ARTICLE 5. ADVERTISING (R4-28-502 through R4-28-504) +10Arizona · Real Estate · English

A licensee may not advertise property in a manner implying no salesperson or broker is involved. A licensee advertising their own or another licensee's property for sale, lease, or exchange in Arizona must disclose they are licensed as a salesperson/broker AND as the property owner by placing the words 'owner/agent' in the advertisement.

• ✓Advertising may not imply no licensee is involved in the transaction
• ✓A licensee advertising owned property must include the words 'owner/agent'

A licensee must ensure all advertising contains accurate claims and fully states factual material, and may not misrepresent facts or create misleading/ambiguous impressions. All advertising must clearly and prominently identify the employing broker's legal name or dba name(s) on the license certificate. The designated broker is responsible for the advertising of all real estate activity.

• ✓Advertising must be accurate and must not create misleading or ambiguous impressions
• ✓All advertising must clearly and prominently identify the employing broker's legal or dba name
• ✓The designated broker is responsible for all real estate advertising

A licensee may not use the term 'acre,' alone or modified, unless referring to at least 43,560 square feet. Before placing a sign or publishing to an electronic medium offering specific property for sale/lease/rent/exchange, a licensee must secure the written consent of the property owner, and the sign or publication must be promptly removed upon the owner's request.

• ✓The term 'acre' may only be used for an area of at least 43,560 square feet
• ✓Written owner consent is required before signage/electronic publication, and it must be removed upon owner request

Use of an electronic medium (Internet, Artificial Intelligence, or website technology) that targets Arizona residents with offering of a property interest or brokerage services constitutes advertising under A.R.S. § 32-2101(2). All such advertising must comply with the employing broker name requirement (Subsection E), and if advertising online, all advertising requirements must be satisfied on the advertisement without the need to scroll.

• ✓Electronic/AI advertising targeting Arizona residents is subject to advertising rules
• ✓Online advertising must satisfy all requirements without the need to scroll

A licensee may not describe a premium offered at no/reduced cost as an 'award' or 'prize' or similar term. Before a person participates in a premium offer, the licensee must clearly disclose in writing the terms, costs, conditions, restrictions, and expiration date. Unless otherwise provided by law, a person may not solicit or sell an interest in a development by conducting a lottery, contest, drawing, or game of chance. Subdividers, time-share developers, or membership camping operators may apply for approval to conduct such promotions under specified statutes.

• ✓Premiums may not be called 'award,' 'prize,' or similar terms
• ✓Terms, costs, conditions, restrictions, and expiration of a premium must be disclosed in writing before participation
• ✓Lottery/contest/drawing sales are prohibited unless approved under statute

A developer with a conditional sales exemption or lot-reservation intent must disclose in all advertising that only reservations/conditional contracts will be taken until a public report issues. Only the developer or authorized representative may file development advertising. Advertising must include the registered development name; may not advertise restricted payment/price/interest terms without conspicuous disclosure; and may not advertise proposed/incomplete improvements unless a prominent 'proposed only, no warranty' disclosure or evidence of assured/timely completion is provided.

• ✓Advertising must disclose when only reservations/conditional contracts are accepted before the public report issues
• ✓Proposed improvements require a prominent 'proposed only' disclosure or evidence of assured completion
• ✓Advertising must include the registered development name

Pictorial/illustrative depictions other than unmodified photographs must bear a prominent disclosure identifying their nature (artist's conception, architectural design, AI-created design, engineer rendering, 3-D modeling, etc.) and identify proposed non-existent improvements. Inaccurate pictorial representations must include a legend disclosing actual road-mile distance. Maps must show actual road miles. Developers may not imply exclusive use of publicly accessible facilities and must disclose non-permanent bodies of water and incentive conditions before a prospect makes a sales-presentation trip.

• ✓Non-photograph depictions must be prominently identified as renderings/conceptions and note proposed improvements
• ✓Distances must be shown in actual road miles on maps and pictorial representations
• ✓Non-permanent bodies of water and incentive conditions must be disclosed

All license fees must be paid in advance and are the same regardless of time of year. If fees are paid with a dishonored check, the department may deny or cancel the license. An original license runs two years through the last day of the month it was granted; a renewal license is a two-year period beginning the first day after the previous license's expiration.

