Arizona Real Estate Salesperson Exam — All Questions

The principle of contribution states that the value of a component or improvement is measured by:

• a.The raw number of square feet of floor area or land area that the improvement happens to occupy
• b.The owner's personal emotional attachment to and sentimental feelings about that improvement
• c.Its original construction or installation cost in every case, dollar for dollar, with no exception
• d.How much it adds to the overall value of the property, not its cost✓

Under contribution, an improvement is worth the amount it adds to the whole property's market value, which may be more or less than its cost. This principle explains why some renovations do not fully return their expense, a key point in over-improvement analysis.

Under Internal Revenue Code Section 121, a qualifying homeowner may generally EXCLUDE from taxable capital gain:

• a.Up to $250,000 of gain if single, or $500,000 if married filing jointly✓
• b.Up to a full one million dollars of gain on any property at all, at any time and any frequency
• c.All gain on any and every investment or rental property the taxpayer happens to own and sell
• d.Absolutely nothing, because gain on the sale of a home is always fully and entirely taxable

Section 121 lets homeowners who owned and used the home as their principal residence for at least two of the prior five years exclude up to $250,000 of gain (single) or $500,000 (married filing jointly). It applies to a primary residence, not to investment property.

Depreciation recapture on the sale of investment real estate means that:

• a.All of the depreciation deductions previously claimed are simply refunded to the investor in cash
• b.The investor is legally required to physically restore and rebuild the depreciated building itself
• c.Gain from prior depreciation may be taxed, often at a special rate✓
• d.No income tax is ever owed at all on the sale of a property that has previously been depreciated

When depreciated property is sold at a gain, the portion of gain due to depreciation deductions is 'recaptured' and taxed under special rules, reflecting the earlier tax benefit. It is a tax concept, not a requirement to rebuild, and it increases, not eliminates, tax on sale.

Which appraisal approach is generally MOST reliable for a special-purpose property, such as a church or public school, that rarely sells and earns no market income?

• a.The sales comparison approach, which depends on recent sales of similar comparable properties
• b.The income approach, which converts a property's market rental income into an indicated value
• c.The gross rent multiplier method, which relies on typical market rents that these lack entirely
• d.The cost approach✓

Special-purpose properties have few or no comparable sales and generate no market rent, so the cost approach (replacement cost new, less depreciation, plus land) is typically most reliable. Sales comparison lacks comparables and the income/GRM methods need market income these properties do not produce.

The four characteristics an item must have to possess value in the market, often remembered as DUST, are:

• a.Debt, Utility, Supply, and Taxes, a mix of unrelated financing and cost terms rather than value
• b.Demand, Utility, Scarcity, and Transferability✓
• c.Depreciation, Use, Sale, and Title, which describe stages of ownership rather than value itself
• d.Demand, Ownership, Scarcity, and Time, which swaps in two terms that are not part of the concept

For something to have market value it must have Demand (buyers who want it), Utility (usefulness), Scarcity (limited supply), and Transferability (the ability to convey it). The DUST acronym captures these four essentials of value.

Which of the following is a physical characteristic of land rather than an economic characteristic?

• a.Situs (area preference)
• b.Scarcity
• c.Permanence of investment
• d.Immobility✓

Immobility is a physical characteristic: land cannot be moved from one location to another. Scarcity, situs, and permanence of investment are economic characteristics that affect value and demand rather than the physical nature of the land itself.

A tenant installs custom shelving bolted to the wall to display merchandise in a leased retail space. At lease end, this item is most likely classified as a:

• a.Fixture that must remain with the real property
• b.Trade fixture the tenant may remove✓
• c.Appurtenance that transfers with title
• d.Emblement belonging to the landlord

Items a commercial tenant attaches to conduct business are trade fixtures and remain the tenant's personal property, removable before the lease ends (tenant must repair damage). An ordinary fixture becomes part of the real estate, but the business-use exception controls here. Emblements refer to annual crops, not shelving.

