Free Arizona Real Estate Practice Exam (60 Questions)

Correct answer: It is prohibited discrimination based on familial status.

Arizona prohibits denying a covered dwelling because of familial status. Applying an unlawful no-children policy consistently does not make it permissible.

Why the other choices are incorrect:

• It is permitted if the same policy is applied to every family with children. Uniform enforcement of a discriminatory policy does not cure the violation.
• It is permitted if the manager offers a unit in a different complex. Offering a different property does not justify denying this dwelling on a protected basis.
• It is permitted whenever the landlord prefers a quiet building. A preference for quiet does not authorize a blanket exclusion of families with children.

Sources:

• Arizona Revised Statutes 41-1491.14 — 41-1491.14(A)

Correct answer: Keep the former client’s confidential information confidential.

Confidentiality survives termination. The facts supply neither authorization nor a legal disclosure requirement.

Why the other choices are incorrect:

• Disclose the strategy if the prospective buyer promises not to repeat it. A recipient’s promise is not the former client’s authorization.
• Disclose the strategy because the listing has ended. Termination does not itself release confidential information.
• Disclose the strategy once a new broker takes the listing. A new broker does not end the former agent’s confidentiality duty.

Sources:

• ADRE Arizona State Specific Salesperson Pre-Licensing Curriculum, December 2025 — Printed p.34, Fiduciary Obligations after Termination of Agency; printed p.13, Confidentiality

Correct answer: The district levy can be a separate property-tax obligation that should be verified and included in the buyer’s cost review.

A.R.S. § 48-723 authorizes district ad valorem taxation and budgeting for infrastructure, services, and debt obligations. County tax collection rules apply to these district taxes. The licensee should help verify the actual levy rather than assume the ordinary county-tax budget already accounts for it.

Why the other choices are incorrect:

• The district tax applies only to undeveloped land, so an existing home is exempt. The statute does not create an existing-home exemption; the levy reaches property within its applicable scope.
• The district tax automatically ends whenever the home is sold. A sale does not itself terminate the district levy.
• The district tax is a voluntary contribution the buyer may stop paying. A lawfully levied district property tax is not voluntary.

Sources:

• A.R.S. § 48-723 — District taxes; annual financial estimate and budget — § 48-723(A), (C)
• Arizona Administrative Code, Title 4, Chapter 28 (Supp. 25-4) — R4-28-1101(I)

Correct answer: The past-due amounts, required costs and fees, and other defaults, without principal that would not yet be due absent default.

Statutory reinstatement requires payment of the amounts then due excluding principal that would not yet be due without the default, curing other defaults and paying the applicable statutory costs and fees. This restores the contract and deed of trust when the statutory conditions are met; it does not forgive arrears.

Why the other choices are incorrect:

• Only the most recently missed monthly installment, regardless of earlier unpaid amounts. All applicable delinquent amounts and other statutory conditions must be addressed.
• Only the trustee’s fees, because reinstatement automatically forgives the payment default. Paying fees alone does not cure the unpaid contractual obligations.
• The entire accelerated principal balance in every case, even if it otherwise would not yet be due. Reinstatement distinguishes arrears from principal accelerated solely because of the default.

Sources:

• A.R.S. § 33-813 — A.R.S. § 33-813(A)–(B)

Correct answer: Accurately communicate the conflicting information and take reasonable steps to help the buyer confirm the service requirements and cost with the utility.

R4-28-1101(I) requires reasonable care in obtaining material information, accurate communication, and reasonable assistance in checking its accuracy. Electric-service feasibility and cost are material to the stated intended use. The salesperson should help resolve the discrepancy through the utility rather than choose an unsupported estimate.

Why the other choices are incorrect:

• State that the real estate license allows the salesperson to guarantee the final utility cost. A real estate license does not make an unsupported utility-cost guarantee accurate.
• Repeat the seller’s estimate because it was supplied first. Earlier information is not necessarily accurate, particularly after contradictory information is received.
• Provide only the lower estimate so the buyer can decide whether to investigate. Withholding the conflicting material information prevents an informed decision.

Sources:

• Arizona Administrative Code, Title 4, Chapter 28 (Supp. 25-4) — R4-28-1101(I)

Correct answer: The seller obtains the qualified inspection within six months before transfer and provides the report beforehand; the buyer then files the Notice of Transfer and fee within fifteen calendar days after transfer.

R18-9-A316(B) and (D) require the transferor to arrange the qualified inspection within six months before transfer and provide the report and held system documents beforehand. Subsection (E) places the Notice of Transfer and fee obligation on the transferee within fifteen calendar days afterward. This long-used system does not fit the unused-system inspection exception.

Why the other choices are incorrect:

• The seller obtains the qualified inspection within six months before transfer and provides the report beforehand; the buyer then files the Notice of Transfer and fee within ninety calendar days after transfer. The buyer’s statutory filing deadline is fifteen calendar days after transfer, not ninety.
• The seller obtains the qualified inspection within six months before transfer and provides the report beforehand; the seller then files the Notice of Transfer and fee within fifteen calendar days after transfer. The transferee (buyer), rather than the transferor (seller), bears the statutory Notice of Transfer and fee obligation.
• The buyer obtains the qualified inspection within six months after transfer and gives the seller the report; the buyer then files the Notice of Transfer and fee within fifteen calendar days after inspection. The qualified inspection and report delivery are pre-transfer responsibilities of the seller, not a post-closing buyer inspection. The notice deadline runs from transfer.

Sources:

• Arizona Administrative Code, Title 18, Chapter 9 (Supp. 25-2) — R18-9-A316(B), (D), (E), (F), printed pp. 50–51
• ADEQ — Inspection and Notice of Transfer — “Septic Inspections” and “Notice of Transfer”; revised August 5, 2026

Correct answer: Disclose the information about possible inability to perform in writing to the other parties.

