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AZ Real Estate practice questions

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Question 1Arizona Real Estate Statutes, Rules, and Commissioner's Rules

How many hours of approved prelicense instruction must an Arizona salesperson applicant complete before taking the licensing examination?

  1. One hundred twenty hours
  2. Two hundred hours
  3. Forty-five hours
  4. Ninety hours Correct answer.

Explanation

Arizona requires salesperson applicants to complete 90 hours of approved real estate instruction before they may be licensed. Broker applicants complete a separate 90-hour broker prelicense course and must also document experience. The hours must come from a school certified by the Commissioner.

Question 2Arizona Real Estate Statutes, Rules, and Commissioner's Rules

Over each two-year license period, how much continuing education must an Arizona licensee complete?

  1. Forty hours
  2. Twenty-four hours Correct answer.
  3. Eight hours
  4. Twelve hours

Explanation

Arizona licensees must complete 24 clock hours of continuing education during each two-year license period. A portion of those hours must cover mandated topics such as agency, contract law, commissioner's standards, fair housing and legal issues. Hours must be taken from approved providers.

Question 3Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A licensed Arizona salesperson closes a transaction and earns a commission. From whom may the salesperson lawfully collect that commission?

  1. The closing escrow agent, paid directly
  2. The buyer, paid directly at closing
  3. The seller, paid directly at closing
  4. The salesperson's employing broker Correct answer.

Explanation

A salesperson may be compensated for brokerage activity only by the licensed broker who employs the salesperson. Any compensation flowing from a client or escrow is paid to the brokerage, which then pays the salesperson under their employment agreement. Direct payment to the salesperson from a principal is prohibited.

Question 4Arizona Real Estate Statutes, Rules, and Commissioner's Rules

What is the minimum age to hold an Arizona real estate license?

  1. Eighteen years of age Correct answer.
  2. Twenty-five years of age
  3. Twenty-one years of age
  4. Sixteen years of age

Explanation

An applicant must be at least 18 years old, along with meeting education, examination and background requirements. Being a minor is a bar to licensure regardless of education completed.

Question 5Arizona Real Estate Statutes, Rules, and Commissioner's Rules

Under the Arizona Residential Landlord and Tenant Act, what is the maximum security deposit a landlord may demand or receive from a residential tenant?

  1. One month's rent
  2. Three months' rent
  3. One and one-half months' rent Correct answer.
  4. Two months' rent

Explanation

Arizona caps residential security deposits at one and one-half month's rent. Amounts collected as a deposit for any purpose related to the tenancy count toward that cap. Charging more exposes the landlord to statutory remedies.

Question 6Arizona Real Estate Statutes, Rules, and Commissioner's Rules

Before a brokerage may act as a limited representative for both the buyer and the seller in the same transaction, Arizona law requires what?

  1. Written consent from both parties Correct answer.
  2. Approval by the Commissioner of Real Estate
  3. Verbal consent from one of the parties
  4. An order from the superior court

Explanation

Arizona handles dual agency through limited representation, which requires the informed written consent of all parties to the transaction. The consent must be obtained before the brokerage provides limited representation. Absent that written consent, the brokerage may not represent both sides.

Question 7Arizona Real Estate Statutes, Rules, and Commissioner's Rules

Which state agency administers and enforces Arizona's real estate licensing statutes and rules?

  1. The Arizona Corporation Commission
  2. The Arizona Department of Financial Institutions
  3. The Arizona Department of Real Estate Correct answer.
  4. The Arizona Secretary of State

Explanation

The Arizona Department of Real Estate, headed by the Real Estate Commissioner, administers Title 32, Chapter 20 and the Commissioner's rules. It issues and renews licenses, investigates complaints, and conducts disciplinary proceedings. Other agencies regulate securities, banks, or elections rather than brokerage.

Question 8Arizona Real Estate Statutes, Rules, and Commissioner's Rules

An unlicensed assistant works for an Arizona brokerage. Which task may the assistant lawfully perform?

  1. Explaining the terms of a purchase contract to a client
  2. Negotiating price and terms with a buyer
  3. Showing a listing to prospective buyers
  4. Delivering preprinted forms as directed Correct answer.

Explanation

Unlicensed assistants may perform clerical and ministerial duties, such as delivering documents that have already been prepared and approved. They may not engage in activities requiring a license, including negotiating, showing property for compensation, or interpreting contract terms for a client.

