Title 32, Chapter 43 - 32-4303 & 32-4304. Military Experience and Website Requirements +6Arizona · Real Estate · English

Regulating entities must accept substantially equivalent military education, training, or experience to satisfy licensing requirements, working with the Department of Veterans' Services.

• ✓Education/training/experience requirements are completely or partially satisfied by substantially equivalent military education, training, or experience as determined by the regulating entity
• ✓The regulating entity must work with the Department of Veterans' Services to access the applicant's military education/training/experience information

Regulating entities must post current licensing-burden-easing policies and dedicated military/veteran licensing information prominently on their websites and track applicant veteran/spouse status.

• ✓Entities must post policies easing licensing burdens (universal recognition, temporary licenses, fee waivers, exam exemptions, military credit) with exact steps on the homepage
• ✓Entities must have a designated homepage area with licensing info for military spouses, active duty members, and veterans
• ✓Beginning July 1, 2022, entities must track whether each applicant is a veteran or military spouse and report annually to the governor

A person who knowingly authorizes or distributes false statements or representations about land, a subdivision, or a membership camping contract for sale/lease, or who knowingly violates a commissioner order, is guilty of a class 6 felony, and a licensee is tried before the commissioner for suspension/revocation.

• ✓Knowingly making false statements about land for sale/lease is a class 6 felony
• ✓Knowingly includes knew or should have known of the falsity

Selling cemetery property under a promise of resale profit is unlawful and voids the conveyance. A licensed broker may cooperate with an out-of-state broker only under a written cooperation agreement with in-state negotiations, in-state broker responsibility, and section 32-2151 fund handling; out-of-state brokers may not list, market, advertise, or place signs on in-state property.

• ✓Selling cemetery property with a promise of resale profit is unlawful and voids the conveyance
• ✓Cooperation with an out-of-state broker requires a written cooperation agreement before activity
• ✓Out-of-state brokers may not list, market, advertise, or place signs on in-state property

Acting as a broker/salesperson without a license is a class 6 felony; performing other license-required acts without a license is a class 5 felony. Certain penalties do not apply to timely renewal neglect or to persons who notify the department and cease activity. A licensee performing license-required acts while incarcerated is guilty of a class 6 felony.

• ✓Unlicensed broker/salesperson activity is a class 6 felony
• ✓Performing license-required acts while incarcerated is a class 6 felony

A notice of intent and issuance of a public report are not required for parties to enter into a lot reservation. Before a public report is issued, a deposit may be accepted as a lot reservation if all statutory requirements are met.

• ✓Notice of intent and public report not required to enter a lot reservation
• ✓A deposit may be accepted as a lot reservation before public report issuance if requirements are met

The Board of Fingerprinting determines good cause exceptions via expedited review or hearing, considering rehabilitation and criminal history factors before requesting a clearance card.

• ✓The board must conduct an expedited review within twenty days of receiving a good cause exception application
• ✓If the applicant does not qualify on expedited review but is eligible, the board must hold a hearing within forty-five days
• ✓The board must consider criteria including extent/nature of criminal record, time elapsed, mitigating circumstances, degree of participation, and rehabilitation evidence
• ✓If a good cause exception is granted, the board requests DPS issue a fingerprint clearance card; the board may request revocation upon subsequent conviction

Agreements must be in clear language and state material terms, be signed by owner and designated broker (or authorized licensee), specify beginning/ending dates, contain cancellation provisions, provide for disposition of all monies including tenant deposits, specify status reports, state operating reserves, allocate interest, state compensation, and not be assigned without written owner consent.

• ✓Agreement must specify a beginning and ending date and be signed by owner and designated broker/authorized licensee
• ✓Agreement may not be assigned to another licensee/entity without express written owner consent
• ✓Automatic renewal requires a reminder notice at least 30 days before the renewal date

On termination, the firm must provide the owner with rental agreements and related documents, building plans, keys, and other property. Final accounting requires a list of tenant security obligations within 5 days, reimbursement of remaining monies within 35 days, and final accounts receivable/payable and bank reconciliation within 75 days.

