If, at any time after approval and issuance of the Public Report, there is a material change to the development, the offering or any disclosures in the Public Report, the Public Report must be amended and any existing purchasers under contract must be given a copy of the approved amended Public Report.
During the period between the material change and the approval and issuance of the amended Public Report, any contracts accepted by the Subdivider must be conditioned upon final approval and issuance of the amended Public Report by addendum to the contract in a prescribed form.
“Material change” is not necessarily a defined term. The Arizona statutes state, “‘Material change’ means any significant change in the size or character of the development, development plan, or interest being offered, or a change that has a significant effect on the rights, duties, or obligations of the developer or purchaser, or use and enjoyment of the property by the purchaser.” It is the responsibility of the Commissioner of the Department Real Estate to determine if a change is material or not. Therefore, it’s advisable to seek an amended Public Report for any change that a reasonable person might determine is material. This could include, without limitation, a change in the ownership structure, new finacing affecting the subdivision, amended Covenants, Conditions and Restrictions, change in land use in the vicinity to the extent that a purchaser may be affected adversely or that might affect a prospective purchasers decision to buy, etc.
The cost for filing an application for an amended Public Report is $250.00