Session 17
Of these which is the least likely to be considered an example of puffing? a. "best view in the city" b. "exquisite decor that will make your friend jealous!" c. "feel like royalty in this palatial beauty" d. "priced to sell; likely to go quickly in this popular negiborhood"
"priced to sell; likely to go quickly in this popular negiborhood" Puffing is generally considered to be an opinion that is not necessarily intended to be a statement of fact. Of these choices, it would be easiest to show some evidence that a property is priced low in a neighborhood where home go quickly
If a licensee is convicted of a felony or misdemeanor, has another professional license revoked, or his judgement lived against them relating to real estate, the Commissioner must be notified within ___________ a. 3 days b. 5 days c. 10 days d. 15 days
10 days
If a licensee's home address changes, the Commissioner must be notified within ____________ a. 3 days b. 5 days c. 10 days d. 15 days
10 days
How long does a license have to inform the Real Estate Commissioner after bring convicted of a felony? a. 3 days b. 5 days c. 7 days d. 10 days
10 days If a licensee is convicted of a felony - whether in Arizona or any other jurisdiction - he or she must inform the Commissioner within 10 days
The Disciplinary Actions Disclosure requires an applicant to disclose whether or she has had a real estate licenses revoked within the previous ________ proceedings the application a. 6 months b. 1 year c. 2 years d. 3 years
2 years An applicant must disclose any real estate licenses revocation within the two years immediately proceeding the application
How many hours of continuing education must a licensed salesperson complete in order to renew their license? a. 10 hours every year b. 24 hours every 2 years c. 30 hours every 2 years d. 36 hours every 3 years
24 hours every 2 years A licensee must complete at least 24 hours of approved continuing education during every two-year license period. Remember, however, that the ADRE will grant no more than 9 hours of continuing education credit it one day
The Broker Management Clinic consists of ______ courses totaling _______ hours of education a. 2/12 b. 3/9 c. 4/8 d. 9/18
3/9 Designated brokers - and associated brokers who have certain supervisory responsibilities such as reviewing and initialing contracts - must complete the three 3-hour Broker Management Clinic courses that count for nine hours of their required CE
When advertising uses the term "acre", the licensee must be referring to an area of land representing ____________ a. 23,467 square feet b. 43,560 square feet c. 34,650 square feet d. 55,900 square feet
43,560 square feet
Fiona is the listing agent for Jeremiah, whose house is listed at $320,000. Lawrence came to an open house, and really liked the property but thought it was significantly over price. He contacted Fiona with an offer of $260,000. Fiona knew that Jeremiah would never accept such an insulating offer, and so she is not required to tell him about it. A. True B. False
False A sellers agent is obligated to promptly disclose all offers to the client, even if an offer seems unacceptable to the agent
In a recent county zoning board meeting, you learn of a pending charge in the zoning of a piece of commercial real estate you have been attempting to put under contract with your buyer client. You know for a fact that the intended use of the property may be denied if the zoning is enacted. What do you think you should do? A. Ignore this information, since this change is only pending and not a reality at this time B. Tell your buyer client, even though he may terminate the transaction
Tell your buyer client, even though he may terminate the transaction Whatever the buyers decision, you do, have a legal obligation to protect your buyers client, best interest and disclose what you know about the property he is considering
According to the Arizona Commissioners Rule, all are true, except A. An ad for another brokers listing display the listing broker's name B. All ads must include the employing brokers name in some matter C. When a licensee is marketing, his own property for sale or lease, the ad must include the words "owner-agent" D. Licensees must have an owners written permission to place a sign on the property
All ads must include the employing brokers name in some matter The employing broker's name must be included in a "clear and prominent" manner
Which statements are TRUE? select that apply a. arizona real estate licensees are required to renew their license every two years b. the deadline to renew a license is the last day of every even-numbered year c. licensees may renew within 90 days of their license expiration date d. if a license fails to renew the license, the license is suspended e. there is a required fee to renew an expired license
a. arizona real estate licensees are required to renew their license every two years c. licensees may renew within 90 days of their license expiration date e. there is a required fee to renew an expired license
A licensee shall not describe a premium offered at no cost or reduction, cost to promote sales or leasing as a(an) _______ a. lottery, contest, drawing, or game of change b. other offers c. each party signing the document d. award or prize e. each party signing the document
award or prize
A licensed salesperson serving as a branch manager may a. be a signer on the broker's trust account b. hire or server other licensed salesperson c. review and initial contracts d. write checks from he broker;s trust accounts
be a signer on the broker's trust account A licensed salesperson can be a signer on the broker's trust account and perform office management tasks that are not story duties of the employing broker. The other tasks may be performed only by an associate broker
Which of these situations would be considered an example of post-possession? a. Lauren gets an equitable title to the property she's buying one week before moving in b. Mike wants to buy the house he has been renting when his lease is up c. Nelly wants to move into the house she's buying 1 week before closing d. Otto wants to remain in the house he's selling for 1 week after closing
d. Otto wants to remain in the house he's selling for 1 week after closing Post-possession is retaining possession of a. home after the sale has closed. Since the risk is high, brokerages must advise the parties to seek attorney oversight of such arrangements.
