Arizona Department of Real Estate

This audit found that the Department’s practices for receiving public complaints contain barriers that can discourage the filing of complaints, and it inadequately investigates some of the complaints it does receive. The report recommends that the Department take several steps to improve its complaint-handling practices. Auditors also found that the Department's efforts to discipline real estate law violators are inconsistent because the Department lacks guidelines for determining appropriate disciplinary actions. In addition, the report recommends that the Legislature consider giving the Department the authority to approve Real Estate Recovery Fund claims instead of the courts because the current process results in administrative costs that are higher than the amounts paid out to claimants. Finally, the Department should take several steps to improve its public information practices, including providing licensee complaint and disciplinary histories to consumers over the phone.