Section 14: Brokerage Operations and Listing Agreements

Question 1

Brokerage Operations and Listing Agreements:
Brokerages:
There are many types of brokers and brokerages. Each brokerage is unique in what they offer and what they do. Our opinion is to look at brokers and brokerages to see what they do, if they do what you want to do, __________ them. Finding out what you want to do and then finding a broker who does that, is the best advice we can give.

Answer 1

Interview

Question 2

Brokerage Operations and Listing Agreements:
Brokerages:
Chain Of Command:
> Brokerage Entity Is In Charge Of The
> __________

Answer 2

Designated Broker

Question 3

Brokerage Operations and Listing Agreements:
Brokerages:
Real Estate Firms, Broker and Agents in Arizona:
* __________: The Brokerage

Answer 3

Entity

Question 4

Brokerage Operations and Listing Agreements:
Brokerages:
Real Estate Firms, Broker and Agents in Arizona:
o This is the __________ in which all agents and the Broker “work or are employed”.
o Could be a LLC, C Corp, S Corp or Partnership.

Answer 4

Corporation

Question 5

Brokerage Operations and Listing Agreements:
Brokerages:
Real Estate Firms, Broker and Agents in Arizona:
 __________: The name of a corporation LLC or entity.
o CAN NOT be a PC, PLLC or private person.

Answer 5

Fictitious Name

Question 6

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* __________:
o The individual responsible for all activities and operations for the “entity”.

Answer 6

Designated Broker

Question 7

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o In charge of all branch offices, managing brokers, associate brokers and agents.
o Every single transaction i.e. __________ and __________ belong to this person.

Answer 7

Sale and Listing

Question 8

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o Designated Broker owns ALL __________ and agrees to pay employed agents based upon their contract.

Answer 8

Commissions

Question 9

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o Can only be __________ Designated Broker at a time.

Answer 9

One

Question 10

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o Designated Broker must be partner if entity is __________.

Answer 10

Partnership

Question 11

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o Creates and updates the office policies manual or “__________”.
 All agents must sign and be given a copy of this manual.
 IMPORTANT: Failure of the brokerage to have a manual = $1000 Fine.

Answer 11

Standards of Practice

Question 12

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o Creates and updates the office policies manual or “Standards of Practice”.
 All __________ must sign and be given a copy of this manual.
 IMPORTANT: Failure of the brokerage to have a manual = $1000 Fine.

Answer 12

Agents

Question 13

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o Creates and updates the office policies manual or “Standards of Practice”.
 All agents must sign and be given a copy of this manual.
 IMPORTANT: Failure of the brokerage to have a manual = $__________ Fine.

Answer 13

$1000

Question 14

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
Quiz:

A real estate office does not have a policy manual. What is the penalty?

Loss of license

$1000

$2000

$1000 and suspension

Answer 14

$1000

Question 15

Brokerage Operations and Listing Agreements:
Brokerages:
Chain Of Command:

> Entity

is in charge of the

^ Designated Broker

is in charge of the

^ __________
^ __________
^ __________

Answer 15

Managing Broker

Associate Broker

Sales Agents

Question 16

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
* __________: THE MANAGER
o An associate broker that has been given SPECIAL authority to REVIEW contracts on behalf of the Designated Broker and helps w/ day to day operations.
o Can be in same or different location as Designated Broker.

Answer 16

Managing Broker

Question 17

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
* Associate Broker: STILL A SALESPERSON
o A sales agent that passed their Brokers test in AZ but works under Designated Broker
o Must have __________ Years out of past 5 Years current experience to be an Associate Broker.

Answer 17

3 Years

Question 18

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
* __________:
o Any individual who have “hung” their license with a DB and Entity.
o MUST have a license on file before operating in Real Estate.

Answer 18

Sales Agents

Question 19

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
* Sales Agents:
IMPORTANT: You CAN NOT be a licensed real estate agent without being under a __________.
o All business done in name of Designated Broker.

Answer 19

Designated Broker

Question 20

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
* Sales Agents:
o Acts as a “general real estate agent for the Designated Broker.
o Designated Broker is fully responsible for all actions of the sales agents while __________Employed.

Answer 20

Employed

Question 21

Brokerage Operations and Listing Agreements:
Salesperson and Sub-Agents:
* Any agent, associate broker or salesperson that works for a Designated Broker is
considered a __________ of the broker since they are doing business on behalf of the Broker.

Answer 21

Sub-Agent

Question 22

Brokerage Operations and Listing Agreements:
Salesperson and Sub-Agents:
* If the Broker owns all listings, the BROKER is technically the real ‘__________’ working for the seller. You represent the Broker’s interests with the shared client.

Answer 22

Agent

Question 23

Brokerage Operations and Listing Agreements:
Salesperson and Sub-Agents:
* __________:
Agent of the broker and also a fiduciary to their client.

Answer 23

Salesperson

Question 24

Brokerage Operations and Listing Agreements:
Salesperson and Sub-Agents:
o Salesperson is acting on behalf of their broker who is in charge of contracts.
o Salesperson is acting as a ‘Sub-Agent’ to the CLIENT on __________ of the Broker.

Answer 24

Behalf

Question 25

Brokerage Operations and Listing Agreements: Salesperson and Sub-Agents: * Sub-Agent: Agent is an ‘AGENT of the AGENT’ An Agent for the __________.

Answer 25

Broker

Question 26

Brokerage Operations and Listing Agreements: Salesperson and Sub-Agents: o Broker works for client, but salesperson works for the broker, who in turn works on BEHALF of the broker for the client and as such IS a __________ to the client.

Answer 26

Sub-Agent

Question 27

Brokerage Operations and Listing Agreements: Salesperson and Sub-Agents: Quiz: True or False: Anyone that works for a designated broker is considered a sub-agent of the broker since they are doing business on behalf of the broker. True False

Answer 27

True

Question 28

Brokerage Operations and Listing Agreements: Agent Status as Employee or Contractor: * The STRICT difference is in taxes: A __________ means this is an employee and thus the employer withholds or keeps taxes from the paycheck.

Answer 28

W-2

Question 29

Brokerage Operations and Listing Agreements: Agent Status as Employee or Contractor: * The STRICT difference is in taxes: A __________ is self-employed and they must pay all of their own taxes.

Answer 29

1099

Question 30

Brokerage Operations and Listing Agreements: Agent Status as Employee or Contractor: * Most brokerage firms maintain that agents are __________, NOT employees. - Before joining any brokerage, it is important to understand the difference.

Answer 30

1099 Independent Contractors

Question 31

Brokerage Operations and Listing Agreements: Agent Status as Employee or Contractor: o __________: Acting as self-employed, the broker CANNOT dictate hours.

