Unlocking Success: The Ultimate Guide to Arizona Real
Estate Exam.
Your Comprehensive Resource for Verified Questions
and Detailed Answers"
Latest Updated Exam Study Guide 2025/2026
John makes an offer to Joe, and Joe makes a counter offer. Joe dies before the counter offer is
accepted. What is the contract status?
A. Valid
B. Void
C. Enforceable
D. Bilateral - ansB. Void
1031 Exchange - ansA transaction that, under provisions of Section 1031 of the Internal
Revenue Code, allows a taxpayer to sell an investment property and purchase another
investment property in its place without paying capital gains on the proceeds from the sale.
1099-Misc - ansThe 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 - ansThe 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 - ansRefers to parcels that share a boundary
Acceleration Clause - ansA clause in loan documents that allows the lender to call the note all
due and payable if the borrower breaches the terms
Accretion - ansThe gradual addition of land by natural causes, such as shoreline movements
Acre (in square feet) - ans43,560 square feet
Acre Foot - ansOne foot of water over the entire surface of an acre; contains 325,851 gallons
of water
Active Management Area (AMA) - ansAreas within Arizona where water management
programs, such as restriction governing groundwater use, are in place; requires demonstration
of Assured Water Supply
Actual Eviction - ansThe physical removal of a tenant from a leased property with the tenant
relieved of any further responsibility to pay rent
Actual Notice - ansExpress knowledge of a fact (compared to Constructive Notice, which is
notice given by publication)
Ad Valorem - ansA concept for property taxes that means "according to value"
Adequate Water Supply - ansThe 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) - ansA 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 - ansThe purchase price of a property (basis) minus accumulative
depreciation, plus acquisition costs, plus capital improvements; also called Adjusted Purchase
Price
Adjusted Sales Price - ansSales price minus costs of sale (commission and closing costs)
Administrator - ansCourt-appointed personal representatives of an estate for someone who
dies intestate (without a will)
Administrator's Deed - ansA document that transfers title to real estate from an intestate
person to his or her heirs
,Unlocking Success: The Ultimate Guide to Arizona Real
Estate Exam.
Your Comprehensive Resource for Verified Questions
and Detailed Answers"
Latest Updated Exam Study Guide 2025/2026
Adverse Possession - ansAcquiring 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 - ansA 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 - ansA document for owners of mobile homes certifying that the home
is immobilized, i.e., anchored to real property
Affidavit of Disclosure - ansA 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 - ansA 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 - ansA 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 - ansOne 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 - ansA 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 - ansThe 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 - ansThe 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 - ansThe transfer of ownership or an interest in property from one person to
another by any means
Alienation Clause - ansA 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 - ansA concept of land ownership that allows private individuals to own
property
Alluvion - ansSolid material deposited along a shore by accretion
American Land Title Association (ALTA) - ansA national association of title companies,
abstractors and attorneys whose members agree to promote uniformity, quality and
professional standards in title insurance policies
Amortization - ansPayment of debt in regular, periodic installments of principal and interest
(as opposed to interest-only payments)
Amortization Schedule - ansA 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 - ansAttaching personal property to land so that the law views it as part of the
real property
,Unlocking Success: The Ultimate Guide to Arizona Real
Estate Exam.
Your Comprehensive Resource for Verified Questions
and Detailed Answers"
Latest Updated Exam Study Guide 2025/2026
Annual Percentage Rate (APR) - ansThe relationship between the cost of borrowing and the
total amount financed, represented as a percentage
Appurtenance - ansSomething 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 - ansA 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) - ansThe 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) - ansThe 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) - ansThe 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.) - ansThe 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 - ansA transaction that occurred under typical conditions in the
marketplace, with each of the parties acting in their own best interests
Arrears - ansOwing 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
Article XXVI - ansArticle of the Arizona Constitution that permits licensed, active real estate
brokers and agents to prepare the documents necessary in a real estate transaction handled by
their brokerage without charging a fee
Asbestos - ansFibrous material derived from a naturally occurring group of minerals
commonly used in insulation. Asbestos fibers released into the air are carcinogenic.
Assemblage - ansThe combining of two or more parcels of land into one larger parcel,
usually to increase the usefulness of the land.
Assessed Value - ansFor property tax purposes, a percentage of the market value. In Arizona,
the percentage for residential property is 10%, raw land is 15% and commercial property is
18%.
Assignment - ans1. The transfer of one person's interests under a contract to another. 2. The
transfer of tenant's right of possession, or other interest, in leased property to another person
for the remainder of the lease term. In both ceases, assignment does not release the assignor
from the obligations stated in the contract
Assumable Loan - ansA financing arrangement in which the outstanding loan amount can be
transferred to someone else.
