Arizona Real Estate Study Set with Questions and Answers

Real estate law is based on both statutory and common law Statutory law can be divided into Federal, state and local classifications Common law is based on tradition, custom and usage and is generally unwritten in statute or code. Common law was developed in England and transferred to the United States by the early colonists. Common law is also derived from judicial decisions. Common law is the basis for the legal system where? Throughout the United States with the exception of Louisiana. What effect does common law have in AZ? the same effect as statutory law, unless a statute has bee passed to the contrary. A brokerage the business of bringing buyers and sellers together in the marketplace for a commission. Brokerages may specialize in: residential, commercial, industrial, or farm and agricultural properties, property management or leasing or exchanging. Property development includes: sub-dividers who take raw land, do the initial planning for its best use by subdividing it into lots and after approval do the initial development of the streets, sewers, sidewalks, etc. Land developers improve lots by adding buildings Business brokers brokers who sell businesses If a licensed real estate salesperson is an independent contractor, the employing broker is NOT responsible for the acts of the salesperson. False Commissions paid to independent contractor real estate salespersons can be paid: by the employing broker only.