15 free questions from the Cinna RE Arizona real estate exam bank (120 in the app). Tap an answer to check it. The rationale opens right away.
An Arizona salesperson conducts brokerage activity for several days after her license has lapsed for non-renewal. This is:
Answer: B. Unlicensed activity, which is prohibited and subject to discipline and penalties
Performing acts requiring a license while the license is lapsed, expired, or inactive constitutes unlicensed activity. It is a prohibited act subject to ADRE disciplinary action and civil penalties.
Under Arizona Department of Real Estate rules, when must a salesperson first make a written disclosure of who they represent in a transaction?
Answer: B. At the earliest practical opportunity during the first substantive contact with a party
ADRE requires agency relationships to be disclosed in writing at the earliest practical opportunity, generally at or before the first substantive contact regarding the property, so parties know whose interests the licensee serves before sharing confidential information.
An Arizona buyer's agent personally observes water staining and mold on a ceiling that the seller did not mention. The buyer's agent must:
Answer: B. Disclose the observed material condition to the buyer client
A licensee has a duty to disclose to their client material facts the licensee knows or observes that affect the property's value, even if the seller failed to list them. The buyer's agent must inform the buyer of the visible water and mold condition.
When a dispute arises between buyer and seller over who is entitled to the earnest money, what is the Arizona broker's proper course of action?
Answer: B. Keep the funds in the trust account and not release them until the parties agree in writing or a court orders disbursement
The broker must not arbitrarily decide a disputed claim. The earnest money stays in the trust account until the parties reach a written agreement, an interpleader or court order directs disbursement, or another lawful resolution occurs.
An Arizona buyer's agent learns the seller is under financial pressure and must sell quickly. Acting in the buyer-client's best interest, the agent should:
Answer: B. Disclose this advantageous information to the buyer-client as part of the duty of loyalty and full disclosure
The duties of loyalty and full disclosure require the agent to communicate to the client any information that could affect the client's interests, including the seller's motivation, as long as it was not obtained as the seller's confidential information in a prior agency relationship.
When the ADRE Commissioner believes a licensee has violated license law, a formal disciplinary proceeding generally provides the licensee with:
Answer: B. Notice and an opportunity for a hearing before final action
Disciplinary action against a licensee follows administrative due process: the licensee receives notice and an opportunity for a hearing before the Commissioner takes final action such as suspension or revocation.
In Arizona, when a salesperson receives an earnest-money check from a buyer, what must the salesperson do with that deposit?
Answer: B. Promptly deliver it to the employing broker, who must place it in the broker's trust account
An Arizona salesperson has no authority to hold client funds personally. Earnest money must be promptly delivered to the employing broker, who is responsible for depositing it into a designated trust (broker) account according to the terms of the contract.
In Arizona, before a licensee may act as a dual agent representing both the buyer and seller in the same transaction, the licensee must obtain:
Answer: B. Written consent from both parties
Dual representation (limited dual agency) in Arizona requires the informed written consent of both the buyer and the seller.
An Arizona salesperson is found to have commingled client earnest money with personal funds in a non-trust account. Which body has authority to investigate and discipline the licensee for this violation?
Answer: A. The Arizona Department of Real Estate (ADRE)
The Arizona Department of Real Estate (ADRE), through the Commissioner, regulates licensees and investigates and disciplines violations of license law such as commingling. Trust account funds must be kept separate from personal or brokerage operating funds.
What is the commonly used form on which an Arizona seller discloses known material facts and conditions about a residential property?
Answer: B. The Seller's Property Disclosure Statement (SPDS)
The Seller's Property Disclosure Statement (SPDS) is the form commonly used in Arizona for a seller to disclose known material facts about the property.
When a buyer purchases vacant or unsubdivided land in an unincorporated area of an Arizona county, the seller may be required to provide which special disclosure document?
Answer: A. The Affidavit of Disclosure
Arizona law requires sellers of five or fewer parcels of unsubdivided land in an unincorporated area of a county to provide buyers an Affidavit of Disclosure covering matters like access, utilities, flooding, and roads, in addition to or instead of the standard SPDS.
Which of the following is a recognized type of transaction where the SPDS requirement may not apply in the usual residential manner?
Answer: C. A trustee's sale or certain transfers by a fiduciary who never occupied the property
Certain transfers, such as those by a fiduciary or trustee who has had no personal knowledge of or never occupied the property (for example a trustee's sale), are commonly treated as exempt from the typical seller disclosure expectation because the transferor lacks the relevant knowledge.
In addition to the 90-hour pre-licensing course, what additional course must an Arizona salesperson applicant complete before the original license is issued?
Answer: B. A 6-hour contract writing course
Arizona requires a 6-hour contract writing course in addition to the 90-hour pre-licensing education. This contract writing requirement must be satisfied before the original salesperson license is issued.
A licensed salesperson from another state moves to Arizona and wants to practice. How does Arizona generally treat out-of-state licensees seeking to be licensed?
Answer: B. Arizona has no formal reciprocity; applicants must meet Arizona requirements and pass the Arizona state law portion of the exam
Arizona does not have blanket reciprocity agreements. Out-of-state applicants must satisfy Arizona's requirements and pass at least the state-specific (Arizona law) portion of the licensing exam.
In a typical Arizona residential resale transaction, what is the SPDS (Seller's Property Disclosure Statement) primarily used for?
Answer: B. For the seller to disclose known material facts and the condition of the property to the buyer
The SPDS is the form on which the seller discloses known material facts and the condition of the property. It supports Arizona's disclosure obligations and helps the buyer make an informed decision.
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