AZ - Property Condition and Disclosures and Consumer
Protection in AZ – Flashcards Questions With Complete
Solutions
A building permit is required in Arizona when the ______
and/or electrical, gas, plumbing, or mechanical systems are
affected. Correct Answers Structure
A homeowner must hire a licensed contractor to perform
construction projects if a permit is required or if the cost of the
project exceeds ______. Correct Answers $1,000
Accident potential zones Correct Answers Areas surrounding
runways and military facilities that are incompatible with land
uses involving high concentrations of people
Actions Against Contractors
If consumers win the judgment, they may apply to the court for
an order to collect from the fund any amount that remains
unpaid, on 20 days' written notice to the AZ ROC. The agency
may object in writing to the court, and the court will give the
agency the opportunity to present and defend its objections.
Correct Answers
Advice for Buyers and Sellers
Some advice that won't go beyond the scope of your license that
you can give your buyer and seller clients is to:
* Get three estimates for the work.
* Select a worker who's bonded and insured.
* Make sure the scope of the project, the final cost, the
responsibility to obtain building permits, and other relevant
,terms are included in the written contract, and have your client
consult an attorney with any questions about the contract terms.
* Never pay in cash. Correct Answers
Affidavit of Disclosure Correct Answers When five or fewer
parcels of land are being conveyed in an unincorporated area,
sellers must also provide buyers with an affidavit of disclosure,
to be recorded along with the deed of transfer at least seven days
before closing. The buyer must acknowledge receipt of the
affidavit and then has five days to rescind the contract.
Airport influence area Correct Answers Areas that are near
enough to or affected by public and private airports or military
bases that their proximity to a property needs to be disclosed
Arizona Registrar of Contractors Correct Answers Licenses
and regulates contractors in the state
At the Hearing
At the hearing, consumers are required to prove that they have:
* Notified the AZ ROC
* Obtained a final judgment, including the amount awarded and
the amount left unpaid
* Sought restitution against the bond that covers the contractor
and haven't collected $30,000 or more
* Looked into the debtor's assets to see if they could satisfy the
judgment and were unsuccessful Correct Answers
AZ ROC Duties Regarding the Fund
In administering the fund, the agency has certain duties and
powers, such as:
,* Setting assessments to maintain a sufficient balance.
* Having a certified public accountant examine the fund every
three years.
* Filing an annual statement with the department of insurance.
* Employing attorneys and accountants as needed to handle
fund-related business, paid from the fund with costs not to
exceed $10,000 per fiscal year.
* Engaging people and obtaining equipment that are necessary
to process, oppose, or monitor claims, paid from the fund with
costs that are 14% or less of the fund's total amount per fiscal
year.
* Promoting the fund's existence to consumers using the fund's
interest money, spending no more than $50,000 per fiscal year to
do so. Correct Answers
AZ ROC Facts
To protect the public, the AZ ROC is in charge of licensing and
regulating contractors in Arizona. Read each of the following
options and determine which five are AZ ROC duties and
powers. Correct Answers * Obtain criminal history information
from the Department of Public Safety and other law
enforcement agencies during investigations.
* Refer criminal violations to law enforcement or prosecutors.
* Provide educational programs for consumers and contractors.
* Hold hearings.
* Conduct investigations.
Bailey just graduated from college with a degree in construction
management, and he wants to apply for a contractor's license.
Where should he submit his application? Correct Answers
Arizona Registrar of Contractors
, building permit Correct Answers A building permit is required
in Arizona if the structure, electrical, gas, plumbing, and
mechanical systems are affected.
Buildings and Add-Ons Without Permits
We've mentioned that work requiring a permit also requires a
licensed contractor to do it. Arizona requires building permits
for jobs such as:
* Constructing, expanding, moving, demolishing, or altering the
occupancy or use of a structure
* Installing, expanding, converting, removing, or replacing
regulated building systems, such as electrical, gas, mechanical,
or plumbing systems
Of course, not all work requires a permit, so exemptions apply.
Let's take a look at those. Correct Answers
Busted!
Kyle was busted for performing contract work without a license
outside of the handyman exemption. Determine if the penalty
described is something he can expect to face.
