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HB2543 - 572R - I Ver
REFERENCE TITLE:
land division; application; attestation
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 2543
Introduced by
Representative
Mathis
AN
ACT
amending sections 11-321, 11-831,
32-2101, 32-2163, 32-2181, 32-2185.09 and 33-422, 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. Section 11-321, Arizona Revised
Statutes, is amended to read:
START_STATUTE
11-321.
Building permits; issuance; state preemption; utilities;
distribution of copies; subsequent owner; limitation; definitions
A. Except in those cities and towns that have an
ordinance relating to the issuance of building permits, the board of
supervisors shall require a building permit for any construction of a building
or an addition to a building exceeding a cost of $1,000 within its
jurisdiction. The building permit shall be filed with the board of
supervisors or its designated agent.
B. The regulation of a utility provider's authority
to operate and serve customers is a matter of statewide concern. The
regulation of building permits as it relates to a building permit applicant's
ability to use a utility provider that is capable and authorized to provide
utility service is allowed solely in accordance with subsections C and D of
this section.� A building permit applicant's ability to use a utility provider
that is capable and authorized to provide utility service is not subject to
further regulation by a county.
C. A county may not deny a permit application based
on the utility provider proposed to provide utility service to the project.
D. A county issuing a building permit shall ensure
that all applicable permits and associated fees assessed on a building permit
applicant contain requirements and amounts that do not exceed the requirements
and amounts for use of other utility providers and do not have the effect of
restricting
a
the
permit
applicant's ability to use the services of a utility provider that is capable
and authorized to provide utility service.
E. The board of supervisors may not require an
applicant for a building permit to hold a transaction privilege tax license or
business license as a condition for issuing the building permit.
F. Where deemed of public convenience, the board of
supervisors shall allow the application for and the issuance of building
permits by mail.
G. One copy of the building permit required by the
terms of subsection A of this section shall be transmitted to the county
assessor and one copy shall be transmitted to the director of the department of
revenue. The permit copy provided to the assessor and the department
of revenue shall have the permit number, the issue date and the parcel number
for which the permit is issued. On the issuance of the certificate
of occupancy or the certificate of completion or on the expiration or
cancellation of the permit, the assessor and the department of revenue shall be
notified in writing or in electronic format of the permit number, parcel
number, issue date and completion date.
H. AT THE TIME OF APPLICATION FOR A
BUILDING PERMIT FOR NEW CONSTRUCTION OF A RESIDENTIAL SINGLE-FAMILY HOME,
AN APPLICANT Shall IDENTIFY ANY OWNERSHIP INTERESTS IN THE PROPERTY.
I. THE APPLICATION FOR A BUILDING
PERMIT FOR A SINGLE-FAMILY RESIDENTIAL HOME WITHIN A SUBDIVISION must
INCLUDE AN APPROVED PUBLIC REPORT PURSUANT TO SECTION 32-2183 IF THE PROPERTY
OWNER OWNS SIX OR MORE PROPERTIES WITHIN THE PARENT PARCEL OR IS A SUBDIVIDER
IF THE APPLICANT INTENDS TO CREATE A SUBDIVISION.
J. AN APPLICANT FOR A BUILDING PERMIT
IS EXEMPT FROM the REQUIREMENTS of SUBSECTION I of this section IF any of the
following applies:
1. The applicant is oTHERWISE EXEMPT
FROM PUBLIC REPORT REQUIREMENTS PURSUANT to SECTION 32-2181.01 or
32-2181.02. IF the applicant is CLAIMING AN EXEMPTION PURSUANT TO
SECTION 32-2181.01, THE APPLICANT shall PROVIDE EVIDENCE ISSUED BY THE state
REAL ESTATE COMMISSIONER.
2. THE PROPERTIES that are the
subject of the building permit application EXIST IN an ACTIVE MANAGEMENT AREA.�
If the properties that are the subject of the building permit application are
in an active management area, THE APPLICANT shall provide EVIDENCE OF
COMPLIANCE WITH THE ASSURED WATER supply REQUIREMENTS SPECIFIED IN section
32-2181, subsection c. This evidence may include COPIES OF THE
SUBDIVISION PRELIMINARY PLAT OR FINAL PLAT WHERE AN ASSURED WATER supply IS
INDICATED, AS APPROVED BY THE MUNICIPALITY WHERE THE PARCELS, LOTS OR
FRACTIONAL INTERESTS EXIST.
