Arizona Real Estate Exam
1,491+ Practice Questions & Answers
Every question includes a detailed explanation. Organized by the 11 topics on the Arizona real estate salesperson exam.
Contracts
166 questions- Arizona has a state-mandated 'cooling-off period' for real estate purchase contracts:
- For a real estate contract in Arizona to be legally enforceable, it must:
- Under the Arizona Statute of Frauds, a real estate purchase contract must be:
- An Arizona buyer submits an offer with a contingency that financing must be secured within 10 days. The seller accepts. If the buyer cannot secure financing within 10 days, the result is:
- In Arizona, a counteroffer legally:
- The Arizona Residential Resale Purchase Contract requires sellers to provide the Seller's Property Disclosure Statement (SPDS) within:
- Under the doctrine of 'time is of the essence' in an Arizona contract, failing to close on the specified date means:
- An Arizona listing agreement gives a broker the right to sell a property, but the seller retains the right to sell it themselves without owing a commission. This is called a(n):
- Arizona law requires that contracts for the sale of real property include an adequate legal description. Which of the following is NOT an acceptable legal description?
- In an Arizona residential resale transaction, the buyer's inspection period is typically used to:
- A buyer who defaults on an Arizona purchase contract without a valid contingency may lose:
- In Arizona, the Seller's Property Disclosure Statement (SPDS) must be provided:
- Under Arizona contract law, which of the following is NOT a required element of a valid real estate contract?
- An Arizona buyer makes an offer on a home. The seller responds with different terms. This seller response is legally:
- The Arizona Association of REALTORS® Residential Purchase Contract provides that earnest money deposited in escrow is:
- A buyer includes an inspection contingency in their purchase contract. If the inspection reveals a major defect and the seller refuses to repair it, the buyer may:
- Which document is commonly used in Arizona to amend an existing purchase contract after it has been executed?
- Under the Statute of Frauds, real estate contracts in Arizona must be:
- In Arizona, which of the following BEST describes the legal effect of 'time is of the essence' in a purchase contract?
- A real estate contract that is 'voidable' means:
- An option contract in Arizona gives the optionee (buyer) the:
- If a buyer's offer is accepted by the seller, but the buyer later discovers the agent forged the buyer's signature, the contract is:
- Under Arizona contract law, consideration in a real estate purchase contract is MOST commonly provided by the:
- An Arizona seller accepts a buyer's offer. Before escrow closes, the property is destroyed by fire. Under the doctrine of equitable conversion, who bears the risk of loss?
- A contingency in a real estate contract serves to:
- In Arizona, a buyer who enters into a purchase contract while legally intoxicated may later claim the contract is:
- Under the Arizona Association of REALTORS® Residential Purchase Contract, the buyer's right to conduct a property inspection is addressed in the:
- Under Arizona law, when a buyer delivers an earnest money check to the broker, and the check is returned by the bank for insufficient funds, the broker MUST:
- An Arizona purchase contract includes a financing contingency that states the buyer must obtain loan approval within 10 days. On day 11, the buyer has not obtained approval. The MOST likely outcome is:
- Which of the following BEST describes a land contract (contract for deed) in Arizona?
- An Arizona buyer makes a full-price offer on a property. Before the seller signs, the seller's agent calls the buyer's agent to say the seller will accept. The contract is:
- Under the Arizona AAR Residential Purchase Contract, the default remedy if a seller breaches by failing to close is:
- A buyer is purchasing an Arizona home and signs an 'AS-IS Addendum.' This means:
- In Arizona, an offer becomes a binding contract when:
- A buyer and seller in Arizona mutually agree to extend the closing date by 14 days after the original closing date passes without a closing. This extension should be documented by:
- In Arizona, the SPDS (Seller's Property Disclosure Statement) is typically delivered to the buyer:
- A contract clause stating that upon buyer default, the seller may keep the earnest money as full compensation and may not pursue additional damages is known as a:
- In Arizona, the standard residential purchase contract is published by:
- The Arizona Residential Purchase Contract's inspection period allows the buyer to:
- Under Arizona contract law, 'time is of the essence' means:
- An Arizona buyer submits a written offer. The seller makes material changes to the offer and signs it. This is legally considered:
- In Arizona, earnest money deposited into the broker's trust account must be deposited within:
- A contract that is 'void' in Arizona is:
- Under Arizona's Statute of Frauds, which contract MUST be in writing to be enforceable?
- An option contract in Arizona gives the buyer:
- In Arizona, a real estate contract signed under duress is:
- A contingency clause in an Arizona purchase contract:
- Under Arizona law, 'mutual assent' in a contract means:
- An Arizona purchase contract includes a financing contingency. The buyer cannot obtain financing and fails to notify the seller by the contingency deadline. What is the result?
- The Arizona Buyer's Inspection Notice and Seller's Response (BINSR) is used after the inspection period to:
- In Arizona, a listing agreement is a contract between the seller and the:
- An exclusive right-to-sell listing agreement in Arizona entitles the listing broker to a commission if:
- An exclusive agency listing in Arizona differs from an exclusive right-to-sell listing because:
- The remedy of 'specific performance' in an Arizona real estate contract dispute means:
- In Arizona, an open listing allows the seller to:
- In Arizona, an exclusive-right-to-sell listing agreement means:
- Under the Arizona AAR contract, if the seller fails to close escrow on the scheduled closing date through no fault of the buyer, the buyer may:
- An Arizona purchase contract is signed on March 1 with a 10-day inspection period. The inspection period expires on:
- Under Arizona law, for a real estate contract to be enforceable, it must:
- In an Arizona purchase contract, when the buyer submits an offer and the seller changes a term before signing, this creates:
- An Arizona purchase contract earnest money deposit is typically held by:
- Which clause in an Arizona purchase contract allows the buyer to cancel and receive a refund of earnest money if they cannot obtain financing?
- In Arizona, the right of first refusal gives a party:
- What is the legal effect of an option contract in Arizona?
- An Arizona contract that is 'void' means that:
- A 'voidable' contract in Arizona is one that:
- Under an Arizona land contract (contract for deed), when does the buyer receive legal title?
- An 'as-is' clause in an Arizona purchase contract means:
- Mutual assent in a contract means:
- In Arizona, the statute of limitations for breach of a written real estate contract is:
- An addendum to an Arizona purchase contract:
- What is the difference between an assignment and a novation in contract law?
- In Arizona, when a buyer submits an earnest money check but instructs the broker to hold it without cashing it, the broker should:
- The parol evidence rule in contract law provides that:
- In an Arizona purchase contract, 'time is of the essence' means:
- What happens to an offer in Arizona if the offeree dies before accepting?
- Liquidated damages in an Arizona real estate contract typically means:
- In Arizona, specific performance as a remedy for breach of a real estate contract means:
- An Arizona real estate contract signed by a 16-year-old is:
- In Arizona, consideration in a real estate contract must be:
- An Arizona real estate contract obtained by fraud is:
- What is the purpose of an earnest money deposit in an Arizona purchase contract?
- An Arizona purchase contract becomes binding when:
- The term 'rescission' in Arizona contract law means:
- Under Arizona law, a listing agreement must include:
- The Buyer's Advisory in Arizona is a document that:
- In Arizona, the BINSR (Buyer's Inspection Notice and Seller's Response) is used during:
- In an Arizona Residential Resale Real Estate Purchase Contract, the cure period after a notice of default is typically:
- In an Arizona purchase contract, if the appraisal comes in below the agreed purchase price, the buyer typically may:
- The Arizona Association of Realtors (AAR) Residential Lease Agreement is primarily designed for:
- Under Arizona's Residential Landlord and Tenant Act, a landlord must return a security deposit within:
- A 'holdover tenant' in Arizona is one who:
- Under Arizona's Residential Landlord and Tenant Act, a landlord must provide written notice before entering a tenant's dwelling for non-emergency repairs. The required notice period is:
- In an Arizona commercial lease, a 'gross lease' means:
- In an Arizona commercial lease, a 'triple net (NNN) lease' means:
- A percentage lease in Arizona commercial real estate bases rent on:
- An Arizona lease agreement must include all of the following to be enforceable EXCEPT:
- The covenant of quiet enjoyment in an Arizona lease means:
- In an Arizona purchase contract, the phrase 'time is of the essence' applies to:
- An Arizona lease with a 'right of first refusal' to purchase means the tenant:
- An Arizona 'bump clause' (or 'kick-out clause') in a contract contingent on the buyer's home sale allows the seller to:
- In Arizona, the 'integration clause' in a purchase contract states that:
- Equitable title in an Arizona real estate transaction refers to:
- In Arizona, a 'seller's right to cancel' provision in a listing agreement allows the broker to:
- An Arizona real estate licensee who is also a party to a transaction (buying or selling their own property) must disclose their licensed status:
- An offer to purchase that includes a deadline of 'accepted by 5 PM today' and is not accepted by that time:
- Under Arizona law, a 'material misrepresentation' in a real estate transaction is one that:
- In Arizona, an 'offer to purchase' is defined as:
- In Arizona, a 'backup offer' on a property already under contract is:
- The Arizona Residential Landlord and Tenant Act applies to:
- In Arizona, the maximum security deposit a landlord may charge for an unfurnished residential unit is:
- Under Arizona's Residential Landlord and Tenant Act, a landlord who wrongfully withholds a security deposit may be liable to the tenant for:
- In Arizona, constructive eviction occurs when:
- An Arizona seller receives two offers simultaneously. What is the seller's obligation?
- Under Arizona law, a seller must respond to a buyer's repair request within how many days under the standard AAR purchase contract?
- An Arizona tenant who wishes to terminate their month-to-month lease must provide the landlord with how many days' notice?
- An Arizona landlord who wants to terminate a month-to-month tenancy without cause must provide the tenant with:
- In Arizona, if a seller fails to provide the SPDS (Seller's Property Disclosure Statement) within the time required by the purchase contract, the buyer may:
- A 'novation' in Arizona real estate contract law means:
- In Arizona, property management agreements must be:
- In Arizona, can a seller accept an offer from a backup buyer while the primary contract is still in effect?
- An Arizona lease that includes a 'lease with option to purchase' gives the tenant:
- Under Arizona law, an agreement between a buyer and seller to reduce the stated purchase price on a sales contract while a separate undisclosed payment is made to the seller is:
- In Arizona, which of the following is a VALID way to terminate a listing agreement?
- An Arizona seller who accepts earnest money and then refuses to close may be required by a court to:
- An Arizona commercial lease that has a 'co-tenancy clause' provides:
- An Arizona commercial lease includes a 'continuous operation clause.' This means the tenant:
- In Arizona, a commercial 'gross-up' provision in a lease means:
- In Arizona, an 'escalation clause' in a commercial lease typically provides for:
- Under Arizona's Residential Landlord and Tenant Act, a tenant who exercises their legal right to repair-and-deduct for a habitability issue must first:
- An Arizona real estate purchase contract that is 'executory' means:
- In an Arizona commercial lease negotiation, a 'Letter of Intent' (LOI) is typically:
- Arizona's statute of frauds requires that real estate contracts be in writing. The purpose of this requirement is to:
- In Arizona, a 'contingency' in a purchase contract is a condition that must be satisfied for:
- In Arizona, a 'mutual release' of a purchase contract with earnest money dispute must be:
- An Arizona seller who provides a Property Disclosure Statement (SPDS) that omits known material defects is liable for:
- The purpose of the 'buyer's walk-through inspection' in an Arizona residential closing is to:
- An Arizona 'escalation clause' in a purchase offer allows the buyer to:
- In an Arizona transaction, 'seller concessions' on the Closing Disclosure appear as a credit to the buyer. What effect do they have on the seller's net proceeds?
- An Arizona lease that automatically converts to a month-to-month tenancy when the fixed term expires (absent renewal notice) is called a:
- In an Arizona residential purchase, the seller's obligation to pay real estate commissions is established by:
- An Arizona seller who is transferred out of state and must sell their home quickly may accept a below-market offer. This situation is called a:
- Under Arizona's Residential Landlord and Tenant Act, what must a landlord provide with a written notice of non-renewal sent to a tenant?
- In Arizona, a purchase agreement that includes a 'liquidated damages clause' specifying the earnest money as the seller's sole remedy:
- Arizona's Landlord and Tenant Act provides that a landlord may terminate a tenancy with 5-day notice for:
- An Arizona purchase contract signed on December 26 has a 10-business-day inspection period. In Arizona, which days are typically NOT counted as business days?
- In Arizona, a contract to sell real property 'as is' where the seller conceals a known defect is:
- Under Arizona's Residential Landlord and Tenant Act, a landlord's failure to maintain habitable conditions gives the tenant the right to:
- An Arizona contract addendum is valid only if:
- An Arizona residential lease agreement under the RLTA must allow a tenant to terminate with proper notice for all of the following EXCEPT:
- In Arizona commercial real estate, a 'tenant improvement allowance' (TIA) is:
- An Arizona commercial lease with a 'right to expand' clause gives the tenant:
- In Arizona, 'constructive eviction' requires the tenant to demonstrate that the landlord's conduct:
- An Arizona REALTORS® Purchase Contract includes a default clause specifying that the seller may retain the earnest money as liquidated damages. What must the seller do to trigger this remedy?
- Under Arizona's RLTA, a landlord must provide the tenant with a written move-in inventory within how many days of occupancy to be able to make deductions from the security deposit for pre-existing conditions?
- In Arizona, a purchase contract that is contingent on the buyer obtaining financing must specify:
- Under Arizona law, if a buyer exercises a contingency and cancels a purchase contract in good faith, the earnest money deposit:
- In Arizona, a 'counter-offer' legally:
- The Arizona Association of REALTORS® Residential Purchase Contract includes a 'BINSR' provision that allows the buyer to:
- In Arizona, an option contract gives the optionee (buyer):
- In Arizona, 'time is of the essence' clauses in real estate contracts mean:
- Arizona's 'Statute of Frauds' requires real estate contracts to be in writing to be enforceable. This requirement applies to:
- In an Arizona purchase contract, 'liquidated damages' clauses that designate the earnest money as the seller's remedy for buyer default:
- In Arizona, 'specific performance' as a remedy for breach of a real estate contract:
- Under Arizona law, a 'novation' in a real estate contract occurs when:
- Under Arizona law, a real estate purchase contract can be 'rescinded' (versus 'terminated') when:
Arizona License Law
164 questions- Which state agency is responsible for regulating real estate licensees in Arizona?
- How many pre-license education hours must an Arizona salesperson applicant complete before sitting for the state exam?
- The Arizona real estate licensing exam consists of how many total questions?
- What is the minimum passing score required on each portion of the Arizona real estate licensing exam?
- How often must an Arizona real estate licensee renew their license?
- How many continuing education hours must an Arizona licensee complete per renewal cycle?
- Who appoints the Arizona Department of Real Estate Commissioner?
- In Arizona, earnest money deposits must be deposited into a trust account within how many business days of acceptance?
- Which of the following activities would require a real estate license in Arizona?
- Under Arizona law, a real estate salesperson may receive compensation:
- Arizona's ADRE regulations require that all real estate advertising identify the:
- An Arizona broker who maintains a trust account must keep records of all trust account transactions for a minimum of:
- Which of the following is a disciplinary action the ADRE Commissioner can impose on a licensee?
- In Arizona, a broker may place a licensee on 'inactive' status. While inactive, that licensee may:
- Arizona requires real estate licensees to disclose their license status when:
- Under Arizona law, which of the following is an example of commingling?
- An Arizona associate broker (employed broker) differs from a designated broker in that an associate broker:
- A real estate licensee in Arizona is found guilty of making a material misrepresentation to a client. Which ADRE action is most likely?
