Arizona counties could allow six-to-ten-lot land splits under a new small-subdivision process

A county board of supervisors could adopt rules that allow small land subdivisions of six to ten lots. Each lot must be two acres or more, and the land cannot be subject to an assured water supply or mandatory adequate water supply requirement. The county would have to require a small land subdivision public report and legal access for every lot. A county that allows these splits must send written notice of its rules to the state real estate department. In counties that allow them, a regular subdivision would start at eleven lots instead of six.

A small land subdivider would have to notify the state real estate commissioner in writing before offering land, and the commissioner would issue a registration unless there are grounds to deny it. This applies to anyone who offers six to ten lots in a small land subdivision in a county that has allowed them. The report must include owner details, a survey, and true statements about road and legal access, floodplain, soil problems, water supply, septic systems, zoning, and nearby military sites. The commissioner must check the report for completeness before registering it. The report must be filed before the land is offered for sale or lease.

The state water director would review water supply plans for small land subdivisions and report to the real estate commissioner and the city, town, or county. This applies to developers of small land subdivisions in areas outside the state's active management areas. A developer must submit the plans before recording the plat. An adequate supply means enough water of good quality for at least 100 years, plus proof the developer can pay to build the water system. The director need not require plans if the developer has a written service commitment from a city, town, or water company already designated as having an adequate supply.

The real estate commissioner could fine a small land subdivider up to $5,000 per violation for selling lots without a registered report, and buyers could sue over false statements in the report. This applies to small land subdivisions and the people who buy or lease lots in them. The commissioner can assess the penalty only after a hearing. Contracts must tell the buyer about the right to get a copy of the report, and a contract that does not is not enforceable against the buyer. A buyer cannot recover if the buyer knew about the false statement or missing fact when buying.

Sellers of five or fewer parcels in unincorporated areas would add a question on the sworn disclosure form about whether the land is in a no-fence district. This applies to sellers of five or fewer parcels of land in unincorporated areas of a county, other than subdivided land. If the land is not in a no-fence district, the form says the owner must fence out unwanted livestock with a lawful fence. The seller must give the buyer the form at least seven days before the transfer.