8 questions

Regulatory Framework

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.

Regulatory Framework

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).

Regulatory Framework

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).

Regulatory Framework

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).

Regulatory Framework

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).

Regulatory Framework

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).

Regulatory Framework

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).

Regulatory Framework

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).

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