A licensed Arizona real estate broker is arrested on a charge of felony child endangerment and the trail is scheduled in six months. He must inform the Arizona Department of Real Estate of his arrest and pending trial a. true b. false
false An Arizona license must inform the Department if found guilty of an offense. Licensees are not required to report an arrest. If the charges are dropped or if the license is found guilt at trial. there is no obligation to file a report with the ADRE
Employing broker Steve decides it's time to open a branch office of his Star Realty company. Four of his associated licensees are interested in working out of the new office, but only associate broker Betty could be named as the branch office manager. The three salesperson licensees CANNOT fulfill that role a. true b. false
false Any active licensee - salesperson or associate broker - could be named manager of a branch office. Of course, only someone with a broker's licenses could ever be a designate broker, however. The level of authority given to the branch manager, however, depends on which license the branch manager holds.
Licensee Lori has had great success advertising her listing on Facebook and Instagram. Such post on social media platforms are not required to include Lori's brokerage company name. A. True B. False
false Any advertising, even on social media platforms, must include the name of the brokerage company
Disclose of a dual agency is NOT required by Commissioner's Rules a. true b. false
false Dual agency requires the express, written consent of both parties to the transaction. Remember that, while a dual agency is legal in Arizona, a dual agent must not do anything that harms either party. Therefore, a duel agent cannot provide undivided loyalty to their clients, nor can a dual agent advise either client how to negotiate. A dual agent can provide facts, but not insight or counsel on how to respond to an offer or counter offer.
If a commercial real estate broker with 20 years' experience in commercial leasing represents a long-term client in the purchase of a home, NO disclosure of a lack of expertise is required a. true b. fasle
false Even with 20 years of experience under his belt, this rocker would still be required to disclose his lack of expertise in residential sales to his client
Buyer's agent Allen refers his client Kelly to Ajax Contracting to do some remodeling on the new home she's buying. Allen can accept a referral fee from Ajax as long as it is disclosed and buyer Kelly acknowledges the compensation a. true b. false
false Federal laws, such as RESPA, prohibit payment or receipt of many types of referral fees or kickbacks. If this example was a commercial transaction, however, then RESPA would not apply. In this case, the licensee would need to disclose the other source of compensation to the client, and the client should acknowledge it
Your seller client tells you, "We don't want you selling this house to anyone from another country; the neighbors wouldn't like it." Your fiduciary duty of obedience requires you to honor their request a. true b. false
false In this case, you have every right to ignore their request, because what they're asking you to do it illegal. You must obey a client's legal request
The fiduciary duty of obedience to legal instructions from a client survives the agency relationship a. true b. false
false It is the duty of confidentially that survives the agency relationship. Even if the employment agreement expires, or the transaction closest, certain information learned during the relationship must remain confidential
If a real estate ad incorrectly states he zoning of a property, the licensee has no liability for the inaccurate information a. true b. false
false Licensees are obligated to ensure the accuracy of any information or claim made in an advertisement and would, therefor, be liable for inaccurately stating the zoning of the advertised property
In order to be considered clear and prominent, the brokerage name must be larger than the name of the licensee a. true b. false
false The Commissioner's Rules do not impose specific requirements related to the size and location of the broker's name. Just remember clear means that it's easy to see and prominent means that it stands out.
