Real Estate Exam by State

Arizona · State exam · areas II, VII, X and XI

Arizona property law and foreclosure

Four State exam areas meet on this page, 19 of the 60 scored items and the largest Arizona block: consumer protection laws (II), reasonable skill and care (VII), ownership and encumbrances (X), and foreclosure, short sale and deed in lieu (XI). This is where Arizona’s own numbers live: the homestead amount, the acreage limit of the anti-deficiency rule and the deadline for a deficiency suit, each below with its statute.

Updated Oct 24, 2026 · Not affiliated with any state commission or test provider.

  • 19scored items, four areas
  • 20questions on this page
  • $400,000 base, indexedhomestead exemption
  • 90 daysdeficiency suit deadline

What the four areas cover

From the State outline:

  • II Consumer protection (5): the 1967 Arizona Consumer Fraud Act, the statute of frauds, Arizona fair housing, homestead.
  • VII Reasonable skill and care (6): the licensee’s obligation, property taxes and special assessments, Arizona utility and environmental regulation.
  • X Ownership and encumbrances (5): ownership, liens, deeds, HOAs and restrictions, easements.
  • XI Foreclosure, short sale, deed in lieu (3): the anti-deficiency statute and the foreclosure process.

Anti-deficiency and the trustee’s sale

Who is protected: property of 2.5 acres or less, limited to and used for one single-family or two-family dwelling (A.R.S. § 33-729, § 33-814).

How: after a trustee’s sale of such property the lender cannot sue for the shortfall (§ 33-814(G)); for a mortgage foreclosure the rule covers purchase-money loans (§ 33-729); for loans made after December 31, 2014 it does not cover a builder’s construction loan, a dwelling never substantially completed, or one never actually used as a dwelling.

Everyone else: a lender that wants a deficiency judgment must sue within 90 days of the trustee’s sale, measured against the higher of fair market value or the sale price. Because of that comparison, a low bid at the sale does not inflate the deficiency.

Homestead

Amount: up to $400,000 of equity in the home you live in, adjusted each January 1 for the cost of living since 2024 (A.R.S. § 33-1101).

Limits: one homestead per person or married couple; it shields the home from attachment, execution and forced sale and follows the cash from a sale for up to 18 months. It is tied to the home you reside in.

20 property and foreclosure questions

0 of 20 answered · 0 correct
Question 1 of 20 · Arizona property law and foreclosure · 19 items

Within what time after an Arizona trustee's sale must a lender sue for a deficiency judgment, where one is allowed?

Answer and explanations

Incorrect: Thirty days is shorter than the statute allows.

Incorrect: Six months is longer than the ninety-day window.

Correct: A.R.S. §33-814(A) allows a deficiency action within ninety days after the trustee's sale; after that it is barred.

Incorrect: A year is far beyond the ninety-day limit.

Question 2 of 20 · Arizona property law and foreclosure · 19 items

Which doctrine governs surface water rights in Arizona?

Answer and explanations

Incorrect: Correlative rights share an aquifer among overlying owners; that is not Arizona's surface-water rule.

Incorrect: Riparian rights tie water to land along a stream; Arizona rejected that doctrine for surface water.

Incorrect: Reasonable use is the rule for groundwater outside Active Management Areas, not for surface water.

Correct: Arizona surface water follows prior appropriation: first in time, first in right, for beneficial use.

Question 3 of 20 · Arizona property law and foreclosure · 19 items

Before lots in a new subdivision inside an Active Management Area can be sold, what water document is required?

Answer and explanations

Correct: Inside an AMA a new subdivision needs a certificate of assured water supply from ADWR (or service from a designated provider), showing a 100-year supply.

Incorrect: A drilling notice concerns one well, not the subdivision's long-term supply.

Incorrect: Water quality matters, but the AMA requirement is the assured supply.

Incorrect: An HOA has no role in certifying a water supply.

Question 4 of 20 · Arizona property law and foreclosure · 19 items

Which property would Arizona's homestead exemption NOT protect?

Answer and explanations

Incorrect: A condo the owner lives in qualifies; the homestead can be a condominium used as the residence.

Incorrect: The owner's house and land it sits on are the classic homestead.

Correct: The homestead covers the owner's residence; a second home the owner only visits does not qualify (A.R.S. §33-1101).

Incorrect: A mobile home the owner lives in is expressly covered by the homestead statute.

Question 5 of 20 · Arizona property law and foreclosure · 19 items

A.R.S. §33-729(A) bars a deficiency on a purchase-money loan secured by what kind of property?

Answer and explanations

Incorrect: Commercial property is not protected regardless of size.

Incorrect: Acreage matters: the protection stops above 2.5 acres.

