Exam (elaborations)
ARIZONA REAL ESTATE PRACTICE QUESTIONS AND ANSWERS
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ARIZONA REAL ESTATE PRACTICE QUESTIONS AND ANSWERS
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ARIZONA REAL ESTATE PRACTICE QUESTIONS ANDANSWERS
Within how many days after property transfer shall a buyer submit a completed transfer
form and file with ADEQ - Answers -15 days
An example of involuntary alienation is where title to real estate passes by: - Answers -
Sheriff's deed
What event will create an involuntary life estate? - Answers -Dower interest becoming
cohate
A valid warranty deed must contain all of the following elements, except: - Answers -
Signed by grantee
The clause in a deed which sets forth or limits the extent of the interests in the title
being conveyed is: - Answers -The habendum clause
An instrument that conveys a grantor's interest is called a: - Answers -Deed
Which of the items listed below is an interest in real property but not an estate? -
Answers -Mortgage
What law creates an automatic lien on a commercial property, subject to the listing
agreement? - Answers -Broker lien law
An article may be changed from realty to personalty by: - Answers -Detachment
What is the purpose of a date in an appraisal report? - Answers -Define the market
Conditions under which the appraisal was made
The customary procedure for arriving at the fair market value of an office building for
selling purposes is: - Answers -Figure the adjusted gross income, deduct all costs of
operation, and divide the net operating income by the current rate of return for this type
of investment
Market price is closest to: - Answers -The amount of money given in exchange for the
property (value in exchange)
Which of the following does not relate to appraising? - Answers -Establishing value
While determining the net operating income of an investment property, an appraiser will
take into account all of the following except: - Answers -Interest expense
Negligence that causes harm is a/an: - Answers -Tort
,A title company is employed by a lender to collect payments on a deed of trust, what is
the title company called? - Answers -Servicing agent
Permanent finance payments would include which of the following? - Answers -Principal
and interest
What statement in an advertisement requires a full explanation? - Answers -Only $5,000
down
What law requires lenders to limit the amount of funds that can be held in reserves? -
Answers -RESPA
The mortgagor is: - Answers -The borrower
What is not an encumbrance? - Answers -Warranty deed
Real estate loan usury rates are set by: - Answers -State laws
Prorated taxes would be shown on the settlement statement as a: - Answers -Credit to
buyer, debit to seller
A residential tenant with a month-to-month lease enjoys which leasehold estate? -
Answers -Periodic tenancy
In real estate terms, an estate for years also may be called: - Answers -A leasehold
Which of the following is not essential to a valid contract? - Answers -monetary
consideration
Which of the following cannot be a trustee? - Answers -C.P.A.
An Arizona real estate licensee may not charge for document preparation according to:
- Answers -Arizona Constitution Article XXVI
Which of the following requires probate? - Answers -Tenancy in common
What would NOT apply to an easement appurtenant? - Answers -Prescription
An easement that conveys along with the title to a dominant estate is known as: -
Answers -An appurtenant easement
Termination of joint tenancy with rights of survivorship is accomplished by: - Answers -
Deed by one or more property owner
,What agency oversees Active Management Areas and regulates ground water? -
Answers -ADWR
How many acres are in the following description: NE4 SW4 and the SE4 NW4; SE4
SW4 NE4 Section 22: - Answers -90
A property described as T5N, R4E of the GSRB&M is located between _____ and
_____ miles north of the base line. - Answers -24 and 30
The Gila and Salt River Baseline runs: - Answers -East and west
The difference between the actual value of a property and the total amount of liens
against the property would be: - Answers -The owner's equity
Which of the following is in the proper order of occurrence? - Answers -Lis Pendens,
judgment, execution
When the entire loan balance is due because the borrower breached the terms of the
loan agreement, this action is called: - Answers -Acceleration
What is a loan called when it has even payments for the life of the loan? - Answers -
Amortized
Which of the following would NOT terminate an agency relationship? - Answers -
Accepting an offer and opening escrow
Seller and buyer sign a purchase contract. The buyer wishes to give it to another party.
This action is called: - Answers -Assignment
A buyer and a seller were separated in negotiations by only five hundred dollars. The
listing and sales agent agree to reduce the commission by that amount to make the
deal. Each agent gives their clients two hundred and fifty dollars after closing. What
unethical practices exist here? - Answers -Undisclosed inducement and dividing
commissions with non licensees
A real estate broker, in the typical agency relationship with a seller, is a/an: - Answers -
Special agent
A lender is limited in the amount of reserves they may hold in a residential real estate
transaction. This is governed by: - Answers -RESPA
What regulation requires the lender to show the true interest rate? - Answers -Reg. Z
The effective rate of interest is best described as: - Answers -Annual percentage rate
The VA funding fee would change based on: - Answers -Loan to Value
, Broker lists property for $180,000. The ad reads $10,000 down and 8% interest. This ad
would violate: - Answers -Reg. Z
What document lets a buyer and seller see the costs involved with closing the
transaction? - Answers -HUD-1 statement
Where would the exceptions and reservations appear on a title report? - Answers -
Schedule B
Which of the following is NOT necessary for a valid transfer of title to real estate? -
Answers -Recording of the deed
Which of the following is NOT synonymous with "title"? - Answers -Possession
What warrant indicates that the grantee is the owner of the property? - Answers -Seizin
What document is recorded with the deed? - Answers -Affidavit of value
When a document is recorded, this notice is called: - Answers -Constructive
An interest in title to real property, not government owned, obtained by action at law
based on adverse possession best describes: - Answers -Prescription
What deed would place the least liability on the grantor? - Answers -Quit claim
What action would terminate a purchase contract? - Answers -Eminent domain
What is the rescission time when a party purchases a timeshare? - Answers -7 calendar
days
A trustor lists his property for sale on May 1. On May 2 he was notified of default on the
trust deed, which default had occurred 45 days prior to notification. The trustor, under
these conditions: - Answers -May sell the property within the 90 day reinstatement
period
A subordination clause is most often used in a: - Answers -Trust deed
The capitalization method is used to: - Answers -Convert net income to market value
What would NOT be provided for in a non-recourse loan? - Answers -Deficiency
judgment
After a mortgage is being foreclosed, if the sale amount was insufficient to cover the
debt, the lender may ask for a/an? - Answers -Deficiency judgment
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