ARIZONA REAL ESTATE EXAM
QUESTIONS WITH 100% CORRECT
ANSWERS
In Arizona, a deed is acknowledged to?
A. Show the intent of the grantee
B. Confirm the buyer is an owner occupant
C. Meet the recordation requirements
D. Meet the statute of frauds - ANSWER-C. Meet the recordation requirements
When a document is acknowledged, it shows?
A. The document was recorded
B. The document was released
C. The document was drafted
D. The document was signed of your own free will - ANSWER-D. The document was
signed of your own free will
A valid deed must contain all of the following EXCEPT?
A. Legal Description
B. Signed by Grantor
C. Signed by Grantee
D. Consideration - ANSWER-C. Signed by Grantee
What is it called when title passes by involuntary alienation through prescriptive suit?
A. Escheat
B. Laws of Descent
C. Eminent Domain
D. Adverse Possession - ANSWER-D. Adverse Possession
Which of the following shows the best relationship between testate and intestate?
A. Will - Administrator
B. No Will - Executrix
C. Executor - Will
D. Administrator - Executor - ANSWER-A. Will - Administrator
A person who receives real property through a will is called the?
A. Bequestor
B. Bequestee
C. Devisor
D. Devisee - ANSWER-D. Devisee
A homestead may be terminated for all of the following reasons EXCEPT:
A. Abandonment
B. Selling the property
C. Moving out of state
D. Death of a spouse - ANSWER-D. Death of a spouse
,Which of the following would NOT qualify for a homestead exemption?
A. Married couple living in a co-op
B. Single person living in a mobile home that is parked in a rented space
C. Family who owns a house in the name of a corporation
D. Unmarried people living in manufactured housing on jointly-owned land -
ANSWER-C. Family who owns a house in the name of a corporation
A lease in which the lessor receives a fixed rent and assumes responsibility for all
other costs on the property is called a/an:
A. Open Lease
B. Net Lease
C. Percentage Lease
D. Gross Lease - ANSWER-D. Gross Lease
Which of the following would have a percentage lease?
A. Municipality
B. Utility Company
C. Public Library
D. Art Gallery - ANSWER-D. Art Gallery
Amortization Schedule - ANSWER-A table or chart that shows the periodic
payments, interest and principal requirements and unpaid load balance for each
period of the life of a loan
Annexation - ANSWER-Attaching personal property to land so that the law views it
as part of the real property
Annual Percentage Rate (APR) - ANSWER-The relationship between the cost of
borrowing and the total amount financed, represented as a percentage
Appurtenance - ANSWER-Something that belongs to property and passes with
property, but need not be attached to it (e.g. outbuildings, easements). An
appurtenance "runs with the land."
Arbitration - ANSWER-A method for resolving disputes out of court whereby an
impartial third party renders a binding decision. This is the method by which disputes
between REALTOR brokers may be resolved
Arizona Department of Environmental Quality (ADEQ) - ANSWER-The state
department tasked with protecting and enhancing public health and the environment
in the state; enforces the state's environmental laws and delegated federal programs
to prevent air, water and land pollution and ensure cleanup.
Arizona Department of Real Estate (ADRE) - ANSWER-The state agency that
regulates real estate, cemetery and membership camping brokers and salespersons.
The Department oversees the activities of licensees, investigates complaints and
participates in administrative hearings. It also regulates the sale of subdivisions,
unsubdivided lands, timeshares, condominiums, membership campgrounds and
cemeteries.
,Arizona Department of Water Resources (ADWR) - ANSWER-The state department
created in 1980 to secure long-term dependable water supplies for Arizona's
communities; enforces the state's groundwater code and surface water rights.
Arizona Revised Statutes (A.R.S.) - ANSWER-The codified collection of laws that
have been passed by the Arizona State Legislature. The part that talks about real
estate is Title 32 chapter 20z
Arm's Length Transaction - ANSWER-A transaction that occurred under typical
conditions in the marketplace, with each of the parties acting in their own best
interests
Arrears - ANSWER-Owing payment on things for which one has the use of but has
not yet paid for, such as property taxes that are paid in arrears, or the state being in
arrears with a debt obligation
Article XXVI - ANSWER-Article of the Arizona Constitution that permits licensed,
active real estate brokers and agents to prepare the documents necessary in a real
estate transaction handled by their brokerage without charging a fee
Asbestos - ANSWER-Fibrous material derived from a naturally occurring group of
minerals commonly used in insulation. Asbestos fibers released into the air are
carcinogenic.
Assemblage - ANSWER-The combining of two or more parcels of land into one
larger parcel, usually to increase the usefulness of the land.
Assessed Value - ANSWER-For property tax purposes, a percentage of the market
value. In Arizona, the percentage for residential property is 10%, raw land is 15%
and commercial property is 18%.
Assignment - ANSWER-1. The transfer of one person's interests under a contract to
another. 2. The transfer of tenant's right of possession, or other interest, in leased
property to another person for the remainder of the lease term. In both ceases,
assignment does not release the assignor from the obligations stated in the contract
Assumable Loan - ANSWER-A financing arrangement in which the outstanding loan
amount can be transferred to someone else.