R4-28-1101(B)(2) requires written disclosure to the other parties of information that a buyer is or may be unable to perform. The licensee already possesses that information; possible replacement funds do not remove the disclosure duty.

Why the other choices are incorrect:

• Ask the seller’s agent to investigate without identifying the known problem. An indirect suggestion to investigate does not communicate the known material information in writing.
• Disclose the problem only to the buyer’s lender because financial information is always confidential. The required disclosure to other parties is not displaced by the buyer’s request for confidentiality.
• Wait until the buyer has conclusively defaulted before disclosing the problem. The rule expressly covers possible inability to perform, before an actual default.

Sources:

• Arizona Administrative Code, Title 4, Chapter 28 (Supp. 25-4) — R4-28-1101(B), (B)(2)

Correct answer: The structural defect must be disclosed in writing; the natural death itself is covered by the statutory nondisclosure protection.

A.R.S. § 32-2156(A)(1) protects nondisclosure of a natural death at the property. That protection does not remove the separate duty under R4-28-1101(B)(3) to disclose a known material physical defect in writing.

Why the other choices are incorrect:

• Both facts must be disclosed as physical defects. A natural death itself is covered by the stigma statute and is not a physical defect.
• Only the natural death must be disclosed because it occurred inside the home. This reverses the applicable rules: the known structural defect must be disclosed.
• Neither fact needs disclosure because both relate to the property’s past. An unrepaired structural defect is a current material property condition.

Sources:

• A.R.S. § 32-2156 — Real estate sales and leases; disclosure — § 32-2156(A)(1)
• Arizona Administrative Code, Title 4, Chapter 28 (Supp. 25-4) — R4-28-1101(B)(3)

Correct answer: It is timely because the written cancellation is effective when sent within the cancellation period.

The purchaser may rescind without cause by sending or delivering written notice by midnight of the tenth calendar day following execution. Section 32-2197.03(B)(3) makes the notice effective on the date sent. The eighth-day notice is timely despite later receipt.

Why the other choices are incorrect:

• It is late because the seller received it after the tenth day. The statute uses the sending date, not the receipt date, for this notice.
• It is ineffective unless the developer approves it. The statutory right does not depend on developer approval.
• It is effective only if the purchaser identifies a defect in the timeshare. Rescission during this period does not require cause.

Sources:

• A.R.S. § 32-2197.03 — Timeshare purchase agreements and rescission — § 32-2197.03(B), (B)(2)–(3)

Correct answer: A real estate employment agreement is not required to represent a party, so its absence alone does not eliminate agency duties.

Arizona distinguishes representation from the compensation agreement. The statute expressly allows representation without a real estate employment agreement; whether representation exists depends on the relationship’s facts.

Why the other choices are incorrect:

• Representation is impossible without an enforceable commission agreement. Section 32-2151.02(D) expressly rejects that prerequisite.
• The seller’s payment of compensation conclusively determines whom the salesperson represents. Who pays does not conclusively establish whom the licensee represents.
• Agency begins only after the broker actually receives compensation. Payment is not what initiates every agency relationship.

Sources:

• Arizona Revised Statutes 32-2151.02 — 32-2151.02(D)–(E)

Correct answer: Any permissible brokerage compensation must be handled through the employing broker.

A salesperson in these circumstances accepts compensation for licensed services from the employing broker. A seller’s direct negotiating bonus does not qualify for the separate licensed-employer exception.

Why the other choices are incorrect:

• The salesperson may accept it directly after escrow closes. Waiting until closing does not change who may pay the salesperson.
• The salesperson may accept it directly if the seller signs a receipt. A receipt does not make the seller an authorized compensation source.
• The salesperson may accept it directly if it is described as a gift for negotiating. Calling compensation for licensed services a gift does not remove the restriction.

Sources:

• Arizona Revised Statutes 32-2155 — 32-2155(A)(1)–(2)

Correct answer: The applicant must be at least 18 before receiving the license.

Arizona requires an applicant to be at least 18 before receiving any license covered by this chapter. Completing coursework does not remove that requirement.

Why the other choices are incorrect:

• The employing broker may waive the requirement. An employing broker cannot waive the statutory minimum age.
• The commissioner may issue the license with parental consent. The statute does not provide a parental-consent exception.
• Completing the education satisfies the age requirement. Education and minimum age are separate qualifications.

Sources:

• Arizona Revised Statutes 32-2124 — 32-2124(D)

Correct answer: These clerical and bookkeeping duties fit the administrative-support exemption.

Arizona exempts qualifying unlicensed employees who perform clerical, bookkeeping, accounting, and other support duties without performing activities that require licensure. Supervision does not expand the exemption to negotiations.

Why the other choices are incorrect:

• The employee must obtain a broker license before handling bookkeeping. The stated support duties do not require a broker license.
• Any access to transaction records requires a salesperson license. The exemption expressly permits clerical and bookkeeping work.
• The employee may also negotiate offers because a broker supervises the work. The exemption is conditioned on avoiding other acts requiring a license.

Sources:

• Arizona Revised Statutes 32-2121 — 32-2121(A)(9)

Correct answer: A documented, actual out-of-pocket loss directly arising from the transaction.

The fund covers qualifying actual, direct out-of-pocket losses. It expressly excludes speculative profits, punitive damages, and postjudgment interest; eligibility still depends on the remaining statutory requirements.

Why the other choices are incorrect:

• Interest accruing on the judgment after it was entered. Postjudgment interest is excluded.
• Punitive damages awarded to punish the licensee. Punitive damages are excluded.
• The profit the buyer expected to earn from a future resale. Speculation and lost profits are excluded.

