Arizona Contracts
Arizona regulates how licensees handle contracts, compensation, and records. This chapter reviews rules that govern commissions, recordkeeping, and the contract practices unique to working under Arizona license law.
Compensation Through the Broker
Under Arizona law, a salesperson may be paid only through their employing (designated) broker, never directly by a buyer, seller, or another brokerage. This rule keeps the broker responsible for supervising licensees and accounting for funds. A salesperson who accepts a commission directly from a client violates license law and risks disciplinary action from the ADRE.
Recordkeeping Requirements
Arizona brokers must retain transaction records, including contracts, disclosures, and trust account documents, for at least five years so the ADRE can inspect them during audits or investigations. The designated broker is responsible for maintaining complete and orderly files. Failing to keep required records is a common source of violations, so licensees should document transactions carefully and turn paperwork over to the broker promptly.
Contract Practices and Limits
Salespersons may fill in approved preprinted forms but must not draft complex legal provisions or give legal advice, referring clients to attorneys when needed. Contracts must be complete, accurate, and delivered to the parties, and licensees must provide copies of documents that consumers sign. Following these practices protects consumers and keeps the licensee within the authority granted under Title 32 and the Commissioner's Rules.