Students

Commissioner's Rules and Regulations

Article 1
How does the term " Closing" and "Recorded" relate to a real estate transaction?
1. Closing is the period of time that the real estate is in escrow and recorded is when it is payed.
2. Closing is the final step of a real estate transaction when it is all payed, signed, recorded and the deed is delivered.
3. Recorded is when the deed is placed in escrow and the closing is the time of your appt. with the title company.
4.Closing is when you sign and recorded is when you pay.

Article 2
Any individual applying for real estate renewal shall complete ______ credit hours in the following categories: Agency Law, Contract Law, Commissioner’s Standards, Real Estate Legal Issues, Fair Housing, Disclosure, and General (optional) every two years.
1. 18
2. 21
3. 24
4. 27

24 hours (credit) of continuing education is needed for what period of time?
1. every year
2. every two years
3. every three years
4. every four years

Prior to closing a transaction, a real estate broker shall disclose what information?
1. Each employing broker who will receive compensation from the transaction
2. The Buyer...
3. The Seller....
4. The Buyer, seller, and title company...

Article 3
Any person applying for an employing or designated broker's license shall provide which of the following information?
1. the broker's home address and home telephone number
2. the name and number of the broker’s trust account
3. the name of all salespersons employed by the broker
4. amount of stocks held if greater than 10%

Why can’t two brokers have a similar names? Pick the best answer:
1. because you don’t want to be the same
2. because it could cause conflict or confusion
3. because it is against Federal regulations
4. because the agents won’t know where to go

Article 5
When using a pictorial or illustrative depiction of a property, a salesperson or broker should:
1. modify photograph to enhance its selling points
2. Identify improvements that are proposed and not in existence
3. Leave out proposed public right of access
4. Not bear a prominent disclosure identifying the nature of the depiction

Article 7
When should a real estate broker disclose compensation received by licensees?
1. when agents represent a party
2. when agents need the transaction to close
3. when the Buyer and Seller ask
4. before completion of the transaction

Article 8
What is the time frame available to a purchaser or lessee to rescind or cancel a contract on an unimproved subdivided lot or
unsubdivided land?
1. midnight of the 7th calendar day following the day the purchaser or lessee executed the agreement.
2.midnight of the 7th calendar day from the date the contract was signed or 6 months if the purchaser or lessee has a cockroach in his pocket.
3. 6 months and 7 days following the day the purchaser or lessee executed the agreement.
4. midnight of the 7th calendar day following the day the purchaser or lessee executed the agreement, or if the purchaser does not inspect the lot or parcel the purchaser or lessee shall have 6 months to inspect the lot and unilaterally rescind the agreement.

When a public report is required by a developer, which of the following is not true.
1. a purchasers signature is required to verify that they have received the public report.
2. A statement with the following appears at the bottom, "FOR YOUR PROTECTION, DO NOT SIGN THIS RECEIPT UNTIL YOU HAVE RECEIVED A COPY OF THE REPORT AND HAVE HAD THE OPPORTUNITY TO READ IT. BY SIGNING THIS RECEIPT, THE BUYER HAS ACCEPTED THE PUBLIC REPORT AND ACKNOWLEDGES
INFORMATION IT CONTAINS."
3. There are rubber ducks in your pond and they are chattel.
4. The acknowledgement that the report has been given by the seller and received by the purchaser is required by the Arizona Department of Real Estate.

Article 11
Salesperson or Broker may not permit or facilitate occupancy in a person’s real property by a third party without:
1. that person saying it is ok
2. a phone call to the person
3. freewill
4. written authorization from the person

Mary has decided to sell her home. She has listed with John, the licensee at Gamon Realty. Who may John represent? All are correct except:
1. Buyer
2. Seller
3. Both equally without written consent.
4. Both with prior written consent of all parties.

Article 12 A
In the course of subdividing your 40-acre parcel of land that you bought two years ago and which has been completely dry ever since you have owned it, you need not worry about water in any way or any affects of water – or do you? Which of the following is true:
1. If you have no water on the property in two years there are no water issues because of the two-year statutes of limitations.
2. Your land is in the desert next to a mountain and there is no way water could become deep enough to bother any structures so you have no water issues.
3. The long timers in the area say we never have much rain, so there appears to be no water issues at all, and you have no reason to disclose anything about water.
4. You must consult an engineer or a city or county engineer to certify that there are no water issues and he must do an investigative survey to determine what water issues there are over a 100-year period.

A real estate developer of a new subdivision may assure its completion and maintenance by any of the following EXCEPT:
1. Surety or completion bond
2. An irrevocable letter of credit
3. Land contract of sale
4. Trust or escrow account

Article 12B
To amend a public report, a developer shall submit payment of the applicable amendment fee and which of the following:
1. The name and address of the development
2. The name and signature of the developer
3. Signatures of all Homeowners in the development
4. A copy of the addendum that is to be recorded

Property Interest is:
1. A contract between a buyer and a seller
2. a name used to conduct business other than a person’s legal name
3. a person’s ownership or control of a lot, parcel, development, etc.
4. a trade fixture, which was left by a business tenant

Return to the top.

