AZ2: Commissioner's Rules, Subdivisions & Timeshares

Question 1

Subdivision

Answer 1

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

Question 2

Public Report (Subdivision Disclosure Report)

Answer 2

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

Question 3

Lot Reservation

Answer 3

Prior to issuance of the public report, the subdivider may only accept lot reservations.
A. Max 5K deposit per lot
B. Must be placed in escrow.
C. Seller must deliver the Public Report within 15 calendar days of issuance.
D. Lot reservation terminates within 7 business days of buyers receipt of public report unless a purchase agreement is signed.
E. Lot reservation may be cancelled by the buyer prior to entering into purchase agreement.

Question 4

Right to Rescind

Answer 4

In the sale of unimproved lots or parcels:

1. Buyer has a 7-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 5

Affidavit of Disclosure

Answer 5

1. Applies to any property (improved or unimproved) that is not located with a municipality or a recorded subdivision.
2. Requires disclosure of information regarding water availability, sewer or septic tanks, legal access, easements, etc. An appraisal is not required.
3. Must be delivered to buyer at least seven days prior to closing. Buyer has five days to rescind the transaction from receipt of affidavit.
4. Seller must record affidavit when the deed is recorded.

Question 6

Real Estate Timeshare

Answer 6

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