Real Estate Exam Arizona
Study online at https://quizlet.com/_cgmmz5
1. Residential properties in Arizona have an assessment ratio of ______.: 10%
2. Arizona licensed contractor DeAngelo was involved in a case against a con-
sumer and can't pay the judgment amount awarded by the residential contrac-
tors recovery fund. What will happen to his contractor's license?: His license will be
suspended until he pays back the amount paid to the consumer, plus interest.
3. Under which of the following types of leases does a tenant rent property with
an unfinished interior and agree to complete the construction?: Building shell lease
4. Cameron's lease just went up in April. That's no surprise; it goes up every
April. What kind of lease is this?: Graduated
5. You're working with a buyer who's purchasing a home that appraised at
$80,000. The buyer is obtaining a 90% loan, and the lender will charge a
one-point origination fee at closing. How much will the loan origination fee
be?: $720
6. Which of the following isn't required to be filed with the Arizona Department
of Real Estate as part of the timeshare public report application?: The business
organizational chart and proof of business operation for at least one year
7. What is the current value of a property that was purchased two years ago for
$260,000, assuming an annual appreciation rate of 2%?: $270,504
8. Who is required to sign a security agreement for security arrangements
under the Uniform Commercial Code?: The borrower
9. What steps must a lien-holder take to perfect their mechanic's lien in Ari-
zona?: Make copies of the lien claim, give one to the county recorder, give the other to the building's owner
10. Which of the following best describes the function of a deficiency judgment
in the case of a foreclosure?: It allows the lender to recover losses incurred in the foreclosure process.
11. When conducting an appraisal of lease value, how does the appraiser divide
the appraised value?: t's divided according to the parties' interests as attributed in the lease.
12. The local planning and zoning commission is reviewing multiple applications
at this week's meeting. Which of the following new developments is likely to be
reviewed relative to a mixed-use zoning ordinance?: A high rise with residential, retail, and
entertainment space
13. Jessica's license expired two months ago, and she is working to complete her
continuing education requirements while she juggles working with her clients
, Real Estate Exam Arizona
Study online at https://quizlet.com/_cgmmz5
on behalf of her employing broker. Is Jessica working within Arizona's standards
of conduct for real estate licensees?: No, her license expired, and she cannot engage in real estate
activities without an active license.
14. Jonathon is setting up a lottery to promote his timeshares. What must he
do first before moving forward with his promotion?: Submit an exception request to the
Department of Real Estate.
15. The market value of your client's property is $280,000. Taxes in the area are
assessed at 60% of market value. Your client's semi-annual tax bill was $1,461.
What's the tax rate per 100?: $1.74
16. Which of the following would require a licensee to notify the Arizona Depart-
ment of Real Estate?: Adverse judgment involving fraud
17. Over how many years is a commercial property depreciated?: 39 years
18. How are sections and townships related to one another, relative to the
rectangular government survey system?:
19. How are sections and townships related to one another, relative to the
rectangular government survey system?: Townships are divided into sections.
20. When the listing agreement's purpose has been fulfilled, what happens to
the agency agreement?: The agency agreement terminates by completion.
21. Which of these actions would NOT help a real estate licensee who wants to
specialize in sales of distressed properties?: Become licensed as an auctioneer.
22. Which of the following involves the transfer of the lease contract from the
current tenant to another person?: Assignment
23. Assuming licensee Shannon has actual knowledge of all of the following
property issues, which of these issues should she disclose to prospective buy-
ers?: The upstairs bathroom has a leaky toilet.
24. ______ is an acronym that can help you remember an agent's fiduciary du-
ties.: OLD CAR
25. Which of the following are included in the transfer of real property unless
specifically excluded in writing?: Fixtures
26. Trinity has applied for a home equity line of credit to perform some upgrades
on her home. Within what timeframe must her lender provide the Closing
Disclosure?: The Closing Disclosure isn't required for a HELOC.
