AZ LICENSE 2 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

AZ LICENSE 2 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 What's the name of the act that requires public accommodation areas to be accessible? - Answers Americans with Disabilities Act Which range of credit scores represents subprime borrowers? - Answers 580-669 Adjustments to closing costs are prorated as of what date? - Answers Closing date Homeowner Lynn is underwater on her home loan and is having difficulty making her monthly payments. Which of these options would allow Lynn to avoid foreclosure, even though she'll lose her property and will need lender approval? - Answers Deed in lieu of foreclosure or short sale James is a trustee for an estate that's being sold. What are the license requirements for James under Arizona statute? - Answers There is no requirement to have any type of real estate license. Dee-Dee, a listing agent, has an exclusive right-to-sell agreement with her seller clients. She is providing a CMA, marketing the property, listing it on the MLS, and handling buyer inquiries. When she has a buyer on the line, she'll negotiate with the buyer's agent and prepare the offer to purchase. She works on a commission basis rather than for a flat fee. What type of listing service is she providing? - Answers Full service Kevin and Regina sold their property to Virginia using a general warranty deed. Which of these statements is true? - Answers Virginia is the grantee. What's the purpose of the title search? - Answers To collect evidence that the title is a marketable title, meaning it's clear and free of encumbrances If Carol and Doug Shields died intestate, their estate would be conveyed to their heirs through which method of alienation? - Answers Descent Justin decided to build a privacy fence around his yard. He thought the fence was along the property line, but it turns out he built it one foot inside his neighbor's property. What will an inspector document as existing on the neighboring property? - Answers Encroachment Which of the following could an investor who sells an apartment house buy using a 1031 exchange? - Answers Duplex, office building, or warehouse In Arizona, what is a public report? - Answers A report that provides information about the water supply, soil, and other information that subdivision occupants need. Cheng is selling his property to Jericho. What's the best method Jericho can use to ensure his interest in the property? - Answers Record the deed in his name. Arizona licensee Kurt is within his original license period, but his license was cancelled. He resolved the cancellation issues, and is eligible for reinstatement through ______. - Answers Re-application Vantagestar Ltd. would like to construct a high-end condominium complex. Where will they likely go for financing this project? - Answers A life insurance company Jake, an Arizona licensee, presents his seller client with all of the offers he receives and presents counter-offers when appropriate. What statutory duty is Jake performing for his client? - Answers Serving the client's best interests Which one of the following tasks must a licensee perform for seller clients? - Answers Inform sellers of their responsibility to make all required property condition disclosures. Savannah has just been selected by the governor to serve on the Arizona real estate advisory board. She expects to receive money for _____. - Answers Any travel expenses she may have. Which factor that influences value considers the property's function? - Answers Utility Which of the following is true about pocket listings? - Answers They are off-market listings. Landlord Lou asks tenant Tom to sign a written rental agreement that has a provision that attorney fees may be awarded to the prevailing party if there is a court action. Tom signs it. Which of thThis is not a prohibited provision, so Lou's done nothing wrong, and the lease is valid (assuming all other elements are legal).e following is true in this situation? - Answers This is not a prohibited provision, so Lou's done nothing wrong, and the lease is valid (assuming all other elements are legal). There are three sources of Arizona real estate law: the Arizona Administrative Code, the Arizona Revised Statues, and the ______. - Answers Arizona State Constitution Fran, a broker, recently had a real estate transaction implode on her when the ______ was overly concerned about cosmetic details of a property. - Answers Home inspector Deed restrictions imposed by a developer who wants to maintain specific standards in a subdivision under development are often called ______. - Answers Restrictive covenants What's a typical prepaid item that will go into a seller's credit column and a buyer's debit column on a closing statement? - Answers Property taxes Your client Roger is working to get an Adequate Water Supply certificate before he develops a subdivision. Which of the following statements about his situation is true? - Answers He isn't developing an area within an AMA. Lydia put the minimum 3.5% down on her $210,000 home. She'll have to pay an MIP. What type of loan does Lydia have? - Answers FHA Which of the following is a quality of a marketable title? - Answers It allows the owner to mortgage