Arizona Statutes and Rules Examination
(SRE) Exam Practice Questions And Correct
Answers (Verified Answers) Plus Rationale
2026 Q&A| Instant Download Pdf
SECTION 1: ARIZONA DEPARTMENT OF REAL ESTATE (ADRE) & LICENSING
1. 1. The Arizona Department of Real Estate (ADRE) is under the direct supervision of
which state official?
A) The Governor of Arizona
B) The Arizona State Treasurer
C) The Arizona Attorney General
D) The Arizona Superintendent of Real Estate
2. Correct Answer: D
Rationale: The Department is headed by the Superintendent of Real Estate, who is
appointed by the Governor.
3. 2. How often must a real estate salesperson’s license be renewed in Arizona?
A) Annually (every 1 year)
B) Biennially (every 2 years)
C) Triennially (every 3 years)
D) Every 4 years
4. Correct Answer: B
Rationale: Arizona real estate licenses (both salespersons and brokers) expire biennially
(every 2 years) on the last day of the licensee’s birth month.
5. 3. According to Arizona law, how many hours of Continuing Education (CE) are
required for a salesperson license renewal, and how many of those must be in
Commissioner’s Standards?
A) 12 hours total; 3 hours in Commissioner’s Standards
B) 24 hours total; 6 hours in Commissioner’s Standards
C) 18 hours total; 6 hours in Commissioner’s Standards
D) 30 hours total; 3 hours in Commissioner’s Standards
, 6. Correct Answer: B
Rationale: Licensees must complete 24 hours of CE per renewal cycle, including 6 hours of
Commissioner’s Standards.
7. 4. A salesperson’s license is placed on "inactive" status. Which statement is TRUE
regarding this status?
A) The licensee cannot receive a commission for any real estate transaction.
B) The licensee can still show properties but cannot write offers.
C) The licensee must renew the license as active to avoid expiration.
D) The licensee does not need to renew the license while inactive.
8. Correct Answer: A
Rationale: An inactive licensee cannot engage in any real estate activities for
compensation or valuable consideration, nor can they receive a commission.
9. 5. If a licensee wants to change their employing broker, what is the required
procedure?
A) The licensee must wait until their next renewal cycle to change brokers.
B) The licensee must notify the ADRE in writing within 60 days of the change.
C) The licensee must return their current license to the ADRE, and the new broker must
submit a change application.
D) The new broker must verbally approve the change to the ADRE.
10. Correct Answer: C
Rationale: The "change of employing broker" requires the licensee to return the license to
the ADRE with the new broker’s application and fee.
SECTION 2: AGENCY RELATIONSHIPS & DISCLOSURES
11. 6. In Arizona, which of the following is NOT a recognized type of agency
relationship in a real estate transaction?
A) Seller’s Agent
B) Buyer’s Agent
C) Dual Agent
D) Designated Agent
E) Transaction Agent (Facilitator)
,12. Correct Answer: E
Rationale: Arizona does NOT recognize "Transaction Broker" or "Facilitator" as a statutory
agency type. The statutes recognize Seller’s Agent, Buyer’s Agent, Dual Agent, and
Designated Agent.
13. 7. The "Agency Law Disclosure" pamphlet must be provided to a
prospective buyer or seller:
A) At the time an offer is presented.
B) Prior to the signing of a purchase contract or at the time of first substantial contact,
whichever is earlier.
C) Only if the client requests it in writing.
D) At the closing of escrow.
14. Correct Answer: B
Rationale: The disclosure must be given prior to or at the time of the first substantial
contact or the signing of a contract.
15. 8. In a "Designated Agency" arrangement, who is the principal (client)?
A) The real estate brokerage firm.
B) The specific agent assigned to represent the client.
C) The buyer or seller who is represented by the designated agent.
D) The Arizona Department of Real Estate.
16. Correct Answer: C
Rationale: In designated agency, the broker designates one or more licensees to represent
the seller or buyer. The buyer/seller remains the principal/client of the designated agent.
17. 9. A licensee is showing a property to a buyer. The buyer asks, "Is this
neighborhood safe?" The licensee knows the neighborhood has a high crime rate
but does not volunteer the information and says "I’m not sure." Has the licensee
violated any duty?
A) No, because crime statistics are not a material fact.
B) Yes, because the licensee has a duty to disclose all facts that materially affect the
value or desirability of the property, including crime rates if known.
C) No, because the buyer did not ask a direct enough question.
D) Yes, because the licensee must disclose the crime rate regardless of whether it is true.
, 18. Correct Answer: B
Rationale: Licensees have a duty to disclose material facts that they know or should know
that affect the value or desirability of the property. If they know of a high crime rate, it is a
material fact.
19. 10. A broker is representing both the buyer and the seller in the same
transaction with written consent from both parties. This is known as:
A) Designated Agency
B) Dual Agency
C) Subagency
D) Transaction Brokerage
20. Correct Answer: B
Rationale: This is the definition of Dual Agency. It requires the informed, written consent of
both parties.
SECTION 3: CONTRACTS
21. 11. Under Arizona law, which of the following is REQUIRED for a valid
purchase contract for real property?
A) The contract must be recorded with the county recorder.
B) The contract must include a legal description of the property.
C) The contract must be prepared by an attorney.
D) The contract must include the tax parcel number.
22. Correct Answer: B
Rationale: A contract for the sale of real estate must have a sufficient description (legal
description) to identify the property. A tax parcel number is helpful but not legally required
for validity.
23. 12. The Arizona Residential Purchase Agreement typically includes a "Due
Diligence Period." During this period, the buyer:
A) Must immediately deposit the earnest money.
B) Cannot terminate the contract for any reason.
C) Has the right to inspect the property and terminate for any reason or no reason.
