Arizona Real Estate Salesperson Exam Questions And Answers Latest Update 2025, Exams of Real Estate Management

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What are the two requirements of the property if the anti- deficiency statute is to apply? - - - correct answer ✅2.5 acres or less. Utilized as a family home for a 1 or 2 family dwelling. In a deed of trust, who is the "trustor?" - - - correct answer ✅The person buying the house (the purchaser). Who has priority in liens even over a purchase money mortgage lien filed prior? - - - correct answer ✅Liens for unpaid property taxes and agricultural liens on crops. Does an IRS lien filed in 2015 have priority over a mortgage filed in 2014? - - - correct answer ✅No. In Arizona, IRS liens do not have priority a mortgage/deed of trust filed prior to it. Does a lien for property taxes filed in 2015 have priority over a mortgage filed in 2014? - - - correct answer ✅Yes. In Arizona, state property tax liens do take priority over other liens.

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What is the title of the person who supervises the estate of someone who died without a will? - - - correct answer ✅Administrator. What is the title of the person who supervises the estate of someone who died with a will? - - - correct answer ✅Executor. When are property taxes ASSESSED? - - - correct answer ✅Once a year, January 1. When are the two dates in Arizona in which property taxes are DUE for January 1? - - - correct answer ✅For January 1, 2015, they would be DUE on October 1, 2015 and March 1, 2016. When are property taxes LATE for October 1, 2015 and March 1, 2016? - - - correct answer ✅For October 1, 2015, they are late on November 1,

2015. For March 1, 2016, they are late May 1, 2016.

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If a salesperson represents a seller in ALL real estate transactions, that is considered to be what form of agency? - - - correct answer ✅General agent. A real estate salesperson (licensee) is what kind of agent as to his or her broker? - - - correct answer ✅General agent. A seller gives her salesperson the right to sell and make other decisions regarding the property is what kind of agent? - - - correct answer ✅General agent. What are the 4 types of listings? - - - correct answer ✅(1) Exclusive right to sell; (2) Exclusive agency; (3) Open Listing; (4) Net listing. If a seller lists a property with a broker, but sells it himself and pays no commission, what sort of listing was this? - - - correct answer ✅Exclusive agency.

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Which listing gives the salesperson/broker a right a commission regardless of whether the seller sells the property? - - - correct answer ✅Exclusive right to sell. What do the seller and listing broker have to agree upon when listing a property? - - - correct answer ✅The ending date of the listing. A listing broker lists a property with sub-agency provisions. Another broker accepts the listing broker's offer to cooperate. The co- operating broker is acting as the _____ to the seller? - - - correct answer ✅Subagent A salesperson's right to a commission is based on - - - correct answer ✅having a valid license. Is a broker required to get the owner's approval to transfer a listing to another salesperson? - - - correct answer ✅No. Is a salesperson the agent of the seller or of the broker? - - - correct answer ✅Broker. (And the broker is the agent for the seller).

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Is a listing broker responsible for making a list of the personal property to be included in a listing? - - - correct answer ✅Yes. In a normal real estate transaction, is the broker responsible for giving abstract of title and opinion? - - - correct answer ✅No. If a seller tells a broker he doesn't want anything other than full price offers, should the broker still present offers less than the listed (full) price? - - - correct answer ✅Yes. If an escrow is opened by a salesperson, but his broker's license is suspended thereafter, may the salesperson still receive his commission? - - - correct answer ✅Yes. Under an exclusive agency, if the seller sells the property himself, does the broker get a commission? - - - correct answer ✅No.

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May a salesperson enter into dual agency (buyer and seller) if it is disclosed in writing to both buyer and seller? - - - correct answer ✅Yes. A seller/broker relationship can be described as principal/______________? - - - correct answer ✅Agent. A procuring cause dispute is most likely to occur with agents working with which type of listing? - - - correct answer ✅Open listing. If a listing broker dies, can his son take over the listings by informing the sellers of the transfer and asking the real estate department for approval? - - - correct answer ✅No. He must re-write and negotiate all listings. Is the broker-seller relationship best defined as "contractual" or "fiduciary?" - - - correct answer ✅Fiduciary.

