Free AZ-REB Practice Questions

Question 1

An Arizona broker keeps $4,800 of the broker's own money in a trust account solely to meet the bank's minimum-balance requirement. The amount is separately identified in the records. May the $4,800 remain?

Accepted Answer

Yes; $4,800 is within the $5,000 limit and serves an authorized purpose

Answer

No; broker money is prohibited even when it exists solely to satisfy a bank requirement

Answer

Yes; any bank-required amount is permitted when identified in a separate broker ledger

Answer

Only after reducing it to $3,000, which is Arizona's current statutory ceiling

Question 2

Forty days after a property-management agreement ended, the former manager has returned the owner's documents and transferred the tenant-security funds to the owner. The required security-obligation list was not delivered. Separately, the manager still holds $18,000 of unobligated owner money, with no unpaid or contingent obligation justifying retention. The final receivables, payables, and bank reconciliation are being prepared. Identify the overdue work.

Accepted Answer

The security list and $18,000 remittance are late; final accounting is not yet due

Answer

Only the security list is late; owner funds and final accounting are both due on day 75

Answer

Only the $18,000 remittance is late; the security list and final accounting share the 75-day deadline

Answer

All three are late because every financial delivery was due within 35 days

Question 3

Seven adjoining 6-acre parcels are designed and advertised as one community. Before marketing begins, the developer deeds three parcels to one LLC and four to another; the same principals control both companies and use the same sales campaign. How is the offering treated under Arizona subdivision law?

Accepted Answer

As one subdivision: the common plan has seven lots, and no lot reaches 36 acres

Answer

As two exempt offerings because neither LLC separately holds six parcels

Answer

As a large-parcel division because the original tract contains more than 36 acres

Answer

As unregulated land until a sixth purchase contract has been recorded

Question 4

Four calendar days before closing, the transaction coordinator gives every party a written notice naming the seller's employing broker and the buyer's employing broker. Each named brokerage represents a party and will receive transaction compensation. Does the notice meet Arizona's current compensation-disclosure rule?

Accepted Answer

Yes; all parties received both broker names at least three calendar days before closing

Answer

No; the notice must also state each salesperson's percentage split

Answer

No; the minimum period is three business days rather than three calendar days

Answer

No; the same information must first appear in the recorded closing documents

Question 5

A designated broker delegates purchase-agreement review in writing to an associate broker whom the designated broker employs. The associate reviews the contract on the eighth business day after execution and places review initials and the date on the signature page. Which compliance finding is warranted?

Accepted Answer

The review is timely; delegation does not shift the designated broker's overall responsibility

Answer

The review is invalid because only the designated broker may examine a purchase agreement

Answer

The review is late because material instruments must be reviewed within five calendar days

Answer

The review transfers all responsibility for the transaction to the associate broker

Question 6

An owner tells a tenant that the property manager is authorized to negotiate and sign lease renewals, then repeatedly permits the manager to do so. The owner later tells the manager that the authority is revoked but gives the tenant no notice. The manager signs another renewal, and the tenant reasonably relies on it. Which doctrine most directly supports the tenant's position?

Accepted Answer

Apparent authority, because the owner's manifestation to the tenant remained unwithdrawn

Answer

Actual authority, because prior instructions remain effective until every affected third party receives notice

Answer

Ratification, because accepting earlier renewals also approves later renewals signed in the same manner

Answer

No authority, because notice to the manager alone defeats all third-party reliance

Question 7

A listing broker possesses an engineer's report documenting active foundation settlement. The seller orders the broker to answer 'no known structural problems' if the buyer asks. Which course satisfies the broker's Arizona duties?

Accepted Answer

Refuse the false statement and disclose the known material defect in writing to all other parties

Answer

Follow the seller's instruction because confidentiality and obedience control every client communication

Answer

Wait for the buyer's inspector to discover the settlement before providing the engineer's report

Answer

Withdraw from the listing without disclosing the report, because ending the agency resolves the conflict

Question 8

A lease gives the tenant a right of first refusal if the owner decides to accept a bona fide third-party offer. The owner has not marketed the property, received an offer, or decided to sell, but the tenant demands an immediate conveyance. What is the owner's present obligation?

Accepted Answer

No sale is required because the contractual event triggering the matching right has not occurred

Answer

Sell immediately at appraised value because a right of first refusal operates as a purchase option

Answer

Invite the tenant to set the first asking price before the owner decides whether to sell

Answer

Treat the right as expired because no third-party offer exists when the tenant demands a sale

Question 9

For 12 years, a neighbor has openly used a private road under express written permission that the Arizona landowner renewed twice. The owner now withdraws permission, and the neighbor claims a prescriptive easement. Which fact defeats the claim?

Accepted Answer

The permitted use was not hostile or adverse under a claim of right

Answer

A road can become prescriptive only when the claimant is the property's sole user

Answer

Arizona requires 20 years of continuous use before any prescriptive right can arise

Answer

Permission cannot be withdrawn until the owner obtains a declaratory judgment

Question 10

The holder of a Type 2 non-irrigation grandfathered groundwater right wants to lease the right, separately from the land, to a qualifying industrial user at another site within the same Active Management Area. Which advice accurately distinguishes this right?

Accepted Answer

It may be leased separately within the same AMA, subject to ADWR requirements

Answer

It is appurtenant to the original parcel and must transfer with that land

Answer

It may be moved anywhere in Arizona without agency review because it is a personal right

Answer

It may move only if the lease also transfers ownership of the original well

Free AZ-REB Practice Questions

Domain 1: Real Estate Statutes

Question 1

Question 2

Question 3

Domain 2: Commissioner’s Rules

Question 4

Question 5

Domain 3: Agency Relationships & Managerial Duties

Question 6

Question 7

Domain 4: Contracts and Contract Law

Question 8

Domain 5: Property Interests, Estates & Tenancies

Question 9

Domain 8: Arizona Water Law

Question 10

The rest of the AZ-REB blueprint

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