3. THE properties that are the
subject of the building permit THAT ARE LOCATED OUTSIDE OF AN ACTIVE MANAGEMENT
AREA.� If the properties that are the subject of the building permit
application are outside of AN active management area, THE APPLICANT shall
PROVIDE EVIDENCE OF COMPLIANCE WITH section 32-2181, subsection f.
H.
k.
If
a person has constructed a building or an addition to a building without
obtaining a building permit, a county shall not require a subsequent owner to
obtain a permit for the construction or addition done by the prior owner before
issuing a permit for a building addition
,
except that
this section does not prohibit
a county from
enforcing an
applicable ordinance or code provision that affects the public health or
safety.
I.
l.
This
section does not prohibit a county from recovering reasonable costs associated
with reviewing and issuing a building permit.
J.
m.
This
section does not affect any authority of a county to manage or operate a
county-owned utility.
K.
n.
For
the purposes of this section
:
,
1. "Active management area"
has the same meaning prescribed in section 45-402.
2. "Parent parcel" has the
same meaning prescribed in section 11-831.
3. "Subdivider" has the
same meaning prescribed in section 32-2101.
4. "Subdivision" has the
same meaning prescribed in section 32-2101.
5.
"Utility service"
means water, wastewater, natural gas, including propane gas, or electric
service provided to an end user.
END_STATUTE
Sec. 2. Section 11-831, Arizona Revised
Statutes, is amended to read:
START_STATUTE
11-831.
Review of land divisions; definitions
A. The board of supervisors of each county may adopt
ordinances and regulations pursuant to this section for staff review and
approval of land divisions of five or fewer lots, parcels or fractional
interests, any of which is ten acres or smaller in size.� The county may not
deny approval of any land division that meets the requirements of this
section.� If a review of the request is not completed within thirty days after
receiving the request, the land division is considered to be approved. At
its option, the board of supervisors may submit a ballot question to the voters
of the county to allow the voters to determine the application of subsections B
and C of this section to qualifying land divisions in that county.
B. An application to split a parcel of land shall be
approved if:
1. The lots, parcels or fractional interests each
meet the minimum applicable county zoning requirements of the applicable zoning
designation.
2. The applicant provides a standard preliminary
title report or other acceptable document that demonstrates legal access to the
lots, parcels or fractional interests.
3. The applicant provides a statement from a
licensed surveyor or engineer, or other evidence acceptable to the county,
stating whether each lot, parcel or fractional interest has physical access
that is traversable by a two-wheel drive passenger motor vehicle.
4. The applicant reserves the necessary and
appropriate utility easements to serve each lot, parcel or fractional interest
created by the land division.
5. The applicant signs an affidavit or similar
document under oath acknowledging the following:
(a) The applicant is aware that it is unlawful
pursuant to subsection
F
H
of
this section and section 32-2181, subsection D for a person or group of
persons to attempt to avoid these sections or the subdivision laws of this
state by acting in concert to divide a parcel of land into six or more lots or
parcels.
(b) The applicant is aware that 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.
(
c
) The
applicant is aware that one or more land divisions that result in six or more
parcels from the same parent parcel may be subject to section 32-2181.
C. An application to split a parcel of land that
does not comply with one or more of the items listed in subsection B of this
section shall still be approved if the applicant provides an acknowledgment
that is signed by the applicant and that confirms that a building or use permit
will not be issued by the county until the lot, parcel or fractional interest
has met the requirements of subsection B of this section.� The county may grant
a variance from one or more of the items listed in subsection B of this
section.
D. Any approval of a land division under this
section may:
1. Include the minimum statutory requirements for
legal and physical on-site access that must be met as a condition to issuing a
building or use permit for the lots, parcels or fractional interests.
