Arizona Real Estate Broker Exam — All Questions

How must an Arizona broker keep the trust fund account records under A.R.S. 32-2151(B)(2)?

• a.In any format the designated broker considers convenient
• b.According to generally accepted accounting principles, with a client ledger✓
• c.On paper only, since electronic records are not accepted
• d.In the format prescribed by the broker's outside auditor

A.R.S. 32-2151(B)(2) requires a broker to retain a complete record of all money received in connection with a real estate transaction, and provides that 'a broker's records shall be kept according to generally accepted accounting principles and shall include properly descriptive receipts and a disbursement journal and client ledger.' Computerised records are expressly permitted, provided they are kept so they can be reconstructed if the electronic data is destroyed.

Which trust account practice does A.R.S. 32-2151(C) treat as a violation?

• a.Keeping the account at a federally insured in-state depository
• b.Failing to maintain separate ledgers for each of the properties✓
• c.Removing earned interest from the account every six months
• d.Reconciling the account at the end of every calendar month

A.R.S. 32-2151(C)(4) lists 'failing to maintain separate ledgers for each property' as a violation, alongside failing to remove interest at least once every twelve months, commingling beyond the $5,000 allowance, failing to identify non-owner tenant money in receipts, failing to reconcile regularly, transferring money between accounts owned by different persons without written consent, failing to create checks and balances, and failing to follow state or federal requirements. A federally insured in-state account and monthly reconciliation are exactly what the statute requires.