A. A broker shall employ and pay only active licensees, and a licensee shall accept employment and compensation as a licensee only from either or both of the following:

Terms Used In Arizona Laws 32-2155

  • Broker: when used without modification, means a person who is licensed as a broker under this chapter or who is required to be licensed as a broker under this chapter. See Arizona Laws 32-2101
  • Compensation: means any fee, commission, salary, monies or other valuable consideration for services rendered or to be rendered as well as the promise of consideration whether contingent or not. See Arizona Laws 32-2101
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Department: means the state real estate department. See Arizona Laws 32-2101
  • Designated broker: means a natural person who is licensed as a broker under this chapter and who is either:

    (a) Designated to act on behalf of an employing real estate, cemetery or membership camping entity. See Arizona Laws 32-2101

  • Employing broker: means a person who is licensed or is required to be licensed as a:

    (a) Broker entity pursuant to section 32-2125, subsection A. See Arizona Laws 32-2101

  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • leasing: includes any lease, whether it is the sole, the principal or any incidental part of a transaction. See Arizona Laws 32-2101
  • License: means the whole or part of any agency permit, certificate, approval, registration, public report, charter or similar form of permission required by this chapter. See Arizona Laws 32-2101
  • Licensee: means a person to whom a license for the current license period has been granted under any provision of this chapter, and, for the purposes of section 32-2153, subsection A, includes original license applicants. See Arizona Laws 32-2101
  • Member: means a member of the real estate advisory board. See Arizona Laws 32-2101
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: means any individual, corporation, partnership or company and any other form of multiple organization for carrying on business, foreign or domestic. See Arizona Laws 32-2101
  • Property: includes both real and personal property. See Arizona Laws 1-215
  • Real estate: includes leasehold-interests and any estates in land as defined in Title 33, Chapter 2, articles 1 and 2, regardless of whether located in this state. See Arizona Laws 32-2101
  • Real estate broker: means a person, other than a salesperson, who, for another and for compensation:

    (a) Sells, exchanges, purchases, rents or leases real estate, businesses and business opportunities or timeshare interests. See Arizona Laws 32-2101

  • Real estate salesperson: means a natural person who acts on the person's own behalf or through and on behalf of a professional limited liability company or a professional corporation engaged by or on behalf of a licensed real estate broker, or by or on behalf of a limited liability company, partnership or corporation that is licensed as a real estate broker, to perform any act or participate in any transaction in a manner included in the definition of real estate broker subject to section 32-2155. See Arizona Laws 32-2101
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Salesperson: when used without modification, means a natural person who acts on the person's own behalf or through and on behalf of a professional limited liability company or a professional corporation licensed under this chapter or any person required to be licensed as a salesperson under this chapter. See Arizona Laws 32-2101

1. The legally licensed broker to whom the licensee is licensed.

2. An employer other than the legally licensed broker as described in paragraph 1 of this subsection if the all of the following apply:

(a) The employer holds a license.

(b) The licensee is the employer’s employee and receives a federal form W-2 wage and tax statement.

(c) The employer has the same employing broker as the licensee.

(d) The employer obtains written permission from the employing broker to pay the licensee.

B. If the licensee is licensed through a professional corporation or a professional limited liability company, the employing broker may pay and the licensee may receive compensation only through the licensed professional corporation of which the licensee is an officer and shareholder or the licensed professional limited liability company of which the licensee is a member or manager.

C. It is unlawful for a person, firm or corporation, whether an obligor, escrow holder or otherwise, to pay or deliver to anyone compensation for performing any of the acts specified by this chapter, as a broker, who is not licensed at the time the service is rendered. An identification card or certificate of license issued by the state real estate department showing that the person, firm or corporation holds a license for the year in which the payment is made or earned is sufficient proof to relieve from any penalty for a violation of this section the obligor, escrow holder or other person who relied in good faith on the card or certificate.

D. A real estate broker or real estate salesperson shall not collect compensation for rendering services in negotiating loans secured by real property unless all of the following apply:

1. The broker or salesperson is licensed pursuant to Title 6, Chapter 9 or is an employee, officer or partner of a corporation or partnership licensed pursuant to Title 6, Chapter 9.

2. The broker or salesperson has disclosed to the person from whom the compensation is collected that the broker or salesperson is receiving compensation both for real estate brokerage, when applicable, and for mortgage broker services.

3. The compensation does not violate any other state or federal law.

E. Notwithstanding subsection A or B of this section, brokers licensed under this chapter may employ residential leasing agents or managers of residential rental properties, as prescribed by section 32-2121, subsection A, paragraph 6. The exemption of residential leasing agents or managers of residential rental property under article 2 of this chapter does not exempt the designated broker from the responsibility to exercise reasonable supervision over these leasing agents or managers.

 

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