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Flashcards in Arizona Real Estate 1 Deck (10)
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1

Statute of frauds

Requires real estate contracts to be in writing to be enforceable.

2

Commissioner's Rules

Not law but have the force and effect of law on licenses.

3

Real Estate Commissioner

A. Appointed by the governor.
B. Qualifications
1. 3 years administrative experience.
2. 5 years experience in real estate or a related field.
C. Cannot hold an active real estate license once appointed.
D. Duties:
1. Promulgate The Commissioners Rules through public process.
2. Audit the books and records of licensees.
3. Manage the daily operation of the real estate department; hire and fire ADRE employees.
4. Investigate written complaints against licensees.

4

Real Esitate Advisory Board

A. 10 Members
1. Two real estate brokers.
2. Two subdividers.
3. Three persons engaged in residential real estate for the last five years, one must be involved in multi-
family residential property
management.
4. Three public members.
B. Appointed by the governor and meet quarterly.
C. Receive no compensation.

5

Real Estate Broker

Someone who, for another and for compensation, performs real estate services.
A. Qualifications
1. Three years experience in
last five years as a licensee or equivalent experience in Arizona or elsewhere.
2. A 90 hour broker prelicensing course within the last 10 years.
3. Pass both a school and state examination.
B. Must have a definite place of business.
C. Must notify commissioner of any change of business location. Failure to notify the commissioner automatically cancels the broker's license and serve the license of any licensees employed by the broker.
D. Must have a sign at the entrance to the broker's place of business including branch offices. If the broker changes locations the sign must be removed immediately.
E. May have branch office(s) which must be managed by a licensed broker or sales person. A separate branch office license is needed.
F. Broker's license must be displayed in the office.
G. It's a designated broker is unable to act within 24 hours, the broker may designate a licensee employed by the broker or another designated broker to act on the broker's behalf. The designation shall not exceed 30 days in duration.

6

Real Estate Salesperson

A person engaged to represent a real estate broker.
A. Qualifications
1. 18 years old.
2. 90 hour licensing course within the last 10 years.
3. Pass both a school and state examination.
B. Must be licensed to a broker to actively work as a sales person.(hire form is used)
C. The salespersons license is held by their employing broker and must be available for review by the public; hardcopy or online.
D. A sales person always represents the employing broker.
E. When a salesperson leaves the employ of a broker the salesperson's license must be returned to the Real Estate Department. (server form is used) may be done electronically.

7

Individuals Not Required to be Licensed

A. Persons (including officers of a corporation) buying, selling, leasing, renting, or exchanging their own or corporate property.
B. "attorney-In-Fact" holding a specific power of attorney I think in an isolated transaction.
C. Attorney at law in the performance of duties.
D. Referee in bankruptcy court or any person acting under a court order.
E. A trustee selling under Deida trust.
F. Government employee in the performance of duties.
G. The manager or leasing agent of residential rental property who performs the service at no more than one location during the regular workday.
Note: persons conducting real estate auctions must be licensed.
H. Natural persons employed by a designated broker who perform:
1. Clerical, accounting, bookkeeping or other administrative duties who are not engaged in activities which require any lessons.
2. Limited telemarketing services.

8

Attorney-In-Fact

Holding a specific power of attorney acting and isolated transaction.

9

Real Estate Recovery Fund

1. Established to protect parties harmed due to reliance on a licensee where the licensee either:
A. Preformed asked that require a license.
B. Committed fraud or misrepresentation while acting as a principal in the purchase or sale of real property.
2. The lawsuit must be filed against the licensee within five years and the commissioner must be notified of the suit within 45 days of commencing the action.
3. Payment from the recovery fund will be made only by court order and only after a civil judgment against the licensee is uncollectible.
4. The recovery fund is liable for a maximum of 30,000 per cause of action, 90,000 per licensee.
5. The licensee's (broker or sales person) license is automatically revoked upon payment from the recovery fund. The license may be reinstated after the licensee pays back all the money paid by the recovery fund plus interest.
6. A licensee cannot make a
claim against or recover from the recovery fund.
7. Recovery Fund Fees
A. When originating a license:
1. Broker pays $20
2. Salesperson pays $10

B. When renewing a license, if the fund has dipped below $600,000 on the June 30th:
1. Broker pays $20
2. Sales person pays $10

10

Article XXVI of the Arizona Constitution

Give licenses the authority to prepare all types of real estate contracts.