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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
real estate; employees; rent collection.
Purpose
Allows an unlicensed person to collect rent and related fees on behalf of a licensed real estate broker or salesperson as part of the person's clerical duties. Directs the State Real Estate Commissioner (Commissioner) to require a person applying for a real estate, cemetery or membership camping broker or salesperson license to pass an examination specific to Arizona real estate laws.
Background
The Commissioner issues real estate, cemetery or membership camping broker or salesperson licenses and determines if applicants meet statutory experience, education and competency requirements (A.R.S. § Title 32, Ch. 20). The Commissioner must verify through examination that an applicant for a real estate, cemetery or membership camping broker or salesperson license has an understanding of the: 1) obligations between principal and agent; 2) prescribed practices, principles and ethics of the respective discipline; and 3) Arizona real estate laws. A broker's license examination must have a broader scope and be more stringent than the salesperson's license examination (A.R.S. § 32-2124).
A person must have real estate broker license or real estate salesperson license to act in the capacity of a real estate broker (A.R.S. § 32-2122). A real estate broker is a person who, for another and for compensation, engages in outlined transactions and acts relating to real estate, businesses and business opportunities, or timeshare interests, including a person who collects, or offers, attempts or agrees to collect, rent for the use of real estate, businesses and business opportunities or timeshare interests (A.R.S. § 32-2101).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
2. Directs the Commissioner to require a person applying for a real estate, cemetery or membership camping broker or salesperson license under reciprocity licensure laws to pass an examination specific to Arizona laws relating to real estate before issuing the license.
3. Excludes, from the definition of real estate broker, a person who:
a) is not a licensee;
b) works for a real estate broker or real estate salesperson;
c) collects rent and related fees in person on behalf of the real estate broker or real estate salesperson for the use of real estate as part of the person's clerical duties; and
d) provides a receipt upon payment.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
Prepared by Senate Research
January 25, 2021
LB/MC/gs