ARIZONA SPECIFIC EXAM QUESTIONS
WITH COMPLETE ANSWERS
Any information or document obtained in an official investigation by the ADRE shall
remain
confidential; but _____.
a. the Commissioner must release the information to the media
b. the information may be released only to the Attorney General or the Attorney
General's representative
c. the ADRE must release the information to the Governor's office
d. the Attorney General must release the information to the media - ANSWER-b. the
information may be released only to the Attorney General or the Attorney
General's representative
How long does a licensee have to respond to a notice of hearing?
a. twenty days
b. ten days
c. five days
d. 24 hours - ANSWER-a. twenty days
When does a licensee become eligible to petition for license reinstatement if the
license is
revoked after an ADRE investigation?
a. One year after the revocation.
b. Five years after the revocation.
c. Two years after the revocation.
d. Never. - ANSWER-c. Two years after the revocation
If, on June 30th of any year, the balance in the Real Estate Recovery Fund is less
than _____,
every broker and salesperson renewing a license during the following license year
must pay, in
addition to the license renewal fee, a Recovery Fund fee of twenty dollars and ten
dollars,
respectively.
a. one million dollars
b. one hundred thousand dollars
c. five hundred thousand dollars
d. six hundred thousand dollars - ANSWER-d. six hundred thousand dollars
The statute of limitations to file a complaint against a real estate licensee is _____
from the cause
of action; and the complainant does not need a valid judgment from a civil court to do
so.
a. two years
b. five years
c. three years
d. one year - ANSWER-b. five years
,With regard to Recovery Fund claims, which of the following statements is/are
TRUE?
Statement #1: Every person who has obtained a judgment against a licensee must
also file a
claim against the Recovery Fund.
Statement #2: If the aggrieved person reasonably believes that collection on a
judgment against
a licensee is unlikely or impossible, that person has two years after obtaining the
judgment to file
their application for payment from the Recovery Fund
Statement #3: Three years after an act of negligence on the part of a licensee, an
aggrieved
person would be prevented from filing a lawsuit in civil court because of the statute of
limitations
for negligence actions. However, that person can still file a claim against the
Recovery Fund if
the claim is filed within five years of the negligent act.
a. Statements #1, #2 and #3 are true.
b. Only Statement #3 is true.
c. Only Statement #1 is true.
d. Only Statement #2 is - ANSWER-d. Only Statement #2 is true.
If a civil judgment is obtained against an entity (such as a corporation, general
partnership or
L.L.C.), and the judgment creditor reasonably believes that collection on the
judgment is unlikely
or impossible, the judgment creditor is eligible to file a claim against the Recovery
Fund within
two years after obtaining the judgment.
a. True. The judgment creditor is eligible to file the claim anytime within the two-year
statutory deadline.
b. False. The Fund is liable to pay only against the license of a natural person.
c. False. The judgment creditor must file a claim within one month of obtaining a
judgment.
d. False. The judgment creditor must prove that collection on the judgment is
impossible. A belief that collection is simply unlikely will not fulfill the eligibility
requirement. - ANSWER-b. False. The Fund is liable to pay only against the license
of a natural person
A member of the public files a written complaint against a real estate licensee stating
that she
experienced huge financial losses because she purchased a piece of property upon
the licensee's
false statement that the property would most definitely increase in value, and would
be "sure-
thing" investment. Will the ADRE investigate this complaint or dismiss it?
a. They will investigate because they investigate all complaints associated with the
purchase of real estate in Arizona.
,b. They will investigate it because the licensee who made the statement is under
ADRE
jurisdiction, and the complaint alleges a financial loss.
c. They will investigate because they investigate all written complaints.
d. They will dismiss the complaint because the ADRE is not responsible to control
the
words of a licensee. - ANSWER-b. They will investigate it because the licensee who
made the statement is under ADRE
jurisdiction, and the complaint alleges a financial loss.
According to statute, the Real Estate Recovery Fund's liability shall not exceed
_____.
a. thirty thousand dollars for each transaction
b. ninety thousand dollars for each transaction
c. one hundred thousand for each transaction
d. one million dollars for each transaction - ANSWER-a. thirty thousand dollars for
each transaction
Three years ago, Mr. Seller was represented by Brokerage XYZ as his listing
brokerage. During
the term of the listing, there were multiple mistakes on the part of the broker of XYZ,
and multiple
incidents of negligence. Mr. Seller has indisputable proof of negligence, and
indisputable proof
of financial loss as a result of the negligence. Yesterday, Mr. Seller decided that he
would file a
negligence lawsuit against Agnus Grudge, the broker for XYZ brokerage. What will
be the likely
result?
a. Mr. Seller will likely get a judgment against Agnus Grudge, and if he cannot
collect,
he can file a claim against the Recovery Fund.
b. Mr. Seller will likely NOT get a judgment against Agnus Grudge, but he can file a
claim against the Recovery Fund for some kind of relief.
c. Mr. Seller will likely NOT get a judgment against Agnus Grudge, and he cannot file
a claim against the Recovery Fund.
d. Mr. Seller will likely NOT get a - ANSWER-c. Mr. Seller will likely NOT get a
judgment against Agnus Grudge, and he cannot file
a claim against the Recovery Fund.
