On November 27, 2012, the Arizona Court of Appeals ruled that under A.R.S. §32-2156 the seller had no obligation to disclose to the buyer that a level-one registered sex offender lived next door. The seller, however, did have an obligation to respond truthfully to any questions from the buyer, including the question from the buyer as to the reason that the seller was moving. The seller stated that the reason for moving was to be closer to friends.
Therefore, if the buyer could prove at trial that this statement was untrue, and that the actual reason for the seller moving was to get away from the level-one sex offender next door, the buyer would have a claim for fraud against the seller.
Note: Although the more serious level-two and level-three sex offenders are a matter of public record, a level-one sex offender is not.