Source: https://fr.scribd.com/document/53053414/AZ-Real-Estate-Law-Book-07e
Timestamp: 2020-07-03 17:14:45
Document Index: 630566624

Matched Legal Cases: ['§ 1', '§ 32', '§ 32', '§ 32', '§ 32', '§ 32', '§ 32', '§ 32', '§ 32', '§ 32', '§ 32', '§ 32', 'art. 5', '§ 1', '§ 2', '§\n1', '§ 1', '§ 1', '§ 304', '§ 1', '§ 1', '§ 1', '§ 13', '§ 13', '§ 8', '§ 2', '§\n32', '§ 2', '§ 2', '§ 2', '§ 1', '§ 1', '§ 3', '§ 2', '§ 1', '§ 1', '§ 3', '§ 2', '§ 4', '§\n32', '§ 2', '§ 4', '§ 5', '§ 1', '§\n32', '§ 3', '§ 2', '§\n32', '§ 2', '§ 3', '§ 2007', '§ 8', '§ 5']

AZ Real Estate Law_Book_07e | Property Management | Real Estate Broker
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(Pub. 21725)
The Arizona Department of Real Estate retains the Exclusive right to control the publication, sale, reproduction Or other use of the Arizona Real Estate Law Book
The text of this publication can be found on the Department’s Web site at www.AZRE.gov
Arizona Department of Real Estate 2910 N. 44 th Street Phoenix, AZ 85018 (602) 468-1414
This Real Estate Law Book is intended for use solely as a desk reference tool and should not be used as a substitute for the Arizona Revised Statutes
Sections Affected by 2007 Legislation
Article 26. Right of Licensed Real Estate Brokers and Salesmen to Prepare Instruments Incident to Property Transactions, § 1
Real Estate Real Estate Department, §§ 32-2101 to 32-2118 Licensing, §§ 32-2121 to 32-2136 Regulation, §§ 32-2151 to 32-2166
Article 3.1. Property Management, §§ 32-2171 to 32-2176
Sale of Subdivided Lands, §§ 32-2181 to 32-2185.09 Real Estate Recovery Fund, §§ 32-2186 to 32-2193.02
Article 5.1. Condominium Recovery Fund, §§ 32-3193.31 to 32-2193.43
Organization and Regulation of Cemeteries, §§ 32-2194 to 32-2194.33 Sale of Unsubdivided Lands, §§ 32-2195 to 32-2195.11 Real Estate Timeshares, §§ 32-2197 to 32-2197.24 Membership Camping, §§ 32-2198 to 32-2198.14
General Provisions, §§ R4-28-101 to R4-28-104 Repealed Licensure, §§ R4-28-301 to R4-28-306 Education, §§ R4-28-401 to R4-28-405 Advertising, §§ R4-28-501 to R4-28-504 Repealed Compensation, § R4-28-701 Documents, §§ R4-28-801 to R4-28-805 Repealed
Repealed Professional Conduct, §§ R4-28-1101 to R4-28-1103 Developments, §§ R4-28-1201 to R4-28-1204
PART A. Application for Public Report, Certiﬁcate of Authority, or Special Order of Exemption, §§ R4-28-A1201 to R4-28-A1223
PART B. General Information, §§ R4-28-B1201 to R4-28-B1211
Administrative Procedures, §§ R4-28-1301 to R4-28-1313 Repealed
Arizona Department of Real Estate 2007 Directory of Substantive Policy Statements, Nos. 2005.01 to 2007.18
NOTE: In addition to the sections listed below, users of this edition should be aware that additional section and case note
annotations have also been appropriately incorporated throughout this publication. The sections with new and/or revised
annotations do not appear in this listing.
32-2107
(retro.) Sept. 19, 2007
32-2118
32-2124
(retro.) June 30, 2007
32-2129
32-2131
32-2136
32-2160.01
32-2181
32-2181.02
32-2183
t. 32, ch. 20, art. 5.1
32-2193.31
32-2193.32
32-2193.33
32-2193.34
32-2193.35
32-2193.36
32-2193.37
32-2193.38
32-2193.39
32-2193.40
32-2193.41
32-2193.42
32-2193.43
32-2197.08
ARTICLE 26. RIGHT OF LICENSED REAL ESTATE BROKERS AND SALESMEN TO PREPARE INSTRUMENTS INCIDENT TO PROPERTY TRANSACTIONS
1. Powers of real estate broker or salesman.
§ 1. Powers of real estate broker or salesman
Section 1. Any person holding a valid license as a real estate broker or a real estate salesman regularly
issued by the Arizona State Real Estate Department when acting in such capacity as broker or salesman for the parties, or agent for one of the parties to a sale, exchange, or trade, or the renting and leasing of property, shall have the right to draft or ﬁll out and complete, without charge, any and all instruments incident thereto including, but not limited to, prelim- inary purchase agreements and earnest money re- ceipts, deeds, mortgages, leases, assignments, re- leases, contracts for sale of realty, and bills of sale. 1962
32-2121
32-2151
32-2171
Sale of Subdivided Lands
32-2186
Condominium Recovery Fund
Organization and Regulation of Cemeteries
32-2194
Sale of Unsubdivided Lands
32-2195
32-2197
32-2198
This chapter is repealed effective January 1, 2013 ARTICLE 1. REAL ESTATE DEPARTMENT
32-2101.
32-2102.
Administration of chapter by real estate department;
32-2103.
purpose. Placement of monies collected; revision of fees.
32-2104.
Real estate advisory board; members; terms; qualiﬁca-
32-2105.
tions; compensation; chairman; duties. Meetings of the state real estate advisory board.
32-2106.
Real estate commissioner; appointment; qualiﬁcations.
32-2107.
Powers and duties of commissioner; compensation; ad-
ministration of department; seal; revolving fund. 32-2107.01. Recorded disclaimer of unlawful restrictions. 32-2108. Powers and duties of commissioner to make investiga-
tions and require information.
32-2108.01. Fingerprinting license applicants; requirements; fees; deﬁnition.
32-2109.
Employment; compensation.
32-2110.
Interest of department officer or employee in real estate
32-2111.
company prohibited. Attorney general as legal adviser and representative of
32-2112.
commissioner. Admissibility of certiﬁed copies of department records in
32-2113.
evidence. Recorded disclosure for territory in the vicinity of a
32-2114.
military airport or ancillary military facility. Recorded disclosure for land under a military training
32-2115.
route or restricted air space. Department’s web site; military training route map;
32-2116.
restricted air space map. Military training routes; contacts.
32-2117.
Earth ﬁssure maps; posting; immunity.
32-2118.
Competition with private enterprise; prohibition.
32-2121.
Applicability of article; exemption.
32-2122.
License required of brokers and salespersons.
32-2123.
Application for license as broker or salesperson.
32-2124.
Qualiﬁcations of licensees.
32-2125.
Licenses for corporations, limited liability companies or
partnerships. 32-2125.01. Issuance of license; multiple licenses; use. 32-2125.02. Nonresident licensees; service of process; employment. 32-2125.03. Conﬁdentiality of licensee’s home address, home tele- phone number and social security number.
Place of business required; notice of change in location; failure to give notice as cancellation of license; signs. Licenses for additional places of business; branch office manager; broker’s temporary absence. Display and possession of license certiﬁcate. Advance payment of license fees. Renewal of licenses. Reinstatement of license. Fees. Temporary broker’s license. Temporary cemetery salesperson’s license.
32-2134.01. Membership camping salesperson certiﬁcate of conve- nience.
32-2134.
32-2133.
32-2132.
32-2126.
32-2127.
32-2128.
32-2129.
32-2130.
32-2131.
32-2135.
32-2136.
Real estate schools; courses of study; instructors; certi- ﬁcation. Broker management clinics.
ARTICLE 3. REGULATION
32-2151. Disposition of funds; trust money deposit requirements. 32-2151.01. Broker requirements; record keeping requirements. 32-2151.02. Real estate employment agreements; deﬁnition.
32-2152.
Action by broker or salesperson to collect compensation.
32-2153.
Grounds for denial, suspension or revocation of licenses; letters of concern; provisional license; retention of jurisdiction by commissioner; deﬁnitions.
32-2153.01. Consent order; terms.
32-2154.
32-2155.
Cease and desist orders; hearing. Restriction on employment or compensation of person as broker or salesperson. Real estate sales and leases; disclosure.
Written notice of charges; summary suspension; hear- ing. Hearing; witnesses; deposition; service of process. Judicial review; costs; transcript. Filing of complaint by commissioner; prosecution.
32-2156.
32-2157.
32-2158.
32-2159.
32-2160.
32-2160.01. Civil penalties.
32-2161.
False statements or publications concerning land, sub- division or membership camping contract for sale or lease; classiﬁcation; deﬁnition. Sale of cemetery property for speculation unlawful. Unlawful acts; out-of-state broker; cooperation agree- ment. Unlawful subdivision lot sales. Unlicensed activities; violation; classiﬁcation. Activities while incarcerated; violation; classiﬁcation.
32-2162.
32-2163.
32-2164.
32-2165.
32-2166.
ARTICLE 3.1. PROPERTY MANAGEMENT
32-2171.
32-2172.
32-2173.
32-2174.
32-2175.
32-2176.
Deﬁnitions. Scope of article. Property management agreements; contents, termina- tion. Property management accounts. Property management records; requirements; audits. Payment of ﬁnder fees to apartment tenants; limits; prohibited activities; deﬁnitions.
ARTICLE 4. SALE OF SUBDIVIDED LANDS
32-2181. Notice to commissioner of intention to subdivide lands; unlawful acting in concert; exceptions; deed restric- tions; deﬁnition.
32-2181.01. Power of commissioner to exempt certain subdivisions or fractional interests by special order. 32-2181.02. Exempt sales and leases. 32-2181.03. Lot reservations; expiration.
32-2182.
32-2183.
sales; voidable sale or lease; order prohibiting sale or lease; investigations; hearings; summary orders. 32-2183.01. Advertising material; contents; order prohibiting use; costs of investigation; drawings or contests.
32-2183.02. Recording of actions. 32-2183.03. Civil liabilities.
Examination of subdivision by commissioner; fee. Subdivision public reports; denial of issuance; unlawful
Section 32-2183.04. Surety bond requirement; form; cancellation; effective date; certiﬁcate of deposit.
Section 32-2194.16. Sale of undeveloped cemetery property. 32-2194.17. Transaction of cemetery business.
32-2183.05. Military training route disclosure; residential property. 32-2183.06. Restricted air space disclosure; residential property.
32-2194.18. Application for authority to open and operate cemeter- ies.
32-2184.
Change of subdivision plan after approval by commis-
Sale of unimproved lots or parcels; conditions precedent;
32-2194.19. Investigation of applicant before granting of certiﬁcate
32-2185.
sioner; notice. Delivery of clear title by vendor on performance of
of authority where needed. 32-2194.20. Right of cemetery to make rules and regulations.
32-2185.01.
contract by vendee.
32-2194.21. Survey of property; maps and plats. 32-2194.22. Filing maps and declaration of dedication. 32-2194.23. Nonapplication of law against perpetuities.
32-2185.02.
Permanent access to subdivided land; rescindable sales.
32-2194.24.
Trust fund to be established before certiﬁcate of author-
32-2185.03. Deposit of fees. 32-2185.06. Contract disclosures; contract disclaimers. 32-2185.07. Jurisdiction. 32-2185.08. Recordable forms of contracts. 32-2185.09. Civil penalties; limitation.
ARTICLE 5. REAL ESTATE RECOVERY FUND
32-2186.
Real estate recovery fund; liability limits; deﬁnitions.
32-2187.
Payments to real estate recovery fund.
32-2188.
Statute of limitations; service of summons; application
for payment; insufficient monies; deﬁnition. 32-2188.01. Notice of claim to judgment debtor; response.
32-2188.02. Correction of deﬁciencies in the application. 32-2188.03. Investigation and discovery. 32-2188.04. Final decision and order on claim; notice.
32-2188.05. Claimant’s right to appeal denial of claim; service of notice of appeal; response; failure to ﬁle response.
32-2189.
32-2191.
Commissioner’s standing in court.
32-2192.
Subrogation of rights; collection.
32-2193.
32-2193.01. Effect of article on disciplinary action. 32-2193.02. Surety bond requirement; form; cancellation; effective date; certiﬁcate of deposit.
