Arizona Real Estate Broker Exam — All Questions

What happens in the secondary mortgage market?

• a.Lenders set the interest rates offered to consumers
• b.Appraisers report property values to underwriters
• c.Existing loans are bought and sold by investors✓
• d.Borrowers apply for and receive new mortgage loans

The secondary market is where existing mortgage loans are bought, sold and securitised, with Fannie Mae, Freddie Mac and Ginnie Mae as the dominant participants. Selling loans replenishes the originating lender's capital so it can lend again, which is why secondary market underwriting guidelines shape what the primary market will approve. Origination to the borrower happens in the primary market.

What does a discount point cost the borrower on a mortgage loan?

• a.One tenth of one percent of the loan amount
• b.One percent of the loan amount✓
• c.One percent of the down payment
• d.One percent of the purchase price

A discount point is one percent of the loan amount, paid up front to reduce the note rate. Points are calculated on the loan, not on the sale price or the down payment, so a two-point charge on a $300,000 loan is $6,000 regardless of what the property sold for. Paying points lowers the periodic payment, and whether it pays off depends on how long the borrower keeps the loan.

What does a loan-to-value ratio express?

• a.The borrower's monthly debt as a percentage of income
• b.The loan amount as a percentage of value or price✓
• c.The down payment as a percentage of the loan amount
• d.The interest rate as a percentage of the property value

Loan-to-value compares the loan amount to the property's value, and lenders conventionally use the lesser of the appraised value or the contract price. It measures the lender's exposure: the higher the ratio, the less equity cushion stands between the lender and a loss. Monthly debt against income is a debt-to-income ratio, a separate underwriting test.

What two components determine the interest rate on an adjustable-rate mortgage at each adjustment?

• a.A cap plus a floor rate
• b.A discount point plus an origination fee
• c.An index plus a margin✓
• d.A prime rate plus a prepayment penalty

An adjustable-rate mortgage sets the rate at each adjustment as a published index, which moves with the market, plus a fixed margin the lender adds. Caps limit how far the rate can move at any one adjustment and over the life of the loan, but they do not set the rate. Points and origination fees are up-front charges, and a prepayment penalty is a payoff cost.

What is the essential difference between a conventional loan and an FHA or VA loan?

• a.A conventional loan may be made only by a national bank
• b.A conventional loan may not be sold on the secondary market
• c.A conventional loan always requires a twenty percent deposit
• d.It carries no government insurance or guarantee at all✓

A conventional loan is not insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs; the lender relies on the borrower's credit and the property. Conventional loans are freely sold into the secondary market, may be made by many lender types, and are commonly written above eighty percent loan-to-value with private mortgage insurance instead of a large deposit.

When is private mortgage insurance typically required on a conventional loan?

• a.When the borrower's credit score is below seven hundred
• b.When the property is held as an investment rather than a home
• c.When the loan-to-value ratio exceeds eighty percent✓
• d.When the loan term extends beyond twenty years

Private mortgage insurance protects the lender against loss on a higher-leverage conventional loan and is customarily required above an eighty percent loan-to-value ratio. It insures the lender, not the borrower, even though the borrower pays the premium. Credit score, occupancy and term all affect pricing and eligibility, but they are not the trigger for the insurance requirement.

What does the debt service coverage ratio measure in commercial lending?

• a.The loan balance divided by the property's value
• b.Operating expenses divided by gross scheduled income
• c.Gross rental income divided by the purchase price
• d.Net operating income divided by annual debt service✓

The debt service coverage ratio is net operating income divided by annual debt service, and it tells the lender how much cushion the property's cash flow gives over the loan payments. A ratio of 1.25 means income covers the payments 1.25 times. Loan balance over value is loan-to-value, and operating expenses over income is the operating expense ratio.

In an Arizona financed purchase, which document is the borrower's promise to repay and which is the security?

• a.The promissory note is the promise; the deed of trust is the security✓
• b.Both documents are promises; the deed supplies the security
• c.The purchase contract is the promise; the note is the security
• d.The deed of trust is the promise; the promissory note is the security

The promissory note is the borrower's personal promise to repay the debt on stated terms. The deed of trust is the security instrument: it conveys the trust property to a trustee so the debt can be enforced against the land if the note is not paid. A.R.S. 33-801(4) treats a note or promissory note as a 'contract' that a trust deed secures, which is exactly this division of labour.