Sources:

• Arizona Revised Statutes 32-2186 — 32-2186(A), (G)(1), (G)(8)–(10)

Correct answer: By the parties’ express agreement.

The parties explicitly agreed to representation, creating express agency.

Why the other choices are incorrect:

• Automatically because the seller may fund compensation. The compensation source does not create this relationship.
• Automatically because the broker holds a license. Licensure alone does not appoint an agent.
• By implication solely from attending an open house. The facts describe explicit agreement, not merely conduct.

Sources:

• ADRE Arizona State Specific Salesperson Pre-Licensing Curriculum, December 2025 — Module 4.2, printed p.14; agency references, printed p.33
• Urias v. PCS Health Systems, Inc., Arizona Court of Appeals, 1 CA-CV 03-0717 — Paragraphs 37–38

Correct answer: The trustee’s-deed conveyance is without a statutory right of redemption.

The statute provides that the conveyance by trustee’s deed is absolute without a right of redemption. Do not confuse a completed nonjudicial trustee’s sale with judicial-foreclosure rules or a trustor’s opportunity to reinstate before the sale.

Why the other choices are incorrect:

• The former owner may redeem until the purchaser resells the property. The purchaser’s later resale does not set a redemption deadline under this provision.
• The former owner has six months to redeem after every trustee’s sale. A six-month judicial-foreclosure concept cannot be assumed to apply to this completed trustee’s sale.
• The former owner has thirty days to redeem if the home was owner-occupied. The statute does not create that owner-occupancy redemption period.

Sources:

• A.R.S. § 33-811 — A.R.S. § 33-811(E)

Correct answer: Before the buyer signs any offer to purchase.

A.R.S. § 32-2183(A) requires the initial buyer to receive the public report before signing any offer to purchase, with a receipt taken. Making a report available online does not substitute for this delivery requirement.

Why the other choices are incorrect:

• Only if the buyer requests it before signing. The subdivider’s duty does not depend on a buyer request.
• At the final walkthrough before closing. The statutory trigger is the offer, not the walkthrough or closing.
• Within ten days after the buyer signs the offer. Delivery after signing is too late.

Sources:

• A.R.S. § 32-2183 — Subdivision public reports — § 32-2183(A), final sentence

Correct answer: First disclose her lack of expertise in writing, after which the client employs her.

R4-28-1101(H) addresses work outside a licensee’s field of competence. Without competent assistance, the licensee must first disclose the lack of expertise in writing and the client must subsequently employ the licensee. The rule also retains its professional standards requirement.

Why the other choices are incorrect:

• Tell the client orally about her inexperience after the listing is signed. The disclosure must be written and precede the client’s subsequent employment of the licensee.
• Rely on the fact that an active salesperson license establishes competence in every property type. Licensure alone does not establish competence in every specialty.
• Ask the client to agree that no professional standards will apply. The rule does not permit the parties to eliminate professional standards.

Sources:

• Arizona Administrative Code, Title 4, Chapter 28 (Supp. 25-4) — R4-28-1101(H)

Correct answer: No; the stated property and trustee’s-sale facts qualify for the statutory protection.

The statute bars recovery of that deficiency following a trustee’s sale of qualifying property of 2½ acres or less used for one single-family or one two-family dwelling. The facts include actual residential use and exclude the stated post-2014 construction-related exceptions; protection should not be generalized to all properties or all foreclosure methods.

Why the other choices are incorrect:

• Yes, whenever the borrower was more than ninety days delinquent. The length of delinquency is not the qualifying property test in subsection G.
• No, but only if the borrower buys the property back after the sale. This protection does not require the borrower to repurchase the property.
• Yes, whenever the sale proceeds are less than the outstanding debt. A shortfall alone does not override the stated anti-deficiency protection.

Sources:

• A.R.S. § 33-814 — A.R.S. § 33-814(G)–(I)

Correct answer: Parcel A is dominant and Parcel B is servient under an appurtenant easement.

An appurtenant easement benefits the dominant parcel and burdens the servient parcel. Here Parcel A receives access and Parcel B bears the access burden. The right to use the driveway does not, by itself, transfer fee ownership of its land.

Why the other choices are incorrect:

• Parcel A owns the driveway land in fee simple merely because of the easement. An easement grants the specified use right rather than automatically conveying fee ownership of the burdened land.
• Parcel B is dominant because the driveway physically lies on it. The burdened parcel is servient even though the driveway is physically located there.
• The right is an easement in gross because two parcels are involved. An appurtenant easement is attached to the benefited land; an easement in gross is not attached to land owned by the holder.

Sources:

• Arizona Supreme Court: State v. Foothills Reserve Master Owners Association, amended opinion — January 28, 2025, ¶¶ 37–39, printed pages 14–15

Correct answer: Within three business days after receiving the funds.

The escrow agent must provide the prescribed notice no later than three business days after receiving the escrow money. The notice explains the depositor’s right and how to establish an interest-bearing account; it is not conditional on the depositor first making a request.

Why the other choices are incorrect:

• Only after the buyer asks for an interest-bearing account. The notice must be provided without waiting for a depositor’s request.
• Within ten calendar days after the inspection period ends. The inspection period does not determine this statutory deadline.
• By the date the deed is recorded. The statute measures the deadline from receipt of escrow funds, not deed recording.

Sources:

• A.R.S. § 6-834 — A.R.S. § 6-834(D)

Correct answer: Express written consent from every party to the agreement.

An employing broker may assign a real estate employment agreement only with the express written consent of all parties at the time of assignment. Notice alone, oral permission or approval obtained after closing does not meet that requirement.

