Arizona-2024-SB1432-Chaptered

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 33, chapter 4, Arizona Revised Statutes, is amended by adding article 7, to read:

ARTICLE 7. UNIFORM UNLAWFUL RESTRICTIONS IN LAND RECORDS ACT

START_STATUTE33-531. Short title

This article may be cited as the uniform unlawful restrictions in Land Records Act. END_STATUTE

START_STATUTE33-532. Definitions

In this article, unless the context otherwise requires:

1. "Amendment" means a document that removes an unlawful restriction.

2. "Document" means a record recorded or eligible to be recorded in land records.

3. "Governing instrument" means a declaration of a condominium as prescribed in chapter 9 of this title or of a planned community as prescribed in chapter 16 of this title or any document recorded in land records that does any of the following:

(a) Establishes a governing body of an association of owners that is IDENTIFIED in a DOCUMENT and that is responsible for managing common areas or facilities used by more than one owner of a property interest affected by the document.

(b) Requires contribution of assessments or dues from owners of property that is enforceable by a lien on a separate property interest for expenses incurred by a governing body of an association of owners in the performance of obligations ESTABLISHED for the common benefit of the owners of the real property described in the document.

(c) ESTABLISHES prohibitions, restrictions, covenants or conditions on the transfer, use or occupancy of the real PRoperty described in the document that are to be ENFORCED by a GOVERNING body of an association of owners identified in a document.

4. "Index" means a system that enables a search for a document in land records.

5. "Land records" means documents and indexes maintained by a recorder.

6. "Owner" means a person that has a fee interest in real property.

7. "Person" means an individual, estate, business or nonprofit entity, government or governmental subdivision, agency, instrumentality or other legal entity.

8. "Record", used as a noun, means information that is either of the following:

(a) Inscribed on a tangible medium.

(b) Stored in an electronic or other medium and retrievable in perceivable form.

9. "Recorder" means the county recorder.

10. "Remove" means eliminate any apparent or purportedly continuing effect on title to real property.

11. "Unlawful restriction" means a prohibition, restriction, covenant or condition in a document that INTERFERES with or restricts the transfer, use or occupancy of real PROPERTY on the basis of race, color, religion, national origin, sex, familial status or disability in violation of state or federal law. END_STATUTE

START_STATUTE33-533. Amendment by owner

Except with respect to property to which section 33-534 applies, an owner of real property subject to an unlawful restriction may submit to the recorder for recordation in the land records of the county in which the property is located an amendment to remove the unlawful restriction, but only as to the owner's property. END_STATUTE

START_STATUTE33-534. Amendment by association of owners

A. The governing body of an association of owners identified in a governing instrument, including the board of directors of a condominium as prescribed in chapter 9 of this title or a planned community as prescribed in chapter 16 of this title, without a vote of the members of the association, may amend the governing instrument to remove an unlawful restriction.

B. A member of an association of owners may request in a record that sufficiently identifies an unlawful restriction in the governing instrument that the governing body exercise its authority under subsection A of this section. Not later than ninety days after the governing body receives the request, the governing body shall determine, reasonably and in good faith, whether the governing instrument includes the unlawful restriction. If the governing body determines the governing instrument includes the unlawful restriction, the governing body not later than ninety days after the determination shall amend the governing instrument to remove the unlawful restriction.

C. Notwithstanding any provision of the governing instrument or any other law, the governing body may execute an amendment under this section.

D. An amendment under this section is effective, notwithstanding any provision of the governing instrument or any other law that requires a vote of the members of the association of owners to amend the governing instrument. END_STATUTE

START_STATUTE33-535. Requirements and limitations of amendment

A. An amendment by an owner under section 33-533 must identify the owner, the real property affected and the document containing the unlawful restriction. An AMENDMENT by an association of owners under section 33-534 must identify only the document containing the unlawful restriction. The amendment must include a conspicuous statement in substantially the following form:

This amendment removes from this deed or other document affecting title to real property an unlawful restriction as defined in section 33-532, Arizona Revised Statutes. This amendment does not affect the validity or enforceability of a restriction that is not an unlawful restriction.

B. The amendment must be executed and acknowledged in the manner required for recordation of a document in the land records. The amendment must be recorded in the land records of each county in which the document containing the unlawful restriction is recorded.

C. The amendment does not affect the validity or enforceability of any restriction that is not an unlawful restriction.

D. The amendment or a future conveyance of the affected real property is not a republication of a restriction that otherwise would expire by passage of time under any other law. END_STATUTE

START_STATUTE33-536. Optional form for amendment by owner

The following form may be used by an owner to make an amendment under section 33-533:

Amendment by Owner to Remove an Unlawful Restriction

This amendment is recorded under title 33, chapter 4, article 7, Arizona Revised Statutes, by an owner of an interest in real property subject to an unlawful restriction as defined in section 33-532, Arizona Revised Statutes.

1. Name of owner:

2. Owner's property that is subject to the unlawful restriction is described as follows:

Address:

Legal Description:

3. This amendment amends the following document:

Title of document being amended:

Recording date of document being amended:

Recording information (book/page or instrument number):

This amendment removes from the document described in paragraph 3 all unlawful restrictions as defined in section 33-532, Arizona Revised Statutes. Removal of an unlawful restriction through this amendment does not affect the validity and enforceability of any other restriction that is not an unlawful restriction as defined under section 33-532, Arizona Revised Statutes, at the time of filing this amendment. This amendment is not effective if the property is subject to a governing instrument as defined in section 33-532, Arizona Revised Statutes.

Owner's Signature Date

Notary Acknowledgment END_STATUTE

START_STATUTE33-537. Duty and liability of recorder

A. The recorder shall record an amendment submitted under this article, add the amendment to the index and cross reference the amendment to the document containing the unlawful restriction.

B. The recorder and the county are not liable for recording an amendment under this article. END_STATUTE

START_STATUTE33-538. Uniformity of application and construction

In applying and construing this article, a court shall consider the promotion of uniformity of the law among jurisdictions that enact it. END_STATUTE

START_STATUTE33-539. Relation to electronic signatures in global and national commerce act

This article modifies, limits or supersedes the electronic signatures in global and national commerce act, 15 United States Code 7001 through 7031 but does not modify, limit or supersede 15 United States Code section 7001(c), or authorize electronic delivery of any of the notices described in 15 United States Code section 7003(b). END_STATUTE

Sec. 2. Severability

If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.