Who are the three parties to an Arizona deed of trust under A.R.S. 33-801?

• a.Grantor, grantee and title insurer
• b.Mortgagor, mortgagee and escrow agent
• c.Vendor, vendee and loan servicer
• d.Trustor, trustee and beneficiary✓

A.R.S. 33-801 defines the beneficiary as the person for whose benefit the trust deed is given, the trustee as a person qualified under A.R.S. 33-803, and a trust deed as a deed conveying trust property to a trustee to secure performance of a contract. The borrower who conveys the property is the trustor. A mortgage has only two parties, which is why Arizona lenders overwhelmingly use the three-party deed of trust instead.

How does the trustee under an Arizona deed of trust obtain the power of sale?

• a.Only by a separate order of the superior court
• b.Only if the trust deed expressly grants a power of sale
• c.Only after the beneficiary records an assignment
• d.By virtue of the trustee's position, with no express clause✓

A.R.S. 33-807(A) provides that 'by virtue of his position, a power of sale is conferred upon the trustee of a trust deed under which the trust property may be sold,' and the subsection closes by stating that 'the power of sale may be exercised by the trustee without express provision therefor in the trust deed.' No court order is needed to exercise it, which is what makes the Arizona trustee's sale a non-judicial remedy.

How soon after recording the notice of trustee's sale may an Arizona trustee's sale be held?

• a.No sooner than the one hundred twenty-first day after recording
• b.No sooner than the thirty-first day after recording
• c.No sooner than the sixty-first day after recording
• d.No sooner than the ninety-first day after recording✓

A.R.S. 33-807(D) provides that 'the power of sale of trust property conferred upon the trustee shall not be exercised before the ninety-first day after the date of the recording of the notice of the sale,' and that the sale shall not be set for a Saturday or legal holiday. A.R.S. 33-808(C)(1) repeats that the date in the notice 'shall be no sooner than the ninety-first day after the date that the notice of sale was recorded.'

Until when may a defaulting Arizona trustor reinstate under A.R.S. 33-813?

• a.Until the trustee's deed is recorded after the sale
• b.Until noon on the day the sale is scheduled to occur
• c.Until 5:00 p.m. on the last business day before it✓
• d.Until 5:00 p.m. on the thirtieth day before the sale

A.R.S. 33-813(A) allows the trustor, a successor in interest, a subordinate lienholder or a beneficiary under a subordinate trust deed to reinstate 'before 5:00 p.m. mountain standard time on the last day other than a Saturday or legal holiday before the date of sale.' Reinstatement requires paying the entire amount then due, curing other defaults, and paying the enforcement costs listed in subsection B, including trustee's fees capped at $600 or one half of one percent of the unpaid principal, whichever is greater.

May an Arizona deed of trust be foreclosed judicially instead of by trustee's sale?

• a.Yes, at the beneficiary's option, as a mortgage would be✓
• b.Yes, but only after a trustee's sale has failed to draw a bid
• c.No, a deed of trust may only be foreclosed by trustee's sale
• d.Yes, but only if the trust deed expressly permits it

A.R.S. 33-807(A) provides that 'at the option of the beneficiary, a trust deed may be foreclosed in the manner provided by law for the foreclosure of mortgages on real property,' in which event chapter 6 of Title 33 governs. Subsection B lets the trustee or beneficiary file a foreclosure action any time before the property has been sold under the power of sale, and bars a power-of-sale sale while that action is pending unless it is dismissed.

When does Arizona's anti-deficiency rule in A.R.S. 33-814(G) bar a lender from pursuing the balance after a trustee's sale?

• a.Two and one-half acres or less, used as one or two dwellings✓
• b.Any property whose sale price exceeded the loan balance
• c.Property of five acres or less used as a single-family dwelling
• d.Any owner-occupied property regardless of its size or acreage

A.R.S. 33-814(G) provides that where 'trust property of two and one-half acres or less which is limited to and utilized for either a single one-family or a single two-family dwelling is sold pursuant to the trustee's power of sale, no action may be maintained to recover any difference between the amount obtained by sale and the amount of the indebtedness.' Both the acreage cap and the actual dwelling use must be satisfied, and subsection H removes the protection for certain builder-owned and never-completed dwellings on deeds of trust originated after December 31, 2014. Where a deficiency action is available, subsection A requires it within ninety days after the sale.