• ✓License fees paid in advance are the same regardless of time of year
• ✓Original license is for two years through the last day of the month it was granted
• ✓Dishonored check payment may result in denial or cancellation of the license

All license fees are paid in advance and are the same regardless of the time of year. Payment by a dishonored check may result in denial or cancellation. An original license runs two years through the last day of the month it was granted; a renewal license runs two years from the day after the previous license expires.

• ✓All license fees paid in advance and same regardless of time of year
• ✓Dishonored check payment may result in denial or cancellation of the license
• ✓Original license is for two years through the end of the granting month; renewal runs two years from day after expiration

Documents are filed on the date received; a renewal postmarked by the deadline is timely. In computing time, the first day is excluded and the last day included unless it is a Saturday, Sunday, or legal state holiday, in which case time runs to the next business day.

• ✓Renewal applications postmarked on or before the deadline are considered timely
• ✓First day is excluded, last day included unless a Saturday, Sunday, or legal state holiday

The department must notify applicants of deficiencies within the review time-frame; failure to notify makes the application complete. Applicants must supply missing information within the response period. Failure to respond closes the file unless a written extension (one, 30 days) is granted before expiration.

• ✓If department does not provide deficiency notice within the time-frame, the application is deemed complete
• ✓The department grants one extension of 30 days for missing information
• ✓The completeness time-frame is suspended from notice until the department receives the information

The substantive review begins after administrative completeness. Applicants must respond to comprehensive information requests; failure to respond results in denial unless a written 30-day extension is requested. Denials require written notice with statute citations, appeal rights, and the appeal time period.

• ✓Failure to provide requested substantive information results in denial unless a 30-day extension is granted
• ✓Denial notices must cite supporting statutes/rules and state appeal rights and time periods

Timely complete renewals with no changes result in a renewal notice; late renewals or affirmative disciplinary/criminal answers are processed as modified/amended applications. Individual license overall time-frame is 60 days; entity/broker licenses are 120 days; course/school/instructor approvals are 30 days (120 for distance learning).

• ✓Individual salesperson/broker license overall time-frame is 60 days; entity/employing broker is 120 days
• ✓Membership Camping Cert. of Convenience overall time-frame is 120 days
• ✓Advertising for lottery/drawing has a 15-day overall time-frame; exemptions have an 80-day time-frame

A fee is charged for development site inspections before or after issuance of a public report, and multiple inspections and fees may be required based on development circumstances.

• ✓A development site inspection fee is charged before or after public report issuance
• ✓Multiple inspections and fees may be required based on development circumstances

A developer may apply for a special order of exemption to offer subdivision lots or unsubdivided land before a public report is issued, submitting the petition, executed application, purchase contract with disclosures and Conditional Sales Addendum, current title report, development map, and water supply evidence. The exemption expires upon issuance/denial of the public report or a suspension order.

• ✓Requires a completed Petition for Conditional Sales Exemption and executed application
• ✓Requires a purchase contract with all disclosures and Conditional Sales Addendum
• ✓Requires water supply evidence (Certificate of Assured Water Supply or adequacy report)
• ✓Exemption expires upon issuance/denial of the public report or a suspend/cease-and-desist order

The ALJ may order compliance with statutes/documents/contract provisions and levy civil penalties per violation. Monies collected go to the hearing office fund. If the petitioner prevails, the respondent must pay the filing fee. Orders are binding unless a rehearing is granted, enforceable through contempt, and subject to judicial review under 41-1092.08.

• ✓ALJ may levy civil penalty on the basis of each violation
• ✓Prevailing petitioner recovers the filing fee from respondent
• ✓Orders enforceable through contempt of court proceedings
• ✓Orders subject to judicial review under section 41-1092.08

An aggrieved person may apply for rehearing by filing a written petition with the commissioner under 41-1092.09. The commissioner serves notice within 10 days. Filing temporarily suspends the ALJ's action; if granted, action is suspended pending decision. The commissioner must state grounds for granting or denying.

