Arizona Real Estate Broker Exam — All Questions

What does a quitclaim deed convey in Arizona?

• a.The interest described, warranted against the grantor's own acts
• b.Whatever interest the grantor holds, with no covenants of title✓
• c.A fee simple estate warranted against all claimants
• d.Marketable title as of the date of the conveyance

A quitclaim deed passes whatever interest the grantor happens to own at the time and makes no promises about it. A general warranty deed warrants title against all claimants, and a special warranty deed warrants only against defects arising from the grantor's own acts. A.R.S. 33-435 implies a limited set of covenants where the words 'grant' or 'convey' are used, unless the conveyance expressly restrains them.

What does A.R.S. 11-1133 require to be appended to a deed at the time of recording?

• a.An affidavit of legal value signed by the parties or an agent✓
• b.A sworn statement of the property's replacement cost
• c.A title insurance commitment naming the county recorder
• d.A certificate of value issued by the county assessor

A.R.S. 11-1133(A) requires each deed evidencing a transfer of title, and any contract relating to the sale of real property, to have appended at the time of recording an affidavit of the seller and buyer, or the agent of either or both, in a form approved by the department of revenue. The affidavit certifies matters including the parties' names and addresses, the legal description, the date of sale, the total consideration and type of financing, and the assessor's parcel number.

How long must adverse possession continue before it bars an Arizona owner's action under A.R.S. 12-526?

• a.Fifteen years
• b.Five years
• c.Ten years✓
• d.Twenty years

A.R.S. 12-526(A) requires an owner with a cause of action to recover land from a person in peaceable and adverse possession, cultivating, using and enjoying it, to bring the action 'within ten years after the cause of action accrues, and not afterward.' Subsection B caps the possession at one hundred sixty acres, or the acreage actually enclosed if less, unless it is held under a duly recorded written memorandum of title fixing the boundaries. Shorter periods apply under A.R.S. 12-523 and 12-524 in narrower circumstances.

What is the effect of failing to record an instrument affecting Arizona real property under A.R.S. 33-411?

• a.It transfers no interest at all until it has been recorded
• b.It may be recorded only with a court order after one year
• c.It gives no notice of its contents to a later purchaser for value without notice✓
• d.It is void as between the grantor and the grantee themselves

A.R.S. 33-411(A) provides that no instrument affecting real property 'gives notice of its contents to subsequent purchasers or encumbrance holders for valuable consideration without notice, unless recorded.' A.R.S. 33-412(B) confirms that unrecorded instruments remain valid between the parties, their heirs, and later purchasers who take with notice or without valuable consideration. Recording protects priority; it does not create the conveyance.

What does an owner's title insurance policy protect against?

• a.Loss in the property's market value after purchase
• b.Any defect arising after the policy date is issued
• c.Title defects that existed on or before the policy date✓
• d.Physical defects discovered in the building's structure

An owner's title policy is a contract of indemnity against loss from covered defects, liens and encumbrances that existed as of the policy date, together with the cost of defending covered claims. The premium is paid once. It does not reach defects created later by the owner, it says nothing about the condition of the improvements, and it does not insure market value.