ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

House: LARA DP 5-4-0-0 | 3rd Read 31-27-0-0-2
Senate: FICO DP 4-3-0-0 | 3rd Read 18-10-2-0-0
Final Pass: 38-20-2-0-0-0


HB 2009: subdivisions; acting in concert

Sponsor: Representative Griffin, LD 19

Vetoed

Overview

Specifies that it unlawful for a person to attempt to avoid statutory requirements related to subdivision of lands by acting in concert to divide within a 10-year period a parcel of land or lease or sell six or more subdivision lots by using a series of owners or conveyances or any other methods.

History

Currently, a county board of supervisors (BOS) may adopt land division ordinances to split a parcel of land into five or fewer lots, parcels or fractional interests, each of which is 10 acres or smaller. A land division application may be approved if certain statutory requirements are met. If an application does not comply with the requirements, the application may still be approved if the applicant confirms that no building or use permit will be issued until the lot, parcel or fractional interest complies with all statutory requirements. A BOS may also grant a variance to any of the requirements (A.R.S. § 11-831).

Statute expressly prohibits a person or group of persons acting in concert to attempt to avoid the land division or subdivision laws by acting in concert to divide a parcel of land into six or more lots or lease or sell subdivided lots by using a series of owners or conveyances. Either the county where the division occurred or the Arizona Department of Real Estate, but not both, can enforce this prohibition. Unlawful acting in concert, with respect to the sale or lease of subdivided lots, requires proof that the real estate licensee or other licensed professional knew or should have known that property which the licensee listed or acted in any capacity as agent was subdivided land. A familial relationship alone is not sufficient to constitute unlawful acting in concert (A.R.S. §§ 11-831, 32-2181).

Provisions

1.   ☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteRequires an application to split a parcel of land to be approved if the applicant signs an affidavit acknowledging that it is unlawful to divide within a 10-year period a parcel of land into six or more lots or parcels. (Sec. 1)

2.   Requires all real estate employment agreements to include, in material terms, an ascertainable amount or rate of broker compensation. (Sec. 2)

3.   Requires a real estate employment agreement for a licensee to represent a buyer in a residential real estate transaction and must be entered into before:

a)   the buyer tours any dwelling; and

b)   a broker writes a purchase offer on a buyer's behalf. (Sec. 2)

4.   Prohibits a broker who represents a buyer in a residential real estate transaction from receiving compensation from any source that exceeds the rate or amount of broker compensation that is specified in the real estate employment agreement for activities for which a license is required. (Sec. 2)

5.   Specifies that it is unlawful for a person or group of persons acting in concert to attempt to avoid the land division or subdivision laws by dividing within a 10-year period a parcel of land into six or more lots or lease or sell subdivided lots by using a series of owners or conveyances or by any other method to divide the lands. (Sec. 1 and 3)

6.   Defines Residential Real Estate. (Sec. 2)

7.   Makes technical and conforming changes. (Sec. 2 and 3)

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11.                    HB 2009

12.  Initials EB/BSR  Page 0 Vetoed

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