Arizona State Law Exam Questions With Complete
Solutions
A "credit" is: Correct Answers A sum of money that is to be
received
A charge against a property owner to cover the proportionate
cost of street paving is: Correct Answers An assessment
A contract states that the taxes be prorated between the buyer
and seller. The taxes have been paid in advance. The proper
entry on the closing statement is: Correct Answers Credit the
seller and debit the buyer
A deed should be recorded in order to: Correct Answers
Provide constructive notice to the world
A few real estate brokers from different companies were
discussing the possibility of establishing an office policy to list
for sale all raw land at a 10% commission. Which of the
following is true? Correct Answers The brokers are in violation
of the Sherman Anti-Trust laws
Of primary concern with this law is collusion between people or
organizations to limit competition or set artificial price controls.
A given real estate transaction closes on March 10, 2021. Real
estate taxes for 2020 were $2,015.00. Real estate taxes for 2021
are not yet set. Using a calendar year formula, the real estate
taxes should be prorated as follows: Correct Answers Debit
seller - credit buyer $375.36
,Since the taxes for 2021 are not yet set, the proration must be
based upon the known quantity of the taxes for 2020, which are
$2,015.00. Using a calendar year formula, there are 31 days in
January- 28 days in February- and 9 days in March for which the
seller is responsible. (The day of closing is the responsibility of
the buyer). This makes a total of 68 days in 2005 that the seller
has held the title to the property so the seller will normally pay
for 68 days of real estate taxes.
To find the daily tax Divide the total taxes ($2,015.00) by the
total number of days in a calendar year (365). $2,015/365 =
$5.52 per day.- $5.52 x 68 days = $375.36. This is the amount
for which the seller is responsible.
However, since the 2005 taxes are not due until October 1, 2005,
a credit for $375.36 is given to the buyer on the settlement sheet
and the buyer will then pay whatever the 2005 taxes amount to
when they come due on October 1, 2005. Since the money
($375.36) is taken from the seller, a debit of $375.36 is charged
to the seller.
A landlord is obligated to account for the residential tenant's
security deposit within: Correct Answers Fourteen days of
lease termination and demand
A landlord may inspect a rental unit if: Correct Answers 2
days' notice is given
A landlord may inspect a residential rental unit if: Correct
Answers Two days' notice is given
, A landlord or tenant may terminate a month to month lease by
written notice with ______ days' notice. Correct Answers 30
A landlord takes an application for the rental of a one-bedroom
unit from a married couple with no children, and then from a
single woman with two children under age two. The landlord
rents to the married couple over the single woman because the
woman has two children. Assuming all other things are equal
(i.e. credit, income, references etc.), has the landlord engaged in
unlawful discrimination? Correct Answers No. An occupancy
limitation of two persons per bedroom residing in a dwelling
unit is presumed reasonable according to Arizona law
A listing which employs many brokers and also allows the seller
to sell without paying a commission is called Correct Answers
open listing
A pre-determined compensation that may be due to the seller if
the buyer defaults on a real estate purchase contract are referred
to as: Correct Answers Liquidated damages
A preliminary title report would tell you all of the following
except: Correct Answers Zoning
A property appraises for $175,000 and the buyer has agreed to
pay the appraised value as the sale price. The lender has agreed
to make a 90% loan to the buyer based on 2.5 discount points
and a one percent loan origination fee. If the buyer accepts the
lender's terms, how much will the buyer owe at closing for
points and the origination fee? Correct Answers The loan
Solutions
A "credit" is: Correct Answers A sum of money that is to be
received
A charge against a property owner to cover the proportionate
cost of street paving is: Correct Answers An assessment
A contract states that the taxes be prorated between the buyer
and seller. The taxes have been paid in advance. The proper
entry on the closing statement is: Correct Answers Credit the
seller and debit the buyer
A deed should be recorded in order to: Correct Answers
Provide constructive notice to the world
A few real estate brokers from different companies were
discussing the possibility of establishing an office policy to list
for sale all raw land at a 10% commission. Which of the
following is true? Correct Answers The brokers are in violation
of the Sherman Anti-Trust laws
Of primary concern with this law is collusion between people or
organizations to limit competition or set artificial price controls.
A given real estate transaction closes on March 10, 2021. Real
estate taxes for 2020 were $2,015.00. Real estate taxes for 2021
are not yet set. Using a calendar year formula, the real estate
taxes should be prorated as follows: Correct Answers Debit
seller - credit buyer $375.36
,Since the taxes for 2021 are not yet set, the proration must be
based upon the known quantity of the taxes for 2020, which are
$2,015.00. Using a calendar year formula, there are 31 days in
January- 28 days in February- and 9 days in March for which the
seller is responsible. (The day of closing is the responsibility of
the buyer). This makes a total of 68 days in 2005 that the seller
has held the title to the property so the seller will normally pay
for 68 days of real estate taxes.
To find the daily tax Divide the total taxes ($2,015.00) by the
total number of days in a calendar year (365). $2,015/365 =
$5.52 per day.- $5.52 x 68 days = $375.36. This is the amount
for which the seller is responsible.
However, since the 2005 taxes are not due until October 1, 2005,
a credit for $375.36 is given to the buyer on the settlement sheet
and the buyer will then pay whatever the 2005 taxes amount to
when they come due on October 1, 2005. Since the money
($375.36) is taken from the seller, a debit of $375.36 is charged
to the seller.
A landlord is obligated to account for the residential tenant's
security deposit within: Correct Answers Fourteen days of
lease termination and demand
A landlord may inspect a rental unit if: Correct Answers 2
days' notice is given
A landlord may inspect a residential rental unit if: Correct
Answers Two days' notice is given
, A landlord or tenant may terminate a month to month lease by
written notice with ______ days' notice. Correct Answers 30
A landlord takes an application for the rental of a one-bedroom
unit from a married couple with no children, and then from a
single woman with two children under age two. The landlord
rents to the married couple over the single woman because the
woman has two children. Assuming all other things are equal
(i.e. credit, income, references etc.), has the landlord engaged in
unlawful discrimination? Correct Answers No. An occupancy
limitation of two persons per bedroom residing in a dwelling
unit is presumed reasonable according to Arizona law
A listing which employs many brokers and also allows the seller
to sell without paying a commission is called Correct Answers
open listing
A pre-determined compensation that may be due to the seller if
the buyer defaults on a real estate purchase contract are referred
to as: Correct Answers Liquidated damages
A preliminary title report would tell you all of the following
except: Correct Answers Zoning
A property appraises for $175,000 and the buyer has agreed to
pay the appraised value as the sale price. The lender has agreed
to make a 90% loan to the buyer based on 2.5 discount points
and a one percent loan origination fee. If the buyer accepts the
lender's terms, how much will the buyer owe at closing for
points and the origination fee? Correct Answers The loan
