ARIZONA REAL ESTATE EXAM NEWEST ACTUAL EXAM
COMPLETE 300 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
Article 26 of the State of Arizona constitution gave what powers to real estate
agents:
a. The ability to negotiate leases
b. Authority to prepare real estate documents and draft contracts
c. The rights to charge commissions for selling real estate in Arizona
d. The powers to be able to revise settlement statements - ANSWER: Authority to
prepare real estate documents and draft contracts
An encumbrance could be:
a. Any of these
b. Liability
c. C&R's
d. Lien - ANSWER: Any of these
Before bringing action against a licensee, the department and commissioner must:
a.Must present written notice of any charges and provide the opportunity for a
hearing
b.Provide a notice of intent to file suit via the online messaging system
c.File a public notice in the online database 10 days before suspension
d.Agree to a hearing with both the broker and the agent - ANSWER: Must present
written notice of any charges and provide the opportunity for a hearing
An attorney has a universal agency relationship with his client. The attorney hires
broker Joe to sell the attorney's client's property. Broker Joe is a:
a. Sub agent
b.Dual agent
c.Ratified agent
d.Implied agent - ANSWER: Sub Agent
Which of the following is not a potential remedy to a contract if a real estate agent is
found to be in breach of their fiduciary duties to the client?
a. Recession of the contract
b.Successful termination of contract
c.Monetary fines penalties against the agent
d.Suspension of privileges - ANSWER: Successful termination of contract
,What type of agreement must be signed if an agent is representing more than one
party in a transaction:
a.Agents constant agreement
b.Buyers broker and listing agreement
c.Limited services agreement
d.Dual agency agreement - ANSWER: Dual Agency Agreement
Which of the following is not an involuntary termination of agency relationship?
a.Abandonment
b.A court order
c.Loss of sub agent's broker's license
d.Completion of terms - ANSWER: Completion of terms
Which of the following requires lenders to show the true cost of borrowing money?
a.CERCLA
b.Regulation Z
c.HIPA
d.APR - ANSWER: Regulation Z
A previously contaminated building site being redeveloped into a park could be more
commonly known as a:
Select one:
a.Brownfield
b.Superfund site
c.Developer's integrated opportunity
d.WQARF site - ANSWER: Brownfield
A perspective tenant who has a service animal is denied his rental application due to
a no pets policy:
Select one:
a. This is a violation under the 1988 Fair Housing Amendment Act
b. This is allowed if the residence has a strict no pets policy
c. This is a violation of the 1968 Civil Rights Act
d. This is allowed if the dog weighs over 50 lbs - ANSWER: This is a violation under
the 1988 Fair Housing Amendment Act
When a person dies intestate their property reverts back the state because of:
Select one:
a. Probate
b. Laws of Inheritance
c. Escheat
d. Enabling Act - ANSWER: Escheat
High density single family housing is separated from industrial zoning by use of:
,Select one:
a. Buffer zones
b. Land division permit use
c. Comprehensive integration plan
d. Special use permits - ANSWER: Buffer Zones
FHA generally offers loans to what type of borrower?
Select one:
a. Rural borrowers
b. Borrowers who have little down payment
c. Borrowers with less than perfect credit score
d. FHA does not offer loans - ANSWER: FHA does not offer loans
A deed was signed by the grantor. The grantee never received it and since it was lost,
it was never recorded. What is the status of the property:
Select one:
a. The deed was signed and the property now belongs to grantee
b. The actual ownership was not conveyed since grantee never received it
c. Grantee is legal owner even though he/she was never made aware
d. Grantor's interests will pass automatically to the State - ANSWER: The actual
ownership was not conveyed since grantee never received it
An origination point is equal to what amount?