D) Is required to secure financing approval.
(SRE) Exam Practice Questions And Correct
Answers (Verified Answers) Plus Rationale
2026 Q&A| Instant Download Pdf
SECTION 1: ARIZONA DEPARTMENT OF REAL ESTATE (ADRE) & LICENSING
1. 1. The Arizona Department of Real Estate (ADRE) is under the direct supervision of
which state official?
A) The Governor of Arizona
B) The Arizona State Treasurer
C) The Arizona Attorney General
D) The Arizona Superintendent of Real Estate
2. Correct Answer: D
Rationale: The Department is headed by the Superintendent of Real Estate, who is
appointed by the Governor.
3. 2. How often must a real estate salesperson’s license be renewed in Arizona?
A) Annually (every 1 year)
B) Biennially (every 2 years)
C) Triennially (every 3 years)
D) Every 4 years
4. Correct Answer: B
Rationale: Arizona real estate licenses (both salespersons and brokers) expire biennially
(every 2 years) on the last day of the licensee’s birth month.
5. 3. According to Arizona law, how many hours of Continuing Education (CE) are
required for a salesperson license renewal, and how many of those must be in
Commissioner’s Standards?
A) 12 hours total; 3 hours in Commissioner’s Standards
B) 24 hours total; 6 hours in Commissioner’s Standards
C) 18 hours total; 6 hours in Commissioner’s Standards
D) 30 hours total; 3 hours in Commissioner’s Standards
, 6. Correct Answer: B
Rationale: Licensees must complete 24 hours of CE per renewal cycle, including 6 hours of
Commissioner’s Standards.
7. 4. A salesperson’s license is placed on "inactive" status. Which statement is TRUE
regarding this status?
A) The licensee cannot receive a commission for any real estate transaction.
B) The licensee can still show properties but cannot write offers.
C) The licensee must renew the license as active to avoid expiration.
D) The licensee does not need to renew the license while inactive.
8. Correct Answer: A
Rationale: An inactive licensee cannot engage in any real estate activities for
compensation or valuable consideration, nor can they receive a commission.
9. 5. If a licensee wants to change their employing broker, what is the required
procedure?
A) The licensee must wait until their next renewal cycle to change brokers.
B) The licensee must notify the ADRE in writing within 60 days of the change.
C) The licensee must return their current license to the ADRE, and the new broker must
submit a change application.
D) The new broker must verbally approve the change to the ADRE.
10. Correct Answer: C
Rationale: The "change of employing broker" requires the licensee to return the license to
the ADRE with the new broker’s application and fee.
SECTION 2: AGENCY RELATIONSHIPS & DISCLOSURES
11. 6. In Arizona, which of the following is NOT a recognized type of agency
relationship in a real estate transaction?
A) Seller’s Agent
B) Buyer’s Agent
C) Dual Agent
D) Designated Agent
E) Transaction Agent (Facilitator)
,12. Correct Answer: E
Rationale: Arizona does NOT recognize "Transaction Broker" or "Facilitator" as a statutory
agency type. The statutes recognize Seller’s Agent, Buyer’s Agent, Dual Agent, and
Designated Agent.
13. 7. The "Agency Law Disclosure" pamphlet must be provided to a
prospective buyer or seller:
A) At the time an offer is presented.
B) Prior to the signing of a purchase contract or at the time of first substantial contact,
whichever is earlier.
C) Only if the client requests it in writing.
D) At the closing of escrow.
14. Correct Answer: B
Rationale: The disclosure must be given prior to or at the time of the first substantial
contact or the signing of a contract.
15. 8. In a "Designated Agency" arrangement, who is the principal (client)?
A) The real estate brokerage firm.
B) The specific agent assigned to represent the client.
C) The buyer or seller who is represented by the designated agent.
D) The Arizona Department of Real Estate.
16. Correct Answer: C
Rationale: In designated agency, the broker designates one or more licensees to represent
the seller or buyer. The buyer/seller remains the principal/client of the designated agent.
17. 9. A licensee is showing a property to a buyer. The buyer asks, "Is this
neighborhood safe?" The licensee knows the neighborhood has a high crime rate
but does not volunteer the information and says "I’m not sure." Has the licensee
violated any duty?
A) No, because crime statistics are not a material fact.
B) Yes, because the licensee has a duty to disclose all facts that materially affect the
value or desirability of the property, including crime rates if known.
C) No, because the buyer did not ask a direct enough question.
D) Yes, because the licensee must disclose the crime rate regardless of whether it is true.
, 18. Correct Answer: B
Rationale: Licensees have a duty to disclose material facts that they know or should know
that affect the value or desirability of the property. If they know of a high crime rate, it is a
material fact.
19. 10. A broker is representing both the buyer and the seller in the same
transaction with written consent from both parties. This is known as:
A) Designated Agency
B) Dual Agency
C) Subagency
D) Transaction Brokerage
20. Correct Answer: B
Rationale: This is the definition of Dual Agency. It requires the informed, written consent of
both parties.
SECTION 3: CONTRACTS
21. 11. Under Arizona law, which of the following is REQUIRED for a valid
purchase contract for real property?
A) The contract must be recorded with the county recorder.
B) The contract must include a legal description of the property.
C) The contract must be prepared by an attorney.
D) The contract must include the tax parcel number.
22. Correct Answer: B
Rationale: A contract for the sale of real estate must have a sufficient description (legal
description) to identify the property. A tax parcel number is helpful but not legally required
for validity.
23. 12. The Arizona Residential Purchase Agreement typically includes a "Due
Diligence Period." During this period, the buyer:
A) Must immediately deposit the earnest money.
B) Cannot terminate the contract for any reason.
C) Has the right to inspect the property and terminate for any reason or no reason.
D) Is required to secure financing approval.