ARTICLE 5.1. CONDOMINIUM RECOVERY FUND
32-2193.31. Deﬁnitions. 32-2193.32. Condominium recovery fund; award limits. 32-2193.33. Payments to the condominium recovery fund. 32-2193.34. Statute of limitations; service of summons; application for payment; insufficient monies; deﬁnition. 32-2193.35. Notice of claim to judgment debtor; written response. 32-2193.36. Correction of deﬁciencies in the application. 32-2193.37. Investigation and discovery. 32-2193.38. Final decision and order on claim; notice. 32-2193.39. Claimant’s right to appeal denial of claim; service of notice of appeal; response; failure to ﬁle response. 32-2193.40. Management of fund. 32-2193.41. Commissioner’s standing in court. 32-2193.42. Subrogation of rights. 32-2193.43. Waiver of rights.
ARTICLE 6. ORGANIZATION AND REGULATION OF CEMETERIES
32-2194. Exceptions. 32-2194.01. Notice to commissioner of intention to sell cemetery property; exceptions; restrictions. 32-2194.02. Examination by commissioner; fee. 32-2194.03. Issuance or denial of certiﬁcate of authority; voidable sale; order prohibiting sale; investigations by commis- sioner; public hearings; summary orders. 32-2194.04. Contract disclosures; contract disclaimers. 32-2194.05. Advertising material; contents; order prohibiting use. 32-2194.06. Records of transactions. 32-2194.07. Recording of actions. 32-2194.08. Administrative penalties. 32-2194.09. Civil liabilities. 32-2194.10. Change of cemetery plan after approval by commis- sioner; notice; fee. 32-2194.11. Delivery of clear title by cemetery of cemetery plots. 32-2194.12. Permanent access to cemetery land. 32-2194.13. Deposit of fees. 32-2194.14. Cemetery brokers; disclosures. 32-2194.15. Jurisdiction.
ity granted. 32-2194.25. Trust fund to be established before existing cemetery can advertise as endowed-care cemetery. 32-2194.26. Initial deposit required in endowment-care fund. 32-2194.27. Restrictive use of income from endowed-care fund; obli- gation. 32-2194.28. Deposit in endowed-care fund from sales. 32-2194.29. Posting of signs by cemeteries. 32-2194.30. Restriction on use of care funds. 32-2194.31. Crematories. 32-2194.32. Opening and closing of burial places. 32-2194.33. Cemetery property owners; address notiﬁcation recla- mation; abandoned cemetery plot.
ARTICLE 7. SALE OF UNSUBDIVIDED LANDS
32-2195. Notice to commissioner of intention before offering for sale or lease of unsubdivided land; deﬁnition. 32-2195.01. Power of commissioner to exempt certain unsubdivided land by special order. 32-2195.02. Examination of unsubdivided land by commissioner; fee. 32-2195.03. Unsubdivided land reports; denial of issuance; order prohibiting sale or lease; investigations; hearings; summary orders. 32-2195.04. Sale of lots or parcels of unsubdivided lands; conditions precedent; methods. 32-2195.05. Advertising material; contents; order prohibiting use; costs of investigation. 32-2195.06. Civil liabilities. 32-2195.07. Jurisdiction. 32-2195.09. Recordable forms of contracts. 32-2195.10. Change of plan after approval by commissioner; notice. 32-2195.11. Civil penalties; limitation.
ARTICLE 9. REAL ESTATE TIMESHARES
32-2197. Deﬁnitions. 32-2197.01. Creation of timeshare plans; ratio. 32-2197.02. Notice of intent to sell; application for timeshare plan public report; authorization for pre-sales. 32-2197.03. Rescission of contract or agreement. 32-2197.04. Notiﬁcation of material change.
32-2197.05.
tion; ﬁnancial assurance. 32-2197.06. Declaration of dedication. 32-2197.07. Examination of plan by commissioner; fees. 32-2197.08. Issuance of public report by commissioner on timeshare plan; denial of issuance; additional information; use of another state’s public report. 32-2197.09. Rescindable sale or lease. 32-2197.10. Timeshare interest reservations. 32-2197.11. Developer supervisory duties. 32-2197.12. Blanket encumbrance; lien; alternative assurance. 32-2197.13. Hearing on denial of public report. 32-2197.14. Investigations; orders; hearings. 32-2197.15. Order; appointment of receiver; writ of ne exeat. 32-2197.17. Advertising and promotional requirements; telemarketing and promotional employees; presenta- tions and tours, drawings and contests; commission- er’s authority; disclosures.
32-2197.18. Recording of actions. 32-2197.19. Civil liabilities; prohibitions; limitations. 32-2197.20. Civil penalty. 32-2197.21. Payment of ﬁnder fees; limits; prohibited activities; records; deﬁnition. 32-2197.22. Exemptions; disclosures; exempt communications.
Escrow or trust account; agreement; evidence of comple-
Section 32-2197.23. Power of commissioner to exempt timeshare plans. 32-2197.24. Applicability of article.
ARTICLE 10. MEMBERSHIP CAMPING
32-2198. Unlawful offer or sale of membership camping contract. 32-2198.01. Application for membership camping public report; sig- nature; amendment. 32-2198.02. Issuance of public report; representations prohibited. 32-2198.03. Exemptions. 32-2198.04. Examination of project by commissioner. 32-2198.05. Contracts; cancellation. 32-2198.06. Execution of notes; assignment; purchaser’s defenses retained. 32-2198.08. Denial, suspension or revocation of a public report. 32-2198.09. Fees. 32-2198.10. Advertising plans; disclosures; lotteries and drawings. 32-2198.11. Purchaser’s remedies. 32-2198.13. Construction of this article. 32-2198.14. Advertising availability of campgrounds to campground members; blanket encumbrances.
ARTICLE 1. REAL ESTATE DEPARTMENT
32-2101. Deﬁnitions
In this chapter, unless the context otherwise re- quires:
1. ‘‘Acting in concert’’ means evidence of collaborat-
ing to pursue a concerted plan.
2. ‘‘Advertising’’ means the attempt by publication,
dissemination, exhibition, solicitation or circulation, oral or written, or for broadcast on radio or television to induce directly or indirectly any person to enter into any obligation or acquire any title or interest in lands subject to this chapter including the land sales
contract to be used and any photographs, drawings or artist’s presentations of physical conditions or facili- ties existing or to exist on the property. Advertising does not include:
(a) Press releases or other communications deliv-
ered to newspapers, periodicals or other news media for general information or public relations purposes if
no charge is made by the newspapers, periodicals or other news media for the publication or use of any part of these communications.
(b) Communications to stockholders as follows:
(i) Annual reports and interim ﬁnancial reports.
or reunited and that was not caused or created by the owner of the parcels.
6. ‘‘Blanket encumbrance’’ means any mortgage,
any deed of trust or any other encumbrance or lien securing or evidencing the payment of money and affecting more than one lot or parcel of subdivided land, or an agreement affecting more than one lot or parcel by which the subdivider holds the subdivision under an option, contract to sell or trust agreement. Blanket encumbrance does not include taxes and assessments levied by public authority.
7. ‘‘Board’’ means the state real estate advisory
8. ‘‘Broker’’, when used without modiﬁcation,
means a person who is licensed as a broker under this chapter or who is required to be licensed as a broker
9. ‘‘Camping site’’ means a space designed and
promoted for the purpose of locating any trailer, tent, tent trailer, pickup camper or other similar device used for camping.
10. ‘‘Cemetery’’ or ‘‘cemetery property’’ means any
one, or a combination of more than one, of the follow-
ing in a place used, or intended to be used, and dedicated for cemetery purposes:
A burial park, for earth interments.
A mausoleum, for crypt or vault entombments.
A crematory, or a crematory and columbarium,
for cinerary interments.
(d) A cemetery plot, including interment rights,
mausoleum crypts, niches and burial spaces.
11. ‘‘Cemetery broker’’ means a person other than a
real estate broker or real estate salesperson who, for another, for compensation:
(a) Sells, leases or exchanges cemetery property or
interment services of or for another, or on the person’s own account.
(b) Offers for another or for the person’s own ac-
count to buy, sell, lease or exchange cemetery prop- erty or interment services.
(c) Negotiates the purchase and sale, lease or ex-
change of cemetery property or interment services.
(d) Negotiates the purchase or sale, lease or ex-
change, or lists or solicits, or negotiates a loan on or
leasing of cemetery property or interment services.
Securities prospectuses.
‘‘Cemetery salesperson’’ means a natural per-
Applications for listing of securities on stock
son who acts on the person’s own behalf or through and on behalf of a professional limited liability com-
pany or a professional corporation engaged by or on
behalf of a licensed cemetery or real estate broker, or
(viii) Offering statements.
‘‘Affiliate’’ means a person who, directly or indi-
rectly through one or more intermediaries, controls, is
controlled by or is under common control with the
through and on behalf of a corporation, partnership or limited liability company that is licensed as a ceme-
tery or real estate broker, to perform any act or
person speciﬁed.
transaction included in the deﬁnition of cemetery broker.
4. ‘‘Associate broker’’ means a licensed broker em-
ployed by another broker. Unless otherwise speciﬁ- cally provided, an associate broker has the same license privileges as a salesperson.
5. ‘‘Barrier’’ means a natural or man-made geo-
graphical feature that prevents parcels of land from being practicably, reasonably and economically united
13. ‘‘Commissioner’’ means the state real estate
14. ‘‘Common promotional plan’’ means a plan, un-
dertaken by a person or a group of persons acting in concert, to offer lots for sale or lease. If the land is offered for sale by a person or group of persons acting in concert, and the land is contiguous or is known,
designated or advertised as a common unit or by a common name, the land is presumed, without regard to the number of lots covered by each individual offering, as being offered for sale or lease as part of a common promotional plan. Separate subdividers sell- ing lots or parcels in separately platted subdivisions within a master planned community shall not be deemed to be offering their combined lots for sale or lease as part of a common promotional plan.
15. ‘‘Compensation’’ means any fee, commission,
salary, money or other valuable consideration for services rendered or to be rendered as well as the
promise of consideration whether contingent or not.
16. ‘‘Contiguous’’ means lots, parcels or fractional
interests that share a common boundary or point.
Lots, parcels or fractional interests are not contiguous if they are separated by either of the following:
A road, street or highway that has been estab-
lished by this state or by any agency or political subdivision of this state, that has been designated by
the federal government as an interstate highway or that has been regularly maintained by this state or by any agency or political subdivision of this state and has been used continuously by the public for at least the last ﬁve years.
17. ‘‘Control’’ or ‘‘controlled’’ means a person who,
through ownership, voting rights, power of attorney,
proxy, management rights, operational rights or other rights, has the right to make decisions binding on an entity, whether a corporation, a partnership or any other entity.
18. ‘‘Corporation licensee’’ means a lawfully orga-
nized corporation that is registered with the Arizona
corporation commission and that has an officer li- censed as the designated broker pursuant to section
19. ‘‘Department’’ means the state real estate de-
20. ‘‘Designated broker’’ means the natural person
who is licensed as a broker under this chapter and
(b) Sole proprietorship if the sole proprietor is a broker licensed pursuant to this chapter.
24. ‘‘Fractional interest’’ means an undivided inter-
est in improved or unimproved land, lots or parcels of any size created for the purpose of sale or lease and evidenced by any receipt, certiﬁcate, deed or other document conveying the interest. Undivided interests in land, lots or parcels created in the names of a husband and wife as community property, joint ten-
ants or tenants in common, or in the names of other persons who, acting together as part of a single
transaction, acquire the interests without a purpose
to divide the interests for present or future sale or
lease shall be deemed to constitute only one fractional interest.
25. ‘‘Improved lot or parcel’’ means a lot or parcel of
a subdivision upon which lot or parcel there is a
residential, commercial or industrial building or con- cerning which a contract has been entered into be-
tween a subdivider and a purchaser that obligates the
subdivider directly, or indirectly through a building contractor, to complete construction of a residential, commercial or industrial building on the lot or parcel within two years from the date on which the contract
of sale for the lot is entered into.
26. ‘‘Inactive license’’ means a license issued pur-
suant to article 2 of this chapter to a licensee who is on inactive status during the current license period and who is not engaged by or on behalf of a broker.
27. ‘‘Lease’’ or ‘‘leasing’’ includes any lease, whether
it is the sole, the principal or any incidental part of a
28. ‘‘License’’ means the whole or part of any
agency permit, certiﬁcate, approval, registration, public report, charter or similar form of permission required by this chapter.
29. ‘‘License period’’ means the period beginning
with the date of original issue or renewal of a partic-
ular license and ending on the expiration date, if any.
30. ‘‘Licensee’’ means a person to whom a license
who is either:
for the current license period has been granted under
Designated to act on behalf of an employing real
any provision of this chapter, and, for purposes of
estate, cemetery or membership camping entity.
section 32-2153, subsection A, shall include original
Doing business as a sole proprietor.
