Ariz. Admin. Code § R4-28-302 - Employing Broker's License; Non-resident Broker

A. A person applying for an employing broker's license shall provide the following information:

1. The name, business address, telephone number, fax number and e-mail address, if any, and designated broker's name, license number and expiration date, and the signature of the designated broker;

2. Whether the broker is an individual, a sole proprietorship, corporation, partnership, limited liability company, professional corporation or professional limited liability company;

3. The mailing address, if different than the business address;

4. The d.b.a. name, if applicable;

5. The bank name and location of each of the broker's trust accounts, if any; and

6. The name and number of the trust account.

B. Partnership.

1. When the applicant is a partnership, the applicant shall name a broker to serve as designated broker:

a. The designated broker shall be a partner of the general partner if the general partner is a partnership.

b. The designated broker shall be a corporate officer of the corporate partner if the general partner is a corporation.

c. The designated broker shall be a member of the member-managed limited liability company or manager of the manager-managed limited liability company if the general partner is a limited liability company.

d. A limited partner of a partnership shall not be designated broker for the partnership.

2. In addition to the information provided in subsection (A), an applicant for an employing broker's license as a partnership shall, if applicable, provide:

a. The name and address of each partner, and the name of any other person with a beneficial or membership interest in the partnership;

b. An agreement signed by all partners, stating the name of the partner appointed to act as the designated broker for the partnership;

c. A written statement signed by the designated broker stating that:

i. The partnership has applied for a broker's license in Arizona;

ii. Each partner has read the complete application on the named partnership as submitted to the Department;

iii. All the information contained in the application is true;

iv. Each general partner is qualified to do business in Arizona; and

v. The name of the partnership complies with A.R.S. § 29-245 and subsections (H) and (I), and is not likely to be misleading or confusing;

d. A copy of the partnership agreement and any amendments;

e. A copy of the application for partnership registration stamped "Received and Filed" by the Arizona Secretary of State; and

f. Any other information required by the Department to verify the applicant's qualifications.

C. Corporation. In addition to the information provided in subsection (A), an applicant for an employing broker's license for a corporation shall provide:

1. The name and address of each officer and director, and the name and address of each shareholder controlling or holding more than 10% of the issued and outstanding common shares, or 10% of any other proprietary, beneficial, or membership interest in the corporation;

2. A copy of the Articles of Incorporation and any amendments stamped "Received and Filed" by the Arizona Corporation Commission. If more than one year has elapsed between the date the Articles were stamped "Filed" by the Arizona Corporation Commission and the application for the corporate license, a Certificate of Good Standing from the Arizona Corporation Commission is required;

3. A corporate resolution stating that the designated broker was elected or appointed as a corporate officer, naming the office held, and stating that the individual was appointed to act as designated broker for the corporation;

4. A written statement signed by the designated broker stating that:

a. The corporation has applied for a broker's license in Arizona;

b. Each officer and director has read the complete application on the named corporation as submitted to the Department;

c. All the information contained in the application is true;

d. The name of the corporation complies with A.R.S. § 10-401 and 4 A.A.C. 28, Article 10, and is not likely to be misleading or confusing; and

e. Each corporation is qualified to do business in Arizona; and

5. Any other information required by the Department to verify the applicant's qualifications.

D. Limited liability company. In addition to the information provided in subsection (A), an applicant for an employing broker's license for a limited liability company shall provide:

1. The name and address of each member and manager, and the name and address of any person controlling or holding more than 10% of the membership interest in the limited liability company;

2. A copy of the Articles of Organization and any amendments stamped "Received and Filed" by the Arizona Corporation Commission. If more than one year has elapsed between the date the Articles were stamped "Filed" by the Arizona Corporation Commission and the application for the limited liability company license, a Certificate of Good Standing from the Arizona Corporation Commission is required;

3. A company resolution signed by all members stating whether management of the limited liability company is established as manager-controlled or member-controlled and the name of the member or manager appointed to act as the designated broker;

4. A written statement signed by the designated broker stating that:

a. The limited liability company has applied for a broker's license in Arizona;

b. Each member and manager has read the complete application on the limited liability company as submitted to the Department;

c. All of the information contained in the application is true;

d. The name of the limited liability company complies with A.R.S. § 29-602 and 4 A.A.C. 28, Article 10, and is not likely to be misleading or confusing; and

e. The limited liability company is qualified to do business in Arizona.

