When seeking a final Subdivision Public Report, if the land is located within an Active Management Area (AMA), a copy of the Certificate of Assured Water Supply from the Arizona Department of Water Resources (ADWR) must be furnished, or written commitment of water service from the city, town or private water company which has been designated by ADWR as having an assured water supply. The ADWR maintains a public list of those municipalities and water companies, also available by contacting DISC.

If the land is located outside an AMA, a Water Report from ADWR will be required.

Assisting in the attempts to meet these assurances is the Central Arizona Groundwater Replenishment District (”CAGRD”, known as “kay-gard“), which is part of the Central Arizona Project. CAGRD works to re-charge Arizona groundwaters, and helps to finance those efforts with non-mandatory, paid memberships of landowners, municipalities and water companies providing service to lands in their service areas. In addition to initial membership fees, the annual property taxes may include fees assessed for enrollment in CAGRD.

If the land has enrolled as Member Land of CAGRD pursuant to A.R.S. §48-3774, or if the land will be served by a municipal water provider whose service area is currently enrolled as a Member Service Area of CAGRD pursuant to A.R.S. §48-3780, DRE requires a copy of the notice executed on behalf of CAGRD confirming that all necessary fees relating to that enrollment have been paid. CAGRD has a notice form that will be used to satisfy this requirement upon application and supporting documentation.

DISC can assist you with regard to all these matters.

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.

If you hold fee title or an equitable interest (e.g., “Option to Purchase”) in 6 or more lots at one time, or subdivide an unsubdivided parcel or lots within an existing subdivision into 6 or more new parcels, lots or condominium units, a Public Report is required prior to offering any of those new parcels, lots or units for sale.

Regardless of the State requirements, you may still be required to follow the requirements for “minor land division” or lot-split ordinances of the city or county in which the property is located, even if splitting into 5 or fewer parcels or lots.

It is the act of selling that requires a Public Report, not ownership. There is no time limit connected with this. It makes no difference when you acquired or sold a lot. Upon acquiring fee title or an equitable interest in the 6th lot within a single platted subdivision, a Public Report is required prior to its sale. You could purchase and sell 2 lots every five years and as soon as you acquire an interest in the 6th lot and offer the lot/lots for sale, you would be in violation if you did not obtain a Public Report.

Exempt sales and leases

A.R.S. 32-2181.02 provides that the sale or lease in bulk of six or more lots, parcels or fractional interests to one buyer in one transaction is exempt from the requirement to obtain a Public Report.

www.azleg.gov