Arizona Real Estate Reciprocal Exam Prep Questions With
Complete Solutions
: Immediately disclose the situation to the buyer Correct
Answers As an agent is showing a house to a customer, the
agent notices a large vertical crack in the basement wall. What is
the agent's duty?
$10 Correct Answers How much would a licensed real estate
salesperson have to pay into the real estate recovery fund at next
renewal when the reserve falls below $600,000?
$15
$10
$5
$20
$1000 Correct Answers When a broker is charged an
administrative fine, the amount of the fine is up to:
$12,400
$28,000 - $15,600 = $12,400. Insurance and property taxes
would've been deducted from the effective gross income as
operating expenses to arrive at the NOI. Correct Answers The
operating statement on Ken's rental property shows an effective
gross income of $48,750 and a net operating income of $28,000.
He pays $2,900 a year for insurance, $7,000 a year for property
taxes, and $15,600 a year on his mortgage. What is the cash
flow before income taxes?
,$19,620 Correct Answers Investor Amy bought a four-unit
apartment for $230,400. Each Unit rents for $800 a month. She
assumes a 10% vacancy/credit loss annually and has no
additional income source on the property. The annual
management costs are $8200. The annual maintenance costs are
$4,100. The annual insurance costs are $2,640. What is the
NOI?
$22,346
$875, because 39 is the number of years allotted for
commercial buildings by the IRS. Correct Answers how much
can a property owner deduct from his annual taxes when the
depreciated basis of an office building is $875,000?
$250,000 of gain for single taxpayers
$500,000 of gain for married couples filing jointly Correct
Answers In the sale of a personal residence, Capital gains will
be excluded from being taxed up to:
$30,492; 1 acre = 43,560 so take (1.75x43,560) which gives you
$76,230. Then take $76,230 and times it by .40 for 40 cents per
square foot, which then gives you $30,492. Correct Answers A
1.75 acre lot sells for 40 cents per square foot. What is the
selling price?
$ Total Correct Answers The maximum amount
of money which a person or persons may recover from the real
estate recovery fund per transaction is:
$90000
$30000 correct!
,$15000
$10000
$420,000; frontage lot is the first number 50x100 and 100x100.
Add these two for 150. Then multiply 150 by 2800 for $420,000
Correct Answers Ivy bought two adjacent lots. Lot A is
50'x100' and Lot B is 100'x100'. She divided the two lots into
three lots and is selling them for $2,800 per front foot. If she
sells all three for her asking price, how much will Ivy get?
$5,000 fully refundable Correct Answers What is the
maximum deposit allowed with a lot reservation?
$5,000 non-refundable
$10,000 fully refundable
$5,000 fully refundable correct!
$10,000 non-refundable
1 year Correct Answers A salesperson passes the real estate
exam. Their scores remain valid for:
90-days
6 months
2 years
1 year
1.5 month's rent Correct Answers What is the maximum-
security deposit allowed according to the Residential Landlord
Tenant Act?
1.5 month's rent
One month's rent
1/2 month's rent plus last month
First and last month's rent
, 1) 1,100,000 * 6% = $66,000 commission on first. 2) 97,000 -
66,000 = $31,000 remaining commission earned. 3) 1,800,000 -
1,100,000 = $700,000 remaining property value not paid
commission on yet. 4) 31,,000 = 0.044 (or 4.4%) if the
answer is in the form of a percent divide little number by big
number. Correct Answers A property sold for $1,800,000.
Total commission charged was $97,000. 6% commission was
charged on the first $1,100,000. What percent was charged on
the remainder?
1) 113,000 * .07 = 7,910 (commission) 2) 110,000 * 2.5% =
2,750 (points) 3) 113,000 - 7,910 - 2,750 -120 - 40 - 72,340 =
29,840 (net to seller) Correct Answers Mr. and Mrs. B. sold
their house for $113,000, with a 7% commission. The buyer is
getting a VA loan for $110,000. The seller is asked to pay the 2
and 1/2 points, title insurance of $120, termite inspection of $40.
They also have a balance of $72,340 on their current home loan.
How much money will they be receiving at close of escrow?
1) 75,% = $100,000 (annual commission included
broker portion) 2) 100,% = $1,428,571 (annual sales
volume) 3) 1,428, months = $119,047 (monthly sales
volume) His monthly dollar volume of sales was $119,047.
Correct Answers A salesperson earns $75,000 per year. If he
receives 75% of the 7% commissions paid to his firm on his
sales, what is his monthly dollar volume of sales?
10 Correct Answers How many acres are contained in the
following description- NW 1/4, SW 1/4, NE 1/4, Section 22?