Question 9Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A buyer hands a salesperson a $5,000 earnest money check made payable to the brokerage. What must the salesperson do?

  1. Hold the check in a personal file until closing
  2. Deliver it promptly to the employing broker Correct answer.
  3. Cash it and give currency to the seller at closing
  4. Deposit it in her own business account for safekeeping

Explanation

Earnest money belongs to the transaction, and the salesperson must promptly transmit it to the employing broker. The broker then handles the funds under the trust account rules, such as depositing them in the brokerage trust account or delivering them to escrow as the contract directs. The salesperson never retains or deposits client funds personally.

Question 10Arizona Real Estate Statutes, Rules, and Commissioner's Rules

How long must an Arizona designated broker retain the records of trust account transactions and brokerage files?

  1. Five years Correct answer.
  2. Three years
  3. One year
  4. Ten years

Explanation

Commissioner's rules require the broker to keep trust account records and related transaction records for at least five years. The records must be available for inspection by the Department. Retention begins when the record is created or the transaction closes, depending on the record type.

Question 11Arizona Real Estate Statutes, Rules, and Commissioner's Rules

Under the Arizona Subdivided Lands Act, a public report from the Commissioner is generally required before lots are offered when the land is divided into how many lots?

  1. Four or more lots
  2. Three or more lots
  3. Six or more lots Correct answer.
  4. Two or more lots

Explanation

The Subdivided Lands Act applies when land is divided or proposed to be divided into six or more lots for sale or lease. The subdivider must obtain a public report from the Commissioner before offering the lots. Smaller divisions are addressed by other disclosure requirements, such as the affidavit of disclosure.

Question 12Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A seller is dividing unincorporated county land into five parcels and selling one of them. What disclosure does Arizona law require in connection with the sale?

  1. A public report must be obtained from the Commissioner
  2. The sale is void unless the county approves it
  3. No disclosure of any kind is required
  4. An affidavit of disclosure must be given to the buyer Correct answer.

Explanation

A.R.S. 33-422 requires a seller of five or fewer parcels of unincorporated land outside a platted subdivision to deliver an affidavit of disclosure covering access, utilities, water, flood and similar conditions. The buyer acknowledges receipt before closing. The public report process applies to larger subdivisions instead.

Question 13Arizona Real Estate Statutes, Rules, and Commissioner's Rules

After a tenant vacates and returns possession, within how many days must the landlord provide an itemized statement and refund any remaining security deposit?

  1. Twenty days
  2. Five days
  3. Thirty days
  4. Fourteen days Correct answer.

Explanation

Arizona requires the landlord to account for the deposit within 14 days after the tenant vacates and delivers possession, excluding lawful deductions with an itemized list. If deductions exceed the deposit, the landlord must instead provide a written demand for the balance.

Question 14Arizona Real Estate Statutes, Rules, and Commissioner's Rules

Absent an emergency, how much advance notice must an Arizona landlord generally give before entering a rented dwelling for a routine inspection?

  1. No notice at all
  2. Two days Correct answer.
  3. Seven days
  4. Twenty-four hours

Explanation

Under the Arizona Residential Landlord and Tenant Act, the landlord must give the tenant at least two days' notice before entering for inspection, repairs, or showing the unit. Entry must occur at reasonable times. Emergency entry is the exception to the notice requirement.

Question 15Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A residential tenant occupies a month-to-month tenancy with no written lease term. How much notice is generally required to terminate the tenancy?

  1. Thirty days Correct answer.
  2. Ten days
  3. Five days
  4. Fourteen days

Explanation

Either party may terminate a month-to-month tenancy by giving at least 30 days' written notice. A week-to-week tenancy requires only 10 days' notice. The notice period runs as set out in the Arizona Residential Landlord and Tenant Act.

Question 16Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A salesperson advertises a listing on a social media page. Under the Commissioner's advertising rules, the advertisement must include which element?

  1. The salesperson's license number
  2. The seller's written approval only
  3. The name of the employing broker Correct answer.
  4. The listing price of the property

Explanation

All advertising by a licensee must identify the employing broker by name so the public knows which brokerage stands behind the ad. This applies to print, broadcast, and internet advertising, including team advertising. Omitting the broker's name is a rule violation even if other details appear.

