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HB2100 • 2026

small land subdivision; requirements

HB2100 - small land subdivision; requirements

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Gail Griffin
Last action
2026-04-13
Official status
Senate committee of the whole
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific penalties for violations.

Small Land Subdivision Requirements

HB2100 allows county boards of supervisors to create rules for small land subdivisions with specific requirements and penalties.

What This Bill Does

  • Allows county boards of supervisors (BOS) to make rules for small land subdivisions of 6 to 10 lots or parcels if the land is two acres or more and does not need an assured water supply.
  • Requires applicants for these small land subdivisions to submit a public report and ensure each lot has legal access.
  • Requires county BOS to inform the Arizona Department of Real Estate (ADRE) about any new rules they make for small land subdivisions.

Who It Names or Affects

  • County boards of supervisors
  • Applicants for small land subdivisions
  • Arizona Department of Real Estate (ADRE)

Terms To Know

Legal access
Public right to enter and leave a property by vehicle.
Assured water supply requirement
A rule that requires proof of enough water for land development.

Limits and Unknowns

  • The bill does not specify the exact penalties for violations.
  • It is unclear how this will affect existing small land subdivision rules in different counties.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Plain English: CORBIN W.

  • CORBIN W.
  • 2/25/2026 (602) 926-3848 ARIZONA HOUSE OF REPRESENTATIVES FLOOR AMENDMENT EXPLANATION 57th Legislature, 2nd Regular Session Majority Research Staff HB 2100: small land subdivision; requirements GRIFFIN FLOOR AMENDMENT 1.
  • Makes a technical change.
  • Fifty-seventh Legislature Griffin Second Regular Session H.B.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Bill History

  1. 2026-04-13 Senate

    Senate committee of the whole

  2. 2026-03-30 Senate

    Senate minority caucus

  3. 2026-03-30 Senate

    Senate majority caucus

  4. 2026-03-30 Senate

    Senate consent calendar

  5. 2026-03-04 Senate

    Senate second read

  6. 2026-03-03 Senate

    Senate Rules: PFC

  7. 2026-03-03 Senate

    Senate Government: DP

  8. 2026-03-03 Senate

    Senate first read

  9. 2026-02-26 Senate

    Transmitted to Senate

  10. 2026-02-26 House

    House third read passed

  11. 2026-02-26 House

    House passed

  12. 2026-02-26 House

    House third read failed

  13. 2026-02-25 House

    House amended committee of the whole

  14. 2026-02-25 House

    House passed

  15. 2026-02-23 House

    House committee of the whole

  16. 2026-02-17 House

    House minority caucus

  17. 2026-02-17 House

    House majority caucus

  18. 2026-02-16 House

    House consent calendar

  19. 2026-01-13 House

    House second read

  20. 2026-01-12 House

    House Rules: C&P

  21. 2026-01-12 House

    House Land, Agriculture & Rural Affairs: DP

  22. 2026-01-12 House

    House first read

Official Summary Text

HB2100 - 572R - Senate Fact Sheet

Assigned to
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COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
H.B. 2100

small
land subdivision; requirements

Purpose

Allows a county board of supervisors (county BOS) to adopt ordinances and
regulations that allow small land subdivisions of 6 to 10 lots or parcels for
parcels that are two acres or more in size and not subject to an assured water
supply requirement or a mandatory adequate water supply requirement. Requires
an applicant for small land subdivisions to submit a small land subdivision
report and notice. Prescribes disclosure requirements for small land
subdivisions and civil penalties for violations.

Background

A county BOS must approve any land divisions of 5 or fewer lots, parcels
or fractional interests, any of which are 10 acres or smaller in size, if the
land division meets outlined requirements, including that the: 1) lots, parcels
or fractional interests each meet the minimum applicable county zoning
requirements of the applicable zoning designation; 2) applicant provides a
standard preliminary title report or other acceptable document that
demonstrates legal access to the lots, parcels or fractional interests; and 3)
applicant provides an outlined statement regarding whether each lot, parcel or
fractional interest has physical access that is traversable by a two-wheel
drive passenger motor vehicle.
Legal access
is a public right of
vehicular ingress and egress between the lots, parcels or fractional interests
being created (
A.R.S.
� 11-831
).

A seller of 5 or fewer parcels of land, other than subdivided land, in an
unincorporated area of a county and any subsequent seller of such a parcel must
furnish a written affidavit containing answers to outlined questions relating
to: 1) access to the property; 2) whether water, water treatment, water
delivery, sewage and other services are provided to the property; 3) property
zoning requirements, inspections and tests; 4) whether the property is located
in outlined military territory or Federal Emergency Management Area-designated
floodplains; and 5) whether the use of the property is limited in any way
relating to an encumbrance. The affidavit must be furnished to the buyer at
least seven days before the transfer of the property and the buyer must acknowledge
receipt of the affidavit. The seller must record the executed affidavit at the
same time that the deed is recorded, and the county recorder is not required to
verify the accuracy of any statement in the affidavit. A subsequently recorded
affidavit supersedes any previous affidavit (
A.R.S.
� 33-422
).

A person who proposes to offer subdivided lands for sale or lease in an
active management area (AMA) must apply for and obtain a certificate of assured
water supply from the Director of the Arizona Department of Water Resources
(ADWR) before presenting the plat for approval and before filing with the State
Real Estate Commissioner (Commissioner) a notice of intention to offer such
lands for sale or lease.

In areas outside of an AMA, the developer of a proposed subdivision,
regardless of subdivided lot size, prior to recordation of the plat, must
submit plans for the water supply for the subdivision and demonstrate the
adequacy of the water supply to meet the needs projected by the developer to
the Director of ADWR. The Director of ADWR must evaluate the proposed source of
water for the subdivision to determine whether there is an adequate water
supply and forward a copy of the report to the Commissioner (A.R.S. ��
45-108

and
45-576
).

On examination of a subdivision, the Commissioner, unless there are
grounds for denial, must issue, to the subdivider, a public report authorizing
the sale or lease of the lots, parcels or fractional interest within the
subdivision, containing data obtained through a notice of intention to
subdivide lands and any other information that the Commissioner determines is
necessary (A.R.S. ��
32-2101

and
32-2183
).

There is no anticipated fiscal impact to the state General Fund
associated with this legislation.

Provisions

County
Authorization

1.

Allows,
notwithstanding any other law, each county BOS to adopt ordinances and
regulations that allow small land subdivisions of 6 to 10 lots or parcels from
lands that are:

a)

two
acres or more in size; and

b)

not subject to an assured water supply requirement or a mandatory
adequate water supply requirement.

2.

Requires
a county to require an applicant for a small land subdivision to:

a)

submit
a small land subdivision public report; and

b)

ensure that each lot or parcel that is part of the small land
subdivision has legal access.

3.

Requires
the county BOS of a county that authorizes the use of small land subdivisions
to provide written notice of the authorizing ordinance or regulation to Arizona
Department of Real Estate (ADRE).

Small
Land Subdivision Requirements and Violations

4.

Requires
a small land subdivider, before offering land within a small land subdivision
for sale or lease, to notify the Commissioner in writing of the small land
subdivider's intention.

5.

Requires
the small land subdivision public report notice (notice) to contain:

a)

the
name and address of the owner and small land subdivider, if different from the
owner;

b)

a
statement naming the type of legal entity and listing the interest and the
extent of any interest of each principal in the entity, if the holder of any
ownership interest in the land is a legal entity other than an individual, such
as a corporation, partnership or trust;

c)

a
survey of the land that is the subject of the proposed small land subdivision
and the legal description and area of the land; and

d)

true
statements as prescribed in the required affidavit of disclosure for the sale
of parcels of land in an unincorporated area.

6.

Requires the Commissioner, on receipt of a small land subdivision report
and unless there are grounds for denial, to ensure completeness and issue a
registration of the report to the small land subdivider allowing the sale or
lease in Arizona of the lot or parcels that are the subject of the small land
subdivision.

7.

Modifies
the affidavit of disclosure for the sale of parcels of land in an
unincorporated area to add a:

a)

question regarding whether a
portion or all of the property is located in a no-fence district; and

b)

statement
that it is the property owner's responsibility to fence out unwanted livestock
using a lawful fence if the property is not located in a no-fence area.

8.

Specifies
that the requirements relating to the disclosure of the nature of a document
and delivery of the document apply to the delivery of an approved small land
subdivision public report.

9.

Allows
ADRE to assess a civil penalty for each prescribed violation, in addition and
not limited to, a buyer's ability to seek recourse against a small land
subdivider in a court of competent jurisdiction for any civil liability.

10.

