Arizona Real Estate License Arizona Real Estate Statutes Questions and Answers 1 — Questions and Answers
Question 1: According to Arizona Revised Statutes, a real estate broker is required to retain records of all transactions handled for a period of at least:
- Three years from the date of closing.
- Five years from the termination of the transaction. (Correct answer)
- Seven years from the date of the listing agreement.
- One year from the final disposition of any litigation.
Correct answer: Five years from the termination of the transaction.
A.R.S. § 32-2151.01(A) mandates that brokers must keep records of all real estate transactions they handle for a period of at least five years from the date of the termination of the transaction.
Question 2: A licensed real estate salesperson in Arizona is preparing a sales contract for a buyer. Which of the following acts is permissible under Article 26 of the Arizona Constitution?
- Charging the buyer a separate fee for drafting the contract.
- Drafting a complex commercial lease agreement for the same client.
- Completing a pre-printed purchase contract form incidental to the transaction. (Correct answer)
- Providing legal advice on the best way to take title to the property.
Correct answer: Completing a pre-printed purchase contract form incidental to the transaction.
Article 26 of the Arizona Constitution grants licensed real estate brokers and salespersons the right to draft or fill out, without charge, any and all real estate documents, including contracts, when these acts are incidental to a real estate transaction. Charging a fee or providing legal advice is prohibited.
Question 3: An Arizona real estate broker receives an earnest money deposit from a buyer on a Friday afternoon. According to Arizona statutes regarding trust accounts, the broker must deposit the funds:
- Into their personal bank account until the offer is accepted.
- By the end of the next business day.
- Within three banking days of receiving the funds.
- Promptly upon acceptance of the contract. (Correct answer)
Correct answer: Promptly upon acceptance of the contract.
A.R.S. § 32-2151(B)(1) requires that a broker shall 'promptly' place all money entrusted to the broker in a neutral escrow depository in Arizona or a trust account. The Commissioner's Rules further clarify this, generally meaning by the close of the next business day, but the statute itself uses the term 'promptly upon acceptance of the contract'.
Question 4: Which of the following situations would require an individual to hold an active Arizona real estate license?
- An attorney-at-law acting in the regular course of their legal practice.
- A property owner selling their own home (FSBO).
- An individual who, for a fee, negotiates the sale of a business opportunity that includes real property. (Correct answer)
- A trustee selling property under a deed of trust.
Correct answer: An individual who, for a fee, negotiates the sale of a business opportunity that includes real property.
According to A.R.S. § 32-2121, it is unlawful to act as a real estate broker or salesperson without a license. This includes engaging in the business of selling, exchanging, purchasing, renting, or leasing real property or business opportunities for compensation. While there are exemptions for property owners, attorneys, and trustees acting in their official capacity, negotiating the sale of a business with real property for a fee requires a license.
Question 5: A developer is selling lots in a new, unsubdivided land development in a rural Arizona county. What must the developer provide to a potential buyer before the buyer signs a purchase contract?
- A copy of the developer's real estate license.
- A certificate of assured water supply from the Arizona Department of Water Resources.
- An Affidavit of Disclosure. (Correct answer)
- A recent certified appraisal of the lot.
Correct answer: An Affidavit of Disclosure.
Arizona Revised Statutes require sellers of five or fewer parcels of land in an unincorporated area of a county, and that are not in a platted subdivision, to furnish the buyer with an Affidavit of Disclosure. This document provides important information about the property, such as water availability, access, and zoning.
Question 6: If a licensee is found to have violated Arizona real estate statutes, the Real Estate Commissioner has the authority to do all of the following EXCEPT:
- Suspend the real estate license.
- Issue a letter of concern.
- Impose a civil penalty of up to $1,000 per violation.
- Sentence the licensee to up to 30 days in jail. (Correct answer)
Correct answer: Sentence the licensee to up to 30 days in jail.
The Arizona Real Estate Commissioner has broad powers to investigate and discipline licensees, including license suspension or revocation, and imposing civil penalties. However, the Commissioner's authority is administrative, not criminal. Imposing a jail sentence is a power reserved for the judicial system.
Arizona Real Estate License Arizona Real Estate Statutes Questions and Answers 1
According to Arizona Revised Statutes, a real estate broker is required to retain records of all transactions handled for a period of at least: