Your FREE Arizona Real Estate Flashcards 2026 – 200+ Cards

The Arizona state agency that licenses and regulates real estate salespersons and brokers under A.R.S. Title 32, Chapter 20; headed by the Real Estate Commissioner.

ADRE's chief officer, appointed by the Governor; issues and disciplines licenses, audits brokerages, and adopts the Commissioner's Rules.

The Arizona Revised Statutes governing real estate licensing and practice — the source of ADRE's authority.

Administrative rules adopted by the Commissioner to implement the statutes: CE, advertising, trust accounts, documents, and conduct.

A private trade association that creates standard Arizona forms (like the SPDS and purchase contract). It is NOT the regulator — ADRE is.

90 hours of ADRE-approved salesperson pre-license education at a certified school, completed within 10 years of application.

A separate 6-hour course required before a salesperson can be licensed in Arizona.

A background-check card from the Arizona Department of Public Safety required to obtain an original Arizona real estate license.

An original or renewed Arizona real estate license is issued for a two-year term.

24 hours of approved CE are required within each two-year license period to renew.

The licensed broker a salesperson must work under; the salesperson cannot operate independently and is paid commission only through the broker.

The individual broker responsible for supervising a brokerage's licensees and trust account in Arizona.

Pearson VUE administers the Arizona real estate licensing examination.

80 scored questions (plus 5 pretest); 150 minutes; 75% to pass.

60 scored questions (plus 5 pretest); 150 minutes; 75% to pass.

75% on each portion; the national and state portions are scored separately and you must pass both.

If you pass one portion but fail the other, you may retake just the failed portion.

A fund that compensates the public for an uncollectible court judgment against a licensee for fraud or misrepresentation.

When the Fund pays a claim, the Commissioner suspends the licensee's license until the Fund is repaid with interest.

An aggrieved person must obtain a final court judgment and exhaust other collection remedies before recovering from the Fund.

A broker must keep client/trust funds in a designated Arizona trust (escrow) account, separate from operating funds.

Improperly mixing client trust funds with the broker's own or business funds — a license-law violation.

Actually using a client's trust funds for the broker's own purposes — more serious than commingling.

An employing broker must keep transaction records for the statutory retention period (generally five years) and make them available to ADRE.

A disclosure report the ADRE Commissioner issues for a subdivision; the subdivider must give it to each lot buyer before sale.

A person who offers six or more lots/parcels in a subdivision for sale or lease and must obtain a Public Report from ADRE.

A separate ADRE-regulated category for large parcels of land sold in fewer lots; it has its own disclosure requirements.

Required when 5 or fewer parcels of unsubdivided land in an unincorporated area are sold; discloses access, utilities, water, wastewater, and flood status; recorded with the deed.

The AAR form a residential seller uses to disclose known material facts; delivered to the buyer within 3 days after contract acceptance.

SPDS = typical residential resale, not recorded; Affidavit of Disclosure = rural unsubdivided land in an unincorporated area, recorded with the deed.

Arizona is a full-disclosure state — a seller must disclose known material facts even if the buyer never asks, even if no SPDS is provided.

The standard Arizona Association of REALTORS form used in most Arizona resale transactions; it sets disclosure timelines.

Representing both buyer and seller is legal only with the prior written consent of both parties; the agent must stay neutral.

Created Active Management Areas (AMAs) requiring proof of a 100-year assured water supply before new subdivision lots can be sold.

Certification by the Department of Water Resources that a subdivision in an AMA has a 100-year water supply.

A region under Arizona's Groundwater Management Act where groundwater use is regulated and an assured water supply is required for new subdivisions.

The state agency that evaluates and certifies a subdivision's assured or adequate water supply.

Arizona's standard security instrument: title is held by a neutral trustee until the loan is repaid.

Arizona's non-judicial foreclosure under a deed of trust, conducted by the trustee without court action.

Limits a lender's ability to collect a deficiency judgment after foreclosure on qualifying owner-occupied residential property.

An Arizona form recorded with most deeds that reports the sale price and transfer details for county assessment.

Property a married couple acquires during marriage is generally owned equally by both spouses.

An Arizona ownership form letting spouses pass property automatically to the survivor.

Arizona's state fair-housing law, mirroring the federal protected classes; enforced by the Attorney General's Civil Rights Division.

The Arizona statute governing most residential leases, including security deposits and habitability.

A licensee's advertising must include the employing broker's name; blind ads (no broker identified) are prohibited.

An Arizona salesperson may be paid commission only by the employing broker, never directly by a client.

A salesperson must notify ADRE and transfer the license; the license is held by the new employing broker.

The Commissioner may suspend or revoke a license, impose civil penalties, and issue cease-and-desist orders.

Arizona law prohibiting deceptive practices in the sale of merchandise, including real estate.

Arizona statutory protection of a portion of a homeowner's equity from certain creditors.

Foreign Investment in Real Property Tax Act — withholding on a sale by a foreign seller, handled at an Arizona closing.

Before a Public Report is issued, a subdivider may take only a reservation, not a binding sale.

