B u l l e t i n

Arizona Department of Real Estate

T h e

ADRE Welcomes Three New
Directors

September 2003
Volume 29, Issue 3

The winds of change are

blowing. Three new directors have
joined the Arizona Department of Real
Estate: Todd Madeksza as Director of
Licensing and Education, Amy Bjelland
as Director of Administrative Actions,
and Blythe McLaughlin as Director of
Investigations.
For the last three years, Todd
worked for the Arizona State Senate
and has extensive policy and research
experience. Todd completed course
work for his PhD in Public Policy and
also has a Master’s degree in Public
Administration.
For the past two years, Amy
worked for the Arizona State House of
Representatives. Amy has a Juris Doctor
degree from the Arizona State University
and a Bachelor’s degree from the
University of Arizona.

Amy has had widespread
administrative actions experience.
She also has a history of working
with constituents at both the state
and federal levels. Amy is a member
of the Arizona State Bar.
An Arizona transplant, Blythe
worked for ten years as a state
regulator in Vermont. She is highly
qualified in the areas of securities,
investigations, licensing, and business
audits. Blythe has a Bachelor’s degree
from Bryn Mawr University and a
Master of Business Administration from
Simmons College in Boston.
Blythe replaces Cindy Ferrin,
who was promoted to organize the
newly created Consumer Assistance
Team. The Arizona Department of
Real Estate is thrilled to welcome the
new staff members!Œ

Inside this issue:
ADRE Welcomes Three New Directors

1

ADRE Reinforces Education Waiver Requirements

2

Commissioner’s Corner

3

Special Licensing for Business Brokers

4

Geologic Hazards in Arizona—Are You on Solid...

5

The Homeowner’s Insurance Crisis

6

Your Licensing Fees at Work!

7

Documentation—Make Life Easier and Stay Out of...

8

Administrative Actions

9

Ask ADRE

11

Our Mission
The purpose of the
Department is to protect
the public interest
through licensure and
regulation of the real
estate profession in the
State of Arizona.

ADRE Reinforces Education Waiver Requirements
By Todd Madeksza, Director of Education and Licensing

The Arizona Department of Real Estate’s
(ADRE) Commissioner's Rules provide for the issuance
of a variety of waivers upon written request to the
Commissioner, with evidence of good cause. Two of the
most popular requests received by ADRE are: a
conditional waiver for additional time to complete the
requisite professional continuing education courses for
license renewal; and a waiver of pre-licensure education
requirements for those seeking to take Experior’s
Arizona real estate licensing exam. Solid professional
education is a requirement for license renewal and one
of the strongest methods ADRE has to ensure that it can
fulfill its duty to protect the public interest.
The Department of Real Estate will reinforce
statutory minimum standards when reviewing waiver
requests of all kinds. While the Commissioner will still
consider all requests for waivers, only those licensees
providing strong factual evidence of good cause in
written format are eligible for an approval.
The Commissioner will only consider granting
waivers for continuing education when licensees have
shown a good faith effort during the previous two-year
license period to meet the continuing education
requirement. Compelling evidence must also be
provided as to why the credits were not attained by the
renewal date.
For waiver requests regarding pre-licensure
education requirements, the Commissioner will consider
cases where the applicant’s previous real estate
education has occurred within the preceding ten years.
Continuing Education (CE) Course Waivers
Licensees across the state are familiar with the

