DIALOG

The periodic bulletin
from
The Arizona Department of Real Estate
January-February, 2008
V o l um e 3 4 — I s s u e 1
Reflecting on the past year, I am proud of the
successes we achieved at Arizona’s Department of
Real Estate.
First and foremost, we are an
organization known for Promoting Mutual Respect
among the “Three Entities”: the public we protect,
the industry we oversee and our fellow employees.
Motivated by this new perspective, we shifted the
focus of the Department in three significant ways:
Sam Wercinski
Commissioner

Let The
Conversation
Continue:
A Message
from the
Commissioner

1.Reduce unnecessary regulation on good
practitioners, shift resources to focus on those
who harm the public.
The implementation of the four-year renewal license,
the pairing of the Designated Broker (DB) and Entity
licenses, and the use of Electronic License
Certificates has reduced unnecessary regulation and
allowed us to use more resources for protecting the
public.
These advancements, along with staff training and
volunteers from the Arizona Association of
REALTORS and the Southern Arizona
Homebuilders Association then lead to two major
achievements. By June 2007, the backlog of nearly
2,200 pending applications that existed when I
arrived in January was gone, and we reduced
license processing time from 63 days to same-day
service. This has allowed ADRE staff to focus on
other customer service and consumer protection
opportunities.
Without technology funding, we expanded our
Online License Renewal System to allow most
broker management functions to be completed
online. Also, 93% of licensees now use the system.
This allows even more Department resources for
protecting the Public and improving service to the
Industry.
To better protect the Public, we hired three
additional settlement officers and three new
investigators. We can better prioritize cases now
and conducted several significant enforcement and
compliance actions in 2007. For example, this Fall, I
issued a cease and desist order against Russell
Bosworth for property management violations

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
S A M W ERCINSKI , A RIZONA ’ S R EA L E STATE C O MM IS S IO NE R

resulting in losses of over $365,000 to 90 property
owners. We also helped over 50 consumers protect
$378,000 of earnest monies in a Mexican development
and established a protocol of cooperation with the
Sonoran government that assists our citizens owners.
We also helped over 50 consumers protect $378,000
of earnest monies in a Mexican development and
established a protocol of cooperation with the Sonoran
government that assists our citizens.
2. Focus more on Educating the Public and
Industry to prevent harm from occurring.
Last year we estimate we spoke with over 10,000
citizens at workshops and speaking engagements. In
January, I initiated “Commissioner’s Community
Conversations” (Triple C). This open door policy
facilitates regular dialog between the Three Entities
and helps us stay current of trends in the industry.
In February, I initiated our “Community Outreach and
Education” (COE) program. COEs are workshops
given every Spring and Fall in each of Arizona’s 15
counties. In 2007, we focused on subdivision public
reports and when it is necessary to have one. We also
covered proper lot splitting and the impact of illegal
subdivisions. Our upcoming COEs in March will focus
on Arizona real estate “Hot Topics” and more on
development.
3. Focus more resources to combat illegal
subdividers
While traveling the state, I met with officials, their staff
and the public. I heard a common concern and
learned about the harm illegal subdividers cause. For
example, an illegal subdivider will typically put in
substandard roads that erode with the first downpour.
Access then becomes limited for homeowners and
improbable for a school bus or ambulance. The cost to
fix the roads is then shifted to taxpayers. Current
estimates indicate illegal development will cost Arizona
taxpayers roughly $100,000,000 – $200,000,000. We
added more investigators to our Development
Investigations Unit and we are working closely with
other agencies and reputable practitioners. In my
opinion, illegal subdivisions are Department’s biggest
challenge in protecting real estate consumers today
and 2008 will highlight our commitment to this effort.

C OMMISSIONER @ AZRE . G OV

PAGE 1

Let the Conversation Continue:
Continue
A Message from Commissioner Wercinski
Continued from page 1

In 2008, look for on-going programs and new initiatives that serve Arizona better to include:
•
•
•
•
•
•
•
•

Home Buyers’ and Renters’ Bill of Rights
Work with the Department of Public Safety to gather data on the sale or lease of homes used as drop houses.
2008 COEs focusing on Arizona real estate “Hot Topics” and proper development.
PARTNERS For Success—(Protecting Arizona’s Realty Through New Efficiencies and Resource Sharing)—an ADRE led
working task force with the AG’s office, state and county agencies to combat illegal subdividers.
Consumer Protection Forums on real estate featuring directors from the Departments of Insurance, Financial Institutions
and Registrar of Contractors joining me.
New online services to allow educators and licensees to submit continuing education information online as courses are
completed. Completed work will be shown on the licensee’s Public Database page.
New online services will allow developers to submit Subdivision Public Report applications online.
A new Subdivision Public Report format that will be more consumer friendly and useable.

We remain committed to protecting the public and providing proper oversight of real estate professionals. I believe we proved this can be
accomplished best when the Three Entities work together. I look forward to these partnerships fostering a successful and prosperous New
Year.
Respectfully Yours,

Click here to view the ADRE 2007 Annual Report

Sam Wercinski
Arizona’s Real Estate Commissioner

Inside This Issue
Let the Conversation Continue:

1-2

Community Outreach
Home Buyers’ and Renters’ Bill of Rights

2
3

2008 Legislation
Drop Houses Executive Order

4
4

FY 2008 and FY 2009 Budget Update

5

Spring COE Schedule

6

U.S. Department of State Travel Requirements

7

Tax Information from the IRS
Triple C

7-8
8

Central Arizona Shelter Services

9

Mortgage Fraud

10

Feedback

11

Investigating Earth Fissures

12

Service Awards

13-14

Commissioner’s Advisory

15-16

Enforcement & Compliance

17-18

Disciplinary Actions

Commissioner Wercinski and Governor Janet Napolitano at the
Capitol collecting holiday gifts for children whose parents are
incarcerated.

19

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
S A M W ERCINSKI , A RIZONA ’ S R EA L E STATE C O MM IS S IO NE R

Commissioner with Paula
Singleton and Glenn Conroy,
Immediate Past-President
and Vice-President, Lake
Havasu Association of
REALTORS®.

C OMMISSIONER @ AZRE . G OV

PAGE 2

Governor Janet Napolitano announced the Home Buyers’ and Renters’ Bill of Rights in her State of the State address in
January. The Arizona Department of Real Estate created the Bill of Rights and will maintain it for the benefit of Arizona
consumers. Please utilize this valuable tool in conjunction with the Buyers’ Advisory Guide.