Allows licensed real estate brokers and salespersons to draft certain real estate documents incident to a transaction.

An Arizona licensee may fill in standard forms but may not give legal advice or draft custom legal provisions.

Property is assessed and taxed at the county level; unpaid taxes become a lien on the property.

Timeshare offerings are regulated by ADRE and require their own public report and disclosures.

Professional liability coverage many Arizona brokerages carry to protect against negligence claims.

A broker can be held responsible for the acts of salespersons performed within the scope of their work.

A broker (often the buyer's agent) who works with the listing broker and shares the commission.

Escrow/title companies in Arizona act as a neutral third party holding funds and documents until closing conditions are met.

Protects the buyer and lender against title defects existing before the policy; standard in Arizona closings.

Federal RESPA and TILA (TRID) require the Loan Estimate and Closing Disclosure on most loans.

An Arizona licensee must disclose in writing any personal interest in a transaction (e.g., buying or selling for themselves).

An Arizona licensee buying or selling property for their own account must disclose their licensed status.

A dispute between agents on the same transaction is resolved per the brokerage's policies and the Commissioner's Rules.

An Arizona licensee must work within their scope of expertise or associate with someone qualified.

A sale for less than the loan balance, requiring lender approval — covered in Arizona's foreclosure/short-sale topics.

ADRE audits brokerage trust accounts and records to ensure compliance with the statutes and rules.

Earnest money is deposited (often into escrow) and held in trust, then applied to the purchase price at closing.

Land plus everything permanently attached to it and the bundle of legal rights of ownership.

Movable property not affixed to land; the opposite of real property.

Personal property attached to real property so it becomes part of it and transfers with the land.

Tests for whether an item is a fixture: Method of attachment, Adaptability, Relationship, Intention, Agreement.

An item a business tenant attaches; it stays personal property and may be removed before the lease ends.

The most complete ownership — absolute, of unlimited duration, freely transferable by deed or will.

A freehold estate lasting for someone's lifetime; it cannot be willed because it ends at death.

Possession, use, exclusion, disposition, and control — the rights of ownership.

A tenant's right to use property for a term without owning it.

A nonpossessory right to use another's land for a specific purpose, such as a driveway or utility line.

A use right benefiting an adjacent parcel that runs with the land.

An unauthorized intrusion of an improvement onto a neighbor's land; usually found by survey.

Any claim, lien, or right that limits an owner's title.

Government regulation of land for health, safety, and welfare — zoning and building codes; no payment to owner.

Government's power to take property for public use through condemnation, paying just compensation.

Property reverts to the state when an owner dies with no will and no heirs.

The four government powers: Police power, Eminent domain, Taxation, Escheat.

A legal description using distances and compass bearings traced back to a point of beginning.

Describes land by principal meridians and base lines forming townships, ranges, and sections.

1 section = 1 square mile = 640 acres; 1 acre = 43,560 square feet.

Sole ownership by one person or entity.

Co-ownership with right of survivorship; requires the four unities of time, title, interest, possession.

Co-ownership with no survivorship; each owner holds a willable, undivided share.

A deceased co-owner's share passes to the surviving co-owners, not to heirs.

Time, Title, Interest, Possession — required to create a joint tenancy.

The written instrument that conveys title from grantor to grantee.

Grantor = the party conveying title (seller); grantee = the party receiving title (buyer).

Gives the most protection; warrants clear title against all defects, even before the grantor's ownership.

Warrants title only against defects arising during the grantor's ownership.

Conveys only whatever interest the grantor has, with no warranties; clears clouds on title.

Title transfers when the grantor delivers the deed and the grantee accepts it — not on recording.

Entering a deed in the public record; gives constructive notice and sets lien priority.

Notice the law presumes everyone has because a document is recorded or possession is visible.

The recorded history of ownership of a parcel, established by a title search.

Protects the insured against loss from title defects existing before the policy date.

A claim or encumbrance that may impair marketable title until resolved.

Transfer by the owner's choice (sale, gift, will) vs by law (foreclosure, escheat, adverse possession).

Acquiring title by open, notorious, hostile, continuous possession for the statutory period.

The most probable price under fair, open-market conditions — an opinion of value.

Market value is an opinion of probable price; market price is the actual price paid.

The legal, possible, feasible, most profitable use — the basis of value.

A buyer pays no more than the cost of an equally desirable substitute.

Value is maximized when a property fits its surroundings.

A modest home gains value near larger ones; a fine home loses value near lesser ones.

Compare the subject to recently sold similar properties; best for homes.

Land value + cost to rebuild new − depreciation; best for new or special-use property.

Value = net operating income ÷ capitalization rate; best for income property.

Effective gross income minus operating expenses, before mortgage payment.

Rate of return on income property: NOI ÷ value. A higher cap rate means more risk and lower value.

Weighing the three approaches' indications into one final opinion of value — not averaging.

Loss in value from physical deterioration, functional obsolescence, or external obsolescence.

A licensee's estimate of value from recent comparable sales to help price a listing — not an appraisal.

An impartial, USPAP-compliant opinion of value by a licensed appraiser as of a specific date.

