✔✔
Rationale: Redlining is the illegal practice of denying or limiting loans to specific
neighborhoods based on racial or ethnic composition. This is prohibited under the Fair
Housing Act and other federal laws.
Question 13
pg. 3
Questions with Verified Answers and Detailed
Answers- Latest Test (Updated 2026) | Graded A+
Question 1
A 3.45-acre lot sells for 50 cents per square foot. What is the selling price?
Answer: $75,141 ✔✔
Rationale: 3.45 acres × 43,560 sq ft/acre = 150,282 sq ft. 150,282 × $0.50 = $75,141.
Question 2
A blind ad refers to an ad that:
Answer: Gives no indication that the property is listed with a broker ✔✔
Rationale: A blind ad omits the broker's name and contact information, making it
unclear who is representing the property. This is deceptive and prohibited in real estate
advertising.
Question 3
A borrower is required to put 10% down for the purchase of a property. The 10% down
would be considered:
Answer: Equity (or down payment) ✔✔
Rationale: The down payment represents the buyer's initial equity in the property. It is
the portion of the purchase price not financed by the lender.
Question 4
A broker, acting as a property manager, would be what type of agent?
Answer: General agent ✔✔
Rationale: A property manager is a general agent because they have continuing
authority to handle multiple transactions and make decisions on behalf of the principal,
such as signing leases and overseeing maintenance.
pg. 1
,Question 5
A buyer pays 20% down and obtains a real estate mortgage. The buyer makes no further
payments. What clause would the lender now exercise?
Answer: Acceleration clause ✔✔
Rationale: An acceleration clause allows the lender to demand the full remaining
balance of the loan if the borrower defaults. After non-payment, the lender can
accelerate the loan and proceed with foreclosure.
Question 6
Which represents the County Assessor's reflection of Full Cash Value?
Answer: Market value ✔✔
Rationale: Full Cash Value (FCV) is the assessed value placed on property by the
County Assessor, intended to reflect the property's market value as of January 1st of the
assessment year.
Question 7
A contract has been signed, but title has not yet passed. The contract is:
Answer: Executory ✔✔
Rationale: A contract is executory when something remains to be done—in this case,
the transfer of title. The contract has been executed (signed) but is not yet fully
performed (title has not passed).
Question 8
A handicapped person is leasing a house that requires modification. Which is TRUE
about the modifications?
Answer: The lessor can require the lessee to reasonably restore the property at the end
of the lease ✔✔
Rationale: Under fair housing laws, a landlord must allow reasonable modifications
for accessibility. The tenant may be required to restore the property to its original
condition at lease termination.
pg. 2
, Question 9
A holdover tenant would have a(an):
Answer: Estate of sufferance ✔✔
Rationale: A holdover tenant remains in possession after the lease has expired without
the landlord's consent. This creates an estate at sufferance, which is the lowest form of
estate and not a true tenancy.
Question 10
Which property classification is used for vacant land?
Answer: Class 2 ✔✔
Rationale: In Arizona, property is classified for tax assessment purposes. Class 2
properties include vacant land and agricultural land. Residential property is Class 3, and
commercial is Class 1.
Question 11
A house costs $100,000. The buyer is making a down payment of $32,000 and getting a
$68,000 loan. If there are 4 points, how much money will be paid out of the closing for
the points?
**Answer:** $2,720 ✔✔
Rationale: Points are calculated on the loan amount, not the purchase price. $68,000
× 4% = $2,720. Each point equals 1% of the loan amount.
Question 12
A lender refuses to loan or limits loans in a certain minority neighborhood. This action
is called:
Answer: Redlining ✔✔
Rationale: Redlining is the illegal practice of denying or limiting loans to specific
neighborhoods based on racial or ethnic composition. This is prohibited under the Fair
Housing Act and other federal laws.
Question 13
pg. 3
