FACTS: An agent wants to expand his clientele base and heard from other agents he should hire a third-party company to cold call expired listings for him.

ISSUE: Can the agent hire a third-party to cold call expired listings?

ANSWER: See Discussion.

DISCUSSION:

Pursuant to A.R.S. 32-2101(51)(i), real estate activity for which a license is required includes assisting in the procuring of prospects calculated to result in the sale, exchange, leasing or rental of real estate.

However, A.R.S. 32-2121(A)(10) allows for a natural person who is in the employ of an employing broker, and who performs telemarketing services limited to soliciting interest in engaging the services of a licensee or broker, or gathering demographic information that will be used by a licensee or broker, to solicit prospective buyers, sellers, lessees and lessors.

In this instance, an agent, not the employing broker, seeks to hire a third-party telemarketer. Consequently, the agent is prohibited from directly hiring an unlicensed individual to cold call expired listings in an effort to procure prospects.