Free Arizona Real Estate Practice Test (2026) — LicenseIQ

Question 1

Which agency investigates complaints under the Arizona Fair Housing Act?

Accepted Answer

The Civil Rights Division of the Arizona Attorney General's Office enforces the state fair housing law. ADRE may separately discipline a licensee, but it does not adjudicate fair housing complaints.

Question 2

On an adjustable-rate mortgage, the interest rate after the initial period is determined by:

Accepted Answer

ARM rate = index + margin, subject to periodic and lifetime caps. In a 5/1 ARM the rate is fixed 5 years, then adjusts every year.

Question 3

A buyer cancels during the Inspection Period after timely delivering a BINSR. The seller claims the buyer breached and demands the earnest money. Which is most accurate?

Accepted Answer

The AAR contract states that an unfulfilled contingency is not a breach. A timely, proper inspection cancellation entitles the buyer to the return of the earnest money.

Question 4

A party making an offer to buy is the ____, and the party receiving it is the ____.

Accepted Answer

The offeror makes the offer; the offeree receives it. When a counteroffer is made, the roles swap.

Question 5

A borrower pays $4,500 for 1.5 discount points. What is the loan amount?

Accepted Answer

Loan = cost of points / points as a percentage = $4,500 / 0.015 = $300,000.

Question 6

Under A.R.S. §33-422, the seller must furnish the Affidavit of Disclosure to the buyer at least how many days before the transfer?

Accepted Answer

The statute requires the affidavit at least seven days before transfer. Five days is the buyer's rescission window after receiving it, and the AAR contract separately asks for delivery within five days after acceptance.

Question 7

A religious organization operating housing for non-commercial purposes may give preference to members of its own religion, but it may NOT:

Accepted Answer

Religious organizations and private clubs have partial exemptions, but cannot discriminate on other protected classes, and the religion itself cannot restrict membership by race, color or national origin.

Question 8

Under a land contract (contract for deed), during the payment period the buyer holds:

Accepted Answer

In an installment/land contract the buyer has equitable title and possession; the seller keeps legal title until the final payment.

Question 9

A 275-gallon heating oil tank costs $168 to fill at $4.20 per gallon. The buyer will credit the seller for the oil remaining in the tank. What is the credit?

Accepted Answer

Gallons needed = $168 / $4.20 = 40; remaining = 275 - 40 = 235 gallons; credit = 235 x $4.20 = $987.

Question 10

A commercial property has potential gross income of $240,000 and an 8% vacancy allowance. Using a gross income multiplier of 6, what is the estimated value?

Accepted Answer

EGI = $240,000 - 8% = $220,800; value = $220,800 x 6 = $1,324,800.

Question 11

A buyer already has an exclusive buyer-broker agreement with Broker A. Broker B's agent wants to have the buyer sign a new buyer-broker agreement. Under A.R.S. §32-2151.02(C), Broker B's agent may solicit the buyer only if:

Accepted Answer

A.R.S. §32-2151.02(C) bars soliciting a party bound by an exclusive agreement unless that party signs a written acknowledgment that entering more agreements could result in owing substantial additional commissions.

Question 12

Under the Code of Ethics, a REALTOR's primary obligation is to:

Accepted Answer

Article 1: REALTORS pledge to protect and promote the interests of their client while treating all parties honestly.

Question 13

A buyer pays $10,000 for a 12-month option to buy a house for $250,000. During the option period:

Accepted Answer

The option binds only the optionor. The optionee may exercise or let it lapse (forfeiting the option money).

Question 14

A licensee representing the seller who learns the buyer will pay more than the offer must:

Accepted Answer

Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.

Question 15

An Arizona salesperson advertises her own rental house for sale. The ad must include:

Accepted Answer

R4-28-502(B) requires a licensee advertising their own property to disclose license status and ownership by using the term 'owner/agent.' Calling it 'for sale by owner' would hide the licensee's status.

Question 16

In a CMA, active listings are most useful for showing:

Accepted Answer

Sold comps show actual prices paid; pending sales show demand; active listings show competition.

Question 17

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 18

A grateful seller wants to pay a $500 bonus directly to the buyer's agent, who is a salesperson. Under Arizona law, the salesperson may accept compensation only from:

Accepted Answer

A.R.S. §32-2155(A) permits a licensee to accept compensation for licensed acts only from the broker to whom the licensee is licensed (with a narrow W-2 exception). The bonus must be paid to the employing broker, who can then pay the salesperson.