5. A copy of the operating agreement and any amendments; and

6. Any other information required by the Department to verify the applicant's qualifications.

E. Foreign entity. In addition to the requirements in this Section, the Department may require any of the following information from an entity applying for a broker's license if a partner, member, officer, or director of the entity is domiciled in another state:

1. The agreement and plan of merger;

2. The Certificate of Good Standing;

3. The Certificate of Merger on file in the state in which the applicant is domiciled;

4. The Certificate of Merger on file with the Arizona Corporation Commission;

5. A filed and stamped Articles of Merger;

6. A filed and stamped application for registration of the foreign limited liability company, foreign corporation, or partnership;

7. Any other information required by the Department to verify the applicant's qualifications.

F. Self-employed broker. In addition to the information provided in subsection (A), any person applying as a self-employed broker shall provide a sworn statement attesting that the applicant is the sole proprietor of the business.

G. If any information prescribed in subsections (A) through (F) changes, the designated broker shall, within 10 days after the change, file a supplemental statement in writing with the Department listing the change and include the appropriate fee, if any.

H. The Department shall not license an employing broker or authorize an employing broker to do business under a dba name similar to that of any employing broker already licensed if the name would cause uncertainty or confusion to the public. If there is a conflict of names between two employing brokers, the Commissioner shall require the employing broker seeking licensure to supplement or otherwise modify the broker's name.

I. The Department shall not license an employing broker under more than one dba name and a person shall not conduct or promote real estate business under any name other than the name under which the person is licensed.

J. A broker shall not employ a salesperson or associate broker and allow the salesperson or associate broker to establish and carry on a brokerage business if the broker's only interest is the receipt of a fee for the use of the license and the broker does not exercise supervision over the salesperson or associate broker.

K. Change of designated broker.

1. To resign as an employing broker's designated broker a broker shall submit to the Department a copy of the broker's letter of resignation and shall return the licenses issued to the designated broker and the employing broker to the Department.

2. A licensed entity may remove its designated broker by submitting to the Department a copy of the partnership agreement, corporate or company resolution removing the broker and returning to the Department the licenses issued to the employing broker and designated broker.

3. The employing broker whose designated broker has resigned or been removed shall cease conducting business until the employing broker has complied with subsection (K)(4).

4. An employing broker whose designated broker has resigned or been removed may continue business without interruption if the incoming designated broker on the same day as, or the next business day following, the departure or removal of the outgoing designated broker:

a. Completes, signs, and submits the Change Form as prescribed in R4-28-303; and

b. If the entity is a corporation or limited liability company, submits a resolution appointing the new broker to act on its behalf; or

c. If the entity is a partnership, submits an amendment to the partnership agreement naming the new broker to act on its behalf.

L. Non-resident employing broker.

1. An employing broker that holds a non-resident license and maintains a principal office outside this state shall:

a. Maintain a trust account or licensed escrow account situated in Arizona for monies received from Arizona transactions;

b. Maintain, in Arizona, copies of all documents pertaining to any Arizona transactions handled by the broker;

c. Provide a written statement to the Department identifying the name, address, and telephone number of the person residing in Arizona, such as a statutory agent or attorney, who has possession of the records; and

d. Identify the physical location of the records.

2. An employing broker that holds a non-resident license and employs a licensed salesperson or broker within the state shall:

a. Establish an office in Arizona and appoint a branch manager; and

b. Provide a statement describing how the licensed employee shall be supervised.

3. An employing broker who holds a non-resident license shall notify the Department within 10 days of any change to any information required under this Section.

Notes

Ariz. Admin. Code § R4-28-302

Adopted effective May 1, 1980 (Supp. 80-3). Amended effective March 13, 1981 (Supp. 81-2). Correction, Supp. 80-3 should read Adopted effective May 1, 1980 (Supp. 83-3). Amended subsection (B) effective August 1, 1986 (Supp. 86-4). Former Section R4-28-06 renumbered without change as Section R4-28-302 (Supp. 87-1). Amended effective February 28, 1995 (Supp. 95-1). Former Section R4-28-302 repealed, new Section R4-28-302 adopted by final rulemaking at 5 A.A.R. 650, effective February 3, 1999 (Supp. 99-1). Amended by final rulemaking at 11 A.A.R. 506, effective March 5, 2005 (Supp. 05-1).