Arizona Real Estate Salesperson Cheat Sheet

General: Property, Title, Value

22% of exam
property characteristics legal descriptions land controls ownership estates title recording valuation principles appraisal approaches CMA and BPO

General: Contracts, Agency, Practice

19% of exam
contract elements contract performance sales contracts agency creation licensee obligations brokerage agreements fair housing risk management

General: Disclosures, Finance, Math

16% of exam
property disclosures environmental hazards financing concepts loan programs federal regulations settlement math calculations prorations

State: Regulation, Protection, Advertising

11% of exam
regulatory framework recovery fund licensing requirements consumer fraud statute of frauds Arizona fair housing homestead laws advertising

State: Agency, Duties, Care

17% of exam
Arizona agency fiduciary duties disclosure obligations conflicts of interest professional competency property types reasonable skill environmental regulation

State: Contracts, Services, Title

15% of exam
Arizona contracts escrow title insurance lending ownership liens deeds foreclosure

Quick Facts

Format Two separately scored exams
General items 80 scored; 5 pretest
General time 150 minutes
State items 60 scored; 5 pretest
State time 90 minutes
Passing score 75% on each exam
Combined total 140 scored; 150 total
Weight basis Combined 140 scored items
Testing vendor Pearson VUE
Combo fee $75 back-to-back
Prelicense course 90 hours; valid ten years
Application clock Within one year after passing

Government Powers: PETE GE

Public powers spell PETE
Police power Eminent domain Taxation Escheat

Real vs Personal Property GE

Real property

Land plus permanent attachments
Usually conveys by deed

Personal property

Movable items
Usually conveys by bill
Attachment and intent guide classification

General Exam Blueprint GE

Property characteristics and use 11 scored items 13.75%
Ownership and title 9 scored items 11.25%
Value and appraisal 11 scored items 13.75%
Contracts and agency 16 scored items 20%
Real estate practice 10 scored items 12.5%
Disclosures and environment 9 scored items 11.25%
Financing and settlement 7 scored items 8.75%
Math calculations 7 scored items 8.75%

Fixture Test: MARIA GE

MARIA decides fixture status
Method Adaptation Relationship Intention Agreement

Actual vs Constructive Notice GE

Actual notice

Direct knowledge
Observed or communicated

Constructive notice

Legally presumed knowledge
Often created by recording
Recording usually creates constructive notice

Property, Estates, and Title GE

Fixture Attached item becomes realty
Trade fixture Tenant business item stays personalty
Emblements Annual crops remain personalty
Fee simple Broadest inheritable estate
Life estate Ends with measuring life
Tenancy in common No survivorship required
Joint tenancy Includes survivorship right
Community property Most marital acquisitions
Valid deed Grantor, grantee, words, description, execution, delivery
Recording Creates constructive notice
Actual notice Directly known information
Title insurance Covers qualifying prior title defects

Value Elements: DUST GE

Value needs DUST
Demand Utility Scarcity Transferability

Market Value vs Price GE

Market value

Opinion
Assumes defined market conditions

Market price

Fact
Actual negotiated amount
Value is opinion; price is fact

Controls and Encumbrances GE

Police power Regulates property use
Eminent domain Takes property with compensation
Taxation Funds public services
Escheat Transfers ownerless estate
Zoning Public land-use control
CC&Rs Private recorded restrictions
Easement Nonpossessory use right
License Revocable personal permission
Encroachment Unauthorized physical intrusion
Lien Monetary property claim
Mechanic's lien Secures unpaid improvement work
Public report Required development disclosure

Valuation and Appraisal GE

Market value Opinion under market conditions
Market price Actual transaction amount
Substitution Comparable alternatives cap value
Contribution Improvement value may differ cost
Anticipation Future benefits drive value
Highest and best use Legal, possible, feasible, productive
Sales comparison Adjust comparable sales
Cost approach Land plus improvements minus depreciation
Income approach Capitalizes property income
Physical deterioration Wear and deferred maintenance
Functional obsolescence Design reduces utility
Economic obsolescence Outside forces reduce value
CMA or BPO Broker pricing analysis

