Arizona real estate practice exam, State part first

Incorrect: "For sale by owner" hides that the seller is a licensee, which the rule forbids.

Incorrect: The rule asks for the owner/agent label, not license dates.

Correct: A licensee advertising her own property must disclose both her license status and ownership by placing the words "owner/agent" in the ad.

Incorrect: Saying nothing because it is her own home gets the rule backwards: owning the property is exactly when the owner/agent label applies.

Incorrect: A yearly meeting may help with training, but it is not a supervision system.

Incorrect: Verbal guidance alone does not meet the written-policy requirement.

Correct: The rule defines reasonable supervision as establishing and enforcing written policies, procedures and systems for transactions, trust funds, documents and advertising.

Incorrect: Supervision is continuous, not triggered only by complaints.

Incorrect: Missing CE blocks renewal; it is not an emergency.

Incorrect: Paperwork gaps are handled through the application process, not summary suspension.

Incorrect: Late fees lead to expiration, not to emergency suspension.

Correct: A.R.S. §32-2157(B) allows summary suspension when the public health, safety or welfare imperatively requires emergency action and the order says so.

Correct: An inactive licensee owes no CE while inactive, but the Commissioner may require CE hours before activating the license.

Incorrect: The statute does not mention reference letters for activation.

Incorrect: Activation of an inactive license does not require a new exam.

Incorrect: No double fee applies to activating an inactive license.

Incorrect: Indictments come from prosecutors and grand juries, not the Commissioner.

Incorrect: A license is not a tool to stop unlicensed activity.

Correct: A.R.S. §32-2154 lets the Commissioner order any person to cease and desist from a violation, and to seek an injunction in court.

Incorrect: The Commissioner has stronger powers than a letter, starting with a cease and desist order.

Incorrect: The rule covers premiums offered to promote sales whether or not a contract follows.

Correct: The rule requires clear written disclosure of terms, costs, conditions, restrictions and expiration date before the person participates.

Incorrect: Disclosure after the fact is too late; it must come first.

Incorrect: Oral disclosure does not meet the written requirement.

Incorrect: The reserve is the owner's money under the owner's agreement; tenants have no say in it.

Incorrect: The statute asks for the reserve's amount and purpose, not the branch where it sits.

Incorrect: Arizona sets no cap on the reserve; the parties agree on the amount and the agreement states it.

Correct: The agreement must state the amount and purpose of monies the firm holds as an operating reserve for emergency and other purposes.

Incorrect: Sixty days is a rule in some other states, not Arizona.

Correct: A month-to-month tenancy can be ended or re-set on 30 days' written notice before the periodic rental date (A.R.S. §33-1375(B)), so the increase follows the same notice.

Incorrect: Fifteen days is shorter than the month-to-month notice period.

Incorrect: Monthly renewal does not let a landlord change rent without notice.

Incorrect: Zoning approval alone does not authorize timeshare sales; the state public report is still required.

Incorrect: An HOA board has no power to authorize sales to the public.

Correct: A.R.S. §32-2197.08 requires the Real Estate Commissioner to approve a timeshare public report before the interests are sold, and each buyer gets a copy.

Incorrect: A federal filing does not replace the Arizona timeshare public report.

Incorrect: Photographs of the damage may support the claim, but photos alone do not meet the duty to itemize each deduction.

Incorrect: The list must be mailed in writing to the tenant's last known address unless the tenant arranges otherwise in writing.

Incorrect: Invoices alone do not meet the duty to itemize every deduction.

Correct: A.R.S. §33-1321(D) requires an itemized list of all deductions together with any amount due back to the tenant.

Correct: A.R.S. §33-1343 lets the landlord show the unit, but outside an emergency it must give at least two days' notice and enter only at reasonable times.

Incorrect: Neighbors have no say over access to another tenant's unit.

Incorrect: A court order is needed only when the landlord has no statutory right of access; showing the unit is a listed purpose.

Incorrect: Owner approval does not replace the tenant's two-day notice.

Incorrect: A routine service notice is not an adverse act against the tenant.

Correct: A.R.S. §33-1381 bars raising rent because the tenant complained to a code agency; a complaint within six months before the increase is presumed to be the reason.

Incorrect: Collecting rent that is due is a normal right of the landlord.

Incorrect: An inspection the tenant requested is not a retaliatory act.

Correct: A.R.S. §33-1318(A) releases the tenant from future rent when the notice comes with a protective order or a law-enforcement report.

Incorrect: The statute does not make the victim find a replacement tenant.