• ✓Rehearing petition filed in writing with the commissioner
• ✓Commissioner serves notice within 10 days of filing
• ✓Filing a rehearing petition temporarily suspends the ALJ's action
• ✓Order granting/denying rehearing must state particular grounds and reasons

The applicant must disclose association details: name and master association name, estimated assessments and payment method, formation/operational status, CC&Rs and bylaws URL, control/title transfer conditions, liens on common areas, mandatory membership, and copies of Articles and Bylaws.

• ✓Must disclose association assessments (breakdown and estimated total) and how they are paid
• ✓Must disclose when control of the association and title to common areas transfer to lot purchasers, and whether membership is mandatory
• ✓Must provide copies of the Articles of Incorporation and Bylaws in effect

The applicant must disclose whether lots are vacant or improved, intended uses, any restrictions (and Fair Housing Act compliance), open-range/livestock conditions with required contract fencing provisions, mineral rights reservations, and any other condition limiting use or occupancy.

• ✓Must disclose restrictions and whether they comply with the Federal Fair Housing Act
• ✓Open-range/livestock disclosures require purchase contract provisions on fencing to prevent livestock roaming
• ✓Must disclose mineral rights reservations and any other condition limiting use or occupancy

The applicant must describe the sales offering: how sales/leases are made and title conveyed, where deposits are held, refund conditions, occupancy timing, liens on title, lease terms, and the responsible Arizona broker and records custodian.

• ✓Must indicate where the purchaser's deposit/earnest monies are held and under what conditions they are refundable
• ✓Must name the Arizona broker responsible for sales (with license number/contact) or explain why none
• ✓Must indicate whether sales documents contain all required contract disclosures

The applicant must provide unrecorded liens/encumbrances and a title report with an effective date within 30 days of Department receipt, a legal description from a recorded map/declaration, applicant's interest, preparer info, conditions to secure title, and the statement that no further matters of record affect the land.

• ✓Title report must have an effective date not more than 30 days before Department receipt
• ✓Title report must include a recorded-map legal description and the statement 'There are no further matters of record affecting the land'
• ✓Must provide legible copies of all recorded/unrecorded documents reflected by the title report

The applicant must disclose the public school district and nearby schools, plus community shopping, public transportation, medical facilities, fire protection, ambulance/911 service, law enforcement, refuse collection, and the nearest USPS office, including providers, distances, and estimated costs.

• ✓Must disclose the public school district and nearest public/charter schools within specified distances
• ✓Must disclose fire protection, ambulance/911 availability, law enforcement, refuse collection, and the nearest USPS primary office

The applicant must obtain ADEQ (or designee) approval of sanitary facilities, list other-jurisdiction property registrations, provide condominium documentation with an attorney opinion letter, comply with foreign-development requirements, and sign an affidavit attesting the application is true.

• ✓The applicant must obtain approval of sanitary facilities from ADEQ or its designee
• ✓Condominium applications require an Arizona attorney's opinion letter confirming compliance with A.R.S. §§ 33-1215 and 33-1219
• ✓Foreign developments advertised/sold in Arizona must comply with all Arizona laws as if located in-state, and the applicant must sign a truth affidavit

An aggrieved party may file a written motion for rehearing or review with the Commissioner under A.R.S. § 41-1092.09, specifying particular grounds and serving all other parties. The motion may be amended before ruling.

• ✓A party aggrieved by a decision may file a written motion for rehearing/review specifying particular grounds and serving copies on all parties
• ✓The motion may be amended at any time before the Commissioner rules on it
• ✓Rehearing/review is filed pursuant to A.R.S. § 41-1092.09

A rehearing or review may be granted only for enumerated causes that materially affect the moving party's rights, ranging from procedural irregularity to decisions unsupported by evidence.

• ✓Grounds include irregularity/abuse of discretion depriving a fair hearing, misconduct, accident or surprise, and newly discovered material evidence
• ✓Grounds also include excessive/insufficient penalties, errors of law, arbitrary/capricious findings, and findings not supported by the evidence or contrary to law
• ✓The cause must materially affect the moving party's rights

Motions must state specific grounds, facts, law, and relief sought, with affidavits attached. Responses must be filed within a set timeframe, and the Commissioner may order rehearing on his own initiative.

