Arizona Administrative Code › Title 4 - PROFESSIONS AND OCCUPATIONS › Chapter 28 - STATE REAL ESTATE DEPARTMENT › Article 4 - EDUCATION › Section R4-28-402 - Continuing Education Requirements; Waiver; Distance Learning

Current through Register Vol. 30, No. 28, July 12, 2024
A. Continuing
				education requirements.
1. To be eligible for
				license renewal, a real estate salesperson or broker shall complete continuing
				education courses approved by the Department under
				R4-28-404,
				presented by a real estate school approved under
				R4-28-404,
				and taken since the salesperson's or broker's original licensure or effective
				date of the preceding license, whichever is later.
2. A real estate salesperson or associate
				broker applying for renewal shall submit proof of satisfactory completion of 24
				credit hours of continuing education courses in the categories specified in
				subsection (A)(5). The renewal applicant shall complete a minimum of three
				hours in each of the mandatory categories under subsections (A)(5)(a) through
				(A)(5)(f). The renewal applicant shall take additional courses in the mandatory
				categories, or shall take courses in the business brokerage or general real
				estate categories described in subsection (A)(5)(g) and (A)(5)(h) to fulfill
				the required 24 credit hours.
3. A
				real estate designated broker applying for renewal shall submit proof of
				satisfactory completion of 24 credit hours of continuing education courses. The
				renewal applicant shall complete a minimum of three hours in each of the
				mandatory categories under subsections (A)(5)(a) through (A)(5)(f) and shall
				complete a Broker Management Clinic under A.R.S.
				32-2136
				approved in the Commissioner's Standards category under subsection (A)(5)(c).
				The renewal applicant shall take additional courses in the mandatory
				categories, or shall take courses in the business brokerage or general real
				estate categories described in subsection (A)(5)(g) and (A)(5)(h) to fulfill
				the required 24 credit hours.
4. A
				salesperson renewing for the first time may include credit for attendance at
				the Contract Writing class taken under A.R.S. §
										32-2124(L)
				 if taken within one year before the date of
				the salesperson's original licensure. A broker renewing for the first time may
				include credit for attendance at the Broker Management Clinic under A.R.S.
				§
										32-2136
				taken before the broker's original licensure date.
5. The categories for real estate continuing
				education courses are:
a. Agency law. The
				majority of class material concerns agency relationships and
				disclosure.
b. Contract law. The
				majority of class material concerns the contract formation and implementation,
				or the results of contract use, including:
i.
				Various contract forms and clauses, fundamentals, updates, options, offers,
				counter offers, first right of refusal, and exchanges;
ii. Contract writing;
iii. Required disclosures, problem-solving,
				and law and rule requirements;
iv.
				Recent court decisions and case law studies;
v. Breach of contract issues;
vi. Legal, ethical and agency considerations,
				procedures, and disclosures;
vii.
				Accommodating current financing procedures, requirements, and
				options.
c.
				Commissioner's standards. The majority of class material relates to license
				laws, including:
i. Article 26 of the Arizona
				Constitution;
ii. A.R.S. Title 32,
				Chapter 20, and A.A.C. Title 4, Chapter 28, which includes trust accounts,
				recordkeeping, license requirements, exemptions to licensure, commission
				payments, recovery fund provisions, development requirements, processes for
				public reports for and sale of subdivided and unsubdivided land, membership
				campgrounds and time-shares, cemetery regulations, and grounds for disciplinary
				action and hearings.
iii. A.R.S.
				Title 44, Chapter 10, Article 3.1, Trade Names and Business
				Practices.
d. Real
				estate legal issues. The majority of class material concerns existing real
				estate law, including:
i. Sources of real
				estate law (constitutions, statutes, zoning, common), and the legal
				system;
ii. Land and its elements
				(air, mineral rights, real and personal property);
iii. Land, title, and interests in land,
				homestead, encumbrances, and the Landlord and Tenant Act;
iv. Easements, fixtures, land descriptions,
				ownership, deeds, and building restrictions;
v. Escrow procedures, financing documents,
				and lending laws and regulations, including Regulation Z;
vi. Wills and estates, taxes, bankruptcy law,
				securities laws, title insurance, and appraisal law;
vii. Case law studies, real estate fraud,
				disclosure law, interstate and international real estate;
viii. Commission issues and forms of business
				ownership;
ix. Homeowners
				Association regulations;
x. Real
				Estate Settlement Procedures Act (RESPA); and
xi. Environmental issues.
e. Fair housing. The majority of
				class material concerns equal opportunities in housing, including:
i. Americans with Disabilities Act, ADA
				architectural designs (construction and development), and pertinent court
				cases;
ii. Arizona and federal fair
				housing laws, including advertising, marketing, information, and
				enforcement;
iii. Housing
				developments, deed restrictions, affordable housing, elder housing, zoning,
				local ordinances, and disclosures;
iv. Commercial and residential concerns;
				and
v. Administrative procedures
				and business practices.
f. Disclosure. The majority of class material
				concerns the following:
i. Licensee's
				disclosure obligations to client and others;
ii. Seller's and buyer's disclosure
				obligations to each other;
iii.
				Common material facts warranting disclosure, and liability for failure to
				disclose;
iv. Avoiding inadvertent
				non-disclosures;
v. Transaction
				documents that should be reviewed;
vi. Common "red flags" in a real estate
				transaction;
vii. Homeowner
				associations and buyers' obligations to homeowner associations; and
viii. Advising buyers and sellers of common
				"red flags."
g. Business
				brokerage. The majority of class material concerns business brokerage
				including:
i. Business brokerage basics
				including introducing licensees to business brokerage, associated terminology,
				marketing, prospecting, listing, pricing, closing practices, the use of
				contracts related to and unique to business brokerage, and the application of
				business brokerage contracts;
ii.
				Business valuations and appraisals, and establishing an in-depth review of
				proper business valuation techniques for small, medium, and large
				businesses;
iii. Tax structure and
				considerations, tax law, and policy including subjects such as financing tools
				available, options available, and tax implications;
iv. Accounting for business
				brokers;
v. Agency in business
				brokerages, the use of contracts related to and unique to business brokerage,
				and the application of business brokerage contracts; and
vi. Disclosure issues in business brokerage,
				including common "red flags" in a business opportunity transaction, and
				advising buyers and sellers of common "red flags."
h. General real estate. The majority of class
				material concerns real estate, but does not fall within any of the categories
				listed in subsections (A)(5)(a) through (A)(5)(g), including:
i. Appraisal methodology;
ii. General finance, use of financial
				calculators, mathematics, and managing cash flow;
iii. History of development in metropolitan
				areas; and
iv. Introduction to
				property management.
6. The Department may require an individual
				applying for renewal to obtain credit hours based upon significant current
				issues in the real estate community. The Department shall notify licensees of a
				new requirement by written notice published in printed or electronic
				format.
7. The Department may grant
				continuing education credit for a course that does not have a certificate of
				approval under
				R4-28-404
				if the applicant demonstrates to the satisfaction of the Commissioner that the
				course meets the requirements prescribed in
				R4-28-404
				and the course content requirements of this Section.
8. An applicant may substitute subject matter
				hours within a 90-hour broker's prelicensure course that meet the criteria for
				credit under subsections (A)(5)(a) through (A)(5)(h), if taken since the last
				license renewal, for the continuing education credit required in subsection
				(A)(2) or (3).
9. If any change in
				the continuing education course requirements occurs during a renewal
				applicant's license period and the applicant has fully complied with the
				continuing education requirement in effect before the change occurs, the
				Department shall consider the renewal applicant to be in compliance with the
				continuing education requirements for the license period.