Arizona Real Estate Practice Questions with
Verified Answers
Page | 1 Within how many days after property transfer shall a buyer submit a completed transfer
form and file with ADEQ - -15 days
An example of involuntary alienation is where title to real estate passes by: - -
Sheriff's deed
What event will create an involuntary life estate? - -Dower interest becoming cohate
A valid warranty deed must contain all of the following elements, except: - -Signed by
grantee
The clause in a deed which sets forth or limits the extent of the interests in the title being
conveyed is: - -The habendum clause
An instrument that conveys a grantor's interest is called a: - -Deed
Which of the items listed below is an interest in real property but not an estate? - -
Mortgage
What law creates an automatic lien on a commercial property, subject to the listing
agreement? - -Broker lien law
An article may be changed from realty to personalty by: - -Detachment
, What is the purpose of a date in an appraisal report? - -Define the market Conditions
under which the appraisal was made
Page | 2 The customary procedure for arriving at the fair market value of an office building for selling
purposes is: - -Figure the adjusted gross income, deduct all costs of operation, and
divide the net operating income by the current rate of return for this type of investment
Market price is closest to: - -The amount of money given in exchange for the property
(value in exchange)
Which of the following does not relate to appraising? - -Establishing value
While determining the net operating income of an investment property, an appraiser will
take into account all of the following except: - -Interest expense
Negligence that causes harm is a/an: - -Tort
Which of the following would NOT terminate an agency relationship? - -Accepting an
offer and opening escrow
Seller and buyer sign a purchase contract. The buyer wishes to give it to another party. This
action is called: - -Assignment
A buyer and a seller were separated in negotiations by only five hundred dollars. The listing
and sales agent agree to reduce the commission by that amount to make the deal. Each
agent gives their clients two hundred and fifty dollars after closing. What unethical
practices exist here? - -Undisclosed inducement and dividing commissions with non
licensees
, A real estate broker, in the typical agency relationship with a seller, is a/an: - -Special
agent
Page | 3
A lender is limited in the amount of reserves they may hold in a residential real estate
transaction. This is governed by: - -RESPA
What regulation requires the lender to show the true interest rate? - -Reg. Z
The effective rate of interest is best described as: - -Annual percentage rate
The VA funding fee would change based on: - -Loan to Value
Broker lists property for $180,000. The ad reads $10,000 down and 8% interest. This ad
would violate: - -Reg. Z
What document lets a buyer and seller see the costs involved with closing the transaction?
- -HUD-1 statement
A title company is employed by a lender to collect payments on a deed of trust, what is the
title company called? - -Servicing agent
Permanent finance payments would include which of the following? - -Principal and
interest
What statement in an advertisement requires a full explanation? - -Only $5,000 down
, What law requires lenders to limit the amount of funds that can be held in reserves? -
-RESPA
Page | 4
The mortgagor is: - -The borrower
What is not an encumbrance? - -Warranty deed
Real estate loan usury rates are set by: - -State laws
Prorated taxes would be shown on the settlement statement as a: - -Credit to buyer,
debit to seller
A residential tenant with a month-to-month lease enjoys which leasehold estate? - -
Periodic tenancy
In real estate terms, an estate for years also may be called: - -A leasehold
Which of the following is not essential to a valid contract? - -monetary consideration
Which of the following cannot be a trustee? - -C.P.A.
An Arizona real estate licensee may not charge for document preparation according to: -
-Arizona Constitution Article XXVI
Verified Answers
Page | 1 Within how many days after property transfer shall a buyer submit a completed transfer
form and file with ADEQ - -15 days
An example of involuntary alienation is where title to real estate passes by: - -
Sheriff's deed
What event will create an involuntary life estate? - -Dower interest becoming cohate
A valid warranty deed must contain all of the following elements, except: - -Signed by
grantee
The clause in a deed which sets forth or limits the extent of the interests in the title being
conveyed is: - -The habendum clause
An instrument that conveys a grantor's interest is called a: - -Deed
Which of the items listed below is an interest in real property but not an estate? - -
Mortgage
What law creates an automatic lien on a commercial property, subject to the listing
agreement? - -Broker lien law
An article may be changed from realty to personalty by: - -Detachment
, What is the purpose of a date in an appraisal report? - -Define the market Conditions
under which the appraisal was made
Page | 2 The customary procedure for arriving at the fair market value of an office building for selling
purposes is: - -Figure the adjusted gross income, deduct all costs of operation, and
divide the net operating income by the current rate of return for this type of investment
Market price is closest to: - -The amount of money given in exchange for the property
(value in exchange)
Which of the following does not relate to appraising? - -Establishing value
While determining the net operating income of an investment property, an appraiser will
take into account all of the following except: - -Interest expense
Negligence that causes harm is a/an: - -Tort
Which of the following would NOT terminate an agency relationship? - -Accepting an
offer and opening escrow
Seller and buyer sign a purchase contract. The buyer wishes to give it to another party. This
action is called: - -Assignment
A buyer and a seller were separated in negotiations by only five hundred dollars. The listing
and sales agent agree to reduce the commission by that amount to make the deal. Each
agent gives their clients two hundred and fifty dollars after closing. What unethical
practices exist here? - -Undisclosed inducement and dividing commissions with non
licensees
, A real estate broker, in the typical agency relationship with a seller, is a/an: - -Special
agent
Page | 3
A lender is limited in the amount of reserves they may hold in a residential real estate
transaction. This is governed by: - -RESPA
What regulation requires the lender to show the true interest rate? - -Reg. Z
The effective rate of interest is best described as: - -Annual percentage rate
The VA funding fee would change based on: - -Loan to Value
Broker lists property for $180,000. The ad reads $10,000 down and 8% interest. This ad
would violate: - -Reg. Z
What document lets a buyer and seller see the costs involved with closing the transaction?
- -HUD-1 statement
A title company is employed by a lender to collect payments on a deed of trust, what is the
title company called? - -Servicing agent
Permanent finance payments would include which of the following? - -Principal and
interest
What statement in an advertisement requires a full explanation? - -Only $5,000 down
, What law requires lenders to limit the amount of funds that can be held in reserves? -
-RESPA
Page | 4
The mortgagor is: - -The borrower
What is not an encumbrance? - -Warranty deed
Real estate loan usury rates are set by: - -State laws
Prorated taxes would be shown on the settlement statement as a: - -Credit to buyer,
debit to seller
A residential tenant with a month-to-month lease enjoys which leasehold estate? - -
Periodic tenancy
In real estate terms, an estate for years also may be called: - -A leasehold
Which of the following is not essential to a valid contract? - -monetary consideration
Which of the following cannot be a trustee? - -C.P.A.
An Arizona real estate licensee may not charge for document preparation according to: -
-Arizona Constitution Article XXVI