Licensee Lori is working with buyer Ben. After visiting an open house, Ben tells Lori that he wants to buy the property at the asking price of $250,000. Lori tells listing agent Glen about the offer. Since it's verbal offer, Glen is NOT obligated to present the offer to his seller client a. true b. false
false The Commissioner's Rules require that licensees present all offers, written and verbal, made during the listen period to the client. Though the seller may reject that offer, it's not Glen's decision to make
Commissions to salespersons or associate brokers must be disclosed at close of escrow a. true b. false
false The name of each employing broker, who represents a party to the transaction, and who will receive compensation from the transaction, must be disclosed prior to close of escrow
Penelope is a salesperson at Mountain Realty. Her real estate license expired on April 30. On May 4, she assisted Mountain Realty's seller client to negotiate a purchase agreement. By close of escrow three weeks later, Penelope had paid a late fee and renewed her license. Her designated broker can pay Penelope a commission a. true b. false
false To be eligible for a sales commission, an individual must have an active real estate license and be affiliated with a broker at the time the commission is earned
After the seller has accepted the offer, the salesperson must immediately deliver a copy of the signed agreement to the a. employing broker b. buyer c. listing broker d. lending institution
buyer Once the seller signs an offer, the salesperson must immediately deliver a copy to the buyer
As long as the well-recognized logo of a brokerage company is clearly visible on the first page of a licensee's website, that should meet the requirements to be "clear and prominent" necessary to avoid being a blind ad a. true b. false
false Two issues here. First, the employing broker's legal name or the doing business as (dba) as contained on the employing broker's license must spelled out in its entirety. For example, if an employing broker's legal or dba name on a license includes "Southweast Valley", that is what it must appear; simply saying "SE" or showing the SE logo is not sufficient. Another issue is that the brokerage name must appear on every page of the website, not just the home page
You're a licensed salesperson and you're holding an open house for your seller client. A prospective buyer comes into the house and looks around. Two days later, he submits an offer on the house, and the seller accepts. That buyer is your client a. true b. false
false Unless you had a verbal agreement, the buyer is most likely not your client, but he is your customer. While you owe the seller client, the entire range of fiduciary obligations, you do owe the buyer customer of the duties of Fair dealing, honesty, and some level of disclosure.
An employment agreement is required in order to create an agency relationship a. true b. false
false While a written employment agreement, such as a listing agreement, is required to ensure compensation for performing real estate activities, an agency relationship can be formed by implication or through other documents, such as the Real Estate Agency Disclosure and Election form. A licensee needs to be aware of the existence of an agency relationship, which imposes those fiduciary obligations
There are 45,360 square feet in one acre a. true b. false
false it is 43,560
A licensee owes a ________ to clients a. controversy b. fiduciary duty c. listing broker or broker's agent d. materially and adversely e. licensed status f. fairly
fiduciary duty
A blind ad refers to an ad that a. provides no price b. provides to address c. gives no indication that the property is listed with the broker d. gives no indication whether the property has or has not been sold
gives no indication that the property is listed with the broker A blind ad is one that does not include the name of the listing brokerage company
The Real Estate Commissioner's Rules a. have the force and effect of the law on licensees b. are enacted by legislation c. are part of the Arizona Revised Statutes d. are part of statuary real estate law
have the force and effect of the law on licensees Administrative rules carry the force and effect of law, and violations of the rules can result in administrative discipline
How many real estate brokers may a licensee work for at the same time in Arizona? a. one at a time b. two, with Department approval c. two, if he declares he is inactive d. two, if one is a property manager
one at a time A licensee may work for only one employing broker at a time
After an offer has been accepted by a seller, a license he has a duty to present _______ to the seller, unless instructed otherwise a. lottery, contest, drawing, or game of change b. other offers c. the clients permission d. award or prize e. each party signing the document
other offers
A licensee may disclose the terms of one offer to other offerors only with ________ a. lottery, contest, drawing, or game of change b. offers c. the clients permission d. award or prize e. each party signing the document
