Understanding Arizona Real Estate License Reciprocity

Introduction

Real estate is a fast-growing, ever-evolving industry with a diverse set of laws and rules. 

Real estate agents, brokers, and realtors are often required to navigate through a long list of state and federal guidelines in their careers.

When it comes to moving to a different state as a real estate professional, certain rules and regulations come into the picture. 

If you are interested in expanding your professional horizons by migrating to a different state, then it’s important to understand a few aspects.

Migrating to a new state might affect your real estate career in certain ways, and the change depends on the home state and the migrant state. 

To simplify this transition between two states, exists the concept of real estate reciprocity.

Real estate reciprocity is the agreement between two states that allows real estate professionals to transfer their licenses from one to the other.  

If you are a practicing real estate professional in some other state and are interested in migrating to Arizona to obtain an AZ license, then this article will help you get started. 

We have combined everything you need to know about Arizona real estate license reciprocity in one place. 

An Overview of Arizona Real Estate License Reciprocity

Definition of Real Estate License Reciprocity

Many new and upcoming real estate professionals often wonder about the concept of real estate reciprocity. 

Put simply, real estate reciprocity is the ability given to agents and brokers to practice in multiple states without having to go through the journey of obtaining multiple licenses. 

Reciprocity is one of those great things about working in the real estate industry - it opens up additional avenues for earnings and growth for real estate professionals. 

Since real estate laws and regulations differ from state to state, real estate reciprocity helps professionals save time and effort in obtaining multiple licenses. 

However, it is important to note that every state has its own set of rules regarding reciprocity for real estate professionals. 

Therefore, it is important to keep yourself updated with current information to have a clear understanding of reciprocity legislation. 

Now that you have a basic overview of real estate reciprocity, let us learn more about it. 

Benefits of Arizona Real Estate License Reciprocity

Many real estate agents and brokers often wonder how easy or difficult it would be to apply for a license in another state. 

The truth is getting a new license is a time-consuming, costly, and complex process. It requires a lot of dedication and planning and it is not easy to earn a license again. 

Instead of having to take the real estate licensing exam again, you can take advantage of real estate reciprocity. 

Let’s take a look at some of the benefits of Arizona real estate license reciprocity below: 

1. It saves you time: 

Reciprocity in real estate is a sure way to avoid wasting time on getting an additional license for a new state. 

Imagine not spending three to six months completing pre-licensing education, license application, and background check. 

This is why license reciprocity is a huge advantage for busy professionals as it saves them valuable professional time in their competitive careers. 

2. It saves you money: 

Getting a real estate license is an expensive process for many, especially if you are a new real estate professional. 

There are considerable fees for licensing, including application fees, exam fees, and background verification fees among other costs. 

License reciprocity helps you save costs and expenses related to getting a new license. 

3. It saves you stress: 

Obtaining and managing a real estate license is an ongoing journey as it requires you to complete additional post-license education and certification. 

Imagine the stress of managing two separate real estate licenses and then having to complete mandatory continuing education. That’s not what a busy professional would want from a competitive career. 

With real estate license reciprocity, you can practice in two states after fulfilling all the licensing requirements in one. 

4. It offers more opportunities: 

With real estate license reciprocity, agents and brokers you can earn commission on closing deals and sharing referrals in more than one market. 

With an increased market footprint, you will have access to a larger database of clients and properties. 

This means you can earn more and significantly boost your income opportunities. Further, you can expand your portfolio and diversify your clientele. 

5. It provides more flexibility: 

One of the most significant benefits of Arizona real estate license reciprocity is the flexibility to conduct and practice your business out of your home state. 

For many agents and brokers, the flexibility of not being tied to one location while being able to relocate freely without any disruptions is amazing. 

Reciprocity in real estate is ideal for anyone who wants to take advantage of multiple markets while remaining flexible enough to adjust their location accordingly. 

Role of Reciprocity in Real Estate Practices

Real estate license reciprocity works as a mutual agreement between states to facilitate the process of allowing licensees to practice outside their home state. 

With reciprocity, real estate professionals such as agents and brokers can bypass the tedious and expensive process of obtaining a new license. 

By acknowledging the licensure and qualifying proof of another state, participating states agree to allow real estate professionals from other states to practice on a new turf. 

