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A Real Estate Agent Concepts > Section 1: Arizona Statutes and Rules > Flashcards

Section 1: Arizona Statutes and Rules Flashcards

1
Q

Arizona Brief History:
* Arizona, the Grand Canyon state, achieved statehood on February 14, ______ , the last of the 48 contiguous United States to be admitted to the union.
* The State’s Constitution has 30 Articles in total.

A

1912

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2
Q

Arizona Brief History:
* All Arizona specific real estate statutes are found in Title ___, Chapter ___.
* Article ____ deals with the Department of Real Estate.

A

Title 32 Chapter 20

Article 26

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3
Q

Sources of Arizona Real Estate Law:
* The Arizona State Constitution:
www.azleg.gov/Constitution.asp

  • The ______ is the name given to the statutory laws in the state of Arizona:
    www.azleg.state.az.us/ArizonaRevisedStatutes.asp
  • The _______ is where the official rules of the state of Arizona are published.
  • State agencies, boards and commissions (including ADRE), are given rulemaking
    authority from the state LEGISLATURE:
    www.azsos.gov/public_services/table_of_contents.htm)
  • IMPORTANT: A digital copy of the Arizona Real Estate Law Book can be found ONLINE:
    AZ Department of Real Estate.
    website:www.re.state.az.us/lawbook/Documents/LawBook_Revised.pdf
A

Arizona Revised Statutes A.R.S.

Arizona Administrative Code A.A.C.

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4
Q

This is One of the TWO Main Sources Of Arizona “Real Estate” Law:
* ____________ Laws = Part of English law that is derived from custom and judicial precedent rather than statutes.
o This is law developed by judges through decisions of courts and similar tribunals that decide individual cases. Also known as _______ Law.
* Example of common law in Arizona real estate, it is “COMMON” for the buyer to CHOOSE which title company to use, but it is still _______.

A

Common Laws

Case Law

Negotiable

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5
Q

This is One of the TWO Main Sources Of Arizona “Real Estate” Law:
* ____ Laws = Written laws adopted by a legislative body.
* IMPORTANT: These are laws that are divided into Federal, State and then Local Laws.
* Federal Laws are passed by ______ (Think Fair Housing Laws, Etc.)

A

Statute

Congress

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6
Q

The TWO Main Sources Of Arizona “Real Estate” Law:
IMPORTANT:
ARIZONA recognizes all _______ laws as being the SAME as a statutory law, UNLESS there is a ________ law that is recorded to state otherwise.

A

Common

Statutory

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7
Q

Arizona “Real Estate” Law:
* A.R.S. = ____________________

IMPORTANT: These statutes are adopted through the legislative process or regulations issued by the _______ branch of government and apply to EVERYONE in ARIZONA.

  • These laws give individual State Agencies the authority to make rules and the powers to enforce them:
    The Arizona Department of Real Estate (ADRE) under the commissioner, can _______ and _______ Rules based on POWER Granted to the Commissioner under the ARS.
A

Arizona Revised Statues

Executive

Create and Enforce

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8
Q

Arizona “Real Estate” Law:
IMPORTANT: AZ Constitution – Article ______: “Gives real estate licensees the power to draft or write contracts related to the sale of real estate in AZ.

IMPORTANT: ” We as “real estate agents” can NOT ______ a fee for these things or we would be considered acting as attorneys and this is illegal! www.azleg.gov

This is UNIQUE TO ________ and eliminates the need for attorneys as is customary in other states especially Midwest and back East States.

A

AZ Constitution – Article XXVI (26)

Charge

Arizona

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9
Q

What Real Estate Agency Is This?
IMPORTANT:
Main Purpose is to “PROTECT THE GENERAL PUBLIC”

A

The Department of Real Estate (ADRE)

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10
Q

What Real Estate Agency Is This?
* Regulates the sale of subdivisions, un-subdivided lands, timeshares, condominiums, membership campgrounds, and cemeteries.
* It approves and monitors pre-licensing instruction and testing and continuing education courses.