A quick value estimate = price ÷ gross monthly (or annual) rent.

Mutual agreement, consideration, legal purpose, and competent parties — plus writing for real estate.

Requires real estate sales contracts (and most leases over a year) to be in writing to be enforceable.

Void = missing an essential element; voidable = a party may rescind (e.g., a minor's contract).

Executory = not yet fully performed; executed = all parties have performed.

Unilateral = a promise for an act; bilateral = a promise for a promise.

Express = stated in words; implied = inferred from conduct.

A response that changes terms; it rejects the original offer and creates a new one.

A buyer's good-faith deposit held in trust and usually applied to the price at closing.

An agreed amount (often the earnest money) a party keeps if the other defaults.

A condition (financing, inspection, appraisal) that must be met for a contract to become binding.

The buyer's interest in property after a sales contract is signed but before closing.

A court order compelling a defaulting party to complete the sale because land is unique.

A buyer pays for the right, but not the obligation, to buy within a set time and price.

A contract employing a broker to find a buyer in exchange for compensation.

The listing broker earns the commission no matter who finds the buyer.

The broker earns the commission unless the owner sells it themselves.

Only the broker who actually finds the buyer earns the commission.

A fiduciary relationship in which an agent represents a principal in dealings with third parties.

Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care.

The duty not to reveal a client's information; it survives the end of the agency.

Representing both buyer and seller; legal only with both parties' informed written consent.

The agent whose actions set in motion an unbroken chain of events leading to the sale; earns the commission.

Assists parties without representing either as an agent; owes honesty and fair dealing.

Bans housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.

Race, color, religion, national origin, sex, familial status, disability — seven classes.

Illegally guiding buyers toward or away from areas based on a protected class.

Inducing owners to sell by claiming a protected class is moving in — illegal.

A lender's illegal refusal to lend or insure in an area based on its makeup.

A rule change (like allowing a service animal) a housing provider must allow for a person with a disability.

A physical change a person with a disability may make to a unit (often at their expense).

Protects households with children under 18 and pregnant persons.

Where a broker must keep client funds, separate from the broker's own money.

Brokers may not agree with competitors to fix commission rates; rates are always negotiable.

The landlord pays the property's operating expenses.

The tenant pays some of the property's operating expenses.

Retail rent tied partly to the tenant's sales.

A contract employing a manager to operate property — leasing, maintenance, and accounting for funds.

Lessor = landlord (owner); lessee = tenant.

A fact that would affect a buyer's decision or price; it must be disclosed.

A hidden defect not found by ordinary inspection; a known one must be disclosed.

'Let the buyer beware' — now limited by modern disclosure laws.

Pre-1978 housing: disclose known lead paint, give the EPA pamphlet, and allow a 10-day test window for sales.

The federal Residential Lead-Based Paint Hazard Reduction Act behind the lead-paint disclosure rule.

An odorless radioactive soil gas that can accumulate indoors; a recognized environmental hazard.

A fiber in old insulation/flooring; controlled by removal or encapsulation.

Grows in damp areas; may require disclosure and remediation.

Can leak and contaminate soil and groundwater, creating cleanup liability.

Federal law imposing liability for cleanup of hazardous-substance contamination.

A review of a property's history and records to identify potential contamination before purchase.

A property psychologically impacted by an event; disclosure rules vary by state.

A property whose redevelopment is complicated by real or perceived contamination.

The borrower's written promise to repay; the evidence of the debt.

A mortgage has two parties; a deed of trust adds a trustee — Arizona uses deeds of trust.

Repaying a loan with regular principal-and-interest payments so the balance reaches zero by term's end.

Loan amount ÷ value; a higher LTV means a smaller down payment and more lender risk.

Usually required on a conventional loan when LTV exceeds 80%.

A loan not backed by the government; may require PMI.

A loan insured by the Federal Housing Administration; low down payments.

A loan guaranteed by the VA for eligible veterans; often 0% down.

Prepaid interest paid at closing to lower the rate; one point = 1% of the loan.

Lets the lender demand the full balance on default.

Requires the loan to be paid in full when the property is sold.

Requires settlement-cost disclosures and bans kickbacks on federally related mortgage loans.

Requires disclosing the cost of credit, including the APR (Regulation Z).

Combined RESPA/TILA disclosures: LE within 3 business days of application; CD at least 3 business days before closing.

Commission = sale price × commission rate.

Price = net ÷ (1 − commission rate). A $282,000 net at 6% needs $300,000.

Divide square feet by 43,560 to get acres.

1 acre = 43,560 sq ft; 1 mile = 5,280 ft — memorize for the Arizona exam.

Area = length × width.

LTV = loan ÷ value. An 80% LTV on a $300,000 home is a $240,000 loan.

1 mill = $0.001 of tax per dollar of assessed value, so 18 mills = 0.018 = 1.8%.

Assessed value × tax rate (or assessed value × mills × 0.001).

Value = net operating income ÷ capitalization rate.

Splitting taxes, rent, and interest by days of ownership; Arizona questions specify 360- or 365-day basis.

Percent of profit or loss = gain or loss ÷ original cost.