32-2194.29 through 32-2194.33. Cemetery Signs, Care Funds, and Abandonment +16Arizona · Real Estate · English

Each cemetery must post conspicuous approved signs indicating whether it is endowed or nonendowed. Endowed-care funds may only be used to care for burial spaces, and trustees must invest as prudent investors considering probable income and safety of capital.

• ✓Signs must indicate endowed or nonendowed status conspicuously
• ✓Endowed-care funds may only be used to care for burial spaces
• ✓Trustees must invest using the prudent investor standard
• ✓Only cemetery-employed or designated persons may open or close burial places

Cemetery property is presumed abandoned when an owner fails to provide a current address for 50 consecutive years and cannot be reached by certified mail. No presumption applies if adjoining common-ownership property is in use or a memorial marker is placed. After certification, publication, and 120 days without owner notification, the cemetery may resell.

• ✓Abandonment presumed after 50 consecutive years of no current address
• ✓No abandonment presumption if a memorial marker is placed on the property
• ✓Notice must be published weekly for two consecutive weeks after certification
• ✓Resale allowed 120 days after final publication with no owner notification
• ✓Endowed-care contribution required on each reclaimed plot sale; former owners may reclaim equivalent property

An action to review a final administrative decision is commenced by filing a notice of appeal within a strict deadline. The record must then be transmitted to the superior court.

• ✓A notice of appeal must be filed within thirty-five days from the date a copy of the decision is served on the affected party
• ✓Service is complete on personal service or five days after the decision is mailed to the party's last known address
• ✓Within ten days after filing, the party must file notice with OAH/agency, which then transmits the record to the superior court
• ✓The record consists of the original agency action, motions/memoranda, admitted exhibits, the ALJ decision, and (optionally) a transcript at the requesting party's expense

A licensee shall not perform acts requiring a license while incarcerated. Violation is a class 6 felony.

• ✓Licensed acts prohibited while incarcerated
• ✓Violation is a class 6 felony

The commissioner may by special order exempt specific timeshare plans from the article upon written petition showing compliance is not essential to the public interest or purchaser protection due to the plan's special characteristics.

• ✓Exemption requires a written petition and a satisfactory showing of special characteristics
• ✓Special orders relate only to specific timeshare plans
• ✓The petition must include a non-returnable $300 initial fee

A resident purchaser may cancel a membership camping contract before midnight of the third business day; a nonresident before midnight of the seventh calendar day. All monies must be refunded within 30 days, and a conspicuous notice must appear in the contract.

• ✓Resident purchasers may cancel before midnight of the third business day; nonresidents before the seventh calendar day
• ✓All monies must be fully refunded within thirty days of receipt of the cancellation notice
• ✓The contract must contain a conspicuous cancellation notice in at least ten-point bold-faced type

Upon examination without grounds for denial, the commissioner issues a public report authorizing sales, which must be furnished to each purchaser with a receipt retained. Issuance is not an endorsement.

• ✓The report must be furnished to each purchaser, taking a receipt retained by owner and broker for at least five years
• ✓Issuance is not deemed an endorsement by the commissioner
• ✓It is unlawful to make statements indicating issuance constitutes an endorsement

Certain transactions are exempt from the public report requirement, including one-contract-per-year offers, government offers, and transfers of previously authorized contracts to non-original owners. Agents in multiple transactions still need registration.

• ✓An offer/sale of not more than one contract in any twelve-month period by one person is exempt
• ✓Offers/sales by a government or government subdivision are exempt
• ✓An agent participating in more than one transaction per year must register as a membership camping salesperson if compensated

Before offering cemetery plots, the owner/agent must notify the commissioner in writing with detailed information: ownership, legal description, title condition, terms, filed cemetery map, use restrictions, designated broker, indebtedness/liens, financial responsibility, flood/drainage statement, utilities, and CPA statement if ownership transferred. The conveyance of a plot does not limit the buyer's right to testify before public bodies.

