HB2023 - 562R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 33-422, Arizona Revised Statutes, as amended by Laws 2019, chapter 103, section 1 and chapter 131, section 1, 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 any parcel that is the subject of an affidavit recorded as prescriBed by this section 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 An escrow agent for the transaction who is licensed pursuant to title 6, chapter 7 or, if none, 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 and the licensed escrow agent for any subsequent seller of a parcel that is the subject of an affidavit recorded pursuant to this section or, if none, the subsequent seller shall record the subsequently executed affidavit prescribed by this section. A licensed escrow agent who records an affidavit pursuant to this subsection is not liable for any inaccurate information in the affidavit, including any omissions of material facts.

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 § 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.

Notice to buyer: If the property contains solar energy devices, it is the responsibility of the buyer to verify the proper replacement and disposal method for the devices, as applicable. If the solar energy devices are leased, the seller or property owner 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: ____________

15. 16. The property ◻ does ◻ does not . . . . meet the minimum applicable county zoning requirements of the applicable zoning designation.

16. 17. 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 § 11-831, subsection F and § 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: ____________________________________________________

______________________________________________________________

17. 18. 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.)

18. 19. 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.)

19. 20. 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.)

20. 21. The property ◻ is ◻ is not located under military restricted airspace. ◻ unknown. (Maps are available at the state real estate department's website.)

21. 22. 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.)

22. 23. 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: ____________________________________________________

______________________________________________________________

24. 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 INFORMATION IS UNKNOWN TO THAT SELLER.

THE BUYER SHOULD INVESTIGATE THESE UNKNOWN ITEMS.

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: _____________

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: _____________

G. If the seller is a trustee of a subdivision trust as defined in section 6-801, the beneficiary of the subdivision trust shall provide the disclosure affidavit required by this section.

G. h. For the purposes of this section, seller and subsequent seller do not include any of the following:

1. 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

2. 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.

3. A personal representative acting on behalf of an estate that is selling the property. END_STATUTE

Sec. 2. Repeal

Section 33-422, Arizona Revised Statutes, as amended by Laws 2023, chapter 77, section 3, is repealed.