ARIZONA STATE EXAM 2024-2025 ACTUAL EXAM 150
QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS)
|ALREADY GRADED A+
If a property is not bid at a tax lien sale A. The excess rebate goes to the property owner B. Anyone can
later buy the tax lien from the Treasurer C. All other liens are terminated D. The property can only be
sold next February - ANSWER-Anyone can later buy the tax lien from the Treasurer
.In Arizona real estate taxes are levied: A. Twice a year B. Once a year C. Every five years D. Quarterly -
ANSWER-Once a year
Once a homeowner's association establishes the assessments, they are paid: A. Annually based on costs
B. Quarterly based on costs C. Annually based on the homeowner's association's budget D. Quarterly
based on the developer's budget - ANSWER-Annually based on the homeowner's association's budget
At the end of the three-year tax redemption period, a person who holds the certificate of purchase: A.
Must foreclose B. May extend the period C. Will automatically obtain title D. The period is automatically
extended - ANSWER-May extend the period
A d valorem would apply to which of the following: A. Income tax B. Rent C. Property taxes D. Net
income - ANSWER-Property taxes
The redemption period in a property tax foreclosure would be how long after the certificate of purchase
has been issued: A. 1 year B. 2 years C. 3 years D. 90 days - ANSWER-3 years
Of the following liens: delinquent taxes since recorded 2002, IRS lien 2004, mortgage recorded in 2006,
which has second priority? A. IRS lien B. 2nd year property taxes C. Mortgage D. 3 year's property tax -
ANSWER-Mortgage
What action will void a homestead? A. Declaring bankruptcy B. Filing joint tenancy C. Declaring primary
residence in another state D. Death of a spouse - ANSWER-Declaring primary residence in another state
A property that is in foreclosure has had a valid homestead recorded. What is the status of the
foreclosure? A. Homestead will protect the equity B. Homestead will delay the foreclosure C.
Foreclosure will continue as normal D. Lender may only obtain the amount over the homestead limit -
,ANSWER-Foreclosure will continue as normal
Which of the following would NOT apply to community property with right of survivorship? A. Step-up in
basis B. Avoiding probate C. Willing to a third party D. Can only be held by husband and wife -
ANSWERWilling to a third party
All of the following deeds will convey title EXCEPT: A. General Warranty B. Special Warranty C. Quit
Claim D. Disclaimer - ANSWER-Disclaimer
Which of the following would NOT appear a on public report? A. Utilities B. Title condition C. Market
value D. Legal description - ANSWER-Market value
When a lot is sold outside of a subdivision, in the which of the following must appear deed? A. Zoning
ordinances B. Square footage C. Water rights exists D. No ingress or egress - ANSWER-exists No ingress
or egress
What is the purpose of an affidavit of value? A. Assist the County Assessor in determining property
values B. To meet IRS requirements C. To assist in determining capital gains tax D. To assist the State
Treasurer in sales tax revenue - ANSWER-affidavit Assist the County Assessor in determining property
values
In Arizona, you may obtain title under which of the following? A. Easement by prescription B. Adverse
possession C. License action D. Disclaimer deed - ANSWER-Adverse possession
Which of the following coverage would NOT be included in an owner's policy of title insurance? A.
Forged documents B. Unknown heirs C. Parties in adverse possession D. Recorded mechanics liens -
ANSWER-Parties in adverse possession
An owner's title policy would protect a buyer against which of the following? A. Encroachments B.
Survey error C. Unrecorded easements D. Forgery - ANSWER-Forgery
A deed is acknowledged in Arizona to: A. Show the intent of the grantee B. Meet the recordation
requirements C. Meet state law D. Meet the Statute of Frauds - ANSWER-Meet state law
, Who signs a deed of conveyance? A. Vendee B. Grantor C. Beneficiary D. Trustee - ANSWER-Grantor
At what point does recordation take place? A. Docket and number are assigned page B. At close of
escrow date C. The date the document was signed D. The date the document was notarized -
ANSWERDocket and number are assigned page
Which of the following would NOT be involved in a Deed of Trust? A. Trustor B. Trustee C. Beneficiary D.
Vendor - ANSWER-Vendor
A defeasance clause in a Deed of Trust allows for: A. The trustee to foreclose B. Cancellation of the
lender's claim uporn full note payment C. Lender's protection against forgery D. Non-assumability of a
loan - ANSWER-Cancellation of the lender's claim uporn
If one was to research the county public records, one would always find: A. Loans on the property B.
Adverse possession C. Easements D. Mechanic's liens - ANSWER-Mechanic's liens
Property taxes are what type of lien? A. General B. Specific C. Inchoate D. Incorporeal - ANSWER-Specific
(A-4) Which of the following could NOT be part of a Deed of Trust? A. Judicial foreclosure B. Non-judicial
foreclosure C. Statutory forfeiture period D. Reinstatement period - ANSWER-Statutory forfeiture period
An Assignment of Rents Clause is for the benefit of the: A. Trustor B. Beneficiary C. Trustee D. Mortgagor
- ANSWER-Beneficiary
A mechanic's lien may be filed by: A. The utility company B. Construction employee C. The auto
mechanic D. The lumber supplier - ANSWER-The lumber supplier
If have been given notice of a possible you future lien, this lien is probably for: A. Recorded judgment B.
