Arizona 2025 Regular Session

Arizona House Bill HB2574 Compare Versions

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1-House Engrossed small land subdivision; requirements State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HOUSE BILL 2574 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)
1+REFERENCE TITLE: small land subdivision; requirements State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HB 2574 Introduced by Representatives Griffin: Lopez AN ACT amending title 11, chapter 6, article 4, arizona revised statutes, by adding section 11-834; amending title 32, chapter 20, article 4, arizona revised statutes, by adding section 32-3183.07; relating to land division. (TEXT OF BILL BEGINS ON NEXT PAGE)
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59-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.
68+amending title 11, chapter 6, article 4, arizona revised statutes, by adding section 11-834; amending title 32, chapter 20, article 4, arizona revised statutes, by adding section 32-3183.07; relating to land division.
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69- Be it enacted by the Legislature of the State of Arizona: Section 1. Title 11, chapter 6, article 4, Arizona Revised Statutes, is amended by adding section 11-834, to read: START_STATUTE11-834. 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 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. Section 32-2101, Arizona Revised Statutes, is amended to read: START_STATUTE32-2101. 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. "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. "Small land subdivision" means 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 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. 60. "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. 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. Section 32-2108.01, Arizona Revised Statutes, is amended to read: START_STATUTE32-2108.01. 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. Section 32-2183.03, Arizona Revised Statutes, is amended to read: START_STATUTE32-2183.03. 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 may 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 may not be brought by a purchaser more than three years after the sale or lease to such purchaser. END_STATUTE Sec. 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_STATUTE32-2183.07. 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 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 section, "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 TO THE LANDS, AS DEFINED IN A.R.S. 11-831. 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. 300f). (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. (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_STATUTE32-2183.08. 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. Section 32-2185.06, Arizona Revised Statutes, is amended to read: START_STATUTE32-2185.06. 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. Section 32-2185.09, Arizona Revised Statutes, is amended to read: START_STATUTE32-2185.09. 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. Section 33-422, Arizona Revised Statutes, is amended to read: START_STATUTE33-422. 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. Section 45-108, Arizona Revised Statutes, is amended to read: START_STATUTE45-108. 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 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 and the director or department shall 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
78+ Be it enacted by the Legislature of the State of Arizona: Section 1. Title 11, chapter 6, article 4, Arizona Revised Statutes, is amended by adding section 11-834, to read: START_STATUTE11-834. 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, 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. An applicant for a small land subdivision shall ensure the small land subdivision will provide for legal access to each lot or parcel that is part of the small land subdivision. END_STATUTE Sec. 2. Title 32, chapter 20, article 4, Arizona Revised Statutes, is amended by adding section 32-3183.07, to read: START_STATUTE32-3183.07. Small land subdivision public report; requirements A. On examination of a proposed small land subdivision, the commissioner, UNLESS there are grounds for denial, shall issue a small land subdivision public report allowing the sale or lease in this state of the lots or parcels that are the SUBJECT of the small land subdivision prescribed in section 11-834. b. The small land subdivision report shall contain the following: 1. A survey of the land that is the subject of the proposed small land subdivision. 2. A road maintenance agreement that indicates that The roads included in the small land subdivision need to be wide enough to accommodate a first responder vehicle but do not need to be improved to meet the standards of a highway. 3. Information regarding access to water by the lots or parcels that are the subject of the proposed small land subdivision. Water information may include whether the lots or parcels have access to any of the following: (a) A private water utility. (b) A water district. (c) Individual private wells. (d) Shared wells. (e) Water hauling services. 4. Information regarding easements for ingress and egress from the proposed small land subdivision. 5. Information regarding the installation of electrical lines and information identifying the provider of electric utility service to the lots or parcels that are the subject of the small land subdivision. 6. Information regarding the presence, availability, installation or access to other utilities, including gas, cable, telephone or sewer. END_STATUTE
7079
7180 Be it enacted by the Legislature of the State of Arizona:
7281
7382 Section 1. Title 11, chapter 6, article 4, Arizona Revised Statutes, is amended by adding section 11-834, to read:
7483
7584 START_STATUTE11-834. Small land subdivision; requirements
7685
77-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 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.
86+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, all of which are two acres or more in size.
7887
7988 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.
8089
81-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.
90+c. An applicant for a small land subdivision shall ensure the small land subdivision will provide for legal access to each lot or parcel that is part of the small land subdivision. END_STATUTE
8291
83-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
92+Sec. 2. Title 32, chapter 20, article 4, Arizona Revised Statutes, is amended by adding section 32-3183.07, to read:
8493
85-Sec. 2. Section 32-2101, Arizona Revised Statutes, is amended to read:
94+START_STATUTE32-3183.07. Small land subdivision public report; requirements
8695
87-START_STATUTE32-2101. Definitions
96+A. On examination of a proposed small land subdivision, the commissioner, UNLESS there are grounds for denial, shall issue a small land subdivision public report allowing the sale or lease in this state of the lots or parcels that are the SUBJECT of the small land subdivision prescribed in section 11-834.
8897
89-In this chapter, unless the context otherwise requires:
98+b. The small land subdivision report shall contain the following:
9099
91-1. "Acting in concert" means evidence of collaborating to pursue a concerted plan.
100+1. A survey of the land that is the subject of the proposed small land subdivision.
92101
93-2. "Address of record" means any of the following:
102+2. A road maintenance agreement that indicates that The roads included in the small land subdivision need to be wide enough to accommodate a first responder vehicle but do not need to be improved to meet the standards of a highway.
94103
95-(a) The address where a licensee practices or is otherwise employed.
104+3. Information regarding access to water by the lots or parcels that are the subject of the proposed small land subdivision. Water information may include whether the lots or parcels have access to any of the following:
96105
97-(b) A licensee's residential address.
106+(a) A private water utility.
98107
99-(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.
108+(b) A water district.
100109
101-3. "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:
110+(c) Individual private wells.
102111
103-(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.
112+(d) Shared wells.
104113
105-(b) Communications to stockholders as follows:
114+(e) Water hauling services.
106115
107-(i) Annual reports and interim financial reports.
116+4. Information regarding easements for ingress and egress from the proposed small land subdivision.
108117
109-(ii) Proxy materials.
118+5. Information regarding the installation of electrical lines and information identifying the provider of electric utility service to the lots or parcels that are the subject of the small land subdivision.
110119
111-(iii) Registration statements.
112-
113-(iv) Securities prospectuses.
114-
115-(v) Applications for listing of securities on stock exchanges.
116-
117-(vi) Prospectuses.
118-
119-(vii) Property reports.
120-
121-(viii) Offering statements.
122-
123-4. "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.
124-
125-5. "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.
126-
127-6. "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.
128-
129-7. "Blanket encumbrance":
130-
131-(a) Means either:
132-
133-(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.
134-
135-(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.
136-
137-(b) Does not include taxes and assessments that are levied by public authority.
138-
139-8. "Board" means the real estate advisory board.
140-
141-9. "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.
142-
143-10. "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.
144-
145-11. "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.
146-
147-12. "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:
148-
149-(a) A burial park, for earth interments.
150-
151-(b) A mausoleum, for crypt or vault entombments.
152-
153-(c) A crematory, or a crematory and columbarium, for cinerary interments.
154-
155-(d) A cemetery plot, including interment rights, mausoleum crypts, niches and burial spaces.
156-
157-13. "Cemetery broker" means a person other than a real estate broker or real estate salesperson who, for another, for compensation:
158-
159-(a) Sells, leases or exchanges cemetery property or interment services of or for another, or on the person's own account.
160-
161-(b) Offers for another or for the person's own account to buy, sell, lease or exchange cemetery property or interment services.
162-
163-(c) Negotiates the purchase and sale, lease or exchange of cemetery property or interment services.
164-
165-(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.
166-
167-14. "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.
168-
169-15. "Commissioner" means the state real estate commissioner.
170-
171-16. "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.
