AZ Real Estate - Real Estate Brokerage: Law Of Agency & Pub Protection B2 Flashcards
How is fund supported?
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.
RE Dept Recovery Fund created to?
Indemnify persons suffering loss as a result of misrepresentation or fraud of real estate agents.
Who is eligible to make claims on recovery fund?
Those who have obtained civil judgements against brokers or salespersons but have not been able to collect in whole or in part.
Procedure to file claim is:
- File an intent to claim
- File lawsuit against licensees
- Win judgement
- Exhaust all legal avenues of collection
- Get a court order directing AZRE to pay
Max amt claimant can get from Recovery Fund is?
$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.
When RE Recovery Fund payment made on behalf of licensee, what is status of agent’s license?
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.
Who is principal or client?
Person who hires agent. Usually seller.
Who is customer aka 3rd party?
Person you work with and not for. Usually buyer. Unrepresented principal ie you represent seller buyer is w/o agent.
What are 3rd parties entitled to?
Truthful info
If license terminated when can you reapply for license?
After 5 yrs assuming you paid fund back plus interest
Salesperson is what type of agent?
A sub agent
Special agent means
One purchase or sale
Agent authorized to perform a variety of transactions is the
General Agent
An agent in the employ of another agent or cooperating broker all representing Seller are
Subagents
When broker represents both buyer and seller in same transaction she is a
Dual agent
An agent who does everything on behalf of a client is a?
Universal agent aka power of attorney
How does seller become client?
Listing agreement
When all outward appearances imply agency because of conduct and acts it is what kind of agency?
Ostensible
Agency of necessity can be created by emergency for example…
Agent discovers gushing water in a property.
Fiduciary relationship of agent to principal are…
Loyalty Confidentiality Accountability Obedience Disclosure
Principals duty to customers
Fair, honest and truthful
Sellers Property Disclosure does what?
Helps seller to disclose. Not required by law.
Listing agreement is a
Authorization to Sell
An Agreement to Sell is a
Purchase Comtract
Listing agreements and purchase contracts are
Non- assignable
Open Listing is
- A unilateral agreement
- Multiple agents working for seller
- Offers least protection to broker
- Used in commercial
- Procuring cause broker gets few
- Owner makes sale he pays no fee
- Not permitted in MLS because broker w/ open listing does not offer cooperation w/ other brokers