Arizona Home Buyers’ and Renters’

Bill of Rights
(A resource for all real estate consumers)

THE ARIZONA DEPARTMENT OF REAL ESTATE, in cooperation with industry professionals and the public, CREATED
THIS “BILL OF RIGHTS” TO HELP EDUCATE YOU, THE CONSUMER, OF YOUR RIGHTS WHEN PURCHASING PROPERTY.
As a buyer of real estate in Arizona, you have the right to KNOW material information about the property BEFORE YOU BUY.
THE FOLLOWING list represents some of the IMPORTANT MATERIAL FACTS you should educate yourself on before
purchasing any type of property in Arizona.
YOU HAVE THE RIGHT TO KNOW:
• If the property is located in an incorporated city or unincorporated part of the county.
•

If title insurance is available and if fire insurance can be acquired.

•

If you have fire and police protection and, if so, who provides this service.

•

If your roads provide access for fire protection and police service

•

If the roads are maintained, and by whom.

•

If utilities are available, and who provides them. (Water, Electric, Gas, Sewer, Trash)

•

If your water supply is adequate.

•

If the jurisdiction the property is located in has conservation restrictions and policies.

•

If your property is located in a school district, and the distance to the closest schools.

•

If there are any natural or geological hazards, pests or wildlife.

•

If there are essential services near your property such as grocery and medical services.

•

If there is crime in your area and the crime rate.

•

If there is a Seller’s Property Disclosure Statement or an Arizona Subdivision Public Report. You have
the right to review these documents before you purchase property.
There may be other items not listed above that you should educate yourself on before buying property.
For a full list, reference the Buyer’s Advisory Guide.

Visit www.AZRE.gov to begin answering your questions!
We are here to protect you and the PUBLIC.

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
S A M W ERCINSKI , A RIZONA ’ S R EA L E STATE C O MM IS S IO NE R

C OMMISSIONER @ AZRE . G OV

PAGE 3

2008 Legislative Update

The Department is tracking bills this session related to
important issues in Real Estate. If you have any questions
regarding the Department’s view on any of this legislation,
please contact Assistant Commissioner Tory Anderson at
tanderson@azre.gov.
HB 2005 Technical Correction; Real Estate Licensing

HB 2535 Subdivision Public Reports
This bill adds language to the public report statutes. It requires a
developer to offer a copy of the public report to a perspective buyer UPON
REQUEST. The developer is still required to give a copy to every buyer
before the buyer signs the contract.

SB 1006 Professional License Extensions; Military Members

This bill makes a minor, technical change to A.R.S. §32-2125.01. This is
most likely a striker bus.

This bill requires licensing agencies to extend the license of a person who
is called to active federal military duty for 180 days after the licensee is
taken off of active federal military duty.

HB 2123 Park Model Trailer Spaces

SB 1043 Real Estate Disclosure; Liens

This bill creates a new chapter under Title 33 which relates to the leasing
of park model trailer spaces. The enforcement of this bill comes under the
justice courts, similar to the Landlord-Tenant Act. It will not be regulated
by any state agency.

HB 2131 Homeowners’ Associations; Registration; Disclosure
This bill requires homeowners associations and condominium
associations to register with the Department of Real Estate. It requires
the Department to post information on our website regarding the
association, including every document which is recorded. The bill does
not provide any oversight or regulation by the Department.

HB 2141 Home Sales; Water Supply Disclosure
This bill requires licensed real estate agents and brokers to provide notice
of water supply status when advertising, promoting, or selling a residential
property.

HB 2142 Property; Disclosure; Water

This bill requires title insurance agents and real property escrow agents to
disclose in writing to the buyer and seller that title insurance may be
available.

SB 1232 Real Estate Department; Designation Removal
This bill removes the Business Broker designation from statute.

Editor’s Note: There are bills that the Department is aware of
that were not introduced by the time of publication. Those
bills include the following subject matter:
1. Changing the name of the Public Report to Subdivision
Property Disclosure Report
2. Expanding the Real Estate Advisory Board to allow
members from real estate related industries and to allow
greater flexibility for membership.

Real Estate brokers or salespersons must disclose to buyers whether
ADWR has issued a notice of adequate or assured water supply for the
property.

HB 2144 Land Divisions; Water Requirements
Requires any land division of five or fewer lots to have an adequate water
supply.

HB 2349 Loan Originator Licensing

Governor’s Executive Order—Drop Houses

Establishes a loan originator license within the Department of Financial
Institutions.

HB 2512 Loan Originator Licensing Fees
Establishes fees for loan originator license.

HB 2495 Real Estate Disclosure; Training Ranges
This bill requires a city or town that contains any portion of the sensitive
electronic testing range of a military base to notify the office of the base
commander when an application is received to 1) rezone the property; 2)
issue a building or other development permit; 3) subdivide or otherwise
divide the property. The Department of Real Estate is required to post the
map delineating the sensitive electronic testing range on the Department’s
website. The map will be filed by the base commander.

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
S A M W ERCINSKI , A RIZONA ’ S R EA L E STATE C O MM IS S IO NE R

Governor Napolitano signed Executive Order 2008-06 on
January 14, 2008. This Executive Order directs the
Department of Real Estate to work cooperatively with the
Department of Public Safety to track information on the sale
and lease of houses used as “Drop Houses”. The
Department of Real Estate is currently working with the
Department of Public Safety to develop a plan to gather this
data. If you have any ideas or suggestions for the
Department on this matter, please contact Tory Anderson at
tanderson@azre.gov.

C OMMISSIONER @ AZRE . G OV

PAGE 4

2008 Budget Update

Governor Napolitano released her budget management plan to address the revenue shortfalls in FY 2008
and FY 2009. We’ve managed our way through downturns before, and we’re doing it again now. There are
three parts to the Governor’s plan:
Agency Savings
$214,000,000
Budget Stabilization Fund: $393,000,000
Capital Financing:
$263,000,000
Total:
$870,000,000

Arizona Department of Real Estate
Personal Services
Expenditures
1%

2%

Employee Related
Expenditures
Professional &
Outside Services
Travel ‐ IS

2%

0%
13%

23%

The Governor’s Office has been working with state agencies since July 2007. Agency savings include:
• Deferred hiring
• Reduce spending on travel and equipment
• Implement efficiencies

