Download ARIZONA REAL ESTATE EXAM QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+ | VERIFIED ANS and more Exams Real Estate Management in PDF only on Docsity!
ARIZONA REAL ESTATE EXAM QUESTIONS
AND CORRECT ANSWERS | ALREADY
GRADED A+ | VERIFIED ANSWERS |
LATEST VERSION 2024
As of June 30th of any year, the real estate recovery fund must maintain a balance of _____ to avoid additional fees to licensees. ------CORRECT ANSWER---------------600, When the real estate commissioner pays a claim from the recovery fund, which of the following is true before a licensee may obtain a real estate license once again? ------CORRECT ANSWER---------------Licensee must pay back the amount the fund paid out When a broker secures a listing, which of the following actions would NOT require the owner's approval? ------CORRECT ANSWER--------------- Assigning the listing to another Salesperson A real estate brokerage company has 20 listings. The company is sold to another local real estate company. What is true regarding the listings? ------ CORRECT ANSWER---------------Property owner and new company must sign a new listing How many recovery funds does the Real Estate Commissioner administer? ------CORRECT ANSWER---------------One
What is the maximum amount that can be paid on a single claim from the real estate recovery fund? ------CORRECT ANSWER---------------30, If a claim is paid from the recovery fund, the status of the license in question is: ------CORRECT ANSWER---------------Terminated A broker may represent a buyer and seller in a real estate transaction and receive a commission from both provided: ------CORRECT ANSWER--------- ------The broker has received written consent from buyer and seller All of the following apply to the Arizona Real Estate Recovery Fund EXCEPT: ------CORRECT ANSWER---------------Arizona residency requirement The only person who could NOT recover from the real estate recovery fund is: ------CORRECT ANSWER---------------Licensee A broker may collect a commission from both buyer and seller if ------ CORRECT ANSWER---------------Written approval is given before execution Real Estate Recovery Fund is subject to all of the following conditions EXCEPT: ------CORRECT ANSWER---------------Licensees can claim commissions if their broker declares bankruptey A claim against the recovery fund CANNOT be filed by ------CORRECT ANSWER---------------A corporation that was harmed by a licensee
When a buyer enters into a lease-purchase, which of the following are true? ------CORRECT ANSWER---------------The buyer is obligated to buy the property After payment has been made from the recovery fund on behalf of a licensee, if the licensee repays the recovery fund, the licensee's right to reapply for a license ------CORRECT ANSWER---------------May be denied by the Commissioner for a maximum of 5 years Which of the following is NOT required to appear on a listing agreement? -- ----CORRECT ANSWER---------------Construction cost A buyer and seller enter into a purchase contract, but the broker fails to initial the contract within the required ten business days. What is the status of the purchase contract? ------CORRECT ANSWER---------------Valid After a seller accepted an offer, another offer is given to the listing broker. The agent: ------CORRECT ANSWER---------------Is not required to present the offer if previously instructed by the owner in writing The highest property tax rate would apply to a/an: ------CORRECT ANSWER---------------Commercial property The City of Phoenix is located what direction from the G. & S.R.B. & M.: ---- --CORRECT ANSWER---------------Northeast
How many acres are contained in the following; N2 SW4 Sec. 11 and the SE SE4 Sec 4? ------CORRECT ANSWER--------------- 120 What is the distance in miles to T4N, from the principal meridian? ------ CORRECT ANSWER--------------- 24 - 30 The following would be an example of what type of surveying system? Beginning at the SE corner of Tatum and Cactus, proceed 2,640 feet north, thence 400' west, thence 700 feet south, and back to the beginning: ------ CORRECT ANSWER---------------Metes and Bounds How many acres would be contained in the following legal description : SW corner NE of Section 15 North to the NE corner of the SWh of Section 10 Southeast to the SE corner of the NWh of Section 14 thence west to the point of the beginning ------CORRECT ANSWER--------------- 320 When taxes are prorated on a closing statement, which of the following statements are true? ------CORRECT ANSWER---------------Taxes are based on the prior year You sell a property on June 6th. The annual water bill is $86 and the taxes are $778. All have been pre-paid. What is the proration at the close of escrow? ------CORRECT ANSWER---------------Debit $492 to buyer The seller paid taxes for the year in the amount of S624. The property sold and closed escrow November 20th. What was the proration at close of escrow? ------CORRECT ANSWER---------------$71.06 credit seller
