210. Which of the following types of loans are guaranteed?
A. FHA
B. VA
C. Conventional
D. FNMA
211. What does the Gross Rent Multiplier find?
A. A multiple of net rents to determine value
B. A multiple of gross rents
to determine price
C. The capitalization value of the property
D. The effective gross income after operating expenses
212. A bring down fee would best be described as which
of the following?
A. A fee to update the title
report
B. A fee to originate a new loan
C. A fee when a loan is assumed
D. A fee to create a credit report
213. In a deed, the clause that deals with easements,
liens is called:
A. Granting
B. Habendum
C. Appurtenance
D. Limitation and restriction
214. Buyer wants to know his cash on cash return.
What is he most interested in?
A. Appraisal
B. Investment
C. Price Paid
D. Market Value
215. A buyer buys a property for $80,000. The property
has a First Deed of Trust for $55,000 and a Second Deed of Trust for $7,000.
The buyer will assume the second but requires that he first be paid in
full. What is the order of recordation?
A. Record a general warranty deed then the deed of reconveyance
B. Record the deed of reconveyance then the general
warranty deed
C. Record a quit claim deed and a deed of reconveyance
D. Record two quit claim deeds
216. A salesperson sells real estate out of state.
Where does the commission come from to pay
the salesperson?
A. Seller
B. Buyer
C. Out of state broker
D. Employing broker
217. When can an owner of a single family residence
depreciate the property for tax purpcses?
A. When the property is sold
B. If it is owner occupied
C. If the property is a rental
D. If it is held for 27 1/2 years
.
218. (A-2) An owner of lakefront property has 50 acres and divides
it into lots. Owner keeps the 1
lots closest to the lake. How is an easement to the lake preferred
by lot buyers?
A. Easement in gross
B. Easement appurtenant
C. Easement by prescription
D. Easement by neccessity
219. If an individual practices real estate without
a license this would be considered:
A. Class 6 Felony
B. Class 3 Felony
C. Class 1 Misdemeanor
D. Class 3 Misdemeanor
220. A licensee is required to disclose the presence of lead based paint
if the property was
built before:
A. 1988
B. 1978
C. 1989
D. 1992
221. If there is a contract dispute, which of the
following would take precedence?
A. Printed word
B. Items crossed out
C. Handwritten words
D. Boilerplate
222. You own a duplex and rent one unit. Which of
the following is true?
A. You may deduct the expenses from both
B. You may deduct the expenses
only for the rented unit
C. You may deduct the expenses only for the unit
owner occupied
D. You may not deduct the expenses for either unit
223. Who gives instructions to sign the deed or reconveyance?
A. Trustee
B. Beneficiary
C. Mortgagee
D. Mortgagor
224. What does a seller usually pay for at closing?
A. Appraisal
B. Deed preparation
C. Credit reports
D. Discount points
225. In a co-op, what does an owner sell?
A. Stock
B. Fee Simple
C. Air rights
D. Air rights and an undivided interest in land and
building
226. A co-op charges taxes based on:
Ad valorem
Price of property sold
Appraisal
Pro rata share
227. When the security and the note are one, it is:
Agreement for sale
Mortgage
Wrap around
All inclusive Deed of Trust
228. Which of the following is reflective of value
given in exchange for a property:
Appraisal
Market value
Market price
Reproduction cost
229. The distance from the front of a house to the
front lot line is:
Front feet
Easement appurtenant
Easement in gross
Set back
230. How could a lender save 5 months in a judicial
foreclosure?
Waive service of process
File for an abandonment suit
Release notice of acceleration
Substitute the trustee
231. A broker and another, unlicensed, buyer are looking
at the same house. What must the
broker disclose?
