Quiz
A real estate brokerage company has 20 listings. The company is sold to another local real estate company. What is true regarding the listings?
A) Listings are automatically transferred to the new company
B) Property owner and new company must sign a new listing
C) Listings remain valid and no action is necessary
D) The real estate department must approve the sale and listing transfer
B) Property owner and new company must sign a new listing
How many recovery funds does the Real Estate Commssioner administer
A) None
B) One
C) Two
D) Three
B) One
What is the maximum amount that can be paid on a single claim from the real estate recovery fund?
A) $30,000
B) $35,000
C) $40,000
D) $90,000
A) $30,000
If a claim is paid from the recovery fund, the status of the license in question is:
A) Suspending pending investigation
B) Terminated
C) Unaffected
D) Continues with no alteration
B) Terminated
A broker may represent a buyer and seller in a real estate transaction and receive a commission from both provided:
A) The broker splits the commission with a cooperating broker
B) The broker orally disclosed to all parties per Statute of Frauds
C) The broker has received written consent from buyer and seller
D) The total payment in commission does not exceed the seller's full commission paid
C) The broker has received written consent from buyer and seller
All of the following apply to the Arizona Real Estate Recovery Fund EXCEPT:
A) File suit within 5 years
B) Obtain a judgement
C) Try to collect on judgement
D) Arizona residency requirement
D) Arizona residency requirement
The only person who could NOT recover from the Real Estate Recovery Fund is:
A) Buyer
B) Seller
C) Escrow officer
D) Licensee
D) Licensee
A broker may collect a commission from both buyer and seller if:
A) Oral approval is given
B) The Commissioner approves
C) Written approval is given before execution
D) Written approval is given after execution
C) Written approval is given before execution
Real Estate Recovery Fund is subject to all of the following conditions EXCEPT:
A) The aggrieved party must file suit within five years
B) The Real Estate Commissioner acts as the fund administrator
C) Licensees can claim commissions if their broker declares bankruptcy
D) Arizona has one recovery fund
C) Licensees can claim commissions if their broker declares bankruptcy
A claim against the recovery fund CANNOT be filed by:
A) A corporation that was harmed by a licensee
B) A single person that was harmed by a licensee
C) A husband and wife with expired real estate licenses that were harmed by a licensee
D) An out-of-state party that had earnest money stolen by a licensee
A) A corporation that was harmed by a licensee
The relationship between a broker and their salesperson is what type of agency?
A) General
B) Special
C) Ostensible
D) Fiduciary
A) General
A special agent can do all of the following for the principal EXCEPT:
A) Show real estate in all areas
B) Handle all real estate for the principal
C) Perform specific duties
D) Present offers and counteroffer
B) Handle all real estate for the principal
A broker lists the Wilson's property, and only Mr. Wilson signs the listing. The broker finds a buyer who is ready and willing to buy the property under the terms of the listing. Mrs. Wilson refuses to sign the sales contract. Which of the following is true regarding the commission?
A) Only Mr. Wilson is responsible
B) Both Mr. and Mrs. Wilson are responsible
C) Only Mrs. Wilson is responsible
D) Neither party is responsible
B) Both Mr. and Mrs. Wilson are responsible
A listing agreement is known as:
A) A sales contract
B) An agreement to sell
C) A real estate contract
D) A contract for personal and professional services
D) A contract for personal and professional services
Which of the following would not be part of an exclusive buyer-brokerage agreement?
A) Agreement must be in writing
B) Beginning and ending date is required
C) All material terms set forth
D) All signatures notarized
D) All signatures notarized
When a buyer signs an exclusive buyer-brokerage agreement, the buyer agrees to all of the following EXCEPT:
A) To have one broker represent them
B) To pay the broker a commission if stated in the agreement
C) To be shown properties listed by that brokerage house only
D) Definite beginning and ending date
C) To be shown properties listed by that brokerage house only
When a buyer enters into a lease-purchase, which of the following are true?
