If disclosing censure, sanction, disci-

R4-28-403. If disclosing censure, sanction, disci- occu- plinary action, or other order against any professional or pational license currently or previously held by the applicant, the applicant shall submit a certified license history from each state in which the applicant holds, or has held, a professional or occupational license within the five years before the application. per- C. The Department shall not issue a broker’s license to any son who holds an active salesperson’s license in this state. An active-status salesperson applying for broker’s license may simultaneously submit a severance signed by the designated broker on behalf of the salesperson’s employing broker under R4-28-303(E)(10) or may request to be administratively severed under R4-28-303(G). D. The Department shall issue to a qualified person a license bearing the legal name of the licensee and any additional nickname, or d.b.a. name, corporate name if an entity license, or name to be used by a self-employed broker that the Commissioner finds is not detrimental to the public interest and not otherwise prohibited by statute. A professional corporation or professional limited liability company licensed under A.R.S. § 32-2125(B) shall not adopt a d.b.a. name. E. Every salesperson and broker holding a current license shall file with the Commissioner both the address of the salesperson’s or broker’s principal place of business, or the address of the statutory agent as filed with the Department, and a current residence address. F. Unless a license or approval is in a terminated, revoked, or surdirec- rendered status, each salesperson, broker, school owner, tor, administrator, and instructor shall within 10 days of each occurrence notify the Commissioner in writing of any change in information provided under subsection (A)(1)(a) through (d) and provide documentation listed in subsection (A)(2). G. A licensee shall, within 14 calendar days or a later date deter- Com- mined by the Department, respond to a request from the missioner or the Commissioner’s representative for any documents, electronic files, written statements, or other inforregard- mation required as a part of a complaint investigation, less of whether the licensee is named in the complaint. Historical Note Adopted effective May 1, 1980 (Supp. 80-3). Amended effec- effective March 13, 1981 (Supp. 81-2). Amended tive August 1, 1986 (Supp. 86-4). Former Section R4-28- 05 renumbered without change as Section R4-28-301 (Supp. 87-1). Amended subsection (C) effective May 3, 1988 (Supp. 88-2). Amended subsection (J) effective February 28, 1989 (Supp. 89-1). Amended effective Februlemak- ruary 28, 1995 (Supp. 95-1). Amended by final ing at 5 A.A.R. 650, effective February 3, 1999 (Supp. 99-1). Amended by final rulemaking at 6 A.A.R. 1886, effective May 2, 2000 (Supp. 00-2). Amended by final December 31, 2025 Supp. Administrative Code 4 A.A.C. 28 AND OCCUPATIONS ESTATE DEPARTMENT rulemaking at 11 A.A.R. 506, effective March 5, 2005 (Supp. 05-1). Amended by final rulemaking at 31 A.A.R. 4267 (November 7, 2025), effective December 13, 2025 (Supp. 25-4). R4-28-302. Employing Broker’s License; Non-Resident Broker A. A person applying for an employing broker’s license shall provide the following information: num- 1. The name, business address, telephone number, fax ber and email address, if any, and designated broker’s name, license number and expiration date, and the signature of the designated broker; 2. Whether the broker is an individual, a sole proprietorship, corporation, partnership, limited liability company, professional corporation or professional limited liability company; 3. The mailing address, if different than the business address; 4. The d.b.a. name, if applicable; 5. The bank name and location of each of the broker’s trust accounts, if any; and 6. The name and number of the trust account. B. Partnership. 1. When the applicant is a partnership, the applicant shall name a broker to serve as designated broker: a. The designated broker shall be a partner of the general partner if the general partner is a partnership. b. The designated broker shall be a corporate officer of the corporate partner if the general partner is a corporation. c. The designated broker shall be a member of the member-managed limited liability company or mancom- ager of the manager-managed limited liability pany if the general partner is a limited liability company. desig- d. A limited partner of a partnership shall not be nated broker for the partnership. 2. In addition to the information provided in subsection (A), part- an applicant for an employing broker’s license as a nership shall, if applicable, provide: a. The name and address of each partner, and the name of any other person with a beneficial or membership interest in the partnership; b. An agreement signed by all partners, stating the desig- name of the partner appointed to act as the nated broker for the partnership; c. A written statement signed by the designated broker stating that: i. The partnership has applied for a broker’s license in Arizona; ii. Each partner has read the complete application on the named partnership as submitted to the Department; iii. All the information contained in the application is true; iv. Each general partner is qualified to do business in Arizona; and v. The name of the partnership complies with A.R.S. § 29-245 and subsections (H) and (I), and is not likely to be misleading or confusing; d. A copy of the partnership agreement and any amendments; 25-4 Page 7 Arizona TITLE 4. PROFESSIONS CHAPTER 28. STATE REAL e. A copy of the application for partnership registration stamped “Received and Filed” by the Arizona Secretary of State; and f. Any other information required by the Department to verify the applicant’s qualifications. sub- C. Corporation. In addition to the information provided in section (A), an applicant for an employing broker’s license for a corporation shall provide: 1. The name and address of each officer and director, and the name and address of each shareholder controlling or holding more than 10% of the issued and outstanding benefi- common shares, or 10% of any other proprietary, cial, or membership interest in the corporation; 2. A copy of the Articles of Incorporation and any amend- Cor- ments stamped “Received and Filed” by the Arizona poration Commission. If more than one year has elapsed between the date the Articles were stamped “Filed” by the Arizona Corporation Commission and the application for the corporate license, a Certificate of Good Standing from the Arizona Corporation Commission is required; 3. A corporate resolution stating that the designated broker was elected or appointed as a corporate officer, naming the office held, and stating that the individual was appointed to act as designated broker for the corporation; 4. A written statement signed by the designated broker stating that: a. The corporation has applied for a broker’s license in Arizona; b. Each officer and director has read the complete application on the named corporation as submitted to the Department; c. All the information contained in the application is true; d. The name of the corporation complies with A.R.S. § 10-401 and , Article 10, and is not likely to be misleading or confusing; and e. Each corporation is qualified to do business in Arizona; and ver- 5. Any other information required by the Department to ify the applicant’s qualifications. D. Limited liability company. In addition to the information probro- vided in subsection (A), an applicant for