Arizona Real Estate Code (Brkr, Agent, Recovery Funds) 15 Flashcards Preview

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Flashcards in Arizona Real Estate Code (Brkr, Agent, Recovery Funds) 15 Deck (68)
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1

Someone who Performs Real Estate Service for Another

Real Estate Broker -

Someone who Performs Real Estate Service for Another

Chap 15

2

Person Engaged to Represent a Real Estate Broker

Real Estate Salesperson -

Person Engaged to Represent a Real Estate Broker

Chap 15

3

AZ Constitution - Article XXVI (26) -

Gives Licensees Aut___ to Prepare All Types of Real Estate C______, but Only When Preparation Incidental to Their Function as Agent (N_ Ch___)

  1. Statute of Frauds: Contracts in Writing to be Enf______.
  2. Actual Laws (Articles 1-__, Title 3_, Chapter 2_)
  3. Commissioner Rules: Not Law but they have F___ and Ef___ of Law on Licensees
  4. Sub_____ Policy S____-  Cl____ ADRE Policies
  5. Case Law: Legal Cases that Esta______ Law

AZ Constitution - Article XXVI (26)  -

Gives Licensees Authoity to Prepare All Types of Real Estate Contracts, but Only When Preparation Incidental to Their Function as Agent (No Charge)

  1. Statute of Frauds: Contracts in Writing to be Enforced
  2. Actual Laws (Articles 1-10, Title 32, Chapter 20)
  3. Commissioner Rules: Not Law but they have Force and Effect of Law on Licensees
  4. Substantive Policy Stmts: Clarify ADRE Policies
  5. Case Law: Legal Cases that Establishes Law

Chap 15

4

What is Not Law but Has Force and Effect of Law?

Commissioner Rules:

Not Law but Has Force and Effect of Law

Chap 15

5

Established to Clarify ADRE Policies on Statute and Rules?

(SPS) Substantive Policy Statements:

Established to Clarify ADRE Policies on Statute and Rules.

Chap 15

6

Real Estate Commissioner

  1. Appointed by G______
  2. Qualifications: __Yrs Admin and __ Yrs Real Estate
  3. Cannot hold Real Estate License

Real Estate Commissioner 3/5/No RE License

(Real Estate Code/Article 1 - ADRE) -

  1. Appointed by Governer
  2. Qualifications: 3 Yrs Admin and 5 yrs Real Estate
  3. Cannot hold Real Estate License

Chap 15

7

(Real Estate Code/Article 1 - ADRE)

Real Estate Commissioner's duties (PAMI):

  1. Prom______: Commissioner's Rules (by Public Process)
  2. A____: Bo__s/Records of Licensees
  3. M_____: Daily Op_____ ADRE Dept (hire/fire)
  4. In______: Compaints Against Licensees

     a) Commissioner can Sub____ Docs

     b) May Apply to Sup____ Court - Compel Agent Comply with Subpoena

(Real Estate Code/Article 1 - ADRE)

Real Estate Commissioner's duties (PAMI):

  1. Promulgate: Commissioner's Rule (by Public Process)
  2. Audit: Books/Records of Licensees
  3. Manage: Daily Operation ADRE Dept (hire/fire)
  4. Investigate: Complaints Against Licensees

     a) Commissioner can Subpoena Docs

     b) May Apply to Superior Court - Compel Agent Comply with Subpoena

Chap 15

8

This falls under what?

Real Estate Advisory Board (10) - (No Money):

  1. Gov____ Appointed and holds Q____ Mtgs
  2. RE Brokers __ Members
  3. Subdividers __ Members
  4. RE Residential __ Members - in biz last __ yrs
  5. Multi-Family Res. 1 Member - In biz last 5 yrs
  6. Public Members __ Members

(Real Estate Code/Article 1 - ADRE)

Real Estate Advisory Board (10) - 2-2-2-1-3 (No Money):

  1. Governor Appointed and holds Quarterly Mtgs
  2. Real Estate Brokers 2 Members
  3. Subdividers 2 Members
  4. Real Estate Res 2 Members - in biz last 5 yrs
  5. Multi-Family Res 1 Members - in biz last 5 yrs
  6. Public Members 3 Members

Chap 15

9

Gives the State Right to License Brokers and Sales People.

(Real Estate Code/Article 2 - Licensing)

Police Power -   

Gives the State Right to License Brokers and Sales People.

