Assurance of Completion of Subdivision Improvements

[UPDATE: I’ve created a link to the Arizona Administrative Code regarding assurance of completion, setting forth the requirements in order to obtain a Public Report while common-areas and/or infrastructure remains incomplete.]

If you are planning to offer for sale lots within a subdivision where public or private infrastructure improvements are ongoing, you must provide an “assurance of completion” of all planned improvements in order to obtain a public report and be allowed to take binding contracts prior to completion of the improvements. “Improvements”, in this context, includes underground/overhead utilities, streets (private or public), common-area amenities and landscaping, boundary walls, entry gates, etc.

This requirement is contained in the Real Estate Commissioners Rules and Regs.

There may be other arrangements, but it comes down to protecting the buyer against having to come up with more money after the purchase in order to complete all promised improvements.

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