- Under ADRE's Commissioner's Rules, a broker must provide new salesperson employees with a written agreement outlining:
- Which of the following would NOT be required to hold an Arizona real estate license?
- How many hours of pre-license education must an applicant complete before sitting for the Arizona real estate salesperson exam?
- Arizona real estate licenses must be renewed every:
- How many continuing education hours must an Arizona licensee complete each 2-year renewal period?
- Who appoints the Arizona Real Estate Commissioner?
- An Arizona licensee deposits earnest money in a trust account. Under Commissioner's Rules, the deposit must be made within:
- Which of the following activities requires an Arizona real estate license?
- Under Arizona law, a real estate salesperson's license must be:
- The Arizona Department of Real Estate (ADRE) is authorized to impose which of the following disciplinary actions against a licensee?
- An Arizona broker who changes their designated broker status must notify ADRE within:
- Under Arizona Commissioner's Rules, a broker's trust account records must be retained for a minimum of:
- Which license type allows an Arizona licensee to operate as an independent real estate business and supervise salespersons?
- An Arizona salesperson who has not yet affiliated with a broker is said to hold a:
- Arizona's real estate license law is found in which title of Arizona Revised Statutes?
- Which of the following BEST describes 'limited dual representation' under Arizona license law?
- What is the purpose of the Arizona Real Estate Recovery Fund?
- An associate broker in Arizona differs from a designated broker primarily because the associate broker:
- Under Arizona law, a real estate licensee who engages in 'commingling' has:
- A broker who converts client trust funds to personal use is guilty of:
- ADRE may issue a 'cease and desist' order against an unlicensed person engaging in real estate activities. This order is:
- A licensee's designated broker supervises the licensee's real estate activities. If the licensee commits fraud, the designated broker may be subject to disciplinary action by ADRE if the broker:
- Under Arizona Commissioner's Rules, a licensee must provide a written agency disclosure to a client:
- Which of the following BEST describes 'unprofessional conduct' as defined under Arizona license law?
- An Arizona real estate licensee who wishes to operate as an independent contractor for their broker must:
- Under Arizona law, the maximum amount that may be paid from the Real Estate Recovery Fund per licensee for all judgments is:
- A real estate licensee in Arizona is required to disclose their license status when:
- Which of the following actions is permissible for an Arizona salesperson holding an inactive license?
- A licensed real estate salesperson in Arizona wants to advertise using a team name. Under ADRE rules, the advertisement must:
- Under Arizona law, a real estate broker who holds trust funds belonging to clients must maintain a separate trust account. Which of the following is PROHIBITED in a trust account?
- ADRE enforcement investigations may be initiated by:
- An Arizona salesperson completes the required 90 hours of pre-license education but fails the state licensing exam on the first attempt. The candidate may:
- A designated broker in Arizona decides to close their brokerage. What must they do with client trust funds?
- Under Arizona license law, which of the following is an example of 'constructive fraud'?
- An Arizona broker receives a net listing from a seller, which means the broker keeps everything above a set amount as commission. This practice is:
- Under Arizona law, a licensee who receives compensation from both the buyer and the seller in the same transaction must:
- Which of the following activities is EXEMPT from Arizona real estate licensing requirements?
- Under Arizona law, a real estate salesperson license expires how often and must be renewed by what deadline?
- What is the minimum number of years of active real estate experience required before an Arizona salesperson may apply for a broker license?
- An Arizona broker applicant must complete how many pre-license education hours before applying for a broker license?
- A salesperson who wishes to change employing brokers in Arizona must:
- The ADRE's Real Estate Recovery Fund is designed to:
- An Arizona salesperson operating without a current, valid license is subject to:
- Which of the following individuals is EXEMPT from Arizona real estate licensing requirements?
- Under Arizona law, how many continuing education hours must a salesperson complete to renew a license?
- The ADRE Commissioner in Arizona is:
- A real estate license in Arizona may be placed on 'inactive' status when:
- An Arizona real estate licensee who has a felony conviction may:
- An Arizona broker must maintain trust account records for at least:
- In Arizona, a broker's trust account must be maintained in:
- A real estate licensee in Arizona who engages in 'commingling' has:
- An Arizona real estate licensee may receive compensation for a referral:
- The ADRE's authority to discipline a licensee includes which of the following actions?
- An Arizona salesperson wishes to advertise using only their first name and a phone number. Under ADRE rules, this advertisement:
- A 'designated broker' in Arizona is:
- When an Arizona real estate licensee moves their office to a new location, they must:
- Under Arizona law, a salesperson may accept a listing under which circumstance?
- Under Arizona law, a real estate broker may pay a referral fee to:
- ADRE may issue a 'Cease and Desist' order to:
- An Arizona broker who owns a real estate business as an LLC must:
- An Arizona real estate licensee who is also a mortgage loan originator must comply with licensing requirements under:
- An Arizona broker who fails to supervise affiliated licensees may face ADRE discipline for:
- An Arizona real estate license must be renewed every:
- How many continuing education hours must an Arizona salesperson complete to renew their license?
- The ADRE Commissioner in Arizona is appointed by:
- A person who wishes to become an Arizona real estate broker must have been actively licensed as a salesperson for at least:
- Under Arizona law, an unlicensed person who performs acts requiring a real estate license may be subject to a civil penalty of up to:
- An Arizona real estate salesperson's license is held by:
- An Arizona licensee who changes employing brokers must notify the ADRE within:
- Which of the following is NOT a requirement for an initial Arizona real estate salesperson license?
- The Arizona Real Estate Recovery Fund is used to:
- An Arizona designated broker is responsible for:
- In Arizona, a real estate licensee may NOT pay a referral fee to:
- The ADRE audits broker trust accounts to ensure compliance. A broker who fails to maintain proper trust account records may face:
- Which of the following does NOT require an Arizona real estate license?
- A real estate licensee in Arizona who is convicted of a felony must:
- Under Arizona law, a broker must maintain transaction records for a minimum of:
- The ADRE's authority to discipline licensees includes all of the following EXCEPT:
- An Arizona real estate team name must:
- A 'cold call' by an Arizona licensee to a homeowner who is on the Do Not Call Registry is:
- In Arizona, a licensee acting as a principal (buying or selling their own property) must:
- An Arizona licensee who wants to operate as an independent broker must obtain a:
- The purpose of the ADRE's pre-license education requirement is to:
- An Arizona licensee who fails to renew their license by the expiration date may:
- Which of the following statements about the Arizona Real Estate Recovery Fund is TRUE?
- An Arizona real estate license is NOT required for which of the following?
- An Arizona licensee who represents a buyer in a transaction where the seller is offering 'no buyer agent commission' should:
- What is the primary purpose of Arizona's real estate license law?
- In Arizona, a salesperson's license status when their broker's license is revoked is:
- An Arizona real estate broker who operates a branch office must:
- The ADRE requires that an Arizona real estate licensee's advertising must:
- Which of the following is a ground for license revocation or suspension by the ADRE in Arizona?
- An Arizona licensee who knowingly makes a false statement on a license application may face:
- Under Arizona law, the designated broker of a property management company must:
- If an Arizona real estate salesperson disagrees with a broker policy, they should:
- The ADRE has the authority to conduct which of the following?
- Which of the following best describes the ADRE's role in Arizona real estate?
- An Arizona licensee who receives a gift of significant value from a service vendor in connection with a client's transaction must:
- An Arizona broker's trust account must be reconciled:
- A real estate licensee in Arizona who provides property management services and holds tenant security deposits must maintain those deposits in:
- In Arizona, a broker who is found to have knowingly participated in a fraudulent transaction faces:
- The Arizona Real Estate License Law (A.R.S. Title 32, Chapter 20) is primarily:
- An Arizona designated broker who fails to properly supervise their agents can be disciplined by the ADRE even if the designated broker personally did nothing wrong. This reflects the principle of:
- In Arizona, 'commingling' refers to the illegal practice of:
- An Arizona real estate licensee must disclose a personal bankruptcy to the ADRE:
- Under Arizona law, a real estate license applicant who has a prior criminal conviction:
- The Arizona REALTORS® Code of Ethics differs from the Arizona License Law in that:
- In Arizona, a licensee found guilty of 'misrepresentation' is subject to which of the following?
- An Arizona salesperson wants to invest in a property being listed by their brokerage. They must:
- An ADRE complaint investigation in Arizona may result in which of the following outcomes?
- An Arizona property manager who collects rents and manages finances for a property owner is acting as the owner's:
- In Arizona, a designated broker must ensure that their brokerage's written policies and procedures address:
- Arizona law requires a real estate licensee to provide a written agency disclosure to a prospective buyer or seller at which point?
- Which of the following is an EXEMPT activity under Arizona's real estate license law?
- An Arizona real estate licensee's obligation to complete continuing education includes a mandatory 3-hour course on:
- In Arizona, an 'associate broker' is a licensee who:
- The Arizona Sunset Review process, which evaluates state agencies including the ADRE, is designed to:
- The ADRE's real estate license exam passing score in Arizona is:
- In Arizona, a real estate licensee may pay a referral fee to a licensed Arizona real estate broker for referring a client. The referral fee:
- An Arizona real estate brokerage that wants to offer property management services must ensure that its:
- An Arizona real estate licensee who uses social media for real estate advertising must ensure that the advertising:
- In Arizona, a broker who receives an earnest money check must deposit it in the trust account within:
- An Arizona licensee who refers a client to another licensee in a different city should:
- In Arizona, which of the following must be prominently displayed in every real estate office?
- An Arizona real estate licensee who has their license placed on 'inactive status' may:
- The minimum age to obtain an Arizona real estate salesperson license is:
- An Arizona broker who wants to move their office must notify the ADRE of the new address within:
- Under Arizona law, a real estate licensee acting as a buyer's agent who receives an earnest money deposit must give it to their:
- An Arizona real estate broker who hires a licensed salesperson as an 'independent contractor' rather than an employee:
- An Arizona licensee who has their license placed 'on suspension' may:
- In Arizona, a 'designated broker' may supervise how many branch offices without being physically present?
- In Arizona, 'discrimination' in real estate transactions can result in which types of legal action?
- An Arizona salesperson who leaves one brokerage to join another must ensure that all pending transactions are handled according to:
- Under Arizona law, the ADRE may impose a civil penalty of up to how much per violation on a licensee?
- An Arizona real estate licensee who acts as a property manager must ensure that trust accounts used for security deposits are:
- The Arizona Real Estate Commissioner is appointed by:
- Under Arizona law, a licensee's duty to disclose known material facts to a buyer:
- Arizona requires that all real estate licensees complete how many hours of continuing education every two years for license renewal?
- In Arizona, a 'branch office' operated by a real estate brokerage:
- Under Arizona law, a real estate licensee who pays an unlicensed person a referral fee for directing business to the licensee is:
- Under Arizona law, when a real estate licensee discovers that a buyer client has provided false information on a mortgage application, the licensee should:
- The Arizona Recovery Fund provides compensation to:
- In Arizona, a real estate licensee who receives a written complaint from a client has how many days to respond to an ADRE complaint notice?
- When an Arizona real estate broker closes their brokerage, they must:
- The Arizona Department of Real Estate (ADRE) public website provides which of the following that real estate consumers should know about?
- Which Arizona agency is responsible for licensing real estate professionals?
Finance
144 questions- Arizona is classified as a 'lien theory' state. This means that when a borrower takes out a mortgage:
- The primary security instrument used in Arizona real estate transactions is the:
- In an Arizona Deed of Trust, who holds bare legal title to the property?
- An Arizona homebuyer is obtaining an FHA loan. The minimum down payment required is typically:
- Which type of loan would be most beneficial for an Arizona veteran purchasing a primary residence with no down payment?
- When a lender requires a borrower to pay private mortgage insurance (PMI), it is typically because the borrower's loan-to-value (LTV) ratio is:
- An Arizona buyer assumes the seller's existing mortgage. The buyer's lender requires a 'due-on-sale' clause to be enforced. This means:
- Regulation Z (Truth in Lending Act) requires lenders to disclose to borrowers the:
- An Arizona adjustable-rate mortgage (ARM) with a '5/1' structure means:
- In Arizona, the process by which a lender takes ownership of a property after the borrower defaults under a Deed of Trust is called:
- Arizona is classified as which type of mortgage state?
- The primary security instrument used in Arizona real estate transactions is:
- Under a deed of trust in Arizona, who holds legal title to the property during the loan period?
- An Arizona homebuyer obtains a $280,000 mortgage at 7% annual interest. What is the first month's interest payment?
- The Truth-in-Lending Act (TILA) requires lenders to disclose the Annual Percentage Rate (APR) because the APR:
- A buyer purchases a home for $350,000 with a 20% down payment. What is the loan-to-value (LTV) ratio?
- Which type of loan is insured by the Federal Housing Administration (FHA) and is popular with Arizona first-time buyers due to its low down payment requirement?
- In Arizona, a lender who forecloses on a deed of trust through the trustee's sale process (non-judicial foreclosure) is generally:
- Discount points paid by a buyer at closing on an Arizona home loan have the effect of:
- A homebuyer in Arizona pays 2 discount points on a $240,000 loan. How much do the points cost?
- Arizona's anti-deficiency statute (A.R.S. § 33-729) generally prohibits a lender from obtaining a deficiency judgment after a trustee's sale (non-judicial foreclosure) on:
- In Arizona, the trustee's sale (non-judicial foreclosure) process under a deed of trust requires a minimum notice period before the sale of:
- A 'due-on-sale' clause in a mortgage or deed of trust requires:
- A buyer in Arizona obtains a $320,000 adjustable-rate mortgage (ARM) with an initial rate of 5.5%. The loan has a 2/2/5 cap structure. The MAXIMUM rate after the first adjustment is:
- Under RESPA (Real Estate Settlement Procedures Act), a lender must provide the buyer with a Loan Estimate within:
- A buyer assumes an existing $200,000 mortgage on an Arizona property. The purchase price is $290,000. The buyer pays the difference in cash. What is the buyer's cash requirement at closing (excluding all other closing costs)?
- An Arizona buyer secures a VA loan to purchase a home. VA loans are guaranteed by the Department of Veterans Affairs and require:
- In a fully amortizing mortgage, each monthly payment consists of:
- Private mortgage insurance (PMI) is typically required on a conventional loan in Arizona when the loan-to-value (LTV) ratio exceeds:
- A buyer pays $315,000 for a home with a 10% down payment. The lender charges a 1% origination fee. What is the dollar amount of the origination fee?
- An Arizona borrower obtains a loan where the interest rate can change periodically based on an index. This is called a:
- The Truth in Lending Act (TILA) requires lenders to disclose the:
- In Arizona, a deed of trust differs from a mortgage primarily because:
- Private Mortgage Insurance (PMI) is typically required when a conventional loan's loan-to-value ratio (LTV) exceeds:
- A buyer in Arizona assumes an existing mortgage. If the assumption is 'qualified,' this means:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in credit decisions based on:
- Under RESPA, a Loan Estimate must be provided to the borrower within:
- A balloon mortgage in Arizona is characterized by:
- Discount points paid on an Arizona mortgage loan:
- An Arizona lender who violates RESPA by accepting kickbacks for referrals is subject to:
- A VA loan in Arizona is available to eligible veterans and is characterized by:
- An FHA loan in Arizona requires a minimum down payment of:
- The debt-to-income (DTI) ratio used by lenders in Arizona measures:
- A USDA Rural Development loan in Arizona:
- Regulation Z (Truth in Lending) requires that the APR disclosed to borrowers must include:
- In Arizona, a non-judicial (trustee's sale) foreclosure typically takes approximately:
- What does LTV stand for in mortgage lending?