‘‘Developer’’ means a person who offers real
‘‘Limited liability company licensee’’ means a
property in a development for sale, lease or use, either immediately or in the future, on the person’s own behalf or on behalf of another person, under this chapter. Developer does not include a person whose involvement with a development is limited to the listing of property within the development for sale, lease or use.
22. ‘‘Development’’ means any division, proposed
division or use of real property that the department
has authority to regulate, including subdivided and unsubdivided lands, cemeteries, condominiums, timeshares, membership campgrounds and stock co- operatives.
23. ‘‘Employing broker’’ means a person who is
licensed or is required to be licensed as a:
(a) Broker entity pursuant to section 32-2125, sub-
lawfully organized limited liability company that has
a member or manager who is a natural person and
who is licensed as the designated broker pursuant to section 32-2125.
32. ‘‘Lot reservation’’ means an expression of inter-
est by a prospective purchaser in buying at some time
in the future a subdivided or unsubdivided lot, unit or
parcel in this state. In all cases, a subsequent affir- mative action by the prospective purchaser must be taken to create a contractual obligation to purchase.
33. ‘‘Master planned community’’ means a develop-
ment that consists of two or more separately platted subdivisions and that is either subject to a master declaration of covenants, conditions or restrictions, is subject to restrictive covenants sufficiently uniform in character to clearly indicate a general scheme for improvement or development of real property or is
governed or administered by a master owner’s asso- ciation.
34. ‘‘Member’’ means a member of the real estate
35. ‘‘Membership camping broker’’ means a person,
other than a salesperson, who, for compensation:
(a) Sells, purchases, lists, exchanges or leases
membership camping contracts.
(b) Offers to sell, purchase, exchange or lease mem-
bership camping contracts.
(c) Negotiates or offers, attempts or agrees to ne-
gotiate the sale, purchase, exchange or lease of mem- bership camping contracts.
(d) Advertises or holds himself out as being en-
gaged in the business of selling, buying, exchanging or leasing membership camping contracts or counsel-
ing or advising regarding membership camping con- tracts.
(e) Assists or directs in the procuring of prospects
calculated or intended to result in the sale, purchase, listing, exchange or lease of membership camping contracts. (f) Performs any of the foregoing acts as an em- ployee or on behalf of a membership camping operator or membership contract owner.
36. ‘‘Membership camping contract’’ means an
agreement offered or sold in this state evidencing a purchaser’s right or license to use the camping or
outdoor recreation facilities of a membership camping operator and includes a membership that provides for this use.
37. ‘‘Membership camping operator’’ means an en-
terprise, other than one that is tax exempt under section 501(c) (3) of the internal revenue code of 1986, as amended, that solicits membership paid for by a fee or periodic payments and has as one of its purposes camping or outdoor recreation including the use of camping sites primarily by members. Membership camping operator does not include camping or recre- ational trailer parks that are open to the general public and that contain camping sites rented for a per use fee or a mobile home park.
38. ‘‘Membership camping salesperson’’ means a
natural person who acts on the person’s own behalf or
through and on behalf of a professional limited liabil- ity company or a professional corporation engaged by or on behalf of a licensed membership camping or real estate broker, or by or on behalf of a corporation, partnership or limited liability company that is li- censed as a membership camping or real estate bro- ker, to perform any act or participate in any transac- tion in a manner included in the deﬁnition of membership camping broker.
39. ‘‘Partnership licensee’’ means a partnership
with a managing general partner who is licensed as
the designated broker pursuant to section 32-2125.
40. ‘‘Permanent access’’, as required under article 4
of this chapter, means permanent access from the
subdivision to any federal, state or county highway.
41. ‘‘Perpetual or endowed-care cemetery’’ means a
cemetery wherein lots or other burial spaces are sold or transferred under the representation that the
cemetery will receive ‘‘perpetual’’ or ‘‘endowed’’ care as deﬁned in this section free of further cost to the purchaser after payment of the original purchase price for the lot, burial space or interment right.
42. ‘‘Perpetual-care’’ or ‘‘endowed-care’’ means the
maintenance and care of all places where interments have been made of the trees, shrubs, roads, streets
and other improvements and embellishments con- tained within or forming a part of the cemetery. This shall not include the maintenance or repair of monu- ments, tombs, copings or other man-made ornaments as associated with individual burial spaces.
43. ‘‘Person’’ means any individual, corporation,
partnership or company and any other form of multi-
ple organization for carrying on business, foreign or domestic.
44. ‘‘Private cemetery’’ means a cemetery or place
that is not licensed under article 6 of this chapter, where burials or interments of human remains are
made, in which sales or transfers of interment rights or burial plots are not made to the public and in which not more than ten interments or burials occur annu- ally.
45. ‘‘Promotion’’ or ‘‘promotional practice’’ means
advertising and any other act, practice, device or scheme to induce directly or indirectly any person to enter into any obligation or acquire any title or interest in or use of real property subject to this chapter, including meetings with prospective pur- chasers, arrangements for prospective purchasers to visit real property, travel allowances and discount, exchange, refund and cancellation privileges.
46. ‘‘Real estate’’ includes leasehold-interests and
any estates in land as deﬁned in title 33, chapter 2,
articles 1 and 2, regardless of whether located in this state.
47. ‘‘Real estate broker’’ means a person, other
than a salesperson, who, for another and for compen-
(a) Sells, exchanges, purchases, rents or leases real
estate or timeshare interests.
(b) Offers to sell, exchange, purchase, rent or lease
real estate or timeshare interests.
gotiate the sale, exchange, purchase, rental or leasing of real estate or timeshare interests.
(d) Lists or offers, attempts or agrees to list real
estate or timeshare interests for sale, lease or ex- change.
(e) Auctions or offers, attempts or agrees to auction
(f) Buys, sells, offers to buy or sell or otherwise
deals in options on real estate or timeshare interests or improvements to real estate or timeshare interests.
(g) Collects or offers, attempts or agrees to collect
rent for the use of real estate or timeshare interests.
(h) Advertises or holds himself out as being en-
gaged in the business of buying, selling, exchanging, renting or leasing real estate or timeshare interests or counseling or advising regarding real estate or time- share interests.
(i) Assists or directs in the procuring of prospects,
calculated to result in the sale, exchange, leasing or rental of real estate or timeshare interests.
(j) Assists or directs in the negotiation of any
transaction calculated or intended to result in the sale, exchange, leasing or rental of real estate or timeshare interests.
(k) Incident to the sale of real estate negotiates or
offers, attempts or agrees to negotiate a loan secured or to be secured by any mortgage or other encum- brance upon or transfer of real estate or timeshare interests subject to section 32-2155, subsection C. This subdivision does not apply to mortgage brokers as deﬁned in and subject to title 6, chapter 9, article 1. (l) Engages in the business of assisting or offering to assist another in ﬁling an application for the purchase or lease of, or in locating or entering upon, lands owned by the state or federal government. (m) Claims, demands, charges, receives, collects or contracts for the collection of an advance fee in connection with any employment enumerated in this section, including employment undertaken to pro- mote the sale or lease of real property by advance fee listing, by furnishing rental information to a prospec-
tive tenant for a fee paid by the prospective tenant, by advertisement or by any other offering to sell, lease, exchange or rent real property or selling kits con- nected therewith. This shall not include the activities of any communications media of general circulation or coverage not primarily engaged in the advertisement of real estate or any communications media activities that are speciﬁcally exempt from applicability of this article under section 32-2121.
(n) Engages in any of the acts listed in subdivisions
(a) through (m) of this paragraph for the sale or lease
of other than real property if a real property sale or
lease is a part of, contingent on or ancillary to the transaction.
(o) Performs any of the acts listed in subdivisions
(a) through (m) of this paragraph as an employee of,
or in behalf of, the owner of real estate, or interest in
the real estate, or improvements affixed on the real estate, for compensation.
48. ‘‘Real estate sales contract’’ means an agree-
ment in which one party agrees to convey title to real estate to another party upon the satisfaction of spec- iﬁed conditions set forth in the contract.
49. ‘‘Real estate salesperson’’ means a natural per-
son who acts on the person’s own behalf or through and on behalf of a professional limited liability com- pany or a professional corporation engaged by or on behalf of a licensed real estate broker, or by or on
behalf of a limited liability company, partnership or corporation that is licensed as a real estate broker, to perform any act or participate in any transaction in a manner included in the deﬁnition of real estate broker subject to section 32-2155.
50. ‘‘Sale’’ or ‘‘lease’’ includes every disposition,
transfer, option or offer or attempt to dispose of or transfer real property, or an interest, use or estate in the real property, including the offering of the prop- erty as a prize or gift if a monetary charge or consid- eration for whatever purpose is required.
51. ‘‘Salesperson’’, when used without modiﬁcation,
means a natural person who acts on the person’s own
behalf or through and on behalf of a professional limited liability company or a professional corpora- tion licensed under this chapter or any person re- quired to be licensed as a salesperson under this chapter.
52. ‘‘School’’ means a person or entity that offers a
course of study towards completion of the education requirements leading to licensure or renewal of licensure under this chapter.
53. ‘‘Stock cooperative’’ means a corporation to
(a) The corporation is formed or used to hold title to
improved real property in fee simple or for a term of years.
(b) All or substantially all of the shareholders of
the corporation each receive a right of exclusive occupancy in a portion of the real property to which
the corporation holds title.
(c) The right of occupancy may only be transferred
with the concurrent transfer of the shares of stock in the corporation held by the person having the right of occupancy.
54. ‘‘Subdivider’’ means any person who offers for
sale or lease six or more lots, parcels or fractional interests in a subdivision or who causes land to be
subdivided into a subdivision for the subdivider or for others, or who undertakes to develop a subdivision, but does not include a public agency or officer autho- rized by law to create subdivisions.
55. ‘‘Subdivision’’ or ‘‘subdivided lands’’:
(a) Means improved or unimproved land or lands
divided or proposed to be divided for the purpose of sale or lease, whether immediate or future, into six or more lots, parcels or fractional interests.
(b) Includes a stock cooperative, lands divided or
proposed to be divided as part of a common promo-
tional plan and residential condominiums as deﬁned in title 33, chapter 9.
(i) Leasehold offerings of one year or less.
(ii) The division or proposed division of land located
in this state into lots or parcels each of which is or will be thirty-six acres or more in area including to the centerline of dedicated roads or easements, if any, contiguous to the lot or parcel. (iii) The leasing of agricultural lands or apart- ments, offices, stores, hotels, motels, pads or similar space within an apartment building, industrial build- ing, rental recreational vehicle community, rental manufactured home community, rental mobile home park or commercial building. (iv) The subdivision into or development of parcels, plots or fractional portions within the boundaries of a cemetery that has been formed and approved pursu- ant to this chapter.
56. ‘‘Timeshare’’ or ‘‘timeshare property’’ means
real property ownership or right of occupancy in real property pursuant to article 9 of this chapter. For the purposes of this chapter, a timeshare is not a security unless it meets the deﬁnition of a security under section 44-1801.
32-2106
57. ‘‘Trustee’’ means:
(a) A person designated under section 32-2194.27
to act as a trustee for an endowment-care cemetery
A person holding bare legal title to real property
under a subdivision trust. A trustee shall not be
deemed to be a developer, subdivider, broker or sales- person within this chapter.
58. ‘‘Unimproved lot or parcel’’ means a lot or
parcel of a subdivision that is not an improved lot or parcel.
59. ‘‘Unsubdivided lands’’ means land or lands di-
vided or proposed to be divided for the purpose of sale or lease, whether immediate or future, into six or more lots, parcels or fractional interests and the lots or parcels are thirty-six acres or more each but less than one hundred sixty acres each, or that are offered, known or advertised under a common promotional plan for sale or lease, except that agricultural leases
shall not be included in this deﬁnition. 2007
Recent legislative year: Laws 2001, Ch. 170, § 2; Laws 2004,
Ch. 100, §
1; Laws 2005, Ch. 70, § 1; Laws 2007, Ch. 165, § 1.
32-2102. Administration of chapter by real es- tate department; purpose This chapter shall be administered by the state real estate department under the direction of the real estate commissioner. The purpose of the department in administering this chapter is to protect the public interest through licensure and regulation of the real estate profession in this state. 1997
32-2103. Placement of monies collected; revi-
sion of fees
A. The department shall deposit, pursuant to sec-
tions 35-146 and 35-147, all monies collected under
the provisions of this chapter in the state general fund unless otherwise prescribed by law.
B. Each year the commissioner shall revise all fees
collected under this chapter within the limits pre- scribed by this chapter in such a manner that the revenue derived from such fees equals at least ninety- ﬁve per cent but not more than one hundred ten per cent of the anticipated appropriated budget for the department for the succeeding ﬁscal year. If the revenue derived from the fees exceeds one hundred ten per cent of the anticipated appropriated budget for the department for the succeeding ﬁscal year, the commissioner shall lower the fees in the succeeding year in proportion to the excess. 2000
Recent legislative year: Laws 2000, Ch. 193, § 304.