Incorrect: The statute bars early-termination penalties and fees.

Incorrect: Avoiding liability for future rent is the point of the statute.

Incorrect: Buyers do not assume the developer's blanket loan; they need a way out from under it.

Incorrect: The lender's name and recording number identify the lien, but without the release terms the buyer is not protected.

Incorrect: Encumbrances on the land must be disclosed; the blanket lien is exactly what a buyer needs to know about.

Correct: A.R.S. §32-2181(A)(4) requires a statement of the terms that let a buyer take title free of the blanket encumbrance once the buyer has paid and performed.

Incorrect: Twenty-five years is far below the standard.

Incorrect: Seventy-five years falls short of the 100-year standard.

Correct: An assured water supply requires showing physically, legally and continuously available water for 100 years.

Incorrect: Fifty years is half the required period.

Incorrect: Subtracting the $240,000 sale price ignores the rule that the higher fair market value is used.

Incorrect: That is fair market value minus the sale price, which is not the deficiency.

Incorrect: Averaging fair market value and the sale price (252,500) is not the statutory measure; the higher of the two is used.

Correct: The deficiency is the debt minus the higher of fair market value or sale price: $300,000 minus $265,000 leaves $35,000.

Incorrect: Fifteen days exceeds the ten-day deadline.

Incorrect: Thirty days is three times the statutory period.

Correct: For communities with fewer than 50 properties, A.R.S. §33-1806(A) has the member deliver the information within ten days after accepting the offer.

Incorrect: Five days is shorter than the statute requires.

Incorrect: The statute names the places; the trustee does not choose three.

Incorrect: The county recorder's office is where the notice is recorded, a separate step, and city hall is not a posting place; posting goes on the property and at the court.

Incorrect: Posting on the property alone is not enough, and it must be 20 days before.

Correct: A.R.S. §33-808(A)(3) requires posting on the property at least 20 days before the sale and at a public-notice place at a superior court building in the county.

Incorrect: Paying the whole balance is a payoff, not a reinstatement.

Correct: Under A.R.S. §33-813 the borrower cures by paying what is in default plus the trustee's and attorney fees and costs the statute allows, not the full balance.

Incorrect: Reinstatement does not require new financing.

Incorrect: Every amount in default must be paid, not just the latest.

Incorrect: Light editing that misstates nothing material is not consumer fraud.

Incorrect: A later price cut is a business decision, not deception.

Correct: A.R.S. §44-1522 bars deception, false promises, misrepresentation, and concealment or omission of a material fact with intent that others rely on it.

Incorrect: The Act covers oral and written statements alike; the medium is not the test.

Incorrect: Mechanic's liens have a short enforcement window; they do not last forever.

Correct: A.R.S. §33-998 requires an action to enforce the lien within six months after recording; after that the lien cannot be enforced.

Incorrect: Only a court judgment creates a judgment lien; time alone does not.

Incorrect: Arizona has no annual renewal for mechanic's liens.

Incorrect: Riparian doctrine concerns streams and does not apply to Arizona groundwater.

Incorrect: Prior appropriation governs surface water, not groundwater.

Correct: Outside AMAs a landowner may pump groundwater for reasonable and beneficial use on the overlying land.

Incorrect: Arizona does not let landowners pump without limit as absolute owners.

Incorrect: The statute asks for current amounts, not forecasts.

Incorrect: Other owners' payments are not part of the statement.

Incorrect: Management pay is not a required disclosure.

Correct: The dated statement gives the regular assessment and the remaining installments of any approved special assessment.

Incorrect: Visibility of the runway does not affect the duty.

Incorrect: Flight schedules are not a required disclosure.

Correct: Arizona requires disclosure that property lies in the territory in the vicinity of a military airport (A.R.S. §28-8484 maps), because of noise and overflight.

Incorrect: Personnel names have nothing to do with the disclosure.

Incorrect: Recent use preserves a right but does not set its priority date.

Incorrect: A sale of the land does not change the right's priority.

Incorrect: Registration of the present owner does not reset priority.

Correct: Seniority runs from the date the right was first initiated; earlier dates take water first in a shortage.

Incorrect: The $10,000 deposit applies to every bidder except the beneficiary.

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

Correct: Only the beneficiary may bid in credit instead of cash (A.R.S. §33-810(A)), up to the amount it is owed.

Incorrect: The beneficiary is the one bidder allowed to credit bid.

Incorrect: Removal comes only after a court judgment in the forcible detainer case.

Incorrect: A verbal request is not the written demand the statute requires.

