AZ REAL ESTATE EXAM NEWEST

AZ REAL ESTATE EXAM NEWEST

ACTUAL EXAM QUESTIONS AND

DETAILED CORRECT ANSWERS

(VERIFIED ANSWERS) | A+

STUDYGUIDE

On April 1st a salesperson took a six-month open listing on the property. On April 20th another sales person obtained a six-month exclusive right to sell listing on the same property. On May 1st the first salesperson obtained a buyer for the property and a sale closed on June 1st.

This situation may be a/an: Correct Answer Must pay both

because it is an Exclusive Right to Sell contract

A broker receives earnest money from a buyer but instead of placing the money into the trust account the broker pays

company bills. This action is an example of: Correct

Answer Conversion because he is converting to another account, money not mixing.

Once an applicant passes the real estate exam, which of the following statements are true? Correct Answer Once the state exam has been passed the application has one year to obtain either an active or inactive license. If an applicant goes over the year date they must re-take & pass the state exam again.

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When a deed of trust is being foreclosed how many days do you have to redeem it? Key word redeem* Correct Answer Deed of trust has a 90-day reinstatement period with no redemption period.

Chemicals used in refrigeration, air conditioning, insulation, and aerosol propellants that drift into the upper atmosphere where their chlorine components destroy ozone are called Correct Answer CFCs are chlorofluorocarbons, an inert chemical used in refrigeration and aerosol cans.

A married couple bought property together. No other information is given, what type of tenancy do they have?Correct Answer A married couple would take title as community property unless they both requested survivorship.

If two or more brokers get together to set a commission

rate, this would be in violation of: Correct Answer

Sherman Anti-Trust Law

Except during a time of emergency, property cannot be

confiscated through use of: Correct Answer Under the

government's rights of police power, property can be confiscated in an emergency.

To receive a tax-free sale of your principal residence, the homeowner must live in the property as their principal residence for at least: Correct Answer Homeowners 2 / 4

seeking the tax-free gain exemption from the IRS must live in their home for at least 2 years.

A few real estate brokers from different companies were discussing the possibility of establishing an office policy to list for sale all raw land at a 10% commission. Which of the following is true? Correct Answer Sherman Anti-Trust Law

A "mutual fund" for pooling investor money for investment

in real estate: Correct Answer Real Estate Investment

Trust REIT

A property owner is selling a house "For Sale by Owner." the seller places the ad in the local newspaper looking for buyers. If the seller is on the Do Not Call Registry the

broker may call when: Correct Answer The broker

represents the buyer

Short term capital gains are taxed at Correct Answer ordinary income tax rates

A trust deed is signed by the: Correct Answer Trustor

Which of the following activities will not occur in the secondary market? Correct Answer Origination fees

A lender would add a margin to an index to accomplish which of the following? Correct Answer The purpose of the margin is for the lender to keep current with the cost of new mortgages. 3 / 4

An escrow agent can be: Correct Answer All: The escrow agent is responsible for performing the closing procedures according to the sales contract or escrow agreement.

If the buyer is assuming an existing loan on the property, which of the following is prorated at closing? Correct Answer Interest only

Which of the following would be a debit to the seller Correct Answer Property Taxes

A preliminary title report would tell you all of the following except Correct Answer Zoning is not part of the preliminary title report

The Real Estate Settlement Procedures Act was enacted

to: Correct Answer RESPA ensures that consumers are

provided with important, accurate, and timely information about the actual costs of selling or closing a transaction, not about the cost of obtaining a loan and interest. The costs of obtaining loans and interest are provided under Regulation Z of the Truth-in-Lending Act.

RESPA does all of the following except: Correct Answer

The HUD-1 statement prevents a buyer from being charged undisclosed fees; it requires disclosure of all costs involved with the transaction.

Deed in Lieu Correct Answer this conveys title to the lender when the borrower is in default and wants to avoid

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