Page 6 - PTA Subdivision Disclosure Report

What are the possible disciplinary actions that may occur?

The Development Investigations Division forwards the case to the Enforcement and Compliance Division for review. This Division
reviews the case to determine if there is sufficient evidence to pursue disciplinary action. If not, the case is closed. If there is
indication of a violation, but it is minor or technical in nature, the Department may issue a non-disciplinary Letter of
Concern. Although non-disciplinary, a Letter of Concern remains in the file and may be considered when determining the
appropriate outcome in any future similar complaint.
When the Department believes the evidence to be sufficient to support discipline, it attempts to negotiate a settlement (Consent
Order) with the respondent. If an agreement is reached, the Department and the respondent sign the Consent Order and it becomes
effective immediately. There is no appeal of a Consent Order, since the respondent voluntarily agrees to it.
If a Consent Order cannot be negotiated, or the violation is so severe that the Department will only accept suspension or revocation of
the respondent’s license, it refers the case to the Attorney General’s Office. A Notice of Hearing and Complaint is prepared which the
Department then sends to the respondent. This notice identifies which statutes or rules the respondent has allegedly violated, and
sets a date and time for hearing. An administrative law judge hears the matter in accordance with the Administrative Procedures
Act. After the hearing, the administrative law judge prepares and sends to the Commissioner a recommended Order. The
Commissioner either adopts, modifies or rejects the order and issues a Commissioner’s Final Order. That order may be appealed to
the Superior Court.

When do I need a Disclosure Report (Public Report) to sell lots in a subdivision that has existed for many years?

By law, A.R.S. 32-2101(55), you are a subdivider if you own or have owned 6 or more lots in a single platted subdivision and offer any
number of them for sale. All subdividers are required to obtain a Disclosure Report (Public Report) prior to offering lots for sale in
accordance with A.R.S 32-2181 et seq. and Commissioner's Rule R4-28-B1207.
It is the act of selling that requires a Disclosure Report (Public Report), not ownership. There is no time limit connected with this. It
makes no difference when you acquired or sold a lot. Upon acquiring fee title or an equitable interest in the 6th lot within a single
platted subdivision, a Disclosure Report (Public Report) is required prior to its sale. You could purchase and sell 2 lots every five years
and as soon as you acquire an interest in the 6th lot and offer the lot/lots for sale, you would be in violation if you did not obtain a
Disclosure Report (Public Report). If you hold fee title or an equitable interest in 6 or more lots at one time, a Disclosure Report (Public
Report) is required prior to offering any of the lots for sale.