Which deed offers the grantee the greatest protection by warranting title against defects arising at any time, even before the grantor owned the property?

• a.Special warranty deed
• b.General warranty deed✓
• c.Bargain and sale deed
• d.Quitclaim deed

A general warranty deed contains full covenants and warrants against all title defects, including those predating the grantor's ownership. A special warranty deed only covers defects arising during the grantor's ownership, and a quitclaim deed conveys whatever interest the grantor has with no warranties at all.

Arizona is a community property state. When a married couple acquires real property during the marriage without specifying otherwise, the property is generally presumed to be:

• a.Community property owned equally by both spouses✓
• b.A tenancy in common with unequal shares
• c.Separate property of the spouse who earned the funds
• d.A joint tenancy with automatic survivorship

In Arizona, property acquired by either spouse during marriage is presumed community property, owned equally by both regardless of who earned the money. Separate property is generally that owned before marriage or received by gift or inheritance. Survivorship is not automatic unless the couple takes title as community property with right of survivorship.

An appraiser valuing a single-family residence in an established neighborhood would rely primarily on which approach to value?

• a.Income capitalization approach
• b.Sales comparison approach✓
• c.Cost approach
• d.Gross rent multiplier approach

The sales comparison approach, which analyzes recent sales of similar nearby homes, is the most reliable and heavily weighted method for owner-occupied residential property. The cost approach is best for new or special-purpose buildings, and the income approach applies to investment or rental property rather than a typical single-family home.

An outdated floor plan and a functionally obsolete single bathroom in a four-bedroom home are examples of:

• a.Economic (external) obsolescence
• b.Curable physical depreciation only
• c.Functional obsolescence✓
• d.Physical deterioration

Functional obsolescence is a loss in value caused by outdated or poorly designed features within the property itself, such as a bad floor plan or too few bathrooms. Physical deterioration is wear and tear, while external/economic obsolescence stems from negative influences outside the property, like a nearby nuisance.

Which listing agreement entitles the broker to a commission no matter who sells the property during the listing period, including the owner selling it themselves?

• a.Open listing
• b.Exclusive agency listing
• c.Exclusive right-to-sell listing✓
• d.Net listing

Under an exclusive right-to-sell listing, the listing broker earns the commission if the property sells during the term regardless of who procures the buyer, including the owner. In an exclusive agency listing the owner may sell without owing a commission, and an open listing lets multiple brokers compete with no commission owed if the owner sells.

A buyer's agent learns the buyer client will pay well above list price if necessary. Under agency duties, the agent must:

• a.Disclose the buyer's top price to the listing agent to speed the sale
• b.Keep the buyer's price limit confidential✓
• c.Reveal it to any other agent to promote cooperation
• d.Share the information only if the seller directly asks

The fiduciary duty of confidentiality requires the buyer's agent to protect information that could weaken the client's negotiating position, such as the maximum price the buyer will pay. Disclosing it to the listing agent or seller would breach loyalty and confidentiality and harm the principal.

A purchase contract signed by a minor is generally best described as:

• a.Fully enforceable against both parties
• b.Void from the outset
• c.Illegal and therefore unenforceable by anyone
• d.Voidable at the option of the minor✓

A contract with a minor is voidable, meaning the minor may choose to disaffirm it while the competent adult party remains bound. It is not automatically void, and it is not illegal; the law simply gives the minor the power to cancel to protect against lack of capacity.

A licensee steers minority buyers only toward certain neighborhoods and away from others. This illegal practice is called:

• a.Steering✓
• b.Redlining
• c.Panic selling
• d.Blockbusting

Steering is directing prospective buyers toward or away from areas based on a protected characteristic, limiting their housing choices in violation of fair housing law. Blockbusting is inducing owners to sell by exploiting fears of changing demographics, and redlining is denying loans or services based on the location's makeup.

