Real Estate Quiz

72 Questions

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Real Quizzes & Trivia

Questions and Answers
  • 1. 
    The demand for real estate would be affected by which of the following?
    • A. 

      Available construction labor force

    • B. 

      Demographics

    • C. 

      Government policy

    • D. 

      Construction costs

  • 2. 
    The supply for real estate would be affected by which of the following?
    • A. 

      Government financial policies

    • B. 

      Wage levels

    • C. 

      Population

    • D. 

      Employment levels

  • 3. 
    Classes of real property include which of the following?
    • A. 

      Not for profit

    • B. 

      Renewal

    • C. 

      Tax exempt

    • D. 

      Agriculture

  • 4. 
    A home seeker has found a house that has the features desired by her but does not like the area where it is located because there are several large office buildings nearby.  The home seeker's concern about the property's location is best described as
    • A. 

      Permanence of investment

    • B. 

      Immobility

    • C. 

      Non homogeneity

    • D. 

      Area preference

  • 5. 
    IN the event that a licensee did not complete the 24 hours of continuing education credits and/or pay the renewal fee the license is considered
    • A. 

      Terminated

    • B. 

      Revoked

    • C. 

      Expired

    • D. 

      Cancelled

  • 6. 
    Land cannot be depreciated because
    • A. 

      It is infinite

    • B. 

      It does not wear out

    • C. 

      It is considered least valuable asset

    • D. 

      Modifications always improve the value

  • 7. 
    The four economic characteristics of real estate are
    • A. 

      Scarcity, modifications, permanence of investment & immobility

    • B. 

      Immobility, non-homogeneity, indestructibility & modification

    • C. 

      Scarcity, modifications, permanence of investment & area preference

    • D. 

      Immobility, non-homogeneity, scarcity and modification

  • 8. 
    While a real estate licensee is in the 1 year grace period, the license is considered
    • A. 

      Active

    • B. 

      Inactive

    • C. 

      Provisional

    • D. 

      Terminated

  • 9. 
    All are classes of real estate except
    • A. 

      Residential

    • B. 

      Commercial

    • C. 

      Special purpose

    • D. 

      Market segmentation

  • 10. 
    REALTOR is a registered trademark of 
    • A. 

      Residential specialists

    • B. 

      Arizona Association of REALTORS

    • C. 

      National Association of REALISTS

    • D. 

      National Association of REALTORS

  • 11. 
    The concept of a "bundle of rights" refers to 
    • A. 

      Legal descriptions

    • B. 

      Definition of property

    • C. 

      Escheat

    • D. 

      Sales contracts

  • 12. 
    A trade fixture is best described as
    • A. 

      A license

    • B. 

      Personal property

    • C. 

      An easement

    • D. 

      Real estate

  • 13. 
    Which of the following would most likely be considered personal property?
    • A. 

      Bathroom vanity

    • B. 

      Furnace

    • C. 

      Table lamp

    • D. 

      Awning

  • 14. 
    Which of the following would be considered an improvement to the real estate?
    • A. 

      Sidewalk

    • B. 

      Trade fixture

    • C. 

      Kitchen refrigerator

    • D. 

      Motor home parked in the driveway

  • 15. 
    Real property becomes personal property by 
    • A. 

      Attachment

    • B. 

      Situs

    • C. 

      Justification

    • D. 

      Severance

  • 16. 
    What best describes items installed on the property by the tenant and used in the tenant's business?
    • A. 

      Emblements

    • B. 

      Trade fixtures

    • C. 

      Easements

    • D. 

      Fixtures

  • 17. 
    Which of the following is NOT considered personal property?
    • A. 

      Trade fixtures

    • B. 

      Chattel property

    • C. 

      Fixtures

    • D. 

      A broker's automobile

  • 18. 
    Cultivated annual crops are considered
    • A. 

      Real property

    • B. 

      Trade fixtures

    • C. 

      Personal property

    • D. 

      Fixture

  • 19. 
    Personal property may be changed to real property by
    • A. 

      Severance

    • B. 

      Annexation

    • C. 

      Attachment

    • D. 

      Agreement of the parties

  • 20. 
    Another name for emblements is 
    • A. 

      Fruits of labor

    • B. 

      Fruits of industry

    • C. 

      Fruits of nature

    • D. 

      Fruits of the land

  • 21. 
    Which of the following would be considered community property?
    • A. 

      Property bought by either party before the marriage

    • B. 

      Property acquired by gift after the marriage

    • C. 

