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AZ Real Estate Sales Licensing Exam Prep > AZ Real Estate - Real Estate Brokerage: Law Of Agency & Pub Protection B2 > Flashcards

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

0
Q

How is fund supported?

A

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.

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1
Q

RE Dept Recovery Fund created to?

A

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

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2
Q

Who is eligible to make claims on recovery fund?

A

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

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3
Q

Procedure to file claim is:

A
  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
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4
Q

Max amt claimant can get from Recovery Fund is?

A

$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.

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5
Q

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

A

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.

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6
Q

Who is principal or client?

A

Person who hires agent. Usually seller.

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7
Q

Who is customer aka 3rd party?

A

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

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8
Q

What are 3rd parties entitled to?

A

Truthful info

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9
Q

If license terminated when can you reapply for license?

A

After 5 yrs assuming you paid fund back plus interest

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10
Q

Salesperson is what type of agent?

A

A sub agent

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11
Q

Special agent means

A

One purchase or sale

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12
Q

Agent authorized to perform a variety of transactions is the

A

General Agent

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13
Q

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

A

Subagents

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14
Q

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

A

Dual agent

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15
Q

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

A

Universal agent aka power of attorney

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16
Q

How does seller become client?

A

Listing agreement

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17
Q

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

A

Ostensible

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18
Q

Agency of necessity can be created by emergency for example…

A

Agent discovers gushing water in a property.

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19
Q

Fiduciary relationship of agent to principal are…

A 
Loyalty
Confidentiality
Accountability
Obedience
Disclosure
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20
Q

Principals duty to customers

A

Fair, honest and truthful

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21
Q

Sellers Property Disclosure does what?

A

Helps seller to disclose. Not required by law.

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22
Q

Listing agreement is a

A

Authorization to Sell

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23
Q

An Agreement to Sell is a

A

Purchase Comtract

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24
Q

Listing agreements and purchase contracts are

A

Non- assignable

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25
Q

Open Listing is

A
  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
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26
Q

Exclusive Agency Listing

A

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

27
Q

Exclusive right to sell

A

Only one broker auth to sell property.

Owner pays fee regardless of who gets buyer.

28
Q

Net listing

A

Seller gets net amt excess proceeds go to broker.

29
Q

Proof needed to collect in court…

A

A RE license
Compensation agreement
Procuring cause

30
Q

Commissions earned when?

A
  1. At moment contract signed (meeting of minds)

2. Paid at close of escrow unless diff time agreed to

31
Q

90 day clause protects who?

A

Broker.

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

32
Q

Bilateral agency can be terminated by

A

Acts of parties
Mutual Agreement
Completion of purpose (sale)

33
Q

Agency can be terminated unilaterally by…

A

Revocation - seller fires agent w/ cause

Renunciation - agent fires seller

34
Q

Agency can also be ended by..,

A

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

35
Q

How does death impact listing agreement?

A

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

36
Q

AZ Revised Statute says listings must be

A
  1. In writing
  2. Say terms and include compensation
  3. Have beg and end date
  4. Signed by seller, broker or salesperson
37
Q

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

A

2

38
Q

Valid listing on community must be given by

A

Husband OR wife

39
Q

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

A

Legal description of property

40
Q

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

A

General agent

Property manager is also a general agent.

Person auth to perform variety of transactions for for principal, mostly on continuing basis.

41
Q

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

A

A legal description.

42
Q

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

A

Buyer’s Broker

43
Q

Agent owes customer…

A

Honesty

44
Q

Recovery fund claimant do not need to be….

A

Residents of AZ

45
Q

Broker earns cousin when..,.

A

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

46
Q

In agency relationship confidentiality is a part of what duty?

A

Loyalty

47
Q

What may NOT be in a valid listing contract?

A

Automatic renewal clause

48
Q

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

A

5

49
Q

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

A

General Agent

50
Q

Broker’s duty to a third party is

A

Full disclosure of material facts

51
Q

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

A

General agent

52
Q

When does a salesperson have a listing?

A

When listing is signed

53
Q

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

A

Has breached fiduciary and abandoned listing

54
Q

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

A

Commission rate

55
Q

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

A

Valid license

56
Q

Who does a salesperson represent?

A

Employing broker

57
Q

Broker relationship to seller is most likely..

A

Special

58
Q

When salesperson works for brokerage co salesperson is

A

Agent of Corporation and corporation is agent of seller

59
Q

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

A

Fiduciary

60
Q

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

A

Re-writ and negotiate all listings

61
Q

Exclusive right to sell is what type of contract?

A

Executory bilateral

62
Q

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

A

Unenforceable

63
Q

Broker principal relationship is

A

Fiduciary

64
Q

What is not required to be in listing k?

A

Construction cost

65
Q

In agency relationship confidentiality is a part of what duty?

A

Loyalty

66
Q

To ensure broker gets paid commission on open listing broker must

A

Have a signed listing contract

AZ Real Estate Sales Licensing Exam Prep (6 decks)

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