Reviewed November 2019

FACTS:                 

An Arizona broker was contacted by a licensee in Massachusetts with a referral.  The licensee notified the Arizona broker that she does not hold an active license in Massachusetts, but that Massachusetts state law allows an inactive licensee to collect a referral fee.

ISSUE:                  

Can an Arizona broker pay a referral fee to a licensee in Massachusetts who holds an inactive license?

ANSWER:                           

No.

DISCUSSION:    

Pursuant to A.R.S. §32-2155(B) it is unlawful for a person, firm or corporation…to pay or deliver to anyone compensation…who is not licensed at the time the service is rendered. Therefore, although Massachusetts may allow an inactive licensee to collect a referral fee, Arizona law does not.