A

The Department of Real Estate (ADRE)

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11
Q

What Real Estate Agency Is This?
* It maintains oversight of approved schools to ensure the quality content of their courses, the competence of their instructors, and the quality and timeliness of the materials being taught.

A

The Department of Real Estate (ADRE)

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12
Q

What Real Estate Agency Is This?
* The Department oversees the activities of licensees, investigates complaints against licensees and land developers, and participates in administrative hearings
pertaining to their conduct.

A

The Department of Real Estate (ADRE)

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13
Q

Requirements for The Arizona Real Estate Commissioner:
* Must be APPOINTED by the _______
* Must have _____ years experience in real estate, banking, mortgage, title
* Must have _____ years experience in Administration Duties
IMPORTANT: Commissioner ______ have an Active Real Estate License
IMPORTANT: No ________ on the Term of office = Serves at the Governor’s Pleasure
* Usually has an EXTENSIVE background in AZ Real Estate

A

Governor

5 Years

3 Years

CANNOT

Limit

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14
Q

Commissioner Responsibilities:
* Adopts new rules and regulations which are found in the _______ Code. Even though these “rules” are NOT laws, they carry the same force and effect.
* Commissioner hires, fires and manages all _______ employees.

A

Arizona Administrative Code

The Department of Real Estate (ADRE)

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15
Q

Commissioner Responsibilities:
* Oversees and manages the 8 ADRE Divisions:
1. Office of the _______
2. Auditing
3. _______ Services
4. Education
5. _______ and Compliance
6. Investigations
7. Licensing
8. _______ Fund

A

Commissioner

Development

Enforcement

Recovery

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16
Q

The Commissioner oversees and manages what 8 ADRE Divisions?

A
  1. Office of the Commissioner
  2. Auditing
  3. Development Services
  4. Education
  5. Enforcement and Compliance
  6. Investigations
  7. Licensing
  8. Recovery Fund
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17
Q

ADRE Divisions Explained:
o The Commissioner CAN investigate a licensee, broker, or entity at _____ time. I.e. compliance, Trust Accounts, record keeping, etc.

What ADRE Division is this?

A

ANY

Audits 6

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18
Q

ADRE Divisions Explained:
o This division oversees all _____ licensing requirements

What ADRE Division is this?

A

New

Licensing 4

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19
Q

ADRE Divisions Explained:
o Oversee the registration of proposed new subdivisions
o Issue the Public Reports (i.e. ________ Reports)
o Monitor subdivisions for compliance and adherence to Public Report
o The public report is a “disclosure document” before purchase.

What ADRE Division is this?

A

Subdivision Disclosure Reports

Subdivisions

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20
Q

ADRE Divisions Explained:
o Responsible for making recommendations for any disciplinary actions against licensee/broker/entity including suspensions or revocations.
o Publish a quarterly bulletin for the general public – can be found on ADRE website.

What ADRE Division is this?

A

Administrative Actions Divisions

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21
Q

ADRE Divisions Explained:
o IMPORTANT: The Commissioner MUST investigate any time a “_______” complaint has been filed with the office which many times, is sent back to broker of agent. (many times, sent back to broker of agent for follow up or a review from the brokerage on behalf of ADRE if the violation is minor)

A

Investigations & Audits 6

Written

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22
Q

ADRE Divisions Explained:
o Continuing education overview
o New schools, instructors and materials review

What ADRE Division is this?

A

Education 7

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23
Q

ADRE Divisions Explained:
o Issues _______ Policy Statements
* _______ ONLY, they are designed to inform the public of changes or implementations of new policies in the Department of Real Estate.

What ADRE Division is this?

A

Advisory ONLY

Substantive

Administrative Actions Divisions

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24
Q

Commissioners Limitations:
* The Department of Real Estate DOES NOT have the authority to investigate:
o _________ - Most local jurisdictions (City or County) have a ______ that is responsible for these types of disputes or complaints.