59%

Travel ‐ OS
Other Operating
Expenses
Equipment

The Governor’s plan avoids an across-the board cut to state agencies. Her office worked collaboratively with each agency to identify savings. The
Department of Real Estate has planned savings of $230,800 in FY 2008 and $217,500 in FY 2009 to help overcome the shortfall. That’s 5% of our
appropriated budget. This resulted in lower staffing levels in our Licensing and Development Services Divisions while maintaining fully staffed
Investigations and Enforcement and Compliance Divisions which are essential to protecting the public and promoting a reputable real estate industry.
The Legislature (JLBC) released a budget which includes an across-the-board cut for state agencies of 10%. This cut does not take into account the needs
of individual agencies. ADRE has planned savings of 5% that date back to September 1, 2007.
The JLBC budget would require our Department to cut an additional $230,600 in FY 2008 and an additional $243,900 in FY 2009 over our planned savings.
What impact would this have on you and the Public?
First, let’s understand how the Department utilizes its appropriation. ADRE’s expenditures are 82% people: the team that processes licenses and
subdivision applications; the staff that assists consumers when harm has occurred; the folks that answer your questions and provide outreach and
education. We spend 13% of our budget on operating expenses—fixed costs such as rent and utilities. A mere 2% is used for Attorney General assistance
and legal representation at hearings to combat illegal subdividing and ensure licensees violating industry standards are dealt with appropriately. The
remaining 3% is being spent on equipment, technology upgrades to expand our online services and essential travel to ensure we serve all of Arizona.
Commissioner Wercinski has demonstrated that he is fiscally smart and he ensures that our appropriated funds are spent wisely to protect the Public and
promote a strong real estate industry.
Now, with this frame of reference, implementation of the JLBC Budget would result in staff reductions and the following impact on the Public and Industry:
• Licensing processing time increase from same-day service to 8-10 weeks.
• Phone calls and emails would not be returned for several days.
• Education processing time increased from 30 days to 90 days.
• Development Service processing time increased from 45 to 65 days.
• Inspections of Developments would be delayed or not completed at all.
• Education course audits will not be completed.
• Courtesy brokerage audits would be eliminated.
• 1,000 investigations would remain uninvestigated, reversing the gains we have made to better protect the public.
• 200 enforcement cases would remain unresolved, reversing the gains we have made to bring more timely closure to consumers and licensees.
• The Public is more subject to harm when phone calls and complaints cannot be addressed timely.
• The Public is more subject to harm when the Department does not conduct subdivision inspections.
• The Industry is penalized when applications cannot be processed timely.
• The Industry is penalized when the Department does not complete education audits.
• The Industry is penalized when the Department cannot investigate and close complaints.
• The Department is harmed when employees are overwhelmed with unrealistic expectations and workload.
The Governor does not support a 10% across-the-board agency cut because it will result in loss of services for the Public and Industry. The economy
cycles; it’s down now, but will turn up again. Arizona’s future is brilliant. The Governor’s Budget Management Plan makes sense and still allows for the
Department of Real Estate to provide needed services for the Public and the Industry.

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
S A M W ERCINSKI , A RIZONA ’ S R EA L E STATE C O MM IS S IO NE R

C OMMISSIONER @ AZRE . G OV

PAGE 5

Spring Community Outreach and Education (COE) Schedule
Sam Wercinski, Arizona’s Real Estate Commissioner, and his staff are coming to your county this spring! The focus of the spring
Community Outreach and Education (COE) program will be on “Hot Topics” in your community. We will also discuss illegal
subdivisions, drop houses, Homebuyers’ and Renters’ Bill of Rights and other consumer and industry concerns.
Mohave County – Lake Havasu City
Date: Tuesday, March 4th, 2008
Time: 1:00 – 2:30 pm
Host: Transnation Title Insurance
Location: Realtor Center –
2293 Swanson Avenue, Lake Havasu City, AZ

Pinal County - Florence
Date: Tuesday, March 18th, 2008
Time: 10:00 am - Noon
Host: Title One Agency
Location: TBD

Yavapai - Prescott
Date: Thursday, March 6th, 2008
Time: 9:30 am – 11:00 am
Host: Pioneer Title
Location: Yavapai Title Agency, 1235 E. Gurley St., Prescott, AZ

Maricopa County - Tempe
Date: Wednesday, March 19th, 2008
Time: 9:00 am – 11:00 am
Host:
Location: TBD

Coconino County - Flagstaff
Date: Thursday, March 6th, 2008
Time: 2:00 pm – 3:30 pm
Hosts: Pioneer Title Insurance
Location: TBD

Greenlee County – Clifton
Date: Tuesday, March 25th, 2008
Time: 11:30 am – 1:00 pm
Host: Greenlee County
Location: Greenlee County Board of Supervisors Meeting Room,
253 Fifth Street, Clifton AZ

Yuma County - Yuma
Date: Tuesday, March 11th, 2008
Time: 2:00 pm - 3:30 pm
Host: Yuma Title
Location: Hampton Inn, 1600 E. 16th Street
La Paz County - Parker
Date: Wednesday, March 12th, 2008
Time: 10:00 am – 12:30 pm
Host: La Paz Title & Escrow
Location: TBD
Navajo/Apache Counties (Combined COE) – Pinetop-Lakeside
Date: Monday, March 17th, 2008
Time: 10:00 am – 11:30 am
Host: Pioneer Title
Location: West USA Realty Conference Room,
1746 E White Mountain Blvd., Pinetop
Gila County - Payson
Date: Monday, March 17th, 2008
Time: 2:30 pm – 4:00 pm
Host: Pioneer Title
Location: Gila Community College – Community Room, 201 N.
Mud Springs Rd., Payson

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
S A M W ERCINSKI , A RIZONA ’ S R EA L E STATE C O MM IS S IO NE R

Graham County - Safford
Date: Tuesday, March 25th, 2008
Time: 3:30 pm – 5:00 pm
Host: City of Safford
Location: Safford City Hall Annex Conference Room 808 8th Ave, Safford, AZ
Cochise County – Sierra Vista
Date: Wednesday, March 26th, 2008
Time: 11:00 am – 12:30 pm
Host: Pioneer Title Agency
Location: Pioneer Title Agency,
3511 Canyon de Flores, Suite C, Sierra Vista
Santa Cruz County - Nogales
Date: Thursday, March 27th, 2008
Time: 10:30 am 12:00 pm
Host: Santa Cruz County Board of Realtors & Santa Cruz County
Location: 2150 N. Congress Drive, Room 120, Nogales, AZ
Pima County - Marana
Date: Thursday, March 27th, 2008
Time: 3:30 pm – 5:00 pm
Host: Town of Marana
Location: Conference Center, Marana Municipal Complex,
11555 W. Civic Center Drive, Marana, AZ

