Arizona 6-Hour Contract Writing Course Practice Test

These questions are part of the practice quiz. Start practicing

• What is Erica responsible for after presenting an offer that was accepted by her seller client?
• What must a broker obtain before proceeding with a limited representation?
• In Arizona, what is the minimum age for an individual to legally sign a contract?
• In what type of financing arrangement does the buyer of a property take over payments on the seller's mortgage?
• What is a key consideration for a seller when their property is unoccupied?
• Remi offered to purchase Vera's house for $350,000. He paid the earnest money but couldn't get enough for the down payment by the closing date. Where will the earnest money go now?
• How should real estate agents handle multiple clients interested in the same property?
• Who is required to sign a listing agreement?
• In the event of a breach of contract, what might be a consequence specified in the purchase agreement?
• After signing a listing agreement, what should Jonathan do next before publishing the listing on MLS?
• Many contract errors are primarily due to what common issue?
• Which type of contract allows a home buyer to back out without penalty if they cannot secure financing?
• In Remi's offer to pay for a parcel of land, what does the $10,000 represent?
• Who is responsible for handling items like prorating taxes and fees at closing?
• What key aspect should be included in a purchase contract for a property?
• What does receiving pre-approval for a mortgage loan indicate?
• What should be kept regarding rejected offers in real estate transactions?
• Which of the following is NOT an example of full consideration?
• What is the purpose of the earnest money in a real estate transaction?
• What is one way in which a buyer can protect against financial loss due to title defects?
• Which warranty does NOT survive closing?
• When should a buyer use a buyer contingency addendum?
• What is required for contracts to be enforceable in Arizona?
• If a real estate agent is representing multiple clients wanting similar properties, what should they do?
• In which situation should a licensee encourage a seller to seek legal advice?
• What role should Felicity clarify in her buyer-broker agreements?
• In a lease agreement, if the lessee fails to pay rent, which clause might be invoked?
• Which of the following is considered a contractual error?
• What is the consequence for Sam and Lisa if they provided truthful information during pre-qualification?
• Is it legal for Janelle to write into her buyer-broker agreements that the buyers are obligated to buy a house within the contract term?
• Within how many days must alternative wastewater systems be inspected according to the Arizona Department of Environmental Quality?
• What must be done for a contract to be legally binding under Arizona regulations?
• The Real Estate Agency Disclosure and Election form is provided to _____.
• Which statement is true regarding licensee compensation in Arizona?
• What type of property interest does a lease grant?
• What is the cure notice period according to the Arizona purchase contract?
• Who is primarily responsible for seeking information about a homeowners association?
• All of the following subsections are in the Property section of the AAR purchase contract, EXCEPT which one?
• What's the primary purpose of the AAR purchase contract cover sheet?
• Which statement is NOT a requirement for listing agreements under Arizona law?
• What is a significant factor about the commission owed to Charlize by Randy?
• What is a primary component of a purchase contract?
• What may be included in broker obligations within listing agreements?
• What is the default length of the inspection period in Arizona?
• Which of the following is a typical action that would be excluded from ADR?
• In a dispute where an arbitrator ruled in Jack's favor, who is responsible for the attorney fees?
• Which scenario necessitates the use of alternative dispute resolution?
• A(n) ______ is essentially an agreement or promise between parties.
• Which of the following is a common misconception about pre-qualification?
• Which document allows buyers to respond to the results of a home inspection?
• When a contract is said to be subject to a contingency, what does it imply?
• What type of contingency allows a buyer to terminate the contract if the property doesn't appraise at the agreed-upon price?
• What does the title company provide to a Texas buyer along with a title commitment?
• What is likely to happen to Fiona, who signed a purchase contract but later decided to walk away from it?
• In a real estate transaction, what can influence the terms of the contract between the buyer and seller?
• Which statement about the Seller Property Disclosure Statement (SPDS) is accurate?
• What information regarding agency relationships might be in a listing agreement?
• Which individual is legally competent to sign a contract?
• Which federal agency is tasked with determining floodplain areas?
• What action can help reduce risks related to purchase contracts?
• The buyer-broker agreement is categorized as what type of document?
• Don is the buyer and Sandra is the seller. On the contract, they are considered the ______.
• Who is required to sign the Arizona Real Estate Agency Disclosure and Election form?
• What form should Danielle use to request items to be addressed by the seller after a home inspection?
• Which statement must be included on the Seller Property Disclosure Statement?