Incorrect: The sale is over; a new notice of sale has no role.

Correct: A.R.S. §12-1173.01 lets the buyer at a trustee's sale bring forcible detainer after a written demand for possession.

Correct: The beneficiary records a substitution of trustee (A.R.S. §33-804), and the successor carries on without restarting the process.

Incorrect: Substitution lets the process continue; it does not reset it.

Incorrect: A trustee's resignation does not cancel the sale or cure the default.

Incorrect: Substitution is done by recorded document, not by court order.

Incorrect: Forty-eight square miles is larger than a 6-by-6 township.

Incorrect: Twenty-four is the spacing of guide meridians in miles, not the size of a township.

Correct: A township is 6 miles by 6 miles, which is 36 sections of one square mile each.

Incorrect: Sixty-four would be an 8-by-8 square, not a township.

Correct: Ranges are columns counted east or west of the principal meridian.

Incorrect: Tiers (township lines) are rows counted north or south of the base line.

Incorrect: A section is a one-square-mile unit inside a township, not a position from the meridian.

Incorrect: A quarter divides a section; it says nothing about distance from the meridian.

Incorrect: A satisfaction clears a paid mortgage, not a contractor's lien.

Incorrect: A quitclaim conveys an ownership interest; the contractor has none to convey.

Correct: Once paid, the claimant signs a release of lien, and recording it removes the lien from title.

Incorrect: A notice of completion starts lien deadlines; it does not release a lien.

Incorrect: The fee is paid by the builder to the local government, so it reduces profit.

Correct: Impact fees make developers pay for the roads, water, sewer and parks that new growth requires.

Incorrect: Impact fees fund new infrastructure; they do not lower anyone's property tax.

Incorrect: Commissions are paid under employment agreements, not through government fees.

Correct: In a short sale the price does not cover the loan, so the lender has to agree to release its lien for less.

Incorrect: A short sale is not a trustee's sale, so the anti-deficiency rules do not automatically apply; the release terms decide.

Incorrect: No statute sets a 30-day deadline for short sales.

Incorrect: A short sale is a private sale; no court is involved.

Incorrect: Junior liens do not survive a senior foreclosure.

Incorrect: The sale buyer takes free of junior liens and owes nothing on them.

Correct: A trustee's sale under the senior lien wipes out interests junior to it; the junior holders share only in any surplus.

Incorrect: Liens do not jump to other property of the borrower.

Incorrect: That describes liquidated damages, not a contingency.

Incorrect: Earnest money shows good faith; it is not a condition on performance.

Correct: A contingency, such as financing or inspection, makes performance depend on an event; if it fails, the protected party can cancel.

Incorrect: The closing date is a term of performance, not a condition.

Correct: Loyalty is the duty to place the client's interests above all others, including the agent's own commission.

Incorrect: Diligence is reasonable care and effort; it says nothing about whose interests come first.

Incorrect: Accounting is the duty to safeguard and account for the client's money, not to rank the client's interests first.

Incorrect: Obedience means following the client's lawful instructions; it does not by itself put the client ahead of the agent.

Incorrect: Showing a home to two buyer-clients raises competing-offer issues, but it is not dual agency in one deal.

Incorrect: Separate transactions create no conflict between the two clients' sides.

Correct: Dual agency means the same agent or brokerage represents both sides of the same transaction.

Incorrect: Cooperating brokers on opposite sides is ordinary single agency on each side.

Incorrect: National origin is one of the original protected classes.

Incorrect: Religion has been protected since the Act passed in 1968.

Correct: The Act protects race, color, religion, sex, national origin, familial status and disability; income is not on the list.

Incorrect: Familial status, meaning households with children under 18, was added in 1988.

Incorrect: Six months is shorter than the HUD filing period.

Incorrect: Two years is the deadline for a private lawsuit in federal court, not a HUD complaint.

Incorrect: Thirty days is far shorter than the one year allowed.

Correct: HUD accepts an administrative complaint filed within one year of the last discriminatory act.

Incorrect: Methane is a concern near landfills and gas lines, not a routine basement test.

Incorrect: Carbon monoxide comes from combustion appliances, and detectors belong near sleeping areas, not just basements.

Correct: Radon is a radioactive soil gas that seeps in from below and collects in the lowest levels, so tests are placed there.

Incorrect: Hydrogen sulfide is a sewer or well-water odor issue, not a standard home test.

Incorrect: Owner consent does not satisfy the federal inspection and work-practice rules.

Incorrect: A building permit alone does not address asbestos handling.

