Arizona Compliance Update • ADRE • R4-28
Arizona ADRE Rule Updates (R4-28): Advertising Transparency + Referral Disclosure Timing
By John Patrick Mijac, Managing Broker & Branch Manager – 1912 Realty, Tucson
Arizona agents and brokers: ADRE’s recent revisions to the Arizona Administrative Code (A.A.C. Title 4, Chapter 28)
include more than 30 updates. Many are technical. Two are practical and immediate: advertising transparency and
compensation/referral disclosure timing.
This article is written as a tight, broker-minded guide: what changed, what it means, and what to do now—without drama and without guessing.
Transparency
Broker identification
Referral disclosure timing
Public trust
Quick Takeaways
- Advertising: If you advertise a specific property (including another brokerage’s listing), your advertising must clearly and prominently identify the employing broker.
- Referral/compensation disclosure: If an employing broker will receive compensation from a transaction (including referral fees), disclosure of the broker’s identity must be made in writing at least three (3) calendar days before closing when the broker is not already apparent from the agreements.
- The amount is not required to be disclosed—this rule is about who is involved, not what they are paid.
Why ADRE is tightening the rules
When consumers cannot tell who represents whom—or who is financially involved—they lose confidence. ADRE’s consumer-protection lens is simple:
clearer advertising + clearer compensation relationships = fewer misunderstandings, fewer complaints, and better accountability.
Change #1: Advertising other brokers’ listings (R4-28-502)
Here is the reality on social media: agents frequently post “hot listings” from other brokerages with beautiful photos, a price, and a “DM me.”
But the listing broker is not clearly identified in any meaningful way. In Arizona, that is a compliance problem.
Practical compliance standard: If you are advertising a property, the public must be able to readily see the
employing broker responsible for that advertising. That means broker identification must be clear and prominent in the post itself,
not buried in a profile, and not implied by a tag.
Broker vs. agent: what must be named?
- Required: the employing broker (legal name or DBA used on the broker’s license).
- Optional: the individual listing agent’s name. You can include it, but it does not replace broker identification.
Clean examples that reduce risk
- Good: “Listing courtesy of ABC Realty, LLC.”
- Better: “Listing courtesy of ABC Realty, LLC • Contact John at ____ for details.”
- Risky: “New on market—DM me!” (no broker identified).
- Also risky: relying only on your bio or a tag as the “disclosure.”
Change #2: Referral/compensation disclosure at least 3 days before closing (R4-28-701)
This is the other change that will surprise many agents: if a broker will receive compensation from a transaction—including a referral fee—ADRE requires
a written disclosure of the broker’s identity at least three calendar days before closing when that broker is not already apparent from the written agreements.
Important: This is not a “disclose the fee amount” rule. It’s a “disclose who is involved” rule.
Does this include referral brokerages?
Yes. If an employing broker will receive a referral fee as a result of the transaction closing, that broker is an employing broker who will receive compensation from the transaction.
What to document
- A written disclosure identifying the broker(s) who will receive compensation.
- Proof of delivery to the parties, delivered on time (at least 3 days prior to closing when required).
- A copy retained in the transaction file.
Other notable updates (quick scan)
The two items above are the most “daily practice” rules for many agents. But ADRE’s broader package also reflects changes and priorities worth noting:
- Broker supervision systems: increased emphasis on brokers having systems to monitor compliance with statutes, rules, and brokerage policies.
- Continuing education priorities: mandatory topic requirements (Firewise, Deed Fraud, Arizona Water) remain a key compliance expectation for renewal cycles.
- Education & testing updates: ADRE publishes updated exam curriculum standards and education resources—important for trainers and new agents.
- Forms/resources: keep an eye on ADRE and Arizona REALTORS® guidance for implementation notes and best practices.
Action checklists
For Arizona agents (do this this week)
- Audit your last 30 days of posts that advertise specific properties. If broker attribution is unclear, fix it.
- Standardize your broker attribution line (“Listing courtesy of ____”) and use it consistently.
- Add a referral trigger question to every file: “Is any broker receiving compensation because of a referral?”
- Document delivery of any required disclosures—don’t rely on memory.
For Arizona brokers (systems that actually work)
- Ad policy: require broker attribution on every property post (including “tour” reels and “hot list” content).
- File checklist: add a compensation/referral disclosure checkpoint during file audits.
- Training cadence: quarterly training + monthly spot checks is a realistic minimum for supervision.
Broker leadership note: These changes impact public trust. When the public sees clear broker attribution and transparent compensation relationships,
they experience our industry as more professional. That’s the point.
Related posts on my site
Day-One Compliance in Arizona
Compliance checklist • Advertising & files
A day-one punch list for staying on the right side of ADRE and your brokerage policies.
Scripts: How to Tell Clients You’re Switching Brokerages
Scripts • Client & partner communication
Client-friendly language for announcing a move with confidence and clarity.
Broker Support SLA: Your First 30 Days at 1912 Realty
Support framework • 1912 Realty
How broker support is structured in the first month: file review, mentorship, systems, and accountability.
Authoritative references
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