Section 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 six or more lots within a sub- division 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 six 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 subse- quent owner of a development if the previous developer failed to complete proposed improvements in accordance with esti- mated completion dates specified in the previously issued pub- lic report until one of the following occurs:

1.        The subsequent owner makes financial arrangements, as described in R4-28-A1211, in favor of the local govern- mental authority and for the benefit of purchaser, secur- ing 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 improve- ments 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 comple- tion.

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.

Historical Note

Section R4-28-B1207 adopted by final rulemaking at 5

A.A.R. 650, effective February 3, 1999 (Supp. 99-1). Amended by final rulemaking at 6 A.A.R. 1886, effective

May 2, 2000 (Supp. 00-2).