Arizona Administrative Code Selections

A. All documents shall be considered filed on the date received by the Department. An original or renewal application postmarked on or before the end of the application or renewal deadline shall be considered timely.

B. In computing any period of time allowed by these rules or by an order of the Commissioner, the day of the act, event, and default from which the designated period of time begins to run shall not be included. The last day of the period shall be included unless it is Saturday, Sunday, or a legal holiday in which event the period runs until the end of the next day which is not a Saturday, Sunday, or a legal holiday. When the period of time allowed is less than 11 days, intermediate Saturdays, Sundays, and legal holidays shall be excluded from the computation.

R4-28-103

R4-28-103. Licensing Time-frames

A. Overall time-frame. The Department shall issue or deny a license within the overall time-frames listed in Table 1 after receipt of a complete application. The overall time-frame is the total of the number of days provided for in the administrative completeness review and the substantive review.

B. Administrative completeness review.

1. The applicable administrative completeness review time-frame established in Table 1 begins on the date the Department receives the application. The Department shall notify the applicant in writing within the administrative completeness review time-frame whether the application is incomplete. The notice shall specify what information is missing. If the Department does not provide notice to the applicant, the license application shall be considered complete.

2. An applicant with an incomplete license application shall supply the missing information within the completion request period established in Table 1. The administrative completeness review time-frame is suspended from the date the Department mails the notice of missing information to the applicant until the date the Department receives the information.

3. If the applicant fails to submit the missing information before expiration of the completion request period, the Department shall close the file, unless the applicant requests an extension. An applicant whose file has been closed may obtain a license by submitting a new application.

C. Substantive review. The substantive review time-frame established in Table 1 begins after the application is administratively complete.

1. The Department may schedule an inspection.

2. If the Department makes a comprehensive written request for additional information, the applicant shall submit the additional information identified by the request within the additional information period provided in Table 1. The substantive review time-frame is suspended from the date the Department mails the request until the information is received by the Department. If the applicant fails to provide the information identified in the written request the Department shall consider the application withdrawn unless an extension is granted by the Commissioner by a written request.

3. If the application is denied, the Department shall send the applicant written notice explaining the reason for the denial with citations to supporting statutes or rules, the applicant's right to seek a fair hearing, and the time period for appealing the denial.

D. Renewals. If an applicant for renewal of a salesperson's or broker's license submits a complete renewal application:

1. Before the expiration date and there are no changes in the applicant's license or qualifications pursuant to R4-28-301(A), the Department shall send the applicant notice that the license is renewed;

2. After the expiration date, or if a substantive review is required because the applicant wishes to make changes or has answered in the affirmative to any question on the license questionnaire, the Department shall process the application as a modified or amended application.

R4-28-104

R4-28-104. Fees

A. Licensing Fees.

1. Broker's exam and examination application, $115.00;

2. Broker's license, $125.00;

3. Broker's renewal, $125.00;

4. Broker’s late Renewal pursuant to
A.R.S. 32-2130(C),additional $20.00;
per month fee up to a maximum $120;

5. Salesperson's exam and examination
application fee, $90.00;

6. Salesperson's license, $60.00;

7. Salesperson's renewal, $60.00;

8. Salesperson's late renewal pursuant to
A.R.S. 32-2130(C), additional $10.00 per month fee up to a maximum $60;

9. Branch office license,

a.12 months or less, $35.00;

b.13 to 24 months, $50.00;

c.Renewal, $50.00;

10. Change of name or address, $10.00;

11. Temporary broker's license, $50.00;

12. Temporary cemetery salesperson's license, $50.00;

13. Membership camping salesperson’s certificate of
convenience, $50.00.

B. Development fees.

1. Public Report, $500.00;

Subdivision public report, amended, $250.00;

Unsubdivided land public report, amended, $500.00;

Membership camping public report
amended/renewal, $300.00;

Timeshare Exemption, $300.00;

2. Time-share public report (per interval,
maximum $1,000), $20.00;

3. Membership camping lottery or drawing
application, $250.00;

4. Cemetery Certification, $500.00;

Cemetery Amendment, $500.00;

5. Conditional Sales Exemption, $100.00;

6. Special Order of Exemption, $100.00.

C. A fee shall be charged for a development site inspection pursuant to A.R.S. §§ 32-2182, 32-2194.02, 32-2195.02, 32-2197.05, and 32-2198.04, before or after issuance of a public report. Multiple inspections and fees may be required based on development circumstances.

Table 1. Time-frames (Calendar Days)

License

Authority

Administrative

Completeness

Review

Response to Completion Request

Substantive

Review

Response to

Additional

Information

Overall

Time-frame

Broker and Salesperson

(Individual)

Renewal (without change)

Modified/Amended

Corp/LLC/Partnership/ PC/PLC

Renewal (without change)

Modified/Amended

Temporary Broker

Temp Cemetery Salesperson

Membership Camping Cert. of Convenience

Branch Office

A.R.S. § 32-2122

A.A.C. R4-28-301

A.A.C. R4-28-302

A.A.C. R4-28-303

A.R.S. § 32-2125

A.A.C. R4-28-301

A.A.C. R4-28-303

A.R.S. § 32-2133

A.R.S. § 32-2134

A.R.S. § 32-2134.01

A.A.C. R4-28-305

A.R.S. § 32-2127

120

School Approval

A.R.S. § 32-2135(A)

A.A.C. R4-28-404

Course Approval:

New

A.R.S. § 32-2135

A.A.C. R4-28-404

Instructor Approval

A.R.S. § 32-2135

A.A.C. R4-28-404

ADVERTISING

Membership Campground (only for lottery or drawing)

Subdivision

(only for drawing or contest)

Time-Share

(only for drawing or contest)

Time-Share

(the offer of a premium)

A.R.S. § 32-2198.10(D)

A.R.S. § 32-2198.14

A.A.C. R4-28-503(D)

A.R.S. § 32-2183.01(I)

A.A.C. R4-28-503(D)

A.R.S. § 32-2197.11(I)

A.A.C. R4-28-503(D)

A.R.S. § 32-2197.11(K)

A.A.C. R4-28-503(D)

Development Application

Amended Report

Certificate of Authority

Amended Certificate

A.R.S. § 32-2183(A)

A.R.S. § 32-2195.03(A)

A.R.S. § 32-2197.06

A.R.S. § 32-2198.02

A.A.C. R4-28-B1203

A.R.S. § 32-2184

A.R.S. § 32-2195.10

A.R.S. § 32-2197.03

A.R.S. § 32-2198.01(D)

A.A.C. R4-28-B1203

A.R.S. § 32-2194.03(A)

A.R.S. § 32-2194.10

A.A.C. R4-28-B1204

WAIVERS

Pre-license

Continuing Education

A.R.S. § 32-2124

A.A.C. R4-28-401

A.R.S. § 32-2130

A.R.S. R4-28-402

EXEMPTIONS

Subdivision

Unsubdivided Land

Time-Share

Membership Camping

A.R.S. § 2181.01

A.A.C. R4-28-B1202

A.R.S. § 32-2195.01

A.A.C. R4-28-B1202

A.R.S. § 32-2197.13

A.R.S. § 32-3198.03

R4-28-503

R4-28-503. Promotional Activities

A. Licensees shall not describe a premium offered at no cost or reduced cost to promote sales or leasing as an "award," or "prize," or use a similar term.

