AZ CE SHOP PRACTICE TEST EXAM
QUESTIONS WITH CORRECT ANSWERS
Which of these situations represents a unilateral contract?
-Cain sells Trent his bike
-Maurice promises Shelton $100 if Shelton will sell his painting. Shelton agrees, but
Maurice doesn't pay Shelton
-Nathan and Sue exchange vows at their wedding
-Sherry promises to give Brent a ride home from work, and then doesn't show up -
Answer-Sherry promises to give Brent a ride home from work, and then doesn't show up
Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out
of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in
the property divided? - Answer-Barbie owns two thirds and Midge owns one third
Individual property managers may be employed by an owner and manage ________
-A single property
-Multiple properties
-Properties within a single state
-Several connected properties - Answer-A single property
A lender requests an appraisal of a property under foreclosure. What type of value is
the lender most likely to be interested in?
-Going concern value
-Insured value
-Investment value
-Liquidation value - Answer-Liquidation value
What is a real estate employment agreement in Arizona?
-An agreement between a licensee and the licensee's broker
-An agreement between two licensee's working with the same client
-A term for property management agreements
-A term for the listing agreement or buyer agency agreement - Answer-An term for the
listing agreement or buyer agency agreement
Homeowners Annette and Jeff are suing contractor Daniel for breach of contract. Where
might they be able to find an affidavit of suspended license to use as prima facie
evidence in the court proceedings?
-Arizona Administrative Office of the Courts
-Arizona Department of Real Estate
- Arizona Registrar of Contractors - Answer-Arizona Registrar of Contractors
Where can a party reviewing a title commitment find basic details about the transaction?
-Schedule A
,-Schedule B-1
-Schedule B-2
-This is not contained in the title commitment - Answer-Schedule A
Who originates their own loans?
-Mortgage bankers
-Mortgage brokers
-Real estate brokers
-Real estate licensee - Answer-Mortgage bankers
Sunshine Surveyors Inc. created a lot and block survey for a new residential
development, Happy Acres. The first thing the surveyor did when he surveyed the new
neighborhood was to reference what type of description?
-Map
-Metes and bound description
-Monument
-Plat book - Answer-Metes and bounds description
Forecasting the income and expenses that we can reasonably expect to bring in and
pay out over a short term results in a budget that's every property managers dream.
That budget is __________
-A capital reserve
-An expense
-Historical
-Stabilized - Answer-Stabilized
One member of the Arizona Real Estate Advisory Board is required to be a ________.
-Commercial broker who is primarily a property sub divider
-Licensed broker who has been engaged in multi family residential rental brokerage
-Member of the general public
-Political independent - Answer-Licensed broker who has been engaged in multi family
residential rental brokerage
Which of the following is one of the desired outcomes of Freddie Mac's activities?
-Decrease liquidity in the U.S. housing market
-Increase interest rates on high dollar loans
-Increase overall leverage in the U.S. housing market
-Provide stability in the U.S. housing market - Answer-Provide stability in the U.S.
housing market
Buyers of timeshares in Arizona may cancel their purchases within how many days of
signing the contract? - Answer-10 days
Which act provides consumers with remedies if they become victims of discrimination in
the sale, rental, or financing of housing?
-Civil Rights Act of 1866
,-Equal Credit Opportunity Act of 1974
-Fair Housing Amendments Act of 1988
-Housing and Community Development Act of 1974 - Answer-Fair Housing
Amendments Act of 1988
In Arizona, how long does a seller who resides in a planned community or an HOA have
to give the buyer notification of the association rules? - Answer-10 days after notification
of pending sale
In Arizona, what is the maximum deposit a subdivider can charge per plot in a future
subdivision? - Answer-$5,000
Stan was the victim of domestic violence at the hands of his live in girlfriend, Staci.
When the police arrived, they arrested Staci and took her to county jail. The next
morning, Stan obtained a protective order. A week later, Stan decided that her couldn't
stay in his apartment anymore because of bad memories. He informed his landlord in
writing and provided a copy of the protective order. Did Stan's landlord have to allow
him to terminate his lease early under Arizona law? - Answer-Yes
Janice wanted to sell her townhome, and her neighbor was considering buying it. She
wanted to put it on the market while she waited to find out if her neighbor was going to
buy. In order to receive the best possible representation but avoid paying a commission
if her neighbor buys the property, which type of listing agreement would best suit
Janice's needs?