Question 17Arizona Real Estate Statutes, Rules, and Commissioner's Rules

Under the Commissioner's rules, who is responsible for supervising the day-to-day real estate activities of a salesperson?

  1. The Commissioner of Real Estate
  2. The salesperson's team leader
  3. The local association of REALTORS
  4. The employing broker Correct answer.

Explanation

The employing broker is accountable for supervising the licensed activities of salespersons and associate brokers in the brokerage. That includes reviewing advertising, handling trust funds, and ensuring compliance with statutes and rules. Supervision duties cannot be delegated away by contract.

Question 18Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A licensee wants to buy a vacation home that her own brokerage has listed. What must she provide regarding her license status?

  1. A written disclosure of license status Correct answer.
  2. A verbal notice to the other agent
  3. A filing with the Commissioner before closing
  4. No disclosure is required at any point

Explanation

When a licensee acquires or leases an interest in property, the licensee must disclose in writing that she holds a real estate license. The disclosure puts the other party on notice that they are dealing with a professional. Verbal notice alone is insufficient.

Question 19Arizona Real Estate Statutes, Rules, and Commissioner's Rules

What is the term of an Arizona real estate license before renewal is required?

  1. Four years
  2. Two years Correct answer.
  3. One year
  4. Six months

Explanation

Arizona real estate licenses are issued for a two-year term and must be renewed with proof of continuing education. Renewal notices are sent before expiration, and late renewals carry additional requirements and fees. Operating on an expired license is a violation.

Question 20Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A listing licensee learns from the seller that the home has a previously undisclosed foundation defect. What is the licensee's obligation?

  1. Wait until the seller gives written permission to reveal it
  2. Disclose the material fact to the parties involved Correct answer.
  3. Keep the information confidential because it harms the seller
  4. Mention it only if a buyer asks directly about the foundation

Explanation

A licensee must disclose known material facts about the property to the parties in the transaction; confidentiality does not extend to concealing defects. Withholding a known material defect can support discipline and civil liability. The seller should be advised to disclose as well.

Question 21Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A broker pays a referral fee to an unlicensed marketing consultant who introduced a buyer to the brokerage. How is this payment treated under Arizona law?

  1. Permissible if the buyer agrees in writing
  2. Permissible because the consultant did not negotiate
  3. A violation, because she is unlicensed Correct answer.
  4. Permissible if the broker discloses it to the seller

Explanation

Compensation for brokerage services, including referral fees tied to a transaction, may be paid only to a licensed person or entity. Paying an unlicensed person for the referral violates the licensing statutes. Written consent from a client does not cure the violation.

Question 22Arizona Real Estate Statutes, Rules, and Commissioner's Rules

Which action may the Arizona Real Estate Commissioner take against a licensee who violates real estate law?

  1. Award attorney fees to the complainant
  2. Suspend or revoke the license after a hearing Correct answer.
  3. Award the complainant punitive damages
  4. Jail the licensee for contempt

Explanation

The Commissioner exercises administrative authority, which includes denying, suspending, or revoking a license and imposing civil penalties after proper notice and hearing. The Commissioner does not incarcerate people, award damages, or grant attorney fees. Monetary relief between private parties is obtained through the courts.

Question 23Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A brokerage relationship ends when the listing expires. How does the licensee's duty of confidentiality regarding the former client's information apply afterward?

  1. It continues, so the information may not be disclosed without consent or legal requirement Correct answer.
  2. It ends the moment the relationship terminates
  3. It ends thirty days after the termination date
  4. It transfers to the cooperating broker in the transaction

Explanation

Confidentiality survives termination of the brokerage relationship and continues indefinitely unless the client consents to disclosure or disclosure is required by law or a court order. This protects information such as the client's motivation and financial position. The duty cannot be transferred to another broker.

Question 24Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A salesperson runs an advertisement that uses only a team name and a phone number. How is this advertisement evaluated under the Commissioner's rules?

  1. Acceptable if the team name is registered
  2. A violation of the advertising rule Correct answer.
  3. Acceptable if the ad lists a phone number
  4. Acceptable if every team member is licensed

Explanation

Advertising under a team name does not relieve the licensee of the duty to identify the employing broker by name. A blind or team-only ad without the broker's name violates the advertising rule. Registration, licensing of team members, and contact information do not substitute for broker identification.

