Arizona School of Real Estate &
Business Sales Exam 2025 Graded A+
1866 Civil Rights Act prohibits discrimination by: - ANSWER-Race
A borrower is required to put 10% down for the purchase of a property. The 10% down
would be considered: - ANSWER-Equity
A borrower would obtain funds for an FHA loan from: - ANSWER-Primary market
A broker acting as a property manager for an owner would consider his relationship to
be: - ANSWER-Fiduciary
A broker and an unlicensed buyer are looking at the same house. What must the broker
disclose? - ANSWER-He can buy the property if he discloses that he has a license
A broker does not disclose to the buyer that the seller has the HIV virus. Which of the
following is true: - ANSWER-Broker is protected by the 1988 fair housing act
A broker has a listing and the seller doesn't want the broker to disclose to the buyers
that the seller is going through a divorce. What should the broker do? - ANSWER-Keep
the information confidential
A broker is a property manager for an owner and collects the monthly rents. The owner
dies. What is the status of the property management agreement: - ANSWER-
Terminated upon death of owner
A broker lists a property for sale, but the broker has never advertised, shown the
property, or communicated to the seller in any way. The seller has a right to conclude
that the broker: - ANSWER-Has breached fiduciary and abandoned the listing
A broker lists the property with provisions of subagency. Another broker accepts the
term of the listing broker's offer to cooperate. The co-operating broker is acting as: -
ANSWER-Subagent to the seller
A broker relationship to a seller would most likely be: - ANSWER-Special
A broker tells a buyer that a drug bust occurred in the neighborhood. This statement
would be - ANSWER-Permissable
A broker- principal relationship is best described as: - ANSWER-Fiduciary
A broker, acting as a property manager, would be what type of agent? - ANSWER-
General
,A broker's duty to a third party would be: - ANSWER-Honesty
A building has a total economic life of 30 years. The building is now 6 years old and has
a depreciated value of $375,000. What was the value of the building when it was new? -
ANSWER-$468,750
A buyer assumes a loan and agrees to pay, Who is ultimately responsible: - ANSWER-
the seller
A buyer buys a leasehold interest in an apartment building. This interest is most likely: -
ANSWER-Stock in a co-op
A buyer buys a property for $180,000. The property has a First Deed of Trust for
$135,000 and a second Deed of Trust for $100,000. The buyer will assume the second,
but requires that the first be paid in full. What is the order of recordation? - ANSWER-
record the deed of reconveyance then the general warranty deed
A buyer is buying a business that includes real and personal property. The type of loan
the buyer would obtain is called: - ANSWER-package
A buyer pays 20% down and obtains a real estate mortgage. The buyers makes no
further payments. What clause would the lender now exercise? - ANSWER-Acceleration
A buyer sees a worn path across the property he is interested in buying. The buyer
should be concerned about: - ANSWER-easement by prescription
A buyer wishes to buy an older home in a low income area. This home is in need of
rehabilitation but has a good future due to growing economy. Which of the following
loans would best suit the buyer's needs? - ANSWER-FHA 203K
A buyer wishes to have the right to buy a property at a certain time and certain price.
This right is called: - ANSWER-Option to buy
A buyer's broker has a client interested in buying a parcel of land that is presently listed
with another brokerage. The buyers broker has a duty to: - ANSWER-Obtain the lowest
price for the buyer
A chronological summary of title is called: - ANSWER-abstract of title
A clause in a deed which specifies the degree of property conveyed is called: -
ANSWER-habendum
A clause in a lease that would allow adjustments of payments either up or down would
be called? - ANSWER-An escalator
,A co-op charges taxes based on: - ANSWER-Pro rata share
A co-op would be what type of ownership: - ANSWER-Stock
A commercial building is being rented to a business that serves the public. Which of the
following is true? - ANSWER-The building is subject to the Americans with Disabilities
Act
A commercial building is sold in a foreclosure for $100,000 less than the balance due
the lender. Which of the following is true? - ANSWER-The lender can obtain a
deficiency judgment against the borrower
A company is the only business in a small building. The building has handicapped
parking, a wide entrance, and three steps with rails. What must the business do to
comply with the ADA? - ANSWER-A ramp needs to be installed
A complex meets the 62 year age requirement and the housing for old person
exemption. A resident has a grandchild that would like to move into the complex. What
is the status of the grandchild: - ANSWER-The grandchild would not be allowed to stay
due to the 62 year old exemption
A condo owner fails to pay his property taxes. The taxes are levied against which of the
following: - ANSWER-The condo unit
A construction loan is generally considered a: - ANSWER-Short term- interim
A contract does not have a legal description, the contract would be: - ANSWER-
Unenforcable
A corporation wishes to raise new money without creating any new debt. They would be
advised to: - ANSWER-Sell stock
A court case that tested the constitutionality of the Federal Fair Housing laws was: -
ANSWER-Jones vs. Meyers
A covenant against encumbrances insured against all of the following except: -
ANSWER-zoning to restrict the use of the property