requirement to fulfill 24 hours of continuing education for
license renewal. When a waiver is granted, a prescribed
time frame is established for the applicant to complete
the remaining CE hours.
If there is insufficient cause, or no evidence that
the licensee responsibly attempted to accumulate some
portion of the requisite hours, the licensee’s current
license will expire. After expiration, the licensee is not
licensed to work as a salesperson or broker and must
complete the continuing education requirements and file
for renewal within one year of the expiration date to be
eligible for renewal.
Pre-Licensure Education Waivers
Pre-licensure waivers may excuse the candidate
from taking specific pre-licensure real estate classes in
consideration of previous education. Waivers may be
requested for the following: consideration of hours from
an accredited college or university, out-of-state real
estate courses that meet Arizona statutory requirements,
or an individual with a former Arizona real estate license.
In each case, supporting documentation is
required. All requests for waivers must be in writing and
require a detailed resume outlining the last ten years of
the applicant’s work history. Some waiver requests will
also require certified copies or forms of original evidence.
The applicant will be responsible for collecting this
information and providing it to the Department.
In conclusion, waivers were created to help
applicants facing uncommon situations – not for
licensees indulging in simple procrastination. For more
information about waivers, please contact the Licensing
and Education Division at (602) 468-1414, ext. 100.Œ

DO YOU HAVE TELEPHONE BLUES?
The last time you called the Department did you get “stuck” talking to someone’s voice mail?
This may be due to an increase in incoming telephone calls. For fiscal year 2003, ADRE’s telephone
system received 219,700 phone calls. This averages out to 105.6 per hour or approximately 1.8 calls
per minute!
The 219,700 calls represents a 26% increase in calls received from fiscal year 2002. The
increase in calls and shortages in staffing have made our callers more likely to get a recording rather
than a live person. Rest assured, staff are equally happy to help voice mail or live callers .
The Department is working on updating our phone system and alleviating the problem. In the
meantime, we appreciate your patience!Œ
V O L U ME 29 , I S S U E 3

Page 2

By Commissioner Elaine Richardson

At 6:00 a.m. Sunday morning, I was happily
riding my bicycle with a friend. I felt I had all the safety
precautions in place -- helmet, gloves, sturdy hybrid bike,
riding a county-maintained bike path around the Santa
Cruz River. I was enjoying the coolness of a Tucson
morning, reveling in that semi-euphoric state, when all of
a sudden, I hit an unexpected obstacle and was hurled
into the air. I landed on my face on the asphalt
pavement, in sad need of emergency care and repair.
While spending the next four hours in the
emergency room at the hospital, I had time to think. Of
course, work related issues are usually front and center,
particularly now that the important Stakeholders’
Meetings are ongoing. It made me realize how
complacent we can become with our surroundings and
often don’t see our own obstacles and pitfalls, continuing
with the status quo until we have a big crash. I feel we in
the real estate industry are stars in our economic
landscape. I am extremely proud to be part of this
industry. I also feel each of you that are involved in
making life more efficient, safe, professional and
prosperous for our clients should take extra credit for
going that added mile. I have heard almost zero
complaints about anyone traveling too far, wasting time
or incurring expenses relating to their participation in the
meetings.
Our most recent portion of our statewide
outreach tour included Green Valley, Rio Rico and Sierra
V O L U ME 29 , I S S U E 3

Vista. Licensees there were extremely responsive and
many wanted to become involved with our committees.
The general feeling seemed to be consistent that most
viewed this as a unique opportunity to have input into
how the Department relates to industry’s needs.
As an update, I have asked for and received an
interim report from most of the committees. Each is
progressing very well. Committee members have, in my
opinion, gone above and beyond what could be expected
of them, vacations and other time commitments
notwithstanding. Some committees have broken further
into sub-committees since there are so many issues to
be addressed.
With the progressive attitude of the Stakeholder
members, I know you will all do better than I did last
weekend and will land on your feet instead of your face
(not like me.)Œ

List of 10 Stakeholders’ Committees
•

Subdivision Rewrite

•

Cemetery Statute and Salesperson
License Requirement Review

•

Timeshare/Condominium Laws Review

•

Property Management / Trust Accounts /
Use of Security Deposits

•

Virtual Office Websites / Internet /
Advertising

•

Department Rules Rewrite

•

Illegal License Activity

•

Business Brokers’ Licensing

•

Suggested Fee Review

•

Increasing Professionalism
Page 3

A NOTE ABOUT GUEST COLUMN ARTICLES…
GUEST COLUMN ARTICLES DO NOT NECESSARILY REFLECT THE POLICIES OR INTERPRETATIONS OF LAW BY
THE ARIZONA DEPARTMENT OF REAL ESTATE. THEY ARE MEANT TO INFORM THE PUBLIC AND PROVIDE
VARIETY TO ADRE’S BULLETIN. ALL ARTICLES ARE EDITED FOR SPACE LIMITATIONS.

