ARIZONA REAL ESTATE COMPREHENSIVE EXAMS
2025/2026 QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Arbitration - ✔✔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) - ✔✔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) - ✔✔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) - ✔✔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.) - ✔✔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 - ✔✔A transaction that occurred under typical conditions
in the marketplace, with each of the parties acting in their own best interests
✔✔Arrears - ✔✔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
✔✔Article XXVI - ✔✔Article 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 - ✔✔Fibrous material derived from a naturally occurring group of minerals
commonly used in insulation. Asbestos fibers released into the air are carcinogenic.
✔✔Assemblage - ✔✔The combining of two or more parcels of land into one larger
parcel, usually to increase the usefulness of the land.
,✔✔Assessed Value - ✔✔For 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 - ✔✔1. 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 - ✔✔A financing arrangement in which the outstanding loan
amount can be transferred to someone else.
✔✔Assumption of Mortgage - ✔✔An agreement by a buyer to assume the liability under
an existing note secured by a mortgage
✔✔Assured Water Supply - ✔✔The 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 - ✔✔Court-ordered seizure of a defendant's property to satisfy a
judgement. In the case of real property, attachment creates a lien.
✔✔Attachment, Man-made - ✔✔An 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 - ✔✔Things growing on land, such as trees or shrubs. Also
called EMBLEMENTS or FRUCTUS NATURALES
✔✔Attorney-at-Law - ✔✔An individual licensed to practice law for the public
✔✔Attorney-in-Fact - ✔✔A 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 - ✔✔An injunction that automatically stops lawsuits, foreclosures,
garnishments and all collection activity against the debtor the moment a bankruptcy
petition is filed
✔✔Avulsion - ✔✔The 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 - ✔✔An instrument in writing that transfers ownership of tangible
personal property
✔✔Condemnation - ✔✔The 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 - ✔✔C. 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 - ✔✔C. 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 - ✔✔D. 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 - ✔✔C. Signed by Grantee
✔✔What is it called when title passes by involuntary alienation through prescriptive
suit?
A. Escheat
B. Laws of Descent
C. Eminent Domain
D. Adverse Possession - ✔✔D. Adverse Possession
✔✔Which of the following shows the best relationship between testate and intestate?
A. Will - Administrator
B. No Will - Executrix
C. Executor - Will
D. Administrator - Executor - ✔✔A. Will - Administrator
, ✔✔A person who receives real property through a will is called the?
A. Bequestor
B. Bequestee
C. Devisor
D. Devisee - ✔✔D. Devisee
✔✔A homestead may be terminated for all of the following reasons EXCEPT:
A. Abandonment
B. Selling the property
C. Moving out of state
D. Death of a spouse - ✔✔D. Death of a spouse
✔✔Which of the following would NOT qualify for a homestead exemption?
A. Married couple living in a co-op
B. Single person living in a mobile home that is parked in a rented space
C. Family who owns a house in the name of a corporation
D. Unmarried people living in manufactured housing on jointly-owned land - ✔✔C.
Family who owns a house in the name of a corporation
✔✔A lease in which the lessor receives a fixed rent and assumes responsibility for all
other costs on the property is called a/an:
A. Open Lease
B. Net Lease
C. Percentage Lease
D. Gross Lease - ✔✔D. Gross Lease
✔✔Which of the following would have a percentage lease?
A. Municipality
B. Utility Company
C. Public Library
D. Art Gallery - ✔✔D. Art Gallery
✔✔Mother & son own an investment property with equal interest. No other information
is available. How do they hold title?
A. Community Property
B. In Severalty
C. Joint Tenancy with Rights of Survivorship
D. Tenancy In Common - ✔✔D. Tenancy In Common (Arizona's presumption for two
single people.)
✔✔If a husband and wife decide to take title as tenancy in common, which of the
following would apply?
A. Husband and wife must have equal interest
B. Right of successorship would exist
2025/2026 QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Arbitration - ✔✔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) - ✔✔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) - ✔✔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) - ✔✔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.) - ✔✔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 - ✔✔A transaction that occurred under typical conditions
in the marketplace, with each of the parties acting in their own best interests
✔✔Arrears - ✔✔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
✔✔Article XXVI - ✔✔Article 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 - ✔✔Fibrous material derived from a naturally occurring group of minerals
commonly used in insulation. Asbestos fibers released into the air are carcinogenic.
✔✔Assemblage - ✔✔The combining of two or more parcels of land into one larger
parcel, usually to increase the usefulness of the land.
,✔✔Assessed Value - ✔✔For 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 - ✔✔1. 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 - ✔✔A financing arrangement in which the outstanding loan
amount can be transferred to someone else.
✔✔Assumption of Mortgage - ✔✔An agreement by a buyer to assume the liability under
an existing note secured by a mortgage
✔✔Assured Water Supply - ✔✔The 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 - ✔✔Court-ordered seizure of a defendant's property to satisfy a
judgement. In the case of real property, attachment creates a lien.
✔✔Attachment, Man-made - ✔✔An 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 - ✔✔Things growing on land, such as trees or shrubs. Also
called EMBLEMENTS or FRUCTUS NATURALES
✔✔Attorney-at-Law - ✔✔An individual licensed to practice law for the public
✔✔Attorney-in-Fact - ✔✔A 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 - ✔✔An injunction that automatically stops lawsuits, foreclosures,
garnishments and all collection activity against the debtor the moment a bankruptcy
petition is filed
✔✔Avulsion - ✔✔The 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 - ✔✔An instrument in writing that transfers ownership of tangible
personal property
✔✔Condemnation - ✔✔The 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 - ✔✔C. 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 - ✔✔C. 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 - ✔✔D. 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 - ✔✔C. Signed by Grantee
✔✔What is it called when title passes by involuntary alienation through prescriptive
suit?
A. Escheat
B. Laws of Descent
C. Eminent Domain
D. Adverse Possession - ✔✔D. Adverse Possession
✔✔Which of the following shows the best relationship between testate and intestate?
A. Will - Administrator
B. No Will - Executrix
C. Executor - Will
D. Administrator - Executor - ✔✔A. Will - Administrator
, ✔✔A person who receives real property through a will is called the?
A. Bequestor
B. Bequestee
C. Devisor
D. Devisee - ✔✔D. Devisee
✔✔A homestead may be terminated for all of the following reasons EXCEPT:
A. Abandonment
B. Selling the property
C. Moving out of state
D. Death of a spouse - ✔✔D. Death of a spouse
✔✔Which of the following would NOT qualify for a homestead exemption?
A. Married couple living in a co-op
B. Single person living in a mobile home that is parked in a rented space
C. Family who owns a house in the name of a corporation
D. Unmarried people living in manufactured housing on jointly-owned land - ✔✔C.
Family who owns a house in the name of a corporation
✔✔A lease in which the lessor receives a fixed rent and assumes responsibility for all
other costs on the property is called a/an:
A. Open Lease
B. Net Lease
C. Percentage Lease
D. Gross Lease - ✔✔D. Gross Lease
✔✔Which of the following would have a percentage lease?
A. Municipality
B. Utility Company
C. Public Library
D. Art Gallery - ✔✔D. Art Gallery
✔✔Mother & son own an investment property with equal interest. No other information
is available. How do they hold title?
A. Community Property
B. In Severalty
C. Joint Tenancy with Rights of Survivorship
D. Tenancy In Common - ✔✔D. Tenancy In Common (Arizona's presumption for two
single people.)
✔✔If a husband and wife decide to take title as tenancy in common, which of the
following would apply?
A. Husband and wife must have equal interest
B. Right of successorship would exist