Why the other choices are incorrect:

• The buyer’s oral consent witnessed by the receiving broker. The statute requires written, rather than merely witnessed oral, consent.
• Written approval from the receiving broker alone. Consent of the receiving broker does not replace consent of all existing parties.
• Consent from the buyer after the assigned transaction closes. Consent must be obtained at assignment, not deferred until closing.

Sources:

• A.R.S. § 32-2151.02 — A.R.S. § 32-2151.02(B)

Correct answer: Written disclosure to the other parties of the licensee’s present or prospective interest in the transaction.

R4-28-1101(E) applies to direct and indirect participation. An ownership interest in the purchasing LLC is a financial interest in the transaction, and the other parties must receive written disclosure before a binding agreement.

Why the other choices are incorrect:

• Written disclosure to the licensee’s designated broker only. Informing the designated broker alone does not satisfy disclosure to the other parties.
• Disclosure on the closing statement after the purchase agreement becomes binding. Closing disclosure comes too late; the rule sets the deadline before a binding agreement.
• Oral disclosure to the listing agent only, because the LLC will hold title. Using an entity does not remove the rule, and oral notice to one agent is insufficient.

Sources:

• Arizona Administrative Code, Title 4, Chapter 28 (Supp. 25-4) — R4-28-1101(E), (E)(4)

Correct answer: Fourteen days, excluding Saturdays, Sundays, and legal holidays, after all three conditions have occurred.

A.R.S. § 33-1321(D) starts the deadline after termination, delivery of possession, and tenant demand. The landlord then has fourteen days excluding Saturdays, Sundays, and legal holidays to provide the itemization and any amount due.

Why the other choices are incorrect:

• Thirty calendar days after the landlord finds a replacement tenant. Reletting the unit does not control this deadline.
• Fourteen calendar days after the landlord completes repairs. The statute uses excluded days and does not start the period when repairs finish.
• The next regular monthly rent due date after the tenant moves out. The former rent due date does not replace the statutory deadline.

Sources:

• A.R.S. § 33-1321 — Security deposits — § 33-1321(D)
• A.R.S. § 33-1310 — General definitions — § 33-1310(3)

Correct answer: At least two days’ notice of intent to enter, with entry at a reasonable time.

A.R.S. § 33-1343 permits access to exhibit a dwelling to prospective tenants but ordinarily requires at least two days’ notice and entry only at reasonable times. The facts do not present an emergency, impracticability, or maintenance-request exception.

Why the other choices are incorrect:

• No notice, because showing the dwelling is a permitted purpose for access. A permitted purpose does not eliminate the notice requirement.
• One day’s notice and entry at any hour stated in the notice. One day is insufficient, and the time of entry must be reasonable.
• Same-day notice and entry whenever the prospective tenants are available. Routine showings do not create a same-day notice exception.

Sources:

• A.R.S. § 33-1343 — Access — § 33-1343(A)–(D)

Correct answer: Complete it in the licensed role without a separate document-drafting charge.

Article 26 permits a real estate licensee acting for a party in a real estate transaction to draft or complete instruments incident to that transaction without charging for that drafting. It does not turn a real estate license into general authority to practice law.

Why the other choices are incorrect:

• Complete it only after the buyer separately hires the salesperson as an attorney. Article 26 provides the specified incidental drafting authority to real estate licensees acting in that capacity.
• Prepare unrelated legal instruments for the public under the real estate license. The authority is tied to the real estate transaction in which the licensee is acting for a party.
• Charge a legal-document fee in addition to the brokerage compensation. The constitutional authority is to draft incident instruments without charge for drafting.

Sources:

• Arizona Constitution, Article 26, Section 1 — Article 26, § 1

Correct answer: The qualifying exemption exists by operation of law without a written claim or recording.

A qualifying Arizona homestead exemption arises by operation of law. No initial written claim or recording is required. The special designation procedure for multiple potentially eligible properties is not presented here.

Why the other choices are incorrect:

• The homeowner must first obtain a court order creating the exemption. The statute does not require a court order to create the qualifying exemption.
• The exemption exists only if the homeowner’s lender signs a waiver. Lender consent is not the condition that creates the exemption.
• The exemption first arises when a real estate licensee files a declaration. A licensee’s filing is not required.

Sources:

• Arizona Revised Statutes 33-1102 — 33-1102(A)

Correct answer: Tenancy in common.

A grant of Arizona real property to two or more persons generally creates estates in common unless a statutory exception or effective contrary form of ownership applies. These facts exclude the relevant spousal and trust exceptions and contain no express survivorship grant.

Why the other choices are incorrect:

• Joint tenancy with right of survivorship. Joint tenancy with survivorship is not the statutory default in these facts.
• Community property with right of survivorship. Unrelated unmarried co-owners do not acquire community property with survivorship merely by sharing a deed.
• An estate by the entirety. The statute does not make an estate by the entirety the default form for these grantees.

Sources:

• A.R.S. § 33-431 — A.R.S. § 33-431(A)–(C)

Correct answer: The Act applies to rental dwelling units, so this purely commercial lease requires review under the applicable commercial rules and lease terms.

A.R.S. § 33-1304 applies the Act to rental dwelling units. Section 33-1310(4) defines a dwelling unit by its residential use. A storefront used solely for retail is outside that scope; the identity of the tenant does not turn it into a dwelling.

Why the other choices are incorrect:

• The Act applies whenever an individual rather than a corporation signs the lease. Whether the signer is an individual does not establish residential use.
• The Act applies because every leased structure is a dwelling unit. The statutory definition requires use as a home, residence, or sleeping place for a household.
• The Act applies unless the commercial landlord records an exemption. A recorded exemption is not required to make a purely commercial storefront nonresidential.