A deed does not guarantee against which of the following - ANSWER-zoning laws
A deed is in escrow and signed by the grantor who dies before close of escrow. What is
the status of the deed? - ANSWER-valid
A defeasance clause would be found in a: - ANSWER-mortgage
A demising clause would be found in which document? - ANSWER-lease
, A developer may not impose a deed restriction on which of the following? - ANSWER-
testifying at future zoning hearings
A disabled person rents a house and has an assistance animal. Which of the following
is true regarding a pet deposit - ANSWER-A pet deposit may not be charged
A due on sale clause is a(n): - ANSWER-non-assumability clause
A fee simple determinable estate is created on a property for a specific school. When
the school closes which of the following is true: - ANSWER-title reverts back to the
original grantor
A forcible entry and detainer would be an action taken by which of the following parties:
- ANSWER-lessor
A gift deed would best be described as: - ANSWER-love and affection
A gives a life estate to B for the life of C. B dies. Who has the estate? - ANSWER-B's
heirs
A gives to B for the life of C. This type of estate is called: - ANSWER-pur autre vie
A graduated lease would mean that: - ANSWER-Rents increase as tenants are
procured
A graduated payment loan would - ANSWER-increase in principal amount
A handicap person moves into an apartment and wants grab bars. He may do so at: -
ANSWER-The tenant's cost
A handicapped man rents an apartment that is not handicapped accessible. Which of
the following is true regarding that handicapped parking situation if the owner has three
reserved spaces near the units for $200 a month? - ANSWER-The owner is responsible
to provide the reserved space to the handicapped person when it becomes available at
no extra charge
A handicapped person is leasing a house that requires modification. Which of the
following is true about the modification: - ANSWER-The lessor can require the lessee to
reasonably restore the property at the end of the lease
A handwritten will is called - ANSWER-unenforceable
A holdover tenant would have a(n): - ANSWER-estate at sufferance
Business Sales Exam 2025 Graded A+
1866 Civil Rights Act prohibits discrimination by: - ANSWER-Race
A borrower is required to put 10% down for the purchase of a property. The 10% down
would be considered: - ANSWER-Equity
A borrower would obtain funds for an FHA loan from: - ANSWER-Primary market
A broker acting as a property manager for an owner would consider his relationship to
be: - ANSWER-Fiduciary
A broker and an unlicensed buyer are looking at the same house. What must the broker
disclose? - ANSWER-He can buy the property if he discloses that he has a license
A broker does not disclose to the buyer that the seller has the HIV virus. Which of the
following is true: - ANSWER-Broker is protected by the 1988 fair housing act
A broker has a listing and the seller doesn't want the broker to disclose to the buyers
that the seller is going through a divorce. What should the broker do? - ANSWER-Keep
the information confidential
A broker is a property manager for an owner and collects the monthly rents. The owner
dies. What is the status of the property management agreement: - ANSWER-
Terminated upon death of owner
A broker lists a property for sale, but the broker has never advertised, shown the
property, or communicated to the seller in any way. The seller has a right to conclude
that the broker: - ANSWER-Has breached fiduciary and abandoned the listing
A broker lists the property with provisions of subagency. Another broker accepts the
term of the listing broker's offer to cooperate. The co-operating broker is acting as: -
ANSWER-Subagent to the seller
A broker relationship to a seller would most likely be: - ANSWER-Special
A broker tells a buyer that a drug bust occurred in the neighborhood. This statement
would be - ANSWER-Permissable
A broker- principal relationship is best described as: - ANSWER-Fiduciary
A broker, acting as a property manager, would be what type of agent? - ANSWER-
General
,A broker's duty to a third party would be: - ANSWER-Honesty
A building has a total economic life of 30 years. The building is now 6 years old and has
a depreciated value of $375,000. What was the value of the building when it was new? -
ANSWER-$468,750
A buyer assumes a loan and agrees to pay, Who is ultimately responsible: - ANSWER-
the seller
A buyer buys a leasehold interest in an apartment building. This interest is most likely: -
ANSWER-Stock in a co-op
A buyer buys a property for $180,000. The property has a First Deed of Trust for
$135,000 and a second Deed of Trust for $100,000. The buyer will assume the second,
but requires that the first be paid in full. What is the order of recordation? - ANSWER-
record the deed of reconveyance then the general warranty deed
A buyer is buying a business that includes real and personal property. The type of loan
the buyer would obtain is called: - ANSWER-package
A buyer pays 20% down and obtains a real estate mortgage. The buyers makes no
further payments. What clause would the lender now exercise? - ANSWER-Acceleration
A buyer sees a worn path across the property he is interested in buying. The buyer
should be concerned about: - ANSWER-easement by prescription
A buyer wishes to buy an older home in a low income area. This home is in need of
rehabilitation but has a good future due to growing economy. Which of the following
loans would best suit the buyer's needs? - ANSWER-FHA 203K
A buyer wishes to have the right to buy a property at a certain time and certain price.