Assumption of Mortgage - ANSWER-An agreement by a buyer to assume the liability
under an existing note secured by a mortgage
Assured Water Supply - ANSWER-The demonstration that sufficient water of
adequate quality will be continuously available to satisfy the needs of the proposed
development for at least 100 years; required from developers within an Active
Management Area (AMA).
Attachment - ANSWER-Court-ordered seizure of a defendant's property to satisfy a
judgement. In the case of real property, attachment creates a lien.
, Attachment, Man-made - ANSWER-An item of personal property that has been
attached to or closely associated with real property in such a way that it is now
legally part of the real property. Also call FIXTURE
Attachment, Natural - ANSWER-Things growing on land, such as trees or shrubs.
Also called EMBLEMENTS or FRUCTUS NATURALES
Attorney-at-Law - ANSWER-An individual licensed to practice law for the public
Attorney-in-Fact - ANSWER-A person specifically designated in an instrument (e.g.
power of attorney) to do something legally for another in his stead. An attorney-in-
fact has a fiduciary relationship with the principal and need not be an attorney-at-law
Automatic Stay - ANSWER-An injunction that automatically stops lawsuits,
foreclosures, garnishments and all collection activity against the debtor the moment
a bankruptcy petition is filed
Avulsion - ANSWER-The erosion or tearing away of land through natural causes,
such as flooding, which may remove soil or cave in the banks of a river
Bill of Sale - ANSWER-An instrument in writing that transfers ownership of tangible
personal property
Condemnation - ANSWER-The act or process of taking private property for public
use through the government's power of eminent domain
In order to record a deed, which of the following would be required?
A. Signed by the grantee
B. Signed and delivered
C. Signed and acknowledged
D. Signed and dated - ANSWER-C. Signed and delivered
Mother & son own an investment property with equal interest. No other information is
available. How do they hold title?
A. Community Property
B. In Severalty
C. Joint Tenancy with Rights of Survivorship
D. Tenancy In Common - ANSWER-D. Tenancy In Common (Arizona's presumption
for two single people.)
If a husband and wife decide to take title as tenancy in common, which of the
following would apply?
A. Husband and wife must have equal interest
B. Right of successorship would exist
C. Husband and wife may have unequal interest
D. They would own the property as sole and separate. - ANSWER-C. Husband and
wife may have unequal interest.
All of the following apply to joint tenancy EXCEPT:
A. Possession
QUESTIONS WITH 100% CORRECT
ANSWERS
In Arizona, a deed is acknowledged to?
A. Show the intent of the grantee
B. Confirm the buyer is an owner occupant
C. Meet the recordation requirements
D. Meet the statute of frauds - ANSWER-C. Meet the recordation requirements
When a document is acknowledged, it shows?
A. The document was recorded
B. The document was released
C. The document was drafted
D. The document was signed of your own free will - ANSWER-D. The document was
signed of your own free will
A valid deed must contain all of the following EXCEPT?
A. Legal Description
B. Signed by Grantor
C. Signed by Grantee
D. Consideration - ANSWER-C. Signed by Grantee
What is it called when title passes by involuntary alienation through prescriptive suit?
A. Escheat
B. Laws of Descent
C. Eminent Domain
D. Adverse Possession - ANSWER-D. Adverse Possession
Which of the following shows the best relationship between testate and intestate?
A. Will - Administrator
B. No Will - Executrix
C. Executor - Will
D. Administrator - Executor - ANSWER-A. Will - Administrator
A person who receives real property through a will is called the?
A. Bequestor
B. Bequestee
C. Devisor
D. Devisee - ANSWER-D. Devisee
A homestead may be terminated for all of the following reasons EXCEPT:
A. Abandonment
B. Selling the property
C. Moving out of state
D. Death of a spouse - ANSWER-D. Death of a spouse
,Which of the following would NOT qualify for a homestead exemption?
A. Married couple living in a co-op
B. Single person living in a mobile home that is parked in a rented space
C. Family who owns a house in the name of a corporation
D. Unmarried people living in manufactured housing on jointly-owned land -
ANSWER-C. Family who owns a house in the name of a corporation
A lease in which the lessor receives a fixed rent and assumes responsibility for all
other costs on the property is called a/an:
A. Open Lease
B. Net Lease
C. Percentage Lease
D. Gross Lease - ANSWER-D. Gross Lease
Which of the following would have a percentage lease?
A. Municipality
B. Utility Company
C. Public Library
D. Art Gallery - ANSWER-D. Art Gallery
Amortization Schedule - ANSWER-A table or chart that shows the periodic
payments, interest and principal requirements and unpaid load balance for each
period of the life of a loan
Annexation - ANSWER-Attaching personal property to land so that the law views it
as part of the real property
Annual Percentage Rate (APR) - ANSWER-The relationship between the cost of
borrowing and the total amount financed, represented as a percentage
Appurtenance - ANSWER-Something that belongs to property and passes with
property, but need not be attached to it (e.g. outbuildings, easements). An
appurtenance "runs with the land."