Select one:
a. 1% of the loan amount
b. 1% above current interest rates
c. 1% of the sale's price
d. $1,000 dollars - ANSWER: 1% of the loan amount
A group of members make up an LLC. The main reason real estate might be owned
by an LLC is:
Select one:
a.LLC pays a lower tax
b.LLC's can operate in any state
c.Members have zero interest in the LLC
d. LLC's offer pass through income tax advantages - ANSWER: LLC's offer pass
through income tax advantages
This type of loan is mainly designed for borrowers over the age of 62:
Select one:
a.Balloon loans
b.Elder loans
c.Reverse mortgage
d.Adjustable rate loans - ANSWER: Reverse mortgage
The biggest difference between government insured loans and conventional loans is:
Select one:
, a.Down payment amount is less on all conventional loans
b.Loan length is always 30 years on conventional loans
c.Interest rates are always lower on government loans
d.Government loans meet all conforming guidelines - ANSWER: Government loans
meet all conforming guidelines
Discount points and origination points:
Select one:
a.Both charged only one time
b.Based on the borrower's credit score
c.Will vary throughout the loan duration
d.Both used to lower the interest rate - ANSWER: Both charged only one time
The APR must be stated when there is a trigger term that requires the full disclosure
with regards to borrowing money used in residential financing. What is the APR:
Select one:
a.Actual percentage rate
b.Annual percentage rate
c.Adjusted pricing rate
d.Annual proration rate - ANSWER: Annual percentage rate
A borrower gets a loan from National Bank for $220,000. The borrower buys his
interest rate down 1/4% and has a 1% origination fee. What are the lender fees?
Select one:
a.$3,300
b.$6,800
c.$6,600
d.$2,200 - ANSWER: $6,600
in this case the 1% origination fee is $2200 and there are 2 additional discount points
total of $4400. Combined that is $6600
One discount point will buy the borrower's interest down by how much?
Select one:
a.1%
b.1/4%
c.1/2%
d.1/8% - ANSWER: 1/8%
There are a total of 8 discount points which will reduce the borower's annual
percentage rate by one full percentage point
During a 1031 exchange; an investor looking to transfer and hold their sales,
proceeds and funds before purchasing new property would use which type of agent:
Select one:
a.Universal
b.Real estate
c.Voluntary
COMPLETE 300 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
Article 26 of the State of Arizona constitution gave what powers to real estate
agents:
a. The ability to negotiate leases
b. Authority to prepare real estate documents and draft contracts
c. The rights to charge commissions for selling real estate in Arizona
d. The powers to be able to revise settlement statements - ANSWER: Authority to
prepare real estate documents and draft contracts
An encumbrance could be:
a. Any of these
b. Liability
c. C&R's
d. Lien - ANSWER: Any of these
Before bringing action against a licensee, the department and commissioner must:
a.Must present written notice of any charges and provide the opportunity for a
hearing
b.Provide a notice of intent to file suit via the online messaging system
c.File a public notice in the online database 10 days before suspension
d.Agree to a hearing with both the broker and the agent - ANSWER: Must present
written notice of any charges and provide the opportunity for a hearing
An attorney has a universal agency relationship with his client. The attorney hires
broker Joe to sell the attorney's client's property. Broker Joe is a:
a. Sub agent
b.Dual agent
c.Ratified agent
d.Implied agent - ANSWER: Sub Agent
Which of the following is not a potential remedy to a contract if a real estate agent is
found to be in breach of their fiduciary duties to the client?
a. Recession of the contract
b.Successful termination of contract
c.Monetary fines penalties against the agent
d.Suspension of privileges - ANSWER: Successful termination of contract
,What type of agreement must be signed if an agent is representing more than one
party in a transaction:
a.Agents constant agreement
b.Buyers broker and listing agreement
c.Limited services agreement
d.Dual agency agreement - ANSWER: Dual Agency Agreement
Which of the following is not an involuntary termination of agency relationship?
a.Abandonment
b.A court order
c.Loss of sub agent's broker's license
d.Completion of terms - ANSWER: Completion of terms
Which of the following requires lenders to show the true cost of borrowing money?
