1.  Arizona property taxes are based on:
 a.  Pro rata share
 b.  Assessed value
 c.  Front footage
 d.  Transfer value

2. The tax rate applied to owner occupied residential property is:
 a. 10%
 b. 12%
 c. 14%
 d. 16%

3. Which of the following liens would have priority?
 a. Recorded mechanics liens
 b. Unrecorded mechanics liens
 c. IRS liens
 d. Property taxes

4. Property taxes become a lien the first day of:
 a. January
 b. October
 c. November
 d. March

5. If a property is not bid at a tax foreclosure sale:
 a. The excess rebate goes to the property owner
 b. Anyone can buy the property from the Treasurer
 c. All other liens are terminated
 d. The property can only be sold next February

6. Rank the following liens in the order of their priority from highest to lowest: IRS lien, Property
Taxes, Special Assessments.
 a.  IRS lien, Property Taxes, Special Assessments
 b.  Property Taxes, Special Assessments, IRS Liens
 c.  Property Taxes, IRS Liens, Special Assessments
 d. . IRS Liens, Special Assessments, Property Taxes

7. When a broker misappropriates funds, this is called?
 a.  Conversion
 b.  Commingling
 c.  Conveyance
 d.  Consideration

8. What type of property would pay the most taxes:
 a. Vacant land
 b. Shopping center
 c. Parking lot
d. Residential housing

 9. What is the priority of property tax liens?
 a.  Date recorded
 b.  After IRS liens
 c.  Always in first position
 d.  After the homestead exemption

10. When are the first half property taxes delinquent?
 a.  October 1
 b.  November 1
 c.  March 1
 d.  May l

12. The two designations or classifications of water law in Arizona are:
 a.  Navigable and non-navigable
 b.  Ground and surface
 c.  Flowing and stagnant
 d.  None of these

13. Taxes are assessed on:
 a.  Improvements on the land
 b.  Value of the property
 c.  Amount paid for the property
 d.  Assessments on the property

14. The Doctrine of water usage in Arizona is known as:
 a.  Riparian
 b.  Prior appropriation
 c.  Reliction
 d.  Reliction back

15. Water rights in Arizona are:
 a.  A constitutional right of property owners
 b.  Indefeasible by right of law
 c.  Federal right
 d. . First in time, first in right

16. In Arizona, property taxes are payable:
 a. Twiceayear
 b. 90 days after bill received
 c. January 1st every year
 d. On the Fiscal year

17. When a party owns land on a non-navigable stream it is said that they hold title to:
 a. Low water mark
 b. High water mark
 c. As stated in the original legal description
 d. Must be determined by a surveyor

18.  When the county assessor evaluates real estate for the purpose of taxation, this is called:
a. Loan to value
b. Dollar value
c. Mill value
d. Assessed value

19. Real estate taxes are levied in Arizona:
a. Twice a year
b. Once a year
c. Every five years
d. Quarterly

20. Second half real estate taxes are due:
a. January 1st
b. October 1st
c. November 1st
d. March 1st

22. Which of the following liens are paid first after a foreclosure?
a. 1st mortgage
b. Mechanics liens
c. IRS liens
d. Property taxes

23. The doctrine of water usage in Arizona is known as:
 a. Riparian
 b. Prior appropriation
 c. Reliction
 d. Reliction back

24. At the end of the three year tax redemption period a person who holds the certificate
purchase:
 a. Must foreclose
 b. May extend the period
 c. Will automatically obtain title
 d. The period is automatically extended

25. The Homestead Exemption in Arizona is now set at:
a. 20,000
b. 50,000
c. 75,000
d. 100,000

26. Homestead exemption will protect a person against which of the following?
a. Subsequent liens
b. Mechanics liens
c. Unforeseen personal judgments
d. Secured loans
 

27. What will not terminate a homestead exemption?
a. Selling the property
 b. Moving out of the property
 c. Buying other property
 d. Filing an abandonment of homestead

28. If a husband and wife own community property and the husband dies, who receives the
husband’s half?
 a. Wife in all cases
 b. 1/2 wife, 1/2 heirs
 c. Heirs
 d. Children 3/4, wife 1/4

29. 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

30. What action will void a homestead?
 a. Declaring bankruptcy
 b. Filing joint tenancy
 c. Declaring primary residence in another state
 d. Death of a spouse

32. You homestead your property then default on a loan for $50,000 secured with a note and Deed
of Trust. How much does the one foreclosed on owe:
 a. Nothing
 b. 50,000
 c. 90 days of payment
 d. 6 months of payment

