On August 25, 2004 a law allowing for an Arizona broker to cooperate with out-of-state brokers became effective. Arizona brokers may cooperate with an out-of-state broker if the brokers enter into a written agreement that includes: (a) a list of the activities to be conducted by the out-of-state broker; (b) a statement that the out-of-state broker agrees to fully comply with the laws of this state and submit to the regulatory jurisdiction of the department; and (c) a statement that the Arizona broker accepts responsibility for the acts of the out-of-state broker. However, all negotiations must be conducted through the Arizona broker. Further, the out-of-state broker may not place signs, list, market or otherwise advertise Arizona property.

AAR does not have a form that meets this criteria, but the new law clearly states what is required in such an agreement. For the full text, go to page 26 of the Senate Bill 1140

 


About the Author

Michelle Lind

K. Michelle Lind, CEO of Arizona REALTORS®, is also an attorney, State Bar of Arizona board certified real estate specialist, and the author of Arizona Real Estate: A Professional’s Guide to Law and Practice. Please note that this article is of a general nature and may not be updated or revised for accuracy as statutory or case law changes following the date of first publication. Further, this article reflects only the opinion of the author, is not intended as definitive legal advice and you should not act upon it without seeking independent legal counsel.