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Is an open listing between a seller and broker more bilateral or unilateral? - - - correct answer ✅Unilateral. It's an offer by the seller to any broker to sell the property, so it's one-sided. Does a listing change because the salesperson has changed? - - - correct answer ✅No. Can a bankruptcy by a seller terminate a listing? - - - correct answer ✅Yes. What are the 6 duties owed by the listing broker to the seller/principal? - - - correct answer ✅Loyalty. Confidentiality. Disclosure. Obedience. Reasonable care and diligence. Accountability. Is "acquiescence" a duty owned by the broker to the principal? - - - correct answer ✅No. For an "exclusive agency" listing, it is true that it could not go into multiple listing? - - - correct answer ✅False.

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Can brokers use a sub-agent in an "exclusive listing" and still be paid a commission? - - - correct answer ✅Yes. In order to ensure getting paid a commission in an open listing, the broker must make sure he has a __________? - - - correct answer ✅Signed listing contract. In an open listing, does the fact that the broker obtained the highest bid take precedence over whether the broker has a signed listing contract in order to get his commission? - - - correct answer ✅No. The signed listing contract is what is key to a broker's ability to collect a commission. A seller tells a broker not to disclose he is going through with a divorce to the buyer? Does the broker have to tell the buyer this if he is asked? - - - correct answer ✅No. The broker may decline to answer. But the broker cannot deny it, either. Just decline to answer. The broker must keep the buyer's confidence but can't lie to the seller, so the broker can only refuse to answer.

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May a salesperson continue to work on a contract that is in escrow even though the listing contract has expired? - - - correct answer ✅Yes. When a buyer signed a contract to purchase, what sort of title does he get? - - - correct answer ✅Equitable. Is a contract without a legal description of the property better described as "void" (illegal) or "unenforceable?" - - - correct answer ✅Unenforceable. Does a property management agreement continue even after the death of the owner? - - - correct answer ✅No. Terminates upon death. If a person (buyer) wants to buy a property in the future, but also wants the right to decline the seller's offering price, that is called a ______________________? - - - correct answer ✅First right of refusal.

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Do both the buyer and seller have to initial changes upon a counter offer? - - - correct answer ✅Yes. What the primary difference between an option contract and a purchase contract? - - - correct answer ✅The option contract does not have to be consummated. If a contract has been signed, but title has not passed, is the contract "executory" or "executed?" - - - correct answer ✅Executory (not sure why). Seems like signing means executed, but because the title has not transferred, it's not done yet, so who knows. Does an option to buy become binding when the option to buy is signed, or when the option to buy is exercised? - - - correct answer ✅When it is exercised. If a husband or a wife fail to sign a realty contract, is it enforceable against either of them? - - - correct answer ✅No. It is unenforceable against both of them.

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If, before the close of escrow, a contract is signed but the building burns down, is the commission payable? - - - correct answer ✅No. Has to be after escrow. What does the "market data" approach to appraising use? - - - correct answer ✅Building plus value of the land. What is the name for when a property increased in value without the owner doing anything? - - - correct answer ✅Unearned increment. Is an offer by telephone that is accepted "executory" or "unenforceable?" - - - correct answer ✅Unenforceable. No offer for real estate can be oral, so it's not merely pendant; it's not valid, and therefore, unenforceable. A five bedroom house with a single bathroom would be? - - - correct answer ✅Functionally obsolete.

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The "Market Data" approach is based on the principle of....? - - - correct answer ✅Substitution. Used for residential real estate, finding like properties. The "highest and best use" is related to... - - - correct answer ✅"greatest net return." Appraising an old home would use the _______ approach to appraising? - - - correct answer ✅Market. Appraising an old home in a new neighborhood would use the ________ approach to appraising? - - - correct answer ✅Cost. The economic life of a building is based on the ___________? - - - correct answer ✅period of time it remains profitable to operate. When people pay more than a property is worth, is it due to its location/situs or amenities? - - - correct answer ✅Amenities.

