Arizona Real Estate Code And Commissioners Rules 2

Question 1

Public report (subdivision disclosure report)

Answer 1

A statement of important facts relating to the subdivision which allows the purchaser to make an informed decision regarding the property.

Question 2

Lot Reservations

Answer 2

Prior to issuance of the public report the subdivider may only except lot reservations.

1. Maximum $5000 deposit per lot
2. Must be placed in escrow
3. Seller must deliver public report to buyer within 15 calendar days of issuance.
4. Lot reservation terminates within seven business days of the buyers receipt of public report unless a purchase agreement is signed.
5. Lot reservation maybe canceled by the buyer prior to entering into purchase agreement.

Question 3

Right to Rescind

Answer 3

1. Buyer has seven calendar day unilateral right to rescind.
2. If buyer has not inspected the land, the buyer has six months to inspect and may rescind at time of inspection.

Question 4

Affidavit of Disclosure

Answer 4

A. Applies to any property (improved or unimproved) that is not located within a municipality or a recorded subdivision.
B. Requires disclosure of information regarding water availability, sewer or septic tanks, legal access, easement, etc.
NOTE: An appraisal is not required.
C. Must be delivered to buyer at least seven days prior to closing. Buyer has five days to resend the transaction from receipt of affidavit.
D. Seller must record affidavit when the deed is recorded.

Question 5

Real Estate Timeshares

Answer 5

Is a share or interest in real property (usually in the resort condominium or hotel) with the right to use the facility for a certain period of time.

Question 6

Subdivision

Answer 6

Land which is divided into six or more lots, parcels or fractional interest created for sale or lease.