Free Arizona Real Estate Practice Exam

Q1.Under federal environmental regulations, which of the following factors would most likely cause a significant decrease in property value during an appraisal?

• A.Proximity to a wetland area
• B.Discovery of asbestos-containing materials in the building
• C.Location within a flood zone
• D.Presence of lead-based paint

Q2.A property was purchased for $180,000 and sold for $225,000. What is the percentage of profit on the original investment?

• A.20%
• B.25%
• C.30%
• D.35%

Q3.Under ARS 32-2151, what must a designated broker do when terminating the association with a salesperson or associate broker?

• A.Provide 30 days written notice to the licensee only
• B.File termination notice with ADRE within 10 days
• C.Wait for the licensee to find new employment
• D.Return the physical license to ADRE immediately

Q4.According to Arizona Commissioner's Rules, which of the following best describes the relationship between a salesperson and their client regarding confidential information?

• A.Confidentiality ends when the transaction closes
• B.Confidentiality continues indefinitely unless the client consents to disclosure
• C.Confidentiality lasts only during active representation
• D.There is no duty of confidentiality for salespersons

Q5.Under the Truth-in-Lending Act (TILA), if a lender fails to properly disclose the Annual Percentage Rate (APR) on a mortgage loan, the borrower has the right to rescind the transaction for up to how long?

• A.3 business days from closing
• B.30 days from closing
• C.1 year from closing
• D.3 years from closing

Q6.Under the Commissioner's Rules, what must a designated broker do within 10 days of hiring a new salesperson or associate broker?

• A.Submit a license transfer application to ADRE
• B.File a Change of Employing Broker form
• C.Provide the licensee with office policy manual
• D.Complete a background check verification

Q7.Under the Fair Housing Act, which of the following would be considered a prohibited discriminatory practice in property use restrictions?

• A.Requiring a minimum income qualification of three times the monthly rent
• B.Prohibiting pets except for service animals
• C.Restricting occupancy to families without children under 18
• D.Requiring a security deposit equal to one month's rent

Q8.Under the Truth in Lending Act, which loan feature triggers the right of rescission for a borrower?

• A.The loan amount exceeds $100,000
• B.The borrower's principal residence serves as collateral
• C.The interest rate is adjustable rather than fixed
• D.The loan term exceeds 15 years

Q9.Which of the following is considered real property?

• A.A mobile home permanently attached to a foundation
• B.Trade fixtures installed by a commercial tenant
• C.A tenant's personal furniture
• D.Crops that are planted and harvested annually

Q10.According to A.R.S. § 32-2194.04, what is required when amending an Arizona purchase contract?

• A.Notarization of the amendment
• B.Written signatures of all parties
• C.Broker approval
• D.Recording with the county

Q11.A broker receives conflicting written demands for earnest money from a buyer and seller after a contract dispute. Under Arizona law, what action should the broker take?

• A.Release the funds to the party with the stronger legal position
• B.Retain the funds until receiving a court order or written agreement from both parties
• C.Split the funds equally between both parties
• D.Release the funds to the seller since they have superior rights

Q12.Under Arizona Commissioner's Rules, how often must a broker reconcile their trust account?

• A.Weekly
• B.Monthly
• C.Quarterly
• D.Annually

Q13.Under Arizona Revised Statutes Title 32 Chapter 20, what is the minimum number of years of experience as a licensed real estate salesperson required before applying for a broker's license?

• A.2 years
• B.3 years
• C.4 years
• D.5 years

Q14.A designated broker operates multiple branch offices. According to Arizona law, who may supervise salespersons at branch locations?

• A.Any licensed salesperson with 3+ years experience
• B.Only the designated broker personally
• C.A qualified branch manager or associate broker
• D.Licensed salespersons appointed by the designated broker

Q15.According to ARS 32-2153, a designated broker must maintain transaction records for how many years after the transaction closes or terminates?

• A.3 years
• B.4 years
• C.5 years
• D.7 years