Arizona Statutes and Commissioners Rules Flashcards

Arizona Statutes and Commissioner's Rules Flashcards Name the 4 types of listing agreements in Arizona 1. Exclusive Right to Sell (ER)2. Exclusive Agency (EA)3.Open Listings4. Net Listings Chapter 13 BankruptcyIs typically used by wage earners and small businesses.This delay and reduces amount of payments to creditors over a period of time. Also known as reorganization.What does a subdivider required to have before selling lots or parcels in a subdivision?A public report What regulates condominiums and planned community HOAs?Arizona Statute What is true about ALL listing agreements? They MUST be in writing!When is the property tax payment due for the second half of the year and when is it late?Due on March 1 of the following year and late on May 1 What is it called if one dies without a will? Dying intestate Late License Renewal1. If applicant renews within the ONE YEAR grace period after license expiration, he may apply CE hours completed after expiration toward CE required for renewal.2. The department shall TERMINATE a license that has been expired for MORE than one year.What is un-subdivided land?6 or more parcels, each must be at least 36 acres and no more than 160 acres.What are the rules regarding the inspection of un-subdivided land?6-month rescission period without inspection or 7-rescission period if it is inspected.What is the maximum finder fee credit that can be applied towards the tenant's monthly rent?$200 Who reviews and initials all contracts? And how many does of contract acceptance must this be done?The designated broker must review and initial all contracts submitted by employed licensees within 10 business days of contract acceptance.What statements cannot be included in the advertisement of subdivided land?

• Endorsed by the real estate commissioner2. No risk

Statute of FraudsAll real estate contracts need to be in writing to be enforceable EXCEPT for leases of one year or less and broker to broker agreements.The statute allows the HOA to charge what? "reasonable fees". The amounts vary depending on the association.What must one have to sell subdivided land? Must have public report from the commissioner if selling 6 or more parcels.What is the rule about property management agreements?They must be in writing Arizona Department of Real Estate1. The purpose of the ADRE is to protect the public interest through licensure and regulation of the real estate profession2. Real estate brokers must be licensed by the ADRE

Who is the property management agreement between? The real estate broker and the property owner What are the requirements for a valid will? 1. Must be in writing2. Signed by the decedent or in the decedent's name by some other individual in the decedent's conscious presence and by the decedent's direction.3. Signed by at least two witnesses Advisory Board1. The Real Estate Advisory Board is comprised of 10 members appointed by the Governor.2. The term of office for each board member is 6 years.3. The board shall provide the commissioner with such recommendations as it deems necessary and beneficial to the best interests to the public.4. The board shall present to the governor an evaluation of the performance of the real estate commissioner and the real estate department.5. Members of the board receive no compensation but shall be reimbursed for expenses.6. The board convenes one every three months (quarterly).What is the second half of the tax year for property taxes?July 1 - December 31 Arizona passed a new law relating to bed bugs which does what 4 things?

• Requires tenants to notify landlords in writing or

electronically of the presence of bed bugs2. Prohibits tenants from moving items into the building if they are known to be infested with bed bugs3. Requires landlords to provide bed bug educational material to existing and new tenants4. Prohibits landlords from renting units known to have current bed bug infestation What is the residential assessment?10% If the buyer is not shown the public report prior to purchasing a sub-divided lot, how long does the buyer have to void the contract?

• years

How should temporary broker absence be handled? 1. If designated broker is unable to act within 24 hours, he may designate any licensee employed by him or designate another designated broker to act on his behalf.2.Designation must be in writing and kept for one year after the effective date.3. The designation shall not exceed 30 days duration.4. A designated salesperson shall not be authorized to hire or sever licenses.Is Errors & Omissions (E&O) Insurance required? It is not required but it is strongly recommended for every broker because of potential liability.What does E&O insurance usually not cover? 1. Criminal acts2. Punitive damages3. Securities4. Physical injuries to person or property5. Advertising injury6.Commission disputes7. Family / Personal transactions8.Fair Housing / discrimination9. Activities other than real estate duties The Department (ADRE)1. The ADRE has a Commissioner that is appointed by the Governor2. The term of the Commissioner is "at the pleasure of the Governor".

What is another name for a handwritten will? Holographic will What are the qualifications for a real estate Salesperson's License?

