AZ1: Arizona Real Estate Code

Question 1

Article XXVI of Arizona Constitution

Answer 1

Gives licensees the authority to prepare all types of real estate contracts, but only

1. When preparation is incidental to their function as agent
2. Agent does not charge for preparation.

Question 2

Commissioners Rules

Answer 2

Not law but have the forces and effect of law on licensees.

Question 3

Real Estate Commissioner

Answer 3

A. Appointed by the Governor
B. Qualifications
a. 3 years administrative experience
b. 5 years’ experience in real estate or a related field
C. Cannot hold an active real estate license once appointed.
D. Duties (PAMI)
a. Promulgate Commissioners Rules
b. Audit books/records of licensees
c. Manage daily ops of ADRE
d. Investigate complaints against licensees

Question 4

Real Estate Advisory Board

Answer 4

A. Ten Members

    a. Two Real Estate Brokers
    b. Two Subdividers
    c. Three persons engaged in residential real estate for the last 5 years, one must be involved in multifamily residential property management.
   d. Three Public Members.

Question 5

Real Estate Broker

Answer 5

Someone who, for another and for compensation, performs real estate services.
A. Qualifications
a. 3 years’ experience in last 5 years as licensee
b. 90-hour broker pre-licensing course with last 10 years
c. Pass both course and state examination
B. Must have a definite place of business
C. Notify commissioner of any change in business location
D. Must have sign at the entrance to the brokers business location
E. May have branch offices; branch license is required. May be managed by:
a. Licensed broker
b. Salesperson
F. Brokers license must be displayed in the office

Question 6

Real Estate Salesperson

Answer 6

A person engaged to represent a real estate broker
A. Qualifications
a. 18-years old
b. 90-hour licensing course with last 10 years
c. pass both course and state examination.
B. Must be hired to a broker to actively work as salesperson
C. Salesperson license
a. Held by employing broker
b. Available for public review, online or hard copy
D. Always represents the employing broker
E. When a salesperson leaves an employing broker the license is returned to the Real Estate Department

Question 7

Attorney in Fact

Answer 7

A person authorized to represent another through a power of attorney.
Holding a specific power of attorney acting in an isolated transaction.

Question 8

Real Estate recovery fund

Answer 8

Established to protect parties harmed due to reliance on a licensee where the licensee either:

a. Performed acts that required a license.
b. Committed fraud or misrepresentation while acting as a principal in the purchase or sale of real property.

Question 9

Statute of Frauds

Answer 9

Requires certain contracts to be written to be enforceable and to be signed by the parties or their authorized agents.
Contracts MUST be in writing:
A. Employment agreement
B. An agreement for transfer or sale of real property or an interest therein
a. Deeds
b. Purchase contracts
c. Mortgages
d. Trust deeds and options
C. A lease for more than a year
D. Any agreement which is not to be performed within one year.

Question 10

Cease and Desist Order

Answer 10

Issued by Commissioner to someone found violating any “act, practice or transaction” required by statute or Commissioner Rules.