Real Estate Exam Arizona Questions
with Correct Answers
Cindy enters into a contract to buy Jarod's home. She then transfers her right to
purchase to her twin sister, Maud, for a small fee. But Maud neglects to fulfill the
buyer's obligations under the contract, and Jarod is able to pursue Cindy, who's still
liable. This is an example of ______. - ANSWER-Assignment
For each Arizona branch office that an employing broker opens, a separate ______
must be attained. - ANSWER-Branch office license
Callie's home is damaged during a severe summer storm. Thank goodness she has
property insurance with Safe Home and Life. In this situation, Safe Home and Life is
known as ______. - ANSWER-The insurer
Which one of the following actions is a licensee required to take to fulfill a fiduciary
duty? - ANSWER-Disclose personal interest and licensed status when buying
property for personal use.
A buyer is purchasing a property for $400,000. His lender's loan-to-value ratio is
80%. How much is the buyer financing? - ANSWER-$320,000
Max has decided to cancel his reservation for a plot in an upcoming subdivision
because of the delays the subdivider is experiencing. How long does the subdivider
have to get the deposit back to Max? - ANSWER-Five business days
Elisa agreed to list Simone's house for sale. After the listing contract was signed,
Simone lost her job, and her father, George, offered to help Simone by paying Elisa's
listing commission. The buyer's agent, Carl, also reduced his commission. Who is
Elisa's client? - ANSWER-Simone
What's a percent? - ANSWER-part of 100
Why do investors have a special interest in the impact income taxes have? -
ANSWER-Income tax is a significant factor in return on investment.
For farmers and others who live in rural communities, a ______ loan may be
available. One benefit of these loans is the option for a longer payback period. -
ANSWER-Rural development
Maggie has a neighbor, Jim, who is facing foreclosure. She likes Jim and wants to
help him out, so they agree to do a "subject to" purchase. What does this mean? -
ANSWER-Maggie will take over Jim's loan payments without telling his lender she's
doing so.
Cooperative shareholders under a condop structure have ______. - ANSWER-
Flexibility in selling and subletting, similar to that of condominium owners
,Each of four properties has an assessed valuation of $249,000. Based on property
classification and assessment ratio, which one would have the highest property tax
bill? - ANSWER-A bicycle manufacturing plant
Which of the following best describes a bilateral contract? - ANSWER-A contract that
involves an exchange of consideration between two parties
Alana and Michael want to build a 5,000-square-foot ranch home on two acres of
land they just bought. Once the house is built, how many acres of land will remain
unbuilt? - ANSWER-1.89 acres
Assuming no qualifying exceptions, who is responsible for handling real estate
transaction negotiations in Arizona? - ANSWER-The principals' brokers or their
brokers' representatives
What's the definition of a marketable title? - ANSWER-A title that is clear and free of
encumbrances
Clarence is a Gilbert broker who's performing a three-step reconciliation. He's
compared the bank statement balance—adjusting for any outstanding checks or
receipts—to the balance on his receipts and disbursements journal for the same
date. How should these numbers compare? - ANSWER-They should match.
A property management agreement is between a property manager and a ______. -
ANSWER-Property owner
Xavier deposited a $3,000 earnest money check into his personal account for
safekeeping while he was on vacation. The balance in his account when he left on
vacation was $4,200, and when he returned, it was $2,800. He withdrew enough
funds from his savings account to cover the earnest money check and delivered the
funds to the escrow agent. Which statement best represents Xavier's issue? -
ANSWER-Xavier is guilty of commingling and conversion.
Arizona licensed salesperson Andrea has an active license, but in order to perform
real estate activities to earn compensation, she'll also need ______. - ANSWER-To
be employed by an employing broker
Obtaining a 20-year mortgage instead of a 30-year mortgage results in which of the
following? - ANSWER-Higher payments and less interest
Sonia receives a Notice of Trustee's Sale from one of the parties on her deed of
trust. Who's responsible for sending her this notice? - ANSWER-The trustee
What's the term for the illegal practice of nudging buyers away from or toward a
specific area based on the presence or absence of protected class members? -
ANSWER-Steering
The practice of a lender to refuse to lend in a specific area, often based on the
minority makeup of the area. - ANSWER-redlining
,An illegal practice in which licensees or others encourage homeowners to sell
because of an influx or expected influx of minorities into the area - ANSWER-
blockbusting
What are the minimum requirements for a bulk sale of subdivided to be exempt from
Arizona subdivision statutes? - ANSWER-Six or more lots sold to a single buyer in
one transaction.
The residential contractors recovery fund has a maximum payout limited to $200,000
per ______. - ANSWER-Contractor license
Which of the following is true about volatile organic compounds? - ANSWER-Paint,
air fresheners, and cleaners are primary sources.
Giant Industries has a $674,232 gross operating income, operating expenses of
$329,129, and other expenses totaling $38,719. What is the net operating income? -
ANSWER-$345,103 (Gross - Op Exp = Net) (Not other exp)
Your client tells you to do something. It would violate fair housing laws, but it will
earn you an amazing commission. What should you do? - ANSWER-Explain that you
cannot do it, because it's a fair housing violation, and you could both get into trouble
for doing what she's asked.