Special Licensing for Business Brokers?
Guest Column By Brian G. Harron, Associate Broker, “The Restaurant Brokers.”

New Real Estate Commissioner Elaine
Richardson was a business broker in her prior
profession, serving Tucson and the surrounding areas.
Now Commissioner Richardson has undertaken an
extensive review of real estate rules and statutes and
may be considering the possibility of special licensing for
business brokers.
It is apparent that a certain minimum standard
must be created. This will protect the public from
overzealous licensees who lack a minimum level of
experience, education and knowledge to adequately
engage in the selling of a business and its personal
property, when the vast majority of transactions do
involve leasehold interests.
What might special licensing involve? Several
options include requiring a specialized license that might
be achieved by taking approved courses, which would
be in addition to the regular real estate agent or broker
licensing requirements, plus additional specialized
education during the renewal period. Commissioner
Richardson created a stakeholders’ committee of
business brokers to help review current licensing and
education requirements and to make recommendations.
This committee will consider whether or not the Arizona
Department of Real Estate should sponsor legislation to
either establish a business broker’s license or create a
requirement for recommended specialized courses.
Is there a problem that needs to be addressed?
Is that why special licensing is necessary? Does ADRE
get many complaints about business brokerage? The
jury is still out on whether there really is a problem that
needs to be addressed, and ADRE does not receive
many complaints about business broker transactions.
Business brokerage is a relatively new field of
V O L U ME 29 , I S S U E 3

real estate practice. It requires skills, education and
knowledge that most licensees who are engaged in
either in residential or commercial real estate do not
possess. Business brokerage requires special listing
information, unique sales contracts, distinct escrow
procedures, a considerable knowledge of business
finance, familiarity with business valuation procedures,
and an understanding of non-public/confidential real
estate and personal property transactions. It is different
and it is a specialty.
Changes in the licensing or education
requirements of business brokers will be forthcoming.
Maturity of this specialty all across the U.S. fosters
prestige, visibility and the perceived need of the
government to protect the public from the unknowing
and/or the unscrupulous.
Many business brokers do not favor special
licensing. Many favor extra, required, educationenhanced licensing, but not a specific additional license.
It is important to set minimum, mandatory education
requirements to practice “business brokerage” and to
protect the public.
What might these classes be? Some schools
offer specialized classes, and here are examples of
some that are currently available:
ƒ How to Buy or Sell a Business
ƒ Business Broker Disclosure
ƒ Business Valuation Procedures
ƒ Business Brokerage Purchase
Agreements
ƒ Listing a Business for Sale
ƒ ADA Impact on Business Sales
ƒ Business Brokerage Escrow
(Continued on page 6)

Page 4

Geologic Hazards in Arizona — Are You on Solid Ground?
Guest Column By Larry Fellows, Director and State Geologist, Arizona Geological Survey.

Are you thinking about selling a house or
property? If so, do you know about the potential
geologic hazards and other problems that you or your
clients might have to cope with?
Arizona has a potential for damaging
earthquakes, but fortunately the potential is not as great
as it is in California, Nevada, or Utah. The Yuma and
Flagstaff areas are the most likely to experience
damaging earthquakes. At least one earthquake has
been recorded in every Arizona county in the last 60
years.
In parts of Maricopa, Pinal, Pima, and Cochise
counties, groundwater has been pumped faster than
natural recharge could keep up with. Removal of
groundwater caused particles in the aquifers to be
compacted. The land surface subsided and large cracks
called earth fissures formed. The land has subsided
more than 15 feet since 1950 in one area between the
Agua Fria River and the White Tank Mountains in the
western Phoenix metropolitan area. A comparable
amount of subsidence has taken place south of Eloy in
Pinal County. Large earth fissures, commonly as many
as 10 or more feet wide and 15 or more feet deep, are
present in many areas. Development is or will be
occurring in some subsiding areas.
Limestone crops out at the surface or is present
within a few hundred feet of the surface in much of
northern Arizona. Salt and gypsum are also present
near the surface south of Winslow and Holbrook.
Limestone, salt, and gypsum dissolve more easily than
most other types of rock. When they dissolve, sink
holes, caverns, springs, and related features form.
These features can cause serious problems. Those who
live in Coconino and southern Navajo and Apache