33. 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 cost

34. A property that is in foreclosure has had a valid homestead recorded, what is the status of the
foreclosure:
a. Homestead will protect the equity
b. Homestead will delay the foreclosure
c. Foreclosure will continue as normal
d. Lender may only obtain the amount over the homestead limit
 

35. Which of the following would not apply to community property with right of survivorship?
 a. Step up in basis
 b. Avoiding probate
 c. Willing to a third party
 d. Can only be held by husband and wife

36. All of the following deeds will convey title except...
a. General Warranty
b. Special Warranty
c. Quit Claim
d. Disclaimer

37. Which of the following would not appear on a public report?
a. Utilities
b. Title condition
c. Market value
d. Legal description

38. When a lot is sold outside of a subdivision, which of the following must appear in the deed?
 a. Zoning ordinances
 b. Square footage
 c. Water rights
 d. No ingress or egress exists

39. An affidavit of Value would contain all of the following except...
a. Consideration
b. Tax transfer stamps
c. Description
d. Signatures

40. What is the purpose of an affidavit of value?
a. Assist the County Assessor in determining property values
b. To meet IRS requirements
c. To assist in determining capital gains tax
d. To assist the State Treasurer in sales tax revenue

42. Which of the following coverage would not be included in an owners policy of title insurance?
 a. Forged documents
 b. Unknown heirs
 c. Parties in adverse possession
 d. Recorded mechanics liens

43. Which of the following would not be covered in a standard owners policy of title insurance:
 a. Easements obtained by prescription
 b. improper delivery
 c. Conveyance made by a minor
 d. Forged documents

44. An owners title policy would protect you against whicfl or me Toliowing:
 a. Encroachments
 b. Survey error
 c. Unrecorded easements
 d. Forgery

45. In Arizona a deed must be signed by the:
a. Grantee
b. Mortgagor
c. Grantor
d. Trustor

46. A deed is acknowledged in Arizona to:
a. Show the intent of the grantee
b. Meet the recordation requirements
c. Meet state law
d. Meet the statute of frauds

47. A licensed contractor is hired and paid in full directly by the owner of a commercial property. The general contractor fails to pay the subcontractors for the work they performed. The general contractor then files bankruptcy and the subcontractor files a mechanics lien within 125 days from the completion of his work. In this situation which of the following is true regarding the subcontractor:
a. The lien is not valid because the owner did not hire the subcontractor
b. The lien is not valid because it was not recorded within the required time period
c. The lien is not valid because the owner paid the general contractor in full
d. The lien is valid as long as a foreclosure action is taken within 100 days of recording the lien

48. How long does a subcontractor have to file his mechanics lien?
a. 60 days after completion
b. 60 days from contract date
c. 90 days after completion
d. 120 days after completion

49. Which of the following would not be involved in a Deed of Trust?
a. Trustor
b. Trustee
c. Beneficiary
d. Vendor

50. A defeasance clause in a Deed of Trust allows for:
a. The trustee to foreclose
b. Cancellation of the lender’s claim upon full note payment
c. Lenders protection against forgery
d. Non assumability of a loan

52. When a Deed of Trust is satisfied, the trustee sends out a:
a. Satisfaction of mortgage
b. Defeasance clause
c. Deed of reconveyance
d. Warranty deed

53. 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 sub-contractors. Which of the following statements are true?
a. The subs can only look to the general for payment’
b. The subs can file a mechanics lien against the property
c. The subs cannot file a mechanics lien
d. The subs must wait for the general to file the mechanics lien

54. Who would sign the deed of reconveyance?
a. Trustor
b. Trustee
c. Beneficiary
d. Sheriff

55. Naked legal title best describes the interest of:
a. Trustee under a trust deed
b. Trustee in an agreement for sale
c. Trustee in a mortgage
d. Beneficiary to owner

56. What is not true regarding a mechanics lien?
a. General contractor has 120 days to file a lien
b. Sub-contractor has 120 days to file a lien
c. A mechanics lien may be filed at any time
d. A mechanics lien is valid for six months

57. Property taxes are what type of lien?
a. General
b. Specific
c. Inchoate
d. Incorporeal

58. Which of the following could not be part of a Deed of Trust:
a. Judicial foreclosure
b. Non judicial foreclosure
c. Statutory forfeiture period
d. Reinstatement period