- An Arizona buyer obtains a conventional loan with a 10% down payment. The lender will likely require:
- A discount point in mortgage financing is equal to:
- An adjustable-rate mortgage (ARM) has an initial rate of 4.5% with a 2/2/6 cap structure. This means the rate can increase a maximum of:
- Which federal law requires lenders to provide borrowers with a Loan Estimate within 3 business days of receiving a loan application?
- A buyer in Arizona is obtaining an FHA loan. The minimum down payment required is:
- What is amortization in mortgage lending?
- A VA loan in Arizona is available to:
- A 'due-on-sale' clause in a mortgage means:
- A conventional conforming loan in Arizona must meet the underwriting guidelines of:
- The secondary mortgage market in Arizona primarily functions to:
- Which type of mortgage allows the borrower to pay only interest for a specified period, with principal payments beginning later?
- A reverse mortgage in Arizona is available to homeowners who are:
- In Arizona, a deed of trust involves how many parties?
- Arizona uses primarily deeds of trust rather than mortgages for real property financing because:
- Under Arizona law, the redemption period after a trustee's sale (non-judicial foreclosure) is:
- Arizona's anti-deficiency statute protects borrowers from a deficiency judgment after a trustee's sale on:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in lending based on all EXCEPT:
- A 'balloon mortgage' in Arizona is characterized by:
- A conforming loan limit in Arizona is set by:
- A USDA Rural Development loan in Arizona is designed for:
- An Arizona lender must provide a Closing Disclosure to a borrower at least how many business days before closing?
- Which type of mortgage index is commonly used for ARM loans?
- In Arizona, a lender who charges an interest rate above the legal maximum may be guilty of:
- A 'lock-in' in Arizona mortgage lending means:
- Private Mortgage Insurance (PMI) can be canceled on a conventional loan in Arizona when:
- A home equity line of credit (HELOC) in Arizona is best described as:
- A construction-to-permanent loan in Arizona converts from a construction loan to a:
- A 'short sale' in Arizona occurs when:
- Mortgage insurance premium (MIP) on FHA loans differs from conventional PMI in that:
- A 'bridge loan' in Arizona real estate is typically used to:
- Debt-to-income (DTI) ratio in Arizona mortgage underwriting compares:
- An Arizona buyer using a VA loan is exempt from:
- In Arizona, a 'buydown' mortgage involves:
- The Dodd-Frank Act's Ability-to-Repay (ATR) rule requires Arizona lenders to:
- When a seller 'carries back' financing in an Arizona sale, this is also known as:
- The primary purpose of RESPA (Real Estate Settlement Procedures Act) in Arizona is to:
- An Arizona 'wraparound mortgage' involves:
- An Arizona borrower with a 620 credit score applying for a conventional loan would most likely:
- An Arizona seller who pays 3% of the buyer's closing costs is said to be offering:
- The Federal Reserve's monetary policy affects Arizona mortgage rates primarily because:
- An Arizona lender who 'red flags' an appraisal as inflated and orders a second appraisal is exercising:
- The appraisal independence requirements under TILA (Dodd-Frank) prevent:
- In Arizona, a 'purchase money mortgage' is one that:
- A 'blanket mortgage' in Arizona is secured by:
- The 'margin' on an adjustable-rate mortgage in Arizona is:
- An Arizona 'graduated payment mortgage' (GPM) features:
- The 'trigger terms' under Regulation Z (TILA) that require full APR disclosure in an Arizona advertisement include:
- A 'jumbo loan' in Arizona is a mortgage that:
- An Arizona lender who refuses to lend in certain zip codes without consideration of individual creditworthiness is likely guilty of:
- What is the primary difference between a fixed-rate and adjustable-rate mortgage from a risk perspective?
- The term 'points' in mortgage financing always refers to:
- In Arizona, a lender who fails to comply with TRID disclosure requirements may face:
- An Arizona buyer's credit report shows a 'charge-off.' This means:
- In Arizona, the 'due diligence' period in a commercial real estate transaction typically allows the buyer to:
- A lender's 'rate sheet' in Arizona shows 'par rate' pricing. What does 'par' mean?
- An Arizona first-time homebuyer who exceeds the FHA loan limit may:
- The Consumer Financial Protection Bureau (CFPB) in Arizona has authority over:
- An Arizona 'wraparound mortgage' requires the seller to:
- The 'Good Faith Estimate' that was previously required under RESPA has been replaced by the:
- In Arizona, 'private mortgage insurance' (PMI) premiums are typically paid by:
- Arizona's limitation on mortgage deficiency judgments after judicial foreclosure applies to:
- A 'hard money loan' in Arizona real estate is characterized by:
- In Arizona, seller-paid closing costs (concessions) on a conventional loan are limited to a percentage of the purchase price based on the buyer's LTV. For LTVs greater than 90%, the maximum seller contribution is:
- The 'annual percentage rate' (APR) on an Arizona mortgage is typically HIGHER than the note rate because:
- In Arizona, a 'subject-to' purchase in real estate means:
- An Arizona lender's 'yield spread premium' (YSP) historically referred to:
- In Arizona, a 'note' (promissory note) in real estate financing is:
- In Arizona, 'mortgage fraud for profit' typically involves:
- An Arizona lender who originates loans and immediately sells them in the secondary market is engaging in the:
- A 'non-recourse' loan in Arizona means that in the event of default, the lender:
- In Arizona, the notice of trustee's sale must be published and posted at least how many days before the sale?
- Arizona's 'one-action rule' in mortgage enforcement means a lender:
- In Arizona, a seller who carries back a second mortgage for a buyer is assuming the risk that:
- In Arizona, a lender's 'pre-qualification' differs from 'pre-approval' in that:
- The annual mortgage insurance premium (MIP) on an FHA loan is typically:
- An Arizona borrower who has a mortgage with a 'prepayment penalty' will be charged an additional fee if they:
- In Arizona, a 'HELOC' (home equity line of credit) compared to a 'home equity loan' (second mortgage) differs primarily in that:
- A '2-1 buydown' mortgage in Arizona temporarily reduces the borrower's interest rate by:
- In Arizona, a lender must provide a Loan Estimate to a mortgage applicant within how many business days of receiving a complete application?
- An Arizona borrower who refinances their primary residence has a 3-day right of rescission under TILA, which means they can cancel the refinance within:
- An Arizona homebuyer who is a veteran with a 100% service-connected disability is exempt from paying:
- In Arizona, 'seller-paid points' on a buyer's mortgage loan serve to:
- The Fair Credit Reporting Act (FCRA) in Arizona gives mortgage applicants the right to:
- In Arizona, a 'second mortgage' differs from a 'home equity loan' in that:
- In Arizona, mortgage loan originators (MLOs) who work for non-bank lenders must be licensed under:
- An Arizona FHA-approved lender who originates FHA loans is subject to oversight by:
- In Arizona, 'predatory lending' practices that are illegal include:
- Under Arizona's anti-deficiency statutes, A.R.S. § 33-729, protection generally applies to:
- In Arizona, a 'wraparound mortgage' (or 'all-inclusive trust deed') involves:
- The Truth in Lending Act (TILA) requires lenders to disclose the Annual Percentage Rate (APR) because:
- In Arizona, a 'hard money' loan is typically characterized by:
- The 'loan-to-value ratio' (LTV) on a $400,000 property with a $320,000 loan is:
- A 'purchase money mortgage' in Arizona is significant for anti-deficiency purposes because:
- In Arizona, a 'contract for deed' (also called 'land contract' or 'installment land contract') is a financing arrangement where:
- A 'VA loan' benefit for eligible veterans in Arizona includes which significant advantage?
- The 'debt-to-income ratio' (DTI) that most conventional lenders use as a maximum for qualified mortgages is approximately:
- In Arizona, a 'balloon payment' mortgage requires the borrower to:
Real Estate Math
142 questions- A buyer in Arizona purchases a home for $420,000 with a 20% down payment. What is the amount of the buyer's mortgage loan?
- An Arizona property sold for $350,000. The total commission rate is 6%. The listing broker and buyer's broker split the commission 50/50. How much does each broker receive?
- An Arizona homeowner wants to net $280,000 after paying a 6% commission. What is the minimum sale price needed?
- A rectangular Arizona lot measures 150 feet wide by 200 feet deep. What is the area in square feet?
- An Arizona investor paid $500,000 for a rental property. After one year, the property has appreciated 4%. What is the new value of the property?
- An Arizona property has an annual property tax bill of $3,600. The tax is paid in two installments. The seller is closing on October 1. Using a 365-day proration, how many days of taxes has the seller already 'used' (January 1 through September 30)?
- A seller wants to net $275,000 after paying a 6% commission. What must the property sell for?
- A 1-acre lot sells for $87,120. What is the price per square foot? (1 acre = 43,560 sq ft)
- A property is assessed at 10% of its $420,000 market value. The tax rate is $8.50 per $100 of assessed value. What is the annual property tax?
- A buyer purchases a home for $310,000. The lender requires a 5% down payment. The buyer also pays 1.5 discount points. What is the total amount the buyer pays in points?
- A rectangular lot measures 150 feet wide and 200 feet deep. A buyer pays $12 per square foot. What is the purchase price?
- A property sells for $385,000. The listing broker receives a 5.5% commission and splits it 50/50 with the buyer's broker. The selling salesperson receives 60% of the buyer's broker's share. How much does the selling salesperson earn?
- An Arizona property has a market value of $475,000. It is assessed at 10% of market value, and the tax rate is $9.20 per $100 of assessed value. What is the annual property tax?
- A property sells for $540,000. The commission is 5.5% total. The listing broker and buyer's broker split it 55%/45%. How much does the buyer's broker receive?
- A seller nets $312,000 after paying a 5% commission. What was the sale price of the property?
- An Arizona rental property generates $2,400 per month in rent. The gross rent multiplier (GRM) for comparable properties is 135. What is the estimated value?
- A buyer in Arizona closes on March 15. The annual property taxes are $4,380 and are paid in arrears. Using a 365-day year, how much does the seller owe the buyer in a tax proration (January 1 through March 14)?
- A commercial property has an NOI of $72,000. If similar properties are selling at a 7.5% cap rate, what is the indicated market value?
- A home sells for $385,000. The listing broker and selling broker each earn 3% commission. How much total commission is paid at closing?
- An investor buys a rental property for $450,000 with a 20% down payment. What is the loan amount?
- A property generates $36,000 annual gross rent. The vacancy and credit loss is 5%. What is the effective gross income (EGI)?
- A buyer's loan has a principal balance of $320,000 at 6% annual interest. What is the first month's interest portion of the payment?
- A property's net operating income (NOI) is $48,000 and the cap rate is 8%. What is the estimated property value using the income approach?
- A seller pays a 6% commission and $8,000 in other closing costs and nets $250,000. What was the approximate sale price?
- A rectangular lot measures 150 feet wide and 200 feet deep. What is the lot size in acres? (1 acre = 43,560 sq ft)
- Property taxes on an Arizona home valued at $325,000 are assessed at 10% of full cash value with a tax rate of $12 per $100 of assessed value. What is the annual tax bill?
- A home was purchased 4 years ago for $280,000. It has appreciated 5% per year using simple appreciation. What is the current value?
- The total commission on a $420,000 sale is 6%. The listing side receives 50% and the selling side 50%. The listing salesperson's split with the broker is 60/40 in the salesperson's favor. How much does the listing salesperson receive?
- A duplex generates $1,500/month per unit. Vacancy is 5%. Annual operating expenses are $8,000. What is the annual NOI?
- An Arizona agent earns a 3% commission on a $550,000 commercial sale. The agent's broker takes a 30% desk fee off the top before splitting 60/40 with the agent. How much does the agent receive?
- A buyer wants to make an offer that gives the seller a net of $295,000 after paying a 5.5% commission. What price should the buyer offer?
- A property is assessed at 10% of its $480,000 market value. The tax rate is $9.50 per $100 of assessed value. What is the annual tax?
- A loan amortizes over 30 years. The monthly payment factor is $5.99 per $1,000 borrowed. The loan amount is $280,000. What is the monthly payment?
- A property sold for $340,000. The buyer made a 15% down payment. What is the LTV ratio on the mortgage?
- A one-acre parcel sells for $87,120. How much is that per square foot? (1 acre = 43,560 sq ft)
- An investor paid $500,000 for a property generating $45,000 NOI. What is the going-in cap rate?
- An Arizona escrow requires the seller to prorate property taxes. The annual tax is $3,600. The closing is on April 30. How much does the seller owe for taxes (January 1 through April 30 = 120 days)? Use a 360-day year.
- A property has a NOI of $60,000. A buyer wants a 7.5% return. What is the maximum price the buyer should pay?
- A home sells for $425,000. The commission rate is 6%. How much is the total commission?
- A rectangular lot measures 150 feet wide by 200 feet deep. What is its area in acres? (1 acre = 43,560 sq ft)
- A buyer obtains a $300,000 mortgage at 5% annual interest. What is the first month's interest payment?
- A property is assessed at 10% of its full cash value of $500,000. If the tax rate is $12 per $100 of assessed value, what is the annual tax?
- A seller nets $280,000 after paying a 6% commission. What was the sale price?
- A property management company charges 8% of collected rents. If the monthly rent roll is $45,000, what is the monthly management fee?
- A building cost $600,000 to build and has a useful economic life of 40 years. Using straight-line depreciation, what is the annual depreciation amount?
- A buyer pays 2.5 points on a $320,000 loan. How much does the buyer pay in points?
- A property has a gross annual income of $120,000, a vacancy rate of 5%, and operating expenses of $40,000. What is the net operating income (NOI)?
- A home appreciated 8% from last year. If it is worth $378,000 today, what was it worth one year ago?
- A salesperson earns 3% on the first $200,000 of the sale price and 2.5% on amounts above $200,000. If the property sold for $380,000, what is the salesperson's commission?
- A commercial property has an NOI of $85,000. If it sells at a 7% cap rate, what is the sale price?
- A property is 2.5 acres. How many square feet is this?
- A buyer's loan amount is $240,000. The lender charges an origination fee of 1.5%. How much is the origination fee?
- An investment property sold for $500,000. The investor paid $350,000 five years ago. What is the percentage gain?
- Annual property taxes are $4,800. The closing is on March 1 (day 60 of the year). Using the 365-day method with taxes paid in arrears, how much does the seller owe in prorated taxes?
- A property has a monthly NOI of $5,000. At a 6% annual cap rate, what is the value?
- A title insurance premium of $750 is paid at closing for a $300,000 property. What is the rate per $1,000 of coverage?
- A 30-year mortgage has monthly payments of $1,610. The loan balance is $280,000. How much is the interest portion of the first payment at a 6% annual interest rate?
- A house is listed at $425,000. The buyer offers $410,000, and they agree on $417,500. The commission rate is 6%. What is the total commission?
- An Arizona investor purchases a 10-unit building for $1,200,000. Each unit rents for $1,200/month. What is the annual GRM?
- A lot measures 80 feet wide by 120 feet deep and sold for $7.50 per square foot. What was the sale price?
- A property manager manages 40 units at $950/month average rent. The vacancy rate is 7.5%. What is the effective gross monthly income?
- A buyer obtains a 90% LTV loan on a $380,000 property. What is the down payment?
- A home listed for $450,000 receives an offer for 97% of list price. What is the offer amount?
- A commission of $18,000 is split 55/45 between the listing and selling sides. The listing agent then splits 60/40 with their broker. How much does the listing agent receive?
- How many square feet are in a quarter section of land?
- A property's tax assessed value is $185,000. The tax rate is $14.50 per $1,000 of assessed value. What are the annual taxes?
