ARIZONA REALTORS® REVISED FORMS FOR FEBRUARY 2026 RELEASE
INTRODUCTION
On or about February 1, 2026, the Arizona REALTORS® will release a revised version of the following four (4) forms:
- Residential Resale Real Estate Purchase Contract;
- Commercial Real Estate Purchase Contract;
- Vacant Land/Lot Purchase Contract; and
- Residential Lease Agreement.
OVERVIEW
A.A.C. R4-28-701 states:
Compensation Sharing Disclosure: A real estate broker shall disclose to all the parties in a transaction, in writing at least three calendar days before closing, the name of each employing broker who represents a party to the transaction and who will receive compensation from the transaction.
The Arizona REALTORS® Contracts and Residential Lease Agreement all very clearly identify the Broker on behalf of buyer/tenant and the Broker on behalf of seller/landlord. These agreements additionally contain a section titled Compensation explaining in great detail that the brokers will be compensated for their role in the transaction. For example, Section 8f of the Residential Resale Real Estate Purchase Contract states in part, “Compensation: Seller and Buyer acknowledge that Broker(s) shall be compensated for services rendered as previously agreed by separate written agreement(s)…”.
For decades, it has been universally accepted that the aforementioned provisions satisfy the requirements set forth in A.A.C. R4-28-701. However, within the last few weeks, the Arizona Department of Real Estate has notified the Arizona REALTORS® that it does not believe that the language used in these forms adequately discloses the employing brokers and the fact that these brokers will be compensated.
While the Arizona REALTORS® adamantly disagrees with the Department’s sudden change in position, it is nonetheless revising its forms to ensure that its members are deemed to be in compliance with A.A.C. R4-28-701 as interpreted and enforced by the Arizona Department of Real Estate.[1]
CONTRACT REVISIONS
The Arizona REALTORS® Residential Resale Real Estate Purchase Contract currently includes a boilerplate term in Section 8q that identifies the employing broker of the buyer as “Broker on behalf of Buyer:” The revision to the form will now identify the employing broker of the buyer as “Broker represents Buyer and will receive compensation from the transaction:” A similar change is made to the identification of the seller’s broker in Section 9a. The Department has stated that these very minor revisions will ensure compliance with A.A.C. R4-28-701. Corresponding changes have been made to the Association’s other contracts as well as its Residential Lease Agreement.
In contemplating these revisions, please note that the verbiage may not be accurate if a broker chooses to represent a party without compensation. In such circumstances, the broker should disclose to the parties that they are not being paid. Best practice would be to state “Broker identified in Section 8q [or Section 9a] is not being compensated for their services” in the Additional Terms and Conditions Section of the Purchase Contract.
Finally, Arizona law recently increased the jurisdictional limits of small claims court divisions from $3,500 to $5,000. A revision reflecting the higher amount has also been made.
Redline versions of each form reflecting the changes can be found at the following links:
- Residential Lease Agreement (Note: The RLA does not identify small claims court jurisdictional limits, so no change was required in that regard.)
Aaron M. Green, Esq., a licensed Arizona attorney, is the General Counsel for the Arizona Association of REALTORS®. This article is of a general nature and reflects only the opinion of the author at the time it was drafted. It is not intended as definitive legal advice, and you should not act upon it without seeking independent legal counsel.
Prior Form Revisions
The Arizona REALTORS® strives to keep all its forms up to date as laws change or industry practice evolves. Once released, the forms library contained on all the Arizona REALTORS® forms licensing platforms are updated.
Updates to forms are made to minimize your risk and ensure legal compliance. Don’t take a chance with outdated forms. Prior Arizona REALTORS® form revisions (2014 – 2026) can be found at: https://www.aaronline.com/2019/05/20/form-revision-updates/
[1] Recently, the Arizona REALTORS® dispelled the suggestion that A.A.C. R4-28-701 requires disclosure of a broker’s compensation amount to the other party to the transaction. A copy of the article can be found here. The Association also dispelled the rumor that the rule requires the disclosure of referral fees.