ADRE Announces New Broker
Audit Declaration Program

B u l l e t i n

Arizona Department of Real Estate

T h e

ADRE Commissioner Elaine

January 2004
Volume 30, Issue 1

Richardson recently announced the rolling
out of the Broker Audit Declaration
program effective January 1, 2004. This
will be a self-audit conducted by
designated (including self employed)
brokers. It will help them to ensure that
they are in compliance with Arizona
Statutes and Commissioner’s Rules, and
provide the Department of Real Estate with
up-to-date information on brokers and

entities. The Audit Declaration
program does not replace nor preclude
the Department from conducting field
audits as necessary.
All designated (including self
employed) brokers will need to
complete a Broker Audit Declaration
Form every two years. The due date
will be based on the broker’s individual
license renewal date, which will
(Continued on page 7)

Happy New Year!
We wish each and every one a most glorious and
prosperous new year.
From the Staff at ADRE
Stakeholder Meetings a Hit!
By Liz Carrasco

Commissioner Elaine Richardson

organized a series of stakeholder meetings
to bring together professionals from
different areas of the real estate industry
and from across the state. Participants
worked together to find common ground on
issues crucial to the industry. Ten
subcommittees were formed and
recommendations were then submitted to
the Commissioner to form part of ADRE’s

Inside this issue:
ADRE Announces New Broker Audit Declaration...

1

Stakeholder Meetings a Hit!

1

Profile of ADRE’s Two New Directors

2

Commissioner’s Corner

3

Let’s Raise the Bar as Commercial Brokers

4

Come On In, The Water Is Fine!

5

Frequently Asked Questions (FAQ)

6

Advisory Board Members Launch “Facilitators” Pilot...

6

Administrative Actions

9

upcoming legislation.
The following is a list of some
of the recommendations made to the
Commissioner:
§ Establish a business broker
designation, more specific
class material content and a
renewal process.
§ Clarify cemetery procedures,
(Continued on page 8)

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.

Profile of ADRE’s Two New Directors
By Liz Carrasco

Tom Adams
Director of Investigations and Auditing

Rachel Strachan
Director of Administrative Actions

An Arizona native born and raised in Bisbee, Tom
previously worked as the Deputy Director for the Arizona
State Medical Board. During this time, he worked to increase
the consumer rating from 37th nationally to 1st. Prior to that he
worked for the Arizona State Supreme Court.
In addition to his regulatory and government
experience, Tom also worked for thirty years in the field of
law enforcement. Tom holds a Bachelor’s degree from
Northern Arizona University in Criminal Justice and a Master
of Public Administration from Seattle University.
“My philosophy is that no one of us is as wise as
all of us together, and I am looking forward to taking on
new challenges and helping to bring the Arizona
Department of Real Estate to the next level,” said Tom.
Tom joined the Department on November 10th as
the new Director of Investigations and Auditing. Œ

Originally a San Francisco native, Rachel comes to
ADRE by way of Tucson, having previously worked as a felony trial attorney in the Pima County Legal Defender’s and
Pima County Public Defender’s Offices. Prior to that, Rachel
also worked as a Deputy Attorney General for the Pascua
Yaqui Tribe, handling real estate and housing issues.
Rachel has six years of experience as a trial attorney. She holds a Bachelor’s degree in Political Science and
a Juris Doctor law degree, both from the University of Arizona.
“I am looking forward to enforcing the statutes to
help protect the public, and the good reputation of real
estate professionals who do a good job every day,” said
Rachel. Rachel joined the Department on November 17th
as the new Director of Administrative Actions. Œ

New Baby at ADRE!
Congratulations to Carla Randolph!
(Executive Assistant to the Commissioner)
Who is a new mom to:
Makenna Christine Randolph
Born December 2, 2003!
Beautiful Baby Makenna at 10 hours old!

