Exam (elaborations)
AZ REAL ESTATE STATE PRACTICE EXAM QUESTIONS WITH COMPLETE ANSWERS
- Institution
- Arizona School Of Real Estate And Business
AZ REAL ESTATE STATE PRACTICE EXAM QUESTIONS WITH COMPLETE ANSWERS
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AZ REAL ESTATE STATE PRACTICEEXAM QUESTIONS WITH COMPLETE
ANSWERS
What would create an interest in property with possessory rights but no form of title?
- ANSWER-Sublease
A clause in a second trust deed that permits the first trust deed to be refinanced with
out affecting its priority would be known as - ANSWER-A subordination clause is a
clause that allows for such a change in lien priority
When an existing contract is replaced with a new contract, this is referred to as: -
ANSWER-Novation
PITI reserves applies to - ANSWER-A cash amount the borrower must have on hand
after down payment and closing costs
Under which of the following circumstances may a salesperson hold licenses with
more than one AZ broker at the same time? - ANSWER-Never, under any
circimstances
What procedures must a salesperson follow when he decides to leave his or her fim
- ANSWER-No action required, the broker is responsible for notifying the department
Where would a person who believes he or she was discriminated against, file a
complaint? - ANSWER-With either the Attorney General or the department of
Housing and Urban Development
Which of the following does NOT need to be included in all listing agreements? -
ANSWER-Special incentives provided to the broker
Which one of these does NOT appear in a written listing agreement? - ANSWER-
The property's complete legal description
A lease that provides for specified rent increases at set future dates is called a(n) -
ANSWER-Graduated Lease
Who owns the building that is erected on land that has a ground lease? - ANSWER-
lessee
What is the purpose of a security deposit held by a landlord - ANSWER-
compensates the landlord in the event of rent default or premises damaged
What helps lenders reduce the risk on a conventional mortgage loan with a high
LTV? - ANSWER-private mortgage insurance
,What is a type of loan in which payments are made by the lender to the borrower
and is usually repaid from the sale of the property? - ANSWER-Reverse mortgage
A house had a sale price of $240,000. The buyer obtained a loan for $220,000. If the
lender charges 3 points, how much will the buyer pay in points? - ANSWER-
$220,000 x 6% = $6,600
A man's monthly mortgage payment is $665.50. The interest rate on the amortized
loan is 6%, and the outstanding balance is $111,000. When the man makes this
month's payment, what amount of the total payment will be applied to interest, and
what amount to principal? - ANSWER-$111,000 x 6% ÷ 12 = $555 monthly interest
$665.50 - $555 = $110.50 principal
Who is responsible for paying the broker or the broker's salesperson when one of
them uses a computerized loan origination system to take the loan application from a
borrower? - ANSWER-borrower
Regulation Z generally applies to - ANSWER-a credit transaction secured by a
residence.
What is the purpose of usury laws? - ANSWER-to hold down the interest cost of
borrowing, particularly for low-income borrowers/protect consumers from lenders
charging excessively high rates
What is the term that refers to a lender charging an interest rate that is higher than
that permitted by law? - ANSWER-usury
A house is listed for $250,000. A man buys it for $230,000, with a 20% down
payment. He borrows the balance on a fixed-rate mortgage at 6%. The lender
charges 4 points. If there are no other closing costs involved, how much money does
the man need at closing? - ANSWER-Calculate down payment
$230,000 x 20% = $46,000
Determine points charge
$230,000 x 80% x 4% = $7,360
Total the 2 amounts
$46,000 + $7,360 = $53,360
The person who prepares a certificate of title is the - ANSWER-abstractor
CERCLA - ANSWER-Comprehensive Environmental Response, Compensation, and
Liability Act
This law's purpose is to identify sites of environmental pollution and provide funds for
cleanup.
What is the relationship between real estate licensees and their employing broker? -
ANSWER-Licensees could be employees or independent contractors of the broker
, When must a licensee give agency disclosure documents to prospective purchasers
or renters? - ANSWER-Before any purchase or lease offer is presented
Which of the following forms of ownership automatically applies to married couples
unless stated otherwise in a deed? - ANSWER-Tenancy of Community property
How far back does an Arizona title search normally go back? - ANSWER-To the
beginning of the chain of title
Which of the following forms of ownership is NOT recognized under AZ law? -
ANSWER-Tenancy by the entireties
What status to " Dower and Curtesy" have in Arizona? - ANSWER-They are not
recognized
If a homeowner defaults on his or her trust deed loan and the property is offered at a
"foreclosure sale" at what point may the owner stop the process? - ANSWER-Until
5pm the day before the sale
David and Paula are homeowners whose home is going into foreclosure/ How may
they redeem their property? - ANSWER-By paying off the liens before the statutory
right of redemption, expires 6months after the property has been sold at a sheriff's
sale
How soon after closing must deeds of conveyance be recorded? - ANSWER-The
next business day
As a broker representing a seller, what is the last possible moment Deb can give
agency disclosure to participants in a transaction and to whom would she give it ? -
ANSWER-To the buyer before the purchase contract is signed
Legally, what is the nature of agency relationships between brokers and principals? -
ANSWER-Specific agency
Lori is salesperson with a transaction in progress when she is recruited to work for
another firm. The sale goes through and Lori asks her previous broker for her share
of the commission. Is she entitled? - ANSWER-No, she is only entitled to
commissions earned while still employed by her former broker
Who administers License Law in Arizona - ANSWER-The Arizona Department of
Real Estate
Which of the following is NOT considered to be engaging in the real estate business
for compensation? - ANSWER-Reselling a mobile home (if a mobile home is not
attached to a piece of land, it's sale does not require a real estate license
A buyer executes a chattel mortgage in favour of a lender. What type of property
would be covered by a chattel mortgage? - ANSWER-Office Furniture and
Equipment
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