Broker Self Audit Questions
Click
here to link to the Broker Audit Statements before answering the
questions.
(The
second part of
this document has the answer in bold.)
BROKERAGE
1. Signage must be properly affixed to the brokerage office and each
branch
office:
A. on the largest sign
B. on the most visible place
C. at the main entrance
D. on the building wall
2. Signage must be clearly visible with lettering, which
A. can be seen from the street
B. is a minimum of 1" letters
C. is in black letters
D. Just needs to be visible
3. The employing or designated broker’s license certificate must be:
A. Prominently displayed
B. Located on the premises
C. in the broker's file
D. with the broker at all times
4. Salespersons and associate brokers license certificates must be:
A. clearly visible
B. prominently displayed
C. Readily available
D. In their employee files
5. All salespersons and associate brokers license certificates must be:
A. current, reflecting correct office information; and that information
should
match the information on the Department's database.
B. Current and show agent’s home phone number
C. Current with the home address of the licensee
D. all of the above
6. The brokerage names, main office address and addresses for any
branch
offices must:
A. be properly displayed at the main office
B. be the same as what is listed on the Department web site
C. be listed in all advertisements
D. match what is on all licenses.
7. Records may be stored off-site if:
A. it is the broker's home where they are stored
B. it is locked at all times
C. the department is notified in writing of the location
D. it is in the county
8. After a transaction has been closed/terminated,
the
records must be kept for:
A. 7 years
B. 3 years
C. 5 years
D. 2 years
9. After termination, all employee records must be
kept for
A. 6 months
B. 3 months
C. 5 years
D. 7 years
10. If records are kept by electronic means:
A. a legible copy must be furnished to the Department upon request
B. the broker must be able to reconstruct records if originals are
destroyed.
C. they must be kept for 5 years
D. all of the above
11. Agents who advertise as a team/group must:
A. Share all commissions
B. Maintain a current record of the agents on the team and provide that
information to the Department
C. Keep a current record of transactions with the Department
D. Maintain all current agents or team is no longer valid.
12. The designated broker must review, date, and initial all employment
agreements, sales contracts, leases and similar documents within:
A. 48 hours of execution
B. 5 working days of their execution
C. 5 days of their execution
D. 7 days of their execution
13. Who must review and approve all advertising:
A. Owner
B. Agent
C. Designated Broker
D. Marketing Representative
14. The designated broker must check the background of:
A. all of the employees
B. individuals owning 10% or more of the brokerage and who exercise any
control
C. Individuals owning 5% of the brokerage
D. None of the above
EMPLOYMENT AND COMPENSATION
15. Broker may pay compensation to:
A. Any licensee involved in the transaction
B. All employees of the brokerage
C. actively and properly licensed salesperson, associate brokers and
brokerages
D. none of the above
16. No compensation can be sent to:
A. a licensed sales agent
B. an agent's corporation, LLC or General partnership
C. a properly licensed professional corporation or limited corporation
D. an associate broker
17. All salespersons and associate broker may receive compensation if
they are
licensed:
A. as natural licensees
B. as an LLC
C. as a general partnership
D. in another state and not working with an Arizona agent
18. To receive payment directly out of escrow, the broker must:
A. do nothing
B. Authorize in writing, the title company to make payment
C. create an agreement with the salesperson
D. this cannot be done
19. Brokerage and licensees must not:
B. List property outside their own city
C. Sell property outside their county
D. Obtain signatures of owners on a sales contract
without a
Notary
20. With written permission from consumers, agents may do all of the
following
EXCEPT:
A. Receive legal rebates
C. Compensation sharing
D. Profit participation
21. Without an agreement between brokerages, agents may not:
B. Substitute for a vacationing agent of another brokerage
C. Use another agency’s transact coordinator
D. Service a transaction after leaving a brokerage
DISCLOSURES
22. Brokers or agents must disclose all of the following EXCEPT:
A. Disclose agency relationships at earliest practical time, prior to providing services
B. Disclose in writing in a timely manner and a meaningful way
C. Disclose material information when the broker or agent knew or should have know
23. Broker or agents must obtain all of the following EXCEPT:
A. Owners’ permission before assigning listings or property management agreements to another brokerage
B. Owners’ permission before profiting from an assignment
D. Informed consent before representing more than one party to a transaction
24. Broker or agents must do all of the following EXCEPT:
B. Obtain written permission prior to acting outside of one’s expertise
C. Explain the purpose and effect of important documents and provision to clients
D. Disclose their status as licensees in their ads and signage
SALES/LEASE TRANSACTION RECORDS
25. How long must Broker maintain legible copies of transaction documents?
A. One year after termination
B. Three years after termination
D. Seven years after termination
26. How long must nonresidential leases be kept after termination?
A. One year
B. Three years
D. Seven years
27. How long must rejected offers be kept if a binding contract is not accepted?
B. Three years
C. Five years
D. Ten years
28. How should Broker transaction files be kept?
A. Chronologically
B. Alphabetically
C. Systematically
EARNEST DEPOSITS
29. Where should earnest deposits be placed?
A. Title company
B. Office safe
D. Agent’s personal bank account
30. Where should broker place all funds entrusted to him/her?
A. Broker trust account
B. Neutral escrow account
D. Either A or B
31. When should agents place earnest deposits into the broker’s care?
A. Within one week
B. After escrow instruction have been signed
C. Prior to close of escrow
32. All of the following could be an earnest
deposit EXCEPT:
A. Cash, check, or promissory note
B. Cash, Cashier’s Check, promissory note
C. Jewelry, boat, car without an engine
D. A and B only
33. What does a broker NOT have to do if a general trust account is
used?