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A historical house would be appraised by the ________ approach? -

correct answer ✅Cost. An outdated interior in a house would be an example of _____________ depreciation? - - - correct answer ✅functional. Means a drop in desirability. It's not "deterioration" but rather obsolesce because of changes in taste. Does the "Gross Rent Multiplier" use gross or net rents? - - - correct answer ✅Gross rents. If you rebuild a residential property, you are using which principle, replacement or reproduction to appraise? - - - correct answer ✅Replacement. There is no reproduction. What is the best appraisal method for appraising a school that is 50 years old? - - - correct answer ✅Cost. What are operating expenses? - - - correct answer ✅Property taxes, insurance, maintenance.

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What is not an operating expense? - - - correct answer ✅Vacancy and loss of credit and depreciation. What does the income approach to appraisal use for its most important figure? - - - correct answer ✅Net operating income. After gathering all data, an appraiser must...? - - - correct answer ✅Reconcile and correlate. Incurable depreciation is also called ______? - - - correct answer ✅Economic depreciation or deterioration. Is incurable depreciation called "market depreciation" or "economic deterioration?" - - - correct answer ✅Economic deterioration. There is NO market depreciation. There is market appraisal. The higher the cap rate, the ______ the value. - - - correct answer ✅Lower. If the cap rate is 5%, that means the property is worth 20 times its income stream. If the cap rate is 20%,

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the property is worth 5 times its income stream. So, the higher the cap rate, the lower the value. CAP rate = - - - correct answer ✅income/value Effective gross income (of an apartment) = Gross income - ______________? - - - correct answer ✅Gross income - vacancy (apartments that didn't rent) and credit loss (people who didn't pay rent they owe) Economic obsolescence is best defined as __________ + ___________? - - - correct answer ✅external + incurable If the property is newer at its highest and best use, what's the best appraisal approach? - - - correct answer ✅Cost approach. If a house is locate next to a bowling alley, that is an example of what kind of depreciation? - - - correct answer ✅Economic depreciation.

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Using the market data approach, if you have a comparable house that has an asset like a covered porch that adds $5000, but the subject property is missing a fireplace worth $2000, how do you adjust the value? - - - correct answer ✅You find the difference, $3000, and SUBTRACT it from the subject house. Should the cost approach be used when property is residential (but oddly, not "historic") - - - correct answer ✅No. You use market data approach for normal residential property (excepting new construction). What are the three types of obsolence? - - - correct answer ✅Economic, physical, and functional An undesirable factor outside the property that is not curable is...? -

correct answer ✅Economic obsolescence. An undesirable factor to the interior of the property is called...? - - - correct answer ✅Functional obsolescence.

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What principle determines whether a person should add a new feature to an existing home? - - - correct answer ✅Contribution principle. When an appraiser needs to calculate a separate value for the land, he is using which approach? - - - correct answer ✅Cost approach. Cost approach is a "summation" approach of the value of the land and buildings/improvements. Does the market approach to appraisal use functional depreciation?

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correct answer ✅No. The annual gross multiplier is determined by... - - - correct answer ✅Dividing price of property / annual gross rental income. Think "multiple" and thus bigger number (value) is divided by smaller number (income) Do terms of sale affect price or value? - - - correct answer ✅Price.

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A substantial increase in interest rates would increase or decrease the value of a rental property? - - - correct answer ✅Decrease, if you assume the property is leveraged. What appraisal approach is used when appraising land? - - - correct answer ✅Market data (aka, "Comparative analysis"). Uses "comps" or sales. What appraisal approach is used when evaluating "used" residential property? - - - correct answer ✅Market data (aka, "Comparative analysis"). Uses "comps" or sales. What sets the floor and the ceiling on an appraisal? - - - correct answer ✅Floor is set by the selling price. Ceiling is set by the listing price. What is another name for the "Cost Approach?" - - - correct answer ✅Cost approach is also called "summation." What are the two subcategories of the Cost Approach? - - - correct answer ✅Reproduction, which means creating an exact

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replica, for instance, of a historic house. Replacement, which means updating a property using current materials and standards. What are the 3 kinds of replacement appraisal? - - - correct answer ✅1. Quantity survey (pricing every nut and beam); (2) Unit in place (figuring out how much a section of something would cost, like a lane in a bowling alley); (3) Comparative (by square foot, usually, or by per apartment unit, etc). After calculating either the reproduction or replacement cost, you have to subtract ___________? - - - correct answer ✅Depreciation, which is difference in value between construction cost and present value. What are the 3 kinds of depreciation? - - - correct answer ✅Physical, functional, economic. What is physical depreciation? - - - correct answer ✅Loss of value from wear and tear.

