THE CE SHOP FINAL EXAM (AZ) QUESTIONS WITH
COMPLETE SOLUTIONS
______ determines who the heir or heirs will be if a person dies
without a will.
Court appointment
Escheat
Intestate bequest
Intestate succession Correct Answers Intestate succession
_______ policies provide extra coverage beyond those offered
by primary policies.
Blanket
Secondary
Umbrella
Universal Correct Answers Umbrella
A client of yours is selling a piece of property with a well
attached. He's not allowed to use the well for irrigation, but he
uses it to water his livestock. He can sell the water right
separately from his property. What is true about this well?
It could have either an irrigation grandfathered right or a Type 2
right.
It has an irrigation grandfathered right.
The well could have either a Type 1 or Type 2 right.
This well has a Type 2 right. Correct Answers This well has a
Type 2 right.
A contract that is in theory legal, but is not defensible in court,
would be considered _________.
Unenforceable
,Valid
Void
Voidable Correct Answers Unenforceable
A developer, Howard, has purchased land with the expectation
of constructing an apartment building. He explains to his lender
that he'll need a construction loan as well, so the mortgage they
sign includes what kind of clause to allow the construction
loan's lien position to take priority?
Exculpatory
Non-recourse
Pre-payment
Subordination Correct Answers Subordination
A judgment that results in a payment from the Arizona real
estate recovery fund counts as ______ on the part of the
licensee.
Evidence of a violation
Reasonable care
Reasonable cause for permanent license revocation
Satisfaction of judgment Correct Answers Evidence of a
violation
A property management agreement may not be assigned to
another licensee without ______.
A "change of property manager" clause
Approval from the designated broker
The owner's written consent
Verbal approval from all parties Correct Answers The owner's
written consent
,After meeting with his business manager, Daniel has decided to
sell his office building in order to free up some capital. He's
going to lease it from the new owner, Blake, so he can stay in
place. What type of lease does he have?
Escalated
Ground lease
Lease option
Sale and leaseback Correct Answers Sale and leaseback
An Arizona lender forecloses judicially on a residential property
on an urban street. What situation would cause the redemption
period after the sale to be shortened to 30 days?
The homeowner is still residing on the property.
The loan balance remaining is more than 50% of the original.
The property is commercial.
The property was considered abandoned. Correct Answers The
property was considered abandoned.
Cam is a broker. His licensees, Jane and John, represent two
sides in a single transaction. Jane represents the seller; John
represents the buyer. What relationship does Cam have to the
buyer and the seller?
Cam is a designated agent to both the buyer and seller.
Cam is a designated agent to the buyer and a dual agent to the
seller.
Cam is a designated agent to the seller and a dual agent to the
buyer.
Cam is a dual agent to both the buyer and seller. Correct
Answers Cam is a dual agent to both the buyer and seller.
, Can police power ever be used in a way that restricts citizens'
freedom?
No, that's beyond the scope of police power.
Yes, but only when the citizen has committed a crime.
Yes, if it's for the public good.
Yes, that's the purpose of police power. Correct Answers Yes,
if it's for the public good.
Carrie Ann needs to install a septic system at her new
farmhouse. If she installs a typical system without any special
bells and whistles, how much is it likely to cost?
$16,000
$2,500
$25,000
$8,000 Correct Answers $8,000
Contrary to federal fair housing laws, the state where Katrina
lives includes age as a protected class. Which of these
statements about this conflict is true?
Katrina can follow either the federal or the state law as long as
she is consistent.
Katrina is permitted to follow whichever law is least restrictive.
Katrina must follow federal law for any federally related
transaction.
Katrina must follow the more restrictive of federal or state law.
Correct Answers Katrina must follow the more restrictive of
federal or state law.
Determining who the buyers of subdivision homes are, the
market niche to target, and whether to have different price points
COMPLETE SOLUTIONS
______ determines who the heir or heirs will be if a person dies
without a will.
Court appointment
Escheat
Intestate bequest
Intestate succession Correct Answers Intestate succession
_______ policies provide extra coverage beyond those offered
by primary policies.
Blanket
Secondary
Umbrella
Universal Correct Answers Umbrella
A client of yours is selling a piece of property with a well
attached. He's not allowed to use the well for irrigation, but he
uses it to water his livestock. He can sell the water right
separately from his property. What is true about this well?
It could have either an irrigation grandfathered right or a Type 2
right.
It has an irrigation grandfathered right.
The well could have either a Type 1 or Type 2 right.
This well has a Type 2 right. Correct Answers This well has a
Type 2 right.
A contract that is in theory legal, but is not defensible in court,
would be considered _________.
Unenforceable
,Valid
Void
Voidable Correct Answers Unenforceable
A developer, Howard, has purchased land with the expectation
of constructing an apartment building. He explains to his lender
that he'll need a construction loan as well, so the mortgage they
sign includes what kind of clause to allow the construction
loan's lien position to take priority?
Exculpatory
Non-recourse
Pre-payment
Subordination Correct Answers Subordination
A judgment that results in a payment from the Arizona real
estate recovery fund counts as ______ on the part of the
licensee.
Evidence of a violation
Reasonable care
Reasonable cause for permanent license revocation
Satisfaction of judgment Correct Answers Evidence of a
violation
A property management agreement may not be assigned to
another licensee without ______.
A "change of property manager" clause
Approval from the designated broker
The owner's written consent
Verbal approval from all parties Correct Answers The owner's
written consent
,After meeting with his business manager, Daniel has decided to
sell his office building in order to free up some capital. He's
going to lease it from the new owner, Blake, so he can stay in
place. What type of lease does he have?
Escalated
Ground lease
Lease option
Sale and leaseback Correct Answers Sale and leaseback
An Arizona lender forecloses judicially on a residential property
on an urban street. What situation would cause the redemption
period after the sale to be shortened to 30 days?
The homeowner is still residing on the property.
The loan balance remaining is more than 50% of the original.
The property is commercial.
The property was considered abandoned. Correct Answers The
property was considered abandoned.
Cam is a broker. His licensees, Jane and John, represent two
sides in a single transaction. Jane represents the seller; John
represents the buyer. What relationship does Cam have to the
buyer and the seller?
Cam is a designated agent to both the buyer and seller.
Cam is a designated agent to the buyer and a dual agent to the
seller.
Cam is a designated agent to the seller and a dual agent to the
buyer.
Cam is a dual agent to both the buyer and seller. Correct
Answers Cam is a dual agent to both the buyer and seller.
, Can police power ever be used in a way that restricts citizens'
freedom?
No, that's beyond the scope of police power.
Yes, but only when the citizen has committed a crime.
Yes, if it's for the public good.
Yes, that's the purpose of police power. Correct Answers Yes,
if it's for the public good.
Carrie Ann needs to install a septic system at her new
farmhouse. If she installs a typical system without any special
bells and whistles, how much is it likely to cost?
$16,000
$2,500
$25,000
$8,000 Correct Answers $8,000
Contrary to federal fair housing laws, the state where Katrina
lives includes age as a protected class. Which of these
statements about this conflict is true?
Katrina can follow either the federal or the state law as long as
she is consistent.
Katrina is permitted to follow whichever law is least restrictive.
Katrina must follow federal law for any federally related
transaction.
Katrina must follow the more restrictive of federal or state law.
Correct Answers Katrina must follow the more restrictive of
federal or state law.
Determining who the buyers of subdivision homes are, the
market niche to target, and whether to have different price points