B. The terms, costs, conditions, restrictions, and expiration date of an offer of a premium shall be clearly disclosed in writing before the offeree participates in the offer.

C. Unless otherwise provided by law, a person shall not solicit, sell, or offer to sell an interest in a development by conducting a lottery contest, drawing, or game of chance to influence a purchaser or prospective purchaser.

D. A subdivider, time-share developer, or membership camping operator may apply for approval to conduct a lottery, contest, drawing, or game of chance by submitting to the Department, the information required in A.R.S. §§ 32-2183.01(I), 32-2197.11(I) or 32-2198.10(D), the applicable fee, if any, and:

1. The name, address, telephone number, and fax number, if any, of the subdivider, time-share developer, or operator;

2. The legal name of the broker;

3. The public report number;

4. The time and location for collecting entries for the lottery, contest, or drawing;

5. The date, time, and site for selection of a winner; and

6. The conditions and restrictions to enter, if any.

R4-28-504

R4-28-504. Development Advertising

A. If the developer has obtained a conditional sales exemption, pursuant to R4-28-B1202, or registers a notice of intent with the Department to accept lot reservations pursuant to A.R.S. § 32-2181.03, the developer shall disclose on all advertising that only reservations or conditional sales contracts will be taken until the public report has been issued.

B. Only a developer or the developer's authorized representative shall file advertising for a development with the Department.

C. Any advertisement of property in a development shall include the name of the development as registered with the Department. The Commissioner may waive application of this subsection if the Commissioner determines that the public interest is not affected.

D. A developer shall not advertise a monthly payment, total price, or interest rate not available to all prospective purchasers or restricted, is prohibited unless the lack of availability or the restriction is conspicuously disclosed within the advertisement to all prospective purchasers.

E. A developer shall not advertise proposed or incomplete improvements unless both subsections (E)(1) and (2) have been met:

1. The estimated date of completion is specified or, if there is no estimated date of completion, a prominent disclosure is made in the advertisement that the improvement is proposed only and no warranty is given or implied that the improvement will be completed.

2. If a completion date is specified, sufficient evidence has been presented to the Department that the completion and operation of the facilities are assured and that completion will be within the time represented in the advertisement or promotional material.

F. Reference to a proposed public facility or project that purports to affect the value or utility of an interest in a development shall not be made without written disclosure of the existing status of the proposed facility. The disclosure shall be based upon information supplied or verified by the authority responsible for the public facility or project and forwarded to the Department.

G. Pictorial or illustrative depictions, other than unmodified photographs of the property being offered, shall bear a prominent disclosure identifying the nature of the depiction, such as an artist's conception, and shall identify those improvements that are proposed and not in existence.

H. When a pictorial representation is used in an advertisement for a specific development and is not an actual or accurate representation of the property, a statement within the advertisement shall prominently disclose the distance of the pictorial representation from the advertised property.

I. If a map or diagram is used to show the location of the development in relation to other facilities, actual road miles from each facility to the development shall be shown on the map or diagram.

J. A developer shall not express or imply that a facility is available for the exclusive use of purchasers of lots or interests if a public right of access or public use of the facility exists.

K. A developer shall not refer to availability for use of private clubs or facilities in which the owner will not acquire a proprietary interest through purchase of an interest in the development unless a disclosure is made in the advertisement. The disclosure shall verify the existence of the facilities, indicating that availability for use by owners of an interest in the development is at the pleasure of the owners of the facility.

L. When a standing body of water is described as a feature of a development, all advertising shall indicate the average surface area of the body of water. If a standing body of water or a flowing waterway described as a feature of a development is not permanent, or fluctuates substantially in size or volume, the developer shall disclose this fact in all advertisements describing the feature.

M. When any incentive is offered to visit any place where a sales presentation for a development is to be made, the developer shall disclose in writing all conditions, limitations, or recipient qualifications that will be applied before the recipient makes the trip.

N. Advertising shall not include testimonials or endorsements which contain statements that a licensee would be precluded, by law or rule, from making on the licensee's behalf.

R4-28-701

R4-28-701. Compensation Sharing Disclosure

A real estate broker shall disclose to all the parties in the transaction, in writing before closing, the name of each employing broker who represents a party to the transaction and who will receive compensation from the transaction.

R4-28-802

R4-28-802. Conveyance Documents

A. Upon execution of any transaction document, a salesperson or broker shall, as soon as practical, deliver a legible copy of the signed document and final agreement to each party signing the document.

B. During the term of a listing agreement, a salesperson or broker shall promptly submit to the salesperson’s or broker’s client all offers to purchase or lease the listed property. Upon receiving permission from the seller or lessor, the salesperson or broker acting on behalf of the seller or lessor may disclose to all offerors or their agents the existence and terms of all additional offers on the listed property. The salesperson or broker shall submit to the client all offers made prior to closing and is not released from this duty by the client's acceptance of an offer unless the client instructs the salesperson or broker in writing to cease submitting offers or unless otherwise provided in the listing agreement, lease, or purchase contract. The salesperson or broker may voluntarily submit offers to the seller or lessor regardless of any limitations contained in the listing agreement and may submit offers after the listing agreement is terminated.

C. Transaction statements. In addition to the requirements of A.R.S. §§ 32-2151.01 and 32-2174, the broker shall retain true copies of all receipts and disbursements, or copies of the executed and delivered escrow closing statements that evidence all receipts and disbursements in the transaction.

R4-28-803

R4-28-803. Contract Disclosures

A. Any agreement or contract for the sale or lease of a property interest in a development that requires a public report shall contain substantially the following language in bold print or print larger than the other print used in the document above the signature portion of the document:

THE PURCHASER SHALL BE GIVEN A COPY OF THE PUBLIC REPORT BEFORE SIGNING THIS DOCUMENT.

B. Any agreement or contract for the sale or lease of a property interest in a development shall conspicuously disclose the nature of the document at or near the top of the document.

