“Unsubdivided” Subdivisions

It may be an oxymoron, but a Public Report (now known as a “Subdivision Disclosure Report”) is required for sale of an unsubdivided subdivision of 6 or more parcels, each less than 36 acres (un-platted lands, without municipality approval or street/easement dedications).

Some of the minimum requirements to obtain a Public Report in this case are as follows:

  • A map or survey of the entire “subdivision” with boundaries and identifying parcel numbers of the individual parcels.
  • Disclosure of utilities location (distance from the furthest lot in the subdivision) and an estimate of how much it would cost a buyer to bring the utilities to the foundation of a residence to be constructed on a parcel.
  • A letter from a civil engineer stating the flood potential of the parcels and the designation given the area or subdivision by FEMA on the Flood Insurance Rate Maps.
  • A statement by the Subdivider (within the Public Report itself, but based on expert knowledge… a soils engineer’s report) whether the soils of the parcels are subject to subsidence or expansion, and if there are any ground fissures in or near the subdivision.
  • Health Certificate, or “Approval of Sanitary Facilities for Subdivision” from Maricopa County Environmental Services Department (only if in Maricopa County), otherwise from the Arizona Dept of Environmental Quality.
  • A letter from a title company or engineer identifying the means of legal access to the individual parcels from a known public right of way by conventional motor vehicle.
  • Certificate of Assured Water Supply (“CAWS”) for the subdivision from Arizona Dept of Water Resources, unless the property is in the service area of a water company or municipality determined to have an adequate water supply. Further, if that company or municipality, or this “subdivision”, is a member of the Central Arizona Groundwater Replenishment District, a Notice of Payment of any fees associated with the membership.

There will be more requirements. But, this gives an idea of the curves you’ll need to negotiate on your path to selling unsubdivided land while complying with the laws and rules of the State of Arizona and the Commissioner of Real Estate.

Leave a Reply

Your email address will not be published. Required fields are marked *