The federal lead-based paint disclosure rule (Title X) requires disclosure for residential properties built:

• a.Before 1978✓
• b.In any year regardless of age
• c.After 1978 only
• d.Before 1950

Federal law requires lead-based paint disclosure and the EPA pamphlet for target housing built before 1978, the year residential lead-based paint was banned. Buyers must also receive a 10-day opportunity to test. Homes built in 1978 or later are generally exempt from this specific requirement.

In Arizona, the seller of a resale home typically communicates known material property conditions to the buyer using the:

• a.Public Report issued by ADRE
• b.Affidavit of Disclosure only
• c.Seller Property Disclosure Statement (SPDS)✓
• d.Lead-based paint addendum only

Arizona sellers customarily use the SPDS to disclose known material facts about the property's condition to buyers. The ADRE Public Report applies to subdivided land sales, and the Affidavit of Disclosure is used for certain unincorporated rural parcels of five acres or fewer, not standard resale disclosures.

In a deed of trust, the party who holds legal title in trust and can conduct a trustee's sale upon default is the:

• a.Trustee✓
• b.Mortgagee
• c.Beneficiary (lender)
• d.Trustor (borrower)

In a deed of trust, the trustee holds title in trust and, upon the borrower's default, may conduct a nonjudicial trustee's sale as directed by the beneficiary. The trustor is the borrower who conveys title, and the beneficiary is the lender secured by the deed of trust. Deeds of trust with trustee's sale are standard in Arizona.

A home sells for $420,000. The total commission is 6%, split equally between the listing and selling brokerages. How much does the listing brokerage receive?

• a.$25,200
• b.$18,900
• c.$12,600✓
• d.$6,300

Total commission is $420,000 x 0.06 = $25,200. Splitting equally, each brokerage receives $25,200 / 2 = $12,600. The $25,200 figure is the full commission before the split, so it is not the listing brokerage's share alone.

An investor buys a property producing $36,000 in annual net operating income and wants a 9% capitalization rate. What value supports that return?

• a.$40,000
• b.$450,000
• c.$324,000
• d.$400,000✓

Value equals net operating income divided by the cap rate: $36,000 / 0.09 = $400,000. Multiplying instead of dividing ($36,000 x 9 = $324,000) is a common error, and $324,000 would imply a much higher cap rate than 9% for this income.

In Arizona, before a licensee begins representing a party in a transaction, the licensee must provide the consumer with the:

• a.Real Estate Agency Disclosure and Election form✓
• b.HUD-1 settlement statement
• c.Affidavit of Disclosure
• d.Public Report

Arizona requires licensees to give consumers a written agency disclosure explaining representation options so the consumer can make an informed election about who represents them. The Public Report concerns subdivided land, the Affidavit of Disclosure covers certain rural parcels, and settlement statements are provided at closing, not at the start of representation.

An Arizona broker represents both the buyer and the seller in the same transaction. This limited dual representation is permitted only when the broker:

• a.Notifies only the seller since the seller pays the commission
• b.Obtains the informed written consent of both parties✓
• c.Keeps the arrangement confidential from both parties
• d.Represents the buyer's interests above the seller's

Arizona allows limited dual (or designated) representation only with the informed written consent of both the buyer and the seller. A dual agent must remain neutral and cannot advocate for one party over the other or hide the conflict, since both principals are owed honesty and fair dealing.

Under Arizona law, a salesperson who negotiates a listing or sale must ensure that any commission earned is:

• a.Paid directly to the salesperson by the buyer
• b.Paid only through the salesperson's employing broker✓
• c.Split with the client at closing
• d.Deposited into the salesperson's personal account

Arizona law requires that a salesperson be compensated only through their employing (designated) broker, never directly from a buyer, seller, or another brokerage. This keeps the broker responsible for supervising the licensee and accounting for funds. A salesperson accepting a commission directly would violate license law.

In Arizona, how long must a broker generally retain transaction records and documents related to a real estate deal?

