Mesa Community College REA 281
Principles of Real Estate Law study materials
Commissioner's Standards Workshop
The Commissioner's Standards are a collection of State laws laid down in the Arizona Revised Statutes, Arizona Administrative Codes, and the Arizona Constitution, which are reviewed, revised, and enforced as necessary by the real estate commissioner and advisory committee. To see these laws link to the Arizona Real Estate Law Book - click here.
The Arizona Constitution, Article XXVI, allows real estate agents to write sales contracts, as long as one of the parties is a client. However, they cannot charge a fee for services, and are not qualified to offer legal advice. Here is the exact wording:
ARTICLE XXVI. RIGHT OF LICENSED REAL ESTATE BROKERS AND SALESMEN TO PREPARE INSTRUMENTS INCIDENT TO PROPERTY TRANSACTIONS
1. Powers of real estate broker or salesman Section
1. Any person holding a valid license as a real estate broker or a real estate salesman regularly issued by the Arizona State Real Estate Department when acting in such capacity as broker or salesman for the parties, or agent for one of the parties to a sale, exchange, or trade, or the renting and leasing of property, shall have the right to draft or fill out and complete, without charge, any and all instruments incident thereto including, but not limited to, preliminary purchase agreements and earnest money receipts, deeds, mortgages, leases, assignments, releases, contracts for sale of realty, and bills of sale.
Judy Lowe is the current Arizona Real Estate Commissioner. She was appointed by Governor Janice Brewer on May 14, 2009. Her web page is: www.re.state.az.us/commish/commish.html The governor appoints the commissioner and the commissioner serves at the pleasure of the governor.
A Spectrum of Laws
Real estate agents in Arizona must comply with many sets of laws and other standards:
1) Your employer's, or brokerage, standards.
2) Professional standards, set down by the National Association of Realtors.
3) Local standards, such as zoning, local ordinances, and property covenants.
4) Federal laws, such as Fair Housing, Reg. Z, RESPA, Sherman Anti-Trust, etc.
5) City, County, State, and Federal civil law, i.e. disputes between people, usually over money.
6) City, County, State, and Federal criminal law, i.e. misdemeanors and felony crimes.
7) Federal and State constitutional law - the Arizona Constitution Article XXVI gives real estate agents the power to prepare legal documents for real estate transactions.
Commissioner's Standards are mainly set down in the Arizona Revised Statutes (A.R.S.). You can find the Arizona Revised Statutes online at website of the Arizona State Legislature (www.azleg.state.az.us/arizonarevisedstatutes.asp).
Most of the laws for Arizona real estate are covered under A.R.S. Title 32, "Professions and Occupations," Chapter 20, "Real Estate."
Title 32 covers all professions that require a state license, such as: architects, engineers, geologists, landscape architects, barbers, cosmetologists, security guards, accountants, chiropractors, dentists, doctors, nurses, pharmacies, psychologists, veterinarians, collection agencies, private investigators, funeral directors, driving schools, colleges, home inspectors, pest control, contractors, appraisers, surveyors, and many more.
