Arizona Real Estate Salesperson Exam Glossary

Salesperson License
A license issued by the Arizona Department of Real Estate that lets a person perform real estate acts—such as listing, showing, or selling property—for compensation, but only while employed by and under the supervision of a licensed broker.
Designated Broker
The individual broker legally responsible for supervising a real estate brokerage's licensees and ensuring the firm complies with Arizona license law. Every brokerage must have one to operate.
Agency
The fiduciary relationship in which a licensee (the agent) is authorized to act on behalf of a client (the principal). It creates legal duties such as loyalty, confidentiality, and full disclosure owed to the client.
Fiduciary Duty
The set of legal obligations an agent owes a client, commonly summarized as care, obedience, loyalty, disclosure, accounting, and confidentiality (OLD CAR). Breaching these duties can expose the licensee to liability.
Earnest Money
A good-faith deposit a buyer submits with an offer to show serious intent to purchase. It is typically held in a neutral account and applied toward the purchase price or down payment at closing.
Escrow
A neutral third-party arrangement that holds funds and documents on behalf of the buyer and seller until all conditions of the transaction are met, then disburses them at closing.
Deed
The legal written instrument that transfers ownership (title) of real property from a grantor to a grantee. Different deed types, such as warranty and quitclaim deeds, offer different levels of guarantee about the title.
Encumbrance
Any claim, lien, or restriction on a property—such as a mortgage, easement, or unpaid tax lien—that can affect its value or limit how the owner may use or transfer it.
Easement
A right granted to one party to use another person's land for a specific purpose, such as a utility line or shared driveway, without owning the land itself.
Comparative Market Analysis (CMA)
An estimate of a property's likely selling price based on recent sales of similar nearby properties. Agents use a CMA to help sellers price a home, though it is not a formal appraisal.
Fair Housing
Laws that prohibit discrimination in the sale, rental, or financing of housing based on protected characteristics such as race, color, religion, national origin, sex, disability, and familial status.
Arizona Department of Real Estate (ADRE)
The state agency that licenses and regulates real estate professionals in Arizona, enforces license law, and investigates complaints against licensees.