• a.Five years✓
• b.Ninety days
• c.Ten years
• d.One year

Arizona brokers are required to keep transaction files and related records for five years from the date of the transaction or termination, so the ADRE can inspect them during audits or investigations. Shorter periods such as 90 days or one year would not satisfy this recordkeeping duty.

An Arizona salesperson receives an earnest money check from a buyer. The salesperson must:

• a.Hold it until after closing to avoid bank fees
• b.Cash it and give the seller the funds directly
• c.Deposit it into a personal checking account for safekeeping
• d.Promptly deliver it to the employing broker for handling per the contract✓

A salesperson must promptly turn earnest money over to the employing broker, who deposits it into the broker's trust (escrow) account or handles it as the contract directs. Commingling client funds with personal accounts is a serious violation, and the salesperson may not personally decide to cash or hold the funds.

Which entity licenses and regulates real estate salespersons and brokers in Arizona?

• a.The Arizona Association of REALTORS
• b.The National Association of REALTORS
• c.The Arizona Department of Real Estate (ADRE)✓
• d.The Federal Housing Administration

The Arizona Department of Real Estate (ADRE), led by the Commissioner of Real Estate, administers license law under Title 32 and enforces the Commissioner's Rules. The National and Arizona Associations of REALTORS are private trade organizations, and the FHA is a federal agency involved in mortgage insurance, not state licensing.

Before a developer may sell or lease lots in a subdivision to the public in Arizona, the developer must obtain and provide buyers with a:

• a.Seller Property Disclosure Statement
• b.Affidavit of Disclosure
• c.Public Report from the ADRE✓
• d.Certificate of Occupancy

Arizona requires developers of subdivided (and certain unsubdivided) land to obtain a Public Report from the ADRE and give it to prospective buyers before a sale, disclosing material facts about the parcels. The SPDS is for resale homes and the Affidavit of Disclosure applies to certain rural parcels, not new subdivision sales.

Under Arizona advertising rules, when a salesperson advertises a listed property, the advertisement must include the:

• a.Property's original purchase price
• b.Salesperson's home address
• c.Employing broker's name✓
• d.Seller's full name

Arizona advertising rules require that real estate advertising identify the employing broker by the name under which the broker is licensed, because the broker is responsible for all advertising by licensees. A salesperson cannot advertise as if acting independently, and the seller's name or original price is not required.

Arizona requires an applicant for an original real estate salesperson's license to complete a commissioner-approved prelicensure course of what length?

• a.One hundred classroom hours
• b.Ninety classroom hours✓
• c.One hundred twenty classroom hours
• d.Forty-five classroom hours

The salesperson course must be at least ninety classroom hours, or the equivalent, in a school certified by the Commissioner, and the applicant must pass an examination on the course with a score of at least 75 percent. Arizona sets the same ninety-hour figure for the broker course, so the broker/salesperson difference is experience, not course length. Cite: A.R.S. § 32-2124(B); A.A.C. R4-28-401(A)(1) (2026 ADRE Law Book).

An applicant who holds a current real estate license in another state asks ADRE to waive Arizona's prelicensure course. Which portion can never be waived?

• a.The six-hour contract writing class
• b.The national portion of the exam
• c.The fingerprint clearance card requirement
• d.The twenty-seven-hour Arizona-specific course✓

The Commissioner may waive all or a portion of the prelicensure course for an out-of-state licensee except the twenty-seven-hour Arizona-specific course. The national portion of the examination is the opposite case: an applicant holding at least an equivalent license elsewhere is exempt from it. Cite: A.R.S. § 32-2124(B), (C), (K); A.A.C. R4-28-401(A)(2).

How much continuing education must an Arizona real estate salesperson show to renew a license?