the clients permission
All of the following situations require the use of the term "owner-agent" in a ads except when a. the listing agent is a member of the LLC that owns the property b. an owner-licensee's clines is on inactive status c. the owner-license has expired d. a license is offering his/her property for rent
the owner-license has expired If the owner's license is inactive, it is not necessary to include the term "owner-agent"
In which situation would a licensee NOT need to include the wording "owner-agent" in advertising? a. the property is owned by the designated broker but listed by a salesperson b. the peppery is owned by an associate broker who is offering it for rent without listing it with his company c. a commercial property is owned by a licenses salesperson who lists it with her designated broker d. the property is owned by a licensed salesperson and listed by another company
the property is owned by a licensed salesperson and listed by another company If the property is listed with another brokerage company, a licensee who is selling personal property is not required to include "owner-agent" in any advertising
A verbal offer is made by a buyer a. the listing agent must inform the seller but may not counsel the seller how to respond b. the listing agent may refuse the offer c. the seller should be informed and then instruct the agent how to respond d. the buyer's agent is violating Commissioner's Rules by tendering a verbal offer
the seller should be informed and then instruct the agent how to respond Even verbal offers must be presented to the seller, who can accept or reject the offer, although the listing agent must inform the seller that a written offer is required to proceed with the transaction
In order to place a sign on a property, the license must obtain the owner's _________ a. written permission b. employing broker c. clear and prominent d. salesperson
written permission
A licensee may place a "for sale" or "for rent" sign on a property provided he or she has a. written permission form the property owner b. written approval from the listing broker c. oral approval from the property occupant d. oral approval from the property owner and the sign meets local zoning codes
written permission form the property owner Any type of advertising, including a yard sign, requires the written permission of the property owner
Can a real estate licensee say in an ad, "Buy a new home from me and you will receive a free cruise to Alaska"? a. yes b. no
yes A licensee could offer such as premium as long as he discloses the value, the terms and conditions, and the number of premium available. And, or course, the licensee cannot call it an "award", or "prize", or similar term
May a licensee offer to give a client a new washer and dryer for doing business with the licensee? a. yes b. no
yes For clients, a premium - such as new appliances - is no different from a commission reduction or rebate
When advertising a property owned by a licensee, the licensee, must disclose their licensed status by using the wording a. subdivision office d. "owner-agent" c. late fee
"owner-agent"
Which of the following advertising situation's violates Arizona Commissioner's Rules? A. A licensee list the brokerage firm in a Facebook post B. A broker excludes the company name, but indicates the company phone number C. The brokers website shows the company logo more promptly than the company name D. A broker advertises a property she owns and includes the term "owner-agent"
A broker excludes the company name, but indicates the company phone number The occupant name must be included
Which of the following statements is true? A. A buyers agent may offer unlicensed buyer clients a premium such as a big screen TV if they purchase a home B. To encourage sellers to list with him, a licensee may give potential sellers an opportunity to win a cruise in the annual drawing C. A broker may give an Amazon gift card to unlicensed former clients who refer friends to the broker D. Hey subdivision developer may conduct a lottery to solicit potential buyers without obtaining permission from ADRE
A buyers agent may offer unlicensed buyer clients a premium such as a big screen TV if they purchase a home A license he can offer a premium at no cost or reduced cost to unlicensed clients to promote sales. As long as it's not called an award or prize in all terms related to the offer, are clearly disclosed in writing before the person participates in the offer. The other statements are false.
Which statement is true? A. A real estate company's website must have the legal name of the brokerage company on every webpage B. A real estate companies website must have the designated brokers name on every webpage C. A salesperson may advertise a property with an ad that contains only the salesperson's emails address D. When advertising only services, not specific property, the brokerage company is not required
A real estate company's website must have the legal name of the brokerage company on every webpage The brokerage name is required to be on every webpage. The other statements are false.