General vs State Exam GE

General

80 scored; five pretest
150 minutes
Eight content categories

State

60 scored; five pretest
90 minutes
Eleven content categories
Track each exam independently

Contract Classification Flow GE

Question asks formation → Check five valid elements
Writing issue appears → Apply Statute of Frauds
New terms replace offer → Treat as counteroffer
Party may rescind → Test voidable status
No legal effect ever → Classify void
Court remedy is barred → Classify unenforceable
All duties completed → Classify executed
Performance remains → Classify executory

Contracts and Enforceability GE

Voluntary No duress or coercion
Agreement Offer meets acceptance
Competent parties Parties have legal capacity
Consideration Bargained legal value
Lawful purpose Objective is legally permitted
Statute of Frauds Writing signed by charged party
Executed All promises performed
Executory Performance remains due
Void Never legally enforceable
Voidable Valid until rescinded
Unenforceable Valid but court remedy barred
Counteroffer Rejects and replaces original
Option Keeps offer open for consideration

Void vs Voidable GE

Void

No legal effect
Cannot become enforceable

Voidable

Valid unless rescinded
Protected party chooses
Ask whether rescission is possible

Mortgage vs Deed of Trust GE

Mortgage

Mortgagor and mortgagee
Two-party security instrument

Deed of trust

Trustor, trustee, beneficiary
Three-party security instrument
Count parties before naming instrument

Math Formula Selection GE

Area asks acres → Divide feet by 43,560
Area asks square feet → Multiply acres by 43,560
LTV requested → Loan divided by value
Cap rate requested → NOI divided by value
Value from income → NOI divided by cap rate
Commission requested → Price times rate
Proration requested → Read stated day basis
Seller net requested → Price minus seller costs

Financing and Settlement GE

Promissory note Evidence of borrower debt
Mortgage Two-party security instrument
Deed of trust Three-party security instrument
Trustor Borrower
Trustee Neutral title holder
Beneficiary Lender
FHA Insures qualifying loans
VA Guarantees qualifying loans
USDA Supports eligible rural loans
Conventional No government insurance
PMI Protects lender against default
RESPA Settlement disclosures; kickback limits
TILA / Regulation Z Consumer credit cost disclosure
ECOA Bars credit discrimination
TRID Loan Estimate; Closing Disclosure
Settlement Transfer funds and documents

Disclosure, Housing, Environment GE

Material fact Could affect party decision
Buyer ability Disclose known performance concerns
As-is Never erases known-fact duties
Federal classes I Race, color, religion, national origin
Federal classes II Sex, familial status, disability
Steering Channels protected buyers
Blockbusting Induces sales through protected-class fear
Redlining Denies services by location
Reasonable accommodation Changes rules or services
Reasonable modification Changes physical premises
Lead-based paint Pre-1978 federal disclosure
CERCLA Hazardous cleanup liability
Phase I assessment Records and site review
Phase II assessment Sampling tests suspected contamination
Local ordinances May add protected classes

Math Formula Grid GE

One acre 43,560 square feet
One mile 5,280 feet
Commission Price × commission rate
LTV Loan ÷ property value
NOI Income − operating expenses
Cap rate NOI ÷ property value
Income value NOI ÷ cap rate
GRM Price ÷ gross rent
Equity Value − total debt
Simple interest Principal × rate × time
Seller net Price − seller costs
Proration basis Use stated days and owner

Arizona State Exam Blueprint ST

Regulatory framework 5 scored items 8.33%
Consumer protection laws 5 scored items 8.33%
Advertising 5 scored items 8.33%
Arizona agency 6 scored items 10%
Licensee duties and obligations 6 scored items 10%
Licensee competencies and duties 6 scored items 10%
Reasonable skill and care 6 scored items 10%
Contracts 8 scored items 13.33%
Critical business services 5 scored items 8.33%
Ownership and encumbrances 5 scored items 8.33%
Foreclosure processes 3 scored items 5%