, Real Estate Exam Arizona
Study online at https://quizlet.com/_cgmmz5
27. How is the grid that's used in the rectangular survey system laid out?: The
numbers start in the northeastern corner and follow a zigzag pattern.
28. The ADEQ administers and enforces ______.: Both federal and state law
29. California licensed real estate agent Darshna is representing her California
buyer in his home search in Phoenix. Arizona broker Ted must have a ______
with Darshna in order for the two to work together in a transaction.: Cooperating
Broker Agreement
An Arizona broker must have a cooperation agreement in place with an out-of-state broker in order for the out-of-state
broker to participate in a real estate transaction in Arizona.
30. When pricing a property, which of the following is a reason a licensee would
consider expired listings?: To determine the price at which a property won't sell
31. Homeowner Ron can no longer make his mortgage payments. Rather than
face foreclosure, he decides to cut his losses. He voluntarily conveys his proper-
ty to his lender. What type of foreclosure alternative is this?: Deed in lieu of foreclosure
32. If an Arizona salesperson's license expires, can she still collect compensa-
tion?: Yes, as long as the compensation were earned legitimately while her license was active, it can be collected
after the license expires.
33. What purpose does the promissory note serve?: It's a promise the buyer makes to the
lender that the note will be repaid in full.
34. Which physical characteristic of land addresses the concept that land isn't
interchangeable, and one piece of land isn't exactly like another?: Uniqueness
35. Jewel's buyer client recently bought a house, and Jewel can now be compen-
sated for her work as an Arizona buyer's agent. From whom will Jewel receive
her commission check?: Her employing broker
36. When a judge rules on a matter, and precedent is set, which source of law
can be used to modify or overturn other sources of law?: Case law
37. Chattel is another word for _______.: personal property
38. A new homeowner asks you, "Why is there a charge on my water bill from
CAGRD?" What should you say?: "This charge goes to help replenish the groundwater that you used.
CAGRD is the authority that does this."
39. Which of these fits the description of the abandonment remedy?: Rats drove
Willard out of his apartment.
, Real Estate Exam Arizona
Study online at https://quizlet.com/_cgmmz5
40. If the daily rate is $1.23 and closing is August 31, what will the seller owe at
closing? Assume a statutory year and that the seller hasn't made any payments.
Round to the nearest cent.: $295.20
41. Cindy enters into a contract to buy Jarod's home. She then transfers her right
to purchase to her twin sister, Maud, for a small fee. But Maud neglects to fulfill
the buyer's obligations under the contract, and Jarod is able to pursue Cindy,
who's still liable. This is an example of ______.: Assignment
42. For each Arizona branch office that an employing broker opens, a separate
______ must be attained.: Branch office license
43. Callie's home is damaged during a severe summer storm. Thank goodness
she has property insurance with Safe Home and Life. In this situation, Safe
Home and Life is known as ______.: The insurer
44. Which one of the following actions is a licensee required to take to fulfill a
fiduciary duty?: Disclose personal interest and licensed status when buying property for personal use.
45. A buyer is purchasing a property for $400,000. His lender's loan-to-value
ratio is 80%. How much is the buyer financing?: $320,000
46. Max has decided to cancel his reservation for a plot in an upcoming subdivi-
sion because of the delays the subdivider is experiencing. How long does the
subdivider have to get the deposit back to Max?: Five business days
47. Elisa agreed to list Simone's house for sale. After the listing contract was
signed, Simone lost her job, and her father, George, offered to help Simone
by paying Elisa's listing commission. The buyer's agent, Carl, also reduced his
commission. Who is Elisa's client?: Simone
48. What's a percent?: part of 100
49. Why do investors have a special interest in the impact income taxes have?: -
Income tax is a significant factor in return on investment.
50. For farmers and others who live in rural communities, a ______ loan may
be available. One benefit of these loans is the option for a longer payback
period.: Rural development
51. Maggie has a neighbor, Jim, who is facing foreclosure. She likes Jim and wants
to help him out, so they agree to do a "subject to" purchase. What does this
mean?: Maggie will take over Jim's loan payments without telling his lender she's doing so.