Correct: Federal asbestos rules (EPA NESHAP) require a thorough inspection before renovation and removal of regulated asbestos by trained, accredited workers.

Incorrect: A building inspector's walkthrough is not an asbestos inspection.

Incorrect: Insurance does not make loans close or sell faster.

Incorrect: Mortgage insurance is a cost to the borrower; it does not exist to raise rates.

Incorrect: It adds a policy to the file rather than removing paperwork.

Correct: Mortgage insurance covers part of the loss if a borrower defaults, which makes low-down-payment loans safer to buy.

Incorrect: Inspections check construction, not whether a use is allowed.

Incorrect: A rezoning does not depend on the property being under contract.

Correct: A rezoning amends the zoning ordinance, which requires notice and a public hearing where neighbors can speak.

Incorrect: An appraisal estimates value; it is not part of the rezoning process.

Incorrect: That phrase describes any construction site, not the zoning concept.

Incorrect: Urban design is a planning field, not what the abbreviation means.

Correct: A planned unit development groups mixed housing and common areas under flexible zoning approved as one plan.

Incorrect: There is no standard zoning tool by that name.

Incorrect: A receipt only confirms that one document was recorded.

Incorrect: A deed of trust is one security instrument, not a history of the title.

Incorrect: The affidavit reports one sale's price to the assessor; it does not trace title.

Correct: An abstract condenses every recorded conveyance and encumbrance in the chain of title.

Correct: If the landlord makes unlawful entries or harassing demands for entry, the tenant may get an injunction or terminate, plus damages of at least one month's rent.

Incorrect: Neighbor noise may be a lease issue, but it is not the access abuse that §33-1376 addresses.

Incorrect: A job move is the tenant's own circumstance, not landlord misconduct, and gives no statutory right to end the lease.

Incorrect: Buying a home is a personal reason with no statutory right to terminate early.

Incorrect: Thirty days appears nowhere in the definition; the test is five days here.

Incorrect: Even for an abandoned unit the landlord must first mail and post a notice and wait five days.

Incorrect: Abandonment is defined by facts in the statute, not by a court judgment.

Correct: Five days' absence with five days' unpaid rent and no personal property left meets the statutory definition of abandonment; the landlord then mails and posts the notice.

Incorrect: Oral notice to buyers does not satisfy the written notice to the Commissioner.

Incorrect: A county filing does not give ADRE the notice the statute requires.

Correct: A.R.S. §32-2184(A) makes it unlawful to keep offering lots after a material change without first notifying the Commissioner in writing; the Commissioner may require an amended report.

Incorrect: The duty arises before further offers, not at some later renewal.

Correct: R4-28-502(I) requires written consent before a sign goes up, and §32-2153(A)(12) makes a sign without written authority grounds for discipline.

Incorrect: HOA rules may limit signs, but they do not replace the owner's written consent.

Incorrect: The sign offers the home for rent; there is no tenant yet.

Incorrect: Verbal permission is not the written consent the rule requires.

Incorrect: An informal phone call is not the written agreement the statute requires.

Incorrect: No per-transaction fee replaces the written agreement.

Incorrect: No online registration substitutes for the cooperation agreement.

Correct: The Arizona broker and the out-of-state broker must sign a written cooperation agreement before the out-of-state broker acts, and the Arizona broker accepts responsibility for those acts.

Correct: Each branch office must be under the management of a broker or a licensed salesperson, and it needs its own branch office license.

Incorrect: The statute lets someone other than the designated broker manage a branch.

Incorrect: The manager must hold a broker's or salesperson's license.

Incorrect: Associate brokers may manage, but so may licensed salespersons.

Correct: The statute lists the sale date, time and place, the property's address and legal description, the tax parcel number, the original principal balance and the parties; the purchase price is not on the list.

Incorrect: The date, time and place are the first required item.

Incorrect: The tax parcel number is a required item.

Incorrect: The original principal balance shown on the deed of trust is required.

Incorrect: Ninety days is the deficiency-suit window after a trustee's sale, not the judicial redemption period.

Incorrect: Thirty days applies only when the court found the property abandoned and not used mainly for farming or grazing.

Incorrect: One year is longer than Arizona's six-month redemption period.

Correct: Section 12-1282(B) gives the debtor six months after the sale to redeem unless the court found the property abandoned.

Correct: Negotiations go through the principal's broker unless the principal waives this in writing and no licensed representative of that broker is available for 24 hours; both conditions are needed.

Incorrect: Unavailability alone is not enough; the seller must also waive the requirement in writing.

