Thursday, July 20, 2023

Arizona Subdivision Law Avoidance by Licensed Professionals

I found today this statute at ARS 32-2181(D) that establishes the liability of Arizona licensed professionals who knew or should have known they were acting in concert to subdivide in avoidance of state law.


D. It is unlawful for a person or group of persons acting in concert to attempt to avoid this article by acting in concert to divide a parcel of land or sell subdivision lots by using a series of owners or conveyances or by any other method that ultimately results in the division of the lands into a subdivision or the sale of subdivided land. The plan or offering is subject to this article. Unlawful acting in concert pursuant to this subsection with respect to the sale or lease of subdivision lots requires proof that the real estate licensee or other licensed professional knew or with the exercise of reasonable diligence should have known that property which the licensee listed or for which the licensee acted in any capacity as agent was subdivided land subject to this article. A familial relationship alone is not sufficient to constitute unlawful acting in concert.
E. A creation of six or more lots, parcels or fractional interests in improved or unimproved land, lots or parcels of any size is subject to this article except when: 
1. Each of the lots, parcels or fractional interests represents, on a partition basis, thirty-six acres or more in area of land located in this state, including to the centerline of dedicated roads or easements, if any, contiguous to the land in which the interests are held.

My Interpretation

I take this to mean that any time I am aware or should have been aware that six or more parcels have been or are being created with my cooperation, I, as a licensed professional, am liable for acting in concert to avoid state subdivision law.


Examples of my understanding:

1. If there are six or more parcels within 36 acres, that is always a subdivision.

2. If any five 1-acre parcels are not directly connected to their parent 31-acre-plus parcel, they are a subdivision.

3. If a 1-acre parcel is together with six 5-acre parcels none of which touches a 31-acre-plus parcel, that is a subdivision

4. If 120 acres is divided into six 20's, that is a subdivision.


The Arizona State Real Estate Department prosecutes violations with the full force of their operations only when a suspected violation is reported to them.

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