A.R.S. Title 32, Chapter 20, Articles 1 - 10 govern the State of Arizona Department of Real Estate www.re.state.az.us, and they are:
Article 1 - R.E. Department operations, including how to choose a commissioner (administrator) and advisory committee
Article 2 - Rules for licensing agents and brokers
Article 3 - Regulations to curb fraud and abuse
Article 3.1 - Property management
Article 4 - Sale of subdivided lands
Article 5 - Real Estate Recovery Fund
Article 5.1 - Condominium Recovery Fund
Article 6 - Cemeteries
Article 7 - Unsubdivided land
Article 8 - repealed
Article 9 - Timeshares
Article 10 - Membership camping
A.R.S. Title 32 - Professions and Occupations
Go to original: http://www.azleg.gov/ArizonaRevisedStatutes.asp?Title=32
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| Chapter 20 | REAL ESTATE |
Article 1 |
Real Estate Department |
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32-2101
| Definitions |
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32-2102
| Administration of chapter by real estate department; purpose |
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32-2103
| Placement of monies collected; revision of fees |
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32-2104
| Real estate advisory board; members; terms; qualifications; compensation; chairman; duties |
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32-2105
| Meetings of the state real estate advisory board |
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32-2106
| Real estate commissioner; appointment; qualifications |
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32-2107
| Powers and duties of commissioner; compensation; administration of department; seal; revolving fund |
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32-2107.01
| Recorded disclaimer of unlawful restrictions |
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32-2108
| Powers and duties of commissioner to make investigations and require information |
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32-2108.01
| Fingerprinting license applicants; requirements; fees; definition |
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32-2109
| Employment; compensation |
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32-2110
| Interest of department officer or employee in real estate company prohibited |
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32-2111
| Attorney general as legal adviser and representative of commissioner |
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32-2112
| Admissibility of certified copies of department records in evidence |
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32-2113
| Recorded disclosure for territory in the vicinity of a military airport or ancillary military facility |
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32-2114
| Recorded disclosure for land under a military training route or restricted air space |
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32-2114.01
| Military electronics range |
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32-2115
| Department's website; military training route map; restricted air space map; military electronics range map |
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32-2116
| Military training routes; contacts |
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32-2117
| Earth fissure maps; posting; immunity |
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32-2118
| Competition with private enterprise; prohibition |
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32-2119
| Consumer education; water supply definitions; map |
Article 2 |
Licensing |
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32-2121
| Applicability of article; exemption |
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32-2122
| License required of brokers and salespersons |
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32-2123
| Application for license as broker or salesperson |
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32-2124
| Qualifications of licensees |
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32-2125
| Licenses for corporations, limited liability companies or partnerships |
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32-2125.01
| Issuance of license; multiple licenses; use |
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32-2125.02
| Nonresident licensees; service of process; employment |
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32-2125.03
| Confidentiality of licensee's residential address, electronic mail address, residential telephone number and social security number |
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32-2126
| Place of business required; notice of change in location; failure to give notice as cancellation of license; signs |
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32-2127
| Licenses for additional places of business; branch office manager; broker's temporary absence |
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32-2128
| Display and possession of license certificate |
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32-2129
| Advance payment of license fees |
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32-2130
| Renewal of licenses |
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32-2131
| Reinstatement of license |
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32-2132
| Fees |
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32-2133
| Temporary broker's license |
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32-2134
| Temporary cemetery salesperson's license |
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32-2134.01
| Membership camping salesperson certificate of convenience |
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32-2135
| Real estate schools; courses of study; instructors; certification |
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32-2136
| Broker management clinics |
Article 3 |
Regulation |
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32-2151
| Disposition of funds; trust money deposit requirements |
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32-2151.01
| Broker requirements; record keeping requirements |
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32-2151.02
| Real estate employment agreements; definition |
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32-2152
| Action by broker or salesperson to collect compensation |
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32-2153
