Arizona Real Estate Practice Questions
Exam
The priority of a lien is, in the absence of fraud, created as of the date it was: - Recorded
"Gross income" best describes: - Income before expenses
"Net income" best describes: - Income after expenses
Quiet Enjoyment" in a lease means: - The lease will not be terminated if the building is sold
"The rate" refers to: - The rate of return used by investors
1 section equals - 1 square mile
1 square mile equals - 640 acres
1 square yard equals - 9 sqft
1760 yards equals - 1 mile
1974 added what protected classes - sex/gender
A "mutual fund" for pooling investor money for investment in real estate: - Real Estate Investment
Trust
A body of federal and state laws designed to prohibit and regulate deceptive advertising and sales
practices are known as ____________ laws. - Consumer protection
A borrower applying for a FHA loan would be required to: - Pay a mortgage insurance premium
,A borrower is required to put 10% down for the purchase of property would be considered -
equity
A borrower pays off his loan. However, the lender refuses to cancel the mortgage. Which of the following
clauses of a mortgage has the lender violated? - Defeasance clause
A brief summary of a property's history, listing all recorded documents that may affect the title, is a/an: -
Abstract of title
A broker closed a transaction on realty and then found out that the buyer was under 18 years of age. The
sale was: - voidable
A buyer and a seller were separated in negotiations by only five hundred dollars. The listing and sales
agent agree to reduce the commission by that amount to make the deal. Each agent gives their clients
two hundred and fifty dollars after closing. What unethical practices exist here? - Undisclosed
inducement and dividing commissions with non licensees
A buyer is obtaining a new loan to purchase property. The buyer is most likely to accept title with which
of the following liens remaining unpaid as of close of escrow: - Property taxes for the current year
for the property being sold
A buyer with badly damaged credit would be most likely to use: - FHA
A buyer's agent is paid a percentage of the gross sales price. When negotiating a contract, the agent
should: - Negotiate the lowest possible price for the client
A buyers initial cost for real estate purchase for determining gain, loss, or depreciation on the sale of an
assest - basis
A CAP rate is based on what type of income? - Net
,A closing conducted by a disinterested third party best describes a/an: - Escrow closing
A closing with all parties present is a/an: - Roundtable closing
A commercial tenant installs a pizza oven in his new restaurant. The pizza oven would be deemed a/an: -
chattel
A concept preventing the assertion of a right or claim because of an undue delay - Laches
A conditional use permit allows: - Help for property owners with special needs
A condominium and cooperative would be the same in that: - Both pay annual assessments
A contract based on an illegal consideration is: - void
A conveyance of title "upon the condition that the land shall not be used for the sale of intoxicating
beverages or liquors", which does not automatically terminate creates: - A conditional estate
A deed of trust is signed by the: - Trustor
A defeasance clause is in a mortgage for the protection of the: - Borrower
A defeasance clause would apply to: - Deed of trust
A definition of involuntary alienation is: - Title to property can be conveyed by action of the court
A devise is an example of________ conveyance - testamentary
A factor which does not contribute to the value of real estate is: - Cost
, A few real estate brokers from different companies were discussing the possibility of establishing an
office policy to list for sale all raw land at a 10% commission. Which of the following is true? - The
brokers are in violation of the Sherman Anti-Trust laws.