How does A.R.S. 32-2130(A) define a short sale for Arizona continuing education purposes?

• a.The seller accepts an offer below the property's appraised value
• b.The lender agrees to reduce the interest rate rather than foreclose
• c.The property sells at a trustee's sale for less than the credit bid
• d.The price cannot cover the loan plus the costs of sale, and the seller cannot pay✓

A.R.S. 32-2130(A) defines short sales as 'real estate transactions in which the sales price is insufficient to pay the loan encumbering the property in addition to the costs of sale and the seller is unable to pay the difference.' Both halves matter: a shortfall against the loan and costs, and a seller who cannot make it up. A price below appraised value is not a short sale if the loan is still paid in full at closing.

Under A.R.S. 32-2156, may a seller or licensee be sued for not disclosing that a homicide occurred in the property?

• a.Yes, if the buyer asked directly and was told nothing
• b.Yes, unless the seller obtained a written waiver from the buyer
• c.No, no criminal, civil or administrative action may be brought✓
• d.Yes, if the event occurred within the previous five years

A.R.S. 32-2156(A) provides that 'no criminal, civil or administrative action may be brought against a transferor or lessor of real property or a licensee for failing to disclose that the property being transferred or leased is or has been the site of a natural death, suicide or homicide or any other crime classified as a felony.' Subsection B adds that the non-disclosure is not grounds for terminating or rescinding the transaction. The protection is not limited by any lookback period.

Which other non-disclosures does A.R.S. 32-2156 protect in an Arizona transaction?

• a.An unpermitted addition and an expired building permit
• b.A pending assessment lien and unpaid association dues
• c.A leaking roof, a cracked slab and a failed water heater
• d.Occupancy by a person with HIV, and sex offenders nearby✓

A.R.S. 32-2156(A)(2) covers property 'owned or occupied by a person exposed to the human immunodeficiency virus or diagnosed as having the acquired immune deficiency syndrome or any other disease that is not known to be transmitted through common occupancy,' and (A)(3) covers property 'located in the vicinity of a sex offender.' Physical defects and financial encumbrances are the opposite case: those are material facts that A.A.C. R4-28-1101(B) requires a licensee to disclose in writing.

How long does a buyer have to rescind after receiving an affidavit of disclosure under A.R.S. 33-422?

• a.Five days after the affidavit is furnished✓
• b.Three days after the affidavit is furnished
• c.Seven days after the affidavit is furnished
• d.Ten days after the affidavit is furnished

A.R.S. 33-422(D) provides that 'the buyer has the right to rescind the sales transaction for a period of five days after the affidavit of disclosure is furnished to the buyer.' The affidavit itself must reach the buyer at least seven days before the transfer under subsection A, so the rescission window sits inside that period. Subsection B requires the affidavit to be written in twelve-point type.

Is a clause releasing the seller from liability for an error in an affidavit of disclosure effective?

• a.No, such a release or waiver does not bind the buyer✓
• b.Yes, if the buyer signs it separately from the contract
• c.Yes, if the buyer is represented by a licensed broker
• d.Yes, if the seller had no actual knowledge of the error

A.R.S. 33-422(C) states that 'a release or waiver of a seller's liability arising out of any omission or misrepresentation contained in an affidavit of disclosure is not valid or binding on the buyer.' The prohibition is absolute, so no separate signature, no lack of knowledge and no professional representation can make the waiver stick. The section's disclosures cover legal and physical access, road maintenance, utilities, flooding and similar rural risks.

A buyer purchases subdivided land that has no provision for permanent access. What does A.R.S. 32-2185.02 provide?

• a.The commissioner must revoke the subdivider's public report
• b.The sale is void and the deed conveys no interest at all
• c.The sale is rescindable by the purchaser for three years✓
• d.The subdivider must construct an access road within one year

A.R.S. 32-2185.02(A) forbids selling subdivided land 'without provision for permanent access to the land over terrain which may be traversed by conventional motor vehicle unless such provision is waived by the commissioner.' Subsection B makes any sale without permanent access 'rescindable by the purchaser,' with the action to be brought within three years of the date the purchaser executed the real estate sales contract. The remedy belongs to the buyer.

What civil penalty may the commissioner assess against an Arizona licensee under A.R.S. 32-2160.01?

