Real Estate Lessons

Arizona Subdivision Law

The Arizona Subdivided Lands Act, A.R.S. § 32-2181 et seq. (hereinafter “the Act”) regulates offerings of subdivided land, which is land or lands divided or proposed to be divided for sale or lease into six or more lots or parcels, any one of which is smaller than thirty-six acres. Real estate agents and land developers are commonly aware of the general “five-split” rule under the Act: One may divide a parcel of land for purpose of sale or lease into as many as five lots in unincorporated areas and remain exempt. Where one divides or proposes to divide a parcel for purpose of sale or lease into six or more lots, any one of which is smaller than thirty-six acres, one must obtain a subdivision public report from the Arizona Department of Real Estate, and record a subdivision plat approved by the city or county in which the subdivision is located, among other requirements. Platting requirements may entail significant expenses, because city or county approval of a subdivision plat will be conditioned on the subdivider making various improvements to the subdivision, including roads, utilities, water, sewage, and flood control. See A.R.S. §§ 9-463.01 & 11-806.01.