R4-28-A1212 through A1223. Additional Development Disclosures +16Arizona · Real Estate · English

Applicants must disclose information about schools, community shopping, public transportation, medical facilities, fire protection, ambulance/911 service, law enforcement, refuse collection, and the nearest USPS office. Property owners' association details and development use restrictions must also be disclosed.

• ✓Must disclose nearest schools, shopping, medical, fire, ambulance, and law enforcement services
• ✓Must disclose property owners' association assessments, formation, and CC&Rs
• ✓Must disclose whether the development or lot is subject to restrictions and Fair Housing Act compliance
• ✓Must disclose open range/livestock conditions and any fencing requirements

Applicants must provide title reports (dated within 30 days), disclose sales offering details, deposit handling, broker information, and record custodian. Foreign (out-of-state) developments advertised or sold in Arizona must comply with all Arizona laws as if located in-state, unless exempt. The applicant must sign an affidavit attesting the application is true.

• ✓Title report must have an effective date not more than 30 days before Department receipt
• ✓Foreign developments must comply with all Arizona laws unless exempt under A.R.S. § 32-2181.02
• ✓Sales offering must indicate where deposits are held and when refundable
• ✓Applicant must sign an affidavit attesting information is true and correct

The Department of Public Safety operates the central state repository to collect, store, and disseminate accurate Arizona criminal history records and related criminal justice information.

• ✓The department must procure identification data, fingerprints, charges, process control numbers, and dispositions for persons charged with felonies, domestic violence, and other listed offenses
• ✓The department must establish and enforce physical and system safeguards to protect criminal justice information from unauthorized inquiry, modification, destruction, or dissemination
• ✓The department provides criminal history record information to the fingerprinting division for screening applicants for fingerprint clearance cards

The director authorizes the exchange of criminal justice information with criminal justice agencies, noncriminal justice agencies (with statutory authorization and fingerprints), and various listed entities.

• ✓Noncriminal justice agencies may receive criminal history record information only pursuant to a statute/ordinance/executive order authorizing it, on submission of fingerprints and the prescribed fee, for evaluating fitness of licensees/employees/volunteers
• ✓Information may be exchanged with individuals for any lawful purpose on submission of the subject's fingerprints and prescribed fee, and with the person themselves to review for accuracy
• ✓Information may be released to noncriminal justice agencies for fitness evaluations of nonprofit employees interacting with children/vulnerable adults, and to various courts and agencies for specific listed purposes

The director must ensure limitations on dissemination of criminal justice information and may establish fees for fingerprint processing.

• ✓Criminal history record information disseminated to noncriminal justice agencies or individuals may be used only for the purposes for which it was given; secondary dissemination is prohibited unless authorized by law
• ✓The existence or nonexistence of criminal history record information may not be confirmed to anyone not authorized to receive the information itself
• ✓The director must establish fees to cover federal (and optionally state) noncriminal justice fingerprint processing; state processing fees are not refundable

Booking agencies, courts, and law enforcement must ensure fingerprinting of persons arrested or summoned for listed offenses, using process control numbers and mandatory compliance forms.

• ✓Booking agencies must take legible ten-print fingerprints of persons arrested for listed offenses, obtain a process control number, and provide proof to the person to present to the court
• ✓Within 10 days after fingerprinting, the arresting authority must forward fingerprints to the department in the required manner
• ✓Dispositions must be reported to the central state repository within 40 days; each criminal justice agency must query the repository before disseminating criminal history record information to ensure completeness

Sections 32-2195 through 32-2195.03 require notice to the commissioner before offering unsubdivided land for sale or lease, examination of the land, and issuance of unsubdivided land reports with authority to deny or prohibit sales.

• ✓Notice of intention must be filed before offering unsubdivided land for sale or lease
• ✓An unsubdivided land report must be issued before sales
• ✓The commissioner may deny issuance or prohibit sales for violations

Sections 32-2195.04 and 32-2195.05 set out conditions precedent and methods for selling lots of unsubdivided lands and regulate advertising material.

• ✓Conditions precedent must be met before selling lots of unsubdivided land
• ✓Advertising must not be false or misleading and may be ordered to cease
• ✓Civil liabilities and penalties apply for violations (32-2195.06, 32-2195.11)

The commissioner may file complaints for violations and assist in prosecution; county attorneys must prosecute on written request. The commissioner may seek an injunction (temporary, preliminary, or permanent) without bond through the attorney general or county attorney. The department has no jurisdiction over landlord-tenant disputes or fair housing violations.

