Disclosure Affidavit From Seller Required for All Land Transfers

Question: In a recent column you said that an Arizona law, A.R.S. § 33-422, requires an affidavit of disclosure from the seller to the buyer when land is being sold in an unincorporated area of an Arizona county, unless the land has been subdivided. You also said that this affidavit of disclosure requires significant disclosures by the seller such as access and utilities.

Three years ago, we sold a two-acre parcel of land in Pinal County with a ‘seller carryback’ mortgage to us. The buyer planned to split this two-acre parcel of land and build a home on each of the one-acre lots. The buyer, however, never got construction financing. The buyer has now defaulted on the mortgage payments to us and has agreed to execute a deed in lieu of foreclosure to us for the two-acre parcel of land. Is an affidavit of disclosure still required from the buyer to us for the transfer of the two-acre parcel back to us?

Answer: Yes. There may have been material changes in the condition of the two-acre parcel of land in the past three years, such as flooding or soil settling.