AZ RE Broker flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Arizona employing broker
- The licensed broker who sponsors affiliated salespersons and associate brokers, supervises their licensed activity, reviews transaction files, and remains accountable to ADRE for their compliance.
- Sponsorship requirement
- A salesperson must be affiliated with and sponsored by a licensed employing broker to perform licensed acts; without sponsorship the license is inactive and licensed activity is prohibited.
- Continuing education
- Renewal requirement that licensees complete the Commissioner-prescribed education hours, including mandatory contract and Commissioner's Rules topics, within each license cycle.
- Affidavit of Disclosure
- A statutory disclosure used for sales of five or fewer parcels of unincorporated land, addressing access, water, power, and other off-site conditions affecting the property.
- Seller Property Disclosure Statement
- A statutory form completed by the seller disclosing known conditions and material facts about the property; the buyer's receipt timing affects inspection and cancellation rights.
- Cure period
- A contract timeline allowing a party in breach to remedy the breach after written notice; failure to cure permits the non-breaching party to pursue contract remedies.
- Designated brokerage
- An arrangement in which different licensees within the same brokerage represent the buyer and seller, while the broker remains neutral and supervises both sides.
- Broker policy manual
- Written procedures the employing broker maintains covering agency, advertising, trust accounts, transaction files, and complaint handling, as required by Commissioner's Rules.
- Broker contract review
- The broker's review of each purchase contract and related documents within the contract's stated review period, correcting deficiencies before deadlines expire.
- Dual agency
- Representation of both buyer and seller by the same brokerage, permitted only with informed written consent of all parties and written confirmation of limited representation.
- Fiduciary duties
- Obligations owed by an agent to a principal, including loyalty, obedience to lawful instructions, disclosure, confidentiality, reasonable care, and accounting for funds.
- Confidentiality duty
- The agent's obligation not to reveal a principal's confidential information; it survives termination but does not permit concealing known material facts about the property.
- Statute of Frauds
- Legal rule requiring real estate contracts, deeds, and certain agreements to be in writing and signed by the party to be charged to be enforceable.
- Inspection period
- A contract period during which the buyer may inspect the property and, for stated reasons, cancel and recover earnest money before the period expires.
- Counteroffer
- A response that changes the terms of an offer; it terminates the original offer and becomes a new offer that the other party may accept or reject.
- Loan contingency
- A contract provision allowing the buyer to cancel and recover earnest money if financing is not obtained by the stated loan contingency deadline.
- Community property
- Arizona marital property form in which most property acquired during marriage is owned equally by both spouses, with specific rules on management and transfer.
- Joint tenancy
- Co-ownership with right of survivorship requiring equal shares and the four unities of time, title, interest, and possession; the deceased owner's share passes to survivors.
- Deed of trust
- A three-party security instrument in which the borrower conveys title to a trustee to secure a debt; it commonly includes a power of sale for nonjudicial foreclosure.
- Race-notice recording
- A recording system in which a later purchaser prevails only if it takes without notice of a prior interest and records before that prior interest is recorded.
- Closing Disclosure
- A federal TRID settlement statement that must be delivered to the borrower at least three business days before consummation, itemizing loan terms and closing costs.
- Loan-to-value ratio
- The loan amount divided by the lesser of the appraised value or purchase price, expressed as a percentage; it drives mortgage insurance and underwriting decisions.
- Debt-to-income ratio
- Total monthly debt obligations divided by gross monthly income, expressed as a percentage and used by underwriters to evaluate repayment capacity.
- RESPA
- Federal law governing settlement services that prohibits kickbacks and unearned fees and requires disclosures of affiliated business arrangements and settlement costs.
- Sales comparison approach
- A valuation method that estimates value by adjusting recent comparable sales for differences in location, size, condition, and features relative to the subject property.
- Capitalization rate
- A rate used in the income approach; value equals net operating income divided by the capitalization rate, reflecting risk and return expectations.
- External obsolescence
- A loss in value caused by factors outside the property, such as neighborhood decline or a nearby nuisance, generally incurable by the property owner.
- Highest and best use
- The reasonably probable, legally permissible, physically possible, and financially feasible use that produces the greatest value for the property.
- Nonconforming use
- A use that lawfully existed before a zoning change and may continue, typically terminating if abandoned or if the structure is substantially destroyed.
- Variance
- Administrative relief from a zoning restriction granted upon a showing of hardship, allowing a use or dimension that the ordinance otherwise prohibits.
- CERCLA liability
- Federal law imposing liability for hazardous substance releases on responsible parties, potentially including current owners of contaminated property.
- Three-way reconciliation
- A trust account control that matches the bank statement balance, the checkbook balance, and the total of individual beneficiary ledger balances.