59. An Assignment of Rent Clause is for the benefit protection of the:.
 a. . Trustor
 b.  Beneficiary
 c.  Trustee
 d.  Mortgagor

60. A mechanics lien is placed on title by a general contractor:
a. 90 days from the start of the job
b. 120 days after job is completed
c. 60 days from the start of the job
d. 60 days after completion

62.A mechanic’s lien may be filed by:
 a. The utility company
 b. Construction employee
 c. The auto mechanic
 d. The lumber supplier

63. What will not terminate a homestead exemption?
 a.  Selling the property
 b.  Moving out of the property
 c.  Buying other property
 d.  Filing an abandonment of homestead

64. Mechanics lien take priority:
 a.  Date recorded
 b.  Date work began
 c.  90 days after work began
 d.  6 months after work began

65. Which of the following liens have first priority:
 a.  IRS
 b.  Property taxes
 c.  First mortgage
 d.  Recorded judgments

66. If you have been given notice of a possible future lien this lien is probably:
 a.  Property taxes
 b.  Mechanics lien
 c.  Property insurance
 d.  Purchase money mortgage

67. A general contractor does work for a tenant in a commercial leased space. The tenant fails to
pay the contractor, which of the following is true regarding the mechanic’s lien?
 a.  The contractor may not file a lien
 b.  The contractor will lien the entire building
 c.  The contractor can only lien the leasehold interest
 d.  The contractor must have the owners permission to file a lien

68. A tenant hires a mechanic to construct a patio roof. The tenant refuses to pay the amount
owed; the mechanic may file a lien against:
 a.  Beneficiary
 b. . Mortgagor
 c.  Tenant’s improvements
 d.  Owner

69. When could a person receive legal title to the property under an Agreement for Sale?
 a.  Upon paying 30 percent of the price with 20 day notice to vendor
 b.  Upon the last payment
 c.  Upon paying 50 percent of purchase price
 d.  When the agreement was recorded

70. A buyer buys a property under an Agreement for Sale with only 10 percent down. The buyer
then leaves town and abandons the property. Which of the following statements are true?
 a. Seller must go through a foreclosure process
 b. Buyer will forfeit his equity after a specific time period
 c. Buyer will automatically lose his equity
 d. Buyer has a 90-day reinstatement period

72. The forfeiture period on a land contract is:
 a. A reinstatement period as agreed by the parties
 b. A specific statutory period of time
 c. 90 days after constructive notice
 d. 6 months after actual notice

73. At a mortgage foreclosure sale if the property is abandoned the statutory period of redemption
can be cut to which of the following times?
a. 30 days
b. 60 days
c. 90 days
d. 120 days

74. A commercial project was in foreclosure and after the sale the mortgagee did not receive
enough money to satisfy the note. Which of the following statements are true?
a. The lender can sue the borrower for deficiency judgment
b. The lender would not be able to sue for deficiency judgment
c. The lender~s only recourse is the property
d. The lender would first have to honor the property homestead

75. 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 quit claim deed. What is the position of the $10,000 second?
a. The quit claim deed eliminated the second
b. The second must be paid before a quit claim can be given on the first
c. The second is now in first position
d. The $10,000 is still in second position

76. 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. Which of the following is true?
 a. Lender may foreclose on the land and mobile home
 b. Lender may not foreclose under the homestead act
 c. Lender may foreclose on the land only
 d. Lender may foreclose on the mobile home only

77. After a Deed of Trust Foreclosure sale which of the following is true?
a. A Deed of Re-conveyance is given to the trustor
b. The note is marked paid and returned to the trustor
c. A trustee’s deed is given to the new owner
d. The trust deed is returned to the trustor

78. Which of the following would not be part of an agreement for sale:
 a. Statutory notice
 b. Account servicing agreement
 c. Trustee notice
 d. Forfeiture rights

79. State usury laws would set:
a. Interest rates
b. Recision laws
c. Disclosure
d. Advertising restrictions

80. A land contract has an acceleration clause and is now in default. Which of the following is true?
a. No acceleration clause is allowed in a land contract
b. Vendor can forfeit the vendee's equity immediately
c. Once the acceleration clause is exercised, you would foreclose as a mortgage
d. The vendee would have a d0-day reinstatement period

82. Who benefits from a non-disturbance clause in a loan?
a. Seller of the property
b. New buyer of the property
c. Tenant leasing the property
d. Broker who sells the property