an employing ker’s license for a limited liability company shall provide: 1. The name and address of each member and manager, and hold- the name and address of any person controlling or ing more than 10% of the membership interest in the limited liability company; amend- 2. A copy of the Articles of Organization and any ments stamped “Received and Filed” by the Arizona Corporation Commission. If more than one year has elapsed between the date the Articles were stamped “Filed” by the Arizona Corporation Commission and the application for the limited liability company license, a Certificate of Commis- Good Standing from the Arizona Corporation sion is required; 3. A company resolution signed by all members stating whether management of the limited liability company is established as manager-controlled or member-controlled and the name of the member or manager appointed to act as the designated broker; 4. A written statement signed by the designated broker stating that: bro- a. The limited liability company has applied for a ker’s license in Arizona; Supp. Administrative Code AND OCCUPATIONS ESTATE DEPARTMENT b. Each member and manager has read the complete application on the limited liability company as submitted to the Department; c. All of the information contained in the application is true; d. The name of the limited liability company complies with A.R.S. § 29-3112 and , Article 3, and is not likely to be misleading or confusing; and busi- e. The limited liability company is qualified to do ness in Arizona. 5. A copy of the operating agreement and any amendments; and 6. Any other information required by the Department to verify the applicant’s qualifications. E. Foreign entity. In addition to the requirements in this Section, the Department may require any of the following information from an entity applying for a broker’s license if a partner, member, officer, or director of the entity is domiciled in another state: 1. The agreement and plan of merger; 2. The Certificate of Good Standing; 3. The Certificate of Merger on file in the state in which the applicant is domiciled; Corpo- 4. The Certificate of Merger on file with the Arizona ration Commission; 5. A filed and stamped Articles of Merger; 6. A filed and stamped application for registration of the foreign limited liability company, foreign corporation, or partnership; ver- 7. Any other information required by the Department to ify the applicant’s qualifications. F. Self-employed broker. In addition to the information provided bro- in subsection (A), any person applying as a self-employed ker shall provide a sworn statement attesting that the applicant is the sole proprietor of the business. G. If any information prescribed in subsections (A) through (F) changes, the designated broker shall, within 10 days after the change, file a supplemental statement in writing with the Department listing the change and include the appropriate fee, if any. H. The Department shall not license an employing broker or authorize an employing broker to do business under a d.b.a. name similar to that of any employing broker already licensed if the name would cause uncertainty or confusion to the public. If there is a conflict of names between two employing brokers, the Commissioner shall require the employing broker seeking licensure to supplement or otherwise modify the broker’s name. I. Prior to an employing broker adding a d.b.a. or trade name, evidence of the employing broker entity holding at least a 10% ownership of the d.b.a. or trade name must be provided. An individual shall not conduct or promote real estate business under any name other than the name under which the individual is licensed. J. A broker shall not allow a salesperson or associate broker licensed through the brokerage to conduct licensed activity if the broker’s only interest is the receipt of a fee for the use of the license. K. Change of designated broker. 1. To resign as an employing broker’s designated broker a broker shall submit to the Department a copy of the broker’s letter of resignation. 2. A licensed entity may remove its designated broker by submitting to the Department a copy of the partnership 25-4 December 31, 2025 Arizona TITLE 4. PROFESSIONS CHAPTER 28. STATE REAL agreement, corporate or company resolution removing the broker. 3. The employing broker whose designated broker has resigned or been removed shall cease conducting business until the employing broker has complied with subsection (K)(4). 4. An employing broker whose designated broker has resigned or been removed may continue business without interruption if the incoming designated broker on the same day as, or the next business day following, the departure or removal of the outgoing designated broker: a. Completes, signs, and submits the Change Form as prescribed in R4-28-303; and b. If the entity is a corporation or limited liability combro- pany, submits a resolution appointing the new ker to act on its behalf or; c. If the entity is a partnership, submits an amendment to the partnership agreement naming the new broker to act on its behalf. L. Non-resident employing broker. 1. An employing broker that holds a non-resident license and maintains a principal office outside this state shall: a. Maintain a trust account or licensed escrow account Ari- situated in Arizona for monies received from zona transactions; b. Maintain immediately available, copies of all docuhan- ments pertaining to any Arizona transactions dled by the broker, where “immediately available” means the licensee’s ability to provide the records at the time of the request by the Department; c. Provide a written statement to the Department identifying the name, address, and telephone number of the person residing in Arizona, such as a statutory agent or attorney, who has possession of the records; and d. Identify the location of the records. 2. An employing broker that holds a non-resident license and employs a licensed salesperson or broker within the state shall: a. Establish an office in Arizona and appoint a branch manager and provide a statement describing how the licensed employee shall be supervised or; b. Notify the Department of a valid statutory agent according to A.R.S. § 32-2126. 3. An employing broker who holds a non-resident license shall notify the Department within 10 days of any change to any information required under this Section. Historical Note Adopted effective May 1, 1980 (Supp. 80-3). Amended effective March 13, 1981 (Supp. 81-2). Correction, Supp. 80-3 should read Adopted effective May 1, 1980 (Supp. 83-3). Amended subsection (B) effective August 1, 1986 (Supp. 86-4). Former Section R4-28-06 renumbered without change as Section R4-28-302 (Supp. 87-1). For- Amended effective February 28, 1995 (Supp. 95-1). mer Section R4-28-302 repealed, new Section R4-28-302 adopted by final rulemaking at , effective February 3, 1999 (Supp. 99-1). Amended by final rulemaking at , effective March 5, 2005 (Supp. 05-1). Amended by final rulemaking at (November 7, 2025), effective December 13, 2025 (Supp. 25-4). R4-28-303. License Renewal; Reinstatement; Changes of December 31, 2025 Supp. Administrative Code AND OCCUPATIONS ESTATE DEPARTMENT Personal Information, License, or License Status; Professional Corporation or Professional Limited Liability Company Licensure; Administrative Severance A. Renewal. 