A. He can not purchase the property in competition with an unlicensed
person
B. He can only purchase if the unlicensed buyer gives him a first refusal
C. He can buy the property if he discloses he
has a license
D. He does not have the same right to buy as the unlicensed person
232. Two real estate licensees have a dispute that
is handled outside the court. It is:
Arbitration
Lis pendens
Litigation
Interpleader
233. A hand-written will is called which of the following?
Codicil
Unenforceable
Holographic
Intestate
234. What does the gross rent multiplier indicate?
A factor of rents to price
Net operating income to value
Income minus expenses
Income minus expenses and depreciation
235. A person who receives real estate in a will is:
Devisor
Devisee
Bequestor
Bequestee
236. The first thing an appraiser looks for when appraising
land is:
The highest and best use
Actual prices paid in the area
Market data
Physical depreciation
237. For the best appraisal of residential property,
the appraiser would use:
A different neighborhood
The neighborhood adjacent to the subject neighborhood
A similar neighborhood
Only the cost method
238. Two sisters want to buy a property and leave
it to their heirs. They should take title
As joint tenants with right of survivorship
As tenants in common
As tenants in severally
As community property
239. When you re-build today you would most likely
use which principle listed below?
Replacement
Reproduction
Quantity Survey
Unit in Place
240. “S’ lists his property. “G” makes an offer. Who
is “S”?
OfferOR
OfferEE
VendOR
VendEE
241. What would be done with the earnest money if
the seller can not produce clear title?
Goes back to buyer
Seller will retain
Goes to broker
Will be split between broker and seller
242. When a subdivider wants to break up a parcel
for sale and has a mortgage on the entire
which of the following is true?
They could sell indiv~ dual parcels if the loan contained a lot release
Would have to pay off the entire encumbrance before any lots can be
sold
Could sell individual lots if the land was fully amortized
243. Which of the following is true regarding a Graduated
Payment Mortgage?
There would be a change in payment but not in
rate
There would be a change in rate but not in payment
Interest rate will change with market conditions
Payment would increase or decrease based on market conditions
244. (A-3) Property “A” is encroaching on Property “B’. Property
“B” waits too long to take any
action. If property “A” obtains an easement it would most likely be:
A. Necessity
B. Prescription
C. In gross
D. Implied
245. What does the seller and listing broker have
to agree on when listing a property?
Property Address
Title Report
Clouds on Title
Ending Date of Listing
246. Of the following which is taxed the most?
Vacant shopping center
Land
Full office building
Residential
247. Two people want to leave property to children
upon death. They ask the broker the best
way to do this. The broker may advise:
A. Seek advise from attorney
B. Tenancy in partnership
C. Tenancy in entireties
D. Community property
248. A buyer does not have enough money to close the
deal. All are available options to him except:
Relative
Secondary market
Purchase money mortgage
Seller carry back
249. What happens if a salesperson violates the Fair
Housing Law?
Subject to $10,000 fine
Nothing
Lose his multaac key
Will be forced to attend Fair Housing seminar for days
250. How does a seller close on a purchase contract?
Sign escrow instructions
Deposit final monies
Deliver the deed to escrow
Sign and notarize all documents
251. How long does a broker have to move his sign?
A. 7 days after closing
B. Immediately upon request
C. 14 days after closing
D. 24 hours after closing
252. Condominium ownership is best described as:
Ownership in a unit and community ownership in common grounds
Fee simple in common grounds and a deed to condominium
Joint tenancy in common grounds
Ownership in condominium and tenancy in common
for common grounds
253. Grandfather water rights:
Run with the land
Remain with the seller
Are available to buyer at additional costs
As of 1986 Grandfather Water Rights are sole property of the state
254. What is the smallest unit of measurement?
Metes and bounds
Sectional survey
The boilerplate form approach
Lot and block
255. What is redlining?
Steering buyers into certain areas
Lender who will not make loans in outlined areas
Telling buyers to sell because minorities are moving in
An attorney taking kick-backs on subdivided land
256. A handicap person moves into an apartment and
wants grab-bars. He may do so at:
The tenants costs
Landlords costs
Landlord must provide prior to tenant moving in
Any person handicap or not may not alter unit at anytime
257. After a foreclosure of a mortgage excess funds
would be given to the:
Mortgagee’s attorney
Mortgagor’s attorney
Beneficiary
Mortgagor
258. A loan that is paid in full at the end of the
term is known as:
Term
Amortized
Blanket
Package
259. (A-4) Mr. Brown wants to purchase land with a mortgage and later
on erect a building on the
property. What clause should he put in the mortgage?
A. Subrogation
B. Subordination
C. Alienation
D. Acceleration
260. A mechanics lien, when recorded, reverts back
to:
Start of work
Completion of work
days after completion
months after completion
261. Standard title insurance would insure all the
following except:
Survey mistake
Mental incompentence of grantor
Forgery
Recorded mechanics liens
262. Which of the following can be deducted from income
tax?