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What is functional depreciation? - - - correct answer ✅Loss of value from INSIDE the property (interior items) and are either curable or incurable). What is economic depreciation? - - - correct answer ✅Loss of value from circumstances outside the property. For depreciation, what is economic life? - - - correct answer ✅How long a property can be profitably used. For depreciation, what is actual age of a property? - - - correct answer ✅Actual age in years. For depreciation, what is effective age of a property? - - - correct answer ✅The age a property is perceived to be. Besides the Market Data (Substitution) approach, and the Cost (Reproduction/Replacement) approach; what is the last approach to appraisal? - - - correct answer ✅Income (aka, Capitalization) approach.

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Gross Rental - Vacancies (empty apartments) and Credit Losses (people who didn't pay rent) = - - - correct answer ✅Adjusted Gross Income (aka, Effective Gross Income or "EGI"). EGI - operating expenses (such as property taxes, insurance, utilities, payroll) but NOT depreciation or loans/debt service = - - - correct answer ✅NOI (net operating income). Besides the Market Data (substitution) and Cost (summation> (1) reproduction; (2) replication) approaches, what is the third approach? - - - correct answer ✅Income approach (aka, Capitalization approach) Which measurement is the smallest and used for urban, densely populated areas? - - - correct answer ✅Lot and block. Does a plot map include buildings? - - - correct answer ✅No.

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How big is a township? - - - correct answer ✅36 square miles; 6 miles by 6 miles. An 18-mile (per side) square parcel of land would thus contact 9 townships. What is included in a plat map? - - - correct answer ✅(1) Blocks and the lots within them; (2) lot size; (3) name of subdivision. What is not included in a plot map? - - - correct answer ✅Structures or their orientations. What system uses monuments? Plat or metes and bounds? - - - correct answer ✅Metes and bounds. How many square feet per acre? - - - correct answer ✅ 43560 What is the distance to Range 6 west from the principal meridian? -

correct answer ✅30 to 36 miles away, as you must include the closest and furthest point from the principal meridian in the range of distance.

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What is the distance to Tier 4 south? - - - correct answer ✅18 to 24 miles away from the principal meridian. How many townships are contained in a government survey check?

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correct answer ✅16. The survey check is done every 24 miles. As each township is 6 miles, there are 4 rows and 4 columns or 16 total townships in such a survey check.e Be careful or aware if the question asks you to ADD parts of a section: "What is the TOTAL number of acres of the SW1/4 and NW1/2 of section X?" - - - correct answer ✅1/4 of 640 is 160. 1/2 of 640 is 320. Total is 480. But don't just start multiplying 1/4 x 1/2 thinking you are finding the size of a single parcel: there are two parcels there. The word total obviously means to add. Just a random possible error. A row of tiers are known as a... - - - correct answer ✅Township. Rows of townships are known as.... - - - correct answer ✅Tiers.

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When would a plat map be used? - - - correct answer ✅For a subdivision. Does a lot and block survey show the orientation of a property? - - - correct answer ✅No! A method of legal description that uses definite property lines and starting points is called? - - - correct answer ✅Formal metes and bounds. Who is responsible for supervising escrow, the broker or the Title Insurance Company? - - - correct answer ✅Broker. If a property closes on Feb. 3, 2016 upon what measurement are the property taxes calculated for escrow? - - - correct answer ✅Based on last year's property tax. The property taxes aren't due until October 1 for taxes due from Jan-June, 2016. So you have to use last year's measurements to calculate the tax at escrow.

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At the end of an escrow, who gives all the paperwork out to the parties, the broker or the escrow company? - - - correct answer ✅Escrow company. What does a HUD-1 statement do? - - - correct answer ✅Discloses all closing costs. Who is credited for unpaid taxes? - - - correct answer ✅Buyer. What does the seller pay for at closing? - - - correct answer ✅Deed preparation. How does a seller close a purchase contract? - - - correct answer ✅Deliver the deed at escrow. Are security deposits prorated on a closing statement? - - - correct answer ✅No. They aren't split at all. They are given to the buyer.