A person who holds a broker's license but is not a broker-of-record is _____.
a. a designated broker
b. an associate broker
c. an employing broker
d. a sole proprietor broker - ANSWER-b. an associate broker
Does a person who provides names of buyer prospects to a broker need a license if
that person is
not compensated for the names and addresses?
a. Yes, because providing names to a broker is a form of brokering deals.
, b. No, because the person providing the name is not compensated.
c. Yes, always.
d. No, unless that person also talks about real estate to the prospects. - ANSWER-b.
No, because the person providing the name is not compensated.
Although there are exceptions to the rule, a person who acts as a broker or
salesperson, or who
advertises in a manner that indicates that the person is licensed as a broker or
salesperson, without
being licensed, is guilty of a _____.
a. class 1 misdemeanor
b. class 2 misdemeanor
c. civil offense
d. class 6 felony - ANSWER-d. class 6 felony
To qualify for a broker's license, a person must have _____ of active salesperson
experience.
a. three years
b. one year
c. five years
d. ten years - ANSWER-a. three years
State exam scores are good for _____.
a. one year
b. two years
c. three years
d. one month - ANSWER-a. one year
A licensee taking continuing education (CE) is allowed to receive credit for no more
than _____
CE credit hours per day.
a. 12
b. nine
c. eight
d. 10 - ANSWER-b. nine
To avoid a disciplinary action for late renewal, what must a licensee who is renewing
a license
after the expiration date do?
a. Provide proof of the hardship that resulted in the late renewal.
b. It is not possible to avoid disciplinary action for renewing late.
c. Show good cause for the late renewal.
d. Show proof that the licensee did not conduct licensed activity during the time the
license was in expired status. - ANSWER-b. It is not possible to avoid disciplinary
action for renewing late.
How long does the completion certificate for a prelicensure class last?
a. one year
b. two years
c. ten years
WITH COMPLETE ANSWERS
Any information or document obtained in an official investigation by the ADRE shall
remain
confidential; but _____.
a. the Commissioner must release the information to the media
b. the information may be released only to the Attorney General or the Attorney
General's representative
c. the ADRE must release the information to the Governor's office
d. the Attorney General must release the information to the media - ANSWER-b. the
information may be released only to the Attorney General or the Attorney
General's representative
How long does a licensee have to respond to a notice of hearing?
a. twenty days
b. ten days
c. five days
d. 24 hours - ANSWER-a. twenty days
When does a licensee become eligible to petition for license reinstatement if the
license is
revoked after an ADRE investigation?
a. One year after the revocation.
b. Five years after the revocation.
c. Two years after the revocation.
d. Never. - ANSWER-c. Two years after the revocation
If, on June 30th of any year, the balance in the Real Estate Recovery Fund is less
than _____,
every broker and salesperson renewing a license during the following license year
must pay, in
addition to the license renewal fee, a Recovery Fund fee of twenty dollars and ten
dollars,
respectively.
a. one million dollars
b. one hundred thousand dollars
c. five hundred thousand dollars
d. six hundred thousand dollars - ANSWER-d. six hundred thousand dollars
The statute of limitations to file a complaint against a real estate licensee is _____
from the cause
of action; and the complainant does not need a valid judgment from a civil court to do
so.
a. two years
b. five years
c. three years
d. one year - ANSWER-b. five years
,With regard to Recovery Fund claims, which of the following statements is/are
TRUE?
Statement #1: Every person who has obtained a judgment against a licensee must
also file a
claim against the Recovery Fund.
Statement #2: If the aggrieved person reasonably believes that collection on a
judgment against
a licensee is unlikely or impossible, that person has two years after obtaining the
judgment to file
their application for payment from the Recovery Fund
Statement #3: Three years after an act of negligence on the part of a licensee, an
aggrieved
person would be prevented from filing a lawsuit in civil court because of the statute of
limitations
for negligence actions. However, that person can still file a claim against the
Recovery Fund if
the claim is filed within five years of the negligent act.
a. Statements #1, #2 and #3 are true.
b. Only Statement #3 is true.
c. Only Statement #1 is true.
d. Only Statement #2 is - ANSWER-d. Only Statement #2 is true.
