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Most real estate exam failures share a common thread: the candidate didn't know what they were actually being tested on. They studied hard — but for the wrong mix of topics, or with materials that didn't match their state's actual exam content outline.
This guide breaks down exactly what's on the real estate exam: both the national portion that applies in every state and the state-specific portion that trips up candidates who rely on generic prep courses. For Arizona candidates, we also cover the specific ADRE content outline topics you need to know cold.
The real estate licensing exam has two distinct sections administered in a single testing session:
National Portion: Tests real estate principles and practices that apply across all 50 states
State Portion: Tests laws, regulations, and practices specific to your state
Both portions are scored separately. You must pass both to receive a license — failing one means retaking the entire exam. This structure is why candidates who prepare only with national content fail the state portion at disproportionately high rates.
The national portion typically contains 80–100 scored questions covering 8 major content areas. Question percentages are based on the PSI National Real Estate Content Outline.
Classes and characteristics of property (real vs. personal, fixtures)
Land characteristics and legal descriptions (metes and bounds, lot and block, rectangular survey)
Encumbrances: easements, liens, deed restrictions, encroachments
Types of ownership: severalty, tenancy in common, joint tenancy, community property
Government rights: taxation, eminent domain, escheat, police power (PETE)
Zoning classifications and variances
Building codes and permits
Environmental regulations: CERCLA, LUST, wetlands
Subdivision regulations and plat maps
Appraisal methods: sales comparison, cost approach, income approach
Principles of value: supply and demand, substitution, highest and best use
Comparative Market Analysis (CMA) vs. formal appraisal
Depreciation types: physical, functional, external
Mortgage types: conventional, FHA, VA, USDA, adjustable-rate
Loan concepts: LTV, DTI, points, origination fees, amortization
Federal lending laws: RESPA, TILA (Truth-in-Lending), ECOA, HMDA
Foreclosure types: judicial vs. non-judicial, deed in lieu
Seller financing: land contracts, wraparound mortgages
Agency relationships: buyer's agent, seller's agent, dual agent, transaction broker
Fiduciary duties: COALD (Care, Obedience, Accounting, Loyalty, Disclosure)
Agency creation, ratification, and termination
Listing agreement types: exclusive right to sell, exclusive agency, open listing
Buyer representation agreements
Seller disclosure requirements: material facts, latent vs. patent defects
Lead-based paint disclosure (pre-1978 properties)
Stigmatized properties and state disclosure variations
Environmental hazards: asbestos, radon, mold, underground storage tanks
Elements of a valid contract: offer, acceptance, consideration, capacity, legality
Contract types: bilateral, unilateral, express, implied, executory, executed
Purchase and sale agreements: contingencies, earnest money, closing date
Option contracts and right of first refusal
Contract assignment and novation
Breach of contract remedies: specific performance, rescission, liquidated damages
Deed types: warranty, grant, quitclaim, bargain and sale
Title: abstract, title insurance, chain of title
Closing process: proration, HUD-1, Closing Disclosure, TRID
Liens: priority, recording, satisfaction
Involuntary property transfers: adverse possession, condemnation
License law: requirements, renewal, reciprocity
Broker and salesperson relationships: supervision, independent contractor
Real estate math: commission splits, proration calculations, profit/loss
Anti-trust laws: price-fixing, market allocation, group boycotting
NAR Code of Ethics overview
Commission calculations: listing price × commission rate × split
Proration: taxes, HOA dues, insurance at closing
Loan-to-value ratio
Depreciation (straight-line method)
Capitalization rate and net operating income
Equity calculation
The Arizona state exam portion tests laws and practices specific to Arizona real estate. This is where many candidates — even those who prepared well for the national portion — run into trouble. Arizona's state content is detailed and includes topics not covered in generic national prep courses.
This is the foundational Arizona real estate statute. Expect questions on: licensing requirements and categories, grounds for disciplinary action, ADRE complaint and investigation process, Commissioner Rules (A.A.C. R4-28), and the Real Estate Recovery Fund.
Arizona's agency disclosure requirements and timing
Buyer-Broker Representation Contract (BRBC)
Seller's Broker Subagency Agreement (SBSA)
Arizona's dual agency disclosure rules
Non-agency (transaction broker) in Arizona
AAR Residential Resale Real Estate Purchase Contract — sections, contingencies, and standard terms
Arizona-specific addenda: HOA addendum, buyer contingency addendum
Seller's Property Disclosure Statement (SPDS) requirements
Arizona Buyer Advisory — required delivery, content, and liability
Death, disease, and stigmatized property disclosure (Arizona is a limited disclosure state)
Affidavit of Disclosure — required for rural properties in unincorporated areas
Airport Influence Area and military installation disclosure
CC&R and HOA disclosure requirements
This is a topic with no national equivalent. Arizona has a complex water law framework including: Active Management Areas (AMAs) and the Arizona Department of Water Resources (ADWR), Certificates of Assured Water Supply (CAWS) required for subdivisions in AMAs, private well disclosures, irrigation water rights vs. municipal water, and the Colorado River Compact allocations affecting Arizona water availability.
Salesperson vs. broker licensing distinctions in Arizona
Pre-license education: 90 hours for salesperson
Fingerprinting and background check requirements (DPS)
Employing broker supervision requirements
License renewal: 24 hours of CE every 2 years, including mandatory topics
Arizona School Code and ADRE-approved school requirements
Based on student performance data across thousands of practice exams, the topics with the highest miss rates are:
Easement types and appurtenance — candidates confuse easement appurtenant, easement in gross, and easement by necessity
Agency disclosure timing — especially first contact requirements in Arizona
Financing calculations — proration math and loan-to-value are consistently missed by candidates who avoid practice
Deed types — the distinction between warranty deed covenants and quitclaim deed scope is frequently tested
Water rights in Arizona — the AMA framework and CAWS requirements catch unprepared candidates completely off guard
Dual agency rules — both disclosure requirements and the ethical obligations in dual agency scenarios
This varies by state. Most states have 130–180 total questions split between national and state portions. Arizona's exam has 180 questions (150 scored, 30 pretest), with a 3.5-hour time limit. The national portion in most states contains 80–100 questions; the state portion contains 30–40 questions.
Contracts is typically the largest single content area on the national portion, accounting for approximately 17% of national questions. This makes it the highest-leverage topic to study — strong contract knowledge alone can significantly improve your national score.
Yes. Real estate calculations account for approximately 10% of the national exam. Common question types include commission calculations, proration, loan-to-value, and depreciation. These questions are entirely winnable with practice — and are frequently missed by candidates who avoid math during prep.
The Arizona state portion tests Arizona-specific topics that don't appear in national prep materials: ADRE statutes, Arizona agency disclosure requirements, AAR contract forms, water rights law (AMA framework, CAWS), and Arizona-specific disclosures. Candidates who prepare only with national content are unprepared for 30–40 questions on the state portion.
Start with your content outline and identify the highest-weight topics (contracts, agency, financing, practice of real estate). Use a diagnostic practice exam to identify your weakest areas early. Build a study schedule that weights your time toward high-frequency topics and your personal weak spots. Finish your prep with at least 3 full-length timed practice exams before scheduling.
Understanding the exam content outline is the foundation of effective preparation. Click2CE's ExamReady builds your question bank directly from the PSI national content outline and the ADRE Arizona content outline — so every practice question you answer is a question type that appears on the actual exam.
Start with a free diagnostic practice exam today. Identify your weakest topics in 30 minutes, then build a study plan around them. $59 flat, Pass Guarantee included.
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