ADRE: Licensed AZ R.E. agents can do as they please in HOAs — Not My Job

In its internet PR statement to consumers, “Information for Consumers” page, the Arizona real estate department, ADRE, assures the consumer that (emphasis added),

We want to protect consumers from being harmed in real estate transactions. You will find a wealth of information on this website that will help you be a smarter real estate consumer. You will also find information about what to do if something goes wrong in your transaction. Remember, we are always willing to help.

If you need to speak with an ADRE staff person, phone the ADRE Consumer Assistance Team at 602.771.7730.

(AZ R.E. dept ignores HOA laws in its policy of “No Negatives About HOAs” (July 2010)).

In May 2011, when asked for the third time over 7 years why ADRE doesn’t enforce this rule (R4-28-1101) when it comes to HOA transactions, its typical answer dealt with their non-regulation of HOAs, and, in this recent reply (emphasis added),

However the Department has to be advised, typically by way of official complaint, that there is an apparent abuse of the laws occurring. At that time, the Department would investigate and proceed from there. Without knowledge of a perceived violation occurring, the investigation cannot begin.

What we have here is a failure to act, a failure of government authorities to make their allegations about consumer protection — in effect their propaganda that deceives the people — a reality.

(Do not buy an HOA controlled home in Arizona — you are on your own!)


Please understand, as I’ve pointed out in earlier writings, there are no exemptions for HOA properties in the real estate statutes or Commissioner’s Rules (also law) pertaining to licensed property managers. So, I wondered what ADRE’s answer would be if indeed a complaint was filed against an ADRE licensed property manager who happened to manager an HOA. Fortunately, I was able to uncover a copy of an ADRE response to this question, dating back to March 2010, signed by a Senior Investigator:

The Department reviewed your complaint against THE XXXX COMPANY and its employed real estate licensees and found it involves a matter where the Department has no jurisdiction. Management of homeowner associations and regulation of CC&R’s are not regulated by the Arizona Department of Real Estate. There is currently no state agency that regulates homeowner associations. This situation is civil in nature and requires mediation or litigation. Your best course of action is to seek counsel and resolve your issues through the appropriate court.

When it comes to policing its licensed agents to protect consumer home buyers, ADRE jumps on the bandwagon, “NOT MY JOB.” The issue is not the type of property, but the actions of its licensed agents with respect to their obligations and duties as a licensed real estate agent.  And that’s where ADRE has its powers and authority to act. The unspoken alliance comes out quite strongly here with ADRE’s hands-off policy.


Ladies and gentlemen, you are already living in the NEW AMERICA OF HOA-LAND. Just accept it. You will soon learn to adjust.

Published in: on June 4, 2011 at 10:47 am  Comments (1)  
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  1. […] ADRE: Licensed AZ R.E. agents can do as they please in HOAs — Not My Job […]

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