2. Identify topographic, hydrologic or other site
constraints, requirements or limitations that must be addressed as conditions
to the eventual issuance of a building or use permit. These
constraints, requirements or limitations may be as noted by the applicant or
through county staff review, but there shall be no requirement for independent
studies.
E. If the requirements of subsections A through D of
this section do not apply, a county may adopt ordinances and regulations
pursuant to this chapter for staff review of land divisions of five or fewer lots,
parcels or fractional interests but only to determine compliance with minimum
applicable county zoning requirements and legal access and may grant waivers
from the county zoning and legal access requirements.� The county may not deny
approval of any land division that meets the requirements of this section or if
the deficiencies are noticed in the deed.� A county may not require a public
hearing on a request to divide five or fewer lots, parcels or fractional
interests.� If a review of the request is not completed within thirty days
after receipt of the request, the land division shall be deemed
approved. If legal access is not available, the legal access does
not allow access by emergency vehicles or the county zoning requirements are
not met, the access or zoning deficiencies shall be noticed in the
deed. If a county by ordinance requires a legal access of more than
twenty-four feet roadway width, the county is responsible for the
improvement and maintenance of the improvement. If the legal access does
not allow access to the lots, parcels or fractional interests by emergency
vehicles, neither the county nor its agents or employees are liable for damages
resulting from the failure of emergency vehicles to reach the lot, parcel or
fractional interest.
F. If applying for a land division,
an applicant shall disclose any ownership interests in the property that is the
subject of the land division or minor lot split application and if the property
that is the subject of the land division application has been divided within
the last ten years, the ownership interests of the parent parcel from which the
subject properties were previously divided.
G. Any
application for a land division or minor lot split shall include the following
attestation language:
State law requires a subdivider as defined in
section 32-2101, Arizona revised statutes, to obtain a public report pursuant
to section 32-2183, Arizona revised statutes, before the sale or lease of the
subdivided parcels, lots or fractional interests. By submitting an
application for a land division or minor lot split, the applicant and any
ownership interest in the land that is the subject of the land division or
minor lot split application attest to their understanding of the public report
requirements if intending to sell or lease the subdivided parcels, lots or
fractional interests and further attest to their intent to comply with the
subdivision laws of this state, as applicable.
If a public report is required pursuant to
section 11-321 or 32-2183, Arizona Revised Statutes, and is not
obtained, the county where the property is located may deny building permits to
the applicant.� The state real estate department may enforce the public report
requirement, impose a civil penalty pursuant to section 32-2185.09, Arizona
Revised Statutes, record with the county recorder in the county where the
property is located notice of the violation of section 32-2181, Arizona
Revised Statutes, and issue a cease and desist order against the subdivider to
prevent conveyance of the property that is the subject of the public report
requirement until the subdivider complies with the public report requirement.
The applicant is aware that it is unlawful 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,
parcels or fractional interests or to sell or lease six or more lots, parcels
or fractional interests by using a series of owners or conveyances or by any
other method that results in the division of land into a subdivision or
subdivided land.
If the property that is the subject of this
land division or minor lot split application is approved for a land division or
minor lot split, the applicant�
□ does
□� does not intend to sell or lease the property as a subdivider
as defined in section 32-2101, Arizona Revised Statutes.
If at the time of an application for a land
division or minor lot split, an applicant indicates that it is not the
applicant's intention to create a subdivision or act as a subdivider and the
applicant's intention changes, the applicant understands the need to obtain a
public report pursuant to section 32-2183, Arizona Revised Statutes, before the
sale or lease of the property that is the subject of the land division or minor
lot split application.
F.
h.
It
is unlawful for a person or group of persons acting in concert to attempt to
avoid this section or the subdivision laws of this state by acting in concert
to divide a parcel of land into six or more lots or sell or lease six or more
lots by using a series of owners or conveyances.� Either the county where the
division occurred or the state real estate department pursuant to title 32,
chapter 20, but not both, may enforce this prohibition.� A familial
relationship alone is not sufficient to constitute unlawful acting in concert.
G.
I.