83. What is the primary difference between an agreement for sale and a purchase money mortgage?
a. A purchase money mortgage contains the note and security all in one document
b. The purchase money mortgage is the evidence of the debt
c. The agreement for sale contains the note and security all in one document
d. The agreement for sale is used only when selling land

84. What is not part of the property manager's responsibilties?
a. Ethics
b. Keeping up with rental rates in the area
c. Telling the owner the market value of the building
d. Keeping current with vacancies

85. What is not required of a property manager?
a. Register prospective tenants
b. Collect rents
c. Acts as a general agent
d. Keep up with current rental rates

86. Which of the following may a property manager not receive?
a. Reimbursement for out of pocket expenses
b. Free rent on an apartment unit
c. Monthly management fee
d. Rebates from suppliers

87. What is not part of a typical property management agreement?
a. Beginning and ending date
b. Frequency of management reports
c. Thirty day cancellation clause
d. Annual budget

88. Which of the following would not be part of the landlord tenant act?
a. Security deposits regulations
b. Property management regulations
c. Notice for eviction
d. Notice of self help repairs

89. A landlord wishes to show a party your apartment. He may do so with which of the following
notices:
a. 24 hours
b. 48 hours
c. 72 hours
d. 6 hours

90. All of the following can be signators on a property management trust account except
 a. Designated Broker
 b. Managers licensed under the broker
 c. Property owner
 d. Employees of the broker

92. Property management agreement doesn’t deal with which of the following:
 a. Commissions
 b. Rents
 c. Building age
 d. Frequency of reports

93. If a property is damaged by fire and the tenant moves out, which of the following statements
are true:
a. Tenant may terminate the lease with a 14 day written notice
b. Tenant may terminate the lease with a 10 day written notice
c. Tenant may terminate the lease with a 7 day written notice
d. Tenant may terminate the lease with a 3 day written notice

94. A property management agreement may be terminated:
 a. By a ruling of the real estate department
 b. Within 10 day written notice by either party
 c. Within anytime that was agreed to in the agreement
 d. With a majority consent of the lessee’s

95. In order to terminate a month-to-month lease, a person would be required to give:
a. 10 days notice
b. 14 days notice
c. 21 days notice
d. 30 days notice

96. When a tenant fails to pay rent, the landlord would first deliver to the tenant which of the following?
a. Judgement
b. 5 day notice
c. Forcible detainer
d. Abandonment notice

97. A Property management company is required to keep a copy of all residential rental agreements upon expiration for a period of?
a. One year
b. Three years
c. Five years
d. Six Years

98. All of the following are true regarding security deposits on residential property except...
a. Landlord may collect up to one and one half times the monthly rent
b. Tenant may pay in excess of one and one half times the monthly rent if agreed
c. Landlord may charge one and one half times monthly rent plus first and last months rent
d. Landlord may charge a non-refundable cleaning deposit

99. How many days does the landlord have to give the tenant a full accounting of the security deposit upon termination of tenancy?
a. 3 days
b. l0 days
c. 14 days
d. 21 days

100. If the landlord fails to give the tenant a full accounting of the security deposit within the required time, which of the following is true?
a. The landlord would be liable for twice the amount wrongfully held
b. The landlord would be liable for three times the amount wrongfully held
c. The landlord would only be required to return the original deposit plus interest
d. The landlord would be required to return the original deposit plus twice the amount of interest

102. Before a tenant can exercise the self-help for minor defect provision, the tenant must give the
owner how many days to cure the defect?
a. 3
b. 5
c. 7
d. 10

103. If the landlord fails to comply with the rental agreement the tenant may terminate the lease if
the breach is not corrected in how may days?
a. 3 days
b. 7 days
c. 10 days
d. 14 days

104. If the landlord fails to comply with the rental agreement in matters affecting health and safety
the tenant may terminate the lease if the breach is not corrected in how many days?
a. 3 days
b. 5 days
c. l0 days
d. 14 days

105. All of the following are true regarding self-help for minor defects except...
a. Tenant must give the landlord ten days to comply
b. All notices given to the landlord must be in writing
c. Tenant may spend up to 1/2 month rent or $300 whichever is greater
d. Tenant may deduct work from rent in the amount of twice the rent

106. Before the commissioner issues a public report on subdivided land, the subdivider may not:
a. Take lot reservations
b. Enter into a binding contract
c. Advertise the lots for sale
d. Begin lot improvements

107. All of the following can be used in a developers’ public report advertisement except:
 a. Specific prices
 b. The public report is an endorsement of the project
 c. Names of the owners and past history
 d. Future plans of the general area

108. As of June 30th of any year, the real estate recovery fund must maintain a balance of
a. 200,000
b. 250,000
c. 300,000
d. 600,000

109. How long are the real estate exam tests scores valid for?
a. One year
b. Two years
c. Three years
d. Four years

110. How long does a broker need to keep his records?
a. 2 years
b. 3 years
c. 4 years
d. 5 years

112. All listings must be in writing to be enforceable according to:
 a.  Arizona Constitution Article XXVI
 b.  Law of Agency
 c.  Arizona Revised Statutes
 d. . R.E.S.P.A.