172-
173-17. "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.
174-
175-18. "Contiguous":
176-
177-(a) Means lots, parcels or fractional interests that share a common boundary or point.
178-
179-(b) Does not include lots, parcels or fractional interests that are separated by either of the following:
180-
181-(i) A barrier.
182-
183-(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.
184-
185-19. "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.
186-
187-20. "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.
188-
189-21. "Department" means the state real estate department.
190-
191-22. "Designated broker" means a natural person who is licensed as a broker under this chapter and who is either:
192-
193-(a) Designated to act on behalf of an employing real estate, cemetery or membership camping entity.
194-
195-(b) Doing business as a sole proprietor.
196-
197-23. "Developer":
198-
199-(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.
200-
201-(b) Does not include a person whose involvement with a development is limited to listing property within the development for sale, lease or use.
202-
203-24. "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.
204-
205-25. "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.
206-
207-26. "Employing broker" means a person who is licensed or is required to be licensed as a:
208-
209-(a) Broker entity pursuant to section 32-2125, subsection A.
210-
211-(b) Sole proprietorship if the sole proprietor is a broker licensed pursuant to this chapter.
212-
213-27. "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.
214-
215-28. "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.
216-
217-29. "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.
218-
219-30. "Lease" or "leasing" includes any lease, whether it is the sole, the principal or any incidental part of a transaction.
220-
221-31. "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.
222-
223-32. "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.
224-
225-33. "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.
226-
227-34. "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.
228-
229-35. "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.
230-
231-36. "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.
232-
233-37. "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.
234-
235-38. "Member" means a member of the real estate advisory board.
236-
237-39. "Membership camping broker" means a person, other than a salesperson, who, for compensation:
238-
239-(a) Sells, purchases, lists, exchanges or leases membership camping contracts.
240-
241-(b) Offers to sell, purchase, exchange or lease membership camping contracts.
242-
243-(c) Negotiates or offers, attempts or agrees to negotiate the sale, purchase, exchange or lease of membership camping contracts.
244-
245-(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.
246-
247-(e) Assists or directs in procuring prospects calculated or intended to result in the sale, purchase, listing, exchange or lease of membership camping contracts.
248-
249-(f) Performs any of the foregoing acts as an employee or on behalf of a membership camping operator or membership contract owner.
250-
251-40. "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.
252-
253-41. "Membership camping operator":
254-
255-(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.
256-
257-(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.
258-
259-42. "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.
260-
261-43. "Partnership licensee" means a partnership with a managing general partner who is licensed as the designated broker pursuant to section 32-2125.
262-
263-44. "Permanent access", as required under article 4 of this chapter, means permanent access from the subdivision to any federal, state or county highway.
264-
265-45. "Perpetual care" or "endowed care":
266-
267-(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.
268-
269-(b) Does not include maintaining or repairing monuments, tombs, copings or other man-made ornaments as associated with individual burial spaces.
270-
271-46. "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.
272-
273-47. "Person" means any individual, corporation, partnership or company and any other form of multiple organization for carrying on business, foreign or domestic.
274-
275-48. "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.
276-
277-49. "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.
278-
279-50. "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.
280-
281-51. "Real estate broker" means a person, other than a salesperson, who, for another and for compensation:
282-
283-(a) Sells, exchanges, purchases, rents or leases real estate, businesses and business opportunities or timeshare interests.
284-
285-(b) Offers to sell, exchange, purchase, rent or lease real estate, businesses and business opportunities or timeshare interests.
286-
287-(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.
288-
289-(d) Lists or offers, attempts or agrees to list real estate, businesses and business opportunities or timeshare interests for sale, lease or exchange.
290-
291-(e) Auctions or offers, attempts or agrees to auction real estate, businesses and business opportunities or timeshare interests.
292-
293-(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.
294-
295-(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.
296-
297-(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.
298-
299-(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.
300-
301-(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.
302-
303-(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.
304-
305-(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.
306-
307-(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.
308-
309-(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.
310-
311-(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.
