Real Estate Education Blog

Blogs Karen's Blog ADRE Update - Changes in Real Estate Licensing Requirements

Posted Jul 29, 2010 5:43 am (10 years ago)

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The Arizona Department of Real Estate distributed an "Information Alert" yesterday, July 28, that included several Arizona Statute changes.  Among the changes are requirements for a fingerprint clearance card for new license applicants, requirements for additional information from license applicants, the authority of the Commissioner of Real Estate to determine categories for Arizona real estate classes required for Arizona real estate license renewal.  

These are a few of the changes that originated in Arizona SB 1219, which becomes effective today, July 29, 2010.  

32-2108.01. License applicants; fingerprint clearance cards; definition
A. Before receiving and holding a license issued pursuant to this chapter, each license applicant shall obtain a valid fingerprint clearance card issued pursuant to section 41-1758.03.
B. The license applicant is responsible for providing the department with a valid fingerprint clearance card.
C. The department shall not issue a license to an original license applicant before receiving a valid fingerprint clearance card pursuant to this section. However, the department shall suspend the license if the fingerprint clearance card is determined to be invalid and an applicant who was issued a license fails to submit a new valid fingerprint clearance card within ten days after being notified by the department.
D. This section does not affect the department's authority to otherwise issue, deny, cancel, terminate, suspend or revoke a license.
E. For the purposes of this section, "license applicant" means:

1. Each original real estate, cemetery and membership camping salesperson and broker applicant pursuant to article 2 of this chapter.
2. Each natural person, or for an entity applicant, any person exercising control of the entity, who applies for an original certificate of approval to operate a real estate school, or for a renewal certificate, any natural person or person exercising control who has not previously submitted a fingerprint card to the department.
3. Any natural person, or for an entity applicant, any person exercising control of the entity, on whom the department has evidence of a criminal record that has not been previously reviewed or evaluated by the department and who applies for a:
(a) License renewal pursuant to section 32-2130.
(b) Public report to:
(i) Sell or lease subdivided lands pursuant to article 4 of this chapter.
(ii) Sell or lease unsubdivided lands pursuant to article 7 of this chapter.
(iii) Sell or lease time-share estates pursuant to article 9 of this chapter.
(iv) Sell membership camping contracts pursuant to article 10 of this chapter.
(c) Certificate of authority to sell cemetery lots pursuant to article 6 of this chapter.

32-2123. Application for license as broker or salesperson
A. Every application for an original license shall be either submitted in writing and signed by the applicant or submitted electronically and contain an electronic or digital identifier that the commissioner deems appropriate. The application shall be accompanied by all applicable fees.
B. An application for an original license as a broker or salesperson shall set forth:
1. The legal name and residence address of the applicant.
2. The applicant's employers and employment history for the immediately preceding ten years and any experience in real estate sales, appraisals, transfers or similar business in which the applicant previously engaged, if the commissioner determines that this information is needed to reasonably evaluate the good moral character of the applicant.
3. The name and place of business of the applicant's present employer, if any.
4. Whether the applicant has ever been convicted of a felony and, if so, the nature of the felony, where and when committed and the disposition of the conviction, or whether the applicant has been disbarred or suspended from the practice of law.
5. Whether the applicant has ever been refused a broker's or salesperson's license or any other occupational license in this or any other state, whether the applicant's license as a broker or salesperson has been revoked or suspended in this or any other state or whether the applicant has had any other occupational or professional license, certificate or registration revoked or suspended in this or any other state.
6. The name of any corporation, company or partnership that is or ever has been licensed by the department in which the applicant exercised any control.
7. If the applicant is a natural person, the applicant's social security number. If the applicant, due to bona fide religious convictions or other bona fide reasons that the applicant documents on the application to the satisfaction of the commissioner, does not have a social security number, the applicant may provide the applicant's federal tax identification number with the application. The state real estate department shall use the applicant's social security number or federal tax identification number to aid the department of economic security in locating noncustodial parents or the assets of noncustodial parents, and for no other purpose.
C. An application for a license as a broker additionally shall set forth:
1. The name under which the business is to be conducted.
2. The situs and mailing address of the applicant's place of business, or if more than one, the situs and mailing addresses of each.
D. An applicant for a broker's or salesperson's license shall provide information that the commissioner determines is reasonably necessary to establish the character of the applicant. The information may include but shall not be limited to:
1. Prior criminal records.
2. A valid fingerprint clearance card issued pursuant to section 41-1758.03.
3. An affidavit setting out whether the applicant has participated in, operated or held an interest in any land development company which has filed, or is subject to, a petition under any chapter of the federal bankruptcy act.
E. Each person licensed pursuant to this article, whether the license is active or inactive, shall have available for the licensee's use a current copy of the department's statutes, rules and annotations pertaining to real estate laws. Failure to comply with this requirement shall not be deemed grounds for a civil penalty or for denial, suspension or revocation of a license.