C OMMISSIONER @ AZRE . G OV

PAGE 6

Update on Travel Requirements

Traveling to Canada, Mexico and Bermuda by Air
U.S. citizens and citizens of Canada, Mexico and
Bermuda traveling by air between the U.S. and Canada,
Mexico, Central and South America, the Caribbean, and
Bermuda are required to present a valid passport or other
WHTI-compliant documentation to enter (or depart) the U.S.
Traveling to Canada, Mexico and Bermuda by Land/Sea
Beginning January 31, 2008, the U.S. State Department
plans to move towards WHTI implementation at land and sea
ports of entry by ending the routine practice of accepting oral
declarations of citizenship alone. Citizens of the United
States, Canada, Bermuda and Mexico will need to present
the following to enter or depart the United States by land or
sea:
U.S. and Canadian Citizen
• Ages 19 and older: a government-issued photo ID, such
as a driver’s license, along with proof of citizenship, such
as a birth certificate or naturalization certificate.
•

•

Children ages 18 and younger: proof of citizenship, such
as a birth certificate.
Passports and trusted traveler program cards-NEXU,
SENTRI and FAST-will continue to be accepted for crossborder travel.

Passport Requirements
All citizens of the United States, Canada, Mexico, and
Bermuda are now required to present a valid passport when
entering the United States at any airport as of January 23,
2008.
This includes: Children of any age, including children of Legal
Permanent Residents who are United States citizens.
Mexican citizens who have a Border Crossing Card (BCC)
when entering the United States by air. (The BCC is still valid
in lieu of a passport and visa for land border crossings within
the border region.) The BCC may be used as a visa.

Tax Information for the Real Estate Industry

The IRS doesn’t just audit returns and collect taxes; the
agency also provides important and relevant tax information
to help small businesses and specific industries understand
and comply with some of the complex tax laws. The Arizona
Department of Real Estate has partnered with the Small
Business/Self-Employed Division of the IRS to help keep you
informed of your tax responsibilities. Check out www.irs.gov
for real estate-related tax information:
Real Estate
Tax tips, trends and statistics for the real estate industry.
Income Verification Express Service (IVES)
Transcripts to verify income can now be delivered
electronically through e-Services. The Income Verification
Express Service (IVES) will process and deliver the return
transcripts within two business days.
The new service also automates the delivery portion of the
process. Customers must now log on to the IRS.gov Web site
to retrieve requested transcripts from a secure mailbox
located on the e-Services electronic platform.
Foreclosures/Cancellation of Debt
Special Web Section Unveiled for Homeowners Who
Lose Homes
IRS.gov now includes a variety of information including a
worksheet designed to help borrowers determine whether any
of the foreclosure-related relief provisions apply to them. For
taxpayers who owe additional tax, it also includes a form to
request a payment agreement with the IRS. In some cases,
eligible taxpayers may qualify to settle their tax debt for less
than the full amount due using an offer-in-compromise.
Foreign Investment in Real Property Tax Act (FIRPTA)
Real estate professionals and rental agents/property
managers often interact with non-U.S. citizens acquiring U.S.
real property. The tax rules governing disposition of any U.S.
real property interest by foreign persons vary from those that
apply to U.S. citizens. Understanding the tax laws is critical
for real estate professionals to avoid personal liability for
improper U.S. federal income tax compliance. The disposition
of a U.S. real property interest by a foreign person (transferor)
is subject to the Foreign Investment in Real Property Tax Act
of 1980 (FIRPTA).
.
Continued on page 8

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
S A M W ERCINSKI , A RIZONA ’ S R EA L E STATE C O MM IS S IO NE R

C OMMISSIONER @ AZRE . G OV

PAGE 7

Tax Information for the Real Estate Industry

Triple C
(Commissioner’s Community Conversations)

Continued from page 7
Section 1031 (Like-Kind) Exchange
Generally, if you exchange business or investment property
solely for business or investment property of a like-kind, no
gain or loss is recognized under Internal Revenue Code
Section 1031. If, as part of the exchange, you also receive
other (not like-kind) property or money, gain is recognized to
the extent of the other property and money received, but a
loss is not recognized. The real estate section of
www.irs.gov has information about like-kind exchanges
under Tax Tips and includes links to Publication 544 and
instructions.
For additional updates, subscribe to e-News for Small
Businesses at www.irs.gov.
Editor’s Note: This information was provided to the
Department by the IRS.

INCOME VERIFICATION
PROCESSING

EXPRESS

SERVICE

(IVES)

In October 2006, the Internal Revenue Service began the Income
Verification Express Service (IVES) program, offering electronic
delivery of IRS transcripts and records available upon submission
of IRS Form 4506-T, Request for Transcript of Tax Return.
IVES provides two-business day processing and delivery of return
transcripts. The new service replaces the existing process that
required manual pick-up and delivery of transcripts from the IRS
Return and Income Verification Services (RAIVS) units located
across the country.
The new service automates the delivery portion of the process.
Customers must now log on to IRS.gov to retrieve their requested
transcripts from a secure mailbox located on the e-Services
electronic platform.
The “front end” of the process remains the same. Customers will
still need to fax the signed Form 4506-T, Request for Transcript of
Tax Return, to the one of the three designated RAIVS units.
For details on participation in the IVES program and submission of
requests, including fees and payments, please refer to
www.IRS.gov (keyword IVES).

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
S A M W ERCINSKI , A RIZONA ’ S R EA L E STATE C O MM IS S IO NE R

The following is a list of dates and times for the Triple C
(Commissioner’s Community Conversations) meetings for 2008.
This is the time to bring opportunities and challenges to the
Commissioner.
You will also hear about any upcoming
legislation, policy, or rule changes.
Commissioner Wercinski is committed to an open dialog. If you
would like to meet regarding a subject not listed,
Please contact Assistant Commissioner Tory Anderson at:
tanderson@azre.gov.