1. If a salesperson or broker makes a timely and administratively complete application for license renewal or a new license with reference to any activity of a continuing nature, the existing license does not expire until the application has been finally determined by the Department, and, in case the application is denied or the terms of the new license limited, until the last day for seeking review of the Commissioner’s order or a later date fixed by order of the reviewing court. 2. Any salesperson or broker applying for a license renewal shall submit the following information on the Application for License Renewal form: a. Any change or correction to the applicant’s licensing information; b. Whether the renewal application is late; c. The signature of the applicant, attesting to the truthfulness of the application information; d. A completed disciplinary actions disclosure form, providing sufficient details and supporting documents for any affirmative response not previously disclosed in writing to the Department concerning judgments, orders, professional licenses, or convictions, as required under R4-28-301(A). e. To renew as designated broker for an employing broker, the designated broker shall complete and submit a signed Broker Supervision & Control Audit Declaration for the sole proprietorship or entity on whose behalf the broker acts as designated broker. The completed declaration shall: i. Be dated and filed before or with the broker’s renewal application, and submitted to the Department no earlier than 90 days before the broker’s license expiration date; ii. Be in the form prescribed by the Department; non-compli- iii. State the broker’s compliance or ance with, or the non-applicability of, specified statutes and rules; and manage- iv. Identify all of the broker’s property ment and trust accounts. B. Late renewal. In addition to the information required in subsection (A), any person applying for renewal after the date of license expiration shall specify whether the person conducted unlawful license activities as described in R4-28-306. C. Reinstatement. 1. Any salesperson or broker applying for license reinstatement under A.R.S. § 32-2131 shall, in addition to the requirements in R4-28-301(A), submit the following information on the Application for Reinstatement form: a. The type of license and status requested; b. The applicant’s legal name, business address, and telephone number; c. Whether the license was suspended, canceled, terminated, or revoked, and the date of and reason for the action; d. The license number of the applicant; e. The mailing address, if different than the business address; f. The name, address, and telephone number of the employing broker, if applicable; g. The employer’s trade or d.b.a. name, if any; 25-4 Page 9 Arizona TITLE 4. PROFESSIONS CHAPTER 28. STATE REAL h. The date of the application; and i. The signature of the applicant attesting to the above information and that the applicant is aware of the provisions in A.R.S. §§ 32-2131, 32-2153, and 32- 2160.01. cancel- 2. If the license was active at the time of suspension, lation, revocation, or termination, the applicant shall provide the information required under R4-28-306. D. A salesperson or broker shall notify the Department in writing within 10 days of any change in the individual’s personal information or qualifications. The salesperson or broker shall include in the notice the individual’s name, signature, license number, and: 1. If disclosing information required under R4-28-301, such as a criminal conviction, adverse judgment, denial or restriction of or disciplinary action against a professional or occupational license, or recovery fund payment on the person’s behalf, a written statement providing detailed information and, upon request by the Department, the supporting documentation identified in R4-28-301(A)(2); 2. If requesting a change of personal name, written notice stating the prior name and new name, supporting documentation for the change, and applicable fee; 3. If changing address of record or mailing address, written notice stating the prior address, new address and the date of the change; provid- 4. If changing email address or telephone number or ing an additional telephone number or email address, written notice of the prior and current number or email address or; 5. If becoming licensed as a professional corporation or professional limited liability company, or changing licensure lia- as a professional corporation or professional limited bility company, the information required under subsection (F). E. A designated broker shall notify the Department in writing within 10 days of any change in the employing broker’s qualifications under R4-28-301, and shall provide notice of any informa- proposed change in the employing broker’s business tion under this Section. An employing broker shall not conduct business under information described in subsections (E)(2), (3), (7), (9), (12), or (13) until the change is approved by the Department. The designated broker shall include in the written notice the designated broker’s name and signature, the employing broker’s legal name, and: 1. If disclosing information required under R4-28-301 such as an adverse judgment, bankruptcy, denial, or restriction occupa- of or disciplinary action against a professional or tional license, or recovery fund payment on the person’s own behalf or on behalf of any officer, director, member, per- manager, partner, owner, trust beneficiary holding 10 cent or more beneficial interest, stockholder owning 10 percent or more stock, or other person exercising control writ- of the employing broker, file with the Department a ten statement of the occurrence, providing detailed information and, upon request by the Department, the supporting documentation identified in R4-28-301(A)(2); 2. If changing the employing broker’s legal name, written notice stating the current name and proposed name, supporting documentation, and applicable fee; 3. If changing the employing broker’s d.b.a. name, written notice stating the current d.b.a. name, if any, the proposed d.b.a. name, and applicable fee; Supp. Administrative Code AND OCCUPATIONS ESTATE DEPARTMENT 4. If changing the employing broker’s address of record, changing or adding a business mailing address, or changing the address of any branch office, written notice of the change stating the prior address and new address, and pay the applicable fee; 5. If changing business telephone number or email of record, written notice of the change, providing the prior and current number or email address. The broker may provide additional telephone numbers or email addresses; 6. If changing branch office managers at an established branch office of the employing broker, or changing the authority delegated to the branch office manager, the application form, and applicable fee; 7. If closing a branch office, submitting the Department employ- form for branch office closure and severing the ment of or transferring to another branch office each employee at the branch; sales- 8. If hiring a salesperson or broker, or transferring a person or broker employed by the employing broker to another office of the employing broker, submitting a form prescribed by the Commissioner and applicable fee; 9. If opening or closing a broker’s trust account, written notice of the opening or closing that provides the name of the account, the account number, and the name and address of the bank where the account is located. If relocating or changing the name of a trust account, the designated broker shall include the information for the previous and new accounts; 10. If appointing a temporary broker, submit the information specified in R4-28-305 and in accordance with provisions of A.R.S. §§ 32-2127 or 32-2133, as applicable, or; 11. If an