Short Title: Broker and Sales Person Responsibility to Client
This substantive policy statement is advisory only. A substantive policy statement does not include internal procedural documents that only affect the internal procedures of the agency and does not impose additional requirements or penalties on regulated parties or include confidential information or rules made in accordance with the Arizona Administrative Procedure Act. If you believe that this substantive policy statement does impose additional requirements or penalties on regulated parties you may petition the agency under ARS 41-1033 for a review of the statement.
Description of Practice/Procedure: A licensee is a real estate professional with a fiduciary duty to his or her client to act in the client's best interests as described in R4-28-1101(I). Reasonable care or competence may include recommending that a client seek professional or technical advice when the matter is beyond the expertise of the agent.
Licensees are expected to take reasonable steps to assist their clients in confirming or verifying information under circumstances in which a reasonably prudent real estate professional has reason to question the accuracy of the information being provided in a transaction, or where the client has questioned the accuracy of the information.
These considerations are intended to provide a reasonable standard for licensees to follow in complying with their duties and obligations under statute and rule.
Authority: Commissioner's Rule R4-28-1101 describes a licensee's 'professional duties' and A.R.S. § 32-2153(A)(3) and (22) identify violation of rules and negligence as grounds for disciplinary action against a licensee.
Policy Program: Enforcement
Effective_Date: Revised 6/1/2001; revised and renumbered 5/28/04, revised and renumbered 4/8/2005.