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HB4086 • 2026

escrow agents; notice; property sale

HB4086 - escrow agents; notice; property sale

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
2026-02-11
Official status
House second read
Effective date
Not listed

Plain English Breakdown

The bill summary and official text do not provide specific details on how the early alert system will be funded or operated.

Escrow Agents; Notice Requirements

This bill requires escrow agents to notify the Arizona Department of Real Estate (ADRE) about property sales or transfers, and it directs ADRE to create an early alert system for real estate owners.

What This Bill Does

  • Requires escrow agents to send information about property sales or transfers to the ADRE when they receive orders to transfer ownership or five days before recording a title.
  • Directs the ADRE Commissioner to establish and manage an early alert system that informs individuals of pending real estate transactions.
  • Specifies that the early alert system must provide prompt notice through email, text message, or similar means.
  • Allows people to choose whether they want to be part of the early alert system.
  • Exempts the early alert system from public records laws.

Who It Names or Affects

  • Escrow agents who handle property sales and transfers.
  • Individuals owning real estate in Arizona.
  • The Arizona Department of Real Estate (ADRE).

Terms To Know

Escrow Agent
A person or company that holds money or documents during a property sale to ensure all conditions are met before the transfer of ownership.
Arizona Department of Real Estate (ADRE)
The state agency responsible for regulating real estate professionals and transactions in Arizona.

Limits and Unknowns

  • Does not specify how escrow agents will be penalized if they do not comply with the reporting requirements.
  • Does not provide details on how the early alert system will operate or who will fund it.
  • The bill does not address what happens to existing property sales and transfers before the new rules take effect.

Bill History

  1. 2026-02-11 House

    House second read

  2. 2026-02-10 House

    House Rules: None

  3. 2026-02-10 House

    House Commerce: DP

  4. 2026-02-10 House

    House first read

Official Summary Text

HB4086 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House:
COM DP 8-2-1-0

HB4086
:
escrow agents; notice; property sale

Sponsor:
Representative Griffin, LD 19

Caucus
& COW

Overview

Provides
reporting requirements for escrow agents relating to transference of real
property and instructs
the Arizona
Department of Real Estate
(ADRE) to create an early alert system that
notifies persons of pending sales or transfers of real estate ownership.

History

The Department of Insurance and Financial Institutions
licenses, monitors and regulates the safety and soundness of regulated entities,
including the examination of escrow agents and their trusts (
A.R.S � 6-122
).
Simultaneously, the ADRE governs the licensing and enforcement of real estate
brokers and salespersons under the authority of the real estate commissioner (A.R.S
��
32-2102
,
32-2107
).

County recorders are required to provide a system for
notifying a person or entity when any document is recorded in which the person
or entity is mentioned. The system is voluntary and notice must be provided
promptly through email, text message or other similar means (
A.R.S � 11-467
). In
Maricopa County, the
Maricopa County
Title Alert
system alerts entities after a document is
officially recorded under an entities' name.

Provisions

1.

Mandates an
escrow agent to transmit specific property, owner and escrow company information
to the ADRE, when either:

a.

receiving
orders to transfer real property ownership through sale or inheritance and creates
preliminary title reports; or

b.

five days
before recording a title that is being handled as a courtesy, transferring
ownership or placing a lien on real property. (Sec. 1)

2.

Directs ADRE's
Commissioner to create and administer an early alert system that, upon receiving
notice from an escrow agent or company, notifies individuals of pending sales
or transfers of real estate ownership. (Sec. 2)

3.

Requires the
early alert system to provide prompt notice by email, text message or other
similar means of communication. (Sec. 2)

4.

Specifies
participation in the early alert system is voluntary and must allow individuals
to opt in to the system. (Sec. 2)

5.

Exempts the
early alert system from public records statutes. (Sec. 2)

6.

Makes
technical changes. (Sec. 2)

7.

8.

9.

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FOOTER ---------

10.

Initials PB���������������������� HB
4086

11.

2/18/2026� Page 0 Caucus
& COW

12.

13.