32-2104. Real estate advisory board; members;
terms; qualiﬁcations; compensation; chairman; duties
A. A real estate advisory board is established com-
posed of nine members appointed by the governor. The term of office of each member is six years, and the terms of three members expire on January 31 of each odd numbered year. Appointment to ﬁll a vacancy occurring other than by expiration of term shall be ﬁlled by appointment for the unexpired portion of the term only.
B. The membership of the board shall consist of:
1. Two members, each of whom is a real estate
broker with at least ﬁve years of brokerage experience in this state. Not more than one member shall be appointed from any one county.
2. Two members, each of whom has been engaged
in residential real estate brokerage for the ﬁve years immediately preceding appointment.
3. Two members who are primarily engaged in
subdividing real property.
4. Three public members who are not related
within the third degree of consanguinity or affinity to any person holding a broker’s or salesperson’s license
C. Members of the board shall receive no compen-
sation but shall be reimbursed for subsistence ex-
penses pursuant to section 38-624 and travel ex- penses pursuant to section 38-623.
D. The board annually shall select from its mem-
bership a chairperson for the board.
E. The board shall provide the commissioner with
such recommendations as it deems necessary and beneﬁcial to the best interests of the public. The board shall also provide recommendations on speciﬁc ques- tions or proposals as the board deems necessary or as requested by the commissioner.
F. The board annually shall present to the governor
an evaluation of the performance of the real estate
commissioner and the real estate department.
G. Not more than ﬁve members of the board from
any one county may serve concurrently. 2000
Recent legislative year: Laws 2000, Ch. 174, § 1.
32-2105. Meetings of the state real estate advi- sory board
A. The board shall meet for the transaction of
business not less than once each quarter-year at a place within the state it designates. The board may hold other meetings it deems advisable upon ﬁve days’ written notice of the time and place of the
meeting, signed by the commissioner or a majority of the members of the board.
B. A majority of the board shall constitute a quo-
rum. A vacancy on the board shall not impair the
rights or powers of the remaining members. 1975
32-2106. Real estate commissioner; appoint-
ment; qualiﬁcations
A. The real estate commissioner shall be appointed
by the governor, pursuant to section 38-211. The real
estate commissioner shall serve at the pleasure of the governor.
B. To be a candidate for the position of real estate
commissioner a person shall have at least ﬁve years’ experience in the real estate industry, title insurance industry, banking or mortgage broker industry and three years’ administrative experience and shall not at the date of acceptance of appointment be ﬁnan- cially interested in any real estate or brokerage ﬁrm, nor act as a broker, and salesman or agent therefor except through a trust over which the applicant has no control.
32-2107. Powers and duties of commissioner;
compensation; administration of de- partment; seal; revolving fund
A. The commissioner shall have charge of the de-
partment with power to administer it in accordance with the provisions of and to carry out the purposes of this chapter. The commissioner shall adopt a seal which shall bear the words ‘‘real estate commissioner, state of Arizona’’, which shall be used for the authen- tication of proceedings of the department and the
official documents thereof. The commissioner’s prin-
cipal office shall be at the state capitol. The commis- sioner may have branch offices the commissioner deems necessary in other cities.
B. The commissioner shall receive compensation as
determined pursuant to section 38-611.
C. The commissioner shall prepare and cause to be
produced and circulated among the licensees and the general public educational matter the commissioner deems helpful and proper for the guidance and assis- tance of both licensees and the public. The commis-
sioner may assess a fee for each of these educational products that does not exceed a level reasonably estimated to be sufficient to recover production and distribution costs.
D. In cooperation with industry educators, content
experts and other professionals, the commissioner may develop, sponsor or hold educational seminars and workshops for the beneﬁt of licensees.
E. A real estate department education revolving
fund is established consisting of monies received from
the sale of educational matter under subsection C of this section and grants of monies to be used in the production of educational products. Monies in the
fund shall be used for the printing of a compilation of real estate laws and rules and other educational publications and for other educational efforts the commissioner deems helpful and proper for the guid- ance and assistance of licensees and the public, in- cluding sponsoring and holding educational seminars or workshops for educators and other licensees. The department shall establish the revolving fund as a separate account. The department shall make a full accounting of its use to the department of administra- tion annually or as required by the department of administration. Expenditures from the fund and re- imbursement to the fund shall be as prescribed by rules of the department of administration. Monies received in the real estate department education revolving fund are not subject to reversion, except that all monies in the fund in excess of twenty-ﬁve thousand dollars at the end of the ﬁscal year revert to the state general fund.
F. The commissioner shall adopt rules, in accord
with this chapter, as the commissioner deems neces- sary to carry out this chapter.
G. The commissioner may approve standardized
legal forms for use in the sale or lease of real estate for
the purpose of recognizing compliance of the forms with this chapter and the rules adopted pursuant to this chapter.
Recent legislative year: Laws 2007, Ch. 9, § 1.
32-2107.01. Recorded disclaimer of unlawful
A. The commissioner shall execute and record in
the office of the county recorder in each county in this state a document that disclaims the validity and enforceability of certain restrictions and covenants. The document shall contain a disclaimer in substan- tially the following form:
It is the law of this state that any cove- nants or restrictions that are based on race, religion, color, handicap status or national origin are invalid and unenforceable. If the invalid covenant or restriction is contained in a document that is recorded in this county, it is hereby declared void.
B. The document that is executed and recorded by
the commissioner shall include the legal description speciﬁed by Title 11, Chapter 1, Article 1 for the appropriate county.
C. This section does not affect any other covenant,
condition or restriction.
Recent legislative year: Laws 2000, Ch. 16, § 1.
32-2108. Powers and duties of commissioner to make investigations and require in- formation
A. The commissioner on the commissioner’s own
motion may, and upon a veriﬁed complaint in writing shall, investigate the actions of any natural person or entity engaged in the business or acting in the capac- ity of a broker, salesperson or developer and may at any time examine the books and records used in connection with the business insofar as the commis- sioner reasonably believes the books or records per- tain to the transfer, sale, rental, lease, use or man- agement of real property. In connection with an investigation, the commissioner or the commission- er’s representative may take testimony and may
examine and copy documents and other physical evidence that relate to the investigation. If necessary, the commissioner or the commissioner’s representa- tive may issue subpoenas to compel the testimony of witnesses and the production of documents and other evidence. If a person refuses to comply with a sub- poena, the commissioner or the commissioner’s repre- sentative may apply to the superior court for an order to compel compliance.
B. The commissioner shall establish a certiﬁcation
and enforcement unit that is charged with investiga- tive duties relevant to the rules of the commissioner
and the laws of this state, including applications for certiﬁcation, investigations and enforcement and other duties as the commissioner prescribes.
C. The commissioner may require any additional
information and documents that are reasonably nec- essary to determine the good moral character of an applicant for or holder of a license or public report or renewal or amendment of a license or public report. For the purposes of this subsection, ‘‘applicant’’ or ‘‘holder’’ means a person and, if an entity, any officer, director, member, manager, partner, owner, trust ben- eﬁciary holding ten per cent or more beneﬁcial inter-
est, stockholder owning ten per cent or more stock and person exercising control of the entity. The informa- tion may include:
2. Fingerprints and background information pur-
suant to section 32-2108.01.
3. An affidavit setting out whether the applicant or
D. The department may issue a license to an orig-
inal license applicant before receiving the results of a
criminal history records check pursuant to this sec- tion if there is no evidence or reasonable suspicion
that the applicant has a criminal history background. However, the department shall suspend the license if
a ﬁngerprint card is returned as unreadable and an
holder has:
applicant who was issued a license fails to submit a
Been convicted of a felony or a misdemeanor.
new ﬁngerprint card within ten days after being
Had any business or professional license de-
notiﬁed by the department.
nied, suspended or revoked or had any other disciplin- ary action taken or administrative order entered against the applicant or holder by any regulatory agency.
E. This section does not affect the department’s
authority to otherwise issue, deny, cancel, terminate, suspend or revoke a license.
F. For purposes of this section, ‘‘license applicant’’
Had a public report denied or suspended.
Been permanently or temporarily enjoined by
Each original real estate, cemetery and member-
order, judgment or decree from engaging in or con- tinuing any conduct or practice in connection with the sale or purchase of real estate, cemetery property, time-share intervals, membership camping camp- grounds or contracts or securities or involving con- sumer fraud or the racketeering laws of this state.
(e) Had any adverse decision or judgment entered
against the applicant or holder arising out of the
conduct of any business in or involving a transaction in real estate, cemetery property, time-share intervals or membership camping campgrounds or contracts involving fraud, dishonesty or moral turpitude. (f) Filed, or is subject to, a petition under any chapter of the federal bankruptcy act.
ship camping salesperson and broker applicant pur- suant to article 2 of this chapter.
2. Each natural person, or for an entity applicant,
any person exercising control of the entity, who ap-
plies for an original certiﬁcate of approval to operate
a real estate school, or for a renewal certiﬁcate, any natural person or person exercising control who has not previously submitted a ﬁngerprint card to the department.
3. Any natural person, or for an entity applicant,
any person exercising control of the entity, on whom the department has evidence of a criminal record that has not been previously reviewed or evaluated by the department, who applies for a:
Participated in, operated or held an interest or
License renewal pursuant to section 32-2130.
exercised control in any entity to which subdivision
Public report to:
(b), (c), (d), (e) or (f) applies.
32-2108.01. Fingerprinting license applicants; requirements; fees; deﬁnition
A. Before receiving and holding a license issued
pursuant to this chapter, each license applicant shall submit a full set of ﬁngerprints and the fees required
in section 41-1750 to enable the state real estate department to conduct a criminal background inves- tigation to determine the suitability for licensure of the applicant. The state real estate department shall
submit completed applicant ﬁngerprint cards and the fees to the department of public safety. The depart- ment of public safety shall conduct applicant criminal history records checks pursuant to section 41-1750, Public Law 92-544 and any other applicable federal laws. The department of public safety, on behalf of the state real estate department, may exchange license applicant ﬁngerprint card information with the fed- eral bureau of investigation for national criminal history records checks.
B. The fees the department collects under subsec-
tion A of this section shall be credited pursuant to section 35-148.
C. The license applicant is responsible for provid-
ing the department with a readable ﬁngerprint card. The license applicant shall pay any costs attributable to reﬁngerprinting the license applicant due to un- readable prints and any fees required for the resubmission of ﬁngerprints.
(i) Sell or lease subdivided lands pursuant to arti-
cle 4 of this chapter.
(ii) Sell or lease unsubdivided lands pursuant to
article 7 of this chapter.
(iii) Sell or lease time-share estates pursuant to
(iv) Sell membership camping contracts pursuant
to article 10 of this chapter.
(c) Certiﬁcate of authority to sell cemetery lots
pursuant to article 6 of this chapter. 1995
32-2109. Employment; compensation The commissioner shall appoint a secretary and such deputies, assistants, and clerks as are necessary. The compensation of all such employees shall be as determined pursuant to section 38-611. 1970
32-2110. Interest of department officer or em- ployee in real estate company pro- hibited No officer or employee of the department shall be connected with or directly or indirectly interested in any real estate company or real estate brokerage ﬁrm.
32-2111. Attorney general as legal adviser and representative of commissioner The attorney general shall act for the commissioner in all legal actions or proceedings and shall advise him upon all questions of law arising out of the administration of this chapter. 1993
32-2112. Admissibility of certiﬁed copies of de- partment records in evidence Properly certiﬁed copies of records of the depart- ment or documents ﬁled therein shall be received in evidence in all courts of the state equally and with like effect as the originals.
32-2113. Recorded disclosure for territory in the vicinity of a military airport or ancillary military facility
the office of the county recorder in each county in this state that includes territory in the vicinity of a mili- tary airport or ancillary military facility as deﬁned in section 28-8461 a document, applicable to property located within territory in the vicinity of a military airport or ancillary military facility, with the follow-
ing disclosure: ‘‘This property is located within terri- tory in the vicinity of a military airport or ancillary military facility and may be subject to increased noise and accident potential.’’
B. The attorney general shall prepare in recordable
form the document that is executed and recorded by
the commissioner pursuant to this section.
C. The document that is executed and recorded by
the commissioner shall include a legal description of the territory in the vicinity of a military airport or
ancillary military facility. The military airport shall cause the legal description of territory in the vicinity of the military airport or ancillary military facility deﬁned in section 28-8461 to be prepared and shall provide the legal description to the commissioner and the state land department in recordable form in twelve point font on eight and one-half inch by eleven inch paper.
