Recent foreclosure activity, distressed property sales and quick due diligence reviews conducted in association with fire sales have resulted in unintended violations of subdivision regulations for several properties in Arizona. Sometimes the discovery of such a violation isn't made until a building permit or other approval is requested from a jurisdiction. At that point, it may be too late to correct the violation in a cost effective manner. Thus, it seems a refresher course on Arizona subdivision regulations is in order.
Jurisdiction
Municipalities, counties and the state all regulate subdivisions. Thus, you must first determine which regulations are applicable to a particular parcel of land. If the parcel is located within a municipal jurisdiction, the municipality will regulate the subdivision or platting of the parcel pursuant to powers granted to the municipality by A.R.S. § 9-463, et. seq. If the parcel is located within a county, the county will regulate the subdivision or platting of the parcel pursuant to powers granted to the county by A.R.S. § 11-806, et. Seq. Finally, dependent on the number of lots created and the proposed use for those lots, the Arizona Department of Real Estate may regulate the sale of any subdivided property pursuant to A.R.S. § 32-2181.
Municipalities
Absent certain specific circumstances, a plat is required for land located within a municipality that is divided into four or more lots. Municipalities may also regulate lot splits if land 2.5 acres or less in size is divided into 2 or 3 lots. A.R.S. § 9-463.03 states it is unlawful to sell or lease any part of a subdivision located within a municipality. Failure to comply with municipal subdivision regulations could result in a requirement that the improvements on the property be removed or modified.
Counties
A plat is required for parcels located within a county that are divided into six or more lots. Unlike municipalities, lots or parcels 36 acres or more in area are generally excluded from county subdivision regulations. Counties also have limited review rights for lot splits consisting of land divided into five or fewer lots. Failure to comply with county subdivision regulations could also result in a requirement that the improvements be removed or modified.
Arizona Department of Real Estate
In addition to regulations enforced by local jurisdictions, the Sate of Arizona requires certain disclosure statements (for example, public reports) and adherence to other regulations for the sale of residential lots. Similar to county regulations, these state regulations apply if the subdivision contains six or more lots, parcels or fractional interests. If a developer fails to comply with the state regulations buyers of the developer's residential properties may be able to rescind sales of properties within three years of signing the purchase agreement and the developer may be exposed to penalties.
Jurisdiction
Municipalities, counties and the state all regulate subdivisions. Thus, you must first determine which regulations are applicable to a particular parcel of land. If the parcel is located within a municipal jurisdiction, the municipality will regulate the subdivision or platting of the parcel pursuant to powers granted to the municipality by A.R.S. § 9-463, et. seq. If the parcel is located within a county, the county will regulate the subdivision or platting of the parcel pursuant to powers granted to the county by A.R.S. § 11-806, et. Seq. Finally, dependent on the number of lots created and the proposed use for those lots, the Arizona Department of Real Estate may regulate the sale of any subdivided property pursuant to A.R.S. § 32-2181.
Municipalities
Absent certain specific circumstances, a plat is required for land located within a municipality that is divided into four or more lots. Municipalities may also regulate lot splits if land 2.5 acres or less in size is divided into 2 or 3 lots. A.R.S. § 9-463.03 states it is unlawful to sell or lease any part of a subdivision located within a municipality. Failure to comply with municipal subdivision regulations could result in a requirement that the improvements on the property be removed or modified.
Counties
A plat is required for parcels located within a county that are divided into six or more lots. Unlike municipalities, lots or parcels 36 acres or more in area are generally excluded from county subdivision regulations. Counties also have limited review rights for lot splits consisting of land divided into five or fewer lots. Failure to comply with county subdivision regulations could also result in a requirement that the improvements be removed or modified.
Arizona Department of Real Estate
In addition to regulations enforced by local jurisdictions, the Sate of Arizona requires certain disclosure statements (for example, public reports) and adherence to other regulations for the sale of residential lots. Similar to county regulations, these state regulations apply if the subdivision contains six or more lots, parcels or fractional interests. If a developer fails to comply with the state regulations buyers of the developer's residential properties may be able to rescind sales of properties within three years of signing the purchase agreement and the developer may be exposed to penalties.
A Few Parting Thoughts
Don't forget new lot lines may be created when property is transferred to a new owner. These new lot lines may result in violations associated with building setbacks, signage, parking, lot coverage, access and required lot sizes. The creation of lot line can result in penalties, violations, rescinded transactions and costly retroactive compliance.
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