Section R4-28-303. License Renewal; Reinstatement; Changes of Personal Information, License, or License Status; Professional Corporation or Professional Limited Liability Company Licen- sure; Administrative Severance

A.      Renewal.

1.        If a salesperson or broker makes a timely and sufficient application for license renewal or a new license with ref- erence to any activity of a continuing nature, the existing license does not expire until the application has been finally determined by the Department, and, in case the application is denied or the terms of the new license lim- ited, until the last day for seeking review of the Commis- sioner’s order or a later date fixed by order of the reviewing court.

2.        Any salesperson or broker applying for a license renewal shall submit the following information on the Application for License Renewal form:

a.         Any change or correction to the applicant’s licensing information;

b.        Whether the renewal application is late;

c.         If the renewal is for an active license and is filed in paper format, the Department shall require the appli- cation to include the date and signature of the desig- nated broker, authorized branch office manager, or authorized designee under A.R.S. § 32-2127(D). If signed by a branch manager or designee, the branch manager or designee shall attach a copy of the authorization or designation;

d.        The signature of the applicant, attesting to the truth- fulness of the application information;

e.         A completed certification questionnaire, providing details and supporting documents for any affirma- tive response not previously disclosed in writing to the Department concerning judgments, orders, pro- fessional licenses, or convictions, as required under R4-28-301(A).

f.         To renew as designated broker for an employing broker, the designated broker shall complete and submit a signed Broker Supervision & Control Audit Declaration for the sole proprietorship or entity on whose behalf the broker acts as designated broker. The completed declaration shall:

i.         Be dated and filed before or with the broker’s renewal application, and submitted to the Department no earlier than 90 days before the broker’s license expiration date;

ii.        Be in the form prescribed by the Department;

iii.      State the broker’s compliance or non-compli- ance with, or the non-applicability of, specified statutes and rules; and

iv.       Identify all of the broker’s property manage- ment and trust accounts.

B.       Late renewal. In addition to the information required in sub- section (A), any person applying for renewal after the date of license expiration shall specify whether the person conducted unlawful license activities as described in R4-28-306.

C.      Reinstatement.

1.        Any salesperson or broker applying for license reinstate- ment under A.R.S. § 32-2131 shall, in addition to the requirements in R4-28-301(A), submit the following information on the Application For Reinstatement form:

a.         The type of license and status requested;

b.        The applicant’s legal name, business address, and telephone number;

c.         Whether the license was suspended, canceled, termi- nated, or revoked, and the date of and reason for the action;

d.        The license number of the applicant;

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

f.         The name, address, and telephone number of the employing broker, if applicable;

g.        The employer’s trade or d.b.a. name, if any;

h.        The date of the application; and

i.         The signature of the applicant attesting to the above information and that the applicant is aware of the provisions in A.R.S. §§ 32-2131, 32-2153, and 32- 2160.01.

2.        If the license was active at the time of suspension, cancel- lation, revocation, or termination, the applicant shall pro- vide the information required under R4-28-306.

D.      A salesperson or broker shall notify the Department in writing within 10 days of any change in the individual’s personal information or qualifications. The salesperson or broker shall

include in the notice the individual’s name, signature, license number, and:

1.        If disclosing information required under R4-28-301, such as a criminal conviction, adverse judgment, denial or restriction of or disciplinary action against a professional or occupational license, or recovery fund payment on the person’s behalf, a written statement providing detailed information and, upon request by the Department, the supporting documentation identified in R4-28-301(A)(2);

2.        If requesting a change of personal name, written notice stating the prior name and new name, supporting docu- mentation for the change, and applicable fee;

3.        If changing residence address or residential mailing address, written notice stating the prior address, new address and the date of the change;

4.        If changing residence telephone number or providing an additional telephone number or e-mail address, written notice of the prior and current number or e-mail address; or

5.        If becoming licensed as a professional corporation or pro- fessional limited liability company, or changing licensure as a professional corporation or professional limited lia- bility company, the information required under subsec- tion (F).

E.       A designated broker shall notify the Department in writing within 10 days of any change in the employing broker’s quali- fications under R4-28-301, and shall provide notice of any proposed change in the employing broker’s business informa- tion under this Section. An employing broker shall not conduct business under information described in subsections (E)(2), (3), (7), (9), (12), or (13) until the change is approved by the Department. The designated broker shall include in the notice the designated broker’s name and signature, the employing broker’s legal name, and:

1.        If disclosing information required under R4-28-301 such as an adverse judgment, denial, or restriction of or disci- plinary action against a professional or occupational license, or recovery fund payment on the person’s own behalf or on behalf of any officer, director, member, man- ager, partner, owner, trust beneficiary holding 10 percent or more beneficial interest, stockholder owning 10 per- cent or more stock, or other person exercising control of the employing broker, file with the Department a written statement within 10 days of the occurrence, providing detailed information and, upon request by the Depart- ment, the supporting documentation identified in R4-28- 301(A)(2);

2.        If changing the employing broker’s legal name, written notice stating the current name and proposed name, sup- porting documentation, and applicable fee;

3.        If changing the employing broker’s dba name, written notice stating the current dba name, if any, the proposed dba name, and applicable fee;

4.        If changing the employing broker’s physical address, changing or adding a business mailing address, or chang- ing the address of any branch office, written notice within 10 days of the change stating the prior address and new address, return all current licenses issued to the former address, and pay the applicable fee;

5.        If changing business telephone number, written notice within 10 days of the change, providing the prior and cur- rent number. The broker may provide additional tele- phone numbers or e-mail addresses;

6.        If changing the structure or membership of the employing broker  as   provided  in  A.R.S.  §   32-2125  (G),  written

notice within 10 days of the change including supporting documentation identified in R4-28-302;

