1. 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 subdivision 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.
2. 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.
3. 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.

4. D. The Department shall not issue a new public report to a subsequent owner of a development if the previous developer failed to complete proposed improvements in accordance with estimated completion dates specified in the previously issued public report until one of the following occurs:

   1. 1. The subsequent owner makes financial arrangements, as described in R4-28-A1211, in favor of the local governmental authority and for the benefit of purchaser, securing the owner’s promise to complete the previously proposed improvements by a designated date; or
   2. 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. 3. Permission is obtained by all previous purchasers in the development for completion of the proposed improvements by the new designated date for completion; or
   4. 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 completion.

5. E. The Commissioner may approve an application for a subsequent ownership exemption if:

   1. 1. Lots, parcels or fractional interests are owned by a licensed financial institution in this state as a result of foreclosure and are being sold by the financial institution or on behalf of the financial institution by a licensee if limited to those that have been included with a previous public report when the public report was approved within the last ten years and no material changes have occurred within the public report.
   2. 2. Lots, parcels or fractional interests, condominiums, or timeshare projects where compliance is not essential to the public interest or for the protection of buyers include, but are not limited to, those that have been included within a previous public report approved within the last ten years where the applicant for an exemption attests there are no material changes altering the facts of the public report.

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). Amended by final rulemaking at 31 A.A.R. 4267 (November 7, 2025), effective December 13, 2025 (Supp. 25-4).