Is a real estate licensee required to disclose to the Arizona Department of Real Estate (ADRE) a felony guilty plea?
Yes. Pursuant to A.R.S. § 32-2153, the ADRE may sanction a licensee, deny a license renewal or deny an original license application if, among many others, the licensee or applicant has been convicted of a felony or of any crime of forgery, theft, extortion, conspiracy to defraud, a crime of moral turpitude, or any other like offense, been guilty of fraud or dishonest dealings or not shown that the licensee or applicant is a person of honesty, truthfulness and good character.
The disciplinary actions disclosure is required by the ADRE to determine qualifications and suitability of the licensee to hold an Arizona Real Estate License. Under A.A.C. R4-28-301(F), a licensee, including the broker, must report to the ADRE within 10 days any convictions, judgments or adverse actions relating to, among others: (1) misdemeanor or felony conviction, deferral of judgment or sentencing; and (2) order, judgment or adverse decision involving fraud or dishonesty or involving a real estate transaction. A plea of guilty with regard to a felony is a deferral of judgment. Here, the real estate licensee pled guilty to a felony. As such, the real estate licensee (and his or her broker) is required to make a disciplinary action disclosure within 10 days of such guilty plea.
Arizona REALTOR® Magazine – April 2014 | Brokerage