The CE Shop Real Estate Salesperson
(Arizona) Practice Exam #1
Question 1
The Swansons left the family property to their son, Jason, with the
stipulation that he does not build on it. The type of estate Jason holds is
.
Fee simple absolute
Fee simple
defeasible
Leasehold
Qualified lease
correct answersFee
simple defeasible
Under a fee simple defeasible estate, the property holder owns the
property with all legal rights, but subject to a condition.
Question 2
Which of the following is a true statement about the MLS and
sellers? For most sellers, listing on the MLS is not cost
effective.
It's rare for sellers to decline advertising their property on
the MLS. Most sellers dislike advertising their property on
an MLS.
Sellers are required to list their properties on the MLS if they're working
with a real estate licensee.
In every listing agreement, sellers state whether they give permission for
their property to be listed on
an MLS. correct answersIt's rare for sellers to decline advertising their
property on the MLS.
It's rare that sellers decline this opportunity, since the MLS is the most
powerful tool that real
estate professionals have at their disposal.
Question 3
Why are underground storage tanks a potential environmental issue?
As their materials break down, radon is released into the soil and could
seep into surrounding homes, causing health issues.
If they leak, they may contaminate the surrounding soil and
groundwater.
They are only used to contain toxic materials and human proximity to
such materials can cause health issues.
They regularly exude potentially harmful gasses. correct answersIf they
leak, they may contaminate the surrounding soil and groundwater.
,Underground storage tanks have been used to hold a variety of
substances, including heating oil. While a UST doesn't necessarily mean
noxious gasses or toxic material, many substances if leaked
have the potential to contaminate the soil and groundwater.
Question 4
If downzoning occurs in one area, reducing property values in adjacent
areas, what can the homeowners in those adjacent areas do?
File a claim for inverse condemnation.
Require a zoning change to their own
property. Sell at a loss and file a claim.
Sue their neighbors. correct answersFile
a claim for inverse condemnation.
Because downzoning is a reduction in use and can impact property
values even in adjacent properties,
homeowners in the adjacent areas can file a claim for inverse
condemnation.
Question 5
Buyers Tony and Sylvia know the postal address of the property they're
purchasing but are wondering about the legal description of the property.
Where is the most likely place to find the
legal
description?
Deed
HOA covenant
Home warranty
Listing
agreement
correct
answersDeed
Legal descriptions, which appear on deeds and other legal documents,
provide a less ambiguous and
more complete description of a property than a street address does.
Question 6
In Arizona, which of the following is an indicator that a tenant has
abandoned a rental dwelling unit?
The tenant extended her 10-day vacation to 14 days without notifying the
landlord. The tenant has been absent from property for at least seven days
without notifying the
landlord.
The tenant's rent payment is past due by seven days.
The tenant's vehicle has been absent from the unit's driveway for more
than a week. Arizona law says that a unit could be considered abandoned
if no one has seen or heard from the
tenant for seven days, and the tenant hasn't contacted the landlord.
correct answersThe
tenant has been absent from property for at least seven days without
notifying the landlord.
,Arizona law says that a unit could be considered abandoned if no one
has seen or heard from the tenant for seven days, and the tenant hasn't
contacted the landlord.
Question 7
Several actions take place on the secondary mortgage market. Which of
these is a common activity?
Issuing loans to consumers
Packaging loans into mortgage-backed
securities Regulating primary lenders
Setting loan origination fees correct
answersPackaging loans into mortgage-
backed
securities
Loans are commonly packaged into MBSs and sold to
investors. Question 8
The Housing and Community Development Act of 1974 added which
protected class to federal
fair housing law?
Color
Disabilit
y
Religion
Sex
correct
answer
sSex
The Housing and Development Act of 1974 added sex as a protected
class, which helped prevent
discrimination and sexual harassment for individuals seeking housing.
Question 9
In most cases, what type of agent is a real estate licensee when working with
a client on a real
estate
sale?
Double
Dual
Genera
l
Limite
d or
special
correct
answer
sLimite
d or
special
Real estate licensees most often serve as special agents, also known as
limited agents. They have limited scope of authority when compared to a
general agent.
, Earnest money isn't required to have a binding sales contract (although
it's usually required by the
seller!). If no earnest money is provided, the prospective buyer's only
consideration is
the promise to
pay the purchase price.
Question 11
What's the name of the clause included in a finance instrument that requires
the lender to release a portion of the property from the lien when a part of
the debt has been paid? Exculpatory
Non-
recourse
Partial
release
Subordinatio
n correct
answersParti
al release
This is a partial release clause that is typically used by developers who need
to sell lots in a new
subdivision.
Question 12
If the land is described as "N ¼ NW ½ Section 4, Township Bailey," what
type of legal description is being used?
Lot and block
Metes and
bounds
Monument
system
Rectangular
survey system
correct
answersRectang
ular survey
system
Rectangular survey system descriptions reference a section within a
township. Question 13
determines who the heir or heirs will be if a person dies
without a will.