Arbitration - ANSWER-A method for resolving disputes out of court whereby an
impartial third party renders a binding decision. This is the method by which disputes
between REALTOR brokers may be resolved
Arizona Department of Environmental Quality (ADEQ) - ANSWER-The state
department tasked with protecting and enhancing public health and the environment
in the state; enforces the state's environmental laws and delegated federal programs
to prevent air, water and land pollution and ensure cleanup.
Arizona Department of Real Estate (ADRE) - ANSWER-The state agency that
regulates real estate, cemetery and membership camping brokers and salespersons.
The Department oversees the activities of licensees, investigates complaints and
participates in administrative hearings. It also regulates the sale of subdivisions,
unsubdivided lands, timeshares, condominiums, membership campgrounds and
cemeteries.
,Arizona Department of Water Resources (ADWR) - ANSWER-The state department
created in 1980 to secure long-term dependable water supplies for Arizona's
communities; enforces the state's groundwater code and surface water rights.
Arizona Revised Statutes (A.R.S.) - ANSWER-The codified collection of laws that
have been passed by the Arizona State Legislature. The part that talks about real
estate is Title 32 chapter 20z
Arm's Length Transaction - ANSWER-A transaction that occurred under typical
conditions in the marketplace, with each of the parties acting in their own best
interests
Arrears - ANSWER-Owing payment on things for which one has the use of but has
not yet paid for, such as property taxes that are paid in arrears, or the state being in
arrears with a debt obligation
Article XXVI - ANSWER-Article of the Arizona Constitution that permits licensed,
active real estate brokers and agents to prepare the documents necessary in a real
estate transaction handled by their brokerage without charging a fee
Asbestos - ANSWER-Fibrous material derived from a naturally occurring group of
minerals commonly used in insulation. Asbestos fibers released into the air are
carcinogenic.
Assemblage - ANSWER-The combining of two or more parcels of land into one
larger parcel, usually to increase the usefulness of the land.
Assessed Value - ANSWER-For property tax purposes, a percentage of the market
value. In Arizona, the percentage for residential property is 10%, raw land is 15%
and commercial property is 18%.
Assignment - ANSWER-1. The transfer of one person's interests under a contract to
another. 2. The transfer of tenant's right of possession, or other interest, in leased
property to another person for the remainder of the lease term. In both ceases,
assignment does not release the assignor from the obligations stated in the contract
Assumable Loan - ANSWER-A financing arrangement in which the outstanding loan
amount can be transferred to someone else.
Assumption of Mortgage - ANSWER-An agreement by a buyer to assume the liability
under an existing note secured by a mortgage
Assured Water Supply - ANSWER-The demonstration that sufficient water of
adequate quality will be continuously available to satisfy the needs of the proposed
development for at least 100 years; required from developers within an Active
Management Area (AMA).
Attachment - ANSWER-Court-ordered seizure of a defendant's property to satisfy a
judgement. In the case of real property, attachment creates a lien.
, Attachment, Man-made - ANSWER-An item of personal property that has been
attached to or closely associated with real property in such a way that it is now
legally part of the real property. Also call FIXTURE
Attachment, Natural - ANSWER-Things growing on land, such as trees or shrubs.
Also called EMBLEMENTS or FRUCTUS NATURALES
Attorney-at-Law - ANSWER-An individual licensed to practice law for the public
Attorney-in-Fact - ANSWER-A person specifically designated in an instrument (e.g.
power of attorney) to do something legally for another in his stead. An attorney-in-
fact has a fiduciary relationship with the principal and need not be an attorney-at-law
Automatic Stay - ANSWER-An injunction that automatically stops lawsuits,
foreclosures, garnishments and all collection activity against the debtor the moment
a bankruptcy petition is filed
Avulsion - ANSWER-The erosion or tearing away of land through natural causes,
such as flooding, which may remove soil or cave in the banks of a river
Bill of Sale - ANSWER-An instrument in writing that transfers ownership of tangible
personal property
Condemnation - ANSWER-The act or process of taking private property for public
use through the government's power of eminent domain
In order to record a deed, which of the following would be required?
A. Signed by the grantee
B. Signed and delivered
C. Signed and acknowledged
D. Signed and dated - ANSWER-C. Signed and delivered
Mother & son own an investment property with equal interest. No other information is
available. How do they hold title?
A. Community Property
B. In Severalty
C. Joint Tenancy with Rights of Survivorship
D. Tenancy In Common - ANSWER-D. Tenancy In Common (Arizona's presumption
for two single people.)
If a husband and wife decide to take title as tenancy in common, which of the
following would apply?
A. Husband and wife must have equal interest
B. Right of successorship would exist
C. Husband and wife may have unequal interest
D. They would own the property as sole and separate. - ANSWER-C. Husband and
wife may have unequal interest.
All of the following apply to joint tenancy EXCEPT:
A. Possession