- A broker sold a property for $525,000 and received a 5.5% commission. The broker splits 50% with the cooperating broker, who then pays their salesperson 60%. How much does the cooperating salesperson earn?
- A $240,000 loan at 7.5% for 30 years has a monthly payment factor of $6.99 per $1,000. What is the monthly payment?
- A home was purchased 3 years ago for $320,000 and appreciated at 5% per year (compounded). What is its current value?
- An Arizona investor buys a rental property for $250,000. Annual rent is $24,000, operating expenses are $8,000, and annual mortgage payments are $14,400. What is the annual cash flow before taxes?
- A lot that is 1/4 of a mile wide by 1/2 of a mile deep contains how many acres?
- A buyer makes a $15,000 earnest money deposit on a $375,000 home. What percentage of the purchase price is the deposit?
- A 6% commission is split 50/50 between the listing and selling brokers. The selling broker splits 70% with their salesperson. If the sale price is $460,000, how much does the selling salesperson receive?
- A property is depreciated using straight-line depreciation. The building (not land) cost $180,000 and has a 27.5-year useful life for tax purposes. What is the annual depreciation deduction?
- The capitalization rate for a property is found by dividing:
- A buyer obtains an $180,000 loan at 6% interest for 30 years. If the monthly payment factor is $5.996 per $1,000, what is the total amount paid over the life of the loan?
- A property's assessed value is $225,000 and the property tax rate is 1.2%. What are the annual property taxes?
- A seller wants to net $200,000 after paying a 5% commission and $3,500 in other closing costs. What must the property sell for?
- A rectangular building measures 60 feet by 90 feet and has 2 floors. What is the total square footage?
- An Arizona investor paid $400,000 for a property and wants a 9% return on investment. What annual net income is required?
- A quarter section of land is sold at $2,500 per acre. What is the total sale price?
- If a listing is taken at a 6.5% commission and the listing office retains 3% while the selling office receives 3.5%, what does each office earn on a $285,000 sale?
- An Arizona homeowner borrows $85,000 for home improvements at 8% interest. What is the monthly interest in the first month?
- A property sold for $310,000 five years ago. If it appreciated 4% annually (simple interest), what is it worth today?
- A property has monthly gross rent of $3,600. At a GRM of 120, what is its estimated value?
- A title insurance premium of $1,200 covers a $480,000 property. What is the rate per $1,000 of coverage?
- An escrow closing is set for September 15. Property taxes of $3,650 per year are paid in arrears. Using a 365-day year, how much does the seller owe in prorated taxes for January 1 through September 14?
- A buyer wants a 30-year mortgage at 7% interest. Monthly payment factor is $6.653 per $1,000. If their maximum monthly payment is $2,200, what is the maximum loan amount?
- A commercial space leases at $28 per square foot per year NNN. The space is 4,500 sq ft. What is the monthly base rent?
- A broker earns a 6% commission. The commission is split equally between two offices. Each office then pays their agent 55%. If the sale price is $520,000, how much does each agent receive?
- A 1031 exchange requires a replacement property to be identified within how many days after the sale of the relinquished property?
- A buyer purchases a $450,000 home and puts 20% down. The conventional loan is at 6.5% for 30 years. What is the LTV at origination?
- An Arizona investor's property has a cap rate of 8% and an annual NOI of $48,000. The investor is offered $650,000 for the property. Should they sell based on the cap rate?
- An Arizona property was purchased for $280,000 and sold for $350,000. Capital gains (simplified) are $70,000. If the federal capital gains tax rate is 15%, how much tax is owed?
- A buyer can afford a maximum monthly payment of $2,400. If taxes are $200/month and insurance is $125/month, what is the maximum PITI payment, and how much is available for principal and interest (P&I)?
- A full section of land contains how many acres?
- An Arizona property has a 90% LTV loan of $315,000. What was the purchase price?
- If a property's value decreased 12% from last year and is currently worth $396,000, what was last year's value?
- An Arizona rental property generates $24,000 annually. Operating expenses total $9,600. The property is valued at $200,000. What is the overall capitalization rate?
- Using the cost approach, a property has land valued at $80,000 and improvements that cost $320,000 to build but have depreciated 25%. What is the estimated value?
- An Arizona investor purchases a property for $400,000 with $100,000 down payment. The annual cash flow is $8,000. What is the cash-on-cash return?
- A seller must net $240,000 after paying a 6% commission. What must the property sell for? (Round to the nearest dollar)
- An Arizona property has annual gross income of $96,000, vacancies of 8%, and operating expenses of $32,000. If the cap rate is 7%, what is the value?
- An Arizona broker has gross commission income of $480,000. They pay $192,000 to agents as commission splits. What percentage of gross income did agents receive?
- A buyer's monthly gross income is $7,500. Using a 28% front-end (housing) ratio, what is the maximum PITI payment they can afford?
- In an Arizona transaction, annual property taxes are $5,040. Closing occurs on June 30 (day 181 of the year). Using 365 days and taxes paid in arrears, the seller owes how much in prorated taxes?
- An Arizona property has a potential gross income of $108,000, a 6% vacancy rate, and $36,000 in operating expenses. If properties in the area sell at a 7.5% cap rate, what is the estimated value?
- A property is purchased for $220,000 with a $22,000 down payment. If it appreciates to $275,000, what is the return on equity (based on original equity)?
- A commercial tenant leases 3,000 sq ft at $22/sq ft/year NNN. Common area maintenance (CAM) is $4/sq ft/year. What are the total annual lease costs?
- A lender requires a maximum 43% debt-to-income (DTI) ratio. A borrower has monthly debt payments of $750 and gross monthly income of $5,800. Can they add a mortgage payment of $1,200?
- A 20-unit Arizona apartment building has an average monthly rent of $1,100 and an 8% vacancy rate. Annual operating expenses are $85,000. At a 6.5% cap rate, what is the property's value?
- In Arizona, an FHA loan on a $340,000 property with 3.5% down payment requires an upfront MIP of 1.75%. What is the total upfront MIP amount?
- An Arizona agent earns a 3% commission on the selling side of a $495,000 transaction and receives 60% of their side. What does the agent personally earn?
- A commercial property with an NOI of $125,000 is offered at a 7% cap rate. What is the asking price?
- An Arizona buyer qualifies for a maximum loan with a payment factor of $7.69 per $1,000 at 8% for 30 years. If their maximum P&I payment is $1,846, what is their maximum loan?
- A seller paid $185,000 three years ago for a property now worth $240,000. The adjusted basis after $15,000 in improvements is $200,000. What is the taxable gain?
- A 6-unit apartment building rents for $1,400/month per unit. Expenses are 38% of effective gross income. The vacancy rate is 5%. At a 7.5% cap rate, what is the value?
- A buyer obtains a $275,000 mortgage. The origination fee is 1%, the appraisal fee is $600, the title insurance is $1,800, and other closing costs are $2,400. What are total closing costs?
- An Arizona property has a tax rate of 10.5 mills (0.0105). The property is assessed at 10% of its $480,000 full cash value. What are the annual taxes?
- An Arizona land parcel is the SW 1/4 of the SE 1/4 of Section 12. How many acres does it contain?
- A buyer wants to put 20% down on a $385,000 home. They also need to pay 2% of the loan amount in closing costs. What is the total cash the buyer needs at closing?
- An apartment property has a gross scheduled income of $150,000, a 6% vacancy, and expenses of $55,000. If similar properties sell at a 7% cap rate and a 10x EGIM, what does the income approach indicate as value?
- An Arizona investor needs a 10% cash-on-cash return. If they invest $80,000 as a down payment, what annual cash flow is required?
- A property sold for $365,000. The 6% commission is split 50/50. The listing agent receives 60% of the listing side, and the selling agent receives 55% of the selling side. How much more does the listing agent earn than the selling agent?
- An Arizona rental property is purchased for $280,000. Annual gross rent is $26,400. What is the gross rent multiplier (using annual income)?
- How many square feet are in a half section of land?
- A 12-unit apartment building sells for $1,440,000. Annual gross rents are $120,000. What is the Gross Rent Multiplier (GRM) using annual rents?
- An Arizona homeowner makes $200,000 in insurance claim after a fire destroys their property. They paid $350,000 for the property 5 years ago (land value $80,000; building $270,000). After receiving the insurance payment and rebuilding costs of $180,000, what is their approximate net position?
- An Arizona buyer takes out a $350,000 mortgage at 6.75% for 30 years. The monthly payment factor is $6.49 per $1,000. What is the total interest paid over the life of the loan?
- An Arizona property's market value is $420,000. Arizona residential property is assessed at 10% of full cash value. If the tax rate is 1.3%, what are the annual property taxes?
- A real estate agent earns $48,000 in commissions in one year. If they work 8 months of the year with an average of 2 closings per month, what is their average commission per closing?
- A $400,000 home depreciates 4% per year using straight-line depreciation over 25 years. What is the value after 10 years?
- A lot has a frontage of 75 feet on the street. The standard lot depth in the subdivision is 125 feet. The lot sells for $62,500. What is the price per square foot?
- A property sells for $485,000. The listing broker charges a 6% commission, split 50/50 with the buyer's broker. The listing salesperson receives 60% of the listing broker's share. How much does the listing salesperson earn?
- A buyer obtains a 30-year fixed-rate mortgage for $360,000 at 7% annual interest. What is the approximate monthly interest charge for the first month?
- An Arizona investor purchases a rental property for $320,000. Annual gross rents are $36,000, and annual expenses (taxes, insurance, maintenance, management) total $14,400. What is the property's cap rate?
- A commercial building has 15,000 square feet of leasable space. If 12,750 square feet is currently occupied, what is the vacancy rate?
- A seller wants to net $275,000 after paying a 5.5% commission and $8,500 in closing costs. What minimum price must the property sell for?
- An Arizona home sold for $425,000. The seller purchased the home 5 years ago for $320,000. After paying a 5% commission ($21,250) and $8,500 in other selling costs, what was the seller's net profit before taxes?
- A property has an assessed value of $180,000. The city tax rate is $12.50 per $1,000 of assessed value, and the county tax rate is $8.75 per $1,000. What is the total annual property tax?
- An investor purchases a property for $200,000 and makes $25,000 in improvements. If the property then sells for $280,000 and the investor pays a 5% commission, what is the return on investment (ROI)?
- An Arizona investor wants to exchange a property worth $550,000 (original cost basis $200,000) in a 1031 exchange. The replacement property costs $620,000. How much additional cash ('boot') must the investor contribute?
Property Ownership
137 questions- Arizona is a community property state. Under Arizona community property law, which of the following is generally considered community property?
- In Arizona, spouses who hold title as 'community property with right of survivorship' benefit from:
- Two unrelated individuals own an Arizona property as joint tenants. One owner dies. The surviving owner:
- A property owner in Arizona has tenancy in common with another person. The owner dies. Their interest in the property:
- An easement appurtenant in Arizona involves:
- The government's right to take private property in Arizona for public use — with just compensation — is known as:
- Under Arizona law, a person who openly, continuously, and exclusively occupies another's land for the statutory period may claim title through:
- A deed in Arizona that provides the GREATEST protection to a buyer with warranties against all prior claims (even those before the grantor owned the property) is a:
- In Arizona, a 'quitclaim deed' conveys:
- A deed transfers ownership of Arizona real property when it is:
- Arizona is a community property state. Under Arizona community property law, which of the following is considered separate property?
- Arizona allows married couples to hold title as 'community property with right of survivorship.' The primary advantage of this form of ownership is:
- Which form of co-ownership in Arizona requires all owners to have equal shares and includes the right of survivorship?
- In Arizona, tenants in common differ from joint tenants in that tenants in common:
- Under Arizona law, a fee simple estate is BEST described as:
- A life estate in Arizona grants the life tenant:
- A developer in Arizona grants a homeowners association the authority to enforce CC&Rs. These restrictions are an example of:
- In Arizona, the prior appropriation doctrine governs water rights. Under this doctrine:
- Personal property that has been permanently attached to real property and is treated as real property is known as:
- Under Arizona community property law, a married person may NOT sell, encumber, or convey community real property without:
- In Arizona, the term 'appurtenance' refers to:
- A prescriptive easement in Arizona is acquired by:
- Which of the following is an example of a statutory lien in Arizona?
- In Arizona, a homeowner's association (HOA) lien for unpaid assessments is generally:
- In Arizona, 'separate property' that is intentionally mixed with community property so that it can no longer be traced is said to have been:
- A deed in Arizona is considered delivered when:
- In Arizona, which type of deed is most commonly used by sheriffs or trustees in foreclosure sales?
- Arizona's Groundwater Management Act (GMA) primarily regulates:
- In Arizona, a buyer purchasing property in a designated Active Management Area (AMA) should be aware that:
- Arizona is a community property state. Community property generally includes property:
- In Arizona, tenancy in common means that each co-owner:
- Joint tenancy in Arizona requires which four unities?
- Arizona community property with right of survivorship allows:
- A fee simple absolute estate in Arizona:
- A life estate in Arizona terminates:
- Arizona water rights differ from riparian rights because Arizona follows the:
- An easement appurtenant in Arizona:
- A deed restriction (restrictive covenant) in an Arizona subdivision:
- Adverse possession in Arizona requires continuous, open, and hostile use for a period of:
- In Arizona, a condominium owner holds:
- A cooperative (co-op) differs from a condominium because in a cooperative:
- An Arizona property owner has a license to use a neighbor's land. Unlike an easement, this license is:
- Emblements in Arizona real estate refers to:
- In Arizona, property acquired by a spouse through inheritance during marriage is:
- An Arizona homeowner's association (HOA) assessment lien is generally considered:
- Allodial ownership in the United States means:
- A prescriptive easement in Arizona is similar to adverse possession in that it requires:
- A deed that conveys property 'to John for life, then to Jane' creates what type of estate for Jane?
- Real property in Arizona includes all of the following EXCEPT:
- Arizona is a community property state. Which of the following is considered separate property?
- In Arizona, when a married couple holds title as 'community property with right of survivorship,' what happens when one spouse dies?
- Under Arizona law, a joint tenancy requires all four unities. Which of the following is NOT one of the four unities of joint tenancy?
- A fee simple absolute estate is best described as:
- In Arizona, a life estate grants the life tenant:
- The Arizona homestead exemption protects a homeowner's primary residence from:
- What distinguishes real property from personal property?
- A fixture in Arizona real estate is best defined as:
- In Arizona, tenants in common:
- An easement appurtenant in Arizona benefits:
- In Arizona, what happens to community property when one spouse dies without a will?
- Which form of co-ownership in Arizona automatically prevents one owner from willing their interest to someone other than the co-owner?
- A condominium owner in Arizona owns:
- Arizona's Planned Community Act governs:
- Adverse possession in Arizona requires continuous, open, and hostile use of another's property for:
- Riparian rights in Arizona govern:
- In Arizona, the prior appropriation doctrine for water rights means:
- An encumbrance on real property in Arizona is best described as:
- In Arizona, a mechanic's lien can be filed by:
- In Arizona, a time-share interest is best described as:
- A deed restriction that discriminates based on race in Arizona is:
- Accretion in Arizona refers to:
- Avulsion in real estate refers to:
- In Arizona, when a property owner voluntarily gives up property rights to the government without compensation, this is called:
- A license (in property law) in Arizona differs from an easement in that:
- An easement in gross in Arizona benefits:
- Severance damages in Arizona eminent domain proceedings compensate a property owner for:
- In Arizona, the bundle of rights theory holds that real property ownership consists of rights including all of the following EXCEPT:
- Fixtures in an Arizona real estate sale are generally:
- In Arizona, a mobile home (manufactured home) permanently affixed to real property the owner also owns can be:
- The Uniform Condominium Act provisions adopted in Arizona govern:
- In Arizona, a 'cooperative' form of housing ownership means residents:
- Under Arizona law, a property owner's right to exclude others is limited by:
- In Arizona, common areas in a condominium project are typically owned as:
- In Arizona, a 'beneficiary deed' (also called a transfer on death deed) allows a property owner to:
- In Arizona, dower and curtesy rights:
- A 'fee simple defeasible' estate in Arizona is one that:
- Under Arizona law, a spouse must sign the deed when selling:
- The doctrine of 'after-acquired title' in Arizona means:
- A 'leasehold estate' in Arizona gives the tenant:
- In Arizona, personal property included in a real estate sale should be itemized:
- An Arizona property owner who grants an easement to a neighbor for a driveway should ensure the easement is:
- In Arizona, a property owned by a married couple that is titled 'John and Jane Smith, husband and wife' without further language is presumed to be:
- What is the primary advantage of holding title as 'community property with right of survivorship' versus regular 'community property' in Arizona?
