ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: COM DP 10-0-0-0

HB 2172: real estate licensees; employers; compensation

Sponsor: Representative Wilmeth, LD 15

Caucus & COW

Overview

Allows a real estate licensee to receive compensation from an employer to which the licensee is not licensed to if specified conditions are met.

History

A licensed real estate broker engages in selling, negotiating offers to sell and listing for sale real estate properties. A broker employs licensed real estate salespersons who, on behalf of a broker, engage in real estate transactions. A licensee is statutorily restricted to receive compensation only from a licensed broker to whom the licensee is licensed (A.R.S. § 32-2155).

In order to qualify for a real estate license an applicant must be at least 18 years of age, show evidence satisfactory to the Commissioner of the Department of Real Estate of honesty, truthfulness, good character and competency and has not had a real estate license denied within one year or revoked within two years immediately preceding the application (A.R.S. § 32-2124).

Statute outlines criteria for denial, revocation or suspension of a real estate license, which includes accepting compensation as a licensee from any person other than: 1) the licensed broker the licensee is licensed to; 2) the licensed professional corporation of which the licensee is an officer and shareholder; or 3) the licensed professional limited liability company of which the licensee is a member or manager (A.R.S. § 32-2153).

Provisions

1. Allows a real estate licensee to receive compensation from an employer, other than the employing broker that the licensee is licensed to, if all of the following apply:

a) The employer holds a license;

b) The licensee is the employer's employee and receives a federal W-2 form and tax statement;

c) The employer has the same employing broker as the licensee; and

d) The employer receives written permission from the employing broker to pay the licensee. (Sec. 3)

2. Clarifies the criteria for denial, suspension or revocation of a license for accepting compensation from a person who is not authorized to provide compensation. (Sec. 2)

3. Makes technical and conforming changes. (Sec. 1, 2, 3)

6. ---------- DOCUMENT FOOTER ---------

7. HB 2172

8. Initials PRB Page 0 Caucus & COW

10. ---------- DOCUMENT FOOTER ---------