C. The contract shall indicate where the earnest money or down payment, if any, will be deposited and shall include the name of the title company, the name of the broker's trust account, or other depository.

D. Any agreement or contract for the sale or lease of a property interest in a development where a down payment, earnest money deposit, or other advanced money, if any, is paid directly to the seller and not placed in a neutral escrow depository, shall conspicuously disclose this fact within the document, and the purchaser shall sign or initial this provision indicating approval in the space adjacent to or directly below the disclosure in the purchase contract or agreement of sale. The following disclosure shall be written in large or bold print and shall be included in the public report, purchase contract, and agreement of sale.

Prospective purchasers are advised that earnest money deposits, down payments, and other advanced money will not be placed in a neutral escrow. This money will be paid directly to the seller and may be used by the seller. This means the purchaser assumes a risk of losing the money if the seller is unable or unwilling to perform under the terms of the purchase contract.

R4-28-804

R4-28-804. Rescission of Contract

A. Any agreement or contract for the purchase or lease of an unimproved subdivided lot, or any unsubdivided land, shall contain substantially the following language in bold print or print larger than the other print used in the document above the signature portion of the document:

The purchaser or lessee has the legal right to rescind (cancel) this agreement without cause or reason of any kind, and to the return of any money or other consideration by sending or delivering a written notice of rescission to the seller or lessor by midnight of the 7th calendar day following the day the purchaser or lessee executed the agreement. If the purchaser or lessee does not inspect the lot or parcel before the execution of the agreement, the purchaser or lessee shall have six months to inspect the lot or parcel, and at the time of inspection shall have the right to unilaterally rescind the agreement.

B. Any agreement or contract for the purchase or lease of a time-share interval shall contain substantially the following language in bold print or print larger than the other print used in the document above the signature portion of the document:

The purchaser or lessee has the legal right to rescind (cancel) this agreement without cause or reason of any kind by sending or delivering a written notice of rescission to the seller or lessor by midnight of the 7th calendar day following the day the purchaser or lessee executed the agreement.

C. An opportunity to exercise the 7 day right of rescission shall be provided by conspicuously disclosing the complete current name, address, and telephone number of the seller on the face of all agreements and contracts.

R4-28-805

R4-28-805. Public Report Receipt

When a public report is required, the developer shall complete the following public report receipt and obtain the purchaser's signature to verify that the prospective purchaser has received a copy of the public report:

PUBLIC REPORT RECEIPT

The developer shall furnish you, as a prospective customer, with a copy of the public report required by the Arizona Department of Real Estate. It is recommended that you read the report before you make any written offer to purchase or lease an interest in the development and before you pay any money or other consideration toward the purchase or lease of an interest in the development.

FOR YOUR PROTECTION, DO NOT SIGN THIS RECEIPT UNTIL YOU HAVE RECEIVED A COPY OF THE REPORT AND HAVE HAD THE OPPORTUNITY TO READ IT. BY SIGNING THIS RECEIPT, THE BUYER HAS ACCEPTED THE PUBLIC REPORT AND ACKNOWLEDGES THE INFORMATION IT CONTAINS.

_____________________ ______________________

Public Report Registration No. Development Name and Lot No.

I understand the report is not a recommendation or endorsement of the development by the Arizona Department of Real Estate, but is for information only.

_____________________ ______________________

Buyer's Name Address

_____________________ ______________________

Date

R4-28-A1201. Development Name; Lot Sales; Applicant

A. Any person may submit a development application for a public report, a certificate of authority, or a special order of exemption, provided the applicant has a recorded ownership interest in the land, such as a deed, option, beneficial interest in a trust, or other recorded interest approved by the Commissioner. The application for a public report or certificate of authority shall contain the following information, as applicable:

1. The name of the development or cemetery, as shown on the recorded map, and the marketing name if 1 will be used;

2. The list of the lots to be offered, including the description of the sales offering;

3. The name, address, telephone number, and fax number, if any, of the applicant; and

4. The applicable information in this Article, Parts A and B.

B. If the applicant is a corporation, the application shall contain the following information:

1. A Certificate of Good Standing from the Arizona Corporation Commission, dated no earlier than 1 year from the date of the application;

2. A corporate resolution, authorizing the person signing the application on behalf of the corporation; and

3. The name and address of each officer, director, and shareholder controlling or holding more than 10% of the issued and outstanding common shares, or 10% of any other proprietary, beneficial, or membership interest in the entity.

C. If the applicant is a partnership, the application shall contain the following information:

1. A copy of all partnership agreements;

2. Proof of registration with the Secretary of State if any partnership is a limited partnership, foreign or domestic;

3. If the general partner is a corporation, the information requested in subsection (B);

4. If the general partner is a limited liability company, the information requested in subsection (D); and

5. The name and address of each partner in the partnership.

D. If the applicant is a limited liability company, the application shall contain the following information:

1. A copy of the Articles of Organization, stamped "Received and Filed" by the Arizona Corporation Commission. If more than 1 year has elapsed between the original filing with the Arizona Corporation Commission and the filing date of the development application, a Certificate of Good Standing from the Arizona Corporation Commission is required;

2. A copy of the operating agreement and any amendments;

3. If not included in the operating agreement or Articles of Organization, a copy of the company resolution signed by all members stating whether management of the limited liability company is established as manager-controlled or member-controlled and the name of the member or manager appointed to act on behalf of the company and sign the application;

4. The name and address of each member, manager, and managerial employee, and the name and address of any person controlling or holding more than 10% of the membership interest in the limited liability company;

5. If a member is a corporation, the information requested in subsection (B);

6. If a member is a partnership, the information requested in subsection (C).

E. If the applicant is a trust, the application shall contain the name and address of each trustee, beneficiary, and anyone in control of the trust.

F. If the applicant is a subsidiary corporation, the application shall contain the name and address of the parent corporation.

R4-28-A1202

R4-28-A1202. Development Map; Location; Land Characteristics

A. The applicant shall submit a legible copy, no larger than 11" x 17", of the recorded development map showing, as applicable:

1. The county recorder's recording information, including the book and page of maps and recording date;

2. County or city approval;

3. Applicable dedications;

4. Monuments, distances, and bearings; and

5. Registered land surveyor certification.

B. The applicant shall identify the location of the development, including the street, city, county, and state, and:

1. The miles and direction from the nearest city or town, if applicable; and

2. The most direct route for getting to the development from a federal, state, county, or city road.

C. The application shall include a description of the physical characteristics of the land and any unusual factors that may affect it, such as if it has level or hilly terrain, rocky, loose, or alkaline soil, and

1. The gross acreage of the development;

2. The total number of lots within the development, including a description of phasing, if applicable; and

3. Whether and how lots are permanently or temporarily staked or marked for easy location.

R4-28-A1203

R4-28-A1203. Flood and Drainage; Land Uses; Adverse Conditions

The applicant shall state, or include as applicable:

1. Whether the development is subject to any known flooding or drainage problems and a letter bearing the signature and seal of a professional civil, city, and county engineer, or county flood district detailing the drainage conditions and flood hazards. The letter shall include the effect of any flood plain and its location, the effect of a 100 year frequency storm, and whether flood insurance is required.

