Session 04 - Arizona Law

Front 1

What does Article XXVI of the Arizona Constitution give Licensees?

Back 1

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".

Front 2

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

Back 2

To protect the public

Front 3

What is the difference between law and rules?

Back 3

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

Front 4

Who appoints the Commissioner?

Back 4

The Governor

Front 5

What is the Commissioner's term of office?

Back 5

No term limits.

Front 6

When must the commissioner investigate a licensee?

Back 6

Whenever there is a written complaint.

Front 7

Who is our current Commissioner?

Back 7

Judith Lowe

Front 8

Who appoints the members to the Advisory Board?

Back 8

The Governor

Front 9

What is the term of an Advisory Board member?

Back 9

6 years

Front 10

What is an annual responsibility of the Advisory Board?

Back 10

To evaluate the commissioner's performance

Front 11

How many members are on the Advisory Board?

Back 11

10

Front 12

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

Back 12

4

Front 13

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

Back 13

Designated Broker

Front 14

The purpose of the Standard Office Policy Manual is to

Back 14

Minimize the broker's risk

Front 15

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

Back 15

$1000

Front 16

When must an absent designated broker appoint a designee?

Back 16

When there is a 24+ hour absence.

Front 17

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

Back 17

30 days

Front 18

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
  

Back 18

10 days.

Front 19

When are commissions earned?

Back 19

when a ready, willing and able buyer is secured.

Front 20

Who does the sales person receive their commission payment from?

Back 20

Broker when the commission is earned.

Front 21

What two things must every Branch office have?

Back 21

1. Sign
   
2. Licensed Branch Manager
   

Front 22

Who can manage a branch office?

Back 22

Any Licensee

Front 23

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

Back 23

5 years

Front 24

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

Back 24

$30k

Front 25

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

Back 25

$600k

Front 26

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

Back 26

Loss of License

Front 27

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

Back 27

$90k

Front 28

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

Back 28

Upon repayment w/interest

Front 29

Vocab:

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

Back 29

Suspension

Front 30

Vocab:

No longer have a real estate License:

Back 30

Revocation

Front 31

Vocab:

Mixing clients' funds with agent's personal funds:

Back 31

Commingling

Front 32

Vocab:

Spending clients' funds:

Back 32

Conversion

Front 33

Vocab:

Federa, State and local laws:

Back 33

Statutory Laws

Front 34

Vocab:

Based on tradition and customs:

Back 34

Common Law

Front 35

True or False?

The AZ Dept of Real Estate Administers Real Estate Licensing:

Back 35

False; it the Attorney General's Office

Front 36

True or False?

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

Back 36

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

Front 37

True or False?

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

Back 37

True; A written complaint

Front 38

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?

Back 38

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

Front 39

True or False?

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

Back 39

False, They are appointed by the governor

Front 40

True or False?

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

Back 40

True; this is Commingling Funds

Front 41

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.

Back 41

True; "written" permission is required

Front 42

True or False?

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

Back 42

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

Front 43

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?

Back 43

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

Front 44

True or False?

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

Back 44

False

Front 45

True or False?

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

Back 45

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

Front 46

True or False?

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

Back 46

False; $600k

Front 47

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?

Back 47

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

Front 48

True or False?

Selling a mobile home requires a real estate license?

Back 48

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.)

Front 49

True or False?

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

Back 49

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

Front 50

True or False?

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

Back 50

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.

Front 51

True or False?

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

Back 51

True; General Agency

Front 52

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?

Back 52

False; Article XXVI of the AZ constitution.

Front 53

True or False?

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

Back 53

True; along with the Equal Housing Authority logo.

Front 54

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.

Back 54

False; Only written permission is necessary.

Front 55

True or False?

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

Back 55

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

Front 56

True or False?

The mission of ADRE is to protect the public.

Back 56

True; by regulating licensees

Front 57

True or False?

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

Back 57

True

Front 58

True or False?

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

Back 58

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

Front 59

True or False?

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

Back 59

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

Front 60

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?

Back 60

False; no residency requirement

Front 61

True or False?

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

Back 61

True; not "earned" at closing.

Front 62

True or False?

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

Back 62

True; the Branch Manager must be licensed.

Front 63

True or False?

A licensee can always be represented by an attorney?

Back 63

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