| Grounds for denial, suspension or revocation of licenses; letters of concern; provisional license; retention of jurisdiction by commissioner; definitions |
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32-2153.01
| Consent order; terms |
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32-2154
| Cease and desist orders; hearing |
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32-2155
| Restriction on employment or compensation of person as broker or salesperson |
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32-2156
| Real estate sales and leases; disclosure |
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32-2157
| Written notice of charges; summary suspension; hearing |
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32-2158
| Hearing; witnesses; deposition; service of process |
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32-2159
| Judicial review; costs; transcript |
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32-2160
| Filing of complaint by commissioner; prosecution |
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32-2160.01
| Civil penalties |
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32-2161
| False statements or publications concerning land, subdivision or membership camping contract for sale or lease; classification; definition |
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32-2162
| Sale of cemetery property for speculation unlawful |
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32-2163
| Unlawful acts; out‑of‑state broker; cooperation agreement |
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32-2164
| Unlawful subdivision lot sales |
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32-2165
| Unlicensed activities; violation; classification |
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32-2166
| Activities while incarcerated; violation; classification |
Article 3.1 |
Property Management |
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32-2171
| Definitions |
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32-2172
| Scope of article |
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32-2173
| Property management agreements; contents, termination |
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32-2174
| Property management accounts |
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32-2175
| Property management records; requirements; audits |
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32-2176
| Payment of finder fees to apartment tenants; limits; prohibited activities; definitions |
Article 4 |
Sale of Subdivided Lands |
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32-2181
| Notice to commissioner of intention to subdivide lands; unlawful acting in concert; exceptions; deed restrictions; definition |
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32-2181.01
| Power of commissioner to exempt certain subdivisions or fractional interests by special order |
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32-2181.02
| Exempt sales and leases |
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32-2181.03
| Lot reservations; expiration |
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32-2182
| Examination of subdivision by commissioner; fee |
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32-2183
| Subdivision public reports; denial of issuance; unlawful sales; voidable sale or lease; order prohibiting sale or lease; investigations; hearings; summary orders |
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32-2183.01
| Advertising material; contents; order prohibiting use; costs of investigation; drawings or contests |
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32-2183.02
| Recording of actions |
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32-2183.03
| Civil liabilities |
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32-2183.04
| Surety bond requirement; form; cancellation; effective date; certificate of deposit |
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32-2183.05
| Military training route disclosure; military electronics range disclosure; residential property |
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32-2183.06
| Restricted air space disclosure; residential property |
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32-2184
| Change of subdivision plan after approval by commissioner; notice |
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32-2185
| Delivery of clear title by vendor on performance of contract by vendee |
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32-2185.01
| Sale of unimproved lots or parcels; conditions precedent; methods |
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32-2185.02
| Permanent access to subdivided land; rescindable sales |
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32-2185.03
| Deposit of fees |
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32-2185.06
| Contract disclosures; contract disclaimers |
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32-2185.07
| Jurisdiction |
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32-2185.08
| Recordable forms of contracts |
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32-2185.09
| Civil penalties; limitation |
Article 5 |
Real Estate Recovery Fund |
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32-2186
| Real estate recovery fund; liability limits; definitions |
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32-2187
| Payments to real estate recovery fund |
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32-2188
| Statute of limitations; service of summons; application for payment; insufficient monies; definition |
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32-2188.01
| Notice of claim to judgment debtor; response |
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32-2188.02
| Correction of deficiencies in the application |
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32-2188.03
| Investigation and discovery |
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32-2188.04
| Final decision and order on claim; notice |
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32-2188.05
| Claimant's right to appeal denial of claim; service of notice of appeal; response; failure to file response |
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32-2189
| Management of fund |
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32-2191
| Commissioner's standing in court |
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32-2192
| Subrogation of rights; collection |
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32-2193
| Waiver of rights |