• ✓Commissioner may file complaints and seek injunctions without bond
• ✓Department has NO jurisdiction over landlord-tenant disputes or fair housing violations

Under title 41, an administrative law judge adjudicates complaints and ensures compliance with title 33 chapter 9 (condominium documents) and title 33 chapter 16 (planned community documents).

• ✓ALJ adjudicates condominium (Title 33, ch 9) disputes
• ✓ALJ adjudicates planned community (Title 33, ch 16) disputes

An owner or association may petition the department for a hearing about violations of condominium/planned community documents or statutes, paying a filing fee. The department lacks jurisdiction over disputes among owners where the association is not a party, or disputes with designers/builders/sellers over design, construction, condition, or sale.

• ✓Filing fee deposited into condominium/planned community hearing office fund
• ✓Fee refunded if petition dismissed before hearing scheduled
• ✓No jurisdiction over owner-vs-owner disputes without the association as party
• ✓No jurisdiction over design/construction/condition/sale disputes with builders or sellers

On receipt of petition and fee, the department mails a copy by certified mail; respondent must answer within 20 days showing cause. Failure to answer is deemed admission and results in a default decision. Either party may inspect department files with written authorization; corporations may be represented by non-attorney officers/employees under conditions.

• ✓Respondent must answer within 20 days after mailing of petition
• ✓Failure to answer is deemed admission; commissioner issues default decision
• ✓Corporate representation by non-attorney allowed if authorized and secondary to primary duties

The applicant must demonstrate permanent access traversable by conventional 2-wheel-drive autos and emergency vehicles, using title company legal access statements, surveyor/engineer statements confirming access is permanent, recorded maps, easements, or maintenance programs. Interior streets must be identified as public or private with completion, surfacing, cost, and maintenance details.

• ✓Access must be permanent and traversable by conventional 2-wheel drive automobiles and emergency vehicles
• ✓Legal access demonstrations may use title company statements, surveyor/engineer statements, recorded maps, easements/dedications, or road maintenance programs
• ✓Applicant must state whether interior streets are public or private and disclose completion, surfacing, costs, and maintenance responsibilities

The applicant must provide one or more assurances of completion: surety/completion bond, irrevocable letter of credit, loan commitment, trust/escrow account, city/county trust agreement, written escrow agreement, subdivision assurances, or other Department-approved assurance. Financial assurances generally must be payable to a non-developer third party, not expire before the last improvement's completion, and be 10% greater than the estimated completion cost.

• ✓Assurances must be payable to a third party who is not the developer and signed by all parties
• ✓Assurances must not expire before the estimated completion date of the last improvement
• ✓Financial assurances must be in an amount 10% greater than the estimated cost to complete all improvements and include an engineer/architect/contractor cost estimate
• ✓For subdivisions, no escrow may close and occupancy is prohibited until all promised improvements are complete (with phasing exceptions); vacant-lot earnest money must be held in neutral escrow

The applicant must disclose flood protection/drainage improvements, common/community/recreational improvements, and master-planned community improvements, including who completes them, completion dates, and costs to lot purchasers, including participation in special taxing and community facility districts under A.R.S. Title 48.

• ✓Must disclose who completes each improvement, the completion date, and costs the lot purchaser will pay
• ✓Must disclose costs of participation in special taxing districts and community facility districts under A.R.S. Title 48

Parties may represent themselves, appoint a representative, or be represented by a State Bar member. Representatives in investigations/audits must file a Notice of Representation, and counsel at hearings must file a Notice of Appearance with required contents.

• ✓A party may represent themselves, appoint someone to represent them, or be represented by a member of the State Bar of Arizona
• ✓Any person representing a party in an investigation or audit must submit a completed Notice of Representation to the Department
• ✓Counsel at a contested case hearing or appealable agency action must file a Notice of Appearance with OAH containing case title, agency name, appearing person's address/phone, and party's name

The designated broker's (and employing broker's) certificate must be prominently displayed, and all other certificates readily available. A salesperson's/associate broker's certificate remains with the employer until canceled/terminated/suspended/revoked or the licensee is severed. Brokers may comply by accessing and printing the department's public database record showing active licensure.

• ✓Designated/employing broker certificate must be prominently displayed in the office
• ✓Broker may comply via the department's public database record showing current active licensure

The designated broker's (and employing broker's) certificate must be prominently displayed; other certificates must be readily available. Salesperson/associate broker certificates remain with the employer until cancelled or the licensee is severed. Possession requirements may be met electronically via the department's public database printout.

