Arizona Attorney General Kris Mayes has successfully advanced legislation aimed at protecting homeowners from predatory real estate agreements. The new law, signed by Governor Hobbs on April 2, 2024, addresses unfair and deceptive exclusive property engagement agreements that have been problematic for Arizona homeowners.
The legislation, known as SB 1218, renders certain predatory real estate listing agreements unenforceable and nullifies those already recorded in property records. "This new law is a response to recent examples of egregious and deceptive practices in the real estate industry, which underscored the need for stronger laws to protect homeowners," said Attorney General Mayes. She emphasized that the legislation will help Arizonans safeguard their homes and foster transparency within the real estate sector.
SB 1218 defines exclusive property agreements as contracts granting an exclusive right to list or sell residential real estate. It prohibits such agreements from lasting more than twelve months, being recorded with county recorders, creating liens on properties, binding future owners except under specific conditions, or being assigned without clear homeowner consent.
The law prevents courts from enforcing any agreement violating these stipulations and mandates the Arizona Department of Real Estate to document disclaimers of invalid contracts in each county recorder's office. Violators face liability and penalties under this new regulation.
Attorney General Mayes credited Susan Nicolson of the Arizona Department of Real Estate for her collaboration on this bill. Senior Litigation Counsel Alyse Meislik and Assistant Attorney General Amanda Salvione were instrumental in drafting the legislation.
Homeowners who suspect they are victims of consumer fraud can file complaints through www.azag.gov/consumer or contact the Attorney General’s Office via phone numbers provided for Phoenix, Tucson, or other areas.