Question 25Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A salesperson signs a listing agreement with a seller in her own name instead of the brokerage's name. What is the status of that agreement?

  1. Valid if the seller initials each page
  2. Valid, because she is licensed
  3. Invalid, since listings must be in the broker's name Correct answer.
  4. Valid only if the broker ratifies it within ten days

Explanation

A salesperson has no authority to contract in her own name for brokerage services; the listing must be taken in the name of the employing broker or brokerage. A listing signed by the salesperson personally is not a valid brokerage contract. The broker, not the salesperson, is the contracting party with the client.

Question 26Arizona Real Estate Statutes, Rules, and Commissioner's Rules

Which person is generally exempt from holding an Arizona real estate license when selling real property?

  1. An individual selling her own residence Correct answer.
  2. A person who negotiates a commercial lease on behalf of another
  3. A person who charges a fee to find buyers for homes
  4. A property manager who leases apartments for an owner for compensation

Explanation

Arizona licensing statutes exempt a person who is selling or leasing his or her own property from the requirement to hold a real estate license. The exemption is personal to the owner and does not extend to persons who perform brokerage services for others for compensation. Property management, finder services, and lease negotiation for another generally require licensure.

Question 27Arizona Real Estate Statutes, Rules, and Commissioner's Rules

Before qualifying for an Arizona real estate broker's license, an applicant generally must have how much experience as a licensed real estate salesperson or associate broker?

  1. Five years
  2. Six months
  3. Three years Correct answer.
  4. One year

Explanation

Arizona requires an applicant for a broker's license to have at least three years of actual experience as a licensed salesperson or associate broker, or equivalent experience acceptable to the Commissioner. A salesperson license alone does not qualify a person to act as a broker. The experience requirement helps ensure brokers have sufficient practical background to supervise others.

Question 28Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A salesperson completes a transaction, and the buyer offers to pay the salesperson a $2,000 bonus directly for finding the home. What should the salesperson do?

  1. Direct the buyer to pay the bonus to the employing broker Correct answer.
  2. Accept it and report it to the broker within 10 days
  3. Accept it as a gift because it is not a commission
  4. Refuse it because buyers may never pay any compensation in a transaction

Explanation

A salesperson may not accept compensation for brokerage services directly from a client; compensation must flow through the employing broker. A payment described as a bonus for finding the home is compensation for licensed activity. The broker can then compensate the salesperson according to their agreement.

Question 29Arizona Real Estate Statutes, Rules, and Commissioner's Rules

An Arizona limited liability company wants to open a brokerage and provide real estate services. What must the LLC do?

  1. Nothing, because only the individual broker needs a license
  2. Have each member obtain a salesperson license
  3. Register with the Commissioner as a foreign entity only
  4. Obtain a real estate broker license and designate a licensed broker Correct answer.

Explanation

A business entity that provides real estate brokerage services must itself hold an Arizona real estate broker license and must have a designated broker. The designated broker is responsible for supervising the entity's licensed activities. Individual member licensing does not substitute for the entity license.

Question 30Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A property manager licensed in Arizona collects rent and security deposits for an owner. Where must these funds be placed?

  1. In a broker trust account Correct answer.
  2. In the broker's general operating account
  3. In the owner's personal checking account
  4. In the tenant's escrow account

Explanation

Rent and security deposits held for an owner are trust funds and must be maintained in a broker trust account. The broker may not commingle client funds with the broker's own operating funds. Proper trust accounting protects both owners and tenants.

Question 31Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A salesperson's Arizona license expires on a Friday. By Monday the salesperson has not renewed but continues showing homes. What is the status of that activity?

  1. Lawful, if no commission is earned until renewal
  2. Unlawful, because practicing on an expired license violates Arizona law Correct answer.
  3. Permitted, because a 30-day grace period applies
  4. Permitted, if the broker supervises the activity

Explanation

A person must hold an active Arizona license to perform licensed real estate activity. An expired license does not authorize continued practice, and earning no commission does not create an exception. The licensee must renew and reactivate the license before resuming licensed activity.

Question 32Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A landlord wants to remove a tenant who has not paid rent. The landlord changes the locks while the tenant is away. Under Arizona law, this action is:

  1. Prohibited, because the landlord must use the court eviction process Correct answer.
  2. Allowed if the landlord gives written notice first
  3. Allowed only if the landlord also removes the tenant's belongings
  4. Allowed if the tenant is more than five days late

Explanation

Arizona law prohibits self-help evictions such as changing locks or removing a tenant's property without legal process. The landlord must pursue an eviction action through the court, often called a special detainer action. Notice alone does not authorize a lockout.