Chap 15

10

Real Estate Broker: Qualifications: 3in5/90in10

  1. Licensed in AZ - _yrs - (In past _yrs) - or elsewhere
  2. Broker License Course - __hrs - (In past 10yrs)
  3. Pass - Sc____ and S____ Exam

Real Estate Broker: Qualifications: 3in5/90in10

(Real Estate Code/Article 2 - Licensing)

  1. Licensed in AZ - 3yrs - (In biz past 5yr) - or elsewhere
  2. Broker License Course - 90 hrs - (In past 10yrs)
  3. Pass - School/State Exam

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11

Real Estate Broker (Requirements):

  1. Definite Place of Business or Change of Location - Notify C________
  2. Failure to Notify Commissioner - Will C____ Broker License/Agent License
  3. Branch Offices (S______ License) - Managed by Licensed Broker or Agent
  4. Broker Displays - Broker License and F___ Housing S___

Real Estate Broker (Requirements):

(Real Estate Code/Article 2 - Licensing)

  1. Definite Place of Business or Change of Location - Notify Commissioner
  2. Failure to Notify Commissioner - Will Cancel Broker License/Agent License
  3. Branch Offices (Separate License) - Managed by Licensed Broker or Agent
  4. Broker Displays - Broker License and Fair Housing Sign

Chap 15

12

(Real Estate Code/Article 2 - Licensing)

If Broker Cannot Act in 24 hours (Process Is) -

Broker May Designate L_____ or Designated Br____ - for __Days Max

(Real Estate Code/Article 2 - Licensing)

If Broker cannot act in 24 hours (Process Is) -

Broker May Designate Licensee or Designated Broker - For 30 Days Max

Chap 15

 

13

(Real Estate Code/Article 2 - Licensing) 

Real Estate Salesperson - Qualifications

  1. __ Yrs old
  2. Licensing Course - __ Hours  (last 10 years)
  3. Contract Writing Class - __ Hours
  4. Pass - Sch___ and St____ Exam
  5. License - Broker Held and Avail for Rev___
  6. DRE - H___ Form/Sever Form

(Real Estate Code/Article 2 - Licensing) 

Real Estate Salesperson - Qualifications

  1. 18 yrs old
  2. Licensing Course - 90 hours  (last 10 years)
  3. Contract Writing Class - 6 Hours
  4. Pass - School/State Exam
  5. License - Broker Held/Avail for Review
  6. DRE - Hire Form/Sever Form

Chap 15

14

Brokers and Salespersons - Can have License Issued To

  1. Prof_____ Ltd L______ Company (PLLC) or
  2. Prof______ C______ (PC)

(Real Estate Code/Article 2 - Licensing)

Brokers and Salespersons - Can have License Issued To

  1. Professional Ltd Liability Company (PLLC) or
  2. Professional Corp (PC)

Chap 15

15

(Real Estate Code/Article 2 - Licensing)

Simultaneously Employ with Another Broker

  1. Cem_____ Broker or
  2. Mem______ Ca___ground Broker

(Real Estate Code/Article 2 - Licensing)

Simultaneously Employ with Another Broker

  1. Cemetery Broker or
  2. Membership Campground Broker

Chap 15

 

16

Renewal of Broker Licenses

  1. Renewed - Every __Years - Last Business Day Activation of Month
  2. Grace Period - __ Months after Expiration
  3. Ass Broker/Agent  - __ Hrs Cont Ed  - Every __ yrs 
  4. Designated/Ass Broker (Deligated Auth) and Self Employed - __ Hrs - Cont Ed - plus __ Broker Mgmt Clinics - Every __yrs

Renewal of Broker Licenses

  1. Renewed - Every 2 Years - Last Business Day Activation of Month
  2. Grace Period - 12 months after Expiration
  3. Ass Broker/Agent  - 24 hrs Cont Ed  - Every 2 yrs 
  4. Designated/Ass Broker (Deligated Auth) and Self Employed - 30 hrs - Cont Ed - plus 3 Broker Mgmt Clinics - Every 2 yrs

Chap 15

17

(Real Estate Code/Article 2 - Licensing)

Individuals - (RE License Not Required) -

  1. Pe____ or C____ Officers who (Buy, Sell, Lease, Rent or Exchange) Their Own Property.
  2. Attorney-__-F___ - In a Isolated Transaction
  3. Attorney at L__ - in Perf______ Duties
  4. BK Court Referee - by C____ Ord____
  5. Trustee - Selling under D___ of T_____
  6. Gov______ - in Performance Duties
  7. Natural Person Acts as Property Manager - O__ Commercial Property
  8. Manager - Apts (1 Location During Workday)
    1.  May Receive Perf_____ Bonus
    2.  Bonus Cannot Exceed 1/2 Salary - Only _x Month

