A. An action for the collection of compensation earned may be maintained in the courts of the state by any broker or salesperson. To commence the action the complaint shall allege that the plaintiff was a qualified licensed broker or salesperson at the time the claim arose. Prior to hearing the action the court shall require the plaintiff to prove the alleged qualifications.
B. The commissioner shall not entertain complaints regarding purely civil disputes between licensees concerning the earning, splitting or nonpayment of compensation.
C. Nothing in this section shall be construed to permit the payment or receipt of compensation in violation of sections 32-2155 or 32-2163.
Last Legislative Year: 1997
CASE NOTES
Analysis
Construction.
Applicability.
Judicial Aid.
Out-of-State Broker.
Because § 32-2163 was intended to recognize the interstate character of Arizona real estate property transactions, this section and § 32-2155 should not be construed to thwart that recognition. Adams Realty Corp. v. Realty Ctr. Invs., 149 Ariz. 405, 719 P.2d 291 (Ct. App. 1986).
An unlicensed real estate salesperson may not bring suit to recover a broker's commission for services requiring a license; judicial aid is unavailable to parties who seek recovery of broker commissions in violation of this section. Adams Realty Corp. v. Realty Ctr. Invs., 149 Ariz. 405, 719 P.2d 291 (Ct. App. 1986).
A buyer of Arizona real estate that agrees to assume an obligation to pay a commission to the buyer's out-of-state broker may not refuse payment on grounds that the out-of-state broker is not licensed in Arizona. Adams Realty Corp. v. Realty Ctr. Invs., 149 Ariz. 405, 719 P.2d 291 (Ct. App. 1986).
In order to state a viable claim and recover compensation for real estate broker services, plaintiff must be a qualified licensed broker or salesman at the time the claim arose. Wright v. Hills, 161 Ariz. 583, 780 P.2d 416 (Ct. App. 1989).
Judicial aid is unavailable to parties who seek recovery of brokerage commissions in violation of licensing requirements. Espil v. Sells, 847 F. Supp. 752 (D. Ariz. 1994).
A licensed, out-of-state broker may bring an action to recover a commission in this state's courts when that broker had a commission-splitting agreement with an Arizona broker, and when the Arizona broker had a contractual right to the commission and assigned that right to the foreign broker. Bustrum v. Gardner, 154 Ariz. 409, 743 P.2d 5 (Ct. App. 1987).