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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
real estate transaction coordinators
Purpose
Allows a broker to employ and pay an unlicensed or licensed transaction coordinator to assist with administrative duties during a real estate transaction and allows a transaction coordinator to accept employment and compensation from more than one broker at a time.
Background
The State Real Estate Commissioner within the Arizona Department of Real Estate licenses and regulates real estate brokers and salespersons, cemetery brokers and salespersons and membership camping brokers or salespersons (licensees) (A.R.S. Title 32, Chapter 20).
A licensed broker may employ and compensate an active licensee and a licensee may accept employment and compensation from the broker to whom the licensee is licensed. If the licensee is licensed through a professional corporation or a professional limited liability company (LLC) the employing broker may compensate the licensee through the licensed professional corporation or LLC. Statute prohibits a person, firm or corporation from compensating a person who is unlicensed at the time of service for performing an act as a broker. A broker may employ outlined unlicensed persons, including an unlicensed person to perform clerical, bookkeeping, accounting and other administrative and support duties who is not engaged in any other acts requiring a license and whose employment is not conditioned on or designed to perform duties otherwise requiring a license (A.R.S. §§ 32-2121 and 32-2155).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a broker to employ and pay an unlicensed or licensed transaction coordinator to assist a licensee with administrative duties during a real estate transaction.
2. Allows a transaction coordinator to accept employment and compensation from any licensed broker and from more than one broker at a time.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
February 15, 2021
LB/MC/kja