What is the legal term?

A

Landlord & Tenant Disputes

Department

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25
Q

Commissioners Limitations:
The Department of Real Estate DOES NOT have the authority to investigate:
o _______ – The Arizona Registrar of _______ has jurisdiction concerning these types of defects.

What is the legal term?

A

Construction defects

Contractors

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26
Q

Commissioners Limitations:
The Department of Real Estate DOES NOT have the authority to investigate:
o _______ – Things that are NOT ethical BUT are NOT necessarily _______.

What is the legal term?

A

Ethics violations

Illegal

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27
Q

Commissioners Limitations:
The Department of Real Estate DOES NOT have the authority to investigate:
o _______ violations - are civil and require _______ action; contact your local __________.

What is the legal term?

A

Homeowners Association (HOA) violations

Civil

HOA

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28
Q

Commissioners Limitations:
The Department of Real Estate DOES NOT have the authority to investigate:
o _______ violations - are civil and require _______ action; contact your ______ or legal counsel.

What is the legal term?

A

CC&R violations [CC&R means Covenants, Conditions and Restrictions. The purpose of CC&Rs are to protect, preserve and enhance the property values within the community. These restrictions and requirements can set limits on property maintenance, decorations, pets and more.]

Civil

HOA

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29
Q

Commissioners Limitations:
The Department of Real Estate DOES NOT have the authority to investigate:
o ________ – The Arizona Department of ________ regulates Escrow and Mortgage institutions in Arizona.

What is this legal term?

A

Loan, Interest Rate, or Escrow problems

Financial Institutions

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30
Q

Commissioners Limitations:
The Department of Real Estate DOES NOT have the authority to investigate:
o ________ – The Arizona Department of _______ regulates Title Insurance institutions and transactions in Arizona.

What is this legal term?

A

Title Insurance issues

Insurance

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31
Q

Commissioners Limitations:
The Department of Real Estate DOES NOT have the authority to investigate:
o ________ – The Arizona Department of _______ regulates Homeowner’s Insurance institutions in Arizona.

What is this legal term?

A

Homeowner’s Insurance (HOI)

Insurance

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32
Q

Commissioners Limitations:
The Department of Real Estate DOES NOT have the authority to investigate:
o _______ - For the holding or improper payment of escrow money by escrow/title companies, If you are a victim CONTACT The Arizona Department of _________.

What is this legal term?

A

Escrow money issues

Financial Institutions

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33
Q

Commissioners Limitations:
The Department of Real Estate DOES NOT have the authority to investigate:
o _______ - Disputes over commission are considered _______ disputes

What is this legal term?

A

Commission disputes between Licensees

CIVIL

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34
Q

Commissioners Limitations:
The Department of Real Estate DOES NOT have the authority to investigate:
o ________ - Acts including but not limited to trespassing, assault, theft, etc.

What is this legal term?

A

Criminal

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35
Q

Enforcement Agencies:
What agency monitors the Commissioner?

A

The Real Estate Advisory Board

36
Q

Enforcement Agencies:
This agency was established by the Legislature to provide the Real Estate Commissioner with such recommendations as it deems necessary and beneficial to the best interests of the public.
* This agency shall also provide recommendations on specific questions or proposals as requested by the Commissioner.

What is this Agency?

A

The Arizona Real Estate Advisory Board which monitors the Commissioner.

37
Q

Enforcement Agencies:
The board is comprised of _______ members appointed by the Governor.
o The term of office of each member is ______ years.
* The Advisory Board is required by Statute to meet at least ONCE every ________.
* Members receive NO ________.

What is this Agency?

A

10

6 Years

QUARTER

Compensation

The Arizona Real Estate Advisory Board which monitors the Commissioner.