- In Arizona, the 'right of entry' (also called a 'power of termination') is associated with which type of estate?
- A 'possibility of reverter' is associated with which type of estate in Arizona?
- In Arizona, which of the following is considered real property?
- Trade fixtures in Arizona commercial real estate are:
- In Arizona, an 'encroachment' on real property means:
- An Arizona property owner who allows a utility company to install power lines over their land without a formal written easement is creating a:
- In Arizona, the homestead exemption for a primary residence protects up to:
- A licensed Arizona real estate agent in the state who holds a salesperson license cannot:
- In Arizona, 'separate property' that a spouse brings into a marriage:
- An Arizona purchaser who buys a lot in a subdivision that includes a platted easement for a future road must:
- In Arizona, 'riparian rights' along the Colorado River are governed primarily by:
- The concept of 'constructive notice' from a recorded deed means:
- An Arizona property owner who voluntarily transfers their real property to a nonprofit conservation organization by deed while retaining the right to live there is creating a:
- In Arizona, mineral rights can be separated from surface rights through a process called:
- A 'possessory lien' in Arizona differs from other liens in that:
- In Arizona, co-owners of real property who disagree about the property's use or sale may file a legal action for:
- Arizona's community property system means that debts incurred by one spouse during marriage for family purposes are typically:
- A 'sandwich lease' in Arizona refers to:
- In Arizona, a 'ground lease' is typically a long-term lease of:
- The concept of 'waste' in property law means:
- The distinction between 'actual possession' and 'constructive possession' in Arizona property law is:
- In Arizona, when real property is transferred by will, the property passes through the estate and the recipient is called a:
- An Arizona homeowner installs a solar panel system. The solar panels are most likely considered:
- In Arizona, a 'tenancy at will' is created when:
- In Arizona, a 'color of title' claim in adverse possession allows a claimant who has defective title (a flawed deed) to:
- An Arizona property that is located in a 'homeowner's association (HOA) community' has what type of encumbrances attached?
- In Arizona, a 'license' in property law can be terminated at will because:
- In Arizona, the term 'appurtenances' includes all of the following EXCEPT:
- In Arizona, a 'reversion' is the future interest that returns to the:
- An Arizona commercial property is sold in a '1031 exchange.' The investor avoids immediate capital gains tax by:
- Arizona's 'Landlord and Tenant Act' requires landlords of residential properties to maintain the premises in a 'habitable' condition. 'Habitable' means the property must have:
- In Arizona, 'lateral support' rights mean a property owner:
- In Arizona, the 'public trust doctrine' reserves certain lands and waters for public use, which can affect real estate development along:
- A 'tenancy at sufferance' in Arizona arises when:
- In Arizona, 'subsurface rights' include the right to:
- In Arizona, 'community property with right of survivorship' differs from standard community property in that:
- A 'tenancy in common' in Arizona differs from 'joint tenancy' primarily because:
- In Arizona, a 'condominium' owner holds:
- The concept of 'bundle of rights' in real property ownership includes which of the following?
- In Arizona, a 'lis pendens' recorded against a property means:
- Arizona recognizes 'prescriptive easements' when a party uses another's land:
- Under Arizona law, a 'homestead exemption' protects:
- In Arizona, 'adverse possession' requires that possession be:
- In Arizona, a 'conservation easement' held by a land trust or governmental entity:
Agency
135 questions- In Arizona, when a broker represents both the buyer and seller in the same transaction, this is known as:
- Arizona requires that dual agency (limited representation) be disclosed and consented to:
- A listing agent's PRIMARY fiduciary duty runs to the:
- In Arizona, an agent who shows their own listing to an unrepresented buyer is typically acting as a:
- Which document in Arizona formally establishes a buyer's agency relationship with a brokerage?
- Under Arizona agency law, the duty of confidentiality means an agent must NOT disclose:
- When does an agency relationship typically terminate in a real estate transaction?
- An Arizona licensee acting as a 'transaction broker' owes which of the following duties?
- A salesperson working for Broker A shows a property listed by Broker B. The salesperson is acting as:
- Under Arizona law, which of the following is an agent's duty of disclosure to their principal?
- In Arizona, which scenario creates an undisclosed dual agency — a violation of license law?
- The Arizona Association of REALTORS® Residential Resale Purchase Contract requires agency disclosure:
- In Arizona, at what point must a licensee provide an agency disclosure to a prospective buyer or seller?
- Which of the following BEST describes a buyer's agent in Arizona?
- A seller's agent in Arizona owes which of the following duties to an unrepresented buyer?
- Under Arizona law, limited dual representation requires:
- When a salesperson working for Broker A shows a listing held by Broker A to a buyer who is a client of Broker A, this MOST likely creates:
- Which fiduciary duty requires an agent to place the client's interests above all others, including the agent's own interests?
- An Arizona agent learns that their seller client's property has an unpermitted addition. The agent MUST:
- The agency relationship between a broker and client is MOST commonly created by:
- An agent who acts beyond the authority granted by the principal is acting:
- In a transaction brokerage (non-agency) relationship in Arizona, the licensee owes the customer:
- Subagency in Arizona occurs when:
- An agency relationship can be terminated by all of the following EXCEPT:
- A seller's agent who reveals the seller's minimum acceptable price to a buyer without authorization has breached the duty of:
- An Arizona buyer's agent discovers that the seller has received a higher competing offer. The buyer's agent MUST:
- In Arizona, which document is used to establish a formal buyer representation relationship and define the broker's compensation?
- An Arizona listing agent learns from the seller that the home's roof has leaked for years but has been cosmetically patched. The agent shows the home to a buyer without disclosing the roof history. This is MOST likely a violation of the agent's duty of:
- In Arizona, 'apparent authority' arises when:
- A seller's agent owes the seller all of the following duties EXCEPT:
- When a designated broker in Arizona assigns one salesperson to represent the buyer and a different salesperson from the same brokerage to represent the seller in the same transaction, this is known as:
- A seller tells their listing agent: 'Do not tell any buyer that we are divorcing and need to sell quickly.' The agent SHOULD:
- Under Arizona agency law, ratification of an agent's unauthorized act occurs when:
- Which of the following BEST describes a 'non-exclusive buyer broker agreement' in Arizona?
- A listing agent who, without authorization, tells the buyer that the seller will accept $20,000 below list price has breached the duty of:
- In Arizona, an agent representing a buyer in a transaction where the buyer's brokerage also holds the listing (in-house sale) MUST:
- An agent's duty to 'account' for funds and property means the agent must:
- In Arizona, a seller's agent owes which of the following duties to a buyer who is NOT represented?
- Arizona's dual agency (limited representation) requires:
- An Arizona designated agency arrangement means:
- Under Arizona law, when must agency disclosure be provided to a consumer?
- An agent who discloses the seller's minimum acceptable price to the buyer without authorization has violated which fiduciary duty?
- In Arizona, a buyer's broker agreement that is exclusive means:
- Subagency in Arizona refers to:
- The fiduciary duty of 'obedience' requires an agent to:
- An Arizona listing broker has a duty to present all offers to the seller:
- A transaction broker in Arizona:
- In an Arizona in-house sale (buyer and seller both represented by the same brokerage), the broker must:
- The fiduciary duty of 'loyalty' requires an agent to:
- An Arizona agent representing a buyer discovers a material defect in a property that the seller has not disclosed. The agent must:
- When does an agency relationship in Arizona typically terminate?
- An Arizona buyer's agent who is offered a bonus by the listing broker for selling a specific property should:
- An Arizona agent learns their buyer client is willing to pay up to $50,000 more than the list price. The agent must:
- An Arizona agent working with a buyer as a buyer's agent discovers the seller's property has an unpermitted addition. The agent should:
- In Arizona, an agent who represents both the buyer and seller in the same transaction is called a:
- An Arizona licensee must provide the ADRE-approved Agency Disclosure form to a buyer:
- A buyer's agent in Arizona owes which duties to the seller?
- When a broker's in-house salesperson represents the seller and a different in-house salesperson represents the buyer, this is called:
- The fiduciary duty of confidentiality in an Arizona agency relationship means the agent must:
- A seller's agent who learns that the buyer is desperate to purchase and will pay well above asking price must:
- In Arizona, a transaction broker (non-agent) owes the parties:
- Which of the following best describes an express agency relationship?
- An Arizona listing agent discovers a material defect in the property that the seller forgot to disclose. The agent should:
- Procuring cause in Arizona real estate refers to:
- The duty of 'obedience' in an agency relationship requires an agent to:
- An implied agency relationship is created when:
- An Arizona buyer's broker agreement that is exclusive gives the buyer's broker the right to:
- Subagency in Arizona means that:
- The duty of 'accounting' in an agency relationship requires the agent to:
- The Arizona Agency Disclosure form must be:
- A material fact that an Arizona agent must disclose includes:
- In Arizona, an agent representing a buyer in a transaction where the listing agent represents the seller is called:
- Ratification of an unauthorized act by an agent in Arizona means:
- The duty of 'reasonable care and diligence' in agency requires an Arizona agent to:
- An Arizona listing agreement is a contract between:
- An exclusive right-to-sell listing in Arizona entitles the listing broker to a commission if:
- An exclusive agency listing in Arizona differs from an exclusive right-to-sell listing in that:
- When does an Arizona listing agreement terminate?
- An Arizona buyer who uses a buyer's agent without a written agreement may find that the agent:
- In Arizona, the duty of disclosure requires an agent to tell a buyer about:
- An agent who continues to show a property after the listing expires is:
- Under Arizona law, a real estate salesperson who accepts a commission directly from a buyer or seller (rather than through their broker) is:
- An Arizona seller tells their listing agent they will accept $380,000, though the property is listed at $399,000. The agent must:
- An Arizona licensee who earns a referral fee from a home warranty company in connection with a transaction must:
- In Arizona, when a seller lists their property and a different buyer inquires, the buyer should be informed:
- The duty of loyalty in Arizona agency primarily means an agent must:
- An Arizona buyer's agent who also works part-time for a mortgage company and refers buyers to that company without disclosure is:
- Agency by estoppel in Arizona arises when:
- The term 'client' in Arizona real estate agency means:
- An Arizona licensee who refers a client to a home inspector they have a financial interest in without disclosure is violating the duty of:
- When an Arizona listing expires and the seller re-lists with a different broker, which buyer retains entitlement to the original broker's commission under a protection clause?
- In Arizona, the term 'buyer's agent' means an agent who:
- An Arizona seller's agent learns the property has an unpermitted addition. The agent should:
- In Arizona, an agent's authority to bind their principal in negotiations is called:
- When a property manager in Arizona also represents a prospective tenant, this creates a:
- In Arizona, an agent's authority to negotiate the terms of an offer on behalf of their client comes primarily from:
- When an Arizona buyer's agent submits an offer on behalf of a buyer, the agent is acting as the buyer's:
- An Arizona listing agent who represents the seller has a duty to present all offers to the seller:
- When does an Arizona agency relationship with a buyer begin?
- An Arizona agent who tells a prospective buyer that a property is 'in the best school district' without verifying school boundaries is potentially guilty of:
- In Arizona, 'puffing' in real estate means:
- An Arizona agent who negotiates a sale of their principal's property at a price below market to enable the agent or a related party to profit is committing:
- An Arizona listing broker who hires a buyer from an open house without disclosing to that buyer that the broker represents the seller is:
- In Arizona, 'consensual dual agency' requires which of the following from both parties?
- When an Arizona agent represents the seller and introduces the buyer as their own client without a buyer's agreement, creating an inadvertent dual agency, the agent should:
- The doctrine of 'respondeat superior' in Arizona agency law means:
- In Arizona, a real estate agent who acts for both buyer and seller without disclosure of dual agency and without consent may be liable for:
- In Arizona, 'inquiry notice' means that a person is:
- In an Arizona real estate transaction, a 'cooperating agent' who brings the buyer to a listed property without a buyer representation agreement may be acting as:
- An Arizona 'open listing' is characterized by:
- In Arizona, 'ostensible agency' (apparent authority) is created when:
- An Arizona buyer's agent who is also a licensed mortgage broker and originates the buyer's loan without disclosure is:
- An Arizona buyer who purchases a property without any agent representation is called a(n):
- Under Arizona agency law, when does the listing agent's obligation to present offers to the seller end?
- In Arizona, a 'non-exclusive buyer representation agreement' means the buyer:
- An Arizona agent's duty to disclose does NOT require the agent to:
- In Arizona, a 'consensual dual agency' agreement must be signed:
- Under Arizona agency law, the duty of 'reasonable care' includes the obligation of an agent to:
- In Arizona, an agent who overhears the opposing party's private discussions during negotiations and uses that information to benefit their client is:
- In Arizona, a property manager who collects a commission from a contractor for recommending them to a property owner client must:
- In Arizona real estate, 'agency disclosure' serves to:
- An Arizona seller's agent who represents the seller must disclose to the buyer which of the following?
- In Arizona, when a licensee represents a buyer, all offers submitted by that licensee to the seller must:
- Arizona requires that a licensee must disclose their license status when:
- The doctrine of 'ratification' in Arizona agency law allows a principal to:
- In Arizona, which of the following best describes the 'dual fiduciary' problem in dual agency?
- In Arizona, a 'listing agreement' is a contract between:
- Under Arizona law, a buyer's broker who receives compensation from the seller or listing broker:
- An Arizona licensee acting as a seller's agent who learns that the buyer is financially overextended and may default should:
- The 'procuring cause' doctrine in Arizona determines:
- In Arizona, a 'consensual dual agency' arrangement requires the licensee to provide reduced services to both parties. Specifically, the agent is NOT required to:
- Under Arizona law, a real estate licensee who is the buyer's designated agent in a transaction owes which duty to the seller?
- In Arizona, a real estate licensee who is also a property owner selling their own property:
- The 'prevention of performance' doctrine in Arizona agency law holds that:
- In Arizona, when a buyer's agent submits an offer on behalf of a client, the agent's duty regarding the offer price is to:
Property Valuation
132 questions- The appraisal approach most commonly used to estimate the value of single-family residential properties in Arizona is the:
- When appraising income-producing property such as an Arizona apartment complex, an appraiser would primarily use the:
- The cost approach to value estimates property value by:
- In the sales comparison approach, an appraiser makes 'adjustments' to comparable sales. If a comparable sale has a pool and the subject property does NOT, the appraiser would:
- Depreciation in real estate appraisal refers to:
- An Arizona property produces a Net Operating Income (NOI) of $120,000 per year. Using a capitalization rate of 6%, what is the estimated value?
- Which of the following best describes 'market value' in Arizona real estate?
