Article 3.1 - Fingerprinting Division; §41-1758.03 Fingerprint Clearance Cards +8Arizona · Real Estate · English

On receiving a person's state and federal criminal history record, the division compares it against the precluding offense lists in subsections B and C. If the record contains none of the listed offenses, the division must issue a fingerprint clearance card. Real estate licensees fall under this system through their licensing agency.

• ✓The division compares criminal history against precluding offenses in subsections B and C
• ✓If no precluding offense exists, the division shall issue the fingerprint clearance card

Persons subject to sex offender registration or awaiting trial/convicted of serious offenses (murder, sexual assault, child abuse, sexual conduct with a minor, molestation, dangerous crimes against children, sex/child trafficking, kidnapping-related sex crimes, etc.) are absolutely precluded from receiving a fingerprint clearance card. These offenses do NOT allow a good cause exception.

• ✓Subsection B offenses (murder, sexual assault, child abuse, molestation, trafficking, etc.) are absolute bars
• ✓Persons required to register as sex offenders in any jurisdiction are precluded from a clearance card

Persons awaiting trial or convicted of a broad list of offenses (manslaughter, assault, theft, forgery, credit card fraud, drug offenses, burglary, trespass, robbery, arson, identity theft, domestic violence, etc.) are precluded from a clearance card BUT may petition the Board of Fingerprinting for a good cause exception under §41-619.55.

• ✓Subsection C offenses (theft, forgery, drug, fraud, assault, etc.) allow a good cause exception petition
• ✓Good cause exceptions are petitioned to the Board of Fingerprinting pursuant to section 41-619.55

A person awaiting trial or convicted of a misdemeanor/felony DUI (§28-1381, 28-1382, 28-1383) within five years of applying is precluded from driving to transport employees/clients as part of employment; the division notes this restriction on the card. It does not preclude driving alone. It does not apply to persons licensed under title 32, chapter 20 (real estate) unless employed by an agency defined in §41-1758.

• ✓A DUI within five years triggers a driving-restriction notation limiting transport of employees/clients
• ✓The DUI restriction generally does not apply to persons licensed under title 32, chapter 20

When a card is denied under subsection C and a good cause exception is requested, the division must release the criminal history record to the Board of Fingerprinting on request. On written notice the Board granted a good cause exception, the division shall issue the card. Cards are granted where prior good cause exceptions were granted (pre-Aug 16, 1999 by agency, or by the Board) if no new precluding offense is found.

• ✓The division must issue a card on written notice from the Board that a good cause exception was granted
• ✓A prior good cause exception (agency pre-8/16/1999 or Board) with no new precluding offense requires card issuance

The licensee or contract provider assumes fingerprint check costs and may charge them to persons required to be fingerprinted. Persons under 18 or at least 99 years old are exempt but must be under direct visual supervision of a valid card holder. The division may run rap back checks to update clearance status and notify employing/licensing agencies.

• ✓Persons under 18 or at least 99 years old are exempt but require direct visual supervision by a card holder
• ✓The licensee/contract provider bears fingerprint check costs and may pass them to the fingerprinted person

The division shall revoke a card upon written request from the Board of Fingerprinting under §41-619.55. If a record shows a subsection B/C offense with no recorded disposition, the division researches the disposition within 30 business days; if it cannot determine status, it shall not issue the card, and the applicant may request a good cause exception.

• ✓The division must revoke a card on written request from the Board of Fingerprinting
• ✓If disposition is unknown after 30 business days research, the card shall not be issued

If not authorized to issue a card, the division notifies the licensing/employing agency (with the criminal history basis), except for §15-1881 requests where only the person is notified. Criminal history info is subject to dissemination restrictions under §41-1750 and Public Law 92-544. The division is not liable for erroneous issuance or denial, and a card does not entitle a person to employment.

• ✓The division is not liable for damages from erroneous issuance or denial of a card
• ✓Issuance of a fingerprint clearance card does not entitle a person to employment

Notwithstanding any contrary law, a person may apply for and receive a level I fingerprint clearance card under §41-1758.07 to satisfy a requirement for a valid fingerprint clearance card under this section.