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FOOTER ---------

Current Bill Text

Read the full stored bill text
HB4086 - 572R - I Ver

REFERENCE TITLE:
escrow agents; notice; property sale

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 4086

Introduced by

Representative
Griffin

AN
ACT

amending title 6, chapter 7, article 3,
arizona revised statutes, by adding section 6-841.04; amending section 32-2107,
arizona revised statutes; relating to real estate.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Title 6, chapter 7, article 3,
Arizona Revised Statutes, is amended by adding section 6-841.04, to read:

START_STATUTE
6-841.04.

Notice of escrow services requested; notice; methods of providing
notice

When an escrow agent either receives an order
for escrow services to transfer ownership of real property through sale or inheritance
and creates a preliminary title report or, five days before recording a title
if recording the title is being handled by the escrow agent as a courtesy,
transfers ownership or places a lien on the real property, the escrow agent
shall transmit all of the following to the state real estate department on a
form as prescribed by the state real estate department:

1. The names of all owners.

2. The assessor parcel number.

3. The mailing address of the actual,
physical location of the real property, if one exists.

4. The name of the escrow company.

5. The email address and phone number
of a contact at the escrow company for the property that is being sold.
END_STATUTE

Sec. 2. Section 32-2107, Arizona Revised
Statutes, is amended to read:

START_STATUTE
32-2107.

Powers and duties of commissioner; compensation; administration
of department; seal; real estate department education; revolving fund

A. The commissioner shall have charge of the
department with power to administer it in accordance with
the
provisions of
and to carry out the purposes of this chapter.� The
commissioner shall adopt a seal
which shall bear

that bears
the words "real estate commissioner, state of
Arizona",
which shall be

and that is
used

for the authentication of

to authenticate
proceedings
of the department and the official documents thereof. The
commissioner's principal office shall be at the state capitol. The
commissioner may have branch offices the commissioner deems necessary in other
cities.

B. The commissioner shall receive compensation as
determined pursuant to section 38-611.

C. The commissioner shall prepare and cause to be
produced and circulated among the licensees and the general public educational
matter the commissioner deems helpful and proper
for the guidance
and assistance of

to guide and assist
both
licensees and the public. The commissioner may assess a fee for each
of these educational products that does not exceed a level reasonably estimated
to be sufficient to recover production and distribution costs.

D. In cooperation with industry educators, content
experts and other professionals, the commissioner may develop, sponsor or hold
educational seminars and workshops for the benefit of licensees.

E.
A

The
real
estate department education revolving fund is established consisting of monies
received from the sale of educational matter under subsection C of this section
and grants of monies to be used in the production of educational
products. Monies in the fund shall be used
for the
printing of

to print
a compilation of real estate
laws and rules and other educational publications and for other educational
efforts the commissioner deems helpful and proper
for the
guidance and assistance of

to guide and assist
licensees
and the public, including sponsoring and holding educational seminars or
workshops for educators and other licensees. The
state
real estate
department shall establish the revolving fund as a separate
account. The
state real estate
department
shall make a full accounting of its use to the department of administration
annually or as required by the department of
administration. Expenditures from the fund and reimbursement to the
fund shall be as prescribed by rules of the department of
administration. Monies received in the real estate department
education revolving fund are not subject to reversion, except that all monies
in the fund
in excess of twenty-five thousand dollars

that exceed $25,000
at the end of the fiscal year revert
to the state general fund.

F. The commissioner shall create and
administer an early alert system that notifies a person of a pending sale or
transfer of ownership of real estate when the early alert system receives
notice from an escrow agent or an escrow company.� The early alert system shall
provide prompt notice by email, text message or other similar means of
communication.� Participation in the early alert system is voluntary and shall
allow individuals to opt in to the system.� The early alert system is not a public
record and is exempt from title 39, chapter 1.

F.

G.
The
commissioner shall adopt rules, in accord with this chapter, as the
commissioner deems necessary to carry out this chapter.

G.

H.
The
commissioner may approve standardized legal forms for use in the sale or lease
of real estate
for the purpose of recognizing

to recognize
compliance of the forms with this chapter and the
rules adopted pursuant to this chapter.
END_STATUTE