Arizona Real Estate Broker Exam — All Questions

Under Arizona law and the Commissioner's Rules, broker trust funds (such as earnest money the broker holds) must be:

• a.Deposited into the broker's personal account until closing
• b.Kept in a separate designated trust account and not commingled with the broker's own funds✓
• c.Converted to a cashier's check and mailed to ADRE
• d.Held in cash in the office safe

Arizona requires brokers to place trust funds in a designated trust account, keep accurate records, and avoid commingling client money with the broker's own operating or personal funds. Commingling and conversion of trust funds are serious violations. The designated broker is responsible for proper trust-account handling and reconciliation.

In Arizona, a written property management agreement between an owner and a brokerage is:

• a.Optional and usually oral
• b.Required only for commercial property
• c.Required, and the managing broker must account for the owner's funds through a trust account✓
• d.Prohibited unless the property has more than four units

Arizona requires a written property management agreement, and rents and deposits collected on the owner's behalf must be handled through a trust account with proper records. The designated broker is accountable for property-management trust funds just as for sales earnest money. This applies to residential as well as commercial management.

How often must an Arizona broker reconcile the brokerage trust account?

• a.On a regular (typically monthly) basis, comparing the account to the ledgers of individual beneficiaries✓
• b.Only when ADRE requests an audit
• c.Once at the time the account is opened
• d.Never, if a bank statement is retained

Arizona brokers must reconcile the trust account regularly (commonly monthly), matching the bank balance to the total owed to individual beneficiaries recorded in the ledgers. Reconciliation catches shortages, errors, or commingling early. The designated broker's supervisory duty includes ensuring these reconciliations are performed and documented.