V O L U ME 29 , I S S U E 3

counties could experience problems related to the
dissolution and collapse of rock.
It’s always best to know about possible
problems such as these before selling or building.
That’s an easy way to avoid a lot of grief and expense!
The Arizona Geological Survey recently published a
book, A Home Buyer’s Guide to Geologic Hazards in
Arizona that describes the most common types of
geologic hazards and related problems in Arizona:
flooding, earthquakes, problem soils, landslides, debris
flows, subsidence and earth fissures, radon, and rock
dissolution and collapse. In the book, which sells for
$8.95 plus shipping and handling, the authors describe
the nature of the problem, general areas where the
problem occurs, the types of damage that may be
caused, and where one may obtain more information.
The Arizona Geological Survey is a state
agency headquartered in Tucson. For an overview of
the types of information available from the agency,
check out the website at: www.azgs.az.gov. The
website includes a section on “Geologic Hazards.”
Editor’s Note: For properties under the
jurisdiction of ADRE, subdivision developers are
required to disclose in the public report application any
geologic or environmental conditions that would be
detrimental to the purchaser’s health, safety, or welfare
per Commissioner’s Rule R4-28-A1203 (6) and (7).
Also, licensees involved in a real estate
transaction are required to disclose in writing to all
parties involved, any information possessed which
materially and adversely affects the property, which
could also include geologic hazards, per Commissioner’s
Rule R4-28-1101(B).Œ

Page 5

Special Licensing for Business Brokers? (continued …)
(Continued from page 4)

ƒ
ƒ
ƒ

Procedures
Rules & Regulations on Business
Brokerage
Financial Statement Analysis
How to Start a Business

Business brokerage associations are doing an
excellent job of educating members. Responsible
business brokerage firms are doing the same, and there
are renewal classes available. The Commissioner is

right—if you are going to engage in, or even occasionally
dabble in, the buying or selling of a business, then get
some education, join an association, be a professional,
and protect the public!
Editor’s Note: Mr. Harron is an officer of the
Valley Board of Business Brokers, a member of
Commissioner Richardson’s Stakeholders’ Committee on
Business Brokers’ Licensing and a member of the
esteemed International Business Brokers Association.
The committee will present their recommendations to
Commissioner Richardson on October 3rd.Œ

The Homeowner’s Insurance Crisis
By Guest Columnist K. Michelle Lind, General Counsel for the Arizona Association of Realtors®

The Problem
Homeowner’s insurance is generally required for
a buyer to obtain a loan and close escrow on a home
purchase. Most loan documents require homeowners to
maintain homeowner’s insurance for the term of the loan.
However, homeowner’s insurance in Arizona, as in other
states, is less available and more expensive than in
years past. The Consumer Federation of America
reports that homeowner’s insurance rates in Arizona rose
13.25 percent in 2001 and 14.82 percent in 2002. Some
homes may be virtually uninsurable.
The Cause
The insurance industry cites some of the
following reasons for the increased cost and reduced
availability of homeowner’s insurance:
· Number of recent catastrophes,
· Mold claims,
· Stock market losses,
· Repair cost increases, and
· Past use of these policies as a “loss leader” to
secure auto and other coverages.
People/ property most likely to be affected
Those most likely to be affected are:
· People who have made an insurance claim or
claims inquiry in the last five years;
· People with adverse credit issues; and
· A home on which an insurance claim has been
made, especially if the claim involved mold and
conditions conducive to mold, such as water
damage.
V O L U ME 29 , I S S U E 3