312-
313-(p) Acts as a business broker.
314-
315-52. "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.
316-
317-53. "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.
318-
319-54. "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.
320-
321-55. "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.
322-
323-56. "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.
324-
325-57. "Stock cooperative" means a corporation to which all of the following apply:
326-
327-(a) The corporation is formed or used to hold title to improved real property in fee simple or for a term of years.
328-
329-(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.
330-
331-(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.
332-
333-58. "Small land subdivision" means 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 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.
334-
335-59. "Small land subdivision public report" means a written notice and disclosure submitted to the commissioner pursuant to section 32-2183.07.
336-
337-60. "Small land subdivider" means any person who does any of the following:
338-
339-(a) Offers for sale or lease six to ten lots or parcels in a small land subdivision.
340-
341-(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.
342-
343-(c) Undertakes to develop a small land subdivision.
344-
345-58. 61. "Subdivider":
346-
347-(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.
348-
349-(b) Does not include a public agency or officer authorized by law to create subdivisions.
350-
351-59. 62. "Subdivision" or "subdivided lands":
352-
353-(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:
354-
355-(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.
356-
357-(ii) In a county that has authorized the use of small land subdivisions pursuant to section 11-834, eleven or more lots or parcels.
358-
359-(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.
360-
361-(c) Does not include:
362-
363-(i) Leasehold offerings of one year or less.
364-
365-(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.
366-
367-(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.
368-
369-(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.
370-
371-(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.
372-
373-60. 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.
374-
375-61. 64. "Trustee":
376-
377-(a) Means a person who either:
378-
379-(i) Is designated under section 32-2194.27 to act as a trustee for an endowment-care cemetery fund.
380-
381-(ii) Holds bare legal title to real property under a subdivision trust.
382-
383-(b) Does not include a developer, subdivider, broker or salesperson within this chapter.
384-
385-62. 65. "Unimproved lot or parcel" means a lot or parcel of a subdivision that is not an improved lot or parcel.
386-
387-63. 66. "Unsubdivided lands":
388-
389-(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.
390-
391-(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
392-
393-Sec. 3. Section 32-2108.01, Arizona Revised Statutes, is amended to read:
394-
395-START_STATUTE32-2108.01. License applicants; fingerprint clearance cards; definition
396-
397-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.
398-
399-B. The license applicant is responsible for providing the department with a valid fingerprint clearance card.
400-
401-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:
402-
403-1. 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.
404-
405-2. 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.
406-
407-D. This section does not affect the department's authority to otherwise issue, deny, cancel, terminate, suspend or revoke a license.
408-
409-E. For the purposes of this section, "license applicant" means:
410-
411-1. 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.
412-
413-2. 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.
414-
415-3. 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:
416-
417-(a) License renewal pursuant to section 32-2130.
418-
419-(b) Public report to:
420-
421-(i) Sell or lease subdivided lands pursuant to article 4 of this chapter.
422-
423-(ii) Sell or lease unsubdivided lands pursuant to article 7 of this chapter.
424-
425-(iii) Sell or lease timeshare estates pursuant to article 9 of this chapter.
426-
427-(iv) Sell membership camping contracts pursuant to article 10 of this chapter.
428-
429-(c) Small land subdivision public report to sell or lease lands in a small land subdivision pursuant to article 4 of this chapter.
430-
431-(c) (d) Certificate of authority to sell cemetery lots pursuant to article 6 of this chapter. END_STATUTE
432-
433-Sec. 4. Section 32-2183.03, Arizona Revised Statutes, is amended to read:
434-
435-START_STATUTE32-2183.03. Civil liabilities
436-
437-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.
438-
439-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.
440-
441-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:
442-
443-1. Employ any device, scheme or artifice to defraud.
444-
445-2. 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.
446-
447-3. Engage in any transaction, practice or course of business that operates or would operate as a fraud or deceit on a purchaser.
448-
449-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:
450-
451-1. The price at which such lot or parcel was sold in a bona fide market transaction prior to before suit or judgment.