For
any subdivision that consists of ten or fewer lots, tracts or parcels, each of
which is of a size as prescribed by the board of supervisors, the board of supervisors
of each county may waive the requirement to prepare, submit and receive
approval of a preliminary plat as a condition precedent to submitting a final
plat and may waive or reduce infrastructure standards or requirements except
for improved dust-controlled access and minimum drainage improvements.
H.
J.
For
the purposes of this section:
1. "Legal access" means a public right of
vehicular ingress and egress between the lots, parcels or fractional interests
being created.
2. "Minimum applicable county zoning
requirements" means the minimum acreage and dimensions of the resulting
lot, parcel or fractional interest as required by the county's zoning
ordinance.
3. "Minor lot split" means
improved or unimproved land that is divided or proposed to be divided into five
or fewer lots, parcels or fractional interests for immediate or future sale or
lease.
4. "Parent parcel" means a
parcel that is less than one hundred sixty acres or any subsequent land
division of ten or more acres.
3.
5.
"Utility
easement" means an easement of eight feet in width dedicated to the
general public to install, maintain and access sewer, electric, gas and water
utilities.
END_STATUTE
Sec. 3. 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"
:
(
a
)
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.
(
b
)
Does not include lots, parcels or fractional interests created from a
land division of the same parent parcel, unless the lots, parcels or fractional
interests are separated due to an interest that has been deeded to the
governing body of the municipality or a homeowner's association.
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
COUNTY, STATE OR FEDERAL
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. "Parent parcel" means a
parcel that is less than one hundred sixty acres or any subsequent land
division of ten or more acres.
43.
44.
"Partnership
licensee" means a partnership with a managing general partner who is
licensed as the designated broker pursuant to section 32-2125.
44.
45.
"Permanent
access", as required under article 4 of this chapter, means permanent
access from the subdivision to any federal, state or county highway.
45.
46.
"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.
47.
"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.
48.
"Person"
means any individual, corporation, partnership or company and any other form of
multiple organization for carrying on business, foreign or domestic.
48.
49.
"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.
50.
"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.
51.
"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.
52.
"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.
53.
"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.
54.
"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.
55.
"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.
56.
"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.
57.
"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.
58.
"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.
59.
"Subdivider":
(a) Means any person who offers for sale or lease
six or more lots, parcels or fractional interests in a subdivision or who
possesses any ownership in or
causes land to be subdivided into
a subdivision for the subdivider 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.
60.
"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 six or more lots, parcels or fractional interests.
(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.
61.
"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.
62.
"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.
63.
"Unimproved
lot or parcel" means a lot or parcel of a subdivision that is not an
improved lot or parcel.
63.
64.
"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. 4. Section 32-2163, Arizona Revised Statutes, is amended to read:
START_STATUTE
32-2163.
Unlawful acts; out-of-state broker; cooperation
agreement
A. It is unlawful for any licensed broker in this
state to employ or compensate, directly or indirectly, any person for
performing any of the acts within the scope of this chapter if the person is
not also a licensed broker in this state, or a salesperson licensed under the
broker employing or compensating the salesperson, except that a licensed broker
in this state may pay compensation to and receive compensation from a broker
who is lawfully operating in another state.
B. Notwithstanding that pursuant to subsection A of
this section a licensed broker in this state may pay to and receive
compensation from an out-of-state broker, this authority does not
allow an out-of-state broker to conduct activity in this state that
would otherwise require a broker's license issued by the department.
C. A licensed broker in this state may cooperate
with an out-of-state broker who would otherwise require licensure
in this state if:
1. The licensed broker and the out-of-state
broker enter into a written cooperation agreement before the out-of-state
broker conducts any activity otherwise requiring a broker's license pursuant to
this chapter. The cooperation agreement shall include the following:
(a) A list of the real estate activities to be
conducted by the out-of-state broker.
(b) A statement that the out-of-state
broker agrees to fully comply with the laws of this state and submit to the
regulatory jurisdiction of the department for activities subject to real estate
broker licensure pursuant to this chapter.
(c) A statement that the licensed broker in this
state understands and accepts responsibility for the acts of the out-of-state
broker.