Question 19

The government's power to take private property for public use with just compensation is:

Accepted Answer

Eminent domain (exercised through condemnation) allows taking for public use with just compensation. Escheat applies when an owner dies without a will or heirs.

Question 20

A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

Accepted Answer

First $100,000 x 0.005 = $500; remaining $220,000 x 0.015 = $3,300; total = $3,800.

Question 21

A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

Accepted Answer

When no bid meets the lender's minimum, the lender takes title and the property becomes REO inventory.

Question 22

Which practice best helps an Arizona property management brokerage avoid fair housing claims during tenant screening?

Accepted Answer

Uniform written criteria applied consistently to all applicants reduce disparate treatment risk. Asking about protected characteristics, or selectively screening, invites claims.

Question 23

After an owner terminates a property management agreement, within what period must the firm return the owner's remaining property account funds (less amounts needed for unpaid obligations)?

Accepted Answer

A.R.S. §32-2173(B)-(C) requires immediate delivery of records, a list of tenant security obligations within 5 days, return of remaining funds within 35 days, and final accounting and reconciliation within 75 days.

Question 24

Under A.R.S. §32-2101, land divided for sale into how many lots, each under 36 acres, is 'subdivided lands'?

Accepted Answer

Subdivided lands are land divided or proposed to be divided for sale or lease into six or more lots, parcels, or fractional interests. Lots of 36 acres or more are excluded.

Question 25

A licensee who lacks expertise in a type of property a client wants to sell may proceed under R4-28-1101(H) if the licensee:

Accepted Answer

R4-28-1101(H) requires services to meet recognized standards of competence. Where the licensee lacks expertise, the licensee must get competent help or disclose the lack of expertise in writing to the client, who then decides whether to proceed.

Arizona real estate practice test

1. Which agency investigates complaints under the Arizona Fair Housing Act?

2. On an adjustable-rate mortgage, the interest rate after the initial period is determined by:

3. A buyer cancels during the Inspection Period after timely delivering a BINSR. The seller claims the buyer breached and demands the earnest money. Which is most accurate?

4. A party making an offer to buy is the , and the party receiving it is the .

5. A borrower pays $4,500 for 1.5 discount points. What is the loan amount?

6. Under A.R.S. §33-422, the seller must furnish the Affidavit of Disclosure to the buyer at least how many days before the transfer?

7. A religious organization operating housing for non-commercial purposes may give preference to members of its own religion, but it may NOT:

8. Under a land contract (contract for deed), during the payment period the buyer holds:

9. A 275-gallon heating oil tank costs $168 to fill at $4.20 per gallon. The buyer will credit the seller for the oil remaining in the tank. What is the credit?

10. A commercial property has potential gross income of $240,000 and an 8% vacancy allowance. Using a gross income multiplier of 6, what is the estimated value?

11. A buyer already has an exclusive buyer-broker agreement with Broker A. Broker B's agent wants to have the buyer sign a new buyer-broker agreement. Under A.R.S. §32-2151.02(C), Broker B's agent may solicit the buyer only if:

12. Under the Code of Ethics, a REALTOR's primary obligation is to:

13. A buyer pays $10,000 for a 12-month option to buy a house for $250,000. During the option period:

14. A licensee representing the seller who learns the buyer will pay more than the offer must:

15. An Arizona salesperson advertises her own rental house for sale. The ad must include:

16. In a CMA, active listings are most useful for showing:

17. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

18. A grateful seller wants to pay a $500 bonus directly to the buyer's agent, who is a salesperson. Under Arizona law, the salesperson may accept compensation only from:

19. The government's power to take private property for public use with just compensation is:

20. A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

21. A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

22. Which practice best helps an Arizona property management brokerage avoid fair housing claims during tenant screening?

23. After an owner terminates a property management agreement, within what period must the firm return the owner's remaining property account funds (less amounts needed for unpaid obligations)?

24. Under A.R.S. §32-2101, land divided for sale into how many lots, each under 36 acres, is 'subdivided lands'?

25. A licensee who lacks expertise in a type of property a client wants to sell may proceed under R4-28-1101(H) if the licensee:

Sources