Arizona Real Estate Salesperson Exam — All Questions

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 buyer and seller sign a counteroffer in the licensee's office. What must the licensee do with the signed document?

• a.Deliver copies when escrow closes
• b.Expeditiously deliver a legible copy to each signer✓
• c.Deliver a copy to the escrow agent only
• d.Keep the original and give copies on request

On execution of any transaction document, a licensee shall expeditiously deliver a legible copy of the signed document and final agreement to each party signing it. The duty attaches at signature, not at closing, and does not depend on a request. Cite: A.A.C. R4-28-802(A).

An Arizona seller has accepted an offer. A second, higher offer arrives before closing. What must the listing licensee do?

• a.Hold it until the first contract falls through
• b.Present it only if the first buyer's loan fails
• c.Return it to the offeror as untimely now
• d.Submit it to the seller before closing✓

A licensee shall submit to the client all offers made prior to closing and is not released from that duty by the client's acceptance of an earlier offer, unless the client instructs the licensee in writing to cease submitting offers or the listing, lease or purchase contract provides otherwise. A licensee may even submit offers after the listing agreement is terminated. Cite: A.A.C. R4-28-802(B).

An Arizona buyer offers a promissory note as earnest money. What does A.R.S. § 32-2151.01 require?

• a.The contract or receipt must state the type received✓
• b.The note must be converted to cash before acceptance
• c.A note may not be used as earnest money in Arizona
• d.The note must be deposited with a neutral escrow agent

A broker shall specifically state in the real estate purchase contract, lease agreement or earnest money receipt the type of earnest money received, whether it is cash, a check, a promissory note or any other item of value. Arizona does not forbid a note as earnest money; it requires that the seller learn what was actually tendered. Cite: A.R.S. § 32-2151.01(C).

A buyer signs a contract to purchase an unimproved subdivided lot in Arizona. What rescission right does the statute give?

• a.Three business days from execution
• b.No statutory right of rescission exists here
• c.Until midnight of the seventh calendar day✓
• d.Until the public report is delivered

A contract to purchase or lease an unimproved lot or parcel may be rescinded by the purchaser without cause of any kind by written notice sent or delivered by midnight of the seventh calendar day following the day the purchaser executed the agreement, and the required rescission language must appear in bold or larger print above the signature portion. Cite: A.R.S. § 32-2185.01(D); A.A.C. R4-28-804(A).

An Arizona buyer purchased an unimproved lot without ever visiting it. What additional right does the statute give that buyer?

• a.A full refund at any time before the deed is recorded
• b.A six-month period to inspect and then rescind✓
• c.A survey at the seller's expense on demand
• d.A thirty-day period to inspect and rescind

A buyer who has not inspected an unimproved lot or parcel before executing the purchase agreement has six months after execution to inspect it and, at the time of inspection, the right to unilaterally rescind. The buyer signs an affidavit at inspection stating the lot was inspected, which the Commissioner may require to be filed with the Department. Cite: A.R.S. § 32-2185.01(E); A.A.C. R4-28-804(A).

Arizona requires a written contract for a newly constructed dwelling to carry a specific notice. What does that notice tell the buyer?

• a.That the builder's warranty runs for ten years
• b.That arbitration is the only available remedy
• c.That the buyer waives all defect claims at closing
• d.That a complaint may be filed with the Registrar✓

The contract shall contain, or provide separate notice of, the buyer's right to file a written complaint against the homebuilder with the Arizona Registrar of Contractors within two years after close of escrow or actual occupancy, whichever occurs first. The notice must be prominently displayed in at least ten-point bold type, and the buyer is not deemed to have received it unless the buyer initials it. Cite: A.R.S. § 12-1365; A.R.S. § 32-1155.

An Arizona seller is selling one of four parcels split from a larger tract in an unincorporated area of a county. What does the law require?

• a.An affidavit of disclosure at least seven days early✓
• b.A subdivision public report issued by the Commissioner
• c.A county-approved final plat before any transfer
• d.An affidavit of disclosure at the closing table

A seller of five or fewer parcels of land, other than subdivided land, in an unincorporated area of a county must complete and furnish a written affidavit of disclosure to the buyer at least seven days before the transfer, in twelve-point type, and record it when the deed is recorded. The buyer may rescind for five days after the affidavit is furnished, and a waiver of the seller's liability for an omission in it is not binding on the buyer. Cite: A.R.S. § 33-422(A) through (E).