    9. Broker Admin - Cl____, Ac____, Book____, Ad____

(Real Estate Code/Article 2 - Licensing)

Individuals - (RE License Not Required) -

  1. Persons or Corp Officers who (Buy, Sell, Lease, Rent or Exchange) Their "Own Property."
  2. Attorney-in-Fact - In a Isolated Transaction
  3. Attorney at Law - in Performance Duties
  4. BK Court Referee - by Court Order
  5. Trustee - Selling under Deed of Trust
  6. Government - in Performance Duties
  7. Natural Person Acts as Property Manager - One Commercial Property
  8. Manager - Apts (1 Location During Workday)
    1.  May Receive Performance Bonus
    2.  Bonus Cannot Exceed 1/2 Salary - Only 1x Month

    9. Broker Admin - Clerical, Acctg, Bookkeeper,  Admin

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18

Activation of License -

  1. Broker/Agents Licensed - __ Year from Ex___ Date to Become Licensed under Broker
  2. License Active For - __Yrs - (From Activation Month end)
  3. Agent - ___Hr Course/_Hrs Contract Writing
  4. Broker - __Hr Course/Broker M_____ Clinics

(Real Estate Code/Article 2 - Licensing)

Activation of License -

  1. Broker/Agents Licensed - 1 year from Examination Date to Become Licensed under Broker
  2. License Active for - 2 yrs - (From Activation Month End)
  3. Agent - 90Hr Course/6hrs Contract Writing
  4. Broker - 90Hr Course/Broker Management clinics

Chap 15

19

Real Estate Recovery Fund (Facts)

  1. Per Cause of Action - $__,000 Max
  2. Per Agent - $__,000 Max
  3. Lawsuit Filing  (Timeline) __ Years
  4. Commissioner Notified Lawsuit By - __ Days
  5. Until Funds Paid Back - Lic___ T____

(Real Estate Code/Article 5)

Real Estate Recovery Fund (Facts) 30-90-5-45:

  1. Per Cause of Action - $30,000 Max
  2. Per Agent - $90,000 Max
  3. Lawsuit Filing  (Timeline) -  5 years
  4. Commissioner Notified Lawsuit By - 45 days
  5. Until Funds Paid Back - License Terminated

Chap 15

20

Death of Broker

Sp____, Next of K__, Exe____ - May be Issued __ Day Temp Broker License.

(Real Estate Code/Article 2 - Licensing)

Death of Broker - 90 Day Spouse/Kin/Exec

Spouse, Next of Kin, Executor - 90 Day Temp Broker License.

Chap 15

21

Broker (All Monies) Immediately In -

  1. Neutral Es____ Account; OR
  2. T____ Fund - Fed_____ Insured Dep_____ located in Arizona.
  3. Brokers in Arizona - "Not Required" to maintain a T_____ A______

(Real Estate Code/Article 3 - Regulation)

Broker (All Monies) Immediately In -

  1. Neutral Escrow Account; OR
  2. Trust Fund - Federally Insured Depository located in Arizona
  3. Brokers in Arizona - "Not Required" to maintain a Trust Account

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22

Trust Account Requirements:

  1. Deposits Must be Made by D____ Sl__
  2. Receipts Must Have: (ID Tran_____, D___, A____,  Na____)
  3. Broker's Name - N___ Not Appear on Receipts
  4. No Commingling - Cl____ Funds with Brok__ Funds
  5. Complete Records in M___ Branch Of____
  6. Per (GAAP): Desc_____ Receipt, Disbur____ Ledger, and Cl____ Ledger
  7. Broker - Reconcile C____ L____ - Balance M_____
  8. Remove Interest Earned - Every __ Months
  9. Not Commingling: If Not in excess $______ Deposits to Keep Trust Account Open.

(Real Estate Code/Article 3 - Regulation)

Trust Account Requirements:

  1. Deposits Must be made by Deposit Slips
  2. Receipts Must Have: (ID Transaction, Date, Amount, Names)
  3. Broker's Name - Need Not Appear On Receipts
  4. No Commingling - Clent's Funds with Broker's Funds
  5. Complete Records - In Main Branch Office
  6. Per (GAAP): Descriptive Receipt, Disbursement Ledger, and Client Journal Ledger
  7. Broker - Reconcile Client Ledger and Balance- Monthly
  8. Remove Interest Earned - Every 12 months
  9. Not Commingling: If Not in excess $3000 Deposits to Keep Trust Account Open.