Sources:

• A.R.S. § 33-1304 — Applicability of chapter — § 33-1304
• A.R.S. § 33-1310 — General definitions — § 33-1310(4)

Correct answer: An offer to issue a policy on the stated terms and exceptions.

Arizona defines a preliminary report or commitment as an offer to issue title insurance subject to its stated exceptions. It is not an abstract of title or an issued policy, and an exception should not be treated as an insured risk merely because it appears in the report.

Why the other choices are incorrect:

• An abstract certifying the complete legal history of the property. Arizona expressly distinguishes a preliminary report from an abstract of title.
• A policy that already insures every matter listed in the report. Listing an exception does not mean the insurer has insured that matter.
• A guarantee that no person can assert any interest in the property. The report is not an unconditional guarantee of the absence of competing interests.

Sources:

• A.R.S. § 20-1562 — A.R.S. § 20-1562(5)

Correct answer: Debit the seller $1,200 and credit the buyer $1,200.

The daily amount is $3,650 ÷ 365 = $10. The seller owes 120 × $10 = $1,200 for the period allocated by the contract. Because the buyer will pay the unpaid bill, the seller is debited and the buyer credited for that amount.

Why the other choices are incorrect:

• Debit the buyer $1,200 and credit the seller $1,200. This reverses the adjustment and would charge the buyer for the seller’s allocated period.
• Debit the seller $2,450 and credit the buyer $2,450. $2,450 is the remaining 245-day share, not the seller’s 120-day share.
• Debit the buyer $3,650 and credit the seller $3,650. The adjustment transfers the seller’s allocated share, not the full bill.

Sources:

• ADRE salesperson curriculum, December 2025 — Module 8.2.5, printed page 26; arithmetic uses the contract facts stated in the question

Correct answer: Continue the transaction without interference while preserving the right to resolve the compensation dispute separately.

R4-28-1101(D) prohibits allowing a dispute with another licensee to jeopardize, delay, or interfere with a client’s transaction. It also expressly preserves the licensee’s right to maintain an action to resolve the dispute without forcing a compensation concession.

Why the other choices are incorrect:

• Require the clients to postpone closing until the brokers agree. A compensation controversy is not a permissible reason to delay the client’s closing.
• Abandon the compensation claim because disputed compensation cannot be pursued. The rule does not require surrendering a valid compensation claim.
• Withhold the document until the compensation dispute is resolved. Withholding a needed document would interfere with the client’s transaction.

Sources:

• Arizona Administrative Code, Title 4, Chapter 28 (Supp. 25-4) — R4-28-1101(D)

Correct answer: Display the employing broker’s licensed legal or DBA name clearly and prominently without requiring scrolling.

The employing broker must be clearly and prominently identified. Online advertising must satisfy the rule on the advertisement without scrolling.

Why the other choices are incorrect:

• Remove the broker’s name and add a statement that the salesperson is independent. Independent status does not eliminate broker identification.
• Replace the broker’s name with the salesperson’s license number. A salesperson’s license number does not substitute for broker identification.
• Keep the layout if the broker’s name appears somewhere on the same website. A name elsewhere on a website does not satisfy this requirement.

Sources:

• Arizona Administrative Code, Title 4, Chapter 28 — R4-28-502(E), (J)

Correct answer: Refuse recording until the required completed affidavit is appended.

For a nonexempt transfer, the required affidavit must accompany the instrument at recording. The recorder must refuse recording without a completed affidavit unless the instrument bears an applicable exemption notation.

Why the other choices are incorrect:

• Record the deed if the buyer has purchased an owner’s title policy. A title insurance policy does not replace the statutory affidavit.
• Record the deed if the purchase price appears elsewhere in the escrow file. Information elsewhere in an escrow file is not the required appended affidavit.
• Record the deed and ask the broker for the affidavit after closing. The statutory requirement applies at recording, not only afterward.

Sources:

• A.R.S. § 11-1133 — A.R.S. § 11-1133(A), (C)–(D)

Correct answer: Clearly in writing, before the person participates in the offer.

Premium-offer details must be disclosed clearly in writing before participation.

Why the other choices are incorrect:

• Orally, when the participant tries to redeem the voucher. Disclosure at redemption is too late and must be written.
• In writing, only if a participant requests details. A request is not required.
• In writing, after the participant signs a purchase contract. Post-contract disclosure comes too late.

Sources:

• Arizona Administrative Code, Title 4, Chapter 28 — R4-28-503(B)

Correct answer: Both spouses must join in the disposition of this community real property.

Arizona requires joinder of both spouses for a transaction disposing of an interest in community real property. The stated facts supply no authority for one spouse to execute the transaction for the other.

Why the other choices are incorrect:

• The second spouse needs to join only if the buyer requests title insurance. The joinder requirement does not depend on whether title insurance is obtained.
• A sale needs only the signature of the spouse who negotiated the price. Negotiating the price does not give one spouse unilateral authority over this disposition.
• The second spouse needs to join only if the home is subject to a mortgage. The rule applies to disposition of community real property whether or not it is mortgaged.

Sources:

• A.R.S. § 25-214 — A.R.S. § 25-214(B)–(C)(1)

Correct answer: A lease longer than one year generally requires a writing signed by the party against whom enforcement is sought.

Arizona’s statute of frauds covers leases for longer than one year. On these facts, the two-year agreement lacks the required signed writing or memorandum; no performance-based exception is presented.

Why the other choices are incorrect:

• Only leases lasting more than five years require a signed writing. The statutory threshold is longer than one year, not five years.
• Every oral lease is automatically a valid two-year lease if rent is stated. Agreeing on rent does not dispense with the statute of frauds.
• A broker’s oral recollection substitutes for the required signed writing. Oral testimony from a broker does not satisfy the signed-writing requirement.

