AZ GENERAL REALESTATE EXAM PREP

How many scored questions are on the Arizona Real Estate Salesperson exam?

80 scored questions

What is the passing score for the Arizona Real Estate Salesperson exam?

75% (60 of 80 scored questions correct)

What is the fee for the Arizona Real Estate Salesperson exam?

$70 ($75 combo discount when scheduled back-to-back with the State exam)

What is the wait time to retake the Arizona Real Estate Salesperson exam?

24 hours

What is the size of 1 acre in square feet?

43,560 square feet

What is the size of 1 mile in feet?

5,280 feet

What is the most important test for determining if an item is a fixture?

Intention of the party who attached it

What are trade fixtures?

Personal property installed by a commercial tenant for business use

What happens to trade fixtures at the end of a lease?

They may be removed by the tenant

What are emblements?

Annually cultivated crops treated as personal property

What is annexation in real estate?

Converting personal property to real property

What is severance in real estate?

Converting real property to personal property

What does 'situs' refer to?

Area preference in real estate

What is the legal foundation for the remedy of specific performance?

Non-homogeneity (uniqueness) of land

What is a legal description?

A precise identification of a parcel of land

What are the three methods of legal descriptions?

Metes and bounds, rectangular survey, lot and block

How many sections are in a township?

36 sections

How many acres are in a section?

640 acres

What is a benchmark in surveying?

A surveyed elevation reference point

What is the definition of police power in real estate?

Government's right to regulate for health, safety, and welfare

What is eminent domain?

Government taking private property for public use with compensation

What is the significance of the point of beginning in metes and bounds?

The description must begin and end at the point of beginning

What is the maximum time allowed for the Arizona Real Estate Salesperson exam?

150 minutes (2.5 hours)

What is the total number of questions on the Arizona Real Estate Salesperson exam?

85 questions

What is the method used to calculate the area of a parcel described as 'the NW¼ of the SE¼ of Section 10'?

Multiply the denominators (4 × 4 = 16) and divide into 640

What is the legal description method that uses a recorded subdivision map?

Lot and block

What is the size of a section in land measurement?

640 acres; 36 sections.

What are the four government powers in public land use controls?

Police power, eminent domain, taxation, escheat.

What is police power?

The government's right to regulate for health, safety, and welfare.

What is the process of taking property under eminent domain called?

Condemnation.

What happens to property if an owner dies intestate and without heirs?

It reverts to the state by escheat.

What is a variance in zoning?

Permission to deviate from a zoning rule due to hardship.

What is a nonconforming use?

A legal use that predates new zoning and is 'grandfathered' in.

What is a conditional/special use permit?

A permit allowing a use beneficial to the area within a zone.

What is spot zoning?

Illegal rezoning of one parcel inconsistent with the surrounding area for an owner's benefit.

What is a buffer zone?

A transitional strip between incompatible uses.

What are covenants, conditions & restrictions (CC&Rs)?

Private limits placed by developers or grantors, enforced by HOAs or other owners.

What is an easement?

A right to use another's land.

What is an easement appurtenant?

An easement that benefits an adjacent parcel.

What is an easement in gross?

An easement that benefits a person or company, not a parcel.

What is a license in property law?

Revocable, personal permission to use land.

What is an encroachment?

A physical intrusion over a boundary.

What is an encumbrance?

Any claim, lien, charge, or liability that diminishes value or use.

What is a fee simple absolute?

The highest, most complete form of ownership; inheritable and unlimited duration.

What is a fee simple defeasible?

Ownership that can be lost under certain conditions.

What is a life estate?

Ownership measured by a lifetime.

What is a tenancy in common?

Two or more owners with undivided interests; shares may be unequal.

What is joint tenancy?

Equal owners with right of survivorship.

What is tenancy by the entirety?

Joint tenancy for married couples in some states.

What is community property?

Property acquired during marriage belongs equally to both spouses.

What is a gross lease?

Tenant pays fixed rent; landlord pays property expenses.

What is a net lease?

Tenant pays rent plus some or all expenses.

What is a mechanic's lien?

A financial claim against property for unpaid work.

What is the priority of liens?

