1. A. Pursuant to A.R.S. § 32-2130, an active licensee must sever from the employing brokerage before requesting inactive status. On forms prescribed by the Commissioner, the active licensee may then request the Department inactivate the licensee’s current license for a period not to exceed 15 years. A license in an inactive status is not required to complete continuing education credit hour requirements until such time that the licensee applies to return their license to active status. Inactive status shall not relieve the licensee from renewing and paying the required fees.
2. B. Failure of an inactive licensee to pay the required renewal fee and to renew will result in the expiration of the license. An expired inactive license will remain expired for one year and may be renewed within that year to return to inactive status. The department shall terminate an inactive license that has been expired for more than one year.
3. C. The Department must change the license to inactive upon receipt of a complete application to change an active license to inactive. The Department may not refund any of the license renewal fee a licensee paid before requesting inactive status.
4. D. The holder of an inactive license is prohibited from performing activities which require an active license until the license is reactivated as an active license.
5. E. An inactive licensee that acts directly or indirectly in a transaction must comply with all duties of a licensee required under R4-28-1101, except those duties owed to a client.
6. F. The inactive status of a license does not prevent the Commissioner from taking any disciplinary action against the licensee for any of the grounds stated in this Chapter.

7. G. A license that is not suspended or revoked and that is inactive may be reactivated as an active license on 30 days’ written notice to the Department on forms prescribed by the Commissioner. With the exception of subsection (6), a licensee must submit evidence of completion of the following number of continuing education credit hours taken not more than 24 months prior to applying for reactivation:

   1. 1. If inactive for less than three years (from date of inactivation) a licensee is required to complete the same number of continuing education hours as provided for in A.R.S. § 32-2130.

   2. 2. If inactive for three years or more (from date of inactivation) but less than six years, a licensee is required to complete six hours of the continuing education hours in addition to the:

      1. a. 24 continuing education credits hours required if the license were not inactive for a salesperson, or;
      2. b. 30 continuing education credit hours required if the license were not inactive for a broker or licensee reactivating with delegated authority.

   3. 3. If inactive for six years or more (from date of inactivation) but less than 10 years, a licensee is required to complete 15 hours of the continuing education hours in addition to the:

      1. a. 24 continuing education credits hours required if the license were not inactive for a salesperson, or;
      2. b. 30 continuing education credit hours required if the license were not inactive for a broker or licensee reactivating with delegated authority.

   4. 4. If inactive for 10 years or more (from date of inactivation) but less than 15 years, a licensee is required to complete 30 hours of the continuing education hours in addition to the:

      1. a. 24 continuing education credits hours required if the license were not inactive for a salesperson, or;
      2. b. 30 continuing education credit hours required if the license were not inactive for a broker or licensee reactivating with delegated authority.
   5. 5. The Commissioner may identify categories or specific courses for the continuing education credit hours necessary to reactivate a license.
   6. 6. As approved by the Commissioner, additional hours as provided for in subsections (2), (3), and (4) may not be required for an inactive licensee who has worked continuously within the real estate industry where a license was not required or the individual was required to have an inactive license or they worked continuously within government regulation or policymaking within real estate, or a related field.  To apply for the waiver under this subsection, the inactive licensee must submit a waiver on forms prescribed by the Department.
8. H. An examination may not be required to reactivate an inactive license if reactivated less than 15 years after changing to inactive. If the license is not reactivated within 15 years, a new application for licensure must be made meeting the statutory qualification requirements for the license being applied for, to include completion of prelicensing education and successful passing of the state required examination.

Historical Note

New Section made by final rulemaking at 31 A.A.R. 4267 (November 7, 2025), effective December 13, 2025 (Supp. 25-4).