V O L U ME 3 0 , I S S U E 1

Page 2

By Commissioner Elaine Richardson

2003 in Review
January
Governor Janet Napolitano sworn into office.
February
Governor appoints Elaine Richardson as Commissioner.
Ron Passarelli joins ADRE as Deputy Commissioner.
Commissioner speaks at Arizona Association of
Realtors® Winter Conference in Prescott.
March
Commissioner’s task force assesses ADRE operations.
April
Liz Carrasco joins ADRE as Public Information Officer –
great move!
Carla Randolph appointed Commissioner’s Executive
Staff Assistant – another great move!
May
Arizona Senate votes to officially confirm Richardson.
Commissioner appointed Co-Chair of Real Estate Task
Force for the Arizona-Mexico Commission by Governor
Napolitano.
Commissioner kicks off outreach tour to outlying
counties. Yuma, Tubac and Tucson visited.
“Late Breaking News” reinstated.
R. L. Brown re-elected Chair of the RE Advisory Board.
Three new Advisory Board Members appointed by
Governor: Gary Brasher, Felipe Zubia and Lisa Suarez.
June
First Stakeholders meeting convenes – 85+ attend.
Arizona Mexico Commission’s Plenary held in Tucson.
July
Gasoline pipeline ruptures in Tucson area – Governor’s
office requests ADRE to investigate.
Cindy Wilkinson appointed Deputy Director for
Administrative Actions.
Bill Day appointed Deputy Director of Illegal Subdivision
Investigations.
Telephone system revamped – failed — update ongoing.
Work begins for 2004 online licensing renewal project.
Budget unexpectedly slashed 3.6% due to new agency
V O L U ME 3 0 , I S S U E 1

responsibility for retirement, health insurance and rent
increases.
August
Governor Napolitano visits ADRE – first gubernatorial
visit to ADRE in over two decades.
Commissioner continues outreach to Green Valley,
Santa Cruz county, and Sierra Vista.
Todd Madeksza joins ADRE as Director of Licensing and
Education.
September
Waiver program strengthened, backlogs in education
eliminated.
Commissioner kicks off Northern Arizona tour to Payson,
Sedona, Flagstaff, and Prescott.
Cindy Ferrin appointed Deputy Director of Subdivisions.
October
Stakeholders Committees submit official
recommendations to Commissioner – over 100 attend.
Commissioner attends ARELLO conference in Portland.
More outreach in Prescott and Tucson.
Vicky Murillo appointed Acting Deputy Director of
Education.
Update of new state website format begins.
November
Legislative package is drafted mostly from stakeholder
recommendations.
Commissioner participates in Arizona-Mexico
Commission’s RE Task Force meeting in Hermosillo.
Tom Adams joins ADRE as Director of Investigations and
Auditing.
Rachel Strachan joins ADRE as Director of
Administrative Actions.
Broker Audit Declaration is created to launch January 04.
December
Blue Ribbon Education Advisory Board is created.
Lynda Gottfried is appointed Deputy Director of Auditing,
(effective January, 2004.)
Transfer Tax That Never Was, Still Isn’t. Œ
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.

Let’s Raise the Bar as Commercial Brokers
Guest Column By Mike DePinto

We are all looking for that edge – that
advantage – that extra something that will lead to more
closed transactions and more MONEY! As commercial
brokers, we are entrusted to represent our clients’ best
interests. We are supposed to be the experts. We have
to be knowledgeable with issues involving terminology,
environment, legal issues, marketing, lending and
zoning, to name a few. We have great technology and
tools at our disposal. We should be using these tools
and always learning how we can do a better job.
If you’re like me, I like to be efficient and do
multi tasking – not waste time and have to dig up the
critical information on a property within our clients’
interest radar. All too often, I have done a search for
properties that match the important criteria I have asked
for, and invariably I will have missed some because
some crucial piece of information was missing. Does
this scenario best represent our clients’ interests or say
much about our professionalism? If a prospective
property does come into focus, even though some of the
criteria may be missing, I should contact the listing agent
to further inquire and ascertain the critical and correct
information.
Invariably, the conversation goes like this, “Hi,
you have a listing on a building for sale and I have a
client looking at purchasing a similar building for barber
shop use. Your remarks say office use, but ‘no retail
uses’. Do you know what the zoning classification is,
and does it have a variance or use permit?”
The answer may be, “No, but I think it is a
commercially zoned property and you could do a service
like a barber shop.” Really, how hard is it to pick up the
phone and call the city Planning and Zoning Department
to ask what the zoning is on the property?
V O L U ME 3 0 , I S S U E 1