a.CERCLA
b.Regulation Z
c.HIPA
d.APR - ANSWER: Regulation Z
A previously contaminated building site being redeveloped into a park could be more
commonly known as a:
Select one:
a.Brownfield
b.Superfund site
c.Developer's integrated opportunity
d.WQARF site - ANSWER: Brownfield
A perspective tenant who has a service animal is denied his rental application due to
a no pets policy:
Select one:
a. This is a violation under the 1988 Fair Housing Amendment Act
b. This is allowed if the residence has a strict no pets policy
c. This is a violation of the 1968 Civil Rights Act
d. This is allowed if the dog weighs over 50 lbs - ANSWER: This is a violation under
the 1988 Fair Housing Amendment Act
When a person dies intestate their property reverts back the state because of:
Select one:
a. Probate
b. Laws of Inheritance
c. Escheat
d. Enabling Act - ANSWER: Escheat
High density single family housing is separated from industrial zoning by use of:
,Select one:
a. Buffer zones
b. Land division permit use
c. Comprehensive integration plan
d. Special use permits - ANSWER: Buffer Zones
FHA generally offers loans to what type of borrower?
Select one:
a. Rural borrowers
b. Borrowers who have little down payment
c. Borrowers with less than perfect credit score
d. FHA does not offer loans - ANSWER: FHA does not offer loans
A deed was signed by the grantor. The grantee never received it and since it was lost,
it was never recorded. What is the status of the property:
Select one:
a. The deed was signed and the property now belongs to grantee
b. The actual ownership was not conveyed since grantee never received it
c. Grantee is legal owner even though he/she was never made aware
d. Grantor's interests will pass automatically to the State - ANSWER: The actual
ownership was not conveyed since grantee never received it
An origination point is equal to what amount?
Select one:
a. 1% of the loan amount
b. 1% above current interest rates
c. 1% of the sale's price
d. $1,000 dollars - ANSWER: 1% of the loan amount
A group of members make up an LLC. The main reason real estate might be owned
by an LLC is:
Select one:
a.LLC pays a lower tax
b.LLC's can operate in any state
c.Members have zero interest in the LLC
d. LLC's offer pass through income tax advantages - ANSWER: LLC's offer pass
through income tax advantages
This type of loan is mainly designed for borrowers over the age of 62:
Select one:
a.Balloon loans
b.Elder loans
c.Reverse mortgage
d.Adjustable rate loans - ANSWER: Reverse mortgage
The biggest difference between government insured loans and conventional loans is:
Select one:
, a.Down payment amount is less on all conventional loans
b.Loan length is always 30 years on conventional loans
c.Interest rates are always lower on government loans
d.Government loans meet all conforming guidelines - ANSWER: Government loans
meet all conforming guidelines
Discount points and origination points:
Select one:
a.Both charged only one time
b.Based on the borrower's credit score
c.Will vary throughout the loan duration
d.Both used to lower the interest rate - ANSWER: Both charged only one time
The APR must be stated when there is a trigger term that requires the full disclosure
with regards to borrowing money used in residential financing. What is the APR:
Select one:
a.Actual percentage rate
b.Annual percentage rate
c.Adjusted pricing rate
d.Annual proration rate - ANSWER: Annual percentage rate
A borrower gets a loan from National Bank for $220,000. The borrower buys his
interest rate down 1/4% and has a 1% origination fee. What are the lender fees?
Select one:
a.$3,300
b.$6,800
c.$6,600
d.$2,200 - ANSWER: $6,600
in this case the 1% origination fee is $2200 and there are 2 additional discount points
total of $4400. Combined that is $6600
One discount point will buy the borrower's interest down by how much?
Select one:
a.1%
b.1/4%
c.1/2%
d.1/8% - ANSWER: 1/8%
There are a total of 8 discount points which will reduce the borower's annual
percentage rate by one full percentage point
During a 1031 exchange; an investor looking to transfer and hold their sales,
proceeds and funds before purchasing new property would use which type of agent:
Select one:
a.Universal
b.Real estate
c.Voluntary