• ✓The motion must specify which subsection (B) grounds it relies on and set forth specific facts, law, and the specific relief sought
• ✓Affidavits must be attached to the motion before filing unless the Commissioner grants leave for later filing (may be granted ex parte)
• ✓A written response must be filed with the Department within 15 days after the motion is filed and served on all parties
• ✓Within 30 days after a decision, the Commissioner may on his own initiative order rehearing/review, specifying the grounds

The Office of Administrative Hearings (OAH) is established, and the Governor appoints its Director, who serves as chief ALJ with defined qualifications and duties.

• ✓The Governor appoints the Director (section 38-211); the Director serves as chief ALJ and must have ALJ-level experience plus supervisory/management/administrative skills
• ✓An ALJ must have graduated from an accredited law school OR have at least two years of administrative/managerial experience in the subject matter/agency section assigned
• ✓The Director must make rules to carry out the article, including rules governing ex parte communications in contested cases, and may not require legal representation to appear before an ALJ

The Director must submit periodic reports, and agencies must use OAH services with specified exceptions.

• ✓The Director must submit an annual report by November 1 to the Governor and legislative leaders, and by December 1 report ALJ decisions rejected/modified by agency heads, disqualification motions, and 41-1009 violations by agency
• ✓State agencies supported by the general fund (and the registrar of contractors) must use OAH services; all other agencies must contract for them
• ✓An agency head, board, or commission that directly conducts a hearing as an ALJ is not required to use OAH services for that hearing

An agency must prominently post and print on applications and denial communications a notice advising applicants of the requirement to limit occupational regulations and their right to petition or challenge the regulation.

• ✓Notice must be posted on the agency website and printed on applications and denials
• ✓Notice must reference the right to petition and challenge occupational regulations under sections 41-1093.01 to 41-1093.03

An agency may not deny an otherwise qualified applicant a regular or provisional occupational license solely due to a drug offense conviction under title 13, chapter 34 or 34.1. Exceptions include the state board of education, health profession boards, DHS, and law enforcement.

• ✓Agency cannot deny a license to an otherwise qualified applicant solely for a drug offense conviction
• ✓This protection covers both regular and provisional occupational licenses
• ✓Exceptions include health profession boards, board of education, DHS, and law enforcement

The occupational regulation article does not require private employers to grant or deny employment to any individual and does not impair their right to establish eligibility criteria, ethics codes, or disciplinary policies.

• ✓Article does not require private employers to grant or deny employment
• ✓Article does not impair private employers' eligibility criteria, ethics codes, or disciplinary policies

Timely renewal requires an application, renewal fee, and evidence of continuing education: 24 credit hours for salespersons/associate brokers and 30 credit hours for designated brokers (or certain associate brokers) during each 24-month license period. The commissioner may waive CE for good cause.

• ✓24 CE hours for salespersons and associate brokers per 24-month period
• ✓30 CE hours for designated brokers per 24-month period
• ✓Commissioner may waive CE for good cause shown

Between expiration and renewal, the licensee's rights expire and it is unlawful to act as a licensee. Expiration of an employing broker severs employees' licenses on the expiration date (they may be rehired on renewal). The department shall terminate a license expired for more than one year.

• ✓Acting as a licensee while the license is expired is unlawful
• ✓The department shall terminate a license that has been expired for more than one year

Timely renewal requires an application, renewal fee, and evidence of continuing education during the license period: 24 credit hours for salespersons and associate brokers, and 30 credit hours for designated brokers (or associate brokers employed under 32-2151.01(G)), accrued each 24-month period.

• ✓Salespersons and associate brokers require 24 CE credit hours per 24-month period
• ✓Designated brokers require 30 CE credit hours per 24-month period
• ✓Commissioner may waive continuing education for good cause shown

Between expiration and renewal, the licensee's rights expire and it is unlawful to act. If an employing broker's license expires, employees' licenses are severed and may be rehired on renewal. The department must terminate a license expired for more than one year.

• ✓It is unlawful to act while a license is expired
• ✓Employing broker expiration severs employees' licenses, who may be rehired on renewal
• ✓The department shall terminate a license expired for more than one year

Within one year after expiration, the department renews a license without examination if the license was not canceled or suspended at expiration. A terminated or revoked license does not qualify for renewal (except specified reinstatement provisions). The department shall not renew for felons currently incarcerated, paroled, under community supervision, or on probation.