• a.24 credit hours each two-year license period✓
• b.30 credit hours each license period
• c.12 credit hours each license period
• d.24 credit hours during each calendar year

Salespersons and associate brokers accrue twenty-four credit hours during each twenty-four-month period of licensure, with a minimum of three hours in each mandatory category. Thirty hours is the figure the statute sets for designated brokers, not for salespersons. Cite: A.R.S. § 32-2130(A); A.A.C. R4-28-402(A)(2).

An Arizona salesperson severs from a brokerage and places the license on inactive status. What still applies while it is inactive?

• a.Continuing education must still be completed
• b.The license may be used for referral work only
• c.The license must still be renewed and the fee paid✓
• d.Inactive status ends ADRE jurisdiction

An inactive licensee need not complete continuing education until applying to return to active status, but inactive status does not relieve the licensee from renewing and paying the required fees. The holder may not perform any act requiring an active license, and the Commissioner keeps authority to discipline. Cite: A.A.C. R4-28-307(A), (D), (F); A.R.S. § 32-2130(K).

A.R.S. § 32-2165 makes unlicensed real estate activity a class 6 felony. Which person does that penalty NOT reach?

• a.A person who advertised as a licensed broker while never licensed
• b.A salesperson whose license lapsed eighteen months ago
• c.A salesperson who renewed late within a year through neglect✓
• d.An unlicensed assistant who negotiated a lease for a broker

The penalties do not apply to a broker or salesperson within a year of expiration when the failure to renew timely was unintentional neglect by the licensee or administrative untimeliness by the Department. Eighteen months is outside that window, and both advertising as a licensee without a license and performing licensed acts unlicensed fall squarely inside subsection A. Cite: A.R.S. § 32-2165(A), (C)(1).

ADRE asks an Arizona licensee for documents in a complaint investigation in which that licensee is not named. What must the licensee do?

• a.Nothing, because the licensee is not named in the complaint
• b.Respond only after the designated broker authorizes release
• c.Respond within thirty calendar days after the request
• d.Respond within fourteen calendar days of the request✓

A licensee shall respond within fourteen calendar days, or a later date determined by the Department, to a request from the Commissioner or the Commissioner's representative for documents, electronic files, written statements or other information required as part of a complaint investigation, regardless of whether the licensee is named in the complaint. Cite: A.A.C. R4-28-301(G).

After a hearing, what is the maximum civil penalty the Commissioner may assess a licensee for a violation of Title 32, Chapter 20?

• a.One thousand dollars for each infraction✓
• b.Five thousand dollars per lot
• c.Two thousand five hundred dollars each
• d.Ten thousand dollars for each violation

The cap on a licensee's civil penalty is one thousand dollars for each infraction, assessed by the Commissioner after a hearing. The larger figures belong to the subdivision article: a subdivider or agent faces up to $2,000 per infraction, and up to $5,000 per infraction for selling lots without first obtaining a public report. Cite: A.R.S. § 32-2160.01(A); compare A.R.S. § 32-2185.09(A), (C).

Within what time must an Arizona designated broker initial and date a purchase contract to evidence review?

• a.Within five business days after execution
• b.Within three banking days after execution
• c.Within ten business days after execution✓
• d.Before any earnest money reaches escrow

The designated broker reviews each listing agreement, purchase or nonresidential lease agreement within ten business days after execution, placing initials and the date on the same page as the parties' signatures; the broker may authorize an employed associate broker in writing to do it. A business day excludes Saturdays, Sundays and Arizona legal holidays. Three banking days is the property-management deposit deadline, not the review deadline. Cite: A.R.S. § 32-2151.01(G), (K).

How long must an Arizona employing broker keep the records of a completed real estate transaction?

• a.Three years after the transaction ends
• b.Five years after the transaction terminates✓
• c.Two years after the close of escrow
• d.Seven years after the close of escrow

Transaction records and employment records must be kept at least five years after the date the transaction or employment terminated, in the employing broker's principal or licensed branch office, or at an in-state off-site storage location whose street address the broker reported to the Department in advance. Cite: A.R.S. § 32-2151.01(A).

