Arizona Real Estate Broker Exam — All Questions

How soon after recording the notice of trustee's sale may an Arizona trustee's sale be held?

• a.No sooner than the one hundred twenty-first day after recording
• b.No sooner than the thirty-first day after recording
• c.No sooner than the sixty-first day after recording
• d.No sooner than the ninety-first day after recording✓

A.R.S. 33-807(D) provides that 'the power of sale of trust property conferred upon the trustee shall not be exercised before the ninety-first day after the date of the recording of the notice of the sale,' and that the sale shall not be set for a Saturday or legal holiday. A.R.S. 33-808(C)(1) repeats that the date in the notice 'shall be no sooner than the ninety-first day after the date that the notice of sale was recorded.'

Until when may a defaulting Arizona trustor reinstate under A.R.S. 33-813?

• a.Until the trustee's deed is recorded after the sale
• b.Until noon on the day the sale is scheduled to occur
• c.Until 5:00 p.m. on the last business day before it✓
• d.Until 5:00 p.m. on the thirtieth day before the sale

A.R.S. 33-813(A) allows the trustor, a successor in interest, a subordinate lienholder or a beneficiary under a subordinate trust deed to reinstate 'before 5:00 p.m. mountain standard time on the last day other than a Saturday or legal holiday before the date of sale.' Reinstatement requires paying the entire amount then due, curing other defaults, and paying the enforcement costs listed in subsection B, including trustee's fees capped at $600 or one half of one percent of the unpaid principal, whichever is greater.

May an Arizona deed of trust be foreclosed judicially instead of by trustee's sale?

• a.Yes, at the beneficiary's option, as a mortgage would be✓
• b.Yes, but only after a trustee's sale has failed to draw a bid
• c.No, a deed of trust may only be foreclosed by trustee's sale
• d.Yes, but only if the trust deed expressly permits it

A.R.S. 33-807(A) provides that 'at the option of the beneficiary, a trust deed may be foreclosed in the manner provided by law for the foreclosure of mortgages on real property,' in which event chapter 6 of Title 33 governs. Subsection B lets the trustee or beneficiary file a foreclosure action any time before the property has been sold under the power of sale, and bars a power-of-sale sale while that action is pending unless it is dismissed.

When does Arizona's anti-deficiency rule in A.R.S. 33-814(G) bar a lender from pursuing the balance after a trustee's sale?

• a.Two and one-half acres or less, used as one or two dwellings✓
• b.Any property whose sale price exceeded the loan balance
• c.Property of five acres or less used as a single-family dwelling
• d.Any owner-occupied property regardless of its size or acreage

A.R.S. 33-814(G) provides that where 'trust property of two and one-half acres or less which is limited to and utilized for either a single one-family or a single two-family dwelling is sold pursuant to the trustee's power of sale, no action may be maintained to recover any difference between the amount obtained by sale and the amount of the indebtedness.' Both the acreage cap and the actual dwelling use must be satisfied, and subsection H removes the protection for certain builder-owned and never-completed dwellings on deeds of trust originated after December 31, 2014. Where a deficiency action is available, subsection A requires it within ninety days after the sale.

How does A.R.S. 32-2130(A) define a short sale for Arizona continuing education purposes?

• a.The seller accepts an offer below the property's appraised value
• b.The lender agrees to reduce the interest rate rather than foreclose
• c.The property sells at a trustee's sale for less than the credit bid
• d.The price cannot cover the loan plus the costs of sale, and the seller cannot pay✓

A.R.S. 32-2130(A) defines short sales as 'real estate transactions in which the sales price is insufficient to pay the loan encumbering the property in addition to the costs of sale and the seller is unable to pay the difference.' Both halves matter: a shortfall against the loan and costs, and a seller who cannot make it up. A price below appraised value is not a short sale if the loan is still paid in full at closing.