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
What are the real estate organizations in Arizona
National Association of realtors NAR, Arizona Association of realtors they will provide contract forms and zip forms, regional associations such as Yuma Association of realtors
What is the purpose of the Arizona Department of real estate
To protect the public
What is the purpose of the professional organizations
To represent the licensee
Individuals who discuss price, terms or availability of a property must be licensed.
Yes
What are the three sections to the code of ethics
Duties to clients and customers, duties to the public condom, duties to realtors
When agents join NAR they agree to comply with
Code of ethics
What are the physical characteristics of real estate
Immobility geographic location of any parcel can never be changed, indestructibility land is indestructible, nonhomogeneity no two parcels are exactly the same or in the same location
What are economic characteristics of real estate
Scarcity supply in given location is considered finite, improvements changes in parcels of land affect its value, fixity return on investment tends to be long-term and relatively stable, situs peoples
Supply in a given location is considered finite is called
Scarcity
Changes made in a parcel of land that affects its value
Improvements
Return on investment tends to be long term and relatively stable
Permanence of investment also called fixity
Peoples preference for certain areas also called location location location
Called situs
As the owner of real property the owner has a property rights known as
Bundle of rights
Title as it relates to real property has two meanings they are
Number one the right to ownership of the land including the owners bundle of legal rights and number two title refers to ownership of real property the document by which the owner transfers the property is a deed
Title refers to ownership of real property the document by which the owner transfers real
A deed
What are the five parts of the bundle of legal rights
1control, zoning, 2 possession the right to have and hold, 3 quiet enjoyment no one has superior rights, 4 disposition the right to sell, 5exclusion the right to keep others from using the property
The term bundle of rights dates back to middle evil ages a LAN owned or would transfer ownership of property giving the purchaser a bundle of sticks and a handful of dirt from the land
Bundle of rights
Surface of Earth below to the center of the earth above to infinity and natural things permanently attached
Land
Land plus artificial things attached
Real estate
Real estate plus legal interests rights and privileges associated with ownership includes bundle of rights
Real property
No this appertinence
Is right or privilege associated with the property but not necessarily a part of it example an easement
Any type of land development including buildings and streets fences and sewers
Improvements
Rights in the space above the surface of the
Air rights
Rights to the ground below the surface of the earth includes mineral
Subsurface
Property can be classified into ways
Personal property or real property
Real estate that is owned
Real property
Personal property is also referred to as
CH ATT EL
In real estate transactions all personal property stays with the seller personal property is conveyed or transferred by a
Bill of sale
There are two classifications of personal property
Tangible which are physical things that can be seen and touched such as a car or money, in tangible or cannot be seen or touched such as copyright or trademark
What is it called when you change from personal property to real property or from real property to personal property you change the status it is called
Conversion
Conversion of real property to personal property is by
Severance
Conversion of personal property to real property is by
Attachment or annexation
There are two classifications of plants and crops they are
Naturally growing plants called fructose naturaless they are classified as real property, cultivated crops are classified as personal property and are called Emblemaments fructose industrials
What is a fixture
A fixture is an article or item that once was personal property but has been attached to land or a structure so it is now real property
What are the tests of a fixture
Agreement what did the parties agree on, intention did the person who installed the item intend it to remain permanently or to be removed, attachment how permanent is the method, adaptation is the item custom-built for the property, cost not a factor
Trade fixtures are considered personal property also called chattel fixtures. Trade fixtures are used in the operation of a business
It must be removed on or before the last day of the property is rented trade fixtures not removed become the real property of the new landlord acquiring property is in this way is known as a session
