Before you read
Test yourself first: 5 questions
Question 1 of 5
Which body administers real-estate licensing and enforces license law in Arizona?
Answer: B. The Arizona Department of Real Estate, headed by the Real Estate Commissioner, issues licenses, adopts rules, and disciplines licensees. Trade associations have no licensing authority.
Question 2 of 5
The head of the Arizona Department of Real Estate, who administers and enforces the real estate statutes, is the:
Answer: A. The Arizona Department of Real Estate is led by the Real Estate Commissioner, who administers and enforces Arizona real estate law, adopts rules, and oversees licensing and discipline.
Question 3 of 5
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), 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.
Question 4 of 5
An Arizona licensee accepts a commission directly from a buyer without the knowledge or consent of his employing broker. This conduct is:
Answer: B. In Arizona, a salesperson may accept compensation only from the employing (designated) broker, not directly from a client or other party. Accepting payment outside the broker is a prohibited act and grounds for discipline.
Question 5 of 5
A licensee is convicted of a felony involving fraud after obtaining his Arizona license. With respect to ADRE discipline, this conviction:
Answer: B. A conviction for a felony or a crime involving fraud, dishonesty, or moral turpitude is grounds for the Commissioner to discipline a licensee, including suspending or revoking the license, even between renewals.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Violations such as fraud, misrepresentation, or mishandling trust funds can lead to suspension, revocation, denial, probation, or civil penalties. Arizona also maintains a Real Estate Recovery Fund that may compensate consumers who win a court judgment against a licensee for fraud or a license-law violation but cannot collect it. A payment from the fund on a licensee's behalf can trigger automatic suspension of that license until the fund is reimbursed.
Arizona License Discipline & Enforcement: FAQs
Is Arizona License Discipline & Enforcement 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.