The Arizona Department of Insurance reports
that in 2002, consumers reported difficulty in obtaining
insurance for those dwellings that are: in unprotected
areas, low-valued, old, high-priced, or those that have
had any losses within the last three years. (Source: ADI
Press Release, April 2, 2003).
Reports from the Comprehensive Loss Underwriting
Exchange ("CLUE")
CLUE tracks both the person making an
insurance claim and the property on which the claim was
made. This repository of information purportedly
contains 95 percent of all insurance claims or claim
inquiries made in the United States for a five-year period.
The report includes information on the cause of loss and
the amount paid by the insurance company on the claim,
if any. The report also contains personal information on
the homeowner, such as the owner’s social security
number and date of birth.
Obtaining a claims history report
(Continued on page 9)
Page 6

Your Licensing Fees at Work!
By Ronald Passarelli, ADRE Deputy Commissioner

Have you ever wondered how your licensing fees are used? As a licensee of the Arizona Department of Real
Estate, you have a right to know how your fees are being put to work. Sometimes as individuals, we forget how many
others are involved in our profession. Here are some “Snapshot” statistics to give you a better understanding of the
services provided at ADRE:
Licensing - Fiscal Year 2003
Incoming Telephone Calls
% of increase from previous year

18,308
26.41%

Walk-in Individuals Serviced
% of increase from previous year

33,736
15.44%

Licenses Renewed
% of increase from previous year

20,325
4.17%

Total Applications Reviewed
% of increase from previous year

59,308
11.90%

Professional Education - Fiscal Year 2003
Schools Certified
Courses Approved
Instructors Approved

28
921(Class room)
77(Distance Learning)
478

Subdivisions - Fiscal Year 2003
Applications Received

1,778

Avg. Processing Time of Public Reports

31.5 days

Investigations Division - Fiscal Year 2003
Number of Complaints Received
% of increase from previous year

1,059
49.1%

Administrative Actions - Fiscal Year 2003
Number of Cases Received
% of increase from previous year

V O L U ME 29 , I S S U E 3

200
16.96%Œ

Page 7

Documentation — Make Life Easier and Stay Out of Trouble!
By Guest Columnist Stanley F. Bronstein, Attorney and C.P.A.

Documentation is just one of many forms of
communication. Throughout the years of my practice, I
have run into 3 types of professionals: the first
documents practically nothing, the second documents
practically everything and the third type is somewhere in
between.
Type 1 professionals are a nightmare to work
with. They are lawsuits waiting to happen. All of their
communication with other professionals and clients is
verbal. Their method of communication places a larger
burden on the recipient, as they must create their own
documentation if they wish to remember what they were
told. Also, the Type I professional doesn't have any
written proof as to the substance of the communication.
At best, not having written proof of communications leads
to misunderstandings, wasted time, important matters
"slipping through the cracks" and extra work. At worst,
not having written proof leads to lawsuits, since the
professional has no documentation.
Type 2 professionals are a dream to work with.
Just about all of their communications are written. Any
verbal communications are documented in writing. Their
exchanges are often so detailed that the need for any
subsequent verbal communication is totally eliminated.
Type 2’s often are able to get more work done, because
they are more organized and all their information is at
their fingertips. At worst, they have well documented
files. At best, they do a better job for their clients, save
their clients’ money, make life easier and keep
themselves out of trouble.
Type 3 professionals represent everybody else.

