Broker Management Clinic FAQ



NEW Broker Management Clinic Requirements Effective January 2013

What is the effective date for the new Broker Management Clinic (BMC) requirement?
Effective from and after January 1, 2013, each Designated Broker and Delegated Associate Broker, one who is delegated the written authority to act on the Designated Broker’s behalf to review and initial contracts or similar instruments pursuant to A.R.S §32-2151.01(G) must take the new BMC.  If a Designated Broker has not previously complied with the BMC prior to January 1, 2013, then the new BMC is the requirement that must be met for a total of 30 hours of continuing education.  If a Delegated Associate Broker has not completed the 24-hour renewal prior to January 1, 2013, then the new BMC is the requirement that must be met for a total of 30 hours of continuing education for renewal.  If during the Delegated Associate Broker’s current license period, the Delegated Associate Broker has at least complied with the BMC prior to January 1, 2013, then the Delegated Associate Broker is not required to take the new BMC.

Is there a quick reference to determine which real estate brokers are required to complete the new nine (9) hour Broker Management Clinic on or after January 1, 2013?
Yes.  Below is the Quick Reference Table for the new Broker Management Clinic:

Arizona Department of Real Estate
Quick Reference Table for New Broker Management Clinic (BMC)

LICENSE TYPE / SCENARIO

APPLICATION TYPE

REQUIRES NINE (9) HOUR BMC ON OR AFTER 1/1/2013

Original (new) Real Estate Broker

Original

Yes

New Designated Broker/Self Employed Broker and Delegated Associate Broker *

Appointment / Change **

Yes

Delegated Associate Broker

Renewal

Yes

Designated Broker/Self Employed Broker who completed old BMC prior to 1/1/2013 during current license period

Renewal

No

Designated Broker/Self Employed Broker who has not completed a BMC prior to 1/1/2013

Renewal

Yes

Delegated Associate Broker who completed all required 24 hours of continuing education prior to 1/1/2013 during current license period

Renewal

No

Delegated Associate Broker who, prior to 1/1/2013 during current license period, has completed at least the old BMC.

Renewal

No

Delegated Associate Broker who has not completed the BMC or all 24 hours of continuing education prior to 1/1/2013 during current license period

Renewal

Yes

*  Delegated Associate Broker = Associate Broker with written authorization to act on behalf of designated broker by reviewing and initialing contracts and similar instruments pursuant to A.R.S. § 32-2151.01(G).  Pursuant to A.R.S. § 32-2136(C), the new nine (9) hour BMC is a new requirement for the Delegated Associate Broker license type effective January 1, 2013.**  In the case of an appointed Delegated Associate Broker that is not a branch manager, an application is required to be filed with ADRE along with the written authorization.

 

What is a Delegated Associate Broker?
A Delegated Associate Broker is one who is delegated the written authority to act on the Designated Broker’s behalf pursuant to A.R.S §32-2151.01(G) to review and initial contracts or similar instruments.

When does the old BMC course cease to be effective and available?
After December 31, 2012 the previously approved 3-hour BMC will cease to be available.  Effective January 1, 2013 the new 9-hour BMC takes the place of the old BMC.

Who must take the 9-hour BMC?
The 9-hour BMC is required for:

  1. A renewing Designated Broker.
  2. A renewing Delegated Associate Broker, that is, one who is delegated the authority to act on the Designated Broker’s behalf pursuant to A.R.S §32-2151.01(G).
  3. An original broker applicant, who must complete the BMC before the applicant’s broker’s license may be activated.
  4. An associate broker within the 23 months prior to acting as a Delegated Associate Broker.
  5. Any associate broker within the 23 months prior to being licensed as a Designated Broker.
  6. A Designated Broker, within the 23 months prior to relicensing with another brokerage.

Who is not required to take the new BMC?
The following are not required to take the BMC:

  1. A salesperson or broker acting as the Designated Broker in the Designated Broker’s temporary absence pursuant to A.R.S §32-2127(D).
  2. A salesperson or associate broker acting as a branch manager pursuant to A.R.S §32-2127(B) &(C), except for a Delegated Associate Broker acting under a delegation authority pursuant to A.R.S §32-2151.01(G) who is acting as a branch manager.
  3. A “temporary broker” licensed for the purpose of winding up the business of a deceased designated broker pursuant to A.R.S §32-2133.
  4. Either a Designated Broker or Delegated Associate Broker who, during the current license period and prior to January 1, 2013, completed the 3-hour BMC.

What if I previously took the old BMC?  Can that count toward my required continuing education?
If the Designated Broker has completed the old 3-hour BMC prior to January 1, 2013 for his or her renewal, the new 9-hour BMC will not be required to renew the broker’s license.  If the Delegated Associate Broker has completed his or her 24-hour renewal requirements for his or her renewal, the new 9-hour BMC will not be required to renew the broker’s license.  In both instances, the 24-hour renewal will then be required instead of the new 30-hour renewal.

How will the new BMC courses be delivered?
The new BMC will be taught live in classroom or distance learning as three distinct 3-hour BMCs: BMC #1, BMC#2 and BMC#3 – a total of 9 hours.  Click here to see Substantive Policy Statement 2012.01 for more details on each individual course’s content.

What if I need to take the BMC, but there is no BMC available?
It is anticipated that the new BMC courses will be available as early as October 2012; therefore, there should be adequate live classroom and distance learning courses available.

Will the new BMC courses be available for credit for any licensee who takes the course?
Yes.  Any licensee may take the BMC courses for credit, not just Designated Brokers and Delegated Associate Brokers.  Each 3-hour BMC course is approved for three hours of Commissioners Standards.

Is a test required to pass the new 9-hour BMC?
No test is required for a “live” classroom presentation; however, a distance learning course will require quizzes for each of the course modules, as well as a final exam for each 3-hour BMC course.

How do the three BMC courses differ?
Each course is different and may also emphasize a particular industry discipline or specialty.  Here is a breakout of the contents for each of the required three 3-hour courses:

  1. BMC #1- Statutes and Rules
    This course includes: record keeping requirements, fiduciary duties, trust fund accounts, material disclosures, advertising and promotions, ADRE investigations, employment agreements, ADRE broker audits, contracts and other related statutes and rules.
  2. BMC #2 – Broker Policies
    This course addresses broker policy development and related topics, including at least one of the following: the establishment of broker supervision policies (A.A.C. R4-28-1103) or practical application for enforcement of the policies, or emphasizing those policies that ADRE has identified as common complaints or violations and how to avoid them.
  3. BMC #3 – Broker Supervision
    This course includes: broker supervision, broker risk management, broker responsibilities/legal obligations and other related topics.

May I take BMC #1, #2 and #3 (i.e., each of the individual courses) from different schools, taught by different instructors?
Yes.  This may not be advisable but it is permissible under the legislation.

Will there be BMCs that emphasize specific industry disciplines?
Yes.  A BMC school is not limited to providing a “general” BMC, although this may be the most in demand category of the BMC.  It is permitted for schools to develop the BMC for specialties (special disciplines), like commercial, property management, timeshare, new home sales, business brokerage, etc.  However, if a specialty administration of the BMC is of importance to the licensee, the licensee should check availability of specific courses.

rev. 10/12

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