- External obsolescence affecting an Arizona property's value might be caused by:
- The sales comparison approach to value is MOST appropriate for:
- An Arizona appraiser using the cost approach estimates the value of a home as follows: land value = $80,000; replacement cost new of improvements = $220,000; accumulated depreciation = $30,000. What is the estimated value?
- In the income approach, a property generates $36,000 annual net operating income (NOI). If the capitalization rate is 6%, what is the estimated value?
- Which type of depreciation is caused by factors external to the property, such as a nearby industrial plant, and is generally considered incurable?
- An appraiser makes a positive adjustment of $5,000 to a comparable sale in the sales comparison approach. This means:
- The principle of substitution states that:
- Which of the following BEST defines 'highest and best use' of a property?
- A Comparative Market Analysis (CMA) in Arizona is prepared by a real estate agent and is:
- Functional obsolescence in a property is BEST illustrated by:
- An Arizona income property generates gross rents of $90,000 per year. Vacancy and credit losses are 5%, and operating expenses are $35,000. What is the Net Operating Income (NOI)?
- An appraiser values an Arizona commercial property using a cap rate of 7% and an NOI of $63,000. What is the indicated value?
- In the sales comparison approach, if a comparable property sold for $320,000 and has a pool worth $15,000 that the subject property lacks, the appraiser should:
- The principle of 'progression' in real estate valuation holds that:
- An Arizona appraiser is valuing a historic adobe home. There are very few comparable sales and it generates no rental income. Which appraisal approach would MOST likely be given the most weight?
- Which of the following BEST defines 'market value' as used by Arizona appraisers?
- A property in Arizona has a gross rent multiplier (GRM) of 120 and rents for $1,800 per month. What is the estimated value using the GRM method?
- Accrued depreciation in the cost approach refers to:
- In Arizona, an 'arm's-length transaction' for appraisal purposes means:
- In the income approach to value, the capitalization rate is calculated as:
- Functional obsolescence in real estate refers to a loss in value due to:
- The cost approach to value starts with:
- An Arizona appraiser finds a comparable sale has one extra bathroom compared to the subject property. The appraiser would:
- External (economic) obsolescence as a cause of depreciation is characterized as:
- A gross rent multiplier (GRM) is calculated by dividing the:
- Highest and best use in Arizona appraisal analysis means the use that is:
- An Arizona residential appraiser uses the sales comparison approach and finds the subject property has a pool that no comparable sale has. The appraiser should:
- The principle of progression in real estate appraisal means:
- Regression in real estate appraisal means:
- In the cost approach, what does 'reproduction cost' mean?
- An Arizona property has 4 units each renting for $1,200/month. Using a GRM of 120, what is the estimated value?
- Plottage (assemblage) value in Arizona real estate refers to:
- Depreciation in real estate appraisal is defined as:
- The income capitalization approach is MOST reliable for valuing:
- An Arizona appraiser calculates that a subject property has $75,000 of accrued depreciation on improvements with a reproduction cost of $300,000. The land value is $80,000. What is the indicated value by the cost approach?
- In Arizona, an appraisal ordered for federally related transactions must be performed by:
- The 'reconciliation' step in an Arizona appraisal involves:
- The sales comparison approach to value is MOST appropriate for appraising:
- In the income approach to value, what does capitalization rate (cap rate) measure?
- A property generates $60,000 in annual net operating income. If the prevailing cap rate is 6%, what is the estimated value?
- The cost approach to value is MOST appropriate for:
- Which type of depreciation in real estate appraisal is considered incurable?
- An appraisal performed to estimate value for a mortgage loan is typically ordered by:
- Functional obsolescence in an appraisal refers to:
- When making adjustments in the sales comparison approach, the appraiser adjusts:
- Gross Rent Multiplier (GRM) is calculated as:
- A property sold for $350,000 with a monthly gross rent of $2,500. What is the GRM?
- Highest and best use in real estate appraisal is defined as the use that is:
- An 'as improved' appraisal values the property:
- Regression in real estate valuation refers to:
- In the cost approach, reproduction cost differs from replacement cost in that:
- A Broker Price Opinion (BPO) in Arizona is:
- The principle of substitution in appraisal states that:
- In Arizona, an appraisal for a federally related transaction must be performed by:
- Effective age in appraisal refers to:
- A comparable sale used in the sales comparison approach should be:
- The reconciliation step in an appraisal involves:
- In a declining market, an Arizona appraiser must consider:
- Plottage (assemblage) in real estate refers to:
- Market value in Arizona real estate appraisal is most accurately defined as:
- Economic life of a building in the cost approach refers to:
- Excess land in appraisal refers to:
- A capitalization rate is derived in appraisal by:
- Scarcity as a principle of value means that:
- An Arizona appraiser who knowingly provides a fraudulent appraisal may face:
- When appraising a duplex, the most appropriate approach would typically be:
- Contribution in appraisal means that the value of any component is measured by:
- An Arizona appraiser is bound by the Uniform Standards of Professional Appraisal Practice (USPAP), which:
- When an appraiser adjusts a comparable sale upward by $5,000 for a feature the subject has but the comparable lacks, the adjustment means:
- Interim use in appraisal refers to:
- A leasehold interest in Arizona has value when:
- In an appraisal, 'paired sales analysis' is used to:
- The principle of conformity in real estate appraisal holds that:
- The principle of anticipation in real estate appraisal holds that:
- In the income approach, 'effective gross income' (EGI) is calculated as:
- A 'reconciliation' in a final appraisal report involves the appraiser:
- In Arizona, the purpose of the URAR (Uniform Residential Appraisal Report) is to:
- A property with 'functional obsolescence' due to having only 1 bathroom in a 5-bedroom home represents:
- A 'drive-by' appraisal (exterior-only inspection) is typically used for:
- When appraising special-purpose properties in Arizona (gas stations, car washes), the appraiser typically:
- In Arizona, the County Assessor's assessed value is used for:
- Arizona uses a 'limited cash value' assessment system where residential property is assessed at a percentage of its full cash value. The standard assessment ratio for residential property in Arizona is:
- The 'principle of balance' in real estate appraisal holds that:
- In Arizona, the income approach to value is LEAST applicable for:
- An Arizona appraiser who finds that the subject property has superior lot size compared to a comparable sale will make a(n):
- In a cost approach appraisal, which of the following is NOT included in the site value estimate?
- Which appraisal concept holds that a property's value is influenced by the values of surrounding properties?
- In Arizona, when a buyer pays more than the appraised value for a property, the difference is called:
- In Arizona, the URAR form used for residential appraisals requires the appraiser to report the 'neighborhood' based on:
- Which of the following would be considered 'external obsolescence' for an Arizona property?
- A cost approach appraisal requires calculating depreciation, which includes:
- In Arizona, a Comparative Market Analysis (CMA) prepared by a real estate agent is:
- In Arizona, a property appraiser finds that the subject property has a 3-car garage while all comparables have 2-car garages. If the market shows a 2-car garage adds $8,000 in value over a 1-car, the appraiser would make:
- In the income approach, if an Arizona property has an NOI of $72,000 and sold for $900,000, what is the overall capitalization rate?
- An Arizona appraiser's determination that a property's highest and best use as if vacant differs from its current use is significant because it means:
- In Arizona, an appraisal that is completed 'retrospectively' (for a date in the past) is called:
- A commercial property's 'potential gross income' (PGI) represents:
- In Arizona, the 'gross income multiplier' (GIM) at the annual level is used differently from the GRM (gross rent multiplier) in that:
- An Arizona appraiser who uses only 2 comparables in the sales comparison approach is:
- In Arizona, the 'land residual technique' in appraisal is used to:
- In a depressed market, Arizona comparable sales from 6-12 months ago may need a:
- The 'discounted cash flow' (DCF) analysis in Arizona commercial real estate appraisal differs from direct capitalization in that:
- In Arizona, the 'effective gross income multiplier' (EGIM) is more useful than the GRM because:
- An Arizona appraisal for a 'retrospective' date requires the appraiser to:
- Which of the following would an Arizona appraiser classify as 'long-lived' physical deterioration?
- In Arizona, the 'sales comparison approach' to value requires the appraiser to make adjustments for differences between the subject and comparables. The rule is: if the comparable is INFERIOR, the adjustment is:
- The 'band of investment technique' for deriving a cap rate uses:
- An Arizona commercial appraiser determines that a property is NOT at its highest and best use because current zoning restricts a more profitable use. The appraiser should:
- In Arizona, when comparable sales are limited, an appraiser may use 'expanded geographic area' searches. This means the appraiser:
- An Arizona appraiser who provides an appraisal report that omits negative information to help a transaction close is committing:
- The 'gross building area' (GBA) of an Arizona commercial property differs from 'net rentable area' (NRA) in that:
- When an Arizona appraiser says a property has 'deferred maintenance,' this means:
- In Arizona, a property appraiser must be free from 'coercion' or 'pressure' to hit a target value. This principle is codified in:
- An Arizona appraiser who discovers that a property's listed square footage significantly overstates actual measurements should:
- The 'supply and demand' principle in Arizona real estate appraisal holds that:
- In Arizona, the 'cost to cure' approach in appraisal means:
- An Arizona property's 'going concern value' includes:
- In the sales comparison approach to appraisal, adjustments are made to the comparable properties (not the subject) because:
- An Arizona appraiser using the income approach to value a commercial property calculates a capitalization rate of 7%. If the net operating income (NOI) is $105,000, what is the estimated property value?
- In Arizona, 'functional obsolescence' in appraisal refers to:
- The 'gross rent multiplier' (GRM) method for quick valuation of a rental property uses:
- In Arizona's competitive real estate market, when multiple comparable sales exist, an appraiser should give the greatest weight to:
- The 'cost approach' to valuation in Arizona is most reliable and commonly used for:
- In Arizona, when appraising a property in a 'declining market,' the appraiser must:
- In Arizona, an 'as-is' appraisal differs from an 'as-completed' or 'subject-to' appraisal in that:
Fair Housing
130 questions- The federal Fair Housing Act prohibits discrimination based on which protected classes?
- Arizona's fair housing law (A.R.S. §41-1491) mirrors the federal Fair Housing Act's protected classes and adds which additional protection?
- A real estate agent who tells prospective buyers that a neighborhood is 'changing' in a way that implies racial or ethnic composition as a reason to buy or sell is engaging in:
- An Arizona real estate agent who shows clients only certain neighborhoods based on their race or national origin is committing:
- Under the Fair Housing Act, which of the following properties is generally EXEMPT from the prohibition against discrimination based on familial status?
- A lender refuses to make mortgage loans in a specific low-income neighborhood regardless of individual applicant qualifications. This practice is called:
- Under the Fair Housing Act's disability provisions, a tenant with a disability has the right to:
- An Arizona property owner refuses to rent to a family with children under 18, claiming 'adults only.' This is:
- The federal Fair Housing Act of 1968 prohibits discrimination in housing based on which of the following protected classes?
- Steering in violation of the Fair Housing Act occurs when a licensee:
- Blockbusting (panic selling) is best described as:
- Under the Fair Housing Act, which of the following properties is generally EXEMPT from the fair housing prohibitions?
- An Arizona landlord refuses to rent to a family with three children, stating the apartment is 'too small for children.' This MOST likely violates which protected class?
- Under the Fair Housing Act, a landlord must make reasonable accommodations for a tenant with a disability. A 'reasonable accommodation' is:
- Redlining is the illegal practice of:
- A complainant who files a fair housing complaint with HUD must do so within:
- Arizona's Fair Housing Act adds which protected class not included in the federal Fair Housing Act?
- An Arizona property manager refuses to rent to a prospective tenant with a service animal, citing a strict 'no pets' policy. This is MOST likely a violation of the Fair Housing Act's provisions regarding:
- A real estate advertisement in Arizona states 'Ideal for Christian families.' This advertisement:
- Disparate impact under the Fair Housing Act means that a housing policy is discriminatory if:
- Under the Fair Housing Act, which of the following would be considered a reasonable accommodation request from a tenant with a disability?
- An Arizona real estate agent shows a minority buyer only properties in one area of the city, even though the buyer expressed interest in other neighborhoods. This is BEST described as:
- Under the Fair Housing Act, a housing provider who discriminates based on a protected class is subject to penalties including:
- The federal Fair Housing Act was enacted in which year?
- Which of the following is NOT one of the original protected classes under the federal Fair Housing Act of 1968?
- Steering in real estate refers to:
- Blockbusting (panic peddling) is an illegal practice in which:
- Under the federal Fair Housing Act, an exemption may apply when:
- A lender who refuses to make mortgage loans in a specific geographic area due to the racial composition of the neighborhood is engaging in:
- Under the Fair Housing Act, a 'reasonable accommodation' for a person with a disability in Arizona means:
- Which of the following advertising practices would violate the Fair Housing Act?
- The federal agency primarily responsible for enforcing the Fair Housing Act is:
- Familial status as a protected class under federal fair housing law protects:
- An Arizona landlord tells a prospective tenant 'we don't rent to people like you.' If the prospective tenant is a member of a protected class, this statement may constitute:
- Under Arizona fair housing law, a landlord may legally refuse to rent to a prospective tenant based on:
- Arizona's civil rights division handles fair housing complaints through:
- Under the Fair Housing Act, disability is defined as:
- A 55-and-older community in Arizona may legally restrict occupancy by children if:
- A real estate agent who shows buyers only properties in neighborhoods where residents share the buyer's national origin is engaging in:
- The Home Mortgage Disclosure Act (HMDA) requires lenders to:
- A prospective buyer with a guide dog asks to view an Arizona rental property with a 'no pets' policy. Under fair housing law:
- In Arizona, a real estate licensee who engages in discriminatory housing practices may be subject to:
- Disparate impact under fair housing law refers to:
- The federal Fair Housing Act of 1968 prohibits discrimination based on all of the following EXCEPT:
- Arizona's state fair housing law adds which protected class NOT covered by the federal Fair Housing Act?
- Steering in real estate means:
- Blockbusting (panic peddling) is an illegal practice that involves:
- Redlining in real estate refers to:
- Under the Fair Housing Act, which of the following is an exemption from the prohibition on discrimination?
- A landlord refuses to rent to a family with children under 18. This is:
- Under the Fair Housing Act, a person with a disability has the right to:
- A real estate agent refuses to show a Latino buyer homes in predominantly white neighborhoods. This is an example of:
- The penalty for a first-time violation of the federal Fair Housing Act can be a civil penalty of up to:
- An Arizona landlord who refuses to allow a wheelchair-using tenant to install grab bars in the bathroom is:
- A 'reasonable accommodation' under the Fair Housing Act refers to:
- The federal Fair Housing Act applies to all of the following EXCEPT:
- Under the Americans with Disabilities Act (ADA), newly constructed commercial facilities must:
- A real estate agent who uses different sales tactics based on the buyer's race is committing:
- Which federal agency is primarily responsible for investigating Fair Housing Act complaints?
- An advertisement stating 'Perfect for young professionals, no children' violates fair housing because it:
- Under the Fair Housing Act, a person with a disability includes someone who:
- The Fair Housing Act requires that all multi-family buildings with 4 or more units built after March 1991:
- A real estate agent is asked by a seller to 'only show to working couples.' The agent should:
- A landlord in Arizona may legally reject a rental applicant based on:
- Which of the following is considered disparate impact discrimination?
- Under the Fair Housing Act, who is protected under 'familial status'?
