Arizona Real Estate License Real Estate Financing Concepts Questions and Answers

Question 1

In Arizona, a deed of trust is the most common instrument used to secure a loan on real property. Which of the following correctly identifies the parties to a deed of trust?

Accepted Answer

Trustor, Trustee, and Beneficiary

Answer

Mortgagor, Mortgagee, and Trustee

Answer

Grantor, Grantee, and Beneficiary

Answer

Lender, Borrower, and Title Company

Question 2

A homeowner in Arizona defaults on their loan, which is secured by a deed of trust. The lender initiates a non-judicial foreclosure. What is the minimum period of time that must pass between the recording of the 'Notice of Trustee's Sale' and the actual sale date?

Accepted Answer

90 days

Answer

30 days

Answer

60 days

Answer

120 days

Question 3

A borrower in Phoenix obtains a loan to purchase a single-family home on a half-acre lot and later defaults. The lender forecloses via a trustee's sale, and the sale price is less than the outstanding loan balance. Under Arizona's anti-deficiency statutes, which statement is true?

Accepted Answer

The lender cannot pursue a deficiency judgment against the borrower.

Answer

The lender can sue the borrower for the deficiency because the property is in a major metropolitan area.

Answer

The lender can only pursue a deficiency judgment if the loan was a refinance, not a purchase money loan.

Answer

The lender must wait one year before filing for a deficiency judgment.

Question 4

A loan agreement includes a clause that allows the lender to demand immediate payment of the entire outstanding loan balance if the borrower misses a certain number of payments or otherwise breaches the contract. What is this clause called?

Accepted Answer

Acceleration Clause

Answer

Subordination Clause

Answer

Defeasance Clause

Answer

Alienation Clause

Question 5

Regarding Arizona's usury laws for real estate loans between private parties, which of the following is most accurate?

Accepted Answer

Any interest rate may be agreed upon, as long as it is specified in a written contract.

Answer

The maximum legal interest rate is strictly capped at 10% per annum.

Answer

Usury laws do not apply to any loans secured by real property.

Answer

The maximum interest rate is determined by the federal prime rate plus 5%.

Question 6

An Arizona buyer is purchasing a property using an 'Agreement for Sale,' also known as a land contract. In this arrangement, when does the buyer typically receive legal title to the property?

Accepted Answer

Once they have paid 50% of the total purchase price.

Answer

Immediately upon signing the Agreement for Sale.

Answer

After making the final payment according to the contract terms.

Answer

As soon as the agreement is recorded with the county recorder.

In Arizona, a deed of trust is the most common instrument used to secure a loan on real property.Which of the following correctly identifies the parties to a deed of trust?

In Arizona, a deed of trust is the most common instrument used to secure a loan on real property.
Which of the following correctly identifies the parties to a deed of trust?