• a.Up to one thousand dollars for each infraction, after a hearing✓
• b.Up to five thousand dollars for each infraction, after a hearing
• c.Up to five hundred dollars for each infraction, without a hearing
• d.Up to ten thousand dollars for each infraction, without a hearing

A.R.S. 32-2160.01(A) allows the commissioner, 'after a hearing,' to assess a civil penalty 'in an amount not to exceed one thousand dollars for each infraction' against a licensee who violated the chapter, a rule or an order, deviated substantially from a public report, or engaged in an unlawful practice defined in A.R.S. 44-1522 in the sale or lease of subdivided or unsubdivided lands. Unpaid penalties can be filed with the clerk of the superior court and enforced as a judgment.

Besides suspension and revocation, what may the commissioner do to a licensee under A.R.S. 32-2153(A)?

• a.Impose a criminal fine collected by the Department
• b.Issue a letter of concern or a provisional licence✓
• c.Order restitution directly to the aggrieved consumer
• d.Assign the licensee to a supervising broker for one year

A.R.S. 32-2153(A) lets the commissioner 'suspend or revoke a license, deny the issuance of a license, issue a letter of concern to a licensee, issue a provisional license or deny the renewal or the right of renewal of a license' where the listed grounds appear within the preceding five years. The letter of concern and the provisional licence are the graduated responses short of suspension. Criminal fines are imposed by courts, and consumer compensation runs through the recovery fund under A.R.S. 32-2186.

What must an Arizona broker state in the purchase contract or earnest money receipt under A.R.S. 32-2151.01(C)?

• a.The broker's commission as a percentage of the price
• b.The name of the depository holding the earnest money
• c.The type of earnest money the broker actually received✓
• d.The date the earnest money will be released to the seller

A.R.S. 32-2151.01(C) requires a broker to 'specifically state in the real estate purchase contract, lease agreement or receipt for earnest money the type of earnest money received in any real estate transaction, whether it is cash, a check, a promissory note or any other item of value.' Because a note is not cash, the seller is entitled to know what actually backs the offer before accepting it. Subsection D requires licensees to place all such items promptly in the designated broker's care.

A rectangular lot measures 150 feet by 290.4 feet. How many acres does it contain?

• a.1.25 acres
• b.0.75 acre
• c.1.0 acre✓
• d.2.0 acres

Multiply the dimensions: 150 x 290.4 = 43,560 square feet. One acre is 43,560 square feet, a figure the Arizona candidate handbook tells candidates to memorise because it is not supplied at the test centre, so 43,560 divided by 43,560 gives exactly 1.0 acre.

A home sells for $420,000 with a total commission of 6 percent. The listing brokerage keeps 40 percent of the total. What does it receive?

• a.$12,600
• b.$8,400
• c.$10,080✓
• d.$15,120

First find the total commission: $420,000 x 0.06 = $25,200. Then take the listing brokerage's share: $25,200 x 0.40 = $10,080. The other $15,120 is the 60 percent that goes to the cooperating side. Working the percentages in the wrong order, or applying 40 percent to the sale price, produces the distractor figures.

Annual taxes are $2,190 on a 365-day basis. Closing is April 15 and the day of closing belongs to the seller. What is the seller's share?

• a.$540
• b.$636
• c.$624
• d.$630✓

Daily tax is $2,190 divided by 365 = $6.00. Count the seller's days from January 1 through April 15 inclusive, since the day of closing goes to the seller: 31 + 28 + 31 + 15 = 105 days. Then 105 x $6.00 = $630. Giving the closing day to the buyer instead would produce 104 days and $624.

A buyer purchases for $455,000 with a loan of $364,000. What is the loan-to-value ratio?

• a.85 percent
• b.80 percent✓
• c.75 percent
• d.125 percent

Divide the loan by the value: $364,000 divided by $455,000 = 0.80, or 80 percent. Lenders use the lesser of appraised value or contract price as the denominator. Inverting the fraction gives 125 percent, which is the common trap on this calculation.

A lender charges 2.5 discount points on a $260,000 loan. What does the borrower pay in points?

• a.$5,200
• b.$6,500✓
• c.$2,600
• d.$9,750

One discount point is one percent of the loan amount, so 2.5 points is 2.5 percent: $260,000 x 0.025 = $6,500. Points are always calculated on the loan, never on the purchase price or the down payment. Charging one point would be $2,600 and two points would be $5,200.

