Article 3.1 - Fingerprinting Division (41-1758.03) +6Arizona · Real Estate · English

Upon receiving a person's state and federal criminal history record, the division compares it against the list of precluding offenses. If the record contains none of the offenses listed in subsections B and C, the division must issue a fingerprint clearance card. The card is required for many real estate and other regulated employment contexts.

• ✓Division must issue a clearance card if the record contains no offenses listed in subsections B and C
• ✓Comparison is made against both state and federal criminal history records

A person subject to sex offender registration, or awaiting trial/convicted of committing/attempting/soliciting/facilitating/conspiring to commit certain serious offenses is absolutely precluded from receiving a fingerprint clearance card with no good cause exception available. These include first/second degree murder, sexual assault, sexual conduct with a minor, molestation of a child, sexual exploitation of a minor, child sex trafficking, dangerous crimes against children, and human trafficking.

• ✓Subsection B offenses (e.g., murder, sexual assault, child molestation) permit NO good cause exception
• ✓Sex offender registrants are automatically precluded from receiving a clearance card

A person awaiting trial or convicted of offenses listed in subsection C is precluded from receiving a clearance card, but MAY petition the Board of Fingerprinting for a good cause exception under section 41-619.55. These offenses include manslaughter, assault, theft, forgery, drug offenses, burglary, robbery, domestic violence, identity theft, arson, and welfare fraud.

• ✓Subsection C offenses allow the applicant to petition for a good cause exception under 41-619.55
• ✓Includes theft, forgery, drug offenses, robbery, DV, identity theft, and arson

A person awaiting trial or convicted of a misdemeanor or felony DUI violation (sections 28-1381, 28-1382, or 28-1383) within five years of applying is precluded from driving vehicles to transport employees or clients as part of employment, and the division notes this restriction on the card. It does not prevent driving alone as part of employment.

• ✓A DUI within 5 years results in a driving restriction notation barring transport of employees/clients
• ✓The restriction does not preclude driving a vehicle alone as part of employment

Upon written notice from the Board of Fingerprinting that a good cause exception was granted under 41-619.55, the division must issue the card notwithstanding subsection C. A person is also granted a card if an agency granted a good cause exception before August 16, 1999 (with no new precluding offense) or if the board granted one and no new precluding offense is identified.

• ✓Division must issue a card upon written notice of a granted good cause exception
• ✓Pre-August 16, 1999 agency exceptions remain valid if no new precluding offense is identified

The licensee or contract provider assumes the cost of fingerprint checks and may charge them to those fingerprinted. Persons under 18 or at least 99 years old are exempt but must be under direct visual supervision of valid cardholders. Issuance of a card does not entitle a person to employment.

• ✓Persons under 18 or at least 99 years old are exempt from clearance card requirements
• ✓Issuance of a fingerprint clearance card does NOT entitle a person to employment

The division may run records checks through state and federal rap back services to update clearance status and notify employing/licensing agencies. If the division suspends a card and the person requests a good cause exception, the division releases the record to the Board. The division must revoke a card upon written request from the Board of Fingerprinting.

• ✓Division must revoke a card upon written request from the Board of Fingerprinting under 41-619.55
• ✓Rap back services allow updating clearance status of current cardholders

If a record contains a subsection B or C offense but no final disposition, the division must research to obtain the disposition within 30 business days. If it cannot determine the disposition within 30 business days, it must not issue the card, and the person may request a good cause exception. Denial notices include the criminal history information and are subject to dissemination restrictions under 41-1750 and Public Law 92-544.

• ✓Division must research missing dispositions within 30 business days of receiving the record
• ✓If disposition cannot be determined within 30 business days, no card is issued but a good cause exception may be requested

The division is not liable for damages from issuing a card to someone later found ineligible, or denying a card to someone later found eligible. Notwithstanding any contrary law, a person may apply for and receive a level I fingerprint clearance card under 41-1758.07 to satisfy a valid clearance card requirement.