employing broker is changing designated brokers, the information and documentation provided in R4-28- 302(K). F. In addition to the applicant’s name, signature, license number, employing broker’s office license number, and the change fee, a salesperson or broker shall submit the following information to be licensed as a professional corporation or professional limited liability company, to add or remove members of a licensed professional corporation or professional limited liability company, or to change the name of a licensed professional corporation or professional limited liability company: 1. Professional corporation. a. The name of the professional corporation that direc- includes the full or last name of each officer, tor, and shareholder of the professional corporation as it appears in the Articles of Incorporation; b. The name and business address of each officer, director, and shareholder in the corporation and a written statement that each holds a current and active real estate license; c. A copy of the Articles of Incorporation, as amended and filed with the Arizona Corporation Commission and; d. Evidence that membership in the professional corporation is limited to the designated broker and does not include any other person if the applicant for licensure as a professional corporation is licensed as a designated broker; 2. Professional limited liability company. a. The name of the professional limited liability company which includes the full or last name of each com- member of the professional limited liability pany as it appears in the Articles of Organization; 25-4 December 31, 2025 Arizona TITLE 4. PROFESSIONS CHAPTER 28. STATE REAL b. The name and address of each member and manager in the limited liability company and a written statement that each holds a current and active real estate license; c. A copy of the Articles of Organization, as amended and filed with the Arizona Corporation Commission; d. A copy of the operating agreement, as amended, and; lim- e. Evidence that membership in the professional ited liability company is limited to the designated broker and does not include any other person if the lia- applicant for licensure as a professional limited bility company is licensed as a designated broker. 3. To return a license from professional corporation or professional limited liability company status to individual status: a. The name, license number, and dated signature of the salesperson or broker; b. Appropriate department form, and; c. The change fee. G. Administrative severance. 1. A salesperson or broker may request that the Department sever the salesperson’s or broker’s license from the pro- employing broker. The salesperson or broker shall vide the following information on a form or in the manner prescribed by the Department: a. The name, license number, and dated signature of the salesperson or broker seeking the severance, and; b. The name of the employing broker from whom the license is being severed. 2. Upon receipt of the written request for severance as provided in subsection (G)(1)(a), the Department shall administratively sever the license and provide written notice to the employing broker, who shall return the severed person’s license to the Department under subsection (E)(10). Historical Note Adopted effective May 1, 1980 (Supp. 80-3). Amended effec- effective March 13, 1981 (Supp. 81-2). Amended tive August 1, 1986 (Supp. 86-4). Former Section R4-28- 07 renumbered without change as Section R4-28-303 (Supp. 87-1). Amended by adding a new subsection (K) effective May 3, 1988 (Supp. 88-2). Amended effective February 28, 1995 (Supp. 95-1). Former Section R4-28- 303 repealed, new Section R4-28-303 adopted by final rulemaking at , effective February 3, 1999 (Supp. 99-1). Subsection (F) amended to correct a manifest clerical error, filed in the Office of the Secretary of State March 29, 1999 (Supp. 99-3). Amended by final rulemaking at 6 A.A.R. 1886, effective May 2, 2000 (Supp. 00-2). Amended by final rulemaking at 11 A.A.R. 506, effective March 5, 2005 (Supp. 05-1). Amended by final rulemaking at 31 A.A.R. 4267 (November 7, 2025), effective December 13, 2025 (Supp. 25-4). R4-28-304. Branch Office; Branch Office Manager A. To obtain a branch office license, the designated broker shall submit to the Department before operating the branch office the following information for each branch office of the employing broker on the Application for Branch Office form: 1. The name, date, and signature of the designated broker; 2. The license number of the employing broker; December 31, 2025 Supp. Administrative Code AND OCCUPATIONS ESTATE DEPARTMENT 3. The name, address of record, telephone, email address, and license number of the main office; 4. The employing broker’s d.b.a. name, if applicable; 5. The address of record, telephone number, email address of record, if any, of the branch office, and; bro- 6. The name and license number of the salesperson or ker who is the branch office manager and the authority granted to the branch office manager, including any designation of authority under subsection (B). B. Branch office manager. A designated broker may authorize in writing an associate broker or salesperson to act as a branch office manager to perform any of the following duties of the designated broker at the branch office. A designated broker must maintain any letters of authority required under R4-28per- 303(E)(7) specifying which duties the branch manager is mitted to perform. Any associate broker or salesperson with delegated duties becomes responsible, in addition to the designated broker, for the supervision of licensees licensed through the branch for those duties. This designation does not relieve the designated broker from any responsibilities. Upon change of the branch manager, the designated broker shall submit a new authorization to the Department within 10 days of the change and shall retain a copy in the broker’s main office for five years beyond either the closure of the branch or the removal of the authority, whichever occurs earliest. 1. If the branch manager is an associate broker, the associate transac- broker may, when dealing with branch office tions: a. Review and initial contracts, b. Supervise the activity of salespersons and associate brokers, c. Hire or sever a salesperson or associate broker, d. Sign compensation checks, e. Be a signer on the branch office trust account and property management trust account, f. Write checks from the broker’s trust accounts, and g. Be responsible for the handling of all trust account funds administered by the branch manager. 2. If the branch manager is a salesperson, the salesperson may, when dealing with branch office transactions: a. Perform office management tasks that are not statutory duties of the designated or employing broker, and b. Be a signer on the broker’s trust account and property management trust account. C. Temporary office. 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. 