• ✓Written notice with detailed cemetery info required before offering plots
• ✓Cemetery map must be filed with the county recorder
• ✓Owner must show proof of financial responsibility and disclose all liens
• ✓Contract provisions limiting a buyer's right to testify are against public policy

After examination, the commissioner issues a certificate of authority authorizing sale of cemetery plots unless grounds for denial exist. Denial grounds parallel subdivision grounds plus insufficient dedicated land for financial security. Owners cannot sell without a certificate; premature sales are voidable within three years. Hearing may be requested within 30 days of denial.

• ✓Certificate of authority required before selling any cemetery plots
• ✓Sale before certificate is voidable by purchaser within 3 years
• ✓Denial grounds include fraud, inability to deliver title, and insufficient dedicated land
• ✓Applicant may request hearing within 30 days of denial order

Cemetery sales contracts must clearly disclose the nature of the document/grave designation, whether the cemetery is endowed, that a certificate of authority was received, completion dates for improvements, fees for opening/closing/marker/vault, whether markers may be bought elsewhere, and cancellation/refund policy. Contracts failing to disclose are unenforceable against the purchaser.

• ✓Cemetery contracts must disclose endowed status and certificate of authority
• ✓Must disclose fees for interment, markers, and vaults and refund policy
• ✓Contracts lacking required disclosures are unenforceable against the purchaser

Only a corporation or LLC organized for cemetery business may transact cemetery business, and no certificate issues without an established irrevocable trust fund. Endowed-care trust fund principal must remain permanently intact with only income/unitrust expended for care. Initial deposits range from $10,000 to $50,000 based on surrounding population; per-sale deposits are $2.75/sq ft per grave, $36/niche, and $120/crypt.

• ✓Irrevocable trust fund required before certificate of authority issues
• ✓Trust principal remains permanently intact; only income used for care
• ✓Initial endowed-care deposit ranges $10,000–$50,000 by population
• ✓Per-sale deposits: $2.75/sq ft grave, $36/niche, $120/crypt within 30 days of full payment

The chapter does not apply to religious corporations/churches operating a cemetery, private or municipal cemeteries, certain fraternal burial parks (≤10 acres, established before July 2, 1963, members only), or the Arizona pioneers' home cemetery.

• ✓Religious, private, and municipal cemeteries are excepted
• ✓Certain pre-1963 fraternal burial parks under 10 acres are excepted
• ✓Arizona pioneers' home cemetery is excepted

Cemetery advertising cannot contain untrue statements/omissions or misrepresent proposed improvements. Advertising must be filed on request and be consistent with the notice of intention. Cemeteries keep transaction records for five years after payment in full. Civil penalties for cemetery violations are up to $1,000 per infraction, recovered by the attorney general.

• ✓Cemetery advertising cannot contain untrue statements or misrepresent improvements
• ✓Transaction records kept 5 years after payment in full
• ✓Civil penalty up to $1,000 per infraction for cemetery violations

Cemetery property is presumed abandoned when the owner fails to provide a current address for 50 consecutive years and the cemetery cannot communicate by certified mail (no presumption if common-ownership adjoining use or a memorial marker exists). After certification, publication, and 120 days without owner contact, the cemetery may resell; original owners/heirs may recover equivalent property or the amount paid.

• ✓Abandonment presumed after 50 consecutive years of no current address
• ✓No presumption if a memorial marker exists on the property
• ✓Cemetery may resell after certification, publication, and 120 days
• ✓Original owners/heirs may obtain equivalent property or recover amount paid

Undeveloped cemetery property must commence development within five years of the first plot sale. Cemetery plots subject to liens cannot be sold, and no cemetery may be sold without permanent access. Cemeteries must post signs indicating endowed or nonendowed status and may adopt rules on file with the commissioner. Dedication to cemetery purposes is exempt from perpetuities laws.

• ✓Development must commence within 5 years of first plot sale
• ✓Plots subject to liens cannot be sold; permanent access required
• ✓Cemeteries must post endowed/nonendowed status signs
• ✓Dedication to cemetery purposes is not invalid under perpetuities laws

Rule R4-28-701 requires disclosure of compensation sharing arrangements, ensuring transparency about how commissions are divided.

• ✓Licensees must disclose compensation sharing arrangements as required
• ✓Compensation may only be shared with properly licensed persons

Rules R4-28-802 and R4-28-803 govern conveyance documents and required contract disclosures in transactions.

