basic-page-banner-image

Agreement Requirements

Agreement Requirements

Listing and Buyer Employment Agreements

  1. Written in clear and unambiguous language.
  2. Fully set forth all material terms.
  3. Definite duration; showing dates.
  4. Be signed by all parties. [ ARS § 32-2151.02(A)(1-4) ]

Assignable with written consent of all parties. [ ARS § 32-2151.02(B) ]

Property Management Agreements

SHALL

  1. State all material terms and conditions of the management firms services, obligations, duties and responsibilities to the owner.
  2. Be signed.
  3. Specify a beginning and ending date.
  4. Contain a cancellation provision acceptable to both parties.
  5. Provide for the manner of disposition of all monies collected, (one of two choices) [ ARS § 32-2174(B) ]
    • Deposit in the broker's trust account or
    • Directly into the owner's account
  6. Specify the type and frequency of status reports to the owner.
  7. State the amount and purpose of reserve (owner's) funds held by the broker.
  8. State disposition and/or allocation of interest earned on trust monies.
  9. State the terms and conditions of compensation paid for services. [ ARS § 32-2173(A)(1) ]

 

MAY

  1. Automatically renew, if a notice is sent at least 30 days before the renewal date.
  2. Provide for reasonable liquidated damages or cancellation fees.
  3. Allow for an unlicensed person in the direct employ of the broker to withdraw funds or be a signer on the property management trust account.
  4. Require dual signatures on property management checks.
  5. Contain any other provisions not in conflict with previous requirements. [ ARS § 32-2173(A)(2) ]

Is assignable with the written consent of the parties [ ARS § 32-2173(A)(1)(j) ]

Be aware of the requirements of ARS § 32-2173 which places limits on how long trust account monies and other owner possessions can be held by the property managing broker on termination of the agreement [ ARS § 32-2173(B) and (C) ].

Questions?

Review our frequently asked questions about the auditing process and more.

VIEW THE FAQ

Frequently Asked Questions

What is the purpose of the Broker Audit Declaration?

The Broker Audit Declaration serves two functions. (1) To provide information to the Department’s Auditing Staff about the broker’s real estate practice since the last renewal period; and, (2) To provide the broker with an overview of the current Arizona Revised Statutes and Commissioner’s Rules applicable to licensed brokers and confirm that the broker is complying with those statutes and rules.

Is the broker required to submit the Audit Declaration Form with the broker's license renewal or employing broker's (entity) license renewal?

A designated and/or self-employed broker is required to complete and submit a Broker Audit Declaration form prior to or with the broker’s license renewal, pursuant to the Commissioner’s Rule R4-28-303(A)(2)(f). A Broker Audit Declaration form is not required for the renewal of an entity license.

If a broker is semi-retired and doesn't use the real estate license often, does the broker have to complete and submit a Broker Audit Declaration Form with the broker's license renewal?

Yes, any designated and/or self-employed broker with an active license must complete the Broker Audit Declaration as part of the broker’s license renewal process regardless of whether or not real estate business has been conducted. If real estate business has not been conducted, most of the answers will be “N/A”.

If the broker changes from a designated broker to an associate broker, is the broker still required to submit an Audit Declaration Form?

Yes, but only if the broker has not completed and submitted a Broker Audit Declaration Form within the last twelve (12) months.

Late Breaking News Sign Up