My point is simple – let’s help one another be
successful and at the same time raise our standards,
while doing what we told our client we would do, and
what we are legally and ethically bound to do. It is
crucial to go the extra step by doing the research and
providing complete marketing information for fellow
brokers and customers!
Editor’s Note: Mr. DePinto is Vice President and
Designated Broker for StoneWest Properties Œ

Page 4

Come On In, The Water Is Fine!
By Guest Columnist Lisa Kaiser

A dear friend of mine once told me, “Don’t
laugh at me, but I think you would be good at selling real
estate!”
How many Realtors® have gotten into the
business that same way? It is amazing how many
people from different walks of life exist in the real estate
profession.
I actually worked in a real estate office back in
1979, when I decided to go to the Arizona School of
Real Estate in Scottsdale to study for my license. I
ended up taking the test three times, each time failing by
just one point. At age 19, I got frustrated and decided I
didn’t want to be involved in real estate anymore and
moved on with my life.
I have lived in the valley since 1964 and have
seen many changes in the real estate profession. The
biggest change is how everything is now computerized.
I remember in the late 70’s, where we had to manually
search through the MLS books every week and cut and
paste the information onto large index cards!
The forms used for each transaction have also
changed – which is a good thing. Although it may seem
like we now sign and fill out endless documents, they are
for our own good and protection, as well as for our
clients’ protection, and they leave less room for
confusion or misunderstandings.
Our society is now more fast-paced and we deal
with entirely different clients. As such, we must be
entirely different Realtors®. Even in these modern
times, it is still important to learn the “old school ways.”
By this, I mean the important skills of maintaining
personal contact with your clients and having a personal
touch. Taking time and having courtesy for other people
is extremely important and should simply be a part of
everyday life, like it was in the olden days.
I keep learning by listening, watching what
others say and do, and by learning from my own past
experiences, both good and bad. I am often surprised
by the number of Realtors® who are careless and
conduct themselves without any regard for others, only
being concerned about their commission. In my short
time as a licensed salesperson, I have had the good
fortune to work with professional and kind Realtors®
who have made the sales transactions a great
experience for all and have been genuinely nice during
V O L U ME 3 0 , I S S U E 1

the whole process.
It is extremely important to always keep learning
and to go the extra mile. For example, I found it helped
some clients for me to go to a tile store and get further
educated on what types of flooring existed so that I could
adequately answer their questions about flooring.
Never have I been in a business where there
are so many people out there willing to help you make
money! Obviously, if you’re making money, then they
probably are too, but isn’t that what business is all
about? The real estate industry can allow everyone the
opportunity to shine. There are few jobs out there where
one can make the kind of money that we all make in real
estate. If anyone says it is not a good time to get into
the industry because our economy is so bad, I would ask
this: How long does it take to get home from work,
especially when taking any of the freeways home?
I mention this because the freeways are always
jam-packed with people driving to and from home. Most
of those stuck on the freeways either have a home, are
looking for a home or want another one, but they all live
somewhere. And who is going to be there to sell them
their next home and give them the best possible
customer service, so they will tell their friends and
family? I will! I plan on being a Realtor® who listens,
observes and then applies what I have learned. I plan
on learning new ways and being the one people call for
their real estate needs. How about you?
I think new real estate agents have a better
opportunity to succeed more than anyone else. They
have the opportunity to learn from the best and put that
knowledge into action while still being flexible enough to
bend. This is similar to the child who is fearless -- they
have not had life’s experiences to inhibit them from
taking the steps forward into the unknown.
For those of you who have been in the business
for many years and are successful, I tip my hat to you
and your experience. Help us “newbies” learn and work
with you, not against you, nor by ourselves out there
facing the sharks. I think dolphins are much more fun.
For those of you who are new like myself… come on in,
the water’s fine! Let’s go swimming together and make
a big splash!
Editor’s Note: Ms. Kaiser is a newly licensed
real estate salesperson for West USA Realty. Œ

Page 5

Frequently Asked Questions (FAQ)...
Question: Do Design Center employees need a real estate license?
Answer: ARS 32-2121(A)(9) exempts from licensing any person
employed by a broker who performs administrative and support duties,
who are not engaged in any other acts requiring a license. Therefore, if a
Design Center employee assists a buyer in selecting paint, carpeting,
appliances, etc., and submits the results of the selections to the broker or
agent handling the sale to be included in or as an addendum to the
contract, that employee need not be licensed.
However, if the same person who conducts the business of the Design
Center also offers to or negotiates real estate sales, purchases,
listings, rents or leases, or any of the other activities listed in ARS 322101.46, (the legal definition of a “Real Estate Broker,”) then that
employee must be licensed by the state of Arizona. Œ