Arizona Licensing and Regulation ST

ADRE Arizona real estate regulator
A.R.S. Statutes: Title 32 Chapter 20
A.A.C. Rules: Title 4 Chapter 28
Article 26 Draft instruments within represented transactions
Minimum age 18 at license application
Prelicense course 90 hours; valid ten years
Contract writing Six hours; valid two years
Exam validity Apply within one year
Employing broker Only one employing broker
Compensation Flows through employing broker
Fingerprinting DPS clearance card required

Fiduciary Duties: OLDCAR ST

Old Loyal Dogs Chase All Rabbits
Obedience Loyalty Disclosure Confidentiality Accounting Reasonable care

Client vs Customer ST

Client

Agency relationship exists
Receives fiduciary duties

Customer

No agency relationship
Receives fair dealing
Representation creates fiduciary duties

Relationship and Disclosure Flow ST

Party signs representation → Treat as client ( Apply fiduciary duties )
Party lacks representation → Treat as customer ( Deal fairly )
Same brokerage represents both → Get prior written consent ( Limited representation )
Fact affects consideration → Disclose promptly ( All parties may need notice )
Knowledge exceeds competence → Disclose limitation ( Use qualified expert )
Client gives unlawful direction → Refuse instruction ( Obedience covers lawful acts )
Personal interest appears → Disclose conflict ( Before party becomes bound )
Agency ends → Maintain confidentiality ( Other duties may cease )

Agency and Licensee Duties ST

Client Receives fiduciary duties
Customer Receives fair dealing
Obedience Follow lawful client instructions
Loyalty Put client interests first
Disclosure Share known material information
Confidentiality Continues after agency termination
Accounting Track money, timelines, risks
Reasonable care Meet professional competency standards
Express agency Agreement creates representation
Implied agency Conduct creates representation
Limited representation Requires prior written consent
Compensation source Does not determine representation

Arizona Transaction Disclosures ST

Seller disclosure Known property conditions
Pool barrier notice Deliver required safety disclosure
Soil remediation Provide required notice
HOA or condominium Deliver statutory information
Affidavit of disclosure Applies to qualifying land
Military airport Use mapped-area notice
Public airport Use mapped-area notice
Subdivision Public report may apply
Licensee interest Disclose before party becomes bound
Outside expertise Disclose limits; obtain assistance
Offer delivery Submit promptly unless instructed otherwise

Arizona Closing and Distress ST

Escrow Neutral conditional stakeholder
Title search Finds recorded ownership issues
Owner policy Protects buyer's title interest
Lender policy Protects lender's title interest
Closing costs Allocate by contract and law
Trustee sale Nonjudicial deed-trust foreclosure
Judicial foreclosure Court-supervised lien enforcement
Anti-deficiency Protection needs statutory criteria
Short sale Lender accepts below payoff
Deed in lieu Borrower voluntarily conveys title
Water rights Verify source, right, transferability
HOA restrictions Inspect governing documents

Common Traps

Two Exams, Not Portions

Pass each exam separately ≠ Pretest items look scored

Blueprint Denominators

General counts use eighty ≠ State counts use sixty

Agency Is Not Compensation

Payment source does not create agency ≠ Representation creates fiduciary duties

As-Is Still Discloses

Known material facts still matter ≠ Inspection rights depend on contract

Forms Are Not Legal Advice

Draft only in represented transactions ≠ Refer legal questions outward

Proration Assumptions

Use stated day-count basis ≠ Assign closing day as stated

Arizona Agency Vocabulary

Study limited representation ≠ Require prior written consent

Last Minute

1. Memorize 80/60 scored split
2. Budget 150/90 minutes
3. Target 75% each exam
4. Answer every pretest item
5. Memorize acre and mile constants
6. Drill sixteen-item General contracts
7. Drill eight-item State contracts
8. Review agency disclosure duties
9. Separate client from customer
10. Check deed parties and notices
11. Rehearse NOI, cap, LTV formulas
12. Verify Pearson booking details