When a new loan is paid PITI, which of the following would NOT appear on an escrow closing statement: ------CORRECT ANSWER--------------- Principal payments What document is recorded with the deed? ------CORRECT ANSWER------- --------Affidavit of value A salesperson runs an ad in the local paper promoting a broker's listing. Which of the following is true? ------CORRECT ANSWER---------------The brokerage name must appear prominently in the ad Which of the following advertising would NOT be regulated by the Department of Real Estate? ------CORRECT ANSWER---------------Seller misusing the word acre When a licensee knows of material facts that affect the buying or selling decision, the facts must be ------CORRECT ANSWER---------------Disclosed in writing Which of the following documents would a homeowner's association NOT be required to give a buyer upon resale? ------CORRECT ANSWER---------- -----Personal financial statements Who is responsible for providing homeowner's association of a property located in a documents to a buyer upon the sale homeowner's association if there are less than 50 units in the association? ------CORRECT ANSWER---------------Seller
Arizona property taxes are based on: ------CORRECT ANSWER--------------- Assessed value The tax rate applied to owner occupied residential property is: ------ CORRECT ANSWER---------------10 % Which of the following leins would have priority? ------CORRECT ANSWER---------------Property taxes Property taxes become a lien the first day of ------CORRECT ANSWER------ ---------January If a property is not bid at a tax lien sale: ------CORRECT ANSWER------------ ---Anyone can later buy the tax lien from the Treasurer Rank the following liens in the order of their priority from highest to lowest: IRS lien, Property Taxes, Special Assessments. ------CORRECT ANSWER- --------------Property Taxes, Special Assessments, IRS Liens What type of property would have the highest tax rate ------CORRECT ANSWER---------------Shopping center
Which of the following liens are paid first after a foreclosure? ------ CORRECT ANSWER---------------Property taxes At the end of the three-year tax redemptiorn period, a person who holds the certificate of purchase: ------CORRECT ANSWER---------------May extend the period Ad valorem would apply to which of the following ------CORRECT ANSWER---------------Property taxes The redemption period in a property tax foreclosure would be how long after the certificate of purchase has been issued: ------CORRECT ANSWER---------------3 years Of the following liens: delinquent taxes since 2004, mortgage recorded in 2002, IRS lien recorded in 2006, which has second priority? ------ CORRECT ANSWER---------------Mortgage A buyer is obtaining a new loan to purchase property. The buyer is most likely to accept title with which of the following liens remaining unpaid as of close of escrow ------CORRECT ANSWER---------------Property taxes for the current year for the property being sold The Homestead Exemption in Arizona is now set at: ------CORRECT ANSWER---------------150,
Homestead exemption will protect a person against which of the following? ------CORRECT ANSWER---------------Unforeseen personal judgments What will NOT terminate a homestead exemption? ------CORRECT ANSWER---------------Buying other property If a husband and wife own community property and the husband dies, who receives the husband's half? ------CORRECT ANSWER---------------Heirs What action will void a homestead? ------CORRECT ANSWER--------------- Declaring primary residence in another state In Arizona, property owned before marriage is sole and separate. Property acquired after marriage would be considered ------CORRECT ANSWER----- ----------Community property You homestead your property then default on a loan for $50,000 secured with a note and Deed of Trust. How much does the one foreclosed on owe? ------CORRECT ANSWER---------------$50, A property that is in foreclosure has had a valid homestead recorded. What is the status of the foreclosure? ------CORRECT ANSWER--------------- Foreclosure will continue as normal
What is the purpose of an affidavit of value? ------CORRECT ANSWER------ ---------Assist the County Assessor in determining property values In Arizona, you may obtain title under which of the following? ------ CORRECT ANSWER---------------Adverse possession Which of the following coverage would NOT be included in an owner's policy of title insurance? ------CORRECT ANSWER---------------Parties in adverse possession Which of the following would NOT be covered in a standard owner's policy of title insurance? ------CORRECT ANSWER---------------Easements obtained by prescription An owner's title policy would protect a buyer against which of the following? ------CORRECT ANSWER---------------Forgery Arizona, a deed must be signed by the ------CORRECT ANSWER------------- --Grantor A deed is acknowledged in Arizona to: ------CORRECT ANSWER------------- --Meet state law