Subjects a small land
subdivider that sells or leases any lots or parcels in a small land subdivision
in Arizona without first obtaining a registration of a small land subdivision
public report from the Commissioner and on an order issued by the Commissioner
to a civil penalty, after a hearing, in an amount up to $5,000 for each
infraction.

11.

Requires a proceeding to
impose a civil penalty or suspend or revoke a license for a violation relating
to selling or leasing lots or parcels without obtaining proper registration or
any rule adopted or order issued by the Commissioner to be commenced within
five years after actual discovery by ADRE or discovery that should have
occurred with the exercise of reasonable diligence by ADRE.

Miscellaneous

12.

Defines
principal
,
for the purposes of the small land subdivision notice, as any person or entity
that has a 10 percent or more financial interest or, if the legal entity is a
trust, each beneficiary of the trust that holds a 10 percent or more beneficial
interest.

13.

Defines
small land
subdivision
as improved or unimproved land or lands divided or proposed to
be divided for the purpose of sale or lease, whether immediate or future,
within a 10-year period into 6 to 10 lots or parcels in a county that has
authorized the use of small land subdivisions.

14.

Defines
small land
subdivision public report
as a written notice and disclosure submitted to
the Commissioner.

15.

Defines
small land
subdivider
as a person who:

a)

offers,
for sale or lease, 6 to 10 lots or parcels in a small land subdivision;

b)

causes
land to be divided into a small land subdivision for either the person who
causes the land to be divided or for others; or

c)

undertakes
to develop a small land subdivision.

16.

Redefines
subdivision

or
subdivided lands
mean improved or unimproved land or lands divided or
proposed to be divided for the purpose of sale or lease, whether immediate or
future, into:

a)

6 or
more lots, parcels or fractional interests, in a county that has not authorized
the use of small land subdivisions; or

b)

11
or more lots or parcels, in a county that has authorized the use of small land
subdivisions.

17.

Makes
technical and conforming changes.

18.

Becomes
effective on the general effective date.

House Action

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Prepared by Senate Research

March 22, 2026

AN/KP/ci

Current Bill Text

Read the full stored bill text
HB2100 - 572R - H Ver

House Engrossed

small land
subdivision; requirements

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2100

AN
ACT

amending title 11, chapter 6, article 4, arizona
revised statutes, by adding section 11-834; amending sections 32-2101,
32-2108.01 and 32-2183.03, Arizona Revised Statutes; amending title 32,
chapter 20, article 4, arizona revised statutes, by adding sections 32-2183.07
and 32-2183.08; amending sections 32-2185.06, 32-2185.09, 33-422 and 45-108,
Arizona Revised Statutes; relating to land division.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section
1.
1. Title 11, chapter 6, article 4, Arizona Revised
Statutes, is amended by adding section 11-834, to read:

START_STATUTE
11-834.

Small land subdivision; requirements

A. Notwithstanding any other law, the
board of supervisors of each county may adopt ordinances and regulations
pursuant to this section that allow small land subdivisions of six to ten lots
or parcels
from lands that are not subject to an assured
water supply requirement pursuant to section 45-576 or a mandatory
adequate water supply requirement pursuant to section 9-463.01 or 11-823,
all of which are two acres or more in size.

b. The county shall require an
applicant for a small land subdivision to submit a small land subdivision
public report pursuant to section 32-2183.07.

c.
The county
shall require an applicant for a small land subdivision
to
ensure
that each lot or parcel that is part of the small
land subdivision
has legal access
as
defined in section 11-831.

D. If the board of supervisors of a
county authorizes the use of small land subdivisions pursuant to subsection a
of this section, the board shall provide written notice of the ordinance or
regulation that authorizes the use of small land subdivisions to the state real
estate department.
END_STATUTE

Sec.
2.
2. Section
32-2101, Arizona Revised Statutes, is amended to read:

START_STATUTE
32-2101.

Definitions

In this chapter, unless the context otherwise requires:

1. "Acting in concert" means evidence of
collaborating to pursue a concerted plan.

2. "Address of record" means any of the
following:

(a) The address where a licensee practices or is
otherwise employed.

(b) A licensee's residential address.

(c) The address of a licensee's statutory agency who
is registered as the licensee's statutory agent with the corporation
commission. This subdivision applies only if notice of the statutory
agent is given to the department pursuant to section 32-2126.

3. "Advertising" means attempting by
publication, dissemination, exhibition, solicitation or circulation, oral or
written, or for broadcast on radio or television to induce directly or
indirectly any person to enter into any obligation or acquire any title or
interest in lands subject to this chapter, including the land sales contract to
be used and any photographs, drawings or artist's presentations of physical
conditions or facilities existing or to exist on the property. Advertising does
not include:

(a) Press releases or other communications delivered
to newspapers, periodicals or other news media for general information or
public relations purposes if no charge is made by the newspapers, periodicals
or other news media to publish or use any part of these communications.

(b) Communications to stockholders as follows:

(i) Annual reports and interim financial reports.

(ii) Proxy materials.

(iii) Registration statements.

(iv) Securities prospectuses.

(v) Applications for listing of securities on stock
exchanges.

(vi) Prospectuses.

(vii) Property reports.

(viii) Offering statements.

4. "Affiliate" means a person who,
directly or indirectly through one or more intermediaries, controls, is
controlled by or is under common control with the person specified.

5. "Associate broker" means a licensed
broker who is employed by another broker. Unless otherwise
specifically provided, an associate broker has the same license privileges as a
salesperson.

6. "Barrier" means a natural or man-made
geographic feature that prevents parcels of land from being practicably,
reasonably and economically united or reunited and that was not caused or
created by the owner of the parcels.

7. "Blanket encumbrance":

(a) Means either:

(i) Any mortgage, any deed of trust or any other
encumbrance or lien that secures or evidences the payment of monies and that
affects more than one lot or parcel of subdivided land.

(ii) An agreement that affects more than one lot or
parcel by which the subdivider holds the subdivision under an option, contract
to sell or trust agreement.

(b) Does not include taxes and assessments that are
levied by public authority.

8. "Board" means the real estate advisory
board.

9. "Broker", when used without
modification, means a person who is licensed as a broker under this chapter or
who is required to be licensed as a broker under this chapter.

10. "Business broker" means a real estate
broker who acts as an intermediary or agent between sellers or buyers, or both,
in the sale or purchase, or both, of businesses or business opportunities where
a lease or sale of real property is either a direct or incidental part of the
transaction.

11. "Camping site" means a space that is
designed and promoted for the purpose of locating any trailer, tent, tent
trailer, pickup camper or other similar device used for camping.

12. "Cemetery" or "cemetery
property" means any one, or a combination of more than one, of the
following in a place that is used, or intended to be used, and dedicated for
cemetery purposes:

(a) A burial park, for earth interments.

(b) A mausoleum, for crypt or vault entombments.

(c) A crematory, or a crematory and columbarium, for
cinerary interments.

(d) A cemetery plot, including interment rights,
mausoleum crypts, niches and burial spaces.

13. "Cemetery broker" means a person other
than a real estate broker or real estate salesperson who, for another, for
compensation:

(a) Sells, leases or exchanges cemetery property or
interment services of or for another, or on the person's own account.

(b) Offers for another or for the person's own
account to buy, sell, lease or exchange cemetery property or interment
services.

(c) Negotiates the purchase and sale, lease or
exchange of cemetery property or interment services.

(d) Negotiates the purchase or sale, lease or
exchange, or lists or solicits, or negotiates a loan on or leasing of cemetery
property or interment services.

14. "Cemetery salesperson" means a natural
person who acts on the person's own behalf or through and on behalf of a
professional limited liability company or a professional corporation engaged by
or on behalf of a licensed cemetery or real estate broker, or through and on
behalf of a corporation, partnership or limited liability company that is
licensed as a cemetery or real estate broker, to perform any act or transaction
included in the definition of cemetery broker.

15. "Commissioner" means the state real
estate commissioner.

16. "Common promotional plan" means a
plan, undertaken by a person or a group of persons acting in concert, to offer
lots for sale or lease. If the land is offered for sale by a person or group of
persons acting in concert, and the land is contiguous or is known, designated
or advertised as a common unit or by a common name, the land is presumed,
without regard to the number of lots covered by each individual offering, as
being offered for sale or lease as part of a common promotional
plan. Separate subdividers selling lots or parcels in separately
platted subdivisions within a master planned community shall not be deemed to
be offering their combined lots for sale or lease as part of a common
promotional plan.

17. "Compensation" means any fee,
commission, salary, monies or other valuable consideration for services
rendered or to be rendered as well as the promise of consideration whether
contingent or not.

18. "Contiguous":

(a) Means lots, parcels or fractional interests that
share a common boundary or point.