38
Q

Enforcement Agencies:
10 Member Board MUST all be from ______:
o TWO members, each of whom is a real estate broker with at least ______ years of brokerage – MUST be from different _______ in AZ.
o THREE members, two residential real estate brokers and one of whom has been engaged in _______ residential rental property management.
o TWO members who are ______ of real property.
o THREE _______ members.

A

Arizona

FIVE

Counties

Multi-family

Sub-Divider

Public

The Arizona Real Estate Advisory Board which monitors the Commissioner.

39
Q

Licensing Procedures and Facts:
* All applicants for an original real estate, cemetery or membership camping.
* Arizona is a “________” State meaning that if you are licensed in another state and reside now in AZ, you must pass the ARIZONA portion of the Exam.

A

Non-Reciprocal

40
Q

Licensing Procedures and Facts:
* The Pre-licensure education is valid for ______ years from passing the SCHOOL exam.
* Salesperson License application must occur within ______ year(s) from the date of passing the STATE examination, or the state exam must be retaken and passing score reports presented.

A

Ten Years

One Year

41
Q

Who is REQUIRED to Have a Real Estate License?
A person must be licensed if they are to advertise or ‘act’ as a real estate licensee in the State of Arizona IF they perform or offer to perform the following services FOR COMPENSATION or PROMISE of COMPENSATION:

o Selling/Listing/Purchasing/_______ on the exchange
o Leasing or ________ of Real Estate
o ________ of Land or Real Estate

A

Negotiation

Renting

Auctioning

41
Q

Who is REQUIRED to Have a Real Estate License?
A person must be licensed if they are to advertise or ‘act’ as a real estate licensee in the State of Arizona IF they perform or offer to perform the following services FOR COMPENSATION or PROMISE of COMPENSATION:

o Selling of __________, campground memberships or cemetery plots.
- Person with an active real estate license does NOT need to have a separate license for campgrounds/cemetery.

A

Timeshares

42
Q

Who is REQUIRED to Have a Real Estate License?
A person must be licensed if they are to advertise or ‘act’ as a real estate licensee in the State of Arizona IF they perform or offer to perform the following services FOR COMPENSATION or PROMISE of COMPENSATION:

o Managing property for others IF their bonuses are more than ______% of their salary.

A

50%

43
Q

If you are caught impersonating a licensee or acting WITHOUT a license, it’s a ________!

A

Felony

44
Q

Who is NOT required to have a license?(Exemptions)
* Selling for yourself (______).
IMPORTANT: Attorney representing a client – where attorney DOES NOT RECEIVE _______ from the SALE Related to job duties such as; property liquidation of assets, bankruptcy, and foreclosures.

A

FSBO

Commission

45
Q

Who is NOT required to have a license? (Exemptions)
* Auctioneers of ______ property.
* _____ acting under a trust agreement or a deed of trust.

A

Personal

Trustee

46
Q

Who is NOT required to have a license? (Exemptions)
* Executor of a will/Attorney in fact with a ___ of Attorney.
* Property managers who manages only ______ property on behalf of someone else. (That one property could be multiple units, or apartment managers).

A

Power

ONE

47
Q

Who is NOT required to have a license? (Exemptions)
IMPORTANT: Real estate _______ – CAN NOT discuss PRICE, TERMS, or AVAILABILITY.
* A ______ may have an unlicensed person perform clerical, bookkeeping, accounting and other administrative and support duties, so long as they are NOT engaged in any other acts requiring a license.