      Property acquired by inheritance after the marriage

    • D. 

      Property bought by one of the parties during the marriage

  • 22. 
    Bob and Bill bought an apartment building and took title to the property as joint tenants.  Bob died and left a will.  Bill now owns the apartment building
    • A. 

      In sevaralty

    • B. 

      As tenant in common with Bob's heirs

    • C. 

      As a joint tenant with Bob's heirs

    • D. 

      The building would have been sold upon Bob's death

  • 23. 
    John, Ted and Alice own property as joint tenants.  Alice sells her ownership interest to Sam.  What best describes the current ownership of the property?
    • A. 

      John and Ted remain joint tenants owning a two-thirds interest

    • B. 

      John, Ted and Sam are now joint tenants

    • C. 

      John Ted and Sam are tenants in common

    • D. 

      All hold the property in severalty

  • 24. 
    Under a trust arrangement, title to property is held for someone's benefit by the
    • A. 

      Trustor

    • B. 

      Trustee

    • C. 

      Beneficiary

    • D. 

      Grantor

  • 25. 
    What best describes ownership in a multi-unit building if a person owns his or her unit plus a percentage of the common parts of the building and grounds?
    • A. 

      Condominium

    • B. 

      Cooperative

    • C. 

      Timeshare

    • D. 

      Land trust

  • 26. 
    What type of ownership is held so that ownership can be passed without a probate?
    • A. 

      Joint tenancy

    • B. 

      Tenants in common

    • C. 

      Community property

    • D. 

      Severalty

  • 27. 
    What method of ownership is not legal in Arizona
    • A. 

      Joint tenancy WROS

    • B. 

      Severalty

    • C. 

      Tenancy by the entirety

    • D. 

      Tenants in common

  • 28. 
    A married couple purchases a home and takes title as community property.  Four years later, the husband dies. What is the status of th ownership of the property?
    • A. 

      The spouse owns half

    • B. 

      The spouse owns all of the property

    • C. 

      The State owns the husband's half

    • D. 

      His children own the husband's half

  • 29. 
    A non-profit organization, comprised of unit owners as members, owns the common areas in a 
    • A. 

      Condominium

    • B. 

      Cooperative

    • C. 

      Apartment

    • D. 

      Townhouse

  • 30. 
    What does the owner of a cooperative receive
    • A. 

      Deed

    • B. 

      Bill of sale

    • C. 

      Shares of stock

    • D. 

      Certificate of purchase

  • 31. 
    A husband and wife are buying a home together.  This is their second marriage and the wife has children from a prior marriage.  What method of taking title would be best if the wife wants her share of the property to go to her children upon her death?
    • A. 

      Community property

    • B. 

      Joint tenancy WROS

    • C. 

      Tenants in common

    • D. 

      Severalty

  • 32. 
    A married couple is looking to purchase a second home in Arizona as an investment.  The husband wishes to hold title in severalty.  What is required for this to happen?
    • A. 

      The wife must sign a disclaimer deed

    • B. 

      The wife must sign a defeasance deed

    • C. 

      The wife must sign a deed of reconveyance

    • D. 

      The wife must sign a quic claim deed

  • 33. 
    Which type of ownership requires the four unities be met
    • A. 

      Tenants in common

    • B. 

      Severalty

    • C. 

      Joint tenants with right of survivor

    • D. 

      Community property

  • 34. 
    In Arizona the "state presumption" is unless stated otherwise, unmarried couples will take title as
    • A. 

      Joint tenants

    • B. 

      Community property

    • C. 

      Tenants in common

    • D. 

      Severalty

  • 35. 
    Penny formed a joint tenancy with Samuel.  Penny is married to Ralph.  Penny dies then 1 week later Samuel dies, who owns the property
    • A. 

      Ralph

    • B. 

      Penny's heirs

    • C. 

      Samuel's heirs

    • D. 

      Ralph's heirs

  • 36. 
    Peggy and Paul own a parcel of land.  Peggy owns 65% interest and Pat owns the remainder.  How do they hold title?
    • A. 

      Joint tenancy

    • B. 

      Tenants in common

    • C. 

      Community property with right of survivorship

    • D. 

      Tenancy by the entirety

  • 37. 
    Michelle and Mike are husband and wife.  Michelle inherits a home from her late uncle John.  When Michelle dies who owns the home she inherited from John?
    • A. 

      Michelle's heirs

    • B. 

      Mike

    • C. 

