A Subdivision Disclosure Report (Public Report) is required by Arizona Law that developers, builders or individuals who divide a parcel of land and offer for sale or for lease, six or more lots within a subdivision.
For example when a home builder offers 6 lots for sale, they are required to apply for a public report through the ADRE (Arizona Department of Real Estate). When the builder offers six or more lots, and one of the lots is less than thirty-six acres, the Arizona Department of Real Estate requires a public report to provide transparency to potential buyers and provide information about the land.
When the builder offers six or more lots, and one of the lots is less than thirty-six acres, the Arizona Department of Real Estate requires a public report to provide transparency to potential buyers and provide information about the land.
What kind of information will this report provide? Well, since we live on the Sonoran Desert, water is always a front running topic to address. The subdivider needs to provide proof that there are one hundred years of water assurance. This is needed if the land is in an Active Management Area (AMA) as determined by the Arizona Department of Water Resources. Once this has been determined, ADRE will include this information in the report to disclose to potential buyers. Even if the subdivider cannot prove a one hundred year water assurance, they may still divide and sell the property although the public report will disclose the lack of water assurance.
Some other areas the public report will provide information on include topics like soil reports (expansive soil), area flood information and sanitary facilities certificates.
Let’s review! Keys points to remember when it comes to Public Reports:
- Required if parcel of land is divided into 6 or more lots
- Provides disclosure to potential buyers about the property
- Reports on 100-year water assurance
- Area flood information
- Sanitary Facilities Certificates
Is the Subdivision Disclosure Report guaranteed to be accurate? Unfortunately, some information can get outdated over time, and ADRE does not verify the findings in the report, so it is recommended that potential buyers review and investigate the findings.
Public Reports that were created after January 1, 1997 are available online at the Arizona Department of Real Estate website. For more information on the Subdivision Disclosure Reports and other Arizona real estate assistance, contact the Arizona Key Team.