Arizona Real Estate Statutes, Rules, and Commissioner's Rules
Two layers of law
Arizona real estate is governed by statutes in A.R.S. Title 32, Chapter 20 (the license law, beginning at §32-2101) and by the Commissioner's Rules in the Arizona Administrative Code, Title 4, Chapter 28. Statutes are enacted by the Legislature; rules are adopted by the Commissioner of the Arizona Department of Real Estate (ADRE) through rulemaking and carry the force of law. The Commissioner is appointed by the Governor, administers the Department, investigates complaints, subpoenas records, issues cease-and-desist orders, and imposes civil penalties or license discipline. A Real Estate Advisory Board advises the Commissioner but does not decide individual cases.
Neighboring statutes a candidate must recognize
- A.R.S. §33-422 - Affidavit of Disclosure, used for unincorporated land sold as five or fewer parcels.
- A.R.S. §32-2181 - public report required for subdivisions of six or more lots.
- A.R.S. §33-1301 - Arizona Residential Landlord and Tenant Act.
- A.R.S. §44-101 - statute of frauds; §33-1101 homestead; §25-211 community property.
Traps
Questions blur the layers: asking "which statute" when the answer is a rule, or the reverse. The Commissioner cannot award money damages to a consumer, cannot act as a court, and cannot imprison anyone; discipline runs against the license, and the Real Estate Recovery Fund may pay certain unpaid judgments. Watch for the five-versus-six parcel line and for questions that treat ADRE as a legislative body.
Rule of thumb: unincorporated land, five or fewer parcels, seller provides an Affidavit of Disclosure; six or more parcels, the developer needs a public report from ADRE.