      John's wife

    • D. 

      Determined in probate

  • 38. 
    The disadvantage of being a general partner in a partnership is
    • A. 

      Limited liability

    • B. 

      Limited management opportunities

    • C. 

      Unlimited liability

    • D. 

      Partnerships have tax advantages

  • 39. 
    A testamentary trust is created by will
    • A. 

      During the owners lifetime

    • B. 

      After the property owners death

    • C. 

      For the benefit of the trustee

    • D. 

      By a deed of trust

  • 40. 
    According to Arizona state law, a corporation is a legal entity that never dies.  Property owned by a corporation is owned in 
    • A. 

      Tenancy by survivorship

    • B. 

      Joint tenants

    • C. 

      Tenancy in severalty

    • D. 

      Partnership

  • 41. 
    Private property is condemned for the public good through the right of
    • A. 

      Eminent domain

    • B. 

      Police powers

    • C. 

      Escheat

    • D. 

      Zoning laws

  • 42. 
    A company owns a movie theater located on property that has just been rezoned for residential use.  The theater is allowed to continue operating, however, if it is destroyed by fire, the company...
    • A. 

      May rebuild if it obtains the consent of the residents in the surrounding neighborhood

    • B. 

      May not build any new structures on the property

    • C. 

      May not rebuild the movie theater

    • D. 

      May rebuild as long as the new structure is the same size as the old one

  • 43. 
    John owns a body shop that has been in operation for many years.  The local government rezoned the property to multi-unit residential.  The body shop now
    • A. 

      Must stop operating immediately

    • B. 

      Is in violation of th zoning laws

    • C. 

      Is a variance to the zoning law

    • D. 

      Is a nonconforming use

  • 44. 
    The state wanted a homeowner's property to build a new highway.  If the owner refuses to reach an agreement with the state for the property the state may acquire it through
    • A. 

      Confiscation

    • B. 

      Eminent domain

    • C. 

      Escheat

    • D. 

      Adverse posession

  • 45. 
    If a property owner dies and leaves no will or heirs, the property may pass to the government through its powers of 
    • A. 

      Eminent domain

    • B. 

      Adverse possession

    • C. 

      Escheat

    • D. 

      Foreclosure

  • 46. 
    Under the power of eminent domain, the actual taking of title is thru the process of
    • A. 

      Escheat

    • B. 

      SARA

    • C. 

      Judicial Partition

    • D. 

      Condemnation

  • 47. 
    Building codes are enacted to 
    • A. 

      Protect construction crews

    • B. 

      Protect the public health and safety

    • C. 

      Set maximum standards

    • D. 

      Protect home equity

  • 48. 
    Police powers passes its authority down to local governments through
    • A. 

      Enabling legislation

    • B. 

      Non-conforming use

    • C. 

      Zoning appeals

    • D. 

      Adverse possession

  • 49. 
    The four government powers are 
    • A. 

      Possession, Eminent Domain, Taxation, Escheat

    • B. 

      Police Power, Escheat, Possession, Taxation

    • C. 

      Taxation, Escheat, Eminent Domain, Police Power

    • D. 

      Escheat, Encumbrance, Taxation, Power

  • 50. 
    Landscaped parks, playgrounds, and hiking trails are used to screen residential areas from non residential area called
    • A. 

      Mixed use developments

    • B. 

      Common areas

    • C. 

      Buffer zones

    • D. 

      NAOS

  • 51. 
    A variance is a
    • A. 

      Temporary exception to a zoning ordinance

    • B. 

      Permanent exception to a zoning ordinance

    • C. 

      Zoning classification

    • D. 

      Used to enforce the certificate of occupancy

  • 52. 
    Special assessments are levied according to 
    • A. 

      Value received

    • B. 

      Benefit received

    • C. 

      Value of the property

    • D. 

      Length of ownership

  • 53. 
    Taxes in Arizona are levied
    • A. 

      Once a year on January 1

    • B. 

      Twice a year on October 1 and March 1

    • C. 

      Paid in advance

    • D. 

      Are a general lien on the property

  • 54. 
    In Arizona taxes are expressed as taxes per $100 of assessed value.  A tax rate of 6.3% would be expressed as
    • A. 

      $63.00 per $100 of assessed value

    • B. 

      $6.30 per $100 of assessed value

    • C. 

      $630.00 per $100 of assessed value

    • D. 

      None of the above

  • 55. 
    What is the tax assessment ratio for vacant land?
    • A. 