This right is called: - ANSWER-Option to buy
A buyer's broker has a client interested in buying a parcel of land that is presently listed
with another brokerage. The buyers broker has a duty to: - ANSWER-Obtain the lowest
price for the buyer
A chronological summary of title is called: - ANSWER-abstract of title
A clause in a deed which specifies the degree of property conveyed is called: -
ANSWER-habendum
A clause in a lease that would allow adjustments of payments either up or down would
be called? - ANSWER-An escalator
,A co-op charges taxes based on: - ANSWER-Pro rata share
A co-op would be what type of ownership: - ANSWER-Stock
A commercial building is being rented to a business that serves the public. Which of the
following is true? - ANSWER-The building is subject to the Americans with Disabilities
Act
A commercial building is sold in a foreclosure for $100,000 less than the balance due
the lender. Which of the following is true? - ANSWER-The lender can obtain a
deficiency judgment against the borrower
A company is the only business in a small building. The building has handicapped
parking, a wide entrance, and three steps with rails. What must the business do to
comply with the ADA? - ANSWER-A ramp needs to be installed
A complex meets the 62 year age requirement and the housing for old person
exemption. A resident has a grandchild that would like to move into the complex. What
is the status of the grandchild: - ANSWER-The grandchild would not be allowed to stay
due to the 62 year old exemption
A condo owner fails to pay his property taxes. The taxes are levied against which of the
following: - ANSWER-The condo unit
A construction loan is generally considered a: - ANSWER-Short term- interim
A contract does not have a legal description, the contract would be: - ANSWER-
Unenforcable
A corporation wishes to raise new money without creating any new debt. They would be
advised to: - ANSWER-Sell stock
A court case that tested the constitutionality of the Federal Fair Housing laws was: -
ANSWER-Jones vs. Meyers
A covenant against encumbrances insured against all of the following except: -
ANSWER-zoning to restrict the use of the property
A deed does not guarantee against which of the following - ANSWER-zoning laws
A deed is in escrow and signed by the grantor who dies before close of escrow. What is
the status of the deed? - ANSWER-valid
A defeasance clause would be found in a: - ANSWER-mortgage
A demising clause would be found in which document? - ANSWER-lease
, A developer may not impose a deed restriction on which of the following? - ANSWER-
testifying at future zoning hearings
A disabled person rents a house and has an assistance animal. Which of the following
is true regarding a pet deposit - ANSWER-A pet deposit may not be charged
A due on sale clause is a(n): - ANSWER-non-assumability clause
A fee simple determinable estate is created on a property for a specific school. When
the school closes which of the following is true: - ANSWER-title reverts back to the
original grantor
A forcible entry and detainer would be an action taken by which of the following parties:
- ANSWER-lessor
A gift deed would best be described as: - ANSWER-love and affection
A gives a life estate to B for the life of C. B dies. Who has the estate? - ANSWER-B's
heirs
A gives to B for the life of C. This type of estate is called: - ANSWER-pur autre vie
A graduated lease would mean that: - ANSWER-Rents increase as tenants are
procured
A graduated payment loan would - ANSWER-increase in principal amount
A handicap person moves into an apartment and wants grab bars. He may do so at: -
ANSWER-The tenant's cost
A handicapped man rents an apartment that is not handicapped accessible. Which of
the following is true regarding that handicapped parking situation if the owner has three
reserved spaces near the units for $200 a month? - ANSWER-The owner is responsible
to provide the reserved space to the handicapped person when it becomes available at
no extra charge
A handicapped person is leasing a house that requires modification. Which of the
following is true about the modification: - ANSWER-The lessor can require the lessee to
reasonably restore the property at the end of the lease
A handwritten will is called - ANSWER-unenforceable
A holdover tenant would have a(n): - ANSWER-estate at sufferance