Property taxes and interest payments
Depreciation
Maintenance
Principal loan payments
263. Which of the following is an example of a freehold
estate?
Leasehold
Chattel Real
Fee Simple Estate
Estate in Remainder
264. If you live along a stream and have the rights
to the water, this is called:
Reliction
Riparian
Avulsion
Assured Supply
265. Which of the following best describes prior appropriation?
Reliction
First in time, first in right
Riparian Rights
Adequate Water Supply
266. An encumbrance that affects the use of the property
would be:
Lien
Deed Restriction
Deed of Trust
Property Tax Lien
267. The tenant’s right to harvest crops after a lease
expires is called:
Remainder Rights
Leasehold
Reversion Rights
Emblements
268. Which of the following is not true regarding
a property tax auction?
A certificate of purchase will be issued
Successful bidder must foreclose after 3 years
Property auction is held in February
The auction starts at 16% interest
269. Once a salesperson passes the state exam how
long do they have to activate the license?
90 days
6 months
1 year
2 years
270. (A-3) If a property owner does not evict a trespasser after
a period of time, they may
acquire a:
A. Fee Simple Title
B. Remainder Estate
C. Leasehold Estate
D. Easement by Prescription
271. A real estate mortgage would be:
Involuntary lien
General lien
Voluntary lien
Statutory lien
272. A leasee puts in a book case for commercial
use; at the end of the lease the book case is
removed. The book case would be considered:
A. Real Property
B. Trade Fixture
C. Appurtenant
D. Chattel Real
273. Low income loans are usually purchased by:
FNMA
GNMA
FHLMC
Federal Reserve
274. Which of the following loan would have PMI?
FHA
VA
Package Mortgage
Conventional
275. Which of the following would not be a clause
in a mortgage?
Alienation
Subrogation
Subordination
Acceleration
276. Which of the following does not convey title?
Warranty Deed
Quit Claim Deed
Lease
Deed in Lieu of Foreclosure
277. To have a trustee sale, the beneficiary notifies
the:
Trustor
Beneficiary
Mortgagee
Trustee
278. Which of the following is personal property?
Lease
Fixtures
Tenements
Easement Appurtenant
279. A sa1esperson~s right to compensation is based
on:
Obtaining a listing
Obtaining a signed contract
Closing of an escrow
Having a valid license
280. A retail store has been in the same location
for 20 years. The land around the store is
sold for a housing development. Which of the following is true regarding
the retail store?
A. The store must close
B. The store is grandfathered in
C. The store must relocate
D. The store will be converted to residential
281. What type of loan has the highest loan to value
ratio?
FHA
Variable Rate
VA
Graduated Payment
282. Which of the following is not in the secondary
market?
FNMA
FHA
FHLMC
GNMA
283. The right of the mortgagor to regain title is
called:
Redemption
Reinstatement
Reversion
Hypothecate
284. Under certain conditions a utility may acquire
an easement by:
Police power
Eminent Domain
Appurtenant Right
Adverse Possession
285. The right of ingress and egress is best associated
with:
Police power
Appurtenant
Life Estate
Habendum
286. A plat map would include everything except:
Buildings
Lot size
Easements
Lot and Block
287. A remainderman receives the property after a:
Leasehold Estate
Estate at Will
Life Estate
Estate at Sufferance
288. Which of the following leases escalate?
Net
Index
Gross
Estate for years
289. Markers and degrees are found in what type of
survey?
Section Survey
Lot and Block / Flat Map
Metes and Bounds
Government Rectangular Survey
290. In a property management contract, what relationship
does the manager have with the
Implied Agency
Agency by Estoppel
Leasehold Interest
Fiduciary
291. A holdover tenant would have:
An Estate at Sufferance
An Estate at Will
Freehold Estate
Remainder Estate
292. Who does a salesperson represent?
Client
Customer
Employing Broker
Co-operating Broker
293. (A-9) When a tenant moves out because the landlord will not maintain
the property in a
liveable manner, this is called:
A. Constructive Eviction
B. Actual Eviction
C. Forcible Detainer
D. Writ of Restitution
294. (A-9) Which of the following would not be part of a property management
agreement?
