Auditing & Investigations
The ADRE Auditing & Investigations divisions work hand-in-hand to ensure compliance and protect the public.
Our Auditing team proactively examines real estate brokerages and developers to ensure compliance with financial record-keeping, trust account management, and proper supervision, aiming to prevent issues and ensure adherence to regulations before complaints arise.
Our Investigations team reactively probes complaints of alleged misconduct or violations of real estate law by licensees, gathering evidence through document review and interviews to determine if disciplinary action is warranted.
Frequently Asked Questions - Auditing
The purpose of an Audit is to ensure a licensed entity is in compliance with the Arizona Revised Statute Title 32 Chapter 20 and Arizona Administrative Code Title 4 Chapter 28.
A spot check is phase 1 of an audit. It goes over the main components of the brokerage to ensure compliance with the law.
A Trust Compliance Review goes over the Trust Accounts to ensure they are in compliance with A.R.S. § 32-2151.
As a business owner you may use any Trust Accounting software. It is your responsibility to ensure your accounting meets the requirements of A.R.S. § 32-2151 and A.R.S. § 32-2171 through 32-2176, and Trust Accounting Laws.
Fill out the 'Trust Account Activity Notification' form with signature cards and submit them through the Message Center.
Fill out the 'Bank Account identification' Form. Submit it through the Message Center.
You have 10 days from the change to update the Department with the most current contact information and address.
Frequently Asked Questions - Investigations
The Department of Real Estate may investigate licensed entities or agents for their licensed real estate activity and any unlicensed real estate activity. The Department is unable to award damages to a party or invalidate a contract.
To file a complaint, you need to fill out the complaint form and supply all documentation that you have in regards to the case. This should be submitted through the Message Center. If you need assistance filing a complaint please contact the Department through the Message Center or call the investigation team at (602) 771-7700
The Complaint and documentation is reviewed by the Department. If the complaint is within the jurisdiction of the Department, the case will be assigned to a Compliance Specialist. You will receive a message from the Department with updates on the status of the complaint when the investigation is opened, or be provided with other resources if it is outside the Department's jurisdiction.
The Department will reach out at least at the opening, closing, or transfer of the case. If information is needed during the investigation please be sure to respond to the compliance specialist promptly.
Please note the Department may look at the actions of a licensee that may be involved in the lease or property management of a property. However, the Department does not regulate the Arizona Residential Landlord Tenant Act or Arizona Manufactured Home Landlord Tenant Act. Both documents may be found on the Department of Housing website.
Please seek legal guidance on these areas.
Commission Disputes between licensee's or between a broker and their licensee are not handled by the Department. Per A.R.S. § 32-2152 the Department has no jurisdiction in this area. You would need to seek legal advice and go through the courts.
Please seek legal advice on what you are looking to do in a property management role without a license. Also, refer to A.R.S. § 32-2121 for licensing exceptions.