Arizona Real Estate Broker Exam — All Questions

In Arizona, every licensed real estate entity (brokerage) must have a:

• a.Salesperson designated to hold the trust account
• b.Designated broker who is responsible for supervising the brokerage and its licensees✓
• c.Notary public on staff at all times
• d.Certified appraiser reviewing each listing

Arizona law requires each brokerage entity to have a designated broker: a licensed broker who is legally responsible for the supervision and control of the brokerage's operations and its affiliated licensees. This concentrated supervisory accountability is the heart of Arizona broker regulation and a major reason the broker exam is harder than the salesperson exam.

An Arizona designated broker's supervisory duty over affiliated licensees generally requires the broker to:

• a.Establish written policies and review transaction documents to ensure compliance with Arizona law✓
• b.Personally negotiate every contract
• c.Guarantee each licensee a minimum income
• d.Hold a separate license for each branch salesperson

The designated broker must exercise reasonable supervision and control, which Arizona interprets to include written policies, procedures for reviewing transaction documents, and oversight of trust accounts and advertising. The broker does not have to negotiate every contract or guarantee income. Inadequate supervision is a frequent basis for ADRE discipline against the designated broker.

The 9-hour Broker Management Clinic required of Arizona brokers is intended primarily to:

• a.Teach basic contract writing to new salespersons
• b.Satisfy the appraisal license requirement
• c.Prepare and update brokers on their supervisory and management responsibilities✓
• d.Replace the need for continuing education

Arizona requires the Broker Management Clinic (BMC) to prepare brokers for, and keep them current on, their management and supervisory responsibilities as designated or self-employed brokers. It focuses on running a compliant brokerage, not basic salesperson skills, and does not replace the general continuing education requirement.

If an affiliated licensee at an Arizona brokerage mishandles earnest money, who does ADRE hold responsible for the brokerage's supervision failure?

• a.The buyer's lender
• b.The county recorder
• c.Only the affiliated licensee, never the broker
• d.The designated broker, in addition to the licensee who mishandled the funds✓

Because the designated broker is responsible for supervising the brokerage, ADRE can discipline the designated broker for a supervision failure in addition to disciplining the licensee who mishandled the funds. This shared accountability is why Arizona brokers must implement systems to oversee trust funds and transactions.