Phoenix legislature Summary

HB 2345 – HOA; Condos, For Sale Signs: If this issue were a movie, this third legislative installment would make it a series. Following initial statutory changes proposed and adopted by the legislature in 2007, AAR continued its lobbying efforts to provide private parcel access to ‘For Sale’ signs within HOA communities. This year’s legislation specifically prohibits HOAs from regulating or requiring a particular ‘For Sale’ sign. The bill also allows the right to display a ‘For Lease’ sign, unless rental of units is specifically prohibited by the community. The bill prohibits homeowners’ and condo associations from banning the display of temporary open house signs except in common areas and from restricting open house hours after 8:00 a.m. or before 6:00 p.m. And property owner signs that conform to industry standards cannot be prohibited or required to be substituted with a particular community sign.

HB 2450 – Water/Wastewater Fees & Charges: One of the common things we heard during the REALTOR® Caucus in September was how municipalities throughout the state were requiring property managers and REALTORS® to pay previous owner’s/tenant’s unpaid water bills before they would turn service on to sell a property or for the new owner or tenant. With the passage of HB 2450, municipalities are now prohibited from refusing or requiring payment for unpaid water and wastewater services from anyone other than the person who contracted with the municipality.

HB 2768 – Real Property Transfer Fee Covenants: Arizona is one of only four states this year that, at the specific request of the National Association of REALTORS®, secured legislative passage of a new law that prohibits the use of transfer fees to be paid to developers or third-party companies on the sale of real property. Arizona voters had already overwhelmingly approved a REALTOR®-proposed state constitutional amendment banning transfer taxes at the state, county and local levels.

HB 2766 – Tenant Notice; Foreclosures: It was clear this legislative cycle that many elected officials were concerned about the number of rental properties that were in foreclosure and what that meant for the tenants renting the properties. We worked closely with the sponsor of HB 2766 to ensure that any measure adopted could be implemented in practice and did not conflict with federal law. HB 2766 says that if a landlord of a residential property rents out a unit that is under foreclosure, the landlord must provide each tenant with written notice of possible foreclosure. If a landlord fails to comply with the notice requirement, the tenant may deliver a notice of breach of agreement and recover damages and obtain injunctive relief.

SB 1219 – Real Estate Licensee: AAR worked hand in hand with Commissioner Judy Lowe and the Department of Real Estate to help eliminate duplication in the department and provide needed clarification and assistance with funding levels. SB 1219 conforms the time a real estate license is valid to the time period for completing education requirements—that is, two years. It allows a licensee to cancel his/her licensee, defines business broker and requires a valid fingerprint clearance card before applying for a license.

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