Section R4-28-306. Unlawful License Activity

A.      Unlawful license activity is:

1.        The performance of acts requiring a license under A.R.S.

§ 32-2122 by a person who does not hold a current and active license;

2.        The performance of acts requiring a license by a person on behalf of a broker other than the person’s employing broker; or

3.        A broker’s employment of a person as a salesperson or broker if the person does not hold a current and active license issued to the person under that employing broker.

B.       A person who conducts unlawful license activity shall submit to the Department, as soon as the person becomes aware that the activity has occurred, the following:

1.        A written explanation of why the unlawful license activ- ity occurred;

2.        A signed statement from the person that the person will not conduct activities requiring licensure under A.R.S. § 32-2122 unless the person holds a current and active license to perform those acts;

3.        A signed statement from the employing broker’s desig- nated broker, identifying all unlawful activity by the per- son on behalf of the employing broker;

4.        Upon request by the Department:

a.         A copy of all listing and employment agreements, offers or contract to buy, sell, lease, exchange, trans- fer, or manage real estate,  cemetery property, or membership camping contracts prepared, negoti- ated or executed by the person while the person was not properly licensed under the employing broker;

b.        Documentation listing all compensation received or to be received by the person based on transactions that occurred while the person was not properly licensed;

c.         Documentation listing all compensation received or to be received by the person’s employing broker and designated broker, if any, resulting from transactions that occurred while the person was not properly licensed if not provided in response to subsection (B)(4)(b); and

d.        A signed statement from the person stating that the information provided under subsection (B)(4) is true and complete and that the copies provided are true copies of all contracts, agreements, statements, and leases and no relevant documents are omitted.

C.      A person who has no prior history of engaging in unlawful license activity under this Section, who conducted unlawful license activity for not more than 30 days and against whom there are no pending complaints may apply to renew the per- son’s license or for license change to active status. The Depart- ment shall not delay processing the application based on the unlawful licensed activity. The Department shall issue an Advisory Letter of Concern to the person.

D.      The Commissioner may take disciplinary action under A.R.S.

§ 32-2153 against a person who engages in unlawful license activity under this Section for longer than 30 days, has previ- ously conducted unlawful license activity, or is the subject of a pending complaint.

Historical Note

New Section made by final rulemaking at 11 A.A.R. 506, effective March 5, 2005 (Supp. 05-1).