Arizona State-Specific Practice Exam With Correct
Answers 2026/2027.
1. Who is responsible for the day-to-day operations of the Arizona Department of Real Estate
(ADRE)?
Correct Answer: The Real Estate Commissioner, who is appointed by the Governor. The
Commissioner must have at least five years of experience in real estate, banking, or title
insurance and must be a resident of Arizona for five years.
2. What is the primary role of the Arizona Real Estate Advisory Board?
Correct Answer: The Board consists of 10 members who provide recommendations to the
Commissioner regarding the operation of the Department and evaluate the Commissioner's
performance. They do not create laws or handle disciplinary hearings.
3. How many members of the Real Estate Advisory Board must be from the public?
Correct Answer: Three members of the 10-member board must be "public members" who
are not licensed in real estate or engaged in the business of land development.
4. Define "Article 26" of the Arizona Constitution.
Correct Answer: This constitutional amendment allows licensed real estate brokers and
salespersons to draft or fill in all instruments related to the sale, lease, or exchange of
property (like purchase contracts and deeds) without being charged with the unauthorized
practice of law.
5. A salesperson is moving to a new brokerage. How soon must the ADRE be notified?
Correct Answer: The salesperson and the new employing broker must notify the ADRE
immediately through the online portal to transfer the license before the salesperson can
perform any licensed activities for the new firm.
6. What is the maximum amount of personal funds a broker can keep in a trust account?
Correct Answer: A broker may keep a maximum of $3,000 of their own money in a trust
account to cover bank service charges and prevent the account from being closed.
7. How long must an Arizona broker keep copies of all "Rejected Offers"?
Correct Answer: Under Arizona law, a broker must maintain records of all offers that did not
result in a contract for at least one year from the date of the rejection.
8. How long must an Arizona broker keep "Executed Transaction Records"?
Correct Answer: For any successfully closed or terminated transaction, the broker must
retain all related documents and files for at least five years from the date of the closing or
termination.
9. What is a "Blind Ad" and is it legal in Arizona?
Correct Answer: A blind ad is an advertisement that does not prominently include the legal
name of the employing broker. These are illegal in Arizona; all marketing must identify the
brokerage.
10. When must a salesperson turn over earnest money to the broker?
Correct Answer: A salesperson must turn over all earnest money or other trust funds to their
designated broker immediately.
, 11. Within what timeframe must a broker deposit earnest money into escrow or a trust
account?
Correct Answer: Unless otherwise agreed upon in writing by the parties, the broker must
deposit the funds by the close of the next business day following the acceptance of the offer.
12. What is the "Arizona Real Estate Recovery Fund"?
Correct Answer: It is a fund designed to compensate members of the public who have
suffered financial loss due to a licensee’s fraud or misrepresentation and have obtained a
court judgment they cannot collect.
13. What is the maximum payout from the Recovery Fund for a single transaction?
Correct Answer: The maximum payout is $30,000 per transaction, regardless of the number
of people involved or the size of the loss.
14. What is the lifetime maximum payout from the Recovery Fund for a single licensee?
Correct Answer: The fund will pay no more than $90,000 in total for the conduct of one
specific licensee.
15. What happens to a license if the Recovery Fund pays out a claim on its behalf?
Correct Answer: The license is automatically and indefinitely terminated. The individual
cannot apply for a new license until they repay the fund in full, plus interest.
16. How often must a real estate license be renewed in Arizona?
Correct Answer: Every 24 months (two years) by the end of the month in which the license
was originally issued.
17. What is the "Grace Period" for license renewal?
Correct Answer: There is a one-year grace period after the license expires. During this time,
the licensee cannot practice real estate but can renew by paying a late fee and completing
education without re-testing.
18. How many hours of Continuing Education (CE) are required for renewal?
Correct Answer: A salesperson must complete 24 hours of approved CE every two years,
covering specific categories like Agency, Disclosure, Fair Housing, and Commissioner's Rules.
19. What is a "Public Report" (Subdivision Disclosure Report)?
Correct Answer: It is a document issued by the Commissioner that discloses all material facts
about a subdivision (utilities, water, title, etc.) that a buyer must receive and sign for before
purchasing a lot.
20. How many lots are required to define a "Subdivision" in Arizona?
Correct Answer: Land that is divided or proposed to be divided into six or more lots, parcels,
or fractional interests for sale or lease.
21. What is the "Seven-Day Rescission Period"?
Correct Answer: A buyer of unsubdivided land has seven calendar days after signing the
contract to cancel for any reason and receive a full refund.
22. What is the "Six-Month Rescission Period"?
Correct Answer: If a buyer purchases subdivided land without seeing the property first, they
have six months to rescind the contract and get their money back.