- Testing (fair housing testing) in Arizona is conducted to:
- Posting a fair housing poster in an Arizona real estate office is:
- An Arizona property manager may ask a prospective tenant for:
- Under the Fair Housing Act, a real estate professional who 'only shows what the buyer asks for' without voluntarily showing other comparable properties outside the buyer's stated preference may be guilty of:
- Section 8 (Housing Choice Voucher) recipients in Arizona are protected from discrimination based on income source under:
- A landlord in Arizona who charges higher security deposits to tenants with children is:
- The Civil Rights Act of 1866 prohibits discrimination in housing based on:
- Under the Fair Housing Act, which of the following is NOT considered a 'dwelling'?
- Arizona's Fair Housing Act complaint must typically be filed with HUD within:
- An Arizona real estate agent who advertises 'ideal for Christians' is violating the Fair Housing Act because:
- A condominium association in Arizona that refuses to allow a unit owner to have a service animal because of a 'no pets' policy is:
- Under Arizona fair housing law, the term 'sex' as a protected class has been interpreted to include:
- Which Arizona city or county practice is permissible under fair housing principles?
- An Arizona property manager who charges all single female applicants a higher security deposit 'for additional security' is:
- An 'affirmative marketing plan' in a federally funded Arizona housing project is designed to:
- The Fair Housing Act's definition of 'national origin' as a protected class protects persons based on:
- An Arizona developer who provides accessible design features beyond the minimum Fair Housing Act requirements is:
- An Arizona rental property owner who excludes assistance animals from their 'no pets' policy is:
- Which of the following is the BEST example of a legally permissible tenant screening criterion in Arizona?
- An Arizona homeowners association that denies a member's request to install a wheelchair ramp at their own expense is:
- Disparate impact under the Fair Housing Act means that even a neutral policy can be discriminatory if:
- Under Arizona fair housing law, which of the following would constitute discrimination in lending?
- A real estate agent who tells a buyer 'you probably wouldn't like that neighborhood—lots of ____ people there' is committing:
- The term 'housing for older persons' exemption from the familial status protection of the Fair Housing Act applies to communities that:
- In Arizona, if a real estate licensee violates the Fair Housing Act, they may face:
- An Arizona apartment complex with a 'no criminal history' policy may violate fair housing if:
- The Fair Housing Act requires housing providers to make 'reasonable accommodations' for persons with disabilities. A reasonable accommodation is 'reasonable' if:
- An Arizona housing developer who markets only in English-language media in a community with a significant Spanish-speaking population may be:
- An Arizona mobile home park that restricts residency to 'adults only' (no children) may be legal if:
- The term 'protected class' in fair housing refers to:
- An Arizona landlord who screens all applicants with a credit report and minimum income requirement is:
- In Arizona, a real estate licensee may never ask a prospective buyer or tenant about their:
- Under the Fair Housing Act, a housing provider may ask for documentation of disability-related need for an assistance animal in which circumstances?
- An Arizona listing agent publishes a listing that describes the neighborhood's demographics (e.g., '90% owner-occupied, mostly families from [country]'). This is:
- An Arizona landlord who provides different amenities or services (pool hours, parking assignments) based on tenants' protected class characteristics is:
- Under Arizona fair housing law, the protected class of 'color' is:
- In Arizona, which of the following is NOT a valid defense to a fair housing complaint?
- The 'Mrs. Murphy exemption' to the Fair Housing Act in Arizona applies to:
- An Arizona real estate licensee who 'cherry picks' which offers to present to the seller based on the buyer's perceived protected class is:
- In Arizona, fair housing violations may be pursued through which of the following channels?
- An Arizona landlord who advertises 'no Section 8' is:
- Under Arizona law, an HOA that refuses to approve an architectural modification request for a ramp from a unit owner with a disability must:
- An Arizona insurance company that charges higher homeowner's insurance premiums or refuses coverage based on the racial composition of the neighborhood is engaging in:
- Under the Fair Housing Act, 'familial status' protection was added to the original 1968 law in:
- An Arizona seller instructs their agent to 'sell only to a buyer of [specific religious faith].' The agent must:
- In Arizona, a real estate professional who witnesses fair housing violations by a colleague should:
- The Affirmatively Furthering Fair Housing (AFFH) requirement placed on HUD-assisted communities in Arizona obligates them to:
- The Fair Housing Act's prohibition on discrimination in the 'terms and conditions' of a real estate transaction includes:
- An Arizona real estate agent who refuses to make an offer for a client because the property is in a specific neighborhood based on the neighborhood's protected class demographics is:
- Under Arizona law, a real estate licensee who receives a complaint of fair housing discrimination should:
- In Arizona, a landlord who requires a co-signer only from applicants of a specific national origin is engaging in:
- Under the Fair Housing Act, which of the following is generally a permissible occupancy standard for housing in Arizona?
- An Arizona property manager who asks rental applicants 'How old are you?' during screening is:
- The term 'protected class' in federal fair housing law currently includes exactly how many categories?
- Which of the following statements about disability accommodations in Arizona housing is CORRECT?
- An Arizona seller who wants to sell their home only to a buyer who will maintain it 'in the spirit of the neighborhood'—which is predominantly of one national origin—is:
- An Arizona real estate agent who sends automated listing notifications only to certain zip codes that exclude historically minority neighborhoods may be engaging in:
- Under the Fair Housing Act, 'steering' is an illegal practice in which a real estate agent:
- The Fair Housing Act's 'Mrs. Murphy exemption' allows an owner to discriminate based on race, religion, sex, national origin, familial status, or disability if:
- In Arizona, fair housing protections apply to which categories BEYOND the seven federal protected classes?
- A lender who charges higher interest rates to borrowers from a specific ethnic neighborhood, regardless of their creditworthiness, is engaging in:
- Under the Fair Housing Act, a request by a person with a disability for an 'accommodation' in a building's policies or practices:
- A real estate agent who tells a client from a minority group that there are 'no good listings' in a certain neighborhood when listings do exist is engaging in:
- In Arizona, a homeowners association (HOA) that enforces deed restrictions prohibiting rental of units to families with children:
Escrow & Title
128 questions- In Arizona real estate transactions, escrow is typically handled by:
- Arizona requires that real estate sellers provide buyers with a disclosure statement about homeowner associations (HOAs). This disclosure must include:
- A title insurance policy that protects the lender against losses from title defects is called a:
- The Arizona Affidavit of Disclosure is required when selling unsubdivided land of:
- In Arizona, the seller typically pays which of the following closing costs?
- Recordation of a deed in Arizona provides:
- In Arizona, escrow is BEST described as:
- Which of the following BEST describes a general warranty deed in Arizona?
- A special warranty deed (also called a limited warranty deed) in Arizona warrants title:
- A quitclaim deed conveys:
- An owner's title insurance policy in Arizona protects:
- In Arizona, the Seller's Property Disclosure Statement (SPDS) is:
- The Affidavit of Disclosure in Arizona is required when:
- Under Arizona law, when selling a property within a homeowners association (HOA), the seller must provide the buyer with HOA disclosures including:
- In Arizona, an escrow company acts as a(n):
- A preliminary title report (or title commitment) in Arizona is issued by a title company and PRIMARILY serves to:
- After an Arizona trustee's sale (non-judicial foreclosure), the former owner (trustor) has:
- A 'cloud on title' in Arizona refers to:
- Under Arizona law, a mechanic's lien may be recorded against a property by a contractor who was not paid. The contractor must record the lien within:
- In Arizona, the Buyer Advisory provided by AAR-member brokers to buyers PRIMARILY serves to:
- When an Arizona seller credits the buyer for unpaid property taxes at closing (a proration), the credit appears on the settlement statement as a:
- In Arizona, who typically serves as the escrow agent in a residential real estate transaction?
- A preliminary title report (title commitment) in Arizona is issued by the title company to:
- A general warranty deed provides the grantee with:
- A special warranty deed in Arizona warrants title only against:
- A quitclaim deed in Arizona:
- In Arizona, escrow instructions are:
- ALTA title insurance policies in Arizona provide:
- In Arizona, recording a deed in the county recorder's office serves to:
- In Arizona, a mechanic's lien may be filed by:
- A deed in Arizona is legally delivered when:
- An Arizona buyer receives a Closing Disclosure (CD). Under TRID rules, the borrower must receive the CD at least:
- In Arizona, the seller typically pays for which of the following title insurance policies?
- A title search in Arizona reveals a 'cloud on title.' This means:
- In Arizona, the county recorder's office maintains:
- Prorations at an Arizona real estate closing are calculations that:
- In Arizona, the escrow holder (title/escrow company) acts as:
- In Arizona, title insurance protects the insured against losses from:
- An Arizona notice of trustee's sale for a deed of trust foreclosure must be recorded and published at least:
- A buyer in Arizona takes title 'subject to' an existing mortgage. This means:
- In Arizona, a lis pendens recorded on a property indicates:
- In Arizona, escrow is typically handled by:
- A warranty deed in Arizona provides the grantee with:
- A special warranty deed in Arizona differs from a general warranty deed in that:
- In Arizona, which type of deed is used when the grantor makes no warranty of title whatsoever?
- Title insurance in Arizona protects against:
- An owner's title insurance policy in Arizona is typically paid for by:
- Which document transfers real property in Arizona?
- For a deed to be valid in Arizona, it must include all of the following EXCEPT:
- Recording a deed with the county recorder in Arizona provides:
- A lis pendens in Arizona gives notice that:
- An abstract of title in Arizona is:
- A cloud on title in Arizona refers to:
- A quiet title action in Arizona is a court proceeding used to:
- In Arizona, a deed must be acknowledged before a notary public primarily to:
- The ALTA (American Land Title Association) owner's policy provides coverage for:
- In Arizona, if a seller fails to appear at closing, the escrow agent will:
- Proration in a real estate closing refers to:
- In Arizona, property taxes are prorated based on the fiscal year running from:
- RESPA (Real Estate Settlement Procedures Act) requires that buyers receive:
- An Arizona escrow agent who receives conflicting instructions from buyer and seller should:
- In Arizona, the Closing Disclosure (CD) replaced which prior document under TRID?
- A preliminary title report in Arizona discloses:
- A grant deed in Arizona conveys the property and implies a warranty that:
- In Arizona, a trustee's deed is used to transfer title after:
- Chain of title in Arizona real estate refers to:
- Arizona uses the 'race-notice' recording statute, which means that a subsequent purchaser wins in a title dispute if they:
- An Arizona escrow officer is considered a:
- RESPA's kickback prohibition (Section 8) in Arizona prevents:
- An Affidavit of Value in Arizona is required to be filed with:
- A title insurance lender's policy (also called a mortgagee's policy) in Arizona protects:
- In Arizona, the document that evidences a debt and is secured by a deed of trust is called a:
- In Arizona, priority among competing liens on the same property is generally determined by:
- A release of lien in Arizona is used to:
- Arizona title insurance does NOT cover losses arising from:
- An Arizona escrow is considered 'closed' when:
- A subordination agreement in Arizona allows:
- In Arizona, a seller who is unable to deliver marketable title at closing:
- When a buyer 'assumes' an existing mortgage in Arizona, the buyer:
- Deed-in-lieu of foreclosure in Arizona means the borrower:
- In Arizona, a home equity sharing agreement (equity sharing) involves:
- In Arizona, which party typically selects the title company when a property is purchased?
- An 'endorsement' added to an Arizona title insurance policy provides:
- In Arizona, a 'partial release clause' in a blanket mortgage allows the borrower to:
- Arizona's recording statutes provide that an unrecorded deed is:
- A title company in Arizona is regulated by the:
- An Arizona 'assumption fee' charged by a lender when a buyer assumes an existing mortgage is:
- In Arizona, the seller typically provides at closing a:
- Arizona's deed recording fee is paid to:
- A 'good faith estimate' under the old RESPA rules has been replaced under TRID with the:
- In Arizona, a 'mechanics' lien must be filed within what period after the last work or material is provided?
- In Arizona, a seller disclosure on the SPDS covers which of the following?
- A 'title search' in Arizona involves:
- In Arizona, a 'deed in lieu of foreclosure' affects the borrower's credit similar to:
- The Foreign Investment in Real Property Tax Act (FIRPTA) in Arizona affects closings when:
- In Arizona, the 'Affidavit of Value' (or Legal Value Affidavit) is significant because it:
- In Arizona, 'actual notice' in property law means:
- In Arizona, an 'interpleader action' by an escrow company means:
- Under Arizona law, a deed must contain which of the following to be valid?
- In Arizona, the process of 'recording' a deed with the county recorder creates:
- In an Arizona closing, seller's proceeds are typically disbursed:
- In Arizona, the ALTA (American Land Title Association) lender's policy is required by:
- In Arizona real estate, 'proration' at closing for property taxes paid in advance means the:
- In Arizona, a 'sub-escrow' or 'sub-trust' at closing is typically used when:
- Which of the following is NOT shown on an Arizona Closing Disclosure (CD)?
- Arizona's title insurance market is regulated to ensure that title insurance companies:
- In Arizona, a title company or escrow agent who suspects money laundering in a real estate transaction should:
- A 'buyer's affidavit' at an Arizona closing is a document where the buyer represents that:
- In Arizona, a 'seller's affidavit of property value' confirms that the:
- A 'subordination, non-disturbance, and attornment agreement' (SNDA) in an Arizona commercial lease transaction protects:
- In Arizona, the order in which closing proceeds are distributed is typically:
- In Arizona, 'concurrent closing' occurs when:
- An Arizona escrow agent who disbursed funds based on a fraudulently forged signature on an escrow instruction may be liable to:
- In Arizona, 'gap insurance' in a title insurance context covers the period between:
- In Arizona, the seller's obligation to disclose the SPDS to the buyer must be fulfilled:
- A 'split closing' in Arizona occurs when:
- In Arizona, which of the following deeds would be used to convey title from a trustee to a beneficiary when a trust is dissolved?
- In Arizona, an 'order of title' from a title company provides:
- In Arizona, the 'abstract and opinion' approach to title assurance differs from title insurance in that it:
- In Arizona, a 'first-time homebuyer' program through the Arizona Industrial Development Authority (Arizona IDA) or Arizona Housing Finance Authority (AHFA) may offer:
- In Arizona, a property tax lien has 'super-priority' over other liens because:
- In Arizona, an escrow officer's primary duty is to:
- An 'ALTA extended coverage' title insurance policy (as opposed to a standard coverage policy) provides additional protection against:
- In Arizona, 'prorations' at closing are adjustments made to:
- Under Arizona law, the 'deed of trust' differs from a mortgage primarily because:
- In Arizona, a 'preliminary title report' issued before closing:
- The 'RESPA' (Real Estate Settlement Procedures Act) prohibition on kickbacks applies to:
- In Arizona, 'constructive notice' is provided by:
Land Use & Zoning
107 questions- A property owner in Arizona wants to use their residentially zoned property for a small home-based business that does not increase traffic or alter the property's appearance. They may apply for a:
- In Arizona, a non-conforming use is a property use that:
- The planning tool used in Arizona to guide long-term land use decisions for a municipality is called a:
- The purpose of building codes in Arizona is to:
- A property owner in Arizona wants to use their residentially-zoned land for a small commercial business. To do so legally, they would MOST likely need to obtain:
- A nonconforming use in Arizona zoning law refers to:
- A taking of private property by the government through eminent domain requires:
- A variance in Arizona zoning law is BEST described as:
- Under Arizona law, which government power allows local governments to enact zoning ordinances to promote public health, safety, and welfare?