Assumption of Mortgage - ansAn agreement by a buyer to assume the liability under an
existing note secured by a mortgage
, Unlocking Success: The Ultimate Guide to Arizona Real
Estate Exam.
Your Comprehensive Resource for Verified Questions
and Detailed Answers"
Latest Updated Exam Study Guide 2025/2026
Assured Water Supply - ansThe demonstration that sufficient water of adequate quality will
be continuously available to satisfy the needs of the proposed development for at least 100
years; required from developers within an Active Management Area (AMA).
Attachment - ansCourt-ordered seizure of a defendant's property to satisfy a judgement. In
the case of real property, attachment creates a lien.
Attachment, Man-made - ansAn item of personal property that has been attached to or closely
associated with real property in such a way that it is now legally part of the real property.
Also call FIXTURE
Attachment, Natural - ansThings growing on land, such as trees or shrubs. Also called
EMBLEMENTS or FRUCTUS NATURALES
Attorney-at-Law - ansAn individual licensed to practice law for the public
Attorney-in-Fact - ansA person specifically designated in an instrument (e.g. power of
attorney) to do something legally for another in his stead. An attorney-in-fact has a fiduciary
relationship with the principal and need not be an attorney-at-law
Automatic Stay - ansAn injunction that automatically stops lawsuits, foreclosures,
garnishments and all collection activity against the debtor the moment a bankruptcy petition
is filed
Avulsion - ansThe erosion or tearing away of land through natural causes, such as flooding,
which may remove soil or cave in the banks of a river
Bill of Sale - ansAn instrument in writing that transfers ownership of tangible personal
property
Condemnation - ansThe act or process of taking private property for public use through the
government's power of eminent domain
In order to record a deed, which of the following would be required?
A. Signed by the grantee
B. Signed and delivered
C. Signed and acknowledged
D. Signed and dated - ansC. Signed and delivered
In Arizona, a deed is acknowledged to?
A. Show the intent of the grantee
B. Confirm the buyer is an owner occupant
C. Meet the recordation requirements
D. Meet the statute of frauds - ansC. Meet the recordation requirements
When a document is acknowledged, it shows?
A. The document was recorded
B. The document was released
C. The document was drafted
D. The document was signed of your own free will - ansD. The document was signed of your
own free will
A valid deed must contain all of the following EXCEPT?
A. Legal Description
B. Signed by Grantor
C. Signed by Grantee
D. Consideration - ansC. Signed by Grantee
Estate Exam.
Your Comprehensive Resource for Verified Questions
and Detailed Answers"
Latest Updated Exam Study Guide 2025/2026
John makes an offer to Joe, and Joe makes a counter offer. Joe dies before the counter offer is
accepted. What is the contract status?
A. Valid
B. Void
C. Enforceable
D. Bilateral - ansB. Void
1031 Exchange - ansA transaction that, under provisions of Section 1031 of the Internal
Revenue Code, allows a taxpayer to sell an investment property and purchase another
investment property in its place without paying capital gains on the proceeds from the sale.
1099-Misc - ansThe 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 - ansThe 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 - ansRefers to parcels that share a boundary
Acceleration Clause - ansA clause in loan documents that allows the lender to call the note all
due and payable if the borrower breaches the terms
Accretion - ansThe gradual addition of land by natural causes, such as shoreline movements
Acre (in square feet) - ans43,560 square feet
Acre Foot - ansOne foot of water over the entire surface of an acre; contains 325,851 gallons
of water
Active Management Area (AMA) - ansAreas within Arizona where water management
programs, such as restriction governing groundwater use, are in place; requires demonstration
of Assured Water Supply
Actual Eviction - ansThe physical removal of a tenant from a leased property with the tenant
relieved of any further responsibility to pay rent
Actual Notice - ansExpress knowledge of a fact (compared to Constructive Notice, which is
notice given by publication)
Ad Valorem - ansA concept for property taxes that means "according to value"
Adequate Water Supply - ansThe 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) - ansA 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 - ansThe purchase price of a property (basis) minus accumulative
depreciation, plus acquisition costs, plus capital improvements; also called Adjusted Purchase
Price
Adjusted Sales Price - ansSales price minus costs of sale (commission and closing costs)
Administrator - ansCourt-appointed personal representatives of an estate for someone who
dies intestate (without a will)
Administrator's Deed - ansA document that transfers title to real estate from an intestate
person to his or her heirs
,Unlocking Success: The Ultimate Guide to Arizona Real
Estate Exam.