2. All negotiations in this state or with people who
own property in this state are conducted through the licensed broker in this
state.
3. The licensed broker in this state assumes all
responsibility for the acts of the out-of-state broker.
4. All principal funds handled by either the
licensed broker in this state or the out-of-state broker are
subject to the deposit and handling requirements of section 32-2151.
D. The offering of real estate brokerage services
specified by section 32-2101, paragraph
51
52
for compensation or any other thing of value pertaining to
real property located in this state through an internet website constitutes
activity that requires a broker's license issued by the department.
E. This section does not allow an out-of-state
broker who is not licensed in this state to list, market or advertise in this
state real property located in this state for sale, lease or exchange.
F. Signs shall not be placed on real property in
this state by an out-of-state broker.� An out-of-state
broker shall not use a cooperation agreement as authority to sell, lease, rent,
exchange or attempt to sell, lease, rent or exchange real property to a
resident of this state.
END_STATUTE
Sec. 5. Section 32-2181, Arizona Revised
Statutes, is amended to read:
START_STATUTE
32-2181.
Notice to commissioner of intention to subdivide lands; unlawful
acting in concert; exceptions; deed restrictions; definition
A. Before offering
subdivided lands for sale or lease, the subdivider shall notify the
commissioner in writing of the subdivider's intention.� The notice shall
contain:
1. The name and address of
the owner. If the holder of any ownership interest in the land is
other than an individual, such as a corporation, partnership or trust,
the notice shall contain
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 section,
"principal" means any person or entity having a ten
per
cent
percent
or more financial interest or, if the
legal entity is a trust, each beneficiary of the trust holding a ten
per cent
percent
or more beneficial
interest.
2. The name and address of
the subdivider.
3. The legal description
and area of the land.
4. A true statement of the
condition of the title to the land, including all encumbrances on the land, and
a statement of the provisions agreed to by the holder of any blanket
encumbrance enabling a purchaser to acquire title to a lot or parcel free of
the lien of the blanket encumbrance on completion of all payments and
performance of all of the terms and provisions required to be made or performed
by the purchaser under the real estate sales contract by which the purchaser
has acquired the lot or parcel. The subdivider shall file copies of documents
acceptable to the department containing these provisions with the commissioner
before the sale of any subdivision lot or parcel subject to a blanket
encumbrance.
5. The terms and
conditions on which it is intended to dispose of the land, together with copies
of any real estate sales contract, conveyance, lease, assignment or other
instrument intended to be used, and any other information the owner or the
owner's agent or subdivider desires to present.
6. A map of the
subdivision that has been filed in the office of the county recorder in the
county in which the subdivision is located.
7. A brief but
comprehensive statement describing the land on and the locality in which the
subdivision is located.
8. A statement of the
provisions that have been made for permanent access and provisions, if any, for
health department approved sewage and solid waste collection and disposal and
public utilities in the proposed subdivision, including water, electricity, gas
and telephone facilities.
9. A statement as to the
location of the nearest public common and high schools available for the
attendance of
school age
school-age
pupils
residing on the subdivision property.
10. A statement of the use
or uses for which the proposed subdivision will be offered.
11. A statement of the
provisions, if any, limiting the use or occupancy of the parcels in the
subdivision, together with copies of any restrictive covenants affecting all or
part of the subdivision.
12. The name and business
address of the principal broker selling or leasing, within this state, lots or
parcels in the subdivision.
13. A true statement of
the approximate amount of indebtedness that is a lien on the subdivision or any
part of the subdivision and that was incurred to pay for the construction of
any on-site or off-site improvement, or any community or
recreational facility.
14. A true statement or
reasonable estimate, if applicable, of the amount of any indebtedness that has
been or is proposed to be incurred by an existing or proposed special district,
entity, taxing area or assessment district, within the boundaries of which the
subdivision, or any part of the subdivision, is located, and that is to pay for
the construction or installation of any improvement or to furnish community or
recreational facilities to the subdivision, and which amounts are to be obtained
by ad valorem tax or assessment, or by a special assessment or tax
upon
on
the subdivision or any part of the
subdivision.