1. The broker named in the application for public report shall supervise operation of the temporary office to sell or lease the subdivided or unsubdivided land. 2. The broker shall display the subdivision or unsubdivided land name and the licensed name of the employing broker marketing the development in a prominent manner at the entrance to the temporary office. Historical Note Adopted effective May 1, 1980 (Supp. 80-3). Amended subsection (A) effective June 23, 1983 (Supp. 83-3). Amended subsection (A)(4) effective August 1, 1986 (Supp. 86-4). Former Section R4-28-08 renumbered and amended as Section R4-28-304 effective February 28, 1987 (Supp. 87-1). Former Section R4-28-304 repealed, new Section R4-28-304 adopted by final rulemaking at 5 25-4 Page 11 Arizona TITLE 4. PROFESSIONS CHAPTER 28. STATE REAL A.A.R. 650, effective February 3, 1999 (Supp. 99-1). Amended by final rulemaking at , effective rulemak- March 5, 2005 (Supp. 05-1). Amended by final ing at (November 7, 2025), effective December 13, 2025 (Supp. 25-4). R4-28-305. Temporary License, Certificate of Convenience A. Any individual applying for a temporary cemetery salesperson’s license, a temporary broker’s license, or a membership camping salesperson’s certificate of convenience shall submit the following information and applicable fee to the Department: 1. The type of license requested; 2. The name, address, telephone number, and date of birth of the applicant; sub- 3. The mailing address if different from the address in section (A)(2); 4. The name, address of record, email of record and, telephone number of record, if any, and license number of the employing broker; and 5. The branch office license number, address, telephone dif- number, and fax number, if any, where employed, if ferent than the employing broker in subsection (A)(4). B. The designated broker shall submit an affidavit under A.R.S. §§ 32-2134 or 32-2134.01 for: 1. An applicant for temporary cemetery license stating that the applicant has been trained in cemetery and contract law; or 2. An applicant for a membership camping certificate of convenience stating that the applicant will be trained in membership camping and contract laws. C. In addition to the information required in subsection (A), an applicant for a temporary broker’s license according to A.R.S. § 32-2133 shall submit the following information to the Department: 1. A copy of the death certificate or notice, if applicable, or a letter advising the Department of the broker’s illness or disability; and 2. A letter from the surviving spouse, an attorney representrepresenta- ing the broker or the broker’s family, personal tive, or other responsible party, appointing an individual to serve as a temporary broker for 90 days for the purpose desig- of closing down the business or installing a new nated broker pursuant to A.R.S. § 32-2125(C). Historical Note Adopted effective May 1, 1980 (Supp. 80-3). Amended subsection (A) effective June 23, 1983 (Supp. 83-3). Amended subsection (A)(4) and (5) effective August 1, 1986 (Supp. 86-4). Former Section R4-28-09 renumbered For- without change as Section R4-28-305 (Supp. 87-1). mer Section R4-28-305 repealed, new Section R4-28-305 adopted by final rulemaking at , effective February 3, 1999 (Supp. 99-1). Amended by final rulemaking at , effective March 5, 2005 (Supp. 05-1). Amended by final rulemaking at (November 7, 2025), effective December 13, 2025 (Supp. 25-4). R4-28-306. Unlawful License Activity A. Unlawful license activity is: 1. The performance of acts requiring a license under A.R.S. § 32-2122 by a person who fails to hold a license or holds a license that is not active; Supp. Administrative Code AND OCCUPATIONS ESTATE DEPARTMENT 2. The performance of acts requiring a license by a person on behalf of a broker other than the person’s employing broker; or 3. A broker’s employment of a person as a salesperson or broker if the person does not hold an active license issued to the person under that employing broker. B. A person who conducts unlawful license activity shall submit to the Department, as soon as the person becomes aware that the activity has occurred, the following: 1. A written explanation of why the unlawful license activity occurred; 2. A signed statement from the person that the person will not conduct activities requiring licensure under A.R.S. § 32-2122 unless the person holds an active license to perform those acts; 3. A signed statement from the employing broker’s designated broker, identifying all unlawful activity by the person on behalf of the employing broker; 4. Upon request by the Department: a. A copy of all listing and employment agreements, trans- offers or contract to buy, sell, lease, exchange, fer, or manage real estate, cemetery property, or membership camping contracts prepared, negotiated or executed by the person while the person was not properly licensed under the employing broker; b. Documentation listing all compensation received or to be received by the person based on transactions that occurred while the person was not properly licensed; c. Documentation listing all compensation received or to be received by the person’s employing broker and designated broker, if any, resulting from transactions that occurred while the person was not properly licensed if not provided in response to subsection (B)(4)(b); and d. A signed statement from the person stating that the information provided under subsection (B)(4) is true and complete and that the copies provided are true copies of all contracts, agreements, statements, and leases and no relevant documents are omitted. C. A person who has no prior history of engaging in unlawful license activity under this Section, who conducted unlawful license activity for not more than 30 days and against whom there are no pending complaints may apply to renew the per- Depart- son’s license or for license change to active status. The ment shall not delay processing the application based on the unlawful licensed activity. The Department shall issue an Advisory Letter of Concern to the person. D. The Commissioner may take disciplinary action under A.R.S. § 32-2153 against a person who engages in unlawful license previ- activity under this Section for longer than 30 days, has ously conducted unlawful license activity, or is the subject of a pending complaint. Historical Note New Section made by final rulemaking at , effective March 5, 2005 (Supp. 05-1). Amended by final rulemaking at (November 7, 2025), effective December 13, 2025 (Supp. 25-4). R4-28-307. Inactive License A. Pursuant to A.R.S. § 32-2130, an active licensee must sever sta- from the employing brokerage before requesting inactive tus. On forms prescribed by the Commissioner, the active licensee may then request the Department inactivate the 25-4 December 31, 2025 Arizona TITLE 4. PROFESSIONS CHAPTER 28. STATE REAL licensee’s current license for a period not to exceed 15 years. A license in an inactive status is not required to complete continuing education credit hour requirements until such time that the licensee applies to return their license to active status. Inactive status shall not relieve the licensee from renewing and paying the required fees. B. Failure of an inactive licensee to pay the required renewal fee and to renew will result in the expiration of the license. An expired inactive license will remain expired for one year and may be renewed within that year to return to inactive status. The department shall terminate an inactive license that has been expired for more than one year. C. The Department must change the license to inactive upon receipt of a complete application to change an active license to inactive. The Department may not refund any of the license renewal fee a licensee paid before requesting inactive status. D. The holder of an inactive license is prohibited from performing activities which require an active license until the license is reactivated as an active license. E. An inactive licensee that acts directly or indirectly in a transaction must comply with all duties of a licensee required under R4-28-1101, except those duties owed to a client. F. The inactive status of a license does not prevent the Commissioner from taking any disciplinary action against the licensee for any of the grounds stated in this Chapter. G. A license that is not suspended or revoked and that is inactive may be reactivated as an active license on 30 days’ written notice to the Department on forms prescribed by the Commissioner. With the exception of subsection (6), a licensee must submit evidence of completion of the following number of continuing education credit hours taken not more than 24 months prior to applying for reactivation: inactiva- 1. If inactive for less than three years (from date of tion) a licensee is required to complete the same number of continuing education hours as provided for in A.R.S. § 32-2130. 