D. The state land department shall prepare maps
with the legal descriptions pursuant to section 37-
Recent legislative year: Laws 2001, Ch. 23, § 13; Laws 2004, Ch. 111, § 13; Laws 2004, Ch. 235, § 8.
32-2114. Recorded disclosure for land under a military training route or restricted air space
the office of the county recorder in each county in this state that includes land under a military training route as deﬁned in section 28-8461 and as delineated in the military training route map prepared by the state land department pursuant to section 37-102 a document, applicable to land under a military train- ing route as delineated in the military training route map, disclosing that the land is under a military training route.
B. The commissioner shall execute and record in
the office of the county recorder in each county in this state that includes land under restricted air space as delineated in the restricted air space map prepared by the state land department pursuant to section 37-102 a document, applicable to land under restricted air space as delineated in the restricted air space map, disclosing that the land is under restricted air space.
C. If a military training route changes and people
who were notiﬁed pursuant to subsection A of this section no longer have property under a military training route as delineated in the military training route map, the commissioner shall execute and record in the office of the county recorder in the county in which the property is located a document disclosing
that the land is not under a military training route.
D. If restricted air space changes and people who
were notiﬁed pursuant to subsection B of this section no longer have property under restricted air space as delineated in the restricted air space map, the com-
missioner shall execute and record in the office of the county recorder in the county in which the property is located a document disclosing that the land is not under restricted air space.
E. The attorney general shall prepare in recordable
form the documents that are executed and recorded by the commissioner pursuant to this section.
F. The documents that are executed and recorded
by the commissioner pursuant to this section shall include a legal description of the military training route as delineated in the military training route map and a legal description of the restricted air space as delineated in the restricted air space map. 2006
Recent legislative year: Laws 2004, Ch. 168, § 2; Laws 2006,
Ch. 113, §
32-2115. Department’s web site; military train- ing route map; restricted air space map The department shall post on its web site the military training route map and the restricted air space map prepared by the state land department pursuant to section 37-102. 2006
32-2116. Military training routes; contacts
A. Each year the department shall contact the
chairperson of the Arizona military airspace working group and request the name, address and telephone number of the chairperson.
B. The department shall post the information it
receives pursuant to subsection A on the department’s web site.
Recent legislative year: Laws 2004, Ch. 168, § 2.
32-2117. Earth ﬁssure maps; posting; immunity
A. On receipt of maps from the state land depart-
ment, the department of real estate shall provide any
earth ﬁssure map to any member of the public in printed or electronic format on request and provide access on its web site to the earth ﬁssure maps prepared by the state land department pursuant to section 37-173, paragraph 11. The following notice shall be displayed below each map:
The state of Arizona has made a reasonable effort to ensure the accuracy of this map when it was produced, but errors may be
present and the state of Arizona does not guarantee its accuracy. The map supple- ments, and is not a substitute for, a profes- sional inspection of property for defects and conditions.
B. Nothing in this section shall be construed as
denying a person rights guaranteed by the Arizona Constitution, and notwithstanding any other law, a subdivider, owner or licensee is not liable to any
person or governmental entity for any act or failure to act in connection with:
1. The disclosure of real estate subject to earth
ﬁssures if the subdivider, owner or licensee provides a written disclosure or includes notice in a public re- port, issued pursuant to section 32-2183 or 32- 2195.03, with respect to real estate subject to earth
ﬁssures, of the map and web site described in subsec- tion A of this section. The written disclosure or notice in a public report, issued pursuant to section 32-2183 or 32-2195.03, of the map and web site does not create an independent cause of action.
2. Any disclosure that occurred before the date the
map described in subsection A of this section is posted on the web site if the subdivider, owner or licensee had no actual knowledge that the land was subject to earth ﬁssures before the map was posted. 2006
Recent legislative year: Laws 2006, Ch. 339, § 2.
32-2118. Competition with private enterprise; prohibition The department shall not create, endorse or spon- sor any activity that may be legally performed by a licensee in any way that constitutes competition with the private sector, unless there is no licensee that is capable and willing to create, endorse or sponsor the activity. This section does not apply to license ap- proval processes or procedures under this chapter or to educational activities under section 32-2107. 2007
Recent legislative year: Laws 2007, Ch. 9, § 2.
32-2121. Applicability of article; exemption
1. A natural person, a corporation through its offic-
ers, a partnership through its partners or a limited liability company through its members or managers
that deals in selling, exchanging, purchasing, renting, leasing, managing or pledging the person’s or entity’s own property, including cemetery property and mem- bership camping contracts, and that does not receive special compensation for a sales transaction or does not receive special compensation or other consider- ation including property management fees or consult- ing fees for any property management services per- formed, if the majority of an officer’s, partner’s, member’s or manager’s activities do not involve the acts of a real estate broker, cemetery broker or mem- bership camping broker as deﬁned in section 32-2101.
2. A person holding a valid power of attorney that
is being used for a speciﬁc purpose in an isolated
transaction and not as a method of conducting a real estate business.
3. An attorney in the performance of the attorney’s
duties as an attorney. Nothing in this paragraph shall be construed to allow an attorney to otherwise engage in any acts requiring a license under this article.
4. Any receiver, a trustee in bankruptcy or any
other person acting under an order of a court.
5. A trustee selling under a deed of trust.
6. Natural persons who are acting as residential
leasing agents or on-site managers of residential rental property, who are performing residential leas- ing activities on residential income property at no more than one location during the period of the agents’ or on-site managers’ regular workday, who do not receive special compensation for the acts de- scribed in subdivisions (a) through (e) of this para- graph and who are employed by the owner or the owner’s licensed management agent to perform the duties customarily associated with that employment. A bonus that is paid to a residential leasing agent or on-site manager working under the supervision of a licensed real estate broker and that is based on performance, that is received no more frequently than monthly and that does not exceed one-half of the agent’s or on-site manager’s total compensation for the time period does not constitute special compensa-
tion for the acts described in subdivisions (a) through (e) of this paragraph. For purposes of this paragraph ‘‘residential leasing agents or on-site managers’’ means natural persons employed by the owner or the owner’s licensed management agent whose normal duties and responsibilities include any one or a com- bination of the following:
(a) Preparing and presenting to any person a resi-
dential lease, application or renewal or any amend- ment of the lease.
(b) Collecting or receiving a security deposit, a
rental payment or any related payment for delivery to and made payable to a property, a property manager, an owner or the location.
(c) Showing a residential rental unit to any pro-
spective tenant.
(d) Executing residential leases or rental agree-
ments adopted under title 33, chapter 10.
(e) Acting on behalf of the owner or the owner’s
licensed management agent to deliver notice pursu-
ant to title 12, chapter 8 and title 33, chapters 10 and
7. Any officer or employee of a governmental
agency who is not a contract or temporary employee of the agency in the conduct of the officer’s or employee’s official duties.
8. One natural person who acts as a property
manager for one nonresidential income property or for two or more contiguous nonresidential income prop- erties that are under common ownership and who is employed by the owner or the owner’s licensed man- agement agent to perform the duties customarily associated with that employment.
9. Natural persons who are in the employ of an
employing broker or of a person or entity exempt
under this section, who perform clerical, bookkeeping, accounting and other administrative and support duties, who are not engaged in any other acts requir- ing a license under this chapter and whose employ- ment is not conditioned on or designed to perform duties otherwise requiring a license under this chap- ter.
10. Natural persons who are in the employ of an
employing broker and who perform telemarketing services that are limited to soliciting interest in engaging the services of a licensee or broker or gath- ering demographic information that will be used by a
licensee or broker to solicit prospective buyers, sell- ers, lessees and lessors.
11. Communications media or their representa-
tives that are primarily engaged in advertising real
estate and that perform no other acts requiring a real estate license, if:
(a) The communications media or their representa-
tives do not, directly or indirectly, compile or repre- sent that they compile information about speciﬁc prospective purchasers or tenants, except that gen- eral information about prospective purchasers or ten- ants, such as demographic and marketing informa- tion, may be compiled.
(b) The communications media or their representa-
tives do not make representations to prospective real property sellers or landlords, or their representatives, concerning speciﬁc prospective purchasers or tenants or speciﬁc sales or leasing leads.
(c) The fee charged for advertising is based solely
on the advertising services provided.
(d) The advertisements provide for direct contact
between the seller or landlord and the prospective buyers or tenants, or for contact through a licensed real estate broker or property management ﬁrm. The communications media or their representatives shall
as a title insurer or a title insurance agent in the performance of the title insurance agent’s duties as a title insurance agent. Nothing in this paragraph shall be construed to allow an escrow agent, a title insurer or a title insurance agent to otherwise engage in acts requiring a license under this article.
17. Notwithstanding paragraph 1 of this subsec-
tion, a corporation through its officers and employees that purchases, sells, exchanges, rents, leases, man- ages or pledges its property if both of the following apply:
(a) The activity is only incidental to the business of
(b) The officers and employees engaged in the ac-
tivity do not receive special compensation or other consideration for the activity.
18. A trust company owned by a bank holding
company regulated by the federal reserve board or a bank in exercising its ﬁduciary duties under the
terms of a trust agreement to which real property is subject.
19. A person who receives a ﬁnder fee pursuant to
section 32-2176 or 32-2197.21.
B. The commissioner may grant an exemption from
the licensure requirements of this article to any
corporation that applies for an exemption on a ﬁnding that both of the following apply:
1. The corporation is a nonproﬁt corporation that
provides project-based housing services and operates
solely as a charitable organization as deﬁned in section 44-6551.
2. The corporation’s sole activities related to real
estate involve ownership or management of residen- tial property owned or controlled by the corporation.
Recent legislative year: Laws 1999, Ch. 42, § 1; Laws 1999, Ch. 109, § 1; Laws 2001, Ch. 170, § 3; Laws 2004, Ch. 100, § 2.
not act as intermediaries or assist in any intermedi- ary action between prospective parties to a real estate
32-2122. License required of brokers and sales- persons
transaction, except that additional information about
This article applies to any person acting in the
advertised properties may be provided to prospects
capacity of a:
Persons who perform residential property man-
agement services or marketing and promotional ser-
Cemetery broker.
vices solely for nursing care institutions as deﬁned in
Cemetery salesperson.
section 36-401 or pursuant to life care contracts as
Membership camping broker.
deﬁned in section 20-1801.
Membership camping salesperson.
A person who offers to sell or lease property
It shall be unlawful for any person, corporation,
that constitutes a security as deﬁned in section 44- 1801 and that is offered, sold or leased in compliance
with title 44, chapter 12 if the person is a registered securities dealer or salesperson pursuant to title 44, chapter 12, article 9.
14. A person who manages a hotel, motel or recre-
ational vehicle park.
15. A person who, on behalf of another, solicits,
arranges or accepts reservations or money, or both, for occupancies of thirty-one or fewer days in a dwelling unit in a common interest development.
16. An escrow agent in the performance of the
escrow agent’s duties as an escrow agent, a title insurer in the performance of the title insurer’s duties
partnership or limited liability company to engage in any business, occupation or activity listed in subsec- tion A without ﬁrst obtaining a license as prescribed in this chapter and otherwise complying with the provisions of this chapter.
C. A person, corporation, partnership or limited
liability company that is licensed as a salesperson or
broker pursuant to this article or that is engaging in any work for which a license is required under this article is subject to the requirements of this chapter in the performance of any acts included in the deﬁnition of a broker unless otherwise provided in this chapter.
D. Any act, in consideration or expectation of com-
pensation, which is included in the deﬁnition of a real
estate, cemetery or membership camping broker, whether the act is an incidental part of a transaction or the entire transaction, constitutes the person offer- ing or attempting to perform the act of a real estate broker or real estate salesperson, a cemetery broker or cemetery salesperson or a membership camping broker or a membership camping salesperson within the meaning of this chapter. 1997
32-2123. Application for license as broker or
A. Every application for an original license shall be
either submitted in writing and signed by the appli-
cant or submitted electronically and contain an elec- tronic or digital identiﬁer that the commissioner deems appropriate. The application shall be accompa- nied by all applicable fees.
B. An application for an original license as a broker
or salesperson shall set forth:
1. The legal name and residence address of the
2. The applicant’s employers and employment his-
tory for the immediately preceding ten years and any experience in real estate sales, appraisals, transfers or similar business in which the applicant previously
engaged, if the commissioner determines that this
information is needed to reasonably evaluate the good moral character of the applicant.
3. The name and place of business of the appli-
cant’s present employer, if any.
4. Whether the applicant has ever been convicted
of a felony and, if so, the nature of the felony, where
and when committed and the disposition of the con-
viction, or whether the applicant has been disbarred or suspended from the practice of law.