Which of the following situations would require the "owner-agent" disclosure in an advertisement? Select that apply A. Associate broker Bettina is leasing rental property that she and her husband own B. Broker Bob is leasing space in a strip mall, owned by an LLC in which he is an officer C. Louie, whose license just expired, is selling his primary residence D. Salesperson Bert is selling his vacation home
A. Associate broker Bettina is leasing rental property that she and her husband own B. Broker Bob is leasing space in a strip mall, owned by an LLC in which he is an officer D. Salesperson Bert is selling his vacation home This rule applies to any advertising to sell, lease, or exchange property in which a licensee has an ownership interest. Since Louie does not have an active license, the advertising for the sale of his house does not require this disclosure
Which situation represents a blind add placed by licensee? A. Calvin includes a national franchise logo in an ad, but his brokerage is not affiliated with the company B. Graham put a "for sale" sign in a clients yard with nothing but his phone number C. Lauryn indicates that she's a REALTOR in an ad for brokerage services, but she is not a member of the NA D. Phil is selling his property through his brokerage, but does not include "broker-owned" on the sign
B. Graham put a "for sale" sign in a clients yard with nothing but his phone number A blind ad is defined as any real estate advertisement does not include the business name of the brokerage company. The other examples are also violations of the commissioners rules, however. Do you see something each choice has in common? They are not completely truthful. It should go without saying that any advertisement for property that is placed by a licensed real estate professional should be truthful.
Broker Q receives two bona fide offers. The first offer is from one of her sales people, and the other offer is from another broker. Which offer should Q present? A. Qs sales persons offer only B. The cooperating brokers offer only C. The highest offer D. Both offers
Both offers A licensee must present both offers. It is up to the seller to decide which, if either, is acceptable.
Julie gets her first listing, and in her excitement to market the property, she exaggerates the properties charms by stating it includes an "updated, gourmet kitchen", when, in fact, it simply has a new refrigerator. This might simply be considered an example of puffing A. True B. False
False Advertising could be considered misleading if there is a distinct and reasonable possibility that it will be misunderstood by an ordinary purchaser. There are certain expectations attached to "gourmet" kitchen, after all, and Julie clearly chose those words to lure and potential buyers. Licenses should always strive to be truthful, and present a true picture of the property or service. They are advertising, and be very cautious about stating unsubstantiated opinion. In special circumstances, opinions may be actionable. A court may allow recovery based on opinion stated by an expert hire to give advice, or a person who has superior knowledge, and is acting in a fiduciary relationship. Someone who states in opinion that he, or she doesn't believe may also be held liable
In order for an escrow company to pay compensation to a salesperson or associate broker, the designated broker can give blanket instructions to the escrow company to cover all transactions they handle for the brokerage A. True B. False
False In order for an escrow company to pay compensation to a sales person or associate broker, the designated broker must give escrow a written instruction, in each transaction
As a real estate salesperson, when you get a seller's signature on a listing agreement, you have created an agency relationship between you and the seller a. true b. false
False Legally, the agency relationship is between the seller, who is the principal or client, and you are employing broker. You provide real estate services to the client on behalf of the broker. But you do owe the client the same fiduciary duties.
Seller Susan just accepted an offer to purchase her house for $180,000. The next day, another offer comes in for $175,000 cash. Since Susan has already accepted an offer, listing agent, and is not required to present the new offer to Susan. A. True B. False
False Licensees must submit all offers, made prior to closing, even if the seller has already excepted an offer. Ann could be released from this duty, however, if Susan provides written instructions to cease submitting offers.
Buyers agent Peter tells his client that he overheard the listing agent mention a possible termite problem with the property. By telling the buyer this, Peter has fulfilled his duty of disclosure. A. True B. False
False The Commissioners Rule's require that the disclosure of adverse material facts must be in writing, even if it is just an email
Licensee, Nancy is showing a home to a buyer customer. Since the buyer is not her client, Nancy is not required to disclose the fact that the property is in the vicinity of a municipal airport. A. True B. False
False This information is something that licensees must disclose to both clients and non-clients.
T earned his first real estate license on March 4. When does it expire? a. December 31 of that year b. March 4 of the following year c. December 31 of the following year d. March 31 in two years
March 31 in two years Arizona real estate licensees are required to renew their license every two years, no later than the last day of the month in which the license was issued
A salesperson is offering a free gift certificate as part of a marketing plan. According to commissioners rules, which of the following would not be required to be disclosed in the ad? A. Date the offer expires B. Terms and conditions C. Name of the specific store D. Specific restrictions
Name of the specific store The Name of the specific store is not required to be included in the ad, but the other information is required
June, A small business owner, is moving out of state and needs to sell her home as well as her store property. Broker Harold, tell seller June that he will take a lower commission on the sale of her house if she list her commercial property with him, too. Do you think Harold must disclose his arrangements to the buyer of June's house? A. Yes B. No
No Harold's arrangement with June does not need the disclosure obligations we just discussed. He has a fiduciary relationship with June, in their relationship any separate commercial real estate transaction does not impact the sale of June's home and should be irrelevant to the buyer.