The following Triple C meetings will be held statewide
and are open to the Public and to the Industry.
Sierra Vista

2/7 & 9//5

1 pm-2pm

Flagstaff

2/15 & 11/13

1 pm– 2pm

Pinetop

2/11 & 10/24

1 pm-2pm

Tucson

2/22 & 10/24

1 pm-2pm

Schedule for Maricopa County
Triple C meetings in Maricopa County will be held at:
Arizona Department of Real Estate Phoenix Office
2910 N. 44th. Street, Phoenix
Subject: Property Management
1:30 pm - 2:30 pm
Friday, February 1 & Friday, September 5, 2008
Subject: Broker Management
1:30 pm - 2:30 pm
Friday, February 15 & Thursday, November 13, 2008
Subject: Real Estate Education
1:30 pm - 2:30 pm
Friday, February 22 & Friday, October 24, 2008
Subject: Developments
3:00 pm - 4:00 pm
Friday, February 22 & Friday, October 24, 2008

C OMMISSIONER @ AZRE . G OV

PAGE 8

Central Arizona Shelter Services: Serving the Valley’s Homeless since 1984

Mission: to empower men, women and children with diverse needs to end their homelessness by providing shelter and supportive services

CASS opened in 1984 in response to the community’s need for an agency to operate an emergency shelter for Central Arizona’s
homeless population. Since opening, CASS has provided over 3,700,000 nights of safe and secure shelter to over 145,000 homeless,
men, women, and children.
CASS’ years of service have proven that while shelter resolves the immediate housing need, there are numerous underlying issues that
cause homelessness and which must be addressed to achieve lasting self-sufficiency. Generally, unemployment, lack of transportation,
low levels of education or job skills, and lack of affordable housing may cause homelessness. Often however homeless individuals and
families have deeper issues that threaten self-sufficiency and housing stability.
Today, CASS clients have access to a continuum of supportive services to address behavioral health needs; substance abuse or
addiction issues; a history of domestic violence; and for children, developmental delays. It is CASS’ goal to provide clients with all the
tools necessary to end their homelessness.
Who Does CASS Serve?
CASS serves the homeless men, women, and children (estimated to include 10,000 individuals) within Maricopa County. About 50% of
this population is dealing with some level of substance abuse, a significant portion is mentally ill, 30% have a Correctional background
and 25% are U.S. Veterans. Sadly, about 20% of the homeless families and 25% of the single adult women, report a history of domestic
violence.
How Does CASS Serve?
CASS’ primary focus is providing emergency shelter. Currently, CASS operates two shelters in the Phoenix area. The Single Adult
Shelter, located on the Human Services Campus, shelters 300 men and 100 women over the age of 18. The Vista Colina Emergency
Family Shelter, located in the Sunnyslope Neighborhood, shelters up to 34 families with children each night. Vista is designed to provide
a stabilizing environment in which all family members receive the services they need to end their homelessness. Both shelters require
that clients go through case management to identify the causes of their homelessness and develop a realistic, long-term plan for reach
self-sufficiency.
Other programs CASS offers include the Vista Colina Child Care Program; a nationally-accredited program serves homeless infants,
toddlers, and pre-school aged children. The CASS Dental Clinic, a state-of-the-art facility provides a range of dental care from alleviating
immediate pain and suffering to full restorative work. Finally, CASS Employment Services, an in-house program places clients in
temporary or permanent employment so that they earn enough to obtain housing.
CASS Works! In FY2007-08:
CASS provided over 193,000 nights of emergency shelter to 3,791 homeless men and women
The Vista Colina Developmental Child Care Program provided 36,600 hours of security, love and encouragement for 216 homeless
children
The CASS Dental Clinic completed 1,300 appointments for dental care and treatment valued at over $1,364,000
CASS Employment found full-time employment for 762 clients at an average wage of over $9.00 per hour. That is better than
minimum wage!
For more information on CASS and how you can help, please contact CASS Development Team at (602) 417-9800 or visit the CASS
website at:
www.cass-az.org

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
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C OMMISSIONER @ AZRE . G OV

PAGE 9

Mortgage Fraud
By Dave Lewis & Amanda Dean

MORTGAGE FRAUD – “The worst crime no one has ever
heard of,” (Carol Lloyd, San Francisco Chronicle); “One of the
fastest growing white collar crimes in the United States,” (FBI);
and it is a big problem in Arizona.
What is mortgage fraud? It is an illegal scheme, often
involving two or more participants, to cheat a mortgage
company into making a loan to a consumer who cannot pay it
back, or to make a loan for substantially more than a property
is really worth. The result, typically, is foreclosure on the
property, a family on the street and huge financial losses for
the lender.
The first type of mortgage fraud – a home purchaser obtaining
a loan that he cannot pay back – has been around for a long
time. Someone who wants to buy a home grossly overstates
his income on the loan application in order to qualify for the
loan. In recent years this has been very easy and sometimes
loan officers (who earn commissions on the loans they make)
have assisted in this process. It often involves creation of
false documents such as pay statements and W-2 forms or
just simply “self-certifying” an inflated income. This practice is
being eliminated by the tighter controls and added scrutiny that
the lending industry is applying as foreclosures mount.
The second type of mortgage fraud – cheating a lender into
making a loan for more than the property is worth – is much
more complicated and involves a variety of schemes. Most
common in Arizona is the “cash-back deal.” In a typical case,
a property that has been on the market for many months at
$350,000 suddenly sells for $450,000 with an addendum to the
contract that provides for the seller to give the buyer the extra
$100,000. The problem is that a mortgage company never
sees the addendum. The mortgage company believes it has
made a $450,000 loan on a house worth $450,000. The buyer
pockets the $100,000 and then lets the property go into
foreclosure. In some cases, buyers have done this on multiple
properties.
“Left unchecked, cash-back deals cost
homeowners and lenders millions of dollars and could erode
confidence and values in Arizona’s real estate
market” (Catherine Reagor, Arizona Republic).

Another example of the second type of mortgage fraud
involves multiple “flips” of a property – often within a group of
co-conspirators. The first player in the scheme might buy a
property for $200,000, then sell it for $250,000 to another
participant, who sells it to another for $300,000, and so on
until eventually a member of the group takes out a 100%
loan on it for $500,000. The lender is left with a $500,000
note on a property worth $200,000, which the buyer will
allow to go into foreclosure.
One more example of the second type is “equity skimming,”
a practice in which someone buys a property at a realistic
price (say $400,000), then obtains an appraisal stating the
property is worth $475,000. The owner then refinances the
property for $475,000 and pockets the $75,000, “stripping”
the equity out of the property. The property is then allowed
to go into foreclosure or is re-sold to an unsuspecting buyer
who is fooled into believing it is worth $475,000.
All of these schemes are illegal and are damaging to lenders
(and on a broad scale to the nation’s financial markets in
general), to the housing and real estate industries, and to
legitimate homeowners and consumers.
Editor’s Note: Dave Lewis is the Investigations Manager
for ADRE. Amanda Dean is a Senior Investigator in the
Investigations Division.