2. Whether the development lots are subject to subsidence or expansive soils. If subsidence or expansive soils exist, a professional engineer's letter addressing the effects of the condition, remedies, and a buyer's on-going responsibilities in plain language;

3. A description of the existing and proposed land uses in the vicinity of the development that may cause a nuisance or adversely affect lot owners, such as freeways, airports, sewer plants, railroads, and canals, including:

a. Any unusual safety factors within or near the development, and

b. A description of all current and proposed adjacent land uses.

4. Whether the development is affected by any unusual or unpleasant odors, noises, pollutants, or other nuisances;

5. A description of any agricultural activity or condition in the area that may adversely affect a lot owner, including any odors, cultivation and related dust, agricultural burning, application of pesticides, or irrigation and drainage;

6. Whether the development lots are subject to any known geological or environmental condition that would or may be detrimental to a purchaser's health, safety, or welfare; or

7. Whether the development lots are located within the boundary of a federal, designated Superfund site or a state designated Water Quality Assurance Revolving Fund site.

R4-28-A1204

R4-28-A1204. Utilities

The applicant shall include information about electrical, telephone, and natural gas utilities available to the development, including:

1. The names, addresses, and telephone numbers of the electrical, telephone, and natural gas company that will provide service;

2. The location of existing electrical, telephone, and natural gas utilities in relation to the development;

3. The name of each person responsible for extending each utility to the lot lines;

4. The estimated completion date for extending each utility to the lot lines;

5. If the developer will only install conduit, a description of the arrangement made to complete operational utilities to lot lines;

6. The estimated cost a lot purchaser will be required to pay for completion of each utility to the purchaser's lot line, and, if the offer is for unimproved lots, the estimated costs to provide service from the lot line to the dwelling;

7. Upon completion of the utilities, other costs or requirements that must be addressed before the lot purchaser receives service, including the current service charges, hookup fees, turn-on fees, meter fees, and fees for pulling wire through conduit;

8. If propane gas will be used, a letter from the supplier stating that it will be providing service to the development, with a description of requirements to be met and costs to be paid by the lot purchaser for receiving the service; and

9. If street lights will be available, the person responsible for completion, the estimated completion date and the person who will pay for the electricity.

R4-28-A1205

R4-28-A1205. Water Supply

An applicant shall include information about any water supply to the development, including:

1. The type of water provider such as a municipal system, improvement district, public utility, private water company, co-operative, irrigation district, private well, water hauler, or other source;

2. The name, address, and telephone number of the water provider;

3. The compliance status of the water provider with federal and state environmental laws, as of the date of the application. If in noncompliance, provide an explanation;

4. The location of the water lines closest to the development;

5. The name of the person responsible for extending the water lines to the lot lines;

6. The estimated completion date for extending the water lines to the lot lines;

7. The estimated cost a lot purchaser will be required to pay for completion of the water lines to the purchaser's lot line;

8. The estimated cost a lot purchaser will pay for completion of water lines from the lot line to a dwelling;

9. Other costs or requirements before the lot purchaser receives water service, including the current service charges, hookup fees, turn-on fees, meter fees, and development fees;

10. The name of the person responsible for maintenance of the water lines within the development, other than from lot line to dwelling;

11. The name of the person who is or will be responsible for maintenance of the water lines outside the development;

12. If a private well will be used, a description of the requirements and costs involved to install an operational domestic water system;

13. If the source of water is a private well and domestic water cannot be obtained from a private well, whether the purchaser will be offered a refund of the purchase price and if so, an explanation of any condition or restriction involving the refund;

14. The name and location of the water provider if domestic water will be transported or hauled by the lot purchaser. A cost estimate computed on a monthly basis for a 4-member family, including the cost of water, cistern, and other holding tanks, pumps, or any other costs necessary to install an operational water system;

15. A water adequacy report from ADWR if the development is a subdivision or part of a subdivision located outside of a groundwater active management area;

16. A water availability report from ADWR if the development is unsubdivided land. A copy of the report or a brief summary of the report, approved by the Department, shall be displayed in all promotional material and contracts for sale; and

17. If a water provider is a public service corporation, whether a Certificate of Convenience and Necessity from the Arizona Corporation Commission has been issued and, if not, an explanation of why a Certificate has not been issued.

R4-28-A1206

R4-28-A1206. Sewage Disposal

The applicant shall include information about sewage disposal for the development, including:

1. Whether the sewage disposal will be provided by a municipality, improvement district, public utility, private company, or individual sewage disposal system;

2. The name, address, and telephone number of the sewage disposal company;

3. The compliance status of the sewage disposal provider with the ADEQ as of the date of the application. If in noncompliance, provide an explanation;

4. The name of the person responsible for extending the sewage disposal utility to the lot lines;

5. The estimated completion date for extending the utility to the lot lines;

6. The estimated cost the lot purchaser will be required to pay for completion of the utility to the purchaser's lot line;

7. If offering an unimproved lot, the estimated cost a lot purchaser will pay for completion of the utility from the lot line to the dwelling;

8. Upon completion of the utility, other costs or requirements that must be addressed before the lot purchaser receives service, including the service charge, hookup fees, tap-in fees, and development fees;

9. The name of the person responsible for maintenance of the sewage disposal utility within the development, other than from lot line to dwelling;

10. The name of the person who is or will be responsible for maintenance of the sewage disposal utility outside the development;

11. What cost, if any, will the lot purchaser pay toward maintenance of the sewage disposal utility;

12. If a sewage disposal provider is a for-profit public service corporation, whether a Certificate of Convenience and Necessity from the Arizona Corporation Commission has been issued, and if not, an explanation of why a Certificate has not been issued;

13. A description of the type of individual sewage disposal system the lot purchaser will be required to install in accordance with the standards and requirements of ADEQ or its designee;

14. A description of all requirements and costs involved to install an operational individual sewage disposal system, including any cost for governmental licensing and permitting, equipment, and other installation, maintenance, and operation costs;

15. If an operational individual sewage disposal system cannot be installed, will the lot purchaser be offered a refund of the purchase price, and if so, an explanation of any condition or restriction involving the refund; and

16. If a dry sewer system will be installed for future connection to a future provider, the name of the future provider, all requirements and costs for lot purchasers, and the estimated connection date.