- In Arizona, a developer who subdivides land into six or more lots for sale is generally required to file a(n):
- A developer in Arizona cannot sell or accept a deposit on a lot in a new subdivision before the ADRE Public Report is issued. A buyer who signs a purchase contract before receiving the Public Report may:
- Spot zoning in Arizona is generally considered problematic because it:
- In Arizona, a 'setback requirement' in a zoning ordinance specifies:
- Inclusionary zoning in Arizona refers to policies that:
- In Arizona, a variance is a grant by the local government that allows:
- A nonconforming use in Arizona is best described as:
- An Arizona municipality's general plan (comprehensive plan) is best described as:
- Spot zoning in Arizona is generally considered:
- Eminent domain in Arizona gives the government the power to:
- A planned unit development (PUD) in Arizona allows:
- The Arizona Department of Environmental Quality (ADEQ) enforces:
- Arizona's Subdivision Public Report issued by ADRE is required when:
- Escheat in Arizona refers to:
- A buffer zone in Arizona land use planning is:
- A variance in zoning allows a property owner to:
- A special use permit (conditional use permit) in Arizona zoning allows:
- In Arizona, the police power that authorizes zoning regulation is the government's power to:
- Eminent domain in Arizona is the government's power to:
- A master-planned community in Arizona that includes private streets, common areas, and architectural controls is typically governed by:
- An Arizona property owner whose land is taken by eminent domain has the right to:
- Deed restrictions (CC&Rs) in Arizona that exceed local zoning standards are:
- Which government power results in property reverting to the state when a person dies without a will and no heirs can be found?
- A Planned Unit Development (PUD) in Arizona differs from standard zoning in that:
- In Arizona, a 'buffer zone' in zoning refers to:
- A 'taking' in Arizona constitutional law occurs when:
- Subdivision regulations in Arizona govern:
- An Arizona property owner who is denied a variance has the right to appeal the decision to:
- An Arizona city's comprehensive (general) plan:
- An incentive zoning program in Arizona might offer a developer:
- Agricultural zoning in Arizona is primarily used to:
- In Arizona, the Arizona State Land Department manages approximately how much state trust land?
- An Arizona homeowner converts their single-family home into two units (a duplex) in a single-family zone. This is:
- Setback requirements in Arizona zoning ordinances specify:
- Floor-Area Ratio (FAR) in Arizona zoning is:
- An Arizona city 'annexes' adjacent unincorporated territory, which means:
- In Arizona, a conditional rezoning approval requires the developer to:
- A 'downzoning' in Arizona refers to:
- Historic preservation zoning in Arizona may restrict an owner from:
- The Arizona Water Adequacy Disclosure requirement means sellers of property in certain areas must:
- An Arizona developer who divides land into 6 or more lots for sale must comply with Arizona's:
- A 'use by right' in Arizona zoning means a land use that:
- Density in residential zoning in Arizona is typically measured by:
- In Arizona, a 'development agreement' between a city and a developer:
- The concept of 'transferable development rights' (TDRs) in Arizona allows:
- In Arizona, a city can require a developer to dedicate right-of-way for roads as a condition of subdivision approval under the doctrine of:
- A 'nonconforming structure' in Arizona zoning is one that:
- Inclusionary zoning in Arizona (where adopted) requires developers to:
- A property that is 'in escrow' in Arizona is:
- In Arizona, impact fees charged by a municipality for new development must be:
- In Arizona, a 'rezoning' is a legislative act that:
- Arizona's anti-deficiency statute that limits lenders' rights after foreclosure is significant for zoning because:
- A 'use permit' in Arizona zoning is typically required for land uses that are:
- Arizona state law preempts certain local zoning ordinances with regard to:
- In Arizona, a 'General Plan' (comprehensive plan) must be updated at least every:
- A 'conservation easement' in Arizona is a legal tool used to:
- In Arizona, a 'home occupation' use permit allows residents to:
- The principle that zoning must bear a rational relationship to public health, safety, and welfare is grounded in:
- An Arizona city's growth management program that requires building permits to be tied to the availability of public infrastructure is an example of:
- Under Arizona law, a 'housing impact statement' required for new residential developments is intended to:
- An Arizona city ordinance that prohibits 'formula businesses' (chain stores) in certain historic districts is an example of:
- In Arizona, a 'form-based code' differs from conventional zoning in that it primarily regulates:
- In Arizona, a variance from a setback requirement requires the applicant to demonstrate:
- Arizona's Urban Land Institute designation of an 'infill' development site refers to:
- The Arizona Department of Transportation (ADOT) and an Arizona city share responsibilities for what type of land use control?
- In Arizona, a 'condominium conversion' of a rental apartment project requires the developer to:
- A 'floating zone' in Arizona land use planning refers to:
- In Arizona, a 'floodway' versus a 'flood fringe' in FEMA flood maps are:
- Arizona's 'Prop 207' (Private Property Rights Protection Act) prohibits:
- A 'regulatory taking' in Arizona occurs when:
- In Arizona, 'mixed-use zoning' allows:
- An Arizona 'urban growth boundary' or 'growth limit line' is designed to:
- In Arizona, the state legislature has limited local governments' ability to impose certain housing regulations under the principle of:
- In Arizona, a 'Caveat Emptor' ('buyer beware') doctrine in real property sales has been:
- In Arizona, a 'special assessment district' is created to:
- In Arizona, a 'rezoning by initiative' allows:
- The Arizona Residential Building Code primarily governs:
- In Arizona, a certificate of occupancy (CO) is issued by the:
- An Arizona property owner who constructs a fence in violation of an HOA's CC&Rs may be subject to:
- In Arizona, the 'dark store' valuation theory affects commercial property taxation by:
- In Arizona, a 'lot split' (dividing one lot into two) typically requires:
- In Arizona, an 'overlay district' is a zoning tool that:
- Arizona's 'condominium hotel' (condo-tel) development model involves:
- In Arizona, a 'view easement' protects a property owner's:
- In Arizona, a 'design review' process in zoning requires:
- In Arizona, 'smart growth' principles encourage development that is:
- In Arizona, an 'accessory dwelling unit' (ADU) or 'granny flat' is:
- In Arizona, a developer who wants to build a mixed-use project with retail on the ground floor and residential above in a residential-only zone would need to apply for:
- In Arizona, a 'use variance' (as opposed to an 'area variance') is:
- In Arizona, 'exactions' in development approvals are legal requirements that a developer:
- In Arizona, a 'specific plan' differs from a general plan in that:
- A 'conditional use permit' (CUP) in Arizona allows:
- In Arizona, the 'Dark Sky' ordinances in communities like Scottsdale, Sedona, and Flagstaff regulate:
- The 'Maricopa County Planning and Development' department handles land use regulations for:
- In Arizona, 'infill development' refers to:
- In Arizona, a 'non-conforming use' that existed before a zoning change:
- Arizona's 'Growing Smarter Act' requires cities and counties with populations over certain thresholds to:
- In Arizona, 'transferable development rights' (TDR) programs allow property owners in designated 'sending areas' to:
Environmental
106 questions- Arizona's primary water rights doctrine, which gives priority to those who first put water to beneficial use, is known as:
- An Arizona seller is aware of a leaking underground storage tank (UST) on the property. Under Arizona disclosure law, the seller:
- Radon is a naturally occurring radioactive gas that can accumulate in homes. In Arizona real estate transactions, radon disclosure is:
- Lead-based paint disclosure is required in Arizona for homes built before:
- Arizona's Active Management Areas (AMAs) were created primarily to address:
- A buyer in Arizona purchases a home that was previously used as a dry-cleaning business. The MOST important environmental concern would be:
- In Arizona, which of the following desert-climate environmental hazards should be disclosed on the SPDS if known by the seller?
- Under the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA/Superfund), liability for hazardous waste cleanup can be imposed on:
- An Arizona seller is required to disclose the existence of a registered underground storage tank (UST) on the property because it is:
- Which federal law requires sellers of residential properties built before 1978 to disclose known lead-based paint hazards?
- Radon gas in Arizona homes enters primarily through:
- Asbestos-containing materials (ACM) in Arizona older homes are considered most dangerous when they are:
- An Arizona property owner discovers their well water is contaminated by a neighboring industrial facility. Under CERCLA, the facility owner may be liable as a:
- The Arizona Residential Seller's Property Disclosure Statement (SPDS) requires disclosure of:
- Mold in an Arizona home must be disclosed by the seller because it is:
- Under Arizona law, a property located within a Special Flood Hazard Area (SFHA) requires:
- Electromagnetic fields (EMFs) from high-voltage power lines near an Arizona property are considered:
- The National Environmental Policy Act (NEPA) requires:
- An Arizona buyer is purchasing a property near a former dry-cleaning facility. The buyer should be most concerned about contamination from:
- An Arizona seller is aware that the property has a naturally occurring arsenic level in the well water that exceeds EPA action levels. The seller must:
- Which federal law requires disclosure of known lead-based paint hazards for homes built before 1978?
- CERCLA (Superfund) in Arizona means that parties responsible for environmental contamination:
- A Phase I Environmental Site Assessment (ESA) in Arizona involves:
- Radon gas in Arizona homes is a concern primarily because:
- Underground Storage Tanks (USTs) in Arizona are regulated primarily to prevent:
- Asbestos in Arizona buildings is a significant health concern primarily when:
- Mold disclosure in Arizona real estate requires sellers to:
- The National Flood Insurance Program (NFIP) in Arizona requires flood insurance for properties:
- What is the significance of a property being located in an Arizona 'superfund site' area?
- The Clean Air Act in Arizona affects real estate primarily through:
- In Arizona, naturally occurring Caliche in the soil is relevant to real estate because:
- In Arizona, the Arizona Department of Environmental Quality (ADEQ) oversees:
- The Endangered Species Act (ESA) affects Arizona real estate development by:
- Polychlorinated biphenyls (PCBs) in Arizona real estate are most commonly found in:
- An Arizona seller's SPDS asks about 'any current or past use of the property for the production, storage, or disposal of hazardous materials.' This question is designed to:
- Desert tortoise habitat in Arizona can affect real estate development because:
- Arizona's Groundwater Management Act (1980) was enacted primarily to:
- When an Arizona environmental report identifies a Recognized Environmental Condition (REC), it means:
- Arizona's Aquifer Protection Permit program regulates:
- Electromagnetic fields (EMFs) from high-voltage power lines are relevant to Arizona real estate disclosure because:
- The Clean Water Act Section 404 in Arizona regulates:
- Saguaro cacti in Arizona are relevant to real estate development because:
- An Arizona seller's obligation under CERCLA liability is relevant when:
- Formaldehyde in Arizona homes is primarily a concern because it can outgas from:
- Arizona's Voluntary Environmental Cleanup Program (VECP) encourages property owners to:
- In Arizona, a seller who knows about a leaking underground storage tank on the property must:
- Carbon monoxide (CO) hazards in Arizona homes are most commonly associated with:
- Arizona requires smoke detectors to be installed in residential properties. This is an example of:
- A brownfield in Arizona is best described as:
- Arizona's ambient air quality standards are primarily aimed at controlling:
- The Real Estate Notification and Disclosure Rule for lead-based paint requires sellers to allow buyers:
- Arizona's requirement for a Flood Zone Disclosure is triggered when a property is located in:
- An Arizona property located within a Wellhead Protection Area (WPA) may face:
- The National Historic Preservation Act (NHPA) can affect Arizona real estate when:
- An Arizona developer constructing a large project that would disturb one or more acres of land must obtain a permit under:
- In Arizona, a 'deed restriction' requiring a contaminated site to be used only for commercial/industrial purposes after cleanup is called a(n):
- Arizona's 'no further action' (NFA) letter from ADEQ for a contaminated site means:
- Construction near saguaro cactus habitat in the Sonoran Desert in Arizona may require:
- An Arizona property in a 'high fire risk' area may affect real estate by:
- When an Arizona property is located near a former dry cleaning operation, the primary environmental concern is:
- An 'environmental lien' on an Arizona property may result from:
- Arizona's Beneficial Use Determination (BUD) is used in environmental cleanup to:
- An Arizona seller of residential property built before 1978 must provide buyers with which mandatory disclosure pamphlet?
- The 'innocent landowner defense' under CERCLA protects a buyer who:
- In Arizona, naturally occurring expansive soils (adobe-like soils that expand when wet) can affect real estate by:
- The Safe Drinking Water Act in Arizona primarily affects real estate by:
- Arizona's 'assured water supply' requirement for new residential subdivisions means developers must:
- A property located in an Arizona '100-year floodplain' (Zone AE on FEMA maps) faces which additional costs compared to a non-flood zone property?
- In Arizona, 'desert pavement' or 'hardpan desert floor' can affect construction because:
- The 'Endangered Species Act consultation' requirement for Arizona development projects means that:
- In Arizona, a property with a 'dry well' used for stormwater disposal may be:
- The primary environmental concern with an Arizona property that was previously used as a dry cleaner or gas station is:
- Arizona's 'Agricultural Chemicals: Groundwater Protection' program aims to:
- A 'Phase II Environmental Site Assessment' in Arizona involves:
- In Arizona, 'reclaimed water' (treated wastewater) for irrigation must meet which standards?
- An Arizona property adjacent to a mine tailings impoundment may have concerns about:
- An Arizona property owner who discovers oil or gas beneath their land generally has the right to:
- The Arizona 'buffer zone' requirement around an agricultural property that uses pesticides affects adjacent residential development by:
- In Arizona, a seller's duty to disclose environmental conditions under the SPDS includes:
- The 'innocent landowner' defense under CERCLA does NOT protect a buyer who:
- Arizona's 'Active Management Area' (AMA) designations affect real estate development in those areas because:
- An Arizona environmental site assessment (ESA) for a property near a dry cleaner would specifically look for evidence of:
- In Arizona, the 'Voluntary Remediation Program' (VRP) is different from the Superfund (CERCLA) process in that it:
- The presence of 'asbestos-containing materials' (ACM) in an Arizona building does NOT necessarily require immediate remediation if:
- Arizona's 'urban heat island' effect is primarily a concern for real estate development because:
- An Arizona property owner who discovers a historic dump or buried waste on their property should:
- In Arizona, the primary concern with 'vapor intrusion' in real estate is:
- The Arizona Water Infrastructure Finance Authority (WIFA) affects real estate by:
- An Arizona developer building near a navigable waterway must obtain a Section 404 permit from the:
- In Arizona, 'effluent-dependent reaches' of streams that rely on treated wastewater for flow are significant for real estate because:
- Arizona's 'Solid Waste Disposal Act' affects real estate development by requiring:
- In Arizona, 'reclaimed water' distribution systems (purple pipe infrastructure) in new subdivisions affect real estate by:
- Arizona's 'Environmental Master Plan' approach for large master-planned communities involves:
- An Arizona seller is aware that the property was previously used for a 'junkyard' operation for 20 years and may have buried waste. Regarding disclosure, the seller should:
- In Arizona, a 'brownfield redevelopment' project typically involves:
- An Arizona residential property owner who learns their neighbor's property has significant soil contamination that may be migrating toward their property should:
- In Arizona, the 'Assured Water Supply' (AWS) program administered by ADWR requires that developers in Active Management Areas demonstrate:
- The 'Clean Water Act' regulates discharge into 'waters of the United States,' which in Arizona includes:
- A property in Arizona that has a 'Superfund' (CERCLA) designation on the National Priorities List (NPL) indicates:
- Arizona's 'Arizona Mined Land Reclamation Act' requires mining companies to:
- In Arizona real estate, 'electromagnetic fields' (EMFs) from high-voltage power lines near a property are:
- The 'Arizona Department of Environmental Quality' (ADEQ) is responsible for:
- In Arizona, the 'Prior Appropriation Doctrine' for water rights means that:
- The Arizona 'Underground Storage Tank' (UST) program is important for real estate because:
- In Arizona, 'fly ash' and 'slag' from coal-fired power plants near residential areas are of concern because:
- Arizona's 'Active Management Areas' (AMAs) were established to address:
Ready to Practice?
Take a free Arizona practice quiz — no signup required.
Start Free Quiz →