1. Which claimant is ineligible to recover from the Arizona Real Estate Recovery Fund?
Answer & explanation
Answer: B. A.R.S. §32-2188(E) excludes a claimant who is the spouse of the judgment debtor or the spouse's personal representative. Restitution orders qualify as judgments, and out-of-state residents are not excluded.
2. Mixing client trust funds with the broker's own business funds is:
Answer & explanation
Answer: B. Commingling client/escrow funds with the broker's operating funds is prohibited and grounds for discipline. Using those funds for personal purposes is conversion.
3. A licensee may manage property for an owner for a fee only if there is:
Answer & explanation
Answer: D. Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.
4. A lot reservation deposit must be delivered to a licensed escrow agent within:
Answer & explanation
Answer: A. 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.
5. 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?
Answer & explanation
Answer: C. 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.
6. How many hours of prelicensing education must an applicant for an original Arizona salesperson license complete, not counting the separate contract writing course?
Answer & explanation
Answer: B. A.R.S. §32-2124 requires 90 classroom hours (or the equivalent) from an approved school. The 6-hour contract writing course is an additional requirement and is not part of the 90.
7. An Arizona salesperson's license expired on January 31, 2026. Which statement is correct?
Answer & explanation
Answer: D. A.R.S. §32-2130 permits renewal without examination up to one year after expiration, but the licensee's rights expire on the expiration date, so practicing in the meantime is unlawful. After more than one year the license is terminated.
8. Under A.R.S. §32-2130, an Arizona license that has been inactive for more than how many years requires the licensee to pass a state law exam to reactivate?
Answer & explanation
Answer: C. An inactive licensee need not take CE while inactive, but a license inactive for more than fifteen years requires passing a state law examination to reactivate. ADRE sends notice one year before the 15-year mark.
9. A licensee lists a home in Phoenix. Which statement best describes the protected classes the licensee must observe?
Answer & explanation
Answer: A. Several Arizona cities, including Phoenix, add protected classes by local ordinance. A licensee must follow the most protective applicable law.
10. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):
Answer & explanation
Answer: B. In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)
11. 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:
Answer & explanation
Answer: C. 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.
12. An Arizona salesperson is convicted of a misdemeanor. Within what period must the salesperson notify the Commissioner in writing?
Answer & explanation
Answer: A. R4-28-301(F) requires written notice to the Commissioner within 10 days of a misdemeanor or felony conviction, along with supporting documentation. Waiting until renewal is a common wrong assumption.
13. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:
Answer & explanation
Answer: A. The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.
14. 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:
Answer & explanation
Answer: D. 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.
15. A life estate is measured by:
Answer & explanation
Answer: D. A life estate lasts for the duration of a specified person's life, then passes to the remainderman or reverts to the grantor. A fixed term describes an estate for years (a leasehold).
16. 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:
Answer & explanation
Answer: A. Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.
17. Which action may a life tenant take WITHOUT the remainderman's consent?
Answer & explanation
Answer: D. A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.
18. Under an open listing, the seller owes a commission to:
Answer & explanation
Answer: C. Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.
19. In a life estate, the person who receives the property when the life tenant dies is the:
Answer & explanation
Answer: A. The life tenant has a present interest; the remainderman holds a future interest. If the property returns to the grantor, it is a reversion.
20. A licensee representing the seller who learns the buyer will pay more than the offer must:
Answer & explanation
Answer: C. Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.
21. In a lease, the tenant holds a ____ estate and the landlord holds a ____.
Answer & explanation
Answer: D. The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.
22. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:
Answer & explanation
Answer: B. 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.)
23. A home sells for $400,000 with a 5% total commission. What is the total commission?
Answer & explanation
Answer: B. $400,000 x 0.05 = $20,000.
24. Which statement about dual agency is correct?
Answer & explanation
Answer: D. Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.
25. A licensee's advertising must generally:
Answer & explanation
Answer: C. Ads must identify the licensed broker/brokerage; salespersons cannot advertise under only their own name.
Sources
Source verification pending. Confirm current requirements with your state regulator.