Chapter 10 Flashcards
what is the primary responsibility of legislature
passing laws
anything referencing statutory law or statues refers to laws adopted by the legislative body
where is real estate law found
title 32 chapter 20
what is the judicial branch
the court falls under this.
responsible for enforcing laws
what are case laws
rules of law developed by judges in court decisions
aka common law
what are administrative agencies a part of
the executive branch of gov.
ie HUD, EPA, etc.
administrative entities have broad powers and they
have the power to issue rules and regs that carry the force of law.
what are the real estate rules enacted by administrative entities
published in the Arizona Administrative Code (AAC)
where are the real estate commission rules found
title 4 chapter 28
The AZ Statue’s of Frauds requires
all real estate contracts be in writing to be enforceable
who created ADRE, what does it stand for and why was it created
Arizona Dept. of Real Estate created by State Legislature to “protect the public interest through Licensure and Regulation of the real estate profession in AZ”
who appoints the real estate commissioner and who cross checks the commissioner
government appoints both the commissioner and the advisory board.
advisory board cross checks commissioner
what degree are substantive policy statements
advisory only.
“good practice”
what can the real estate commissioner do to a licensee
issue and suspend/revoke
may investigate licensee
may administer the Recovery Fund
formulate rules
disseminate educational info
hire and fire real estate dept. employees
what happens when there is a complain filed against a licensee
Commissioner initiates investigation and issues Notice of Investigation
licensee has 14 calendar days to respond to allegations
notice also gets sent to designated broker
The ADRE does not have the authority to investigate
landlord/tenant disputes
construction defects
home inspections
ethics violation (complaints are filed with Arizona Association of Realtors)
title insurance issues
escrow money issues
commission disputes between licensees
who needs to be licensed
anyone who performs - or offers to perform - real estate brokerage related acts for compensation or the expectation of compensation
are license applicants required to live in AZ
no
a real estate broker/salesperson may engage in _________ or ________ activities without being seperately licensed to engage
cemetery or membership camping sales
a real estate licensee may have only one employing broker for
cemetery
membership camping
real estate
what are the exemptions from real estate licensing law where people may legally conduct real estate activities without having a real estate license
- person buying/selling own property (For sale by owner)
- attorney performing duties a an attorney
- trustee selling under a deed of trust
a guardian, executor, admin, receiver or any other person carrying out a court order
attorney - in -fact
auctioneer, unless auctioning real property
property manager if managing or leasing only one property at a time with some restrictions.
what is an unlicensed real estate assistant
cannot discuss price, terms, or availability of real property
if they sell, must be licensed
if licensee doesn’t complete renewal requirements and passes the 1 year grace period
license is terminated
what are the 3 types of brokers
designated - in charge for all real estate operations. one designated per firm
delegated associate broker - appointed to support and assist designated broker. can review contracts and maintain transaction files
associate broker completed req. for broker’s license but does not have broker responsibilities
what is subdivided land
one parcel of land divided into 6 or more parcels
zoning falls under ____ power
police
what is a plat
detailed survey map of the subdivision that shows geographic boundaries of individual lots and blocks
what is the legal description for land within a subdivision
identified by the lot and block method
what is bulk land
parcels of land that are 160 acres or larger
what is unsubdivided land
land that is divided into 6 or more parcels each being 36 or more but less than 160 acres
what is subdivided land
land that is divided into 6 or more parcels, each parcel being less than 36 acres
what is a lot split
land that is divided into 5 or fewer parcels
what is an improved lot
a parcel that a structure has been built
What is a subdivision disclosure report
aka public report or commissioner’s public report
developers must submit to the real estate comissioner in order to get project approved
how long is a validated public report good for
5 years
what do developers need when generating a public report
- plat map
- legal history (questionaire about developer’s legal history)
- title report
- evidence of permanent access (aka ingress and egress)
- evidence of ability to deliver transferable title
- wastewater disposal plan
- if located in AMA, need Certificate of Assured Water Supply (guarantee water for 100 years) if located in Open Area, only a source of Adequate Water is required
what info must be disclosed in the public report
- physical features
- names of owners/developers
- liens and encumbrances
- completion status of subdivision improvements (utilities, water, etc)
- costs to be borne by buyers
- sellers marketing strategy and plans for conducting sales
if it is a lot split, is a public report required
no, just need an Affidavit of Disclosure (mini public report)
when is an Affidavit of disclosure needed
the property is an unincorporated area
five or fewer parcels are involved
must be recorded with the deed
how long does buyer have right to rescind in a lot split
5 days
what subdivisions require a public report
subdivided and unsubdivided land
bulk land is exempt from the public report requirement
what is the recission period for an improved subdivided property
NO right of receission
recission period for an unimproved subdivided/unsubdivided property sight unseen
6 months to rescind
recission period for an unimproved subdivided/unsubdivided property sight seen
7 days
how soon must the developer send the public report to the holder of the lot reservation
within 15 calendar days
allows buyer 7 business days to review contract and sign, if not, terminates and deposit is refunded
what happens if no public report is received
voidable for 3 years
how long must developers keep copies of signed public report receipts
5 years