Answer 31

Independent Contractor

Question 32

Brokerage Operations and Listing Agreements: Agent Status as Employee or Contractor: o __________: You perform services that can be CONTROLLED by an employer. You work a set schedule.

Answer 32

Employee

Question 33

Brokerage Operations and Listing Agreements: Agent Status as Employee or Contractor: * IMPORTANT: The common rule is that an employer can tell an employee what will be done and how it will be done and __________ dictate this to an independent contractor.

Answer 33

Cannot

Question 34

Listing Agreements: Agent Status as Employee or Contractor: * Taxes are __________ from employee’s but NOT from contractors who will receive a 1099.

Answer 34

Withheld

Question 35

Brokerage Operations and Listing Agreements: Real Estate Agent vs. Realtor: * There are real estate agents and Realtors®. There is a difference. o Agents are licensed by the States Dept. of Real Estate and may perform acts in which a commission is paid but are NOT members of any __________.

Answer 35

Boards

Question 36

Brokerage Operations and Listing Agreements: Real Estate Agent vs. Realtor:  Examples - __________, New Home Sales, Land, Commercial Agents, and Business Brokers. - MOST LIKELY ARE NOT Realtors®

Answer 36

Timeshare Sales

Question 37

Brokerage Operations and Listing Agreements: Real Estate Agent vs. Realtor:  Examples - Timeshare Sales, __________, Land, Commercial Agents, and Business Brokers. - MOST LIKELY ARE NOT Realtors®

Answer 37

New Home Sales

Question 38

Brokerage Operations and Listing Agreements: Real Estate Agent vs. Realtor:  Examples - Timeshare Sales, New Home Sales, Land, __________, and Business Brokers. - MOST LIKELY ARE NOT Realtors®

Answer 38

Commercial Agents

Question 39

Brokerage Operations and Listing Agreements: Real Estate Agent vs. Realtor:  Examples - Timeshare Sales, New Home Sales, Land, Commercial Agents, and __________. - MOST LIKELY ARE NOT Realtors®

Answer 39

Business Brokers

Question 40

Brokerage Operations and Listing Agreements: Real Estate Agent vs. Realtor: o A real estate agent who is a member of the National Association of REALTORS® is a Realtor®, which means that he or she must uphold the standards of the association and its __________.

Answer 40

Code of Ethics

Question 41

Brokerage Operations and Listing Agreements: Real Estate Agent vs. Realtor:  These agents now MUST belong to the National Association of Realtors®  Being a Realtor® – must use __________ and enables Realtor to be used.

Answer 41

Capital R

Question 42

Brokerage Operations and Listing Agreements: National, State and Local Boards and Associations: * __________: This is the Realtor® Designation. o Largest Trade Association in the World.

Answer 42

National Association of Realtors (NAR)

Question 43

Brokerage Operations and Listing Agreements: National, State and Local Boards and Associations: * __________: o They produce the boilerplate forms that most agents use in transactions.

Answer 43

States Association of Realtors (SAR)

Question 44

Brokerage Operations and Listing Agreements: National, State and Local Boards and Associations: * __________: o Peoria Association of Realtors (PAR), West and SouthEast REALTORS of the Valley (WeSERV), West Maricopa Association of Realtors (WMAR), and SouthEast Valley Regional Association of Realtors (SEVRAR) are all examples of local boards in Arizona. - IMPORTANT: They are divided into a territory, but there are no limits or laws as to where they operate.

Answer 44

Local Boards

Question 45

Brokerage Operations and Listing Agreements: National, State and Local Boards and Associations: * Local Boards: o __________(PAR), __________(WeSERV), __________ (WMAR), and __________ (SEVRAR) are all examples of local boards in Arizona. - IMPORTANT: They are divided into a territory, but there are NO limits or laws as to where they operate.

Answer 45

Peoria Association of Realtors West and SouthEast REALTORS of the Valley West Maricopa Association of Realtors SouthEast Valley Regional Association of Realtors

Question 46

Brokerage Operations and Listing Agreements: National, State and Local Boards and Associations: * Multiple Listing Service (MLS): o Each __________ area has their own MLS (Prescott, Tucson, ARMLS, Etc.

Answer 46

Regional

Question 47

Brokerage Operations and Listing Agreements: National, State and Local Boards and Associations: Multiple Listing Service (MLS): o Access to the MLS is by being a __________ only.

Answer 47

Realtor®

Question 48

Brokerage Operations and Listing Agreements: National, State and Local Boards and Associations: Multiple Listing Service (MLS): o This is the database where all brokers/agents will __________ their listings with other realtors for their clients.

Answer 48

Advertise

Question 49

Brokerage Operations and Listing Agreements: National, State and Local Boards and Associations: Multiple Listing Service (MLS): o By offering to “__________” the commission, this is publicized ONLY in the MLS.

Answer 49

Share

Question 50

Brokerage Operations and Listing Agreements: National, State and Local Boards and Associations: Multiple Listing Service (MLS): o Brokers and agents CAN NOT negotiate __________ in the offer/acceptance of a contract.

Answer 50

Commissions

Question 51

REVIEW PRESCOTT BROKER LISTING: Real Life NOTE: Commissions are ALWAYS negotiable between the __________ and the Seller. The commission offered to a buyer's agent (if any) is up to the listing agent to share and would be found in the MLS!

Answer 51

Listing Broker

Question 52

National, State and Local Boards and Associations: Case Study: What is the difference between a Managing Broker and an Associate Broker?

Answer 52

A Managing Broker is an associate broker who has been given special authority to review contracts on behalf of the DB and helps in day-to-day operations. They can be in the same or different location as DB. However, the Associate Broker is a sales agent who passed their Broker test in AZ but works under DB. They must have three years out of the past five years of experience to be AB.

Question 53

National, State and Local Boards and Associations: Case Study: Can you be a Real Estate Agent and not a Realtor®?

Answer 53

Yes, a real estate agent who is not a member of the National Association of REALTORS® is not a Realtor®.

Question 54

National, State and Local Boards and Associations: Case Study: What is the difference between an independent contractor and an employee?

Answer 54

Independent contractor is acting as self-employed. The broker cannot dictate hours. Whereas as an employee, you perform services that an employer can control.

Question 55

National, State and Local Boards and Associations: Case Study: How are brokers, salespersons, and sub-agent related?