R4-28-A1207

R4-28-A1207. Streets and Access

A. The applicant shall include a statement attesting that:

1. Exterior streets providing access are private; or federal, state, and county highways; or municipal streets;

2. The interior streets are public or private; and

a. If any streets are private, a description of what provisions have been made to assure purchasers of a legal right to use the private streets;

b. Whether the streets are completed;

c. The standards to which the streets will be or are constructed;

d. If the streets are not completed, the person responsible for completion and the estimated completion date;

e. The type of existing and proposed surfacing;

f. The cost, if any, the lot purchaser will pay toward street completion;

g. The name of the person responsible for exterior and interior street maintenance;

h. Whether a city or county is responsible for maintaining the streets and the approximate date when streets will be accepted for maintenance; and

i. The cost, if any, the lot purchaser will pay toward street maintenance.

B. The applicant shall demonstrate that there is permanent access to the land over terrain that may be traversed by conventional 2-wheel drive automobiles and emergency vehicles by providing any of the following information or documents necessary to make the demonstration:

1. A statement from a title insurance company, signed by an authorized title officer, affirming that legal access exists to the development and lots within the development. The statement shall:

a. Describe the legal access by listing all recorded instruments which establish legal access,

b. Be accompanied by a map on which legal access is shown with accurate references to the recorded instruments,

c. Be accompanied by a legible copy of each recorded instrument listed in the statement.

2. A statement bearing the seal and signature of a registered land surveyor or professional engineer, affirming that legal access to and within the development, as described in the title insurance company legal access statement, is over terrain that can be traversed by conventional 2-wheel drive automobiles and emergency vehicles. The statement shall affirm that:

a. The legal access corresponds with the actual physical access to the development and to the lots,

b. The legal access is permanent and describe how that permanence is assured.

3. The recorded subdivision map which shows approval by the applicable city or county officials.

4. Recorded easements or road dedications whether public or private. If private, the applicant shall ensure that development lot owners, emergency vehicles, and utility service providers have access rights.

5. Land, on which easements and roads are provided, is traversable by conventional 2-wheel drive automobiles and emergency vehicles.

6. Road maintenance programs that assure permanent access. Road maintenance programs include those administered by city or county governments, city or county improvement districts, or private property owner associations.

7. Recorded documentation that establishes legal and permanent access for development lot owners through federal or state lands.

R4-28-A1208

R4-28-A1208. Flood Protection and Drainage Improvements

The applicant shall include with the application the following information about flood protection and drainage improvement:

1. A description of any current or proposed improvement;

2. The name of the person responsible for completion of the improvement;

3. The estimated completion date of the improvement;

4. The cost, if any, the lot purchaser will pay for completion of the improvement;

5. The name of the person responsible for the continuing maintenance and expense of the improvement;

6. If a city or county is responsible for maintenance, the approximate date when the improvement will be accepted for maintenance; and

7. The cost, if any, the lot purchaser will pay toward completion and maintenance of the improvement.

R4-28-A1209

R4-28-A1209. Common, Community, or Recreational Improvements

The applicant shall provide with the application a list of all common, community, or recreational improvements, located within the development, and include the following information:

1. The name of the person responsible for completion of each improvement;

2. The estimated completion date of each improvement;

3. The estimated cost a lot purchaser will be required to pay for the completion of each improvement;

4. The name of the person responsible for the continuing maintenance and expense of each improvement; and

5. The cost, if any, the lot purchaser will be responsible for paying toward the maintenance of each improvement.

R4-28-A1210

R4-28-A1210. Master Planned Community

The applicant shall include the following information about a master planned community:

1. A list of all improvements located outside the development, but included in the development offering, including all common, community and recreational improvements;

2. The name of the person responsible for completing each improvement;

3. The estimated completion date of each improvement;

4. The name of the person responsible for the continuing maintenance and expense of each improvement; and

5. The cost, if any, the lot purchaser will pay toward the completion and maintenance of each improvement.

R4-28-A1211

R4-28-A1211. Assurances for Completion and Maintenance of Improvements

A. The applicant shall identify:

1. Whether arrangements have been made to assure the completion, delivery, and continued maintenance of the improvements listed in subsections R4-28-A1204 through R4-28-A1210 (<<Scroll up<<); and

2. Whether the assurances to complete and deliver the improvements have been approved by the county or city, where applicable, and if so, submit a copy of the county or city approval;

B. An applicant shall provide 1 or more of the following assurances for completion:

1. A surety or completion bond from an insurance company licensed in Arizona with a rating of good or higher from a rating agency and a copy of the rating. The bond shall specify which improvements are included and shall:

a. Be stipulated by and payable to a 3rd party who is not the developer;

b. Be accepted and signed by all parties;

c. Include an expiration date not less than 90 days beyond the last improvement estimated completion date;

d. State when and how the 3rd party may draw on the funds;

e. Be in an amount 10% greater than the estimated amount to complete all improvements; and

f. Include a registered engineer's, architect's, or contractor's cost estimate to complete the improvements.

2. An irrevocable letter of credit from a financial institution licensed to do business in Arizona. The irrevocable letter of credit shall specify which improvements are included and shall:

a. Be stipulated by and payable to a 3rd party who is not the developer;

b. Be accepted and signed by all parties;

c. Include an expiration date not less than 90 days beyond the last improvement estimated completion date;

d. State when and how the 3rd party may draw on the funds;

e. Be in an amount 10% greater than the estimated amount to complete all improvements;

f. Include a registered engineer's, architect's, or contractor's cost estimate to complete the improvements;

g. State that repayment is the responsibility of the developer and not of the 3rd party; and

h. State that the irrevocable letter of credit is noncancelable.

3. A loan commitment and agreement from a lender licensed in Arizona. The loan commitment and agreement shall specify which improvements are included and shall:

a. Be stipulated by and payable to a 3rd party who is not the developer;

b. Be accepted and signed by all parties;

c. Include an expiration date not less than 90 days beyond the last improvement estimated completion date;

d. State when and how the 3rd party may draw on the funds;

e. Be in an amount 10% greater than the estimated amount to complete all improvements;

f. Include a registered engineer's, architect's, or contractor's cost estimate to complete the improvements; and

g. State that repayment is the responsibility of the developer and not of the 3rd party even if the 3rd party draws on the funds.

