ARIZONA LIFE INSURANCE EXAM

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ARIZONA LIFE INSURANCE EXAM

QUESTIONS AND ANSWERS

Question 1: If an applicant for a sales license engages in a brokerage

transaction, the applicant:

• may be paid for the transaction, after he gets his license
• may face criminal charges resulting in fine and or jail
• is following standard operating procedures
• is ineligible for a license for 2 years

Correct Answer: may face criminal charges resulting in fine and or jail

Question 2: An individual is exempt from real estate licensure in Texas if the

individual is doing which of the following:

• running an apartment locator service for several different complexes
• listing real estate for sale, rent, exchange or trade
• being an on-site manager of an apartment complex
• procuring prospects for the rental of real estate

Correct Answer: being an on-site manager of an apartment complex

Question 3: If an unlicensed individual provides a referral that ends in a closing, how can you repay them?

• With a $50 gift card
• By sending them on a vacation for a weekend
• By paying their rent for a month
• By rebating a part of your commission to them

Correct Answer: With a $50 gift card

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Question 4: When a broker is acting for more than one party, the broker should

disclose:

• Confidential information in writing to the parties
• Any known material defects on the property
• The amount of any previous offers
• The financial assets of the buyer

Correct Answer: Any known material defects on the property

Question 5: According to the TREC residential resale contract form, if a

termination option fee is paid, day one of the option period is:

• When loan approval has been obtained
• When the title commitment is issued
• When the earnest money is deposited
• The day following the effective date of the contract

Correct Answer: The day following the effective date of the contract

Question 6: Your buyer-client insists on entering into a lease-purchase

agreement. You must:

• Direct the buyer to consult a mortgage broker to seek a no down payment

mortgage

• Draw up an agreement using the TREC-promulgated lease-purchase contract

form

• Recommend that the buyer seek the advice of an attorney
• Suggest that the buyer lease another property and save for a future down

payment

Correct Answer: Recommend that the buyer seek the advice of an attorney

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Question 7: If the buyer and seller agree to rely on an existing survey, the

survey and the affidavit T-47 must be provided:

• Within the negotiated number of days of the effective date of the contract
• At or before closing
• At the earliest convenience
• Within the negotiated number of days before closing

Correct Answer: Within the negotiated number of days of the effective date of

the contract

Question 8: If either party to the contract breaches the agreement and is in

default, can the injured party terminate the contract?

• Yes
• No
• Yes, if the other party agrees
• Only with permission from the lender

Correct Answer: Yes

Question 9: A license holder MUST use a TREC promulgated form except:

• The principal requires the use of another form
• The principal is an attorney
• The principal is paying cash
• There are no exceptions

Correct Answer: The principal requires the use of another form

Question 10: When must a property owner declare their primary residence as

their homestead to get homestead protection?

• At closing

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• Never
• After 1 year of occupancy
• After January 1 of the first year of full occupancy

Correct Answer: Never

Question 11: A DTPA claim cannot be brought against a license holder for:

• Making an express misrepresentation of material fact to induce a consumer to

buy

• Giving incorrect advice or opinions
• Failing to disclose a known defect
• Telling the seller to cover up a defect before listing the property

Correct Answer: Giving incorrect advice or opinions

Question 12: A broker entered into a representation agreement with a buyer on

the phone. The broker found a property for the buyer and was the procuring cause of the sale. The buyer has refused to pay the agreed commission. What can the broker do?

• Complain to TREC
• Complain to the National Association of REALTORS®
• Seek arbitration
• According to TRELA, there is no recourse for the broker

Correct Answer: According to TRELA, there is no recourse for the broker

Question 13: Which of the following is requested through the HOA Addenda?

• an HOA disclosure of property condition
• an itemized list of HOA charges from the previous year
• a background check