2. If inactive for three years or more (from date of inactivation) but less than six years, a licensee is required to complete six hours of the continuing education hours in addition to the: a. 24 continuing education credits hours required if the license were not inactive for a salesperson, or; b. 30 continuing education credit hours required if the license were not inactive for a broker or licensee reactivating with delegated authority. 3. If inactive for six years or more (from date of inactivation) but less than 10 years, a licensee is required to complete 15 hours of the continuing education hours in addition to the: a. 24 continuing education credits hours required if the license were not inactive for a salesperson, or; b. 30 continuing education credit hours required if the license were not inactive for a broker or licensee reactivating with delegated authority. 4. If inactive for 10 years or more (from date of inactivation) but less than 15 years, a licensee is required to complete 30 hours of the continuing education hours in addition to the: a. 24 continuing education credits hours required if the license were not inactive for a salesperson, or; b. 30 continuing education credit hours required if the license were not inactive for a broker or licensee reactivating with delegated authority. December 31, 2025 Supp. Administrative Code AND OCCUPATIONS ESTATE DEPARTMENT 5. The Commissioner may identify categories or specific courses for the continuing education credit hours necessary to reactivate a license. 6. As approved by the Commissioner, additional hours as provided for in subsections (2), (3), and (4) may not be continu- required for an inactive licensee who has worked ously within the real estate industry where a license was not required or the individual was required to have an gov- inactive license or they worked continuously within ernment regulation or policymaking within real estate, or a related field. To apply for the waiver under this subsection, the inactive licensee must submit a waiver on forms prescribed by the Department. H. An examination may not be required to reactivate an inactive inac- license if reactivated less than 15 years after changing to tive. If the license is not reactivated within 15 years, a new application for licensure must be made meeting the statutory qualification requirements for the license being applied for, to include completion of prelicensing education and successful passing of the state required examination. Historical Note New Section made by final rulemaking at (November 7, 2025), effective December 13, 2025 (Supp. 25-4). R4-28-401. Prelicensure Education Requirements; Waiver A. Any individual applying for a real estate license shall either: 1. Complete the required 90-hour prelicensure education course and satisfactorily pass an examination on the course with a score of at least 75 percent as prescribed in A.R.S. § 32-2124; or 2. Except for the 27-hour Arizona-specific course, apply for and be granted a waiver of the prelicensure courses. B. If the waiver request is based on prior education, the applicant shall submit a letter to the Commissioner that includes or demonstrates: 1. The name, mailing address, telephone number, and signature of the applicant; 2. The type of license sought; 3. The name, city, and state of the school; 4. The course description or curriculum, including credit hours; and 5. Completion of one or more real estate courses. Acceptable evidence includes; offi- a. A signed letter from a school representative or cial transcript from a college or university, which indicates: i. The starting and ending dates of the course; ii. The number of semesters, quarters, and credit hours awarded per course; and iii. Whether the course examination was passed. b. Evidence of course completion provided as part of a certified license history from a state in which the applicant is currently or was previously licensed. C. A waiver may be granted by meeting the requirement in A.R.S. § 32-4302 or if the waiver request is based on experience, or education and experience, the applicant shall submit a letter to the Commissioner that includes: 1. A detailed resume covering the previous 10 years, indicating duties performed and the name and telephone number for each employer; and 2. An original certified license history, including disciplinary action if any, from the real estate regulatory 25-4 Page 13 Arizona Administrative TITLE 4. PROFESSIONS AND CHAPTER 28. STATE REAL ESTATE agency in each state in which the applicant is currently licensed and from any other state in which the applicant was licensed during the preceding 10 years; and 3. One or more of the following: a. Completion of one or more real estate courses. Acceptable evidence includes a signed letter from a school representative, or official transcript from a college or university, which identifies: 4. i. The starting and ending dates of the course; ii. The number of semesters, or quarters, and credit hours awarded per course; satisfacto- iii. Whether the course examination was rily passed. b. Evidence of more than five years’ experience in a real estate related field; or c. Evidence of course completion provided as part of a 5. certified license history from a state in which the applicant is currently or was previously licensed. D. The Department shall provide a copy of the prelicensure course content to any person requesting it. Historical Note Adopted effective May 1, 1980 (Supp. 80-3). Amended subsections (F) and (G) effective March 13, 1981 (Supp. 81-2). Former Section R4-28-10 renumbered without change as Section R4-28-401 (Supp. 87-1). Amended by adding a new subsection (E) and renumbering accordingly effective March 7, 1988 (Supp. 88-1). Amended subsection (G) effective June 6, 1989 (Supp. 89-2). Amended effective February 28, 1995 (Supp. 95-1). Section R4-28-401 amended by final rulemaking at 5 A.A.R. 650, effective February 3, 1999 (Supp. 99-1). Amended by final rulemaking at (November 7, 2025), effective December 13, 2025 (Supp. 25-4). R4-28-402. Continuing Education Requirements; Waiver; Distance Learning A. Continuing education requirements. salesper- 1. To be eligible for license renewal, a real estate son or broker shall complete continuing education courses approved by the Department under R4-28-404, presented by a real estate school approved under R4-28- 404. Continuing education courses completed after fulfillment of the renewal requirement and within 90 days of a renewal may be counted toward the next license period but may not be counted for two licensing periods. 