ARIZONA - STATE SPECIFIC REAL
ESTATE EXAM QUESTIONS WITH
CORRECT ANSWERS
An owner hires a general contractor to build a commercial project. The owner pays
the general in full, but the general fails to pay the subcontractors. What can the
subcontractors do? - ANSWER-They can file a mechanics lien against the property
Who would provide instructions regarding signing of the deed of reconveyance? -
ANSWER-The beneficiary
Naked title is best describes the interest of: - ANSWER-The trustee under a trust
deed
How long is a mechanic's lien valid for? - ANSWER-6 months
What type of liens are property liens? - ANSWER-Specific liens
What could be a part of a Deed of Trust? - ANSWER-Judicial foreclosure
Non-judicial foreclosure
Reinstatement period
An assignment of Rents Clause is for the benefit of the: - ANSWER-Beneficiary
When do you file a mechanic's lien: - ANSWER-After the completion of work
Mechanic's lien takes priority from: - ANSWER-The Date Work Began
If you have been given notice of a possible future lien, this lien is probably for: -
ANSWER-Mechanic's lien
A general contractor does work for a tenant in a commercial lease space. The tenant
fails to pay the contractor. The contractor can: - ANSWER-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: - ANSWER-Tenant's
improvements
Once originated, under the Deed of Trust, who owns the property? - ANSWER-
Trustor
Who pays the fee for recording a Deed of Reconveyance? - ANSWER-Trustor
When a mechanic's lien is recorded and later results in judgement, what is the lien
priority of the judgment? - ANSWER-Same as the mechanic's lien
,Judgments in Arizona would be valid for what period of time? - ANSWER-5 years
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 position of the $10,000? - 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. The
Lender may foreclose on: - ANSWER-The Land Only
After a Deed of Trust Foreclosure sale, the Trustee deed is given to: - ANSWER-The
New Owner
What would be a part of an agreement for sale? - ANSWER-Statutory Notice
Accounting Service Agreement
Forfeiture Rights
State usury laws would set: - ANSWER-Interest Rates
How long must the seller wait before they can take a property back if a buyer
defaults on an Agreement for sale with less than 20% Equity? - ANSWER-30 days
When must a mechanic's lien be filed? - ANSWER-120 days of the completion of
work by the subcontractor or general contractor
What is the tax lien priority? - ANSWER-Property Taxes
Special Assessment Tax
IRS Taxes
If a property tax is not bid on at a tax lien sale who can later buy the tax lien from the
Treasure? - ANSWER-Anyone
What type of property would have the highest tax rate? - ANSWER-Commercial
When are the first half of property taxes delinquent? - ANSWER-November 1
Taxes are assessed on: - ANSWER-Value of the property
In Arizona, property taxes are payable: - ANSWER-Twice a year
When the county assessor evaluates real estate for the purpose of taxation, this is
called: - ANSWER-Assessed Value
In Arizona, real estate are levied: - ANSWER-Once a year
Second half of Real Estate Taxes are Due: - ANSWER-March 1st
One a homeowner's association establishes the assessments, they are paid: -
ANSWER-Annually based on the homeowner's association budget
, At the end of the three year tax redemption period, a person who holds the certificate
of purchase: - ANSWER-May extend the period
Ad Valorem would apply to: - ANSWER-Property Taxes
The redemption period in a property tax foreclosure would be how long after the
certificate of purchase has been issued? - ANSWER-3 years
A buyer is obtaining a new loan to purchase property. The buyer is most likely to
accept title with what liens remaining unpaid as close of escrow? - ANSWER-
Property taxes for the current year for the property being sold
Arizona Homestead Exemption is set at: - ANSWER-$150,000
What will a Homestead exemption protect a person against? - ANSWER-Unforeseen
personal judgment
What will terminate a homestead? - ANSWER-Selling the property
Moving out of the property
Filing an abandonment of homestead
Abandoned for 2 years or more
Declaring primary residence in another state
If a husband and wife own community property and the husband dies, who receives
the husband's half? - ANSWER-His heirs
In Arizona, property owned before marriage is sole and separate. Property acquired
after marriage is: - ANSWER-Community Property
You homestead your property and then default on a loan for $50,000 secured with a
note and a deed of trust. How much does the one foreclosed on owe? - ANSWER-
$50,000 because it was a specific lien and not unforeseen, judgment or bankruptcy.