V O L U ME 29 , I S S U E 3

Many of their communications are documented and
many are not. They take fairly good notes and are
usually able to keep track of things that need to be done.
They have pretty good systems, but every so often, they
worry about whether something was missed. They are
usually pleasant to work with, but things may sometimes
get overlooked.
If you are a Type 2, you should congratulate
yourself. If you feel you are a Type 3 or even worse, a
Type 1, you should consider taking some of the following
steps:
1) Always keep a notepad or PDA (personal digital
assistant) with you.
2) Follow up all verbal conversations with a simple note
to the file as to the substance of the conversation.
3) Follow up on all important conversations with a
written letter, a fax or an e-mail.
4) Put copies of all correspondence and documents in
your files.
5) Consider putting a computerized tracking system in
place so that all of your notes will be indexed for easier
information retrieval.
Remember – if you think you are too busy to set
up a tracking system, you probably need one more than
anyone!
Editor’s Note: Mr. Bronstein is the author of
audio CD “How To Avoid Being Sued As A Real Estate
Broker,” and may be emailed at: sfb@yourpurposeinlife.
com.Œ

Page 8

Administrative Actions
COMMISSIONER’S FINAL ORDERS
Appealable Agency Actions
Leighton P. Clark (Phoenix)
File No. 03A-006-REL, Order May 20, 2003
The Department denied Clark’s application for real
estate salesperson’s license based on his 1996
disbarment as an attorney and 1991 misdemeanor
conviction for DUI, in violation of A.R.S. § 32-2153 (B)
(3), (7) and (10), which Clark appealed. After a hearing
before an administrative law judge, Clark’s license
application is denied.
Jeremy J. Jack (Phoenix)
File No. 02A-171-REL, Order May 20, 2003
The Department denied Jack’s application for renewal of
his real estate salesperson’s license based on his 2002
trespass conviction, for which he was on probation, in
violation of the statutory provisions of A.R.S. § 32-2153
(B)(7). Jack appealed the denial and after a hearing
before an administrative law judge, his application for
license renewal is granted.

Edward M. Jim (Payson)
File No. 03A-019-REL, Order July 1, 2003; Rehearing
denied July 30, 2003
The Department denied Jim’s application for real estate
salesperson’s license based on a 2000 conviction for
Aggravated Assault, a class 6 open-ended offense
(Continued on page 10)

The Homeowner’s Insurance Crisis (continued…)
(Continued from page 6)

A homeowner may be able to obtain a five-year
claim history at no cost by simply requesting the report
from their insurance agent. Homeowners may also
purchase a CLUE report on their own property. Buyers
may request a copy of the CLUE or claims history report
from the seller, but do not have the right to order a report
on a home they do not own.
The CLUE report is sold by a company called
ChoicePoint and currently costs $12.99. The report may
be obtained by calling 866-527-2600 or online at www.
choicetrust.com. Individuals may also obtain their
personal insurance history from the same company.
Insurance cancellations after close of escrow
Some insurance companies that use information
from CLUE or other insurance reporting agencies in their
underwriting practices obtain a report only after a binder
(contract for temporary insurance) is issued or after
escrow has closed and the policy is to be issued. Thus,
there have been numerous reports of homebuyers
having their homeowner’s insurance cancelled after
V O L U ME 29 , I S S U E 3

closing escrow on a home purchase.
An insurer can generally cancel a homeowner’s
insurance policy for any reason in the first sixty days
after issuance. See ARS §20-1652. Once a policy is
cancelled, the cost of replacement coverage can be two
to three times higher than the original cost, depending on
the reason for the cancellation.
Simply obtaining the CLUE report or claims history
does not solve the problem
The underwriting practices of individual
insurance companies vary, since not all insurance
companies use CLUE reports on both the person and the
property. The companies that do use CLUE or other
claims history reports evaluate the information in different
ways. Therefore, simply obtaining a copy of the report
will not tell a buyer how an individual insurance company
will evaluate the risk of insuring that particular buyer in
that particular home.
To obtain additional information on homeowner’s
(Continued on page 11)

