Free Arizona Real Estate Practice Exam

Q1.During a declared water shortage on the Colorado River, whose water supply is cut first under current federal guidelines?

• A.Arizona's CAP agricultural contractors
• B.California's municipal water agencies
• C.Nevada's Las Vegas Valley Water District
• D.Arizona's Tier 0 municipal water users

Q2.Under RESPA (Real Estate Settlement Procedures Act), which of the following actions by a real estate licensee would be prohibited?

• A.Recommending a specific lender to a client based on competitive rates
• B.Providing clients with a list of preferred service providers
• C.Attending closing meetings with clients
• D.Receiving a referral fee from a mortgage broker for directing clients to their services

Q3.Under the Fair Housing Act, which federal agency has primary enforcement authority for investigating housing discrimination complaints?

• A.Federal Trade Commission (FTC)
• B.Consumer Financial Protection Bureau (CFPB)
• C.Department of Housing and Urban Development (HUD)
• D.Environmental Protection Agency (EPA)

Q4.What is 'intersectionality' in fair housing?

• A.A traffic term for busy intersections near properties
• B.The concept that a person may belong to multiple protected classes simultaneously, and discrimination may target them based on the combination of those identities
• C.A legal defense for landlords
• D.A method of property valuation

Q5.In states that allow attorney review periods, what typically happens during this timeframe?

• A.Either party's attorney can disapprove the contract for any reason
• B.The attorneys must approve the property's title
• C.Only the buyer's attorney can review the contract
• D.The contract automatically becomes binding

Q6.The maximum civil penalty for a third or subsequent FHA violation within 7 years is approximately:

• A.$21,663
• B.$54,157
• C.$108,315
• D.$250,000

Q7.What is 'foreclosure rescue fraud'?

• A.A scam in which a fraudster promises to save a homeowner's property from foreclosure while actually stealing the title or equity
• B.An illegal practice where lenders accelerate foreclosure timelines
• C.A situation where a real estate agent double-represents both buyer and bank
• D.Arizona's legal program that delays foreclosure for qualifying homeowners

Q8.An agent has been exclusively representing a seller for four weeks. An unrepresented buyer submits an offer directly through the agent. The agent wants to assist both parties. What is the FIRST required step?

• A.Write up the offer and get both parties to sign simultaneously
• B.Obtain written informed consent from both the seller and the buyer before taking any advisory role toward the buyer
• C.Notify ADRE before proceeding with any dual agency
• D.Refer the buyer to another agent at the same brokerage

Q9.A property sold for $350,000 and generates annual net operating income of $28,000. What is the capitalization rate?

• A.6.5%
• B.8.0%
• C.7.2%
• D.8.5%

Q10.A tenant's lease expires on December 31st, but they continue to occupy the premises and the landlord accepts rent for January. What type of tenancy has been created?

• A.Tenancy for years
• B.Tenancy at will
• C.Tenancy by sufferance
• D.Periodic tenancy

Q11.The SPDS asks whether the property has had any pest infestations. The seller had termites treated four years ago. The seller should:

• A.Disclose the prior termite infestation and treatment on the SPDS
• B.Check No since four years have passed and the treatment worked
• C.Only disclose if there is current activity
• D.Mention it verbally to the listing agent but not in writing

Q12.What is the BINSR form in Arizona?

• A.The broker's insurance notification and seller report
• B.The Buyer's Inspection Notice and Seller's Response — the AAR form buyers use to communicate inspection objections and sellers use to respond
• C.The building inspection standards reference
• D.The broker's internal settlement review

Q13.What is the responsibility of a property manager regarding fair housing in the screening process?

• A.Screening is entirely at the manager's discretion
• B.Apply written, objective screening criteria consistently to every applicant and maintain records demonstrating equal treatment
• C.Screen applicants based on the property owner's stated preferences
• D.Reject all applicants with any criminal history without further review

Q14.What is the statute of limitations for filing a private fair housing lawsuit in federal court?

• A.1 year from the alleged violation
• B.2 years from the alleged violation
• C.5 years
• D.6 months

Q15.What is 'proration' at closing?

• A.The agent's commission calculation
• B.The process of fairly dividing ongoing costs (property taxes, HOA fees, rent) between buyer and seller based on the closing date
• C.The escrow company's fee
• D.The title company's calculation of title insurance premiums