2. A real estate salesperson or associate broker applying for renewal shall submit proof of satisfactory completion of 24 credit hours of continuing education courses in the categories specified in subsection (A)(5), and if applicable any required Current Issues except as exempted under (A)(9). The renewal applicant shall complete a minimum of three hours in each of the mandatory categories under subsections (A)(5)(a) through (A)(5)(h). The renewal applicant shall take additional courses in the mandatory categories, or shall take courses in the business brokerage or general real estate category described in subsections (A)(5)(g) and (A)(5)(h) to fulfill the required 24 credit hours. 3. A real estate designated or delegated associate broker applying for renewal shall submit proof of satisfactory completion of 24 credit hours of continuing education mini- courses. The renewal applicant shall complete a mum of three hours in each of the mandatory categories under subsections (A)(5)(a) through (A)(5)(f) and shall Supp. 25-4 Code OCCUPATIONS DEPARTMENT complete a Broker Management Clinic under A.R.S. § 32-2136 approved in the Requirements for Licensees category under subsection (A)(5)(c). The renewal applicant shall take additional courses in the mandatory categories, or shall take courses in the business brokerage or general real estate category described in subsections (A)(5)(g) and (A)(5)(h) to fulfill the required 24 credit hours. A salesperson renewing for the first time may include credit for attendance at the Contract Writing class taken under A.R.S. § 32-2124(L) if taken within one year before the date of the salesperson’s original licensure. A broker renewing for the first time may include credit for attendance at the Broker Management Clinic under A.R.S. § 32-2136 taken before the broker’s original licensure date. The categories for real estate continuing education courses are: a. Agency law. The class material concerns agency relationships, fiduciary duties, and disclosure, any of which may include related court decisions. b. Contract law. The class material concerns contract formation and implementation as provided for in Article 26, Section 1 of the Arizona Constitution, or the results of contract use, which may include: i. Various contract terms and conditions, fundamentals, updates, options, offers, counter offers, first right of refusal, exchanges, subject to, and assignments; ii. Forms, when used to demonstrate examples of elements of a contract. The teaching of how to fill in a form template does not meet the minimum content requirements for Continuing Education credit. iii. Contract writing and elements of an enforceable contract; require- iv. Required disclosures and law and rule ments; v. Court decisions and case law studies; vi. Breach of contract issues; vii. Legal, ethical, and agency considerations, competency of the parties, and procedures; viii. Accommodating current financing procedures, requirements, and options. c. Requirements for Licensees. The class material relates to license laws, and may include: i. Article 26 of the Arizona Constitution; ii. A.R.S. Title 32, Chapter 20, and A.A.C. Title 4, Chapter 28, which includes trust accounts, recordkeeping, license requirements, exemptions to licensure, compensation, recovery fund pro- provisions, development requirements, cesses for public reports for and sale of subdivided and unsubdivided land, membership regu- campgrounds and time-shares, cemetery lations, and grounds for disciplinary action and hearings. adminis- iii. Any other statutory title and chapter, trative code, or applicable case law directly related to the practice of real estate in the State of Arizona. d. Real estate legal issues. The class material concerns existing real estate law or associated knowledge pertaining to a licensee’s scope and reasonable skill and care, and may include: Arizona Administrative TITLE 4. PROFESSIONS AND CHAPTER 28. STATE REAL ESTATE i. Sources of real estate law (constitutions, statutes, rules, zoning, common), and the legal system; ii. Land and its elements (air, mineral rights, water rights, real and personal property); iii. Land, title, and interests in land, homestead, encumbrances, and the Arizona Residential Landlord and Tenant Act; owner- iv. Easements, fixtures, land descriptions, ship, deeds, and building restrictions; v. Escrow procedures, financing documents, and Regu- lending laws and regulations, including lation Z; vi. Wills and estates, taxes, bankruptcy law, securities laws, title insurance, and appraisal law; vii. Case law studies, real estate fraud, disclosure law, and interstate and international real estate; viii. Homeowners Association regulations; ix. Real Estate Settlement Procedures Act (RESPA); x. Judicially appointed real estate representation; xi. Environmental issues. e. Fair housing and Americans with Disabilities Act. The class material concerns equal opportunities, and may include: i. Americans with Disabilities Act (ADA), including but not limited to ADA architectural designs (construction and development), pertinent history, and court cases; hous- ii. Arizona civil rights laws and federal fair ing laws, or any local ordinance of a similar nature, including advertising, marketing, information, current regulatory interpretation, enforcement, pertinent history, and court cases; iii. Housing developments, deed restrictions to include Arizona Revised Statutes, Title 33, Chapter 4, Article 7, affordable housing, elder housing, zoning, local ordinances, and disclosures, to include group homes, sober living homes, and other similar housing types; iv. Commercial and residential concerns; 6. v. Administrative procedures, disparate impact, and business practices. f. Disclosure. The class material may include the following: i. Licensee’s disclosure obligations and the tim- 7. ing of delivery to client and others; ii. Seller’s and buyer’s disclosure obligations to each other; iii. Common material facts warranting disclosure, and liability for failure to disclose; iv. Avoiding inadvertent non-disclosures; 8. v. Scope of licensee’s role in client’s review of required disclosures, to include buyer, seller, Homeowner Association, deed restriction, utilities, water access and uses, commitment for title insurance, homeowner insurance, or any other material and reasonable interest important 9. to the client; and vi. Advising buyers and sellers of common “red flags.” g. Business brokerage. (May be allocated to satisfy Legal Issues, Contract Law, Disclosures, or General December 31, 2025 Supp. 25-4 Code OCCUPATIONS DEPARTMENT Category Requirements) The majority of class material concerns business brokerage including: introduc- i. Business brokerage basics including ing licensees to business brokerage, associated terminology, marketing, prospecting, listing, pricing, closing practices, the use of contracts related to and unique to business brokerage, and the application of business brokerage contracts; ii. Business valuations and appraisals, and establishing an in-depth review of proper business valuation techniques for small, medium, and large businesses; iii. Tax structure and considerations, tax law, and policy including subjects such as financing tools available, options available, and tax implications; iv. Accounting for business brokers; v. Agency in business brokerages, the use of contracts related to and unique to business brokerage, and the application of business brokerage contracts; and vi. Disclosure issues in business brokerage, including common “red flags” in a business opportunity transaction, and advising buyers and sellers of common “red flags.” h. General real estate. The class material concerns real estate, but does not fall within any of the categories listed in subsections (A)(5)(a) through (A)(5)(g), and may include: i. Appraisal and valuation methodologies; ii. General finance