452-
453-2. 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.
454-
455-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.
456-
457-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.
458-
459-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.
460-
461-H. In no case shall The amount recoverable pursuant to this section may 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.
462-
463-I. Nothing contained in This section shall be construed to does not preclude any other remedies that may exist at law or in equity.
464-
465-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 may not be brought by a purchaser more than three years after the sale or lease to such purchaser. END_STATUTE
466-
467-Sec. 5. Title 32, chapter 20, article 4, Arizona Revised Statutes, is amended by adding sections 32-2183.07 and 32-2183.08, to read:
468-
469-START_STATUTE32-2183.07. Small land subdivision public report; requirements
470-
471-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:
472-
473-1. The name and address of the owner and 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 section, "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.
474-
475-2. A survey of the land that is the subject of the proposed small land subdivision and the legal description and area of the land.
476-
477-3. True statements for all of the following:
478-
479-(a) THERE ◻ IS ◻ IS NOT . . . . LEGAL ACCESS TO THE LANDS, AS DEFINED IN A.R.S. 11-831.
480-
481-EXPLAIN: ____________________________________________________
482-
483-_____________________________________________________________
484-
485-_____________________________________________________________
486-
487-(b) THERE ◻ IS ◻ IS NOT . . . . PHYSICAL ACCESS TO THE LANDS.
488-
489-EXPLAIN: ____________________________________________________
490-
491-_____________________________________________________________
492-
493-_____________________________________________________________
494-
495-(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.
496-
497-(d) THE LEGAL AND PHYSICAL ACCESS TO THE LANDS ◻ IS ◻ IS NOT . . . . THE SAME.
498-
499-EXPLAIN: ____________________________________________________
500-
501-_____________________________________________________________
502-
503-_____________________________________________________________
504-
505-(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.
506-
507-(f) A PORTION OR ALL OF THE LANDS ◻ ARE ◻ ARE NOT . . . . LOCATED IN A FEMA DESIGNATED REGULATORY FLOODPLAIN.
508-
509-EXPLAIN: ____________________________________________________
510-
511-_____________________________________________________________
512-
513-_____________________________________________________________
514-
515-(g) THE LANDS ◻ ARE ◻ ARE NOT . . . . SUBJECT TO ◻ FISSURES OR ◻ EXPANSIVE SOILS.
516-
517-EXPLAIN: ____________________________________________________
518-
519-_____________________________________________________________
520-
521-_____________________________________________________________
522-
523-(h) THE FOLLOWING SERVICES ARE CURRENTLY PROVIDED TO THE LANDS:◻ WATER ◻ SEWER ◻ ELECTRIC ◻ NATURAL GAS ◻ SINGLE-PARTY TELEPHONE ◻ CABLE TELEVISION SERVICES.
524-
525-(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:
526-
527-WATER HAULER NAME: _____________ PHONE:______________
528-
529-WATER SUPPLY: __________________ LOCATION:___________
530-
531-(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. 300f).
532-
533-(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.
534-
535-(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:
536-
537-(i) THE LANDS ◻ WILL ◻ WILL NOT . . . . REQUIRE INSTALLATION OF AN ON-SITE WASTEWATER TREATMENT FACILITY.
538-
539-(ii) THE ON-SITE WASTEWATER TREATMENT FACILITIES ◻ HAVE ◻ HAVE NOT . . . . BEEN INSPECTED.
540-
541-(m) THE LANDS ◻ HAVE BEEN ◻ HAVE NOT BEEN . . . . SUBJECT TO A PERCOLATION TEST. ◻ UNKNOWN.
542-
543-(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:
544-
545-LEASING COMPANY NAME: _______________ PHONE: _______________
546-
547-(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:
548-
549-LEASING COMPANY NAME: _________________ PHONE: ____________
550-
551-(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.
552-
553-(q) THE LANDS ◻ DO ◻ DO NOT . . . . MEET THE MINIMUM APPLICABLE COUNTY ZONING REQUIREMENTS OF THE APPLICABLE ZONING DESIGNATION.