(b) Does not include lots, parcels or fractional
interests that are separated by either of the following:

(i) A barrier.

(ii) A road, street or highway that has been
established by this state or by any agency or political subdivision of this
state, that has been designated by the federal government as an interstate
highway or that has been regularly maintained by this state or by any agency or
political subdivision of this state and has been used continuously by the
public for at least the last five years.

19. "Control" or "controlled"
means a person who, through ownership, voting rights, power of attorney, proxy,
management rights, operational rights or other rights, has the right to make
decisions binding on an entity, whether a corporation, a partnership or any
other entity.

20. "Corporation licensee" means a
lawfully organized corporation that is registered with the corporation
commission and that has an officer licensed as the designated broker pursuant
to section 32-2125.

21. "Department" means the state real
estate department.

22. "Designated broker" means a natural
person who is licensed as a broker under this chapter and who is either:

(a) Designated to act on behalf of an employing real
estate, cemetery or membership camping entity.

(b) Doing business as a sole proprietor.

23. "Developer":

(a) Means a person who offers real property in a development
for sale, lease or use, either immediately or in the future, on the person's
own behalf or on behalf of another person, under this chapter.

(b) Does not include a person whose involvement with
a development is limited to listing property within the development for sale,
lease or use.

24. "Development" means any division,
proposed division or use of real property that the department has authority to
regulate, including subdivided and unsubdivided lands, cemeteries,
condominiums, timeshares, membership campgrounds and stock cooperatives.

25. "Distance learning" means continuing
education or prelicensure education that is an online, planned learning
experience with a geographic separation that may be synchronous or
asynchronous, that does not require real-time interaction between a
student and an instructor and that uses a platform with self-paced or
prerecorded lessons and materials that a student can access via the internet to
proceed at the student's own pace.

26. "Employing broker" means a person who
is licensed or is required to be licensed as a:

(a) Broker entity pursuant to section 32-2125,
subsection A.

(b) Sole proprietorship if the sole proprietor is a
broker licensed pursuant to this chapter.

27. "Fractional interest" means an
undivided interest in improved or unimproved land, lots or parcels of any size
created for the purpose of sale or lease and evidenced by any receipt,
certificate, deed or other document conveying the interest. Undivided interests
in land, lots or parcels created in the names of a husband and wife as
community property, joint tenants or tenants in common, or in the names of
other persons who, acting together as part of a single transaction, acquire the
interests without a purpose to divide the interests for present or future sale
or lease shall be deemed to constitute only one fractional interest.

28. "Improved lot or parcel" means a lot
or parcel of a subdivision on which there is a residential, commercial or
industrial building or concerning which a contract has been entered into
between a subdivider and a purchaser that obligates the subdivider directly, or
indirectly through a building contractor, to completely construct a
residential, commercial or industrial building on the lot or parcel within two
years after the date on which the contract of sale for the lot is entered into,
or for a condominium as defined in section 33-1202, within four years
after the date on which the contract for sale is entered into.

29. "Inactive license" means a license
that is issued pursuant to article 2 of this chapter to a licensee who is on
inactive status during the current license period and who is not engaged by or
on behalf of a broker.

30. "Lease" or "leasing"
includes any lease, whether it is the sole, the principal or any incidental
part of a transaction.

31. "License" means the whole or part of
any agency permit, certificate, approval, registration, public report, charter
or similar form of permission required by this chapter.

32. "Licensee" means a person to whom a
license for the current license period has been granted under any provision of
this chapter, and, for the purposes of section 32-2153, subsection A,
includes original license applicants.

33. "License period" means the two-year
period beginning with the date of original issue or renewal of a particular
license and ending on the expiration date, if any.

34. "Limited liability company licensee"
means a lawfully organized limited liability company that has a member or
manager who is a natural person and who is licensed as the designated broker
pursuant to section 32-2125.

35. "Live classroom course" means a course
or instructional segment delivered in either an in-person classroom
instructional format or a synchronous remote instructional format that allows
students to observe and participate remotely in an instructional segment via
livestreaming.

36. "Lot reservation" means an expression
of interest by a prospective purchaser in buying at some time in the future a
subdivided or unsubdivided lot, unit or parcel in this state. In all
cases, a subsequent affirmative action by the prospective purchaser must be
taken to create a contractual obligation to purchase.

37. "Master planned community" means a
development that consists of two or more separately platted subdivisions and
that is either subject to a master declaration of covenants, conditions or
restrictions, is subject to restrictive covenants sufficiently uniform in
character to clearly indicate a general scheme for improving or developing real
property or is governed or administered by a master owner's association.

38. "Member" means a member of the real
estate advisory board.

39. "Membership camping broker" means a
person, other than a salesperson, who, for compensation:

(a) Sells, purchases, lists, exchanges or leases
membership camping contracts.

(b) Offers to sell, purchase, exchange or lease
membership camping contracts.

(c) Negotiates or offers, attempts or agrees to
negotiate the sale, purchase, exchange or lease of membership camping
contracts.

(d) Advertises or holds himself out as being engaged
in the business of selling, buying, exchanging or leasing membership camping
contracts or counseling or advising regarding membership camping contracts.

(e) Assists or directs in procuring prospects
calculated or intended to result in the sale, purchase, listing, exchange or
lease of membership camping contracts.

(f) Performs any of the foregoing acts as an
employee or on behalf of a membership camping operator or membership contract
owner.

40. "Membership camping contract" means an
agreement that is offered or sold in this state evidencing a purchaser's right
or license to use the camping or outdoor recreation facilities of a membership
camping operator and includes a membership that provides for this use.

41. "Membership camping operator":

(a) Means an enterprise, other than one that is tax
exempt under section 501(c)(3) of the internal revenue code of 1986, as
amended, that solicits membership paid for by a fee or periodic payments and
has as one of its purposes camping or outdoor recreation, including the use of
camping sites primarily by members.

(b) Does not include camping or recreational trailer
parks that are open to the general public and that contain camping sites rented
for a per use fee or a mobile home park.

42. "Membership camping salesperson" means
a natural person who acts on the person's own behalf or through and on behalf
of a professional limited liability company or a professional corporation
engaged by or on behalf of a licensed membership camping or real estate broker,
or by or on behalf of a corporation, partnership or limited liability company
that is licensed as a membership camping or real estate broker, to perform any
act or participate in any transaction in a manner included in the definition of
membership camping broker.

43. "Partnership licensee" means a
partnership with a managing general partner who is licensed as the designated
broker pursuant to section 32-2125.

44. "Permanent access", as required under
article 4 of this chapter, means permanent access from the subdivision to any
federal, state or county highway.

45. "Perpetual care" or "endowed
care":

(a) Means maintaining and caring, in all places
where interments have been made, for the trees, shrubs, roads, streets and
other improvements and embellishments contained within or forming a part of the
cemetery.

(b) Does not include maintaining or repairing
monuments, tombs, copings or other man-made ornaments as associated with
individual burial spaces.

46. "Perpetual or endowed-care
cemetery" means a cemetery in which lots or other burial spaces are sold
or transferred under the representation that the cemetery will receive
perpetual care or endowed care free of further cost to the purchaser after
payment of the original purchase price for the lot, burial space or interment
right.

47. "Person" means any individual,
corporation, partnership or company and any other form of multiple organization
for carrying on business, foreign or domestic.

48. "Private cemetery" means a cemetery or
place that is not licensed under article 6 of this chapter, where burials or
interments of human remains are made, in which sales or transfers of interment
rights or burial plots are not made to the public and in which not more than
ten interments or burials occur annually.

49. "Promotion" or "promotional
practice" means advertising and any other act, practice, device or scheme
to induce directly or indirectly any person to enter into any obligation or
acquire any title or interest in or use of real property subject to this
chapter, including meetings with prospective purchasers, arrangements for
prospective purchasers to visit real property, travel allowances and discount,
exchange, refund and cancellation privileges.

50. "Real estate" includes leasehold-interests
and any estates in land as defined in title 33, chapter 2, articles 1 and 2,
regardless of whether located in this state.

51. "Real estate broker" means a person,
other than a salesperson, who, for another and for compensation:

(a) Sells, exchanges, purchases, rents or leases
real estate, businesses and business opportunities or timeshare interests.

(b) Offers to sell, exchange, purchase, rent or
lease real estate, businesses and business opportunities or timeshare
interests.

(c) Negotiates or offers, attempts or agrees to
negotiate the sale, exchange, purchase, rental or leasing of real estate,
businesses and business opportunities or timeshare interests.

(d) Lists or offers, attempts or agrees to list real
estate, businesses and business opportunities or timeshare interests for sale,
lease or exchange.