Question 33Arizona Real Estate Statutes, Rules, and Commissioner's Rules

A licensee sends postcards to homeowners in a neighborhood stating that property values will fall because members of a particular racial group are moving in and urging them to list quickly. This conduct is best characterized as:

  1. A violation only if a homeowner actually lists with the licensee
  2. Permitted solicitation if the brokerage name is on the postcard
  3. Blockbusting, which is prohibited discriminatory conduct Correct answer.
  4. Legitimate farming if the statements are truthful

Explanation

Blockbusting is the practice of inducing homeowners to sell by exploiting fears about the entry of a protected class into a neighborhood. It is prohibited discriminatory conduct under fair housing laws and Arizona real estate rules. The violation occurs when the conduct is engaged in, not only when a listing results.

Question 34Arizona Real Estate Statutes, Rules, and Commissioner's Rules

An owner is selling a resale home located in an Arizona planned community. Before closing, what must the seller generally provide to the buyer?

  1. A public report issued by the Real Estate Commissioner
  2. A new subdivision plat approved by the city
  3. An affidavit of disclosure filed with the county
  4. A resale disclosure statement from the community association Correct answer.

Explanation

Arizona's planned community statutes generally require a seller of a resale home in a planned community to furnish the buyer with a resale disclosure statement from the association before closing. The statement provides information about association governance, fees, and other community matters. A public report is generally associated with subdivided lands offerings rather than a resale in an existing planned community.

Question 35Licensing and Regulation of Licensees

What is the minimum age for an applicant to be eligible for an Arizona real estate salesperson's license?

  1. Eighteen years of age Correct answer.
  2. There is no minimum age requirement
  3. Sixteen years of age
  4. Twenty-one years of age

Explanation

Arizona requires a salesperson license applicant to be at least 18 years old, in addition to completing approved prelicense education and passing the licensing examination.

Question 36Licensing and Regulation of Licensees

How many hours of approved prelicense education must a salesperson applicant complete before taking the Arizona licensing examination?

  1. 45 hours
  2. 120 hours
  3. 60 hours
  4. 90 hours Correct answer.

Explanation

Arizona requires 90 clock hours of approved real estate prelicense education for salesperson applicants, completed before the candidate may sit for the state examination.

Question 37Licensing and Regulation of Licensees

How often must an active Arizona real estate license be renewed?

  1. Every three years
  2. Every two years Correct answer.
  3. Every four years
  4. Every year

Explanation

Arizona issues real estate licenses for a two-year term, and the licensee must renew before the expiration date to keep the license active.

Question 38Licensing and Regulation of Licensees

How many hours of continuing education must an Arizona licensee complete during each two-year license period?

  1. 8 hours
  2. 24 hours Correct answer.
  3. 16 hours
  4. 12 hours

Explanation

Arizona requires 24 hours of approved continuing education in each two-year license period in addition to the renewal fee, and the hours must be reported to the Department.

Question 39Licensing and Regulation of Licensees

An Arizona salesperson earns a commission on a completed sale. From whom may the salesperson lawfully receive that compensation?

  1. The buyer, at closing
  2. The escrow company, directly
  3. The cooperating broker, directly
  4. The employing broker Correct answer.

Explanation

A salesperson may be paid only by the employing broker, who then compensates the salesperson under their written agreement. Accepting compensation directly from a client, escrow, or another brokerage violates the license law.

Question 40Licensing and Regulation of Licensees

Which state agency issues and regulates Arizona real estate licenses?

  1. The Arizona Corporation Commission
  2. The Arizona Department of Insurance
  3. The Arizona Department of Real Estate Correct answer.
  4. The Arizona Attorney General's Office

Explanation

The Arizona Department of Real Estate administers the state's real estate license law and handles licensing, renewal, education approval, and discipline.

Question 41Licensing and Regulation of Licensees

Who appoints the Real Estate Commissioner who heads the Arizona Department of Real Estate?

  1. The state Senate
  2. The Governor Correct answer.
  3. Licensed brokers in a statewide election
  4. The Real Estate Advisory Board

Explanation

The Commissioner of Real Estate is appointed by the Governor and serves at the Governor's pleasure, directing the Department's operations and enforcement.

