B1 Flashcards by Andrew Tripp

Before the commissioner issues a public report on subdivided land, the subdivider may not:

a. Take lot reservations
b. Enter into a binding contract
c. Advertise the lots for sale
d. Begin lot improvements

b. Enter into a binding contract

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All of the following can be used in a developer’s public report advertisement EXCEPT:

a. Specific prices
b. A statement which says, “The public report is an endorsement of the project”
c. Names of the owner and past history
d. Future plans of the general area

b. A statement which says, “The public report is an endorsement of the project”

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How long are real estate exam tests scores valid for?

a. One year
b. Two years
c. Three years
d. Four years

a. One year

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How long does a broker doing sales need to keep records?

a. 2 years
b. 3 years
c. 4 years
d. 5 years

d. 5 years

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The commissioner may deny a public report for all of the following reasons EXCEPT:

a. The property is without ingress or egress
b. The owners have previously declared bankruptcy
c. The owners can’t produce perfect title
d. The owner can’t produce marketable title

c. The owner can’t produce perfect title

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All listings must be in writing to be enforceable according to:

a. Arizona Constitution Article XXVI
b. Law of Agency
c. Arizona Revised Statutes
d. RESPA

c. Arizona Revised Statutes

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The commissioner has the power to do all of the following EXCEPT:

a. Prescribe rules and regulations
b. Investigate signed written complaints
c. Examine office records
d. Create real estate statutes

d. Create real estate statutes

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After passing the real estate exam, a licensee must activate his license within:

a. Six months of the examination date
b. Six months of the notification of passing the test
c. One year of the examination date
d. Three years of the examination date

c. One year of the examination date

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Unless otherwise specified, a broker is required to deposit earnest monies is escrow or in a trust account:

a. Upon the buyer’s acceptance
b. Upon seller’s acceptance
c. By the close of next business day
d. Within 72 hours of receipt

c. By the close of the next business day

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The commissioner will deny a public report on a subdivision because of the subdivider’s inability to:

a. Provide buyers with water rights
b. Provide building permits
c. Deliver clear title
d. Provide floor plans

c. Deliver clear title

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Who may accept a commission from an out-of-state broker?

a. The referring salesperson
b. The referring brokerage
c. Unlicensed property manager
d. Any individual who made the referral

b. The referring brokerage

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If a broker abandons or moves their real estate office and fails to notify the commissioner, which of the following is true, according to Arizona Statutes?

a. They may receive a warning from the Real Estate Department
b. They will be fined $1,000.00
c. Their license will me automatically cancelled
d. They might be fined up to $500.00

c. Their license will be automatically cancelled

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A broker receives an oral offer over the telephone. What should they do?

a. Refuse to present it until it is in writing
b. Refuse to present it unless they have earnest money
c. The broker must present the oral offer
d. Tell the buyer that oral offers are illegal

c. The broker must present the oral offer

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A licensee may NOT charge for document preparation as a result of which of the following:

a. Rules and Regulations
b. Arizona Statutes
c. Arizona Constitution Article XXVI
d. Law of Agency

c. Arizona Constitution Article XXVI

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Which of the following is NOT required for a sales license in Arizona?

a. 90 hours of education
b. 90 days residence
c. Pass an examination
d. Minimum age

b. 90 days residence

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A broker prepares documents at a cost of $35. Which of the following is true?

a. The broker cannot charge for the service
b. The broker may charge if the parties agree
c. The broker may charge if it is considered an escrow fee
d. The broker may charge if the fee was negotiated

a. The broker cannot charge for the service

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What happens when a broker’s license expires?

a. The salespeople lose their license
b. The salespeople must find another broker
c. The salespeople may continue to work
d. The broker may work for an additional 90 days

b. The salespeople must find another broker

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How many brokers can a licensee work for at the same time in Arizona?