Your Comprehensive Resource for Verified Questions
and Detailed Answers"
Latest Updated Exam Study Guide 2025/2026
Adverse Possession - ansAcquiring 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 - ansA 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 - ansA document for owners of mobile homes certifying that the home
is immobilized, i.e., anchored to real property
Affidavit of Disclosure - ansA 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 - ansA 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 - ansA 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 - ansOne 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 - ansA 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 - ansThe 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 - ansThe 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 - ansThe transfer of ownership or an interest in property from one person to
another by any means
Alienation Clause - ansA 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 - ansA concept of land ownership that allows private individuals to own
property
Alluvion - ansSolid material deposited along a shore by accretion
American Land Title Association (ALTA) - ansA national association of title companies,
abstractors and attorneys whose members agree to promote uniformity, quality and
professional standards in title insurance policies
Amortization - ansPayment of debt in regular, periodic installments of principal and interest
(as opposed to interest-only payments)
Amortization Schedule - ansA 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 - ansAttaching personal property to land so that the law views it as part of the
real property
,Unlocking Success: The Ultimate Guide to Arizona Real
Estate Exam.
Your Comprehensive Resource for Verified Questions
and Detailed Answers"
Latest Updated Exam Study Guide 2025/2026
Annual Percentage Rate (APR) - ansThe relationship between the cost of borrowing and the
total amount financed, represented as a percentage
Appurtenance - ansSomething 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 - ansA 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) - ansThe 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) - ansThe 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) - ansThe 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.) - ansThe 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 - ansA transaction that occurred under typical conditions in the
marketplace, with each of the parties acting in their own best interests
Arrears - ansOwing 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
Article XXVI - ansArticle of the Arizona Constitution that permits licensed, active real estate
brokers and agents to prepare the documents necessary in a real estate transaction handled by
their brokerage without charging a fee
Asbestos - ansFibrous material derived from a naturally occurring group of minerals
commonly used in insulation. Asbestos fibers released into the air are carcinogenic.
Assemblage - ansThe combining of two or more parcels of land into one larger parcel,
usually to increase the usefulness of the land.
Assessed Value - ansFor property tax purposes, a percentage of the market value. In Arizona,
the percentage for residential property is 10%, raw land is 15% and commercial property is
18%.
Assignment - ans1. The transfer of one person's interests under a contract to another. 2. The
transfer of tenant's right of possession, or other interest, in leased property to another person
for the remainder of the lease term. In both ceases, assignment does not release the assignor
from the obligations stated in the contract
Assumable Loan - ansA financing arrangement in which the outstanding loan amount can be
transferred to someone else.
Assumption of Mortgage - ansAn agreement by a buyer to assume the liability under an
existing note secured by a mortgage
, Unlocking Success: The Ultimate Guide to Arizona Real
Estate Exam.
Your Comprehensive Resource for Verified Questions
and Detailed Answers"
Latest Updated Exam Study Guide 2025/2026
Assured Water Supply - ansThe demonstration that sufficient water of adequate quality will
be continuously available to satisfy the needs of the proposed development for at least 100
years; required from developers within an Active Management Area (AMA).
Attachment - ansCourt-ordered seizure of a defendant's property to satisfy a judgement. In
the case of real property, attachment creates a lien.
Attachment, Man-made - ansAn item of personal property that has been attached to or closely
associated with real property in such a way that it is now legally part of the real property.
Also call FIXTURE
Attachment, Natural - ansThings growing on land, such as trees or shrubs. Also called
EMBLEMENTS or FRUCTUS NATURALES
Attorney-at-Law - ansAn individual licensed to practice law for the public
Attorney-in-Fact - ansA person specifically designated in an instrument (e.g. power of
attorney) to do something legally for another in his stead. An attorney-in-fact has a fiduciary
relationship with the principal and need not be an attorney-at-law
Automatic Stay - ansAn injunction that automatically stops lawsuits, foreclosures,
garnishments and all collection activity against the debtor the moment a bankruptcy petition
is filed
Avulsion - ansThe erosion or tearing away of land through natural causes, such as flooding,
which may remove soil or cave in the banks of a river
Bill of Sale - ansAn instrument in writing that transfers ownership of tangible personal
property
Condemnation - ansThe act or process of taking private property for public use through the
government's power of eminent domain
In order to record a deed, which of the following would be required?
A. Signed by the grantee
B. Signed and delivered
C. Signed and acknowledged
D. Signed and dated - ansC. Signed and delivered
In Arizona, a deed is acknowledged to?
A. Show the intent of the grantee
B. Confirm the buyer is an owner occupant
C. Meet the recordation requirements
D. Meet the statute of frauds - ansC. Meet the recordation requirements
When a document is acknowledged, it shows?
A. The document was recorded
B. The document was released
C. The document was drafted
D. The document was signed of your own free will - ansD. The document was signed of your
own free will
A valid deed must contain all of the following EXCEPT?
A. Legal Description
B. Signed by Grantor
C. Signed by Grantee
D. Consideration - ansC. Signed by Grantee