Incorrect: A call from the seller is not a written waiver.

Incorrect: The waiver has to come from the listed seller, the principal whose broker is bypassed.

Correct: R4-28-1101(C) requires a licensee to perform expeditiously and not to delay, intentionally or through neglect.

Incorrect: No money was handled; the problem is the delay in passing on a document.

Incorrect: Advertising rules have nothing to do with delivering a counteroffer.

Incorrect: No defect is involved; the breach is the delay itself.

Correct: A controversy with another licensee may not jeopardize, delay or interfere with the client's transaction; each side keeps the right to pursue the dispute later.

Incorrect: The rule does not hand the dispute to one side; it keeps the dispute out of the client's deal.

Incorrect: Shifting the dispute onto the seller is not what the rule requires.

Incorrect: ADRE does not hear purely civil commission disputes between licensees (A.R.S. §32-2152(B)), and the closing may not wait on the argument.

Correct: Outside her field of competence she must engage a competent person's help, or disclose her lack of expertise in writing before the client hires her.

Incorrect: A salesperson license covers commercial property; the issue is competence, not license scope.

Incorrect: Arizona has no commercial endorsement; the rule is about help or written disclosure.

Incorrect: Broker approval does not satisfy the rule's duty owed to the client.

Incorrect: Public records do not replace the owner's written notice to the buyer.

Incorrect: The notice runs to the purchaser; a recording is not what the statute asks for.

Incorrect: Mentioning it orally at the walk-through is too late and not in writing; the notice must be written and given before transfer.

Correct: The statute requires written notice to the purchaser before transfer when the owner knows of the remediation, unless it met residential standards.

Incorrect: The statute does not limit the renewal term; it requires the reminder.

Incorrect: Initials at signing are not the condition the statute sets; the reminder notice is.

Incorrect: Management agreements are not filed with or approved by ADRE.

Correct: Section 32-2173(A)(2)(a) allows automatic renewal only if the firm sends the owner a reminder notice at least thirty days before the renewal date.

Incorrect: A release from the friend does not replace the owner's written authorization.

Correct: The rule forbids permitting or facilitating occupancy by a third party without the owner's prior written authorization.

Incorrect: A recorded call is not the prior written authorization the rule requires.

Incorrect: Time on the market creates no right to let anyone occupy the home.

Correct: The rule requires reasonable care to obtain material information and reasonable steps to help the client confirm it; it does not require expertise outside the license.

Incorrect: Lack of expertise does not excuse her from helping the client get the facts.

Incorrect: Offering an expert-sounding opinion outside her field is what the rule warns against.

Incorrect: The seller's statement is not a substitute for helping the buyer verify a concern.

Correct: The first half is due October 1 and delinquent after 5:00 p.m. on November 1; the second half is due March 1 and delinquent after May 1.

Incorrect: December 31 applies only to bills of $100 or less paid in one installment.

Incorrect: October 1 is the due date, not the delinquency date.

Incorrect: May 1 is the delinquency date for the second half.

Correct: The Commissioner does not entertain complaints about purely civil disputes between licensees over earning, splitting or nonpayment of compensation.

Incorrect: A private commission dispute is not grounds for suspending licenses.

Incorrect: ADRE has no role in dividing commissions between licensees.

Incorrect: The Recovery Fund pays consumers' judgments, not commission disputes.

Correct: The designated broker must review each listing, purchase or nonresidential lease agreement within ten business days, initialing and dating it on the signature page.

Incorrect: Thirty days exceeds the ten-business-day deadline.

Incorrect: The deadline runs from execution, not from closing.

Incorrect: Twenty-four hours is much shorter than the statute requires.

Incorrect: The rule allows disclosure once the seller permits it.

Incorrect: Waiting until the seller accepts one offer is not the test; the seller's permission is.

Correct: On the seller's permission, the seller's agent may disclose the existence and terms of other offers to all offerors.

Incorrect: A request from the other side does not authorize disclosure of the seller's offers.

Incorrect: An inspection is not the advice the rule requires on possession risk.

Correct: The rule requires the licensee to recommend that the client get insurance, legal, tax and accounting advice on the risks of pre- or post-possession.

Incorrect: Lender approval is not the recommendation the rule requires.

Incorrect: The rule says nothing about deposits; it is about professional advice.

Correct: Inducing a party to break a contract to substitute a new one, motivated by the licensee's own gain, is a listed ground for suspension or revocation.

Incorrect: The statute singles out this conduct when it is driven by the licensee's gain.

