ARIZONA REAL ESTATE PRACTICE
QUESTIONS 2026 COMPREHENSIVE
STUDY GUIDE PRACTICE QUESTIONS AND
CORRECT ANSWERS ARIZONA REAL
ESTATE SALESPERSON LICENSING EXAM
PREPARATION GRADE A+
When a wraparound is created who is responsible for the underlying loans?
- CORRECT ANSWER-Vendor
What term does the law use to describe a holdover tenant? - CORRECT
ANSWER-Tenancy at sufferance
An unlicensed property manager can do all of the following except: -
CORRECT ANSWER-Negotiating lease terms
Title to property would pass when: - CORRECT ANSWER-The deed is signed
and delivered
All of the following relate to Limited Liability Companies EXCEPT: -
CORRECT ANSWER-Article of Incorporation
When action is brought in court to compel a party to carry out the terms of
a contract, this is called: - CORRECT ANSWER-specific performance
,To be enforceable a lease must be in writing if the term is: - CORRECT
ANSWER-Longer than one year
An Arizona broker must review and approve every listing taken by his/her
personnel within _____ of the date the listing was taken. - CORRECT
ANSWER-5 calendar days
An example of a freehold estate is: - CORRECT ANSWER-A fee simple estate
According to Arizona Revised Statutes, when a deed is not recorded it is -
CORRECT ANSWER-Valid but potentially invalid against subsequently
recorded interests
When constructing a home, the load bearing walls would rest on: -
CORRECT ANSWER-Footing
The Advisory Board is to adhere to which of the following guidelines? -
CORRECT ANSWER-It will consist of a ten-member panel
In Arizona, the statutory redemption period if a property is sold for back
taxes, is how long? - CORRECT ANSWER-3 years
Patents, trademarks, copyrights and royalties are an example of: - CORRECT
ANSWER-Intangible personalty
,Property management firms shall keep all financial records pertaining to
clients for at least: - CORRECT ANSWER-Three years
A rental property has 6 rental units that rent for $700 each per month.
Similar property in the area has been selling for $700,000. What would be
the gross rent multiplier for this type of property? - CORRECT ANSWER-13.8
Rationale: The price/value divided by the gross rents equal the gross rent
multiplier. This problem has monthly rent but is asking for "gross rent
multiplier" which translates to "annual gross rent multiplier" (remember if
it doesn't say monthly it is NOT monthly). So $700 *12 * 6 = $50, 400/year
divided by $700,000 = 13.8 Gross rent multiplier.
Your bundle of rights includes all of the following except: - CORRECT
ANSWER-Right of encroachment
A condominium and cooperative would be the same in that: - CORRECT
ANSWER-Both pay annual assessments
In checking for conformity of a home in a particular neighborhood, an
appraiser would not consider: - CORRECT ANSWER-Listed price
On which of the following properties would you most likely use the income
approach to appraising? - CORRECT ANSWER-Office building
Who would not write a purchase contract? - CORRECT ANSWER-Escrow
officer
, Broker Smithson, although believing the seller was demanding too high an
asking price, took an exclusive right to sell listing on a home. Several
months later, Smith met with the seller and urged her to reduce the listing
price, but to no avail. Now, just as the listing is about to expire, Smithson
advertises the property at a price below that shown on the listing and
immediately receives an offer which the seller accepts. Broker Smithson's
actions: - CORRECT ANSWER-Constitute a breach of the agency agreement
The listing agent discriminates against a minority buyer. If the seller were
to be held responsible for the actions of the agent, it would be an example
of: - CORRECT ANSWER-Vicarious liability
If a partnership does not pay its debts, the creditors may collect from the
personal assets of: - CORRECT ANSWER-General partners
Brokerage companies have an agreement to not take listings in each other's
area. This practice would be: - CORRECT ANSWER-Violation of anti-trust
laws
Which of these transactions requires the use of a Closing Disclosure at
closing? - CORRECT ANSWER-New home purchase with conventional
financing
What is the purpose of the Foreign Investment Real Property Act? -
CORRECT ANSWER-Requires tax withholding if seller is a foreigner
What can be determined by a location survey? - CORRECT ANSWER-
Whether or not the property's buildings encroach on neighboring land
QUESTIONS 2026 COMPREHENSIVE
STUDY GUIDE PRACTICE QUESTIONS AND
CORRECT ANSWERS ARIZONA REAL
ESTATE SALESPERSON LICENSING EXAM
PREPARATION GRADE A+
When a wraparound is created who is responsible for the underlying loans?
