Material facts affecting value or desirability must be disclosed to buyers.
Before you read
Test yourself first: 5 questions
Question 1 of 5
An Arizona salesperson receives an earnest money check from a buyer. Where must these funds generally be handled?
Answer: B. Client funds such as earnest money must be placed in the broker's trust account or, as is common in Arizona, deposited with a neutral escrow company per the contract terms. Commingling with personal funds is prohibited.
Question 2 of 5
How must an Arizona broker handle client and customer funds such as earnest money deposits?
Answer: B. Arizona requires client funds, including earnest money, to be held in a trust account that is kept separate from the broker's own funds to prevent commingling.
Question 3 of 5
When commingling is prohibited in Arizona, it means a broker must NOT:
Answer: A. Commingling is the prohibited act of mixing clients' trust funds with the broker's own funds; client money must stay in a separate trust account.
Question 4 of 5
When an Arizona buyer and seller dispute who is entitled to an earnest money deposit held in the broker's trust account, the broker should generally:
Answer: B. A broker holding disputed earnest money must keep the funds in the trust account and not release them until the parties reach agreement or a court directs disbursement.
Question 5 of 5
When commingling occurs, an Arizona broker has improperly:
Answer: B. Commingling is mixing client trust funds with the broker's personal or business funds; Arizona requires those funds to be kept separate.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Sellers commonly provide the Seller's Property Disclosure Statement (SPDS).
- Material facts affecting value or desirability must be disclosed to buyers.
- Arizona is a community property state, which affects how spouses hold title.
- Earnest money and client funds belong in a broker-controlled trust account.
- Commingling client trust funds with broker operating funds is prohibited.
- Pre-license: 90 hours + a 6-hour contract-writing course.
- Renewal: 24 hours of continuing education every 2 years.
Arizona Disclosures, Escrow/Trust Funds & Key Numbers: FAQs
Is Arizona Disclosures, Escrow/Trust Funds & Key Numbers on the real estate exam?
Yes. State License Law is a scored domain on the Arizona real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Arizona test this differently?
Arizona applies its own license law on top of the national portion. This page covers the Arizona rules specifically, which is what the state section of your exam tests.
