The State of Arizona Real Estate Candidate Handbook

B. Environmental issues1. Mold2. Radon3. Protected species4. OtherC. Material and other property disclosuresD. Liability considerationsV. Federal laws governing real estate activities(Salesperson 8, Broker 9)A. Civil Rights Acts/Fair Housing Acts1. Provisions2. Violations3. Enforcement/penalties4. Exceptions5. Advertising6. Required posterB. Americans with Disabilities Act (ADA)C. Antitrust – (Sherman Act, etc.)D. Marketing and financial controls1. Truth in Lending Act (TILA—Regulation Z)2. Real Estate Settlement Procedures Act (RESPA)3. Equal Credit Opportunity Act (ECOA)4. Equal Employment Opportunity Commission(EEOC)5. UCC/Interstate/Securities (Broker only)6. Do Not Call/Privacy ActVI. Financing the transaction and settlement(Salesperson 17, Broker 13)A. Financing components1. Financing instruments2. Financing sources (primary and secondarymortgage markets, seller financing)3. Types of loans4. Financing clauses, terminology, and cost ofmoney (calculation)5. Lending issuesB. Lender requirements and obligations1. Private mortgage insurance (PMI)2. FHA requirements3. VA requirements4. Escrow/impound account5. Credit report6. Assumption requirements7. Appraisal requirements8. Hazard and flood insurance9. Federal financing and credit regulationC. Settlement/Closing1. Procedures and forms2. Closing costs and calculations3. Documents, title, and recordingVII. Leases, rents, and property management(Salesperson 5, Broker 6)A. Types and elements of leases1. Leasehold estates2. Types of leases3. Lease clauses and provisionsB. Lessor and lessee rights, responsibilities, liabilities,and recourse1. Owned and leased inclusions2. Reversionary rights of owners3. Rental related discriminatory laws4. Unit-related disclosures5. Effect of sale/transfer/foreclosure6. Evictions7. Tenant improvements8. Termination of a lease9. BreachC. Property management contracts and obligations ofparties1. Contracts and contractual relationships2. Manager’s obligations, duties, liabilities3. Owner’s obligations, duties, liabilities4. Management/owner math calculationsVIII. Brokerage operations (Salesperson 3, Broker 7)A. Broker management of funds1. Earnest money2. Commingling3. Conversion of fundsB. Broker-salesperson relationshipC. AdvertisingD. Ethical and legal business practices1. Misrepresentation2. Implied duty of good faith3. Due diligence4. Unauthorized practice of law5. Marketing practicesE. Forms of business ownership1. Corporation2. Partnership (general and limited)3. Limited liability company4. Sole proprietorshipF. Independent contractors vs. employeepage 14State of Arizona