Answer 55

Broker works for a client, but salesperson works for the broker, who in turn works on behalf of the broker for the client and, as such is a sub-agent to the client

Question 56

National, State and Local Boards and Associations: Quiz: Who is responsible for the licensing of agents in the State of Arizona: Department of Real Education Pierson Vue School Facility Department of Real Estate

Answer 56

Department of Real Estate

Question 57

National, State and Local Boards and Associations: Quiz: SellingAZ real estate firm is expanding and opened up a new remote office in Show Low, ArizonA. This new office quickly grows under the watchful eye of a branch managing associate broker. One agent while out showing properties, steals a watch from a house while with his clients. Who is responsible: Homeowners Insurance Associate Broker acting as team lead Branch Manager in charge of this office Designated Broker of main company

Answer 57

Designated Broker of main company

Question 58

National, State and Local Boards and Associations: Quiz: If a newly formed real estate entity is created in Arizona, which of the following could not be used as the entity type: Limited Liability Corporation (LLC) S Corporation Partnership Professional Corporation (PC)

Answer 58

Professional Corporation (PC)

Question 59

National, State and Local Boards and Associations: Quiz: All of the following might be One way a real estate brokerage could be set up in the state of Arizona except : a nonprofit partnership Corporation LLC

Answer 59

a nonprofit

Question 60

National, State and Local Boards and Associations: Quiz: In the State of Arizona, the ________________ is responsible for the actions of all agents. Department of Real Estate Owner of the Brokerage Associate and Mentor Broker Designated Broker

Answer 60

Designated Broker

Question 61

National, State and Local Boards and Associations: Quiz: Which of the following reasons could be a reason why a salesperson would not be eligible to become a designated broker in the State of Arizona? He or She is Not a Realtor Previous ethics complaints He or she is not yet 21 years of age Does not have a college degree or higher

Answer 61

He or she is not yet 21 years of age

Question 62

National, State and Local Boards and Associations: Quiz: What type of agent is the real estate agent in regards to the brokerage: Specific Universal General Associate

Answer 62

General

Question 63

Brokerage Operations and Listing Agreements: NAR® Code of Ethics: * Realtors® adhere to a set of moral principles that govern our behavior. * The Expectation to live up to the “__________” and to treat others as you want to be treated. * We are expected to be honest, truthful, competent and of good moral character.

Answer 63

Golden Rule

Question 64

Brokerage Operations and Listing Agreements: NAR® Code of Ethics: o Duties to Clients and Customers, the Public and Duties to other Realtors. o Knowledge of purpose and effects of both principles and practices. o Knowledge of real estate contracts, financing, management etc. o Knowledge of real estate statutes, laws, and __________ standards.

Answer 64

Commissioner

Question 65

Brokerage Operations and Listing Agreements: NAR® Code of Ethics: The National Association of Realtors® has a "CODE OF ETHICS" that constrains Realtors® to a strict moral and ethical set of behaviors. Remember, this is not mandatory to become a Realtor® but it is very useful, especially if you need or want access to the __________!

Answer 65

MLS

Question 66

Brokerage Operations and Listing Agreements: NAR® Code of Ethics: * IMPORTANT: REALTOR® members must complete __________ Hours of ethics training, meeting specific learning objectives and criteria, within three (3) year cycles.

Answer 66

2.5 Hours

Question 67

Brokerage Operations and Listing Agreements: NAR® Code of Ethics: * IMPORTANT: REALTOR® members must complete 2.5 Hours of ethics training, meeting specific learning objectives and criteria, within __________ Year cycles.

Answer 67

3 Year

Question 68

Brokerage Operations and Listing Agreements: NAR® Code of Ethics: NAR® Code Of Ethics to be used solely and exclusively by members of the __________.

Answer 68

Arizona Association Of Realtors®

Question 69

Brokerage Operations and Listing Agreements: Designated Broker Duties: * Broker must review any and all contracts, offers, leases or addendums: o within a period of __________ Business Days from execution of all parties. o Review all contracts looking for errors or omissions.

Answer 69

10 Business Days

Question 70

Brokerage Operations and Listing Agreements: Designated Broker Duties: * __________: o Broker may assign broker supervision duties to an associate broker employed in either the main office or in a separate branch office.

Answer 70

Supervise the Activities of Licensees

Question 71

Brokerage Operations and Listing Agreements: Designated Broker Duties: * Supervise the Activities of Licensees: o Broker may NOT __________ all overall responsibility for supervision and control of the acts of an employing broker’s employees.

Answer 71

Relinquish

Question 72

Brokerage Operations and Listing Agreements: Designated Broker Duties: * Only the __________ may Hire or Fire a licensee.

Answer 72

Designated Broker

Question 73

Brokerage Operations and Listing Agreements: Designated Broker Duties: * Only the Designated Broker may sign __________.

Answer 73

Commission Checks

Question 74

Brokerage Operations and Listing Agreements: Designated Broker Duties: * IMPORTANT: Only the Designated Broker may be a __________ on the branch office trust account or property management trust account & write checks from the broker’s trust accounts.

Answer 74

Signer

Question 75

Brokerage Operations and Listing Agreements: Designated Broker Duties: * Only the Designated Broker may be the person collecting and paying __________.

Answer 75

Errors and Omission Insurance (E&O)

Question 76

Brokerage Operations and Listing Agreements: Designated Broker Duties: o Errors and Omission Insurance (E&O): Insurance Policy Brokers carry in case of __________ caused by their agents.

Answer 76

Lawsuits

Question 77

Brokerage Operations and Listing Agreements: Designated Broker Duties: o Errors and Omission Insurance (E&O): o IMPORTANT: This is Not __________ in the State of Arizona but is generally carried by most brokers.

Answer 77

Mandatory

Question 78

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: *ALL advertising must be monitored and __________ by the Designated Broker.

Answer 78

Approved

Question 79

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: o To prevent fraud or misrepresenting to the __________. o Must be accurate. o Must disclose employing brokerage name predominantly.

Answer 79

General Public

Question 80

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: * IMPORTANT: Agents MUST disclose that they are licensed in a transaction where they are representing a client – if they fail to it is known as a __________.

Answer 80

Blind Ad

Question 81

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: * IMPORTANT: Agents MUST list that they are “OWNER/AGENT” in any ad where they have an __________ Interest and must disclose this to all parties involved.

Answer 81

Ownership

Question 82

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: __________: Advertisements for real property where the agent fails to tell the general public that they are a licensed agent.

Answer 82

Blind Ad’s

Question 83

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: Blind Ad’s: * The employing __________ name must be clear and prominent in ads – the full name, NOT an abbreviation or parent company.

Answer 83

Broker’s

Question 84

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: Blind Ad’s: * All websites: The __________of the employing broker must be visible on the first page of the site without scrolling down.

Answer 84

Name

Question 85

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: Blind Ad’s: * In order for an agent to place a “FOR SALE” sign on a property. -MUST have owner’s written permission from owner in __________.

Answer 85

Writing

Question 86

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: Blind Ad’s: * If advertising another listing, the owning __________ name must be displayed as the factual broker representing that owner.

