In the Arizona legislative session for 2017 the legislature enacted many new Arizona laws that affect real estate. Most new laws went into effect on August 9, 2017.
Tenant “Finder Fee” is Allowed
Generally, any referral or finder fee relating to sale or lease of real property may only be given to real estate brokers or licensees. However, A.R.S. § 32-2176 allows an owner or a property management company to pay a finder fee to an unlicensed person who is also a tenant in another unit managed by the property management company or owned by the owner. A reasonable finder fee can be paid only as a credit toward or reduction in the tenant’s monthly rent, but a tenant may receive multiple finder fees.
Real Estate Transactions Extend to Mobile Homes
A new law amending A.R.S. §§ 13-2911 and 13-3102 authorizes real estate brokers and licensees to sell manufactured homes and mobile homes located in a mobile home park.
No Standard Eviction Notice Form
A new law passed by the Arizona Legislature prohibits any state agency or court from requiring the use of a state-wide standard Eviction Action form. A landlord should use attorney-drafted forms that follow the statutory requirements for giving an eviction notice.
Real Estate Appraisal Changes
A new law makes changes relating to the regulatory authority over appraisers by the Arizona Department of Financial Institutions’ new Real Estate Appraisal Division, and eliminates the requirement for a supervisory appraiser to personally inspect each appraised property with a registered trainee appraiser.
Non-Profits may Receive HOA Transfer Fees
A new law amends A.R.S. § 33-442 concerning who may receive funds associated with HOA transfer fees. The amendment clarifies the definition of “association” by adding 501(c)(3) and 501(c)(4) nonprofit organizations for the purpose of the exemption from the prohibition on real estate transfer fees. This new law is retroactive to July 29, 2010.
Rights-of-Way for Private Property Access
A new law amending A.R.S. § 33-2401 relates to land owned by the State or a political subdivision of the State (e.g., a county or a municipality) that surrounds private property in such a manner that does not allow for physical access. The State (including the Arizona State Land Department) or any political subdivision, upon the land owner’s request, is required to grant a right-of-way for a term of at least 30 years to provide legal access to the land owner’s private property. The State or any political subdivision has discretion over the appropriate location and width of the right-of-way following reasonable consultation with the private property owner, and the State or political subdivision may also later relocate the right-of-way.
This article is a recap of recent Arizona legislation applying to real estate. It is not meant to be a comprehensive review of all new laws pertaining to real estate. As always, all Arizona legislation, among other factors, will be evaluated by Combs Law Group, P.C. prior to any specific recommendation to any client. For more information on these new laws, or any other real estate query, please do not hesitate to contact us at email@example.com or (602)957-9810.