Study online at https://quizlet.com/_cgmmz5
1. Residential properties in Arizona have an assessment ratio of ______.: 10%
2. Arizona licensed contractor DeAngelo was involved in a case against a con-
sumer and can't pay the judgment amount awarded by the residential contrac-
tors recovery fund. What will happen to his contractor's license?: His license will be
suspended until he pays back the amount paid to the consumer, plus interest.
3. Under which of the following types of leases does a tenant rent property with
an unfinished interior and agree to complete the construction?: Building shell lease
4. Cameron's lease just went up in April. That's no surprise; it goes up every
April. What kind of lease is this?: Graduated
5. You're working with a buyer who's purchasing a home that appraised at
$80,000. The buyer is obtaining a 90% loan, and the lender will charge a
one-point origination fee at closing. How much will the loan origination fee
be?: $720
6. Which of the following isn't required to be filed with the Arizona Department
of Real Estate as part of the timeshare public report application?: The business
organizational chart and proof of business operation for at least one year
7. What is the current value of a property that was purchased two years ago for
$260,000, assuming an annual appreciation rate of 2%?: $270,504
8. Who is required to sign a security agreement for security arrangements
under the Uniform Commercial Code?: The borrower
9. What steps must a lien-holder take to perfect their mechanic's lien in Ari-
zona?: Make copies of the lien claim, give one to the county recorder, give the other to the building's owner
10. Which of the following best describes the function of a deficiency judgment
in the case of a foreclosure?: It allows the lender to recover losses incurred in the foreclosure process.
11. When conducting an appraisal of lease value, how does the appraiser divide
the appraised value?: t's divided according to the parties' interests as attributed in the lease.
12. The local planning and zoning commission is reviewing multiple applications
at this week's meeting. Which of the following new developments is likely to be
reviewed relative to a mixed-use zoning ordinance?: A high rise with residential, retail, and
entertainment space
13. Jessica's license expired two months ago, and she is working to complete her
continuing education requirements while she juggles working with her clients
, Real Estate Exam Arizona
Study online at https://quizlet.com/_cgmmz5
on behalf of her employing broker. Is Jessica working within Arizona's standards
of conduct for real estate licensees?: No, her license expired, and she cannot engage in real estate
activities without an active license.
14. Jonathon is setting up a lottery to promote his timeshares. What must he
do first before moving forward with his promotion?: Submit an exception request to the
Department of Real Estate.
15. The market value of your client's property is $280,000. Taxes in the area are
assessed at 60% of market value. Your client's semi-annual tax bill was $1,461.
What's the tax rate per 100?: $1.74
16. Which of the following would require a licensee to notify the Arizona Depart-
ment of Real Estate?: Adverse judgment involving fraud
17. Over how many years is a commercial property depreciated?: 39 years
18. How are sections and townships related to one another, relative to the
rectangular government survey system?:
19. How are sections and townships related to one another, relative to the
rectangular government survey system?: Townships are divided into sections.
20. When the listing agreement's purpose has been fulfilled, what happens to
the agency agreement?: The agency agreement terminates by completion.
21. Which of these actions would NOT help a real estate licensee who wants to
specialize in sales of distressed properties?: Become licensed as an auctioneer.
22. Which of the following involves the transfer of the lease contract from the
current tenant to another person?: Assignment
23. Assuming licensee Shannon has actual knowledge of all of the following
property issues, which of these issues should she disclose to prospective buy-
ers?: The upstairs bathroom has a leaky toilet.
24. ______ is an acronym that can help you remember an agent's fiduciary du-
ties.: OLD CAR
25. Which of the following are included in the transfer of real property unless
specifically excluded in writing?: Fixtures
26. Trinity has applied for a home equity line of credit to perform some upgrades
on her home. Within what timeframe must her lender provide the Closing
Disclosure?: The Closing Disclosure isn't required for a HELOC.
, Real Estate Exam Arizona
Study online at https://quizlet.com/_cgmmz5
27. How is the grid that's used in the rectangular survey system laid out?: The
numbers start in the northeastern corner and follow a zigzag pattern.
