What This Statute Prohibits
When buying or selling real property in Arizona, third-party providers sometimes offer property disclosure reports. This statute draws a firm line: those providers cannot claim their reports are required by law, that any party must purchase one to comply with disclosure requirements, or that the report covers conditions beyond its actual scope.
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 straightforward: protect consumers and real estate professionals from misleading marketing. A seller's obligation to disclose known property conditions under A.R.S. 33-423 does not require purchasing any third-party product.
Enforcement and Penalties
Arizona gives affected parties real teeth to enforce this rule. Anyone who receives marketing materials or contracts that violate this statute can bring a private action in the county where the property is located. A provider found in violation may be liable for damages up to $2,000 per occurrence, plus reasonable attorney fees and costs for the prevailing party.
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 also qualifies as a class 1 misdemeanor. The attorney general or county attorney can pursue enforcement independently. For anyone buying or selling property in Arizona, the takeaway is clear: no one can legally pressure you into purchasing a disclosure report by claiming it is required.