• ✓Conveyance documents must meet the requirements of R4-28-802
• ✓Contracts must contain the disclosures required by R4-28-803

Rules R4-28-804 and R4-28-805 govern rescission of contract and public report receipt, requiring buyers to acknowledge receipt of the public report.

• ✓Buyers must acknowledge receipt of the public report before purchase (R4-28-805)
• ✓Contract rescission rights are governed by R4-28-804
• ✓Failure to deliver a required public report may make the sale rescindable

A 'property management firm' is a corporation, partnership, or LLC licensed under 32-2125(A) or a designated broker that, by written agreement, manages rental property for compensation. A 'rental agreement' means a lease or leasing agreement. This article supersedes all other provisions of law and rules relating to property management.

• ✓Property management firm must manage rental property for compensation by written agreement
• ✓Article 3.1 supersedes all other laws/rules relating to property management

Before offering unsubdivided land for sale or lease, the owner or agent must notify the commissioner in writing of the intent. The notice must contain detailed information including ownership, legal description, title condition, terms, use, permanent access, water/utility availability, special district debt, open range/livestock status, and parent corporation disclosures.

• ✓Written notice to commissioner is required before offering unsubdivided land for sale or lease
• ✓Notice must state condition of title including all encumbrances
• ✓Notice must disclose water availability or lack thereof and utility availability
• ✓Notice must state whether land is in open range and any fencing provisions
• ✓'Principal' means any person or entity with a 10% or more interest

The article applies to in-state timeshare property and to plans (with or without in-state accommodations) sold or offered to individuals located in Arizona. Several categories of small or short-term plans are excluded.

• ✓Applies to in-state property and to plans sold/offered to any individual located in Arizona
• ✓Does NOT apply to plans of fewer than 12 interests, plans under 3 years, plans with total obligation under $1,500, or exchange programs (except as provided)
• ✓An exchange program is regulated as a timeshare plan if the purchaser's total contractual obligation exceeds $3,000 for any individual recurring timeshare period

An employing broker application must include name, addresses, telephone/fax/email, designated broker's name/license/expiration/signature, entity type, mailing address, dba name if applicable, and bank name/location and number of any trust accounts.

• ✓Must include designated broker's name, license number, expiration, and signature
• ✓Must disclose entity type and trust account details
• ✓Must provide dba name if applicable

Each entity must name a qualified designated broker: a partner (partnership), corporate officer (corporation), or member/manager (LLC). A limited partner cannot be a designated broker. Applications require agreements, resolutions, signed statements attesting truthfulness/qualifications, and filed formation documents.

• ✓Limited partner cannot serve as designated broker for a partnership
• ✓Corporate designated broker must be a corporate officer
• ✓LLC designated broker must be a member or manager
• ✓Certificate of Good Standing required if over one year since formation filing

The department will not license a broker under a dba similar to an existing broker if confusing. An employing broker must hold at least 10% ownership of a dba/trade name before adding it. Individuals cannot conduct business under any name other than their licensed name. A broker cannot allow a licensee to work if the broker's only interest is a fee for use of the license.

• ✓Broker must hold at least 10% ownership of a dba/trade name before adding it
• ✓Cannot license a broker under a dba confusingly similar to an existing broker
• ✓Cannot allow licensed activity where broker's only interest is a fee for license use

To resign, a designated broker submits a resignation letter; an entity removes its broker via partnership agreement/resolution. The employing broker must cease business until compliant, but may continue without interruption if the incoming designated broker submits the Change Form and appropriate resolution/amendment the same or next business day.

• ✓Employing broker must cease business until new designated broker is appointed
• ✓Business continues without interruption if new broker submits Change Form same/next business day
• ✓Corporation/LLC requires a resolution; partnership requires an agreement amendment

A non-resident employing broker with a principal office outside Arizona must maintain an Arizona trust/escrow account, keep immediately available copies of Arizona transaction documents, identify the Arizona custodian of records, and identify record location. If employing licensees in-state, they must establish an Arizona office with a branch manager or notify the department of a statutory agent.

