Arizona Real Estate License FREE Arizona Real Estate License Disclosure and Fair Housing Questions and Answers 2 — Questions and Answers
Question 1: Under Arizona law, which of the following must a seller disclose to a prospective buyer?
- The race or religion of current neighbors
- Known material defects affecting the property's value (Correct answer)
- The buyer's ability to obtain financing
- Previous listing prices of the property
Correct answer: Known material defects affecting the property's value
Arizona's Seller Property Disclosure Statement (SPDS) requires sellers to disclose all known material defects that could affect the property's value or desirability.
Question 2: Which federal law prohibits discrimination in housing based on familial status?
- Civil Rights Act of 1866
- Equal Credit Opportunity Act
- Fair Housing Act of 1968 as amended in 1988 (Correct answer)
- Americans with Disabilities Act
Correct answer: Fair Housing Act of 1968 as amended in 1988
The 1988 amendment to the Fair Housing Act added familial status and disability as protected classes.
Question 3: An Arizona real estate agent learns that a property was the site of a natural death three years ago. What is the agent's disclosure obligation?
- The agent must disclose this fact to all prospective buyers
- The agent must disclose only if the buyer asks directly
- The agent has no obligation to disclose this information (Correct answer)
- The agent must disclose only if the death was within one year
Correct answer: The agent has no obligation to disclose this information
Under ARS 32-2156, a death on the property from natural causes, suicide, or homicide is not a material fact requiring disclosure in Arizona.
Question 4: A landlord refuses to allow a tenant with a physical disability to install a grab bar in the bathroom at the tenant's expense. This action violates which principle?
- The duty to mitigate damages
- The implied warranty of habitability
- The requirement to permit reasonable modifications under fair housing law (Correct answer)
- The covenant of quiet enjoyment
Correct answer: The requirement to permit reasonable modifications under fair housing law
The Fair Housing Act requires landlords to allow tenants with disabilities to make reasonable modifications to their unit at their own expense.
Question 5: In Arizona, the Affidavit of Disclosure is required for which type of real estate transaction?
- All residential transactions statewide
- Commercial property sales over $100,000
- Sales of unsubdivided land in unincorporated areas of a county (Correct answer)
- Transactions involving new construction only
Correct answer: Sales of unsubdivided land in unincorporated areas of a county
Arizona law requires an Affidavit of Disclosure for the sale of five or fewer parcels of unsubdivided land in unincorporated areas.
Question 6: Which of the following actions by a real estate agent would constitute illegal steering under fair housing law?
- Showing a buyer only properties within their stated budget
- Directing minority buyers away from predominantly white neighborhoods (Correct answer)
- Refusing to show a property that does not meet the buyer's size requirements
- Recommending a neighborhood based on school district quality
Correct answer: Directing minority buyers away from predominantly white neighborhoods
Steering involves directing buyers toward or away from certain neighborhoods based on race, color, religion, or other protected characteristics.
Arizona Real Estate License FREE Arizona Real Estate License Disclosure and Fair Housing Questions and Answers 2
Under Arizona law, which of the following must a seller disclose to a prospective buyer?