4. A trust or escrow account with a financial institution or escrow company licensed in Arizona. The trust or escrow account shall specify which improvements are included and shall:

a. Be stipulated by and payable to a 3rd party who is not the developer;

b. Be accepted and signed by all parties;

c. Include an expiration date not less than 90 Days beyond the last improvement estimated completion date;

d. State when and how the 3rd party may draw on the funds;

e. Be in an amount 10% greater than the estimated amount to complete all improvements;

f. Include a registered engineer's, architect's, or contractor's cost estimate to complete the improvements; and

g. Directly pay for the improvements completed or release funds to the developer upon written verification from a registered engineer that the improvements have been completed in accordance with the plan.

5. City and county trust agreement. A municipal or county government may enter into an assurance agreement with a trustee to hold a lot conveyance until improvements are completed:

a. The trustee is an escrow company licensed in Arizona, and

b. The agreement is recorded.

6. Written escrow agreement. A developer may enter into a written escrow agreement with a title insurance company or escrow company to escrow all funds and prohibit close of escrow until all improvements are complete. The agreement shall contain the following stipulations:

a. The funds are not released nor the purchaser's deed or other relevant documents recorded until the developer's architect or engineer certifies to the Department and the escrow agent that the project is complete, ready for occupancy, and in compliance with all city and county requirements;

b. If the completion date is not met:

i. The developer will give purchasers notice that completion dates were not met and an updated completion schedule,

ii. A purchaser may, within 30 days of receiving the notice specified in subsection (B)(6)(b)(i), cancel and receive a full refund by sending written notice to the escrow agent,

iii. The public report is invalid and all sales are suspended; and

iv. The Department considers the public report valid if improvements are completed at a later date and the public report is complete and accurate.

7. Subdivision assurances. The municipal or county government shall prohibit occupancy and an subdivider shall not close escrow on lots sold in a subdivision until all proposed or promised subdivision improvements are complete.

a. The subdivider shall submit an agreement or copy of the ordinance from the city or county prohibiting occupancy until all proposed or promised subdivision improvements are complete.

b. If improvements are completed in phases, the subdivider shall submit complete details of the phasing program, including approval of the phasing by the city or county and the completion schedule for the phases to the Department.

c. The subdivider shall submit a written statement that no escrow will close on any lot until all subdivision improvements are complete. If a lot is within a phase of the subdivision where all improvements are complete and can be used and maintained separately from the improvements required for the entire subdivision the escrow may be closed.

d. The subdivider shall submit a copy of the subdivider's purchase contract containing in large or bold print the condition that escrow will not close until the city or county issues its occupancy clearance and all subdivision improvements are complete.

e. Any improvement offered or promised to a purchaser that is scheduled for completion in a later phase of completion shall have its completion assured by an alternative method of assurance listed in this Section.

f. If the subdivider's sales include unimproved (vacant) lots, the subdivider shall deposit all earnest money into a neutral escrow depository until escrow closes.

8. Any other assurance satisfactory to the Department that is not listed in subsections (B)(1) through (B)(7).

C. If the construction of any improvement is completed in phases, the applicant shall provide a description of the phased schedule of completion, including the lots in each phase and estimated completion dates.

R4-28-A1212

R4-28-A1212. Schools and Services

A. The applicant shall include the following information about schools:

1. The location of and distance to the nearest public elementary, junior, and high schools and whether school bus or other transportation is available;

2. The type and location of any other school located within a 1/2 mile radius of the exterior boundaries of the development.

B. The applicant shall include the following information about services:

1. Community shopping. The location and distance from the development of the nearest community shopping area where food, drink, and medical supplies may be purchased;

2. Public transportation. The type, provider, location, and distance to the nearest access point to public transportation for the development;

3. Medical facility. The type, provider, location, and distance to the nearest medical facility;

4. Fire protection. Whether fire protection is available to the development, the name of the provider and the cost to the lot purchaser;

5. Ambulance service. Whether ambulance service is available to the development and whether the development is in a 911 service area. If 911 service is not available, the name, address, and telephone number of the ambulance service.

6. Police service. Whether police service is available to the development, and the name of the provider;

7. Refuse collection. Whether provisions have been made for refuse collection, the name of the service provider, and the cost to the lot purchaser. If no provisions have been made, what a buyer will do to dispose of refuse.

R4-28-A1213

R4-28-A1213. Property Owners' Association

The applicant shall provide the following information about a property owner's association:

1. The name of the association, if any;

2. The name of the master property owners' association, if any;

3. The amount of the association assessment that property owners will be required to pay, and how it will be paid;

4. Whether the association is legally formed and operational;

5. When and under what conditions control of the association will be released to lot purchasers;

6. When and under what conditions title to the common areas will be transferred to the association;

7. Whether the common areas are subject to any lien or encumbrance. If yes, explain how purchasers' use and enjoyment of common areas will be protected in the event of default;

8. Whether all lot owners will be required to be members of the association. If not, explain;

9. Whether nonmembers will be liable for payments to the association; and

10. A copy of the Articles of Incorporation and Bylaws in effect.

R4-28-A1214

R4-28-A1214. Development Use

The applicant shall provide the following information about development use:

1. Whether unimproved (vacant) lots or improved (with building) lots will be sold or leased;

2. The use for which development lots will be offered and an identification of the lots and their proposed use if more than 1 use is contemplated;

3. Whether the development or any lot is subject to adult occupancy or age restrictions;

a. If yes, explain the restriction;

b. If yes, explain whether this restriction is in compliance with the Federal Fair Housing Act.

4. Whether all or any portion of the development is located in an open range or area in which livestock may roam at large under the laws of this State and what provisions, if any, have been made for the fencing of the development to prevent livestock from roaming within the development and on a purchaser's lot. If land is located in an open range or area in which livestock may roam at large, the purchase contract shall contain:

a. Any provisions for the fencing of the development to prevent livestock from roaming within the development; and

b. Any fencing requirements for the buyers to prevent livestock from roaming on their property.

5. Whether mineral rights are, or will be, reserved from the development lots and what the effect will be on lot owners if the minerals are extracted from the development; and

6. A full written disclosure of any condition or provision not specified in subsections (1) through (5) that may limit the use or occupancy of the property.

R4-28-A1215

R4-28-A1215. Development Sales

The applicant shall provide a description of the sales offering and:

1. A description of how sales or leases will be made and the manner by which title, right, or other interest is to be conveyed to the purchaser, including copies of sales and lease transaction documents;

2. Indicate whether cash sales are allowed and when the purchaser takes title;

3. Indicate where the purchaser's deposit and earnest monies will be deposited and held;

4. If the deposit monies are available for use by the seller, when and under what conditions the monies will be released;

5. Indicate when the lot purchaser will be permitted to use and occupy the lot;

6. An explanation if the purchaser will not receive title free and clear of all liens;

7. The estimated average sales price for the lots;

8. Indicate whether any of the property will be leased, and if so;

a. Provide a description of any provision for increase of rental payments during the term of the lease and any provisions in the lease prohibiting assignment or subletting, or both;

b. Indicate whether the lease prohibits the lessee from mortgaging or otherwise encumbering the leasehold; and

c. Indicate whether the lessee is permitted to remove an improvement when the lease expires.