Page 9

Administrative Actions (continued…)
(Continued from page 9)

subsequently designated a misdemeanor; 1999
conviction for Extreme DUI, a class 1 misdemeanor; and
a 1986 misdemeanor DUI conviction, in violation of A.R.
S. § 32-2153 (B)(7) and (10), which Jim appealed. After
a hearing before an administrative law judge, Jim’s
application is denied.
Benton Tom McMillan (Phoenix)
File No. 02A-164-REL, Order June 10, 2003
The Department denied McMillan’s application for real estate
salesperson’s license based on his 1995 conviction for Child
Abuse, a class 4 felony, in violation of A.R.S. § 32-2153 (B)
(2), (7) and (10). McMillan appealed the denial and after a
hearing before an administrative law judge, his application is
denied.
SETTLEMENTS BY CONSENT ORDERS
Disciplinary Actions
Hobson L. Black (Flagstaff)
No. 03A-042, Consent Order July 8, 2003
Black filed a false and misleading application for
licensure and violated statutory provisions including A.R.
S. § 32-2153 (B)(1), and (A)(3), including A.A.C. R4-28301 based on his 1983 conviction for Theft, 3rd Degree,
and his failure to disclose the conviction on his
application for licensure. Black’s real estate
salesperson’s license is revoked.
Michael D. Caruso (Tempe)
No. 03A-049-REL, Consent Order July 29, 2003
The Department denied Caruso’s application for real
estate salesperson’s license under A.R.S. § 32-2153 (B)
(2) based on his 1997 felony conviction for Conspiracy to
Possess with Intent to Distribute Marijuana. Caruso
appealed the denial and is granted a 2-year provisional
license, subject to specified terms.
Caleb Scott Whitehouse (Phoenix)
No. 03A-0780, Consent Order June 20, 2003
Whitehouse filed a false and misleading application for
renewed licensure and violated statutory provisions,
including A.R.S. § 32-2153 (B)(1), (A)(3) and A.A.C. R428-301 (F) based on his May 2001 convictions for Driving
V O L U ME 29 , I S S U E 3

Under the Influence and Endangerment, his failure to
disclose these convictions on his application for license
renewal, his March 21, 2003 conviction for Driving While
Under the Influence of Intoxicating Liquor or Drugs, a
class 4 felony, and his failure to report the 2003
conviction to the Department. Whitehouse’s real estate
salesperson’s license is revoked.
John D. Whittle (Mesa)
No. 03A-004, Consent Order June 20, 2003
After being approved for a provisional license in April
2003, Whittle subsequently advised the Department that
he was working in an another field, unrelated to real
estate, and was unwilling to comply with the terms of the
earlier consent order, in violation of A.R.S. § 32-2153 (A)
(24) and (B)(9). Whittle’s real estate salesperson’s
license is revoked.
Appealable Agency Actions
Mark A. Barroero (Oro Valley)
No. 02A-163-REL, Consent Order July 10, 2003
The Department denied Barroero’s application for real
estate salesperson’s license based on violations of
statutory provisions including A.R.S. § 32-2153 (B)(7)
and (9) for disciplinary actions, including suspension and
revocation, by the Arizona Registrar of Contractors
against contractors’ licenses for which Barroero was the
owner and qualifying party, and the entry of adverse
judgments that resulted in payment of claims chargeable
against Barroero by the Registrar’s Recovery Fund.
Barroero appealed and is granted a 2-year provisional
license as a real estate salesperson, subject to specified
terms. Œ
Page 10

Ask ADRE…..
The July 2003 issue of the Arizona Realtor® Digest had an article concerning brokers
paying an agent after they have left the brokerage. You may wish to review the Department’s
Substantive Policy Statement number 14, that is available on ADRE’s web site at: www.re.state.
az.us. To clarify some of the concerns the Department received following the printing of the
article, a broker is responsible for the payment of compensation directly to the licensee that
rendered the service to the client for the brokerage, as long as the licensee was actively licensed
to that brokerage at the time the service was rendered.
Also, the August 2003 Arizona Realtor® Digest has an article about the ability of a real
estate agent being able to sell a mobile home. There is an exemption in ARS § 41-2178 (B) (1)
for real estate agents to be able to sell an installed mobile home. However, there are strict rules
and regulations that the licensee must follow to do so. The Department strongly suggests that
all licensees contact the Department of Building and Fire Safety, Office of Manufactured
Housing at (602) 364-1003 before dealing with the sale or transfer of a mobile home,
manufactured home, factory-built building or subassemblies. Remember, when another
regulatory agency takes disciplinary action against a licensee for a violation of Rules or Statutes,
the Arizona Department of Real Estate may also take additional action against the licensee,
pursuant to ARS 32-2153 (B) (10).Œ