• Is a person of honesty, trustworthiness, character, and

competency2. Has not had a real estate license denied within one year or revoked within two years immediately preceding application.3. Is at least 18 years old4. Complete a 90-hour pre-licensing course and pass both the school and state exams.5. Take a 6-hour continuing education course in contract law and contract writing What is a master planned community?2 or more platted subdivisions sharing the same CC&Rs What are the qualifications for a Broker's License?1. 3 years of active experience as a licensed salesperson or broker during the five years immediately preceding the time of application.2. Must pass an examination for broker's license that is more exacting and stringent and of a broader scope than the salesperson's exam.3. Must take 3-hour broker management clinic classes (9 hours of Commissioner's Standards credit) before activating broker's license.Chapter 7 BankruptcyIs the most severe and can be used by all individuals and businesses. All unsecured debts are terminated and are paid if any money remains after secured creditors are paid.How many times can a tenant receive a finder's fee?Up to 5 times in a twelve-month period When does ADRE require a Ten Day Notification? 1. Change of address or employment2. Broker business address change3. Felony or misdemeanor conviction4.Restriction of any license5. Name change Property taxes are paid based on what?Ad Valorem (Assessed Value) If a brokerage closes, how soon must the sign come down?Immediately What does E&O cover?It generally covers the amount a protected person is legally required to pay as damages for the loss that results from

performing real estate duties, such as:1. Listing or selling2.

Property management3. Estimating market value4.Counseling clients5. Referrals Who needs a real estate license?A license is required by any person, limited liability company, partnership, association, or corporation engaged in the business of real estate brokerage or property management of more than one single property.Who is exempt from having to disclose bed bugs? Owners of single family dwellings Arizona StatutesArizona statutes define the scope of the department's authority to promulgate rules, often referred to as "Commissioner's Rules", and issue Substantive Policy statements.Licensing in ArizonaA real estate license is required when someone with intent or upon promise of compensation attempts or performs the service of a licensee, or holds oneself out as a real estate licensee.

AdvertisingThe broker is responsible for the accuracy of all advertising. ALL advertising, no matter what medium is used, must be under the direct supervision of and in the name of the employing broker with whom the salespeople and associate brokers are affiliated.What are the requirements to be appointed Real Estate Commissioner in Arizona?

• Must be a resident of Arizona2. Must have been active in

any of the following for at least 5 years: a) Real estate

broker or salesperson b) Title insurance industry c) Mortgage broker industry d) Banking industry3. Must have at least 3 years administrative experience and may NOT be financially interested in any real estate brokerage firm.Can a licensee work for more than one broker? A single licensee may be employed by two different brokers concurrently ONLY if that licensee engages in totally distinct real estate-related sales and marketing such as cemetery sales or membership camping sales.Do time-share telephone solicitors need to be licensed?No, but a licensee must be in the room when the calls are being made.What Act creates statutory authority for creating contracts electronically via computer?The Arizona Electronics Transaction Act What is subdivided land?6 or more parcels, each must be 36 acres or less The Recovery Fund's Liability1. $30,000 per transaction regardless of the number of persons aggrieved or number of licensees or parcels of real estate involved.2. $90,000 per licensee3. Statute of Limitations is 5 years What is the first half of the tax year for property taxes?January 1 - June 30 Licensing is required of brokers and salespersons acting in what capacities?

• Real estate broker2. Real estate salesperson3.

Cemetery broker4. Cemetery salesperson5. Membership camping broker6. Membership camping salesperson7.Timeshare sales What is an improved lot?The lot will have a structure built within two years from date of contract What must a licensee (active or inactive) do if he lists his own home for sale?

• Must disclose that the seller is an Arizona real estate

salesperson or broker.2. Disclosure must be made as soon as practicable but no later than the date and time of which a written agreement is signed by buyer or seller, or both, or lessor or lessee, or both.Recovery Fund1. The ADRE retains a recovery fund for the benefit of the public for a wrong-doing by a licensee.2. Salespersons contribute $103. Brokers contribute $204. The minimum amount in the fund is $600,000If the fund drops below the minimum by June 30 of any year, upon renewal of his license, a salesperson will be assessed $10 and a broker will be assessed $20.What type of year does Arizona follow regarding real estate property taxes?A calendar year