An offer on an Arizona listing is rejected and no contract ever results. How long must the broker keep it?

• a.It need not be retained after it is rejected
• b.At least five years as a matter of record
• c.Until the listing agreement term expires
• d.At least one year as a matter of record✓

The broker retains an original or a copy of any document evidencing a rejected offer for at least one year. The five-year figure applies to a different situation in the same subsection: where the negotiations did end in a binding contract, the prior rejected offers must be kept five years. Cite: A.R.S. § 32-2151.01(I).

An Arizona salesperson receives a buyer's earnest money check at an open house. What does the statute require of the salesperson?

• a.Promptly place it in the care of the designated broker✓
• b.Deposit it in the employing broker's trust account personally
• c.Hold it until the seller has accepted the offer
• d.Deliver it to a neutral escrow within three banking days

All licensees shall promptly place all cash, checks or other items of value received as payment in a real estate transaction in the care of the designated broker. The salesperson has no authority to make the deposit: withdrawal authority on a trust fund account is limited to licensees under that broker's license, and it is the broker who then places the money in escrow or a trust fund account. Cite: A.R.S. § 32-2151.01(B), (D); A.R.S. § 32-2151(A).

Who may a broker authorize to withdraw money from the broker's real estate trust fund account?

• a.Any bona fide employee of the brokerage firm
• b.The escrow officer named in the purchase contract
• c.Only a licensee under that broker's license✓
• d.Any person the broker designates in writing

A broker shall not grant any person authority to withdraw monies from the broker's trust fund account unless that person is a licensee under that broker's license. The one exception is property management: a designated broker may authorize a licensee or an unlicensed natural person in the broker's direct employ to sign on a property management trust account, which does not lessen the broker's responsibility for the money. Cite: A.R.S. § 32-2151.01(B); A.R.S. § 32-2174(C).

An Arizona property management firm receives rent that is not subject to dispute or contingency. When must the money be deposited?

• a.Within one banking day of actual receipt
• b.Within three banking days of receipt✓
• c.Within five business days after receipt
• d.By the end of the calendar month of receipt

Within three banking days after receiving monies not subject to dispute or contingency, the property management firm deposits them in either the owner's direct account or the firm's trust account for the owner's benefit. Note the unit is banking days, not business days. Cite: A.R.S. § 32-2174(D).

Which of these is expressly listed as a violation of Arizona's broker trust fund account requirements?

• a.Keeping $4,000 of the broker's own money in the account
• b.Paying an owner's disbursement from the trust account
• c.Failing to keep a separate ledger for each property✓
• d.Accepting a promissory note as earnest money

The statute lists failing to maintain separate ledgers for each property among the acts that constitute a violation, alongside failing to remove earned interest at least once every twelve months and failing to complete the monthly three-way reconciliation. Keeping not more than $5,000 of personal money to hold the account open or avoid a minimum-balance charge is expressly not commingling, and a promissory note is a permitted form of earnest money so long as its type is stated. Cite: A.R.S. § 32-2151(B)(3), (C)(1), (C)(2), (C)(4); A.R.S. § 32-2151.01(C).

A.A.C. R4-28-1101(A) states an Arizona licensee's core duties. Which pairing is correct?

• a.Fiduciary duty to the client, fair dealing with others✓
• b.Fiduciary duty owed equally to all parties
• c.Fair dealing with everyone, fiduciary duty to no one
• d.Fiduciary duty to the client and the employing broker only

A licensee owes a fiduciary duty to the client and shall protect and promote the client's interests; the licensee shall also deal fairly with all other parties to the transaction. The two duties are different in kind, and the duty of fair dealing runs to everyone else in the deal, not only to the licensee's own side. Cite: A.A.C. R4-28-1101(A).

An Arizona licensee wants to represent both the buyer and the seller in one transaction. What is required?