Sources:

• Arizona Revised Statutes 44-101, introductory paragraph and — 44-101, introductory paragraph and (6)

Correct answer: It ends under the mutual cancellation.

Broker and client may mutually terminate their agency. After the stated cancellation, the broker lacks continuing authority to negotiate as the seller’s agent.

Why the other choices are incorrect:

• It continues until another broker lists the property. A replacement broker is not necessary for mutual termination.
• It ends only when the property is sold. A sale is not necessary for mutual termination.
• It continues until the broker recovers all marketing costs. Marketing costs do not extend the cancelled authority.

Sources:

• ADRE Arizona State Specific Salesperson Pre-Licensing Curriculum, December 2025 — Module 4.4, printed p.14; Termination of Agency Relationship, printed p.34

Correct answer: Submit a change of well ownership/information to ADWR after transfer, with the required ownership documentation.

ADWR directs that its well information be updated when ownership of the parcel containing the well changes. Its guidance calls for the change request after transfer with the deed documentation. Shared use by a neighboring parcel alone does not require transferring that well’s registry entry to the neighboring owner.

Why the other choices are incorrect:

• Ask ADRE to add the well to the salesperson’s license record. ADWR, rather than the real estate licensing agency, maintains the well registry.
• Transfer the well’s registry entry to every neighboring parcel that receives its water. ADWR ties this ownership update to the parcel on which the well is physically located, not every parcel it serves.
• Wait until the well stops operating before notifying any agency. The ownership change triggers the update; failure of the well is not required.

Sources:

• ADWR — FAQ from Real Estate Agents and Title Agents — FAQs “How do I update ownership,” “When does a well need to be transferred,” and “The well is not located on my buyer’s property”

Correct answer: A private well alone does not establish an ADWR supply determination; verify the water source and the applicable supply information.

The notice in A.R.S. § 33-422(F), affidavit item 10, warns that ADWR may not have made a water-supply determination for property served by a well or by a water provider. The licensee should help verify relevant supply facts rather than infer an assurance from the existence of a well.

Why the other choices are incorrect:

• A private well establishes sufficient supply for residential use; a separate supply investigation is needed only when water is hauled. Properties served by wells or providers may also require investigation of material supply questions.
• A completed disclosure affidavit establishes an ADWR supply determination; verify only that the seller has signed the water-source section. The affidavit contains disclosures and warnings; it does not itself create a water-supply determination.
• A registered private well establishes an ADWR supply determination; verify only that the registry identifies the parcel’s current owner. Registration of a well is not the same as an assured-water-supply determination.

Sources:

• A.R.S. § 33-422 — Land divisions; recording; disclosure affidavit — § 33-422(F), affidavit item 10 and notice to buyer
• Arizona Administrative Code, Title 4, Chapter 28 (Supp. 25-4) — R4-28-1101(I)

Correct answer: The agent owes fiduciary duties to the buyer and must also deal fairly with the seller.

Client loyalty and fair dealing with other parties coexist. Lombardo v. Albu rejects the premise that having no fiduciary relationship means owing no duties.

Why the other choices are incorrect:

• The agent owes no duties to the seller unless the seller pays compensation. Nonclient duties do not depend on compensation.
• The agent must stop representing the buyer whenever fairness to the seller is required. The duties are compatible.
• The agent automatically becomes the seller’s fiduciary by delivering an offer. Delivering an offer does not itself create seller representation.

Sources:

• Lombardo v. Albu, Arizona Supreme Court, 199 Ariz. 97 (2000) — Paragraphs 14–15

Correct answer: A sufficient deed of release and reconveyance.

Full satisfaction is acknowledged by a sufficient release or satisfaction instrument, including a deed of release and reconveyance for a deed of trust. A notice cancelling a particular sale does not by itself serve the same purpose as releasing the paid security instrument.

Why the other choices are incorrect:

• A beneficiary deed naming the borrower. A beneficiary deed concerns a transfer effective at death, not release of the paid lien.
• A notice of trustee’s sale cancellation alone. Cancelling a sale is different from documenting release of the deed of trust.
• A new promissory note for a zero-dollar balance. A new note is not the statutory release of the recorded security instrument.

Sources:

• A.R.S. § 33-707 — A.R.S. § 33-707(A)

Correct answer: Electronic form alone does not make the contract or signatures unenforceable.

Arizona recognizes electronic records and signatures and does not deny them legal effect solely because of their electronic form. The electronic-transactions law applies here because both parties agreed to transact electronically; other contract requirements still apply.

Why the other choices are incorrect:

• Electronic signatures are effective only after ADRE approves the contract. The statute does not require ADRE approval of each electronically signed contract.
• Electronic signatures can establish an offer but cannot establish acceptance. Qualifying electronic signatures can be used to execute a contract, not just make an offer.
• Ink signatures are required for every Arizona real estate purchase contract. Arizona law recognizes qualifying electronic signatures instead of imposing a universal ink requirement.

Sources:

• A.R.S. § 44-7005 — A.R.S. § 44-7005(B)
• A.R.S. § 44-7007 — A.R.S. § 44-7007(A)–(D)

Correct answer: This improperly commingles escrow funds with the escrow agent’s own funds.

An escrow agent holds escrow money in trust and may not knowingly or negligently commingle it with the agent’s own money. An intention to repay, the amount involved and whether interest is charged do not excuse this use of the funds.

Why the other choices are incorrect:

• This is permitted if the entire amount is restored before closing. Restoring the money later does not undo the prohibited commingling.
• This is permitted if the deposit is smaller than the agent’s expected fee. Expected fees do not authorize using a buyer’s trust money for operating expenses.
• This is permitted if no interest is charged to the buyer. The prohibition does not depend on charging interest.

