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Arizona Real Estate Exam LATEST VERSION QUESTIONS AND
ANSWERS WITH STUDY GUIDE DETAILED AND VERIFIED FOR
GUARANTEED PASS, LATEST UPDATE 2025,2026 GRADED A
1099-Misc - CORRECT ANSWER The Internal Revenue Service form that is used
to report various types of miscellaneous income earned other than salary earned from
an employer
Abandonment of a Homestead - CORRECT ANSWER The loss of a homestead
exemption if the owner moves to another state, sells the property, turns the property into
a rental or no longer occupies the home as a primary residence
Abutting - CORRECT ANSWER Refers to parcels that share a boundary
Acceleration Clause - CORRECT ANSWER A clause in loan documents that
allows the lender to call the note all due and payable if the borrower breaches the terms
Accretion - CORRECT ANSWER The gradual addition of land by natural causes,
such as shoreline movements
Acre (in square feet) - CORRECT ANSWER 43,560 square feet
Acre Foot - CORRECT ANSWER One foot of water over the entire surface of an
acre; contains 325,851 gallons of water
Active Management Area (AMA) - CORRECT ANSWER Areas within Arizona
where water management programs, such as restriction governing groundwater use,
are in place; requires demonstration of Assured Water Supply
Actual Eviction - CORRECT ANSWER The physical removal of a tenant from a
leased property with the tenant relieved of any further responsibility to pay rent
Actual Notice - CORRECT ANSWER Express knowledge of a fact (compared to
Constructive Notice, which is notice given by publication)
Ad Valorem - CORRECT ANSWER A concept for property taxes that means
"according to value"
Adequate Water Supply - CORRECT ANSWER The standard required from
developers OUTSIDE of an Active Management Area (AMA); if adequate water supply
,cannot by demonstrated, the developer must disclose this fact in all advertising and
promotional material
Adjustable Rate Mortgage (ARM) - CORRECT ANSWER A mortgage loan that
has an interest rate on the note that periodically adjusts based on an index that reflects
the cost to the lender; also called Variable Rate Mortgage
Adjusted Basis - CORRECT ANSWER The purchase price of a property (basis)
minus accumulative depreciation, plus acquisition costs, plus capital improvements;
also called Adjusted Purchase Price
Adjusted Sales Price - CORRECT ANSWER Sales price minus costs of sale
(commission and closing costs)
Administrator - CORRECT ANSWER Court-appointed personal representatives of
an estate for someone who dies intestate (without a will)
Administrator's Deed - CORRECT ANSWER A document that transfers title to real
estate from an intestate person to his or her heirs
Adverse Possession - CORRECT ANSWER Acquiring title to land because of a
long-term, open and notorious use of the land. The legal process is called
PRESCRIPTION. The required time period in Arizona is 10 years.
Advisory Board - CORRECT ANSWER A 10-member board appointed by the
Governor that advises and gives recommendations to the Commissioner of the Arizona
Department of Real Estate. Member serve a 6-year term
Affidavit of Affixture - CORRECT ANSWER A document for owners of mobile
homes certifying that the home is immobilized, i.e., anchored to real property
Affidavit of Disclosure - CORRECT ANSWER A disclosure document that may be
required when selling property that is either in an unincorporated area (not in a city or
town), NOT in a subdivision, or if five or fewer parcels are involved in the transaction. It
provides information about certain aspects of the property and allows the buyer an
opportunity to rescind the contract.
Affidavit of Value - CORRECT ANSWER A sworn statement under oath that
indicates the purchase price paid by the buyer in a trascaction; must be filed with the
deed and signed by both buyer and seller.
Agency - CORRECT ANSWER A relationship of trust between one person (the
principal) and another (the agent) in which the agent has the authority to act on behalf
,of the principal. Agency creates a fiduciary duty on the part of the agent to act in good
faith.
Agent - CORRECT ANSWER One who represents a principal; In Arizona, the
designated agent is the agent of the principal. Associated licensees in the office are
considered subagents to the principal. Both the agent and the subagents are fiduciaries
to the principal (client).
Agreement for Sale - CORRECT ANSWER A carryback document between buyer
and seller. The seller does not give a deed to the buyer until paid in full; therefore the
seller retains legal title and the buyer has equitable title. Also called Land Contract,
Contract for Deed or Installment Sale
Air Lot - CORRECT ANSWER The ownership of the interior of a condominium; a
property that is above the base elevation of the land as in a multi-level building
Air Rights - CORRECT ANSWER The right to undisturbed use and control of the
airspace over a parcel of land (within reasonable limits for air travel); may be transferred
separately from the land.
Alienation - CORRECT ANSWER The transfer of ownership or an interest in
property from one person to another by any means
Alienation Clause - CORRECT ANSWER A clause used in a mortgage allowing
the lender to demand the full and immediate payment of the mortgage because the
owner transferred ownership of the property. Also called Due on Sale Clause.