• ✓Designated/employing broker certificate must be prominently displayed; others readily available
• ✓Salesperson/associate broker certificate remains with employer until cancellation or severance
• ✓Possession may be satisfied by accessing and printing the licensee's record from the department's public database

Except for accredited community colleges/universities offering real estate courses, any school offering study for original or renewal licensure must obtain a Certificate of School Approval. The administrator or owner must provide the school's name/address/phone/email, owners and legal/dba names, ownership structure, details of any 10%+ interest holders, authorized signers for certificates, administrators/directors, partnership agreement or Certificate of Good Standing as applicable, and the location of student records.

• ✓Schools must obtain a Certificate of School Approval unless they are accredited colleges/universities
• ✓Application must disclose all persons/entities holding 10% or more financial interest
• ✓Corporations/LLCs must provide a current Certificate of Good Standing from the Arizona Corporation Commission

Any school offering a course for licensure must possess a Certificate of Course Approval for each course. The application requires the school name/contact info, authorized representative details, course title, a detailed content outline, number of credit hours requested (excluding exam time used for overall evaluation), category of approval, segment definitions, disclosure if third-party recorded material is used (not exceeding 20% of instructional time), and the application date.

• ✓Each course requires its own Certificate of Course Approval
• ✓Third-party recorded material may not exceed 20 percent of instructional time
• ✓Exam time used for overall evaluation is not counted as credit hours

The school must maintain a record for five years of each student, including the student's name, dates of attendance, title of each course taken, course number/category/credit hours awarded, and the original signature roster for live in-person instruction.

• ✓Student records must be kept for five years
• ✓Records must include name, attendance dates, course details, and original signature roster for in-person courses

A prelicensing student must sign an enrollment agreement that includes, in bold capital letters: the course/segment title, total credit hours for licensure/renewal, cost of each course, refund policy, a statement about license pre-determination petitions, and a statement of any job placement service. The Department does not consider lists of employers a placement service; schools may only advertise placement services if referrals result from direct contact and documented evidence of referrals is maintained.

• ✓Enrollment agreements must include specific disclosures in bold capital letters including refund policy and pre-determination petitions
• ✓Schools may advertise job placement only if referrals come from direct contact and are documented

Schools, owners, operators, directors, and instructors must provide written notice within 10 days of changes to personal/business name/address, school closing, or certification disclosure; within 30 days of any structural change to a licensed entity (director/officer/10% shareholder, partner, or member/manager); and must obtain Commissioner approval before changing a business name, establishing a location, or changing course content/length or offering a new course. Instructor changes due to illness/emergency require notice as soon as practical. The Commissioner may, and upon verified written complaint shall, investigate and observe classes and examine school books/records.

• ✓Certain changes require 10-day notice; entity structure changes require 30-day notice
• ✓Business name changes, new locations, and course content/length changes require prior Commissioner approval
• ✓The Commissioner must investigate upon a verified written complaint

Any contract to purchase/lease an unimproved lot may be rescinded by the buyer without cause by written notice by midnight of the seventh calendar day after execution. If the buyer did not inspect the lot before signing, the buyer has a six-month period after execution to inspect and unilaterally rescind, signing an affidavit of inspection.

• ✓Buyer may rescind an unimproved lot contract by midnight of 7th calendar day
• ✓Right to rescind must be clearly and conspicuously disclosed
• ✓Uninspected buyer has 6 months to inspect and unilaterally rescind
• ✓Buyer signs affidavit of inspection at time of inspection

It is unlawful to sell a lot subject to a blanket encumbrance unless a provision (or valid supplementary agreement) lets the buyer acquire title free of the encumbrance upon completing all payments and performances. Certified/verified copies of such documents must be filed with the commissioner before any sale.

• ✓Cannot sell lots subject to blanket encumbrance without release provision
• ✓Buyer must be able to acquire title free of encumbrance upon full performance
• ✓Documents must be filed with commissioner before sale

Sale of unimproved lots must comply with one of three methods: (1) recording a deed conveying marketable title with recording within 60 days; (2) recording and depositing a real estate sales contract in escrow within 60 days with preliminary title report, executed deed, and encumbrance releases; or (3) conveyance to a trustee with trust agreement providing for conveyance upon buyer's performance. All documents recorded in the county where the subdivision is located.

• ✓Sale of unimproved lots must use one of three prescribed methods
• ✓Recording deadlines are generally within 60 days of execution
• ✓Documents must be recorded in county where subdivision is located
• ✓Only qualified banks, S&Ls, title companies, or authorized escrow agents may act as trustee

Developers must deposit 100% of all monies received during the rescission period into an escrow or trust account at a federally insured depository, evidenced by an executed agreement with disbursement conditions.