When advertising via a webpage, which of the following is true? A. The brokers name must appear on the homepage B. The licensees name must appear prominently on every page, without the viewer, having to scroll down to see it C. The brokers name must appear prominently on every page, without the viewer, having to scroll down to see it D. Arizona regulations do not apply if the webpage advertising is targeting out-of-state residents
The brokers name must appear prominently on every page, without the viewer, having to scroll down to see it The requirement to include the name of the brokerage company, applies to electronic advertisements as well as print advertisements. It must be seen in a clear and prominent matter and So the viewer should not have to scroll down to see it
Licensee Paul is working with buyer client Veronika. After looking at 15 houses, she sees one that she likes, but it's still reluctant to make a firm offer. Instead, she asked Paul to draft a lease agreement with her offer to rent the property for six months and she will pay $1600 a month. Paul gives the offer to lease to listing agent Stan, who must present it to his seller client A. True B. False
True The requirement to present all offers, applies to offers to purchase as well as offers to lease the listed property
Broker Marie works for AEC Realty in Scottsdale. Her mother is selling her house in Sedona, Marie gets the listing for AEC. Since her family name as well known in the Sedona area - and AAEC Realty is not - Marie puts up a yard sign with just her name on it. This is an example of a blind ad A. True B. False
True A blind ad is any real estate advertisement used by licensee that does not include the employing broker business name
Listing agent, Cara reads an article that black front doors can add as much as $2000 to the sales price of a home. She uses her photo editing skills to change the door color of a listed property from green to black for the ad she put on her website. This could be a violation of the Commissioner's Rule. A. True B. False
True Altering a properties, photo and a listing or an ad could be considered an example of misrepresentation. Any advertisement, that is false, misleading, or deceptive is prohibited. Earlier, we discussed the definition of the blind ad, which is one that does not include the name of the employing broker/company name. The commissioners Rule provide the additional requirement that the employing brokers name must be displayed in a clear and prompt in it matter.
Broker Bart of Jackson Powers Realty places this ad for a listed property on his website: " move-in ready condo in trendy Eagle Tower. Contact Bart at jprealty.com to schedule a showing." This ad violated the Commissioner's Rules A. True B. False
True As long as the ad includes the name of the broker, it is not a blind ad. In this case, though, simply including the contact information of the broker - whether it is a post office, box number, telephone number, street address, Internet, web address, or email address - it's not enough, if the brokerage company name is not included. This, too, would be a prohibited, blind ad, whether it's printed, broadcasted, or on the Internet.
Licensee Matilda is running late for an appointment to show the buyer client a house, so she just canceled the appointment. This happens a second time with a different house later that week because Matilda is just so busy. This could put Matilda at risk for an administrative discipline. A. True B. False
True Matilda is not only neglecting her duty of loyalty to her by her client, but she is not acting expeditiously, meaning, with speed and efficiency. This is a violation of Commissioners Rules.
Buyer Susan is looking for a home that is large enough for her to set up a small tailoring shop in the garage. You know that the homeowners association in the community where she wants to buy prohibits any type of home business. This would be a material fact. A. True B. False
True This would indeed be a material fact for this buyer
The brokerage legal name is Jane Doe, inc.. and the dba is Typical Phoenix Real Estate Properties. Which name is to appear on all advertising? a. Typical Properties b. Jane Doe, Inc. c. Typical Phoenix Real Estate Properties d. Typical Real Estate
Typical Phoenix Real Estate Properties Advertising must be made in the name of the brokerage as licensed, which is the dab or "doing business as" name
A licensee shall promptly submit all ____ to the client a. lottery, contest, drawing, or game of change b. offers c. the clients permission d. award or prize e. each party signing the document
offers
The ______ must supervise all advertising a. designated broker b. employing broker c. clear and prominent d. salesperson
designated broker
Of these, which is a duty that a real estate license owes to both clients and customer? a. confidentially b. disclose c. loyalty d. obedience
disclose It may seem counterintuitive at times, but a license. He does owe some degree of disclosure to a customer and a transaction.
