Arizona 2008 Legislation Effective TODAY!

Passed earlier this year, follows is a summary of several specific real estate matters and other new laws in Arizona.  For complete details on the 2008 legislative session follow this Arizona legislature link.

NEW Arizona laws with specific real estate implications: 

SB 1491 – Affidavit of Disclosure and Subdivisions:
This legislation amends the real estate statutes regarding violations of the subdivision laws. For example, the law requires the Arizona Department of Real Estate ("ADRE") to record a public notice if the ADRE determines a violation of subdivision has occurred.
Additionally, when the ADRE issues a cease and desist order or obtains a court order enjoining further sales of subdivided land, the action must be recorded, and the ADRE must provide notice to all affected parties.
As a result, the Affidavit of disclosure statute was amended to add:
19. Use of the Property __is __is not limited in any way relating to an encumbrance of title due to a Lis Pendens, court order or a state real estate department order of 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.
This legislation contains an emergency clause and became effective June 16, 2008.
 

HB 2842 – Transfers of Drop Houses:
A "drop house" is real property that is used to facilitate smuggling pursuant to A.R.S. §13-2319. A person or company that owns, sells, leases or brokers a transaction involving property or real property that the person or company knows will be used as a drop house is guilty of a class 4 felony. It is a defense to a prosecution pursuant to this law if both of the following apply:
1. The person or company acquires actual knowledge that the property or real property is being used as a drop house after the person or company acquires ownership of, sells, leases or brokers a transaction involving the property or real property.
2. The person or company reports this information to a law enforcement agency.
 

SB 1176 – Dwelling Actions:
A "dwelling action" is a lawsuit brought by a buyer against a seller for defects in the design or construction of a home. This legislation excludes the real estate salesperson or broker who provided services in connection with the transaction from the definition of "seller" in the statutes pertaining to these dwelling actions.
 

HB 2270 – Water Supply Disclosure:
This legislation addresses the disclosure of water supply information to buyers and will be effective January 1, 2009. For example, the new law requires the ADRE to post information on its website advising prospective home buyers to investigate water availability before purchasing a property and to post a current map of all areas in the state outside Active Management Areas. Additionally, all municipal or private water companies outside of an AMA must provide a written statement describing the water supply status of the property within its services area to anyone who requests it.
 

SB 1028 – Loan Originator Licensing:
This legislation establishes a loan originator licensing program within the Arizona Department of Financial Institutions and requires that as of January 1, 2010, all loan originators be licensed, unless they are exempted. Applicants for a loan originator license must pay a license fee, complete a course of study, and pass an exam.

HB 2726 – Condominium Statutes:
Effective January 1, 2009, statutes pertaining to condominium associations apply to all condominiums without regard to the date the condominium was created. Previously, the statutes applied differently to condominium associations formed prior to January 1, 1986.

This article was excerpted from "New Laws Affecting the Real Estate Industry" by the AAR General Counsel Michelle Lind in the September 2008 issue of Arizona REALTOR®.
 

ADDITIONAL NEW ARIZONA LAWS OF INTEREST...

Law & Order
• Photo Speed-Enforcement vans on Arizona highways
• Illegal to sell animals on public streets or sidewalks in Pima & Maricopa counties.
• Some felons can carry concealed weapons (remember AZ is the wild west)
• Illegal for adults to misrepresent their age on the internet with the intent to lure minors for sex.
• People who knowingly rent or sell homes for intent of harboring illegals face criminal penalties.

Health & Safety
• Child Protective Services must inform police when a child is believed to be missing or at risk of harm.
• Give the public access to disciplinary records of all state employees, including CPS workers.
• Health officials can't bar neighborhood groups from selling homemade baked goods without permits.
• Some teens can now give blood with parental permission.
• Hospitals, fire stations and treatment centers must post notices that infants can be left there for a "safe haven."
• Penalty is increased for having sex with a minor if the perpetrator is a teacher or a member of the clergy.

Education
• Indefinitely assisting the high school seniors in securing a high school diploma by issuing "bonus points" for good grades if a student is unable to pass one of more of the sections of the AIMS test.
• Any school employee who is arrested must immediately notify their employer.
• Employees of private firms who do work for public schools must be fingerprinted.
• Schools can adopt their own policies to let students with diabetes administer their own insulin on school grounds.

Consumer Protection
• Arizonans can now pay a fee to "freeze" their credit reports so outsiders can't get the information and fraudulently apply for loans and credit cards.
• Businesses that allow people to buy on credit must adequately check IDs or they could end up eating the debt.
• Prohibit cities from banning "sign walkers" (people who stand near intersections with placards to direct traffic to new housing developments, car dealers and other commercial establishments.

Several hundred laws take effect today, for complete information please go to the Arizona legislature web site.