Arizona Real Estate Broker Exam — All Questions

Under A.A.C. R4-28-1101(A), what does a licensee owe to the client and what is owed to everyone else in the transaction?

• a.Fair dealing with the client and silence toward all others
• b.A fiduciary duty to both the client and the other parties
• c.A duty of confidentiality to every party in the transaction
• d.A fiduciary duty to the client, fair dealing with others✓

A.A.C. R4-28-1101(A) states that 'a licensee owes a fiduciary duty to the client and shall protect and promote the client's interests. The licensee shall also deal fairly with all other parties to a transaction.' The two duties are deliberately different in kind: fiduciary loyalty runs only to the client, while everyone else in the deal is owed honesty and fair dealing. Extending fiduciary duty to the other side would put the licensee in an impossible position.

Which of these must an Arizona licensee disclose in writing to all other parties under A.A.C. R4-28-1101(B)?

• a.A known adverse material fact or defect in the property✓
• b.The commission split agreed with the cooperating broker
• c.The client's reason for selling or buying the property
• d.The client's lowest acceptable price in the negotiation

A.A.C. R4-28-1101(B) requires written disclosure to all other parties of any information the licensee possesses that materially or adversely affects the consideration to be paid, and lists four examples: that the seller or lessor may be unable to perform, that the buyer or lessee may be unable to perform, 'any known adverse material fact concerning the property or material defect existing in the property being transferred,' and the existence of a lien or encumbrance. A client's bottom line and motive are confidential and are protected by the fiduciary duty in subsection A.

When may an Arizona licensee accept compensation from, or represent, more than one party to a transaction?

• a.Only when the transaction is a commercial lease
• b.Whenever the licensee discloses it at closing
• c.Only with prior written consent of all parties✓
• d.Whenever both parties are separately represented

A.A.C. R4-28-1101(F) provides that 'a licensee shall not accept compensation from or represent more than one party to a transaction without the prior written consent of all parties.' Consent must be written and must come first, not at closing. A.R.S. 32-2153(A)(2) reinforces this by making acting for more than one party without the knowledge or written consent of all parties a ground for suspension or revocation of the licence.

What does A.A.C. R4-28-1101(E) require of a licensee who is acting as a principal in a transaction?

• a.Oral notice to the other parties at the first showing
• b.Written notice to the other parties before any binding agreement✓
• c.Notice to the Department within ten days of the contract
• d.Written notice to the other parties on the day of closing

A.A.C. R4-28-1101(E) bars a licensee from acting directly or indirectly in a transaction 'without informing the other parties in the transaction, in writing and before the parties enter any binding agreement, of a present or prospective interest or conflict.' The listed conflicts include that the licensee holds a licence and is acting as a principal, that the buyer or seller is in the licensee's or designated broker's immediate family, and that the licensee or an immediate family member has a financial interest beyond the ordinary commission.

An Arizona licensee is asked to handle a property type outside the licensee's field of competence. What does A.A.C. R4-28-1101(H) allow?

• a.Engaging a competent person, or disclosing first✓
• b.Accepting the work if the fee is reduced accordingly
• c.Accepting the work and learning on the transaction
• d.Referring the client to the Department for guidance

A.A.C. R4-28-1101(H) requires a licensee's services to meet the standards of practice and competence recognised in the professional community for that discipline, and forbids undertaking services on a property or service type outside the licensee's field of competence 'without engaging the assistance of a person who is competent to provide those services, unless the licensee's lack of expertise is first disclosed to the client in writing and the client subsequently employs the licensee.' Either route works; simply taking the work does not.

Under A.A.C. R4-28-1102, when may an Arizona licensee contact a principal who is represented by another licensee?

• a.After the other side is unavailable for a full day✓
• b.Only through the principal's own attorney of record
• c.At any time, provided the contact is put in writing
• d.After the other side has been unavailable for one week

A.A.C. R4-28-1102(A), as amended effective December 13, 2025, provides that licensees 'may not contact a principal represented by another licensee unless the principal's Designated Broker, broker representative with delegated authority, and the licensee are unavailable for 24 hours,' and lets a principal waive or alter the requirement by written instructions. Subsection B applies a matching rule to buyer-side negotiations. This is a live example of a Commissioner's Rule that changed after the 2019 broker outline was written.

