AZ Real Estate key terms

The state agency that licenses brokers and salespersons, enforces Arizona real estate law, investigates complaints against licensees, and administers the recovery fund. Its detailed regulations appear in the Arizona Administrative Code.

The governor-appointed official who heads the Arizona Department of Real Estate, adopts rules, and holds authority to investigate, fine, suspend, or revoke a license.

Regulations adopted by the Arizona Real Estate Commissioner and codified in Title 4, Chapter 28 of the Arizona Administrative Code; they supply the detailed operating requirements that the statutes only outline.

A state fund, built from license fees and court-ordered reimbursements, that can pay a consumer who holds an unpaid judgment against a licensee for fraud or misrepresentation in a real estate transaction, up to statutory limits.

The licensed broker who is responsible for a real estate office and must supervise every salesperson and associate broker licensed under that entity; each office is required to have one.

A license held by an individual who performs real estate acts on behalf of a employing broker. A salesperson may not work independently or accept compensation directly from a client.

A written contract in which a seller or buyer employs a broker to perform services, stating the term, the compensation, and the duties of each party. Arizona rules require it to be written and signed.

A written contract employing a broker to represent a buyer, setting out the broker's agency duties, the length of the relationship, and how compensation is earned, including any amount owed if the buyer purchases elsewhere.

A written notice given to a consumer at or before the first substantive discussion, stating whom the licensee represents and explaining that the licensee may act for both sides only with written consent.

A written agreement in which buyer and seller both allow one licensee to act for both sides in the same transaction; the licensee must treat each fairly while protecting each party's confidences.

An arrangement in which a broker assisting a listing broker also represents the seller rather than the buyer. Arizona rules require written disclosure and consent before a licensee acts as a subagent.

The duties owed to a client: loyalty, obedience to lawful instructions, disclosure of material information, confidentiality, accounting for money and documents, reasonable care and skill, and staying within granted authority.

The duty to tell a client, or in some cases a customer, about facts that could affect a reasonable person's decision to buy, sell, or lease, such as known defects, liens, or pending litigation.

The legal rule that certain agreements must be written and signed to be enforceable, including real estate purchase contracts, leases longer than one year, and promises to pay another's debt.

A definite proposal to contract on stated terms, plus the other party's unqualified agreement to those exact terms. Together with consideration, they create a binding contract.

A reply that changes the terms of an offer. It rejects the original proposal and places a new offer on the table that the other party may accept, reject, or change again.

A contract condition that must be satisfied or waived before performance is required, such as an inspection, appraisal, financing approval, or the buyer's sale of a current home.

A deposit a buyer puts up to show good faith. It is held in escrow and later applied to the purchase price or released to one party under the contract's terms.

A contract clause that fixes a set amount, often the earnest money, as the seller's remedy if the buyer breaches without a contractual excuse, instead of requiring proof of actual loss.

The standard form widely used in Arizona to buy and sell resale homes; it covers price, inspection and financing periods, title and closing, possession, and the parties' warranties and remedies.

A written notice from one party to the other identifying a breach and starting a short stated period to correct it before the notifying party may cancel or pursue other remedies.

A standard Arizona form on which a seller of residential property reports known conditions and defects, such as roof or plumbing repairs, water problems, insurance claims, and lawsuits affecting the property.

A three-party security instrument used in Arizona in place of a mortgage; the borrower conveys title to a trustee who may sell the property at the lender's request if the borrower defaults.

A nonjudicial foreclosure carried out by the trustee named in a deed of trust, following the statutory notice periods, without filing a lawsuit in court.

Arizona law that generally prevents a lender from pursuing a borrower personally for a shortfall after a trustee's sale on certain purchase-money loans secured by a dwelling on 2.5 acres or less.

Federal disclosure forms: the Loan Estimate summarizes the loan terms and estimated costs soon after application, while the Closing Disclosure lists final loan terms and settlement costs before closing.

A neutral third party, commonly used in Arizona closings, that holds funds and documents and releases them only when the written instructions and contract conditions have been satisfied.

A policy protecting an owner or lender against loss from title defects, liens, or claims that existed before the policy date but are not listed as exceptions in the policy.

A form recorded with the county when real property changes hands, stating the sale price and transaction details; Arizona statutes list limited exemptions from the filing requirement.

In Arizona, property a married couple acquires during the marriage through the labor or effort of either spouse; each spouse generally holds a one-half interest in it.

Property one spouse owns alone, such as property owned before the marriage, received by gift or inheritance, or acquired after a dissolution petition is served, and kept apart from marital funds.

Co-ownership in which two or more people hold equal undivided shares, and a deceased owner's share passes automatically to the surviving owners without going through probate.

An Arizona recording device that names who receives real property when the owner dies, avoiding probate, while the owner keeps full rights to use, sell, or mortgage the property during life.

A sworn statement Arizona requires from a seller of five or fewer parcels of unincorporated land, disclosing matters such as zoning, water, utilities, access, and nearby条件 before the sale closes.

An Arizona requirement in Active Management Areas that a subdivision demonstrate a 100-year assured water supply from a recognized source before its lots may be sold.

The reasonably probable use of a property that is legally permissible, physically possible, financially feasible, and produces the greatest value, as analyzed in appraisals.

A licensee's study of recently sold, pending, and active listings to estimate a likely sale price; it is an opinion of price, not an appraisal, and must be presented honestly.

A separate bank account a broker uses to hold client, tenant, and owner funds such as rents and security deposits, with recordkeeping and reconciliation required by the Commissioner's rules.