Any such deal – involving cash back – is illegal and everyone
who participates in such a scheme including the home buyer,
the real estate agents, the loan officer, and the appraiser could
be prosecuted for mortgage fraud.

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
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PAGE 10

Department of Real Estate actively seeks feedback from Industry, the public and
Department employees.
ADRE on the radio!

KFNN -Drew
Grunwald and
Doug Blackwell
interview
Commissioner
Wercinski.

Commissioner Wercinski is a monthly guest on
various radio shows each month.
•
•
•

“On the Money” with Shannon Bair which is aired
on KFNX-1100 at 9:00 am Thursdays.
“Real Estate A-Z “ with Bill Asher & Bill Zervakos
on KFNX-1100 AM Fridays
“Let’s Talk Real Estate”- with Drew Grunwald and
Doug Blackwell on KFNN 1510 AM every weekday.

The Department continues with its Pilot Program to serve
the Public and the Industry in Northern Arizona.
Coconino County has graciously offered the Department
space at their offices. We have staff available to help in
licensing, education, investigations as well as
enforcement and compliance.

Joining Commissioner Wercinski at ADRE’s first
Consumer Protection Forum on 11/28/07were:
Christina Urias ( Director of Insurance), Felicia
Rotellini (Superintendent of Financial Institutions),
Fidelis Garcia, (Registrar of Contractors Director).

The ADRE 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. (A.R.S. § 32-2102)

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
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Hours are from 10:00 am to 4:00 pm with a 30-minute
lunch break. Staff are in Flagstaff the second Wednesday
of the month for a six-month pilot program.
The next scheduled dates of services are:
February 13, 2008 and March 12, 2008.
Walk-in or call in advance to set on appointment.

Commissioner Wercinski with Marshall Trimble,
Official Arizona State Historian.

C OMMISSIONER @ AZRE . G OV

PAGE 11

Investigating Earth Fissures
By Mimi Diaz

With the recent legislation mandating disclosure of earth fissures in real estate transactions, and the subsequent production of
earth fissure planning maps by the Arizona Geological Survey (AZGS), interest in locating fissures on specific properties has
intensified. As public awareness of this phenomenon increases, the demand for accurate fissure location and identification is
rising as well. Below are some recommended guidelines for those wishing to investigate fissures in a particular location.
The first step is to determine whether fissures have already been identified in or near the area of interest. You can do this by
examining the Earth Fissure Planning Maps (available through AZGS: www.azgs.az.gov, Tucson office, 416 W Congress
#100; Phoenix office, 1502 W Washington, co-located with the Department of Mining and Mineral Resources). These maps
will show you if there are fissures already reported in your area in general (not by specific locations), and give you an idea
whether further investigation is warranted.
Should you determine that fissures could pose a threat, the next step is to contact a qualified registered geologist or
professional engineer. The Arizona Board of Technical Registration (BTR) maintains a list of the registered geologists and
engineers in the state; however, they cannot tell you if they are qualified for fissure investigation. When selecting a consultant
(the geologist or engineer), be sure to ask how they are qualified to deal with fissures. For example, an aerospace engineer or
a volcanologist may be duly registered and qualified within their respective fields, but they may never have actually dealt with
earth fissures before. Find out what other fissure-related projects they have worked on, and ask for references (and check
them out!).
Some confusion exists about what geophysical methods exist to locate fissures that may not be visible on the surface. Be
sure to ask the consultant/contractor about the technology they use to locate fissures: is their technique documented and
published (and not secret, hidden, or “classified”)? Have their instruments been tested on areas with known fissures, and how
successful were they? Have they excavated any of their sites to verify the results of their technology?
Acceptable geophysical methods of locating fissures include seismic refraction (bouncing energy waves off different layers of
the earth), and electrical resistivity (running a current through the ground), and the best results are obtained from using a
combination of the two. Gravity studies help delineate depth to bedrock and subsurface topography, but do not distinguish
individual fissures.
Ground penetrating radar is not an acceptable geophysical tool for fissure identification. GPR works for horizontal planes, with
little to no water. Fissures are vertical and carry water at various levels.
You’ve no doubt heard the euphemism, “Buyer Beware” with respect to major purchases; but in these cases, the euphemism
could be extended to, “Realtor Beware” or “Developer Beware.” If you are in doubt as to the integrity of the contractor or
consultant offering to conduct earth fissure investigations, contact BTR at (602) 364-4930 (or http://www.azbtr.gov).
Additionally, if you think you have discovered a fissure that is not on one of our maps, please let us know by contacting Todd
Shipman in Tucson (todd.shipman@azgs.az.gov, (520) 770-3500) or Mimi Diaz in Phoenix (mimi.diaz@azgs.az.gov (602)
708-8253.
Editor’s Note: Mimi Diaz is the Phoenix Branch Chief, Agency Liaison for the Arizona Geological Survey

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
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PAGE 12

“Promoting Mutual Respect”
News from Personnel
Service Awards

25 Years of
Service!

15 Years of
Service!

Robin King

Mike Wheeler

Senior
Investigator,
Development
Investigations

Manager,
Enforcement

10 Years of
Service!

Marlene Delicata
Administrative
Assistant II
Investigations

5 Years of
Service!

Sue LaBotz
Auditor

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
S A M W ERCINSKI , A RIZONA ’ S R EA L E STATE C O MM IS S IO NE R

Jim Williams
Legal Secretary II
Compliance

Tory Anderson
Assistant Commissioner,
Policy & Special Projects

Tom Adams
Assistant Commissioner
Investigations

Janet Blair
Assistant Commissioner
Licensing, Professional
Education & Auditing

C OMMISSIONER @ AZRE . G OV

PAGE 13

“Promoting Mutual Respect”
News from Personnel
Service Awards

November
Employee-of-the Month
Toni Pittman
Development Investigator

Online Services Available:

As the Designated Broker…
•

Renew your entity license

•

Sever and transfer your employees

•

Approve hire and renewal request

As the Licensee…

Vicky Rokkos
Executive Assistant
Commissioner’s Office

is 1 of 19 individuals certified in Arizona State
Procurement. (The certification verifies an
understanding of Arizona State Procurement laws
in order to manage tax dollars wisely.)

•

Renew your individual license

•

Change your personal information

•

Request to be hired to a new
broker

•

Sever from your current broker

By completing available services online, you not
only save time, but you also save money!

