Exam (elaborations)
AZ REAL ESTATE EXAM QUESTIONS
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AZ REAL ESTATE EXAM QUESTIONS
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AZ REAL ESTATE EXAM QUESTIONSWhat is the form of co-ownership in which two or more persons each have an undivided
interest in the property but no right of survivorship? - Answers -Tenancy in Common
A type of ownership that is considered a long-term lease is best described as: -
Answers -Cooperative
Building codes are primarily enforced by: - Answers -the issuance of permits
An interest in and possession of any real property is called - Answers -An estate
Roberta wishes to build her garage 2 feet from her side lot line. City code calls for all
side setbacks to be at least 5 feet. She will need to get what to be able to legally
proceed and be assured that future owners will not have a problem? - Answers -A
variance will provide permanent permission to deviate from the setback rules.
When an attorney gives an abstract of title, he would also give: - Answers -An opinion.
Building permits would be issued under the government's right of: - Answers -Building
permits would be issued under the government's right of police power.
A legitimate reason for appraising a property as of some date in the past is: - Answers -
To settle an estate
Which of the following is NOT needed to have a valid listing/employment agreement? -
Answers -Legal description
When the principal terminates the agency relationship before it expires, it is called: -
Answers -Revocation
Using one's authority or weakness to secure consent to a contract is termed: - Answers
-Undue influence
Constructive fraud is also known as: - Answers -Constructive fraud is an unintentional
concealment or omission of a material fact, also known as negligent misrepresentation.
In escrow, who is your customer when your brokerage has the listing? - Answers -The
Buyer
A buyers broker owes a fiduciary responsibility to: - Answers -A buyers broker
represents the buyer and owes the fiduciary responsibility of confidentiality to their client
If the seller retains the buyer's earnest money due to a contract breach, this would be
called - Answers -Liquidated damages
,The price of a listed property should NOT be advertised or offered unless it conforms to:
- Answers -The price of a listed property should NOT be advertised or offered unless it
conforms to an amount previously agreed to by the owner.
Legal action to enforce a contract is called: - Answers -Specific Performance
All of the following would apply to a buyer broker exclusive employment agreement
EXCEPT: - Answers -Legal description of the property. it is addressing employment
terms not the property
An out-of-state prospect asks an agent to locate a diverse neighborhood for him. The
agent should: - Answers -A real estate agent has no duty or obligation to provide
demographic data that would have the effect of limiting housing choices.
Nonconforming use would apply to which of the following, listed below? - Answers -A
use that was once lawful but no longer conforms
Cody is a first-time buyer making an offer on a property that will include the appliances.
The seller accepts the offer and includes a document that will protect the owner if the
furnace breaks. Which kind of protection did Cody receive? - Answers -Home Warranty
What insulating material was pumped into houses until its ban in the 1970s - Answers -
urea-formaldehyde insulation
Federal Emergency Management Agency (FEMA) is responsible for: - Answers -Flood
are maps
Chemicals used in refrigeration, air conditioning, insulation, and aerosol propellants that
drift into the upper atmosphere where their chlorine components destroy ozone are
called - Answers -CFCs are chlorofluorocarbons, an inert chemical used in refrigeration
and aerosol cans.
If two or more brokers get together to set a commission rate, this would be in violation
of: - Answers -Sherman Anti-Trust Law
Except during a time of emergency, property cannot be confiscated through use of: -
Answers -Under the government's rights of police power, property can be confiscated in
an emergency.
To receive a tax-free sale of your principal residence, the homeowner must live in the
property as their principal residence for at least: - Answers -Homeowners seeking the
tax-free gain exemption from the IRS must live in their home for at least 2 years.
, A few real estate brokers from different companies were discussing the possibility of
establishing an office policy to list for sale all raw land at a 10% commission. Which of
the following is true? - Answers -Sherman Anti-Trust Law
What is the most important factor a developer would take into consideration in selecting
a new area to develop? - Answers -Location
The selling price of real estate is most generally based on: - Answers -The selling price
of real estate is most generally based on market value; the most probable price a
property should bring in a competitive and open market
When the appraiser looks at the home Sandy has just purchased, he notices it has a
fireplace and the comparable homes do not. He makes a $3,000 upward adjustment on
his sales comparison approach worksheet. The $3,000 adjustment is based on what
appraisal principle? - Answers -Contribution
The seller lists a property with a broker and the listing is to expire on October 20th. On
October 19th, the broker presents an offer to the seller. After two days of negotiations
the seller accepts the buyer's offer. Since the broker's listing has expired, what is the
status of the broker's commission? - Answers -The seller is obligated to pay a
commission
The day after the broker's listing expired, the seller sold the property to a buyer that was
shown the property by the listing broker. Which of the following is true regarding the real
estate commission? - Answers -The seller would owe the full commission.
A "mutual fund" for pooling investor money for investment in real estate: - Answers -
Real Estate Investment Trust REIT
A property owner is selling a house "For Sale by Owner." the seller places the ad in the
local newspaper looking for buyers. If the seller is on the Do Not Call Registry the
broker may call when: - Answers -The broker represents the buyer
Short term capital gains are taxed at - Answers -ordinary income tax rates
A trust deed is signed by the: - Answers -Trustor
Which of the following activities will not occur in the secondary market? - Answers -
Origination fees
A lender would add a margin to an index to accomplish which of the following? -
Answers -The purpose of the margin is for the lender to keep current with the cost of
new mortgages.
An escrow agent can be: - Answers -All: The escrow agent is responsible for performing
the closing procedures according to the sales contract or escrow agreement.
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