      9%

    • B. 

      10%

    • C. 

      14%

    • D. 

      16%

  • 56. 
    Real estate taxes are in which lien position
    • A. 

      First after mortgages

    • B. 

      First after mechanics lien

    • C. 

      First after judgements

    • D. 

      First before mortgages

  • 57. 
    Jim and sally just finished construction on their new home.  What do they need before they can move into their new home?
    • A. 

      a lien release

    • B. 

      Certificate of completion

    • C. 

      Certificate of compliance

    • D. 

      Certificate of occupancy

  • 58. 
    A master plan is a guide to 
    • A. 

      Planning for change rather than reacting to future proposals

    • B. 

      Regulatory decisions that addresses change

    • C. 

      Short term planning usually for less than 5 years

    • D. 

      Planning for incorporating commercial uses in the future

  • 59. 
    The tax rate is determined by
    • A. 

      Market value x assessment ratio=tax rate

    • B. 

      Assessed value x tax amount = tax rate

    • C. 

      Budget / assessed value of all real estate=tax rate

    • D. 

      None of the above

  • 60. 
    What is the statutory redemption period on a property tax sale?
    • A. 

      6 months

    • B. 

      90 days

    • C. 

      3 years

    • D. 

      120 days

  • 61. 
    Before a real estate license can be suspended or revoked, the salesperson or broker is usually entitled to 
    • A. 

      A hearing before the licensing authority

    • B. 

      A probation period

    • C. 

      Representation by the state's attorneys in court

    • D. 

      A hearing in the local federal court

  • 62. 
    Which of the following best describes the primary purpose for states to pass real estate licensing laws?
    • A. 

      To protect the public from unqualified or dishonest licensees

    • B. 

      To raise revenue for the state through licensing fees

    • C. 

      To ensure an adequate number of real estate salespeople are available

    • D. 

      To attract new people to the real estate profession

  • 63. 
    A licensed salesperson in a real estate transaction represents
    • A. 

      Only the broker for whom he or she works

    • B. 

      Both the buyer and seller's broker

    • C. 

      The seller in the transaction

    • D. 

      The buyer in the transaction

  • 64. 
    When an employing broker's real estate license is suspended or revoked, salespeople working for the broker
    • A. 

      Must obtain their own broker's license

    • B. 

      May continue their selling activities

    • C. 

      Lose their licensees

    • D. 

      Must stop listing and selling property

  • 65. 
    The purpose of the Recovery Fund is
    • A. 

      To pay licensee for losses due to client breach

    • B. 

      To pay clients due to actions of licensees

    • C. 

      Extra money set aside for real estate advertising

    • D. 

      Paid by lenders to assist clients

  • 66. 
    Which of the following people would be required to have a real estate license?
    • A. 

      A developer selling more than 6 parcels

    • B. 

      An attorney in fact selling property for a principal

    • C. 

      A trustee selling under a friendly foreclosure

    • D. 

      An attorney in fact taking a listing

  • 67. 
    Real estate laws (statutes) are made by
    • A. 

      The commissioner

    • B. 

      The legislature

    • C. 

      The designated broker

    • D. 

      The department of real estate

  • 68. 
    An associate broker
    • A. 

      Has management duties along with the designated broker

    • B. 

      Holds a broker's license but work for another broker

    • C. 

      Are the employing broker

    • D. 

      Are not independent contractors, they are employees

  • 69. 
    If your license expires, the department of real estate will
    • A. 

      Terminate a license that has been expired for more than one year

    • B. 

      Automatically reinstated it for 30 days

    • C. 

      Require the license be mailed to the commissioner within 3 days

    • D. 

      Allow agents to work with only existing clients

  • 70. 
    a designated broker is ultimately responsible for the actions of
    • A. 

      Every salesperson in the company

    • B. 

      Every employee in the main office

    • C. 

      All licensees and the company employees

    • D. 

      Only main office activities, not branch office activities

  • 71. 
    The minimum amount in the recovery fund must be at least
    • A. 

      $700,000 as of January 1 each year

    • B. 

      $600,000 as of April 15 each year

    • C. 

      $700,000 as of July 1 each year

    • D. 

      $600,000 as of June 30 each year

  • 72. 
    Anytime there is a hearing before a licensing authority
    • A. 

      The broker may not be represented by legal council

    • B. 

      The broker must represent him/herself

    • C. 

      The broker is entitled to be represented by legal council

    • D. 

      The cost for legal council is included in annual board dues