A freehold estate which is inheritable, freely transferable, and is the highest estate and the most
extensive interest in real property may be referred to as a: - Fee simple absolute
A grandfathered water right that may be sold separate from the land is called - type 2
A group of local real estate brokers are having their annual meeting. What topic should be avoided in
their conversation? - Discussion of their personal commission schedules
A home sold for $275,000 including a 5% transfer tax. What is the actual value of the home? -
100%+5%=105%
$275,000 divide by 105%=
($261,904 actual value of home)
A home sold property for $162,150, which is 15% more than he paid for it. How much did he pay for it? -
100%+15%=115%
$162,150 divide by 115%=
($141,000 original purchase price)
A homeowner sues a real estate agent for 6000. which court is this heard in - justice court
A homestead exemption: - Protects the claimant against personal judgments up to the amount of
this exemption
A homestead may be terminated for all of the following reasons EXCEPT: - Death of a spouse
Exam
The priority of a lien is, in the absence of fraud, created as of the date it was: - Recorded
"Gross income" best describes: - Income before expenses
"Net income" best describes: - Income after expenses
Quiet Enjoyment" in a lease means: - The lease will not be terminated if the building is sold
"The rate" refers to: - The rate of return used by investors
1 section equals - 1 square mile
1 square mile equals - 640 acres
1 square yard equals - 9 sqft
1760 yards equals - 1 mile
1974 added what protected classes - sex/gender
A "mutual fund" for pooling investor money for investment in real estate: - Real Estate Investment
Trust
A body of federal and state laws designed to prohibit and regulate deceptive advertising and sales
practices are known as ____________ laws. - Consumer protection
A borrower applying for a FHA loan would be required to: - Pay a mortgage insurance premium
,A borrower is required to put 10% down for the purchase of property would be considered -
equity
A borrower pays off his loan. However, the lender refuses to cancel the mortgage. Which of the following
clauses of a mortgage has the lender violated? - Defeasance clause
A brief summary of a property's history, listing all recorded documents that may affect the title, is a/an: -
Abstract of title
A broker closed a transaction on realty and then found out that the buyer was under 18 years of age. The
sale was: - voidable
A buyer and a seller were separated in negotiations by only five hundred dollars. The listing and sales
agent agree to reduce the commission by that amount to make the deal. Each agent gives their clients
two hundred and fifty dollars after closing. What unethical practices exist here? - Undisclosed
inducement and dividing commissions with non licensees
A buyer is obtaining a new loan to purchase property. The buyer is most likely to accept title with which
of the following liens remaining unpaid as of close of escrow: - Property taxes for the current year
for the property being sold
A buyer with badly damaged credit would be most likely to use: - FHA
A buyer's agent is paid a percentage of the gross sales price. When negotiating a contract, the agent
should: - Negotiate the lowest possible price for the client
A buyers initial cost for real estate purchase for determining gain, loss, or depreciation on the sale of an
assest - basis
A CAP rate is based on what type of income? - Net
,A closing conducted by a disinterested third party best describes a/an: - Escrow closing
A closing with all parties present is a/an: - Roundtable closing
A commercial tenant installs a pizza oven in his new restaurant. The pizza oven would be deemed a/an: -
chattel
A concept preventing the assertion of a right or claim because of an undue delay - Laches
A conditional use permit allows: - Help for property owners with special needs
A condominium and cooperative would be the same in that: - Both pay annual assessments
A contract based on an illegal consideration is: - void
A conveyance of title "upon the condition that the land shall not be used for the sale of intoxicating
beverages or liquors", which does not automatically terminate creates: - A conditional estate
A deed of trust is signed by the: - Trustor
A defeasance clause is in a mortgage for the protection of the: - Borrower
A defeasance clause would apply to: - Deed of trust
A definition of involuntary alienation is: - Title to property can be conveyed by action of the court
A devise is an example of________ conveyance - testamentary
A factor which does not contribute to the value of real estate is: - Cost
, A few real estate brokers from different companies were discussing the possibility of establishing an
office policy to list for sale all raw land at a 10% commission. Which of the following is true? - The
brokers are in violation of the Sherman Anti-Trust laws.
A freehold estate which is inheritable, freely transferable, and is the highest estate and the most
extensive interest in real property may be referred to as a: - Fee simple absolute
A grandfathered water right that may be sold separate from the land is called - type 2
A group of local real estate brokers are having their annual meeting. What topic should be avoided in
their conversation? - Discussion of their personal commission schedules
A home sold for $275,000 including a 5% transfer tax. What is the actual value of the home? -
100%+5%=105%
$275,000 divide by 105%=
($261,904 actual value of home)
A home sold property for $162,150, which is 15% more than he paid for it. How much did he pay for it? -
100%+15%=115%
$162,150 divide by 115%=
($141,000 original purchase price)
A homeowner sues a real estate agent for 6000. which court is this heard in - justice court
A homestead exemption: - Protects the claimant against personal judgments up to the amount of
this exemption
A homestead may be terminated for all of the following reasons EXCEPT: - Death of a spouse