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
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PAGE 14

Commissioner’s Advisory

Rights and Responsibilities when a Real Estate Firm
Closes
This advisory is a partial list of rights and responsibilities of parties
impacted by a real estate company closing. While a real estate firm
continues to be licensed by the Arizona Department of Real Estate,
all listings, escrows and other agreements legally entered into by
clients with this firm remain valid and enforceable. Agents do not
have the authority to cancel or transfer agreements or escrows
between clients and the brokerage. Individuals may have additional
questions after reviewing this list and are encouraged to contact the
ADRE Consumer Assistance Team at CAT@azre.gov or 602-7717730.
When a real estate firm closes:
Consumers
Property in escrow
• Buyers and Sellers close per the terms of their
purchase agreement.
• Buyers and Sellers may continue to use their
Agents to assist in the closing as long as their
Agents are hired by a new brokerage and avoid
practicing unlicensed activity.
• Listing, commission and co-broke agreements
are still valid.
Property Listings for Sale
• Listing agreements are effectively cancelled once
the firm closes. (NOTE: Listing Agreements are
contracts between the brokerage and property
owners. Agents may not transfer or cancel a
listing without authorization from the designated
broker as long as the real estate firm is actively
licensed.)
• Sellers may choose to sign a new listing
agreement using the same agent at a new
brokerage.
• Sellers may choose to sign a new listing
agreement using a new agent at a new
brokerage.
• Sellers may choose to personally market their
home or remove it for sale.
Property Management Agreements
• Management Agreements are effectively
cancelled once the firm closes.
(NOTE:
Management Agreements are contracts between
the brokerage and landlord. Agents may not
cancel a listing without authorization from the
designated broker as long as the real estate firm
is actively licensed.)

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
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•

Landlords should receive security and other deposits
being held in trust accounts and receive a final
accounting in accordance with ARS 32-2173 (C) &
(D).

•

Landlords may choose to sign a new agreement using
the same agent at a new brokerage.
Landlords may choose to sign a new agreement using
a new agent at a new brokerage.
Landlords may choose to personally manage their
properties.
Landlords should notify tenants in writing of all
changes in the property management to include new
contact or mailing instructions for rent payments and
communication needs.
Landlord and tenant lease terms remain valid.

•
•
•

•

Consumers
• Buyer Broker Employment Agreements
Buyer broker employment agreements are effectively
cancelled once the firm closes. (NOTE:
Agreements are contracts between the
brokerage and buyer. Agents may not cancel an
agreement without authorization from the
designated broker as long as the real estate firm
is actively licensed.)
• Buyers may choose to sign a new agreement using
the same agent at a new brokerage.
• Buyers may choose to sign a new agreement using a
new agent at a new brokerage.
• Buyers may choose to work with the same agent or a
new agent without an employment agreement.
• Buyers may choose to seek a home without a real
estate agent’s professional help.
Designated Brokers
Property Management and Trust Accounts
• Use the 30-day cancellation clause in property
management agreements to notify property owners
that the agreement will cease.
• Pay property owners what is due them from the
management trust accounts including tenant security
and other deposits if the broker is holding them. Only
broker funds should remain in the trust accounts.
• Escrow trust accounts should be properly liquidated
with funds accounted for and distributed to
appropriate escrow accounts at escrow companies
closing the relevant transaction. Receipts for the
transfer of funds should be placed in each transaction
file for future auditing.
Continued pg 16

C OMMISSIONER @ AZRE . G OV

PAGE 15

Commissioner’s Advisory
Rights and Responsibilities when a Real Estate Firm Closes
Continued from page 15
Follow the prescribed steps for closing a branch or corporate office. Refer to the Licensing Division Frequently Asked Questions (FAQ’s) for closing an
office.
Notify agents prior to the effective date of closure so they may have time to transfer their license to a new brokerage.
Designated Brokers
Provide written commission instructions to escrow companies that are closing transactions for the brokerage so that commissions can be
paid directly to seller and buyer agents less any fees or commission splits agreed to in an agent’s independent contractor’s agreement.
Associate Brokers/Sales Agents
Notify your clients of the brokerage closure and their rights and responsibilities as noted on Page 1 of this Commissioner’s Advisory.
Transfer your license to a new brokerage if you wish to remain active. Avoid conducting any unlicensed activity if your firm closes without notice. Once
a firm closes, all agents at the firm automatically go inactive. Determine your license status by visiting the ADRE Public Database at www.azre.gov
and view your electronic license certificate.
If you wish to remain inactive but have clients in escrow, you should advise your former client to seek an active agent to advise them during the
escrow.
Commissions earned while being employed by the broker may still be received whether an agent is active or inactive per commission instructions and
independent contractor agreements. In the absence of commission instructions and when the closed brokerage has also closed its operational bank
accounts from which commissions would be paid, agents are authorized to receive funds directly from escrow companies should the escrow company
decide to disperse these commissions at closing.

Disclaimer: A Commissioner's Advisory is intended to provide guidance on current issues or concerns that may
impact consumers and industry practitioners. It is not intended to circumvent or supersede current Arizona Real
Estate Law, Commissioner’s Rules or Commissioner's Policy Statements.

Consumer Protection Forum to be Held in Tucson
Commissioner Sam Wercinski is hosting a Consumer Protection Forum in Tucson on February 7,
2008. Directors or executive staff from the Departments of Financial Institutions, Insurance, Housing and
Register of Contractors will join the Commissioner. Consumers are encouraged to bring questions and
concerns to the forum to be addressed. Topics of discussion will include predatory lending, poor
construction, insurance concerns, real estate recovery funds and more. The forum is FREE and open to
the public.
It will be held at 4850 S. Park Ave. in Tucson from 7:00 - 8:00pm. For further information, contact Mary
Ultey at 602-771-7766 / 520-628-6778 or mutley@azre.gov.

“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
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PAGE 16

Enforcement and Compliance
in alpha order by type of action

Name
Location:
License
Summary

Order Date
Action

Name:
Location:
License
Summary

Order Date
Action

Arizona High Performance
Realty, LLC
Phoenix, Arizona
LC556341000
Respondents conducted
unlicensed activities, transferred
property management files to
another entity without notifying
clients of the change, closed
entity without appropriate notice
to clients of the change, closed
entity without appropriate notice
to clients or Department,
commingled personal funds with
client trust funds, failed to
provide documents to the
Department as requested,
converted trust funds to
personal use, failed to remit
$380,552.65 to ninety (90)
former clients.
October 26, 2007
Cease and Desist all activities
Summary Suspension of license.
Provisional License with Real
Estate Practice Monitor, $5,000
Civil Penalty, 12 hours of
Continuing Education,
appointment of Designated
Broker.
Patricia Cantu
Phoenix, Arizona
SA574179000
Respondent accepted
Compensation while unlicensed
And employed by Arizona High
Performance Realty, LLC.
December 11, 2007
$2,000 Civil Penalty, 6 hr CE in
Commissioner’s Standards, 30
Day license suspension (stayed),
2 year Provisional License with
Practice Monitor.