• What is typically necessary to submit a backup contract?
• In real estate transactions, what role does earnest money typically play?
• Which statement is correct regarding inspections and property square footage?
• Which party's agreement is critical for a real estate contract to be enforceable?
• If Roxie buys Alabaster's property, will she inherit the HOA fees associated with it?
• The ADRE may NOT discipline licensees for which of the following actions?
• What should a buyer do if they notice a problem during the final walk-through?
• Which of the following statements is true regarding purchase agreements in Arizona?
• According to the Arizona Association of REALTORS®, the Sellers Property Disclosure Statement should be delivered within how many days after the contract acceptance?
• What must a seller do if their property was built before 1978 and they are unsure if it contains lead-based paint?
• What must a listing agreement include regarding the relationship of the listing broker?
• What is the fate of the commission if Randy sells his home independently after engaging an attorney?
• Which best describes a lease agreement?
• With an exclusive agency agreement, who is the sole agent for the seller?
• The Domestic Water Well Addendum gives the seller ______ days from contract acceptance to deliver the SPDS, including details about the well's use, to the buyer.
• What is the importance of using pre-printed forms in transactions?
• Under Arizona law, what must be written into the contract when a sale requires financing?
• Which of the following is NOT an acceptable form of delivery for offer acceptance?
• Which of the following is NOT a function of the Arizona purchase contract?
• What is true regarding the seller and utilities in an Arizona real estate transaction?
• When must lead-based paint disclosures be given to potential buyers?
• Which email addresses may be used for delivering transaction communications in Arizona?
• What information in the listing agreement relates to the obligations of the parties?
• What does pre-qualification not guarantee in a real estate transaction?
• In a transaction, who is the offeree when Chloe submits an offer to buy Tristan's property?
• In which subsection of a purchase contract would Lisa find details about what items are included with the property?
• How many days does a seller have to provide the Seller's Property Disclosure Statement after receiving the purchase contract?
• Determining who can enter into a legally binding contract involves understanding what concept?
• What is the primary purpose of a lease agreement?
• What does the AAR purchase contract cover sheet encourage buyers to hire?
• What form did Duncan's lender complete to demonstrate his ability to obtain a loan?
• What is NOT typically a characteristic of a real estate contract?
• Sellers are required to disclose what type of information?
• Which addendum is required when a buyer needs to sell their home before purchasing a new one?
• What does pre-qualification imply for Sam and Lisa in relation to their loan application?
• What is the term for when both parties agree on the essential details of a contract?
• Which form does the buyer use to indicate issues that the buyer wants the seller to correct prior to closing?
• What happens if a loan contingency is in effect in a sales contract and the buyer cannot obtain financing?
• Which of the following is true about the Arizona purchase contract?
• Which of the following represents a valid legal contract?
• What is the primary role of an escrow agent in a real estate transaction?
• Why is it important to have a written real estate contract?
• What is the primary purpose of the features list prepared by a licensee?
• At what stage of the selling process is the purchase contract created and signed?
• Federal law requires sellers of homes built before 1978 to provide the lead-based paint disclosure. When must it be provided?
• When should the AAR purchase contract cover sheet be provided to buyers?
• If a property has deficiencies that need to be remedied, who is responsible for addressing these issues?
• Which of the following is true about prices and earnest money according to the AAR purchase contract?
• What should a seller include in the property disclosure statement?
• What does Arizona's statute of frauds require for contracts to be enforceable?
• Which practice is recommended to minimize risks in Arizona real estate contracts?
• What does the SPDS stand for in real estate transactions?
• What document should a buyer include with their purchase offer?
• Where can Arizona licensees find sample boilerplate transaction contracts?
• How soon should buyers read the title commitment after receiving it, according to the AAR purchase contract?
• What is an essential element of a valid real estate contract?
• When is a property owner no longer liable for maintenance of their property?
• What is the next step for Sheldon after his client accepted the offer?
• What is the purpose of the loan contingency in the purchase contract?
• What is the standard practice for an agent concerning the signing of contracts?
• If Tanya is not complying with her purchase contract, what does the cure period notice give her three days to do?
• Which type of loan typically requires a minimal down payment and mortgage insurance for the duration of the loan?
• Which document is crucial for a buyer during the home purchasing process?
• How should a licensee respond if asked about deaths on a property but does not have permission to disclose information?
• Which party is typically responsible for providing a clear title to the buyer in a sale?