Complete Solutions
: Immediately disclose the situation to the buyer Correct
Answers As an agent is showing a house to a customer, the
agent notices a large vertical crack in the basement wall. What is
the agent's duty?
$10 Correct Answers How much would a licensed real estate
salesperson have to pay into the real estate recovery fund at next
renewal when the reserve falls below $600,000?
$15
$10
$5
$20
$1000 Correct Answers When a broker is charged an
administrative fine, the amount of the fine is up to:
$12,400
$28,000 - $15,600 = $12,400. Insurance and property taxes
would've been deducted from the effective gross income as
operating expenses to arrive at the NOI. Correct Answers The
operating statement on Ken's rental property shows an effective
gross income of $48,750 and a net operating income of $28,000.
He pays $2,900 a year for insurance, $7,000 a year for property
taxes, and $15,600 a year on his mortgage. What is the cash
flow before income taxes?
,$19,620 Correct Answers Investor Amy bought a four-unit
apartment for $230,400. Each Unit rents for $800 a month. She
assumes a 10% vacancy/credit loss annually and has no
additional income source on the property. The annual
management costs are $8200. The annual maintenance costs are
$4,100. The annual insurance costs are $2,640. What is the
NOI?
$22,346
$875, because 39 is the number of years allotted for
commercial buildings by the IRS. Correct Answers how much
can a property owner deduct from his annual taxes when the
depreciated basis of an office building is $875,000?
$250,000 of gain for single taxpayers
$500,000 of gain for married couples filing jointly Correct
Answers In the sale of a personal residence, Capital gains will
be excluded from being taxed up to:
$30,492; 1 acre = 43,560 so take (1.75x43,560) which gives you
$76,230. Then take $76,230 and times it by .40 for 40 cents per
square foot, which then gives you $30,492. Correct Answers A
1.75 acre lot sells for 40 cents per square foot. What is the
selling price?
$ Total Correct Answers The maximum amount
of money which a person or persons may recover from the real
estate recovery fund per transaction is:
$90000
$30000 correct!
,$15000
$10000
$420,000; frontage lot is the first number 50x100 and 100x100.
Add these two for 150. Then multiply 150 by 2800 for $420,000
Correct Answers Ivy bought two adjacent lots. Lot A is
50'x100' and Lot B is 100'x100'. She divided the two lots into
three lots and is selling them for $2,800 per front foot. If she
sells all three for her asking price, how much will Ivy get?
$5,000 fully refundable Correct Answers What is the
maximum deposit allowed with a lot reservation?
$5,000 non-refundable
$10,000 fully refundable
$5,000 fully refundable correct!
$10,000 non-refundable
1 year Correct Answers A salesperson passes the real estate
exam. Their scores remain valid for:
90-days
6 months
2 years
1 year
1.5 month's rent Correct Answers What is the maximum-
security deposit allowed according to the Residential Landlord
Tenant Act?
1.5 month's rent
One month's rent
1/2 month's rent plus last month
First and last month's rent
, 1) 1,100,000 * 6% = $66,000 commission on first. 2) 97,000 -
66,000 = $31,000 remaining commission earned. 3) 1,800,000 -
1,100,000 = $700,000 remaining property value not paid
commission on yet. 4) 31,,000 = 0.044 (or 4.4%) if the
answer is in the form of a percent divide little number by big
number. Correct Answers A property sold for $1,800,000.
Total commission charged was $97,000. 6% commission was
charged on the first $1,100,000. What percent was charged on
the remainder?
1) 113,000 * .07 = 7,910 (commission) 2) 110,000 * 2.5% =
2,750 (points) 3) 113,000 - 7,910 - 2,750 -120 - 40 - 72,340 =
29,840 (net to seller) Correct Answers Mr. and Mrs. B. sold
their house for $113,000, with a 7% commission. The buyer is
getting a VA loan for $110,000. The seller is asked to pay the 2
and 1/2 points, title insurance of $120, termite inspection of $40.
They also have a balance of $72,340 on their current home loan.
How much money will they be receiving at close of escrow?
1) 75,% = $100,000 (annual commission included
broker portion) 2) 100,% = $1,428,571 (annual sales
volume) 3) 1,428, months = $119,047 (monthly sales
volume) His monthly dollar volume of sales was $119,047.
Correct Answers A salesperson earns $75,000 per year. If he
receives 75% of the 7% commissions paid to his firm on his
sales, what is his monthly dollar volume of sales?
10 Correct Answers How many acres are contained in the
following description- NW 1/4, SW 1/4, NE 1/4, Section 22?
