Comprehensive Arizona Real Estate State Exam
Preparation Guide with Verified Correct Answers. This
Detailed Resource is Specifically Designed to Help
Aspiring Real Estate Professionals Prepare for the State
Licensing Exam in Arizona, Covering All Essential Topics
and Providing Accurate, Reliable Information to Ensure
Success on Test Day.
1. John makes an offer to Joe, and Joe makes a counter
offer. Joe dies before the counter offer is accepted.
What is the contract status?
A. Valid
B. Void
C. Enforceable
D. Bilateral B. Void
2. 1031 Exchange A transaction that, under
provisions of Section 1031 of the Internal Revenue
Code, allows a taxpayer to sell an investment
property and purchase another investment property
in its place without paying capital gains on the
proceeds from the sale.
3. 1099-Misc The Internal Revenue Service form that
is used to report various types of miscellaneous
, income earned other than salary earned from an
employer
4. Abandonment of a Homestead The loss of a
homestead exemption if the owner moves to
another state, sells the property, turns the property
into a rental or no longer occupies the home as a
primary residence
5. Abutting Refers to parcels that share a boundary
6. Acceleration Clause A clause in loan documents
that allows the lender to call the note all due and
payable if the borrower breaches the terms
Accretion The gradual addition of land by natural
causes, such as shoreline movements
Acre (in square feet) 43,560 square feet
7. Acre Foot One foot of water over the entire
surface of an acre; contains 325,851 gallons of water
8. Active Management Area (AMA) Areas within
Arizona where water management programs, such as
restriction governing groundwater use, are in place;
requires demonstration of Assured Water Supply
9. Actual Eviction The physical removal of a tenant
from a leased property with the tenant relieved of
any further responsibility to pay rent
,10. Actual Notice Express knowledge of a fact
(compared to Constructive Notice, which is notice
given by publication)
11. Ad Valorem A concept for property taxes that
means "according to value"
12. Adequate Water Supply The standard
required from developers OUTSIDE of an Active
Management Area (AMA); if adequate water supply
cannot by demonstrated, the developer must
disclose this fact in all advertising and promotional
material
13. Adjustable Rate Mortgage (ARM) A mortgage
loan that has an interest rate on the note that
periodically adjusts based on an index that reflects
the cost to the lender; also called Variable Rate
Mortgage
14. Adjusted Basis The purchase price of a
property (basis) minus accumulative depreciation,
plus acquisition costs, plus capital improvements;
also called Adjusted Purchase Price
15. Adjusted Sales Price Sales price minus costs of
sale (commission and closing costs)
, 16. Administrator Court-appointed personal
representatives of an estate for someone who dies
intestate (without a will)
17. Administrator's Deed A document that transfers
title to real estate from an intestate person to his or
her heirs
18. Adverse Possession Acquiring title to land
because of a long-term, open and notorious use of
the land. The legal process is called PRESCRIPTION.
The required time period in Arizona is 10 years.
19. Advisory Board A 10-member board appointed
by the Governor that advises and gives
recommendations to the Commissioner of the
Arizona Department of Real Estate. Member serve a
6-year term
20. Affidavit of Affixture A document for owners of
mobile homes certifying that the home is
immobilized, i.e., anchored to real property
21. Affidavit of Disclosure A disclosure document
that may be required when selling property that is
either in an unincorporated area (not in a city or
town), NOT in a subdivision, or if five or fewer
parcels are involved in the transaction. It provides
information about certain aspects of the property
Preparation Guide with Verified Correct Answers. This
Detailed Resource is Specifically Designed to Help
Aspiring Real Estate Professionals Prepare for the State
Licensing Exam in Arizona, Covering All Essential Topics
and Providing Accurate, Reliable Information to Ensure
Success on Test Day.
1. John makes an offer to Joe, and Joe makes a counter
offer. Joe dies before the counter offer is accepted.
What is the contract status?
A. Valid
B. Void
C. Enforceable
D. Bilateral B. Void
2. 1031 Exchange A transaction that, under
provisions of Section 1031 of the Internal Revenue
Code, allows a taxpayer to sell an investment
property and purchase another investment property
in its place without paying capital gains on the
proceeds from the sale.
3. 1099-Misc The Internal Revenue Service form that
is used to report various types of miscellaneous
, income earned other than salary earned from an
employer
4. Abandonment of a Homestead The loss of a
homestead exemption if the owner moves to
another state, sells the property, turns the property
into a rental or no longer occupies the home as a
primary residence
5. Abutting Refers to parcels that share a boundary
6. Acceleration Clause A clause in loan documents
that allows the lender to call the note all due and
payable if the borrower breaches the terms
Accretion The gradual addition of land by natural
causes, such as shoreline movements
Acre (in square feet) 43,560 square feet
7. Acre Foot One foot of water over the entire
surface of an acre; contains 325,851 gallons of water
8. Active Management Area (AMA) Areas within
Arizona where water management programs, such as
restriction governing groundwater use, are in place;
requires demonstration of Assured Water Supply
9. Actual Eviction The physical removal of a tenant
from a leased property with the tenant relieved of
any further responsibility to pay rent
,10. Actual Notice Express knowledge of a fact
(compared to Constructive Notice, which is notice
given by publication)
11. Ad Valorem A concept for property taxes that
means "according to value"
12. Adequate Water Supply The standard
required from developers OUTSIDE of an Active
Management Area (AMA); if adequate water supply
cannot by demonstrated, the developer must
disclose this fact in all advertising and promotional
material
13. Adjustable Rate Mortgage (ARM) A mortgage
loan that has an interest rate on the note that
periodically adjusts based on an index that reflects
the cost to the lender; also called Variable Rate
Mortgage
14. Adjusted Basis The purchase price of a
property (basis) minus accumulative depreciation,
plus acquisition costs, plus capital improvements;
also called Adjusted Purchase Price
15. Adjusted Sales Price Sales price minus costs of
sale (commission and closing costs)
, 16. Administrator Court-appointed personal
representatives of an estate for someone who dies
intestate (without a will)
17. Administrator's Deed A document that transfers
title to real estate from an intestate person to his or
her heirs
18. Adverse Possession Acquiring title to land
because of a long-term, open and notorious use of
the land. The legal process is called PRESCRIPTION.
The required time period in Arizona is 10 years.
19. Advisory Board A 10-member board appointed
by the Governor that advises and gives
recommendations to the Commissioner of the
Arizona Department of Real Estate. Member serve a
6-year term
20. Affidavit of Affixture A document for owners of
mobile homes certifying that the home is
immobilized, i.e., anchored to real property
21. Affidavit of Disclosure A disclosure document
that may be required when selling property that is
either in an unincorporated area (not in a city or
town), NOT in a subdivision, or if five or fewer
parcels are involved in the transaction. It provides
information about certain aspects of the property
