Arizona real estate pre-license final
exam questions and answers42
The basis on which real property taxes in Arizona are calculated is called
A. full cash value.
B. full market value.
C. limited property value.
D. equalized property value. - ANSWERS -A. full cash value.
The situation known as double escrow
A. is illegal in Arizona.
B. involves two escrows on a single property that close at the same time. C. arises whenever a
buyer makes a back-up offer on a property. (Your Answer)(Incorrect)
D. requires the involvement of two different agents each representing one of the transaction
parties.
E. Option 5 - ANSWERS -B. involves two escrows on a single property that close at the same
time.
Generally speaking, property taxes in Arizona are due on
A. December 31.
B. January 1.
C. November 1 and May 1.
D. October 1 and March 1. - ANSWERS -D. October 1 and March 1.
Unless waived by a principal, all negotiations on a listed property must be conducted
A. by the two principals.
,B. through the seller?s broker or that broker?s representative.
C. under the supervision of a licensed real estate attorney.
D. by the buyer?s agent. - ANSWERS -B. through the seller?s broker or that broker?s
representative.
The law requires a licensee representing a seller to present all offers
A. until the transaction closes.
B. until the seller accepts an offer.
C. until escrow funds have been deposited.
D. until told to stop by the seller. - ANSWERS -B. until the seller accepts an offer.
Q1) Which of the following ways of specializing is common in the real estate brokerage
business?
A. By type of mortgage financing required
B. By years of experience in the business
C. By type of property
D. By background of client - ANSWERS -C. By type of property
Q2) Which of the following is included in the legal concept of land?
A. A corn crop
B. A lake
C. A felled tree
D. An abandoned vehicle - ANSWERS -B. A lake
Q3) A property abuts a non-navigable stream. What does the owner own?
A. Land to the low-water mark
B. Underlying land to the middle of the waterway
,C. Land to the high-water mark
D. All water to the middle of the waterway - ANSWERS -B. Underlying land to the middle of the
waterway
Q4) A retailer installs special display counters to exhibit her products. At the end of the lease
term, the retailer moves to another state, leaving the counters in the store. At this point the
counters are considered which of the following?
A. trade fixtures, and therefore real property
B. trade fixtures and therefore personal property
C. real property, since the trade fixtures were abandoned
D. personal property that must be returned to the retailer - ANSWERS -C. real property, since
the trade fixtures were abandoned
Q5) How is a legal life estate created?
A. By an owner's voluntary grant
B. By operation of law
C. Through the four unities
D. Through a defeasible conveyance - ANSWERS -B. By operation of law
Q6) Which of the following is true of a homestead?
A. A homestead interest can be conveyed by one spouse
B. A homestead interest cannot be exempt from creditors
C. A homestead interest is a form of legal life estate
D. A homestead is any privately owned single-family residence - ANSWERS -C. A homestead
interest is a form of legal life estate
Q7) Three people have identical rights in a property, share an indivisible interest, but may sell or
transfer their interest without consent of the others. This type of ownership is
, A. joint tenancy.
B. tenancy by the entireties.
C. estate in severalty.
D. tenancy in common. - ANSWERS -D. tenancy in common.
Q8) A condominium estate is distinguished by
A. ownership of a share in an association and a condominium lease on the owned unit.
B. tenancy in common interest in airspace and common areas of the property.
C. fee simple ownership of a unit and an undivided share of the common areas.
D. fee simple ownership of an equal share of the entire property. - ANSWERS -C. fee simple
ownership of a unit and an undivided share of the common areas.
Q9) An easement by prescription requires that
A. the use be continuous, known, and permitted by the owner for a period of time.
B. the use be continuous, open, and hostile for a required period of time.
C. the owner of an adjoining property be landlocked.
D. the owner of the affected property be an adverse possessor. - ANSWERS -B. the use be
continuous, open, and hostile for a required period of time.