Chap 15

23

Trust Account Records and Accounting

  1. Complete Records in Main Bra___ O____
  2. Per (GAAP): Desc____ Receipt, Disb_____ Ledger, and Cl____ Ledger
  3. Broker - Reconcile C____ L____ - Balance Every M_____
  4. Remove Interest Earned - Every __ Months

(Real Estate Code/Article 3 - Regulation)

Trust Account Records and Accounting

  1. Complete Records - in Main Branch Office
  2. Per (GAAP): Descriptive Receipt, Disbursement Ledger, and Client Journal Ledger
  3. Broker - Reconcile Client Ledger and Balance-  Every Monthly
  4. Remove Interest Earned - Every 12 months

Chap 15

24

Trust Account Commingling

  1. No Commingling - Cl____ Funds with Br____ Funds
  2. Not Commingling: If Not in Excess $______ Deposits to Keep Trust Account Open.

(Real Estate Code/Article 3 - Regulation)

Trust Account Commingling

  1. No Commingling - Clent's Funds with Broker's Funds
  2. Not Commingling: If Not in Excess $3000 Deposits to Keep Trust Account Open

Chap 15

25

Trust Account Deposits and Receipts

  1. Deposits Must be made by D____ Sl__
  2. Receipts Must Have: (ID Tran_____, D___, A____,  N_____)
  3. Broker's Name - Need Not Ap___ on Receipts

(Real Estate Code/Article 3 - Regulation)

Trust Account Deposits and Receipts

  1. Deposits Must be made by Deposit Slips
  2. Receipts Must Have: (ID Transaction, Date, Amount, Names)
  3. Broker's Name - Need Not Appear Receipts

Chap 15

26

Trust Accounts Receipts shall contain -

  1. ID each Tr______,
  2. D___,
  3. A_____,
  4. N_____
  5. Brokers Name - N__ Req____

(Real Estate Code/Article 3 - Regulation)

Trust Accounts Receipts shall contain -

  1. ID each transaction,
  2. Date,
  3. Amount,
  4. Names
  5. Brokers Name - Not Required

Chap 15

27

Trust Accounts  (GAAP Requires) - Broker Shall Keep:

  1. Des_____ Receipt
  2. Disb______ J_____
  3. Cl___  L_____

(Real Estate Code/Article 3 - Regulation)

Trust Accounts  (GAAP Requires) - Broker Shall Keep:

  1. Descriptive Receipt
  2. Disbursement Journal
  3. Client Ledger

Chap 15

28

In Trust Accounts - Broker Reconciles "Client Ledgers" how often?

(Real Estate Code/Article 3 - Regulation)

Trust Accounts - Broker Reconcile "Client Ledgers"

  1. Reconcile Monthly
  2. Earned Interest - Remove Yearly

 

Chap 15

29

In Trust Account How Often Must Broker Remove Interest Earned from Client Ledger Balance?

(Real Estate Code/Article 3 - Regulation)

Trust Account Client Ledger (Remove Interest Earned) -

Every 12 months

Chap 15

30

Broker Records -

  1. Broker Records From Closing or Termination - _Yrs
  2. Earnest Money (C__, Ch___, Prom____ Note) Must State in Purchase Contract.
  3. Broker Transaction Folders - Chro_____ Log or Other Systematic Manner

Sales Transaction Folders include:

  1. Monies - Confirmation Ha___ Properly
  2. Copies: S___ Co____, Es____ Instructions and Receipts, Cl___ St____, List Ag____, Em____ Ag_____

All Contracts - Except Residental Lease Agmt) - Must Be:

  1. Broker Review - Within __ Business Days.
  2. Contract Still V___ Even if Broker Fails to Review.

Offers Rejected

  1. Rejected Offer (Copy/Orig) Must Retain for - _yr
  2. Binding Offer (Rejected) Must be Kept - __yrs

Broker Records - (Real Estate Code/Article 3 - Regulation) -

  1. Broker Records From Closing or Termination - 5yrs
  2. Earnest Money (Cash,Check,Promissory Note) Must State in Purchase Contract.
  3. Broker Transaction Folders - Chronological Log or Other Systematic Manner

Sales Transaction Folders include:

  1. Monies - Confirmation Handled Properly
  2. Copies: Sales Contracts, Escrow Instructions and Receipts, Closing Statements, List Agreement, Employment Agreement

All Contracts - Except Residental Lease Agmt - Must Be:

  1. Broker Review - Within 10 Business Days
  2. Contract Still Valid - Even if Broker Fails to Review.

Offers Rejected

  1. Rejected Offer (Copy/Orig) Must Retain for - 1 yr
  2. Binding Offer (Rejected) Must be Kept -  5 yrs

Chap 15