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REFERENCE TITLE: escrow agents; notice; property sale |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HB 4086 |
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Introduced by Representative Griffin
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AN ACT
amending title 6, chapter 7, article 3, arizona revised statutes, by adding section 6-841.04; amending section 32-2107, arizona revised statutes; relating to real estate.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 6, chapter 7, article 3, Arizona Revised Statutes, is amended by adding section 6-841.04, to read:
6-841.04. Notice of escrow services requested; notice; methods of providing notice
When an escrow agent either receives an order for escrow services to transfer ownership of real property through sale or inheritance and creates a preliminary title report or, five days before recording a title if recording the title is being handled by the escrow agent as a courtesy, transfers ownership or places a lien on the real property, the escrow agent shall transmit all of the following to the state real estate department on a form as prescribed by the state real estate department:
1. The names of all owners.
2. The assessor parcel number.
3. The mailing address of the actual, physical location of the real property, if one exists.
4. The name of the escrow company.
5. The email address and phone number of a contact at the escrow company for the property that is being sold.
Sec. 2. Section 32-2107, Arizona Revised Statutes, is amended to read:
32-2107. Powers and duties of commissioner; compensation; administration of department; seal; real estate department education; revolving fund
A. The commissioner shall have charge of the department with power to administer it in accordance with the provisions of and to carry out the purposes of this chapter. The commissioner shall adopt a seal which shall bear that bears the words "real estate commissioner, state of Arizona", which shall be and that is used for the authentication of to authenticate proceedings of the department and the official documents thereof. The commissioner's principal office shall be at the state capitol. The commissioner may have branch offices the commissioner deems necessary in other cities.
B. The commissioner shall receive compensation as determined pursuant to section 38-611.
C. The commissioner shall prepare and cause to be produced and circulated among the licensees and the general public educational matter the commissioner deems helpful and proper for the guidance and assistance of to guide and assist both licensees and the public. The commissioner may assess a fee for each of these educational products that does not exceed a level reasonably estimated to be sufficient to recover production and distribution costs.
D. In cooperation with industry educators, content experts and other professionals, the commissioner may develop, sponsor or hold educational seminars and workshops for the benefit of licensees.
E. A The real estate department education revolving fund is established consisting of monies received from the sale of educational matter under subsection C of this section and grants of monies to be used in the production of educational products. Monies in the fund shall be used for the printing of to print a compilation of real estate laws and rules and other educational publications and for other educational efforts the commissioner deems helpful and proper for the guidance and assistance of to guide and assist licensees and the public, including sponsoring and holding educational seminars or workshops for educators and other licensees. The state real estate department shall establish the revolving fund as a separate account. The state real estate department shall make a full accounting of its use to the department of administration annually or as required by the department of administration. Expenditures from the fund and reimbursement to the fund shall be as prescribed by rules of the department of administration. Monies received in the real estate department education revolving fund are not subject to reversion, except that all monies in the fund in excess of twenty-five thousand dollars that exceed $25,000 at the end of the fiscal year revert to the state general fund.
F. The commissioner shall create and administer an early alert system that notifies a person of a pending sale or transfer of ownership of real estate when the early alert system receives notice from an escrow agent or an escrow company. The early alert system shall provide prompt notice by email, text message or other similar means of communication. Participation in the early alert system is voluntary and shall allow individuals to opt in to the system. The early alert system is not a public record and is exempt from title 39, chapter 1.
F. G. The commissioner shall adopt rules, in accord with this chapter, as the commissioner deems necessary to carry out this chapter.
G. H. The commissioner may approve standardized legal forms for use in the sale or lease of real estate for the purpose of recognizing to recognize compliance of the forms with this chapter and the rules adopted pursuant to this chapter.