Advisory Board Members Launch “Facilitators” Pilot Program
By Cindy Ferrin, Deputy Director of Subdivisions

At the last Advisory Board Meeting on
December 4, 2003, Advisory Board Members
participated in training given on becoming a “citizen
facilitator.” In an effort to provide citizens with an
alternative avenue that might be less intimidating for
them to approach, or should the public have a problem
concerning the performance of the Department of Real
Estate, the new “facilitators” will be available to help act
as intermediaries in facilitating communication.
Most problems result from miscommunication, a
mistake, or something that caused the normal
administrative process to break down. Citizens who
experience delays in responses from the Department,
who express displeasure with perceived "bureaucratic
red tape," or who have a mind-set that they are not
getting the attention they deserve will be able to contact
an Advisory Board Member with their complaint. That
Advisory Board Member will then act as a neutral thirdparty between the Department and the complainant to
clarify the issues at hand, open the lines of
V O L U ME 3 0 , I S S U E 1

communication, and even help the citizen understand
the timeframes and processes at the Department. By
serving in this capacity, Advisory Board Members will be
helping the Department respond to citizen complaints in
a timely, courteous and impartial manner.
While Advisory Board Members will not
intervene in pending disciplinary action cases in the
Administrative Actions Division or in the Attorney
General's Office, they will assist citizens with other
division performance issues that may come up. This is
one of the many new pilot programs being launched
under the new administration of Commissioner Elaine
Richardson. The Advisory Board is scheduled to
evaluate the effectiveness of this pilot program in six
months.
Editor’s Note: The Real Estate Advisory Board
Members are: RL Brown, Chair; Richard C. Allen, ViceChair; Gary Patrick Brasher; Eugene E. Cox; Vicki L.
Cox-Golder; Gary Lee; Vince Pellerito; Lisa A. Suarez;
and Felipe Andres Zubia. Œ
Page 6

ADRE Announces Broker Audit Declaration Program (continued …)
(Continued from page 1)

provide the brokers with an easy date to remember. For
flexibility, the brokers will be allowed to submit their Audit
Declaration Form up to sixty days (60) prior to their
renewal date.
The Audit Declaration Form reviews:
General Records
Broker Review
Employment and Compensation
Disclosures
Various record keeping requirements
Trust Accounts
Handling of funds
Delegation of Authority
Broker Supervision and Control
Depending on the brokerage activities, some or
all areas may apply. Brokers will note any areas that are
not applicable on the Audit Declaration Form. There is
an area for explanation for any areas where the broker
shows a violation of or deviation from Statutes and/or
Rules.
The Broker Audit Declaration Form is already
available on the Department’s web site at www.re.state.
az.us. The broker will download and complete an Audit
Declaration Form and return it to the Department of Real
Estate’s Auditing Division. Since the broker will be
attesting to the accuracy of the Audit Declaration Form,
a written signature will be needed. It is the broker’s
responsibility to ensure receipt by ADRE. The signed,
completed form may be scanned and sent to the
Department by e-mail, regular mail or delivery service.
The broker can deliver the form to either the Phoenix or
Tucson ADRE offices. All of the pertinent addresses
and information will be available on the audit form.
The Department is in the process of creating a
Frequently Asked Questions (FAQ) area on the web site
that may also assist in completing the audit form. As the
Audit Declaration Form is used, and questions arise,
they will be added to assist other brokers. The Audit
Declaration Forms will be reviewed by audit staff and, if
appropriate, will be used in conjunction with future field
audits.
The Audit Declaration Form and process has
V O L U ME 3 0 , I S S U E 1