7.        If changing  branch office managers at  an  established branch office of the employing broker, or changing the authority delegated to  the branch  office manager,  the application form, applicable fee, and letter of authority that identifies the person appointed and specifies the duties delegated as provided by R4-28-304;

8.        If closing a branch office, a written statement informing the Department within 10 days of the closure, accompa- nied by the branch office license and Department form severing the employment of or transferring to another branch office each employee at the branch;

9.        If hiring a salesperson or broker, or transferring a sales- person or broker employed by the employing broker to another office of the employing broker, a change form that includes the name, license number, signature of the employee, and the branch office address where the employee will work, and applicable fee;

10.     If severing a licensee employed by the employing broker, written notice and return of the employee’s license within 10 days of the severance;

11.     If opening or closing a broker’s trust account, written notice within 10 days of the opening or closing that pro- vides the name of the account, the account number, and the name and address of the bank where the account is located. If relocating or changing the name of a trust account, the designated broker shall include the informa- tion for the previous and new accounts;

12.     If appointing a temporary broker, submit the information specified in R4-28-305 and in accordance with provisions of A.R.S. §§ 32-2127 or 32-2133, as applicable; or

13.     If an employing broker is changing designated brokers, the information and documentation provided in R4-28- 302(K).

F.       In addition to the applicant’s name, signature, license number, the name and address of the employing broker’s office where the employee will work, and the change fee, a salesperson or broker shall submit the following information to be licensed as a professional corporation or professional limited liability company, to add or remove members of a licensed profes- sional corporation or professional limited liability company, or to change the name of a licensed professional corporation or professional limited liability company:

1.        Professional corporation.

a.         The name of the professional corporation that includes the full or last name of each officer, direc- tor, and shareholder of the professional corporation as it appears in the Articles of Incorporation;

b.        The name and business address of each officer, director, and shareholder in the corporation and a written statement that each holds a current and active real estate license;

c.         A copy of the Articles of Incorporation, as amended, stamped “Received and Filed” by the Arizona Cor- poration Commission;

i.         The Articles of Incorporation shall state that the corporation’s sole purpose is to provide profes- sional real estate, cemetery, or membership camping services, or real estate, cemetery, and membership camping services.

ii.        If more than one year has elapsed between the date the Articles of Incorporation were stamped “Filed” by the Arizona Corporation Commis- sion and the date of the application for a license as a professional corporation, the Department

shall require the salesperson or associate broker to submit a Certificate of Good Standing from the Arizona Corporation Commission; and

d.        Evidence that membership in the professional corpo- ration is limited to the designated broker and does not include any other person if the applicant for licensure as a professional corporation is licensed as a designated broker;

2.        Professional limited liability company.

a.         The name of the professional limited liability com- pany which includes the full or last name of each member of the professional limited liability com- pany as it appears in the Articles of Organization;

b.        The name and address of each member and manager in the limited liability company and a written state- ment that each holds a current and active real estate license;

c.         A copy of the Articles of Organization, as amended, stamped “Received and Filed” by the Arizona Cor- poration Commission:

i.         The Articles of Organization shall state that the limited liability company’s sole purpose is to provide professional real estate, cemetery, or membership camping services, or real estate, cemetery, and membership camping services.

ii.        If more than one year has elapsed between the date the Articles of Organization were stamped “Filed” by the Arizona Corporation Commis- sion and the date of the application for a license as a professional limited liability company, the Department shall require the salesperson or associate broker to submit a certificate of Good Standing from the Arizona Corporation Com- mission.

d.        A copy of the operating agreement, as amended; and

e.         Evidence that membership in the professional lim- ited liability company is limited to the designated broker and does not include any other person if the applicant for licensure as a professional limited lia- bility company is licensed as a designated broker.

3.        To return a license from professional corporation or pro- fessional limited liability company status to individual status:

a.         The name, license number, and dated signature of the salesperson or broker;

b.        A written statement that the salesperson or broker no longer wishes to be licensed as a professional corpo- ration or professional limited liability company; and

c.         The change fee.

G.      Administrative severance.

1.        A salesperson or broker may request that the Department sever the salesperson’s or broker’s license from the employing broker. The salesperson or broker shall pro- vide the following information on a form or in the manner prescribed by the Department:

a.         The name, license number, and dated signature of the salesperson or broker seeking the severance; and

b.        The name of the employing broker from whom the license is being severed.

2.        Upon receipt of the written request for severance as pro- vided in subsection (G)(1)(a), the Department shall administratively sever the license and provide written notice to the employing broker, who shall return the sev- ered person’s license to the Department under subsection (E)(10).

Historical Note

Adopted effective May 1, 1980 (Supp. 80-3). Amended

effective March 13, 1981 (Supp. 81-2). Amended effec-

tive August 1, 1986 (Supp. 86-4). Former Section R4-28- 07 renumbered without change as Section R4-28-303 (Supp. 87-1). Amended by adding a new subsection (K) effective May 3, 1988 (Supp. 88-2). Amended effective

February 28, 1995 (Supp. 95-1). Former Section R4-28- 303 repealed, new Section R4-28-303 adopted by final rulemaking at 5 A.A.R. 650, effective February 3, 1999 (Supp. 99-1). Subsection (F) amended to correct a mani- fest clerical error, filed in the Office of the Secretary of State March 29, 1999 (Supp. 99-3). Amended by final

rulemaking at 6 A.A.R. 1886, effective May 2, 2000 (Supp. 00-2). Amended by final rulemaking at 11 A.A.R.

506, effective March 5, 2005 (Supp. 05-1).