Generally first in time, first in right, except for real property taxes.

What are air rights?

Ownership extends above the surface of the property.

What are subsurface rights?

Ownership extends below the surface, including mineral rights.

What are the types of water rights?

Riparian, littoral, and prior appropriation.

What happens when Tom sells his interest in joint tenancy to Bob?

Bob becomes a tenant in common with Ann and Sue.

What type of estate is created when property is deeded 'to the city so long as it is used as a park'?

Fee simple determinable with a possibility of reverter.

What is a lease with a definite beginning and ending date called?

Estate for years.

Which lien takes priority over a first mortgage recorded five years earlier?

Real property tax/special assessment lien.

What type of lease requires a tenant to pay fixed rent plus taxes, insurance, and maintenance?

Triple net (NNN) lease.

What are the elements of a valid deed?

In writing, competent grantor, grantor's signature, words of conveyance, legal description, consideration recited, delivery and acceptance.

What is the purpose of a habendum clause in a deed?

It defines the estate granted.

What is the best type of deed for a grantee?

General warranty deed.

What does a special warranty deed guarantee?

Warrants only against defects arising during the grantor's ownership.

What does a quitclaim deed convey?

Whatever interest the grantor has, with no warranties.

What is voluntary alienation?

Transfer of property by sale, gift, or will.

What is involuntary alienation?

Transfer of property without the owner's consent, such as descent or foreclosure.

What is adverse possession?

Acquiring title by open, notorious, continuous, hostile, and exclusive possession for the statutory period.

What is the difference between actual notice and constructive notice?

Actual notice is what a person actually knows; constructive notice is given by recording.

What is a chain of title?

The recorded history of ownership of a property.

What is marketable title?

Title reasonably free of doubt or defects.

What does title insurance protect against?

Defects existing before the policy date.

What is the moment title passes from grantor to grantee?

At the moment of delivery and acceptance of the deed.

Which deed provides the least protection to the grantee?

Quitclaim deed.

What is the covenant of seisin in a general warranty deed?

It promises that the grantor owns and has the right to convey the property.

What is market value?

The most probable price a property should bring in an open-market sale.

What are the characteristics of value represented by DUST?

Demand, Utility, Scarcity, Transferability.

What is the principle of highest and best use in appraisal?

The legally permissible, physically possible, financially feasible, and maximally productive use.

What is the sales comparison approach in appraisal?

Adjusting comparables to the subject property to estimate value.

What is the cost approach in appraisal?

Value = Land value + (Reproduction or Replacement cost of improvements − Depreciation).

What is the income approach in appraisal?

IRV: Income ÷ Rate = Value.

What is depreciation in appraisal terms?

Loss in value due to physical deterioration, functional obsolescence, or external obsolescence.

What is the formula for calculating straight-line depreciation?

Cost ÷ Economic life × Effective age.

What is the role of FIRREA in appraisal?

It requires state-licensed/certified appraisers for federally related transactions.

What does USPAP stand for?

Uniform Standards of Professional Appraisal Practice.

What is the purpose of a preliminary report/commitment in title insurance?

It shows the condition of title and exceptions.

What is a cloud on title?

A claim or defect that affects the title.

What is the difference between reproduction cost and replacement cost?

Reproduction cost is for an exact replica; replacement cost is for equivalent utility with modern materials.

What is effective gross income?

Potential gross income minus vacancy/collection loss plus other income.

What is Net Operating Income (NOI)?

Effective gross income minus operating expenses.

What are operating expenses?

Expenses that do not include debt service and depreciation.

How is the cap rate calculated?

Cap rate equals NOI divided by value.

What does a higher cap rate indicate?

A lower value and more risk.

What is the formula for Gross Rent Multiplier (GRM)?

Sale price divided by monthly rent.

What is the formula for Gross Income Multiplier (GIM)?

Sale price divided by annual income.

What is a Comparative Market Analysis (CMA)?

A pricing tool using recent sold, pending, and active listings to help set a listing price.

What is a Broker Price Opinion (BPO)?

A broker's written opinion of value, often for lenders/short sales.

Who performs appraisals for federally related loans?

Licensed or certified appraisers.