Arizona Real Estate State Exam

Which of the following is NOT a specific lien?

a. an unrecorded mortgage

b. a mechanic's lien

c. a judgement lien

d. a blanket mortgage

c. a judgement lien

Which of the following is NOT an encumbrance on real property?

a. lease

b. easement

c. homestead right

d. restrictive convenant

c. homestead right

Which of the following is NOT an appurtenance?

a. easement right

b. mineral right

c. water rights

d. trade fixtures

d. trade fixtures

The physical characteristics of land include:

a. indestructibility

b. homogeneity

c. improvements

d. supply

a. indestructibility

Which of the following restrictive covenants is MOST likely to be enforceable?

a. prohibits sales to blacks

b. prohibits resales for 20 years

c. prohibits use for anything other than single-family dwellings

d. absolutely prohibits any resales

c. prohibits use for anything other than single-family dwellings

What would a landlocked property owner MOST likely ask the court for?

a. an easement by prescription

b. an easement in gross

c. an easement by necessity

d. an adverse possession of servant tenement

c. an easement by necessity

Restrictive covenants are enforced by:

a. the district attorney

b. the lender

c. the planning commission

d. legal action by other owners

d. legal action by other owners

Mary is interested in a parcel of real estate owned by Kathy. Mary has a title report that shows the property is encumbered by several liens. The lien with the highest priority is the lien:

a. of lowest amount

b. of highest amount

c. first recorded

d. first in date

c. first recorded

A metes and bounds description MUST:

a. cover an area larger than 10 acres

b. be in areas not included in the rectangular survey system

c. commence and finish at the same identifiable point

d. always use north as the basis for directions

c. commence and finish at the same identifiable point

Which of the following is NOT a characteristic of a fee simple estate?

a. indefinite durations

b. free of encumbrances

c. transferable with or without consideration

d. transferable by will or interstate succession

b. free of encumbrances

A valid deed does NOT require a:

a. signature of the grantee

b. statement of consideration

c. legal description of the property

d. grantor with legal capacity

a. signature of the grantee

"To have and to hold" MOST likely would be included in a(n):

a. habendem clause

b. alienation clause

c. mortgage

d. legal description

a. habendem clause

A seller who will only defend the title he is giving against others who claim an interest through or under him would give a:

a. general warranty deed

b. special warranty deed

c. bargain and sale deed

d. quitclaim deed

b. special warranty deed

Title is transferred by deed at the time:

a. of delivery and acceptance

b. the deed is executed

c. of recording

d. stated within the deed

a. of delivery and acceptance

Which of the following action would NOT prevent a claim of adverse possession?

a. physically barring entry to adverse user

b. ousting the adverse user

c. ordering the adverse user to desist

d. giving the adverse user express permission to use the property

c. ordering the adverse user to desist

Standard coverage in a title insurance policy does NOT insure against:

a. forged documents

b. incompetent grantor

c. questions of survey

d. improperly delivered deed

c. questions of survey

Which of the following contracts does NOT have to be in writing to be enforceable?

a. promise to pay a debt to another

b. 1-year lease starting immediately

c. 6-month lease starting in 7 months

d. contract for sale of real property valued at less than $500

b. 1-year lease starting immediately

Regarding a lease assignment, the:

a. assignee becomes primarily liable under the lease and the aligner is released

b. assignor remains primarily liable under the lease

c. assignee becomes primarily liable under the lease and the assignor retains secondary liability

d. assignee is liable only to the assignor and the assignor is liable to the lessor

c. assignee becomes primarily liable under the lease and the assignor retains secondary liability

A situation in which the grantor becomes the lessee of the grantee is known as:

a. sublease

b. assignment

c. estate in reversion

d. sale and leaseback

d. sale and leaseback

Clara leases a building and installs shelves, cabinets, a refrigerator, and other articles for use in the business. Therefore:

a. Carla can remove the equipment installed before her lease expires.

b. Carla must leave them for landlord's benefit.

c. Carla can remove them at any time.

d. The landlord must pay Carla for any articles left.

a. Carla can remove the equipment installed before her lease expires.

