Bill Text: AZ SB1542 | 2024 | Fifty-sixth Legislature 2nd Regular | Introduced
Bill Title: Single family residence purchases; limitations.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2024-02-06 - Senate read second time [SB1542 Detail]
Download: Arizona-2024-SB1542-Introduced.html
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REFERENCE TITLE: single family residence purchases; limitations. |
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State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024
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SB 1542 |
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Introduced by Senators Mendez: Hernandez, Sundareshan
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An Act
amending title 33, chapter 4, article 1, Arizona Revised Statutes, by adding section 33-401.o1; amending title 44, Arizona Revised Statutes, by adding chapter 41; 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 33, chapter 4, article 1, Arizona Revised Statutes, is amended by adding section 33-401.01, to read:
33-401.01. Single family residence purchases; corporate buyer; county recorder; deed; requirements; exception; definitions
A. If a corporation, limited liability company or affiliate of a corporation or LIMITED liability company purchases a single family residence:
1. The county recorder may not record the deed unless:
(a) The deed contains the information about the ownership of the corporation, limited liability company or affiliate of the corporation or limited liability company that is in the registry that the securities division of the corporation commission establishes pursuant to section 44-8041.
(b) The corporation, limited liability company or affiliate of the corporation or limited liability company submits to the county recorder a copy of the certificate of registration that is issued by the corporation commission pursuant to section 44-8041 and the name of the corporation, limited liability company or affiliate of the corporation or limited liability company on the deed matches the name on the certificate of registration accompanying the deed.
2. The deed must clearly state that the single family residence is not the primary residence of the owner.
B. Subsection A of this section does not apply to a corporation, limited liability company or affiliate of a CORPORATION or limited liability company that owns less than ten single family residences in this State.
C. For the purposes of this section:
1. "Corporation" has the same meaning prescribed in section 44-8041.
2. "Limited liability company" has the same meaning prescribed in section 44-8041.
3. "single FAMILY RESIDENCE" has the same meaning prescribed in section 33-1310.
Sec. 2. Title 44, Arizona Revised Statutes, is amended by adding chapter 41, to read:
CHAPTER 41
SINGLE FAMILY RESIDENCE PURCHASES
ARTICLE 1. GENERAL PROVISIONS
44-8041. Corporations; limited liability companies; affiliates; single family residence purchases; limitations; exceptions; registration; fee; registry; rules; definitions
A. Except as provided in subsection B of this section:
1. The total aggregate number of single family RESIDENCES in this State that may be purchased in a calendar year by a corporation, limited liability company or affiliate of a corporation or limited liability company may not exceed one hundred units.
2. A corporation, limited liability company or affiliate of a corporation or limited liability company may not purchase a single family residence in this State if, as a result of the purchase, the total aggregate number of single family residences purchased in this State during the current calendar year by the corporation, limited liability company or affiliate of the corporation or limited liability company Will exceed one hundred units.
B. Subsection A of this section does not apply to:
1. The sale or transfer of single family residences within a corporation or limited liability company.
2. The sale of newly constructed single family residences.
C. Except as otherwise provided in this subsection, a corporation, limited liability company or affiliate of a corporation or LIMITED liability company must register with the Securities Division of the corporation commission before purchasing a single family residence in this State. the registration must include the name under which the entity conducts business. The corporation commission may charge a fee for registration in an amount to be determined by the Corporation commission. The registration requirement does not apply to a corporation, limited liability company or affiliate of a corporation or limited liability company that owns less than ten single family residences in this State.
D. The corporation commission shall issue a certificate of registration to each corporation, limited liability company or affiliate of a corporation or limited liability company that registers pursuant to this section.
E. The Securities Division of the corporation commission shall establish and maintain a registry of corporations, limited liability companies and affiliates of corporations and limited liability companies that purchase or own single family residences in this State. The Securities Division of the corporation commission shall make the registry available on the corporation commission's website.
F. The corporation commission shall adopt rules necessary to carry out this section.
G. For the purposes of this section:
1. "Corporation":
(a) Means a corporation that is organized pursuant to title 10.
(b) does not include a housing authority as defined in section 36-1401.
2. "Limited liability company" means a limited liability company that is organized by filing articles of organization with the corporation commission pursuant to title 29.
3. "single family residence" hAS THE SAME MEANING PRESCRIBED IN SECTION 33-1310.