Answer 86

Brokerage

Question 87

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: Blind Ad’s: * It is not allowed to ‘__________ or __________’ when advertising acreage. - Any acreage that is advertised must be described as the square footage or the decimal. (.25 acres = ¼ acre = 10,890sqft or 43,560 sqft = 1 acre)

Answer 87

Round Up or Round Down

Question 88

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: *It is illegal to offer prizes or __________ to purchase to the general public for either free or reduced costs.

Answer 88

Incentives

Question 89

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: * Any ‘__________’ that includes an offer of money, discounts etc. must be PROMINENTLY disclosed in the listing.

Answer 89

Inducement

Question 90

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: * Games of chance or __________ are prohibited in the sales of real estate.

Answer 90

Lotteries

Question 91

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: * Games of chance or lotteries are prohibited in the sales of real estate. **Exception: __________, Timeshare Sales, or Campgrounds, MAY with permission from Arizona Department of Real Estate (ADRE), host a lottery.

Answer 91

Land Sub-Dividers

Question 92

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: * Games of chance or lotteries are prohibited in the sales of real estate. **Exception: Land Sub-Dividers, Timeshare Sales, or __________, MAY with permission from Arizona Department of Real Estate (ADRE), host a lottery.

Answer 92

Campgrounds

Question 93

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: * Games of chance or lotteries are prohibited in the sales of real estate. **Exception: Land Sub-Dividers, __________, or Campgrounds, MAY with permission from Arizona Department of Real Estate (ADRE), host a lottery.

Answer 93

Timeshare Sales

Question 94

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: Timeshares: * A __________ may be given to persons who visit timeshare properties or who attend a timeshare presentation.

Answer 94

Premium

Question 95

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: Timeshares: - Maximum time to present is __________ Minutes to receive the premium or gift. - Developer must in writing describe value of premium prior to presentation.

Answer 95

120 Minutes

Question 96

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: Timeshares: - Maximum time to present is 120 Minutes to receive the premium or gift. - Developer must in _________ describes value of premium prior to presentation.

Answer 96

Writing

Question 97

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: * With team advertising it must be clear that the _________ is a part of the employing Brokerage. i.e., placing “The (Team Name) Team” at the top of the page in large letters with a much smaller brokerage symbol somewhere below is NOT sufficient.

Answer 97

Team

Question 98

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: * All websites, the name of the employing broker must be visible on the first page of the site without scrolling down. * If advertising another listing, the owning brokerage name must be displayed as the factual _________ representing that owner.

Answer 98

Broker

Question 99

Brokerage Operations and Listing Agreements: Designated Broker Review of Advertising: * “_________” sign on a property -MUST have owner’s written permission from owner in writing

Answer 99

For Sale

Question 100

Brokerage Operations and Listing Agreements: Broker Review of Advertising: * It is not allowed to ‘round up or down’ when advertising acreage. Any acreage that is advertised must be described as the square footage or the _________. (.25 acres = ¼ acre = 10,890sqft or 43,560 sqft = 1 acre)

Answer 100

Decimal

Question 101

Brokerage Operations and Listing Agreements: Broker Review of Advertising (rules): Quiz: If describing an acre of land for sale, all of the following must be advertised: The property must identify the actual listing broker The property is exactly 43,560 square feet The advertisement must be reviewed by the broker

Answer 101

The property must identify the actual listing broker The property is exactly 43,560 square feet The advertisement must be reviewed by the broker

Question 102

Brokerage Operations and Listing Agreements: Absence of Designated Broker: * If the designated broker is unable to act within _________ Hours, the broker may designate a licensee in the broker’s employ or another designated broker to act on the broker’s behalf. o The designation must be made in writing and may not exceed 30-days in duration.

Answer 102

24 Hours

Question 103

Brokerage Operations and Listing Agreements: Absence of Designated Broker: * If the designated broker is unable to act within 24 Hours, the broker may designate a licensee in the broker’s employ or another designated broker to act on the broker’s behalf. o The designation must be made in writing and may not exceed _________ Days in duration.

Answer 103

30 Days

Question 104

Brokerage Operations and Listing Agreements: Absence of Designated Broker: o May perform any duties the designated broker may lawfully perform. o Except that a salesperson may _________ be authorized to hire or fire licensees.

Answer 104

Not

Question 105

Brokerage Operations and Listing Agreements: Absence of Designated Broker: o A written authorization is required for _________ temporary absence by the broker.

Answer 105

Each

Question 106

Brokerage Operations and Listing Agreements: Absence of Designated Broker:  A salesperson may act as a branch or limited broker / manager.  They can perform office tasks that are not statutory duties of the broker.  Be a _________ on the broker’s trust account or management trust account.

Answer 106

Signer

Question 107

Brokerage Operations and Listing Agreements: * _________: o This occurs anytime the DB has died or becomes incapacitated. o The replacement individual does NOT need to be licensed in AZ.

Answer 107

Temporary Broker

Question 108

Brokerage Operations and Listing Agreements: * Temporary Broker: o Temporary Brokers time period is _________ Days. o IMPORTANT: Can be extended up to 15 Months Total Duration (in some cases).

Answer 108

90 Days

Question 109

Brokerage Operations and Listing Agreements: * Temporary Broker: o Temporary Brokers time period is 90 Days. o IMPORTANT: Can be extended up to _________ Months Total Duration (in some cases).

Answer 109

15 Months

Question 110

Brokerage Operations and Listing Agreements: * Temporary Broker: o Used to wrap up ANY and ALL business broker had at time. - No _________ Business Can Be Started.

Answer 110

New

Question 111

Designated Broker: Quiz: The duties of a designated broker may include… Supervise the activity of all licensees Review any and all contracts, offers, leases or addendums within 10 days from execution. All advertising unmonitored and not approved by broker Sign commission checks and collect/pay the E&O

Answer 111

Supervise the activity of all licensees Review any and all contracts, offers, leases or addendums within 10 days from execution. Sign commission checks and collect/pay the E&O

Question 112

Designated Broker: Case Study: If an agent fails to disclose that they are licensed in a transaction representing a client, what type of ad is this?

Answer 112

Agents MUST DISCLOSE that they are licensed in a transaction representing a client. If they fail to, it is known as a BLIND AD.

Question 113

Designated Broker: Case Study: What must a broker review?

Answer 113

Broker must review any contracts, offers, leases, or addendums within ten days from execution of all parties. The review looks at errors or omissions made by the agent or principals.

Question 114

Designated Broker: Case Study: When may a licensee legally perform most of a broker’s duties?

Answer 114

If the designated broker cannot act within 24 hours, the broker may select a licensee in the broker’s employ or another designated broker to work on the broker’s behalf.

Question 115

Designated Broker: Case Study: Why does a broker carry E&O Insurance?

Answer 115

Brokers carry an E&O Insurance Policy in case of lawsuits caused by their agents.