• ✓100% of all monies received during the rescission period must be deposited in escrow/trust
• ✓Monies may only be disbursed to the developer after the rescission period expires and per the agreement
• ✓If a purchaser cancels, monies are paid to the purchaser (or developer if already refunded)

If construction is incomplete, developers must maintain all purchaser monies in escrow after the rescission period, released only upon acceptable evidence of completion such as a certificate of occupancy.

• ✓Monies must remain in escrow until acceptable evidence of completion (certificate of occupancy or substantial completion)
• ✓On purchaser default, monies are paid to the developer; on developer default, monies are paid to the purchaser
• ✓In lieu of escrow, the commissioner may accept a surety bond, letter of credit, or other financial assurance

Developers must make escrow documents available to the commissioner and maintain disputed monies in escrow until a signed agreement of all parties or until a civil action is filed and monies deposited with the court.

• ✓Escrow documents must be available to the commissioner on request
• ✓Disputed monies must remain in escrow until all parties agree in writing
• ✓If a civil action is filed, disputed monies must be deposited with the court of appropriate jurisdiction

Section 32-2197.03 governs purchase agreements, rescission of contract or agreement, and cancellation or termination of timeshare interests, providing statutory cancellation rights to purchasers.

• ✓Timeshare purchasers have a statutory rescission (cooling-off) right
• ✓Purchase agreements must disclose the cancellation right and procedure
• ✓Notice of material change requires notification to purchasers (32-2197.04)

Sections 32-2197 through 32-2197.02 define timeshare terms, govern creation of timeshare plans and ratios, and require notice of intent to sell with application for a timeshare plan public report and authorization for pre-sales.

• ✓A developer must file for a public report before selling timeshare interests
• ✓Definitions in 32-2197 govern the timeshare article
• ✓Pre-sales require specific authorization from the commissioner

Section 32-2197.05 requires an escrow or trust account, agreement, evidence of completion, and financial assurance to protect purchaser funds and ensure completion of promised improvements.

• ✓Timeshare purchaser funds must be held in escrow or trust
• ✓Financial assurance or a blanket encumbrance alternative is required
• ✓Blanket encumbrances and liens are addressed under 32-2197.12

Section 32-2197.17 sets out advertising and promotional requirements, telemarketing and promotional employees, presentations, tours, drawings, contests, and required disclosures. Amended by SB1171 (32-2197.16 separate disclosures) in 2024.

• ✓Timeshare advertising and promotions must comply with disclosure requirements
• ✓Telemarketing and promotional presentations are regulated
• ✓Separate disclosures are required under 32-2197.16

Sections 32-2197.19 through 32-2197.24 cover civil liabilities and prohibitions, civil penalties, payment of finder fees, exemptions and exempt communications, and the commissioner's power to exempt timeshare plans.

• ✓Violations of the timeshare article create civil liability and penalties
• ✓Certain timeshare plans and communications may be exempt (32-2197.22)
• ✓The commissioner may exempt timeshare plans by order (32-2197.23)

A licensee who violates the chapter, a rule/order, deviates substantially from a public report, or engages in unlawful practices under 44-1522 regarding subdivided/unsubdivided lands may be assessed a civil penalty, after a hearing, of up to one thousand dollars per infraction.

• ✓Civil penalty capped at $1,000 per infraction
• ✓Penalty may only be assessed after a hearing
• ✓Attorney general brings actions to recover penalties; unpaid penalties can be filed as superior court judgments

Sale or offer of unimproved lots must comply with one of three prescribed conveyance/escrow/trust methods with recording deadlines.

• ✓Method 1: deed conveying merchantable/marketable title recorded within 60 days of execution (balance may be secured by note and mortgage/deed of trust)
• ✓Method 2: recorded real estate sales contract deposited in escrow within 60 days with preliminary title report, executed deed, and blanket encumbrance releases
• ✓Method 3: deed to a trustee with a trust agreement providing conveyance to buyer on performance; sales contract recorded within 60 days
• ✓All required documents must be recorded in the county and state where the subdivision is located

Buyers of unimproved lots have a seven-day rescission right and, if uninspected, a six-month inspection rescission right that must be conspicuously disclosed.

• ✓Contracts to purchase/lease unimproved lots may be rescinded without cause by written notice by midnight of the seventh calendar day after execution
• ✓If the buyer did not inspect before executing, they have a six-month period to inspect and unilaterally rescind; a signed inspection affidavit is required
• ✓The subdivider must clearly and conspicuously disclose the rescission right; commissioner may exempt commercial/industrial subdivisions

It is unlawful to sell a lot subject to a blanket encumbrance without provisions enabling the buyer to obtain title free of that encumbrance upon completing payments.