been in development for many months. It has been
refined and updated to be appropriate to all brokers.
Recently, Commissioner Richardson selected a test
group of several brokers to complete a trial of the Audit
Declaration Form. The comments and feedback were
positive and the process was relatively painless. ADRE
thanks those brokers for their input and cooperation!
This new program goes a long way toward
addressing the agency’s primary responsibility, which is
to protect the public. In addition, it provides educational
experience for the brokers. Most brokers will learn
something new while completing the Audit Declaration
Form. Many will find it an excellent tool to audit their
own staff and business. The current staffing levels at
the Department of Real Estate make it such that
conducting field audits every two years is impossible to
achieve. The industry continues to grow, but the
Department’s audit staffing has not grown
proportionately to meet industry needs. With current
budget issues, the Audit Declaration Form is a way to
accomplish more audits in the same timeframe, while
staying on track with staffing and budget, and giving
brokers an opportunity to identify and correct problem
areas on their own.
As mentioned, the start date of this new
program will be January 1, 2004. This means that
brokers with license expiration dates of January 31,
2004 will be the first ones to submit an Audit Declaration
Form. Since brokers with expiration dates in January or
February 2004 will not have a 60-day prior time frame for
completion, a one-time allowance of an extra sixty
days (60) for the Audit Declaration Form will be
given to those brokers with expiration dates in
January and February of 2004 only. However,
license renewals will NOT be extended That way, all
brokers will have had the same opportunity to receive a
60-day lead-time for Broker Audit Declaration Form
submission after the program’s inception.
Watch for upcoming Late Breaking News with
updates on the Broker Audit Declaration Form, its process,
comments and successes! In the meantime, any questions
about the Audit Declaration Form may be emailed to
auditing@re.state.az.us. Œ

Page 7

Stakeholder Meetings a Hit! (continued …)

§
§
§
§
§
§
§

annual reporting requirements and equalize
certificate fees
Increase certain penalties from a class 6 felony
to a class 5 felony
Establish a regulatory revolving fund to help
increase ADRE services
Establish various fees suggested by stakeholder
committee members.
Clarify advertising rules for “owner/agents”
Increase protections for purchasers’ or renters’
deposits
Clarify out-of-state co-brokering
Clarify brokers’ record-keeping and earnest
money requirements

§

Clarify property management licensing
exemption for on-site managers and leasing
agents
§ Clarify disclosure of renters’ tenant deposits
§ Clarify various subdivision statute definitions
§ Increase civil penalty fees for violators of
subdivision and timeshare laws
§ Clarify ADRE’s jurisdiction over virtual office
web sites
Well over 100 people participated in these
meetings that resulted in a series of very good proposals
that enjoy broad support. ADRE gives thanks to all the
participants who took time out of their busy schedules to
be part of a collective and successful process. Œ

A Note From the Editor…
The Bulletin’s Editor will be on maternity leave in February and March.
Please excuse any delays in publication that this may cause.
The ADRE team will do its best to publish the next edition promptly!

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

V O L U ME 3 0 , I S S U E 1

Page 8

Administrative Actions
COMMISSIONER’S FINAL ORDERS
Appealable Agency Actions
Beth Ann Funk (Phoenix)
File No. 03A-096-REL, Order October 28, 2003
The Department denied Funk’s application for renewal of
her real estate salesperson’s license based on her 1997
conviction for Theft, in violation of the statutory
provisions of A.R.S. § 32-2153. After requesting a
hearing before an administrative law judge, she failed to
appear and her application for license renewal is denied.
Javier Gonzalez (Phoenix)
File No. 04F-008-REL, Order December 9, 2003
The Department denied Gonzalez’s application for real
estate salesperson’s license based on his 2000
misdemeanor conviction for Theft, in violation of the
statutory provisions of A.R.S. § 32-2153. After
requesting a hearing before an administrative law judge,
Gonzalez failed to appear and his application for license
is denied.
Christopher G. Hignett (Peoria)
File No. 03A-086-REL, Order October 28, 2003
The Department denied Hignett’s application for real
estate salesperson’s license based on his 1999
conviction for theft and 1998 and 1999 convictions for
DUI, in violation of the statutory provisions of A.R.S. §
32-2153. After a hearing before an administrative law
judge, Hignett’s application is denied. The Commissioner
denied Hignett’s request for rehearing or reconsideration
of the Commissioner’s Order on December 7, 2003.
Justin R. Maurer (Mesa)
File No. 03A-095-REL, Order November 5, 2003
The Department denied Maurer’s application for real
estate salesperson’s license based on his convictions in
2000 for two counts of Domestic Violence Assault,
Domestic Violence Criminal Damage, misdemeanors,
and Possession of Marijuana, which was ultimately
designated a misdemeanor, in violation of the statutory
provisions of A.R.S. § 32-2153. After a hearing before an
administrative law judge, Maurer’s application is denied.