Your client Jerry wants to buy some acreage to run a 10-acre ranch. He found the
perfect spot—and it's inside an INA. What should you tell him? - ANSWER-"The only
way you can irrigate here is if you buy land that was irrigated between 1975 and
1979."
Evan bought into a housing cooperative that's focused on cultural exchange. Each
month, the co-op residents have dinner meetings and share food and information
about the culture of their respective regions. When Evan made his purchase, he
received a proprietary lease for his unit. What else did he receive? - ANSWER-
Shares in the cooperative corporation
Becky's client asked, "Who contributes to the escrow account to maintain the proper
funds for insurance payment?" How should she respond? - ANSWER-Buyer
Putting clients' interests ahead of all others describes which fiduciary duty? -
ANSWER-Loyalty
Moneys given for purchase deposits are ______. - ANSWER-Trust funds
Steven owns 114 acres of wooded, rural land. The abundance of wildlife on his
property means that his friends are always asking for permission to hunt on it during
various game seasons. If Steven gives a friend permission to hunt on his land, it can
be said that he has given his friend a ______.• Easement• Grant• Covenant• License
- ANSWER-License
, Which factor influences property value and addresses questions such as, "What's
the market like?" and "Are there more buyers than sellers, or vice versa?"
Demand
Scarcity
Transferability
Utility - ANSWER-Demand
A property is 21,780 square feet. How many acres is this?
Half an acre
One acre
Three acres
Two acres - ANSWER-Half an acre
What is the minimum number of estimates that buyers and sellers should get from
contractors for work they want done on their home?
None
One
Three
Two - ANSWER-Three
Which of the following is NOT a type of real property lien?
Disposition
Judgment
Mortgage
Property tax - ANSWER-Disposition
How do agents commonly market an office exclusive?
Inform colleagues at their firm about the listing
Market the listing on the MLS
Place ads in local newspapers
Place advertisements on social media - ANSWER-Inform colleagues at their firm
about the listing
Life insurance companies participate in real estate in the ______ arena.
Construction loan
Home equity line of credit (HELOC)
Mortgage blocks from secondary mortgage market
New home construction - ANSWER-Mortgage blocks from secondary mortgage
market
Which one of the following definitions best describes a consumer?
Someone who is hired to act on behalf of a client
Someone who is in a position of trust and loyalty
Someone who is involved in a transaction but represents neither party
with Correct Answers
Cindy enters into a contract to buy Jarod's home. She then transfers her right to
purchase to her twin sister, Maud, for a small fee. But Maud neglects to fulfill the
buyer's obligations under the contract, and Jarod is able to pursue Cindy, who's still
liable. This is an example of ______. - ANSWER-Assignment
For each Arizona branch office that an employing broker opens, a separate ______
must be attained. - ANSWER-Branch office license
Callie's home is damaged during a severe summer storm. Thank goodness she has
property insurance with Safe Home and Life. In this situation, Safe Home and Life is
known as ______. - ANSWER-The insurer
Which one of the following actions is a licensee required to take to fulfill a fiduciary
duty? - ANSWER-Disclose personal interest and licensed status when buying
property for personal use.
A buyer is purchasing a property for $400,000. His lender's loan-to-value ratio is
80%. How much is the buyer financing? - ANSWER-$320,000
Max has decided to cancel his reservation for a plot in an upcoming subdivision
because of the delays the subdivider is experiencing. How long does the subdivider
have to get the deposit back to Max? - ANSWER-Five business days
Elisa agreed to list Simone's house for sale. After the listing contract was signed,
Simone lost her job, and her father, George, offered to help Simone by paying Elisa's
listing commission. The buyer's agent, Carl, also reduced his commission. Who is
Elisa's client? - ANSWER-Simone
What's a percent? - ANSWER-part of 100
Why do investors have a special interest in the impact income taxes have? -
ANSWER-Income tax is a significant factor in return on investment.
For farmers and others who live in rural communities, a ______ loan may be
available. One benefit of these loans is the option for a longer payback period. -
ANSWER-Rural development
Maggie has a neighbor, Jim, who is facing foreclosure. She likes Jim and wants to
help him out, so they agree to do a "subject to" purchase. What does this mean? -
ANSWER-Maggie will take over Jim's loan payments without telling his lender she's
doing so.
Cooperative shareholders under a condop structure have ______. - ANSWER-
Flexibility in selling and subletting, similar to that of condominium owners
,Each of four properties has an assessed valuation of $249,000. Based on property
classification and assessment ratio, which one would have the highest property tax
bill? - ANSWER-A bicycle manufacturing plant
Which of the following best describes a bilateral contract? - ANSWER-A contract that
involves an exchange of consideration between two parties
Alana and Michael want to build a 5,000-square-foot ranch home on two acres of
land they just bought. Once the house is built, how many acres of land will remain
unbuilt? - ANSWER-1.89 acres
Assuming no qualifying exceptions, who is responsible for handling real estate
transaction negotiations in Arizona? - ANSWER-The principals' brokers or their
brokers' representatives
What's the definition of a marketable title? - ANSWER-A title that is clear and free of
encumbrances
Clarence is a Gilbert broker who's performing a three-step reconciliation. He's
compared the bank statement balance—adjusting for any outstanding checks or
receipts—to the balance on his receipts and disbursements journal for the same
date. How should these numbers compare? - ANSWER-They should match.
