License Laws Flashcards
When does the real estate dept act on public complaints?
Only when it’s regarding a violation of law
Must investigate written complaints
Real estate dept works under?
The real estate commissioner
Who makes up the members of the real estate advisory board?
4 brokers (2 in residential)
2 subdividers/builders
3 public members
Each member serves for 6 years
3 requirements to be a part of the real estate dept?
- Can’t hold an active real estate license
- Can’t own or be associated with a real estate comp
- Can’t be married to anyone in the above 2 categories
3 types of real estate licenses?
- Employing brokers
- Brokers license for individuals
- Sales persons
Commissioners public report?
Real estate dept permission to sell subdivided and un subdivided land
Info collected by real este dept and to be provided to buyer prior to purchase
Subdivided land?
6 or more lots of land any of which is less then 36 acres
Legal advisor of commissioner?
The attorney general
What is the Recovery fund?
A fund of money paid into by new and renewing real estate licensees to compensate the public if financially damages by an az real estate licensee
When does recovery fund have to be audited?
Has to be audited or balanced every June 30th
Minimum balance in the recovery fund?
Minimum balance is 600 thousand
Requirements to get money out of the recovery fund?
The complainant must sue the licensee and win a judgement
Complainant must make a good faith attempt to collect the money
Judgement holder goes to real estate dept in order to subrogate the judgement and get a check
Az licensees cannot get any money from it
Recovery fund payout limit?
No more then 30 thousand per transaction
No more then 90 thousand per licensee
Fund will not pay?
Lost profits or unrealized losses
Property is not located in az
Statute of limitations for recovery fund?
5 years from the cause of the action
The status of license if fund pays?
It will be terminated however a licensee may reapply for a license as long as he pays back the fund plus 10% interest and he satisfies judgement
What is a trust account?
A checkings acct operated by the broker that can only hold the publics money
Broker can keep up to $500 of his own money in it
Duties of designated broker?
- The only person that can hire other licensees
- Only one that can take in and payout commissions
- Only one that can be hired by the public
- Only one that can operate a trust acct
How you can lose your license?
- Misrepresentation
- False promises
- Acted for more then 1 party without disclosure
- Violations of ARS (Az revised statutes)
- Employed an unlicensed sales person
- Received commission from someone other then your broker
- Failure to remit earnest money
- Made an appraisal on your own property without disclosure
- Induced a party to break a contract
- Paid or received any compensation or rebate without disclosure
- Placing a sign on property without written permission
- Failed to maintain a complete record of each transaction
- Violated fair housing laws
- Tendered a false termite report
- Designated broker failed to properly supervise licensees
- Commingling (mixing public money with personal money)
- Conversion of funds (using the publics money for personal or company gain)
What is lot reservation?
An expression of interest in buying a new home
Basically a notice to the real estate dept
Maximum deposit for lot reservation?
5 thousand dollars fully refundable
How much time does the buyer have to rescind lot reservation?
7 days after receiving commissioners public report
Also after 3 years if they didn’t receive a public report before purchase
What’s needed for commissioners public report permission for subdivided land?
- See the marketing plan
- Want to see plat map
- Want to make sure each lot has permanent access
- All promised improvements or infrastructure must be done on time
What is unsubdivided land?
6 or more lots any if which is between 36 and 160 acres
When is a commissioners public report required on a timeshare?
The commissioners public report is required if selling 12 or more units of time
