real estate regulation;
enforcement
HB 2024 makes numerous changes to the statutes that regulate the Arizona Department of Real Estate (ADRE).
The Arizona Department of Real Estate licenses and regulates approximately 45,000 real estate, cemetery, membership campground brokers and salespersons.
Current real estate law requires a real estate license application to be submitted in person. A licensee may be employed by only one broker and pertinent records (contracts, lease agreements, etc.) must be stored on site. A Real estate broker must attend a broker management clinic within 90 days after the license is initially issued.
HB 2024 makes changes to the aforementioned provisions of law by allowing for electronic filing, storing records off-site, and requiring a broker to attend a clinic prior to initial licensure.
· Allows the license application to be submitted electronically.
· Permits a licensee to be employed by more than one broker, but only when the categories are different (i.e. cemetery, membership camping or real estate).
· Requires an applicant for a real estate broker's license to attend a broker management clinic prior to license activation. Additionally, a broker must attend the clinic prior to becoming a designated broker.
· Authorizes off-site, in-state storage of records upon prior written notification to ADRE.
· Specifies a 20-day time limit for a respondent to answer a complaint.
· Provides for but does not limit the commissioner to a summary suspension if a licensee is
convicted of a felony.
· Prohibits a licensee from conducting real estate related business while incarcerated and
establishes a Class 6 felony [.5/1.5 yrs. and $150,000] for a violation.
· Clarifies that the Real Estate Recovery Fund will only cover actual out-of-pocket losses. Increases the amount covered by the fund after May 1, 2001:
Ø From $20,000 to $30,000 per transaction.
Ø From $40,000 to $90,000 per licensee.
· Clarifies the circumstances under which the recovery fund is not liable for damages.
· Outlines and clarifies the documents and receipts that must be submitted to the department when seeking payment from the recovery fund.
· For court actions that may result in collection from the recovery fund, establishes a 45-day period in which to notify the commissioner of the filing. Specifies that the notice shall be addressed to the recovery fund administrator.
· Stipulates that serving notice to the commissioner shall be by certified mail, return receipt requested, and addressed to the recovery fund administrator.
· Clarifies the equitable distribution of monies from the recovery fund.
· Requires a licensee to submit proof to the commissioner that a judgment paid from the
recovery fund has been fully satisfied.
HB 2024 was amended in the Commerce and
Economic Development Committee.
· Clarifies language concerning off-site storage locations.
· Exempts the Recovery Fund from specific types of damages/losses.
HB 2024 was amended in the Committee of the
Whole as follows:
§ Strikes language regarding applications filed before May 1, 2001.
§ Strikes retroactivity provision.
§ Makes technical and conforming changes.
§ Adopts the Commerce and Economic Development amendment.