5. Whether the applicant has ever been refused a
broker’s or salesperson’s license or any other occupa- tional license in this or any other state, whether the applicant’s license as a broker or salesperson has been revoked or suspended in this or any other state or whether the applicant has had any other occupational
or professional license, certiﬁcate or registration re- voked or suspended in this or any other state.
6. The name of any corporation, company or part-
nership that is or ever has been licensed by the
department in which the applicant exercised any control.
7. If the applicant is a natural person, the appli-
cant’s social security number. If the applicant, due to bona ﬁde religious convictions or other bona ﬁde reasons that the applicant documents on the applica- tion to the satisfaction of the commissioner, does not have a social security number, the applicant may provide the applicant’s federal tax identiﬁcation num- ber with the application. The state real estate depart- ment shall use the applicant’s social security number or federal tax identiﬁcation number to aid the depart- ment of economic security in locating noncustodial parents or the assets of noncustodial parents, and for no other purpose.
C. An application for a license as a broker addition-
ally shall set forth:
1. The name under which the business is to be
2. The situs and mailing address of the applicant’s
place of business, or if more than one, the situs and
mailing addresses of each.
D. An applicant for a broker’s or salesperson’s
license shall provide information that the commis- sioner determines is reasonably necessary to estab- lish the character of the applicant. The information
may include but shall not be limited to:
2. Fingerprints and background information, pur-
3. An affidavit setting out whether the applicant
has participated in, operated or held an interest in any land development company which has ﬁled, or is
subject to, a petition under any chapter of the federal bankruptcy act.
E. Each person licensed pursuant to this article,
whether the license is active or inactive, shall have available for the licensee’s use a current copy of the department’s statutes, rules and annotations pertain- ing to real estate laws. Failure to comply with this requirement shall not be deemed grounds for a civil penalty or for denial, suspension or revocation of a license.
Recent legislative year: Laws 2001, Ch. 67, § 1.
32-2124. Qualiﬁcations of licensees
A. Except as otherwise provided in this chapter,
the commissioner shall require proof, through the application or otherwise, as the commissioner deems advisable with due regard to the interests of the
public, as to the honesty, truthfulness, good character and competency of the applicant and shall require that the applicant has:
1. If for an original real estate broker’s license, at
least three years’ actual experience as a licensed real estate salesperson or real estate broker during the ﬁve years immediately preceding the time of applica- tion.
2. If for an original cemetery broker’s license, ei-
ther a current real estate broker’s license, or if the applicant does not have a current real estate broker’s license, at least three years’ actual experience as a cemetery salesperson or broker or as a licensed real estate salesperson or broker during the ﬁve years immediately preceding the time of application.
3. If for an original membership camping broker’s
license, either a current real estate broker’s license, or if the applicant does not have a current real estate
broker’s license, at least three years’ actual experi- ence as a licensed membership camping salesperson or broker or as a licensed real estate salesperson or broker during the ﬁve years immediately preceding the time of application.
4. If for any type of broker’s or salesperson’s li-
cense, not had a license denied within one year
immediately preceding application in this state pur- suant to section 32-2153 or a similar statute in any other state.
5. If for any type of broker’s or salesperson’s li-
cense, not had a license revoked within the two years
immediately preceding application in this state pur- suant to section 32-2153 or a similar statute in any other state. 6. If reapplying for a license that expired more than one year before the date of application, met all current education and experience requirements and retakes the examination the same as if the applicant were applying for the license for the ﬁrst time. 7. If for a real estate, cemetery or membership camping broker’s license, other than a renewal appli- cation, an equivalent amount of active experience within the immediately preceding ﬁve years in the ﬁeld in which the applicant is applying for the bro- ker’s license, as a substitute for the licensed active experience otherwise required in paragraphs 1, 2 and 3 of this subsection. The licensed active experience required may be met if the applicant can demonstrate to the commissioner’s satisfaction that the applicant has an equivalent amount of experience in the past ﬁve years that, if the applicant had held a license, would have been sufficient to fulﬁll the licensed expe- rience requirement. B. All applicants other than renewal applicants under section 32-2130 for a real estate salesperson’s license shall show evidence satisfactory to the com- missioner that they have completed a real estate salesperson’s course, prescribed and approved by the commissioner, of at least ninety classroom hours, or its equivalent, of instruction in a real estate school certiﬁed by the commissioner and have satisfactorily passed an examination on the course. In no case shall the real estate salesperson’s course completion or its equivalent be more than ten years before the date of application unless, at the time of application, the commissioner determines in the commissioner’s dis- cretion that the applicant has work experience in a real estate related ﬁeld and education that together are equivalent to the prelicensure education require- ment. The commissioner may waive all or a portion of the prelicensure course requirement, other than the twenty-seven hour Arizona speciﬁc course, for an applicant who holds a current real estate license in another state. C. All applicants other than renewal applicants under section 32-2130 for a real estate broker’s li- cense shall show evidence satisfactory to the commis- sioner that they have completed a real estate broker’s course, prescribed and approved by the commissioner, of at least ninety classroom hours, or the equivalent, of instruction in a real estate school certiﬁed by the commissioner and have satisfactorily passed an ex- amination on the course. In no case shall the real estate broker’s course completion or its equivalent be more than ten years before the date of application unless, at the time of application, the commissioner determines in the commissioner’s discretion that the applicant has work experience in a real estate related ﬁeld and education that together are equivalent to the prelicensure education requirement. The commis- sioner may waive all or a portion of the prelicensure course requirement, other than the twenty-seven hour Arizona speciﬁc course, for an applicant who holds a current real estate license in another state.
D. Prior to receiving any license provided for by
this chapter, an applicant shall be at least eighteen
E. The commissioner shall ascertain by written,
electronic or any other examination method that an applicant for a real estate license has:
1. An appropriate knowledge of the English lan-
guage, including reading, writing and spelling, and of arithmetical computations common to real estate
2. At a minimum, an understanding of the general
purpose and legal effect of any real estate practices, principles and related forms, including agency con- tracts, real estate contracts, deposit receipts, deeds, mortgages, deeds of trust, security agreements, bills
of sale, land contracts of sale and property manage- ment, and of any other areas that the commissioner deems necessary and proper.
3. A general understanding of the obligations be-
tween principal and agent, the principles of real
estate and business opportunity practice, the applica- ble canons of business ethics, the provisions of this chapter and rules made under this chapter. F. The commissioner shall ascertain by written, electronic or any other examination method that an applicant for a license as a cemetery broker or a cemetery salesperson has:
1. Appropriate knowledge of the English language,
including reading, writing and spelling, and of ele- mentary arithmetic.
2. A general understanding of:
(a) Cemetery associations, cemetery corporations
and duties of cemetery directors and officers.
(b) Plot ownership, deeds, certiﬁcates of ownership,
contracts of sale, liens and leases.
(c) Establishing, dedicating, maintaining, manag-
ing, operating, improving, preserving and conducting
(d) The provisions of this chapter and rules made
under this chapter relating to the organization and
regulation of cemeteries and the licensing and regu- lation of cemetery brokers and cemetery salespersons.
tween principal and agent, the principles of cemetery practice and the canons of business ethics pertaining
to the operation of cemeteries and the sale of cemetery
G. The commissioner shall ascertain by written,
electronic or any other examination method that an applicant for a license as a membership camping broker or a membership camping salesperson has:
guage, including reading, writing and spelling, and of elementary arithmetic.
(a) The general purposes and legal effect of con-
tracts and agency contracts.
(b) Establishing, maintaining, managing and oper-
ating a membership campground.
(c) The provisions of this chapter and rules adopted
regulation of membership campgrounds and the li-
censing and regulation of membership camping bro- kers and membership camping salespersons. 3. A general understanding of the obligations be-
tween principal and agent and the canons of business ethics pertaining to the operation and promotion of membership campgrounds.
H. No renewal applicant for a real estate, cemetery
or membership camping broker’s or salesperson’s li- cense shall be required to submit to an examination if the application is made within twelve months after
the license expires and the license is not cancelled, terminated or suspended at the time of application.
I. The examination for a broker’s license shall be
more exacting and stringent and of a broader scope than the examination for a salesperson’s license.
J. An applicant for a real estate salesperson’s or
broker’s license who currently holds at least an equiv- alent license in another state may be exempt from taking the national portion of the real estate exami- nation if the applicant can demonstrate having pre- viously passed a national examination within the past ﬁve years that is satisfactorily similar to the one administered by the department.
K. Identiﬁcation of each applicant whose licensing
requirement was allowed to be met by an equivalent alternative pursuant to this section shall be included in the annual performance report presented by the board to the governor pursuant to section 32-2104.
L. An applicant for an original real estate salesper-
son’s license, after completion of the requirements of
subsection B of this section, shall provide certiﬁcation to the department at the time of application evidenc- ing completion of six hours of instruction in real estate contract law and contract writing. This instruc- tion shall include participation by the applicant in the drafting of contracts to purchase real property, listing agreements and lease agreements.
M. The commissioner shall not issue a license to a
person who has been convicted of a felony offense and
who is currently incarcerated for the conviction, pa- roled or under community supervision and under the supervision of a parole or community supervision officer or who is on probation as a result of the conviction.
N. An applicant or licensee who wants to obtain a
license specializing in sales of businesses after com- pletion of the requirements of subsection B or C of this section and before activation of the person’s license shall provide certiﬁcation to the department evidenc- ing completion of twenty-four hours of instruction in business brokerage. This instruction shall include satisfactory proof of passing a test that is acceptable to the department.
Recent legislative year: Laws 2002, Ch. 23, § 1; Laws 2004, Ch. 100, § 3; Laws 2007, Ch. 165, § 2.
32-2125. Licenses for corporations, limited lia-
bility companies or partnerships
A. A corporation, limited liability company or part-
nership applying for a broker’s license for the entity
shall designate a natural person who is licensed as a broker and who is an officer of the corporation, man-
ager of the limited liability company if management of the limited liability company is vested in one or more managers, member of the limited liability company if management is vested in the members or partner of the partnership who shall act as designated broker.
The license shall extend no authority to act as desig- nated broker to any other person. This subsection does not apply to a corporation or limited liability company applying for a license under subsection B of this section. An entity’s broker’s license issued pursu- ant to this subsection shall run concurrently with the corporation’s, limited liability company’s or partner- ship’s designated broker’s license.
B. An employing broker may engage the services of
salespersons and associate brokers who act through and on behalf of professional corporations or profes- sional limited liability companies that are licensed by the department. A designated broker who acts on behalf of an employing real estate entity is permitted to become a professional corporation or a professional limited liability corporation. Any person so engaged shall be separately licensed. The department shall issue to or renew a license under this subsection only for a professional corporation or a professional limited liability corporation whose shareholders, members or managers hold active real estate licenses. A corpora- tion licensed under this subsection shall meet the
requirements of title 10, chapter 20. A limited liability company licensed under this subsection shall meet the requirements of title 29, chapter 4, article 11. A professional corporation or professional limited liabil- ity company shall not be licensed as an employing broker.
C. The license of a corporation or limited liability
company licensed under subsection B of this section terminates only upon the death of a shareholder, member or manager or any other change of sharehold- ers, members or managers, except that any remaining shareholder, member or manager who was an autho- rized officer and shareholder prior to the change remains authorized to continue business under the
corporation’s or limited liability company’s license for up to an additional ninety days pending the issuance of a new license.
D. The commissioner may suspend, revoke or deny
renewal or the right of renewal of the license of a
corporation, limited liability company or partnership licensed under this section if the corporation, limited liability company or partnership or any shareholder, officer, agent, partner or member of a corporation, limited liability company or partnership violates any of the provisions of this chapter.
E. Nothing in this section shall be construed to
enlarge the functions of salespersons, to permit sales- persons to assume any of the responsibilities or func- tions of brokers or to relieve the commissioner of any regulatory power or authority over salespersons or brokers.
F. A corporation, limited liability company or part-
nership licensed under subsection A of this section or a professional corporation or professional limited lia- bility company licensed under subsection B of this
32-2125.01
section is exempt from the education requirements imposed pursuant to this chapter. The commissioner shall not charge a license fee or a renewal fee pursu- ant to section 32-2132 to a corporation, professional corporation, limited liability company, professional limited liability company or partnership licensed or approved under this section.
G. A corporation, limited liability company or part-
nership licensed under this section shall report to the department within ten days:
1. Any change in officers, directors, members, man-
agers or partners or any change of control of the entity.
2. Any amendment to its articles of incorporation
or organization or to its partnership agreement.
3. If a corporation, when a person becomes an
owner of ten per cent or more of the stock in the corporation.