What is the purpose of the management agreement?

a. to define the scope of the responsibilities and authorities of the manager

b. to create an opportunity for the manager to earn additional income through solicitation and acceptance of gratuities from suppliers of goods and services

c. to hire the manager to find a buyer for the property

d. to delegate to the manager the authority to purchase adjacent properties

a. to define the scope of the responsibilities and authorities of the manager

The maximum amount of money that may be paid for any one licensee from the Recovery Fund is:

$90,000

By June 30, the Real Estate Recovery Fund MUST maintain a balance of:

$600,000

The real estate Commissioner is appointed by the:

governor

The primary purpose of real estate licensing is to:

protect the people

The following would require a real estate license:

a. a developer selling more than ten homes

b. an attorney in fact selling property for a principal

c. a trustee selling under a court order

d. an attorney at law taking a listing

d. an attorney at law taking a listing

A broker loses his license. The broker's salespeople can:

a. close all transactions as soon as possible

b. activate their licensees with other brokers

c. wait to see if their broker gets his license reinstated

d. continue to operate as before because it wasn't their fault the broker lost his license

b. activate their licensees with other brokers

A broker offers to prepare documents for a real estate transaction at a fee of $35. Which of the following is TRUE?

a. She cannot charge for the service.

b. She may charge if the parties agree.

c. She may charge if it is considered an escrow fee.

d. She may charge if the fee was negotiated.

a. She cannot charge for the service.

The earnest money given with an offer to purchase and held in the broker's trust account is said to belong to:

buyer

Licensed real estate brokers are given authority to draw those documents necessary in the course of their work by:

the Arizona Constitution

The following is NOT required for a real estate salesperson license in Arizona:

a. 90 hours of education

b. 90 days of residence in Arizona

c. pass an examination

d. minimum age

b. 90 days of residence in Arizona

In Arizona, the law provides that if not specified, a married couple will hold property as

community property

A person dies intestate leaving behind a mother, a brother, a sister, a son, and granddaughter who is the daughter of the deceased individual. Who will receive the estate?

the son and granddaughter

An easement in gross:

a. is attached to person, not a property

b. is always a negative easement

c. must have a definite termination date

d. is an appurtenant easement

a. is attached to person, not a property

One's ownership interest in a condominium is distinguishable from other types of real estate by a(n):

undivided interest in common area

In Arizona, property owned before marriage is sole and separate. Property acquired after marriage would be considered

community property

Which of the following statements is true regarding cooperative ownership:

a. a deed is issued to each unit

b. owner has a long-term proprietary lease

c. each unit has a separate note and deed to trust

d. the owner is a joint tenant with the other occupants

b. owner has a long-term proprietary lease

If a husband and wife own community property and the husband dies, who receives the husband's behalf?

heirs

A recorded easement places on the property

an encumbrance

A disadvantage of ownership in a cooperative when compared to a condominium would MOST likely be the:

a. Restriction on profit upon resale

b. Danger that other owners might not be able to pay their share toward the mortgage and taxes

c. Personal liability of owners should they default on their payments

d. High tax assessment

b. Danger that other owners might not be able to pay their share toward the mortgage and taxes

The rights of the owner of property along the banks of a stream or river are called

riparian rights

The use of surface water in Arizona is governed by all of the following, EXCEPT:

a. riparian rights

b. prior appropriation

c. reasonable use

d. recorded permit issued by state Department of Water Resources

riparian rights

Which of the following would be considered an exempt domestic well?

a. one with a maximum pump capacity of 50 gallons per minute

b. one with a maximum pump capacity of 35 gallons per minute

c. any size pump used for domestic use

d. any size pump as long as notice is given of intent to drill

b. one with a maximum pump capacity of 35 gallons per minute

Until the remediation of the residual contamination from a clandestine drug laboratory is complete, the owner must notify a buyer within how many days after the buyer signs the purchase contract to buy the subject property?

5 days

When altering an Arizona dry desert wash, a developer needs to consider the requirements of the

Clean Water Act (Wetlands)

A range is a strip of land:

a. 6 miles wide running north and south

b. 1 mile wide running east and west

c. 6 miles wide running east and west

d. 1 mile wide running north and south

a. 6 miles wide running north and south

How many acres would be contained in the following legal descriptions? NW1/4, SE1/4, N1/2, SE1/4, and SW1/4, SE1/4, S1/2, N1/4 of Section 21:

10 acres

A metes and bound description MUST:

a. cover an area larger than 10 acres

b. be in areas not included in the rectangular survey system

c. commence and finish at the same identifiable point

d. always use north as the basis for directions

c. commence and finish at the same identifiable point

The following section number is considered a fractional section:

a. 13

b. 18

c. 20

d. 36

18

Which of the following would NOT appear on a public report?