• When dealing with an escrow company, who generally ensures that all financial obligations are met before property transfer?
• Arizona buyer Natalie is curious as to whether the seller has filed an insurance claim for the property in the past. Which of the following is true?
• What is an essential component of a valid listing agreement?
• What should a real estate agent do if several clients want to buy the same property?
• In addition to providing a disclosure of any lead-based paint hazards in homes built before 1978, what must a seller's agent provide to prospective buyers?
• What practice can significantly mitigate risks for licensees drafting contracts in Arizona?
• Which of the following types of agency relationships is NOT described in the Arizona Real Estate Agency Disclosure and Election form?
• What is the first step Percy should take to start searching for his dream house?
• Which type of financing typically requires a 20% down payment to avoid private mortgage insurance?
• When is a buyer's earnest money typically returned?
• After receiving the BINSR from a potential buyer, how many days does Harriet have to decide whether to correct the disapproved items?
• Licensees are required to disclose all of the following EXCEPT which piece of information?
• When should Beatrice provide the Real Estate Agency Disclosure and Election form to her clients?
• What document is typically signed to finalize the sale of a property?
• If Lilith has signed a purchase contract with Kirsten, what can she do if she receives another offer from Jorge a week before closing?
• In which scenario is an affidavit of disclosure required?
• Which document may be attached to a purchase contract?
• What describes an enforceable contract?
• According to the AAR purchase contract, what is the threshold for repair costs that sellers must agree to cover prior to closing?
• After a transaction is completed, how long must a broker retain documents related to the sale?
• What is a common consequence of not complying with a purchase contract as mentioned in the context of a cure period?
• Which of the following is a common reason for a lender to require mortgage insurance?
• What final step must George complete as part of the residential sales process after closing a transaction?
• What document is typically signed to indicate that both the buyer and seller are in agreement regarding the sale?
• In most situations, who is responsible for the costs of obtaining financing?
• For how long must transaction files related to real estate be retained?
• What can increase legal risks when working with real estate contracts?
• What should a real estate agent do when a buyer wants a special clause added to a purchase contract?
• Which statement is true concerning a buyer's obligation regarding a homeowners association?
• Which factor might disqualify someone from entering a legal contract?
• What is the AAR's position on modifying their sample contract forms?
• Which type of financing involves a seller helping to finance by taking responsibility for a portion of the buyer’s loan?
• What must buyers do if they find lead-based paint hazards during an inspection?
• In a real estate context, what is an "exclusive right-to-sell" agreement?
• What defines a stigmatized property?
• Did Tammy, the listing agent, do anything wrong when she provided buyers with a lead-based paint disclosure and an EPA brochure for a home built in 1958?
• What allows buyers to choose whether to continue with a purchase when a property isn't valued at the purchase price?
• What document allows sellers to disclose material information about the condition of the property they're selling?
• What should Jerome do with the transaction records after closing a deal?
• Which of the following issues is addressed by an Arizona statute aimed at protecting children?
• What must Everly do to form a valid contract after receiving an offer for her property?
• When there are two versions of an original transactional document, the versions are called what?
• What type of risk does a seller face during the transaction process?
• What legal consideration must be taken into account for residential lease agreements in Arizona?
• What type of contract is contingent upon the cancellation of a prior contract?
• If Steven's transaction fell through due to insufficient funds for financing, what is likely to happen?
• What action can Simone take after Ben terminates their contract for a higher offer?
• What is often required from buyers before applying for a mortgage?
• What type of representation agreement involves a broker representing both the seller and the buyer?
• What is Arizona broker Frasier permitted to do without breaching fidelity to his buyer client?
• What is the highest percentage buyers must withhold for federal income tax purposes when a foreign person sells U.S. real estate according to FIRPTA?
• A promise made in exchange for a reward is often termed a(n)?
• What is the purpose of a pre-qualification letter?
• How many days does a buyer have to provide notice of disapproved items after receiving the SPDS form?
• The ____ is also referred to as an "employment agreement."
• A week after their contract fell through, buyer Julie sued seller Omar for specific performance. What does this mean?
• According to lead-based paint disclosure regulations, which statement is true?
• What must be true for Georgia and Stan, who have been pre-approved for a $250,000 mortgage?
• What risk might an agent refer to when discussing insurance responsibilities with their client?
• Where should a listing agent look to find buyer financing information as part of a bid?
• In which situation is a buyer typically required to submit a loan application?
• What disclosure requirement is true for sellers of stigmatized properties?