Jordan B. Sloan (Phoenix)
File No. 03A-015-REL, Order September 26, 2003
The Department denied Sloan’s application for real
estate salesperson’s license based on his 1997
conviction for Criminal Possession of a Forgery Device,
a class 6 Undesignated Offense; 1998 and 1999
convictions for Attempting to Obtain Narcotic Drugs by
Fraud, class 4 and class 5 Felonies, respectively, in
violation of A.R.S. §§ 32-2123 and 32-2153 (B)(2), (5),
(7), and (10). After a hearing before an administrative
law judge, Sloan was granted a provisional license
subject to specified terms.
SETTLEMENTS BY CONSENT ORDERS
Disciplinary Actions
Franklin L. Bennett, Sr. (Mesa)
No. 03A-109, Consent Order November 25, 2003
Bennett, acting as seller of a condo and manager of the
condominium homeowners association, failed to disclose
to buyers that an assessment by the homeowners
association was due and payable upon sale of the unit,
in violation of statutory provisions including A.R.S. § 322153 (A)(1), (3), (B)(4) and Commissioner’s Rule, A.A.C.
R4-28-1101 (A). Bennett’s real estate broker’s license is
suspended for 30 days and he is assessed a civil
penalty.
Brian H. Ford (Scottsdale)
No. 02A-120, Second Consent Order November 17,

V O L U ME 3 0 , I S S U E 1

Page 9

Administrative Actions (continued…)

2003
Ford stipulated under a previous Consent Order to
issuance of a provisional licensee subject to specified
terms and conditions while his license was on active
status. Because he is moving to another state and will no
longer work in real estate, Ford is no longer willing to be
subject to the terms of the first Consent Order, in
violation of A.R.S. § 32-2153 (B)(9). Ford’s provisional
license is revoked.
General Hunt Properties, an Arizona corporation
(Scottsdale)
No. 04F-015, Consent Order November 13, 2003
General Hunt Properties, in connection with two other
companies, owned and platted a 160-lot subdivision
known as Oasis Sunrise in the far east valley. General
Hunt Properties sold most of its share of the lots,
retaining five. General Hunt Properties sold one of its
remaining five lots without applying for and obtaining a
public report, and without notifying the purchasers of
their right to receive a public report before the purchaser
contracted to purchase a lot in Oasis Sunrise
subdivision, in violation of A.R.S. §§ 32-2181 (A) and 322183 (A) and (F). General Hunt Properties is assessed a
civil penalty, will notify the purchaser of the purchaser’s
right to rescind the purchase, and will comply with
subdivision statutes before offering for sale, selling, or
transferring any lot or parcel.
Inter-America Realty, Ltd., dba Cimarron Properties,
aka Cimarron Property Managers, and Michael Roy
(Tucson)
No. 99A-147, Second Consent Order October 17, 2003
Inter-America Realty, Ltd., and Michael Roy, designated
broker, sole owner and president of Inter-America Realty,
stipulated in a previous Consent Order to the existence
of a significant shortage in the broker’s trust accounts,
and Roy’s failure to properly maintain and reconcile the
trust accounts. Inter-America and Roy failed to correct
the deficiency according to the stipulated schedule and
failed to properly reconcile the trust accounts to client
records on a monthly basis, required pursuant to A.R.S.
§ 32-2151, contrary to the first Consent Order and in
violation of A.R.S. § 32-2153 (A)(3) and (24). Roy is to
correct the shortage within ten (10) days, and shall have
V O L U ME 3 0 , I S S U E 1

