Arizona Real Estate: Rights & Statutes

Instructor: Kyle Aken

Kyle is a journalist and marketer that has taught writing to a number of different children and adults after graduating from college with a degree in Journalism. He has a passion for not just the written word, but for finding the universal truths of the world.

For real property in Arizona, licensed salespeople and real estate agents must abide by the rights and statues. The agent must follow the Arizona Constitution Article 26 and other specific laws relating to advertising, licenses, compensation, record keeping, documentation, agency relationships, and handling of funds.

Arizona Agents

In Arizona, only a licensed salesperson or real estate broker can help you with the sale, purchase, lease, rental, or exchange of real property. The license of the agent or salesperson must be current and have an active status.

Say, for instance, Jack and Janet want to buy a new home and start a family. An agent can help them with many things related to real property: examination of the property, negotiating the purchase, lease, or sale agreement, advertising, and even maintaining escrow accounts. In some cases, the rights and statutes in Arizona real estate may differ from other states, which means it is important for Jack and Janet to be aware and understand what the salesperson or real estate agent can help them with when it comes to real property.

Arizona Constitution Article XXVI

Article 26 of the Arizona Constitution is called the ''Right of Licensed Real Estate Brokers and Salesmen to Prepare Instruments Incident to Property Transactions.'' There is only one section, and it states the powers of the real estate broker or salesman: In the exchange, sale, trade, leasing, or renting of property, the salesman has the right to draft, fill out, and complete without any charge or instruments related to:

  • Preliminary purchase agreements
  • Earnest money receipts
  • Mortgages
  • Deeds
  • Leases
  • Releases
  • Assignments
  • Bills of sale
  • Contracts for sale of realty

You can see how helpful a salesman can be for Jack and Janet to navigate through this process.

Real Estate Advertising

Arizona Real Estate Advertising Statutes, Policies, and Rules apply to all types of media and advertising. If any material is false or has misleading statements or representation about the licensee's business, any land, or contract offered for sale then the Commissioner has the right to revoke or suspend a license. This statute covers everything from advertising on property to what should be disclosed on advertising to the public.

This regulation makes it easier for Jack and Janet to make informed and educated decisions about the house they want to buy. They can also pursue a civil suit against a real estate agent or company that misleads them, as they have many protections by law.

License Violations and Penalties

Jack and Janet educated themselves on their rights before purchasing real estate. They learned that the commission in Arizona has the power to refuse a license for reasonable cause or even suspend, revoke, or impose another type of sanction on a licensee if they discriminate in any manner.

The law prohibits many practices in regard to color, race, religion, national origin, sex, elderliness, disability, and familial status. It includes many things from refusing to negotiate, sell, or rent a dwelling to misrepresentation in advertisements, and much more.


The average commission varies from state to state, and sometimes even within the state itself. For example, the average commission offered in northern Arizona is 0.5%, which is lower than the national average. This commission is about 1.1% lower than the typical commission of 6%. Ever since 2015, the northern Arizona real estate market has been growing.

Furthermore, unlike other markets, the commission that an agent receives is approximately 2.5%, where in northern Arizona it can be anywhere from 2.5% to 3%. Commission rates include things like the professional photography of the property to the marketing and open-house services.

Record Keeping and Documentation

Once Jack and Janet find a house they would seriously consider buying, they need to have a closer look at the documentation surrounding the home. This helps them get a better understanding of the history and current condition of the home and property, whether new or used.

In Arizona, the laws that regulate real estate licenses state that there is a requirement to keep certain records for three years after the transaction. It is the agent's duty to account for all property and money received from the client at any time in the relationship. Furthermore, it is the agent's duty to keep all personal and financial documentation of the client confidential.

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