AZ LEG Property Exclusive Agreement

On Mar. 27, AZ LEG passed bill on property sale, exclusive agreement.

  • AZ LEG passed bill SB 1218 relating to exclusive property engagement agreements.
  • Amends AZ LEG 44 by adding new chapter 5 relating to property contracts.
  • Bill Provisions
  • It is unlawful for an exclusive property engagement agreement to last longer than 12 months after the agreement was executed, be a covenant that runs with the land.
  • Or bind future owner of an interest in the residential real estate subject to agreement.
  • Court may not enforce an exclusive property engagement agreement that violates section, may not impose constructive trust in real estate subject to the agreement.
  • Contract recorded with country office that violates chapter is void and unenforceable.
  • Legislative History
  • On Jan. 29, 2024, bill transmitted to the Senate; on Feb. 29, 2024, bill passed Senate.
  • On Mar. 12, 2024, bill introduced in the House; on Mar. 26, 2024, bill passed House.
  • On Mar. 27, 2024, bill HB 2252 transmitted to the governor for review and approval.
  • Effectiveness
  • Bill effective on Sep. 14, 2024 (91 days after Jun. 15 adjournment).
  • Apr. 2024 AZ LEG Governor Approval
  • On Apr. 2, 2024, AZ LEG reported governor signed bill into law, assigned Ch. 78.
  • Document dated Apr. 2, 2024, received from AZ LEG Apr. 5, summarized on Apr. 10.
  • On Apr. 18, 2024, AZ AG informed on homeowner protections in SB 1218, #209274.

Regulators AZ AG; AZ LEG
Entity Types Corp; MG Orig
Reference Ch. 78, 4/2/2024; Bill, SB1218, 3/27/2024; Citation: AZ LEG 44;
Functions Compliance; Financial; Legal
Countries United States of America
Products Corporate; Mortgage
Regions Am
Rule Type Final
Rule Date 3/27/2024
Effective Date 9/14/2024
Rule Id 206509
Linked to Rule :209274
Reg. Last Update 4/2/2024
Report Section US Consumer

Last substantive update on 04/10/2024