A) The buyer has an option to buy the property
B) The buyer is obligated to buy the property
C) The buyer would have the first right to refuse
D) The buyer would have a life estate
B) The buyer is obligated to buy the property
After payment has been made from the recovery fund on behalf of a licensee, if the licensee repays the recovery fund, the licensee's right to reapply for a license:
A) May be denied for an indefinite period of time
B) May be denied by the commissioner for a maximum of 5-years
C) May not be denied if the fund has been repaid.
D) Will be rejected unless the licensee agrees to obtain a provisional license.
B) May be denied by the commissioner for a maximum of 5-years
Which of the following is NOT required to appear on a listing agreement?
A) Property taxes
B) Beginning and ending date
C) Sufficient description
D) Construction costs
D) Construction costs
A buyer and seller enter into a purchase contract, but the broker fails to initial the contract within the required ten business days. What is the status of the purchase contract?
A) Valid
B) Void
C) Unenforceable
D) Voidable
A) Valid
After a seller accepted an offer, another offer is given to the listing broker. The agent:?
A) Is not required to present the offer
B) Is not required to present the offer if previously instructed by the owner in writing
C) May present the offer only if it is a higher price.
D) May present the offer only if the seller will receive a higher net
B) Is not required to present the offer if previously instructed by the owner in writing
The highest property tax rate would apply to a/an:
A) Single family residential property
B) Vacant lot
C) Apartment building
D) Commercial property
D) Commercial property
The City of Phoenix is located what direction from the G. & S.R.B. & M.:?
A) Northeast
B) Northwest
C) Southeast
D) Southwest
A) Northeast
How many acres are contained in the following; N1/2 SW1/4 Sec. 11 and the SE1/4 SE1/4 Sec 4?
A) 60
B) 80
C) 120
D) 160
C) 120
What is the distance in miles to T4N, R5W, from the principal meridian
A) 6-12
B) 12-18
C) 18-24
D) 24-30
D) 24-30
The following would be an example of what type of surveying system?
Beginning at the SE corner of Tatum and Cactus, proceed 2,640 feet north, thence 400' west, thence 700 feet south, and back to the beginning
A) Rectangular survey
B) Block and lot
C) Metes and Bounds
D) Receded pLat
C) Metes and Bounds
How many acres would be contained in the following legal description: SW corner NE1/4 of Section 15 North to the NE corner of the SW1/4 of Section 10 Southeast to the SE corner of the NW1/4 of Section 14 thence west to the point of the beginning
A) 400
B) 520
C) 560
D) 320
D) 320
When taxes are prorated on a closing statement, which of the following statements are true?
A) Taxes are based on the prior year
B) Taxes are based on the present year
C) Taxes are based on the future year
D) Taxes are based on a biannual year
A) Taxes are based on the prior year
You sell a property on June 6th. The annual water bill is $86 and the taxes are $778. All have been pre-paid. What is the proration at the close of escrow?
A) Debit $492 to seller
B) Debit $492 to buyer
C) Credit $286 to seller
D) Credit $286 to buyer
B) Debit $492 to buyer
The seller paid taxes for the year in the amount of $624. The property sold and closed escrow November 20th. What was the proration at close of escrow?
A) $69.33 credit seller
B) $71.06 credit seller
C) $72.79 debit seller
D) $74.52 debit seller
B) $71.06 credit seller
A real estate sale was closed on March 21. The assessed value of the property is $72,500. Tax rate is $1.75 per $100 of assessed value. What is the proper entry on the seller's settlement statement?
A) $285.47 debit
B) $285.47 credit
C) $281.94 debit
D) $281.94 credit
C) $281.94 debit
At the close of escrow, prepaid rents on a settlement sheet would appear as:
A) Credit to seller, debit to buyer
B) Credit to buyer, debit to seller
C) Prepaid rents are not prorated
D) Prepaid rents belong to the seller
B) Credit to buyer, debit to seller
If the COE is June 5, how much is owed if the seller prepaid $800 of property taxes for the year?