9. The name, address, and telephone number of the Arizona broker who will be responsible for sales. If none, explain why;

10. The name and telephone number of the custodian of the development records and the physical location where the records will be kept;

11. Indicate whether the property has been or will be offered for sale before the date of the development application. If yes, explain; and

12. Indicate whether the sales documents contain all contract disclosures required by rule and statute.

R4-28-A1216

R4-28-A1216. Title Reports and Encumbrances

The applicant shall provide the following information concerning title reports and encumbrances:

1. Copies of any unrecorded liens or encumbrances against the property;

2. A title report showing:

a. An effective date not more than 30 days before Department receipt. The Department may request that the applicant update the title report so that it is not more than 30 days old when the public report is issued;

b. A legal description based upon a recorded map, condominium or timeshare declaration. Metes and bounds legal descriptions shall be used only for membership camping application title reports;

c. The applicant's interest in the property;

d. The name and telephone number of the person who prepared the title report;

e. A requirement page, if applicable; and

f. The following statement after the title exceptions: "There are no further matters of record affecting the land."

3. Legible copies of all recorded and unrecorded documents reflected by the title report, or known to applicant, such as restrictions, easements, liens, encumbrances, trust agreements, options, and maps.

R4-28-A1217

R4-28-A1217. ADEQ Approval

The applicant shall obtain subdivision approval from ADEQ or its designee.

R4-28-A1218

R4-28-A1218. Property Registrations in Other Jurisdictions

The applicant shall provide a list of the jurisdictions where a property registration was filed with or accepted by another department of real estate or similar regulatory agency.

R4-28-A1219

R4-28-A1219. Condominium Developments

The applicant shall provide the following information about condominium developments:

1. A copy of the recorded condominium declaration, map, and amendments in effect, and

2. An opinion letter from an attorney licensed to practice in Arizona, stating that the condominium plat and declaration of condominium are in compliance with the requirements of A.R.S. §§ 33-1215 and 33-1219.

R4-28-A1220

R4-28-A1220. Foreign Developments

A. Unless exempt pursuant to A.R.S. § 32-2181.02, an applicant shall ensure that any development located outside the state that is advertised, promoted, or sold within the state complies with all Arizona laws and rules as if the land was located in the state.

B. Any law or rule that is specific to Arizona may be waived by the Department, or the Department may request and accept the domicile state or country's equivalent form of documentation.

C. The applicant shall provide evidence that the domicile state or country has authorized the sale of lots and that the development is in compliance and good standing. If the domicile state or country issues a public report or equivalent, the application shall include the report.

R4-28-A1221

R4-28-A1221. Cemetery Developments

The applicant shall provide the following information about cemetery developments:

1. A statement that there are no liens on the cemetery property,

2. An accounting of the endowment care fund for an existing perpetual care cemetery, and

3. A financial statement of the applicant.

R4-28-A1222

R4-28-A1222. Membership Camping Developments

The applicant shall provide the following information about a membership camping development:

1. If the interest of the operator is evidenced by a lease, license, franchise, or a reciprocal agreement, a copy of the document and any amendments;

2. A description of any lakes or streams available for recreational use; and

3. A description of any exchange network and the responsibilities, obligations, and rights of the operator and purchaser, and copies of all exchange network documents.

R4-28-A1223

R4-28-A1223. Affidavit

The applicant shall sign an affidavit attesting that the information found in the application is true and correct.

R4-28-B1201

R4-28-B1201. Expedited Registration For Improved Subdivision Lots and Unsubdivided Lands

A. A developer may use the expedited public report registration by preparing the public report and submitting the appropriate application documents and fees established in A.R.S. §§ 32-2183(B) or 32-2195.03(B) to the Department. The Department shall assign a registration number to each application and verify the following:

1. The correct application form has been used and is 2-hole punched at the top in standard placement. The application is placed on a 2-prong AACO-type fastener in a file folder and delivered to the Department in an expanding file folder. Maps may be left off the fastener, folded, and placed in the expanding file. The application shall include:

a. The Expedited Registration Request letter signed by the applicant; and

b. The completed Department checklist for administrative completeness which indicates inclusion of the documents required by A.R.S. Title 32, Chapter 20, Article 4 and 4 A.A.C. 28, Article 12, Part A.

2. The filing fees have been included with the application;

3. All application questions have been answered;

4. The application signature page has been properly executed;

5. All required documents have been submitted; and

6. A complete and accurate public report in the Department's published format on a computer diskette, formatted in a word processing program compatible with the Department's current computer operating system and word processing software, has been submitted and all exhibits used for disclosure have been included on the diskette. (The developer may obtain a diskette containing the public report template from the Department upon request.)

B. The Department may allow the applicant to correct a deficiency within the administrative completeness time-frame provided in A.R.S. §§ 32-2183(B) and 32-2195.03(B), in which case the overall 15 business day limitation is suspended until the applicant corrects the deficiency.

R4-28-B1202

R4-28-B1202. Conditional Sales Exemption

A. Any developer applying for a special order of exemption authorizing the offer for sale of a subdivision lot or unsubdivided land before issuance of a public report shall provide the following information to the Department:

1. The completed and executed Petition for Conditional Sales Exemption;

2. The completed and executed subdivision or unsubdivided land application for a public report;

3. The purchase contract containing all required contract disclosures and the Conditional Sales Addendum;

4. A current title report showing the ownership interest of the developer and acceptable condition of title;

5. A copy of the recorded development map, or if not recorded, a copy of the unrecorded map;

6. A copy of the Condominium Declaration, if applicable;

7. A Certificate of Assured Water Supply, or a letter from the ADWR or other evidence that the property is located in an area designated as having an assured water supply, if the property is located in a groundwater active management area;

8. A water adequacy report from the ADWR or evidence that the property is located in an area designated as having an adequate water supply, if the property is located outside of a groundwater active management area; and

9. Any other information revealed necessary after preliminary review.

B. The conditional sales exemption shall expire upon issuance or denial of the public report, or upon issuance of an order to summarily suspend sales, to cease and desist, or a voluntary suspension of sales by the developer or owner.