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32-2193.01
| Effect of article on disciplinary action |
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32-2193.02
| Surety bond requirement; form; cancellation; effective date; certificate of deposit |
Article 5.1 |
Condominium Recovery Fund |
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32-2193.31
| Definitions |
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32-2193.32
| Condominium recovery fund; award limits |
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32-2193.33
| Payments to the condominium recovery fund |
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32-2193.34
| Statute of limitations; service of summons; application for payment; insufficient monies; definition |
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32-2193.35
| Notice of claim to judgment debtor; written response |
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32-2193.36
| Correction of deficiencies in the application |
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32-2193.37
| Investigation and discovery |
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32-2193.38
| Final decision and order on claim; notice |
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32-2193.39
| Claimant's right to appeal denial of claim; service of notice of appeal; response; failure to file response |
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32-2193.40
| Management of fund |
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32-2193.41
| Commissioner's standing in court |
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32-2193.42
| Subrogation of rights |
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32-2193.43
| Waiver of rights |
Article 6 |
Organization and Regulation of Cemeteries |
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32-2194
| Exceptions |
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32-2194.01
| Notice to commissioner of intention to sell cemetery property; exceptions; restrictions |
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32-2194.02
| Examination by commissioner; fee |
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32-2194.03
| Issuance or denial of certificate of authority; voidable sale; order prohibiting sale; investigations by commissioner; public hearings; summary orders |
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32-2194.04
| Contract disclosures; contract disclaimers |
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32-2194.05
| Advertising material; contents; order prohibiting use |
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32-2194.06
| Records of transactions |
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32-2194.07
| Recording of actions |
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32-2194.08
| Administrative penalties |
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32-2194.09
| Civil liabilities |
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32-2194.10
| Change of cemetery plan after approval by commissioner; notice; fee |
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32-2194.11
| Delivery of clear title by cemetery of cemetery plots |
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32-2194.12
| Permanent access to cemetery land |
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32-2194.13
| Deposit of fees |
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32-2194.14
| Cemetery brokers; disclosures |
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32-2194.15
| Jurisdiction |
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32-2194.16
| Sale of undeveloped cemetery property |
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32-2194.17
| Transaction of cemetery business |
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32-2194.18
| Application for authority to open and operate cemeteries |
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32-2194.19
| Investigation of applicant before granting of certificate of authority where needed |
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32-2194.20
| Right of cemetery to make rules and regulations |
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32-2194.21
| Survey of property; maps and plats |
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32-2194.22
| Filing maps and declaration of dedication |
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32-2194.23
| Nonapplication of law against perpetuities |
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32-2194.24
| Trust fund to be established before certificate of authority granted |
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32-2194.25
| Trust fund to be established before existing cemetery can advertise as endowed‑care cemetery |
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32-2194.26
| Initial deposit required in endowment‑care fund |
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32-2194.27
| Restrictive use of income from endowed‑care fund; obligation |
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32-2194.28
| Deposit in endowed-care fund from sales |
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32-2194.29
| Posting of signs by cemeteries |
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32-2194.30
| Restriction on use of care funds |
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32-2194.31
| Crematories |
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32-2194.32
| Opening and closing of burial places |
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32-2194.33
| Cemetery property owners; address notification reclamation; abandoned cemetery plot |
Article 7 |
Sale of Unsubdivided Lands |
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32-2195
| Notice to commissioner of intention before offering for sale or lease of unsubdivided land; definition |
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32-2195.01
| Power of commissioner to exempt certain unsubdivided land by special order |
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32-2195.02
| Examination of unsubdivided land by commissioner; fee |
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32-2195.03
| Unsubdivided land reports; denial of issuance; order prohibiting sale or lease; investigations; hearings; summary orders |
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32-2195.04
| Sale of lots or parcels of unsubdivided lands; conditions precedent; methods |
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32-2195.05
| Advertising material; contents; order prohibiting use; costs of investigation |
