Arizona License LawIntermediateArizona Exam
When an Arizona real estate broker closes their brokerage, they must:
AFile a voluntary license surrender with ADRE and post a notice in the local newspaper informing clients and the public of the brokerage's closure date
BNotify the ADRE, arrange for proper disposition of client trust funds, ensure pending transactions are properly handled, and transfer or release all salesperson licensesCorrect
CTransfer all pending transactions to a licensed competing broker who agrees in writing to complete them, with ADRE's written approval required before any transfer
DMaintain the brokerage's trust account in active status for 90 days after closure to allow all outstanding earnest money deposits to clear and be returned to clients
Why Notify the ADRE, arrange for proper disposition of client trust funds, ensure pending transactions are properly handled, and transfer or release all salesperson licenses Is Correct
Answer B: Notify the ADRE, arrange for proper disposition of client trust funds, ensure pending transactions are properly handled, and transfer or release all salesperson licenses
Closing a real estate brokerage in Arizona requires multiple steps: notifying ADRE, properly distributing or transferring trust account funds to clients, ensuring all pending transactions are properly handled or transferred, arranging for licensees affiliated with the brokerage to affiliate with new brokerages, and maintaining records as required by law.
Key Arizona License Law Terms in This Question
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
State-Specific Concepts
Trust Account RulesDRE Regulation
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