Arizona SRE Exam Study Guide (2026)
Everything the Arizona ROC Statutes & Rules Exam (SRE) tests, topic by topic: what each section covers, the facts that come up most, and how to study it. Pair it with the free 15-question practice test.
The exam at a glance
| Questions | Multiple choice, online |
|---|---|
| Time | Self-paced online course and exam |
| Passing score | 70% |
| Format | Open book |
| Licensing body | Arizona Registrar of Contractors (ROC) |
| Test provider | GMetrix (online) |
Mind map: the whole exam on one screen
1. When a License Is Required
This topic covers who must hold an ROC license and who is exempt. Expect questions on the handyman exemption, owner-builders, developers and the penalties for contracting without a license.
Key facts
- Acting as a contractor without a license is a class 1 misdemeanor (A.R.S. 32-1164(A)).
- Minimum fine for unlicensed contracting is $1,000 for a first offense and $2,000 for a second or later offense (A.R.S. 32-1164(B)).
- Handyman exemption: work on one project must total less than $1,000 including labor and materials, be casual or minor, and need no building permit (A.R.S. 32-1121(A)(14)).
- A handyman who advertises must include the words "not a licensed contractor" or loses the exemption (A.R.S. 32-1121(A)(14)(c)).
- Owner-builder: selling, renting or offering the structure within one year after completion or certificate of occupancy is prima facie evidence it was built for sale or rent (A.R.S. 32-1121(A)(5)).
- Developer exemption requires using licensed contractors and listing their names and license numbers in all sales documents (A.R.S. 32-1121(A)(6)).
- A contractor cannot sue to collect pay unless it proves it was licensed when the contract was made and when the cause of action arose (A.R.S. 32-1153).
Flashcards
Exam tip: The handyman exemption fails if any one condition fails: a permit is required, the job is split to stay under $1,000, or the ad omits the disclosure.
2. License Classes and Qualifying Parties
This topic covers how licenses are issued, renewed and qualified. The qualifying party is the person whose experience and exam qualify the license, and the exam tests the deadlines tied to that role.
Key facts
- Arizona licenses are commercial, residential or dual, each in general or specialty classifications (A.R.S. 32-1126, 32-1152).
- A qualifying party needs at least four years of trade experience, two of them within the last ten years (A.R.S. 32-1122(E)(1)).
- If the qualifying party leaves, notify the ROC in writing within 15 days and qualify through another person within 60 days (A.R.S. 32-1154(A)(18)).
- A qualifying party may serve one additional licensee if there is at least 25 percent common ownership or a 25 percent owned subsidiary (A.R.S. 32-1127).
- A licensed corporation or organization must immediately notify the ROC of a transfer of 25 percent or more of its stock or beneficial interest (A.R.S. 32-1151.01).
- Licenses are biennial. A license is suspended the business day after the renewal date, and can be renewed within one year by paying the renewal fee plus $50 (A.R.S. 32-1125, 32-1126).
- Changes in application information must be reported to the ROC within 30 days (A.R.S. 32-1122(B)(4)).
Flashcards
Exam tip: Keep the two qualifying party clocks apart: 15 days to notify the ROC, 60 days to qualify through someone new.
3. Contractor Bonds
Every license needs a surety bond or cash deposit before it is issued or renewed. The amount depends on the license type and estimated annual volume, and bond math questions are common.
Key facts
- No original license is issued and no license is renewed without a surety bond or cash deposit in force (A.R.S. 32-1152(A)).
- General residential bond: not less than $5,000 and not more than $15,000 (A.R.S. 32-1152(B)(5)).
- Specialty residential bond: not less than $1,000 and not more than $7,500 (A.R.S. 32-1152(B)(7)).
- General commercial with estimated annual volume under $150,000: $5,000 bond (A.R.S. 32-1152(B)(1)(f)).
- Specialty commercial with estimated annual volume under $150,000: $2,500 bond (A.R.S. 32-1152(B)(2)(f)).
- A licensee with more than one commercial license posts the sum of the bonds for each license (A.R.S. 32-1152(B)(3)).
- Residential and dual licensees must either pay into the Recovery Fund or post an extra $200,000 bond for claimants (A.R.S. 32-1152(C)).
Flashcards
Exam tip: For a contractor with several licenses, add the bond for each license together rather than picking the largest.
