Math, Records, Business Accounting and ADRE Audits
Math calculations is 11 of the 177 counted items, second only to the statutes and the rules. It sits with ADRE audits (5), the cooperative nature of real estate (2) and business accounting (2).
The figures to memorise
The Arizona candidate handbook states that 43,560 square feet per acre and 5,280 feet per mile are not supplied at the test centre and must be memorised. It also states that where a question requires a proration the question itself will specify whether to use a 360-day or a 365-day year and whether the day of closing belongs to the buyer or the seller, so neither convention should be assumed. A section is 640 acres, so a quarter of a quarter section is 40 acres.
Trust records and business accounting
A broker's records must be kept according to generally accepted accounting principles and must include descriptive receipts, a disbursement journal and a client ledger, with computerised records kept so they can be reconstructed (A.R.S. 32-2151(B)(2)). Failing to maintain separate ledgers for each property, failing to remove earned interest at least once every twelve months, and transferring money between accounts owned by different persons without written consent are each violations under subsection C.
Records retention and Department audits
Transaction and employment records must be kept at least five years after the transaction or employment ends and must be open at all reasonable times to the commissioner (A.R.S. 32-2151.01(A)). Rejected offers are kept one year, or five years where a binding contract resulted. Property management financial records run three years, and residential rental agreements one year after expiry (A.R.S. 32-2175). On a routine audit the Department is limited to areas that bear materially on the audit's accuracy, unless a violation is suspected.
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State-specific details
State exam facts
- State regulator
- Arizona Department of Real Estate (ADRE)
- Exam vendor
- Pearson VUE
- Prelicensing education
- 90 hours of ADRE-approved broker education
- Passing score
- 75%
- Scored questions
- 180
- Time limit
- 315 minutes
Who regulates real estate brokers in Arizona?
The Arizona Department of Real Estate (ADRE) licenses brokers and salespersons. ADRE contracts with Pearson VUE to deliver the licensing exams.
What experience do I need before the Arizona broker exam?
A.R.S. § 32-2124(A)(1) requires an original broker applicant to have been an active licensed real estate salesperson or broker for at least three years during the five years immediately preceding application — the statute counts active licensure, not hours worked, so there is no full-time test. The applicant must also complete a 90-classroom-hour broker course at a commissioner-certified school and pass an examination on it (§ 32-2124(C)); the 27-hour Arizona-specific portion of that course cannot be waived. Under § 32-2136 a broker management clinic consists of three courses of three hours each, and an original broker license applicant must attend one before activating the license.
How is the Arizona broker exam structured?
The Arizona broker exam is administered by Pearson VUE with 180 scored questions (plus 15 unscored pretest items) over about 5 hours 15 minutes, and a score of 75% or higher is required to pass.
Sources: https://azre.gov, https://www.pearsonvue.com/us/en/az/realestate.html
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