ALJDEC - Licensing
23F-248-REL-2 · Department of Real Estate · 2025-09-03
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
In the Matter of the Real Estate Activities of:
Davila Property Solutions, LLC, an unlicensed entity,
and
Sandra Tow, holder of license number BR508289000,
Petitioners
No. 23F-248-REL-1
No. 23F-248-REL-2
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: August 14, 2025.
APPEARANCES: Robert Stachel appeared for Petitioners. Lynette Evans appeared for Respondent.
ADMINISTRATIVE LAW JUDGE: Samuel Fox
EXHIBITS ADMITTED INTO EVIDENCE: Department’s Exhibits 1 through 43.
_____________________________________________________________________
FINDINGS OF FACT
The Arizona Department of Insurance and Financial Institutions (Department) issued a Notice of Hearing, dated March 10, 2025, setting a hearing in the above-entitled matter for April 15, 2025, at 9:00 AM. The hearing was continued twice.
The issues for hearing were whether grounds existed for each of the following: (1) to revoke Germaine Davila’s real estate broker license, (2) to revoke Davila Real Estate Solutions, LLC’s real estate entity license, (3) to uphold the Summary Suspension order against Sandra Tow’s real estate broker license, (4) to revoke Sandra Tow’s real estate broker license, (5) to impose a civil penalty of four thousand dollars ($4,000) against Sandra Two for infractions of real estate law or rules pursuant to A.R.S. § 32-3260.01, and (6) to uphold the Cease and Desist order against Davila Property Solutions, LLC.
At the hearing, the parties stipulated to the FACTS contained in the Amended Notice of Hearing and Complaint. Therefore, the FACTS as stated therein are adopted in full. In summary:
On June 18, 1996, the Department issued a real estate broker’s license to Germaine Davila (Davila). On February 20, 2009, the Department issued a real estate entity license to Davila Real Estate Solutions, LLC (Davila Real Estate). On November 9, 2017, the Department issued a real estate salesperson license to Sandra Tow (Tow); she was a salesperson for Davila Solutions from November 10, 2017, to December 8, 2024. On October 17, 2024, Davila Property Solutions, LLC (Davila Property) was incorporated: as of January 2025, no real estate license was associated with the company nor its sole member.
On December 7, 2023, and September 5, 2024, Davila and Davila Real Estate entered Consent Agreements with the Department, in part because of account shortages and balance variances in trust accounts. The September Agreement required Davila and Davila Real Estate to cancel or assign all management agreements to a licensed brokerage within sixty-five days, providing proof of refunds or an accounting of assignment to assignee.
On December 6, 2024, Tow notified the Department that she had passed the Arizona Real Estate Broker exam and would be applying for a license.
On December 10 and 13, 2024, Davila notified the department that the agreements had been assigned to Davila Property and the “designated broker” was Tow. Neither Davila Property nor Tow were properly licensed at the time.
On December 16, 19, and 23, 2024, Davila Real Estate transferred funds to Davila Property. However, they did not provide the final accounting required for a transfer or proof of the refund required for cancellation, as required by the September Agreement.
On December 27, 2024, the Department issued Tow a real estate broker license.
On January 27, 2025, the Department issued a Cease and Desist order against Davila and Davila Real Estate; an order of Summary Suspension for Tow’s real estate broker license; and a Cease and Desist order against Davila Property (and Tow as the designated broker), which required submission of proof that funds were returned to their owners and documented accountings.
CONCLUSIONS OF LAW
The Department had jurisdiction over this matter, and the matter was properly brought before the Office of Administrative Hearings.
The Department may deny, suspend, or revoke a the license of a licensed and regulated individual or entity for violations of the regulating statutes and rules.
The Department may issue a Summary Suspension order when it finds the public health, safety, or welfare requires emergency action.
The Department may issue a Cease and Desist order when it appears that a licensee has engaged, is engaging, or is preparing to engage in any act that is a violation of the chapter, an adopted rule, or an order of the commissioner.