Upon execution of any transaction document, a licensee shall deliver a legible copy of the signed document to ____ a. lottery, contest, drawing, or game of change b. other offers c. the clients permission d. award or prize e. each party signing the document
each party signing the document
All advertising must contain the name of the _______ in a ______ manner a. designated broker b. employing broker c. clear and prominent d. salesperson
employing broker clear and prominent
When a salesperson advertises on a website, the a. employing broker's name needs to appear only on the homepage b. employing broker's name must appear on all web pages c. franchise name, if applicable, must spa only on the homepage d. employing broker's name does not need to be advertised
employing broker's name must appear on all web pages Failure to include the employing broker's name would be considered an illegal blind ad
If a licensee fails to renew his or license, the license status is a. expired b. inactive c. lapsed d. suspended
expired If a licensee fails to renew prior to the expiration date, the license is expired and no activates requiring a clines may be conducted
A licensee must deal ________ with non-clients in a transaction a. controversy b. fiduciary duty c. listing broker or broker's agent d. materially and adversely e. licensed status f. fairly
fairly
A dual agent may NOT disclose material facts to either client a. true b. false
false A dual agent must be careful not to disclose confidential information from one party to the other party, especially regarding price, or any other matter, that may adversely affect one of the parties. However, a dual agent is obligated to disclose material facts and defects.
In a fiduciary relationship, an agent is expected to advocate for all parties, including clients and customers a. true b. false
false Agent only owes their client a higher standard of good faith than they owe the other parties or customers
A licensee is prohibited from presenting offers once the listing has expired A. True B. False
false Although no required, a license may voluntarily submit offers after the listing agreement is terminated
Brandy, a licensed real estate agent, took a seller's listing but later decided she wants to buy the property herself. Brandy can purchase the property for herself a. after the listing agreement expires b. if she gets someone else to represent the seller c. if she has disclosed to the seller that she is the buyer d. never; a licensee cannot purchase one of her own listings
if she has disclosed to the seller that she is the buyer A listing agent cannot represent self and client in the same transaction, therefore may not purchase the priority as discussed in an earlier the earlier season
If a license is not renewed in a timely manner, the licensee is charged a _________ a. subdivision office d. "owner-agent" c. late fee
late fee
A person shall not solicit, sell, or offer to sell an interest in a development by conducting a ____ To influence a purchaser or prospective purchaser a. lottery, contest, drawing, or game of change b. other offers c. each party signing the document d. award or prize e. each party signing the document
lottery, contest, drawing, or game of change
Which of these do you think would least likely be considered a martial fact? a. the buyer loses her job b. loud neighbors c. previous terminate infestation d. wrapped window frames
loud neighbors Information about the condition of the property is usually considered to be material and a change in the buyers finances could result in a loan denial. Of these options, loud neighbors would least likely be material
Tori is an associate broker for A1 Realty. She and her husband have decided to sell their house themselves without listing it with a broker. If Tony does not include the name A1 Realty on a FSBO sign she places in the front yard of her house, do you think she could be accused of placing a blind ad? A. Yes B. No
no A blind ad is one that does not include the name of the listing brokerage. However, Tony is required to include "Owner-agent" on her yard sale sign
Associate broker Danny is the branch manager of ABC Realty's Flagstaff office. He has been given only the authority to perform basic office management tasks and sign deposit slips for the office trust account. Do you think that Danny is required to complete 30 hours of CE before renewing his license? a. true b. false
no Since Danny has no more author over the branch office than a licensed salesperson, he is not required to complete 30 hours of CE, nor take the three Broker Management Clinic courses as part of his continuing education requirement. He could choose to take those courses as part of his 24-hour requirement
A licensee would NOT have to report which of the following incidents to the Commissioner? a. adverse judgement in a civil lawsuit b. speeding tickets c. misdemeanor conviction for drunk driving d. revocation of an appraiser's license
speeding tickets Licensees are not required to report minor traffic violations to the Commissioner. DUIs and/or reckless driving, adverse judgements, convictions, licenses denial or revocation, these all must be reported
A branch office license is not required for an on-site _____ a. subdivision office d. "owner-agent" c. late fee
subdivision office
Licensee Cynthia of Magnolia Realty places this ad for a listed property: "Cozy cottage in popular historic district. Call Cynthia at 555-9876 for a showing." This ad violated the Commission's Rules a. true b. false
true A licensee cannot advertise the sale, purchased, exchange, rent, or lease of any real estate for others in any way that makes it seem as though the offer implies no license he is involved in the transaction, or without the involvement of the brokerage. Any advertisement that does not indicate that it is from a brokerage firm, is considered to be an illegal blind advertisement. In other words, the name of the employing broker must appear in all ads. Cynthia did not include the name of her brokerage company, so this is a prohibited blind ad.