Q10) In a lien-theory state
A. liens are recorded in trusts as opposed to title records.
B. the lender records a lien while the borrower retains title to the mortgaged property.
C. liened properties are foreclosed by strict foreclosure.
D. trustees retain title during a mortgage period. - ANSWERS -B. the lender records a lien while
the borrower retains title to the mortgaged property.
exam questions and answers42
The basis on which real property taxes in Arizona are calculated is called
A. full cash value.
B. full market value.
C. limited property value.
D. equalized property value. - ANSWERS -A. full cash value.
The situation known as double escrow
A. is illegal in Arizona.
B. involves two escrows on a single property that close at the same time. C. arises whenever a
buyer makes a back-up offer on a property. (Your Answer)(Incorrect)
D. requires the involvement of two different agents each representing one of the transaction
parties.
E. Option 5 - ANSWERS -B. involves two escrows on a single property that close at the same
time.
Generally speaking, property taxes in Arizona are due on
A. December 31.
B. January 1.
C. November 1 and May 1.
D. October 1 and March 1. - ANSWERS -D. October 1 and March 1.
Unless waived by a principal, all negotiations on a listed property must be conducted
A. by the two principals.
,B. through the seller?s broker or that broker?s representative.
C. under the supervision of a licensed real estate attorney.
D. by the buyer?s agent. - ANSWERS -B. through the seller?s broker or that broker?s
representative.
The law requires a licensee representing a seller to present all offers
A. until the transaction closes.
B. until the seller accepts an offer.
C. until escrow funds have been deposited.
D. until told to stop by the seller. - ANSWERS -B. until the seller accepts an offer.
Q1) Which of the following ways of specializing is common in the real estate brokerage
business?
A. By type of mortgage financing required
B. By years of experience in the business
C. By type of property
D. By background of client - ANSWERS -C. By type of property
Q2) Which of the following is included in the legal concept of land?
A. A corn crop
B. A lake
C. A felled tree
D. An abandoned vehicle - ANSWERS -B. A lake
Q3) A property abuts a non-navigable stream. What does the owner own?
A. Land to the low-water mark
B. Underlying land to the middle of the waterway
,C. Land to the high-water mark
D. All water to the middle of the waterway - ANSWERS -B. Underlying land to the middle of the
waterway
Q4) A retailer installs special display counters to exhibit her products. At the end of the lease
term, the retailer moves to another state, leaving the counters in the store. At this point the
counters are considered which of the following?
A. trade fixtures, and therefore real property
B. trade fixtures and therefore personal property
C. real property, since the trade fixtures were abandoned
D. personal property that must be returned to the retailer - ANSWERS -C. real property, since
the trade fixtures were abandoned
Q5) How is a legal life estate created?
A. By an owner's voluntary grant
B. By operation of law
C. Through the four unities
D. Through a defeasible conveyance - ANSWERS -B. By operation of law
Q6) Which of the following is true of a homestead?
A. A homestead interest can be conveyed by one spouse
B. A homestead interest cannot be exempt from creditors
C. A homestead interest is a form of legal life estate
D. A homestead is any privately owned single-family residence - ANSWERS -C. A homestead
interest is a form of legal life estate
Q7) Three people have identical rights in a property, share an indivisible interest, but may sell or
transfer their interest without consent of the others. This type of ownership is
, A. joint tenancy.
B. tenancy by the entireties.
C. estate in severalty.
D. tenancy in common. - ANSWERS -D. tenancy in common.
Q8) A condominium estate is distinguished by
A. ownership of a share in an association and a condominium lease on the owned unit.
B. tenancy in common interest in airspace and common areas of the property.
C. fee simple ownership of a unit and an undivided share of the common areas.
D. fee simple ownership of an equal share of the entire property. - ANSWERS -C. fee simple
ownership of a unit and an undivided share of the common areas.
Q9) An easement by prescription requires that
A. the use be continuous, known, and permitted by the owner for a period of time.
B. the use be continuous, open, and hostile for a required period of time.
C. the owner of an adjoining property be landlocked.
D. the owner of the affected property be an adverse possessor. - ANSWERS -B. the use be
continuous, open, and hostile for a required period of time.
Q10) In a lien-theory state
A. liens are recorded in trusts as opposed to title records.
B. the lender records a lien while the borrower retains title to the mortgaged property.
C. liened properties are foreclosed by strict foreclosure.
D. trustees retain title during a mortgage period. - ANSWERS -B. the lender records a lien while
the borrower retains title to the mortgaged property.
