Free Arizona Real Estate Practice Exam

Q1.Which statement accurately describes the civil penalty in A.R.S. § 32-2160.01?

• A.Up to $1,000 per infraction
• B.Exactly $1,000 per day for every violation
• C.No monetary penalty is authorized
• D.Only a court may impose a penalty exceeding $50

Q2.What plumbing pipe material was commonly used in Arizona homes built before 1986 and poses health risks?

• A.Copper
• B.Galvanized steel
• C.Polybutylene
• D.Polyvinyl chloride (PVC)

Q3.A condominium owner holds which type of estate in the individual unit and common areas respectively?

• A.Life estate in the unit, easement in common areas
• B.Leasehold in the unit, license in common areas
• C.Fee simple in the unit, tenancy in common in common areas
• D.Fee simple in the unit, easement appurtenant in common areas

Q4.Which of the following best defines 'constructive notice' in the context of Arizona material fact disclosure?

• A.Information that is publicly available in recorded documents or public records and that parties are presumed to know even without actual notice
• B.Only information the seller personally tells the buyer
• C.Only information contained in the SPDS
• D.Information disclosed verbally by the agent at the first showing

Q5.Individual client liabilities total $25,300, but the adjusted bank balance and trust ledger each show $25,000. What is the best description?

• A.The account is fully reconciled
• B.There is a $300 shortage or overstated liability requiring investigation
• C.The broker may reduce any owner's ledger by $300
• D.The difference is immaterial if monthly fees exceed $300

Q6.The Arizona Department of Real Estate can discipline a licensee for deed fraud involvement because:

• A.A.R.S. § 32-2153 prohibits dishonest, fraudulent, or unlawful conduct in real estate practice, giving ADRE broad disciplinary authority
• B.ADRE only disciplines licensees for violations of the AAR Code of Ethics
• C.Deed fraud is exclusively a federal crime and ADRE has no jurisdiction
• D.Only the county recorder has authority to discipline real estate professionals

Q7.Under the post-NAR-settlement buyer-broker agreement, if a buyer's agent earns more from the seller than the amount specified in the agreement, the agent must:

• A.Keep the difference as a bonus
• B.Donate the excess to a charitable organization
• C.Notify ADRE of the overage within 30 days
• D.Refund the excess to the buyer or credit it toward costs

Q8.A seller asks the agent to include 'quiet neighborhood' in the listing description. What is the fair housing concern?

• A.No concern; 'quiet' is a property feature
• B.'Quiet neighborhood' has been identified as a potentially coded phrase signaling preference against families with children (familial status) and should be used with caution
• C.'Quiet' is only a problem in rental ads
• D.'Quiet' is only problematic if combined with 'adults only'

Q9.A property manager promptly reports suspected trust-account misconduct through the brokerage's escalation channel. Which policy best supports effective supervision?

• A.Discourage reports unless loss is proven
• B.Protect good-faith immediate reporting from retaliation and preserve the report
• C.Require the reporting employee to correct the ledger alone
• D.Delete the report after the balance is restored

Q10.What is 'proration' at closing?

• A.The agent's commission calculation
• B.The process of fairly dividing ongoing costs (property taxes, HOA fees, rent) between buyer and seller based on the closing date
• C.The escrow company's fee
• D.The title company's calculation of title insurance premiums

Q11.Which screening practice best supports a defensible rental decision?

• A.Change criteria for applicants the agent distrusts
• B.Use written, relevant criteria consistently and preserve the source data and decision record
• C.Record only approvals and delete denials
• D.Let each property manager create unwritten exceptions

Q12.What is the minimum electrical panel amperage for a modern Arizona single-family home?

• A.60 amps
• B.100 amps
• C.200 amps
• D.400 amps

Q13.What is the primary risk for a buyer in a short sale transaction?

• A.The property is in poor condition
• B.Extended timeline and uncertainty of lender approval, which may delay or kill the transaction
• C.Seller recourse for the deficiency
• D.The agent's commission is higher

Q14.Under the AAR contract, can the closing date be extended by agreement?

• A.No, the closing date cannot be changed once set
• B.Yes, by written amendment signed by all parties before the current closing date passes
• C.Yes, verbally by the agents
• D.Only if the lender requests an extension

Q15.Under the FHA, a landlord who refuses to rent to a woman because she previously complained about sexual harassment by his property manager is guilty of:

• A.Both housing discrimination (sex) and retaliation under the FHA
• B.Only retaliation, not sex discrimination
• C.Neither violation since the landlord owns private property
• D.A licensing violation but not an FHA violation