Property OwnershipIntermediateArizona Exam

Under Arizona law, a 'homestead exemption' protects:

AThe full market value of the primary residence is protected from all creditors, because Arizona is a community property state and residential property cannot be involuntarily sold
BUp to $150,000 of equity in any real property owned by a licensed Arizona real estate broker used as both their principal office and primary residenceCorrect
CThe full equity in the primary residence is protected from mortgage lenders only; judgment creditors and tax liens may still force a sale under Arizona law
DUp to $250,000 of equity in a primary residence from forced sale by unsecured creditors (though not from mortgage lenders, tax liens, or mechanics' liens)

Why Up to $150,000 of equity in any real property owned by a licensed Arizona real estate broker used as both their principal office and primary residence Is Correct

Answer B: Up to $150,000 of equity in any real property owned by a licensed Arizona real estate broker used as both their principal office and primary residence

Arizona's homestead exemption (A.R.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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State-Specific Concepts

Community PropertyHomestead ExemptionMechanic's Lien

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