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63 Cards in this Set

  • Front
  • Back

What does Article XXVI of the Arizona Constitution give Licensees?

The authority to prepare documents related to real estate transactions. However, agents can NOT charge a fee for this service. Agents must represent the entire transaction to earn a "commission".

What is the mission of the AZ Dept of Real Estate?

To protect the public

What is the difference between law and rules?

Laws/Statutes are created by Legislatures and Rules are enforced by the Commissioner.

Who appoints the Commissioner?

The Governor

What is the Commissioner's term of office?

No term limits.

When must the commissioner investigate a licensee?

Whenever there is a written complaint.

Who is our current Commissioner?

Judith Lowe

Who appoints the members to the Advisory Board?

The Governor

What is the term of an Advisory Board member?

6 years

What is an annual responsibility of the Advisory Board?

To evaluate the commissioner's performance

How many members are on the Advisory Board?

10

How many meetings is the Advisory Board required to hold each year?

4

Each Real Estate Entity or Brokerage has one responsible individual who is called the

Designated Broker

The purpose of the Standard Office Policy Manual is to

Minimize the broker's risk

What is the fine that the designated broker is subject to if they don't have a Policy Manual?

$1000

When must an absent designated broker appoint a designee?

When there is a 24+ hour absence.

What is the maximum time period a designated broker can be absent at one time?

30 days

Licensees are required within _____ days to disclose to the commissioner any of the following:



  • Misdemeanor and/or felony convictions
  • Judgement or adverse decision involving fraud, ethics or a real estate transaction
  • Action against any other professional or occupational license
  • Change of home address

10 days.

When are commissions earned?

when a ready, willing and able buyer is secured.

Who does the sales person receive their commission payment from?

Broker when the commission is earned.

What two things must every Branch office have?


  1. Sign
  2. Licensed Branch Manager

Who can manage a branch office?

Any Licensee

If a client has been financially harmed and wishes to bring action against the licensee, what is the required time frame for beginning action?

5 years

What is the maximum that will be paid from the Recovery Fund per transaction?

$30k

What is the minimum balance required for the Recovery Fund on June 30 of each year?

$600k

If a payment has been made from the Recover Fund on behalf of a licensee, what action is taken against the licensee?

Loss of License

What is the maximum that will be paid from the Recovery Fund over the lifetime of a licensee?

$90k

When is a licensee eligible to re-apply for a license after having it terminated for payment from the Recovery Fund?

Upon repayment w/interest

Vocab:


Can't use a license for a specified period of time:

Suspension

Vocab:

No longer have a real estate License:

Revocation

Vocab:


Mixing clients' funds with agent's personal funds:

Commingling

Vocab:


Spending clients' funds:

Conversion

Vocab:


Federa, State and local laws:

Statutory Laws

Vocab:


Based on tradition and customs:

Common Law

True or False?


The AZ Dept of Real Estate Administers Real Estate Licensing:

False; it the Attorney General's Office

True or False?


The Real Estate Commissioner has the authority to make and enforce rules that licensees must abide by?

True; the legislature makes laws and the commissioner makes/enforces the rules.

True or False?


The ADRE must investigate a license when a written complaint is received from a consumer?

True; A written complaint

True or False?


If an unlicensed individual engages in activities that require a real estate license, the individual is subject to a civil penalty or imprisonment or both?

True; this is a Class 6 Felony that requires a trial.

True or False?


The member of the Real Estate Advisory Board are appointed by the Real Estate Commissioner?

False, They are appointed by the governor

True or False?


Depositing earnest money into an agent's checking account could result in suspension or revocation of their real estate license

True; this is Commingling Funds

True or False?


Displaying a "For Sale" sign on a property without the owner's written consent could cause a broker to have his/her real estate license suspended or revoked.

True; "written" permission is required

True or False?


there is no term of office for members of the Real Estate Advisory Board?

False; the term is 6 years (and there is no compensation)

True or False?


The Real Estate Recover Fund was created to protect the ADRE from claims by individuals that have suffered a monetary loss as a result of the actions of a licensee?

False; it is there to protect the public not the ADRE

True or False?


A broker who does not receive the commission he has earned may receive compensation from the Real Estate Recovery Fund?

False

True or False?


The maximum that will be paid from the RERF in a single transaction is $90k?

False; $30k per incident / $90k total in agent's lifetime

True or False?


The minimum balance of the RERF as of June 30 of each year is $650,000?

False; $600k

True or False?


An individual who is a property manager for one nonresidential property, who is employed by the owner must have a real estate license?

False; two or more properties owned by someone other than themselves.

True or False?


Selling a mobile home requires a real estate license?

False; It is considered personal property but requires a Mobile Home License.


(exception: becomes Real Property if the wheels have been removed and has been set on a foundation.)

True or False?


A real estate brokerage with a branch office will have two designated brokers?

False; only one Designated broker but the branch office must have a licensed branch manager.

True or False?


In order to receive a real estate broker's license an individual must be 18 years old.

False; Must be 21 years of age because they must have experience from 3 of the past 5 years and must be 18 to get the salespersons license.

True or False?


The relationship between the designated broker and a sales associate working for them is a general agency relationship?

True; General Agency

True or False?


Agents licensed in AZ have the authority to write contracts relating to real estate transactions because of Article XXVI of the United States Constitution?

False; Article XXVI of the AZ constitution.

True or False?


When advertising real property for sale or lease, real estate licensees must identify their employing brokerage the advertisement?

True; along with the Equal Housing Authority logo.

True or False?


If a broker wishes to place a "For Sale" sign on a listed property, they must first submit the listing, to the MLS service for approval.

False; Only written permission is necessary.

True or False?


A real estate branch office must have a licensed broker as a branch manager.

FALSE; Any "licensee"; does not need to be a broker.

True or False?


The mission of ADRE is to protect the public.

True; by regulating licensees

True or False?


The Real Estate Advisor Board is responsible for an annual evaluation of the Real Estate Commissioner.

True

True or False?


A Real Estate designated broker must have a Standards of Practice Manual?

True; minimizes broker's risk and a $1000 civil penalty could be imposed if not available.

True or False?


If a designated broker is unable to act within 48 hours he may designate another licensee to act on his behalf?

False; a designated broker must respond within 24 hours or have assigned a temporary replacement.

True or False?


In order to get a real estate license, an individual must be a resident of AZ for a minimum of 90 days?

False; no residency requirement

True or False?


Commissions are earned when a ready, willing and able buyer are secured?

True; not "earned" at closing.

True or False?


The minimum number of licensees required for a branch office is one?

True; the Branch Manager must be licensed.

True or False?


A licensee can always be represented by an attorney?

True; by order of the 6th amendment of the constitution.