Arizona real estate agents are required to “disclose in writing to all other parties any information the licensee possesses that materially or adversely affects the consideration to be paid by any party to the transaction.” A real estate agent failure to disclose a known defect about the property could put their license and jeopardy and expose themselves to financial sanctions.
R4-28-1101 of the Arizona Administrative Code of Professional Conduct: states that real estate agents owe a fiduciary duty to the client and shall protect and promote the client’s interest. However, it also states that they are to deal fairly with all parties to the transaction–even the buyer.
What if a Complaint is made to the AZDRE?
If a complaint is made by a party to a real estate purchase that an Arizona real estate agent hid material information from the buyer than a notice will be sent to that real estate agent. The AZDRE will begin a thorough review of the complaint to make a finding of their own. As part of this review process it is highly likely that the AZDRE will ask the real estate agent for all documents pertinent to this situation. For instance, they may ask for all emails, text messages, contracts, addenda to the contract, etc.
Do Not Simply Ignore the Department’s Requests
If you are a real estate agent who has received a request from the AZDRE for documentation do not ignore them! Ignoring the problem will not make it go away. Don’t think that by sticking your head in the sand the AZDRE will forget about the alleged violation. In fact, simply ignoring the Department’s request for documents can cause you to lose your real estate license AND prevent your from renewing or reapplying for a license!
A.R.S. 32-2153(B)(11): States that “The commissioner may suspend or revoke a license, deny the issuance of a licese, issue a letter of concern to a licensee, issue a provisional license failure “to respond in the course of an investigation or audit by providing documents or written statements.”
If you have questions regarding this article, or would simply like to discuss your personal situation, please contact me cdunaway@davismiles.com or (480) 733-6800.