an audit of the broker trust accounts by an independent
CPA at the broker’s expense. Roy’s license is revoked
on the earlier of the sale of Inter-America or six months
from entry of the Consent Order, and Inter-America’s
license shall be revoked if Roy has not sold InterAmerica within nine months after entry of the Consent
Order.
Linette Reid (Tempe)
No. 03A-033, Consent Order November 18, 2003
Reid was negligent by failing to obtain the Seller’s
permission in writing before giving keys to a home to her
clients, the Buyers, before escrow had closed in violation
of A.R.S. § 32-2153 (A)(22) and Commissioner’s Rules
A.A.C. R4-28-1101 (A) and (J). Reid is assessed a civil
penalty and must complete additional continuing
education classes within ninety days.
Shanna Sawyer and Michelle Rich (Scottsdale)
No. 02A-051, Consent Order October 21, 2003
Sawyer and Rich assisted a prospective tenant/
purchaser, who contacted them in response to an
internet advertisement for brokerage services, to rent a
condominium in Scottsdale for her, her husband, and
their family dog. Sawyer and Rich failed to disclose in
writing that either or both owned the condominium, were
acting as agent and principal, and that the CC&Rs
prohibited tenants from keeping pets in the
condominium, in violation of A.R.S. § 32-2153 (A)(3), A.
A.C. R4-28-1101 (B) and (E)(1), formerly (E). Rich failed
Page 10

Administrative Actions (continued…)

to deal fairly with all parties, in violation of A.A.C. R4-281101 (A). Sawyer, as designated broker for the
employing broker at the time of the transaction, failed or
refused to produce contracts or other records in her
possession or that she was required by law to maintain
for inspection by the Department, in violation of A.R.S. §
32-2153 (A)(17). Each is assessed a civil penalty, shall
attend additional continuing education classes within
ninety days, and for two years is to provide a copy of the
Consent Order to each broker that employs either or both
of them.
John C. Scremin and John Scremin Development,
Inc., an Arizona corporation (Chandler)
No. 04F-026, Consent Order November 5, 2003
Through a series of transactions, Scremin Development
acquired 8 lots in a platted 10-lot subdivision and, without
first notifying the Commissioner of its intentions, applying
for, and being issued a public report. Respondents
advertised the subdivision and contracted to sell an
unimproved lot, in violation of A.R.S. §§ 32-2181(A), 322183 (F), and 32-2183.01 (F). The contract used did not
include the required public report disclosure or notice of
the purchaser’s 7-day rescission period, in violation of A.
A.C. R4-28-803 and R4-28-804. Respondents are
assessed a civil penalty, shall advise purchaser who
bought a lot in violation of the statutes of the purchaser’s
right to rescind the purchase, and will transfer or sell lots
only in accordance with subdivision laws. Scremin shall
attend a subdivision law class within ninety days.

Gregory L. Wilson (Phoenix)
No. 03A-081, Consent Order October 28, 2003
Wilson, acting as agent for both the seller and buyer of a
subject property, incorrectly advertised that the VA loan
was assumable without buyer qualification. Despite the
buyer’s requests for assurances of the assumability of
the loan, Wilson did not take any steps to verify whether
the loan on the subject property was assumable and
advised the buyers that it was assumable. Clear
disclosure was made on the seller’s recorded deed that
the loan was not assumable. Wilson’s
misrepresentations were in violation of A.R.S. § 32-2153
(A)(1), (A)(3) and R4-28-502 (C). Wilson is assessed a
civil penalty.
Appealable Agency Actions
Traci Stahlman (Bullhead City)
No. 04F-019-REL, Consent Order November 18, 2003
The Department denied Stahlman’s application for
renewal of her real estate salesperson’s license under A.
R.S. § 32-2153 (B)(2) based on her 2002 misdemeanor
conviction for Shoplifting and her failure to disclose the
conviction to the Department in writing within ten days of
the conviction. Stahlman appealed the denial and is
assessed a civil penalty. Œ

Dean Jack Wilson (Sedona)
No. 04F-050, Consent Order November 19, 2003
Through a series of acquisitions, splits, and
conveyances, Wilson created a 13-lot subdivision located
near Sedona known as Sun-Up Ranch without first
notifying the Commissioner of his intentions, applying for,
and being issued a public report, in violation of A.R.S. §§
32-2181(A), and 32-2183 (F). The contract Wilson used
did not include the required public report disclosure, in
violation of A.A.C. R4-28-803. Wilson is assessed a civil
penalty, will transfer or sell lots only in accordance with
subdivision laws and, within one year will bring the
subdivision into compliance with requirements for a
lawful subdivision. Wilson shall attend a subdivision law
class within ninety days.
V O L U ME 3 0 , I S S U E 1

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

© 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
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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.