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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
land divisions; disclosure affidavit; recording
Purpose
Modifies the requirements for and contents of an affidavit of disclosure (affidavit) for the sale of parcels of land in an unincorporated area.
Background
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 must furnish a written affidavit containing outlined information to the buyer at least seven days before the transfer of the property and the buyer must acknowledge receipt of the affidavit. The seller must record the executed affidavit at the same time that the deed is recorded, and the county recorder is not required to verify the accuracy of any statement in the affidavit. A subsequently recorded affidavit supersedes any previous affidavit. For the purposes of the requirements of the affidavit, seller and subsequent seller do not include a trustee of a deed of trust who is selling property by a trustee's sale or any officer who is selling property by execution sale (A.R.S. § 33-422).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the licensed escrow agent for a transaction, on the request, direction or instruction of the seller, to record the executed affidavit at the same time that the deed is recorded.
2. Requires a subsequent seller or, on the request, direction or instruction of the subsequent seller, the licensed escrow agent for the subsequent transaction to record the subsequently executed affidavit.
3. Specifies that a licensed escrow agent who records an affidavit is not liable for any inaccurate information in the affidavit, including any omissions of material facts.
4. Requires the affidavit to contain outlined disclosures and be completed by the seller.
5. Modifies the affidavit to add an outlined notice that it is the buyer's responsibility to inspect a private well and that water delivery systems or water hauling may be required.
6. Modifies the affidavit to add questions regarding:
a) if the property is served by a private well, whether the well is registered with the Arizona Department of Water Resources (ADWR) and has a pump completion report on file with ADWR;
b) the date the on-site wastewater treatment facility was last inspected;
c) if the on-site wastewater treatment facility is a standard septic system, the date the on-site wastewater treatment facility was last pumped, which includes a notice to the buyer that septic systems are lawful and that cesspools are unlawful and may not be used for sewage disposal; and
d) whether the seller is a trustee in a trustee's sale, a person conducting an execution sale or mortgage foreclosure or a personal representative of an estate and the information is known to that seller.
7. Exempts, from being considered a seller or subsequent seller, a personal representative acting on behalf of an estate that is selling property.
8. Makes technical and conforming changes.
9. Becomes effective on the general effective date.
Amendments Adopted by the Committee of the Whole
· Adds language to the prescribed affidavit of disclosure regarding land divisions.
House Action Senate Action
LARA 1/29/24 DPA 8-1-0-0 FICO 3/4/24 DP 6-1-0
3rd Read 2/21/24 31-24-4-0-1
Prepared by Senate Research
June 12, 2024
RA/SDR/slp