a. One at a time, in general real estate
b. Two, with the Department approval
c. Two, if he declares he is inactive
d. Two if one is a property manager

a. One at a time, in general real estate

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When a complaint is filed against a licensee, which of the follwing is true:

a. The licensee is automatically suspended
b. The commissioner must conduct an investigation
c. The license is revoked
d. The licensee is suspended until a hearing is held

b. The commissioner must conduct an investigation

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When a licensee leaves a broker, the license:

a. Goes with the licensee
b. Is sent to the real estate department
c. Remains on the broker’s wall
d. Is automatically terminated

b. Is sent to the real estate department

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When the commissioner receives a written complaint against a licensee:

a. The commissioner will automatically suspend the license
b. The commissioner will revoke the license
c. The commissioner will turn the matter over to the courts
d. A hearing will be held before any suspension

d. A hearing will be held before any suspension

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Which of the following would NOT be required to appear on a broker’s trust account deposit receipt:

a. Name of the principles
b. Date of deposit
c. Name of the brokerage
d. Deposit breakdown and amount

c. Name of the brokerage

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A subdivider employed hostesses to show houses. The hostesses explained the features of the homes and quoted prices and terms. In this instance:

a. Only the broker need be licensed
b. The hostesses are employees and need no license
c. The hostesses must be licensed real estate salespeople
d. As long as the hostesses do not accept deposits and do not write contracts, the hostesses need not be licensees

c. The hostesses must be licensed real estate salespeople

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You buy unimproved land in a subdivision sight unseen. You have how long to rescind the contract?

a. One year
b. Six months
c. Seven days
d. Ninety days

b. six months

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The Arizona Real Estate Commissioner is appointed by: a. State legislature b. Governor c. Popular vote d. Elected official

b. Governor

Who is responsible for formulating our industry's rules and regulations in Arizona? a. State legislature b. Governor c. Real Estate Commissioner d. Attorney General

c. Real Estate Commissioner

When a broker moves their office, the sign must be removed: a. Within six months b. Within 10 days c. Immediately d. Within 30 days

c. Immediately

The right to license real estate agents comes from the: a. Commissioner b. State legislature c. Municipalities d. County Government

b. State legislature

What can a developer do without a Public Report? a. Lot reservations b. Sales contracts c. Close Escrow d. Non-refundable deposits

a. Lot reservations

If you do not renew your license on time, your license will be: a. Suspended b. Expired c. Valid d. Unaffected

b. Expired

When a commission disputes arises between two licensees, their recourse would be to: a. Appeal to the Real Estate Commissioner b. Inform the client c. Seek relief through civil action d. Appeal to the advisory board

c. Seek relief through civil action

For a licensee to be paid a real estate commission, a license is required: a. At the close of escrow b. When all documents are recorded c. When earnest money is accepted d. At the time of the sale

d. At the time of the sale

A public report will be denied a developer for all of the following reasons EXCEPT: a. Failure to deliver marketable title b. Not providing detailed floor plans c. Misrepresenting the suitability of the property as a homesite d. Lack of financial ability to complete the project

B. Not providing detailed floor plans

When the designated broker is away on a temporary absence, all of the following are true EXCEPT: a. Temporary absence must be for 30 days or less b. A salesperson can be appointed as a designated representative c. The temporary absence relieves the designated broker of responsibility d. Written evidence of a designated representative must be kept for one year

c. The temporary absence relieves the designated broker of responsibility

Which applies to the Statute of Frauds? a. All leases need to be in writing b. Defines misrepresentation c. Enforceable real estate contracts must be in writing d. All personal property contracts must be notarized

c. Enforceable real estate contracts must be in writing

Which of the following need a real estate license? a. Person giving information about a subdivision b. Receiver in bankruptcy c. Trustee in handling a trust d. Attorney-at-law in the course of business

a. Person giving information about a subdivision

The commissioner can refuse to issue a subdivision public report because: a. The commissioner fears the subdivision will not be economically profitable b. The subdivider has previous fraud convictions c. The subdivider fails to provide floor plans d. The commissioner fears the properties have no real value

b. The subdivider has previous fraud convictions

In Arizona, the right of the licensee to prepare certain legal documents and forms comes from: a. U.S. Constitution b. Federal law c. Arizona Constitution d. Local ordinance

c. Arizona Constitution

A subdivider must be able to give the purchaser: a. Building permits b. Permanent access c. Water rights d. Perfect title