28. The ADEQ administers and enforces ______.: Both federal and state law
29. California licensed real estate agent Darshna is representing her California
buyer in his home search in Phoenix. Arizona broker Ted must have a ______
with Darshna in order for the two to work together in a transaction.: Cooperating
Broker Agreement
An Arizona broker must have a cooperation agreement in place with an out-of-state broker in order for the out-of-state
broker to participate in a real estate transaction in Arizona.
30. When pricing a property, which of the following is a reason a licensee would
consider expired listings?: To determine the price at which a property won't sell
31. Homeowner Ron can no longer make his mortgage payments. Rather than
face foreclosure, he decides to cut his losses. He voluntarily conveys his proper-
ty to his lender. What type of foreclosure alternative is this?: Deed in lieu of foreclosure
32. If an Arizona salesperson's license expires, can she still collect compensa-
tion?: Yes, as long as the compensation were earned legitimately while her license was active, it can be collected
after the license expires.
33. What purpose does the promissory note serve?: It's a promise the buyer makes to the
lender that the note will be repaid in full.
34. Which physical characteristic of land addresses the concept that land isn't
interchangeable, and one piece of land isn't exactly like another?: Uniqueness
35. Jewel's buyer client recently bought a house, and Jewel can now be compen-
sated for her work as an Arizona buyer's agent. From whom will Jewel receive
her commission check?: Her employing broker
36. When a judge rules on a matter, and precedent is set, which source of law
can be used to modify or overturn other sources of law?: Case law
37. Chattel is another word for _______.: personal property
38. A new homeowner asks you, "Why is there a charge on my water bill from
CAGRD?" What should you say?: "This charge goes to help replenish the groundwater that you used.
CAGRD is the authority that does this."
39. Which of these fits the description of the abandonment remedy?: Rats drove
Willard out of his apartment.
, Real Estate Exam Arizona
Study online at https://quizlet.com/_cgmmz5
40. If the daily rate is $1.23 and closing is August 31, what will the seller owe at
closing? Assume a statutory year and that the seller hasn't made any payments.
Round to the nearest cent.: $295.20
41. Cindy enters into a contract to buy Jarod's home. She then transfers her right
to purchase to her twin sister, Maud, for a small fee. But Maud neglects to fulfill
the buyer's obligations under the contract, and Jarod is able to pursue Cindy,
who's still liable. This is an example of ______.: Assignment
42. For each Arizona branch office that an employing broker opens, a separate
______ must be attained.: Branch office license
43. Callie's home is damaged during a severe summer storm. Thank goodness
she has property insurance with Safe Home and Life. In this situation, Safe
Home and Life is known as ______.: The insurer
44. Which one of the following actions is a licensee required to take to fulfill a
fiduciary duty?: Disclose personal interest and licensed status when buying property for personal use.
45. A buyer is purchasing a property for $400,000. His lender's loan-to-value
ratio is 80%. How much is the buyer financing?: $320,000
46. Max has decided to cancel his reservation for a plot in an upcoming subdivi-
sion because of the delays the subdivider is experiencing. How long does the
subdivider have to get the deposit back to Max?: Five business days
47. Elisa agreed to list Simone's house for sale. After the listing contract was
signed, Simone lost her job, and her father, George, offered to help Simone
by paying Elisa's listing commission. The buyer's agent, Carl, also reduced his
commission. Who is Elisa's client?: Simone
48. What's a percent?: part of 100
49. Why do investors have a special interest in the impact income taxes have?: -
Income tax is a significant factor in return on investment.
50. For farmers and others who live in rural communities, a ______ loan may
be available. One benefit of these loans is the option for a longer payback
period.: Rural development
51. Maggie has a neighbor, Jim, who is facing foreclosure. She likes Jim and wants
to help him out, so they agree to do a "subject to" purchase. What does this
mean?: Maggie will take over Jim's loan payments without telling his lender she's doing so.
