Free Arizona Agency Practice Test — LicenseIQ

Question 1

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 2

A listing agent knows the home's septic system failed inspection last year. Under R4-28-1101(B), the agent must:

Accepted Answer

R4-28-1101(B) requires a licensee to disclose in writing to all other parties any information that materially or adversely affects the consideration, including any material defect in the property. Waiting to be asked, or an oral mention, does not satisfy the rule.

Question 3

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 4

An Arizona salesperson has completed 3 hours each in Agency Law, Contract Law, Commissioner's Standards, Fair Housing, and Disclosure, plus 9 hours of General Real Estate. What must she still complete to renew?

Accepted Answer

She has 15 + 9 = 24 hours, but she is missing the required 3-hour minimum in Real Estate Legal Issues. Every one of the six mandatory categories must be met; elective hours cannot substitute. The Broker Management Clinic applies to designated brokers.

Question 5

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 6

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 7

A seller's agent receives a request from the buyer to move furniture into the home two weeks before close of escrow. Under the Commissioner's Rules, the agent must:

Accepted Answer

R4-28-1101(J) prohibits delivering possession before closing unless the owner expressly instructs it, and R4-28-1101(K) requires recommending insurance, legal, tax, and accounting counsel regarding pre- or post-possession risks. Pre-possession is not illegal.

Question 8

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 9

A buyer discovers after closing that a registered sex offender lives two houses away, a fact the seller and both agents knew but did not disclose. Under Arizona law:

Accepted Answer

A.R.S. §32-2156(A)-(B) bars criminal, civil, or administrative action for failing to disclose that a property is near a sex offender, and states that such nondisclosure is not grounds to terminate or rescind the transaction.

Question 10

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 11

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 12

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 13

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 14

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 15

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 16

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 17

A lot reservation deposit must be delivered to a licensed escrow agent within:

Accepted Answer

A.R.S. §32-2181.03 requires the seller to deliver the deposit to a licensed escrow agent within one business day of accepting it.

Question 18

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 19

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 20

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 21

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 22

Under Arizona's Commissioner's Rules, a licensee owes a fiduciary duty to the client and must also:

Accepted Answer

R4-28-1101(A) says the licensee owes a fiduciary duty to the client, must protect and promote the client's interests, and must deal fairly with all other parties. Fair dealing is not equal representation.

Question 23

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 24

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

Question 25

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.

Arizona real estate agency practice test

1. The client a broker represents is the:

2. A listing agent knows the home's septic system failed inspection last year. Under R4-28-1101(B), the agent must:

3. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

4. An Arizona salesperson has completed 3 hours each in Agency Law, Contract Law, Commissioner's Standards, Fair Housing, and Disclosure, plus 9 hours of General Real Estate. What must she still complete to renew?

5. Which statement about dual agency is correct?

6. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

7. A seller's agent receives a request from the buyer to move furniture into the home two weeks before close of escrow. Under the Commissioner's Rules, the agent must:

8. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

9. A buyer discovers after closing that a registered sex offender lives two houses away, a fact the seller and both agents knew but did not disclose. Under Arizona law:

10. Which fiduciary duty continues even after the agency relationship has ended?

11. A material defect that a seller/agent must disclose is one that:

12. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

13. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

14. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

15. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

16. An agency relationship can be terminated by all of the following EXCEPT:

17. A lot reservation deposit must be delivered to a licensed escrow agent within:

18. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

19. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

20. 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:

21. 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:

22. Under Arizona's Commissioner's Rules, a licensee owes a fiduciary duty to the client and must also:

23. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

24. An agent authorized to perform a single specific act for a principal is a:

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

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