• ✓A level I clearance card under section 41-1758.07 may satisfy the general card requirement
• ✓This option applies notwithstanding any law to the contrary

The commissioner shall examine any subdivision offered for sale or lease and make findings public. Travel and subsistence costs plus the initial filing fee are borne by the subdivider. A filing fee of $500 (or lesser as determined) must accompany the notification. The developer may outsource physical inspections with department approval.

• ✓Filing fee of $500 or lesser amount accompanies the notification
• ✓Subdivider bears actual cost of travel and subsistence for examination
• ✓Developer may outsource physical inspections if department approves inspector and content

The commissioner may skip site inspection if the site was inspected within the past two years, all improvements were complete, and no physical changes exist. The commissioner need not complete inspection before issuing a public report but may issue summary orders later. The commissioner has no more than five years after complaint/investigation to determine a violation.

• ✓Inspection may be waived if inspected within 2 years with no physical changes
• ✓Public report may issue before inspection is completed
• ✓Commissioner has max 5 years after complaint/investigation to determine a violation

The commissioner must examine subdivisions offered for sale/lease, make findings public, and charge fees to the subdivider including travel/subsistence and a filing fee.

• ✓Commissioner shall examine any subdivision offered for sale or lease and make findings public
• ✓Subdivider bears actual cost of department travel and subsistence expenses plus a filing fee of $500 (or lesser fee set by commissioner)
• ✓Commissioner may allow the developer to outsource and pay for physical inspections if the department approves the inspector and inspection content

The commissioner may skip a site inspection under certain conditions and need not complete inspection before issuing a public report, but retains authority to act on later findings.

• ✓Inspection may be waived if all apply: previously inspected within past two years, all improvements complete at that time, and no physical changes to the subdivision
• ✓Commissioner is not required to complete inspection before issuing a public report
• ✓If a later inspection reveals grounds for denial or additional disclosure, commissioner may issue a summary order under 32-2157

There is a statutory deadline for the commissioner to determine whether a sale or lease violated the article.

• ✓Commissioner has no more than five years after the date of an initial complaint or initiation of an investigation to determine if the sale or lease violated the article

The commissioner may exempt certain unsubdivided land from any or all provisions of the article by special order upon written petition showing compliance is not essential to public interest due to special characteristics or limited offering.

• ✓Exemption is granted at the commissioner's discretion upon written petition
• ✓The special order must relate to specific land
• ✓A petition must be accompanied by a $100 initial fee that is nonrefundable regardless of outcome

The commissioner examines unsubdivided land offered for sale/lease and makes findings public. Travel and subsistence examination costs plus filing fees are borne by the owner/agent/subdivider.

• ✓An initial filing fee of $500 must accompany the written notification required in sections 32-2195 and 32-2195.10
• ✓Total travel and subsistence examination costs are borne by the owner, agent, or subdivider based on actual cost
• ✓The commissioner must make examination findings public

The commissioner may deny, suspend, or revoke a membership camping public report to protect purchasers when the operator engages in deceptive advertising, fails to comply with statute, is not financially responsible, works a fraud, files incomplete or misleading applications, or misrepresents planned developments.

• ✓Deceptive, false, or misleading advertising under section 44-1522 is grounds for action
• ✓Financial irresponsibility, insufficient capital, or fraud on purchasers are grounds for denial/revocation
• ✓Convictions for fraud, dishonesty, moral turpitude, or real estate transactions by owners/10% stockholders are grounds

An applicant objecting to denial of a public report may request a hearing within 30 days. The commissioner must hold the hearing within 20 days unless postponed. If not held timely or no decision within 45 days of submission, the denial is rescinded and the report issued.

• ✓Written hearing request must be filed within 30 days after receipt of the denial order
• ✓Hearing must be held within 20 days unless postponed by the requesting party
• ✓Failure to hold hearing timely or render decision within 45 days results in rescission and issuance of report

The commissioner may investigate, issue summary orders, hold hearings, or bring court action to enjoin unlawful practices. Courts may appoint receivers and restore money or property. If assets are being concealed or the person is leaving the state, the commissioner may apply ex parte for a receiver or writ of ne exeat.

• ✓Commissioner may seek court appointment of a receiver or writ of ne exeat when assets are being concealed
• ✓A person served with a receiver order may request a hearing within 10 days, held within 20 days

The commissioner may deny, suspend or revoke a public report to protect purchasers when the operator uses deceptive practices, fails to comply with the article, is financially irresponsible, commits fraud, files incomplete applications, misrepresents planned developments, or withdraws campgrounds without adequate substitutes.

