ADRE EXAM 2 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. What must someone do after being issued an Arizona real estate license?
Answer:
They must place it with a broker to be eligible to earn a commission.
Question:
2. By what date must the Recovery Fund have a minimum balance of $600,000 to avoid paying into it
when renewing a license?
Answer:
June 30th.
Question:
3. Which statement is TRUE regarding a broker's trust account?
Answer:
A salesperson may be a signatory on the trust account.
Question:
4. What is NOT required of a real estate salesperson?
Answer:
Obtain a specialized license in order to manage real property.
Question:
5. What could a broker be held liable for if a real estate licensee acts inappropriately or illegally?
Answer:
Failing to reasonably supervise the licensee.
Question:
6. Can a real estate licensee hold both an Arizona real estate license and a cemetery license concurrently?
Answer:
Yes, it is lawful to hold both licenses concurrently.
Question:
7. Who may NOT file a claim against the Recovery Fund?
Answer:
Licensee.
Question:
8. Can a broker charge a fee for preparing documents incidental to a property transaction?
Answer:
No, the broker may not charge a fee for this service.
, Question:
9. What is it called when a broker uses earnest money from a buyer to pay company bills instead of placing
it in the trust account?
Answer:
Conversion.
Question:
10. What type of control must an employing broker exercise over the activities of brokers and
salespersons?
Answer:
Reasonable control.
Question:
11. What must every real estate licensee have available for their use?
Answer:
A current copy of the Department's statutes, rules, and annotations pertaining to real estate laws.
Question:
12. What right does Article XXVI of the Arizona Constitution give real estate licensees?
Answer:
The right to draft, without charge, any and all instruments incident to real estate transactions in which the
licensee is an agent.
Question:
13. What is commingling in real estate?
Answer:
Commingling the money or other property of the licensee's principal or client with the licensee's own
money is permissible under certain circumstances.
Question:
14. Under what condition can ADRE share confidential information from an open audit or investigation?
Answer:
ADRE may share the information with the Attorney General or their representative or with authorized
ADRE employees.
Question:
15. What must a salesperson's license be?
Answer:
Readily available for inspection by the public.
Question:
16. What is the status of a contract if a broker fails to initial it within the required 10 business days?
Answer:
Valid.
Question:
17. What is the statute of limitations for violations of Arizona real estate law by a real estate licensee?
CORRECT ANSWERS
Question:
1. What must someone do after being issued an Arizona real estate license?
Answer:
They must place it with a broker to be eligible to earn a commission.
Question:
2. By what date must the Recovery Fund have a minimum balance of $600,000 to avoid paying into it
when renewing a license?
Answer:
June 30th.
Question:
3. Which statement is TRUE regarding a broker's trust account?
Answer:
A salesperson may be a signatory on the trust account.
Question:
4. What is NOT required of a real estate salesperson?
Answer:
Obtain a specialized license in order to manage real property.
Question:
5. What could a broker be held liable for if a real estate licensee acts inappropriately or illegally?
Answer:
Failing to reasonably supervise the licensee.
Question:
6. Can a real estate licensee hold both an Arizona real estate license and a cemetery license concurrently?
Answer:
Yes, it is lawful to hold both licenses concurrently.
Question:
7. Who may NOT file a claim against the Recovery Fund?
Answer:
Licensee.
Question:
8. Can a broker charge a fee for preparing documents incidental to a property transaction?
Answer:
No, the broker may not charge a fee for this service.
, Question:
9. What is it called when a broker uses earnest money from a buyer to pay company bills instead of placing
it in the trust account?
Answer:
Conversion.
Question:
10. What type of control must an employing broker exercise over the activities of brokers and
salespersons?
Answer:
Reasonable control.
Question:
11. What must every real estate licensee have available for their use?
Answer:
A current copy of the Department's statutes, rules, and annotations pertaining to real estate laws.
Question:
12. What right does Article XXVI of the Arizona Constitution give real estate licensees?
Answer:
The right to draft, without charge, any and all instruments incident to real estate transactions in which the
licensee is an agent.
Question:
13. What is commingling in real estate?
Answer:
Commingling the money or other property of the licensee's principal or client with the licensee's own
money is permissible under certain circumstances.
Question:
14. Under what condition can ADRE share confidential information from an open audit or investigation?
Answer:
ADRE may share the information with the Attorney General or their representative or with authorized
ADRE employees.
Question:
15. What must a salesperson's license be?
Answer:
Readily available for inspection by the public.
Question:
16. What is the status of a contract if a broker fails to initial it within the required 10 business days?
Answer:
Valid.
Question:
17. What is the statute of limitations for violations of Arizona real estate law by a real estate licensee?