Question 42Licensing and Regulation of Licensees

Which task may an unlicensed assistant lawfully perform for an Arizona brokerage?

  1. Quoting commission rates to a seller
  2. Scheduling appointments for a licensee Correct answer.
  3. Showing a listed property to a buyer
  4. Negotiating the sales price with a buyer

Explanation

Unlicensed assistants may handle clerical and administrative work such as answering the phone and scheduling appointments. They may not negotiate, quote terms or commissions, or show property to prospective buyers.

Question 43Licensing and Regulation of Licensees

Beyond education and examination, an applicant for an Arizona broker's license generally must show what amount of experience as a licensee?

  1. Five years
  2. Three years Correct answer.
  3. One year
  4. Ten years

Explanation

A broker applicant must document at least three years of experience as a licensed salesperson or broker, or equivalent experience, and complete the 90-hour broker prelicense course.

Question 44Licensing and Regulation of Licensees

A corporation wants to be licensed as a real estate broker in Arizona. What must the corporation do?

  1. Hire an outside brokerage to handle all transactions
  2. Name a designated broker who holds an active Arizona broker's license Correct answer.
  3. Have every corporate officer hold a broker's license
  4. Have its president hold a salesperson's license

Explanation

A business entity that is licensed as a broker must designate an individual holding an active Arizona broker license. The designated broker is responsible for the entity's brokerage activities and supervision.

Question 45Licensing and Regulation of Licensees

A licensee advertises a listing on social media. Which element must the advertisement include?

  1. The seller's written approval
  2. The employing brokerage's licensed name Correct answer.
  3. The licensee's home address
  4. The listing price

Explanation

Advertising must identify the employing broker or brokerage as licensed, and a salesperson must obtain broker approval before placing the ad. Omission of the brokerage name makes the advertisement improper.

Question 46Licensing and Regulation of Licensees

How many employing brokers may an Arizona salesperson have at one time?

  1. Two at a time
  2. Only one at a time Correct answer.
  3. Any number, if each broker agrees
  4. Three, with the Commissioner's written consent

Explanation

A salesperson may be affiliated with only one employing broker at a time, and all compensation must flow through that broker.

Question 47Licensing and Regulation of Licensees

A brokerage represents both the seller and the buyer in the same transaction. What does Arizona law require?

  1. The licensee must withdraw from the transaction
  2. Approval from the Commissioner of Real Estate
  3. Written consent from both parties after full disclosure Correct answer.
  4. The broker must reduce the commission

Explanation

Dual agency is permitted only after full disclosure and the informed written consent of both the buyer and the seller. Without that consent, the brokerage may not represent both sides.

Question 48Licensing and Regulation of Licensees

Which action by an Arizona broker constitutes commingling?

  1. Depositing a buyer's earnest money into the brokerage trust account
  2. Reconciling the trust account each month
  3. Paying the brokerage's office rent from trust account funds Correct answer.
  4. Opening a separate trust account for client funds

Explanation

Commingling is mixing client money with the broker's own money. Trust funds may be used only for the clients' transaction, so paying brokerage operating expenses such as rent from the trust account is prohibited.

Question 49Licensing and Regulation of Licensees

A licensee wants to share part of a commission with an unlicensed friend who referred a buyer. Under Arizona licensing law, this payment is:

  1. Prohibited Correct answer.
  2. Permitted if the friend signs a referral agreement
  3. Permitted if the amount is under $500
  4. Permitted with the broker's written approval

Explanation

A person may not be paid for referring or assisting in a real estate transaction unless that person holds a real estate license and is compensated through a broker. Paying an unlicensed referral fee violates the license law.

Question 50Licensing and Regulation of Licensees

A salesperson at Brokerage B is owed a share of the commission on a sale of Brokerage A's listing. How is the salesperson's share properly paid?

  1. Brokerage A pays the salesperson directly at closing
  2. The buyer pays the salesperson at closing
  3. Brokerage A pays Brokerage B, which then pays the salesperson Correct answer.
  4. Escrow pays the salesperson directly at closing

Explanation

Commission splits in a cooperating transaction are paid between the brokerages. The salesperson is then compensated by their own employing broker, never directly by the other brokerage or escrow.