B. Maintain a descriptive receipt showing disposition of all principal’s funds
C. Maintain a descriptive receipt, Disbursements Journal, and Client Ledger for each transaction.
34. How often should trust account journals and client ledgers be reconciled with bank statements?
A. Daily
B. Weekly
D. Bi-monthly
35. When must interest earnings be removed from a general trust account?
A. Daily
B. Weekly
36. What is the maximum amount, which may be in a Broker’s general trust account?
A. One hundred dollars
B. Three hundred dollars
D. One thousand dollars
37. Who may be an authorized signer on a broker’s general trust account?
A. Spouse of the broker
C. Unlicensed assistants in the employ of the broker
D. A broker in another office, who is a dual agent
DELEGATION OF AUTHORITY
38. A delegation of authority can be:
A. Verbal
B. a brief statement undated and unsigned
C. Kept by delegee only
D. Concise, written and kept on file
39. Where should a copy of each employee delegation be kept?
A. In the Department of Real Estate file
B. In the Better Business Bureau file
D. In the office manager’s file
40. When do you not need a delegation of authority letter in the file?
A. When acting as branch office manager for a licensed branch office
B. When an agent is a signer on a trust account
D. When acting as a temporary broker for just a few hours
41. When do you not need a delegation of authority letter in the file?
A. When an agent is asked to pay commissions to other agents
C. When an agent reviews and approves advertising
D. When a broker delegates authority for an agent to manage property
42. When do you not need a delegation of authority letter in the file?
A. When an agent is asked to review contracts
B. When an agent is asked to date and initial employment agreements
D. When an agent is asked to sign property management agreements
43. Broker Supervision Policy must address:
A. rules and procedures
B. rules and policies
C. policies and procedures
D. policies, rules, procedures and systems
44. Broker Supervision Policy
A. sets standards of dress
B. helps agents learn to be top sellers
C. forces agents to follow rules
D. establishes a system
45. In what year was it clarified that brokerages must have a written Broker Supervision Policy manual?
A. 1999
B. 2001
D. 2003
46. What does the manual not address?
A. Transactions requiring a salesperson’s or broker’s license
B. Use of disclosure forms and contracts
D. Filing, storage and maintaining transaction disclosure documents affecting clients
47. What does the manual not address?
A. Handling of trust funds
C. Use of unlicensed assistants by a salesperson or broker
D. How the DB oversees the delegation of authority to other to act in the DB’s behalf
48. What does the manual not address?
A. How the DB familiarizes agents with state, federal and local real estate laws
B. How the DB reviews and inspects disclosure documents
C. How the DB reviews advertising
D. How many
hours the
agent must spend with FSBOs, expired listings, etc
49. What does the manual not address?
B. How the DB has implemented a system for
monitoring
compliance with the Broker Supervision
Policy Manual
C. How unlicensed assistants can be used by salespersons
D. How unlicensed assistants can be used by Brokers
PROPERTY MANAGEMENT AGREEMENTS
50. Property management agreements may
A. include automatic renewal with a 30 day verbal notice
B. provide for damages for early termination
C. Specify beginning date only
D. be signed by only one party
51. What is not required of property management agreements?
A. Drafted in clear and unambiguous language
B. Specify a beginning and ending date
D. Executed by the appropriate parties
52. What is not required of property management agreements?
A. All material information to the property owner
C. Mutually agreeable cancellation terms
D. Disposition of owner’s monies collected by broker
53. What is not required of property management agreements?
A. Terms and conditions of broker compensation
B. Frequency of reports to the owner
D. Amount of reserve monies for emergencies
54. What is absolutely necessary for property management accounts?
A. Automatic renewal with 30 days advance written notice
B. Liquidated damages for early termination of the agreement
C. To have an unlicensed or licensed person as an
authorized
signer
D. Specify a beginning and ending date
PROPERTY MANAGEMENT RECORDS
55. All financial records must be kept for:
A. 2 years from their date
B. 7 years from their date
C. 5 years from their date
D. none of the above
56. Property management agreements must be kept for:
A. 10 years from termination
B. 3 years from termination
C. 5 years from termination
D. 7 years from termination
57. If not turned over to the owner upon termination, residential
leases are
kept for:
A. 1 year from termination
B. 3 years from termination
C. 5 years from termination
D. 7 years from termination
58. Property managers must keep nonresidential leases for:
A. 1 year from termination
B. 3 years from termination
C. 5 years from termination
D. 7 years from termination
59. Broker must not have an excess of personal funds in a trust account
in the
amount of:
A. $50
B. $300
C. $250
D. $500
60. Property management records MUST NOT include:
A. Receipts
B. Disbursement journal
C. Client ledgers
D. Personal property taxes
61. Records of rental finder fees paid must be kept for how many years from their date?
A. 1 year
B. 3 years
C. 5 years
D. 10 years
62. Nonresidential leases must be filed:
B. Chronologically
C. Alphabetically
D. Reverse Date
63. How must property management agreements be filed?
A. Chronological
B. Alphabetical
C. Reverse date
PROPERTY MANAGEMENT TRUST ACCOUNT
64. A property management descriptive receipt must:
A. give date
B. give names
C. give date and names
D. give transaction, date, amount and parties
65. Property trust account records must include:
A. Property Management Agreement and Signatures of all parties
C. Sales Contract and Earnest money receipt
D. Listing Contract and Sales Agreement
66. What must a broker provide for a property management account?
A. Sales Contract
C. Listing Agreement
D. Escrow Closing Statement
67. When providing property management, what must be in balance?
A. Beginning and ending monthly auditing statements
C. Property Management ledgers
D. Broker’s General Account and the Property Management Account
68. How often do trust accounts have to be reconciled?
A. daily
B. weekly
D. bimonthly
69. If a property manager has authorized signers on a trust account, it
must
NOT be a/an:
A. Secretary
B. unlicensed employee
C. licensed employee
D. husband
70. Money received for property management must be deposited
A. within 24 hours
B. immediately
C. by the third banking day
D. within one week
71. Interest earned on a trust account must be removed every:
A. Month
B. Two months
C. Six months
D. 12 months
72. What words must be on every trust account?
A. “Property Management Account”
B. “In trust for…”
C. “For the account of…”
D. “Rental Account for…”
73. Who should receive the final accounting for a property management trust account, which has been terminated?
A. Broker
B. Designated Sales Person
D. Property Manager
BROKERAGE
1. Signage must be properly affixed to the brokerage office and each
branch
office:
A. on the largest sign
B. on the most visible place
C. at the main entrance
D. on the building wall
2. Signage must be clearly visible with lettering, which
A. can be seen from the street
B. is a minimum of 1" letters
C. is in black letters
D. Just needs to be visible
3. The employing or designated broker’s license certificate must be:
A. Prominently displayed
B. Located on the premises
C. in the broker's file
D. with the broker at all times
4. Salespersons and associate brokers license certificates must be:
A. clearly visible
B. prominently displayed
C. Readily available
D. In their employee files
5. All salespersons and associate brokers license certificates must be:
A. current, reflecting correct office information; and that
information
should match the information on the Department's database.
B. Current and show agent’s home phone number
C. Current with the home address of the licensee
D. all of the above
6. The brokerage names, main office address and addresses for any
branch
offices must:
A. be properly displayed at the main office
B. be the same as what is listed on the Department web site
C. be listed in all advertisements
D. match what is on all licenses.
7. Records may be stored off-site if:
A. it is the broker's home where they are stored
B. it is locked at all times
C. the department is notified in writing of the location
D. it is in the county
8. After a transaction has been closed/terminated,
the
records must be kept for:
A. 7 years
B. 3 years
C. 5 years
D. 2 years
9. After termination, all employee records must be
kept for
A. 6 months
B. 3 months
C. 5 years
D. 7 years
10. If records are kept by electronic means:
A. a legible copy must be furnished to the Department upon request
B. the broker must be able to reconstruct records if originals are
destroyed.
C. they must be kept for 5 years
D. all of the above
11. Agents who advertise as a team/group must:
A. Share all commissions
B. Maintain a current record of the agents on the team and provide
that
information to the Department
C. Keep a current record of transactions with the Department
D. Maintain all current agents or team is no longer valid.
12. The designated broker must review, date, and initial all
employement
agreements, sales contracts, leases and similar documents within:
A. 48 hours of execution
B. 5 working days of their execution
C. 5 days of their execution
D. 7 days of their execution
13. Who must review and approve all advertising:
A. Owner
B. Agent
C. Designated Broker
D. Marketing Representative
14. The designated broker must check the background of:
A. all of the employees
B. individuals owning 10% or more of the brokerage and who exercise
any
control
C. Individuals owning 5% of the brokerage
D. None of the above
EMPLOYMENT AND COMPENSATION
15. Broker may pay compensation to:
A. Any licensee involved in the transaction
B. All employees of the brokerage
C. actively and properly licensed salesperson, associate brokers and
brokerages
D. none of the above
16. No compensation can be sent to:
A. a licensed sales agent
B. an agent's corporation, LLC or General partnership
C. a properly licensed professional corporation or limited corporation
D. an associate broker
17. All salespersons and associate broker may receive compensation if
they are
licensed:
A. as natural licensees
B. as an LLC
C. as a general partnership
D. in another state and not working with an Arizona agent
18. To receive payment directly out of escrow, the broker must:
A. do nothing
B. Authorize in writing, the title company to make payment
C. create an agreement with the salesperson
D. this cannot be done
19. Brokerage and licensees must not:
B. List property outside their own city
C. Sell property outside their county
D. Obtain signatures of owners on a sales contract
without a
Notary
20. With written permission from consumers, agents may do all of the
following
EXCEPT:
A. Receive legal rebates
C. Compensation sharing
D. Profit participation
21. Without an agreement between brokerages, agents may not:
B. Substitute for a vacationing agent of another brokerage
C. Use another agency’s transact coordinator
D. Service a transaction after leaving a brokerage
DISCLOSURES
22. Brokers or agents must disclose all of the following EXCEPT:
A. Disclose agency relationships at earliest practical time, prior to providing services
B. Disclose in writing in a timely manner and a meaningful way
C. Disclose material information when the broker or agent knew or should have know
23. Broker or agents must obtain all of the following EXCEPT:
A. Owners’ permission before assigning listings or property management agreements to another brokerage
B. Owners’ permission before profiting from an assignment
D. Informed consent before representing more than one party to a transaction
24. Broker or agents must do all of the following EXCEPT:
B. Obtain written permission prior to acting outside of one’s expertise
C. Explain the purpose and effect of important documents and provision to clients
D. Disclose their status as licensees in their ads and signage
SALES/LEASE TRANSACTION RECORDS
25. How long must Broker maintain legible copies of transaction documents?
A. One year after termination
B. Three years after termination
D. Seven years after termination
26. How long must nonresidential leases be kept after termination?
A. One year
B. Three years
D. Seven years
27. How long must rejected offers be kept if a binding contract is not accepted?
B. Three years
C. Five years
D. Ten years
28. How should Broker transaction files be kept?
A. Chronologically
B. Alphabetically
C. Systematically
EARNEST DEPOSITS
29. Where should earnest deposits be placed?
A. Title company
B. Office safe
D. Agent’s personal bank account
30. Where should broker place all funds entrusted to him/her?
A. Broker trust account
B. Neutral escrow account
D. Either A or B
31. When should agents place earnest deposits into the broker’s care?
A. Within one week
B. After escrow instruction have been signed
C. Prior to close of escrow
32. All of the following could be an earnest
deposit EXCEPT:
A. Cash, check, or promissory note
B. Cash, Cashier’s Check, promissory note
C. Jewelry, boat, car without an engine
D. A and B only
33. What does a broker NOT have to do if a general trust account is
used?