What must an Arizona employing broker and designated broker put in place under A.A.C. R4-28-1103(A)?

• a.An errors and omissions policy for each licensee
• b.Written policies for reviewing all transactions✓
• c.A quarterly audit performed by an outside accountant
• d.A surety bond covering all licensees in the firm

A.A.C. R4-28-1103(A) defines reasonable supervision and control to include 'the establishment and enforcement of written policies, procedures, and systems' to review and manage transactions, disclosure forms and contracts, document filing and storage, handling of trust funds, use of unlicensed assistants and advertising, and to review and inspect documents and licensee advertising. No bond, outside audit or errors and omissions policy is imposed by the rule.

Which small brokerage is excused from maintaining the written policies required by A.A.C. R4-28-1103(A)?

• a.Any brokerage that has never been disciplined by the Department
• b.Any brokerage whose gross commissions are under $250,000
• c.One office with a designated broker and up to five licensees
• d.One office with a designated broker, one licensee and one assistant✓

A.A.C. R4-28-1103(G) provides that if an employing broker 'maintains one office and employs a designated broker, no more than one other licensed person, and no more than one unlicensed person, the employing broker and designated broker are not required to develop and maintain written policies, procedures, and systems as described in subsection (A).' The exemption is drawn by headcount and office count, not by revenue or disciplinary history, and it does not relieve the broker of the duty to supervise.

A designated broker learns that a supervised licensee has violated a real estate statute. What does A.A.C. R4-28-1103(F) provide?

• a.The broker must suspend the licensee pending a Department hearing
• b.The broker must terminate the licensee within ten business days
• c.The broker becomes jointly liable for any civil penalty imposed
• d.Immediate reporting to the Department shields the broker from that charge✓

A.A.C. R4-28-1103(F) states that a designated broker who, on learning of a violation of real estate statutes or rules by a supervised licensee, 'immediately reports the violation to the Department is not subject to disciplinary action by the Department for failure to supervise the licensee.' The protection is specific: it covers the supervision charge, and it is earned by reporting immediately. Subsection D still makes the employing broker responsible for the acts of licensees within the scope of their employment.

Under A.A.C. R4-28-502(B), what must a licensee who advertises property the licensee owns include in the advertisement?

• a.The licence number of the salesperson
• b.The words 'owner/agent' in the advert✓
• c.The words 'for sale by owner'
• d.The name of the escrow company used

A.A.C. R4-28-502(B) requires any licensee advertising their own or another licensee's property for sale, lease or exchange in Arizona to disclose that they are licensed as a salesperson or broker, and as the property owner, 'by placing the words "owner/agent" in the advertisement.' Subsection A separately forbids advertising property in a way that implies no salesperson or broker is taking part in the offer, which is what a bare 'for sale by owner' line would do.

What must appear in a clear and prominent manner in every Arizona licensee's advertising under A.A.C. R4-28-502(E)?

• a.The employing broker's legal name or the licensed d.b.a. name✓
• b.The licensee's own name and mobile telephone number
• c.The Department of Real Estate complaint telephone number
• d.The address of the office where the listing is held

A.A.C. R4-28-502(E) requires a licensee to ensure that all advertising 'identifies in a clear and prominent manner the employing broker's legal name or the d.b.a. name or names contained on the employing broker's license certificate.' Subsection G puts the accountability with the designated broker, who 'is responsible for the advertising of all real estate activity.' The rule is about identifying the firm behind the advertisement, not the individual licensee's contact details.

When may an Arizona licensee use the word 'acre' in advertising under A.A.C. R4-28-502(H)?

• a.Only for an area of at least 40,000 square feet
• b.Only for an area of at least 43,560 square feet✓
• c.Only for an area shown on a recorded plat
• d.Only for an area of at least one hectare

A.A.C. R4-28-502(H) provides that 'a licensee shall not use the term "acre," either alone or modified, unless referring to an area of land representing at least 43,560 square feet.' That figure is the statutory acre and is one of the values the Pearson VUE handbook tells Arizona candidates to memorise for the examination, since it is not supplied at the test centre. A modified form such as 'ranch acre' is caught by the same rule.