• a.Oral consent from both parties before the offer is written
• b.Written consent from the seller, who holds the listing
• c.Prior written consent of all parties to the transaction✓
• d.Notice to the designated broker, who decides

A licensee shall not accept compensation from or represent more than one party to a transaction without the prior written consent of all parties. Acting for more than one party without the knowledge or written consent of all is also an independent ground for the Commissioner to suspend or revoke a license. Cite: A.A.C. R4-28-1101(F); A.R.S. § 32-2153(A)(2).

An Arizona salesperson writes an offer on a listed home for the salesperson's own spouse. When must that relationship be disclosed?

• a.At closing, in the settlement statement
• b.In writing before the parties enter a binding agreement✓
• c.Only if the seller asks about the buyer's identity
• d.In writing within ten days after acceptance

A licensee shall not act directly or indirectly in a transaction without informing the other parties, in writing and before the parties enter any binding agreement, of a present or prospective interest or conflict. The listed conflicts include the licensee acting as a principal, the buyer or seller being a member of the licensee's or designated broker's immediate family, and any financial interest beyond the licensee's compensation. Cite: A.A.C. R4-28-1101(E).

When may an Arizona licensee contact a principal who is already represented by another licensee?

• a.At any time, so long as the contact is informational
• b.Any time after a written offer has been submitted
• c.Only with the designated broker's written consent
• d.After the other side is unavailable for 24 hours✓

A licensee may not contact a principal represented by another licensee unless that principal's designated broker, a broker representative with delegated authority, and the licensee are all unavailable for 24 hours. A principal may waive or alter the requirement by issuing written instructions. Cite: A.A.C. R4-28-1102(A).

When must an Arizona broker disclose in writing which employing brokers will be compensated from a transaction?

• a.At least three calendar days before closing✓
• b.At least three business days before closing
• c.At the time the purchase contract is executed
• d.Within three days after closing

A real estate broker shall disclose to all parties in a transaction, in writing at least three calendar days before closing, the name of each employing broker who represents a party and who will receive compensation from the transaction. The rule counts calendar days, so weekends and holidays are included in the three. Cite: A.A.C. R4-28-701.

An Arizona buyer asks to move into the property a week before closing. What does the professional conduct rule require?

• a.The listing broker's written approval
• b.Nothing, if the purchase contract is signed
• c.Express instruction from the property's owner✓
• d.Approval by the escrow company

A licensee shall not deliver possession prior to closing unless expressly instructed to do so by the owner of the property or property interest being transferred, and shall not permit or facilitate access or occupancy without prior written authorization from the owner. The licensee must also recommend the client seek insurance, legal, tax and accounting counsel about the risks of pre-possession or post-possession. Cite: A.A.C. R4-28-1101(J), (K).

Which statement about broker supervision under the Arizona Commissioner's Rules is correct?

• a.A designated broker may delegate overall supervisory responsibility away
• b.An employing broker is responsible for the acts of its licensees✓
• c.Supervision duties end once a transaction closes
• d.Written policies are recommended but not required

An employing broker is responsible for the acts of all licensees and other employees acting within the scope of their employment. A designated broker may use employees to help administer supervision but may not relinquish overall responsibility, and reasonable supervision requires written policies, procedures and systems, including a progressive disciplinary policy. Cite: A.A.C. R4-28-1103(A), (B), (D), (E).

An Arizona salesperson advertises a rental property that the salesperson personally owns. What must the advertisement contain?

• a.The property is being sold in as-is condition
• b.The seller is not represented by any brokerage
• c.A statement that ADRE rules do not apply here
• d.The words "owner/agent" appear in the ad✓

A licensee advertising their own or another licensee's property for sale, lease or exchange in Arizona shall disclose both the license and the ownership by placing the words "owner/agent" in the advertisement. A licensee may also never advertise property in a manner implying that no salesperson or broker is taking part. Cite: A.A.C. R4-28-502(A), (B).