32-2129. Advance payment of license fees
A. All license fees shall be paid in advance and shall be the same regardless of the time of the year the license is issued.
B. If the license fees or other fees that relate to licensure are paid with a check that is not honored by the financial institution on which it is written, the department may deny or cancel the license.
C. An original license shall be for a period of two years up to and including the last day of the month in which the license was granted. A renewal license shall be effective as of the date of issuance, but no earlier than the first day after the expiration of the previous license. Regardless of the date of issuance, the renewed license is for a two year period beginning on the first day after the expiration of the previous license.
D. License applicants shall pay fees as specified in this chapter.

32-2130. Renewal of licenses; education requirements
(L10, Ch. 156, sec. 1 & Ch. 166, sec. 6. Eff. 1/1/11)
A. A license may be renewed in a timely manner by filing an application for renewal in the manner prescribed by the commissioner, by paying the renewal fee specified in this chapter and by presenting evidence of attendance at a school certified by the commissioner during the preceding license period of twenty-four credit hours, or a lesser number of credit hours prescribed by the commissioner, of real estate oriented continuing education courses prescribed and approved by the commissioner. The total number of credit hours shall be accrued at a rate of twenty-four credit hours during each twenty-four month period of licensure. The department shall maintain a current list of approved courses. The commissioner may waive all or a portion of the continuing education requirement for good cause shown.
The commissioner shall determine by rule the content of the twenty-four renewal credit hours. The twenty-four renewal credit hours may include the commissioner's current topics, including short sales. For the purposes of this subsection, "short sales" means real estate transactions in which the sales price is insufficient to pay the loan encumbering the property in addition to the costs of sale and the seller is unable to pay the difference.
B. If an applicant is renewing a license within one year after it expired, the applicant may apply continuing education hours completed after the expiration toward the continuing education required for renewal.
C. Each renewal application shall contain, as applicable, the same information required in an original application pursuant to section 32-2123.
D. Cemetery brokers and salespersons and membership camping brokers and salespersons are exempt from the educational requirements of this section.
E. Nothing in this section requires a licensee to attend department produced or sponsored courses if approved courses are otherwise available.
F. Between the expiration date of the license and the date of renewal of the license, the rights of the licensee under the license expire. While the license is expired it is unlawful for a person to act or attempt or offer to act in a manner included in the definition of a real estate, cemetery or membership camping broker or salesperson. If the license of an employing broker expires under this subsection, the licenses of persons who are employed by the employing broker shall be severed from the employing broker on the license expiration date of the employing broker. These persons may be rehired on renewal of the employing broker's license. The department shall terminate a license that has been expired for more than one year.
G. Except as provided in section 32-4301, no more than one year after the license expiration date, the department shall renew a license without requiring the applicant to submit to an examination if the applicant held a license that was not canceled or suspended at the time of expiration. Except as provided in section 32-4301, the license period for a license renewed pursuant to this subsection commences the day after the expiration date of the expired license. Except as provided in section 32-2131, subsection A, paragraph 4 or 6, an applicant whose license has been terminated or revoked does not qualify for license renewal.
H. Any employee or immediate family member of any employee of this state who, pursuant to section 32-2110 or any other law, rule or requirement, is prohibited from using a license issued under this chapter shall have, on the request of the employee or family member, the license placed on inactive status, shall have the right to renew the license and shall not be required to pay further fees until the employee or family member is again eligible to use the license. Renewal fees for the license shall not be required for only as long as the employee or family member is prohibited from using the license.
I. The department shall not renew the license of a person who has been convicted of a felony offense and who is currently incarcerated for the conviction, paroled or under community supervision and under the supervision of a parole or community supervision officer or who is on probation as a result of the conviction. This subsection does not limit the commissioner's authority and discretion to deny the renewal for any other reason pursuant to this chapter.

32-2137. Cancellation of active license
On request of an active licensee, the department may cancel that person's license if both of the following are true:
1. The licensee is not presently under investigation by the department.
2. The department has not commenced any disciplinary proceeding against the licensee.

For more information on these changes and others, visit the Arizona Department of Real Estate website at