Designated Broker May Report Agent’s Misconduct to Arizona Department of Real Estate and Be Absolved of Administrative Liability
Posted on May 1, 2012 by AAR
FACTS AS PRESENTED BY THE CALLER:
The broker has a listing for a husband and wife, who live out of state. The broker discovers that, after the husband’s death, the agent continues to use blank, pre-signed status change forms signed only by the husband. The broker has since entered into an exclusive listing agreement with the wife to correct the issue.
Does the broker have an obligation to self-report this issue to the Arizona Department of Real Estate?
The Arizona Department of Real Estate does not require the reporting of this issue. However, A.A.C. § R4-28-1103(F) provides that “[a] designated broker who, upon learning of a violation of real estate statutes or rules by a salesperson or associate broker under the broker’s supervision, immediately reports the violation to the Department is not subject to disciplinary action by the Department for failure to supervise the salesperson or broker.” Accordingly, disclosure is not mandatory, but disclosure would absolve the broker of any administrative liability for failure to supervise the agent.
Arizona REALTOR® Magazine – May 2012