554-
555-(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:
556-
557-______________________________________________________________
558-
559-______________________________________________________________
560-
561-______________________________________________________________
562-
563-(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.)
564-
565-(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.)
566-
567-(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.)
568-
569-(v) THE LANDS ◻ ARE ◻ ARE NOT . . . . LOCATED UNDER MILITARY RESTRICTED AIRSPACE. (MAPS ARE AVAILABLE AT THE STATE REAL ESTATE DEPARTMENT'S WEBSITE.)
570-
571-(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.)
572-
573-(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.)
574-
575-(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:
576-
577-_____________________________________________________________
578-
579-_____________________________________________________________
580-
581-_____________________________________________________________
582-
583-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
584-
585-START_STATUTE32-2183.08. Small land subdivisions; delivery; penalties
586-
587-A. For the purposes of a delivery of an approved small land subdivision public report, section 32-2185.06 applies.
588-
589-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
590-
591-Sec. 6. Section 32-2185.06, Arizona Revised Statutes, is amended to read:
592-
593-START_STATUTE32-2185.06. Contract disclosures; contract disclaimers
594-
595-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
596-
597-Sec. 7. Section 32-2185.09, Arizona Revised Statutes, is amended to read:
598-
599-START_STATUTE32-2185.09. Civil penalties; limitation
600-
601-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.
602-
603-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.
604-
605-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.
606-
607-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.
608-
609-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
610-
611-Sec. 8. Section 33-422, Arizona Revised Statutes, is amended to read:
612-
613-START_STATUTE33-422. Land divisions; recording; disclosure affidavit
614-
615-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.
616-
617-B. The affidavit must be written in twelve-point type.
618-
619-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.
620-
621-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.
622-
623-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.
624-
625-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:
626-
627-When recorded mail to:
628-
629-__________________________
630-
631-__________________________
632-
633-__________________________
634-
635-__________________________
636-
637-Affidavit of Disclosure
638-
639-Pursuant to A.R.S. 33-422
640-
641-I, ______________________________________________ (seller(s)) being duly sworn, hereby make this affidavit of disclosure relating to the real property situated in the unincorporated area of:
642-
643-_______________________, County, State of Arizona, located at:
644-
645-______________________________________________________________
646-
647-and legally described as:
648-
649-(Legal description attached hereto as exhibit "A")
650-
651-(property).
652-
653-1. There ◻ is ◻ is not . . . . legal access to the property, as defined in A.R.S. 11-831 . . . . ◻ unknown
654-
655-Explain: ____________________________________________________
656-
657-______________________________________________________________
658-
659-______________________________________________________________
660-
661-2. There ◻ is ◻ is not . . . . physical access to the property. ◻ unknown
662-
663-Explain: ____________________________________________________
664-
665-______________________________________________________________
666-
667-______________________________________________________________
668-
669-3. 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.
670-
671-4. The legal and physical access to the property ◻ is ◻ is not . . . . the same....◻ unknown ◻ not applicable.
672-
673-Explain: ____________________________________________________
674-
675-______________________________________________________________
676-
677-______________________________________________________________
678-
679-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.
680-
681-5. The road(s) is/are ◻ publicly maintained ◻ privately maintained ◻ not maintained ◻ not applicable. If applicable, there ◻ is ◻ is not . . . . a recorded road maintenance agreement.
682-
683-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.
684-
685-6. 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.
686-
687-7. The property ◻ is ◻ is not subject to ◻ fissures or ◻ expansive soils. ◻ unknown
688-
689-Explain: ____________________________________________________
690-
691-______________________________________________________________
692-
693-______________________________________________________________
694-
695-8. The following services are currently provided to the property: ◻ water ◻ sewer ◻ electric ◻ natural gas ◻ single party telephone ◻ cable television services.
696-
697-9. 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.
698-
699-Water hauler name: ______________ Phone:__________
700-
701-Water supply: __________________ Location:_________
702-
703-10. 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).
704-
705-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.
706-
707-11. 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.
708-
709-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.