b. Permanent access

What can't the real estate commissioner do in the normal line of work? a. Check files of license b. Hold an active real estate license c. Hire and fire Department of Real Estate employees d. Revoke a real estate license

b. Hold an active real estate license

If a buyer buys a parcel of land in which a public report was required but was not issued, the buyer may void the sale within: a. 1 year b. 2 years c. 3 years d. 5 years

c. 3 years

All of the following are required for a real estate brokerage EXCEPT: a. Having a general trust account b. Maintaining day-to-day control of the business c. Using the brokerage name in all advertising d. Appointing a manager at each branch office

a. Having a general trust account

Which of the following statements is true regarding a broker's sales trust account: a. It may contain up to $3,500 of the broker's personal funds b. The broker may not pay other bills with the property management trust money c. The salesperson can be a signatory on the account d. All trust accounts must be bonded

c. The salesperson can be a signatory on the account

In order to renew a salesperson or associate broker license, you need how many hours of continuing education every two years: a. 12 hours b. 16 hours c. 18 hours d. 24 hours

d. 24 hours

Which is NOT the responsibility of a real estate agent: a. Inform the real estate department of change of address in 10 days b. Do whatever a broker says c. Turn earnest money over to the broker d. Act as a subagent

b. Do whatever the broker says

Which of the following is NOT true regarding a broker's sales trust account: a. It may be interest-bearing b. The salesperson may be an authorized signatory c. The salesperson may withdraw trust money to pay commissions d. A Trust account may not contain up to $500 of the broker's personal funds

c. The salesperson may withdraw trust money to pay commissions

Which of the following is NOT required of a real estate broker: a. Keep a copy of all contracts for 5 years b. Have day-to-day control of the operation c. Maintaing a neutral trust account d. Approve advertising material before publication

c. Maintain a neutral trust account

An active licensee's license: a. May be kept in the the licensee's possession b. Must be on file with the broker c. Must be kept on the licensee's person d. Remains with the state

b. Must be on file with the broker

When a broker is charged with an administrative fine, the amount of the fine is up to: a. $100 b. $500 c. $1,000 d. $5,000

c. $1,000

A temporary broker's license can be obtained by another party for all of the following EXCEPT: a. Broker dies b. Broker declared insane c. Broker injured d. Borker is on an extended vacation

d. broker is on an extended vacation

A subdivision public report would be required on all of the following properties EXCEPT? a. Residential timeshare b. New home sales c. Apartments converted to condos d. Commercial lots

d. Commercial lots

Upon conviction of a felony or misdemeanor, a licensee must notify the real estate department within: a. 3 days b. 7 days c. 10 days d. 14 days

c. 10 days

Which of the following listed below would be a violation of the commissioner's rules? a. Arizona broker paying a referral fee to an out-of-state broker b. Inducing a party to breach a contract c. Opening an interest-bearing trust account d. Representing both buyer and seller in a transaction with informed consent

b. Inducing a party to breach a contract

Which is FALSE about a purchase contract if the buyer does not receive a public report? a. The buyer may void the contract but will lose their deposit b. The buyer is not obligated to go through with the purchase c. The buyer has a voidable contract for 3 years d. The buyer is not receiving full protection

a. The buyer may void the contract but will lose their deposit

Who may initial a purchase contract per commissioner's rule? a. Any office manager b. Designated or delegated associate broker c. Salesperson d. Office employees

b. Designated or delegated associate broker

To act as a temporary broker, which of the following is NOT true: a. The temporary broker must hold an associate broker's license b. The temporary broker may be appointed by the real estate department c. The temporary broker may be a spouse of the deceased broker d. The temporary broker may obtain the temporary license from the real estate department

a. The temporary broker must hold an associate broker's license

When a sales license has expired and is now being renewed, the late charge would be: a. A Graduated monthly fee b. Three times the license fee c. Two and one-half times the license fee d. Up to $100 penalty

a. A graduated monthly fee

The real estate commissioner may do each of the following EXCEPT: a. Hire and fire Real Estate Department employees b. Look at the broker's books at any time c. Formulate rules and regulations d. Immediately revoke a real estate license based on a complaint of fraud