Before placing a for-sale sign on a property, what does A.A.C. R4-28-502(I) require an Arizona licensee to obtain?

• a.The oral consent of the property owner
• b.The written consent of the property owner✓
• c.A sign permit from the local jurisdiction
• d.The written consent of the homeowners association

A.A.C. R4-28-502(I) requires that 'before placing a sign or publishing to an electronic medium giving notice that specific property is being offered for sale, lease, rent, or exchange, a licensee shall secure the written consent of the property owner,' and that the sign or publication 'shall be promptly removed upon request of the property owner.' The same written-consent requirement covers online listings, not just physical signs.

How does A.A.C. R4-28-503(A) restrict the way a licensee describes a promotional premium?

• a.It may not be worth more than one hundred dollars
• b.It may not be offered outside a licensed office
• c.It may not be described as an award or a prize✓
• d.It may not be advertised in a printed newspaper

A.A.C. R4-28-503(A) provides that 'a licensee shall not describe a premium offered at no cost or reduced cost to promote sales or leasing as an "award," or "prize," or use a similar term.' Subsection B requires the terms, costs, conditions, restrictions and expiration date of a premium offer to be disclosed to the person in writing before they take part. Subsection C bars soliciting or selling an interest in a development by lottery, contest, drawing or game of chance unless otherwise provided by law.

Under A.A.C. R4-28-701, when must an Arizona broker disclose the employing brokers who will be compensated from a transaction?

• a.In writing, three calendar days before the closing✓
• b.Orally at the time the purchase contract is signed
• c.In writing within three calendar days after closing
• d.In writing at least ten calendar days before closing

A.A.C. R4-28-701 requires a real estate broker to disclose 'to all the parties in a transaction, in writing at least three calendar days before closing, the name of each employing broker who represents a party to the transaction and who will receive compensation from the transaction.' The rule was amended effective December 13, 2025. The disclosure is about who is being paid out of the deal, and it must land before closing, not after.

What is the minimum number of continuing education hours an Arizona licensee must take in each mandatory category?

• a.Two full hours
• b.Six hours
• c.Three hours✓
• d.Four hours

A.A.C. R4-28-402(A)(2) requires a renewing salesperson or associate broker to 'complete a minimum of three hours in each of the mandatory categories under subsections (A)(5)(a) through (A)(5)(h),' then to make up the balance of the twenty-four hours from those categories or from business brokerage or general real estate. The mandatory categories are agency law, contract law, requirements for licensees, real estate legal issues, fair housing and the Americans with Disabilities Act, disclosure, and the two catch-all categories.

Which of these is a listed mandatory continuing education category under A.A.C. R4-28-402(A)(5)?

• a.Mortgage loan origination and underwriting
• b.Residential construction and building inspection
• c.Commercial appraisal and highest and best use
• d.Fair housing and the Americans with Disabilities Act✓

A.A.C. R4-28-402(A)(5) lists the categories for Arizona real estate continuing education, and subsection (A)(5)(e) is 'Fair housing and Americans with Disabilities Act,' covering equal opportunity, ADA architectural design, Arizona civil rights laws and federal fair housing laws, deed restrictions, affordable and elder housing, and administrative procedures and disparate impact. Construction inspection, loan underwriting and commercial appraisal are not named as categories in the rule.

Under A.A.C. R4-28-401(A), which part of Arizona prelicensure education can never be waived?

• a.The six-hour contract writing class for salespersons
• b.The nine-hour broker management clinic requirement
• c.The twenty-seven-hour Arizona-specific prelicensure course✓
• d.The thirty-hour agency and contract law segment

A.A.C. R4-28-401(A)(2) lets an applicant 'apply for and be granted a waiver of the prelicensure courses' with one carve-out: 'except for the 27-hour Arizona-specific course.' A.R.S. 32-2124(B) and (C) say the same thing for salesperson and broker applicants who hold a current licence in another state. Arizona will credit outside education and experience, but it will not excuse anyone from the block of instruction on Arizona law and practice.