113. The commissioner has the power to do all of the following acts EXCEPT:
 a. Prescribe rules and regulations
 b. Investigate signed written complaints
 c. Examine office records
 d. Create real estate statutes

114. After passing the real estate exam, a licensee must activate his license within:
 a. Six months of the examination date
 b. Six months of notification of passing the test
 c. One year of the examination date
 d. Three years of the examination date

115. Unless otherwise specified, a broker is required to deposit earnest monies in escrow or a trust
account:
 a.  Upon the buyer’s acceptance
 b.  Upon seller’s acceptance
 c.  By the close of the next business day
 d.  Within 72 hours of receipt

116. The commissioner may deny a public report on a subdivision because of the subdivider’s
inability to:
 a.  Provide buyers with water rights
 b.  Provide building permits
 c.  Deliver clear title
 d.  Provide floor plans

117. Who may accept a commission from an out of state broker?
 a.  The referring salesperson
 b.  The referring broker
 c.  Unlicensed property manager
 d.  Any individual who made the referral

118. If a broker abandons or moves his real estate office and fails to notify the commissioner,
Which of the following is true according to Arizona Statutes?
 a.  He may receive a warning from the Real Estate Department
 b.  He will be fined $1000.00
 c.  His license will be automatically revoked
 d.  He might be fined up to $500.00

119. A broker receives an oral offer over the telephone. What should he do?
 a.  Refuse to present it until it is in writing
 b.  Refuse to present it unless he has earnest money
 c.  He must present the oral offer
 d.  Tell the buyer that oral offers are illegal

120. A licensee may not charge for document preparation as a result of what of the following:
 a.  Rules and Regulations
 b.  Arizona Statutes
 c.  Arizona Constitution Article XXVI
 d.  Law of Agency

122. A broker prepares documents at a cost of $35. Which of the following is true?
 a.  He cannot charge for the service
 b.  He may charge if the parties agree
 c.  He may charge if it is considered an escrow fee
 d.  He may charge if the fee was negotiated

123. What happens when a brokers license expires?
 a. The salespeople lose their licenses
 b. The salespeople must find another broker
 c. The salespeople may continue to work
 d.  the broker may work for an additional ninety days tenant may deduct work from rent in the amount of twice the rent

124. How many brokers can a licensee work for at the same time in Arizona?
 a. One at a time
 b. Two with Department approval
 c. Two if he declares he is inactive
 d. two if one is a property manager

125. When a complaint is filed against a licensee, which of the following is true.
 a. The licensee is automatically suspended
 b. The commissioner must conduct an investigation
 c. The license is revoked
 d. The licensee is suspended until a hearing is held

126. When a licensee leaves a broker, the license:
 a. Goes with the licensee
 b. Is sent to the real estate department
 c. Remains on the brokers wall
 d. Is automatically terminated

127. When the commissioner receives a written complaint against a licensee:
 a. He will automatically suspend the license
 b. He will revoke the license
 c. He will turn the matter over to the courts
 d. A hearing will be held before any suspension

128. Which of the following would not be required to appear on a brokers trust account deposit
Receipt:
 a. Name of the principals
 b. Date of deposit
 c. Name of the brokerage
 d. Deposit break down and amount

129. Arizona Subdivision law would be found in which of the following articles:
a. Article 2
b. Article 3
c. Article 4
d. Article 5

130. A broker informed his 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:
a. Appropriately in his fiduciary capacity
b. Within the “Rules and Regulations” of the Commissioner
c. In violation of the Constitution of Arizona
d. In violation of the “Rules and Regulations” of the Commissioner

132. You buy unimproved land in a subdivision sight unseen; you have how long to rescind the contract?
a One year
b Six months
c Three months
d Ninety days
 

133. Who appoints the Arizona Real Estate Commissioner
a. State legislature
b. Governor
c. Popular vote
d. Elected official