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

All property management accounts are designated as trust accounts on the broker's records. A trust account is required for all owner monies unless the owner directs deposit into the owner's own account (which the broker cannot access). The designated broker may authorize a licensed or unlicensed employee to sign, but must deposit non-disputed monies within three banking days.

• ✓All property management accounts must be designated as trust accounts
• ✓Monies not subject to dispute must be deposited within three banking days
• ✓Designation of a signatory does not lessen the broker's responsibility for monies handled

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

• ✓Property management firm requires a written agreement and compensation
• ✓This article supersedes all other laws and rules relating to property management

Firms must keep residential rental agreements and related documents for one year after expiration or until given to the owner, finder fee records for three years, and all client financial records for at least three years. Only the designated broker or authorized licensee may sign nonresidential rental agreements; residential leases need not be reviewed/initialed.

• ✓Residential rental agreements kept one year after expiration or until given to owner
• ✓Client financial records kept at least three years
• ✓Only the designated broker or authorized licensee may sign nonresidential rental agreements

A property management firm or property owner may pay a finder fee to an unlicensed tenant, applied as a rent credit/reduction, and tenants may receive multiple fees. A residential leasing agent/manager may deliver but not receive a finder fee. Tenants may only refer prospects and may not show units, discuss terms, or negotiate.

• ✓Finder fees to unlicensed tenants must be a credit toward or reduction in monthly rent
• ✓A tenant receiving a finder fee may not show units, discuss terms, or negotiate leasing
• ✓A residential leasing agent or manager may not receive a finder fee

This section defines core terms for Arizona's Administrative Procedure Act, including agency, contested case, license, and licensing, which govern how agencies like the Department of Real Estate operate.

• ✓'Agency' means any board, commission, department, officer, or administrative unit of the state, excluding the legislature, courts, and governor
• ✓'Contested case' means any proceeding (including rate making, except constitutional rate making, price fixing, and licensing) where legal rights are determined after opportunity for a hearing
• ✓'License' includes any agency permit, certificate, approval, registration, or charter required by law, excluding revenue-only licenses
• ✓'Licensing' includes the grant, denial, renewal, revocation, suspension, and amendment of a license

Before offering subdivided lands for sale or lease, the subdivider must notify the commissioner in writing, providing owner/subdivider identity, legal description, title condition, sales terms, recorded map, access and utility provisions, school locations, use limitations, water adequacy, and required disclosures. A 'principal' is a person/entity with a 10% or more financial interest.

• ✓Subdivider must notify the commissioner in writing before offering subdivided lands
• ✓'Principal' means a person or entity with a 10% or more financial or beneficial interest
• ✓Disclosures are generally not required for items over one mile from subdivision boundaries

In active management areas the subdivider must provide a certificate of assured water supply (or qualifying commitment/exemption). Outside active management areas, an adequate water supply report may be required, and if inadequate or approved under exemption, all promotional materials and contracts must display the water resources report or approved summary.

• ✓Active management area subdivisions require a certificate of assured water supply or qualifying alternative
• ✓Inadequate water supply requires promotional materials and contracts to display the water report

Creating six or more lots, parcels, or fractional interests of any size is subject to the article, except for 36-acre-or-more partitions, foreclosure results, court orders, securities-regulated interests, special commissioner exemptions, and sales 10+ years apart. Bulk sales of six or more to one buyer and lots of 160 acres or more are exempt.

• ✓Six or more lots/parcels/fractional interests of any size is generally subject to the article
• ✓Bulk sale of six or more to one buyer in one transaction is exempt
• ✓Sale or lease of lots of 160 acres or more is exempt

It is unlawful to avoid the subdivision article by acting in concert to divide land or sell lots through a series of owners, conveyances, or other methods resulting in a subdivision. Proof requires that the licensee knew or should have known the property was subject to the article; a familial relationship alone is insufficient.

• ✓Acting in concert to circumvent subdivision law is unlawful
• ✓A familial relationship alone is not sufficient to constitute unlawful acting in concert

A notice of intent and public report are not required to enter into a lot reservation. Before issuance of a public report, a deposit may be accepted as a lot reservation if statutory requirements are met.

• ✓Notice of intent and public report are not required for a lot reservation
• ✓A deposit may be accepted as a lot reservation before public report issuance if requirements are met