Court
appointment
Escheat
Intestate
bequest
Intestate
succession
correct
answersIntestat
e succession
(Arizona) Practice Exam #1
Question 1
The Swansons left the family property to their son, Jason, with the
stipulation that he does not build on it. The type of estate Jason holds is
.
Fee simple absolute
Fee simple
defeasible
Leasehold
Qualified lease
correct answersFee
simple defeasible
Under a fee simple defeasible estate, the property holder owns the
property with all legal rights, but subject to a condition.
Question 2
Which of the following is a true statement about the MLS and
sellers? For most sellers, listing on the MLS is not cost
effective.
It's rare for sellers to decline advertising their property on
the MLS. Most sellers dislike advertising their property on
an MLS.
Sellers are required to list their properties on the MLS if they're working
with a real estate licensee.
In every listing agreement, sellers state whether they give permission for
their property to be listed on
an MLS. correct answersIt's rare for sellers to decline advertising their
property on the MLS.
It's rare that sellers decline this opportunity, since the MLS is the most
powerful tool that real
estate professionals have at their disposal.
Question 3
Why are underground storage tanks a potential environmental issue?
As their materials break down, radon is released into the soil and could
seep into surrounding homes, causing health issues.
If they leak, they may contaminate the surrounding soil and
groundwater.
They are only used to contain toxic materials and human proximity to
such materials can cause health issues.
They regularly exude potentially harmful gasses. correct answersIf they
leak, they may contaminate the surrounding soil and groundwater.
,Underground storage tanks have been used to hold a variety of
substances, including heating oil. While a UST doesn't necessarily mean
noxious gasses or toxic material, many substances if leaked
have the potential to contaminate the soil and groundwater.
Question 4
If downzoning occurs in one area, reducing property values in adjacent
areas, what can the homeowners in those adjacent areas do?
File a claim for inverse condemnation.
Require a zoning change to their own
property. Sell at a loss and file a claim.
Sue their neighbors. correct answersFile
a claim for inverse condemnation.
Because downzoning is a reduction in use and can impact property
values even in adjacent properties,
homeowners in the adjacent areas can file a claim for inverse
condemnation.
Question 5
Buyers Tony and Sylvia know the postal address of the property they're
purchasing but are wondering about the legal description of the property.
Where is the most likely place to find the
legal
description?
Deed
HOA covenant
Home warranty
Listing
agreement
correct
answersDeed
Legal descriptions, which appear on deeds and other legal documents,
provide a less ambiguous and
more complete description of a property than a street address does.
Question 6
In Arizona, which of the following is an indicator that a tenant has
abandoned a rental dwelling unit?
The tenant extended her 10-day vacation to 14 days without notifying the
landlord. The tenant has been absent from property for at least seven days
without notifying the
landlord.
The tenant's rent payment is past due by seven days.
The tenant's vehicle has been absent from the unit's driveway for more
than a week. Arizona law says that a unit could be considered abandoned
if no one has seen or heard from the
tenant for seven days, and the tenant hasn't contacted the landlord.
correct answersThe
tenant has been absent from property for at least seven days without
notifying the landlord.
,Arizona law says that a unit could be considered abandoned if no one
has seen or heard from the tenant for seven days, and the tenant hasn't
contacted the landlord.
Question 7
Several actions take place on the secondary mortgage market. Which of
these is a common activity?
Issuing loans to consumers
Packaging loans into mortgage-backed
securities Regulating primary lenders
Setting loan origination fees correct
answersPackaging loans into mortgage-
backed
securities
Loans are commonly packaged into MBSs and sold to
investors. Question 8
The Housing and Community Development Act of 1974 added which
protected class to federal
fair housing law?
Color
Disabilit
y
Religion
Sex
correct
answer
sSex
The Housing and Development Act of 1974 added sex as a protected
class, which helped prevent
discrimination and sexual harassment for individuals seeking housing.
Question 9
In most cases, what type of agent is a real estate licensee when working with
a client on a real
estate
sale?
Double
Dual
Genera
l
Limite
d or
special
correct
answer
sLimite
d or
special
Real estate licensees most often serve as special agents, also known as
limited agents. They have limited scope of authority when compared to a
general agent.
, Earnest money isn't required to have a binding sales contract (although
it's usually required by the
seller!). If no earnest money is provided, the prospective buyer's only
consideration is
the promise to
pay the purchase price.
Question 11
What's the name of the clause included in a finance instrument that requires
the lender to release a portion of the property from the lien when a part of
the debt has been paid? Exculpatory
Non-
recourse
Partial
release
Subordinatio
n correct
answersParti
al release
This is a partial release clause that is typically used by developers who need
to sell lots in a new
subdivision.
Question 12
If the land is described as "N ¼ NW ½ Section 4, Township Bailey," what
type of legal description is being used?
Lot and block
Metes and
bounds
Monument
system
Rectangular
survey system
correct
answersRectang
ular survey
system
Rectangular survey system descriptions reference a section within a
township. Question 13
determines who the heir or heirs will be if a person dies
without a will.
Court
appointment
Escheat
Intestate
bequest
Intestate
succession
correct
answersIntestat
e succession
