A Message From Commissioner Judy Lowe
February 22, 2017
Arizona Department of Real Estate Commissioner
As real estate business models evolve nationwide, and Arizona’s market continues to grow, Teams will remain an established practice within real estate brokerages. Here are a few helpful points you may reference when developing or evaluating your Team.
“Teams” within the Arizona real estate industry are not officially recognized in either Arizona Statute or Rule, however the existing Arizona statutes and rules that govern all real estate licensees impact Teams.
Existing license law, rules, and policy provide the framework for how Teams are formed and function. An Employing Broker’s Designated Broker (DB) is responsible for the acts of all actively licensed Associate Brokers and Salespersons within a Team. Unlicensed assistants may work with Teams.
Note that licensees must never create the misrepresentation that the Team is an independent entity or separate from the Employing Broker, A.A.C R4-28-502; A.R.S.§ 32-2153 (A) (4), (8). The same rules that apply to advertising Teams also apply to individual licensees. ALL advertising must clearly and prominently display the name of the Employing Broker (Brokerage name) as licensed with ADRE.
The Employing Brokers Name must be: Clearly legible on the top or bottom of a flyer; Visible on the website front page, and each subsequent page without necessity of scrolling down, regardless of screen size; stated on social media, unless not practical, then the ad information must be linked to the Employing Broker’s name, which is displayed clearly and prominently.
The Employing Broker shall not display any name at designated places of business (branch offices) named in the Broker’s license other than the name under which the Broker is licensed. An additional license is required for each branch office; branch office signs must conform to the provisions for the principal office and shall include the designation “branch office” A.R.S. § 32-2127(B). All members of a Team must work for the same DB.
Compensation definition = Any fee, salary, commission, money or other valuable consideration for services rendered or to be rendered, including the promise of consideration whether contingent or not, A.R.S. § 32-2101. The Broker cannot pay the team leader and have the team leader distribute the payments to the other licensees on the Team.
Let’s remember that each member of the Team must sign all documents with their own name, and UNLICENSED ASSISTANTS DO NOT COMPLETE TRANSACTION DOCUMENTS. Finally, the ADRE does not monitor the status/classification of Unlicensed Assistants as Independent Contractor or Employee… the IRS and Labor Commission do.
Thank you to real estate professionals and all you do for the economy of the great state of Arizona.