• ✓The division is immune from damages for erroneous issuance or denial of a clearance card
• ✓A level I fingerprint clearance card may satisfy a requirement for a valid clearance card

Section 32-2101 defines key terms used throughout Title 32 Chapter 20, including broker, salesperson, subdivision, subdivided lands, unsubdivided lands, real estate, and other regulated terms. This section was amended in 2024 (SB1171 and HB2129) including revisions to the definition of 'improved lot or parcel.'

• ✓Definitions in 32-2101 control the interpretation of all licensing and regulatory statutes in the chapter
• ✓HB2129 (Ch. 63, 2024) amended the definition of 'improved lot or parcel'
• ✓SB1171 (Ch. 52, 2024) amended definitions related to real estate department licensing and administration

Section 32-2108.01 requires license applicants to obtain fingerprint clearance cards as part of the background check process. This was amended by SB1171 in 2024.

• ✓License applicants must obtain a valid fingerprint clearance card
• ✓Fingerprint clearance cards are issued per 41-1758.03 and reviewed by the Board of Fingerprinting
• ✓Good cause exceptions may be available under 41-619.55

Section 32-2102 establishes that the real estate department administers the chapter for the protection of the public. The department is headed by the Real Estate Commissioner and oversees licensing, regulation, and enforcement.

• ✓The department administers Title 32 Chapter 20 to protect the public interest
• ✓Fees collected are placed and revised as provided under 32-2103

Section 32-2106 covers the commissioner's appointment and qualifications, while 32-2107 sets out the commissioner's powers and duties, compensation, administration of the department, use of the department seal, and the revolving fund.

• ✓The commissioner is appointed and must meet statutory qualifications (32-2106)
• ✓The commissioner has broad powers to administer the department and enforce the chapter (32-2107)
• ✓The commissioner may make investigations and require information under 32-2108

Sections 32-2113 through 32-2116 require recorded disclosures for territory near military airports, ancillary military facilities, land under military training routes, restricted air space, and military electronics ranges. The department maintains maps on its website.

• ✓Recorded disclosure required for property in the vicinity of a military airport (32-2113)
• ✓Recorded disclosure required for land under a military training route or restricted air space (32-2114)
• ✓The department must post military training route and restricted air space maps on its website (32-2115)

Section 32-2104 establishes the real estate advisory board, setting out members, terms, qualifications, compensation, chairman selection, and duties. SB1171 (2024) amended this section and retained current advisory board members.

• ✓The advisory board advises the commissioner on department matters
• ✓Members serve defined terms with specified qualifications
• ✓Board meetings are governed by 32-2105

Section 32-2107.01 addresses the recorded disclaimer of unlawful restrictions, allowing property owners to disclaim discriminatory or otherwise unlawful deed restrictions.

• ✓Unlawful restrictive covenants may be disclaimed through a recorded document
• ✓This connects to the Unlawful Restrictive Covenants Uniform Act (33-531 et seq.)

Section 32-2110 prohibits department officers or employees from having an interest in a real estate company, preventing conflicts of interest in the regulatory function.

• ✓Department officers and employees may not hold an interest in a real estate company
• ✓This ensures impartial regulation and enforcement

Section 32-2117 requires the posting of earth fissure maps with immunity provisions, and 32-2119 addresses consumer education including water supply definitions and maps.

• ✓Earth fissure maps must be posted and provide immunity to the state for posting them (32-2117)
• ✓Consumer education materials include water supply information and maps (32-2119)

Section 32-2118 prohibits the department from competing with private enterprise in providing real estate services.

• ✓The department may not compete with private enterprise
• ✓This limits governmental encroachment on commercial real estate activities

A 'broker' (used without modification) is a person licensed or required to be licensed as a broker. An 'associate broker' is a licensed broker employed by another broker who, unless otherwise specified, has the same license privileges as a salesperson.

• ✓A broker is any person licensed or required to be licensed as a broker under the chapter
• ✓An associate broker is a licensed broker employed by another broker with salesperson-level privileges unless otherwise provided

A designated broker is a natural person licensed as a broker who is either designated to act on behalf of an employing real estate, cemetery, or membership camping entity, or is doing business as a sole proprietor.