the property. For each Arizona branch office that an employing broker opens, a separate ______ must be attained. - Answers Branch office license What is the best description of a deed? - Answers A document to transfer ownership/interest in real estate Claudia wanted to build a large-scale toy manufacturing plant in her backyard, but was prevented from doing so by ______. - Answers Zoning regulations Eminent domain is the governments' power to take private land for public use. What is it called when the government actually seizes someone's property? - Answers Condemnation After a life estate holder dies and ownership rights have either reverted to the original owner or have been transferred to a remainderman, with what type of estate is the property held? - Answers Fee simple In which of the following types of contracts has one or more of the contract's terms yet to be completed? - Answers Executory contract Which of the following statements best describes a listing that terminates by performance? - Answers Roberto listed a property for Terrence. After two failed offers, the property made it to a successful closing. Which range of credit scores do most consumers fall into? - Answers 670 to 739 According to the FTC privacy rule, a landlord or property manager would have to obtain a tenant's written consent before sharing the tenant's personal information with which of the following? - Answers An unaffiliated third party A central element of an antitrust violation is ______. - Answers Conspiracy Which one of these would NOT be an element of comparison an appraiser would use when applying the sales comparison approach to a property valuation? - Answers Income generated Which term means the power of the government to take private land for public use? - Answers Eminent domain The Harris family farmland has been converted to build a subdivision. Which of the following rights is it given? - Answers Type 1 right The _______ retains jurisdiction over all matters regarding unsubdivided land in Arizona law, even if other agencies claim jurisdiction. - Answers Commissioner of the Arizona Department of Real Estate Remembering the acronym ______ can help you remember the fiduciary duties an agent owes to a client. - Answers OLD CAR Devin recently purchased a home in an airport influence area. What does this mean for him? - Answers He is in an area that experiences aircraft noise and overflight of a 65-decibel or greater average or an area near a runway that experiences significant aircraft noise and overflights. A property management agreement must contain ______. - Answers The type and frequency of status reports the property manager will provide to the owner AZ ROC officers are paid no more than ______ for each day they perform commission business. - Answers $30 Iris is planning to purchase her first home. Based on what you know about the nature of real estate finance in our country, which approach is she most likely to use? - Answers Obtaining a loan to purchase the home If you have an 800-square-foot rectangular building and it sells for $75,000, that equates to ______ per square foot. - Answers $93.75 As part of his lease agreement with his landlord, Alex mows the grass around his apartment building each week in return for a small reduction in rent. What is this an example of? - Answers Covenant Marvin knows that three-bedroom properties with two bathrooms sell quickest in his market. In an ad for a new listing, he wrote, "Bonus room could easily be a third bedroom." Marla and Tom visit the property with their agent, and Tom, a construction supervisor, notes that the bonus room couldn't be easily converted to a bedroom because it's too small, it has no egress and no heat source, and it can only be accessed by walking through a bathroom. Is Marvin guilty of misrepresentation? - Answers Yes, because he should have known there would be major issues converting that room to a bedroom. Can you recognize which of the following is identity theft? - Answers Alex's credit card number was copied at the gas station and then used to pay for the thief's own gas. Annie and George have been saving and are finally ready to purchase their first home for their family (including their two toddlers). They want to make an offer on a sweet little bungalow in a quiet neighborhood. If the sellers are represented by a real estate licensee, which situation would be a violation of fair housing laws? - Answers Their offer is rejected because the seller knows the neighbors don't like children. Which of these fits the description of the "rent deduction" remedy? - Answers The landlord didn't fix plumbing, so the tenant did, and deducted it from the rent What's the annual interest on a $20,000 loan on which the interest rate is 6.5%? - Answers $1,300 Frank owns a property on which there is walkway to the beach shared by his neighbors on either side. What is Frank's property? - Answers Servient estate What does the parol evidence rule state? - Answers In certain cases, oral evidence can be used to support or complete an otherwise incomplete or ambiguous contract. Which of the following terms means the price a property is worth to its owner as currently enjoyed? - Answers Value in use Which of the following describes the amount a