A. Management Reports
B. Beginning and Ending Date
C. Methods of Deposit and Accounting
D. List of prospective tenants
295. (B-i) A salesperson tells a client, “there is no need to consult
an attorney, I can handle all
documents,” - this statement would violate:
A. Arizona State Law
B. Commissioner Rules
C. Statute of Fraud
D. Arizona Constitution Article XXVI
296. A broker relationship to a seller would most
likely be:
General
Special
Implied
Ostensible
297. Which of the following is not an appurtenant
to real property?
Easements
Buildings
Fixtures
Reversionary Rights
298. Which type of deed is not necessarily Evidence
of Title?
Warranty
Special Warranty
Grant Deed
Quit Claim
299. A Deed of Trust would do which of the following?
Convey legal title to Trustee
Convey legal title to Trustor
Convey legal title to Beneficiary
Convey legal title to Mortgagor
300. When a borrower pays off a loan, how long does
the lender have to give the borrower a of Release and Reconveyance?
10 days
30 days
60 days
90 days
301. How can you tell a property has older person
housing exemptions?
Residents are handicapped
Residents are on Social Security
Advertising for residents 55 yrs and older
The size of the units
302. What is tax deductible on your personal residence?
Depreciation
Principal loan payments
Interest and Taxes
Maintenance Costs
303. In an Agreement for Sale when the acceleration
clause is used, which of the following is
true?
A. Seller may declare the buyer equity forfeited immediately
B. Buyer must vacate at once
C. Acceleration clauses are not allowed in an agreement of sale
D. Seller may enforce the acceleration clause
by foreclosing as a mortgage
304. In a correctional township, fractional sections
are:
Northeast Sections
Southwest Sections
North and West
South and West
305. Finance contracts that call for interest
only payments usually include which of the
following provisions?
A. Prepayment Penalty
B. Maturity Date
C. Variable Interest
D. Graduated Payments
306. How many townships are in a 24 mile square?
A. 8
B. 12
C. 16
D. 24
307. Which of the following actions stop
a Trustee Sale after Notice of Election to Sell has
been filed?
A. Trustor files a Notice of Homestead
B. Trustor files for Bankruptcy
C. Lender files a Notice of Completion
D. Trustee dies
308. When it becomes necessary to foreclose on a Deed of Trust:
Trustee would order Beneficiary to foreclose
Trustor files Liz Pendens
Notice of Sale is sent to Debtor
Debtor has 60 day Redemption Period
309. J & S have a purchase contract. J wants
to transfer to H. This would be done with
which of the clauses listed below?
A. Attachment
B. Assignment
C. Subrogation
D. Subordination
310. Which of the following liens are paid first after a foreclosure?
IRS Lien
Mechanics Lien
First Mortgage
Property Taxes
311. Who pays the discount points on a VA loan?
Buyer
Seller
Agreement of parties
Broker
312. When a borrower stops making payments in a mortgage,
what clause is activated?
Acceleration
Alienation
Due on Sale
Subordination
313. Where do condominium owners rights come from,
regarding the property usage?
State Law
Common Law
Title Insurance Policy
Declarations and By-Laws
314. Which of the following is true regarding Arizona
Property taxes?
Became a lien on October 1st
IRS supersedes Arizona Property Taxes
Taxes are based on Ad Valorem
Interest on delinquent taxes is 10%
315. A valid contract must have:
Offer and Acceptance
Street Address
Earnest Money
Escrow Instructions
316. When a Deed of Trust is paid in full, the owner
gets which of the following:
Deed of Reconveyance
Satisfaction of Mortgage
Conveyance Deed
Quit Claim Deed
317. Who buys in the secondary market?
Local Banks
Fannie Mae
Federal Reserve
Federal Home Loan Bank
318. Which of the following is not a financial intermediary?
FHA
Local Banks
Mortgage Brokers
Life Insurance Companies
319. An owner’s interest in the condominium common
ground is best described as:
Sole and Separate
Undivided Interest Joint Tenancy
Joint Tenancy
In Severalty
320. You sign a contract but do not receive the deed
until the contract is paid in full. You
signed a:
Deed of Trust
Mortgage
Agreement for Sale
Leasehold Estate
321. Which of the following is not true regarding
a Deed of Trust?
