Arizona Real Estate License Arizona Real Estate License Arizona Real Estate Statutes Questions and Answers 2 — Questions and Answers
Question 1: Under Arizona law, what is the maximum period for which a real estate listing agreement can be automatically renewed without the client's written consent?
- It cannot be automatically renewed (Correct answer)
- 6 months
- 12 months
- 24 months
Correct answer: It cannot be automatically renewed
Arizona statute prohibits automatic renewal clauses in listing agreements without the client's express written consent for each renewal period.
Question 2: Which entity is authorized by Arizona statute to investigate complaints against real estate licensees?
- Arizona Department of Real Estate (Correct answer)
- Arizona Attorney General
- Arizona Board of Realtors
- County Recorder's Office
Correct answer: Arizona Department of Real Estate
The Arizona Department of Real Estate (ADRE) is the statutory body empowered to investigate complaints and take disciplinary action against licensees.
Question 3: According to Arizona Revised Statutes, how long must a designated broker retain transaction records?
- 3 years
- 5 years
- 6 years (Correct answer)
- 10 years
Correct answer: 6 years
Arizona law requires designated brokers to retain all transaction records for a minimum of six years after the close of the transaction.
Question 4: Under A.R.S. Title 32, what happens to earnest money if a buyer and seller cannot agree on its disposition after a failed transaction?
- It is returned to the buyer automatically
- It is given to the seller automatically
- It must be held in trust or interpleaded into court (Correct answer)
- The broker may keep it as commission
Correct answer: It must be held in trust or interpleaded into court
Arizona statute requires the broker to hold the disputed earnest money in trust or file an interpleader action with the court to resolve the dispute.
Question 5: What is the statutory requirement for a real estate salesperson's license to remain active in Arizona?
- Must be employed by a designated broker (Correct answer)
- Must maintain an independent contractor agreement
- Must register with the county recorder
- Must hold membership in a local MLS
Correct answer: Must be employed by a designated broker
Arizona statutes require that a salesperson's license must be held under a designated broker for the license to remain in active status.
Question 6: Under Arizona law, which disclosure is mandatory for the sale of residential property built before 1978?
- Lead-based paint disclosure (Correct answer)
- Asbestos inspection report
- Radon gas certification
- Mold remediation certificate
Correct answer: Lead-based paint disclosure
Federal and Arizona law require sellers of pre-1978 residential properties to provide a lead-based paint disclosure to buyers before the sale.
Arizona Real Estate License Arizona Real Estate License Arizona Real Estate Statutes Questions and Answers 2
Under Arizona law, what is the maximum period for which a real estate listing agreement can be automatically renewed without the client's written consent?