ADRE Requirements Office Policy Manual

You must first complete ADRE Model Broker’s Policy and Procedure Manual before viewing this Lesson
Please purchase the course before starting the lesson.

Effective August 6, 2002, Commissioner’s Rule R4-28-1103 was adopted that requires a broker to establish and enforce written policies, rules, procedures, and systems to:

  1. Review and manage transactions requiring a salesperson’s or broker’s license; and use of disclosure forms and contracts. For real estate brokers, this includes real estate employment agreements under A.R.S. § 32-2151.02.
  2. Manage the filing, storing, and maintenance of transaction documents, handling trust funds, and use of unlicensed assistants by a salesperson or broker.
  3. Oversee delegation of authority to others to act on behalf of the broker.
  4. Familiarize salespersons and associate brokers with the requirements of federal, state, and local laws relating to the practice of real estate (or the sale of cemetery property or membership camping contracts, if applicable).
  5. Review and inspect documents that may have a material effect upon the rights or
    obligations of a party to a transaction and advertising and marketing by the broker and by salespersons, associate brokers, and employees of the broker.
Quick Quiz

Fill in the Blank:

Manage the, storing, and maintenance of transaction documents, handling trust funds, and use of unlicensed assistants by a salesperson or  .

NOTE: 32-2151.02. Real estate employment agreements; definition

A. All real estate employment agreements shall:employment-contract

1. Be written in clear and unambiguous language.

2. Fully set forth all material terms, including the terms of broker compensation.

3. Have a definite duration or expiration date, showing dates of inception and expiration.

4. Be signed by all parties to the agreement.

B. An employing broker shall not assign a real estate employment agreement to another broker without the express written consent of all parties to the agreement at the time of the assignment.

C. A licensee shall not procure, or attempt to procure, a real estate employment agreement from a party who is already subject to an existing exclusive real estate employment agreement unless the licensee has received written acknowledgment from the party that the execution of additional real estate employment agreements could expose the party to liability for substantial additional commissions. Nothing in this subsection shall be construed to abrogate any civil responsibility of a licensee arising out of this conduct.

D. A real estate employment agreement is not required for a licensee to represent a party in a transaction.

E. For this section, “real estate employment agreement” means a written agreement by which a real estate broker is entitled to compensation for services rendered according to section 44-101, paragraph 7.

Sales Associates are obligated to remain licensed, abide by all laws and rules and abide by the broker’s policies and procedures.

It shall be the responsibility of the broker, when out of the office for 24-hours or more, or unable to perform normal daily duties, to designate in writing the authority to a licensee the company employs, or to another designated broker, to handle the day to day operation of the company. A salesperson may not hire or fire other licensees. Each designation may not exceed 30 days (A.R.S. §32-2127(D)).

NOTE:32-2127. Licenses for additional places of business; branch office manager; broker’s temporary absence

D. If a designated broker is unable to act within twenty-four hours, he may designate a licensee whom he employs or another designated broker to act on his behalf. The designated broker shall make this designation in writing and shall keep the original designation at his office for one year from its effective date. A copy of this designation must be attached to any hire, server or renewal form submitted to the department which is signed by the designated broker’s designee. This designation shall not exceed thirty days’ duration and may authorize the designee to perform any and all duties the designated broker may legally perform, except that a salesperson shall not be authorized to hire or server licensees. A written designation is required for each temporary absence.

Quick Quiz

Fill in the Blank:
Sales Associates are to remain licensed, abide by all laws and rules and abide by the broker’s policies and  .

Advertising

This section should cover all advertising media, including the Internet and Social Media, and should contain:

  • A review of advertising for Fair Housing compliance and use of the Fair HousingMale hands holding a green hill with a small house logo.
  • A review of advertising for compliance with Regulation Z and Truth in Lending laws.
  • Instructions regarding the usage of Company logo, name, and phone numbers on advertising.
  • Policy for Broker reviews before placement of advertising.
  • Instructions regarding placement of Broker name and logo must be prominently placed at the top on each web page. If a broker uses a trade name, the legally licensed name must also be prominently displayed.

A.A.C. R4-28-502 provides, in part:

  • A Sales Associate shall not advertise property in a manner that implies that no salesperson or broker is taking part in the offer for sale, lease, or exchange.
  • A Sales Associate advertising the Sales Associate’s own property for sale, lease, or exchange shall disclose the Sales Associate’s status as a salesperson or broker, and as the property owner by placing the words “owner/agent” in the advertisement.
  • A Sales Associate shall ensure that all advertising contains factual claims and representations, and fully states factual material relating to the information advertised. A Sales Associate shall not misrepresent the facts or create misleading impressions.
  • A Sales Associate shall ensure that all advertising identifies in a clear and prominent manner the employing broker’s legal name or the dba name contained on the employing broker’s license certificate.
  • The Sales Associate advertising another broker’s listing may be subject to local MLS rules or other entities’ rules or guidelines. Note: The Sale Associate is not required to obtain a listing broker’s permission before advertising such property.
  • Before placing or erecting a sign giving notice that particular property is being offered for sale, lease, rent, or exchange, a Sales Associate shall secure the written consent of the property owner, and the sign shall be promptly removed upon request of the property owner.
Quick Quiz

Fill in the Blank:
A Sales shall not advertise property in a manner that implies that no salesperson or broker is taking part in the offer for, lease, or exchange.

  •  The Sales Associate acknowledges that the use of an electronic medium, such as the Internet or website technology, that targets residents of this state with the offering of a property interest or real estate brokerage services pertaining to property located in this state constitutes the dissemination of advertising and is subject to the same policies and procedures as other media.

ADDITIONAL COMMENT:
All advertising shall be submitted to management before use:

  1. To the Designated Broker (DB), Managing Broker (MB), Office Manager or other designated party.
  2. At least 24 hours before use, except for MLS related representations.

The types of advertising requiring review will include, but not be limited to the following:  Business Cards, Websites, Brochures, Placement Ads, Social Media Sites & Content and E-Mail Solicitations.

Back to: BROKER MANAGEMENT CLINIC #2-Broker Policies
© Copyright - Dodd's School of Real Estate