A) Debit the buyer $457, credit seller $457
B) Credit the buyer $457, debit seller $457
C) Debit the buyer $343, credit seller $343
D) Credit the buyer $343, debit seller $343
A) Debit the buyer $457, credit seller $457
Property taxes have been paid for the entire year. At closing this would appear as:
A) Full year credit to sell
B) No credit could be given to seller
C) Debit seller credit buyer
D) Credit seller debit buyer
D) Credit seller debit buyer
On a closing statement, the selling price would be shown as:
A) Debit to the buyer
B) Prorated to buyer and seller
C) Credit to the buyer
D) Debit to the seller
A) Debit to the buyer
Which of the following would appear as a credit on the seller's closing statement?
A) Rents paid from a tenant to the seller in advance
B) Title insurance
C) Prepaid property taxes
D) Unpaid property taxes
C) Prepaid property taxes
You have two rentals for $650 and two for $550. The COE is June 10. How would this appear on the seller's closing statement?
A) $720 debit seller
B) $720 credit seller
C) $1,680 debit seller
D) $800 debit seller
C) $1,680 debit seller
When a new loan is paid PITI, which of the following would NOT appear on an escrow closing statement:
A) Property taxes
B) Property insurance
C) Principal payments
D) Interest adjustment
C) Principal payments
What document is recorded with the deed?
A) Affidavit of value
B) Purchase contract
C) Promissary note
D) HUD
A) Affidavit of value
A salesperson rus an ad in the local paper promoting a broker's listing. Which of the following is true?
A) The salesperson's name must appear
B) The designated broker's name must be larger in size than the salesperson's
C) The brokerage name must appear prominently in the ad
D) The broker's telephone number must appear in the ad
C) The brokerage name must appear prominently in the ad
Which of the following advertising would NOT be regulated by the Department of Real Estate?
A) A classified ad with no brokerage name
B) Ads using the word "team"
C) Ads naming property specific and details
D) Seller misusing the word acre
D) Seller misusing the word acre
When a licensee knows of material facts that affect the buying or selling decision, the facts must be:
A) Disclosed orally
B) Disclosed in writing
C) Recorded with the Commissioner
D) Recorded on title before close of escrow
B) Disclosed in writing
Which of the following documents would a homeowner's association NOT be required to give a buyer upon resale?
A) Financial statements
B) Reserve analysis
C) Bylaws of the association
D) Personal financial statements
D) Personal financial statements
Who is responsible for providing homeowner's association documents to a buyer upon the sale of a property located in a homeowner's associationi if there are less than 50 units in the association?
A) Broker
B) Seller
C) Seller if more than 50 units
D) Association if more than 50 units
B) Seller
When a property is located within a homeowner's association, who is responsible for supplying the relevant documents?
A) Selling Broker
B) Listing Broker
C) Seller if more than 50 units
D) Association if more than 50 units
D) Association if more than 50 units
A buyer is buying a home located within a homeowner's association. The home has a violation that is not known by the homeowner association and has not been disclosed to the buyer. Which of the following is true regarding the violation?
A) Buyer may be required to correct the violation
B) Buyer would not be required to correct the violation
C) The violation is grandfathered in
D) After the close of escrow, this violation would be stricken from CC&R's
A) Buyer may be required to correct the violation
No criminal, civil or administrative action may be brought against a licensee for failure to disclose which of the following:
A) Property is located in a floodplain
B) Property is located in a Superfund site
C) Property was a site of a natural death or suicide
D) Property is located near a military airport
C) Property was a site of a natural death or suicide
All of the following would be violation of the commissioner's rules EXCEPT:
A) Showing a property presently listed
B) Presenting an offer directly to the owner and not to the listing agent
C) Failing to present an oral offer
D) Inducing a buyer to cancel an existing purchase contract
A) Showing a property presently listed
Which of the following is true when paying an out-of-state referral fee to an employing broker?