-Exclusive agency
-Exclusive right to sell
-Net
-Open - Answer-Exclusive agency
When Ray receives a notice of trustee's sale, he knows his property is in foreclosure
and he needs to hustle to find a way to reinstate his loan. He hasn't got much time,
though Arizona law requires a minimum of ______ between the date the notice is
recorded and the date of the sale. - Answer-90 days
Why might a property owner ask you to prepare a report showing the trend in rental
delinquency rates?
-To assess the adequacy of tenant income screening processes
-To assess your ability to manage tenant relations
-To determine if rental rates are too high compared to your competitors rates
-To forecast the amount of effort that will be required to collect the late rents - Answer-
To assess the adequacy of tenant income screening processes
What's the term for someone who's been given authority to act on behalf of someone
else?
-Agent
-Client
, -Mortgage lender
-Trustor - Answer-Agent
Over how many years is a commercial property depreciated?
-27.5 years
-29 years
-39 years
-40 years - Answer-39 years
Angelique, a foreign investor, is getting ready to sell her urban condo. What percentage
of withholding of the sales price will FIRPTA require? - Answer-15%
Which act states that communities and facilities that meet certain criteria for providing
housing to older persons are legally exempt from familial status discrimination?
-Fair Housing Amendments Act of 1988
-Federal Fair Housing Act of 1968
-Housing and Community Development Act of 1974
-Housing for Older Persons Act of 1995 - Answer-Housing for Older Persons Act of
1995
Which of the following is the best example of the economic principal of leveraging, as it
applies to a real estate transaction?
-Completing the loan process
-Making a down payment
-Making the loan payments
-Purchasing title insurance - Answer-Making a down payment
Buying at one price and immediately trying to sell it at a higher price is known as
_______.
-Exchanging
-Flipping
-Switching
-Trading - Answer-Flipping
Who is responsible for requesting a loan payoff statement before closing?
-The buyer
-The seller
-The lender
-The title insurance representative - Answer-The seller
Which ownership type is defined by four unities: time, title, interest, and possession?
-Freehold estate
-Joint tenancy
-Tenancy by the entirety
-Tenancy in common - Answer-Joint tenancy
QUESTIONS WITH CORRECT ANSWERS
Which of these situations represents a unilateral contract?
-Cain sells Trent his bike
-Maurice promises Shelton $100 if Shelton will sell his painting. Shelton agrees, but
Maurice doesn't pay Shelton
-Nathan and Sue exchange vows at their wedding
-Sherry promises to give Brent a ride home from work, and then doesn't show up -
Answer-Sherry promises to give Brent a ride home from work, and then doesn't show up
Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out
of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in
the property divided? - Answer-Barbie owns two thirds and Midge owns one third
Individual property managers may be employed by an owner and manage ________
-A single property
-Multiple properties
-Properties within a single state
-Several connected properties - Answer-A single property
A lender requests an appraisal of a property under foreclosure. What type of value is
the lender most likely to be interested in?
-Going concern value
-Insured value
-Investment value
-Liquidation value - Answer-Liquidation value
What is a real estate employment agreement in Arizona?
-An agreement between a licensee and the licensee's broker
-An agreement between two licensee's working with the same client
-A term for property management agreements
-A term for the listing agreement or buyer agency agreement - Answer-An term for the
listing agreement or buyer agency agreement
Homeowners Annette and Jeff are suing contractor Daniel for breach of contract. Where
might they be able to find an affidavit of suspended license to use as prima facie
evidence in the court proceedings?
-Arizona Administrative Office of the Courts
-Arizona Department of Real Estate
- Arizona Registrar of Contractors - Answer-Arizona Registrar of Contractors
Where can a party reviewing a title commitment find basic details about the transaction?
-Schedule A
,-Schedule B-1
-Schedule B-2
-This is not contained in the title commitment - Answer-Schedule A
Who originates their own loans?
-Mortgage bankers
-Mortgage brokers
-Real estate brokers
-Real estate licensee - Answer-Mortgage bankers
Sunshine Surveyors Inc. created a lot and block survey for a new residential
development, Happy Acres. The first thing the surveyor did when he surveyed the new
neighborhood was to reference what type of description?
-Map
-Metes and bound description
-Monument
-Plat book - Answer-Metes and bounds description
Forecasting the income and expenses that we can reasonably expect to bring in and
pay out over a short term results in a budget that's every property managers dream.