lender charges a borrower for using money? - Answers Interest At the root of Arizona's Residential Landlord and Tenant Act is the state's desire to keep quality rental housing available to state residents. What's the act's main purpose? - Answers Clarify the rights and obligations of landlords and tenants. Which of the following leases is more commonly used with retail properties, such as shopping centers and malls? - Answers Percentage leases Fontaine and Charles are concerned about some items in the inspection report they just received. They elect to request that the seller repair the electrical panel and the HVAC system. Which of these statements is true? - Answers The contract requires that agreed-upon corrections be made within the time noted in the contract Cooperative shareholders under a condop structure have ______. - Answers Flexibility in selling and subletting, similar to that of condominium owners Buyers Tony and Sylvia know the postal address of the property they're purchasing but are wondering about the legal description of the property. Where is the most likely place to find the legal description? - Answers Deed If downzoning occurs in one area, reducing property values in adjacent areas, what can the homeowners in those adjacent areas do? - Answers If downzoning occurs in one area, reducing property values in adjacent areas, what can the homeowners in those adjacent areas do? Once the market study has been conducted, a developer can apply to ________________ for approvals. - Answers State and local agencies Peter is a tenant in a single-family home owned by Cheyenne. What type of interest does Cheyenne have in the property? - Answers Freehold Which of the following costs are NOT eligible for disbursement from the Arizona real estate recovery fund? - Answers Damages for pain and suffering Which of the following are substances found in air fresheners, cleansers, paint, and building materials that can make indoor air quality toxic at high levels? - Answers VOCs What does a void contract lack that makes it void? - Answers Legality John is selling his rental property to Tony. Marcus represents John, and Meredith is working with Tony, though there is no agency relationship between them. In this scenario, who is/are the principal(s) in an agency relationship? - Answers John What could be a consequence if there were no secondary mortgage market? - Answers Lenders might not have funds available to make new loans to the public. 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 ______. - Answers Aesthetic zoning What's the term for a lender refusing to lend in a specific area, often based on the area's minority make-up? - Answers Redlining The property management proposal includes information such as ______. - Answers Details about the property manager's qualifications If a real estate professional discovers that another real estate professional is engaging in discriminatory marketing practices, what action should he or she take? - Answers Make a complaint to the National Association of REALTORS® or to the Department of Housing and Urban Development Tristan refuses to let Marla list his property on the MLS, even though Marla told him that more exposure to the property will generate more potential buyers. Which two fiduciary duties are at odds in this situation? - Answers Reasonable skill and care and obedience Which of these property managers would require a license to perform property management services in Arizona? - Answers An off-site property manager who manages three commercial properties Which clause in the listing agreement gives the listing broker the authority and obligates the broker to market the property to other brokers? - Answers Multiple listing clause Which of the following is a potential disadvantage for a buyer who enters into a lease with an option to buy contract? - Answers The buyer/lessee could lose any funds credited to the purchase price if he breaches the lease's terms. Which clause in the deed of trust is the equivalent of the defeasance clause in the mortgage? - Answers Reconveyance Randall purchased a home in Scottsdale without realizing that the previous owners hadn't paid their property taxes in more than a year. What is likely to happen to Randall now that he is the new owner? - Answers Randall purchased a home in Scottsdale without realizing that the previous owners hadn't paid their property taxes in more than a year. What is likely to happen to Randall now that he is the new owner? Arizona employing brokers are required to establish _____ to supervise and control the activities of their employees and satisfy the state's requirements. - Answers Written policies and procedures Rhonda and Jade both consider themselves African-American, although Rhonda has much darker skin and hair than Jade. When Rhonda went to the Valley Falls apartment manager's office to request a rental application, she was told there were no vacancies. Jade went in a day later and received an application. This may be discrimination based on ______. - Answers Color Which of these scenarios is an example of nomination? - Answers Jessie named Serena to purchase a property on his behalf. The agreement requires Serena to convey the property to Jessie immediately after closing.