• ✓Must maintain an Arizona-situated trust or escrow account for Arizona transactions
• ✓Must keep immediately available copies of Arizona transaction documents
• ✓Must establish an Arizona office/branch manager or notify department of statutory agent
• ✓Must notify department within 10 days of changes to required information

On request of a licensee, the department may cancel that person's license only if the licensee is not presently under investigation and the department has not commenced any disciplinary proceeding against the licensee.

• ✓Cancellation allowed only if the licensee is not under investigation
• ✓Cancellation allowed only if no disciplinary proceeding has commenced

On a licensee's request, the department may cancel that person's license only if the licensee is not presently under investigation and no disciplinary proceeding has been commenced.

• ✓Cancellation on request allowed only if the licensee is not presently under investigation
• ✓Cancellation on request allowed only if no disciplinary proceeding has commenced

Superior court has jurisdiction to review final administrative decisions. Venue follows the governing statute or, if unspecified, may be in specified counties connected to the proceeding.

• ✓Jurisdiction to review final administrative decisions is vested in the superior court
• ✓If venue is prescribed by statute, it controls; otherwise, venue may be where the hearing was held, where the subject matter is situated, or where the transaction giving rise to the proceeding occurred

Unless all parties agree otherwise in writing, a broker who does not immediately place entrusted monies in a neutral in-state escrow depository must place them in a trust fund account in a federally insured in-state depository. Deposits require deposit slips, and monies must be used only for the deposited purpose.

• ✓Entrusted monies must go to a neutral escrow or a federally insured in-state trust fund account
• ✓Trust monies may be used only for the purpose for which they were deposited

Brokers must retain complete records of all monies received (electronically or at the main/branch office or notified in-state off-site storage), kept per generally accepted accounting principles with receipts, a disbursement journal, and client ledger. On a monthly basis the broker must complete a three-way reconciliation between bank statements, client ledgers, and trust account ledgers and explain any variation.

• ✓Broker must keep receipts, a disbursement journal, and a client ledger per GAAP
• ✓A monthly three-way reconciliation between bank statements, client ledgers, and trust account ledgers is required

Violations include failing to remove earned interest at least every 12 months, commingling advance payment monies with personal funds, failing to identify nonowner tenant monies, failing to maintain separate ledgers per property, failing to reconcile, transferring monies between different owners' accounts without written consent, and failing to create checks and balances. A $5,000 personal deposit to keep the account open is not commingling.

• ✓Interest earned on a trust account must be removed at least once every 12 months
• ✓A broker may deposit up to $5,000 of personal monies to keep the account open without commingling
• ✓Transferring monies between different persons' accounts requires each person's written consent

An agreement to place entrusted monies in an out-of-state depository is valid only if all parties agree in writing and either the monies are in a federally insured property management trust account with required disclosures/addendum, or, if not, the broker discloses potential risks of out-of-state deposit.

• ✓Out-of-state depository requires written agreement of all parties
• ✓Property management out-of-state trust accounts require disclosures and an examination-access addendum

Unless all parties agree in writing otherwise, a broker who does not immediately place entrusted monies into a neutral escrow depository in Arizona must place them in a trust fund account in a federally insured/guaranteed account in an Arizona depository.

• ✓Entrusted monies must go to a neutral escrow or a federally insured Arizona trust fund account on receipt
• ✓Any deviation requires written agreement by all parties to the transaction

Deposits must be made by deposit slips with documentation identifying each transaction, date, amount, and parties. Records must follow GAAP with receipts, disbursement journal, and client ledger. The broker must complete a monthly three-way reconciliation between bank statements, client ledgers, and trust account ledgers with an explanation for any variation.

• ✓Deposits must be made by deposit slips with monies used only for their deposited purpose
• ✓Records kept per GAAP including descriptive receipts, disbursement journal, and client ledger
• ✓Broker must complete a monthly three-way reconciliation and explain any variation

Variations caused by failing to remove interest at least every 12 months, commingling (except up to $5,000 personal funds to keep account open), failing to identify nonowner tenant monies, failing to maintain separate ledgers per property, failing to reconcile, transferring monies between different owners without written consent, failing checks and balances, or failing state/federal requirements are violations.

