Duties and Powers of the Arizona Real Estate Commissioner and

Duties and Powers of the Arizona Real Estate Commissioner and Advisory Board Flashcards Members of the Arizona Real Estate Advisory Board The Arizona Department of Real Estate regulates real estate licensing and oversight of real estate licensees in Arizona. The real estate commissioner is the head of the department, and the Real Estate Advisory Board is a 10-member panel that advises the commissioner on real estate matters.InvestigationsAs outlined in ARS 32-2108, the commissioner has the power to open an investigation into formal complaints brought against anyone performing real estate brokerage services in Arizona. The commissioner oversees the department's certification and enforcement unit, which does

the actual investigating. Investigation includes:-Examining

records and other physical evidence-Taking testimony-Issuing subpoenas of witnesses and documents/other evidence Ineligible PartiesThe fund will NOT reimburse damages or losses resulting

from, among other things:-Transactions for property outside

Arizona-Tenant conduct or neglect-Vandalism-Natural causes (e.g., storms, flooding)-Post-judgment interest-Undocumented transactions Real Estate CommissionerUnder ARS 32-2104, the governor appoints the real estate commissioner. Candidates must have at least five years' experience in real estate, title insurance, banking, or mortgage brokerage and at least three years' administrative experience. At the time of appointment-and for the duration of service-the commissioner must not have a financial interest in a brokerage firm or act as a broker, salesperson, or agent.Real Estate Advisory BoardMany states call their state real estate department panels "commissions"-not so in Arizona. In Arizona, the Real Estate Advisory Board functions as the liaison between the public and the real estate commissioner.Board MakeupAs per ARS 32-2104, advisory board consists of 10 governor-appointed members who serve 6yr terms.Membership terms are staggered so that 3 members' terms expire on January 31 of each odd-numbered year. Among thems, the board members elect a chairperson every year.No more than five current board members may be from the

same county. The 10 members break down into:-2 who are

real estate brokers with at least five years' experience in

Arizona (no more than one member from any one county)-2 who have been engaged in residential real estate brokerage for the 5 years immediately preceding appointment-1 who has been engaged in multi-family residential rental brokerage as a licensed broker for the 5 years immediately preceding appointment-2 who are primarily property sub-dividers-3 members of the general public who do not hold a real estate license in the state and aren't a blood relative of a real estate licensee in the stateAny appointment made to fill a vacancy that occurs outside of the usual term expiration must be filled by appointment, and only for the remaining portion of that original term. The board provides recommendations on specific issues or questions as it deems necessary or as requested by the commissioner. Once a year, the board presents the governor with an evaluation of the commissioner and the real estate department. Members aren't compensated for their work with the board, but are allowed reasonable subsistence and travel expenses as outlined in Arizona law.Arizona Real Estate Recovery FundThe recovery fund reimburses consumers' actual, out-of-pocket losses-including attorney fees and court costs-that are directly related to a real estate transaction.

Consumers are eligible to collect from the fund if:-The

licensee performed real estate activities that require a license-The licensee was a principal in a transaction and engaged in fraud or misrepresentation and the consumer's

reliance on the licensee caused damageAny time someone applies for a real estate or cemetery salesperson's license, they pay a $10 fee into the recovery fund. Broker applicants pay $20 into the fund.If, on June 30 of any year, the fund's balance falls below $600,000, renewing licensees must pay into the fund ($20 for brokers and $10 for salespersons) until it's brought back up to the $600,000 threshold.Consent Orders, and Cease and Desist Orders Under A.R.S. 32-2153.01, the commissioner has the power to issue consent orders, which are typically voluntary agreements worked out between two or more parties to a dispute, such as when a licensee commits a license law violation and the licensee wishes to appeal the agency action or contest the case. When a licensee and the

commission are in a dispute, the commissioner might issue a mutually agreed-upon consent order as a sort of compromise, with terms that the commissioner feels are appropriate, such as issuance of a provisional license with specific conditions.A.R.S. 32-2154 states that the commissioner may also issue cease and desist orders against parties who are engaged in or are preparing to engage in an act that would constitute a real estate violation. Such orders are meant to stop the parties from engaging in said violations, and if they've caused harm, to make restitution or take appropriate action to remedy the harm within a reasonable time.If subjects of a cease and desist order continue to engage in the violation-related acts, the commissioner may bring court action against them.Determining Moral CharacterPart of the commissioner's duties are to determine the moral character of a real estate license applicant or current licensee. In making said judgment, the commissioner may

request:-Criminal records-Fingerprinting cards-An affidavit

given by the person in question asking whether the