A property that is in foreclosure has had a valid homestead recorded. What is the
status of the foreclosure? - ANSWER-The foreclosure will continue as normal
Community property with the right of survivorship would create: - ANSWER-Step up
basis
Avoidance of probate
Suvivorship to spouse only
When would a person first qualify for a homestead? - ANSWER-Upon taking
ownership
Homestead are only applicable to: - ANSWER-Residential primary residence
Name the three deeds that will convey title: - ANSWER-General Warranty Deed -
("broadest protection")
Special Warranty Deed - ("limited protection")
ESTATE EXAM QUESTIONS WITH
CORRECT ANSWERS
An owner hires a general contractor to build a commercial project. The owner pays
the general in full, but the general fails to pay the subcontractors. What can the
subcontractors do? - ANSWER-They can file a mechanics lien against the property
Who would provide instructions regarding signing of the deed of reconveyance? -
ANSWER-The beneficiary
Naked title is best describes the interest of: - ANSWER-The trustee under a trust
deed
How long is a mechanic's lien valid for? - ANSWER-6 months
What type of liens are property liens? - ANSWER-Specific liens
What could be a part of a Deed of Trust? - ANSWER-Judicial foreclosure
Non-judicial foreclosure
Reinstatement period
An assignment of Rents Clause is for the benefit of the: - ANSWER-Beneficiary
When do you file a mechanic's lien: - ANSWER-After the completion of work
Mechanic's lien takes priority from: - ANSWER-The Date Work Began
If you have been given notice of a possible future lien, this lien is probably for: -
ANSWER-Mechanic's lien
A general contractor does work for a tenant in a commercial lease space. The tenant
fails to pay the contractor. The contractor can: - ANSWER-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: - ANSWER-Tenant's
improvements
Once originated, under the Deed of Trust, who owns the property? - ANSWER-
Trustor
Who pays the fee for recording a Deed of Reconveyance? - ANSWER-Trustor
When a mechanic's lien is recorded and later results in judgement, what is the lien
priority of the judgment? - ANSWER-Same as the mechanic's lien
,Judgments in Arizona would be valid for what period of time? - ANSWER-5 years
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 position of the $10,000? - 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. The
Lender may foreclose on: - ANSWER-The Land Only
After a Deed of Trust Foreclosure sale, the Trustee deed is given to: - ANSWER-The
New Owner
What would be a part of an agreement for sale? - ANSWER-Statutory Notice
Accounting Service Agreement
Forfeiture Rights
State usury laws would set: - ANSWER-Interest Rates
How long must the seller wait before they can take a property back if a buyer
defaults on an Agreement for sale with less than 20% Equity? - ANSWER-30 days
When must a mechanic's lien be filed? - ANSWER-120 days of the completion of
work by the subcontractor or general contractor
What is the tax lien priority? - ANSWER-Property Taxes
Special Assessment Tax
IRS Taxes
If a property tax is not bid on at a tax lien sale who can later buy the tax lien from the
Treasure? - ANSWER-Anyone
What type of property would have the highest tax rate? - ANSWER-Commercial
When are the first half of property taxes delinquent? - ANSWER-November 1
Taxes are assessed on: - ANSWER-Value of the property
In Arizona, property taxes are payable: - ANSWER-Twice a year
When the county assessor evaluates real estate for the purpose of taxation, this is
called: - ANSWER-Assessed Value
In Arizona, real estate are levied: - ANSWER-Once a year
Second half of Real Estate Taxes are Due: - ANSWER-March 1st
One a homeowner's association establishes the assessments, they are paid: -
ANSWER-Annually based on the homeowner's association budget
, At the end of the three year tax redemption period, a person who holds the certificate
of purchase: - ANSWER-May extend the period
Ad Valorem would apply to: - ANSWER-Property Taxes
The redemption period in a property tax foreclosure would be how long after the
certificate of purchase has been issued? - ANSWER-3 years
A buyer is obtaining a new loan to purchase property. The buyer is most likely to
accept title with what liens remaining unpaid as close of escrow? - ANSWER-
Property taxes for the current year for the property being sold
Arizona Homestead Exemption is set at: - ANSWER-$150,000
What will a Homestead exemption protect a person against? - ANSWER-Unforeseen
personal judgment
What will terminate a homestead? - ANSWER-Selling the property
Moving out of the property
Filing an abandonment of homestead
Abandoned for 2 years or more
Declaring primary residence in another state
If a husband and wife own community property and the husband dies, who receives
the husband's half? - ANSWER-His heirs
In Arizona, property owned before marriage is sole and separate. Property acquired
after marriage is: - ANSWER-Community Property
You homestead your property and then default on a loan for $50,000 secured with a
note and a deed of trust. How much does the one foreclosed on owe? - ANSWER-
$50,000 because it was a specific lien and not unforeseen, judgment or bankruptcy.
A property that is in foreclosure has had a valid homestead recorded. What is the
status of the foreclosure? - ANSWER-The foreclosure will continue as normal
Community property with the right of survivorship would create: - ANSWER-Step up
basis
Avoidance of probate
Suvivorship to spouse only
When would a person first qualify for a homestead? - ANSWER-Upon taking
ownership
Homestead are only applicable to: - ANSWER-Residential primary residence
Name the three deeds that will convey title: - ANSWER-General Warranty Deed -
("broadest protection")
Special Warranty Deed - ("limited protection")