Name:
Location:
License
Summary

Order Date
Action

Name
Location:
License
Summary

Order Date
Action

Russell Bosworth
Phoenix, Arizona
SA 536222000
Respondents conducted
unlicensed activities, transferred
Management files to another
Entity without notifying clients of
Change, closed entity without
Appropriate notice to clients or
Department, commingled
Personal funds with client trust
funds, failed to provide
documents to the Department as
Requested, converted trust
funds to personal use, failed to
remit $380,552.62 to ninety (90)
former clients.
October 26, 2007
Cease and Desist all activities
Summary Suspension of license

William R. Bliss
Scottsdale, Arizona
BR010414000
Respondent appealed
Department's December 2006
summary suspension of
Respondent's license for
multiple violations.
July 26, 2007
ALJ ruling uphold Summary
Suspension, Department
issued an Order: Affirm
Summary Suspension;
Reinstatement of license, 180
day stayed suspension, 2 year
Provisional License with Real
Estate Practice Monitor, $5,000
Civil Penalty, 12 hours of
Continuing Education,
appointment of Designated
Broker.

Continued page 18

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PAGE 17

Enforcement and Compliance
in alpha order by type of action

Name:
Location:
License
Summary

Order Date
Action
Name
Lccation:
License
Summary

Order Date
Action

Name
Location:
License
Summary

Jake Lawrence Bortness
Chandler, Arizona
SA567197000
Respondent convicted in
April 2007 of Manslaughter, a
felony, in Pinal County Superior
Court. Respondent sentenced to
4 years incarceration.
September 18, 2007
Summary Suspension of License
Nicolas J. Capaz
Phoenix, Arizona
Unlicensed Applica
Respondent appealed
Department's April 2007 denial
of licensure. Denial based upon
Respondent's August 2000
felony conviction for theft.
August 28, 2007
ALJ ruling reversed Denial of
license, 2 year Provisional
License with Practice Monitor,
$25,000 Surety Bond.

April Deann Curtis
Carefree, Arizona
SA555674000
Respondent convicted in August
2005 of Conspiracy
to Distribute and Possess
Controlled Substances in Federal
court, sentenced to 3 years
incarceration.

Name
Location:
License
Summary

Order Date
Action
Name
Location:
License
Summary

Order Date
Action

Name
Location:
License

Order Date
Action

Order Date
Action

September 24, 2007
Summary Suspension of license

Name
Location:
License
Summary

Name:
Location:
License
Summary

Richard A. Dunn
Flagstaff, Arizona
Unlicensed Applicant
Department denied
Respondent's application for
license based on
multiple convictions.
August 13, 2007
ALJ ruling uphold Department
denial of license.

Order Date
Action

Order Date
Action

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Benjamin D. Goss
Buckeye, Arizona
SA576844000
Respondent convicted in April of
2006 of Conspiracy to Commit
Mail Fraud, a felony. In May of
2007, Respondent sentenced to
4 months incarceration and 3
years of supervised probation.
September 28, 2007
Summary Suspension of license
Cody J. Turton
Prescott, Arizona
Unlicensed Applicant
Department denied Respondent's
application for license based on felony
conviction.
August 9, 2007
ALJ ruling uphold Department
denial of license.
Alfred Ward III
Tucson, Arizona
SA560510000
Summary Respondent had multiple
felony convictions, denial of
license based on convictions.
December 11, 2007
License granted, 4 year
Provisional License with Practice
Monitor, $10,000 Surety Bond.

Chametra Chantae Watts
Phoenix, Arizona
SA576005000
Respondent failed to cooperate with
Department requests for a written
statement and documents
regarding a felony conviction
disclosed on original
license application
August 28, 2007
Summary Suspension of license

C OMMISSIONER @ AZRE . G OV

PAGE 18

Total Disciplinary Actions Resolved through Issuance of Provisional License and the Accelerated Settlement
Agreement Process (ASAP) and Consent Orders.
(Do you find this information valuable? Please let us know.)
Real Estate Agents/Brokers
February—March

April-May

July-August

September-December

Convictions

58

12

18

29

Failure to Disclose (in a
timely manner)

21

21

30

33

Unlicensed Activity

12

11

8

1

False Applications

10

7

11

8

Advertising Count

5

6

5

2

Abandonment of Office

0

0

0

1

Unlawful Sales
(Development)

5

0

5

0

Failure to Supervise

4

9

4

5

Other Violations

4

0

0

2

Dishonest Dealings

3

2

0

0

Incomplete Records

2

0

0

0

Breach of Fiduciary
Duty

1

0

2

3

Failed to Deal Fairly

1

0

3

1

Other Jurisdiction
Sanction

1

1

3

1

Property Management
Irregularity

1

0

0

2

Trust Account
Irregularities

1

0

0

0

Negligence

0

1

0

4

Forgery

0

0

2

1

Failure to Respond

0

0

1

1

Misrepresentation

0

0

3

0

Multiple Violations

0

0

4

2

Non-Compliance with
Order

0

0

1

2

you find this information0valuable? Please let us know.
SubdivisionDo
(Illegal)
0

1

2

Subdivision Violations

0

0

0

12

Timeshare Violations

0

0

0

1

129

70

102

113

Total Actions

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PAGE 19

Arizona Department of Real Estate

Main Office:
2910 North 44th St., 1st Floor
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

Northern Arizona:
Coconino County
219 E. Cherry St.
Flagstaff, Az.
www.azre.gov

DIALOG

The Periodic bulletin from the
Arizona Department of Real Estate

January-February 2008

An official publication of the State of Arizona

Janet Napolitano
Governor

department of real estate
Samuel P. Wercinski
Commissioner
Mary C. Utley
Assistant Commissioner
Communications & Public Relations
Real Estate Advisory Board
Gary Brasher, Chair
Lisa A. Suarez, Vice-Chair
Frank Dickens
Kathy Howe
Bruce Mosley
Thomas J. Pancrazi
Patti Shaw
Ann White
“D IALOG ” - T HE B ULLE TIN O F T HE A RIZO NA D EPARTMENT O F R EA L E STATE
S A M W ERCINSKI , A RIZONA ’ S R EA L E STATE C O MM IS S IO NE R

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