AZ Real Estate - Real Estate Brokerage: Law Of Agency & Pub Protection B2

Question 0

How is fund supported?

Answer 0

New Salespersons pay $10, new brokers pay $20.

If balance goes below $600k on Jun 30, deficit made up by collecting fees when licensees renew.

Question 1

RE Dept Recovery Fund created to?

Answer 1

Indemnify persons suffering loss as a result of misrepresentation or fraud of real estate agents.

Question 2

Who is eligible to make claims on recovery fund?

Answer 2

Those who have obtained civil judgements against brokers or salespersons but have not been able to collect in whole or in part.

Question 3

Procedure to file claim is:

Answer 3

1. File an intent to claim
2. File lawsuit against licensees
3. Win judgement
4. Exhaust all legal avenues of collection
5. Get a court order directing AZRE to pay

Question 4

Max amt claimant can get from Recovery Fund is?

Answer 4

$30k per transaction

One contract is one transaction.

If multiple transactions led to claim, no more than $90k will be paid on behalf of one RE licensee.

Question 5

When RE Recovery Fund payment made on behalf of licensee, what is status of agent’s license?

Answer 5

It is terminated.

Cannot get license back until pay back Recovery Fund in full plus interest.

Corps and RE licensees cannot make claim on fund.

Question 6

Who is principal or client?

Answer 6

Person who hires agent. Usually seller.

Question 7

Who is customer aka 3rd party?

Answer 7

Person you work with and not for. Usually buyer. Unrepresented principal ie you represent seller buyer is w/o agent.

Question 8

What are 3rd parties entitled to?

Answer 8

Truthful info

Question 9

If license terminated when can you reapply for license?

Answer 9

After 5 yrs assuming you paid fund back plus interest

Question 10

Salesperson is what type of agent?

Answer 10

A sub agent

Question 11

Special agent means

Answer 11

One purchase or sale

Question 12

Agent authorized to perform a variety of transactions is the

Answer 12

General Agent

Question 13

An agent in the employ of another agent or cooperating broker all representing Seller are

Answer 13

Subagents

Question 14

When broker represents both buyer and seller in same transaction she is a

Answer 14

Dual agent

Question 15

An agent who does everything on behalf of a client is a?

Answer 15

Universal agent aka power of attorney

Question 16

How does seller become client?

Answer 16

Listing agreement

Question 17

When all outward appearances imply agency because of conduct and acts it is what kind of agency?

Answer 17

Ostensible

Question 18

Agency of necessity can be created by emergency for example…

Answer 18

Agent discovers gushing water in a property.

Question 19

Fiduciary relationship of agent to principal are…

Answer 19

Loyalty
Confidentiality
Accountability
Obedience
Disclosure

Question 20

Principals duty to customers

Answer 20

Fair, honest and truthful

Question 21

Sellers Property Disclosure does what?

Answer 21

Helps seller to disclose. Not required by law.

Question 22

Listing agreement is a

Answer 22

Authorization to Sell

Question 23

An Agreement to Sell is a

Answer 23

Purchase Comtract

Question 24

Listing agreements and purchase contracts are

Answer 24

Non- assignable

Question 25

Open Listing is

Answer 25

1. A unilateral agreement 2. Multiple agents working for seller 3. Offers least protection to broker 4. Used in commercial 5. Procuring cause broker gets few 6. Owner makes sale he pays no fee 7. Not permitted in MLS because broker w/ open listing does not offer cooperation w/ other brokers

Question 26

Exclusive Agency Listing

Answer 26

Only one broker authorized to sell. If broker or cooperating broker sells commission is paid. Of owner sells no commission paid. Broker ends up getting buyer for seller w/ signs and ads. Commercial

Question 27

Exclusive right to sell

Answer 27

Only one broker auth to sell property. | Owner pays fee regardless of who gets buyer.

Question 28

Net listing

Answer 28

Seller gets net amt excess proceeds go to broker.

Question 29

Proof needed to collect in court...

Answer 29

A RE license Compensation agreement Procuring cause

Question 30

Commissions earned when?