4. The dissolution of the corporation, limited liabil-
ity company or partnership. 2007
Recent legislative year: Laws 2004, Ch. 100, § 4; Laws 2007,
Ch. 165, §
32-2125.01. Issuance of license; multiple li-
censes; use
A. When the requirements for application, exami-
nation and payment of fees are completed to the satisfaction of the commissioner, the commissioner
shall issue the license applied for to the applicant. Any person who has passed the state examination for broker or salesperson must become licensed within one year from the date of the examination. Failure to comply with this section will necessitate the submis- sion to and passing of another examination.
B. Not more than one license shall be issued and
outstanding to or in favor of a licensee at any one time, except that a person licensed as a real estate broker or real estate salesperson may engage in cemetery or membership camping sales activities without being separately licensed to engage in these activities. A real estate licensee may have only one
employing broker in each of the following categories:
A designated or employing real estate broker
may engage in cemetery or membership camping sales activities and may employ cemetery and mem- bership camping salespersons and associate brokers without being separately licensed as a cemetery or membership camping broker or salesperson. 2001
Recent legislative year: Laws 2001, Ch. 67, § 2.
32-2125.02. Nonresident licensees; service of
process; employment
A. An application for and acceptance of a license as
a nonresident salesperson or broker shall be deemed to constitute irrevocable appointment of the commis- sioner as the agent or attorney in fact of the licensee for the acceptance of service of process issued in this state in any action or proceeding against the licensee arising out of the licensing, out of transactions under
the license or in any action which may result in payment from the real estate recovery fund.
B. Duplicate copies of any process shall be served
on the commissioner. The plaintiff at the time of service shall pay the commissioner ﬁfteen dollars, taxable as costs in the action. On receiving this service the commissioner shall promptly forward a copy of the service by certiﬁed mail to the licensee at the licensee’s last address of record with the commis- sioner. Process served on the commissioner pursuant
to this subsection constitutes service of process on the licensee as though the licensee were personally served with the process in this state.
C. A nonresident licensee shall accept employment
or compensation as a nonresident licensee only under
section 32-2155 and only from a broker who is actively licensed in this state.
D. A nonresident broker shall maintain in this
state the records required by section 32-2151.01 and shall notify the commissioner of the address where the records are kept.
E. Broker or salesperson license applicants who do
not reside in this state are required to complete a
minimum of a twenty-seven hour course that is spe-
ciﬁc to this state’s real estate statutes, rules, practices and procedures and that is prescribed and approved by the commissioner and are required to pass the real estate school examination before taking this state’s examination. The subject matter and course outline shall cover areas speciﬁc to this state’s real estate practice and law. The requirements of this subsection also apply, to the extent applicable, to broker or salesperson applicants who wish to use college credit in fulﬁllment of the required ninety prelicensure hours.
F. The commissioner may adopt rules necessary for
the regulation of nonresident licensees. 1997
32-2125.03. Conﬁdentiality of licensee’s home
address, home telephone number and social security number
A. By ﬁling an original signed statement with the
department on a form that is prescribed by the department and that is used for no other purpose, a licensee may request that the department not release the home address and home telephone number of the licensee to any person other than a court, a process server or a governmental agency that will use the information for a legitimate governmental purpose. The signed statement shall indicate why the licensee reasonably believes that there is a risk of personal danger to or harassment of the licensee, the licensee’s family or members of the licensee’s household and
why maintaining the conﬁdentiality of this informa- tion will reduce the risk of personal danger or harass- ment. The department shall honor the licensee’s re- quest if, after review, the commissioner determines that maintaining the conﬁdentiality of this informa- tion will reduce the risk of personal danger to or harassment of the licensee, the licensee’s family or members of the licensee’s household.
B. The department may charge a fee for each
request made pursuant to subsection A.
C. This section applies only to a natural person
who holds, has held or has applied for a license under this article. This section does not apply if a licensee’s
home address or home telephone number is the same
as the licensee’s business address or business tele- phone number.
D. The department may not release a licensee’s
social security number or make a licensee’s social security number available for inspection by any per- son other than a court or a governmental agency that
will use the information for a legitimate governmen- tal purpose.
A. Each employing broker shall have and maintain
a deﬁnite place of business. Notice of change of
business location shall be given to the commissioner
in writing and the commissioner shall issue a new
license for the unexpired period. Change or abandon-
ment of a business location without notice shall auto- matically cancel the broker’s license and shall sever the license of any salesperson or associate broker employed by the employing broker. If an employing broker’s license is cancelled pursuant to this subsec- tion and the broker’s license is later reinstated, any salesperson or associate broker employed by the em- ploying broker whose license was severed pursuant to this subsection may be rehired.
B. Each designated broker and, if applicable, each
employing broker shall cause a sign to be affixed at the entrance to the broker’s place of business, in a place and position clearly visible to all entering the place of business, with the name of the broker, the name under which the broker is doing business if other than the broker’s given name, and sufficient wording to establish that the person is a real estate broker, cemetery broker or membership camping bro-
ker. In addition to any other applicable law, the sign shall conform to rules adopted by the commissioner.
C. Upon removal from any location the broker shall
remove the sign from the location. A broker shall not display any name at designated places of business named in the broker’s license other than the name under which the broker is licensed. 1997
32-2127. Licenses for additional places of busi- ness; branch office manager; bro- ker’s temporary absence
A. When a broker maintains more than one place of
business within the state he shall be required to procure an additional license for each branch office maintained.
B. Branch office licenses shall be issued in the
same name as the principal office license is issued, and the license must be posted in the branch office. Branch office signs shall conform to the provisions for the principal office and shall include the designation ‘‘branch office’’.
C. Each branch office shall be under the manage-
ment of a broker or a licensed salesman.
D. If a designated broker is unable to act within
twenty-four hours, he may designate a licensee whom he employs or another designated broker to act in his behalf. The designated broker shall make this desig- nation in writing and shall keep the original designa- tion at his office for one year from its effective date. A copy of this designation must be attached to any hire, sever or renewal form submitted to the department which is signed by the designated broker’s designee. This designation shall not exceed thirty days’ dura- tion and may authorize the designee to perform any and all duties the designated broker may legally perform, except that a salesperson shall not be autho- rized to hire or sever licensees. A written designation is required for each temporary absence. 1994
32-2128. Display and possession of license cer- tiﬁcate The designated broker’s and, if applicable, the em- ploying broker’s license certiﬁcate shall be promi- nently displayed in the office of the broker, and all other license certiﬁcates shall be readily available. A salesperson’s or associate broker’s license shall re- main in the possession of the employer until can- celled, terminated, suspended or revoked by the de- partment, or when the licensee is severed from employment, when it shall be returned to the depart- ment by the designated broker. If a pocket card identiﬁcation was issued to a licensee whose license is subsequently cancelled, terminated, suspended or re- voked or if the licensee is no longer employed by a broker, the licensee shall immediately return the pocket card to the broker.
A. All license fees shall be paid in advance and
shall be the same regardless of the time of the year the license is issued.
B. If the license fees or other fees that relate to
licensure are paid with a check that is not honored by the ﬁnancial institution on which it is written, the department may deny or cancel the license.
C. An original license shall be for a period of two
years up to and including the last day of the month in which the license was granted. A renewal license shall
be effective as of the date of issuance, but no earlier than the ﬁrst day after the expiration of the previous license. Regardless of the date of issuance, the re- newed license is for a four year period beginning on the ﬁrst day after the expiration of the previous license.
D. License applicants shall pay fees as speciﬁed in
Recent legislative year: Laws 2007, Ch. 165, § 4.
32-2130. Renewal of licenses
A. A license may be renewed in a timely manner by
ﬁling an application for renewal in the manner pre- scribed by the commissioner, by paying the renewal fee speciﬁed in this chapter and by presenting evi- dence of attendance at a school certiﬁed by the com- missioner during the preceding license period of twen- ty-four credit hours in the ﬁrst renewal and forty-
eight credit hours in subsequent renewals, or a lesser number of credit hours prescribed by the commis- sioner, of real estate oriented continuing education courses prescribed and approved by the commis- sioner. The total number of credit hours shall be accrued at a rate of twenty-four credit hours during each twenty-four month period of licensure. The de- partment shall maintain a current list of approved courses. The commissioner may waive all or a portion of the continuing education requirement for good cause shown.
B. If an applicant is renewing a license within one
year after it expired, the applicant may apply continu- ing education hours completed after the expiration toward the continuing education required for re- newal.
C. Each renewal application shall contain, as ap-
plicable, the same information required in an original application pursuant to section 32-2123.
D. Cemetery brokers and salespersons and mem-
bership camping brokers and salespersons are ex- empt from the educational requirements of this sec- tion.
E. Nothing in this section requires a licensee to
attend department produced or sponsored courses if approved courses are otherwise available.
F. If a renewal applicant is retaining the special-
ization in sales of businesses designation, the appli-
cant is required to complete business brokerage courses for one-half of the credit hours prescribed by the commissioner for license renewal pursuant to this section.
G. Between the expiration date of the license and
family member, the license placed on inactive status, shall have the right to renew the license and shall not be required to pay further fees until the employee or family member is again eligible to use the license. Renewal fees for the license shall not be required for only as long as the employee or family member is prohibited from using the license.
J. The department shall not renew the license of a
person who has been convicted of a felony offense and who is currently incarcerated for the conviction, pa- roled or under community supervision and under the supervision of a parole or community supervision officer or who is on probation as a result of the conviction. This subsection does not limit the commis- sioner’s authority and discretion to deny the renewal for any other reason pursuant to this chapter. 2007
Recent legislative year: Laws 2004, Ch. 100, § 5; Laws 2007,
32-2131. Reinstatement of license
A. The commissioner may reinstate a license that
was issued under this article and that expired or was canceled, terminated, suspended or revoked as fol- lows:
1. For a license that expired pursuant to section
32-2130, subsection G, by renewal application pursu- ant to this article.
2. For a license canceled pursuant to section 32-
2126, subsection A or section 32-2129, subsection B or any other lawful authority:
(a) If within the license period, by reapplication
and payment of applicable fees.
(b) If after expiration of the license, by original or
the date of renewal of the license, the rights of the
licensee under the license expire. While the license is
renewal application, as appropriate, pursuant to this article.
expired it is unlawful for a person to act or attempt or
For a license terminated pursuant to section
offer to act in a manner included in the deﬁnition of a
32-2188, subsection I, by:
real estate, cemetery or membership camping broker
Repayment in full to the real estate recovery
or salesperson. If the license of an employing broker
expires under this subsection, the licenses of persons
Original application pursuant to this article.
who are employed by the employing broker shall be
Providing evidence that the judgment that
severed from the employing broker on the license expiration date of the employing broker. These per-
caused the recovery fund payment has been fully satisﬁed.
sons may be rehired on renewal of the employing
broker’s license. The department shall terminate a license that has been expired for more than one year.
32-2130, subsection G, by original application pursu- ant to this article.
H. No more than one year after the license expira-
tion date, the department shall renew a license with- out requiring the applicant to submit to an examina- tion if the applicant held a license that was not canceled or suspended at the time of expiration. The license period for a license renewed pursuant to this subsection commences the day after the expiration date of the expired license. Except as provided in section 32-2131, subsection A, paragraph 4 or 6, an applicant whose license has been terminated or re- voked does not qualify for license renewal. I. Any employee or immediate family member of any employee of this state who, pursuant to section 32-2110 or any other law, rule or requirement, is prohibited from using a license issued under this chapter shall have, on the request of the employee or
5. For a license suspended pursuant to section
32-2153, 32-2154 or 32-2157 or any other lawful
(a) If suspended for failure on the part of the
licensee to meet procedural or educational require- ments for maintaining the license, and the require- ments have subsequently been fully met, and the suspension has been vacated:
(i) If within the license period, by reapplication and
(ii) If after expiration of the license, by original or
(b) If suspended by order of the commissioner for a
speciﬁed length of time, and the suspension period has ended:
32-2134
payment of applicable fees. (ii) If after expiration of the license, by original or
6. For a license revoked pursuant to section 32-
2153 or any other lawful authority, by original appli- cation pursuant to this article.
7. For a license suspended or revoked by order of
the commissioner and this order is subsequently vacated as to the licensee, by reapplication only. No
fees may be assessed. The reapplication may be initi- ated by the department on behalf of the licensee.
B. Except for canceled licenses, reinstatement of a
license pursuant to subsection A of this section shall not be made for any licensee who is the subject of a
department investigation into alleged violations of this chapter or of a pending administrative proceed- ing pursuant to article 3 of this chapter.
C. This section shall not be interpreted to lessen or
reduce the qualiﬁcations otherwise required of license applicants under this article or the department’s authority to deny a person’s application for license reinstatement who does not otherwise meet all of the requirements.
