AZ RE Broker key terms

Administrative regulations issued by the Arizona Department of Real Estate that implement and interpret the state's real estate statutes, covering licensing, advertising, records, and trust fund handling.

The state agency that licenses brokers and salespersons, investigates complaints, audits trust accounts, and enforces the statutes and rules governing real estate practice in Arizona.

A license granted to an applicant already licensed in another state that has a cooperative agreement with Arizona, typically requiring a state-specific exam but waiving some standard coursework.

A credential allowing a person to perform real estate acts for compensation only while employed by and supervised by a licensed Arizona broker, never independently.

The higher-tier Arizona credential authorizing a person to operate a brokerage, supervise licensees, hold trust funds, and perform real estate acts independently or through associated licensees.

The licensed broker responsible for supervising affiliated licensees, maintaining transaction and trust records, and answering for their brokerage activities to the Department.

A licensee who contracts with a broker for services but is treated as self-employed for tax purposes, while remaining subject to the broker's supervision and Arizona advertising and record rules.

Requirements that all real estate advertising identify the employing broker's name and avoid false or misleading claims, applying to signs, print, websites, and social media promotions.

A designated label a group of licensees uses in marketing; it must be registered with the Department and shown together with the employing broker's name in all advertising.

The most severe disciplinary outcome, permanently canceling a license and barring the holder from reapplying for a set period, typically for fraud, conversion, or repeated violations.

A disciplinary action that temporarily withdraws a license for a stated period or until conditions are met, during which the holder may not perform licensed acts.

A directive from the Commissioner requiring a person to stop unlicensed or prohibited real estate activity, enforceable through civil penalties and injunctive relief.

Performing acts requiring a real estate license, such as listing or negotiating for compensation, without holding a valid Arizona license or a recognized exemption.

The heightened legal obligations an agent owes a principal, including loyalty, obedience, disclosure, confidentiality, reasonable care, accounting, and good faith and fair dealing.

A consensual arrangement in which a licensee acts on behalf of a client and is subject to the client's direction and the agent's fiduciary obligations under Arizona law.

A written notice, generally provided before the buyer or seller signs, explaining whom the licensee represents, the types of agency available, and the duties owed to each party.

A brokerage representing both buyer and seller in one transaction; Arizona requires informed written consent from both parties and limits the agent to neutral, non-advocacy conduct.

The duty to keep a client's nonpublic information, such as motivation or financial position, private during and after the agency relationship, subject to statutory exceptions.

The obligation to reveal known facts that could affect a reasonable party's decision, including adverse property conditions and the licensee's own interest in a transaction.

A form on which the seller reports known conditions and defects of the property, delivered to the buyer before contract acceptance; it is not a warranty of condition.

The written agreement setting price, financing, inspections, closing date, and contingencies, which becomes binding when accepted and delivered to the buyer or agent.

A contract condition that must be satisfied or waived within a stated period, such as inspection, appraisal, or loan approval, or the party may cancel and recover deposits.

A buyer's good-faith deposit held in trust and applied to the purchase price or returned according to the contract's terms if the sale does not close.

A disagreement over who is entitled to deposited funds; the broker must notify the parties and generally may not release money without written agreement or a court or Commissioner order.

A segregated bank account, typically interest-bearing, in which a broker deposits client funds such as earnest money, rents, and security deposits, kept separate from operating funds.

Illegally mixing client trust funds with the broker's personal or business money, or depositing trust money into an operating account instead of a designated trust account.

The unauthorized use or misappropriation of client funds held in trust, such as spending an earnest money deposit for the broker's own purposes; grounds for severe discipline.

The required periodic process of matching the trust account bank balance to the sum of individual client ledgers and outstanding checks, documented and retained for review.

Files a broker must keep for each transaction, including contracts, disclosures, and closing statements, retained for the period set by statute and open to Department inspection.

A three-party security instrument used in Arizona in place of a mortgage, in which a trustee holds title to secure a loan until repayment or foreclosure.

A nonjudicial foreclosure conducted by the trustee under a deed of trust after notice and a statutory waiting period, without court supervision.

The borrower's written promise to repay a loan on stated terms, including principal, interest rate, and payment schedule; it is separate from the security instrument.

A standardized disclosure given to a mortgage applicant shortly after application, showing estimated interest, payments, closing costs, and loan terms for comparison.

A final standardized statement delivered before consummation that itemizes the actual loan terms and settlement charges the borrower will pay.

A closing accounting that lists debits and credits to buyer and seller, including price, prorations, fees, and payoff amounts, showing funds due at closing.

An opinion of value prepared by a licensee using recent comparable sales, listings, and market data, adjusted for differences, but not a licensed appraisal.

An independent, licensed estimate of value required by most lenders, based on market data and property analysis, and governed by federal and state appraiser requirements.

The reasonably probable, legally permissible, physically possible, and financially feasible use of a property that produces the greatest value.

A local law dividing land into districts and specifying permitted uses, density, setbacks, and height, administered through permits and variances.

An administrative exception allowing a property owner to deviate from a zoning rule, such as a setback, because of unique hardship not caused by the owner.

A use that existed lawfully before a zoning change but no longer complies with current rules; it may generally continue but cannot be expanded without approval.

The duty to disclose known environmental conditions such as contamination, asbestos, or lead-based paint, with federal disclosure required for pre-1978 housing.

A doctrine allowing a person who openly, continuously, exclusively, and hostilely occupies another's land for the statutory period to gain title, subject to Arizona requirements.

A nonpossessory right to use another's land for a specific purpose, such as access or utilities, which may be appurtenant or in gross and runs with the land.

A policy protecting an owner or lender against loss from defects in title, liens, or encumbrances existing before the policy date, based on a title search.

Any claim, lien, or recorded document that may impair the owner's title or marketability and must be resolved or excepted before a clear transfer.