Arizona Real Estate Salesperson Exam — All Questions

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.

What are the payment limits on the Arizona Real Estate Recovery Fund?

• a.$20,000 per transaction, $60,000 per licensee
• b.$30,000 per claimant, $30,000 per deal
• c.$30,000 per transaction and $90,000 per licensee✓
• d.$50,000 per transaction with no licensee cap

The fund's liability is capped at thirty thousand dollars for each transaction, regardless of the number of persons aggrieved or the number of licensees or parcels involved, and ninety thousand dollars for each licensee. Once orders authorizing payments reach that aggregate, the fund's liability for that licensee's acts is terminated. Cite: A.R.S. § 32-2186(B), (C).

Who is barred outright from recovering from the Arizona Real Estate Recovery Fund?

• a.A buyer who hired an attorney for the case
• b.A claimant who settled part of the judgment
• c.A buyer whose judgment was entered by default
• d.A licensee acting as a principal in the deal✓

A licensee acting as a principal or agent in a real estate transaction has no claim against the fund, and neither do marital communities, corporations, limited liability companies or partnerships in which the licensee is a principal, member, general partner, officer or director, or in which the licensee holds a direct or indirect interest of at least ten percent. Reasonable attorney fees and court costs are payable, settlement amounts are deducted rather than disqualifying, and a judgment obtained after service by publication is expressly enforceable against the fund. Cite: A.R.S. § 32-2186(A), (D); A.R.S. § 32-2188(B), (E)(8)(h).

The Commissioner orders a payment from the Recovery Fund on a judgment against an Arizona licensee. What happens to that licensee's license?

• a.It ends until the judgment and fund are repaid in full✓
• b.It is suspended for twelve months from the payment date
• c.It continues, but a civil penalty is also assessed
• d.It goes inactive until the appeal period expires

All of the judgment debtor's licenses and license rights under Title 32, Chapter 20 are terminated effective on the date of payment, and the person is not eligible to apply for reinstatement until the underlying judgment is satisfied and the fund reimbursed for the payment, including interest at the prevailing legal rate. The debtor has thirty calendar days after receiving the notice to petition the superior court for judicial review. Cite: A.R.S. § 32-2188.04(D)(2), quoting A.R.S. § 32-2188(I).

An Arizona buyer asks the licensee whether anyone has died in the house. What does A.R.S. § 32-2156 provide?

• a.The licensee must disclose any death within five years
• b.No action lies for failing to disclose a death there✓
• c.The seller must disclose but the licensee need not
• d.Disclosure is required only if the death was a homicide

No criminal, civil or administrative action may be brought against a transferor, lessor or licensee for failing to disclose that the property is or has been the site of a natural death, suicide, homicide or any other felony; was owned or occupied by a person exposed to HIV or diagnosed with AIDS or another disease not transmitted through common occupancy; or is located in the vicinity of a sex offender. That failure is also not grounds to terminate or rescind the transaction. Cite: A.R.S. § 32-2156(A), (B).

An Arizona homeowner sends the builder a written construction defect notice under the Purchaser Dwelling Act. What is the builder's deadline?

• a.Thirty days to send a good faith written response
• b.Ninety days to complete the repairs or replacements
• c.Sixty days to send a good faith written response✓
• d.Ten days to state whether it intends to repair

Within sixty days after receipt of the purchaser's notice, the seller shall send a good faith written response by certified mail, return receipt requested, which may include a notice of intent to repair or replace or an offer of monetary compensation. If no written response comes within sixty days, the purchaser may file a dwelling action. The ten-day figure is the purchaser's own deadline to make the dwelling available for inspection after a request. Cite: A.R.S. § 12-1363(B), (C), (D).

Does the Arizona Purchaser Dwelling Act's definition of "seller" reach a real estate licensee?

• a.Yes, for any licensee involved in the sale
• b.No, not one who handles a dwelling's resale✓
• c.Yes, if the licensee also holds a contractor license
• d.No, unless the licensee drafted the purchase contract

"Seller" means any person or entity engaged in the business of designing, constructing or selling dwellings, including construction professionals, but it does not include a real estate broker or real estate salesperson as defined in A.R.S. § 32-2101 who provides services in connection with the resale of a dwelling following its initial sale. A licensee's exposure on a resale runs through Title 32 and the Commissioner's Rules instead. Cite: A.R.S. § 12-1361(10).

What is the status of the seller property disclosure statement (SPDS) under Arizona's real estate statutes and Commissioner's Rules?

• a.A.R.S. Title 32 requires it in every resale
• b.The Commissioner's Rules prescribe its form
• c.It replaces the licensee's own disclosure duty
• d.Neither mandates it; the rule states the duty✓

Neither A.R.S. Title 32, Chapter 20 nor A.A.C. Title 4, Chapter 28 names or requires an SPDS; the form is an industry document, and no reference to it appears in the 2026 ADRE Law Book. The licensee's own duty is independent of any form: disclose in writing to all other parties any information the licensee possesses that materially or adversely affects the consideration, including any known adverse material fact or material defect in the property and the existence of a lien or encumbrance. Cite: A.A.C. R4-28-1101(B).