710-
711-12. 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.
712-
713-13. The property ◻ has been ◻ has not been . . . . subject to a percolation test. ◻ unknown.
714-
715-14. The property ◻ does have ◻ does not have one or more solar energy devices that are ◻ leased ◻ owned.
716-
717-If the solar energy devices are leased, the seller shall disclose the name and contact information of the leasing company.
718-
719-Leasing company name: _______________ Phone: _______________
720-
721-15. The property ◻ does have ◻ does not have one or more battery energy storage devices that are ◻ leased ◻ owned.
722-
723-If the battery energy storage devices are leased, the seller shall disclose the name and contact information of the leasing company.
724-
725-Leasing company name: _________________ Phone: ____________
726-
727-16. 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.
728-
729-16. 17. The property ◻ does ◻ does not . . . . meet the minimum applicable county zoning requirements of the applicable zoning designation.
730-
731-17. 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.
732-
733-Explain: _____________________________________________________
734-
735-______________________________________________________________
736-
737-______________________________________________________________
738-
739-18. 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.)
740-
741-19. 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.)
742-
743-20. 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.)
744-
745-21. 22. The property ◻ is ◻ is not located under military restricted airspace. ◻ unknown. (Maps are available at the state real estate department's website.)
746-
747-22. 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.)
748-
749-23. 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.)
750-
751-24. 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.
752-
753-Explain: ____________________________________________________
754-
755-______________________________________________________________
756-
757-______________________________________________________________
758-
759-
760-
761-This affidavit of disclosure supersedes any previously recorded affidavit of disclosure.
762-
763-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.
764-
765-Dated this (date) __ day of (year) by:
766-
767-Seller's name (print): ______________ Signature: _____________
768-
769-Seller's name (print): ______________ Signature: _____________
770-
771-State of Arizona )
772-
773- ) ss.
774-
775-County of _________)
776-
777-Subscribed and sworn before me this _ (date) __ day of (year) , by ________________________________________.
778-
779-__________________________
780-
781-Notary public
782-
783-My commission expires:
784-
785- (date)
786-
787-Buyer(s) hereby acknowledges receipt of a copy of this affidavit of disclosure this (date) day of (year)
788-
789-Buyer's name (print): _______________ Signature: _____________
790-
791-Buyer's name (print): _______________ Signature: _____________
792-
793-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
794-
795-Sec. 9. Section 45-108, Arizona Revised Statutes, is amended to read:
796-
797-START_STATUTE45-108. Evaluation of subdivision water supply and small land subdivision; definitions
798-
799-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 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.
800-
801-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.
802-
803-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.
804-
805-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:
806-
807-1. 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.
808-
809-2. 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.
810-
811-3. 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.
812-
813-E. The director shall not require a developer to submit plans for the water supply pursuant to subsection A of this section if either:
814-
815-1. Both of the following apply:
816-
817-(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.
818-
819-(b) That city, town or private water company has been designated as having an adequate water supply pursuant to subsection C of this section.
820-
821-2. All of the following apply:
822-
823-(a) The city or town has been designated as having an adequate water supply pursuant to subsection D of this section.
824-
825-(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.
826-
827-(c) The developer has obtained the written concurrence of the city or town that has been designated.
828-
829-F. The director may revoke a designation made pursuant to this section when the director finds that the water supply may become inadequate.
830-
831-G. The state of Arizona and the director or department shall not be liable for any report, designation or evaluation prepared in good faith pursuant to this section.
832-
833-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.
834-
835-I. For the purposes of this section: ,
836-
837-1. "Adequate water supply" means both of the following:
838-
839-1. (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.
840-
841-2. (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.
842-
843-2. "SMALL LAND SUBDIVISION" HAS THE SAME MEANING PRESCRIBED IN SECTION 32-2101.
844-
845-3. "Subdivision" has the same meaning prescribed in section 32-2101.END_STATUTE
120+6. Information regarding the presence, availability, installation or access to other utilities, including gas, cable, telephone or sewer. END_STATUTE