134. Who is responsible for formulating the Rules and Regulations in Arizona?
 a. State Legislature
 b. Governor
 c. Real Estate Commissioner
 d. Attorney General

135. When a broker moves his office, how long does he have to remove his sign?
a. Six months
b. Ten days
c. Immediately
d. Thirty days

136. Right to license real estate agents comes from the:
a. Commissioner
b. State Legislature
c. Municipalities
d. County Government

137. What can a developer do without a CPR:
a. Lot reservations
b. Sales Contracts
c. Close Escrow
d. Non-refundable deposits

138. If you do not renew your license on time your license wilt be:
a. Suspended
b. Terminated
c. Valid
d. Unaffected

139. When a commission dispute arises between two licensees their recourse would be to:
a. Appeal to the Real Estate Commissioner
b. Appeal to the employing broker
c. Seek relief through civil action
d. Appeal to the advisory board

140. For a licensee to be paid a real estate commission a license is required:
 a. At the close of escrow
 b. When all documents are recorded
 c. When earnest money is accepted
 d. At the time of the sale

142. When the designated broker is on a temporary absence, all of the following are true
EXCEPT:
a. Temporary absence is 30 days or less
b. Salesperson be appointed as a designated representative
c. Temporary absence relieves the designated broker of responsibility
d. Written evidence of a designated representative must be kept for five years

143. Which applies to the statute of fraud?
 a. All leases need to be in writing
 b. Defines misrepresentation
 c. Real estate contracts must be in writing
 d. All personal property contracts must be notarized

144. Which of the following need a real estate license?
 a. Person giving information about subdivision
 b. Receiver in bankruptcy
 c. Trustee handling a trust
 d. Attorney at law in the course of business

145. The Commissioner can refuse a subdivision because:
a. The commissioner fears the subdivision will not be economically profitable
b. Subdivider has filed previous bankruptcy
c. The subdivider fails to provide floor plan
d. The commissioner fears the properties have no real value

146. In Arizona the right of the licensee to prepare certain legal documents and forms comes from:
a. US constitution
b. Federal law
c. Arizona constitution
d. Local ordinance

147. Subdivider must be able to give the purchaser:
a. Building permits
b. Permanent access
c. Water rights
d. Perfect title

148. What can’t the real estate commissioner do in the normal tine of work:
 a. Check files of licensee
 b. Hold an active real estate license
 c. Hire and fire Department of Real Estate employees
 d. Revoke a real estate license

149.  If you buy a parcel of land in which a CPR was required but was not issued the buyer may
void the sale within:
a. 1 year
b. 2 years
c. 3 years
d. 5 years

150. A real estate broker is required to have all of the following except:
 a. Trust account
 b. Day to day control of the business
c. Use the brokerage name when advertising
d. Have an acting manager at each branch office

152. In order to renew a real estate license you need how many hours of classroom education
every two years:
a. 12
b. 16
c. 18
d. 24

153. Which is not the responsibility of a real estate agent:
a. Inform the real estate department of change of address in 10 days
b. Do whatever the broker says
c. Turn earnest money over to the broker
d. Act as a sub-agent

154. Which of the following is NOT true regarding a brokers trust account
a. It may be interest bearing
b. The salesperson may be an authorized signator
c. The salesperson may withdraw trust money to pay commissions
d. A trust account may contain up to $500 of the broker’s personal funds

155. Which of the following is NOT required of a real estate broker
 a. Keep a copy of all contracts for 5 years
 b. Have day to day control of the operation
 c. Maintain a neutral trust account
 d. Approve advertising material before publication

156. If you are an active licensee your license:
 a. May be kept in the licensee possession
 b. Remain on file with the broker
 c. Remain on your person
 d. Remain with the state

157. When a broker is charged with an administrative fine the amount of the fine is:
a. $100
b. $500
c. $1000
d. $5000

158. A temporary broker license can be obtained by another party for all except:
a. Broker dies
b. Broker declared insane
c, Broker injured
d. Broker is on an extended vacation

159. A subdivision public report would be required on all of the following properties except?
 a. Residential time share
 b. New home sales
 c. Apartments converted to condo
 d. Commercial lots

160. Upon conviction of a felony or misdemeanor a licensee must notify the real estate department within…
a. 3 days
b. 7 days
c. l0 days
d. 14 days