The Department may issue a Civil Penalty to any licensee who has “violated any provision of this chapter or any rule or order adopted or issued by the commissioner . . . in an amount not to exceed one thousand dollars for each infraction.”
The Department bears the burden of proof by a preponderance of the evidence.
The preponderance of the evidence established that Germaine Davila, holder of license number BR045252000, violated A.R.S. §§ 32-2153(A)(9), (A)(17), (A)(21), (A)(22), (A)(24), (B)(3), (B)(7), (B)(8), and A.A.C. R4-28-1101(A), -1103(C) as stated in the Amended Notice of Hearing and Complaint.
The preponderance of the evidence established that Davila Real Estate Solutions LLC, holder of entity license number LC630584000, violated A.R.S. §§ 32-2153(A)(9), (A)(17), (A)(24), (B)(7), (B)(8), and A.A.C. R4-28-1101(A) as stated in the Amended Notice of Hearing and Complaint.
The preponderance of the evidence established that Sandra Tow, holder of license number BR508289000, violated A.R.S. §§ 32-2153(A)(8), (A)(9), (A)(17), (A)(21), (A)(22), (A)(24), (B)(6), (B)(7), and A.A.C. R4-28-306(A)(1), -306(A)(2), -1103(C) as stated in the Amended Notice of Hearing and Complaint.
The preponderance of the evidence established that Davila Property Solutions, LLC an unlicensed entity, engaged in activity prohibited under A.R.S. §§ 32-2153(A)(8), (A)(9), (A)(17), (A)(21), (A)(22), (A)(24), (B)(6), (B)(7), and A.A.C. R4-28-306(A)(1), -306(A)(2), -1103(C) as stated in the Amended Notice of Hearing and Complaint. Notably, Davila Property Solutions, LLC, is not a licensee or applicant.
Based on the findings of fact and conclusions of law above, the Administrative Law Judge concludes that Petitioners Germaine Davila’s real estate broker license, Sandra Tow’s real estate broker license, and the real estate entity license for Davila Real Estate Solutions, LLC, should be revoked.
Based on the findings of fact and conclusions of law above, the Administrative Law Judge concludes that the Department’s Summary Suspension order against Sandra Tow’s real estate broker license was supported.
Based on the findings of fact and conclusions of law above, the Administrative Law Judge concludes that the Department’s January 27, 2025, Cease and Desist order against Davila Property Solutions, LLC, was supported.
Based on the findings of fact and conclusions of law above, the Administrative Law Judge concludes that the Department’s Civil Penalty of four thousand dollars ($4,000.00) against Sandra Two was supported.
RECOMMENDED ORDER
IT IS RECOMMENDED that the Department revoke license number BR045252000, held by Germaine Davila.
IT IS RECOMMENDED that the Department revoke entity license number LC630584000, held by Davila Real Estate Solutions, LLC.
IT IS RECOMMENDED that the Department revoke license number BR508289000, held by Sandra Tow.
IT IS RECOMMENDED that the Department uphold its Summary Suspension of Sandra Tow’s license number BR508289000, dated January 27, 2025.
IT IS RECOMMENDED that the Department uphold its Cease and Desist Order, dated January 27, 2025.
IT IS RECOMMENDED that the Department issue a Civil Penalty of $4,000.00 to Sandra Tow.
Pursuant to A.R.S. § 41-1092.08(I), the licensee may accept the Administrative Law Judge Decision by advising the Office of Administrative Hearings in writing not more than ten (10) days after receiving the decision. If the licensee accepts the Administrative Law Judge Decision, the decision shall be certified as the final decision by the Office of Administrative Hearings.
In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be forty (40) days from the date of that certification.
Done this day, September 3, 2025.
/s/ Samuel Fox
Administrative Law Judge
Transmitted by either mail, e-mail, or facsimile to:
Susan Nicolson, Commissioner
Arizona Department of Real Estate
Lynette Evans, Esq.
Office of the Attorney General
Public Law Section
[email redacted]
[email redacted]
Robert D. Stachel, Jr.
Stachel & Associates , P.C
[email redacted]
By: OAH Staff