FACTS:                    

An LLC in California holds a non-resident employing broker license in Arizona, and maintains a branch office in Arizona.

A managing member of the LLC in California entered into an employment agreement (An “Exclusive Right to Sell”) with a developer in Arizona to market and sell a new development in Arizona. Licensees from the Arizona branch would perform real estate services for the developer.

ISSUE:                      

 Can a managing member of the LLC in California sign the Exclusive Right to Sell with the developer?

ANSWER:                

No.

DISCUSSION:         

Pursuant to Commissioner’s Rule R4-28-306(A)(1):

Unlawful license activity is:

  1. The performance of acts requiring a license under A.R.S. § 32-2122 by a person who does not hold a current and active license.

Here, the managing member of the LLC in California does not hold a real estate license in Arizona, and therefore cannot enter into contracts on behalf of the employing brokerage for Arizona property.