162. Which is false about a contract that does not have a CPR?
 a.  You may void the contract but will lose your deposit
 b.  You may still buy the property
 c.  You have a voidable contract for 3 years
 d.  You as a buyer are not receiving full protection

163. Who may initial a purchase contract per commissioner’s rules?
 a.  Any office manager
 b.  Designated or Associate Broker
 c.  Salesperson
 d.  Office employees

164. To qualify as a temporary broker all of the following must be met EXCEPT:
 a.  You must hold an associate brokers license
 b.  Have three of the last five years experience
 c.  Hold a valid real estate license
 d.  Obtain the temporary license from the real estate department

165. When a sales license has expired and is now being renewed, the late charge would be...
 a.  A graduated monthly fee
 b.  Three times the license fee
 c.  Two and one half the license fee
 d.  Up to $100.00 penalty

166. The real estate commissioner may do each of the following EXCEPT:
 a.  Hire and fire employees
 b.  Look at the broker books at anytime
 c. . Formulate rules and regulations
 d.  Immediately revoke a real estate license on a complaint of fraud

167. You have 30 acres and want to make six 5 acres lots. Which of the following is true?
 a.  A public report is required.
 b.  A public report is only required on re-sale.
 c.  A public report is not required due to size
 d.  A public report is only required if you improve the lots

168. A public report is to be given to a buyer:
 a.  Before he signs the contract
 b.  Within three days of signing the contract
 c.  Within seven days after signing the contract
 d.  Within six months of signing the contract
 

169. When a public report is issued on a time-share project, which of the following would not be
included in the report?
 a. Time-Share exchange status
 b. Names of owners and developers
 c. Condition of the title
 d. Association fees to be paid

170. Who appoints the real estate advisory board?
a. Commissioner
b. State Legislature
c. Governor
d. Popular election

172. When a real estate license is required to be renewed; it is done every two years at:
 a. The end of the month
 b. The beginning of the month
 c. The day issued
 d. Each birthday

173. Real estate commissions are set by:
 a. Custom
 b. Negotiation
 c. Multiple listing service
 d. Realtor association

174. A salesperson receives an offer on a property of another listing broker. The salesperson
cannot contact the listing broker within 24 hours. What must he do?
a. Request the seller to give him written authorization to present the offer
b. Mail the offer back to the buyer
c. Submit the offer to the seller immediately
d. Hold the offer until he can contact the listing broker

175. When the real estate commission pays a claim from the recovery fund, which of the following
is true before a licensee may obtain a real estate license once again?
 a. . Licensee must pay back the amount the fund paid out
 b.  Licensee must work under probation for one year
 c.  Licensee will have a limited license for one year
 d.  Licensee must ask permission from the court to reinstate the previous license

176. How can a listing be canceled?
 a. Ruling of the real estate department
 b. Mutual agreement
 c. Lack of a legal description
 d. Lack of a stated commission

177. When a broker secures a listing which of the following actions would not require the owners approval?
 a.  Placing a sign on the property
b. Advertising the property for sale
c. Assign the listing to another salesperson
d. Assigning the listing to another brokerage firm
 

178. A real estate brokerage company has twenty listings. The company is sold to another local
real estate company, what is the status of the listings?
a. Listings may be assigned 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

179. How many recovery funds does the Real Estate Commissioner administer?
a. None
b. One
c. Two
d. Three

180. How much will be paid on a single claim from the real estate recovery fund?
a. 20,000
b. 25,000
c. 30,000
d. 45,000

182. 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 the co-operating broker
b. The broker orally disclosed to all parties per statutes of frauds
c. The broker has given written disclosure to buyer and seller
d. The total payment in commission does not exceed the seller full commission paid

183. All of the following apply to the Arizona Recovery Fund except:
a. File suit within 5 years
b. Obtain a judgment
c. Try to collect on judgment
d. Need to be an Arizona resident

184. The only person who could not recover from the State recovery fund is:
a Buyer
b. Seller
c. Escrow officer
d. Licensee

185. The body of laws that governs listings are called:
a. Statute of Fraud
b. Statute of limitations
c. Arizona revised statutes
d. Law of agency

186. A broker may collect a commission from both buyer and seller it
a. Oral approval is given
b. Commissioner must approve
c. Written approval is given before execution
d. Written approval is given after execution

187. The 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

188. Which of the following can’t file a claim against the recovery fund?
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

189. The relationship between a broker and his salesperson is what type of agent?
a. General
b. Special
c. Ostensible
d. Fiduciary

190. 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. Speak for the seller regarding the property listed