An Arizona real estate salesperson also holds a real estate salesperson license in California. When California license is revoked for violations of California, she must inform the Arizona Department of Real Estate within 10 days a. true b. false
true An Arizona license has 10 to inform the Department of such administrative discipline, regardless of the jurisdiction. To not do so would be considered an example of misconduct
Listing agent Lois decides she wants a video of her seller clients home. She calls the videographer, who tells her he is free right now to shoot the video now. Lois can't get hold of her clients, and so she gives the videographer the code to her lock box so he can access the house. This is a violation of Commissioner's Rules a. true b. false
true It is a violation of Commissioner's Rules to allow an unauthorizes person to have access to a seller's property. Even though pre-possession or post-possession is allowable with a written agreement, it does present a significant risk to the brokerage and the buyer and seller. There are numerous example of prepossession agreements gone wrong, and the designated broker may be liable for damages
A licensee who performs real estate activities beyond his employing broker's expertise is held to the same standards as someone who is an expert in that field a. true b. false
true It is presumed that a licensee who offers a particular service can perform at the level of an expert. Since the designated broker must supervise those activities, it's important to define the scope of a. brokerages permitted activities. That's also important to consider when talking about an agent's fiduciary duty of reasonable skill and care
As Ben walks some prospective buyers through his seller's house, he can't help but gush about the backyard. "I have never seen such grogeous landscaping: this could be in House and Garden magazine," he says. This is an example of puffing a. true b. false
true Puffing is a superlative statement about the quality of the property that may be difficult to back up with proof, and should not be considered an assertion of fact. It is reasonable to conclude that buyers can't decide whether or not the landscaping is that good on their own. Puffing is not illegal, but then should still take care to be truthful. Because of their nonfactual or exaggeration nature, opinions and puffing are usually not consider to be deceptive or misleading. To prove liability for making a false statement, it is generally necessary to show that the person relied on the statement when making a decision to buy.
Real estate professionals who represent a client must represent that client's interest as they would their own interest a. true b. false
true Real estate professionals must represent their clients and their clients' interests just as they would represent their own interests. This is a requirement that must be carried out by activities and not just words
When a real estate license gets married and takes her new husband's las name, she must report her legal name change tot he ADRE within 10 days a. true b. false
true The Commissioner's Rules indicate that a name change must be reported to the Department within 10 days
When a licensee represents only one party in a transaction, the license has a duty to disclose any and all information that may benefit the clients interest a. true b. false
true The agent in a single agency relationship must disclose anything that may benefit - or harm - the clients interest
Licensee Lisa maintains her own website where she blogs about hot topics in real estate. Her website must be reviewed by her designated broker a. true b. false
true The definition of advertising is very broad and encompasses nearly all media, including a licensee's blog.
The duty of loyalty means that an agent must negotiate a lower selling price even if it means that as he will earn less commission a. true b. false
true They duty of loyalty required an agent to put the client's best interests ahead of her own
If the employing broker had paid a commission to Penelope despite her license being expired, the broker could face disciplinary action a. true b. false
true When Penelope renewed her expired license, she had to specify whether she conducted activities requiring a license after the license expired, along with details of any such activities and a written explanation of why it occurred. The Commissioner could choose to take disciplinary action against someone who engages in unlawful license activity for longer than 30 days, who has previously conducted unlawful license activity, or who is the subject of a pending complaint. In this case, the broker would be paying commission to an unlicensed individual, which is itself a violation of the Commissioner's Rules and could subject the broker to possible discipline
