Real Estate (Arizona) Questions With Complete Solutions
_______ agreements best protect a listing broker's commission.
Correct Answers Exclusive right-to-sell
A ______ is advisory in nature, intended to encourage a licensee
to modify or eliminate certain practices in order to avoid future
disciplinary action. It stays in a licensee's record for future
consideration. Correct Answers Letter of concern
A binding contract specifying all the terms and conditions of a
real estate transaction is called... Correct Answers A purchase
contract
A building permit is required in Arizona when the ______
and/or electrical, gas, plumbing, or mechanical systems are
affected. Correct Answers Structure
A four-bedroom, four-bath, 4,875-square-foot house was listed
at $445,000. Andreas, the seller, accepted an offer that was 95%
of the listing price. What price per square foot did he get for the
house? Correct Answers $86.72
A home was appraised at $360,000, the assessment rate is 80%,
and the tax rate is 22 mills. What are the yearly property taxes?
Correct Answers Multiply the assessed value x the assessment
rate to get the taxable value ($360,000 × .80 = $288,000). The
multiply the taxable value by the mill rate and divide by 1,000
($288,000 × 22 ÷ 1,000 = 6,336.00).
,A jewelry store is relocating from a mall to a free-standing
building and is pulling all of its display cases out of the
storefront. These cases belong to the jewelry store because they
are Correct Answers Trade fixtures are used for commercial
purposes, and commercial tenants are generally allowed to make
these improvements, then restore the property to its original state
before moving out.
A lender attaches this to a purchase contract in order to provide
information on a buyer's ability to qualify for financing. Correct
Answers Pre-qualification form
A new homeowner asks you, "Why is there a charge on my
water bill from CAGRD?" What should you say?
1- "Oh, that's a charge to use the Colorado River water that's
delivered to your municipality."
2- "This charge goes to help preserve and protect Arizona's
remaining wetlands."
3- "This charge goes to help replenish the groundwater that you
used. CAGRD is the authority that does this."
4- "This is a charge from your developer, who had to build a
water storage facility for your neighborhood." Correct Answers
3- "This charge goes to help replenish the groundwater that you
used. CAGRD is the authority that does this."
A town passes a zoning ordinance preserving the architectural
style of an area and requiring plantings in the parking strips.
This is an example of ______. Correct Answers Aesthetic
zoning
,ABC Bank in Arizona financed Betty's purchase of a three-
bedroom home a few years ago. She kept up with the payments
on the loan until a few months ago but is now in default. How
will ABC Bank most likely go about initiating the foreclosure
process? Correct Answers Ask the trustee on the deed of trust
to record a Notice of Trustee's Sale with the county.
According to Arizona law, how long does a purchaser have to
back out of buying unsubdivided land without consequences?
Correct Answers 7 Calendar days
Adjustable-Rate Mortgage (ARM) Correct Answers A
mortgage with a rate that adjusts based on changes in a market
index
Ex. Caleb had a 5/1 ARM. His loan had a fixed interest rate for
the first five years, and after 5 years, it could change annually
depending on changes to the market index.
Adjustments to closing costs are prorated as of what date?
Correct Answers Closing date
Adverse Material Fact Correct Answers A fact that might cause
the buyer to change his mind about purchasing the property.
Ex. When Chet learned that a railway was being built behind the
property, he withdrew his offer. That was an adverse material
fact he couldn't live with.
Adverse Possession Correct Answers A person actually and
visibly possesses someone else's real property for a statutory
, length of time and then claims it as his or her own; openly
hostile to another's ownership claim.
Ex. Ralph had been using Kimo's land for nearly two decades
before they realized the land actually belong to Kimo. Ralph
was able to claim the land through adverse possession
Alexandra moved out of an Arizona rental house on the second
of the month. How long does her landlord have to refund the
security deposit and/or provide an itemized list of deductions?
Correct Answers 14 business days
An acre refers to an area of land that is exactly ______ square
feet. Correct Answers 43,560
An executory contract is one that's been Correct Answers
Started
An unenforceable contract is one that... Correct Answers Won't
stand up in court
Anderson Frost has received a notice that the Arizona Real
Estate Commission has denied his application for public report.
He is certain that a mistake must have been made and decides to
appeal the decision. How long does Anderson have to file his
objection? Correct Answers 30 days from receipt of the denial
(If an owner is denied a public report, he may file a written
request for a hearing within 30 days of the denial. The hearing
must be held within 20 days of receipt of the request unless the
owner asks for a postponement.)