• ✓A designated broker must be a natural person licensed as a broker
• ✓The designated broker acts on behalf of an employing entity or operates as a sole proprietor

A real estate broker is a person (other than a salesperson) who, for another and for compensation, performs acts such as selling, exchanging, purchasing, renting, leasing, negotiating, listing, auctioning, dealing in options, collecting rent, advertising, procuring prospects, negotiating loans incident to sales, and acting as a business broker.

• ✓A real estate broker acts for another AND for compensation
• ✓Non-licensees who collect in-person rent as clerical duty (with a receipt) are exempt from the collection provision
• ✓Loan negotiation incident to a sale is included but does not apply to mortgage brokers under title 6

A real estate salesperson is a natural person who acts on their own behalf or through a professional LLC/corporation engaged by or on behalf of a licensed real estate broker (or an entity licensed as a broker) to perform any act in the definition of a real estate broker, subject to section 32-2155.

• ✓A salesperson must be a natural person engaged by or on behalf of a licensed real estate broker
• ✓A salesperson's activities are subject to section 32-2155

An 'address of record' is where the department will contact a licensee. It may be the address where a licensee practices/is employed, the licensee's residential address, or the address of a licensee's statutory agent registered with the corporation commission (only if notice is given to the department per 32-2126).

• ✓Address of record can be the place of practice/employment or residential address
• ✓A statutory agent address counts only if the statutory agent is registered with the corporation commission and notice is given to the department per 32-2126

Advertising means attempting by publication, dissemination, exhibition, solicitation or circulation (oral, written, radio, or TV) to induce a person to enter an obligation or acquire an interest in lands subject to the chapter. It excludes certain press releases and specified communications to stockholders.

• ✓Advertising includes any oral or written attempt to induce a person to acquire an interest in regulated land
• ✓Press releases delivered to news media for general information (with no charge) are NOT advertising
• ✓Communications to stockholders (annual reports, proxy materials, prospectuses, property reports, etc.) are NOT advertising

Compensation means any fee, commission, salary, monies or other valuable consideration for services rendered or to be rendered, including the promise of consideration whether contingent or not.

• ✓Compensation includes fees, commissions, salaries, monies, or other valuable consideration
• ✓A promise of consideration, whether contingent or not, counts as compensation

A real estate sales contract is an agreement in which one party agrees to convey title to real estate to another party upon satisfaction of specified conditions set forth in the contract.

• ✓A real estate sales contract obligates one party to convey title
• ✓Conveyance occurs upon satisfaction of specified contract conditions

A subdivider offers for sale/lease six or more lots, parcels, or fractional interests, or causes land to be subdivided or develops a subdivision. 'Subdivision/subdivided lands' means land divided for sale/lease into six or more lots and includes stock cooperatives, common promotional plan land, and residential condominiums.

• ✓A subdivision involves six or more lots, parcels, or fractional interests divided for sale or lease
• ✓Subdivision excludes leaseholds of one year or less and parcels of 36 acres or more
• ✓Public agencies/officers authorized to create subdivisions are not subdividers

A 'license' is the whole or part of any permit, certificate, approval, registration, public report, charter, or similar permission required. A 'licensee' holds a current license (including original applicants for 32-2153(A)). A 'license period' is the two-year period from issue/renewal to expiration.

• ✓A license period is a two-year period from original issue or renewal until the expiration date
• ✓A licensee holds a current-period license and includes original applicants for purposes of 32-2153(A)

A business broker is a real estate broker who acts as intermediary or agent between sellers and/or buyers in the sale/purchase of businesses or business opportunities where a lease or sale of real property is a direct or incidental part of the transaction.

• ✓A business broker must be a licensed real estate broker
• ✓The transaction must involve real property lease/sale as a direct or incidental component

'Real estate' includes leasehold interests and estates in land regardless of whether located in Arizona. 'Sale' or 'lease' includes every disposition, transfer, option, or offer to dispose of real property, including offering property as a prize or gift if a monetary charge or consideration is required.