15. A true statement as to
the approximate amount of annual taxes, special assessments or fees to be paid
by the buyer for the proposed annual maintenance of common facilities in the
subdivision.
16. A statement of the
provisions for easements for permanent access for irrigation water
,
where
if
applicable.
17. A true statement of
assurances for the completion of off-site improvements, such as roads,
utilities, community or recreational facilities and other improvements to be
included in the offering or represented as being in the offering, and approval
of the offering by the political subdivision with authority. This
statement shall include a trust agreement or any other evidence of assurances
for delivery of the improvements and a statement of the provisions, if any, for
the continued maintenance of the improvements.
18. A true statement of
the nature of any improvements to be installed by the subdivider, the estimated
schedule for completion and the estimated costs related to the improvements
that will be borne by purchasers of lots in the subdivision.
19. A true statement of
the availability of sewage disposal facilities and other public utilities,
including water, electricity, gas and telephone facilities in the subdivision,
the estimated schedule for their installation, and the estimated costs related
to the facilities and utilities that will be borne by purchasers of lots in the
subdivision.
20. A true statement as to
whether all or any portion of the subdivision is located in an open range or
area in which livestock may roam at large under the laws of this state and what
provisions, if any, have been made for
the
fencing
of
the subdivision to preclude livestock from roaming within the
subdivided lands.
21. If the subdivider is a
subsidiary corporation, a true statement identifying the parent corporation and
any of the following in which the parent or any of its subsidiaries is or has
been involved within the past five years:
(a) Any subdivision in this state.
(b) Any subdivision, wherever located, for which
registration is required pursuant to the federal interstate land sales full
disclosure act.
(c) Any subdivision, wherever located, for which
registration would have been required pursuant to the federal interstate land
sales full disclosure act but for the exemption for subdivisions whose lots are
all twenty acres or more in size.
22. A true statement identifying all other
subdivisions, designated in paragraph 21 of this subsection, in which any of
the following is or, within the last five years, has been directly or
indirectly involved:
(a) The holder of any
ownership interest in the land.
(b) The subdivider.
(c) Any principal or
officer in the holder or subdivider.
23. A true statement as to
whether all or any portion of the subdivision is located in territory in the
vicinity of a military airport or ancillary military facility as defined in
section 28-8461, in territory in the vicinity of a public airport as
defined in section 28-8486, on or after July 1, 2001, in a high noise or
accident potential zone as defined in section 28-8461 or on or after July
1 of the year in which the subdivision becomes located in a high noise or
accident potential zone. The statement required pursuant to this
paragraph does not require the amendment or refiling of any notice filed before
July 1, 2001 or before July 1 of the year in which the subdivision becomes
located in a high noise or accident potential zone.
24. If the subdivision is
a conversion from multifamily rental to condominiums as defined in section 33-1202,
a true statement as to the following:
(a) That the property is a conversion from
multifamily rental to condominiums.
(b) The date original construction was completed.
25. Other information and documents and
certifications as the commissioner may reasonably require
,
provided
except
that the subdivider
shall not be required to disclose any critical infrastructure information as
defined in section 41-1801 or any information contained in a report
issued pursuant to section 41-4273.
B. The commissioner, on
application, may grant a subdivider of lots or parcels within a subdivision for
which a public report was previously issued by the commissioner an exemption
from all or part of the notification requirements of subsection A of this
section.� The subdivider shall file a statement with the commissioner
indicating the change of ownership in the lots or parcels together with any
material changes occurring subsequent to the original approval of the
subdivision within which the lots or parcels are located. The
statement shall further refer to the original approval by the commissioner.
C. If the subdivision is
within an active management area, as defined in section 45-402, the
subdivider shall accompany the notice with a certificate of assured water
supply issued by the director of water resources along with proof that all
applicable fees have been paid pursuant to sections 48-3772 and 48-3774.01,
unless the subdivider has obtained a written commitment of water service for
the subdivision from a city, town or private water company designated as having
an assured water supply by the director of water resources pursuant to section
45-576 or is exempt from the requirement pursuant to section 45-576.�
If the subdivider has submitted a certificate of assured water supply to a
city, town or county
prior to
before
approval of the plat by the city, town or county and this has been noted on the
face of the plat, the submission constitutes compliance with this subsection if
the subdivider provides proof to the commissioner that all applicable fees have
been paid pursuant to sections 48-3772 and 48-3774.01.
