By Philip Haldiman, Editor-in-Chief | The Dealmaker
Violations of the real estate code went down 45 percent between 2013 and 2014, according to the Arizona Department of Real Estate.
Of the more than 1,300 cases investigated by the department last year, 239 of them were found to be violations, compared to 432 violations out of more than 1,200 investigated in 2013.
Chief of Staff Sarah Dobbins told The Dealmaker she attributes the decrease to enhancing real estate licensees education, including more comprehensive pre-license education and testing, enhanced real estate school, instructor and course approval guidelines and expanded broker license education including the education requirements for a Designated Broker of the Brokerage.
The number of investigations and audits being conducted has increased, but proven violations have decreased, she said.
This indicates that “ADRE’s strategic plan objective of enhancing the real rstate licensees education is delivering very positive results,” she said.
However, property management citations have gone up as a result of an increase in rentals and investors acquisition of rental properties recently.
Over the past three years, apartment developers have gone from building 700 units annually to more than 4,000, with building not expected to slow, said Belfiore Real Estate Consulting.
Property manager dos and don’ts
–A real estate license is required to perform property management services. Property management services are provided to the employing broker’s clients by persons licensed to the broker and with the knowledge and supervision of the designated or self-employed broker.
–A property manager may conduct property management services only on behalf of the employing broker to whom the property manager is licensed.
–The residential leasing agent or manager must have a license if they perform property management activities at more than one location during a workday or if they receive special compensation, i.e., commissions or property management fees, for their services.
–Within three banking days after receipt, the employing broker must deposit monies received from tenants in either the owners’ accounts or the property management firm’s trust account for the benefit of the owner.
–A broker should pay compensation to licensees for property management services from the broker’s business account, not the property management trust account.
–A property owner may be exempt from the licensing requirements to manage his or her own property.
–During the term of the lease, the security deposit belongs to the tenant, not the landlord. The landlord or the landlord’s agent, the real estate broker, holds the security deposit for the tenant pending full performance of the tenant’s obligation under the lease.
(Source: Arizona Department of Real Estate)