_______ agreements best protect a listing broker's commission.
Correct Answers Exclusive right-to-sell
A ______ is advisory in nature, intended to encourage a licensee
to modify or eliminate certain practices in order to avoid future
disciplinary action. It stays in a licensee's record for future
consideration. Correct Answers Letter of concern
A binding contract specifying all the terms and conditions of a
real estate transaction is called... Correct Answers A purchase
contract
A building permit is required in Arizona when the ______
and/or electrical, gas, plumbing, or mechanical systems are
affected. Correct Answers Structure
A four-bedroom, four-bath, 4,875-square-foot house was listed
at $445,000. Andreas, the seller, accepted an offer that was 95%
of the listing price. What price per square foot did he get for the
house? Correct Answers $86.72
A home was appraised at $360,000, the assessment rate is 80%,
and the tax rate is 22 mills. What are the yearly property taxes?
Correct Answers Multiply the assessed value x the assessment
rate to get the taxable value ($360,000 × .80 = $288,000). The
multiply the taxable value by the mill rate and divide by 1,000
($288,000 × 22 ÷ 1,000 = 6,336.00).
,A jewelry store is relocating from a mall to a free-standing
building and is pulling all of its display cases out of the
storefront. These cases belong to the jewelry store because they
are Correct Answers Trade fixtures are used for commercial
purposes, and commercial tenants are generally allowed to make
these improvements, then restore the property to its original state
before moving out.
A lender attaches this to a purchase contract in order to provide
information on a buyer's ability to qualify for financing. Correct
Answers Pre-qualification form
A new homeowner asks you, "Why is there a charge on my
water bill from CAGRD?" What should you say?
1- "Oh, that's a charge to use the Colorado River water that's
delivered to your municipality."
2- "This charge goes to help preserve and protect Arizona's
remaining wetlands."
3- "This charge goes to help replenish the groundwater that you
used. CAGRD is the authority that does this."
4- "This is a charge from your developer, who had to build a
water storage facility for your neighborhood." Correct Answers
3- "This charge goes to help replenish the groundwater that you
used. CAGRD is the authority that does this."
A town passes a zoning ordinance preserving the architectural
style of an area and requiring plantings in the parking strips.
This is an example of ______. Correct Answers Aesthetic
zoning
,ABC Bank in Arizona financed Betty's purchase of a three-
bedroom home a few years ago. She kept up with the payments
on the loan until a few months ago but is now in default. How
will ABC Bank most likely go about initiating the foreclosure
process? Correct Answers Ask the trustee on the deed of trust
to record a Notice of Trustee's Sale with the county.
According to Arizona law, how long does a purchaser have to
back out of buying unsubdivided land without consequences?
Correct Answers 7 Calendar days
Adjustable-Rate Mortgage (ARM) Correct Answers A
mortgage with a rate that adjusts based on changes in a market
index
Ex. Caleb had a 5/1 ARM. His loan had a fixed interest rate for
the first five years, and after 5 years, it could change annually
depending on changes to the market index.
Adjustments to closing costs are prorated as of what date?
Correct Answers Closing date
Adverse Material Fact Correct Answers A fact that might cause
the buyer to change his mind about purchasing the property.
Ex. When Chet learned that a railway was being built behind the
property, he withdrew his offer. That was an adverse material
fact he couldn't live with.
Adverse Possession Correct Answers A person actually and
visibly possesses someone else's real property for a statutory
, length of time and then claims it as his or her own; openly
hostile to another's ownership claim.
Ex. Ralph had been using Kimo's land for nearly two decades
before they realized the land actually belong to Kimo. Ralph
was able to claim the land through adverse possession
Alexandra moved out of an Arizona rental house on the second
of the month. How long does her landlord have to refund the
security deposit and/or provide an itemized list of deductions?
Correct Answers 14 business days
An acre refers to an area of land that is exactly ______ square
feet. Correct Answers 43,560
An executory contract is one that's been Correct Answers
Started
An unenforceable contract is one that... Correct Answers Won't
stand up in court
Anderson Frost has received a notice that the Arizona Real
Estate Commission has denied his application for public report.
He is certain that a mistake must have been made and decides to
appeal the decision. How long does Anderson have to file his
objection? Correct Answers 30 days from receipt of the denial
(If an owner is denied a public report, he may file a written
request for a hearing within 30 days of the denial. The hearing
must be held within 20 days of receipt of the request unless the
owner asks for a postponement.)