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32-2195.06
| Civil liabilities |
|
32-2195.07
| Jurisdiction |
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32-2195.09
| Recordable forms of contracts |
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32-2195.10
| Change of plan after approval by commissioner; notice |
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32-2195.11
| Civil penalties; limitation |
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32-2195.12
| Recording of actions |
Article 9 |
Real Estate Timeshares |
|
32-2197
| Definitions |
|
32-2197.01
| Creation of timeshare plans; ratio |
|
32-2197.02
| Notice of intent to sell; application for timeshare plan public report; authorization for pre‑sales |
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32-2197.03
| Rescission of contract or agreement |
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32-2197.04
| Notification of material change |
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32-2197.05
| Escrow or trust account; agreement; evidence of completion; financial assurance |
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32-2197.06
| Declaration of dedication |
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32-2197.07
| Examination of plan by commissioner; fees |
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32-2197.08
| Issuance of public report by commissioner on timeshare plan; denial of issuance; additional information; use of another state's public report |
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32-2197.09
| Rescindable sale or lease |
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32-2197.10
| Timeshare interest reservations |
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32-2197.11
| Developer supervisory duties |
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32-2197.12
| Blanket encumbrance; lien; alternative assurance |
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32-2197.13
| Hearing on denial of public report |
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32-2197.14
| Investigations; orders; hearings |
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32-2197.15
| Order; appointment of receiver; writ of ne exeat |
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32-2197.17
| Advertising and promotional requirements; telemarketing and promotional employees; presentations and tours, drawings and contests; commissioners authority; disclosures |
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32-2197.18
| Recording of actions |
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32-2197.19
| Civil liabilities; prohibitions; limitations |
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32-2197.20
| Civil penalty |
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32-2197.21
| Payment of finder fees; limits; prohibited activities; records; definition |
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32-2197.22
| Exemptions; disclosures; exempt communications |
|
32-2197.23
| Power of commissioner to exempt timeshare plans |
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32-2197.24
| Applicability of article |
Article 10 |
Membership Camping |
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32-2198
| Unlawful offer or sale of membership camping contract |
|
32-2198.01
| Application for membership camping public report; signature; amendment |
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32-2198.02
| Issuance of public report; representations prohibited |
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32-2198.03
| Exemptions |
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32-2198.04
| Examination of project by commissioner |
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32-2198.05
| Contracts; cancellation |
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32-2198.06
| Execution of notes; assignment; purchaser's defenses retained |
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32-2198.08
| Denial, suspension or revocation of a public report |
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32-2198.09
| Fees |
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32-2198.10
| Advertising plans; disclosures; lotteries and drawings |
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32-2198.11
| Purchaser's remedies |
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32-2198.13
| Construction of this article |
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32-2198.14
| Advertising availability of campgrounds to campground members; blanket encumbrances |
Title 33 and other Laws
ARS 33 - Property
33-1071 - Commercial real estate broker lien; definition
33-1072 - Lien attachment; notice of commercial real estate broker lien; notice to owner
33-1073 - Contents of notice of lien; verification
33-1202 - Definitions
33-1219 - Plat
33-1220 - Exercise of development rights
33-1228 - Termination of condominium
33-1075 - Satisfaction of lien; damages
33-1244 - Transfer of special declarant rights
33-1270 - Department of real estate; enforcement
33-411.01 - Recording real estate documents; indemnification by transferor
33-457 - Fraudulent representation by married person of ability to convey realty; classification
33-1074 - Foreclosure; limitation of action; attorney fees
33-1076 - Discharge of commercial real estate broker's liens; bond; limitations of actions; discharge of surety; judgment
33-1204 - Separate titles and taxation
33-1205 - Applicability of local ordinances, rules and building codes
33-1215 - Contents of declaration
33-1802 - Definitions
33-422 - Land divisions; recording; disclosure affidavit
33-1256 - Lien for assessments; priority; mechanics' and materialmen's liens; applicability
33-1807 - Lien for assessments; priority; mechanics' and materialmen's liens
33-417 - Law governing validity of instruments; recording of instruments valid when executed; validity of instruments recorded prior to October 1, 1913
33-741 - Definitions
33-803 - Trustee of trust deed; qualifications
33-1216 - Leasehold condominiums
33-1260 - Resale of units; information required; applicability; definition
33-1806 - Resale of units; information required; definition
33-1902 - Residential rental property; recording with the assessor; agent designation; civil penalty; fee
33-1903 - Appointment of temporary receiver; term; duties, accounting
33-2001 - Definitions
33-423 - Disclosure; reports; indemnity; applicability; violation; classification
A.R.S. 34
- Public Buildings and Improvements
These statutes concern real estate, but not buying and selling it.