Mechanic's lien C. Property insurance D. Purchase money mortgage - ANSWER-Mechanic's lien
A general contractor does work for a tenant in space. a commercial leased The tenant fails to the
contractor. Which of the following is pay true regarding the mechanic's lien? A. The contractor may not
file a lien B. The contractor will lien the entire building C. The contractor can only lien the leasehold
QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS)
|ALREADY GRADED A+
If a property is not bid at a tax lien sale A. The excess rebate goes to the property owner B. Anyone can
later buy the tax lien from the Treasurer C. All other liens are terminated D. The property can only be
sold next February - ANSWER-Anyone can later buy the tax lien from the Treasurer
.In Arizona real estate taxes are levied: A. Twice a year B. Once a year C. Every five years D. Quarterly -
ANSWER-Once a year
Once a homeowner's association establishes the assessments, they are paid: A. Annually based on costs
B. Quarterly based on costs C. Annually based on the homeowner's association's budget D. Quarterly
based on the developer's budget - ANSWER-Annually based on the homeowner's association's budget
At the end of the three-year tax redemption period, a person who holds the certificate of purchase: A.
Must foreclose B. May extend the period C. Will automatically obtain title D. The period is automatically
extended - ANSWER-May extend the period
A d valorem would apply to which of the following: A. Income tax B. Rent C. Property taxes D. Net
income - ANSWER-Property taxes
The redemption period in a property tax foreclosure would be how long after the certificate of purchase
has been issued: A. 1 year B. 2 years C. 3 years D. 90 days - ANSWER-3 years
Of the following liens: delinquent taxes since recorded 2002, IRS lien 2004, mortgage recorded in 2006,
which has second priority? A. IRS lien B. 2nd year property taxes C. Mortgage D. 3 year's property tax -
ANSWER-Mortgage
What action will void a homestead? A. Declaring bankruptcy B. Filing joint tenancy C. Declaring primary
residence in another state D. Death of a spouse - ANSWER-Declaring primary residence in another state
A property that is in foreclosure has had a valid homestead recorded. What is the status of the
foreclosure? A. Homestead will protect the equity B. Homestead will delay the foreclosure C.
Foreclosure will continue as normal D. Lender may only obtain the amount over the homestead limit -
,ANSWER-Foreclosure will continue as normal
Which of the following would NOT apply to community property with right of survivorship? A. Step-up in
basis B. Avoiding probate C. Willing to a third party D. Can only be held by husband and wife -
ANSWERWilling to a third party
All of the following deeds will convey title EXCEPT: A. General Warranty B. Special Warranty C. Quit
Claim D. Disclaimer - ANSWER-Disclaimer
Which of the following would NOT appear a on public report? A. Utilities B. Title condition C. Market
value D. Legal description - ANSWER-Market value
When a lot is sold outside of a subdivision, in the which of the following must appear deed? A. Zoning
ordinances B. Square footage C. Water rights exists D. No ingress or egress - ANSWER-exists No ingress
or egress
What is the purpose of an affidavit of value? A. Assist the County Assessor in determining property
values B. To meet IRS requirements C. To assist in determining capital gains tax D. To assist the State
Treasurer in sales tax revenue - ANSWER-affidavit Assist the County Assessor in determining property
values
In Arizona, you may obtain title under which of the following? A. Easement by prescription B. Adverse
possession C. License action D. Disclaimer deed - ANSWER-Adverse possession
Which of the following coverage would NOT be included in an owner's policy of title insurance? A.
Forged documents B. Unknown heirs C. Parties in adverse possession D. Recorded mechanics liens -
ANSWER-Parties in adverse possession
An owner's title policy would protect a buyer against which of the following? A. Encroachments B.
Survey error C. Unrecorded easements D. Forgery - ANSWER-Forgery
A deed is acknowledged in Arizona to: A. Show the intent of the grantee B. Meet the recordation
requirements C. Meet state law D. Meet the Statute of Frauds - ANSWER-Meet state law
, Who signs a deed of conveyance? A. Vendee B. Grantor C. Beneficiary D. Trustee - ANSWER-Grantor
At what point does recordation take place? A. Docket and number are assigned page B. At close of
escrow date C. The date the document was signed D. The date the document was notarized -
ANSWERDocket and number are assigned page
Which of the following would NOT be involved in a Deed of Trust? A. Trustor B. Trustee C. Beneficiary D.
Vendor - ANSWER-Vendor
A defeasance clause in a Deed of Trust allows for: A. The trustee to foreclose B. Cancellation of the
lender's claim uporn full note payment C. Lender's protection against forgery D. Non-assumability of a
loan - ANSWER-Cancellation of the lender's claim uporn
If one was to research the county public records, one would always find: A. Loans on the property B.
Adverse possession C. Easements D. Mechanic's liens - ANSWER-Mechanic's liens
Property taxes are what type of lien? A. General B. Specific C. Inchoate D. Incorporeal - ANSWER-Specific
(A-4) Which of the following could NOT be part of a Deed of Trust? A. Judicial foreclosure B. Non-judicial
foreclosure C. Statutory forfeiture period D. Reinstatement period - ANSWER-Statutory forfeiture period
An Assignment of Rents Clause is for the benefit of the: A. Trustor B. Beneficiary C. Trustee D. Mortgagor
- ANSWER-Beneficiary
A mechanic's lien may be filed by: A. The utility company B. Construction employee C. The auto
mechanic D. The lumber supplier - ANSWER-The lumber supplier
If have been given notice of a possible you future lien, this lien is probably for: A. Recorded judgment B.
Mechanic's lien C. Property insurance D. Purchase money mortgage - ANSWER-Mechanic's lien
A general contractor does work for a tenant in space. a commercial leased The tenant fails to the
contractor. Which of the following is pay true regarding the mechanic's lien? A. The contractor may not
file a lien B. The contractor will lien the entire building C. The contractor can only lien the leasehold