Answer 30

1. At moment contract signed (meeting of minds) | 2. Paid at close of escrow unless diff time agreed to

Question 31

90 day clause protects who?

Answer 31

Broker. If Buyer/Seller agree to sale w/i 90 days of expiration of listing broker protected.

Question 32

Bilateral agency can be terminated by

Answer 32

Acts of parties Mutual Agreement Completion of purpose (sale)

Question 33

Agency can be terminated unilaterally by...

Answer 33

Revocation - seller fires agent w/ cause Renunciation - agent fires seller

Question 34

Agency can also be ended by..,

Answer 34

Operation of law - condemnation, eminent domain, zoning changes, bankruptcy or supervening illegality (something legal becomes illegal).

Question 35

How does death impact listing agreement?

Answer 35

Death, insanity or incompetence or seller or a self employed broker terminates listing agreement.

Question 36

AZ Revised Statute says listings must be

Answer 36

1. In writing 2. Say terms and include compensation 3. Have beg and end date 4. Signed by seller, broker or salesperson

Question 37

How many docs are needed for broker to be assured of collecting his commission if seller does not want to pay?

Answer 37

2

Question 38

Valid listing on community must be given by

Answer 38

Husband OR wife

Question 39

In buyer/broker exclusive employment agreement what does not have to be in agreement?

Answer 39

Legal description of property

Question 40

A licensed salesperson is what kind of agent to her broker?

Answer 40

General agent Property manager is also a general agent. Person auth to perform variety of transactions for for principal, mostly on continuing basis.

Question 41

In listing a property for sale what is not needed for valid exclusive listing?

Answer 41

A legal description.

Question 42

A cooperating broker in a real estate transaction is most likely the...

Answer 42

Buyer's Broker

Question 43

Agent owes customer...

Answer 43

Honesty

Question 44

Recovery fund claimant do not need to be....

Answer 44

Residents of AZ

Question 45

Broker earns cousin when..,.

Answer 45

Broker secures a willing and able buyer making an offer meeting seller's terms.

Question 46

In agency relationship confidentiality is a part of what duty?

Answer 46

Loyalty

Question 47

What may NOT be in a valid listing contract?

Answer 47

Automatic renewal clause

Question 48

After licensee repays recovery fund right to reapply for license may be denied for a max of ___years.

Answer 48

5

Question 49

A salesperson who represents seller in all RE transactions is what type of agent?

Answer 49

General Agent

Question 50

Broker's duty to a third party is

Answer 50

Full disclosure of material facts

Question 51

Seller gives sales person right to sell and make other decisions regarding property - this is called

Answer 51

General agent

Question 52

When does a salesperson have a listing?

Answer 52

When listing is signed

Question 53

Broker lists property for sale but does not advertise it, show it or communicate to seller. Seller has right to assume broker...

Answer 53

Has breached fiduciary and abandoned listing

Question 54

What is not required in a listing contract to be valid?

Answer 54

Commission rate

Question 55

A salesperson's right to commission is based on having a

Answer 55

Valid license

Question 56

Who does a salesperson represent?

Answer 56

Employing broker

Question 57

Broker relationship to seller is most likely..

Answer 57

Special

Question 58

When salesperson works for brokerage co salesperson is

Answer 58

Agent of Corporation and corporation is agent of seller

Question 59

When person hires another in a relationship if trust and confidence this is

Answer 59

Fiduciary

Question 60

When listing broker dies his son wants to take over all listings. Son must...

Answer 60

Re-writ and negotiate all listings

Question 61

Exclusive right to sell is what type of contract?

Answer 61

Executory bilateral

Question 62

Broker has listing but owner forgot to sign. Listing is...

Answer 62

Unenforceable

Question 63

Broker principal relationship is

Answer 63

Fiduciary

Question 64

What is not required to be in listing k?

Answer 64

Construction cost

Question 65

In agency relationship confidentiality is a part of what duty?

Answer 65

Loyalty

Question 66

To ensure broker gets paid commission on open listing broker must

Answer 66

Have a signed listing contract