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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
subdivided lands; civil penalties
Purpose
Subjects a subdivider or agent who violates outlined rules or laws to a civil penalty of up to $2,000 for each lot where the violation occurs, rather than for each infraction.
Background
A subdivision or subdivided land is improved or unimproved land 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, including: 1) a stock cooperative; 2) lands divided or proposed to be divided as part of a common promotion plan; and 3) residential condominiums. Leasehold offerings of one year or more are exempt from the classification of subdivision or subdivided lands (A.R.S. § 32-2101).
The act, use or employment by any person of any deception, deceptive or unfair act or practice, fraud, false pretense, false promise, misrepresentation, or concealment, suppression or omission of any material fact with intent that others rely on such concealment, suppression or omission, in connection with the sale or advertisement of any merchandise whether or not any person has in fact been misled, deceived or damaged thereby, is an unlawful act. A subdivider or agent who is subject to the jurisdiction of the Arizona Department of Real Estate (ADRE) who engages in any of the outlined unlawful acts or violates the law or any rule adopted or order issued by the State Real Estate Commissioner (Commissioner) with respect to the sale or lease of subdivided lands may, after a hearing, be assessed a civil penalty by the Commissioner of up to $2,000 for each infraction. An infraction that concerns more than one lot in a subdivision is a single infraction (A.R.S. §§ 44-1522 and 32-2185.09).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Subjects a subdivider or agent subject to the jurisdiction of the ADRE who violates outlined rules or laws or engages in outlined unlawful practices with respect to the sale or lease of subdivided lands to a civil penalty of up to $2,000 for each lot where the violation occurs, rather than for each infraction.
2. Makes technical changes.
3. Becomes effective on the general effective date.
House Action
LARA 1/29/24 DP 8-0-0-1
3rd Read 2/15/24 58-0-1-0-1
Prepared by Senate Research
February 29, 2024
RA/SDR/cs