Question 116

Designated Broker: Quiz: Who is responsible for the licensing of agents in the State of Arizona: Department of Real Education Pierson Vue School Facility Department of Real Estate

Answer 116

Department of Real Estate

Question 117

Designated Broker: Quiz: All of the following are required to be part of the brokers review except which one? All contracts were signed and dated The sellers capacity to buy/sell The listing date and end date The seller has agreed in writing to allow a sign to be placed on the property

Answer 117

The sellers capacity to buy/sell

Question 118

Designated Broker: Quiz: Who has the capacity to act while the Designated Broker is gone for a period of more than 24 hours but less than 30 days: Licensed Broker from out of State Associate Broker A State Appointed Designated Broker All of the Above

Answer 118

Associate Broker

Question 119

Designated Broker: Quiz: The National Realtor Code of Ethics has strict standards, but will always come second to what: Brokers authority Supervising Brokers written instructions State, local, or national law Fiduciaries written instructions

Answer 119

State, local, or national law

Question 120

Designated Broker: Quiz: The document that all Realtors must adhere to and uphold the standards is the: Code of Realtor Behavior Code of Ethics Administrative Code Commissioners Code

Answer 120

Code of Ethics

Question 121

Designated Broker: Quiz: The MLS is designed to be: A tool used by the public to narrow down their property search A database used to advertise listings to other brokers with an offer to share compensation for a sale Multiple Layered Sales or a way for brokers to share listing data A way to syndicate listings to 3rd party sites

Answer 121

A database used to advertise listings to other brokers with an offer to share compensation for a sale

Question 122

Designated Broker: Quiz: By stating a property is an acre, the listing agent must have a property that is exactly how many square feet? 40,200 43,560 45,260 52,800

Answer 122

43,560

Question 123

Brokerage Operations and Listing Agreements: Broker Records and File Retention: * Required to maintain Employment Records confirming the hiring, severing or license renewal of all current and former employees, including employment agreements for a period of _________ Years.

Answer 123

5 Years

Question 124

Brokerage Operations and Listing Agreements: Broker Records and File Retention: * Broker is required to keep retained records of _________ transactions handled by or through the Designated Broker.

Answer 124

All

Question 125

Brokerage Operations and Listing Agreements: Broker Records and File Retention: * _________: These are to be kept in the principal office, licensed branch office in this state, or off-site storage location in this state.

Answer 125

Closed “Sale” Files

Question 126

Brokerage Operations and Listing Agreements: Broker Records and File Retention: o A transaction is not considered “_________” until the buyer has been supplied with: - Evidence of Title - Delivery of Deed - Accounting to the Seller of Consideration Coming to him - Delivery of Possession of the Premises to the Buyer * IMPORTANT: These files must be kept for a period of 5 years for all CLOSED files.

Answer 126

Closed

Question 127

Brokerage Operations and Listing Agreements: Broker Records and File Retention: o A transaction is not considered “closed” until the buyer has been supplied with - Evidence of Title - Delivery of Deed - Accounting to the Seller of Consideration Coming to him - Delivery of Possession of the Premises to the Buyer * IMPORTANT: These files must be kept for a period of _________ Years for all CLOSED files.

Answer 127

5 Years

Question 128

Brokerage Operations and Listing Agreements: Broker Records and File Retention: o A transaction is not considered “closed” until the buyer has been supplied with: 1. 2. 3. 4. * IMPORTANT: These files must be kept for a period of 5 Years for all CLOSED files.

Answer 128

1. Evidence of Title 2. Delivery of Deed 3. Accounting to the Seller of Consideration Coming to Him 4. Delivery of Possession of the Premises to the Buyer

Question 129

Brokerage Operations and Listing Agreements: Broker Records and File Retention: * These files must be kept for a period of 5 years for all CLOSED files. - Part of the file that brokers have to keep on file for 5 years is the _________ or _________.

Answer 129

Closing Settlement Statement or Final Settlement Statement

Question 130

Brokerage Operations and Listing Agreements: Broker Records and File Retention: * Part of the file that brokers have to keep on file for 5 years is the CLOSING settlement statement or FINAL settlement statement – this is also the _________ to all parties.

Answer 130

Distribution of Funds

Question 131

Brokerage Operations and Listing Agreements: Broker Records and File Retention: * For a period of _________ Year for all rejected or contracts that did NOT close or Rejected Files.

Answer 131

1 Year

Question 132

Brokerage Operations and Listing Agreements: Broker Records and File Retention: * Brokers “_________” must be on ALL closed files.

Answer 132

Initial and Date of Review

Question 133

Brokerage Operations and Listing Agreements: Broker Records and File Retention: o Closed files must have copies of: - Contracts/_________ - Earnest Money Deposit Receipt - Receipts - Closing or Settlement Statements - _________/Rental Agreements - Escrow Instructions - Listing Agreements

Answer 133

Addendum Lease

Question 134

Brokerage Operations and Listing Agreements: Broker Records and File Retention: o Closed files must have copies of: 1. 2. 3. 4. 5. 6. 7. 8.

Answer 134

1. Contracts/Addendum 2. Earnest Money Deposit Receipt 3. Receipts 4. Closing or Settlement Statements 5. Lease/Rental Agreements 6. Escrow Instructions 7. Listing Agreements

Question 135

Brokerage Operations and Listing Agreements: Off Site Storage of Records: * Records are to be maintained in the employing broker _________ in Arizona.

Answer 135

Office

Question 136

Brokerage Operations and Listing Agreements: Off Site Storage of Records: * A broker MAY store paper records at an off-site storage location in Arizona if the broker provides prior written notification of the street address of the off-site storage location to the _________.

Answer 136

Arizona Department of Real Estate (ADRE)

Question 137

Brokerage Operations and Listing Agreements: Off Site Storage of Records: * The broker is required to provide written notification to the Arizona Department of Real Estate (ADRE) if the broker stores _________ maintained records at an off-site location.

Answer 137

Electronically

Question 138

Brokerage Operations and Listing Agreements: Off Site Storage of Records: Case Study: Unless otherwise agreed upon by ADRE and the broker, all files must be kept in the __________ of the employing broker.

Answer 138

Office

Question 139

Brokerage Operations and Listing Agreements: Listings: * All Listings belong to the Designated Broker and are between Broker and Seller this is _________ Parties.

Answer 139

2 Parties

Question 140

Brokerage Operations and Listing Agreements: Listings: o _________: Seller or entity who owns the property being listed.

Answer 140

Principal [Client]

Question 141

Brokerage Operations and Listing Agreements: Listings: o _________: Broker Hired represent the principal in this transaction.

Answer 141

Agent

Question 142

Brokerage Operations and Listing Agreements: Listings: * The agreement is a “_________” which means that the broker has limited authority to represent the principal and is authorized to conduct a single transaction.

Answer 142

Special Agency Agreement

Question 143

Brokerage Operations and Listing Agreements: Listings: * All brokers listings must be in writing and signed by the _________.