d. Immediately revoke a real estate license on a complaint of fraud

A public report is to be given to a buyer: a. Before the buyer signs the contract b. Within three days of signing the contract c. Within seven days after singing the contract d. Within six months of signing the contract

a. Before the buyer signs the contract

You have 30 acres and want to make six 5-acre lots. Which of the following is true? a. A public report is required b. A public report is not required c. A public report is not required due to size d. A public report is only required if you improve the lots

a. A public report is required

When a public report is issued on a timeshare project, which of the following would NOT be included in the report? a. Market value of the project b. Names of owners and developers c. Condition of the title d. Association fees to be paid

a. Market value of the project

The real estate advisory board is appointed by: a. Commissioner b. State Legislature c. Governor d. Popular election

c. Governor

A verbal lease of one year would be: a. Void b. Voidable c. Valid d. Unenforceable

c. Valid

When a real estate license is required to be renewed; it is done: a. By the last day of the month b. At the beginning of the month c. On the date issued d. On the licensee's birthday

a. By the last day of the month

Real estate commissions are set by: a. Custom b. Negotiation c. Multiple Listing Service d. Realtor Association

b. Negotiation

A salesperson receives an offer on a property of another listing broker. The salesperson cannot contact the listing broker within 24 hours. What must the salesperson do? a. Request the seller give the salesperson written authorization to present the offer b. Mail the offer back to the buyer c. Submit the offer to the seller immediately d. Hold the offer until the salesperson can contact the listing broker

a. Request the seller give the salesperson written authorization to present the offer

The buyer of a lot located within a subdivision may rescind the sale if the lot does NOT have which of the following? a. Permanent ingress and egress b. 100-year water supply c. Warranty deed d. Improvements that are paid for

a. Permanent ingress and egress

How long does a developer keep a receipt of having given a public report to the buyer a. 6 months b. 12 months c. 5 years d. 7 years

c. 5 years

What is the rescission time when a party purchases a timeshare? a. 3 days b. 7 days c. 6 months d. No rescission exists

b. 7 days

If an individual practices real estate without a license, this would be considered a: a. Class 6 felony b. Class 3 felony c. Class 1 misdemeanor d. Class 3 misdemeanor

a. Class 6 felony

Which of the following would NOT be included in a public report? a. Names of developers b. Legal Description c. Access to utilities d. Market value

d. Market value

According to Real Estate Law, an improved lot would be: a. A lot with utilities b. A lot with streets and servers c. A lot that has been subdivided d. A lot where a structure will be built on the lot within two years of contract

d. A lot where a structure will be built on the lot within two years of contract

If a broker does not notify the real estate department of an office closing, which of the following is true? a. Administrative fee of $500 is assessed b. Administrative fee of $1,000 is assessed c. License is suspended for one year d. Payment will be ordered from the recovery fund

b. Administrative fine of $1,000 is assessed

The taking of lot reservations before a public report is issued does NOT apply to: a. A subdivided lot with a model home on it b. Unimproved subdivided lots c. Improved industrial lots d. Unsubdivided lots

c. Improved industrial lots

Timeshare units in Hawaii are being offered for sale or lease in Arizona. The developer may be required to do all of the following EXCEPT: a. Secure an Arizona Public Report b. Secure a special use permit c. Pay expenses of Department of Real Estate to go and inspect the timeshare project d. Prove that the units have been approved by the state of Hawaii

b. Secure a special use permit

A broker goes on a cruise for ten days. Who can be left in charge? a. Any unlicensed employee b. Any real estate licensee employed by the broker c. Only a real estate salesperson d. Any corporate officers

b. Any real estate licensee employed by the broker

How many licensees does it take to open a branch office? a. One b. Two c. Three d. Four

a. One

A license is renewed every: a. 1 year b. 2 years c. 3 years d. 4 years

b. 2 years

How many members are on the Real Estate Advisory board? a. 3 b. 6 c. 7 d. 9

d. 9

B1 Flashcards

(79 cards)