Chapter 1 - Careers Flashcards
What is the purpose of licensing laws in AZ?
To prevent fraud and dishonest acts.
AZ licensure requirements:
18 years old to take the class. Do not have to be resident of AZ or citizen. Take 90 hours of classroom instruction in classroom setting. 18 class periods.
State exam:
National Section 85 questions
State Law Section 100 questions
75% or higher
Pass state exam. 1 year to activate your license.
Remember This:once the licensee has activated their real estate license it is good for?
2 years. In that 2 years must get 24 hours of continuing Ed credits. You get 6 hours in contract writing 3 hours are credited for contract law, 3 hours for legal issues.
If continuing Ed requirements are not met the license will expire on:
The last day of the month the license was activated 2 years later.
Ex- activate lic on Oct 3rd, 2014 ….. Expire on October 31. 2016 if don’t complete CE.
If don’t complete CE credits:
You enter the grace period. For 1 year. No real estate activity until CE is done.
What happens in grace period?
Complete renewal courses, pay fee with penalty to become active
How does Termination work?
Lic activated October 4, 2014
Lic expire oct 31, 2016
Grace period nov 1, 2016
Terminate October 31, 2017
What happens if an employing broker lic expires?
Licensee employed by broker severed on brokers expiration date. May be rehired upon renewal of broker lic.
90 hours of classroom education is good for how many years.
10
In order to sell realestate an individual must have their lic activate under:
Designated Broker
Commission
No set commission rates
Sherman Anti trust
To stop price fixing.
Remember This: commissions are
Negotiable
Examples of Sherman anti trust act
Price fixing- stops open market
Customer or market allocations.The act brokerages agreeing to work with a certain type of customer or in a certain area as not to compete with one another. It’s like saying you have this area I have this area it creates a monopoly
The real estate entity is
Considered the employing brokerage
A broker is
Individual licensed to buy sell or lease property for others and to charge a fee or commission for this service
What must you do to become a real estate broker
In order to be a real estate broker one must be active in real estate for 3 to 5 years three years does not have to be in Arizona exclusively agents can apply experience mother states they must take a nine hour class
The Arizona Department of real estate is established to
Protect the public
What are the three types of brokers
The designated broker is in charge , the managing broker assists designated broker , associate broker is supervised by the designated broker
Once licensed a salespersons is required to activate or hang your license number where
With a licensed designated broker
What are the two types of commission structures in the residential real sale office
Traditional split or commission sharing, and 100% commission. in the 100% commission , monthly fee is paid to The Broker
New home sales
Many builders require the real estate sales person to serve on site for the new home community
What are other areas of specialization in real estate
Commercial where you can deal in both sales and leasing. Timeshares for an ownership interest that provides limited use of the property for a fixed amount of time. Property management where a person is paid by a property owner to oversee the property or many properties and screen to manage tenants. Business brokerage actual business or inventory or other buildings. Referrals where you get a referral fee from the transaction