--------------------------------------------------------------------------------

Arizona Revised Statutes

Article 1

Who can sell cemetery plots?
A. Any broker
B. Any real estate sales person who has a principal to buy a cemetery plot.
C. Cemetery broker
D. Funeral home that manages the cemetery.

Cemetery property means all of the following EXCEPT:
A. a cemetery plot including interment rights and burial spaces
B. mausoleum for crypt of vault entombment
C. a crematory or a crematory and columbarium for cinerary internment
D. any burial site for which a person is buried (even in your backyard)

Article 2

All of the following are exempt from the Arizona R.E. licensing statutes except
A. an attorney acting as an attorney in the performance of his duties
B. Trustee
C. Person bringing the parties together to consummate a sale and for a commission
D. Person selling their own property

If applying for an original real estate brokers license, the applicant must
A. have a business license and a real estate license
B. must have at least five years experience as a licensed real estate person
C. must have three years experience as a licensed r.e. person within the past five years plus a successfully completed broker licensing course of study
D. must have three years experience as a licensed r.e. person with the past five years

Article 3

Each licensed broker will keep records from all real estate transactions
A. the records shall be kept by another broker for five years from date of sale to buyer
B. the records to be kept in storage in the main office where transaction took place
C. commissioner must mail everyone involved to open the records
D. the records shall be open at all reasonable times by the commissioner or his representative.

The broker shall retain all purchase contract at an off site storage location if
A. the broker provides prior written notification to the commissioner
B. it is an insured location
C. the location is approved by the broker
D. the location is approved by the real estate agents of the office

Article 3.1
In Property management, can anyone move in without owner’s or agent’s permission
A. No, unless they have it okayed by the broker
B. No, unless they have a signed addendum saying it is okay by the owner or owner’s agent; they should seek legal advice
C. Yes, they can without letting anyone know
D. No, because they would have to re-rent the same property and put the third party on it.

Article 4

The commissioner may require the subdivider to supplement the notice of intention to subdivide lands and may require the filing of reports to update the information contained in the original notice of intention to subdivide lands
A. every two years on the anniversary of the contract
B. periodically
C. annually on the anniversary of the contract
D. none of these

Before offering subdivided lands for sale or lease, the subdivider shall in writing notify
A. city council
B. state government
C. commissioner
D. mayor

Article 5
The recovery fund established by the real estate commissioner covers only the following of an aggrieved person:
A. all expenses asociated with a real property transaction
B. the decedant in a transaction
C. Pay the direct out of pocket cost arising from a transaction including reasonable attorney fees and court costs
D. Triple damages arising from the claim

A licensee acting as a principal or agent in a real estate transaction:
A. has no claim against the recovery fund
B. can claim an amount exceeding his losses by 20%
C. can claim triple damages
D. has the opportunity to recover three

License fees paid to the recovery fund for an original cemetery brokers license or real estate broker license are:
A. $20
B. $300
C. $40
D. $50

Article 6
Cemeteries shall keep on file records of all documents in connection with all cemetery plot transactions handled by or through them. The records shall include all except:
A. sales contract
B. certificates of burial rights
C. certified copy of death certificates of the deceased
D. all of the above

Cemeteries located in an area having a population of 50,000 or more persons within a radius of 15 miles from the center of the cemetery must deposit with the trustee the sum of _______ money.
A. $10,000
B. $25,000
C. $35.000
D. $50,000

Article 7

Prior to selling unsubdivided land, it is not necessary to do which of the following:
A. subdivide the parcel
B. notify the commissioner of the owner or owners’ names
C. have a correct legal description of land
D. state provisions of permanent access

What must an owner of an unsubdivided parcel of land first do to sell six parcels?
A. must first be subdivided and roads designated
B. Nothin; it’s OK if it’s a desert parcel
C. Must notify the commissioner in writing of intent
D. Nothing; it does not apply to farms whose lands are contaminated

Article 9

A timeshare plan may be created unless prohibited by:
A. any law or county
B. city or town zoning ordinance
C. regulation to the contrary
D. all of the above

A developer may pay a finder fee to a person who is not licensed pursuant to this chapter and who owns a timeshare interest in the developer's timeshare plan if.
A. The finder fee is no more than $500 cash
B. Finder fee does not exceed six hundred dollars in credit or nonmonetary compensation during any twelve month period.
C. Finder fee of no more than $100 cash is paid after customer purchases a unit
D. Unlicensed person doesn't claim the amount on any state tax form

Return to the top.