• ✓Deceptive, false, or misleading advertising/sales techniques are grounds (under 44-1522)
• ✓Financial irresponsibility or insufficient capital is a ground
• ✓Fraud on purchasers is a ground for action
• ✓Misrepresenting planned improvements without reasonable grounds is prohibited

Grounds exist if an owner, operator, agent, officer, director, partner, 10%+ trust beneficiary, or 10%+ stockholder has felony/misdemeanor convictions involving fraud/dishonesty/moral turpitude or real estate transactions, injunctions, adverse regulatory orders, or has violated the chapter.

• ✓Applies to persons holding 10% or more beneficial interest or stock
• ✓Conviction of fraud, dishonesty, moral turpitude, or real estate offenses disqualifies
• ✓Injunctions or administrative orders from regulatory agencies are grounds
• ✓Participating in an entity to which these apply is itself a ground

An applicant objecting to denial may request a hearing within 30 days of receiving the order. The hearing must be held within 20 days unless postponed. If not held timely or a decision is not rendered within 45 days after submission, the denial is rescinded and a public report issued.

• ✓Written hearing request must be filed within 30 days of receipt of denial
• ✓Commissioner must hold hearing within 20 days (plus postponements)
• ✓If decision not rendered within 45 days of submission, denial rescinded and report issued

The commissioner may investigate, issue summary orders, hold hearings, issue orders, or bring court action to enjoin violations. Courts may appoint receivers and restore money or property. Ex parte receivership or writ of ne exeat is available if a person is concealing assets or fleeing the state.

• ✓Commissioner may bring court action to enjoin violations and appoint a receiver
• ✓Ex parte receiver or writ of ne exeat available if assets are concealed or person leaving state
• ✓Person served with ex parte receiver order has right to hearing within 10 days; hearing within 20 days
• ✓Commissioner may require surety bond or financial assurances if operator is not financially responsible

The commissioner examines unsubdivided land offered for sale or lease and makes findings public. Travel and subsistence costs plus filing fees are borne by the owner, agent, or subdivider on actual cost basis.

• ✓An initial filing fee of $500 must accompany the written notification required in sections 32-2195 and 32-2195.10
• ✓Total travel and subsistence costs are borne by the owner/agent/subdivider on actual cost basis

The commissioner may exempt specific unsubdivided land from any or all provisions of the article by special order upon written petition showing compliance is not essential to public interest or buyer protection due to special characteristics or limited offering.

• ✓Exemption requires written petition and a showing satisfactory to the commissioner
• ✓The special order must relate to specific land
• ✓A petition must be accompanied by a nonrefundable initial fee of $100

If a public report contains an error, the Department corrects it at its own expense, but only within a limited time window. Additional or changed information known to the developer before issuance is not considered an error and must go through the amendment process.

• ✓The Department shall not correct a public report after it has been in effect for 10 days
• ✓After 10 days, the developer must change the report through the development amendment process under R4-28-B1203 with payment of the applicable amendment fee
• ✓Information known to the developer before issuance is not an 'error' the Department will correct

The commissioner may issue a consent order on the agreement of both parties to an appealable agency action or a contested case, including terms the parties agree on and that the commissioner believes are appropriate.

• ✓Consent order requires agreement of both parties
• ✓Order includes terms the commissioner deems appropriate in discretion

Before holding a license, each applicant must obtain and provide a valid fingerprint clearance card per 41-1758.03. The department cannot issue a license to an original applicant before receiving it and may suspend a license if the clearance card is suspended under specified conditions.

• ✓Each license applicant must obtain a valid fingerprint clearance card per 41-1758.03
• ✓No license issued to original applicant before receiving valid clearance card
• ✓License may be suspended if clearance card suspended and conviction could deny application
• ✓Licensee must show good cause exception application within five business days of notice

The chapter is administered by the state real estate department under direction of the real estate commissioner. The department's purpose is to protect the public interest through licensure and regulation of the real estate profession in Arizona.

• ✓Department administers the chapter under the commissioner's direction
• ✓Purpose is to protect public interest through licensure and regulation

The commissioner (amended 2024) is appointed by the governor and serves at the governor's pleasure. Candidates need at least five years' experience in real estate/title insurance/banking/mortgage and three years' administrative experience, and cannot be financially interested in or act as broker/salesperson for any real estate firm.