Test yourself on these topics
Take the free 15-question Arizona SRE test, then save your results to unlock your Readiness Score and the mistakes bank.
4. Residential Contractors' Recovery Fund
The Recovery Fund pays homeowners hurt by a licensed residential contractor's violations when they cannot collect elsewhere. Expect questions on who can claim, the dollar caps and what happens to the contractor's license.
Key facts
- Residential applicants and renewing licensees pay an assessment of not more than $600 per biennial license period into the fund (A.R.S. 32-1126(G)).
- Eligible claimants include an owner who occupies or intends to occupy the home as a primary residence; investors who will not live there are not eligible (A.R.S. 32-1132(B)).
Flashcards
Exam tip: In payout math, subtract other recoveries from actual damages first, then cap the result at $30,000.
5. Complaints, Discipline and Workmanship
This topic covers how ROC complaints work, the grounds for discipline and the deadlines that bind both the homeowner and the contractor. Many questions turn on a specific number of days or dollars.
Key facts
- A complaint must be filed within two years after close of escrow or occupancy, whichever is earlier, for new builds, or two years after completion for other projects (A.R.S. 32-1162(A)).
- A licensee must file a written answer within 10 days after a citation is served; failure may be deemed an admission (A.R.S. 32-1155(A), (C)).
Flashcards
Exam tip: Both the inspection opportunity and the corrective-directive deadline are 15 days, but the citation answer is only 10 days.
6. Mechanics Liens and Preliminary Notices
Arizona lien law protects people who supply labor and materials, but only if they follow strict notice and recording deadlines. These dates are among the most tested facts on the exam.
Key facts
- The preliminary twenty day notice must be given within 20 days after first furnishing labor or materials to the jobsite (A.R.S. 33-992.01(C)).
- A late preliminary notice covers only work and materials furnished within 20 days before it was served and after (A.R.S. 33-992.01(E)).
Flashcards
Exam tip: Watch for a recorded notice of completion in the question: it shortens the lien deadline from 120 days to 60 days.
7. Contracts, Advertising and License Display
This topic covers what a written home improvement contract must contain, pool contract payment limits and where the license number must appear. Questions often test exact dollar thresholds and percentages.
Key facts
- Contracts over $1,000 between a contractor and a property owner must be in writing with required terms, including license number, price with taxes, deposits and progress payments (A.R.S. 32-1158(A)).
- The contract must state the owner's right to file an ROC complaint, with the ROC phone number and website, in at least 10-point bold type (A.R.S. 32-1158(A)(9)).
Flashcards
Exam tip: For pool down payment questions, apply 15 percent to the original contract price only, not to later change orders.
8. Underground Facilities (811)
Arizona law requires excavators to find out where underground utilities are before digging. The exam tests the marking response time and how long marks stay valid.
Key facts
- No one may excavate in a public street, right-of-way or utility easement without first determining whether underground facilities will be encountered (A.R.S. 40-360.22(A)).
- Facility operators must mark their lines as promptly as practicable, but not later than two working days after the excavator's inquiry (A.R.S. 40-360.22(B)).
Flashcards
Exam tip: 811 deadlines are counted in working days, not calendar days, except the 21 calendar day large-project option.
How to pass
- It's open book and online, but don't coast. The questions are worded tightly around the statute text.
- Know the handyman exemption limits exactly.
- Pair it with the right trade exam: PSI trade exam, or NASCLA for commercial B-1.
Frequently asked questions
How long should I study for the Arizona SRE exam?
Most working candidates need 4 to 8 weeks at 45 to 60 minutes a day. Book your exam once your Readiness Score has stayed at 80 or higher for about a week.
Is the Arizona SRE exam open book?
Open book. Check the current candidate information bulletin from Arizona Registrar of Contractors (ROC) for the approved reference list and tabbing rules.
What score do I need to pass the Arizona SRE exam?
70%. The exam has multiple choice, online and a time limit of self-paced online course and exam.
What are the most tested topics?
The outline covers when a license is required, license classes and qualifying parties, contractor bonds, residential contractors' recovery fund, complaints, discipline and workmanship, mechanics liens and preliminary notices, contracts, advertising and license display, underground facilities (811). Use the free practice test to see which ones you need most.
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Summarized from official candidate information and the statutes, codes and regulations cited, checked October 2026. Confirm current requirements with Arizona Registrar of Contractors (ROC).