You must complete the fill-in-the-blanks below in order to start the quiz.
Before you enter your data in the Broker Audit Declaration, you will see this statement:
The Designated Broker shall complete this Audit Declaration and return it to the Department of Real Estate concurrent with Broker’s license renewal to:
Arizona Department of Real Estate (ADRE)
2910 N. 44th Street, Suite 100
Phoenix, Arizona 85018
Pursuant to A.R.S. § 32-2153(A)(17) and A.A.C. R4-28-303(A)(2)(f), this Audit Declaration is required as part of the Designated/Self Employed Broker’s Renewal Application or as determined appropriate by the Department‘s Audit Division. This Audit Declaration does not preclude an onsite or field audit of the books and records of the brokerage pursuant to A.R.S. §§ 32-2108(A), 32-2151.01(A) and 32-2175(H). The Department will use the information in the completed Audit Declaration when conducting any future field audit.
The Audit Declaration is an important report that will become a public record and be kept by the Department for at least five years. Please complete, sign and return the Audit Declaration to the Department with the License Renewal forms and fees. ALL NO answers require further explanation on Page 8. If you have questions relating to how to respond to any item, you may submit your question to the Department’s auditing staff through the Department Message Center. Statutes and rules are summarized, refer to the quoted source when answering the questions.
The following are the Statutes and Rules sited in the Broker Audit Declaration statement:
32-2153. Grounds for denial, suspension or revocation of licenses; letters of concern; provisional license; retention of jurisdiction by commissioner; definitions
A. The commissioner may suspend or revoke a license, deny the issuance of a license, issue a letter of concern to a licensee, issue a provisional license or deny the renewal or the right of renewal of a license issued under this chapter if it appears that the holder or applicant, within five years immediately preceding, in the performance of or attempt to perform any acts authorized by the license or by this chapter.
17. Failed or refused upon demand to produce any document, contract, book, record, information, compilation or report that is in the licensee’s possession or that the licensee is required by law to maintain concerning any real estate, cemetery or membership camping business, services, activities or transactions involving or conducted by the licensee for inspection by the commissioner or the commissioner’s representative.
R4-28-303. License Renewal; Reinstatement; Changes of Personal Information, License, or License Status; Professional Corporation or Professional Limited Liability Company Licensure; Administrative Severance
2. Any salesperson or broker applying for a license renewal shall submit the following information on the Application for License Renewal form:
f. To renew as designated broker for an employing broker, the designated broker shall complete and submit a signed Broker Supervision & Control Audit Declaration for the sole proprietorship or entity on whose behalf the broker acts as designated broker. The completed declaration shall:
- Be dated and filed before or with the broker’s renewal application, and submitted to the Department no earlier than 90 days before the broker’s license expiration date.
- Be in the form prescribed by the Department.
- State the broker’s compliance or non-compliance with, or the non-applicability of, specified statutes and rules.
- Identify all of the broker’s property management and trust accounts.
32-2108. Powers and duties of commissioner to make investigations and require information.
A. The commissioner on the commissioner’s own motion may, and upon a verified complaint in writing shall, investigate the actions of any natural person or entity engaged in the business or acting in the capacity of a broker, salesperson or developer and may at any time examine the books and records used in connection with the business insofar as the commissioner reasonably believes the books or records pertain to the transfer, sale, rental, lease, use or management of real property. In connection with an investigation, the commissioner or the commissioner’s representative may take testimony and may examine and copy documents and other physical evidence that relate to the investigation. If necessary, the commissioner or the commissioner’s representative may issue subpoenas to compel the testimony of witnesses and the production of documents and other evidence. If a person refuses to comply with a subpoena, the commissioner or the commissioner’s representative may apply to the superior court for an order to compel compliance.
32-2151.01. Broker requirements; record keeping requirements; definition
A. Each licensed employing broker shall keep records of all real estate, cemetery, time-share or membership camping transactions handled by or through the broker and shall keep employment records, including copies of employment status, for all current and former employees. The records required by this section shall include copies of earnest money receipts, confirming that the earnest money has been handled in accordance with the transaction, closing statements showing all receipts, disbursements and adjustments, sales contracts and, if applicable, copies of employment agreements. The records shall be open at all reasonable times for inspection by the commissioner or the commissioner’s representatives. The records of each transaction and employment records shall be kept by the broker for a period of at least five years from the date of the termination of the transaction or employment. The records shall be kept in the employing broker’s principal office or licensed branch office in this state or at an off-site storage location in this state if the broker provides prior written notification of the street address of the off-site storage location to the department.
32-2175: Property management records; requirements; audits
H. On request by the commissioner or the commissioner’s representatives for routine audit purposes the broker shall make available within a reasonable amount of time all records relative to property management accounts, including lease agreements, lease related documents and trust account records. The department is limited to auditing those areas that are related to the business activities of a broker and that have a material bearing on the accuracy of the audit. This subsection shall not limit the immediacy or scope of an audit if a violation of real estate statutes or rules is suspected.