AZ LAW BOOK

1. A broker or salesperson within a year of the expiration of the broker's or salesperson's license, if the failure to timely renew the license was due to unintentional neglect by the licensee or administrative untimeliness by the department. 2. The activities of a licensee, while acting in a capacity for which the person's license was issued, that otherwise violate any provision of this chapter. 3. Any person who, on discovering that a license is required to carry on the person's present or planned activities, and before the issuance of a cease and desist order pursuant to section 32- 2154, notifies the department of the person's intent to immediately comply with this chapter, applies for the required license and ceases the prohibited activities pending issuance of a license. Nothing in this paragraph shall be construed to lessen or reduce the qualifications otherwise required of license applicants under this chapter or to diminish the authority of the department to deny a license to a person who does not meet all of the requirements for licensure. 32-2166. Activities while incarcerated; violation; classification A. While incarcerated a person who is licensed pursuant to this chapter shall not perform acts that require a license under this chapter. B. A person who violates this section is guilty of a class 6 felony. Article 3.1 Property Management 32-2171. Definitions In this article, unless the context otherwise requires: 1. "Property management firm" means any corporation, partnership or limited liability company licensed pursuant to section 32-2125, subsection A or a designated broker that by written agreement, manages rental property or properties for compensation. 2. "Rental agreement" means a lease or leasing agreement. 32-2172. Scope of article This article supersedes all provisions of law and rules that relate to property management. 32-2173. Property management agreements; contents, termination A. A property management firm shall write property management agreements in clear, unambiguous language, and the property management agreements: 1. Shall: (a) State all material terms and conditions of the property management firm's services, obligations, duties and responsibilities to the property owner. (b) Be signed by the property owner or his agent and the property management firm's designated broker or the broker's authorized real estate licensee. (c) Specify a beginning and an ending date. (d) Contain cancellation provisions that are agreeable to both parties. (e) Provide for the manner of disposition of all monies collected by the property management firm, including any tenant deposits. (f) Specify the type and frequency of status reports to the owner. (g) State the amount and purpose of monies the property management firm holds as an operating reserve for emergency and other purposes. (h) Provide for the disposition and allocation of interest earned on trust account monies. (i) State the terms and conditions of compensation the property owner pays for services pursuant to the property management agreement. (j) Not be assigned to another licensee or licensed entity without the express written consent of the property owner. 2. May: (a) Contain an automatic renewal provision, if the property management firm sends the owner a reminder notice at least thirty days before the renewal date. The notice does not negate any other cancellation term otherwise agreed to. (b) Provide for reasonable liquidated damages or cancellation fees for early termination of the agreement.

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Law Book Revised 11.02.2017