Arizona Department of Real Estate Attorney

Arizona Department of Real Estate Attorney

Chelle Law’s Arizona Department of Real Estate attorney’s believe it’s important to educate clients on how things work and what to expect. Our attorney’s strive to educate clients about the department they’re interacting with and how an experienced attorney can help you.

The Arizona Real Estate Department (ADRE) handles the licensing and regulation of real estate agents, salespersons, brokers, school owners, directors, administrators, and instructors in Arizona.

Real Estate Department Application Issues

Are you having trouble obtaining a license or completing your application with the Arizona Real Estate Department (ADRE)?  Certain disclosures on an application for licensure will initiate an investigation by the Enforcement and Compliance Division.  Those disclosures include:

  • Prior criminal convictions
  • Past civil judgments
  • Previous discipline from other licensing boards

An ADRE investigation can add months to the licensure process and will likely delay your receipt of a license.  Keep in mind, the ADRE will not speed up the application process just because you have a job waiting for you.  You should determine if there may be a delay prior to entering real estate school by contacting us.  If, however, you’re currently attending school or are a recent grad you should seek legal counsel. An attorney with experience can assist you with next steps to ensure your application is processed promptly.

Do not contact the Board to discuss your past or a specific criminal incident. The Board investigator you speak with will take extensive notes regarding your conversation and the notes can be used against you during the investigation process.  It is also important to answer the application questions in the correct manner. Withholding information or not disclosing past events can cause the Board to initiate an investigation or cause you to receive discipline in the future.

Realtor Criminal Reporting

The Arizona Department of Real Estate (ADRE) requires each licensed real estate agent, salesperson or broker to notify the ADRE, within ten days, of a conviction for a misdemeanor or felony, or deferral of a judgment or sentencing for a misdemeanor or felony (AAC R4-28-303(D)).  It is not a requirement to report a charge or arrest.

The notification of a criminal conviction to the ADRE must include the licensee’s name, signature and license number.

The notification must also include:

  1. A signed written statement describing in detail the circumstances surrounding the events leading to the conviction such as arresting agency, date of incident, the presiding court, date of sentencing,  and outcome (final plea, date of plea, sentencing, etc.);
  2. A certified copy of any police report and court record pertaining to the crime for which there has been a conviction or sentencing or judgment has been deferred. If the licensee is unable to provide documents for each crime, the licensee shall provide written documentation from the court or agency having jurisdiction, stating the reason the records are unavailable.

Once a notification is made to the ADRE a Disclosure Package will be sent to the licensee that includes a LI-400 Disclosure Document Checklist. This form will list all of the information and documents needed by the ADRE.

Department of Real Estate Complaint and Investigation

The ADRE initiates investigations against a real estate agent, salesperson or broker (licensee) for a number of reasons, including:

  • A client complaint.
  • Complaint by another licensee or business.
  • Disclosure by the licensee of a civil lawsuit judgment.
  • Criminal conviction or disciplinary action by another licensing board.

Once the ADRE receives a self-complaint, a licensee may receive a disclosure package containing a LI-400 Disclosure Document Checklist. This checklist describes the necessary documents to be sent to the ADRE.

After the ADRE receives all necessary documents and statements from the licensee, the Enforcement and Compliance Division may resolve substantiated allegations through a stipulated settlement (Consent Agreement or Accelerated Settlement Agreement), or may refer the investigation to an administrative hearing or mediation.

Realtor Disciplinary Actions

The disciplinary outcomes of an investigation include:

  • Provisional license
  • Letter of Concern
  • Civil penalty (monetary penalty)
  • Negotiated settlement by means of a Consent Agreement
  • Buyer Rescission
  • Referral to the Attorney General’s Office for hearing
  • Suspension, Revocation or Surrender of license

ADRE Appeal and Hearing

The process and the appeal’s process work like this:

  • The ADRE initiates an investigation into a complaint.
  • This investigation is then followed by one conducted by the Enforcement and Compliance Division. This investigation gives the ADRE Commissioner evidence to make a decision.
  • You can appeal the ADRE’s decision or in some cases the investigation is forwarded to hearing.

When the ADRE has decided to offer formal discipline as a result of their investigation of the complaint, the individual has the right to appeal the final decision. The subject of the complaint can either consent to the discipline by signing an agreement, or can request a hearing to appeal the decision.  This hearing is conducted by the Arizona Office of Administrative Hearings with an Administrative Law Judge (ALJ) presiding.

We also offer defense for Arizona Association of Realtors Complaints and Hearings.

If you have questions for an Arizona Department of Real Estate Attorney and would like to learn more about the services we offer contact Chelle Law today.