a. utilities

b. title condition

c. market value

d. legal description

c. market value

The only thing a subdivider can accept before receiving the Commissioner's property report is a(n):

lot reservation

A person who buys undeveloped acreage, divides it into ten 5-acre lots, and sells the lots is called a

subdivider

The Commissioner may deny a public report for all of the following reasons, EXCEPT:

a. the property is without ingress or egress

b. the owners have previously declared bankruptcy

c. the owner cannot produce perfect title

d. the owner cannot produce marketable title

c. the owner cannot produce perfect title

Land divided into six or more parcels of less than 36 acres each is called

a subdivision

David lost his home because of execution on a judgement by Cynthia, who was injured in David's swimming pool. The judgement was a:

a. mechanic's lien

b. specific lien

c. general lien

d. voluntary lien

c. general lien

A general contractor records a mechanic's lien. Priority of the lien is established as of

the day the work began

Failure to assert a right within a reasonable period may cause the court to determine that the right assert it is lost due to

laches

Restrictive covenants are enforced by

legal action by the other owners

A driveway that extends illegally onto a neighbor's property is a(n)

encroachment

A joint tenancy deed requires the signatures of

grantors and grantees

When could a person receive legal title to the property under an Agreement for Sale?

upon the last payment

Ten individuals form a corporation to purchase a percale of real estate. How would title be held?

in severalty

A mechanic's lien is NOT available to a person who:

a. graded the site for construction

b. supplies the lumber but did not perform any labor

c. provided the furniture for a model house

d. performed labor under a subcontract rather than a direct contract with the owner

c. provided the furniture for a model house

A transaction is closed on February 15, 20XX, and the buyer does not record the deed until April 24th, 20XX. A judgement for $1,200 is filed against the grantor on April 21, 20XX. The judgement:

a. is a lien against the property

b. is invalid against the property

c. constitutes a judgment inchoate

d. is a judgement reversion

a. is a lien against the property

Equitable title under a purchase contract would refer to

buyer's interest

A declaration of homestead may be terminated for all of the following EXCEPT:

a. filing an abandonment of homestead

b. death of one spouse

c. moving out of the property

d. converting the property to a rental

b. death of one spouse

In Arizona, the deed that is most commonly given by the sellers to buyers is a

warranty deed

In Arizona, the document that is signed by the buyer and seller stating the sales price and the MUST accompany the deed for recordation is a(n):

affidavit of value

An Arizona homestead is valid for:

$150,000

The seller of a condominium unity has the responsibility to deliver information the buyer, such as the operation budget of the HOA, when:

a. the HOA has 50 or more units

b. the HOA has a management company

c. the HOA is self-managed

d. the HOA has less than 50 units

d. the HOA has less than 50 units

Time-sharing is associated with which of the following?

a. cooperatives

b. profits

c. joint ventures

d. condominiums

d. condominiums

Fraud is:

a. deception not intended to harm

b. deception intended to harm

c. the same as misrepresentation

d. similar to puffing

b. deception intended to harm

An offer has been accepted on a 10-acre parcel, when the broker learns that the buyer has been buying up land in the area at a much higher price. The broker should:

notify the seller of the facts

John Jamison, a salesperson with Taylor Realty, lists the property of Charles and Loretta Simpson for sale at $52,000. The Simpsons have told Jamison that they are pressed to sell and would accept a purchase price of $49,000. Jamison shows the property to Randy Evans and tells Evans he can purchase the property for $49,000. Jamison has:

violated his relationship with his client

In regard to the party that agent is NOT representing, which of the following is included in the agent's responsibilities:

a. The agent has no responsibilities to the party they are not representing.

b. The agent must give advice and counsel to the party.

c. The agent must disclose material defects about the property

d. The agent must provide complete financial information about the principle.

c. The agent must disclose material defects about the property

A broker purchased her own listing because she knew of a purchaser who would pay more than the listing price. The broker

is liable to the seller for the profit she made.