(e) Auctions or offers, attempts or agrees to
auction real estate, businesses and business opportunities or timeshare
interests.

(f) Buys, sells, offers to buy or sell or otherwise
deals in options on real estate, businesses and business opportunities or
timeshare interests or improvements to real estate, businesses and business
opportunities or timeshare interests.

(g) Collects or offers, attempts or agrees to
collect rent for the use of real estate, businesses and business opportunities
or timeshare interests. This subdivision does not apply to a person
who is not a licensee, who works for a real estate broker or a real estate
salesperson, who collects in-person rent and related fees on behalf of the real
estate broker or real estate salesperson for the use of real estate as part of
the person's clerical duties and who provides a receipt when rent is paid.

(h) Advertises or holds himself out as being engaged
in the business of buying, selling, exchanging, renting or leasing real estate,
businesses and business opportunities or timeshare interests or counseling or
advising regarding real estate, businesses and business opportunities or
timeshare interests.

(i) Assists or directs in procuring prospects that
are calculated to result in the sale, exchange, leasing or rental of real
estate, businesses and business opportunities or timeshare interests.

(j) Assists or directs in negotiating any
transaction calculated or intended to result in the sale, exchange, leasing or
rental of real estate, businesses and business opportunities or timeshare
interests.

(k) Incident to the sale of real estate, businesses
and business opportunities negotiates or offers, attempts or agrees to
negotiate a loan secured or to be secured by any mortgage or other encumbrance
on or transfer of real estate, businesses and business opportunities or
timeshare interests subject to section 32-2155, subsection
D. This subdivision does not apply to mortgage brokers as defined in
and subject to title 6, chapter 9, article 1.

(l) Engages in the business of assisting or offering
to assist another in filing an application for the purchase or lease of, or in
locating or entering on, lands owned by the state or federal government.

(m) Claims, demands, charges, receives, collects or
contracts to collect an advance fee in connection with any employment
enumerated in this section, including employment undertaken to promote the sale
or lease of real property by advance fee listing, by furnishing rental
information to a prospective tenant for a fee paid by the prospective tenant,
by advertising or by any other offering to sell, lease, exchange or rent real
property or selling kits connected therewith. This does not include the
activities of any communications media of general circulation or coverage not
primarily engaged in advertising real estate or any communications media
activities that are specifically exempt from applicability of this article
under section 32-2121.

(n) Engages in any of the acts listed in
subdivisions (a) through (m) of this paragraph for the sale or lease of other
than real property if a real property sale or lease is a part of, contingent on
or ancillary to the transaction.

(o) Performs any of the acts listed in subdivisions
(a) through (m) of this paragraph as an employee of, or in behalf of, the owner
of real estate, or interest in the real estate, or improvements affixed on the
real estate, for compensation.

(p) Acts as a business broker.

52. "Real estate sales contract" means an
agreement in which one party agrees to convey title to real estate to another
party on the satisfaction of specified conditions set forth in the contract.

53. "Real estate salesperson" means a
natural person who acts on the person's own behalf or through and on behalf of
a professional limited liability company or a professional corporation engaged
by or on behalf of a licensed real estate broker, or by or on behalf of a
limited liability company, partnership or corporation that is licensed as a
real estate broker, to perform any act or participate in any transaction in a
manner included in the definition of real estate broker subject to section 32-2155.

54. "Sale" or "lease" includes
every disposition, transfer, option or offer or attempt to dispose of or
transfer real property, or an interest, use or estate in the real property,
including offering the property as a prize or gift if a monetary charge or
consideration for whatever purpose is required.

55. "Salesperson", when used without
modification, means a natural person who acts on the person's own behalf or
through and on behalf of a professional limited liability company or a
professional corporation licensed under this chapter or any person required to
be licensed as a salesperson under this chapter.

56. "School" means a person or entity that
offers a course of study toward completion of the education requirements
leading to licensure or renewal of licensure under this chapter.

57. "Small land subdivider"
means any person who does any of the following:

(
a
) Offers for
sale or lease six to ten lots or parcels in a small land subdivision.

(
b
) Causes land
to be divided into a small land subdivision for either the person who causes
the land to be divided or for others.

(
c
) Undertakes
to develop a small land subdivision.

58. "Small land
subdivision" means improved or unimproved land or lands that are divided
or proposed to be divided for the purpose of sale or lease, whether immediate
or future, within a ten-year period into six to ten lots or parcels in a county
that has authorized the use of small land subdivisions pursuant to section
11-834.

59. "Small land subdivision
public report" means a written notice and disclosure submitted to the
commissioner pursuant to section 32-2183.07.

57.

60.
"Stock
cooperative" means a corporation to which all of the following apply:

(a) The corporation is formed or used to hold title
to improved real property in fee simple or for a term of years.

(b) All or substantially all of the shareholders of
the corporation each receive a right of exclusive occupancy in a portion of the
real property to which the corporation holds title.

(c) The right of occupancy may only be transferred
with the concurrent transfer of the shares of stock in the corporation held by
the person having the right of occupancy.

58.

61.
"Subdivider":

(a) Means any person who offers for sale or lease
six or more lots, parcels or fractional interests in a subdivision or who
causes land to be subdivided into a subdivision for the
subdivider

person
or for others, or who undertakes to develop a
subdivision.

(b) Does not include a public agency or officer
authorized by law to create subdivisions.

59.

62.
"Subdivision"
or "subdivided lands":

(a) Means improved or unimproved land or lands
divided or proposed to be divided for the purpose of sale or lease, whether
immediate or future, into
either of the following:

(
i
) In a county
that has not authorized the use of small land subdivisions pursuant to section
11-834,
six or more lots, parcels or fractional interests.

(
ii
) In a
county that has authorized the use of small land subdivisions pursuant to
section 11-834, eleven or more lots or parcels.

(b) Includes a stock cooperative, lands divided or
proposed to be divided as part of a common promotional plan and residential
condominiums as defined in title 33, chapter 9.

(c) Does not include:

(i) Leasehold offerings of one year or less.

(ii) The division or proposed division of land
located in this state into lots or parcels each of which is or will be thirty-six
acres or more in area including to the centerline of dedicated roads or
easements, if any, contiguous to the lot or parcel.

(iii) The leasing of agricultural lands or
apartments, offices, stores, hotels, motels, pads or similar space within an
apartment building, industrial building, rental recreational vehicle community,
rental manufactured home community, rental mobile home park or commercial
building.

(iv) The subdivision into or development of parcels,
plots or fractional portions within the boundaries of a cemetery that has been
formed and approved pursuant to this chapter.

(v) A sale or lease of a lot, parcel or fractional
interest that occurs ten or more years after the sale or lease of another lot,
parcel or fractional interest if the other lot, parcel or fractional interest
is not subject to this article and is treated as an independent parcel unless,
on investigation by the commissioner, there is evidence of intent to subdivide.

60.

63.
"Timeshare"
or "timeshare property" means real property ownership or right of
occupancy in real property pursuant to article 9 of this
chapter. For the purposes of this chapter, a timeshare is not a
security unless it meets the definition of a security under section 44-1801.

61.

64.
"Trustee":

(a) Means a person who either:

(i) Is designated under section 32-2194.27 to
act as a trustee for an endowment-care cemetery fund.

(ii) Holds bare legal title to real property under a
subdivision trust.

(b) Does not include a developer, subdivider, broker
or salesperson within this chapter.

62.

65.
"Unimproved
lot or parcel" means a lot or parcel of a subdivision that is not an
improved lot or parcel.

63.

66.
"Unsubdivided
lands":

(a) Means land or lands divided or proposed to be
divided for the purpose of sale or lease, whether immediate or future, into six
or more lots, parcels or fractional interests and the lots or parcels are
thirty-six acres or more each but less than one hundred sixty acres each,
or that are offered, known or advertised under a common promotional plan for
sale or lease, except that agricultural leases shall not be included in this
definition.

(b) Includes any land that is sold and that would
otherwise constitute the sixth lot, parcel or fractional interest if the sale
occurs ten or more years after the earliest of the previous five sales and if
all of the sales consist of property that was originally contained within the
same parcel that is thirty-six acres or more and less than one hundred
sixty acres.
END_STATUTE

Sec.
3.
3. Section 32-2108.01, Arizona Revised Statutes,
is amended to read:

START_STATUTE
32-2108.01.

License applicants; fingerprint clearance cards; definition

A. Before receiving and holding a license issued
pursuant to this chapter, each license applicant shall obtain a valid
fingerprint clearance card issued pursuant to section 41-1758.03.