If a civil judgment is obtained against an entity (such as a corporation, general
partnership or
L.L.C.), and the judgment creditor reasonably believes that collection on the
judgment is unlikely
or impossible, the judgment creditor is eligible to file a claim against the Recovery
Fund within
two years after obtaining the judgment.
a. True. The judgment creditor is eligible to file the claim anytime within the two-year
statutory deadline.
b. False. The Fund is liable to pay only against the license of a natural person.
c. False. The judgment creditor must file a claim within one month of obtaining a
judgment.
d. False. The judgment creditor must prove that collection on the judgment is
impossible. A belief that collection is simply unlikely will not fulfill the eligibility
requirement. - ANSWER-b. False. The Fund is liable to pay only against the license
of a natural person
A member of the public files a written complaint against a real estate licensee stating
that she
experienced huge financial losses because she purchased a piece of property upon
the licensee's
false statement that the property would most definitely increase in value, and would
be "sure-
thing" investment. Will the ADRE investigate this complaint or dismiss it?
a. They will investigate because they investigate all complaints associated with the
purchase of real estate in Arizona.
,b. They will investigate it because the licensee who made the statement is under
ADRE
jurisdiction, and the complaint alleges a financial loss.
c. They will investigate because they investigate all written complaints.
d. They will dismiss the complaint because the ADRE is not responsible to control
the
words of a licensee. - ANSWER-b. They will investigate it because the licensee who
made the statement is under ADRE
jurisdiction, and the complaint alleges a financial loss.
According to statute, the Real Estate Recovery Fund's liability shall not exceed
_____.
a. thirty thousand dollars for each transaction
b. ninety thousand dollars for each transaction
c. one hundred thousand for each transaction
d. one million dollars for each transaction - ANSWER-a. thirty thousand dollars for
each transaction
Three years ago, Mr. Seller was represented by Brokerage XYZ as his listing
brokerage. During
the term of the listing, there were multiple mistakes on the part of the broker of XYZ,
and multiple
incidents of negligence. Mr. Seller has indisputable proof of negligence, and
indisputable proof
of financial loss as a result of the negligence. Yesterday, Mr. Seller decided that he
would file a
negligence lawsuit against Agnus Grudge, the broker for XYZ brokerage. What will
be the likely
result?
a. Mr. Seller will likely get a judgment against Agnus Grudge, and if he cannot
collect,
he can file a claim against the Recovery Fund.
b. Mr. Seller will likely NOT get a judgment against Agnus Grudge, but he can file a
claim against the Recovery Fund for some kind of relief.
c. Mr. Seller will likely NOT get a judgment against Agnus Grudge, and he cannot file
a claim against the Recovery Fund.
d. Mr. Seller will likely NOT get a - ANSWER-c. Mr. Seller will likely NOT get a
judgment against Agnus Grudge, and he cannot file
a claim against the Recovery Fund.
A person who holds a broker's license but is not a broker-of-record is _____.
a. a designated broker
b. an associate broker
c. an employing broker
d. a sole proprietor broker - ANSWER-b. an associate broker
Does a person who provides names of buyer prospects to a broker need a license if
that person is
not compensated for the names and addresses?
a. Yes, because providing names to a broker is a form of brokering deals.
, b. No, because the person providing the name is not compensated.
c. Yes, always.
d. No, unless that person also talks about real estate to the prospects. - ANSWER-b.
No, because the person providing the name is not compensated.
Although there are exceptions to the rule, a person who acts as a broker or
salesperson, or who
advertises in a manner that indicates that the person is licensed as a broker or
salesperson, without
being licensed, is guilty of a _____.
a. class 1 misdemeanor
b. class 2 misdemeanor
c. civil offense
d. class 6 felony - ANSWER-d. class 6 felony
To qualify for a broker's license, a person must have _____ of active salesperson
experience.
a. three years
b. one year
c. five years
d. ten years - ANSWER-a. three years
State exam scores are good for _____.
a. one year
b. two years
c. three years
d. one month - ANSWER-a. one year
A licensee taking continuing education (CE) is allowed to receive credit for no more
than _____
CE credit hours per day.
a. 12
b. nine
c. eight
d. 10 - ANSWER-b. nine
To avoid a disciplinary action for late renewal, what must a licensee who is renewing
a license
after the expiration date do?
a. Provide proof of the hardship that resulted in the late renewal.
b. It is not possible to avoid disciplinary action for renewing late.
c. Show good cause for the late renewal.
d. Show proof that the licensee did not conduct licensed activity during the time the
license was in expired status. - ANSWER-b. It is not possible to avoid disciplinary
action for renewing late.
How long does the completion certificate for a prelicensure class last?
a. one year
b. two years
c. ten years
