Free Arizona Real Estate Practice Exam

Q1.What is the 'interactive process' in fair housing disability accommodation?

• A.The process of advertising available units
• B.The back-and-forth dialogue between a tenant and landlord to determine whether a reasonable accommodation can be provided and in what form
• C.The home inspection process
• D.The lease signing process

Q2.RESPA (Real Estate Settlement Procedures Act) primarily protects consumers by requiring disclosure of what information?

• A.Property inspection results
• B.Property tax assessments
• C.Settlement costs and loan servicing details
• D.Homeowners insurance requirements

Q3.A senior community that qualifies for the 55+ exemption — can it still discriminate based on race?

• A.Yes, because it has the familial status exemption
• B.No — the 55+ exemption only exempts the community from the familial status prohibition, not from any other fair housing requirement
• C.Yes, since all exemptions apply together
• D.Only if the community was built before 1968

Q4.The Truth-in-Lending Act (TILA) requires lenders to disclose which key piece of information to borrowers?

• A.Property appraisal value
• B.Homeowners insurance premium
• C.Property tax amount
• D.Annual Percentage Rate (APR)

Q5.A buyer's financing contingency specifies a 'conventional loan at no more than 7% interest' and the buyer can only get a 7.5% rate. What is the buyer's position under the contract?

• A.The buyer must proceed — interest rate variations are not grounds for cancellation
• B.The buyer can only cancel if the rate exceeds 8%
• C.The seller must reduce the purchase price to compensate for the higher rate
• D.The buyer may cancel and recover earnest money because they cannot obtain financing meeting the specified terms

Q6.What is the purpose of fair housing training for real estate professionals?

• A.To comply with a bureaucratic requirement with no practical value
• B.To ensure agents understand their legal obligations, can identify discriminatory practices, and provide equal professional service to all clients
• C.To teach agents how to avoid getting caught
• D.To satisfy the seller's request for agent training

Q7.Under the Truth-in-Lending Act (TILA), the Annual Percentage Rate (APR) must include which of the following costs?

• A.Interest rate and loan origination fees
• B.Property taxes and homeowners insurance only
• C.Appraisal fees and title insurance
• D.Recording fees and transfer taxes

Q8.In Arizona, does a buyer's agent representing a buyer in a new construction purchase need to register with the builder on the first visit?

• A.No, it is not important when they register
• B.Yes, most builders require buyer's agent registration on the first visit to protect the agent's commission
• C.Only if the buyer asks the agent to register
• D.Only for luxury home builders

Q9.In Arizona, can water rights be sold separately from the land they are appurtenant to?

• A.Yes, in some cases water rights can be severed from the land and transferred independently, subject to ADWR approval
• B.No, Arizona law prohibits the sale of water rights separate from the land in all cases
• C.Only for agricultural water rights worth more than $500,000
• D.Only with the written consent of the neighboring five property owners

Q10.Which of the following items is typically disclosed on the Arizona SPDS?

• A.Known roof leaks, unpermitted additions, HOA litigation, and prior insurance claims
• B.Only defects visible from the street
• C.Only defects that would require a permit to repair
• D.Only items that the seller discovered in the last two years

Q11.What is the typical earnest money amount in Arizona residential transactions?

• A.Exactly 3% of the purchase price, required by law
• B.1% of the purchase price is common, though negotiable and not fixed by law
• C.$500 flat regardless of price
• D.10% of the purchase price

Q12.Radon is classified by the EPA as a:

• A.Class A carcinogen and the second-leading cause of lung cancer in the U.S.
• B.Class B carcinogen requiring mandatory remediation above 2 pCi/L
• C.Nuisance pollutant with no established health threshold
• D.Regulated hazardous waste requiring state agency notification

Q13.The Arizona Department of Water Resources' Water Rights Registry is a resource agents can use to:

• A.Search for existing surface water appropriations and groundwater permits associated with a property
• B.Calculate a property's water bill based on meter readings
• C.Find information about city sewer connection fees
• D.Check if a well has been inspected by an ADEQ environmental officer

Q14.A seller wants to list at $500,000 but the listing agent's CMA supports $450,000. What should the listing agent do?

• A.List at $500,000 without comment — the seller has the right to set any price
• B.Refuse to list unless the seller accepts the CMA price
• C.Present the CMA data in writing, explain the appraisal risk, and list at $500,000 after that conversation
• D.Quietly reduce the list price after a few weeks without telling the seller

Q15.Under HUD's 2022 guidance on online advertising, which targeting practice is MOST likely to constitute illegal discrimination?

• A.Targeting users who follow real estate accounts
• B.Targeting users by income level above a stated threshold
• C.Targeting users who searched for "homes for sale"
• D.Targeting users by ZIP code that closely mirrors racial composition (close-proxy discrimination), or by "lookalike audience" trained on a discriminatory seed list