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The owner of the property signed a listing agreement which the agent also signed.  However, the brokerage firm did not initial the listing agreement until twenty (20) days after it was executed.  The transaction closed and the seller refused to pay the agreed upon commission, claiming that the designated broker was required to initial the listing agreement within ten (10) business days after its execution and here, because the designated broker did not do so, the listing agreement was not enforceable. 


Is the listing agreement enforceable even if the designated broker does not initial within ten (10) days after its execution? 




A.R.S.§32-2151.01(g) requires a designated broker to review and initial many documents, including a listing agreement, within ten (10) days after execution.  However, that statutory requirement is a regulatory mandate dealing with the designated brokers’ obligation to review and maintain certain records.  “This statute does not address a broker’s right to recover a commission…”  See CK Family Irrevocable Tr. No. 1 v. My Home Grp. Real Estate, No. 1 CA-CV 19-0207 (471 P.3d 1041(App. 2020)).  Thus, the listing agreement is enforceable even though not timely initialed by the designated broker.