• ✓Failing to remove earned interest at least once every 12 months is a violation
• ✓Depositing more than $5,000 personal funds is commingling; up to $5,000 to keep account open is not
• ✓Transferring monies between different owners' accounts without written consent is a violation
• ✓Failing to maintain separate ledgers for each property is a violation

Monies may be placed in an out-of-state depository only if all parties agree in writing and either the funds are in a compliant property management trust account with required disclosures or the broker discloses potential risks. A broker may not commingle entrusted monies with the broker's own unless rules allow.

• ✓Out-of-state deposit valid only with written agreement of all parties plus required disclosures or risk disclosure
• ✓Property management trust account must be federally insured with prescribed disclosures and department examination authority
• ✓A broker may not commingle entrusted monies with the broker's own monies unless rules permit

Rule R4-28-1101 sets out licensee duties, including duties of honesty, disclosure of material facts, and dealing fairly with all parties. This is a core professional conduct standard.

• ✓Licensees must deal fairly and honestly with all parties to a transaction
• ✓Licensees must disclose known material facts affecting the property or transaction
• ✓Licensees must not engage in fraud, misrepresentation, or dishonest dealing

Rule R4-28-1102 governs property negotiations, requiring licensees to convey all offers and act in the client's best interest.

• ✓Licensees must promptly present all written offers and counteroffers
• ✓Licensees must not interfere with contractual relationships of others

Rule R4-28-1103 requires broker supervision and control over the activities of associated licensees and the brokerage operations.

• ✓The designated broker must reasonably supervise all associated licensees
• ✓The broker is responsible for compliance, record keeping, and trust account handling
• ✓Failure to supervise is grounds for discipline

Agreements must be in clear language and must: state all material terms; be signed by the owner/agent and the designated broker or authorized licensee; specify beginning and ending dates; contain agreeable cancellation provisions; provide for disposition of all collected monies (including tenant deposits); specify status report type/frequency; state operating reserve amount/purpose; provide for interest disposition on trust monies; state compensation terms; and not be assigned without the owner's express written consent.

• ✓Must be signed by owner/agent and designated broker or authorized licensee
• ✓Must specify a beginning and an ending date
• ✓Must provide for disposition of all monies including tenant deposits
• ✓Cannot be assigned to another licensee without owner's express written consent

On termination, the firm must immediately provide the owner with all rental agreements and related documents, plans, keys, warranties, etc. Final accounting deadlines: list of tenant security obligations within 5 days; reimbursement of remaining monies within 35 days; final accounts receivable/payable list and final bank reconciliation within 75 days.

• ✓Tenant security obligations list due within 5 days of termination
• ✓Reimbursement of remaining monies due within 35 days
• ✓Final receivable/payable list and bank reconciliation due within 75 days

Agreements may include an automatic renewal provision if the firm sends a reminder notice at least 30 days before renewal; reasonable liquidated damages/cancellation fees; authorization of trust account signatories; dual signatures; and other agreed provisions not conflicting with the chapter.

• ✓Automatic renewal allowed only if reminder notice sent at least 30 days before renewal
• ✓May provide for reasonable liquidated damages or cancellation fees

It is unlawful to offer or sell a membership camping contract within or from Arizona unless a final membership camping public report has been issued by the commissioner. Sales before issuance are voidable.

• ✓A final membership camping public report is required before offering or selling a contract
• ✓Any sale before issuance of the final public report is voidable by the purchaser

An application for a membership camping public report must contain extensive documents and information about the operator, its ownership, financials, contracts, camping properties, water/sewer/utility provisions, indebtedness, taxes, purchaser rights, and forfeiture grounds. It must be signed by an authorized person and amended on material changes.

• ✓Application must include operator identity, officers/directors, 10%+ owners, advertisements, contract forms, audited financials, and title reports
• ✓Must disclose indebtedness/liens, taxes/assessments, improvement assurances, purchaser use rights, transfer restraints, and grounds for forfeiture
• ✓The application must be amended when a material change to previously filed information occurs
• ✓Must be signed by the operator, an officer/general partner, or a power-of-attorney holder (with the POA attached)