B. The license applicant is responsible for
providing the department with a valid fingerprint clearance card.

C. The department shall not issue a license to an
original license applicant before receiving a valid fingerprint clearance card
pursuant to this section. The department may suspend a license if
the licensee's fingerprint clearance card is suspended and either:

1. If the person was convicted of the alleged crime
causing the fingerprint clearance card suspension, the commissioner could use
the conviction to deny the license application pursuant to this chapter.

2. The licensee fails to submit sufficient evidence
to prove the individual applied for a good cause exception pursuant to section
41-619.55 within five business days after being notified by the
department.

D. This section does not affect the department's
authority to otherwise issue, deny, cancel, terminate, suspend or revoke a
license.

E. For the purposes of this section, "license
applicant" means:

1. Each original real estate salesperson, cemetery
salesperson and membership camping salesperson and each original real estate
broker, cemetery broker and membership camping broker applicant pursuant to
article 2 of this chapter.

2. Each natural person, or for an entity applicant,
any person exercising control of the entity, who applies for an original
certificate of approval to operate a real estate school, or for a renewal
certificate, any natural person or person exercising control who has not
previously submitted a fingerprint clearance card to the department.

3. Any natural person, or for an entity applicant,
any person exercising control of the entity, for whom the department has
evidence of a criminal record that has not been previously reviewed or
evaluated by the department and who applies for a:

(a) License renewal pursuant to section 32-2130.

(b) Public report to:

(i) Sell or lease subdivided lands pursuant to
article 4 of this chapter.

(ii) Sell or lease unsubdivided lands pursuant to
article 7 of this chapter.

(iii) Sell or lease
timeshare estates pursuant to article 9 of this chapter.

(iv) Sell membership
camping contracts pursuant to article 10 of this chapter.

(
c
) Small land
subdivision public report to sell or lease lands in a small land subdivision
pursuant to article 4 of this chapter.

(c)

(
d
)
Certificate of authority to sell cemetery lots
pursuant to article 6 of this chapter.
END_STATUTE

Sec.
4.
4. Section
32-2183.03, Arizona Revised Statutes, is amended to read:

START_STATUTE
32-2183.03.

Civil liabilities

A.
When

If
any
part of the notice of intention filed pursuant to section 32-2181
contains an untrue statement of a material fact or omits a material fact
required to be stated in such notice, the subdivider or agent shall be liable
as provided in this section to any person who acquires a lot or parcel in the
subdivision covered by such notice of intention during such period the notice
of intention remained uncorrected unless at the time of such acquisition the
person acquiring the lot knew of such untruth or omission.

B. Any subdivider or agent who sells or leases a lot
or parcel in a subdivision in violation of section 32-2183 or by means of
a public report
or small land subdivision public report
that
contains an untrue statement of a material fact or omits a material fact
required to be stated in such report shall be liable to the purchaser of such
lot or parcel as provided in this section unless at the time of purchase the
purchaser knew of the untruth or omission.

C. It is unlawful for a subdivider or agent in
selling or leasing, or offering to sell or lease, any lot or parcel in a
subdivision to:

1. Employ any device, scheme or artifice to defraud.

2. Obtain money or property by means of a material
misrepresentation with respect to any information included in the notice of
intention or the public report
or small land subdivision public
report
or with respect to any other information pertinent to the lot,
parcel or subdivision and on which the purchaser relies.

3. Engage in any transaction, practice or course of
business that operates or would operate as a fraud or deceit on a purchaser.

D. Except as provided in subsection E of this
section, damages in any suit brought pursuant to this section shall be the
difference between the purchase price of the lot or parcel plus the cost of any
improvements made to such lot or parcel and the following applicable amount:

1. The price at which such lot or parcel was sold in
a bona fide market transaction
prior to

before

suit or judgment.

2. If the lot or
parcel has not been sold before judgment, the current market value of the lot
or parcel and any improvements as of the date the suit was filed.

E. The damages
described in subsection D of this section shall not exceed the dollar amount
that is the difference in price or market value that results from the untrue
statement of material fact or omission of material fact that is required to be
stated in the public report.

F. In any action in which a violation of this
section is established
,
the purchaser shall also be
entitled to recover reasonable attorney fees as determined by the
court. If a violation is not established, the court, in its
discretion, may award reasonable attorney fees to the defendant.

G. Every person who becomes liable to make any
payment pursuant to this section may recover contribution as in cases of
contract from any person who, if sued separately, would have been liable to
make the same payment.

H.
In no case shall
The amount
recoverable pursuant to this section
shALL not
exceed the
sum of the purchase price of the lot or parcel, the reasonable cost of
improvements installed by the purchaser and reasonable court costs and
attorneys'
attorney
fees.

I.
Nothing contained in
This
section
shall be construed to

does not

preclude any other remedies that may exist at law or in equity.

J.
No
An

action shall
not
be maintained to enforce any liability
created pursuant to subsection A or B of this section unless brought within one
year after the discovery of the untrue statement or the omission or after such
discovery should have been made by the exercise of reasonable
diligence.
No

An
action
shall
not
be maintained to enforce any liability created
pursuant to subsection C of this section unless brought within two years after
the violation on which it is based.
In no event shall

Any such action
SHALL not
be brought by a purchaser more
than three years after the sale or lease to such purchaser.
END_STATUTE

Sec.
5.
5. Title
32, chapter 20, article 4, Arizona Revised Statutes, is amended by adding sections
32-2183.07 and 32-2183.08, to read:

START_STATUTE
32-2183.07.

Small land subdivision public report; requirements

a.
Before
offering land within a small land subdivision for sale or lease, a small land
subdivider shall notify the commissioner in writing of the small land
subdivider's intention. The small land subdivision
public report
notice shall contain the
following:

1. The name and address of the owner
and the small land subdivider, if different than the owner. If the
holder of any ownership interest in the land is other than an individual, such
as a corporation, partnership or trust, a statement naming the type of legal
entity and listing the interest and the extent of any interest of each
principal in the entity. For the purposes of this paragraph,
"principal" means any person or entity that has a ten percent or more
financial interest or, if the legal entity is a trust, each beneficiary of the
trust that holds a ten percent or more beneficial interest.

2. A survey of the land that is the
subject of the proposed small land subdivision
and the
legal description and area of the land.

3. True statements for all of the
following:

(
a
) THERE
◻
IS
◻
IS NOT . . . . LEGAL ACCESS, AS DEFINED IN A.R.S. � 11-831, TO THE
LANDS.

EXPLAIN:
____________________________________________________

_____________________________________________________________

_____________________________________________________________

(
b
) THERE
◻
IS
◻
IS NOT . . . . PHYSICAL ACCESS TO THE LANDS.

EXPLAIN:
____________________________________________________

_____________________________________________________________

_____________________________________________________________

(
c
) THERE
◻
IS
◻
IS NOT . . . . A STATEMENT FROM A LICENSED SURVEYOR OR ENGINEER
AVAILABLE STATING WHETHER THE LANDS HAVE PHYSICAL ACCESS THAT IS TRAVERSABLE BY
A TWO-WHEEL DRIVE PASSENGER MOTOR VEHICLE.

(
d
) THE LEGAL
AND PHYSICAL ACCESS TO THE LANDS
◻
IS
◻
IS
NOT . . . . THE SAME.

EXPLAIN:
____________________________________________________

_____________________________________________________________

_____________________________________________________________

(
e
) THE ROAD(S)
IS/ARE
◻
PUBLICLY MAINTAINED
◻
PRIVATELY MAINTAINED
◻
NOT MAINTAINED
◻
NOT APPLICABLE. IF APPLICABLE, THERE
◻
IS
◻
IS NOT . . . . A RECORDED ROAD MAINTENANCE AGREEMENT.

(
f
) A PORTION
OR ALL OF THE LANDS
◻
ARE
◻
ARE NOT . . . . LOCATED IN A FEMA-DESIGNATED
REGULATORY FLOODPLAIN.

EXPLAIN:
____________________________________________________

_____________________________________________________________

_____________________________________________________________

(
g
) THE LANDS
◻
ARE
◻
ARE NOT . . . . SUBJECT TO
◻
FISSURES OR
◻

EXPANSIVE SOILS.

EXPLAIN:
____________________________________________________

_____________________________________________________________

_____________________________________________________________

(
h
) THE
FOLLOWING SERVICES ARE CURRENTLY PROVIDED TO THE LANDS:
◻
WATER
◻
SEWER
◻
ELECTRIC
◻
NATURAL GAS
◻

SINGLE-PARTY TELEPHONE
◻
CABLE TELEVISION SERVICES.