A

Assistants

Broker

48
Q

General Licensing Requirements:
* Candidates for AZ Salesperson must:
o Must be 18 years or older (No maximum age Limit)
o Must prove legal presence in US
> Be a Resident of Any State – No Residency Requirement
o Complete ____ hours of education with an approved real estate school
o Pass a Certified Real Estate School Exam
o Pass the State of Arizona Real Estate Exam
o Must take a _____ hour Intro to Contract Writing Class
o It’s legal to be ________. As an active licensee a P.C. or a PLLC, which must be your name can be paid commission from the broker. Tax reasons, if interested contact an attorney

A

90 Hours

6 Hours

Self-Incorporated

49
Q

General Licensing Requirements:
Salesperson candidates must submit an application that includes:
o Identity Information Statement
o LI-____ Criminal Record Disclosure
o LI-____ Past License Revocation Disclosure
o DPS Issued Fingerprint Clearance Card
o All Required Fee’s due to the Department of Real Estate

A

LI-214
LI-400

50
Q

1 Arizona Statutes and Rules:

Broker Licensing Requirements:
o Age -must be at a minimum ____ Yrs of age (18 years + 3 Years of experience)
o Education – must pass ___ hours of brokers education
o Testing – must pass the State and National Broker exam
o Fingerprint Card – must obtain a NEW and updated fingerprint card
o ________ – must attend a brokers 9 hour clinic
o Pay Fees – ADRE application fees paid to department of Real Estate

A

21

9 Hours

Broker Management Clinic

51
Q

1 Arizona Statutes and Rules:

Broker Licensing Requirements:
Candidates must submit an application that includes:
o _____/_____ – must fill out and submit a disciplinary action form
o _____ – must be filled out in case of civil or criminal action disclosed
o _____ – Broker must provide proof of _____ years experience within past 5 years
o Current or previous brokers must sign candidate experience form
o IF from another state, a FULL license ____from that state
o Candidate has a period of ____ year(s) to ‘ACTIVATE’ their brokers license from the date of passing the exam (similar to new salespersons).

A

LI244/LI214

LI400

LI226

3 Years

History

52
Q

Issuance of your license:
* ______ years to take the STATE exam AFTER passing the SCHOOL exam.
IMPORTANT: You have ____ year(s) to activate your license after passing the STATE exam.
* To “______” your license means you are “STARTING UP”

A

10 Years

1 Year

ACTIVATE

53
Q

Keeping Your License Current (Renewals):
IMPORTANT:
* Your License is good for a period of ____ years or ____ Calendar Months
* Your license will EXPIRE on the LAST day of the month of the ___th month from ORIGINAL date.

  • Every 24 months a license will need 24 hours of education (24/24)
    o 3 hours of Agency Law
    o 3 hours of Contract Law
    o 3 hours of Disclosure
    o 3 hours of Real Estate Legal Issues
    o 3 hours of Fair Housing
    o 3 hours of Commissioners Standards
    o 6 hours of and ADRE approved “general electives”
    o BONUS – Your Contract Writing Course counts towards CE classes
A

2 Years

24

24th

53
Q

Keeping Your License Current (Renewals):
* Your License is good for a period of ____ years or ____ Calendar Months
* Your license will EXPIRE on the LAST day of the month of the ___th month from ORIGINAL date.

A

2 Years

24

24th

54
Q

Keeping Your License Current (Renewals):
IMPORTANT: Every ____ months a license will need 24 hours of education for renewal.
(REMEMBER: The _______ Rule)

o 3 hours of Agency Law
o 3 hours of Contract Law
o 3 hours of Disclosure
o 3 hours of Real Estate Legal Issues
o 3 hours of Fair Housing
o 3 hours of Commissioners Standards
o 6 hours of and ADRE approved “general electives”

A

24 Months

24 Hours

The 24/24 Rule

o BONUS – Your Contract Writing Course counts towards CE classes

55
Q

Keeping Your License Current (Renewals):
* Licenses are “______” for those who do NOT complete their CE classes.
* If an agent does not renew their license on time, they enter into a “________”.
The GRACE period lasts for a period of ____ year(s).
IMPORTANT: You are NOT ALLOWED TO ACT AS A REAL ESTATE AGENT.
IMPORTANT: YOU CAN NOT earn NEW during the grace period.
* You can reinstate with full CE courses, fees and penalty w/in 1 year time.
* If you do not renew on time, you license is “Terminated”
* Once terminated, you must redo all courses, tests, etc.