Lender is Beneficiary
Trustor is Borrower
Trustee holds Legal Title
Lender is the Trustee
322. The Federal Fair Housing Law prohibits:
Blockbusting
Advertising to College Students
Advertising to Religious Communities
Advertising to Group Housing
323. A loan you obtain in installments and payoff
at maturity is called:
Amortized
Variable Rate
Construction
Take Out
324. What does not affect property value?
Easements
Encroachments
Liens
Title Insurance
325. A makes an offer to B. B makes a counter offer
back to A. Who is the offeree?
A. A
B. B
C. A and B
D. neither A nor B
326. A makes an offer to B and B makes a counter offer
and then dies. Which of the following
is true?
A contract exists
The agreement is binding on As heir
No contract exists
The agreement is binding on B’s heir
327. A lists his property with a broker. The broker finds a buyer who
would like to buy the property. The buyer tells the broker that he is also
buying the two properties next door and tells the broker not to tell the
seller. Which of the following is true?
A. The broker may not tell the seller because it was told in confidence
B. It would be the brokers decision
C. The broker would be obligated to tell the
seller due to the fiduciary relationship
D. The buyer may take legal action against the broker if he discloses
328. When legal action is being used to enforce a contract this is called:
Defeasance
Specific Performance
Laches
Mediation
329. ALTA policy would most likely cover which of
the following defects:
Rights of the government
Building permits
Zoning issues
Unrecorded Mechanics Liens
330. What is the best appraisal approach to use on
a fifty year old school?
Market
Cost
Income
Highest and best use
331. In a listing held by a broker, what does not
require the owner’s approval?
Place a sign in the yard
Advertise the property for sale
Transfer the listing to another salesperson
Transfer the listing to another brokerage
332. A property is being foreclosed and the entire
balance is due, this is called:
Defeasance
Acceleration
Alienation
Due on Sale
333. An owner puts up a fence that violates
deed restrictions, what remedy would the
association take?
A. Take action in court
B. Call the local police
C. Remove the fence
D. File for forcible detainer
334. An easement given to a person would most likely
be:
A. Prescription
B.
335. In the market approach of appraisal, the
appraiser would consider all of the following
except:
Original cost
Amenities
Past sales in the area
Current listings
336. The difference between debits and credits on a closing statement
is:
A. Buyer’s equity
B. Buyer's equity
C. Amount needed to close
D. Buyer's proceeds
337. If a loan is assumed, what happens to the ALTA policy?
Must buy by new policy
Policy is cancelled
Still in effect
Policy is optional
338. Who can sign a contract for a seller?
Listing broker
Selling, broker
Escrow company
Attorney-In-Fact
.
339. (B-3) When a salesperson intentionally misstates a material fact
to cause someone financial
harm, this is called:
A. Fraud
B. Misrepresentation
C. Due Diligence
D. Laches
340. Cash on cash return would involve which of the
following concepts?
Economic depreciation
Adjusted gross income
Leverage
Economic life
341. A survivorship interest is created in which of
the following?
Tenancy at sufferance
In severalty
Tenancy in common
Tenancy by entirety
342. A chronological summary of title is called:
Deed report
Abstract of title
ALTA policy
Title insurance report
343. Which of the following regulations requires the
lender to show the true interest rate?
RESPA
HUD.
RegZ
PMI
344. A loan is paid off but the lender never records
the lien release. The property would:
Be free and clear
Be subject to foreclosure
Have a cloud on title
Require sheriff action to remove the lien
345 A contract has been signed but title has
not yet passed. This is called:
A. Executed
B. Executory
C. Recorded
D. Estopped
346. A developer may not impose a deed restriction
on which of the following?
Property usage
Number of cars on site
Testifying at future zoning hearings
Type of landscaping
347. Which of the following would not be included
in a public report?
Names of developers
Legal description
Access to utilities
Market value
348. You write an offer on another broker’s listing.
What should you do?
Take the offer to the seller
Contact the listing broker
Wait a mandatory twelve hours, then present to seller
Have the buyer contact the seller to present offer
349. Standard title insurance policy would be for
the benefit of:
Grantee
Grantor
Beneficiary
Trustee
350. Which of the following would not be an operating
expense?