Note that real estate reciprocity works in many ways, it does not necessarily always mean that it is a one-size fits all process. 

Reciprocity in real estate works in three main ways: 

• Physical: In physical reciprocity, you can represent your client outside the physical boundaries of your home state. However, you can only do it remotely and you cannot be present in the new state where you wish to assist your client.
• Co-operative: In co-operative reciprocity, you can represent clients in real estate transactions freely in another state. This means you can visit the new state, conduct your business, and earn a commission. However, you must partner with a licensed broker from the new state. 
• Turf: In this reciprocity type, you cannot work with clients outside your home turf i.e. the state where you originally have a license from. Any state with a real estate turf reciprocity condition will not allow any outside agent or broker to take part in a real estate transaction. 

States with Reciprocity with Arizona

Complete List of States that Have Real Estate License Reciprocity with Arizona

Do you hold a real estate salesperson or broker’s license and want to move to Arizona? 

If you are wondering which are the states with reciprocity with Arizona, the answer might disappoint you. 

Currently, there are no states with whom the state of Arizona has any license reciprocity agreement. 

Now before you get dejected, here’s an alternative solution - the state of Arizona recognizes out-of-state real estate licenses. 

In the license reciprocity scale, Arizona’s regulations are considered a strict yet cooperative portability type. 

This means that if you are an active licensee in another state and want to move to Arizona for work, you would not be required to complete the prelicensing education from scratch. 

Instead, you would be eligible to work in the AZ real estate market after clearing a test successfully. 

Now that you have discussed how reciprocity works in Arizona, let’s take a closer look at some of the eligibility requirements to get an Arizona out-of-state license.

How To Apply for Reciprocity In Arizona

Eligibility for Applying for Reciprocity in Arizona

If you are licensed in another state and are considering moving to Arizona, you must fulfill the eligibility requirements. 

It is important to find out whether you qualify for an Arizona out-of-state license or not. 

To do so, let’s take a look at some of the mandatory qualifying requirements: 

• You must be a legal resident of Arizona or prove your intent to become one. You can do so by showing an AZ voter registration form, residential contract, proof of income taxes, and mortgage document. 
• You must have a valid real estate license in another state and must have been a licensee for more than one year. 
• You must have qualified for the real estate licensing exam in another state and completed the pre-licensing education. 
• You must have a license that has not been revoked or voluntarily surrendered in any other state. 
• You must have a clean and professional record and should not have any history of any disciplinary action or complaint against you.

In addition to the above, you must also complete a mandatory 6-hour contract writing course and submit a completion certificate to the Arizona Department of Real Estate (ADRE).  

Step-by-Step Guide on the Application Process

Ready to migrate to Arizona to expand your professional horizon? Here’s how to apply for reciprocity in Arizona in a step-by-step way. 

Step 1: Meet the eligibility requirements

Step 2: Complete the 6-hour writing course in Arizona

Step 3: Provide the required proofs and documents

Step 4: Pass the Arizona out-of-state license recognition examination

Step 5: Submit the Arizona salesperson licensing application

Step 6: Complete the background and criminal verification

Once you complete all the above steps, you will receive your Arizona out-of-state license.

Key Documents Needed for the Application of Reciprocity in Arizona

In order to meet the Arizona real estate license requirements, every applicant must provide a set of documents. 

According to the Arizona Department of Real Estate (ADRE), you are required to submit the following documents: 

• Proof of residence in Arizona
• Legal proof of age of 18 years or above
• Certified real estate license history from any other state
• Disciplinary actions disclosure form with the Candidate Handbook
• Certificate of successful completion of the Arizona out-of-state licensing exam
• Original exam score report of the Arizona licensing exam
• Original salesperson license application proof 
• Certificate of completion of the 6-hour writing course
• Proof of legal presence
• Valid DPS Arizona fingerprint clearance card

Note that it is mandatory to apply for an out-of-state license within 1 year of clearing the Arizona state licensing exam.

Arizona Real Estate License Requirements

Basic Requirements and Eligibility Criteria

If you are ready to start your real estate career, you must meet the Arizona real estate license requirements first. 

According to the ADRE, below is a checklist of the requirements: 

• You must be 18 years of age or older
• You must be a legal resident of Arizona
• You must complete 90 hours of pre-licensing education