• ✓Renewal without exam allowed within 1 year if license was not canceled/suspended at expiration
• ✓Terminated or revoked licenses do not qualify for renewal
• ✓No renewal for felons currently incarcerated, paroled, under supervision, or on probation

An inactive licensee does not need CE during inactivity. To reactivate, the commissioner may require CE, and if inactive for more than fifteen years, the commissioner shall require passing an Arizona-specific law examination. The department must send notice one year before the fifteen-year period expires.

• ✓Inactive licensees need not complete CE while inactive
• ✓Inactive more than 15 years requires passing an Arizona-specific law examination to reactivate
• ✓Department must send notice one year before the 15-year period expires

Within one year after expiration, the department renews without exam if the license was not canceled/suspended at expiration; the renewal period commences the day after the prior expiration. A terminated or revoked license does not qualify for renewal (except as provided).

• ✓Renewal without exam allowed within 1 year of expiration if license not canceled/suspended at expiration
• ✓A terminated or revoked license does not qualify for license renewal
• ✓CE hours completed after expiration count toward renewal if renewing within one year

An inactive licensee need not complete CE while inactive, but when applying to reactivate, the commissioner may require CE first. If inactive for more than fifteen years, the applicant must pass the Arizona state-specific exam before activation. The department must notify the licensee one year before the 15-year period expires.

• ✓Inactive licensee need not complete CE while inactive
• ✓If inactive more than 15 years, must pass Arizona state-specific exam before activation
• ✓Department must notify licensee one year before the 15-year inactive period expires

A real estate broker licensee may renew as a real estate salesperson without meeting section 32-2124(B) requirements, paying the salesperson renewal fee. To later obtain a broker license, the person must meet all requirements including section 32-2124(C).

• ✓Broker may renew as a salesperson without meeting salesperson course requirements
• ✓Regaining a broker license later requires meeting section 32-2124(C) requirements

A real estate broker may renew as a real estate salesperson without meeting the broker education requirements of 32-2124(B), paying the salesperson renewal fee. To later obtain a broker license, the person must meet all requirements including 32-2124(C).

• ✓Broker may renew as salesperson without meeting salesperson prelicensure requirements, paying salesperson renewal fee
• ✓To regain broker license, must meet all broker requirements including 32-2124(C)

All contracts for purchase/lease of subdivided land must clearly disclose the nature of the document, the right to receive a public report, and (for unimproved lots) the rescission right. Contracts failing to disclose are unenforceable against the purchaser. For residential lots, liability for prior material representations cannot be waived and any such waiver is void.

• ✓Contracts must disclose right to receive public report and rescission rights
• ✓Contracts lacking required disclosures are unenforceable against purchaser
• ✓Residential contracts cannot waive liability for prior material representations
• ✓Purchaser must receive recordable-form copy of contract on execution

No subdivided land may be sold without provision for permanent access traversable by conventional motor vehicle unless waived by the commissioner. Sale without permanent access is rescindable by the buyer; the action must be brought within three years of contract execution.

• ✓Subdivided land requires permanent access unless commissioner waives it
• ✓Sale without permanent access is rescindable by the buyer
• ✓Rescission action must be brought within 3 years of execution

A subdivider/agent who violates the chapter, a rule, an order, or engages in unlawful practices may be assessed a civil penalty up to $2,000 per infraction (an infraction concerning multiple lots is a single infraction). Selling without a required public report for lots created after Dec 31, 2008 carries a penalty up to $5,000 per infraction. Proceedings must commence within five years of discovery.

• ✓Civil penalty up to $2,000 per infraction for general violations
• ✓Multiple lots in one infraction count as a single infraction
• ✓Penalty up to $5,000 for selling without required public report (post-2008 lots)
• ✓Proceedings must commence within 5 years of actual or constructive discovery

All fees and earned expense collected under this chapter are deposited in the state general fund unless otherwise prescribed by law.

• ✓Fees and earned expenses deposited in the state general fund
• ✓Deposit rule applies unless otherwise prescribed by law