Property taxes
Property insurance
Vacancies and loss of credit
Daily maintenance costs
351. You own a large apartment building in an area
that is being re-zoned single family
residential. Which of the following is true regarding the apartment
building?
A. Apartment building must close
B. Apartment building may remain but not expand
C. No further rentals can take place
D. All future apartments must be one story
352. What charge would be paid at closing on a high
risk conventional loan?
MIP
Funding fee
Bring down fee
PMI
353. Which of the following would be least important
when appraising property?
Building code
Zoning
Highest and best use
Location of property
354. Capitalization rates would usually consider:
A. Gross income
B. Gross rent multiplier
C. Market comps
D. Net income
355. RESPA would not cover which of the following?
A. New loans
B. FHA and VA loans
C. Loan assumptions
D. Federally related loans
356. When your time has run out to assert a claim,
this is called:
Laches
Novation
Reliction
Subject to
357. When cap rate goes up, value goes:
A. Down
B. Up
C. Remains the same
D. Will be lowered dollar to dollar
358. If property is to be depreciated, it must
be:
A. Fee simple ownership
B. Unimproved
C. Improved
D. Profit making venture
359. Incurable depreciation would apply to:
A. Physical depreciation
B. Economic depreciation
C. Functional depreciation
D. Regression
360. When appraising land, the best approach would be:
A. Highest and best use
B. Income
C. Cost
D. Market
361. Which of the following is not a form of involuntary
alienation?
Sheriff sale
Erosion
Trustee sale
Dedication
362. Planning and zoning are government rights of:
A. Police power
B. Confiscation
C. Condemnation
D. Eminent domain
363. All of the following are specific liens except:
Property taxes
Income taxes
Deed of Trust
Attachment
364. Ad Valorem property taxes are based on which
of the following listed below?
Pro Rata Share
Assessed Value
Market Value
Benefit
365. An Estate at Will would be for:
Definite duration
Indefinite duration
Freehold duration
Life estate
366. A remainderman would most likely be concerned
with:
Property taxes
Property insurance
Property waste
Property boundaries
367. Which of the following is required for a valid
deed?
Signature of Grantee
Signature of Grantor
Recordation
Specific named price
368. A graduated payment loan would:
Increase in principal amount
Increase in interest rate
Have a level loan payment
Decrease in principal amount
369. An Agreement of Sale would be:
Executory unilateral
Executory bilateral
Unilateral executed
Unilateral executory
370. In the income approach of appraising, the most
important figure would be:
Gross income
Net income
Adjusted gross income
Depreciated amount
371. The difference between replacement cost and present
value is:
Used value
Market value
Regression
Depression
372. After gathering all appraisal data, the appraiser
would:
Establish a value
Reconcile and correlate
Average all three approaches
Establish Gross Rent Multiplier
.
373. Which of the following is true regarding a real
estate branch office?
Sign must say branch office
Broker must be on site
Manager of office must be a broker
All sales license must be displayed
374. When a title company pays a claim to the insured
due to an error made by the title
company, which of the following concepts would most likely apply?
A. Subordination
B. Subrogation
C. Alienation
D. Lis Pendens
375. A property has a first lien of $50,000,
there is a second lien of $12,000. The owner gives
a quit claim deed to the first lien holder. What is the status of the
second lien?
A. Eliminated
B. Second now in first position
C. Second will remain in second
D. Second must foreclose to protect their interest
376. A gives a life estate to B for the life of C.
B dies. Who has the estate?
A in reversion
C in remainder
B’s heirs
C’s heirs
377. A buyer sees a worn path across the property
he is interested in buying. The buyer
should be concerned about:
A. Easement in Gross
B. Easement by Prescription
C. Condemnation
D. Police Power
378. If a seller places an acceleration clause in
a Deed of Trust and the buyer defaults, which
of the following is true?
A. Seller must give the 90-Day Reinstatement Period
B. Seller may foreclose like a mortgage
C. Buyer will forfeit his interest upon default
D. Seller may evict the buyer upon default
379. A plat map shows eveiything except:
A. Lot and block
B. Lot size
C. Name of the subdivision
D. Orientation of structure