Recent legislative year: Laws 2002, Ch. 58, § 1; Laws 2007, Ch.
165, §
32-2132. Fees
A. Except as provided in subsection D, the follow-
ing fees shall be charged which shall not be refunded by the commissioner after issuance of a receipt for payment:
1. A broker’s examination application fee of not less
than thirty-ﬁve dollars and not more than one hun- dred twenty-ﬁve dollars.
2. A broker’s examination fee of not less than
thirty-ﬁve dollars and not more than one hundred dollars.
3. A broker’s license fee of not less than seventy-
ﬁve dollars and not more than two hundred ﬁfty
4. A broker’s renewal fee of not less than one
hundred dollars and not more than four hundred dollars.
5. A salesperson’s examination application fee of
not less than ﬁfteen dollars and not more than seven- ty-ﬁve dollars.
6. A salesperson’s examination fee of not less than
ﬁfteen dollars and not more than ﬁfty dollars.
7. A salesperson’s license fee of not less than thirty-
ﬁve dollars and not more than one hundred twenty- ﬁve dollars.
8. A salesperson’s renewal fee of not less than sixty
dollars and not more than two hundred dollars.
9. A branch office broker’s license fee or renewal fee
of not less than sixty dollars and not more than two hundred dollars.
licensee on records of the department of not more
than twenty dollars. 11. A duplicate license fee of ﬁve dollars.
12. A fee for reinstatement of license within license
period of ﬁve dollars.
13. A fee for each certiﬁcate of correctness of copy of
records or documents on ﬁle with the department of
one dollar, plus the cost to the department for repro- ducing the records or documents.
14. A temporary broker’s license fee of not less than
15. A temporary cemetery salesperson’s license fee
of not less than ﬁfteen dollars and not more than ﬁfty dollars.
16. A membership camping salesperson certiﬁcate
of convenience fee of not less than ﬁfteen dollars and not more than ﬁfty dollars.
B. No corporation, partnership or limited liability
company shall be assessed a fee for the issuance of a broker’s license.
C. The commissioner may contract for the process-
ing of applications and the examination of applicants for licensure. The contract may provide for speciﬁc fees or a reasonable range for fees as determined by the commissioner for examination applications and examinations to be paid directly to the contractor by
the applicant. These fees may not exceed the amounts prescribed in subsection A, paragraphs 1, 2, 5 and 6.
D. For good cause shown the commissioner may
refund fees previously collected. 2007
Recent legislative year: Laws 2007, Ch. 9, § 3; Laws 2007, Ch.
32-2133. Temporary broker’s license
A. Notwithstanding any other law, the commis-
sioner may issue a temporary license as a broker to a
licensed or unlicensed person for the purpose of wind- ing up the existing or pending business of a licensed broker in the following cases:
1. To the surviving spouse or next of kin or to the
administrator or personal representative or the em-
ployee of the administrator or personal representative of a deceased licensed broker.
2. To the spouse, next of kin, employee, legal guard-
ian or conservator of a licensed broker disabled by sickness, injury or insanity.
B. Each temporary license is for a period of not
over ninety days and shall not be extended for a longer period, except that a license issued to a per- sonal representative or administrator or the employee of the personal representative or administrator pur-
suant to subsection A, paragraph 1 continues until the personal representative or administrator disposes of the deceased broker’s business, but not to exceed a period of ﬁfteen months.
C. No more than one temporary license may be
issued to or with respect to the same individual within any one year period.
D. A temporary licensee has the same license pow-
ers and obligations as under a permanent license. 1997
32-2134. Temporary cemetery salesperson’s li- cense Notwithstanding any other provision of law to the contrary, the commissioner may issue without exam- ination to any person who has applied and otherwise
32-2134.01
qualiﬁes for a cemetery salesperson’s license, a tem- porary cemetery salesperson’s license good for a pe- riod not to exceed ninety days from the date of issuance. An applicant shall not be entitled to more than one temporary license without examination. An employing cemetery broker shall certify by affidavit to the commissioner that the temporary license appli- cant has been trained in applicable Arizona cemetery and contract law.
32-2134.01. Membership camping salesperson certiﬁcate of convenience Notwithstanding any other licensing requirement under this chapter, the commissioner may issue a one time thirty day certiﬁcate of convenience without examination to any person who has applied and otherwise qualiﬁes for a membership camping sales- person’s license. An employing membership camping broker shall certify by affidavit to the commissioner that the salesperson applicant will be trained in applicable membership camping and contract laws before participation in any offer or sale. 1993
32-2135. Real estate schools; courses of study; instructors; certiﬁcation
A. Before offering a course of study towards com-
pletion of the education requirement for real estate licensure or renewal of licensure, a school shall obtain from the commissioner a certiﬁcate of approval or
renewal to operate a school for a period of at least four years. A school shall also obtain a certiﬁcate of course approval for each course offered for credit that is not currently approved for another school. Each school is responsible for the content of any course it offers and for the professional administration and teaching of the course. Live classroom prelicensure education, live classroom continuing education and distance learning continuing education courses are subject to approval pursuant to this section.
B. Each approved school shall issue a certiﬁcate of
real estate course attendance to each person who completes an approved prelicensure or continuing
education course. An applicant for renewal of licensure as provided by section 32-2130 shall ﬁle evidence of the certiﬁcates issued by the school with the commissioner showing the number of credit hours and course of study required for renewal.
C. The commissioner may withdraw or deny certi-
ﬁcation or approval of real estate schools, educational
courses or real estate instructors for any acts incon- sistent with the requirements of this chapter, includ- ing:
1. The commission of or the failure to report a
violation by an approved school or instructor of any provision of this chapter or rules adopted pursuant to this chapter.
2. Improper certiﬁcation of student attendance or
3. Any act that is grounds for discipline under
section 32-2153.
4. Teaching information or using course materials
that have not been approved by the commissioner.
5. Failing to attend any continuing education
course required by the commissioner.
6. Filing any false or misleading application, report
or documentation with the department.
D. A real estate school, through any owner, direc-
tor, administrator, instructor or other agent, shall not:
1. Offer a course of study for credit that is not
approved by the department, except that the school may advertise a course as pending approval before its approval.
2. Promote or advertise the school using false or
misleading statistics or testimonials or any other form of deceptive advertisement.
E. The commissioner may determine minimal con-
tent requirements for approving educational courses
and appropriate professional qualiﬁcations for ap-
proving instructors to teach individual educational courses.
F. At least thirty days before holding a course of
study for completion of the education requirements leading to licensure of real estate applicants or for license renewal requirements, an application for a certiﬁcate of course approval or renewal must be ﬁled
with the department. For a live classroom course, the application shall include a course outline with suffi- cient detail to clearly identify the scope and content of the course. The outline shall state a desired instruc- tional outcome for the course. A prelicensure educa- tion course outline that is submitted for approval shall be divided into estimated ﬁfty minute instruc- tional segments. Course approval shall not be unrea- sonably withheld and shall not be issued later than thirty days after ﬁling with the department for a live classroom course. A continuing education distance learning course approval shall not be issued later than ninety days after ﬁling with the department. If the approvals under this subsection are not granted within the time frames prescribed by this subsection, the course shall be automatically approved on a provisional basis for one hundred eighty days, unless the department has otherwise notiﬁed the applicant of speciﬁc deﬁciencies or unfulﬁlled requirements for the course submission. A provisional approval may be withdrawn by the department upon ﬁfteen days’ ad- vance notice if the department’s review of the course subsequently reveals course deﬁciencies or unfulﬁlled course requirements. If not withdrawn, the course approval shall remain approved for the entire course approval period. Course approval shall be for a period of at least four years if the contents of the course remain current and substantially unchanged. The course may not be taught if the content ceases to be current or is substantially changed. The department may establish by rule additional appropriate require- ments for approval of a distance learning course.
G. For a currently approved course:
1. The school shall submit notice to the department
at least fourteen days before holding the course to permit department employees to monitor the course. The notice is not otherwise subject to review and approval by the department.
2. With the permission of the school that received
original approval for the course, another school that desires to offer the course is subject only to the
fourteen day notice requirement before holding the same course. No additional review and approval by the department is required.
H. The department shall approve for continuing
education credit any course of study proposed by a
real estate school if the course satisﬁes the commis- sioner’s requirements and is held in this state.
I. The department may approve for continuing ed-
ucation credit any course of study proposed by a real estate school if the course satisﬁes the commissioner’s
requirements and is held outside this state. Upon the commissioner’s request, the school shall either:
1. Provide the department with a videotape or videotapes of the course. 2. Make arrangements that are approved by the department for monitoring the course.
J. An instructor shall ﬁle with the department an
application for instructor approval or renewal. In- structor approval shall be for at least four years from
the date of approval and is subject to amendment
during the license period only if information material to the instructor’s qualiﬁcations has changed. A per- son holding instructor approval to teach speciﬁc sub- ject matter is not subject to additional or duplicate approval requirements during the original approval period, except that an additional instructor compe- tency area may be added during the license period on submission by the instructor of evidence of compe- tency in such additional competency area.
K. The thirty day and fourteen day course ﬁling
time frames prescribed in this section may be waived by the department for good cause shown.
L. Unless subject to a violation or suspected viola-
tion listed in subsection C of this section, the depart-
ment’s approval of a school, school official, instructor or course shall be processed in a time frame consistent with the time frames set forth in this section.
M. This section does not affect the department’s
ability to withdraw or deny certiﬁcation or approval of
real estate schools, education courses or real estate instructors for a violation of this chapter. 2007
Recent legislative year: Laws 2002, Ch. 23, § 2; Laws 2007, Ch.
9, §
32-2136. Broker management clinics
A. The department shall determine the instructor
qualiﬁcations for teaching broker management clinics
and the course content of broker management clinics
for persons required to attend these clinics pursuant to subsection C of this section.
B. A broker management clinic shall include in-
struction on department audits and on the obligations and responsibilities of designated brokers. A broker management clinic may address record keeping re- quirements, trust fund accounts, advertising and pro- motions, employment agreements, contracts, ﬁdu- ciary duties, material disclosures, department investigations, risk management, employee supervi- sion and broker responsibilities and related topics. A broker management clinic may be designed to address property management activities or sales activities, or both.
C. An applicant for an original real estate broker’s
license shall attend a broker management clinic be- fore activating the license. A broker shall attend a
broker management clinic before becoming a desig- nated broker, unless the broker has attended a broker management clinic during the preceding twenty-three months. All active designated real estate brokers shall attend a broker management clinic once during each twenty-four months of licensure after their ini- tial attendance.
D. Attendance at a broker management clinic con-
stitutes three credit hours of real estate oriented education pursuant to section 32-2130, subsection A.
Recent legislative year: Laws 2000, Ch. 174, § 2; Laws 2001,
Ch. 67, § 3; Laws 2002, Ch. 23, § 2007, Ch. 165, § 8.
3; Laws 2007, Ch. 9, § 5; Laws
32-2151. Disposition of funds; trust money de- posit requirements
A. Unless otherwise provided in writing by all
parties to a transaction, any licensed real estate broker who does not immediately place all funds entrusted to the broker, in the broker’s capacity as a real estate broker, in a neutral escrow depository in
this state shall upon receipt place all such funds in a trust fund account in a federally insured or guaran- teed account in a depository located in this state. The commissioner may adopt such rules as are necessary to provide for records to be maintained and the manner in which such trust fund account deposits may be made.
B. The following minimum requirements apply to
each broker’s trust fund account:
1. The broker shall make deposits to trust fund
accounts by deposit slips. Receipts or other documen-
tation shall identify each transaction, the date and the amount of each deposit and the names of parties involved in the transaction represented by the deposit and monies shall be used only for the purpose for which the monies were deposited.
2. The broker shall retain a complete record of all
monies received in connection with a real estate transaction in the main or branch office of the desig- nated broker in this state or at an off-site storage location in this state if the broker provides prior written notiﬁcation of the street address of the off-site storage location to the department. A broker’s records shall be kept according to generally accepted account- ing principles and shall include a properly descriptive receipts and disbursement journal and client ledger. The broker shall keep any computerized records in a manner allowing reconstruction in the event of de- struction of electronic data. The broker shall maintain a trust fund account bank reconciliation and client ledger balance on a monthly basis and shall remove any interest earned on a trust fund account at least once every twelve months. A broker shall not permit advance payment of monies belonging to others to be deposited in the broker’s personal account or to be
32-2151.01
commingled with personal monies. It is not consid- ered commingling if, when establishing a trust fund account, a broker deposits monies not exceeding ﬁve
hundred dollars to keep the account open or to avoid charges for an insufficient minimum balance.
C. An agreement to place monies entrusted to the
broker in a depository that is located outside of this