A

EXPIRED

Grace Period

1 Year

56
Q

Keeping Your License Current (Renewals):
* Licenses are “______” for those who do NOT complete their CE classes.
* If an agent does not renew their license on time, they enter into a “________”.
* The grace period lasts for a period of ____ year(s).
* You are NOT ALLOWED TO ACT AS A REAL ESTATE AGENT
* YOU CAN NOT earn new ______ during the grace period
* You can reinstate your license with full CE courses, fees and penalty within ____ year(s) time.
* If you do not renew on time, you license is “__________”
* Once this occurs, you must redo all courses, tests, etc.

A

EXPIRED

Grace Period

1 Year

Commission

1 Year

TERMINATED

57
Q

Agent Compensation Break Down:
IMPORTANT: Commissions are ONLY payable to the _____.
* You work for your BROKER. It is your broker who works for the CLIENT.
* Your broker OWNS all Listings and Sales and EARNS all commissions.
IMPORTANT: All _____ to agents MUST be paid directly BY their BROKER.
* An out of state licensed broker/agent _____ work underneath a Designated Broker in the State of
Arizona as long as they have an _____agreement and all work is handled through the Designated Broker in _____.
* Your Employment Agreement is a _______.

A

Designated Broker DB

Commission

CAN

Operating Agreement

Arizona (By Referral)

Contract

58
Q

Agent Compensation Break Down:
* Your broker EARNS all commissions as discussed earlier.
* You will be PAID by your Designated Broker BASED on your contract.
* You MUST be ______ at the TIME the Commission was Earned.
o Commissions are “EARNED” in ARIZONA at the time the sale is _______, NOT when the sale is CLOSED or RECORDED.
IMPORTANT: If you produce a Ready, Willing and Able buyer to a seller and a _______ is FORMED, that is the EXACT time your commission is EARNED and DUE, BUT IS payable LATER.
* Agents TYPICALLY get PAID AFTER ______, sometimes from escrow directly.
IMPORTANT: If your broker has a full and complete file, they may release payment to the agent directly from close of escrow. This is COMMON and ALLOWED.

A

Licensed

PROCURED

Contract

Close Of Escrow (COE)

59
Q

Agent Compensation Break Down:
IMPORTANT: Referral Fees are LEGAL in the State of Arizona.
o Agent to Agent referrals are NOT uncommon but, remember that ALL commissions earned NEED to be paid to YOUR ______.
IMPORTANT: Agent must be licensed at the time the commission was “EARNED” and do NOT have to be licensed when the commissions are “______”.

A

Designated Broker

PAID

60
Q

Agent Compensation Break Down:
IMPORTANT: _______ - Payments for referrals or leads made to someone who does NOT have a current real estate license is ______ in the State of Arizona.

A

Finder’s Fees

ILLEGAL

61
Q

Agent Compensation Break Down:
* It is LEGAL to be a lender (MLO) and a real estate agent, but must COMPLY with all lender laws and MUST ______ if earning money from BOTH real estate AND Lender sides.

A

DISCLOSE

62
Q

Offices and Commissions:
* _______ Commissions offices:
o You the sales agent will receive your ENTIRE commission.
o Typically, in this case you will have a _______ fee.
o Most often there are fees taken out of your commission.

A

100%

Monthly

63
Q

Offices and Commissions:
* Commission ______ Offices
o Depending on your agreement, you will SHARE or SPLIT commissions.
o Most often you see splits ranging from 50/50 to _____/_____.
o Splits cover your expenses.

A

Sharing (Split)

90/10 Split

64
Q

Real Estate Offices:
* Brokerage must have a ______ location in Arizona.
IMPORTANT: Sign must have _______ name and Brokerage Name.
* Sign at entrance made visible to the general public.
* All other agent licenses must be available for review.
* IMPORTANT: Current copy of ARIZONA ___ book readily available (online OK)
IMPORTANT: Any change of address must be filed with ADRE within _____ DAYS.
(This includes moving, closing, opening etc.)