• ✓Unlawful to sell a lot subject to a blanket encumbrance unless the encumbrance or a valid supplementary agreement lets the buyer acquire title free of it on full performance
• ✓Certified/verified copies of acceptable documents must be filed with the commissioner before selling any lot subject to a blanket encumbrance

Only qualified financial/title entities may act as trustee, and the section excludes improved lots and approved cemetery lots.

• ✓Only banks, savings and loan associations, qualified title insurance companies/subsidiaries, or authorized escrow entities may act as trustee under Method 3
• ✓The section does not apply to the sale of improved lots (per 32-2101) or approved cemetery lots/parcels
• ✓Any sale/assignment of a mortgage, deed of trust, or sales contract must be recorded and noticed to the commissioner within 60 days

All cemetery plot sale contracts must clearly and conspicuously disclose the nature of the document and grave site, whether the cemetery is endowed, that the operator holds a certificate of authority, improvement completion dates, any fees for future plot use (opening/closing, markers, vault liners), whether markers/vaults may be bought elsewhere, and cancellation/refund policy.

• ✓Must disclose the nature of the document and grave site designation
• ✓Must disclose whether the cemetery is endowed or nonendowed
• ✓Must disclose the certificate of authority and that records are available
• ✓Must disclose fees, separate-vendor options, and cancellation/refund policy
• ✓A contract lacking required disclosures is unenforceable against the purchaser

A timeshare purchase agreement must be written and signed, with a paper copy given to the purchaser. Purchasers may rescind without cause within ten calendar days, and this right must be conspicuously disclosed.

• ✓The purchaser may rescind without cause by midnight of the tenth calendar day following execution
• ✓Rescission rights must be conspicuously disclosed immediately before the signature space in the purchase agreement
• ✓Cancellation notice is effective on the date sent to the seller's listed address; closing is prohibited before the ten-day period expires

Denying a purchaser's rescission rights without a good faith legal basis is an unlawful practice under section 44-1522, subject to attorney general investigation and action.

• ✓Denial of rescission rights without good faith legal basis is an unlawful practice under section 44-1522
• ✓This section applies to any timeshare plan approved under article 4 or this article regardless of public report issuance date

Employees whose primary duties are limited to soliciting initial interest, scheduling appointments, or handing out promotional literature do not need a real estate license. Those soliciting actual purchase interest must be employed and supervised by a licensed broker.

• ✓Unlicensed promotional employees may not discuss transaction details or benefits (dimensions, contract terms, discounts, exchange benefits, price, financing)
• ✓Unlicensed employee compensation may not be based on completion of a timeshare transaction
• ✓Supervision must be by a broker or a licensed salesperson under the broker; the commissioner may exempt out-of-state developers/telemarketers on a showing of equivalent supervision

Within 10 days of a commissioner request, the developer must file promotional/advertising material; the commissioner approves or denies within 15 days. Advertising and oral statements must not contain untrue statements, risk-free/no-loss claims, or misleading depictions of proposed improvements.

• ✓Material must be filed within 10 days of a commissioner request; approval/denial within 15 days
• ✓Advertising may not contain untrue/omitted material facts, no-risk/no-loss claims, or unlabeled proposed improvements/nonexistent scenes
• ✓All material must be consistent with the notice of intention and public report and clearly indicate it promotes a timeshare interest

A developer may hold a drawing or contest to promote interests only if strict conditions are met, and may give premiums to visitors/attendees with disclosure and a time limit on presentations.

• ✓A drawing/contest requires a current public report, full disclosure of odds/terms, no participation fee, and no required attendance at a presentation/tour
• ✓No person may be required to attend a presentation or tour longer than 120 minutes to receive a premium
• ✓Complete written disclosure of any premium (estimated retail value, conditions, limits) and the 120-minute limit must be given before any presentation or tour

A developer may offer a redemption certificate for participation in a presentation/tour if it honors the certificate within set timeframes. Required disclosures must be given at the initial contact or before the prospect pays money or attends a presentation.

• ✓If goods/services are not provided as represented, the developer must provide them (or substitute of equal/greater value) within 15 days, or pay the estimated retail value
• ✓All redemption certificate offers must clearly set forth terms, conditions, restrictions, and limitations
• ✓The subsection C consistency disclosure must be given at initial advertising contact; other disclosures before the prospect pays money or attends a presentation