Answer 143

Principal

Question 144

Brokerage Operations and Listing Agreements: Listings: * Listing Agreement would outline both parties' responsibilities, dates and terms. * All listings must have an _________.

Answer 144

End Date

Question 145

Brokerage Operations and Listing Agreements: Listings: True or False; Records are to only be maintained in the employing broker office in Arizona, no exceptions. True False

Answer 145

False

Question 146

Brokerage Operations and Listing Agreements: Bilateral and Unilateral Listing Contracts: * _________: One sided, only one party has to perform.

Answer 146

Unilateral Contract

Question 147

Brokerage Operations and Listing Agreements: Bilateral and Unilateral Listing Contracts: * _________: Two sided, both parties have to perform.

Answer 147

Bilateral Contract

Question 148

Brokerage Operations and Listing Agreements: Types of Listings: * There are multiple types of listings, not all are legal in every state and it all depends on _________ gets paid a commission when a buyer is found for the property.

Answer 148

Who

Question 149

Brokerage Operations and Listing Agreements: Types of Listings: * Exclusive Right to Sell (ER): o _________: The listing agent will find a buyer and principal will pay a commission to the listing agent for finding a buyer.

Answer 149

Bilateral

Question 150

Brokerage Operations and Listing Agreements: Types of Listings: * Exclusive Right to Sell (ER): o Most _________ type of listing in AZ.

Answer 150

Common

Question 151

Brokerage Operations and Listing Agreements: Types of Listings: * Exclusive Right to Sell (ER): o Principal contracts with ONLY _________ agent to list the property for sale.

Answer 151

One

Question 152

Brokerage Operations and Listing Agreements: Types of Listings: * Exclusive Right to Sell (ER): o Listing agent is _________ owed a commission no matter who finds a buyer.

Answer 152

Always

Question 153

Brokerage Operations and Listing Agreements: Types of Listings: * Exclusive Right to Sell (ER): o No matter WHO finds the buyer, the listing agent still gets his or her listing commission as was agreed upon in the contract. This makes it _________.

Answer 153

Bilateral

Question 154

Brokerage Operations and Listing Agreements: Types of Listings: * Exclusive Agency (EA): o Could be either _________ or _________. - Depends on how it is structured.

Answer 154

Unilateral or Bilateral

Question 155

Brokerage Operations and Listing Agreements: Types of Listings: * Exclusive Agency (EA): Brokerage Operations and Listing Agreements: Types of Listings: * Exclusive Agency (EA): o Brokers don’t typically use these agreements as it’s POSSIBLE they won’t get _________.

Answer 155

Paid

Question 156

Brokerage Operations and Listing Agreements: Types of Listings: * Exclusive Agency (EA): o Listing agent is owed a commission if they find a buyer or another agent brings a buyer because the property was _________ in the MLS by the listing agent.

Answer 156

Listed

Question 157

Brokerage Operations and Listing Agreements: Types of Listings: * Exclusive Agency (EA): o IF the SELLER finds his own buyer, the seller does NOT _________ commissions to anyone.

Answer 157

Owe

Question 158

Brokerage Operations and Listing Agreements: Types of Listings: * Open Listing > Unilateral: The listing agent who finds the buyer gets _________, any other agent does not get paid if they don’t find a buyer (Agents are not obligated to perform, but the seller must perform by paying the agent who does bring a buyer). o IF the seller find the buyer, the seller does NOT owe commissions to anyone.

Answer 158

Paid

Question 159

Brokerage Operations and Listing Agreements: Types of Listings: * Open Listing > Unilateral: o Principal can hire multiple agents to solicit offers from buyers, but only the agent who brings a buyer to _________ on the transaction gets paid a commission. o IF the seller find the buyer, the seller does NOT owe commissions to anyone.

Answer 159

Close

Question 160

Brokerage Operations and Listing Agreements: Types of Listings: Open Listing is considered a _________ agreement.

Answer 160

Unilateral

Question 161

Brokerage Operations and Listing Agreements: Types of Listings: Net Listing is considered a _________ agreement.

Answer 161

Bilateral

Question 162

Brokerage Operations and Listing Agreements: Types of Listings: Net Listing > Bilateral: Principal will sell _________ agent brings a buyer and then the agent gets paid.

Answer 162

When

Question 163

Brokerage Operations and Listing Agreements: Types of Listings: Net Listing > Bilateral: o This listing is illegal in most states BUT IT IS _________ in AZ.

Answer 163

Legal

Question 164

Brokerage Operations and Listing Agreements: Types of Listings: Net Listing > Bilateral: o Seller allows a listing agent to sell the property for any amount OVER what they are willing to _________. That amount is the commission to the agent.

Answer 164

Net

Question 165

Brokerage Operations and Listing Agreements: Types of Listings: Net Listing > Bilateral: o Rarely USED as it is commonly used to cheat principals out of money. This constitutes _________.

Answer 165

Fraud

Question 166

Brokerage Operations and Listing Agreements: Types of Listings: * _________: o Even though the listing is signed, it’s exclusive only if the listing is NOT put into the MLS.

Answer 166

Exclusive Listing

Question 167

Brokerage Operations and Listing Agreements: Types of Listings: o _________: This type of listing again doesn’t offer a buyer’s agent commission – it’s up to the listing agent alone to find the buyer and collect the commission.

Answer 167

No Broker Cooperation

Question 168

Brokerage Operations and Listing Agreements: Types of Listings: o No Broker Cooperation: o Duties of Seller’s Agent: Same duties owed to the seller, but it may be much HARDER to find a buyer _________ cooperating buyers agents and marketing via the MLS.

Answer 168

Without

Question 169

Brokerage Operations and Listing Agreements: Types of Listings: o No Broker Cooperation: o Compensation to Buyer’s Agent: If another broker brings a buyer, there isn’t any written agreement to compensate, so it is up to the agents to negotiate and _________ before the offer is submitted to a commission.

Answer 169

Agree

Question 170

Brokerage Operations and Listing Agreements: Types of Listings: _________: This means from start to finish, post up to post down, contract to close.

Answer 170

Full Service

Question 171

Brokerage Operations and Listing Agreements: Types of Listings: _________: - This means the seller agrees in writing to waive some of or all of the duties owed by the agent.

Answer 171

Limited Service

Question 172

Brokerage Operations and Listing Agreements: Types of Listings: *_________: - Listings that an agent will shop around to other agents via email, calls or brokers open parties.

Answer 172

Pocket Listing

Question 173

Brokerage Operations and Listing Agreements: Types of Listings: *Pocket Listing: - Not the best idea, as you are eliminating the full marketing of the MLS and could increase liability for failing to get the _________ price.