and financial analysis of real property, mathematics, and managing cash flow; iii. History of development in metropolitan areas, develop- municipal general plans, economic ment plans, and regional planning bodies strategic plans; v. Market trends and analytics; vi. Property management. The Department may require an individual applying for cur- renewal to obtain credit hours based upon significant rent issues in the real estate community. The Department shall notify licensees of a new requirement by written notice published in printed or electronic format. The Department may grant continuing education credit for a course that does not have a certificate of approval sat- under R4-28-404 if the applicant demonstrates to the isfaction of the Commissioner that the course meets the requirements prescribed in R4-28-404 and the course content requirements of this Section. An applicant may substitute subject matter hours within a 90-hour broker’s prelicensure course that meet the criteria for credit under subsections (A)(5)(a) through (A)(5)(h), if taken since the last license renewal, for the continuing education credit required in subsection (A)(2) or (3). If any change in the continuing education course requirements occurs during a renewal applicant’s license period and the applicant has fully complied with the continuing education requirement in effect before the change occurs, the Department shall consider the renewal applicant to be require- in compliance with the continuing education ments for the license period. Arizona TITLE 4. PROFESSIONS CHAPTER 28. STATE REAL B. Continuing education waiver. Under A.R.S. § 32-2130, the Commissioner may waive all or a portion of the continuing education requirement or grant additional time to complete a continuing education requirement when a salesperson or broker submits a written request to the Commissioner and shows good cause for the waiver or additional time. 1. Good cause may include: a. A person employed by the state or political subdivi- Commis- sion establishes to the satisfaction of the sioner that the person’s employment during the prior license period involved real estate related matters; b. Any officer or employee of the state whose license is on an inactive status due to a possible conflict of interest or other employment requirement; c. The person demonstrates successful completion of a course on topics specifically related to the person’s field of real estate practice; d. An approved real estate instructor requests a waiver for a course the instructor has taught; e. The salesperson or broker demonstrates other extraordinary circumstances. 2. A salesperson or broker is granted additional time by the Commissioner to complete the continuing education con- requirement for license renewal shall complete the tinuing education hours by the deadline or may be subject to disciplinary action. C. Distance learning. 1. Only a school holding a Certificate of Approval shall offer a distance learning course. The school shall obtain course approval from the Department before advertising the course as approved by the Department for credit hours and before issuing Department credit hours for the course to students. 2. The Department shall not approve a distance learning course unless it contains: a. Individual modules of instruction for delivery on a computer or other interactive program; b. At least one learning objective for each module of instruction. The learning objective shall ensure that if all the objectives are met, the entire content of the course is understood; c. A structured learning method to enable the student to attain each learning objective; d. A diagnostic assessment of the student’s performance during each module of instruction; i. The assessment shall measure what the student learned throughout the module of instruction; ii. Include scenario-based questions, and; iii. Assess the comprehension of each concept covered in the module. e. Remediation. i. Repetition of a module if a student is deficient in a diagnostic assessment; and ii. Continuous repetition of the module until the student understands the content material. 3. An approved instructor shall not present any course content that is not current and accurate. 4. An approved instructor or the school administrator shall grade distance learning courses. The instructor or school administrator shall: a. Provide the student with assistance, if required; b. Certify the student has completed each assignment of instruction; and Supp. Administrative Code AND OCCUPATIONS ESTATE DEPARTMENT c. Certify the student is the licensee attending and completing a distance learning course only if the student: i. Completes all required instructional modules, ii. Attends any required hours of live instruction or testing, or both, for a given course; and iii. Passes a final examination. d. Certification of a student means the school is certifying the licensee is the one attending and completing the course. Means of certifying a student may include: i. Two factor authentication; ii. Random Audits of at least 10% of attendance; iii. Direct or Indirect Visual Confirmation. e. Means of certifying a student may not include: i. A unique username and password created by the student; ii. A signed or acknowledged affidavit; iii. Verification of information that is publicly available on ADRE’s website or otherwise publicly available on the internet. 5. As part of its application for approval of a distance learning course, a school shall file a plan with the Department describing how the school will deal with hardware and software failure. Historical Note Adopted effective May 1, 1980 (Supp. 80-3). Amended subsection (F) effective March 13, 1981 (Supp. 81-2). Former Section R4-28-11 renumbered without change as Section R4-28-402 (Supp. 87-1). Amended by deleting subsections (C) and (E) and renumbering accordingly effective March 7, 1988 (Supp. 88-1). Former Section R4-28-402 renumbered to Section R4-28-403, new Section R4-28-402 adopted by final rulemaking at 5 A.A.R. 650, effective February 3, 1999 (Supp. 99-1). Amended by final rulemaking at 6 A.A.R. 1886, effective May 2, 2000 (Supp. 00-2). Amended by final rulemaking at 11 A.A.R. 506, effective March 5, 2005 (Supp. 05-1). Amended by final rulemaking at (November 7, 2025), effective December 13, 2025 (Supp. 25-4). R4-28-403. License Examinations A. The Department shall hold, or contract for, at least one state licensing examination each week. B. A state license examination shall not be returned to the applicant. The applicant shall be notified in person of the results of the examination by the words “passed” or “did not pass.” The results notification for an applicant who did not pass the examination shall also show the score for the examination and the relative score for each content area. C. Qualifying to take or passing a license examination does not issu- constitute a waiver of the Commissioner’s right to deny ance of a license if grounds exist pursuant to A.R.S. § 32-2153 or any other applicable statute. Historical Note Adopted effective May 1, 1980 (Supp. 80-3). Former Section R4-28-12 repealed, new Section R4-28-12 adopted effective August 28, 1986 (Supp. 86-4). Former Section R4-28-12 renumbered without change as Section R4-28-403 (Supp. 87-1). Amended effective February 28, 1995 (Supp. 95-1). Former Section R4-28-403 renumbered to R4-28-404, new Section R4-28-403 renumbered from R4-28-402 and amended by final rulemaking at 5 25-4 December 31, 2025 Arizona TITLE 4. PROFESSIONS CHAPTER 28. STATE REAL A.A.R. 650, effective February 3, 1999 (Supp. 99-1).