A

Real Estate Offices

Physical

Designated Broker [DB]

AZ RE Law

10 Days

65
Q

Real Estate Offices:
______ Offices: (Secondary Locations)
o MUST be managed by a licensed _____ or ______
o Sign must have Designated Broker’s name and ______ Name
o Sign must indicate that this is a “_______ Office”

A

Branch Offices

Brokerage

Branch

66
Q

Real Estate Offices:
o ______ Offices are exempt from ADRE license fees

A

New Home Sales Offices

67
Q

Operating Without A License:
IMPORTANT: Anyone who acts or advertises as being a licensed agent without having a current license is guilty of a ______.
* A licensee conducting real estate activity while their license is Inactive, Expired or Terminated, or someone who has never obtained a license. This is common with Property Management.
* Commissioner can send out ______ orders to stop this behavior as they don’t have more authority since the individual is NOT licensed.
* If found GUILTY a ______ Penalty can be issued like FINES.
IMPORTANT: The penalty is up to $1000

A

FELONY

Property Management

Cease and Desist

Civil

68
Q

Violations & Penalties:
IMPORTANT: Before the COMMISSIONER or ADRE can use action AGAINST a licensee, they must PRESENT _____ notice of any charges and provide the OPPORTUNITY for a _______.

IMPORTANT: The licensee has ONLY _____ days to file a written reply and CAN be represented by an attorney.

A

Written

Hearing

20 Days

68
Q

Violations & Penalties:
* IMPORTANT: Agents MUST MAKE and SUBMIT any LEGAL status CHANGES TO ADRE within _____ Days to Commissioner.
o Must disclose ANY misdemeanor or Felony conviction – NOT arrest, only a _______.
o Any court decision rendered as result of _____ judgment.
o Suspension or revocation of ANY OTHER ______ license.

A

10 Days

Conviction

Civil

Professional

69
Q

Violations & Penalties:
IMPORTANT: ONLY the Commissioner can issue this type of Order.
* ______ - A disciplinary action resulting FROM ______ between the Department and the Respondent.

A

Consent Order / Consent Agreement

Negotiation

69
Q

Violations & Penalties: (Types and Examples)
IMPORTANT: _______ are usually subject to CIVIL cases while some can be CRIMINAL. Most real estate disputes are OFTEN resolved in _____ actions.

o Example: An unlicensed person who accepts a finder’s fee, if found guilty of operating without a license is potentially committing a class 6 felony.

A

Violations

civil

69
Q

Violations & Penalties: (Types and Examples)
IMPORTANT: _______ - This term means you still have a license but CANNOT use it for a defined period of time, and it can be REINSTATED if certain criteria are met.

o Example: Failure to report a conviction, a DUI, theft.

A

Suspension of a License

70
Q

Violations & Penalties: (Types and Examples)
IMPORTANT: _______ - This may be issued to a licensee if the commissioner feels that a ‘CERTAIN’ action may negatively be affecting the general public.

o Example: Fraudulent activities, or scams against the public.

A

Summary Suspension

70
Q

Violations & Penalties: (Types and Examples)
IMPORTANT: ________ - This means you no longer have a license at all. – It’s gone.

o Examples: Felony acts, Forgery, Theft, or Misrepresentation.

A

Revocation of a license

71
Q

Violations & Penalties: (Types and Examples)
IMPORTANT: ______ - These are issued when a licensee has been found to be doing an individual act that is ILLEGAL or potentially HARMFUL to the public.

o Example: Illegal property management position without a license.

A

Cease and Desist Orders

72
Q

Violations & Penalties: (Types and Examples)
IMPORTANT: ______ - This is issued under situations where a licensee is ALLOWED to practice.

o limited aspects of real estate but NOT everything

o Example: If a licensee was charged with domestic violence but not yet convicted.