(
i
) THE LANDS
◻
ARE
◻
ARE NOT . . . . SERVED BY A WATER SUPPLY THAT REQUIRES THE
TRANSPORTATION OF WATER TO THE PROPERTY. IF THE LANDS WILL BE SERVED
BY A WATER SUPPLY THAT REQUIRES THE TRANSPORTATION OF WATER TO THE LANDS, THE
NAME AND CONTACT INFORMATION OF THE WATER HAULER OR WATER HAULING COMPANY THAT
WILL PROVIDE THE TRANSPORTATION SERVICES TO THE LANDS AND THE NAME AND LOCATION
OF THE WATER SUPPLY FROM WHICH THE WATER WILL BE TRANSPORTED:

WATER HAULER NAME: _____________
PHONE:______________

WATER SUPPLY: __________________
LOCATION:___________

(
j
) THE LANDS ARE SERVED BY
◻
A PRIVATE WATER COMPANY
◻
A MUNICIPAL WATER PROVIDER
◻
A PRIVATE WELL
◻
A
SHARED WELL
◻
NO
WELL. IF SERVED BY A SHARED WELL, THE SHARED WELL
◻
IS
◻
IS NOT
. . . .
A PUBLIC WATER SYSTEM, AS
DEFINED BY THE SAFE DRINKING WATER ACT (42 U.S.C. � 300
f
).

(
k
) THE LANDS
OR THE WATER USED ON THE LANDS
◻
ARE
◻
ARE NOT
. . . .
THE SUBJECT OF A STATEMENT OF
CLAIMANT
FOR THE USE OF WATER IN A GENERAL
ADJUDICATION OF WATER RIGHTS
◻
unknown.

(
l
) THE LANDS
◻
DO HAVE
◻
DO NOT HAVE . . . . ON-SITE WASTEWATER TREATMENT FACILITIES (I.E.,
STANDARD SEPTIC OR ALTERNATIVE SYSTEM TO TREAT AND DISPOSE OF
WASTEWATER). IF APPLICABLE:

(
i
) THE LANDS
◻
WILL
◻
WILL NOT . . . . REQUIRE INSTALLATION OF AN ON-SITE WASTEWATER
TREATMENT FACILITY.

(
ii
) THE
ON-SITE WASTEWATER TREATMENT FACILITIES
◻
HAVE
◻
HAVE
NOT .
. . . BEEN INSPECTED.

(
m
) THE LANDS
◻
HAVE BEEN
◻
HAVE NOT BEEN . . . . SUBJECT TO A PERCOLATION TEST.
◻
UNKNOWN.

(
n
) THE LANDS
◻
DO HAVE
◻
DO NOT HAVE . . . . ONE OR MORE SOLAR ENERGY DEVICES THAT ARE
◻
LEASED
◻
OWNED. IF THE SOLAR ENERGY DEVICES ARE LEASED, THE NAME
AND CONTACT INFORMATION OF THE LEASING COMPANY:

LEASING COMPANY NAME: _______________
PHONE: _______________

(
o
) THE
LANDS
◻
DO HAVE
◻
DO NOT HAVE . . . . ONE OR MORE BATTERY
ENERGY STORAGE DEVICES THAT ARE
◻
LEASED
◻

OWNED. IF THE BATTERY ENERGY STORAGE DEVICES ARE LEASED, THE NAME AND CONTACT
INFORMATION OF THE LEASING COMPANY:

LEASING COMPANY NAME: _________________
PHONE: ____________

(
p
) A PORTION
OR ALL OF THE LANDS�
◻
ARE
◻
ARE NOT . . . . LOCATED IN A NO-FENCE
DISTRICT ESTABLISHED PURSUANT TO A.R.S. TITLE 3, CHAPTER 11, ARTICLE
8. it is the property owner's responsibility to fence out unwanted
livestock using a lawful fence as prescribed by A.R.S. � 3-1426 if
the property is not located in a no-fence district.

(
q
) THE LANDS
◻
DO
◻
DO NOT . . . . MEET THE MINIMUM APPLICABLE COUNTY ZONING REQUIREMENTS
OF THE APPLICABLE ZONING DESIGNATION.

(
r
) THE SALE OF
THE LANDS
◻
DO
◻
DO NOT . . . . MEET THE REQUIREMENTS OF
A.R.S. � 11-831 AND � 32-2181 REGARDING LAND DIVISIONS. IF THOSE REQUIREMENTS
ARE NOT MET, THE PROPERTY OWNER MAY NOT BE ABLE TO OBTAIN A BUILDING
PERMIT. IT IS UNLAWFUL PURSUANT TO A.R.S. � 11-831,
SUBSECTION F AND A.R.S. � 32-2181, SUBSECTION D FOR A PERSON OR GROUP OF
PERSONS TO ATTEMPT TO AVOID THE SUBDIVISION LAWS OF THIS STATE BY ACTING IN
CONCERT TO DIVIDE A PARCEL OF LAND INTO SIX OR MORE LOTS OR
PARCELS. THE COUNTY WHERE THE LAND DIVISION OCCURRED OR THE STATE
REAL ESTATE DEPARTMENT MAY INVESTIGATE AND ENFORCE THE PROHIBITION AGAINST
ACTING IN CONCERT TO UNLAWFULLY DIVIDE A PARCEL OF LAND INTO SIX OR MORE LOTS
OR PARCELS. IF THE SALE OF THE LANDS DO NOT MEET THE REQUIREMENTS OF
A.R.S. � 11-831 AND � 32-2181, THE DEFICIENCIES ARE THE FOLLOWING:

______________________________________________________________

______________________________________________________________

______________________________________________________________

(
s
) THE LANDS
◻
ARE
◻
ARE NOT . . . . LOCATED IN THE CLEAR ZONE OF A MILITARY AIRPORT OR
ANCILLARY MILITARY FACILITY, AS DEFINED IN A.R.S. � 28-8461. (MAPS
ARE AVAILABLE AT THE STATE REAL ESTATE DEPARTMENT'S WEBSITE.)

(
t
) THE LANDS
◻
ARE
◻
ARE NOT . . . . LOCATED IN THE HIGH NOISE OR ACCIDENT POTENTIAL ZONE
OF A MILITARY AIRPORT OR ANCILLARY MILITARY FACILITY, AS DEFINED IN A.R.S. �
28-8461. (MAPS ARE AVAILABLE AT THE STATE REAL ESTATE DEPARTMENT'S
WEBSITE.)

(
u
) NOTICE: IF
THE LANDS ARE LOCATED WITHIN THE TERRITORY IN THE VICINITY OF A MILITARY
AIRPORT OR ANCILLARY MILITARY FACILITY, THE LANDS ARE REQUIRED TO COMPLY WITH
SOUND ATTENUATION STANDARDS AS PRESCRIBED BY A.R.S. � 28-8482. (MAPS
ARE AVAILABLE AT THE STATE REAL ESTATE DEPARTMENT'S WEBSITE.)

(
v
) THE LANDS
◻
ARE
◻
ARE NOT . . . . LOCATED UNDER MILITARY RESTRICTED
AIRSPACE. (MAPS ARE AVAILABLE AT THE STATE REAL ESTATE DEPARTMENT'S
WEBSITE.)

(
w
) THE LANDS
◻
ARE
◻
ARE NOT . . . . LOCATED IN A MILITARY ELECTRONICS RANGE AS DEFINED IN
A.R.S. � 9-500.28 AND � 11-818. (MAPS ARE AVAILABLE AT THE STATE
REAL ESTATE DEPARTMENT'S WEBSITE.)

(
x
) THE LANDS
◻
ARE
◻
ARE NOT . . . . LOCATED WITHIN THE INFLUENCE AREA OF A MILITARY
INSTALLATION OR RANGE OR ARIZONA NATIONAL GUARD SITE AS DEFINED IN A.R.S. �
9-500.50 AND � 11-818.01. (MAPS ARE AVAILABLE AT THE STATE REAL ESTATE
DEPARTMENT's WEBSITE.)

(
y
) USE OF THE
LANDS
◻
IS
◻
IS NOT . . . . LIMITED IN ANY WAY
RELATING TO AN ENCUMBRANCE OF TITLE DUE TO A LIS PENDENS, A COURT ORDER OR A
STATE REAL ESTATE DEPARTMENT ORDER OR A PENDING LEGAL ACTION. IF THE
USE OF THE LANDS IS LIMITED DUE TO AN ENCUMBRANCE OF TITLE, THE LIMITATIONS TO
THE USE ARE THE FOLLOWING:

_____________________________________________________________

_____________________________________________________________

_____________________________________________________________

B. On receipt of a small land
subdivision public report, the commissioner, UNLESS there are grounds for
denial, shall ensure completeness and issue a registration of the small land
subdivision public report to the small land subdivider allowing the sale or
lease in this state of the lot OR parcels that are the SUBJECT of the small
land subdivision.
END_STATUTE

START_STATUTE
32-2183.08.