Real estate is also mentioned under the following titles:
(look up these laws at this link - click here)
A.R.S. 6 - Banks and Financial Institutions
6-1301 - Definitions
6-454 - Appraisal of real estate owned
6-811 - Exemptions
6-840 - Prohibitions; definitions
6-852 - Exemptions and permitted activities
6-901 - Definitions
6-906 - Required accounting practices and records; escrow of monies; disclosure
6-909 - Prohibited acts
6-941 - Definitions
6-946 - Required accounting practices and records; refundable deposits; periodic impoundment payments; disclosure
6-947 - Prohibited acts
6-984 - Prohibited acts
6-991 - Definitions
6-991.02 - Prohibited acts
A.R.S. 20 - Insurance
20-1541 - Definitions
20-1564 - Investments
20-1568 - Unearned premium reserve
A.R.S. 28 - Transportation
28-8484 - Military airport disclosure; residential property
A.R.S. 36 - Public Health and Safety
36-1404 - Housing authority; employees
A.R.S. 37 - Public Lands
37-102 - State land department; powers and duties
37-803 - Disposition of real property by state agency
A.R.S. 38 - Public Officers and Employees
38-273 - Recording notice of ownership of real property; lien of judgment
A.R.S. 41 - State Government
41-1491.20 - Residential real estate related transaction; definition
41-1512.01 - Military installation fund; report; definition
41-2178 - Exemptions
41-3012.05 - State real estate department; termination July 1, 2012
41-603 - Powers and duties
A.R.S. 42 - Taxation
42-11001 - Definitions
42-17154 - Attachment of lien to real and personal property, improvements and severed mineral rights
A.R.S. 44 - Trade and Commerce
Article 3.1 - Trade Names
44-1460 - Registration of trade name, title or designation
44-1460.01 - Issuance of certificate; restrictions
44-1460.02 - Effective term of registration; renewal; expiration notice
44-1460.03 - Assignment and recording of rights
44-1460.04 - Public examination of records
44-1460.05 - Exclusive rights; common law rights
44-1460.06 - Electronic filing; acceptance
44-1460.07 - Trade name registration cancellation
A.R.S. 45 - Waters
45-108 - Evaluation of subdivision water supply; definition
45-108.02 - Exemption from adequate water supply requirements for city, town or county based on substantial capital investment; application; criteria; expiration
A.R.S. 47 - Uniform Commercial Code
47-2A309 - Lessor's and lessee's rights when goods become fixtures
A.R.S. 48 - Special Taxing Districts
48-2978 - General powers of board of directors
48-4202 - Formation of district
48-6412 - Exemption from adequate water supply requirements based on substantial capital investment; application; criteria; expiration
A.R.S. 49 - The Environment
49-356 - Water systems; designating lead agency; coordinating council
Arizona Administrative Code
A.A.C. Title 4 (Professions and Occupations), Chapter 28 (State Real Estate Department) sets out
the basic rules for record keeping, license requirements, exemptions, commission
payments, recovery fund provisions, development rules, processes for public reports for and sale
of subdivided and unsubdivided land, etc., and grounds for disciplinary action and hearings.
GTK ("good to know") About A.R.S. Title 32
Professions and Occupations, Chapter 20 "Real Estate"
Article 1 - Real Estate Department
Defines the purpose and administration of the Arizona Real Estate Department.
Appointment, qualifications, duties, etc., of the real estate commissioner.
Members, terms, qualifications, chairman, duties, and meetings of the advisory board.
Article 2 - Licensing
Qualifications and application for licensing brokers and salespersons.
Places of business required, electronic mail, phone numbers, addresses, etc.
Branch offices, designated broker's temporary absence.
Licensing
Applicability of article; exemption
License required of brokers and salespersons, license display requirements.
Application for license as broker or salesperson.
Qualifications of licensees.
Licenses for corporations, limited liability companies or partnerships.
Renewal, reinstatement of licenses.
Real estate schools, courses of study, instructors. certification.
Article 3 - Regulation
How to handle money.
Agreements between broker and employees.
How to collect compensation if agreements broken.
Grounds for denial, suspension or revocation of licenses.
Punishments, fines, consent orders, hearings.
Filing complaints, civil penalties.
Other unlawful acts, unlicensed activity, other violations.
Punishments may range from having to take an extra classes to fines up to $150,000.
Article 4 - Sale of Subdivided Lands
How to lawfully subdivide lands.
Deed restrictions.
Exempt sales and leases.
Lot reservations and requirements, voidable sale or lease.
Subdivision public reports.
Advertising rules and restrictions.
Bond requirements, certificate of deposit.
Changes to subdivision plans.
Delivery of clear title.
Access to land, rescindable sales.
Contract disclosures and disclaimers.
Civil penalties for breaking rules.
Article 5 - Real Estate Recovery Fund
Describes the recovery fund, payments into, what it covers, limitations.
Statute of limitations, investigation, discovery, decisions.
Claimant's right to appeal denial of claim.
Article 7 - Sale of Unsubdivided Lands
Notice to commissioner of intention before offering unsubdivided land for sale or lease.
Unsubdivided land reports.
Sale of unsubdivided lots or parcels.
Requirements and restrictions for advertising.
Recordable forms of contracts, process of recording.
Civil penalties, limitations.
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