Incorrect: A four-unit building is more than a two-family dwelling, so the owner living there does not bring it inside the rule.

Correct: The anti-deficiency rule covers property of 2.5 acres or less limited to and used as a single one-family or two-family dwelling.

Question 6 of 20 · Arizona property law and foreclosure · 19 items

Until when may an Arizona borrower reinstate a deed of trust after a notice of trustee's sale has been recorded?

Answer and explanations

Incorrect: The deadline is the close of the prior business day, not the start of bidding.

Incorrect: The statute does not cut reinstatement off a month early.

Incorrect: Recording the notice starts the process; reinstatement stays open long after that.

Correct: A.R.S. §33-813(A) allows reinstatement until 5:00 p.m. mountain standard time on the last day, other than a Saturday or legal holiday, before the sale.

Question 7 of 20 · Arizona property law and foreclosure · 19 items

Which recorded document starts a non-judicial (trustee's sale) foreclosure in Arizona?

Answer and explanations

Incorrect: A lis pendens gives notice of a pending lawsuit, which a trustee's sale does not involve.

Correct: The trustee records the notice of sale (A.R.S. §33-808), which also has to be mailed, posted and published.

Incorrect: The trustee's deed is delivered after the sale; it ends the process.

Incorrect: A complaint starts a judicial foreclosure, not a trustee's sale.

Question 8 of 20 · Arizona property law and foreclosure · 19 items

Under the standard AAR Residential Resale Real Estate Purchase Contract, which deed does the seller use to convey title to the buyer?

Answer and explanations

Incorrect: A sheriff's deed follows a judicial foreclosure sale, not a voluntary resale.

Incorrect: A deed of trust secures the buyer's loan; it does not convey the seller's title.

Incorrect: A personal representative's (executor's) deed sells estate property; it is not the deed the resale form calls for.

Correct: The AAR resale purchase contract has the seller convey title by warranty deed (§3c).

Question 9 of 20 · Arizona property law and foreclosure · 19 items

What happens when real property taxes in Arizona go unpaid?

Answer and explanations

Incorrect: Unpaid taxes are a lien until paid or foreclosed; they are not forgiven.

Incorrect: Delinquency starts a lien and sale process; title does not pass on the due date.

Correct: The county treasurer sells tax liens on delinquent parcels; the buyer of the certificate earns interest and may foreclose only if the taxes are not redeemed in time (A.R.S. Title 42, Ch. 18).

Incorrect: A lender may pay to protect its loan, but it is not required by law to do so.

Question 10 of 20 · Arizona property law and foreclosure · 19 items

Under ADEQ rules, when must a seller of a home on a septic system have a transfer-of-ownership inspection done?

Answer and explanations

Correct: A.A.C. R18-9-A316(B) requires the person transferring the property to have a qualified inspector inspect the on-site system within six months before the transfer.

Incorrect: The rule ties the inspection to the transfer, not to an annual schedule.

Incorrect: The inspection is required at transfer even if the system seems fine.

Incorrect: The inspection comes before the transfer, not after it.

Question 11 of 20 · Arizona property law and foreclosure · 19 items

How long does an Arizona owner have to appeal the assessor's valuation of the property?

Answer and explanations

Incorrect: Forty-five days is not the statutory period.

Incorrect: Ninety days exceeds the sixty-day window.

Correct: A.R.S. §42-16051 gives the owner sixty days after the notice of valuation is mailed to petition the assessor.

Incorrect: Thirty days is half the time allowed.

Question 12 of 20 · Arizona property law and foreclosure · 19 items

What determines the legal class of a parcel for Arizona property tax purposes?

Answer and explanations

Incorrect: Age may affect value but not the legal class.

Correct: Arizona assigns property to classes by use (residential, commercial, agricultural and so on), and each class has its own assessment ratio.

Incorrect: Lot size affects value, not the class.

Incorrect: Owner income does not set the property's class.

Question 13 of 20 · Arizona property law and foreclosure · 19 items

An Arizona surface water right goes unused for five straight years. What can happen to it?

Answer and explanations

Correct: A.R.S. §45-141(C) provides that a right not used for five successive years may be forfeited.

Incorrect: Priority comes from the date of appropriation; non-use never improves it.

Incorrect: Arizona water rights can lapse through non-use.

Incorrect: Forfeiture returns the water to the public for appropriation; it does not transfer the right to the land department.

Question 14 of 20 · Arizona property law and foreclosure · 19 items

Under ADEQ rules, what is the minimum setback between a water well and a new septic (on-site wastewater) system?

Answer and explanations

Correct: The setback table in A.A.C. R18-9-A312 sets 100 feet between a water well and an on-site wastewater treatment facility.

Incorrect: Seventy-five feet is not the well setback.