• ✓Commissioner appointed by governor, serves at governor's pleasure
• ✓Requires 5 years' industry experience and 3 years' administrative experience
• ✓Cannot be financially interested in or act as broker/salesperson/agent for any real estate firm

The commissioner administers the department, adopts an official seal, maintains a principal office at the state capitol, may create branch offices, produces educational materials, may hold educational seminars, adopts rules, and may approve standardized legal forms recognizing compliance.

• ✓Commissioner must adopt an official seal for authenticating proceedings
• ✓Commissioner may approve standardized legal forms for compliance recognition
• ✓Commissioner must adopt rules necessary to carry out the chapter
• ✓Education revolving fund excess over $25,000 reverts to state general fund at fiscal year end

The commissioner may investigate on their own motion and MUST investigate on a verified written complaint. The commissioner may examine books/records related to real property transactions, take testimony, copy documents, issue subpoenas, and apply to superior court to compel compliance.

• ✓Commissioner MUST investigate on a verified written complaint
• ✓Commissioner MAY investigate on their own motion
• ✓Commissioner may issue subpoenas and apply to superior court to compel compliance
• ✓A certification and enforcement unit must be established for investigative duties

The commissioner may require additional information about applicants/holders (including officers, directors, 10%+ owners, controlling persons) such as criminal records, valid fingerprint clearance card, and affidavits regarding convictions, disciplinary actions, injunctions, judgments, and bankruptcy.

• ✓10% or more beneficial interest/stock holders and controlling persons are covered
• ✓Applicant must provide a valid fingerprint clearance card per 41-1758.03
• ✓Affidavit must disclose felony/misdemeanor convictions and disciplinary actions

The commissioner must execute and record in each county a document disclaiming validity/enforceability of covenants based on race, religion, color, disability status or national origin. Such invalid covenants recorded in the county are declared void. This does not affect other lawful covenants.

• ✓Commissioner records disclaimer in each county's recorder office
• ✓Covenants based on race, religion, color, disability status or national origin are invalid and void
• ✓Disclaimer does not affect other lawful covenants, conditions or restrictions

The commissioner must record disclosures for property near military airports, under military training routes/restricted air space, and military electronics ranges. The department posts related maps and earth fissure maps online with immunity provisions for disclosing subdividers/owners/licensees.

• ✓Commissioner records disclosures for military airport vicinity, training routes, restricted air space, and electronics ranges
• ✓Department must post military maps and earth fissure maps on its website
• ✓Subdividers/owners/licensees are immune if they disclose earth fissure map/website in writing or public report

Each year the commissioner must revise all fees so revenue equals at least 95% but not more than 110% of the anticipated appropriated budget for the succeeding fiscal year. If revenue exceeds 110%, the commissioner must lower fees proportionally.

• ✓Fee revenue must equal at least 95% but no more than 110% of anticipated budget
• ✓If revenue exceeds 110%, fees must be lowered in proportion to the excess
• ✓Monies collected are deposited in the state general fund unless otherwise prescribed

The advisory board (amended 2024) has ten members appointed by the governor for six-year terms, with three members' terms expiring January 31 each odd-numbered year. Membership includes brokers/salespersons, commercial and multifamily experts, timeshare/cemetery, subdividing, education, and three public members.

• ✓Board has ten members appointed by governor for six-year terms
• ✓Three public members must not be related within third degree to any licensee
• ✓Not more than five members from any one county may serve concurrently
• ✓Members receive no compensation but are reimbursed for subsistence and travel

The board must meet at least once each quarter-year at a designated place. Additional meetings require five days' written notice. A majority of the board constitutes a quorum, and a vacancy does not impair the rights or powers of remaining members.

• ✓Board must meet at least once each quarter-year
• ✓A majority of the board constitutes a quorum
• ✓A vacancy does not impair rights/powers of remaining members

The department must post website information advising home buyers to investigate water availability before purchasing and link to the Department of Water Resources for water supply definitions applicable outside active management areas, plus a current map of areas outside active management areas.

