What This Statute Prohibits
When buying or selling real property, third-party providers sometimes offer disclosure reports. This statute draws a firm line. Those providers cannot falsely claim their reports are required by law.
They also cannot use misleading statements. For example, they cannot suggest that any party must buy one to meet disclosure rules.
It is unlawful for a third party provider offering a disclosure report pursuant to section 33-423 to represent in marketing materials, contracts or by any other means any of the following: 1. That such a disclosure report is required by any law to be purchased. 2. That a buyer, a seller or a person licensed pursuant to title 32, chapter 20 who represents a buyer or seller is required to comply with section 33-423 by purchasing a third party disclosure report.
A.R.S. § 33-424(A)The goal is simple: protect consumers and real estate professionals from misleading marketing. A seller must disclose known property conditions. But no law requires buying a third-party product to do so.
Enforcement and Penalties
Affected parties have real tools to enforce this rule. Anyone who gets marketing materials or contracts that break this law can bring a private action. They must file in the county where the property is located.
A provider found in violation may owe damages up to $2,000 per occurrence. The winning party can also recover attorney fees and costs.
A person who violates subsection A of this section is guilty of a class 1 misdemeanor.
A.R.S. § 33-424(E)Beyond civil liability, a violation is a class 1 misdemeanor. The attorney general or county attorney can pursue enforcement on their own.
This rule covers all channels. Social media, email, contracts, and marketing materials all fall under the statute.
For anyone buying or selling property, the takeaway is clear. No one can legally pressure you into buying a disclosure report by claiming it is required. If you encounter misleading statements, the law gives you a path to hold the provider accountable.