Who signs a deed of conveyance? ------CORRECT ANSWER--------------- Grantor At wht point does recordation take place? ------CORRECT ANSWER--------- ------Docket and page number are assigned A licensed contractor is hired and paid in full directly by the owner of a commercial property. The general contractor fails to pay the subcontractors for the work they performed. The general contractor then files bankruptcy, and subcontractor files a mechanics lien within 125 days from the completion of his work. In this situation, which of the following is true regarding the subcontractor? ------CORRECT ANSWER---------------The lien is not valid because it was not recorded within the required time period How long does a subcontractor have to file a mechanic's lein? ------ CORRECT ANSWER---------------120 days after completion of work Which of the following would NOT be involved in a Deed of Trust? ------ CORRECT ANSWER---------------Vendor A defeasance clause in a Deed of Trust allows for ------CORRECT ANSWER---------------Cancellation of the lender's claim upon full note payment If one was to research the county public records, one would always find: --- ---CORRECT ANSWER---------------Mechanic's liens
An Assignment of Rents Clause is for the benefit of the: ------CORRECT ANSWER---------------Beneficiary A mechanic's lien must be placed on title by a general contractor within: ---- --CORRECT ANSWER---------------120 days after job is completed When do you file a mechanic's lien: ------CORRECT ANSWER--------------- Completion of work A mechanic's lien may be filed by: ------CORRECT ANSWER--------------- The lumber supplier Mechanic's lien takes priority: ------CORRECT ANSWER---------------Date work began If you have been given notice of a possible future lien, this lien is probably for ------CORRECT ANSWER---------------Mechanic's lien A general contractor does work for a tenant in a commercial leased space. The tenant fails to pay the contractor. Which of the following is true regarding the mechanic's lien? ------CORRECT ANSWER---------------The contractor can only lien the leasehold interest A tenant hires a contractor to construct a patio roof. The tenant refuses to pay the amount owed, the mechanic may file a lien against: ------ CORRECT ANSWER---------------Tenant's improvements
Once originated, under the Deed of Trust, who owns the property? ------ CORRECT ANSWER---------------Trustor Who pays the fee for recording a Deed of Reconveyance? ------CORRECT ANSWER---------------Trustor Which of the parties below would hold "naked title" in a deed of trust? ------ CORRECT ANSWER---------------Trustee Who gives instructions to sign the deed of reconveyance? ------CORRECT ANSWER---------------Beneficiary When a mechanic's lien is recorded and later results in a judgment, what is the lien priority of the judgment? ------CORRECT ANSWER--------------- Same as the mechanic's lien Judgments in Arizona would be valid for what period of time? ------ CORRECT ANSWER---------------5 years What accompanies a deed of trust? ------CORRECT ANSWER--------------- Note
At a mortgage foreclosure sale, if the property is abandoned, the statutory period of redemption can be cut to which of the following times? ------ CORRECT ANSWER---------------30 days A commercial project was in foreclosure, and after the sale the mortgagee did not receive enough money to satisfy the note. Which of the following statements are true? ------CORRECT ANSWER---------------The lender can sue the borrower for deficiency judgment A property has a first note and Deed of Trust for $20,000, and a second note and Deed of Trust for $10,000. The first is in default, and the lender agrees to take back a quitclaim deed. What is the position of the $10, second? ------CORRECT ANSWER---------------The second is now in first position A buyer obtains a loan on a parcel of land secured by a Deed of Trust. Later the buyer moves a mobile home on the lot and defaults on the deed of trust. Which of the following is true? ------CORRECT ANSWER------------- --Lender may foreclose on the land only After a Deed of Trust Foreclosure sale, which of following is true? ------ CORRECT ANSWER---------------A trustee's deed is given to the new owner Which of the following would NOT be part of an agreement for sale? ------ CORRECT ANSWER---------------Trustee notice
State usury laws would set: ------CORRECT ANSWER---------------Interest rates A land contract has an acceleration clause and is now in default. Which of the following is true? ------CORRECT ANSWER---------------Once the acceleration clause is exercised, a lender would foreclose as a mortgage A seller may accelerate payment on a land contract when the buyer defaults: ------CORRECT ANSWER---------------If foreclosed as a mortgage Who benefits from a non-disturbance clause in a loan? ------CORRECT ANSWER---------------Tenant leasing the property What is the primary difference between an agreement for sale and a purchase money mortgage? ------CORRECT ANSWER---------------The agreement for sale contains the note and security all in one document When a buyer buys under a land contract with 10 % down , how long would the forfeiture period be if the buyer defaulted? ------CORRECT ANSWER--- ------------30 days Regarding a trust deed foreclosure, which of the following is true? ------ CORRECT ANSWER---------------Debtor receives a notice of sale In foreclosure of a Deed of Trust, which is the order of notice? ------ CORRECT ANSWER---------------Constructive, then actual