Small land subdivisions; delivery; penalties

A. For
the purposes of a delivery of an approved small land subdivision public report,
section 32-2185.06 applies.

B. In addition to, and not limited
to, a buyer's ability to seek recourse against a small land subdivider in a court
of competent jurisdiction for any civil liability prescribed in section
32-2183.03, the department may assess a civil penalty for each violation of
this chapter pursuant to section 32-2185.09.
END_STATUTE

Sec.
6.
6. Section
32-2185.06, Arizona Revised Statutes, is amended to read:

START_STATUTE
32-2185.06.

Contract disclosures; contract disclaimers

All agreements and contracts for the purchase or lease of
subdivided land from a subdivider, owner or agent shall clearly and
conspicuously disclose, in accordance with regulations adopted by the
commissioner, the nature of the document, the purchaser's right to receive a
copy of the public report
or small land subdivision public
report
and, in the case of unimproved lots or parcels not exempted by
regulation pursuant to section 32-2185.01, the purchaser's right to
rescind the agreement as provided in section 32-2185.01. Any
contract, agreement or lease
which

that
fails
to make disclosures pursuant to this section shall not be enforceable against
the purchaser. If the transaction involves a lot or parcel offered
for present or future residential use, the contract, agreement or lease shall
not waive or disclaim liability for prior material representations relied
upon

on
by the purchaser made by the
seller and such seller's agents concerning the subdivision and lot or parcel
involved, and any provision attempting to waive or disclaim liability is void.
END_STATUTE

Sec.
7.
7. Section
32-2185.09, Arizona Revised Statutes, is amended to read:

START_STATUTE
32-2185.09.

Civil penalties; limitation

A. A subdivider or agent
who
that
is subject to the jurisdiction of the department,
who
that
violates this chapter or any rule
adopted or order issued by the commissioner or
who
that
engages in any unlawful
practices defined
practice prescribed
in section 44-1522 with respect to
the sale or lease of subdivided lands may be assessed a civil penalty by the
commissioner, after a hearing, in an amount not to exceed $2,000 for each
infraction. An infraction that concerns more than one lot in a
subdivision is a single infraction for the purposes of this section.

B. A proceeding
for imposition of
to impose
a civil penalty or
for suspension
to suspend
or
revocation of
revoke
a license for a violation of this article or any rule
adopted or order issued by the commissioner must be commenced within five years
of actual discovery by the department or discovery that should have occurred
with the exercise of reasonable diligence by the department.

C. A subdivider
who
that
sells or leases in this state any
lots, parcels or fractional interest in a subdivision without first obtaining a
public report from the commissioner except as provided in section 32-2181.01
or 32-2181.02 for a lot or lots created from and after December 31, 2008
and on an order issued by the commissioner may be assessed a civil penalty by
the commissioner, after a hearing, in an amount not to exceed $5,000 for each
infraction. A proceeding
for the imposition of
to impose
a civil penalty or
suspension
to suspend
or
revocation of
revoke
a license for a violation of this subsection or any
rule adopted or order issued by the commissioner must be commenced within five
years after actual discovery by the department or discovery that should have
occurred with the exercise of reasonable diligence by the department.

D. A small land subdivider that sells
or leases in this state any lots or parcels in a small land subdivision without
first obtaining a registration of a small land subdivision public report from
the commissioner and on an order issued by the commissioner may be assessed a
civil penalty by the commissioner, after a hearing, in an amount not to exceed
$5,000 for each infraction.

E. A proceeding to impose a civil
penalty or to suspend or revoke a license for a violation of subsection D OF
THIS SECTION or any rule adopted or order issued by the commissioner must be
commenced within five years after actual discovery by the department or
discovery that should have occurred with the exercise of reasonable diligence
by the department.
END_STATUTE

Sec.
8.
8. Section
33-422, Arizona Revised Statutes, is amended to read:

START_STATUTE
33-422.

Land divisions; recording; disclosure affidavit

A. A seller of five or fewer parcels of land, other
than subdivided land, in an unincorporated area of a county and any subsequent
seller of such a parcel shall complete and furnish a written affidavit of
disclosure to the buyer at least seven days before the transfer of the property
and the buyer shall acknowledge receipt of the affidavit.

B. The affidavit must be written in twelve-point
type.

C. A release or waiver of a seller's liability
arising out of any omission or misrepresentation contained in an affidavit of
disclosure is not valid or binding on the buyer.

D. The buyer has the right to rescind the sales
transaction for a period of five days after the affidavit of disclosure is
furnished to the buyer.

E. The seller shall record the executed affidavit of
disclosure at the same time that the deed is recorded. The county recorder is
not required to verify the accuracy of any statement in the affidavit of
disclosure. A subsequently recorded affidavit supersedes any
previous affidavit.

F. The affidavit of disclosure shall contain all of
the following disclosures, be completed by the seller, meet the requirements of
section 11-480 and follow substantially the following form:

When
recorded mail to:

__________________________

__________________________

__________________________

__________________________

Affidavit
of Disclosure

Pursuant
to A.R.S. � 33-422

I, ______________________________________________
(seller(s)) being duly sworn, hereby make this affidavit of disclosure relating
to the real property situated in the unincorporated area of:

_______________________,
County, State of Arizona, located at:

______________________________________________________________

and
legally described as:

(Legal
description attached hereto as exhibit "A")

(property).

1. There ◻ is
◻ is not . . . . legal access to the property, as defined
in A.R.S. � 11-831 . . . . ◻ unknown

Explain:
____________________________________________________

______________________________________________________________

______________________________________________________________

2. There ◻
is ◻ is not . . . . physical access to the property. ◻ unknown

Explain:
____________________________________________________

______________________________________________________________

______________________________________________________________

3. There ◻ is
◻ is not . . . . a statement from a licensed surveyor or
engineer available stating whether the property has physical access that is
traversable by a two-wheel drive passenger motor vehicle.

4. The
legal and physical access to the property ◻ is ◻ is not .
. . . the same....◻ unknown ◻ not
applicable.

Explain:
____________________________________________________

______________________________________________________________

______________________________________________________________

If
access to the parcel is not traversable by emergency vehicles, the county and
emergency service providers may not be held liable for any damages resulting
from the inability to traverse the access to provide needed services.

5. The
road(s) is/are ◻ publicly maintained ◻ privately
maintained� ◻ not maintained ◻ not
applicable. If applicable, there ◻ is ◻ is not
. . . . a recorded road maintenance agreement.

If
the roads are not publicly maintained, it is the responsibility of the property
owner(s) to maintain the roads and roads that are not improved to county
standards and accepted for maintenance are not the county's responsibility.

6. A portion or all of
the property ◻ is ◻ is not . . . .
located in a FEMA designated regulatory floodplain. If the property is in a
floodplain, it may be subject to floodplain regulation.

7. The property ◻ is
◻ is not subject to ◻ fissures or ◻ expansive
soils. ◻ unknown

Explain:
____________________________________________________

______________________________________________________________

______________________________________________________________

8. The following
services are currently provided to the property: ◻ water ◻ sewer
◻ electric ◻ natural gas ◻ single
party telephone ◻ cable television services.

9. The property ◻ is
◻ is not . . . . served by a water supply that requires
the transportation of water to the property. If the property is
served by a water supply that requires the transportation of water to the
property, the seller shall disclose the name and contact information of the
water hauler or water hauling company that is currently providing the
transportation services to the property and the name and location of the water
supply from which the water is currently being transported.

Water
hauler name: ______________��� Phone:__________

Water
supply: __________________�� Location:_________

10. The
property is served by ◻ a private water company ◻ a
municipal water provider ◻ a private well ◻ a
shared well ◻ no well. If served by a shared
well, the shared well ◻ is ◻ is not
. . . . a public water system, as defined by the safe drinking water act (42
United States Code
U.S.C.

� 300f).

Notice
to buyer: If the property is served by a well, a private water company or a
municipal water provider the Arizona department of water resources may not have
made a water supply determination. For more information about water
supply, contact the water provider.

11. The
property or the water used on the property ◻ is ◻ is
not the subject of a statement of claimant for the use of water in a general
adjudication of water rights. ◻ unknown.

This
is a lawsuit to determine the use of and relative priority of water
rights. A map of adjudicated areas is available at the website of
the department of water resources.

12. The property ◻ does
have ◻ does not have . . . . an on-site wastewater
treatment facility (i.e., standard septic or alternative system to treat and
dispose of wastewater). ◻ unknown.