R4-28-B1203

R4-28-B1203. Material Change; Public Report Amendments

A. The developer shall notify the Department of all material changes in the information required by A.R.S. Title 32, Chapter 20, Articles 4, 7, 9, and 10, or 4 A.A.C. 28, Article 12, Part A.

B. According to material changes reported in subsection (A), the Department may require the developer to amend the public report.

C. Completion Date Extension.

1. A developer may apply to the Department for an amendment to a public report to extend the completion date of any improvement by providing an affidavit from the developer attesting that each purchaser, owner, and the city or county officials responsible for improvements were provided written notice of the completion status of the improvement, including a list of all people who were provided notice.

2. The Department may deny the application to extend the completion date beyond the 1st extension if a purchaser, owner, or city or county official opposes issuance of an amended public report to extend a completion date.

3. If an extension is denied, the developer shall provide the Department with a written agreement to suspend sales until the improvement is complete or the Department may issue a summary suspension order as provided in A.R.S. § 32-2157(B).

D. To amend a public report, a developer shall submit payment of the applicable amendment fee and the following information:

1. The name and registration number of the development;

2. The name and signature of the developer;

3. A list of the changes to the development and sales offering or in the information previously provided to the Department;

4. Status of sales as prescribed in subsections (C) and (E); and

5. A purchase contract addendum, to be signed and dated by both seller and purchaser, acknowledging that the sale is conditioned upon issuance of the amended public report and purchaser's receipt and acceptance of the amended public report.

E. Suspension of sales.

1. If necessary for the protection of purchasers, the Department may suspend approval to sell or lease pending amendment of the report.

2. In lieu of issuing a suspension order under A.R.S. § 32-2157, the Department may accept a developer's written agreement to suspend sales until the amended public report has been issued by the Department.

F. If the Department determines that a suspension of sales is not necessary for the protection of purchasers and approves the proposed disclosure of the change, sales may continue if the prospective purchaser is provided a copy of the current public report and disclosure of all changes before signing a contract. Completion of sales is conditioned upon the developer obtaining and delivering to each purchaser under contract the amended public report.

G. Upon obtaining the amended report, the developer shall provide a copy to prospective purchasers in place of the earlier public report and obtain a receipt for the amended public report.

H. If an application to amend a public report is denied, the Department shall notify the developer in writing of the statutory basis for the denial and of the developer's right to a fair hearing.

R4-28-B1204

R4-28-B1204. Cemetery Notice; Amendments

A change to information required pursuant to the provisions of Title 32, Chapter 20, Article 6, R4-28-301(A), or any other Section, requires amendment of the notice filed pursuant to A.R.S. 32-2194.01.

R4-28-B1205

R4-28-B1205. Contiguous Parcels

Except for lots in a platted subdivision, if 2 or more contiguous parcels of land are acquired by a single owner, the Department shall classify the lots as a single parcel for purposes of subdivision laws.

R4-28-B1206

R4-28-B1206. Filing with HUD

If the subdivider requests that a subdivision public report be certified by the Department for filing with HUD, the subdivider shall comply with the terms, conditions, and requirements of the HUD certification agreement.

R4-28-B1207

R4-28-B1207. Subsequent Owner

A. Except as provided in A.R.S. § 32-2181.02, any developer who is a successor in interest to 6 or more lots within a subdivision on which the Department previously issued a public report shall file an application for and obtain a new public report before offering or selling any lot.

B. Any developer who is a successor in interest to 6 or more parcels within an unsubdivided land development on which the Department previously issued a public report shall file an application for and obtain a new public report before offering or selling any parcel.

C. Any developer who is a successor in interest to 12 or more time-share intervals within a time-share project on which the Department previously issued a public report shall file an application for and obtain a new public report, before offering or selling any interval.

D. The Department shall not issue a new public report to a subsequent owner of a development if the previous developer failed to complete proposed improvements in accordance with estimated completion dates specified in the previously issued public report until 1 of the following occurs:

1. The subsequent owner makes financial arrangements, as described in R4-28-A1211, in favor of the local governmental authority and for the benefit of purchaser, securing the owner's promise to complete the previously proposed improvements by a designated date; or

2. The subsequent owner becomes obligated to place all sales funds in a neutral escrow depository until the Department is furnished satisfactory evidence that all proposed improvements have been completed or accepted by the city or county; or

3. Permission is obtained by all previous purchasers in the development for completion of the proposed improvements by the new designated date for completion; or

4. The subsequent owner establishes to the satisfaction of the Department that adequate financial arrangements have been made to assure completion of the proposed improvements by the new designated date for completion.

E. A developer who is a new owner of property that is the subject of a pending application for a public report shall not replace or be substituted for the applicant of the pending application.

R4-28-B1208

R4-28-B1208. Public Report Correction

If the public report contains an error, the Department shall correct the report at its own expense. Additional or changed information that was known to the developer before issuance of the report is not an error. The Department shall not correct the public report after it has been in effect for 10 days. After 10 days, the developer shall change the report through the development amendment process, established in R4-28-B1203, with payment of the applicable amendment fee.

R4-28-B1209

R4-28-B1209. Options; Blanket Encumbrances; Releases

A. The Department shall not issue or amend a public report for any lot held under option or subject to a blanket encumbrance if a condition precedent to the optionee's right to acquire the lot or to release from the blanket encumbrance shows that the lot shall:

1. Be acquired or released in a particular sequence,

2. Be acquired or released only after 1 or more additional lots have been acquired or released, or

3. Not be released if the encumbrance is in default because of a cross-default provision contained in the encumbrance,

B. The developer may require payment of a premium to permit the acquisition or release of the lot.

C. When a blanket encumbrance clouds title to a development, the developer shall place a written statement from the holder of the blanket encumbrance in the public report application, quoting the provisions that enable a buyer to acquire title to a lot, free of the blanket encumbrance.

R4-28-B1210

R4-28-B1210. Earnest Money

The developer shall deposit earnest money and down payments in a neutral depository if:

1. The seller is in bankruptcy;

2. The sale is conditional pursuant to R4-28-B1202; or

3. The Department perceives a risk to the buyer.

R4-28-B1211

R4-28-B1211. Recordkeeping

If real property in a development is sold or leased by a developer without the services of a listing or selling broker, the developer shall keep all records as required by A.R.S. § 32-2151.01(A) and (C).

R4-28-1313

R4-28-1313. Correction of Clerical Mistakes

Clerical mistakes in opinions, orders, rulings, any process issued by the Department, or other parts of the record, and errors arising from oversight or omission, may be corrected by the administrative law judge before transmission of the Department hearing file to the Commissioner, or by the Commissioner after transmission of the file, either upon the initiative of the administrative law judge or Commissioner, or upon motion of any party.