AZ REAL ESTATE EXAM SCRIPT 2026 FULL
QUESTIONS WITH VERIFIED ANSWERS
◉ Environmental Agency Regulators. Answer: EPA, oversees all
environmental issues
US Army Corps Engineer, navigable waters
ADEQ (under EPA)
◉ asbetos & lead based paint & UFFI. Answer: banned in 1978
◉ RESPA= RE Settlement Procedures Act. Answer: prohibits
kickbacks, 1974,
◉ RESPA doesn't apply to. Answer: commercial, 5+ units, seller
financing, seller assumptions, land, properties +25 acres
◉ Truth in Lending Act (Reg Z) protects consumers. Answer: 3 day
right of rescission for refinancing or deeds of trust, non compliance
violations $10000 per day,
◉ Home Mortgage Disclosure Act. Answer: purpose to eliminate
discriminatory practices in lending
,◉ Equal Opportunity Credit Act of 1975. Answer: prohibits
discriminatory practices in getting credit due to race, color, religion,
nation of origin, sex, also marital status, age and dependednce on
public assistance
◉ Fair Credit Reporting Act regulates credit bureaus. Answer: if
borrower is denied they have right to have name/address of credit
bureau and right to have erroros corrected, acess to file is limited,
◉ Civil Rights Act of 1866. Answer: property rights regardless of
color...to inherit, purchase, sell
◉ Civil Rights Act of 1964. Answer: prohibited discriminating in
programs recieving federal financial assistance
◉ Federal Fair Housing Act of 1968. Answer: prohibited
discriminating based on race, color, religion, national origin
Housing & Community Development Act in 1974 added- sex
◉ Fair Housing Ammendments Act of 1988. Answer: added further
provsions: disabled, AIDS/HIV, famiial status ( kids, pregnant),
seniors
◉ HUD Complains must be filed within a year. Answer: violation 1st
time $16000, 2nd time$65000
,doesn't need specific intent just that it occured
Dept of Justice civil suit:
pattern of discrimination 1st violation $50000, repeat not to exceed
$100000
◉ Fair Housing Laws do not apply to commercial properties.
Answer: ...
◉ American Disabilities Act. Answer: covers employers with 15+
employees
not tenants!
◉ Subdivisions regulated by AZ RE Code. Answer: to protect
consumers
◉ improved lot- has a building or will have one within 2 years.
Answer: NO rescission period, for example buying from a developer
to build a house
◉ lot split. Answer: dividing into less than 6 parcels, no SDR,
approved by zoning board
◉ unsubdivided land. Answer: 6+ parcels, each 36 acres or more up
to 160acres
, rescission period is 7 days IF inspected, 6m IF uninspected
◉ subdivided land =. Answer: 6 or more parcels each less than 36
acres, can be improved or unimproved
◉ bulk land =. Answer: in excess of 160 acres
◉ prior to getting a SDR builder may accept lot reservations and up
to $5000. Answer: fully refundable, buyer can cancel up until
purchase contract is excecuted
◉ cash flow/down payment = cash on cash. Answer: ...
◉ straight line depreciation. Answer: sale price- land value/27.5
years
**can not depreciate primary residence or cost of land
◉ capital gains. Answer: max tax rate 15%
purchase price + improvements - sales price - commissions- closing
costs and repairs
◉ primary residence capital gains tax. Answer: married up to
$500000 tax free, single $250000 tax free
QUESTIONS WITH VERIFIED ANSWERS
◉ Environmental Agency Regulators. Answer: EPA, oversees all
environmental issues
US Army Corps Engineer, navigable waters
ADEQ (under EPA)
◉ asbetos & lead based paint & UFFI. Answer: banned in 1978
◉ RESPA= RE Settlement Procedures Act. Answer: prohibits
kickbacks, 1974,
◉ RESPA doesn't apply to. Answer: commercial, 5+ units, seller
financing, seller assumptions, land, properties +25 acres
◉ Truth in Lending Act (Reg Z) protects consumers. Answer: 3 day
right of rescission for refinancing or deeds of trust, non compliance
violations $10000 per day,
◉ Home Mortgage Disclosure Act. Answer: purpose to eliminate
discriminatory practices in lending
,◉ Equal Opportunity Credit Act of 1975. Answer: prohibits
discriminatory practices in getting credit due to race, color, religion,
nation of origin, sex, also marital status, age and dependednce on
public assistance
◉ Fair Credit Reporting Act regulates credit bureaus. Answer: if
borrower is denied they have right to have name/address of credit
bureau and right to have erroros corrected, acess to file is limited,
◉ Civil Rights Act of 1866. Answer: property rights regardless of
color...to inherit, purchase, sell
◉ Civil Rights Act of 1964. Answer: prohibited discriminating in
programs recieving federal financial assistance
◉ Federal Fair Housing Act of 1968. Answer: prohibited
discriminating based on race, color, religion, national origin
Housing & Community Development Act in 1974 added- sex
◉ Fair Housing Ammendments Act of 1988. Answer: added further
provsions: disabled, AIDS/HIV, famiial status ( kids, pregnant),
seniors
◉ HUD Complains must be filed within a year. Answer: violation 1st
time $16000, 2nd time$65000
,doesn't need specific intent just that it occured
Dept of Justice civil suit:
pattern of discrimination 1st violation $50000, repeat not to exceed
$100000
◉ Fair Housing Laws do not apply to commercial properties.
Answer: ...
◉ American Disabilities Act. Answer: covers employers with 15+
employees
not tenants!
◉ Subdivisions regulated by AZ RE Code. Answer: to protect
consumers
◉ improved lot- has a building or will have one within 2 years.
Answer: NO rescission period, for example buying from a developer
to build a house
◉ lot split. Answer: dividing into less than 6 parcels, no SDR,
approved by zoning board
◉ unsubdivided land. Answer: 6+ parcels, each 36 acres or more up
to 160acres
, rescission period is 7 days IF inspected, 6m IF uninspected
◉ subdivided land =. Answer: 6 or more parcels each less than 36
acres, can be improved or unimproved
◉ bulk land =. Answer: in excess of 160 acres
◉ prior to getting a SDR builder may accept lot reservations and up
to $5000. Answer: fully refundable, buyer can cancel up until
purchase contract is excecuted
◉ cash flow/down payment = cash on cash. Answer: ...
◉ straight line depreciation. Answer: sale price- land value/27.5
years
**can not depreciate primary residence or cost of land
◉ capital gains. Answer: max tax rate 15%
purchase price + improvements - sales price - commissions- closing
costs and repairs
◉ primary residence capital gains tax. Answer: married up to
$500000 tax free, single $250000 tax free
