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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
special
plate; police foundation
(NOW: timeshare salespersons; licensure)
As passed by the Senate, S.B. 1274 established a police foundation special plate and the Police Foundation Special Plate Fund.
The House of Representatives adopted a strike-everything amendment that does the following:
Purpose
Effective July 1, 2027, establishes a timeshare salesperson license and outlines licensure requirements and qualifications.
Background
The Arizona Department of Real Estate (ADRE) protects the public interest
through licensure and regulation of the real estate profession in Arizona. Under
direction of the Real Estate Commissioner (Commissioner), ADRE is responsible
for: 1) licensing and regulating real estate, cemetery and membership camping
salespersons and brokers; 2) investigating complaints from the public and
licensees regarding real estate transactions; 3) ensuring enforcement of real
estate statutes and rules; 4) providing proper educational materials to guide
and assist the public and licensees; 5) issuing public reports for timeshares,
subdivisions and unsubdivided land; and
6) inspecting brokers’ records and transactions to ensure compliance with
statutory requirements (A.R.S.
Title 32, Chapter 20).
Current statute requires any person acting in the capacity of a real estate, cemetery or membership camping broker or salesperson to be licensed by ADRE. To qualify for licensure as a real estate broker or salesperson, an applicant must: 1) be at least 18 years of age; 2) be free of any criminal convictions; 3) generally demonstrate active experience within the five years immediately preceding the application as a broker or salesperson; 4) complete a Commissioner-approved real estate broker's or salesperson's course and at least 90 classroom hours, or an approved equivalent, and satisfactorily pass an examination for the course; and 5) complete a written, electronic or other method of examination to prove the applicant’s general competency (A.R.S. § 32-2124).
Timeshare or timeshare property is real property ownership or right of occupancy in real property in accordance with statute governing timeshares. A timeshare plan is any arrangement, plan or similar device, whether by a membership agreement, sale, lease, deed, license, right-to-use agreement or other means, for which a purchaser receives ownership rights in or the right to use accommodations for a period of time less than a full year (A.R.S. §§ 32-2101 and 32-2197).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Licensure
1. Requires a person who wishes to act in the capacity of a timeshare salesperson in Arizona to be licensed.
2. Allows the Commissioner to adopt rules that specify the requirements of examination preparation courses for applicants for timeshare salesperson licenses.
3. Requires timeshare salesperson examination and preparation courses to be limited to the specific real estate laws, regulations, business practices and canons of business ethics that are directly related to the sale of timeshare interests in Arizona.
4. Requires the Commissioner to ascertain, by a written, electronic or other examination method, that an applicant for a license as a timeshare salesperson has both:
a) an appropriate knowledge of elementary arithmetic and of the English language, including reading, writing and spelling; and
b) a general understanding of the following:
i. statutes and adopted rules relating to the development, organization, regulation and sale or exchange of timeshare properties, the licensing and regulation of timeshare salespersons and real estate brokers and the role of licensed real estate brokers in reviewing and approving timeshare sales or exchanges;
ii. timeshare ownership methods, including deeds, certificates of ownership, contracts of sale and leases of timeshare properties and liens and foreclosure of timeshare properties; and
iii. the canons of business ethics pertaining to the operation of timeshare properties and the sale and exchanges of timeshare properties.
5. Allows an applicant for a timeshare salesperson license renewal to submit an application without an examination if:
a) the application is made within 12 months after the license expires; and
b) the license is not canceled, terminated or suspended at the time of application.
6. Allows a person licensed as a real estate broker or real estate salesperson to engage in timeshare sales activities without requiring a separate license.
7. Allows a real estate licensee to have only one employing broker in the timeshare category.
8. Deems it unlawful for a person, while in possession of an expired license, to act or attempt or offer to act in a manner that is included in the definitions of a timeshare salesperson.
9. Allows the Commissioner, for a person engaging in the business of a timeshare salesperson without holding a license, to do the following:
a) suspend or revoke a license;
b) deny the issuance of a license;
c) issue a letter of concern to a licensee;
d) issue a provisional license; or
e) deny the renewal or right of renewal of a license.
Certificate of Convenience
10. Allows the Commissioner to issue a onetime 30-day certificate of convenience, without examination, to any person who has applied and otherwise qualifies for a timeshare salesperson license.
11. Requires an employing timeshare plan developer's designated broker to certify by affidavit to the Commissioner that the timeshare salesperson applicant will be trained in applicable timeshare and contract laws before participating in any offer or sale.
Miscellaneous
12. Defines timeshare salesperson as a natural person who acts under the supervision of a licensed real estate broker to sell or exchange timeshare properties on behalf of a timeshare plan developer or other person.
13. Contains a statement of legislative intent.
14. Makes technical and conforming changes.
15. Becomes effective on July 1, 2027.
Amendments Adopted by the House of Representatives
· Adopted the strike-everything amendment relating to timeshare salesperson licensure.
House Action
APPROP 3/31/26 DPA/SE 17-1-0-1
3rd Read 4/28/26 43-14-2-0-1
Prepared by Senate Research
April 28, 2026
JT/HD/ci