Sources:

• A.R.S. § 6-841.01 — A.R.S. § 6-841.01(A)

Correct answer: The lender’s policy protects the lender; owner’s coverage is a separate protection.

A lender’s title policy protects the lender’s insured interest, not the buyer’s equity simply because the buyer paid the premium. An owner’s policy provides separate protection for the owner, subject to its coverage terms and exceptions.

Why the other choices are incorrect:

• Paying the lender’s premium makes the buyer a joint insured automatically. Who pays the premium does not automatically change the insured interest.
• The lender’s policy becomes an owner’s policy after the down payment is made. Making a down payment does not convert a lender’s policy into an owner’s policy.
• The lender’s policy protects the owner only while the loan is outstanding. An outstanding loan does not cause the lender’s policy to insure the owner’s equity.

Sources:

• CFPB: What is lender’s title insurance? — Explanation of lender’s coverage and owner’s equity; reviewed September 11, 2024
• A.R.S. § 20-1562 — A.R.S. § 20-1562(8), (11)

Correct answer: The practice can be unlawful even though nobody has yet been deceived or damaged.

The Act reaches material omissions intended to induce reliance in the sale or advertising of merchandise, which includes real estate. Actual deception or damage is not required for the practice to be unlawful under this provision.

Why the other choices are incorrect:

• Real estate is excluded from the Act’s definition of merchandise. Real estate is expressly included in merchandise.
• The practice becomes unlawful only after someone buys the land. A completed purchase is not required for this statutory prohibition.
• The omission is lawful if the advertisement contains no express false statement. Intentional concealment of a material fact can violate the Act without an express false statement.

Sources:

• Arizona Revised Statutes 44-1522 — 44-1522(A)
• Arizona Revised Statutes 44-1521 — 44-1521(5)

Correct answer: The association, within ten days after receiving the written notice.

For a planned community with at least 50 properties, the seller must notify the association of the accepted offer with the required purchaser contact information. The association then has ten days after receiving that written notice to deliver the required resale information.

Why the other choices are incorrect:

• The seller’s broker, within three business days after closing. The statutory delivery obligation in this scenario rests with the association, not a post-closing broker delivery.
• The association, within thirty days after the deed is recorded. The deadline is tied to receipt of the notice, not a later recording date.
• The county recorder, when the purchaser requests the recorded deed. The recorder does not replace the association’s resale-disclosure function.

Sources:

• A.R.S. § 33-1806 — A.R.S. § 33-1806(A), opening paragraph; (G)

Correct answer: Furnish it at least seven days before transfer; the buyer may rescind for five days after it is furnished.

A.R.S. § 33-422(A) requires delivery at least seven days before transfer for a covered sale of five or fewer parcels. Subsection (D) gives the buyer five days after the affidavit is furnished to rescind. These are different periods with different starting points.

Why the other choices are incorrect:

• Furnish it five days before transfer; the buyer may rescind for ten days after signing the deed. Neither period stated matches the statute.
• Furnish it at closing; the buyer may rescind for seven days after recording. Delivery at closing misses the deadline, and recording does not start the five-day rescission period.
• Furnish it only on request; the buyer may rescind until the request is answered. The covered seller must furnish the affidavit without waiting for a request.

Sources:

• A.R.S. § 33-422 — Land divisions; recording; disclosure affidavit — § 33-422(A), (D)

Correct answer: Add a definite term showing the beginning and expiration dates.

Arizona real estate employment agreements must have a definite duration or expiration date and show inception and expiration dates. A sale-dependent endpoint alone does not supply those required dates.

Why the other choices are incorrect:

• Add the date on which the first showing is expected. A showing date does not establish the agreement’s beginning and expiration dates.
• State that the agreement ends when the broker earns a commission. A commission-triggered endpoint still leaves the expiration date indefinite.
• Replace the duration with "until either party gives notice." An indefinite cancellation arrangement does not supply the required dates.

Sources:

• A.R.S. § 32-2151.02 — A.R.S. § 32-2151.02(A)(3)

Correct answer: The designated broker remains responsible for the brokerage’s real estate advertising.

Outsourcing production does not remove the designated broker’s responsibility for real estate advertising.

Why the other choices are incorrect:

• Only the marketing company is responsible once it is paid. Hiring a vendor does not transfer the broker’s regulatory responsibility.
• ADRE becomes responsible after receiving a copy of the advertisement. Providing an advertisement to ADRE does not transfer responsibility.
• Only the property owner is responsible for the advertisement. Owner approval does not replace broker responsibility.

Sources:

• Arizona Administrative Code, Title 4, Chapter 28 — R4-28-502(G)

Correct answer: Only reservations will be accepted until the public report is issued.

Advertising must disclose the reservation-only status until issuance of the public report.

Why the other choices are incorrect:

• ADRE guarantees that the public report will be approved. Registration does not justify a guarantee of approval.
• Buyers can receive title immediately because reservations are registered. A reservation notice does not authorize immediate conveyance.
• The development has already satisfied every public-report requirement. A pending public report cannot be presented as completed approval.

Sources:

• Arizona Administrative Code, Title 4, Chapter 28 — R4-28-504(A)

Correct answer: The buyer must provide prior written acknowledgement of the compensation.

R4-28-1101(G) requires the person receiving transaction-related goods or services to acknowledge the licensee’s compensation in writing beforehand. Here that person is the buyer. The exception for compensation paid by a broker representing a party to another broker does not describe a moving-company fee.

