The Arizona Revised Statutes have been updated to include the revised sections from the 55th Legislature, 2nd Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 56th Legislature, 1st Regular Session, which convenes in January 2023.
This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
37-803. Disposition of real property by state agency
A. Unless another procedure is prescribed by law, the director or other chief administrative officer of a state agency may dispose of real property or any right, title or interest in real property as prescribed by this section if the director or officer determines that the real property is no longer needed or used for public purposes by that agency.
B. Unless the property is subject to a right of reversion to a previous owner or the previous owner's successors in interest, the director or other chief administrative officer of a state agency may convey:
1. The real property to an agency of the federal government, to another agency of this state or to any county, municipality, school district or other political subdivision of this state or charter school in this state without the necessity of a public sale if the director or officer considers the conveyance to be in the public interest and if the real property will be used for a specific purpose in the public interest. The transferee agency shall pay the transferor agency for such a conveyance based on an appraisal prepared within the last one hundred eighty days by a certified real estate appraiser establishing the fair market value of the property to be conveyed.
2. Other marketable property to the highest and most responsible bidder at a public auction or by direct sale or exchange after at least thirty days' notice in a newspaper of general circulation in the county in which the property is located. At least two independent appraisals are required for property that is offered and the property shall not be offered or conveyed for less than or the amount of the low appraisal. All purchase offers are public and any person may submit a subsequent offer that matches or exceeds a previous purchase offer.
C. The sale shall be for cash or on terms of not less than twenty percent down payment with the balance payable in annual amortized installments for ten years, the unpaid balance to bear interest at a rate determined by the director or other chief administrative officer of the state agency.
D. The director or other chief administrative officer of a state agency may execute all deeds or conveyances necessary to convey any real property or interest in the real property to be conveyed under this section and may assess a fee for the costs of preparing and executing any conveyance under this section. The director or officer may insert in any deed or conveyance such conditions, covenants, exceptions and reservations as the director or officer considers to be in the public interest or may convey in fee simple absolute.
E. A conclusive presumption exists in favor of any purchaser for value and without notice of any real property or interest in the real property conveyed pursuant to this section that the agency acted within its lawful authority in acquiring the property and that the agency director or other chief administrative officer of the state agency acted under lawful authority in executing any deed, conveyance or lease authorized by this section.
F. The agency may adopt rules for using licensed real estate brokers to assist in any disposition of property under this section. The director or other chief administrative officer of the state agency may pay a commission, from proceeds received under this section, to a broker who provides the purchaser unless the broker is the purchaser or lessee or the purchaser is another governmental agency.
G. Subsection B of this section does not apply to any lease or sublease of state hospital lands or buildings that is executed by the director of the department of health services or the director's designee for the benefit of mentally ill persons in this state. The director of the department of health services or the director's designee shall ensure that the department receives the fair rental value for the leased property.