- CORRECT ANSWER-Vendor
What term does the law use to describe a holdover tenant? - CORRECT
ANSWER-Tenancy at sufferance
An unlicensed property manager can do all of the following except: -
CORRECT ANSWER-Negotiating lease terms
Title to property would pass when: - CORRECT ANSWER-The deed is signed
and delivered
All of the following relate to Limited Liability Companies EXCEPT: -
CORRECT ANSWER-Article of Incorporation
When action is brought in court to compel a party to carry out the terms of
a contract, this is called: - CORRECT ANSWER-specific performance
,To be enforceable a lease must be in writing if the term is: - CORRECT
ANSWER-Longer than one year
An Arizona broker must review and approve every listing taken by his/her
personnel within _____ of the date the listing was taken. - CORRECT
ANSWER-5 calendar days
An example of a freehold estate is: - CORRECT ANSWER-A fee simple estate
According to Arizona Revised Statutes, when a deed is not recorded it is -
CORRECT ANSWER-Valid but potentially invalid against subsequently
recorded interests
When constructing a home, the load bearing walls would rest on: -
CORRECT ANSWER-Footing
The Advisory Board is to adhere to which of the following guidelines? -
CORRECT ANSWER-It will consist of a ten-member panel
In Arizona, the statutory redemption period if a property is sold for back
taxes, is how long? - CORRECT ANSWER-3 years
Patents, trademarks, copyrights and royalties are an example of: - CORRECT
ANSWER-Intangible personalty
,Property management firms shall keep all financial records pertaining to
clients for at least: - CORRECT ANSWER-Three years
A rental property has 6 rental units that rent for $700 each per month.
Similar property in the area has been selling for $700,000. What would be
the gross rent multiplier for this type of property? - CORRECT ANSWER-13.8
Rationale: The price/value divided by the gross rents equal the gross rent
multiplier. This problem has monthly rent but is asking for "gross rent
multiplier" which translates to "annual gross rent multiplier" (remember if
it doesn't say monthly it is NOT monthly). So $700 *12 * 6 = $50, 400/year
divided by $700,000 = 13.8 Gross rent multiplier.
Your bundle of rights includes all of the following except: - CORRECT
ANSWER-Right of encroachment
A condominium and cooperative would be the same in that: - CORRECT
ANSWER-Both pay annual assessments
In checking for conformity of a home in a particular neighborhood, an
appraiser would not consider: - CORRECT ANSWER-Listed price
On which of the following properties would you most likely use the income
approach to appraising? - CORRECT ANSWER-Office building
Who would not write a purchase contract? - CORRECT ANSWER-Escrow
officer
, Broker Smithson, although believing the seller was demanding too high an
asking price, took an exclusive right to sell listing on a home. Several
months later, Smith met with the seller and urged her to reduce the listing
price, but to no avail. Now, just as the listing is about to expire, Smithson
advertises the property at a price below that shown on the listing and
immediately receives an offer which the seller accepts. Broker Smithson's
actions: - CORRECT ANSWER-Constitute a breach of the agency agreement
The listing agent discriminates against a minority buyer. If the seller were
to be held responsible for the actions of the agent, it would be an example
of: - CORRECT ANSWER-Vicarious liability
If a partnership does not pay its debts, the creditors may collect from the
personal assets of: - CORRECT ANSWER-General partners
Brokerage companies have an agreement to not take listings in each other's
area. This practice would be: - CORRECT ANSWER-Violation of anti-trust
laws
Which of these transactions requires the use of a Closing Disclosure at
closing? - CORRECT ANSWER-New home purchase with conventional
financing
What is the purpose of the Foreign Investment Real Property Act? -
CORRECT ANSWER-Requires tax withholding if seller is a foreigner
What can be determined by a location survey? - CORRECT ANSWER-
Whether or not the property's buildings encroach on neighboring land
