“Sub-Ex” or Subsequent Owner Exemptions

The Sub-Ex exemption from Public Report filing applies only for a Public Report by a previous Subdivider that was dated within the past FIVE years.

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 5 years, 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.

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).

Ownership or an Optionee’s ¬†interest in the lots is, of course, required for 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 placed of record before filing the Sub-Ex Notice.

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