Incorrect: Besides any civil claim, it is a licensing violation ADRE can act on.

Incorrect: Disclosure does not make the inducement lawful.

Incorrect: The notice is required whether or not the buyer asks.

Incorrect: Notice at closing would come too late to earn any interest.

Correct: The escrow agent must give each depositing buyer or seller notice of the right to earn interest within three business days after receiving the money.

Incorrect: Ten business days exceeds the statutory deadline.

Correct: The escrow agent must disclose that the title insurer will offer, on request, a closing protection letter covering loss of escrow money from the agent's fraud or dishonesty.

Incorrect: Credit information about escrow staff is not a disclosure item.

Incorrect: Competing offers are confidential seller information, not an escrow disclosure.

Incorrect: Commissions appear on the settlement statement; they are not this disclosure.

Incorrect: A survey is a separate service; the statute requires a title examination.

Correct: No policy may be written unless the insurer has had a reasonable examination of the title made and determined insurability under sound underwriting practices.

Incorrect: Seller affidavits may be used, but the statutory requirement is the examination and determination.

Incorrect: ADRE regulates licensees, not title insurers.

Incorrect: Representing the buyers in the sale does not exempt her from loan originator licensing.

Incorrect: Broker consent cannot replace the loan originator license.

Correct: A natural person may not act as a loan originator unless licensed under that article; a real estate license does not cover it.

Incorrect: There is no such endorsement; loan origination is licensed separately.

Correct: The statute lists qualified trustees, including banks, escrow agents, insurers, Arizona bar members and licensed Arizona real estate brokers.

Incorrect: A home inspector is not a qualified trustee.

Incorrect: Salespersons are not on the list; the statute names brokers.

Incorrect: Being a notary does not qualify a person to act as trustee.

Incorrect: A title insurer cannot license an escrow company.

Incorrect: A broker license does not authorize conducting an escrow business.

Incorrect: A local permit does not replace the state escrow license.

Correct: No person, unless exempt, may carry on an escrow business or act as an escrow agent in Arizona without first obtaining a license.

Incorrect: Escrow is neutral; it is not one party's agent.

Incorrect: Holding escrow money creates no loan.

Correct: The statute makes the escrow agent the trustee of all monies received and held in escrow and forbids commingling them.

Incorrect: The money never belongs to the escrow agent.

Incorrect: A deed in a sale is the standard case that needs the affidavit.

Incorrect: Section 11-1133 requires the affidavit for recorded contracts for the sale of real property too.

Correct: Section 11-1134(A)(7) exempts a deed of gift, along with instruments such as leases, easements and court-ordered conveyances.

Incorrect: A quitclaim is exempt only when given for no monetary consideration (A)(4); one sold for cash needs the affidavit.

Incorrect: $250,000 is not the amount in the current statute.

Incorrect: $500,000 is above the statutory base of $400,000.

Correct: The statute protects up to $400,000 of equity, and the figure has been adjusted annually for cost of living since 2024.

Incorrect: $150,000 is the old Arizona figure; the current statute says $400,000.

Correct: A.R.S. §32-2186(B)(2) limits the Fund to $90,000 for each licensee, on top of the $30,000 cap per transaction.

Incorrect: $75,000 is not a limit in the Recovery Fund statute.

Incorrect: $60,000 would be two transactions' worth; the per-licensee limit is $90,000.

Incorrect: $45,000 is half the actual per-licensee limit of $90,000.

Incorrect: At $200 a square foot the home would be listed at $360,000, not $396,000.

Incorrect: At $180 a square foot the home would list for $324,000, far below the actual price.

Incorrect: At $240 a square foot the list price would be $432,000, which overshoots the listing.

Correct: Divide the list price by the living area: 396,000 divided by 1,800 is 220 dollars per square foot.

Incorrect: Contribution measures what one feature adds to value, not what the buyer could pay elsewhere.

Incorrect: Anticipation ties value to expected future benefits; the buyer here is comparing present alternatives.

Correct: Substitution says an informed buyer will not pay more for a property than the cost of an equally desirable substitute.

Incorrect: Conformity is about value peaking when a home fits the style and quality of its neighborhood, not about competing alternatives.

Incorrect: Progression is the reverse effect: a modest home gains value from more expensive neighbors.

Incorrect: Plottage is the extra value created by joining adjacent parcels, not a neighborhood effect.

Correct: Regression: the value of a better property is pulled down by the lower-value properties around it.

Incorrect: Anticipation ties value to expected future benefits; it does not explain why surrounding homes lower this one.