An investment property produces net operating income of $84,000 and the market capitalization rate is 7 percent. What is the indicated value?

• a.$588,000
• b.$1,400,000
• c.$1,200,000✓
• d.$840,000

Capitalise the income by dividing net operating income by the rate: $84,000 divided by 0.07 = $1,200,000. Multiplying instead of dividing gives $5,880, and misplacing the decimal produces the other figures. Value moves inversely with the capitalization rate, so a higher rate on the same income indicates a lower value.

A property sold for $432,000 and produces monthly gross rent of $3,600. What is its gross rent multiplier?

• a.120✓
• b.12
• c.144
• d.10

The gross rent multiplier is the sale price divided by the gross rent, using the same period for every property compared. Here $432,000 divided by $3,600 monthly rent = 120. Using annual rent of $43,200 instead would give a multiplier of 10, which is the annual gross rent multiplier and a different measure.

A $300,000 loan carries interest at 6 percent per year. How much of the first monthly payment is interest?

• a.$1,250
• b.$1,500✓
• c.$2,000
• d.$1,800

Annual interest is $300,000 x 0.06 = $18,000. Divide by twelve months: $18,000 divided by 12 = $1,500 of interest in the first payment. Anything paid above that reduces principal. In later months the interest portion falls as the balance falls, which is what makes an amortisation schedule front-loaded with interest.

An investor bought a property for $325,000 and sold it for $377,000. What was the percentage of profit?

• a.18 percent
• b.16 percent✓
• c.13 percent
• d.14 percent

Profit is $377,000 minus $325,000 = $52,000. Divide the profit by the original cost, not by the sale price: $52,000 divided by $325,000 = 0.16, or 16 percent. Dividing by the sale price instead gives about 13.8 percent, which is the usual error on this question type.

How many acres are in the northwest quarter of the southeast quarter of a standard section?

• a.160 acres
• b.80 acres
• c.40 acres✓
• d.20 acres

A standard section contains 640 acres. Each quarter of a quarter divides the section by sixteen: 640 divided by 4 = 160 acres for the southeast quarter, then 160 divided by 4 = 40 acres for the northwest quarter of it. Reading the description from the smallest unit backwards and dividing at each step is the reliable method.

A lot measuring 100 feet by 130 feet sells for $91,000. What is the price per square foot?

• a.$7.50
• b.$7.00✓
• c.$6.50
• d.$9.10

Find the area first: 100 x 130 = 13,000 square feet. Then divide the price by the area: $91,000 divided by 13,000 = $7.00 per square foot. Dividing by the front footage or by the depth alone produces the distractor figures, so always reduce the parcel to square feet before dividing.

May an Arizona broker share a commission with a broker licensed only in another state?

• a.Yes, but only if the Department approves the split in advance
• b.Yes, an Arizona broker may pay and receive compensation from an out-of-state broker✓
• c.Yes, but only if the out-of-state broker obtains an Arizona licence
• d.No, compensation may pass only between Arizona licensees

A.R.S. 32-2163(A) forbids an Arizona broker to employ or compensate an unlicensed person for licensed acts, 'except that a licensed broker in this state may pay compensation to and receive compensation from a broker who is lawfully operating in another state.' Subsection B is the limit: paying that compensation 'does not allow an out-of-state broker to conduct activity in this state that would otherwise require a broker's license,' which is what the written cooperation agreement in subsection C is for.

A cooperating brokerage's salesperson helps sell a listing. Who may the listing broker pay?

• a.The escrow agent, who then pays the salesperson
• b.The cooperating salesperson directly, at closing
• c.Either the salesperson or the broker, as they agree
• d.The cooperating brokerage's employing broker✓

A.R.S. 32-2155(A) confines a licensee to accepting compensation from the broker to whom the licensee is licensed, so a cooperative commission must travel broker to broker and then down to the salesperson within that firm. Subsection C makes it unlawful for anyone, including an escrow holder, to route payment for licensed acts outside that channel. A.A.C. R4-28-701 separately requires written disclosure of every employing broker being compensated at least three calendar days before closing.

How must an Arizona broker keep the trust fund account records under A.R.S. 32-2151(B)(2)?

