Arizona Real Estate License Arizona Real Estate Law 3 — Questions and Answers
Question 1: In Arizona, what type of listing agreement gives one broker the exclusive right to earn a commission regardless of who sells?
- Exclusive right-to-sell listing (Correct answer)
- Open listing
- Net listing
- Exclusive agency listing
Correct answer: Exclusive right-to-sell listing
An exclusive right-to-sell listing pays the broker even if the seller finds the buyer.
Question 2: Are net listings legal in Arizona?
- Discouraged and risky but not outright prohibited (Correct answer)
- Required for all commercial deals
- Automatically void
- Mandatory for vacant land
Correct answer: Discouraged and risky but not outright prohibited
Net listings are heavily discouraged due to conflict-of-interest risk but are not flatly banned by statute.
Question 3: What must an Arizona licensee disclose when representing a party in a transaction where they have a personal interest?
- Their licensee status and the interest, in writing (Correct answer)
- Nothing, if the deal is fair
- Only their commission rate
- Only to the broker, not the parties
Correct answer: Their licensee status and the interest, in writing
Licensees buying or selling property in which they have an interest must disclose their license status in writing.
Question 4: In Arizona, earnest money deposits must generally be placed where?
- A neutral escrow or the broker's trust account (Correct answer)
- The salesperson's personal account
- The seller's checking account
- A safe deposit box
Correct answer: A neutral escrow or the broker's trust account
Earnest money must be deposited into a neutral escrow account or the broker's trust (client) account.
Question 5: What is commingling in Arizona real estate practice?
- Mixing client trust funds with the broker's own funds (Correct answer)
- Combining two listings into one
- Sharing a commission with another broker
- Marketing two properties together
Correct answer: Mixing client trust funds with the broker's own funds
Commingling is improperly mixing client trust money with the broker's personal or business funds.
Question 6: Under Arizona law, a broker who fails to supervise salespersons may face what?
- Disciplinary action against the broker's license (Correct answer)
- No consequences
- Only a warning letter
- Liability shifted entirely to the salesperson
Correct answer: Disciplinary action against the broker's license
Employing brokers are responsible for reasonable supervision and can be disciplined for failing to supervise.
Question 7: What does Arizona require regarding the Subdivision Public Report for certain land sales?
- It must be given to buyers before or at signing of subdivided-land purchases (Correct answer)
- It is optional
- It only applies to commercial buildings
- It replaces the deed
Correct answer: It must be given to buyers before or at signing of subdivided-land purchases
ADRE requires a Public Report be issued and delivered to buyers of subdivided land before or at the time of sale.
Arizona Real Estate License Arizona Real Estate Law 3
In Arizona, what type of listing agreement gives one broker the exclusive right to earn a commission regardless of who sells?