1) Maximum term of six months in county jail
2) Maximum fine of $2,500, plus an 83% surcharge for multiple
offenses
3) Minimum fine of $1,000, plus an 83% surcharge for the first
offense
4) Maximum term of one year in prison
5) Restitution to be paid to anyone who suffered an economic
loss
Protection in AZ – Flashcards Questions With Complete
Solutions
A building permit is required in Arizona when the ______
and/or electrical, gas, plumbing, or mechanical systems are
affected. Correct Answers Structure
A homeowner must hire a licensed contractor to perform
construction projects if a permit is required or if the cost of the
project exceeds ______. Correct Answers $1,000
Accident potential zones Correct Answers Areas surrounding
runways and military facilities that are incompatible with land
uses involving high concentrations of people
Actions Against Contractors
If consumers win the judgment, they may apply to the court for
an order to collect from the fund any amount that remains
unpaid, on 20 days' written notice to the AZ ROC. The agency
may object in writing to the court, and the court will give the
agency the opportunity to present and defend its objections.
Correct Answers
Advice for Buyers and Sellers
Some advice that won't go beyond the scope of your license that
you can give your buyer and seller clients is to:
* Get three estimates for the work.
* Select a worker who's bonded and insured.
* Make sure the scope of the project, the final cost, the
responsibility to obtain building permits, and other relevant
,terms are included in the written contract, and have your client
consult an attorney with any questions about the contract terms.
* Never pay in cash. Correct Answers
Affidavit of Disclosure Correct Answers When five or fewer
parcels of land are being conveyed in an unincorporated area,
sellers must also provide buyers with an affidavit of disclosure,
to be recorded along with the deed of transfer at least seven days
before closing. The buyer must acknowledge receipt of the
affidavit and then has five days to rescind the contract.
Airport influence area Correct Answers Areas that are near
enough to or affected by public and private airports or military
bases that their proximity to a property needs to be disclosed
Arizona Registrar of Contractors Correct Answers Licenses
and regulates contractors in the state
At the Hearing
At the hearing, consumers are required to prove that they have:
* Notified the AZ ROC
* Obtained a final judgment, including the amount awarded and
the amount left unpaid
* Sought restitution against the bond that covers the contractor
and haven't collected $30,000 or more
* Looked into the debtor's assets to see if they could satisfy the
judgment and were unsuccessful Correct Answers
AZ ROC Duties Regarding the Fund
In administering the fund, the agency has certain duties and
powers, such as:
,* Setting assessments to maintain a sufficient balance.
* Having a certified public accountant examine the fund every
three years.
* Filing an annual statement with the department of insurance.
* Employing attorneys and accountants as needed to handle
fund-related business, paid from the fund with costs not to
exceed $10,000 per fiscal year.
* Engaging people and obtaining equipment that are necessary
to process, oppose, or monitor claims, paid from the fund with
costs that are 14% or less of the fund's total amount per fiscal
year.
* Promoting the fund's existence to consumers using the fund's
interest money, spending no more than $50,000 per fiscal year to
do so. Correct Answers
AZ ROC Facts
To protect the public, the AZ ROC is in charge of licensing and
regulating contractors in Arizona. Read each of the following
options and determine which five are AZ ROC duties and
powers. Correct Answers * Obtain criminal history information
from the Department of Public Safety and other law
enforcement agencies during investigations.
* Refer criminal violations to law enforcement or prosecutors.
* Provide educational programs for consumers and contractors.
* Hold hearings.
* Conduct investigations.
Bailey just graduated from college with a degree in construction
management, and he wants to apply for a contractor's license.
Where should he submit his application? Correct Answers
Arizona Registrar of Contractors
, building permit Correct Answers A building permit is required
in Arizona if the structure, electrical, gas, plumbing, and
mechanical systems are affected.
Buildings and Add-Ons Without Permits
We've mentioned that work requiring a permit also requires a
licensed contractor to do it. Arizona requires building permits
for jobs such as:
* Constructing, expanding, moving, demolishing, or altering the
occupancy or use of a structure
* Installing, expanding, converting, removing, or replacing
regulated building systems, such as electrical, gas, mechanical,
or plumbing systems
Of course, not all work requires a permit, so exemptions apply.
Let's take a look at those. Correct Answers
Busted!
Kyle was busted for performing contract work without a license
outside of the handyman exemption. Determine if the penalty
described is something he can expect to face.
1) Maximum term of six months in county jail
2) Maximum fine of $2,500, plus an 83% surcharge for multiple
offenses
3) Minimum fine of $1,000, plus an 83% surcharge for the first
offense
4) Maximum term of one year in prison
5) Restitution to be paid to anyone who suffered an economic
loss