If applicable: a) The
property ◻ will ◻ will not . . . . require
installation of an on-site wastewater treatment facility;
b) The on-site wastewater treatment facility ◻ has
◻ has not been inspected.

13. The
property ◻ has been ◻ has not been
. . . . subject to a percolation test. ◻ unknown.

14. The property ◻ does
have ◻ does not have one or more solar energy devices
that are ◻ leased ◻ owned.

If the solar energy devices
are leased, the seller shall disclose the name and contact information of the
leasing company.

Leasing company name: _______________ Phone:
_______________

15. The
property ◻ does have ◻ does not
have one or more battery energy storage devices that are ◻ leased
◻ owned.

If the battery energy storage devices are leased, the seller
shall disclose the name and contact information of the leasing company.

Leasing company name: _________________
Phone: ____________

16. A portion or all of the property
◻
is
◻
is not . . . .

located in a no-fence district established pursuant to
A.R.S. title 3, chapter 11, article 8. It is the property owner's
responsibility to fence out unwanted livestock using a lawful fence as
prescribed by A.R.S. � 3-1426 if the property is not located in a no-fence
district.

16.

17.
The property ◻ does
◻ does not . . . . meet the minimum applicable county
zoning requirements of the applicable zoning designation.

17.

18.
The sale of the
property ◻ does ◻ does not . . .
meet the requirements of A.R.S. � 11-831 and � 32-2181 regarding
land divisions. If those requirements are not met, the property
owner may not be able to obtain a building permit. It is unlawful
pursuant to
A.R.S.

� 11-831,
subsection F and
A.R.S.

� 32-2181,
subsection D for a person or group of persons to attempt to avoid the
subdivision laws of this state by acting in concert to divide a parcel of land
into six or more lots or parcels. The county where the land division
occurred or the state real estate department may investigate and enforce the
prohibition against acting in concert to unlawfully divide a parcel of land
into six or more lots or parcels. The seller or property owner shall
disclose each of the deficiencies to the buyer.

Explain:
_____________________________________________________

______________________________________________________________

______________________________________________________________

18.

19.
The property ◻ is
◻ is not located in the clear zone of a military airport
or ancillary military facility, as defined in A.R.S. � 28-8461. (Maps
are available at the state real estate department's website.)

19.

20.
The property ◻ is
◻ is not located in the high noise or accident potential
zone of a military airport or ancillary military facility, as defined in A.R.S.
� 28-8461. (Maps are available at the state real estate
department's website.)

20.

21.
Notice: If the
property is located within the territory in the vicinity of a military airport
or ancillary military facility, the property is required to comply with sound
attenuation standards as prescribed by A.R.S. � 28-8482. (Maps
are available at the state real estate department's website.)

21.

22.
The property ◻ is
◻ is not located under military restricted
airspace. ◻ unknown. (Maps are
available at the state real estate department's website.)

22.

23.
The property ◻
is ◻ is not located in a military electronics range as defined in
A.R.S. � 9-500.28 and � 11-818. ◻ unknown. (Maps
are available at the state real estate department's website.)

23.

24.
The property ◻
is ◻ is not located within the influence area of a military
installation or range or Arizona national guard site as defined in
sections

A.R.S.
�
9-500.50
and
�
11-818.01 (Maps are
available at the state real estate department website.)

24.

25.
Use of the property ◻ is
◻ is not limited in any way relating to an encumbrance of
title due to a lis pendens, a court order or a state real estate department
order or a pending legal action. If the use of the property is
limited due to an encumbrance of title, the seller or property owner shall
disclose the limitations to the buyer.

Explain:
____________________________________________________

______________________________________________________________

______________________________________________________________

This
affidavit of disclosure supersedes any previously recorded affidavit of
disclosure.

I
certify under penalty of perjury that the information contained in this
affidavit is true, complete and correct according to my best belief and
knowledge.

Dated
this
(date) __
day of
(year)

by:

Seller's
name (print): ______________ Signature: _____________

Seller's
name (print): ______________ Signature: _____________

State
of Arizona� )

���������
)� ss.

County
of _________)

Subscribed and sworn before me
this
_ (date) __
day of
(year)
,
by ________________________________________.

__________________________

Notary
public

My commission expires:

(date)

Buyer(s)
hereby acknowledges receipt of a copy of this affidavit of disclosure this
(date)

day of
(year)

Buyer's name (print):
_______________ Signature: _____________

Buyer's name (print):
_______________ Signature: _____________

G. For the purposes of this section, seller and
subsequent seller do not include a trustee of a deed of trust who is selling
property by a trustee's sale pursuant to chapter 6.1 of this title or any
officer who is selling property by execution sale pursuant to title 12, chapter
9 and chapter 6 of this title. If the seller is a trustee of a subdivision
trust as defined in section 6-801, the disclosure affidavit required by
this section shall be provided by the beneficiary of the subdivision trust.
END_STATUTE

Sec.
9.
9. Section
45-108, Arizona Revised Statutes, is amended to read:

START_STATUTE
45-108.

Evaluation of subdivision water supply and small land
subdivision; definitions

A. In areas outside of active management areas
established pursuant to chapter 2, article 2 of this title, the developer of a
proposed subdivision
,
including dry lot subdivisions,
regardless of subdivided lot size,
prior to recordation

OR OF A PROPOSED SMALL LAND SUBDIVISION before recording
of the
plat, shall submit plans for the water supply for the subdivision
OR SMALL LAND SUBDIVISION
and demonstrate the adequacy of the
water supply to meet the needs projected by the developer to the
director. The director shall evaluate the plans and issue a report
on the plans.

B. The director shall evaluate the proposed source
of water for the subdivision
OR SMALL LAND SUBDIVISION
to
determine whether there is an adequate water supply for the subdivision
OR SMALL LAND SUBDIVISION
, and shall forward a copy of the
director's report to the state real estate commissioner and the city, town or
county responsible for platting the subdivision
OR SMALL LAND
SUBDIVISION
.

C. The director may designate cities, towns and
private water companies as having an adequate water supply by reporting that
designation to the water department of the city or town or private water
company and the state real estate commissioner.

D. As an alternative to designation under subsection
C of this section, the director may designate a city or town that has entered
into a contract with the United States secretary of the interior or a county
water authority established pursuant to chapter 13 of this title for permanent
supplies of Colorado river water for municipal and industrial use as having an
adequate water supply if all of the following apply:

1. The city or town has entered into a contract with
each private water company that serves water within the city or town to provide
Colorado river water to those private water companies.

2. The Colorado river water for which the city or
town has contracted is sufficient together with other water supplies available
to the city or town and the private water companies that serve water within
that city or town to provide an adequate supply of water for the city or town.

3. The director finds that new subdivisions
OR SMALL LAND SUBDIVISIONs
within the city or town will be
served primarily with Colorado river water by the city or town or one of the
private water companies that serve water within that city or town.

E. The director shall not require a developer to
submit plans for the water supply pursuant to subsection A of this section if
either:

1. Both of the following apply:

(a) The developer has obtained a written commitment
of water service from cities, towns or private water companies that have been
designated as having an adequate water supply.

(b) That city, town or private water company has
been designated as having an adequate water supply pursuant to subsection C of
this section.

2. All of the following apply:

(a) The city or town has been designated as having
an adequate water supply pursuant to subsection D of this section.

(b) The developer has obtained a written commitment
of water service from the city or town or a private water company that serves
water within that city or town.

(c) The developer has obtained the written
concurrence of the city or town that has been designated.

F. The director may revoke a designation made
pursuant to this section when the director finds that the water supply may
become inadequate.

G.
The state of Arizona

this state
and the director or department
shall
are
not
be
liable for any report,
designation or evaluation prepared in good faith pursuant to this section.

H. If the director receives written notice from the
board of supervisors of a county that it has adopted the provision authorized
by section 11-823, subsection A, the director shall give written notice
of the provision to the mayors of all cities and towns in the county. A city or
town that receives the notice shall comply with section 9-463.01,
subsections J, K, L, M and N.

I. For the purposes of this section
:
,

1.
"Adequate water
supply" means both of the following:

1.

(
a
)
Sufficient groundwater, surface water or effluent
of adequate quality will be continuously, legally and physically available to
satisfy the water needs of the proposed use for at least one hundred years.

2.

(
b
)
The financial capability has been demonstrated to
construct the water facilities necessary to make the supply of water available
for the proposed use, including a delivery system and any storage facilities or
treatment works. The director may accept evidence of the
construction assurances required by section 9-463.01, 11-823 or 32-2181
to satisfy this requirement.

2. "Small land subdivision"
has the same meaning prescribed in section 32-2101.

3. "Subdivision" has the
same meaning prescribed in section 32-2101.
END_STATUTE