B. Maintain a descriptive receipt showing disposition of all principal’s funds
C. Maintain a descriptive receipt, Disbursements Journal, and Client Ledger for each transaction.
34. How often should trust account journals and client ledgers be reconciled with bank statements?
A. Daily
B. Weekly
D. Bi-monthly
35. When must interest earnings be removed from a general trust account?
A. Daily
B. Weekly
36. What is the maximum amount, which may be in a Broker’s general trust account?
A. One hundred dollars
B. Three hundred dollars
D. One thousand dollars
37. Who may be an authorized signer on a broker’s general trust account?
A. Spouse of the broker
C. Unlicensed assistants in the employ of the broker
D. A broker in another office, who is a dual agent
DELEGATION OF AUTHORITY
38. A delegation of authority can be:
A. Verbal
B. a brief statement undated and unsigned
C. Kept by delegee only
D. Concise, written and kept on file
39. Where should a copy of each employee delegation be kept?
A. In the Department of Real Estate file
B. In the Better Business Bureau file
D. In the office manager’s file
40. When do you not need a delegation of authority letter in the file?
A. When acting as branch office manager for a licensed branch office
B. When an agent is a signer on a trust account
D. When acting as a temporary broker for just a few hours
41. When do you not need a delegation of authority letter in the file?
A. When an agent is asked to pay commissions to other agents
C. When an agent reviews and approves advertising
D. When a broker delegates authority for an agent to manage property
42. When do you not need a delegation of authority letter in the file?
A. When an agent is asked to review contracts
B. When an agent is asked to date and initial employment agreements
D. When an agent is asked to sign property management agreements
43. Broker Supervision Policy must address:
A. rules and procedures
B. rules and policies
C. policies and procedures
D. policies, rules, procedures and systems
44. Broker Supervision Policy
A. sets standards of dress
B. helps agents learn to be top sellers
C. forces agents to follow rules
D. establishes a system
45. In what year was it clarified that brokerages must have a written Broker Supervision Policy manual?
A. 1999
B. 2001
D. 2003
46. What does the manual not address?
A. Transactions requiring a salesperson’s or broker’s license
B. Use of disclosure forms and contracts
D. Filing, storage and maintaining transaction disclosure documents affecting clients
47. What does the manual not address?
A. Handling of trust funds
C. Use of unlicensed assistants by a salesperson or broker
D. How the DB oversees the delegation of authority to other to act in the DB’s behalf
48. What does the manual not address?
A. How the DB familiarizes agents with state, federal and local real estate laws
B. How the DB reviews and inspects disclosure documents
C. How the DB reviews advertising
D. How many hours the agent must spend with FSBOs, expired listings, etc
49. What does the manual not address?
B. How the DB has implemented a system for
monitoring
compliance with the Broker Supervision
Policy Manual
C. How unlicensed assistants can be used by salespersons
D. How unlicensed assistants can be used by Brokers
PROPERTY MANAGEMENT AGREEMENTS
50. Property management agreements may
A. include automatic renewal with a 30 day verbal notice
B. provide for damages for early termination
C. Specify beginning date only
D. be signed by only one party
51. What is not required of property management agreements?
A. Drafted in clear and unambiguous language
B. Specify a beginning and ending date
D. Executed by the appropriate parties
52. What is not required of property management agreements?
A. All material information to the property owner
C. Mutually agreeable cancellation terms
D. Disposition of owner’s monies collected by broker
53. What is not required of property management agreements?
A. Terms and conditions of broker compensation
B. Frequency of reports to the owner
D. Amount of reserve monies for emergencies
54. What is absolutely necessary for property management
accounts?
A. Automatic renewal with 30 days advance written notice
B. Liquidated damages for early termination of the agreement
C. To have an unlicensed or licensed person as an
authorized
signer
D. Specify a beginning and ending date
PROPERTY MANAGEMENT RECORDS
55. All financial records must be kept for:
A. 2 years from their date
B. 7 years from their date
C. 5 years from their date
D. none of the above
56. Property management agreements must be kept for:
A. 10 years from termination
B. 3 years from termination
C. 5 years from termination
D. 7 years from termination
57. If not turned over to the owner upon termination, residential
leases are
kept for:
A. 1 year from termination
B. 3 years from termination
C. 5 years from termination
D. 7 years from termination
58. Property managers must keep nonresidential leases for:
A. 1 year from termination
B. 3 years from termination
C. 5 years from termination
D. 7 years from termination
59. Broker must not have an excess of personal funds in a trust account
in the
amount of:
A. $50
B. $300
C. $250
D. $500
60. Property management records MUST NOT include:
A. Receipts
B. Disbursement journal
C. Client ledgers
D. Personal property taxes
61. Records of rental finder fees paid must be kept for how many years from their date?
A. 1 year
B. 3 years
C. 5 years
D. 10 years
62. Nonresidential leases must be filed:
B. Chronologically
C. Alphabetically
D. Reverse Date
63. How must property management agreements be filed?
A. Chronological
B. Alphabetical
C. Reverse date
PROPERTY MANAGEMENT TRUST ACCOUNT
64. A property management descriptive receipt must:
A. give date
B. give names
C. give date and names
D. give transaction, date, amount and parties
65. Property trust account records must include:
A. Property Management Agreement and Signatures of all parties
C. Sales Contract and Earnest money receipt
D. Listing Contract and Sales Agreement
66. What must a broker provide for a property management account?
A. Sales Contract
C. Listing Agreement
D. Escrow Closing Statement
67. When providing property management, what must be in balance?
A. Beginning and ending monthly auditing statements
C. Property Management ledgers
D. Broker’s General Account and the Property Management Account
68. How often do trust accounts have to be reconciled?
A. daily
B. weekly
D. bimonthly
69. If a property manager has authorized signers on a trust account, it
must
NOT be a/an:
A. Secretary
B. unlicensed employee
C. licensed employee
D. husband
70. Money received for property management must be deposited
A. within 24 hours
B. immediately
C. by the third banking day
D. within one week
71. Interest earned on a trust account must be removed every:
A. Month
B. Two months
C. Six months
D. 12 months
72. What words must be on every trust account?
A. “Property Management Account”
B. “In trust for…”
C. “For the account of…”
D. “Rental Account for…”
73. Who should receive the final accounting for a property management trust account, which has been terminated?
A. Broker
B. Designated Sales Person
D. Property Manager