Answer 173

Highest

Question 174

Brokerage Operations and Listing Agreements: Types of Listings: *_________: New field added to the MLS where agents can list their properties to go LIVE for a future date.

Answer 174

“Coming Soon” Listing

Question 175

Brokerage Operations and Listing Agreements: Types of Listings: “Coming Soon” Listing: - Buyer’s offer on a Coming Soon Listing: Agents must present all offers to the seller just as if the property were in a _________ transaction.

Answer 175

Normal

Question 176

Types of Listings: Quiz: Which of these is NOT a form of listing? Open Listing Exclusive Agency Partial Service Pocket Listing

Answer 176

Partial Service

Question 177

Types of Listings: Case Study: After initiating an Exclusive Right to Sell (ER) listing, your client (the seller) meets a potential buyer at a restaurant and agrees to lower the home price by cutting out your commission since you had “nothing to do with” acquiring the buyer. Is this legal?

Answer 177

No it is illegal, no matter who finds the buyer, the listing agent still gets his or her listing commission as was agreed upon in the contract.

Question 178

Types of Listings: Case Study: With what type of listing would a seller be able to hire multiple agents and only pay the one who brings them the buyer? Are all agents required to perform?

Answer 178

In open listing, principal can hire multiple agents to solicit offers from but only the agent who brings a buyer to close on the transaction gets paid commission. Agents are not obligated to perform, but the seller must perform paying the agent who does bring a buyer.

Question 179

Types of Listings: Case Study: Why is a listing agreement between Principal and Broker, considered a special agency agreement?

Answer 179

"Special agency agreement" means that the broker has limited authority to represent the principal and is authorized to conduct a single transaction. All broker's listings must be in writing and signed by the principal. Listing would outline both party's responsibilities, dates, and terms.

Question 180

Types of Listings: Case Study: What is the difference between a Unilateral Contract and a Bilateral Contract?

Answer 180

A unilateral contract is one-sided; only one party has to perform, while the bilateral agreement is two-sided, and both parties have to perform.

Question 181

Types of Listings: Quiz: Which of the following is a Bilateral contract that would be used in real estate listings to ensure that the broker who lists the property gets paid no matter who finds the buyer: Exclusive Right Listing Agreement Open Listing Agreement Net Listing Agreement Exclusive Agency Listing Agreement

Answer 181

Exclusive Right Listing Agreement

Question 182

Types of Listings: Quiz: Brokers must initial and date all closed files and all files must be stored for a period of: 12 months 30 months 36 months 60 months

Answer 182

60 months

Question 183

Types of Listings: Quiz: Which of the following does a designated broker not have to review within 5 days from execution: Contracts Offers that were not accepted Leases None of these

Answer 183

None of these

Question 184

Brokerage Operations and Listing Agreements: AAR Supplied And Approved Forms For Arizona Realtors® _________: o These are to be used solely and exclusively by members of the Arizona Association of Realtors®

Answer 184

AAR Arizona Listing Contracts

Question 185

Brokerage Operations and Listing Agreements: Earnest Monies And Receipts: * _________: Money used to confirm acceptance of a contract.

Answer 185

Earnest Money Deposit

Question 186

Brokerage Operations and Listing Agreements: Earnest Monies And Receipts: * Earnest Money Deposit: o Sometimes referred to as Good Faith Money. o Money used as _________ damages if one party breaches the contract.

Answer 186

Liquidated

Question 187

Brokerage Operations and Listing Agreements: Earnest Monies And Receipts: * Earnest Money Deposit: o You as an agent would be wise to not accept the Earnest Money, but instead, have the buyer deliver the money to escrow or have the escrow send a _________ to pick it up.

Answer 187

Courier

Question 188

Brokerage Operations and Listing Agreements: Earnest Monies And Receipts: * Earnest Money Deposit: * Broker or Agent to place “Earnest Money” with either _________ or Escrow Company. * UNLESS otherwise agreed to in writing by ALL parties to a transaction.

Answer 188

Brokers Trust Account

Question 189

Brokerage Operations and Listing Agreements: Earnest Monies And Receipts: * Earnest Money Deposit: * A _________ MUST be sent to all parties once deposit is made and recorded as part of contract.

Answer 189

Receipt of Earnest Money

Question 190

Brokerage Operations and Listing Agreements: Conversions And Commingling: * _________ or _________ of clients funds is ILLEGAL in Arizona.

Answer 190

Conversion or Commingling

Question 191

Brokerage Operations and Listing Agreements: Conversions And Commingling: * This is one of the most often _________ for brokerage investigations and violations with the Arizona Department of Real Estate (ADRE).

Answer 191

Reasons

Question 192

Brokerage Operations and Listing Agreements: Commingling: *It is LEGAL for a Broker to use up to $_________ of their OWN MONEY to fund the general operating account as long as it is recorded and managed as such.

Answer 192

$3000

Question 193

Brokerage Operations and Listing Agreements: Commingling: *It is LEGAL for a Broker to use up to $3000 of their OWN MONEY to fund the _________ as long as it is recorded and managed as such.

Answer 193

General Operating Account

Question 194

Brokerage Operations and Listing Agreements: Commingling: o _________: Mixing a client’s funds with your own personal funds, which makes it difficult to determine WHICH funds belong to who.

Answer 194

Commingling

Question 195

Brokerage Operations and Listing Agreements: Commingling:  In commingling, the licensee mixes or COMBINES his/her client’s money with his/her own but does not change the intended purpose of the funds. This is considered _________.

Answer 195

Fraud

Question 196

Brokerage Operations and Listing Agreements: Conversions And Commingling: o _________: Taking the client’s money and depositing those funds directly into one’s own accounts and using that money for their OWN purposes.

Answer 196

Conversion

Question 197

Brokerage Operations and Listing Agreements: Conversions And Commingling: o Conversion:  In conversion, the licensee DIVERTS the client’s money to the licensee’s own use thereby changing the intended use of the money. This is considered _________.

Answer 197

Embezzlement

Question 198

Conversions And Commingling: Quiz: True or False; The conversion or commingling of a clients funds is legal in the state of Arizona. True False

Answer 198

False

Question 199

Brokerage Operations and Listing Agreements: Conversions And Commingling: Case Study: What is earnest money used for?

Answer 199

Earnest Money is used to confirm acceptance of a contract. Sometimes, it is referred to as Good Faith Money. Earnest Money is used as liquidated damages if one party breaches the contract.

Question 200

Brokerage Operations and Listing Agreements: Conversions And Commingling: Case Study: What are the only two types of accounts that earnest money may be placed into?

Answer 200

Broker or Agent to place earnest money with either Brokers Trust Account or Escrow Company.

Question 201

Brokerage Operations and Listing Agreements: Conversions And Commingling: Case Study: What is the difference between conversion and commingling?

