discinfo

“Sub-Ex” or Subsequent Owner Exemptions

New!! (updated 2-8-08) The Commissioner has issued an advisory relaxing the rules a little bit on “Subsequent Owner” exemptions.

The sub-ex has been applicable only for a Public Report of a previous Subdivider that was dated within the past two years. Now, by petitioning the Commissioner, a Public Report dated earlier than 2 years can be used by a subsequent owner of the covered property upon a special exemption being granted by the Commissioner. Read the previous article after the jump.

As a “Subsequent Owner” of lots located in a single platted subdivision for which there is a current and accurate public report issued within the past 2 years (or earlier if a special exemption is petitioned for and granted by the Commissioner), a Subsequent Owner may qualify for an exemption that allows it to use that public report in lieu of obtaining a new public report if no material changes have been made (other than ownership) which would require a new public report. There is no fee payable to the AzDRE for this Exemption, and its effect is immediate upon filing and signed acceptance on the form by a representative of the AzDRE. See the Notice form for instructions.

There may, however, be some additional documentation required along with filing the Notice of Exemption:

The basis of a Sub-Ex filing is that a Subsequent Owner is stating that it will sell the subdivided lots in the same manner as the previous Subdivider, based upon the same information submitted to support the original public report filing. That includes the form of contract to be used, which is a required document for any public report filing. If the Subsequent Owner will be using a different form of contract, that new specimen needs to be filed along with the Sub-Ex Notice.

Additionally, for properties where a Certificate of Assured Water Supply (“CAWS”) was issued in the name of the previous Subdivider, and the City or water company serving the property has not been designated as having an Assured Water Supply, the AzDRE will not accept a Sub-Ex Notice without a copy of the CAWS re-issued in the name of the Subsequent Owner.

In order to obtain a re-issued CAWS, among other possible requirements, the Subsequent Owner must provide evidence of property ownership (or an interest in the property, like that of an Optionee).

The same ownership or interest in the lots is, of course, also required for simply filing the Sub-Ex Notice… by filing it the Subsequent Owner is affirming that it has an ownership interest in the lots. That ownership or other real property interest should be in place of record before filing the Sub-Ex Notice.