D. It is unlawful for a
person or group of persons acting in concert to attempt to avoid this article
by acting in concert to divide a parcel of land or sell subdivision lots by
using a series of owners or conveyances or by any other method that ultimately
results in the division of the lands into a subdivision or the sale of
subdivided land.� The plan or offering is subject to this
article. Unlawful acting in concert pursuant to this subsection with
respect to the sale or lease of subdivision lots requires proof that the real
estate licensee or other licensed professional knew or with the exercise of
reasonable diligence should have known that property
which
that
the licensee listed or for which the licensee acted
in any capacity as agent was subdivided land subject to this article.� A
familial relationship alone is not sufficient to constitute unlawful acting in
concert.
E. A creation of six or
more lots, parcels or fractional interests in improved or unimproved land, lots
or parcels of any size is subject to this article except when:
1. Each of the lots,
parcels or fractional interests represents, on a partition basis, thirty-six
acres or more in area of land located in this state, including to the
centerline of dedicated roads or easements, if any, contiguous to the land in
which the interests are held.
2. The lots, parcels or fractional
interests are the result of a foreclosure sale, the exercise by a trustee under
a deed of trust of a power of sale or the grant of a deed in lieu of
foreclosure. This paragraph does not allow circumvention of the
requirements of this article.
3. The lots, parcels or
fractional interests are created by a valid order or decree of a court pursuant
to and through compliance with title 12, chapter 8, article 7 or by operation
of law. This paragraph does not allow circumvention of the
requirements of this article.
4. The lots, parcels or
fractional interests consist of interests in any oil, gas or mineral lease,
permit, claim or right therein and such interests are regulated as securities
by the United States or by this state.
5. The lots, parcels or
fractional interests are registered as securities under the laws of the United
States or the laws of this state or are exempt transactions under section 44-1844,
44-1845 or 44-1846.
6. The commissioner by
special order exempts offerings or dispositions of any lots, parcels or
fractional interests from compliance with this article on written petition and
on a showing satisfactory to the commissioner that compliance is not essential
to the public interest or for the protection of buyers.
Lots, parcels or fractional interests in which compliance is not
essential to the public interest or for the protection of buyers include lots,
parcels or fractional interests that have been included with a previous public
report that has been approved within the last ten years and in which the
applicant for an exemption attests that there are no material changes altering
the facts of the public report.
7. A sale or lease of a
lot, parcel or fractional interest occurs ten or more years after the sale or
lease of another lot, parcel or fractional interest and the other lot, parcel
or fractional interest is not subject to this article and is treated as an
independent parcel unless,
upon
on
investigation
by the commissioner, there is evidence of intent to subdivide.
F. In
areas outside of active management areas established pursuant to title 45,
chapter 2, article 2:
1. If
the subdivision is located in a county that has adopted the provision
authorized by section 11-823, subsection A, or in a city or town that has
enacted an ordinance pursuant to section 9-463.01, subsection O, the
subdivider shall accompany the notice with a report issued by the director of
water resources pursuant to section 45-108 stating that the subdivision
has an adequate water supply, unless one of the following applies:
(a) The subdivider
submitted the report to a city, town or county before approval of the plat by
the city, town or county and this has been noted on the face of the plat.
(b) The subdivider has
obtained a written commitment of water service for the subdivision from a city,
town or private water company designated as having an adequate water supply by
the director of water resources pursuant to section 45-108.
(c) The plat was approved
pursuant to an exemption authorized by section 9-463.01, subsection K,
pursuant to an exemption authorized by section 11-823, subsection B,
paragraph 1, pursuant to an exemption granted by the director of water
resources under section 45-108.02 and the exemption has not expired or
pursuant to an exemption granted by the director under section 45-108.03.�
If the plat was approved pursuant to an authorized exemption, the state real
estate commissioner shall require that all promotional material and contracts
for the sale of lots in the subdivision adequately display the following:
(i) The director of water
resources' report or the developer's brief summary of the report as approved by
the commissioner
on the proposed water supply for the
subdivision.