192. 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

193. Which of the following listed below 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

194. 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. Pay the broker a commission if stated in the agreement
c. To be shown properties listed by that brokerage house only Buyer agrees to definite beginning and ending date
d. Buyer agrees to definite beginning and ending date

195. A real estate purchase contract must contain which of the following:
 a. Date of prorations
 b. Form in which earnest money is given
 c. Method of taking title
 d. Type of conveying instruments

196. 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

197. A buyer and seller enter into a purchase contract but the broker fails to initial the contract within
the required five days, what is the status of the purchase contract?
a. Valid
b. Void
c. Unenforceable
d. Voidable

198. After a seller accepted an offer, another offer is given to the listing broker. Which of the
following is true?
a. Agent is not required to present the offer
b. Agent is not required to present the offer if instructed by the owner in writing
c. Agent may present the offer only if it is a higher price
d. Agent may present the offer only if the seller will receive a higher net

199. The City of Phoenix is located what direction from the G. & S.R.B.& M.:
a. Northeast
b. Northwest
c. Southeast
d. Southwest

200. 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 bi-annual year

202. 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

203. 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

204. Taxes are paid in full on a property in the amount of $624. The seller closes escrow
November 20th of the same year. What is the seller’s credit in escrow?
a. $69.33
b. $71.06
c. $72.08
d. $74.53

205. At the close of escrow, pre-paid 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

206. If the C.O.E. is June 5th, 1999, 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 buyer $457, debit seller $457
c. Debit the buyer $343, credit seller $343
d. Credit the buyer $343, debit seller $343

207. Property taxes have been paid for the entire year, at closing this would appear as:
a. Full year credit to seller
b. No credit could be given to seller
c. Debit seller credit buyer
d. Credit seller debit buyer

208. You sell your property June 6th. The annual water bill is $86 and taxes are $778 all
have been prepaid. What amount is the proration at the close of escrow?
a. Debit seller $492 credit buyer $372
b. Debit seller $374 credit buyer $490
c. Credit seller $492 debit buyer $492
d. Credit seller $437 debit buyer $492

209. 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

210. Which of the following would appear as a credit on sellers closing statement:
 a. Rents paid in advance
 b. Title insurance
 c. Prepaid insurance
e. Property taxes

212. A salesperson runs 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 broker’s name must be larger in size than the salespersons
c. The brokerage name must appear in the ad
d. The broker’s telephone number must appear in the ad

213. 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 specifics and details
 d. Seller misusing the word acre

214. 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

215. Broker A offers Broker B a commission split and alt parties agree. During the contract negotiations Broker A lowers the commission without the approval of Broker B. Which of the following is true?
a. Broker B can postpone the close of escrow
b. Broker B may not allow a commission dispute to postpone the close of escrow
c. Brokers can ask the commissioner to arbitrate the issue
d. Broker B can file a commission lien on the sellers property

216. A Salesperson can advertise as a “Team” as long as...
a. The Broker mails a copy of the team members to the Real Estate Department
b. The team members are all brokers
c. The real estate department approves of all team members
d. One member is an associate broker and the rest are assistants

217. Which of the following documents would a homeowners association not be required to give a
buyer upon resale?
a. Financial statements
b. Reserve analysis
c. By laws of the association
d. Personal financial statements

218. Who is responsible to give all documents to a buyer upon the sale of a property located in a
homeowners association if there are less than fifty units?
a. Broker
b. Seller
c. Buyer
e. Escrow

219. When a property is located within a homeowners association who is responsible for supplying the appropriate documents?
 a. Selling Broker
 b. Listing Broker
 c. Seller if more than fifty units
 d. Association if more than fifty units

220. A buyer is buying a home located within a homeowners association. The home has a violation that is not known by the homeowners association and is not 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 the CCR’s

222. All of the following would be a violation of the commissioner’s rules except...
a. Showing a property presently listed
b. Presenting an offer directly to the owner and not the listing agent
c. Failure to present an oral offer
d. Inducing a buyer to cancel an existing purchase contract

223. 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

224. Arizona Superfund site is know as...
a. Water Quality Assurance Revolving Fund
b. Comprehensive Environmental Response Clean Up Liability Act
c. Assured site
d. Clean Air & water site

225. 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 pumps as long as you give notice of intent to drill

226. When grandfathered water rights are re-classified and can now be sold separate from the land,
this reclassification is known as:
a. Type I
b. Assured
c. Adequate
d.  Type II