A property management agreement is between a property manager and a ______. -
ANSWER-Property owner
Xavier deposited a $3,000 earnest money check into his personal account for
safekeeping while he was on vacation. The balance in his account when he left on
vacation was $4,200, and when he returned, it was $2,800. He withdrew enough
funds from his savings account to cover the earnest money check and delivered the
funds to the escrow agent. Which statement best represents Xavier's issue? -
ANSWER-Xavier is guilty of commingling and conversion.
Arizona licensed salesperson Andrea has an active license, but in order to perform
real estate activities to earn compensation, she'll also need ______. - ANSWER-To
be employed by an employing broker
Obtaining a 20-year mortgage instead of a 30-year mortgage results in which of the
following? - ANSWER-Higher payments and less interest
Sonia receives a Notice of Trustee's Sale from one of the parties on her deed of
trust. Who's responsible for sending her this notice? - ANSWER-The trustee
What's the term for the illegal practice of nudging buyers away from or toward a
specific area based on the presence or absence of protected class members? -
ANSWER-Steering
The practice of a lender to refuse to lend in a specific area, often based on the
minority makeup of the area. - ANSWER-redlining
,An illegal practice in which licensees or others encourage homeowners to sell
because of an influx or expected influx of minorities into the area - ANSWER-
blockbusting
What are the minimum requirements for a bulk sale of subdivided to be exempt from
Arizona subdivision statutes? - ANSWER-Six or more lots sold to a single buyer in
one transaction.
The residential contractors recovery fund has a maximum payout limited to $200,000
per ______. - ANSWER-Contractor license
Which of the following is true about volatile organic compounds? - ANSWER-Paint,
air fresheners, and cleaners are primary sources.
Giant Industries has a $674,232 gross operating income, operating expenses of
$329,129, and other expenses totaling $38,719. What is the net operating income? -
ANSWER-$345,103 (Gross - Op Exp = Net) (Not other exp)
Your client tells you to do something. It would violate fair housing laws, but it will
earn you an amazing commission. What should you do? - ANSWER-Explain that you
cannot do it, because it's a fair housing violation, and you could both get into trouble
for doing what she's asked.
Your client Jerry wants to buy some acreage to run a 10-acre ranch. He found the
perfect spot—and it's inside an INA. What should you tell him? - ANSWER-"The only
way you can irrigate here is if you buy land that was irrigated between 1975 and
1979."
Evan bought into a housing cooperative that's focused on cultural exchange. Each
month, the co-op residents have dinner meetings and share food and information
about the culture of their respective regions. When Evan made his purchase, he
received a proprietary lease for his unit. What else did he receive? - ANSWER-
Shares in the cooperative corporation
Becky's client asked, "Who contributes to the escrow account to maintain the proper
funds for insurance payment?" How should she respond? - ANSWER-Buyer
Putting clients' interests ahead of all others describes which fiduciary duty? -
ANSWER-Loyalty
Moneys given for purchase deposits are ______. - ANSWER-Trust funds
Steven owns 114 acres of wooded, rural land. The abundance of wildlife on his
property means that his friends are always asking for permission to hunt on it during
various game seasons. If Steven gives a friend permission to hunt on his land, it can
be said that he has given his friend a ______.• Easement• Grant• Covenant• License
- ANSWER-License
, Which factor influences property value and addresses questions such as, "What's
the market like?" and "Are there more buyers than sellers, or vice versa?"
Demand
Scarcity
Transferability
Utility - ANSWER-Demand
A property is 21,780 square feet. How many acres is this?
Half an acre
One acre
Three acres
Two acres - ANSWER-Half an acre
What is the minimum number of estimates that buyers and sellers should get from
contractors for work they want done on their home?
None
One
Three
Two - ANSWER-Three
Which of the following is NOT a type of real property lien?
Disposition
Judgment
Mortgage
Property tax - ANSWER-Disposition
How do agents commonly market an office exclusive?
Inform colleagues at their firm about the listing
Market the listing on the MLS
Place ads in local newspapers
Place advertisements on social media - ANSWER-Inform colleagues at their firm
about the listing
Life insurance companies participate in real estate in the ______ arena.
Construction loan
Home equity line of credit (HELOC)
Mortgage blocks from secondary mortgage market
New home construction - ANSWER-Mortgage blocks from secondary mortgage
market
Which one of the following definitions best describes a consumer?
Someone who is hired to act on behalf of a client
Someone who is in a position of trust and loyalty
Someone who is involved in a transaction but represents neither party