(ii) A statement
describing the exemption under which the subdivision was approved, including
the specific conditions of the exemption that were met.� If the plat was
approved by the legislative body of a city or town pursuant to an exemption authorized
by section 9-463.01, subsection K or by the board of supervisors of a
county pursuant to an exemption authorized by section 11-823, subsection
B, paragraph 1, the
subdivider shall record the document
required by section 33-406.
(d) The subdivision
received final plat approval from the city, town or county before the
requirement for an adequate water supply became effective in the city, town or
county, and there have been no material changes to the plat since the final
plat approval. If changes were made to the plat after the final plat
approval, the director of water resources shall determine whether the changes
are material pursuant to the rules adopted by the director to implement section
45-108.� If this subdivision applies, the state real estate commissioner
shall require that all promotional materials and contracts for the sale of lots
in the subdivision adequately display the director of water resources' report
or the developer's brief summary of the report as approved by the commissioner
on the proposed water supply for the subdivision.
2. If the subdivision is
not located in a county that has adopted the provision authorized by section 11-823,
subsection A or in a city or town that has enacted an ordinance pursuant to
section 9-463.01, subsection O, and if the director of water resources,
pursuant to section 45-108, reports an inadequate on-site supply of
water to meet the needs projected by the developer or if no water is available,
the state real estate commissioner shall require that all promotional material
and contracts for the sale of lots in subdivisions approved by the commissioner
adequately display the director of water resources' report or the developer's
brief summary of the report as approved by the commissioner on the proposed
water supply for the subdivision.
G. The commissioner may
require the subdivider to supplement the notice of intention to subdivide lands
and may require the filing of periodic reports to update the information
contained in the original notice of intention to subdivide lands.
H. The commissioner may
authorize the subdivider to file as the notice of intention to subdivide lands,
in lieu of some or all of the requirements of subsection A of this section, a
copy of the statement of record filed with respect to the subdivision pursuant
to the federal interstate land sales full disclosure act if the statement
complies with the requirements of the act and the regulations pertinent to the
act.
I. Neither a real estate
sales contract, conveyance, lease, assignment or other instrument to transfer
any interest in subdivided land nor any covenant or restriction affecting real
property shall contain any provision limiting the right of any party to appear
or testify in support of or opposition to zoning changes, building permits or
any other official acts affecting real property before a governmental body or
official considering zoning changes, building permits or any other official
acts affecting real property, whether the property is located within or outside
of the boundaries of the subdivision. All contractual provisions
that conflict with this subsection are declared to be contrary to public
policy.
Nothing contained in
This subsection
shall
does not
prohibit private
restrictions on the use of any real property.
J. Before offering
subdivided lands for lease or sale, the subdivider who makes any promises
through any form of advertising media that the subdivided lands will be
exclusively a retirement community or one that is limited to the residency of
adults or senior citizens shall include the promises in the deed restrictions
affecting any interest in real property within the subdivided lands.
K. Except as otherwise
provided in this section, a subdivider
shall
is
not
be
required to disclose items that
are over one mile from the subdivision boundaries.� The existence of foreign
nations or tribal lands shall also be disclosed if located within the
one mile
one-mile
radius of the
subdivision boundaries.
END_STATUTE
Sec. 6. 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
LOT in which AN INFRACTION OCCURS
.
B. A proceeding for imposition of a civil penalty or
for suspension or revocation of 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 a civil penalty or suspension or revocation of
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.
END_STATUTE
Sec. 7. 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 � 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. The
property� ◻ does� ◻ does not . . .
. meet the minimum applicable county zoning requirements of the applicable
zoning designation.
17. 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
H
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. 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. 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. 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. The
property ◻ is ◻ is not located
under military restricted airspace. ◻ unknown. (Maps are
available at the state real estate department's website.)
22. 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. 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. 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