A) The exact dollar fee must be disclosed to all parties
B) Only the name of the brokerage firms representing the parties must be disclosed in writing to all parties prior to close of escrow
C) Buyer and seller must agree in writing before a referral fee can be paid
D) The Department of Real Estate must be notified if an out-of-state broker is paid a referral fee
B) Only the name of the brokerage firms representing the parties must be disclosed in writing to all parties prior to close of escrow
A real estate ad must contain which of the following:
A) Brokerage name
B) Salesperson's name
C) Broker's and Salesperson's names
D) Name of principal
A) Brokerage name
When an agent is unable to contact the listing broker to present an offer for 24 hours, the agent
A) May present the offer with written consent of the buyer
B) May present the offer with written consent of the seller
C) May present the offer with written consent of the broker
D) Must wait and present the offer to the listing agent when available
B) May present the offer with written consent of the seller
When advertising via a web page, which of the following statements is true?
A) The broker's name must appear on the homepage
B) The licensee's name must appear prominently on every page, without the viewer having to scroll down to see it
C) The broker's name must appear prominently on every page without the viewer having to scroll down to see it
D) Arizona regulations do not apply if the web page advertising is targeting out-of-state residents
C) The broker's name must appear prominently on every page without the viewer having to scroll down to see it
When a sales person writes an offer on another brokers listing, which of the following listed below is true?
A) sales person may present the offer directly to the seller
B) the sales person was present the offer to the listing agent
C) the sales person must wait 24 hours before presenting to their broker
D) the sales person's broker must present the offer to the selling broker
B) the sales person was present the offer to the listing agent
A salesperson is offering a free gift certificate as part of a marketing plan. According to commissioners rules, which of the following would not be required to be disclosed in the ad?
A) Date the offer expires
B) Terms and conditions
C) Name of the specific store
D) Specific restrictions
C) Name of the specific store
Grandfathered irrigation rights do which of the following
A) Run with the land
B) Remain with the seller
C) Can be transferred separately
D) Are used by permit
A) Run with the land
Arizona Superfun is known as:
A) Water Quality Assurance Revolving Fund
B) Comoprehensive Environmental Response Clean Up Liability Act
C) Assured Site
D) Clean air and water site
A) Water Quality Assurance Revolving Fund
Which of the following would be considered an exempt domestic well?
A) One with a maximum pumping capacity of 50 gallons per minute
B) One with a maximum pumping capacity of 35 gallons per minute
C) Any size pump used for domestic use
D) Any size pump as long as notice of intention to drill is given
B) One with a maximum pumping capacity of 35 gallons per minute
When grandfathered water rights are reclassified and can now be sold separate from the land, the water rights are now known as:
A) Type I
B) Assured
C) Adequate
D) Type II
Type II
Grandfathered water rights:
A) Run with the land
B) Are sold separately from the land
C) May be sold separately if older than 10 years
D) Will be canceled when the land is sold
A) Run with the land
A Master Planned Community would best be described as:
A) A community of more than 100 residents
B) A community having a long 25 year plan
C) Two or more platted subdivisions with CC&R
D) A community with a mix of residential, commercial and industrial
C) Two or more platted subdivisions with CC&Rs
What agency is in charge of environmental protection at the state level?
A) EPA
B) ADEQ
C) ADWR
D) WQARF
B) ADEQ
When land is in an AMA which of the following apply?
A) The land is located out of the CAP supply zone
B) Overdraft of the underground water supply may be occurring
C) Surface water rights have been eliminated
D) Irrigation rights have been lost
B) Overdraft of the underground water supply may be occurring
Which of the followign would be considered a grandfathered water right:
A) Exempt domestic well
B) Type II water right
C) Flood area
D) Riparian district
B) Type II water right
When a residential developer is building houses in an active management area, wich of the following would apply?
A) Riparian rights
B) Adequate water supply
C) Exempt domestic well
D) Assured water supply
D) Assured water supply