Arizona Real Estate Salesperson Exam Study Guide

Real property is land and anything permanently attached to it (fixtures, structures). Personal property (chattel) is movable and not permanently affixed.

Possession, Control, Enjoyment, Exclusion, and Disposition (often remembered as PCEED).

The exam has 140 scored questions, and you need 75% to pass.

The most complete form of ownership — it is of indefinite duration, freely transferable, and inheritable, subject only to government powers and private restrictions.

Police power, Eminent domain, Taxation, and Escheat.

A special agent is hired for a specific, limited task (e.g., a broker listing one property). A general agent has broader authority to act in a range of matters (e.g., a property manager).

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

Joint tenancy includes the right of survivorship and requires the four unities (time, title, interest, possession). Tenancy in common has no survivorship and allows unequal, separately transferable shares.

Yes. Property acquired by either spouse during marriage is generally owned equally by both, while separate property (owned before marriage or received by gift/inheritance) remains individual.

An easement is a legal right to use another's land for a specific purpose. An encroachment is an unauthorized intrusion of a structure onto a neighbor's property.

Contracts for the sale of real property (and most leases over one year) must be in writing and signed to be enforceable.

A mortgage involves two parties (borrower and lender) and typically requires judicial foreclosure. A deed of trust adds a third-party trustee and allows non-judicial foreclosure — Arizona commonly uses deeds of trust.

The federal Fair Housing Act prohibits discrimination based on race, color, religion, national origin, sex, familial status, and disability.

A general warranty deed provides the greatest protection, warranting clear title against all defects. A quitclaim deed transfers only whatever interest the grantor has, with no warranties.

Arizona uses the Gila and Salt River Meridian and the Gila Base Line as the basis for its rectangular survey system (Township and Range divisions).

A broker owns or operates a real estate business and can work independently, while a salesperson must work under the supervision of a broker and cannot accept commissions directly from clients.

Arizona requires sellers to provide a Residential Property Condition Disclosure Form that details the property's condition, known defects, and repairs before transfer of equitable interest, with limited exemptions.

A principal meridian is a north-south line used as a reference line for the rectangular survey system, dividing land into ranges and townships to create a standardized mapping grid.

Federal law requires lead-based paint disclosures for homes built before 1978; Arizona state law requires carbon monoxide detector disclosures and a form for residential rentals and sales.

Arizona requires 90 hours of approved pre-licensing education for real estate salesperson candidates.

Ostensible agency occurs when a broker's actions or failure to clarify agency status leads a third party to reasonably believe an agency relationship exists, creating agency by estoppel.

Arizona residential leases must include property address, rental amount, payment terms, lease duration, and disclosures regarding pool safety, landlord's duty to repair, and lead-based paint if applicable.

Simple interest is calculated only on the principal amount; compound interest is calculated on the principal plus previously earned interest, resulting in faster growth.

A lis pendens is a notice filed in court indicating that litigation is pending regarding a specific property, warning potential buyers and lenders of a possible claim against the property.

Arizona contracts require offer, acceptance, consideration, legal purpose, competent parties, and mutual intent. The statute of frauds requires written evidence for interests in real property.

Exclusive agency: owner retains right to sell themselves without owing commission. Exclusive right to sell: broker earns commission regardless of who sells, even if the owner finds the buyer.

An earnest money deposit demonstrates the buyer's serious intent and good faith in making an offer; it's typically held in escrow and applied toward purchase price or forfeited if buyer defaults.

A preliminary title report shows the current condition of title, identifying liens, easements, encumbrances, and exceptions before issuing a final title insurance policy.

Adverse possession occurs when an unauthorized occupant gains property rights through continuous, open, notorious, hostile, and exclusive possession for the statutory period (typically 10 years in Arizona).

A valid contract is legally enforceable by either party. A voidable contract can be rejected by one party due to fraud, undue influence, or breach, but is valid until disaffirmed.

An HOA is an organization of property owners that enforces community rules, collects dues, maintains common areas, and governs architectural guidelines; membership is often mandatory in planned communities.

Closing costs typically include title insurance, appraisal fees, loan origination fees, escrow fees, recording fees, homeowner's insurance, property taxes, and HOA transfer fees.

A defeasible fee is ownership that can be lost if a specified condition occurs (like a fee simple determinable); fee simple is absolute ownership with no conditions attached.

Price is what someone paid for a property; value is the estimated worth based on market conditions, comparable sales, and appraisal methods (income, cost, and sales comparison approaches).