The Homeowner’s Insurance Crisis (continued…)
(Continued from page 9)

insurance
The Arizona Department of Insurance has
developed a comparison of homeowner’s insurance rates
to encourage consumers to comparison shop for their
insurance, which may be found at www.id.state.az.us/
index.html. The Department also developed a
“Consumer’s Guide to Homeowner’s Insurance,” which is
at www.id.state.az.us/index.html.
Advice to homebuyers
AAR is considering possible action to address
these concerns. Legislation may be necessary. In the
meantime, buyers should educate themselves about their
insurance company’s underwriting practices and shop
around for a company that will best suit the buyer’s
needs. Further, a buyer may want to request that the
seller provide the buyer with a five-year claims history on
the home, so any claims issues are identified early in the
transaction. Finally, buyers should apply for
homeowner’s insurance as soon as possible after
entering a contract to purchase a home.
Editor’s Note: Ms. Lind is a State Bar of Arizona

V O L U ME 29 , I S S U E 3

board-certified real estate specialist. You may visit the
AAR web site at www.aaronline.com.Œ

Do you have an article idea?
If you would like to submit an article to be
considered for inclusion in The Bulletin,
please send your article to the Editor via
email at: lcarrasco@re.state.az.us.
Submissions must be in MS Word format
and less than 500 wo
words.
rds.
Submissions of guest writers may not
necessarily reflect the opinion of the
Department and may be edited due to
space limi
limits.
ts.

Page 11

ARIZONA DEPARTMENT OF
REAL ESTATE
Main Office:
2910 North 44th Street, Suite 100
Phoenix, Arizona 85018
Phone: 602.468.1414
Fax: 602.468.0562
Southern Arizona Office:
400 W. Congress, Suite 523
Tucson, Arizona 85701
Phone 520.628.6940
Fax 520.628.6941

We are on the web:
http: //www.re.state.az.us

The Bulletin
An official publication of the State of
Arizona, Department of Real Estate.
Main Office:
2910 N. 44th Street, Ste 100
Phoenix, Arizona 85018
Phone (602) 468-1414
Fax (602) 468-0562
Southern Arizona Office:
400 W. Congress, Ste 523
Tucson, Arizona 85701
Phone (520) 628-6940
Fax (520) 628-6941

Janet Napolitano
Governor
Elaine Richardson
Commissioner
Ronald Passarelli
Deputy Commissioner
Liz Carrasco
Editor

© 2003, ARIZONA DEPARTMENT OF REAL ESTATE. THE ARIZONA REAL ESTATE BULLETIN, OR “THE
BULLETIN,” IS SCHEDULED TO BE PUBLISHED 6 TIMES A YEAR AND IS AVAILABLE FROM THE WEB SITE
ABOVE. FIRST-CLASS MAIL SUBSCRIPTIONS ARE AVAILABLE FOR $10 PER YEAR.
ARTICLES REPRINTED FROM OTHER PUBLICATIONS DO NOT NECESSARILY REFLECT THE POLICIES OR
INTERPRETATIONS OF LAW BY THE ARIZONA DEPARTMENT OF REAL ESTATE.
THE ARIZONA DEPARTMENT OF REAL ESTATE IS AN EQUAL EMPLOYMENT OPPORTUNITY , REASONABLE
ACCOMMODATION AGENCY.

Real Estate Advisory Board
R.L. Brown, Chair
Richard C. Allen, Vice-Chair
Gary Patrick Brasher
Eugene E. Cox
Vicki L. Cox-Golder
Gary Lee
Vince Pellerito
Lisa A. Suarez
Felipe Andres Zubia