Answers 2026/2027.
1. Who is responsible for the day-to-day operations of the Arizona Department of Real Estate
(ADRE)?
Correct Answer: The Real Estate Commissioner, who is appointed by the Governor. The
Commissioner must have at least five years of experience in real estate, banking, or title
insurance and must be a resident of Arizona for five years.
2. What is the primary role of the Arizona Real Estate Advisory Board?
Correct Answer: The Board consists of 10 members who provide recommendations to the
Commissioner regarding the operation of the Department and evaluate the Commissioner's
performance. They do not create laws or handle disciplinary hearings.
3. How many members of the Real Estate Advisory Board must be from the public?
Correct Answer: Three members of the 10-member board must be "public members" who
are not licensed in real estate or engaged in the business of land development.
4. Define "Article 26" of the Arizona Constitution.
Correct Answer: This constitutional amendment allows licensed real estate brokers and
salespersons to draft or fill in all instruments related to the sale, lease, or exchange of
property (like purchase contracts and deeds) without being charged with the unauthorized
practice of law.
5. A salesperson is moving to a new brokerage. How soon must the ADRE be notified?
Correct Answer: The salesperson and the new employing broker must notify the ADRE
immediately through the online portal to transfer the license before the salesperson can
perform any licensed activities for the new firm.
6. What is the maximum amount of personal funds a broker can keep in a trust account?
Correct Answer: A broker may keep a maximum of $3,000 of their own money in a trust
account to cover bank service charges and prevent the account from being closed.
7. How long must an Arizona broker keep copies of all "Rejected Offers"?
Correct Answer: Under Arizona law, a broker must maintain records of all offers that did not
result in a contract for at least one year from the date of the rejection.
8. How long must an Arizona broker keep "Executed Transaction Records"?
Correct Answer: For any successfully closed or terminated transaction, the broker must
retain all related documents and files for at least five years from the date of the closing or
termination.
9. What is a "Blind Ad" and is it legal in Arizona?
Correct Answer: A blind ad is an advertisement that does not prominently include the legal
name of the employing broker. These are illegal in Arizona; all marketing must identify the
brokerage.
10. When must a salesperson turn over earnest money to the broker?
Correct Answer: A salesperson must turn over all earnest money or other trust funds to their
designated broker immediately.
, 11. Within what timeframe must a broker deposit earnest money into escrow or a trust
account?
Correct Answer: Unless otherwise agreed upon in writing by the parties, the broker must
deposit the funds by the close of the next business day following the acceptance of the offer.
12. What is the "Arizona Real Estate Recovery Fund"?
Correct Answer: It is a fund designed to compensate members of the public who have
suffered financial loss due to a licensee’s fraud or misrepresentation and have obtained a
court judgment they cannot collect.
13. What is the maximum payout from the Recovery Fund for a single transaction?
Correct Answer: The maximum payout is $30,000 per transaction, regardless of the number
of people involved or the size of the loss.
14. What is the lifetime maximum payout from the Recovery Fund for a single licensee?
Correct Answer: The fund will pay no more than $90,000 in total for the conduct of one
specific licensee.
15. What happens to a license if the Recovery Fund pays out a claim on its behalf?
Correct Answer: The license is automatically and indefinitely terminated. The individual
cannot apply for a new license until they repay the fund in full, plus interest.
16. How often must a real estate license be renewed in Arizona?
Correct Answer: Every 24 months (two years) by the end of the month in which the license
was originally issued.
17. What is the "Grace Period" for license renewal?
Correct Answer: There is a one-year grace period after the license expires. During this time,
the licensee cannot practice real estate but can renew by paying a late fee and completing
education without re-testing.
18. How many hours of Continuing Education (CE) are required for renewal?
Correct Answer: A salesperson must complete 24 hours of approved CE every two years,
covering specific categories like Agency, Disclosure, Fair Housing, and Commissioner's Rules.
19. What is a "Public Report" (Subdivision Disclosure Report)?
Correct Answer: It is a document issued by the Commissioner that discloses all material facts
about a subdivision (utilities, water, title, etc.) that a buyer must receive and sign for before
purchasing a lot.
20. How many lots are required to define a "Subdivision" in Arizona?
Correct Answer: Land that is divided or proposed to be divided into six or more lots, parcels,
or fractional interests for sale or lease.
21. What is the "Seven-Day Rescission Period"?
Correct Answer: A buyer of unsubdivided land has seven calendar days after signing the
contract to cancel for any reason and receive a full refund.
22. What is the "Six-Month Rescission Period"?
Correct Answer: If a buyer purchases subdivided land without seeing the property first, they
have six months to rescind the contract and get their money back.
