ARIZONA REAL ESTATE EXAM STUDY GUIDE QUESTIONS WITH ANSW
QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔A law suit pending is called __________ - ✔✔Les Pendens
✔✔Forfeiture based on buyers equity is __________ - ✔✔0%-20% equity 30 days
20%-30% equity 60 days
30%-50% equity 120 days
50% and more 9 months
✔✔Economic Life for Residential is __________ years
Economic Life for Commercial is __________ years - ✔✔27 1/2 for Residential
39 for Commercial
✔✔The most significant Investing Principle is __________ - ✔✔Diversification
✔✔Taxable profit earned when selling a capital asset is called __________ - ✔✔Capital
Gains
✔✔_________ is the release of liability - ✔✔Novation
✔✔_________ lien is a mortgage, car loan, etc. - ✔✔Specific Lien
✔✔_________ lien is against everything you have (IRS) - ✔✔General Lien
✔✔_________ payments are amortized loan payments. (Principle + Interest) - ✔✔Level
Payments
✔✔_________ (term or straight) payments is paying only the interest-Principle stays the
same - ✔✔Interest Only
✔✔_________ payments is P.I.T.I of which T.I is 1/2 months annual Real Estate Taxes
ans Insurance - ✔✔Budget
✔✔_________ is when the Trustee initiates proceedings, which authorizes the sale of
the property - ✔✔Power of Sale
✔✔"Due to Sale" is also known as _________ - ✔✔Alienation
✔✔_________ ensures that sellers & buyers in a Real Estate Transaction have full
knowledge of all settlement costs. - ✔✔Real Estate Settlement & Procedures Act
(RESPA)
, ✔✔The 4 types of assets in Capital Gains are _________ - ✔✔Land, Income producing
Real Estate (Including Primary Residence), Business Equipment and Stocks and Bonds
✔✔Basis (Buy Price)
+Closing Costs to buy
+Capital Improvements
-Depreciation
=_________ - ✔✔Adjusted Basis
✔✔Sales Price
-Closing Cost to Sell
-Commissions
=_________ - ✔✔Adjusted Sales Price
✔✔Adjusted Sales Price
-Adjusted Basis
=Taxable Gain which is_________
x Tax Rate - ✔✔Short Term (owning a property less than a year
Long Term (owning a property for 1 year or more) 15%
You can deduct $3000 as a tax write off
You cant take loss on primary residence
✔✔Basis
+Closing
+Improvements
NO DEPRECIATION
_________ - ✔✔Computing Gain
✔✔Holding period of computing gain is _________ - ✔✔2 of the last 5 years (lived in)
✔✔Exclusions for computing gain
Single _________
Married _________ - ✔✔Single 250,000 of gain
Married 500,000 of gain
✔✔_________ is to clarify how & when capital gains taxes are paid when some or all of
the purchase price is carried back - ✔✔Installment Sale
✔✔_________ is exchange (trade) property and defer taxes to later - ✔✔Tax Deferred
Exchange
(Types of Properties:Income producing property for another income producing property)
✔✔UFMIP (Upfront Mortgage Insurance Premium is paid at _________ (FHA LOAN) -
✔✔Closing
QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔A law suit pending is called __________ - ✔✔Les Pendens
✔✔Forfeiture based on buyers equity is __________ - ✔✔0%-20% equity 30 days
20%-30% equity 60 days
30%-50% equity 120 days
50% and more 9 months
✔✔Economic Life for Residential is __________ years
Economic Life for Commercial is __________ years - ✔✔27 1/2 for Residential
39 for Commercial
✔✔The most significant Investing Principle is __________ - ✔✔Diversification
✔✔Taxable profit earned when selling a capital asset is called __________ - ✔✔Capital
Gains
✔✔_________ is the release of liability - ✔✔Novation
✔✔_________ lien is a mortgage, car loan, etc. - ✔✔Specific Lien
✔✔_________ lien is against everything you have (IRS) - ✔✔General Lien
✔✔_________ payments are amortized loan payments. (Principle + Interest) - ✔✔Level
Payments
✔✔_________ (term or straight) payments is paying only the interest-Principle stays the
same - ✔✔Interest Only
✔✔_________ payments is P.I.T.I of which T.I is 1/2 months annual Real Estate Taxes
ans Insurance - ✔✔Budget
✔✔_________ is when the Trustee initiates proceedings, which authorizes the sale of
the property - ✔✔Power of Sale
✔✔"Due to Sale" is also known as _________ - ✔✔Alienation
✔✔_________ ensures that sellers & buyers in a Real Estate Transaction have full
knowledge of all settlement costs. - ✔✔Real Estate Settlement & Procedures Act
(RESPA)
, ✔✔The 4 types of assets in Capital Gains are _________ - ✔✔Land, Income producing
Real Estate (Including Primary Residence), Business Equipment and Stocks and Bonds
✔✔Basis (Buy Price)
+Closing Costs to buy
+Capital Improvements
-Depreciation
=_________ - ✔✔Adjusted Basis
✔✔Sales Price
-Closing Cost to Sell
-Commissions
=_________ - ✔✔Adjusted Sales Price
✔✔Adjusted Sales Price
-Adjusted Basis
=Taxable Gain which is_________
x Tax Rate - ✔✔Short Term (owning a property less than a year
Long Term (owning a property for 1 year or more) 15%
You can deduct $3000 as a tax write off
You cant take loss on primary residence
✔✔Basis
+Closing
+Improvements
NO DEPRECIATION
_________ - ✔✔Computing Gain
✔✔Holding period of computing gain is _________ - ✔✔2 of the last 5 years (lived in)
✔✔Exclusions for computing gain
Single _________
Married _________ - ✔✔Single 250,000 of gain
Married 500,000 of gain
✔✔_________ is to clarify how & when capital gains taxes are paid when some or all of
the purchase price is carried back - ✔✔Installment Sale
✔✔_________ is exchange (trade) property and defer taxes to later - ✔✔Tax Deferred
Exchange
(Types of Properties:Income producing property for another income producing property)
✔✔UFMIP (Upfront Mortgage Insurance Premium is paid at _________ (FHA LOAN) -
✔✔Closing