• ✓Department must post water availability advisory and DWR definition link on its website
• ✓Water supply definitions apply outside active management areas per 45-108.05
• ✓Department must display a current map of areas outside active management areas

No officer or employee of the department may be connected with or directly/indirectly interested in any real estate company or real estate brokerage firm. The attorney general acts as legal adviser and representative of the commissioner.

• ✓Department officers/employees cannot have interest in any real estate company or brokerage firm
• ✓The attorney general acts for the commissioner in all legal actions and advises on questions of law

An entity applying for a broker license must designate a natural person licensed as a broker who is an officer, manager, member, or partner to act as designated broker. The license extends no authority to any other person, and the entity's license runs concurrently with the designated broker's license.

• ✓Entity must designate a natural person licensed broker as designated broker
• ✓Entity's broker license runs concurrently with the designated broker's license

A corporation, LLC, or partnership applying for a broker license must designate a natural person licensed as a broker who is an officer, manager, member, or partner to act as designated broker. The entity's license runs concurrently with the designated broker's license.

• ✓Entity must designate a licensed natural person broker as designated broker
• ✓The license extends no authority to act as designated broker to any other person
• ✓Entity's broker license runs concurrently with the designated broker's license

An employing broker may engage salespersons and associate brokers acting through licensed professional corporations or professional LLCs whose shareholders/members/managers hold active real estate licenses. A professional corporation or professional LLC may not be licensed as an employing broker.

• ✓PC/PLLC shareholders, members, or managers must hold active real estate licenses
• ✓A professional corporation or professional LLC cannot be licensed as an employing broker

A PC or PLLC license terminates on the death of or change of shareholders/members/managers, except a remaining authorized officer/shareholder may continue business for up to 90 additional days pending a new license or designated broker. The entity may not assume representation for new clients while a new license is pending.

• ✓Up to 90 additional days to continue business after ownership change
• ✓Entity may not assume new client representation while a new license is pending

An entity may not name a person as designated broker if that person is/was a designated broker on another license and is under a cease and desist order, has a suspended license, or had a license revoked in the previous two years for an act occurring while named on the license.

• ✓Cannot name a designated broker under a cease and desist order or with a suspended license
• ✓Cannot name a person whose license was revoked in the previous 2 years for an act while named on the license

A licensed corporation, LLC, or partnership must report to the department within ten days any change in officers/directors/members/managers/partners or control, articles amendments, when a person becomes a 10%+ stock owner, and dissolution of the entity.

• ✓Must report changes in officers/directors/members/control within 10 days
• ✓Must report when a person becomes owner of 10% or more of corporate stock within 10 days

An employing broker may engage salespersons/associate brokers who act through licensed professional corporations or PLLCs whose shareholders/members/managers hold active real estate licenses. A professional corporation or PLLC may not be licensed as an employing broker.

• ✓PC/PLLC shareholders, members or managers must hold active real estate licenses
• ✓A professional corporation or PLLC shall not be licensed as an employing broker
• ✓Each engaged person shall be separately licensed

A corporation/LLC license under subsection B terminates on death or change of shareholders/members/managers, but a remaining authorized officer-shareholder may continue business for up to an additional 90 days pending a new license or new designated broker. The entity may not take on new clients while a new license is pending.

• ✓Remaining authorized officer may continue business up to 90 additional days pending new license/designated broker
• ✓Entity may not assume representation for new clients while new license pending or until new designated broker added

An entity may not name a person as designated broker if that person was named designated broker on another license and is under a cease-and-desist order, has a suspended license, or had a license revoked in the previous two years for an act occurring while named on the license.

• ✓Cannot name designated broker who is under a cease and desist order or whose license is suspended
• ✓Cannot name designated broker whose license was revoked in the previous two years for an act while named

An entity licensed under this section must report to the department within ten days any change in officers/directors/members/managers or control, amendments to articles or partnership agreement, when a person becomes a 10%+ stockholder, or dissolution.

• ✓Report changes in officers/directors/members/managers or control within 10 days
• ✓Report when a person becomes owner of 10% or more of corporation stock within 10 days
• ✓Report dissolution within 10 days

Licensed corporations, PCs, LLCs, PLLCs, and partnerships are exempt from the chapter's education requirements, and the commissioner shall not charge them a license or renewal fee under 32-2132.

• ✓Licensed entities are exempt from education requirements of this chapter
• ✓No license or renewal fee charged to licensed corporations, LLCs, or partnerships