Arizona Real Estate Practice Test (Free)

Free Arizona practice questions

10 questions written for the Arizona exam, drawn from 12 in the ApexAgent bank. The correct answer and the reasoning are under each one.

1. 1. Which Arizona statute places the state real estate department under the direction of the real estate commissioner and states that the department's purpose is to protect the public interest through licensure and regulation of the real estate profession?

   • A. A.R.S. 32-2102 ✓
   • B. A.R.S. 32-2106
   • C. A.R.S. 32-2125.01
   • D. A.R.S. 44-101

   Why: A.R.S. 32-2102 provides that Title 32, Chapter 20 is administered by the state real estate department under the direction of the real estate commissioner, and that the department's purpose is to protect the public interest through licensure and regulation of the real estate profession. A.R.S. 32-2106 covers the commissioner's appointment and qualifications, A.R.S. 32-2125.01 covers issuance of licenses, and A.R.S. 44-101 is the statute of frauds.

2. 2. Under Arizona law, how is the real estate commissioner selected, and how long does the commissioner serve?

   • A. Elected by Arizona licensees to a four-year term
   • B. Appointed by the governor for a fixed six-year term
   • C. Appointed by the governor and serving at the pleasure of the governor ✓
   • D. Appointed by the real estate advisory board to a two-year term

   Why: A.R.S. 32-2106 states that the real estate commissioner is appointed by the governor under the state personnel process and serves at the pleasure of the governor. The same section requires at least five years of experience in the real estate, title insurance, banking or mortgage broker industry plus three years of administrative experience, and bars the commissioner from being financially interested in a real estate or brokerage firm.

3. 3. After passing the Arizona salesperson examination, how long does a candidate have to become licensed before the exam must be retaken?

   • A. Six months
   • B. One year ✓
   • C. Two years
   • D. Five years

   Why: A.R.S. 32-2125.01 requires any person who has passed the broker or salesperson examination to become licensed within one year from the date of the examination, and failure to do so means the person must submit to and pass another examination. The Pearson VUE Arizona Candidate Handbook repeats that the exam must be successfully completed within one year before the license application.

4. 4. How many hours of continuing education must an Arizona real estate salesperson complete during each licensing period?

   • A. 6 credit hours
   • B. 12 credit hours
   • C. 24 credit hours ✓
   • D. 30 credit hours

   Why: A.R.S. 32-2130 requires evidence of 24 credit hours of commissioner-approved continuing education for salespersons and associate brokers, accrued during each 24-month period of licensure. Designated brokers must complete 30 credit hours. The same section states that a licensee does not earn continuing education credit during a period when the license is inactive.

5. 5. What is the base amount of the Arizona homestead exemption that protects a person's residence from attachment, execution and forced sale under A.R.S. 33-1101?

   • A. $150,000
   • B. $250,000
   • C. $400,000 ✓
   • D. $600,000

   Why: A.R.S. 33-1101(A) sets the homestead exemption at not exceeding $400,000 in value for a person who is at least 18 and resides in Arizona, and only one homestead exemption may be held by a married couple or a single person. Under A.R.S. 33-1101(D) that amount is adjusted annually for the cost of living starting January 1, 2024, rounded up to the nearest $100.

6. 6. Arizona's statute of frauds requires certain real estate agreements to be in writing. Which of the following must be in writing under A.R.S. 44-101?

   • A. Only a lease for six months or less
   • B. An agreement authorizing or employing a broker to sell real property for compensation ✓
   • C. An oral agreement to sell goods worth $200
   • D. A promise to repay a personal loan of $1,000 made for household purposes

   Why: A.R.S. 44-101 requires a writing for, among other things, an agreement for the sale of real property or an interest in it (paragraph 6), and an agreement authorizing or employing an agent or broker to purchase or sell real property for compensation or a commission (paragraph 7). Sales of goods below the $500 threshold and loans limited to personal, family or household purposes fall outside the writing requirement.

7. 7. In Arizona, when a single one-family or two-family dwelling on two and one-half acres or less is sold at a trustee's sale under a deed of trust, what does A.R.S. 33-814 provide about the lender recovering a deficiency?

   • A. The lender may sue for the full unpaid balance within 90 days
   • B. The lender may recover a deficiency only if the buyer signed a guaranty
   • C. No action may be maintained to recover the difference between the sale amount and the debt ✓
   • D. The lender may recover a deficiency only after a judicial foreclosure

   Why: A.R.S. 33-814 is Arizona's anti-deficiency statute. Subsection G provides that if trust property of two and one-half acres or less limited to and used for a single one-family or single two-family dwelling is sold under the trustee's power of sale, no action may be maintained to recover the difference between the amount obtained by sale and the indebtedness. For other property, subsection A allows a deficiency action within 90 days of the sale, limited to the debt less the greater of the sale price or the court-determined fair market value.

8. 8. Under the Arizona subdivision laws, at what point does a person creating lots from a parcel of land generally have to notify the real estate commissioner and obtain a public report before offering the lots for sale?

   • A. When creating two or more lots
   • B. When creating four or more lots
   • C. When creating six or more lots, parcels or fractional interests ✓
   • D. Only when creating fifty or more lots

   Why: A.R.S. 32-2181(E) provides that the creation of six or more lots, parcels or fractional interests in improved or unimproved land is subject to the subdivision article, except in stated exemption situations such as lots of 36 acres or more. A.R.S. 32-2181(A) requires the subdivider to notify the commissioner in writing before offering subdivided lands for sale or lease, which begins the public report process.

9. 9. How much does an applicant for an original Arizona real estate salesperson license pay into the real estate recovery fund?

   • A. $5
   • B. $10 ✓
   • C. $20
   • D. $30

   Why: A.R.S. 32-2187 requires a $10 payment into the real estate recovery fund on application for an original real estate or cemetery salesperson's license, and $20 on application for an original broker's license. The recovery fund is used under A.R.S. 32-2186 to reimburse aggrieved persons, with liability capped at $30,000 per transaction and $90,000 per licensee.

10. 10. How long must an Arizona employing broker keep the records of each real estate transaction and the employment records of current and former employees?

    • A. One year after the transaction or employment ends
    • B. Two years after the transaction or employment ends
    • C. Three years after the transaction or employment ends
    • D. At least five years after the transaction or employment ends ✓

    Why: A.R.S. 32-2151.01(A) requires the employing broker to keep records of all real estate, cemetery, timeshare and membership camping transactions and employment records for a period of at least five years after the date of the termination of the transaction or employment. The records must include earnest money receipts, closing statements, sales contracts and, where applicable, copies of employment agreements, and must be open to inspection by the commissioner.

Want more Arizona-specific questions? Practice the full Arizona state-law set.