• ✓Real estate includes leasehold interests and estates in land whether or not located in Arizona
• ✓Offering property as a prize or gift is a sale/lease if any monetary charge or consideration is required

Distance learning is online, self-paced continuing/prelicensure education not requiring real-time interaction. A live classroom course is delivered in-person or via synchronous remote livestreaming allowing students to observe and participate remotely.

• ✓Distance learning does not require real-time interaction between student and instructor and is self-paced
• ✓A live classroom course requires in-person or synchronous livestreamed remote participation

The debtor must file a written response with the department within 35 calendar days after service or first publication. Failure to respond waives the right to present objections and forfeits entitlement to notice of future actions on the claim.

• ✓Written response due within 35 calendar days after service or first publication
• ✓Failure to respond waives right to present objections
• ✓Non-responding debtor loses entitlement to notice of future commissioner actions

An aggrieved party applying for payment must serve notice of the claim on the judgment debtor, with a copy of the application, within the time prescribed by section 32-2188 subsection C. The notice must follow the statutory form advising of automatic license termination and the right to contest.

• ✓Notice must be served within the same time as applying for payment
• ✓A copy of the application must accompany the notice
• ✓Notice must use the prescribed statutory form

If the debtor holds a current license, notice may be served by certified mail, return receipt requested, to the latest business or residence address on file. If the debtor has no current license and personal delivery fails after reasonable diligence, the claimant must publish notice once a week for two consecutive weeks in a newspaper of general circulation.

• ✓Licensed debtor: certified mail, return receipt requested, to address on file
• ✓Unlicensed debtor with failed personal service: publish once weekly for two consecutive weeks
• ✓Publication is in a newspaper of general circulation in the county last known to reside

A person may not sell, lease, or offer timeshare interests without first obtaining a public report or pre-sale authorization. Unless exempt, a sale/lease of a plan with twelve or more interests made before issuance, or failure to deliver the report/pre-sale evidence, renders the transaction rescindable by the purchaser or lessee.

• ✓No sale/lease/offer without a public report or pre-sale authorization
• ✓Sale/lease of 12+ interest plans before issuance is rescindable by the purchaser/lessee
• ✓Rescission action must be brought within three years of execution of the agreement
• ✓The prevailing party in a rescission action is entitled to reasonable attorney fees

A designated broker may authorize in writing an associate broker or salesperson to act as branch office manager. The broker must maintain letters of authority per R4-28-303(E)(7) specifying which duties are delegated. Any associate broker or salesperson with delegated duties becomes responsible, in addition to the designated broker, for supervising licensees in the branch for those duties. The designation does NOT relieve the designated broker of responsibilities. Upon a change of branch manager, the designated broker must submit new authorization within 10 days and retain a copy in the main office for five years beyond the branch closure or removal of authority, whichever occurs earliest.

• ✓Delegation to a branch manager does not relieve the designated broker of responsibility
• ✓New authorization must be submitted within 10 days of a branch manager change
• ✓Records retained in main office for 5 years beyond branch closure or authority removal, whichever is earliest

To obtain a branch office license, the designated broker must submit the Application for Branch Office form BEFORE operating the branch, including: name/date/signature of the designated broker, employing broker's license number, the main office's name/address of record/telephone/email/license number, employing broker's dba name if applicable, the branch office's address of record/telephone/email, and the name/license number of the branch office manager plus authority granted.

• ✓Branch office application must be submitted before operating the branch
• ✓Application must identify the branch office manager and the authority granted to them

An associate broker branch manager may review/initial contracts, supervise salespersons and associate brokers, hire or sever a salesperson/associate broker, sign compensation checks, be a signer on branch office and property management trust accounts, write checks from trust accounts, and be responsible for handling all trust funds. A salesperson branch manager may only perform office management tasks that are not statutory duties of the designated/employing broker, and be a signer on the broker's trust account and property management trust account.