Allodial System - CORRECT ANSWER A concept of land ownership that allows
private individuals to own property
Alluvion - CORRECT ANSWER Solid material deposited along a shore by
accretion
American Land Title Association (ALTA) - CORRECT ANSWER A national
association of title companies, abstractors and attorneys whose members agree to
promote uniformity, quality and professional standards in title insurance policies
Amortization - CORRECT ANSWER Payment of debt in regular, periodic
installments of principal and interest (as opposed to interest-only payments)
Amortization Schedule - CORRECT ANSWER A table or chart that shows the
periodic payments, interest and principal requirements and unpaid load balance for
each period of the life of a loan
, Annexation - CORRECT ANSWER Attaching personal property to land so that the
law views it as part of the real property
Annual Percentage Rate (APR) - CORRECT ANSWER The relationship between
the cost of borrowing and the total amount financed, represented as a percentage
Appurtenance - CORRECT ANSWER Something that belongs to property and
passes with property, but need not be attached to it (e.g. outbuildings, easements). An
appurtenance "runs with the land."
Arbitration - CORRECT ANSWER A method for resolving disputes out of court
whereby an impartial third party renders a binding decision. This is the method by which
disputes between REALTOR brokers may be resolved
Arizona Department of Environmental Quality (ADEQ) - CORRECT ANSWER The
state department tasked with protecting and enhancing public health and the
environment in the state; enforces the state's environmental laws and delegated federal
programs to prevent air, water and land pollution and ensure cleanup.
Arizona Department of Real Estate (ADRE) - CORRECT ANSWER The state
agency that regulates real estate, cemetery and membership camping brokers and
salespersons. The Department oversees the activities of licensees, investigates
complaints and participates in administrative hearings. It also regulates the sale of
subdivisions, unsubdivided lands, timeshares, condominiums, membership
campgrounds and cemeteries.
Arizona Department of Water Resources (ADWR) - CORRECT ANSWER The
state department created in 1980 to secure long-term dependable water supplies for
Arizona's communities; enforces the state's groundwater code and surface water rights.
Arizona Revised Statutes (A.R.S.) - CORRECT ANSWER The codified collection
of laws that have been passed by the Arizona State Legislature. The part that talks
about real estate is Title 32 chapter 20z
Arm's Length Transaction - CORRECT ANSWER A transaction that occurred
under typical conditions in the marketplace, with each of the parties acting in their own
best interests
Arrears - CORRECT ANSWER Owing payment on things for which one has the
use of but has not yet paid for, such as property taxes that are paid in arrears, or the
state being in arrears with a debt obligation
Arizona Real Estate Exam LATEST VERSION QUESTIONS AND
ANSWERS WITH STUDY GUIDE DETAILED AND VERIFIED FOR
GUARANTEED PASS, LATEST UPDATE 2025,2026 GRADED A
1099-Misc - CORRECT ANSWER The Internal Revenue Service form that is used
to report various types of miscellaneous income earned other than salary earned from
an employer
Abandonment of a Homestead - CORRECT ANSWER The loss of a homestead
exemption if the owner moves to another state, sells the property, turns the property into
a rental or no longer occupies the home as a primary residence
Abutting - CORRECT ANSWER Refers to parcels that share a boundary
Acceleration Clause - CORRECT ANSWER A clause in loan documents that
allows the lender to call the note all due and payable if the borrower breaches the terms
Accretion - CORRECT ANSWER The gradual addition of land by natural causes,
such as shoreline movements
Acre (in square feet) - CORRECT ANSWER 43,560 square feet
Acre Foot - CORRECT ANSWER One foot of water over the entire surface of an
acre; contains 325,851 gallons of water
Active Management Area (AMA) - CORRECT ANSWER Areas within Arizona
where water management programs, such as restriction governing groundwater use,
are in place; requires demonstration of Assured Water Supply
Actual Eviction - CORRECT ANSWER The physical removal of a tenant from a
leased property with the tenant relieved of any further responsibility to pay rent
Actual Notice - CORRECT ANSWER Express knowledge of a fact (compared to
Constructive Notice, which is notice given by publication)
Ad Valorem - CORRECT ANSWER A concept for property taxes that means
"according to value"
Adequate Water Supply - CORRECT ANSWER The standard required from
developers OUTSIDE of an Active Management Area (AMA); if adequate water supply
,cannot by demonstrated, the developer must disclose this fact in all advertising and
promotional material
Adjustable Rate Mortgage (ARM) - CORRECT ANSWER A mortgage loan that
has an interest rate on the note that periodically adjusts based on an index that reflects
the cost to the lender; also called Variable Rate Mortgage
Adjusted Basis - CORRECT ANSWER The purchase price of a property (basis)
minus accumulative depreciation, plus acquisition costs, plus capital improvements;
also called Adjusted Purchase Price
Adjusted Sales Price - CORRECT ANSWER Sales price minus costs of sale
(commission and closing costs)
Administrator - CORRECT ANSWER Court-appointed personal representatives of
an estate for someone who dies intestate (without a will)
Administrator's Deed - CORRECT ANSWER A document that transfers title to real
estate from an intestate person to his or her heirs
Adverse Possession - CORRECT ANSWER Acquiring title to land because of a
long-term, open and notorious use of the land. The legal process is called
PRESCRIPTION. The required time period in Arizona is 10 years.
