The bill SB1171 proposes significant updates to the Arizona Department of Real Estate's regulations and licensing processes for real estate professionals. Key changes include the requirement for employing brokers to maintain an active statutory agent with the Arizona Corporation Commission, the allowance for electronic retention of transaction records, and an increase in the maximum personal funds that can be deposited in trust fund accounts from $3,000 to $5,000. Additionally, it mandates that brokers involved in property management complete a specialized management clinic and revises the composition and qualifications of the Arizona Real Estate Advisory Board. The bill also streamlines the application process by removing certain requirements for license applicants, such as detailed employment history and the national examination for those with equivalent licenses from other states.

Moreover, the bill introduces new definitions, such as "address of record" and "distance learning," and emphasizes the need for the real estate commissioner to have relevant industry experience. It clarifies the application requirements, including the necessity for a proctored examination and the handling of inactive licenses. The bill also establishes new restrictions on designated brokers and enhances compliance measures for trust fund management, including monthly reconciliations and stricter guidelines on handling client funds. Overall, SB1171 aims to modernize and improve the regulatory framework governing real estate practices in Arizona, ensuring better oversight and accountability.

Statutes affected:
Introduced Version: 32-2101, 32-2104, 32-2106, 32-2108.01, 32-2116, 32-2123, 32-2124, 32-2125, 32-2125.02, 32-2126, 32-2127, 32-2132, 32-2135, 32-2136, 32-2151, 32-2151.01, 32-2153, 32-2163, 32-2174, 32-2197.08, 32-2197.10, 32-2197.16, 32-2155, 32-2121, 44-1801, 32-2194.27, 38-624, 38-623, 38-211, 41-1758.03, 41-619.55, 32-2130, 32-4302, 32-4301, 32-2160.01, 32-2153.01, 32-2197.04, 32-2197.07, 32-2154, 32-2157, 32-2197.14, 45-402, 48-3772, 48-3774.01, 45-576, 11-823, 9-463.01, 45-108, 45-108.02, 45-108.03, 32-2197.02
Senate Engrossed Version: 32-2101, 32-2104, 32-2106, 32-2108.01, 32-2116, 32-2123, 32-2124, 32-2125, 32-2125.02, 32-2126, 32-2127, 32-2130, 32-2132, 32-2135, 32-2136, 32-2151, 32-2151.01, 32-2153, 32-2163, 32-2174, 32-2197.08, 32-2197.10, 32-2197.16, 32-2155, 32-2121, 44-1801, 32-2194.27, 38-624, 38-623, 38-211, 41-1758.03, 41-619.55, 32-4302, 32-4301, 32-2131, 32-2110, 32-2160.01, 32-2153.01, 32-2197.04, 32-2197.07, 32-2154, 32-2157, 32-2197.14, 45-402, 48-3772, 48-3774.01, 45-576, 11-823, 9-463.01, 45-108, 45-108.02, 45-108.03, 32-2197.02
Chaptered Version: 32-2101, 32-2104, 32-2106, 32-2108.01, 32-2116, 32-2123, 32-2124, 32-2125, 32-2125.02, 32-2126, 32-2127, 32-2130, 32-2132, 32-2135, 32-2136, 32-2151, 32-2151.01, 32-2153, 32-2163, 32-2174, 32-2197.08, 32-2197.10, 32-2197.16, 32-2155, 32-2121, 44-1801, 32-2194.27, 38-624, 38-623, 38-211, 41-1758.03, 41-619.55, 32-4302, 32-4301, 32-2131, 32-2110, 32-2160.01, 32-2153.01, 32-2197.04, 32-2197.07, 32-2154, 32-2157, 32-2197.14, 45-402, 48-3772, 48-3774.01, 45-576, 11-823, 9-463.01, 45-108, 45-108.02, 45-108.03, 32-2197.02