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ARIZONA REAL ESTATE - OUT OF STATE EXAM PREP
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ARIZONA REAL ESTATE - OUT OF STATE EXAM PREP
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ARIZONA REAL ESTATE - OUT OF STATE EXAM PREPJune specified in her will how title to her home would transfer. At her death, alternate
conveyance occurred. What likely happened?
Operation of law - Operation of law trumps a will. It says that what's legally required
must be satisfied before the terms of the will apply.
What's a deficiency judgment?
A judgment that allows the lender to collect the difference from the borrower if the
foreclosure sale does not satisfy the debt. - If the proceeds from a foreclosure sale don't
satisfy the debt, a deficiency judgment allows the lender to collect the difference from
the borrower.
Susan is a real estate licensee. Her mother is moving to a facility for active seniors and
has asked Susan to sell her home. What information does Susan need to disclose to
prospective buyers?
She is related to the seller (her mother). - Susan has a personal interest in selling her
mother's home. She needs to disclose that this is her mother's property.
Sam and Monique knew that the old industrial site that they purchased needed some
environmental cleanup, but they don't have the cash and put cleanup on hold. The EPA
hired its own crew to deal with groundwater issues because of industrial solvents and
billed Sam and Monique $164,000 when the job was complete. If Sam and Monique
don't pay the bill, which one of the following could happen?
The EPA can seek damages in court for up to three times the actual cleanup costs. - If
property owners refuse to pay cleanup costs as billed by the EPA, the EPA can seek
damages of up to three times the original costs.
Lou and Lannie, two unmarried siblings, decide to buy a vacation home. They enter into
a contract with the seller, Amanda. A week after signing the contract, Lou and Lannie
have a falling out. Now their brother Larry wants to buy the home with Lou, and Lannie
wants no part of the purchase anymore. Amanda agrees, and they substitute Larry for
Lannie in the contract, leaving Lannie with no further liability. This is an example of
______.
Novation - Novation involves substitution of an original party with a new party, and
releases the original party from liability.
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 -
The public report application doesn't include a minimum number of years of operation or
a full business organization chart.
How is ad valorem property tax calculated?
By multiplying the property's assessed value by the tax rate - Ad valorem taxes are
based on property value. To calculate
What's the difference between agricultural and industrial water usage in Arizona?
Agricultural water usage is far greater than industrial water usage. - Agriculture is
responsible for about 70% of Arizona's water usage. The industrial sector uses only
about 6%.
Which of the following should be filed in the questionnaire section of the Arizona public
report application?
Subdivision information - Subdivision information is filed in the questionnaire section,
while the subdivision map is included in the required documents section.
Your client, Eric, is interested in purchasing an industrial property to start a new
business. You've recommended that soil, air, and water testing be done, but Eric is on a
tight budget and doesn't feel these tests are necessary. What should you do?
Keep records of your recommendations and a written response from Eric. - As a
licensee, it's your responsibility to recommend these tests. Since the client has declined,
you should keep records of your recommendations and have a written response from
the client. You're not obligated to follow through with testing on your own
In Arizona, when must an owner of unsubdivided land provide copies of advertising and
marketing materials to the commission?
Within 21 days of usage
Which of the following applicants meets the experience requirement for a broker license
in Arizona?
Maggie has been affiliated as a salesperson with an Arizona broker since May 1988 -
Candidates for a broker license must have at least three years' experience as an
Arizona real estate licensee, so Maggie is the only person who qualifies.
Which statement describes hypothecation?
The process of pledging property as collateral for a loan - Using a property as security
for a mortgage is known as hypothecation. If it helps, think, "Hypothetically, if I didn't
pay my mortgage, you could take my house."
In Arizona, electromagnetic fields (EMFs) are emitted by which of the following?
, Any device that uses electricity -Electromagnetic fields (EMFs) are emitted by any
appliance or device that uses electricity.
Which of the following options might exclude an applicant for eligibility for an Arizona
real estate salesperson license?
A license revocation within the last year - License applicants cannot have had a license
application denied in the previous year or had a license revoked within the previous two
years.
The Arizona law governing timeshares is the ______.
Arizona Timeshare Owners' Association and Management Act - Arizona Timeshare
Owners' Association and Management Act governs the actions of developers to protect
consumers in sales, advertising, and promotions.
Although the real estate commissioner has the power to investigate formal complaints
brought against Arizona licensees, who performs the actual investigations?
The Department of Real Estate's certification and enforcement unit -The commissioner
oversees the Department of Real Estate's certification and enforcement unit, which
does the actual investigating (the commissioner's only one person, after all).
To calculate property taxes, multiply the ______ by the tax rate.
Assessed value - To calculate property taxes, multiply the tax rate by the assessed
value.
Charlise has an important meeting this afternoon and dropped by her firm's Mesa office
to restock her supply of real estate employment agreements because she'll need one
for her meeting. What do we know about her meeting?
She'll be meeting with a potential client. - A real estate employment agreement is
Arizona's term for a listing agreement or buyer agency agreement.
Lack of capacity has made the contract non-binding, so the contract is _____.
Voidable - The two parties may still wish to be bound by the contract, but the party
lacking capacity has the option to terminate.
You're a developer. In which of the following situations do you NOT have to receive an
Assured Water Supply certificate?
If you develop your project in an area that's outside of an AMA - Developers who are
building in areas outside of AMAs don't need to receive an Assured Water Supply
certificate (many of these areas do require an Adequate Water Supply certificate,
though).
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