• a.In any format the designated broker considers convenient
• b.According to generally accepted accounting principles, with a client ledger✓
• c.On paper only, since electronic records are not accepted
• d.In the format prescribed by the broker's outside auditor

A.R.S. 32-2151(B)(2) requires a broker to retain a complete record of all money received in connection with a real estate transaction, and provides that 'a broker's records shall be kept according to generally accepted accounting principles and shall include properly descriptive receipts and a disbursement journal and client ledger.' Computerised records are expressly permitted, provided they are kept so they can be reconstructed if the electronic data is destroyed.

Which trust account practice does A.R.S. 32-2151(C) treat as a violation?

• a.Keeping the account at a federally insured in-state depository
• b.Failing to maintain separate ledgers for each of the properties✓
• c.Removing earned interest from the account every six months
• d.Reconciling the account at the end of every calendar month

A.R.S. 32-2151(C)(4) lists 'failing to maintain separate ledgers for each property' as a violation, alongside failing to remove interest at least once every twelve months, commingling beyond the $5,000 allowance, failing to identify non-owner tenant money in receipts, failing to reconcile regularly, transferring money between accounts owned by different persons without written consent, failing to create checks and balances, and failing to follow state or federal requirements. A federally insured in-state account and monthly reconciliation are exactly what the statute requires.

When must an Arizona broker's transaction records be available to the commissioner under A.R.S. 32-2151.01(A)?

• a.Only during a formal disciplinary proceeding
• b.Only after the Department issues a subpoena
• c.Only in the thirty days following a renewal
• d.At all reasonable times for the commissioner✓

A.R.S. 32-2151.01(A) requires each licensed employing broker to keep records of all transactions handled by or through the broker, plus employment records for current and former employees, and provides that 'the records shall be open at all reasonable times for inspection by the commissioner or the commissioner's representatives.' No subpoena and no pending case is needed; the open-records duty is a condition of holding the licence.

How long must an Arizona broker keep transaction and employment records under A.R.S. 32-2151.01(A)?

• a.At least two years after termination of the transaction or employment
• b.At least three years after termination of the transaction or employment
• c.At least ten years after termination of the transaction or employment
• d.At least five years after termination of the transaction or employment✓

A.R.S. 32-2151.01(A) provides that 'the records of each transaction and employment records shall be kept by the broker for a period of at least five years after the date of the termination of the transaction or employment.' They must be kept at the principal or licensed branch office in Arizona, or at an in-state off-site storage location the broker has notified to the Department in writing in advance. Rejected offers are the exception: subsection I requires one year, or five years where a binding contract resulted.

How long must an Arizona property management firm keep financial records pertaining to clients under A.R.S. 32-2175(C)?

• a.At least five years from the date each document was executed
• b.At least one year from the date each document was executed
• c.At least three years from the date each document was executed✓
• d.At least seven years from the date each document was executed

A.R.S. 32-2175(C) requires property management firms to keep all client financial records 'for at least three years from the date each document was executed,' listing bank statements, cancelled checks or bank generated check images, deposit slips, bank receipts, receipts and disbursement journals, owner statements, client ledgers and applicable bills, invoices and statements. Subsection B applies the same three-year period to records of finder fees paid to tenants.

How long must an Arizona property management firm keep a residential rental agreement under A.R.S. 32-2175(A)?

• a.One year after the rental agreement expires✓
• b.Until the tenant's security deposit is returned
• c.Three years after the rental agreement expires
• d.Five years after the rental agreement expires

A.R.S. 32-2175(A) requires property management firms to keep a residential rental agreement, including amendments and addenda and related documents, 'for one year after the expiration of the rental agreement or until the rental agreement and related documents are given to the owner at the termination of any property management agreement.' Related documents may include rental applications with tenant-identifying information, move-in forms and default notices.

What limits the scope of a routine Department audit of an Arizona property management broker under A.R.S. 32-2175(I)?

• a.Only trust account records, never lease documents
• b.Only the records the broker chooses to produce that day
• c.Areas that bear materially on the accuracy of the audit✓
• d.Only records created in the preceding twelve months

A.R.S. 32-2175(I) requires the broker, on request for routine audit purposes, to make available within a reasonable time all records relative to property management accounts, including lease agreements, lease related documents and trust account records. It then limits the Department 'to auditing those areas that are related to the business activities of a broker and that have a material bearing on the accuracy of the audit,' and closes by providing that the limit does not restrict the immediacy or scope of an audit if a violation is suspected.