When a boker secures a listing, which of the following actions would NOT require the owner's approval?

a. assigning the listing to another brokerage firm

b. assigning the listing to another salesperson

c. placing a sign on the property

d. advertising the property for sale

b. assigning the listing to another salesperson

Who may accept commission from an out-of-state broker?

the referring broker

In a subagency, the selling salesperson is responsible to the

selling broker

All listings MUST be in writing according to

Arizona statutes

When a commission dispute arises between two licensees from different companies their recourse would be to

seek relief through civil action

A broker informed her clients that "there is no need to consult your attorney concerning this contract. I am authorized by law to handle the necessary forms." The licensee is acting

in violation of the "Rules and Regulation" of the Commissioner

When an offer is written on a listing property in which you are the cooperating broker, you may contact the seller directly provided

the seller has given written approval and you have waited 24 hours.

The term "commingling" means

mixing funds held for other persons with one's own money

Which of the following MUST be included in an Arizona Real Estate Purchase Contract?

a. must state the form of earnest money deposit

b. notarized signatures of buyers and seller

c. must state the proportion settlement between buyer and seller

d. must state how title is to be taken

a. must state the form of earnest money deposit

The forfeiture period on a land contract is

a specific statutory period of time

A blanket mortgage usually contains which of the following?

a. closed-end clause

b. release clause

c. good faith estimate

d. due-on-sale clause

b. release clause

The period of time between the date when the borrower is declared in default and the date of the sheriff's sale is

equity of redemption

In an agreement for sale the seller is the

vendor

Forcing a tenant to pay rent by seizing the lease premises and the personal property inside is called

distraint

Simon Garner, a tenant in an apartment building owned by Rebecca McGee, has not paid his rent for two months. McGee has served Garner with a notice that action will be taken to collect damages due to this illegal possession. How long must McGee wait after serving notice before she can file a legal suit to evict Garner?

5 days

Julie Signer's agreement with her landlord calls for a monthly rental of $540. There is no date set for the termination of the agreement. Singer is now being transferred by her employer to another state and she must move. Under Arizona law, how much advance notice must she give to the landlord in order to terminate her tenancy?

30 days

The following is NOT true regarding a proper management trust account:

a. multiple properties can be in one trust account

b. a salesperson can be a signatory on the trust account

c. a salesperson signatory may sign checks paying miscellaneous fees

d. an owner can be the signer on the trust account

d. an owner can be the signer on the trust account

The maximum amount the lessor may charge as a security deposit is

1.5 months rent

$142 interest is paid in an eight-month period on a $2,400 straight note. What is the interest rate?

Between 8.5% and 9%

A broker and an owner discussed several types of listing agreements and decided upon an exclusive right to sell. The broker drafted the listing, but the owner did not sign in. The broker subsequently produced a willing buyer and demanded the commission from the owner based upon the exclusive right to sell. The commission is:

a. Not due because the unsigned agreement amounts to a new listing.

b. Due because there is an implied contract between the broker and owner.

c. Due because an oral agreement is all that is required for an exclusive right to sell to be enforceable.

d. Not due because the agreement was not signed by the owner.

d. Not due because the agreement was not signed by the owner.

A broker brought a qualified buyer to the seller. However, at the close of escrow, the seller refused to pay the commission. The earnest money being held in the broker's trust account is the exact amount of the commission. What should the broker do?

a. Keep one-half of the earnest money, and give the balance to the seller.

b. Keep the entire amount in lieu of commission.

c. Turn the earnest money over to the seller and sue the seller for the commission.

d. Put the earnest money into escrow and wait for the court to decided.

c. Turn the earnest money over to the seller and sue the seller for the commission.

A broker prepares documents for a real estate transaction and charges a document preparation fee of $75. The charging of such a fee is

a. acceptable if the parties to the transaction agree

b. prohibited by the Arizona real estate code

c. prohibited by Article 26 of the Arizona Constitution

d. acceptable if it is called an escrow fee

c. prohibited by Article 26 of the Arizona Constitution

A buyer assumed a seller's 11%, $80,000 first deed of trust on the settlement date of June 13. The seller made the monthly payment of June 1 with interest in arrears. Which of the following in a correct settlement entry for the interest?

a. $439.92 seller's credit

b. $293.28 buyer's debit

c. $439.92 seller's credit

d. $293.28 seller's debit

d. $293.28 seller's debit

A buyer of real property

a. is always considered a customer

b. is always considered a client

c. may be a customer or a client

d. normally has a fiduciary relationship with the real estate salesperson

c. may be a customer or a client