Section R4-28-404. Real Estate School Requirements, Course and Instructor Approval

A.      Certificate of School Approval. Except for a community col- lege or university accredited by the Council on Post Secondary Accreditation or the U.S. Department of Education offering courses in real estate, any school offering a course of study for original or renewal licensure of a real estate applicant shall apply for and possess a Certificate of School Approval from the Department. The school’s authorized representative shall provide the following information on or with the Certificate of School Approval form:

1.        The name, address, telephone number, and fax number, if any, of the school;

2.        The name of the owner and d.b.a. name, if any;

3.        Whether the owner is a sole proprietorship, partnership, trust, limited liability company, or corporation;

4.        The name, address, telephone number, and percentage ownership of each person, entity, or beneficiary holding or controlling 10% or more financial interest in the school;

5.        The name of each individual authorized to act on behalf of the school and sign continuing education certificates or prelicensure verifications, or both;

6.        The name, business address, and telephone number of all current and prospective administrators, directors, and instructors;

7.        In addition to the information required in R4-28-301(A), each school owner, administrator, director, and instructor shall provide a statement of the individual’s:

a.         Education,

b.        Teaching experience, and

c.         Employment history.

8.        If the owner is a partnership, a copy of the partnership agreement naming the partner authorized to act on its behalf;

9.        If the owner is a corporation or limited liability company, a copy of:

a.         A corporate or company resolution or operating agreement naming the officer, member, or manager authorized to execute the Certificate of Approval form;

b.        A current Certificate of Good Standing from the Ari- zona Corporation Commission;

c.         The latest annual report on file with the Arizona Corporation Commission;

d.        The Articles of Incorporation or Organization, as amended.

10.     The location of school registration and licensing certifica- tion records.

B.       Certificate of Course Approval. Any school offering a course of study for original or renewal licensure of a real estate appli- cant shall apply for and possess a Certificate of Course Approval for each course offered by the school. The school’s authorized representative shall submit the following informa- tion:

1.        The school name, address, telephone number, and fax number, if any;

2.        The authorized representative’s name, title, and signature;

3.        The title of the course;

4.        A detailed outline of course material content that clearly lists the subject matter to be covered;

5.        The date, time, and location of the anticipated presenta- tion, if known;

6.        The number of credit hours requested. The time allocated by a school for examination shall not be included in cal- culating credit hours if the examination is used for overall evaluation.

7.        The category of approval requested;

8.        A definition of segments if the course is to be offered in part and in its entirety;

9.        If video or audio tapes will be used as instructional aids, the percentage of the class they will comprise;

10.     The name of every instructor who will teach the course; and

11.     The date of the application.

C.      Instructor approval. Any person wishing to teach an approved real estate course shall apply for an instructors approval, and shall have at least one of the following in the proposed subject area:

1.        A bachelor’s or master’s degree in an area traditionally associated with real estate, such as business, law, eco- nomics, marketing, and finance;

2.        An award of a generally-recognized professional real estate designation, such as Certified Commercial Invest- ment Member, Graduate Realtor Institute, Certified Resi- dential Specialist, Independent Fee Appraiser, or Member of the Appraisal Institute, and two years of postsecondary education from an accredited institution;

3.        Experience in real estate, and a bachelor’s degree in edu- cation with a valid certificate issued within 15 years of the date of application for instructor approval;

4.        A real estate salesperson’s or broker’s license, and is an employee or former employee of a regulatory agency;

5.        A Distinguished Real Estate Instructor designation, with credentials in the specific subject;

6.        At least three years real estate or specific subject experi- ence; or

7.        Other education or experience determined by the Com- missioner to qualify the applicant as an instructor.

D.      The school shall maintain a record for five years of each stu- dent attending the school. The record shall include:

1.        The name of each student;

2.        The dates of attendance;

3.        The title of each course taken;

4.        The course number, category, and credit hours awarded;

5.        The final grade or score in each prelicensure course; and

6.        The original signature roster for each course or course segment taught.

E.       The prospective student shall sign an agreement or application to enroll, presented to the student by the school representative, that includes the following, in bold type and capital letters:

1.        The course or course segment title within a curriculum,

2.        The total credit hours applicable for licensure or renewal,

3.        The cost of each course,

4.        A statement of the refund policy, and

5.        A statement of any job placement service.

F.       The Department does not consider lists of employers given to graduates to be a placement service. The school may advertise job placement services only if:

1.        Student referrals result from direct contact between the school placement service and prospective employers,

2.        Documented evidence of student referrals is maintained and includes:

a.         The number of referrals to prospective employers per student,

b.        Results of referrals,

c.         Final placement or other disposition.

G.      Complaints. The Commissioner may, and upon a verified com- plaint in writing shall, investigate and observe the classes of any school, owner, administrator, director, or instructor acting on behalf of the school and may examine the books and records of the school in connection with the offering of approved courses.

H.      Change in school, course, or instructor. Each school owner, operator, director, and instructor shall:

1.        Provide a written notice and supporting documentation within 10 days of any:

a.         Change of personal name or address,

b.        Change of business address,

c.         Change of business mailing address,

d.        School closing, or

e.         Disclosure of certification information pursuant to R4-28-301(A),

2.        Provide a written notice and supporting documentation within 30 days after any change in structure of a licensed entity, including any change of a:

a.         Director, officer, or person holding or controlling 10% or more of the shares, if a corporation;

b.        Partner, if a partnership;

c.         Member or manager, if a limited liability company.

3.        Obtain approval from the Commissioner before conduct- ing business when:

a.         Changing a business name,

b.        Establishing a school location,

c.         Changing the course content,

d.        Changing the course length, or

e.         Offering a new course.

4.        Provide written notice as soon as practical of a last min- ute change of instructor due to illness or emergency.

Historical Note

Section R4-28-404 renumbered from R4-28-403 and amended by final rulemaking at 5 A.A.R. 650, effective February 3, 1999 (Supp. 99-1).