Unit 23

Question 1

Employing broker

Answer 1

Either a brokerage firm or sole proprietor and must have a designated broker to fulfill the duties required of an employing broker

Question 2

Sole proprietor

Answer 2

Must either operate in sole proprietor’s name or as a DBA, but not both

Question 3

LLCs

Answer 3

Can only be used for non-natural persons (employing brokers); professional corporations and professional limited liability companies are reserved for natural people

Question 4

Designated broker

Answer 4

Must delegate a license to act for her to every absence of at least 24 hrs, but not more than 30 days. Upon death, the Dept may issue a temporary broker license to another person for up to 90 days

Question 5

4 types of broker audits

Answer 5

-Declarative
-Normal and Routine
-Electronic
-Investigative

Question 6

Declarative audit

Answer 6

Self-audit done online by designated broker

Question 7

Normal and Routine audit

Answer 7

Audited on a random basis

Question 8

Electronic audit

Answer 8

Designated broker gives the ADRE access to employing broker’s transaction platform to audit certain records

Question 9

Investigative audit

Answer 9

Result of a complaint or problem found in an electronic or normal and routine audit

Question 10

New employing broker

Answer 10

Licensee’s responsibility to make an electronic request through ADRE.gov if they wish to work for another employing broker. The new employing broker will be notified and can reject or accept. Licensee entitled to all earned commissions, even after departure.

Question 11

Departing licensee with open escrows

Answer 11

Licensee may not continue to work the escrow unless the escrows are transferred to the new broker

Question 12

Employing broker

Answer 12

Required to develop written office policies if they have more than one: designated broker, licensed salesperson or associate broker, unlicensed assistant, or office

Question 13

Trust account

Answer 13

Every broker who receives monies entrusted to him must immediately place them in a broker trust account of give them to an escrow company. Must be maintained in a federally insured or guaranteed repository within AZ and show it is a “trust” or “fiduciary” account. Must be for a specific purpose. There is no commingling violation if the broker limits personal funds in the trust account to $3000.

Question 14

Broker documents

Answer 14

Designated broker or designee must review and initial sales docs within 10 business days and keep the files for at least 5 yrs. Rejected offers are kept 1 yr and employee records kept for at least 5 yrs