ISSUE:

The brokerage firm is an Arizona corporation. The brokerage firm is becoming a national franchisee and is changing the name of the brokerage firm. In addition, the designated broker is resigning from the brokerage firm. Does the brokerage firm need the consent of the sellers and buyers represented by the brokerage firm to these changes?

ANSWER:

No. If the Arizona corporation will still be representing the sellers and buyers, the consent of the sellers and buyers is not needed for the change of the name of the brokerage firm or the resignation of the designated broker.

Note: the procedure to amend the name of an Arizona corporation requires an amendment to the Articles of Incorporation. This amendment must be filed with the Arizona Corporation Commission and must be published in a local newspaper.

Arizona REALTOR® Digest February 2005