Why the other choices are incorrect:

• The fee must be disclosed only if the buyer later asks about it. The rule requires prior written acknowledgement without waiting for a question.
• The moving company must approve the fee orally. The provider’s approval is not the required acknowledgement by the person receiving the services.
• The seller must approve the fee in the purchase contract. The buyer receives these services, so the seller’s approval does not satisfy this rule.

Sources:

• Arizona Administrative Code, Title 4, Chapter 28 (Supp. 25-4) — R4-28-1101(G)

Correct answer: Permit the reasonable modification, with reasonable interior-restoration conditions where appropriate.

Arizona prohibits refusing necessary reasonable modifications at the disabled person’s expense. For a renter, a reasonable condition restoring the interior may be permitted, with ordinary wear excepted.

Why the other choices are incorrect:

• Require the tenant to buy the property before making the modification. Ownership is not required; the protection expressly includes renters.
• Permit it only if the tenant agrees to pay a higher monthly rent because of the disability. Disability does not justify imposing discriminatory rental terms.
• Refuse because any physical change is solely the landlord’s choice. A blanket refusal would disregard the reasonable-modification requirement.

Sources:

• Arizona Revised Statutes 41-1491.19 — 41-1491.19(B), (E)(1)

Correct answer: Prior written consent from all parties to the transaction.

Representing more than one party requires every party’s prior written consent.

Why the other choices are incorrect:

• No further consent if the commission amount stays the same. Unchanged compensation does not remove the consent requirement.
• Written consent from the buyer after the contract is signed. Buyer-only consent after contracting is insufficient.
• Oral consent from the seller alone. Seller-only oral consent is insufficient.

Sources:

• Arizona Administrative Code, Title 4, Chapter 28 — R4-28-1101(F)
• Arizona Revised Statutes 32-2153 — 32-2153(A)(2)

Correct answer: Homeowner: trustor; lender: beneficiary.

The trustor conveys the property interest as security. The beneficiary is the person for whose benefit the deed of trust is given. The qualified trustee occupies a separate role under the instrument.

Why the other choices are incorrect:

• Homeowner: trustee; lender: beneficiary. The facts identify a separate qualified trustee; the homeowner conveys the security interest as trustor.
• Homeowner: trustor; lender: trustee. The named lender receives the security benefit; it is not the separate trustee in these facts.
• Homeowner: beneficiary; lender: trustor. This reverses the borrower/property-conveyor and secured-beneficiary roles.

Sources:

• A.R.S. § 33-801 — A.R.S. § 33-801(1), (8), (10)–(11)

Correct answer: October 1 and the following March 1.

A.R.S. § 42-18052(A) makes half the taxes due October 1 and the other half due the following March 1. The $2,400 bill is above the special $100-or-less category. Due dates should not be confused with the later delinquency deadlines.

Why the other choices are incorrect:

• December 31 and the following June 30. December 31 is associated with the small-bill delinquency provision, not this two-installment schedule.
• January 1 and July 1 of the same year. The ordinary Arizona schedule does not use these dates.
• November 1 and the following May 1. These are the ordinary delinquency cutoff dates, subject to the statutory time and holiday rules, rather than the due-and-payable dates.

Sources:

• A.R.S. § 42-18052 — Due dates and times; delinquency — § 42-18052(A)–(D)

Correct answer: Owner/agent

The rule requires the words “owner/agent” when a licensee advertises the licensee’s own Arizona property.

Why the other choices are incorrect:

• Private seller Private seller does not disclose licensed status.
• Licensed homeowner The rule specifies owner/agent.
• No listing commission Commission wording does not supply the required disclosure.

Sources:

• Arizona Administrative Code, Title 4, Chapter 28 — R4-28-502(B)

Correct answer: Investigate the complaint and examine relevant brokerage records.

A verified written complaint requires the commissioner to investigate. The commissioner may examine relevant business records and obtain evidence. A prior civil judgment is not required.

Why the other choices are incorrect:

• Refer the complaint to a trade association instead of investigating. A trade-association referral does not replace the statutory investigation.
• Investigate only after the client obtains a civil judgment. A judgment is not a prerequisite to this investigative authority.
• Require the client to obtain the broker’s consent to an audit. The statute gives the commissioner examination authority without the broker’s consent.

Sources:

• Arizona Revised Statutes 32-2108 — 32-2108(A)

Correct answer: A counteroffer awaiting the buyer’s acceptance.

A response conditioned on a materially different price is a counteroffer, not an acceptance of the original offer. Because the buyer has not assented, the seller’s response alone does not create the proposed purchase contract.

Why the other choices are incorrect:

• An acceptance that binds the parties at $425,000. The buyer has not accepted the higher price.
• An amendment to an already completed purchase contract. No purchase contract had been formed before this response.
• An acceptance that binds the parties at $410,000. The seller expressly conditioned agreement on a different price.

Sources:

• Dollar Tree Stores, Inc. v. Bayless Investment & Trading Co., federal court opinion applying Arizona contract law — Document 76, December 1, 2011, pp. 6–7, Contract Formation

Correct answer: No; it had to be executed and recorded before the owner’s death.

A beneficiary deed is valid under this statute only if executed and recorded in the county where the property is located before the owner’s death. The named beneficiary’s signature is not the missing requirement; timely recording is.

Why the other choices are incorrect:

• No; the beneficiary also had to sign the deed while the owner was alive. The statute does not require the beneficiary’s signature or consent during the owner’s lifetime.
• Yes, because signing the deed alone makes the future transfer effective. Execution without the required lifetime recording is insufficient.
• Yes, if the beneficiary records it within thirty days after death. The statute does not supply a thirty-day post-death cure for this requirement.

Sources:

• A.R.S. § 33-405 — A.R.S. § 33-405(E), (I)