Answer 201

Commingling is mixing a client’s funds with your funds, which makes it challenging to determine which funds belong to whom. However, conversion is taking the client’s money, depositing those funds directly into one’s accounts, and using that money for their purposes.

Question 202

Brokerage Operations and Listing Agreements: Conversions And Commingling: Case Study: Are either one of these legal in Arizona?

Answer 202

No, Conversion or Commingling of clients' funds is illegal in Arizona.

Question 203

Brokerage Operations and Listing Agreements: Conversions And Commingling: Quiz: All of the following are required to be part of the brokers review except which one? All contracts were signed and dated The sellers capacity to buy/sell The listing date and end date The seller has agreed in writing to allow a sign to be placed on the property

Answer 203

The sellers capacity to buy/sell

Question 204

Brokerage Operations and Listing Agreements: Conversions And Commingling: Quiz: A real estate broker was found guilty of receiving money illegally as part of a real estate deal. Which of the following could be a reason that real estate broker was found guilty? The agent received a referral from another broker The agent received money from a broker other than his/her own The agent received money from the home warranty company that was on the settlement statement All of these are illegal

Answer 204

The agent received money from a broker other than his/her own

Question 205

Brokerage Operations and Listing Agreements: Conversions And Commingling: Quiz: The designated broker hires three new agents in one month. The designated broker has a commission sharing plan of 80/20 for the first 2 commissions in a month and then a 90/10 split for all remaining commissions in that same month. If 3 agents had 3 transactions that averaged $6800 per transaction what would the designated broker receive that month: $4080 $2040 $6800 $10,200

Answer 205

$10,200

Question 206

Brokerage Operations and Listing Agreements: Conversions And Commingling: Quiz: The listing that a seller would most likely want to have where they specify the terms of how much they walk away with after selling and paying commissions would be what? Exclusive Right Exclusive Agency Net Listing Open Listing

Answer 206

Net Listing

Question 207

Brokerage Operations and Listing Agreements: Conversions And Commingling: Quiz: The newly licensed agent from Sunshine Realty has a client who wants to make an offer to purchase a property after a week of showings. Agent Sally would most likely use forms from what source: State Licensing authority Her Broker The National Association of Realtors States Real Estate Association

Answer 207

States Real Estate Association

Question 208

Brokerage Operations and Listing Agreements: Conversions And Commingling: Quiz: The earnest money in a transaction would be awarded to the party who did not breach the contract but suffered from the other parties actions or non-actions. What type of damages did the party recover: Punitive Liquid Asset Consent

Answer 208

Liquid

Question 209

Brokerage Operations and Listing Agreements: Conversions And Commingling: Quiz: Broker Stan is the Designated Broker for Stealin Stans Realty. He instructs all of his agents to place clients Earnest Monies into the companies’ trust fund to be held during the escrow period. Stan also uses that same trust fund to pay the commissions and operating expenses for the brokerage. This is: Conversion Commingling Mixing Fraud

Answer 209

Conversion

Question 210

Brokerage Operations and Listing Agreements: Conversions And Commingling: Quiz: Pocket Listings are: A way to keep more commission Blind Ads Exclusive to the listing Firm only Not placing the listing in the MLS

Answer 210

Not placing the listing in the MLS

Question 211

Agent Commissions Math: Commissions: It’s the one word that all agents know and the one type of math that everyone will be sure to recall how to do! Nearly all commissions will use the T. Here are the most common examples of commission math you will see on the tests.

Question 212

Agent Commissions Math: Thunder Dan the Man has sold his first property! He has a 80/20 commission split with his mentor and an office fee of $195. The sales price of the home was $420,000 and the agreed upon commission was 3%. What did Thunder Dan the Man receive?

Answer 212

* $420,000 x .03 (3%) = $12,600 * $12,600 - $195 (office fee) = $12,405 (gross commission) * $12,405 x .80 (80%) = $9,924 ANSWER: Thunder Dan received $9,924

Question 213

Agent Commissions Math: Randy Traps just received a check for $11,380 and since he is his own broker, he keeps 100% of that commission. The property sold for $405,200. What was the commission rate?

Answer 213

* $11,380 ÷ $405,200 = .028 o 2.8% was the commission rate

Question 214

Agent Commissions Math: Thompson Peaks Realty has an agreed upon split of 75/25 for the first $30,000 in commissions and 80/20 from $30,000 to $50,000 in commissions and then a 90/10 split for anything over $50,000. In her 1st year, agent Samantha Jones earned sold $3,180,000 worth of real estate. What did she take home assuming that the commission was 3% on all transactions?

Answer 214

* $3,180,000 x .03 = $95,400 * 75% x $30,000 = $22,500 (Tier 1 $30,000 at a 75/25 split) * 80% x $20,000 = $16,000 (Tier 2 from $30,000 to $50,000 at 80/20 split) * 90% x $45,400 = $40,860 (Tier 3 from $50,000 and up at 90/10 split) * $22,500 + $16,000 + $40,860 = $79,360 o Use the T and don’t forget to look at how they tier their commissions!  Samantha Jones earned $79,360

Question 215

Agent Commissions Math: Jefferson Davis sold a section of land in Lake Havasu City. The total commission was $27,500 and the agreed commission was 5%. What was the sales price?

Answer 215

* $27,500 ÷ .05 (5%) = $550,000 o Work the problem backwards o $550,000 x .05 = $27,500  The sales price was $550,000

Question 216

Agent Commissions Math: Brokers Only Nevada has 20 agents who in all earned an average of $91,200 last year. Each agent has an 80/20 split. What was the average total commission for each agent before the splits?

Answer 216

* $91,200 = .80 x (?) * $91,200 ÷ .80 = $114,000 o The average total commission was $114,000

Question 217

Agent Commissions Math: BuildersAZ has a sales staff that agreed to earn 2% commission on the first $500,000 in real estate sold, 4% on anything over $500,000. If agent Brian sold $612,000 that month what would he have earned?

Answer 217

* $500,000 x .02 = $10,000 * $612,000 - $500,000 = $112,000 o $112,000 x .04 = $4480  $10,000 + $4,480 = $14,480 * Brian would have earned $14,480

Question 218

Brian has an opportunity to go work for BuildersNV. They offer a flat 3% commission on all transactions. How much more or less would Brian make if he goes to work at BuildersNV?

Answer 218

* $612,000 x .03 = $18,360 * $18,360 - $14,480 = $3,880 o $3,880 MORE if goes to work w/ BuildersNV

Question 219

On a recent flip, an investor offered a 6% total commission in an Exclusive Agency listing. He ended up selling the house to a friend that he knew from work. The sales price was $235,000. How much did he end up paying in commissions and to who?

Answer 219

* We must remember that an EA (exclusive agency) if the seller procures their own buyer, then no commission is paid! o The answer is $0.00 commission