• ✓Only associate broker managers may hire/sever staff, sign compensation checks, and write trust account checks
• ✓Salesperson managers may only perform non-statutory office management tasks and be signers on trust accounts
• ✓Salespersons cannot perform statutory duties of the designated or employing broker

An additional license is not required for a temporary office established for the original on-site sale of properties within the immediate area of a subdivision or unsubdivided land. The broker named in the public report application supervises the temporary office, and must display the subdivision/land name and the licensed name of the employing broker prominently at the entrance.

• ✓No additional license needed for a temporary on-site sales office in a subdivision
• ✓Broker must prominently display the subdivision name and employing broker's licensed name at the entrance

Before operating, the designated broker must submit a branch office application with the DB's name/signature, employing broker license number, main office information, dba name, branch office address, and the branch office manager's name/license number and authority. Records of authority must be retained for five years beyond branch closure or authority removal.

• ✓A branch office application must be submitted before operating the branch office
• ✓Upon change of branch manager, submit a new authorization within 10 days and retain a copy five years

A DB may authorize an associate broker or salesperson as branch manager. An associate broker manager may review contracts, supervise, hire/sever licensees, sign compensation checks, and handle trust accounts. A salesperson manager may only perform non-statutory management tasks and be a signer on trust accounts. Delegation does not relieve the DB of responsibility.

• ✓An associate broker branch manager may write checks and handle trust account funds; a salesperson manager cannot perform statutory broker duties
• ✓Delegation of duties does not relieve the designated broker from responsibility

No additional license is required for a temporary office for the original on-site sale of properties within the immediate area of a subdivision or unsubdivided land. The named public report broker supervises, and the development and employing broker names must be prominently displayed at the entrance.

• ✓No additional license is required for a temporary on-site sales office for a subdivision or unsubdivided land
• ✓The subdivision name and employing broker name must be prominently displayed at the entrance

The administrative law judge must issue a written decision within twenty days after the hearing concludes, containing a concise explanation of the reasons including findings of fact and conclusions of law, and serve copies on all parties.

• ✓ALJ must issue written decision within 20 days after the hearing concludes
• ✓Decision must contain concise reasons, findings of fact and conclusions of law
• ✓ALJ must serve a copy of the decision on all parties

Within thirty days after the office sends the ALJ's decision, the agency head/board/commission may review and accept, reject or modify it. Rejection or modification requires filing and serving written justification for each finding or conclusion changed.

• ✓Agency head has 30 days to review and accept, reject or modify the ALJ decision
• ✓Rejection/modification requires written justification for each finding or conclusion
• ✓Rejection or modification of a conclusion of law must be sent to Senate president and House speaker

If the agency head does not act within thirty days (or by the board's next meeting if it meets monthly or less), the office certifies the ALJ's decision as the final administrative decision. A decision is sent on personal delivery or five days after mailing.

• ✓Failure to act within 30 days results in certification of the ALJ decision as final
• ✓For boards meeting monthly or less, decision must be sent at least 30 days before next meeting
• ✓A decision is deemed sent on personal delivery or 5 days after mailing

A party may appeal a final administrative decision under title 12, chapter 7, article 6. If no hearing was requested after notice, the action is not subject to judicial review. The license is not stayed during appeal unless the superior court orders a stay to prevent imminent and substantial endangerment.

• ✓A party may appeal a final administrative decision under title 12, chapter 7, article 6
• ✓Failing to request a hearing after notice bars judicial review
• ✓License is not stayed during appeal unless superior court orders a stay
• ✓Stay requires showing imminent and substantial endangerment to health or environment

For most licensing decisions, a licensee may accept the ALJ's written decision within ten days of receipt, making it final. Exceptions include administrative completeness decisions and cases where the licensee poses grave harm. If not accepted and the agency intends to reject/modify, parties must meet and confer.

• ✓Licensee may accept the ALJ written decision within 10 days of receipt
• ✓Acceptance causes the office to certify the decision as final
• ✓Exceptions apply for grave harm/danger or administrative completeness decisions
• ✓Parties must meet and confer within 30 days if the agency intends to reject or modify