A

Provisional License

73
Q

Violations & Penalties: (Types and Examples)
IMPORTANT: ______ - These are issued by the department if and when a licensee’s conduct doesn’t warrant any other type of disciplinary action.

o Example: An agent violated terms of the “Realtor code of Ethics”.

A

Letters of Concern

74
Q

Violations & Penalties: (Types and Examples)
IMPORTANT: ______- This can be issued after a hearing if a licensee is found to have VIOLATED a provision of the “Realtor code of Ethics”, they can be assessed up to a $______ penalty.

o Example: unlicensed activity or property management without a license.

A

Civil Penalty

$1000

75
Q

Violations & Penalties: (Types and Examples)
IMPORTANT: ________ - This can be assessed if the commissioner feels that a licensee may just need a better UNDERSTANDING in certain areas.

o Example: Licensee FAILURE to recognize federal fair housing acts.

A

Additional Education

76
Q

IMPORTANT: ______ = Is a last resort for recovery of losses, in an attempt to make a claimant whole, caused by the conduct of a licensed salesperson / broker in a real estate transaction.

  • This is administered under the direction of the Arizona Real Estate _______.
A

Recovery Fund

Commissioner

77
Q

How to apply to the Recovery Fund?
o Eligibility applies when:
IMPORTANT: A court judgment either civil or criminal OR an _____ award has been obtained against the salesperson and broker (NOT just the brokerage company) involving a real estate transaction and the conduct of the salesperson AND broker were in VIOLATION of the law.

o The collection of a judgment or the award WITH documented attempts to COLLECT required but has been UNSUCCESSFUL the injured party MAY seek _____ damages from the Recovery Fund.

o A Client must bring action against a licensee within ____ years of the CAUSE for action.

A

Arbitration

Monetary Compensatory

5 Years

78
Q

Who Pays for the Recovery Fund?
IMPORTANT: The fund is FUNDED by _____ who are required to pay $10 per issuance of their new sales license and $20 for a new broker’s license.

o IMPORTANT: If on June _____th of any year, the balance in the Recovery Fund falls below $________ every broker or salesperson who renews their license will be required to pay the same fee upon renewal to increase the balance of the fund.

A

Licensees

June 30th

IMPORTANT: $600,000

79
Q

Who Pays for the Recovery Fund?
Distribution of the Fund:
o The Recovery Fund pays ONLY for actual, directly related out of pocket costs arising out of the real estate transaction. Paid only against a natural _____ ONLY, not a corporation.

o IMPORTANT: Damages are limited up to $____ per transaction.
Ex. The party who was harmed can collect a maximum of $30,000 from the fund

o IMPORTANT: Maximum that will be paid from the fund over a licensees lifetime is $_____
Ex.10 people are owed $10,000 each, the first 9 to make a claim can get $10,000 back while the 10th person was too late and the fund payed out the maximum.

A

Person

$30,000

$90,000

80
Q

Who Pays for the Recovery Fund?
Licensee Action:
o IMPORTANT: If the commissioner pays money from the fund on behalf of a licensee, that licensee’s salesperson or broker license is AUTOMATICALLY _________.

o The licensee isn’t eligible to obtain a license until they have repaid the fund with ______.

A

Terminated

Interest

81
Q

Who is REQUIRED to Have a Real Estate License?
* A person must be licensed if they are to advertise or ‘act’ as a real estate licensee in the State of Arizona IF
they performs or offers to perform the following services FOR COMPENSATION or PROMISE of COMPENSATION:
o Selling/Listing/Purchasing/Negotiation on the exchange
o Leasing or renting of Real Estate
o Auctioning of Land or Real Estate

A
  • If you are caught impersonating a licensee or acting without a license, it’s a
    felony!

A Real Estate Agent Concepts (25 decks)

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