Ariz. Rev. Stat. » Title 32
Arizona Revised Statutes

Ariz. Rev. Stat. § 32-2163 (2026)

Unlawful acts; outofstate broker; cooperation agreement

✓ current as of May 2026
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32-2163. Unlawful acts; out-of-state broker; cooperation agreement

A. It is unlawful for any licensed broker in this state to employ or compensate, directly or indirectly, any person for performing any of the acts within the scope of this chapter if the person is not also a licensed broker in this state, or a salesperson licensed under the broker employing or compensating the salesperson, except that a licensed broker in this state may pay compensation to and receive compensation from a broker who is lawfully operating in another state.

B. Notwithstanding that pursuant to subsection A of this section a licensed broker in this state may pay to and receive compensation from an out-of-state broker, this authority does not allow an out-of-state broker to conduct activity in this state that would otherwise require a broker's license issued by the department.

C. A licensed broker in this state may cooperate with an out-of-state broker who would otherwise require licensure in this state if:

1. The licensed broker and the out-of-state broker enter into a written cooperation agreement before the out-of-state broker conducts any activity otherwise requiring a broker's license pursuant to this chapter. The cooperation agreement shall include the following:

(a) A list of the real estate activities to be conducted by the out-of-state broker.

(b) A statement that the out-of-state broker agrees to fully comply with the laws of this state and submit to the regulatory jurisdiction of the department for activities subject to real estate broker licensure pursuant to this chapter.

(c) A statement that the licensed broker in this state understands and accepts responsibility for the acts of the out-of-state broker.

2. All negotiations in this state or with people who own property in this state are conducted through the licensed broker in this state.

3. The licensed broker in this state assumes all responsibility for the acts of the out-of-state broker.

4. All principal funds handled by either the licensed broker in this state or the out-of-state broker are subject to the deposit and handling requirements of section 32-2151.

D. The offering of real estate brokerage services specified by section 32-2101, paragraph  51 for compensation or any other thing of value pertaining to real property located in this state through an internet website constitutes activity that requires a broker's license issued by the department.

E. This section does not allow an out-of-state broker who is not licensed in this state to list, market or advertise in this state real property located in this state for sale, lease or exchange.

F. Signs shall not be placed on real property in this state by an out-of-state broker.  An out-of-state broker shall not use a cooperation agreement as authority to sell, lease, rent, exchange or attempt to sell, lease, rent or exchange real property to a resident of this state.

Notes of Decisions
Cited in 5 cases, 1972–2003 · leading case: Adams Realty Corp. v. Realty Ctr. Investments, Inc., 719 P.2d 291 (Ariz. Ct. App. 1986).
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Adams Realty Corp. v. Realty Ctr. Investments, Inc., 719 P.2d 291 (Ariz. Ct. App. 1986). · cites it 8× “§ 32-2163 provides: It is unlawful for any licensed broker to employ or compensate, directly or indirectly, any person for performing any of the acts within the scope of this chapter, who is not a licensed broker, or a salesman licensed under the broker employing or compensating…”
Bustrum v. Gardner, 743 P.2d 5 (Ariz. Ct. App. 1987). · cites it 2× “Because Tradewinds assigned all of its rights, titles and interests connected with the commission to Bustrum, we find that Bustrum may maintain the instant action. A.R.S. § 32-2152 provides that an action for collection of compensation may be maintained by any qualified licensed…”
Farragut Baggage & Transfer Co. v. Shadron Realty Inc., 501 P.2d 38 (Ariz. Ct. App. 1972). · cites it 2× “A.R.S. § 32-2163, enacted in 1960, provides: “It is unlawful for any licensed [real estate] broker to employ .”
Williams Real Est. Co. v. CC&F Lincoln Street LLC, 797 N.E.2d 496 (Mass. App. Ct. 2003). “may enter a cooperative brokerage agreement with a licensed real estate broker in this state”); Tenn.”
Fretz v. First Am. Title Ins., 777 P.2d 672 (Ariz. Ct. App. 1989). “00, paid on behalf of George Fretz Realty, pursuant to and in accordance with Arizona Revised Statute, Section 32-2163; (4) Payments outlined in paragraphs 14) a)(l) and 14) a)(2) shall be paid 50% upon the Close of Escrow on the original eight (8.”
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