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ARIZONA REAL ESTATE 2026 100% PASS
ASSURED EXAMINATION SOLUTIONS
John makes an offer to Joe, and Joe makes a
counter offer. Joe dies before the counter
offer is accepted. What is the contract
status?
A. Valid
B. Void
C. Enforceable
D. Bilateral - correct answer- B. Void
1031 Exchange - correct answer- A transaction
that, under provisions of Section 1031 of the
Internal Revenue Code, allows a taxpayer to
sell an investment property and purchase
another investment property in its place
without paying capital gains on the proceeds
from the sale.
1099-Misc - correct answer- The Internal
Revenue Service form that is used to report
various types of miscellaneous income earned
other than salary earned from an employer
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Abandonment of a Homestead - correct answer-
The loss of a homestead exemption if the owner
moves to another state, sells the property,
turns the property into a rental or no longer
occupies the home as a primary residence
Abutting - correct answer- Refers to parcels
that share a boundary
Acceleration Clause - correct answer- A clause
in loan documents that allows the lender to
call the note all due and payable if the
borrower breaches the terms
Accretion - correct answer- The gradual
addition of land by natural causes, such as
shoreline movements
Acre (in square feet) - correct answer- 43,560
square feet
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Acre Foot - correct answer- One foot of water
over the entire surface of an acre; contains
325,851 gallons of water
Active Management Area (AMA) - correct answer-
Areas within Arizona where water management
programs, such as restriction governing
groundwater use, are in place; requires
demonstration of Assured Water Supply
Actual Eviction - correct answer- The physical
removal of a tenant from a leased property
with the tenant relieved of any further
responsibility to pay rent
Actual Notice - correct answer- Express
knowledge of a fact (compared to Constructive
Notice, which is notice given by publication)
Ad Valorem - correct answer- A concept for
property taxes that means "according to value"
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Adequate Water Supply - correct answer- The
standard required from developers OUTSIDE of
an Active Management Area (AMA); if adequate
water supply cannot by demonstrated, the
developer must disclose this fact in all
advertising and promotional material
Adjustable Rate Mortgage (ARM) - correct
answer- A mortgage loan that has an interest
rate on the note that periodically adjusts
based on an index that reflects the cost to
the lender; also called Variable Rate Mortgage
Adjusted Basis - correct answer- The purchase
price of a property (basis) minus accumulative
depreciation, plus acquisition costs, plus
capital improvements; also called Adjusted
Purchase Price
Adjusted Sales Price - correct answer- Sales
price minus costs of sale (commission and
closing costs)
Administrator - correct answer- Court-
appointed personal representatives of an
ARIZONA REAL ESTATE 2026 100% PASS
ASSURED EXAMINATION SOLUTIONS
John makes an offer to Joe, and Joe makes a
counter offer. Joe dies before the counter
offer is accepted. What is the contract
status?
A. Valid
B. Void
C. Enforceable
D. Bilateral - correct answer- B. Void
1031 Exchange - correct answer- A transaction
that, under provisions of Section 1031 of the
Internal Revenue Code, allows a taxpayer to
sell an investment property and purchase
another investment property in its place
without paying capital gains on the proceeds
from the sale.
1099-Misc - correct answer- The Internal
Revenue Service form that is used to report
various types of miscellaneous income earned
other than salary earned from an employer
,`2 | P a g e
Abandonment of a Homestead - correct answer-
The loss of a homestead exemption if the owner
moves to another state, sells the property,
turns the property into a rental or no longer
occupies the home as a primary residence
Abutting - correct answer- Refers to parcels
that share a boundary
Acceleration Clause - correct answer- A clause
in loan documents that allows the lender to
call the note all due and payable if the
borrower breaches the terms
Accretion - correct answer- The gradual
addition of land by natural causes, such as
shoreline movements
Acre (in square feet) - correct answer- 43,560
square feet
,`3 | P a g e
Acre Foot - correct answer- One foot of water
over the entire surface of an acre; contains
325,851 gallons of water
Active Management Area (AMA) - correct answer-
Areas within Arizona where water management
programs, such as restriction governing
groundwater use, are in place; requires
demonstration of Assured Water Supply
Actual Eviction - correct answer- The physical
removal of a tenant from a leased property
with the tenant relieved of any further
responsibility to pay rent
Actual Notice - correct answer- Express
knowledge of a fact (compared to Constructive
Notice, which is notice given by publication)
Ad Valorem - correct answer- A concept for
property taxes that means "according to value"
, `4 | P a g e
Adequate Water Supply - correct answer- The
standard required from developers OUTSIDE of
an Active Management Area (AMA); if adequate
water supply cannot by demonstrated, the
developer must disclose this fact in all
advertising and promotional material
Adjustable Rate Mortgage (ARM) - correct
answer- A mortgage loan that has an interest
rate on the note that periodically adjusts
based on an index that reflects the cost to
the lender; also called Variable Rate Mortgage
Adjusted Basis - correct answer- The purchase
price of a property (basis) minus accumulative
depreciation, plus acquisition costs, plus
capital improvements; also called Adjusted
Purchase Price
Adjusted Sales Price - correct answer- Sales
price minus costs of sale (commission and
closing costs)
Administrator - correct answer- Court-
appointed personal representatives of an