Advisory Board - CORRECT ANSWER A 10-member board appointed by the
Governor that advises and gives recommendations to the Commissioner of the Arizona
Department of Real Estate. Member serve a 6-year term
Affidavit of Affixture - CORRECT ANSWER A document for owners of mobile
homes certifying that the home is immobilized, i.e., anchored to real property
Affidavit of Disclosure - CORRECT ANSWER A disclosure document that may be
required when selling property that is either in an unincorporated area (not in a city or
town), NOT in a subdivision, or if five or fewer parcels are involved in the transaction. It
provides information about certain aspects of the property and allows the buyer an
opportunity to rescind the contract.
Affidavit of Value - CORRECT ANSWER A sworn statement under oath that
indicates the purchase price paid by the buyer in a trascaction; must be filed with the
deed and signed by both buyer and seller.
Agency - CORRECT ANSWER A relationship of trust between one person (the
principal) and another (the agent) in which the agent has the authority to act on behalf
,of the principal. Agency creates a fiduciary duty on the part of the agent to act in good
faith.
Agent - CORRECT ANSWER One who represents a principal; In Arizona, the
designated agent is the agent of the principal. Associated licensees in the office are
considered subagents to the principal. Both the agent and the subagents are fiduciaries
to the principal (client).
Agreement for Sale - CORRECT ANSWER A carryback document between buyer
and seller. The seller does not give a deed to the buyer until paid in full; therefore the
seller retains legal title and the buyer has equitable title. Also called Land Contract,
Contract for Deed or Installment Sale
Air Lot - CORRECT ANSWER The ownership of the interior of a condominium; a
property that is above the base elevation of the land as in a multi-level building
Air Rights - CORRECT ANSWER The right to undisturbed use and control of the
airspace over a parcel of land (within reasonable limits for air travel); may be transferred
separately from the land.
Alienation - CORRECT ANSWER The transfer of ownership or an interest in
property from one person to another by any means
Alienation Clause - CORRECT ANSWER A clause used in a mortgage allowing
the lender to demand the full and immediate payment of the mortgage because the
owner transferred ownership of the property. Also called Due on Sale Clause.
Allodial System - CORRECT ANSWER A concept of land ownership that allows
private individuals to own property
Alluvion - CORRECT ANSWER Solid material deposited along a shore by
accretion
American Land Title Association (ALTA) - CORRECT ANSWER A national
association of title companies, abstractors and attorneys whose members agree to
promote uniformity, quality and professional standards in title insurance policies
Amortization - CORRECT ANSWER Payment of debt in regular, periodic
installments of principal and interest (as opposed to interest-only payments)
Amortization Schedule - CORRECT ANSWER A table or chart that shows the
periodic payments, interest and principal requirements and unpaid load balance for
each period of the life of a loan
, Annexation - CORRECT ANSWER Attaching personal property to land so that the
law views it as part of the real property
Annual Percentage Rate (APR) - CORRECT ANSWER The relationship between
the cost of borrowing and the total amount financed, represented as a percentage
Appurtenance - CORRECT ANSWER Something that belongs to property and
passes with property, but need not be attached to it (e.g. outbuildings, easements). An
appurtenance "runs with the land."
Arbitration - CORRECT ANSWER A method for resolving disputes out of court
whereby an impartial third party renders a binding decision. This is the method by which
disputes between REALTOR brokers may be resolved
Arizona Department of Environmental Quality (ADEQ) - CORRECT ANSWER The
state department tasked with protecting and enhancing public health and the
environment in the state; enforces the state's environmental laws and delegated federal
programs to prevent air, water and land pollution and ensure cleanup.
Arizona Department of Real Estate (ADRE) - CORRECT ANSWER The state
agency that regulates real estate, cemetery and membership camping brokers and
salespersons. The Department oversees the activities of licensees, investigates
complaints and participates in administrative hearings. It also regulates the sale of
subdivisions, unsubdivided lands, timeshares, condominiums, membership
campgrounds and cemeteries.
Arizona Department of Water Resources (ADWR) - CORRECT ANSWER The
state department created in 1980 to secure long-term dependable water supplies for
Arizona's communities; enforces the state's groundwater code and surface water rights.
Arizona Revised Statutes (A.R.S.) - CORRECT ANSWER The codified collection
of laws that have been passed by the Arizona State Legislature. The part that talks
about real estate is Title 32 chapter 20z
Arm's Length Transaction - CORRECT ANSWER A transaction that occurred
under typical conditions in the marketplace, with each of the parties acting in their own
best interests
Arrears - CORRECT ANSWER Owing payment on things for which one has the
use of but has not yet paid for, such as property taxes that are paid in arrears, or the
state being in arrears with a debt obligation
