Licensee Duties
Arizona licensees operate under a designated broker and must follow specific rules about supervision, fund handling, and conduct. This chapter covers the employment relationship and the duties that keep transactions honest and funds protected.
Employment Under a Designated Broker
Every Arizona salesperson must be employed by and act under a designated broker, who is responsible for supervising the licensee's activities. A salesperson cannot operate independently or negotiate transactions outside the broker's authority. The broker reviews contracts, manages advertising, and ensures compliance, so the licensee should keep the broker informed and follow office policies and the Commissioner's Rules.
Handling Trust Funds
When a salesperson receives earnest money or other client funds, they must promptly deliver the funds to the employing broker, who deposits them into a trust (escrow) account or handles them as the contract directs. Commingling client funds with personal or business operating accounts is prohibited and is a serious violation. Proper trust account handling protects consumers and is closely monitored by the ADRE.
Standards of Conduct
Licensees must act with honesty, competence, and diligence, avoiding fraud, misrepresentation, and conflicts of interest that are not disclosed. They must disclose known material facts and keep clients informed of developments. Continuing education keeps skills current, and adherence to Title 32 and the Commissioner's Rules is mandatory. Violations can result in fines, suspension, or revocation of the license.