That budget is __________
-A capital reserve
-An expense
-Historical
-Stabilized - Answer-Stabilized
One member of the Arizona Real Estate Advisory Board is required to be a ________.
-Commercial broker who is primarily a property sub divider
-Licensed broker who has been engaged in multi family residential rental brokerage
-Member of the general public
-Political independent - Answer-Licensed broker who has been engaged in multi family
residential rental brokerage
Which of the following is one of the desired outcomes of Freddie Mac's activities?
-Decrease liquidity in the U.S. housing market
-Increase interest rates on high dollar loans
-Increase overall leverage in the U.S. housing market
-Provide stability in the U.S. housing market - Answer-Provide stability in the U.S.
housing market
Buyers of timeshares in Arizona may cancel their purchases within how many days of
signing the contract? - Answer-10 days
Which act provides consumers with remedies if they become victims of discrimination in
the sale, rental, or financing of housing?
-Civil Rights Act of 1866
,-Equal Credit Opportunity Act of 1974
-Fair Housing Amendments Act of 1988
-Housing and Community Development Act of 1974 - Answer-Fair Housing
Amendments Act of 1988
In Arizona, how long does a seller who resides in a planned community or an HOA have
to give the buyer notification of the association rules? - Answer-10 days after notification
of pending sale
In Arizona, what is the maximum deposit a subdivider can charge per plot in a future
subdivision? - Answer-$5,000
Stan was the victim of domestic violence at the hands of his live in girlfriend, Staci.
When the police arrived, they arrested Staci and took her to county jail. The next
morning, Stan obtained a protective order. A week later, Stan decided that her couldn't
stay in his apartment anymore because of bad memories. He informed his landlord in
writing and provided a copy of the protective order. Did Stan's landlord have to allow
him to terminate his lease early under Arizona law? - Answer-Yes
Janice wanted to sell her townhome, and her neighbor was considering buying it. She
wanted to put it on the market while she waited to find out if her neighbor was going to
buy. In order to receive the best possible representation but avoid paying a commission
if her neighbor buys the property, which type of listing agreement would best suit
Janice's needs?
-Exclusive agency
-Exclusive right to sell
-Net
-Open - Answer-Exclusive agency
When Ray receives a notice of trustee's sale, he knows his property is in foreclosure
and he needs to hustle to find a way to reinstate his loan. He hasn't got much time,
though Arizona law requires a minimum of ______ between the date the notice is
recorded and the date of the sale. - Answer-90 days
Why might a property owner ask you to prepare a report showing the trend in rental
delinquency rates?
-To assess the adequacy of tenant income screening processes
-To assess your ability to manage tenant relations
-To determine if rental rates are too high compared to your competitors rates
-To forecast the amount of effort that will be required to collect the late rents - Answer-
To assess the adequacy of tenant income screening processes
What's the term for someone who's been given authority to act on behalf of someone
else?
-Agent
-Client
, -Mortgage lender
-Trustor - Answer-Agent
Over how many years is a commercial property depreciated?
-27.5 years
-29 years
-39 years
-40 years - Answer-39 years
Angelique, a foreign investor, is getting ready to sell her urban condo. What percentage
of withholding of the sales price will FIRPTA require? - Answer-15%
Which act states that communities and facilities that meet certain criteria for providing
housing to older persons are legally exempt from familial status discrimination?
-Fair Housing Amendments Act of 1988
-Federal Fair Housing Act of 1968
-Housing and Community Development Act of 1974
-Housing for Older Persons Act of 1995 - Answer-Housing for Older Persons Act of
1995
Which of the following is the best example of the economic principal of leveraging, as it
applies to a real estate transaction?
-Completing the loan process
-Making a down payment
-Making the loan payments
-Purchasing title insurance - Answer-Making a down payment
Buying at one price and immediately trying to sell it at a higher price is known as
_______.
-Exchanging
-Flipping
-Switching
-Trading - Answer-Flipping
Who is responsible for requesting a loan payoff statement before closing?
-The buyer
-The seller
-The lender
-The title insurance representative - Answer-The seller
Which ownership type is defined by four unities: time, title, interest, and possession?
-Freehold estate
-Joint tenancy
-Tenancy by the entirety
-Tenancy in common - Answer-Joint tenancy