Incorrect: One hundred fifty feet is more than the rule requires.

Incorrect: Fifty feet appears in the table for other features, not for a well.

Question 15 of 20 · Arizona property law and foreclosure · 19 items

Under A.R.S. §33-810, who may bid at an Arizona trustee's sale?

Answer and explanations

Incorrect: Bidding is open to the public, not limited to parties with an interest.

Incorrect: Residency is not a condition for bidding.

Correct: The statute lets any person bid, including the trustee and beneficiary; bidders other than the beneficiary post a $10,000 deposit.

Incorrect: No license is needed to bid at a trustee's sale.

Question 16 of 20 · Arizona property law and foreclosure · 19 items

By when must the winning bidder at an Arizona trustee's sale (other than the beneficiary's credit bid) pay the price bid?

Answer and explanations

Incorrect: There is a fixed deadline; payment cannot wait on recording.

Correct: A.R.S. §33-811(A) requires payment by 5:00 p.m. mountain standard time on the following day, other than a Saturday or legal holiday.

Incorrect: A week is longer than the next-business-day deadline.

Incorrect: Thirty days is far longer than the statute allows.

Question 17 of 20 · Arizona property law and foreclosure · 19 items

What is the management goal of the Phoenix, Prescott and Tucson Active Management Areas?

Answer and explanations

Incorrect: AMAs exist to restrict pumping, not to allow unlimited use.

Incorrect: Adding wells works against the AMA goal.

Incorrect: Planned depletion is the goal of the Pinal AMA, an agricultural area, not of these three.

Correct: These AMAs aim for safe-yield: long-term balance between groundwater pumped and water recharged, set for 2025 in the 1980 Act.

Question 18 of 20 · Arizona property law and foreclosure · 19 items

Who issues the permit needed to drill a new non-exempt well inside an Arizona Active Management Area?

Answer and explanations

Incorrect: Counties handle zoning and building permits, not groundwater permits.

Incorrect: ADEQ regulates water quality and septic systems, not groundwater withdrawal permits.

Incorrect: The Land Department manages state trust land, not well permits.

Correct: ADWR administers the Groundwater Code and issues well permits inside AMAs.

Question 19 of 20 · Arizona property law and foreclosure · 19 items

An Arizona trustee needs to postpone a scheduled trustee's sale. Under A.R.S. §33-810(B), how is the new date announced?

Answer and explanations

Correct: The person conducting the sale postpones it by public declaration at the time and place last set; no other notice is needed, and the new date must fall within 90 days.

Incorrect: A trustee's sale is non-judicial; no court order is needed to postpone.

Incorrect: Postponement does not require a new notice or a new 90-day period.

Incorrect: The statute says no other notice of a postponed sale is required.

Question 20 of 20 · Arizona property law and foreclosure · 19 items

When a home in an Arizona planned community is sold, which document must the buyer receive from the HOA or the seller under A.R.S. §33-1806?

Answer and explanations

Correct: Section 33-1806(A)(1) lists a copy of the association's current bylaws and rules among the required resale documents.

Incorrect: A membership roster is not a required resale document.

Incorrect: Privileged legal advice is not included; the board's open-meeting minutes are.

Incorrect: Past fines on other homes are not part of the required package.

Answer every question to see your score

Ownership, deeds and HOAs

  • Co-ownership: a grant to two or more people creates tenancy in common unless the deed expressly says joint tenancy, or community property, with right of survivorship (A.R.S. § 33-431). Either spouse can end a community-property survivorship right by recording an affidavit terminating it (§ 33-431(D)).
  • Separate property: a married person may convey separate property without the spouse joining in the deed (§ 33-451).
  • HOA resale: the buyer gets the HOA documents within 10 days, from the seller in a community under 50 homes or from the association at 50 or more (§ 33-1806).

Deed types, liens and easements in general are national: transfer of title, property ownership.

Anti-deficiency is not “any home”

The protection turns on the property, not the borrower: 2.5 acres, 1–2 family home, and the land must be limited to and used for that dwelling. A larger parcel, a property put to another use, or, for loans after 2014, a home never completed or never lived in falls outside, and after a trustee’s sale the lender may sue for the shortfall within 90 days.

Other Arizona State exam areas

Arizona property law, quick answers

What is the homestead exemption in Arizona?

It shields the equity in the home you live in against attachment, execution and forced sale. Amount: $400,000 base, indexed under A.R.S. § 33-1101.

Is Arizona an anti-deficiency state?

For homes that qualify: 2.5 acres, 1–2 family home. See who is protected.

How long does an HOA have to provide resale documents in Arizona?

10 days: from the association in a community of 50 or more homes, from the seller in a smaller one (A.R.S. § 33-1806).