33-423

33-423. Disclosure; reports; indemnity;
applicability; violation; classification

A. A disclosure report pursuant to this section may be provided to the buyer or
seller of real property by a third party as authorized by the buyer or seller and shall
be based on officially adopted and electronically posted or otherwise readily available
governmental maps or information that discloses whether the real property is subject to
one or more of the following:

1. Special flood hazard areas designated by the federal emergency management agency
pursuant to 42 United States Code chapter 50.

2. Military airports and ancillary military facilities as defined in section
28-8461 or as disclosed pursuant to section 28-8484 or 32-2113.

3. Military training routes as shown in the map produced pursuant to section 37-102
and military restricted airspace as shown in the map produced pursuant to section 37-102.

4. Public and private airports that are approved by the federal aviation
administration.

5. Expansive soils as shown on maps issued by the natural resource conservation
service or on other officially adopted and readily available governmental maps.

6. Fissures as shown on earth fissure maps issued by the Arizona geological survey
or pursuant to section 27-152.01, paragraph 3.

7. Special tax assessment areas or taxing authority and amount of special
assessments in addition to ad valorem taxes as shown in the current tax records of the
applicable county assessor.

8. Radon gas potential zones as shown on current maps issued by the United States
environmental protection agency.

9. Environmental hazard superfund sites including the sites listed in the Arizona
superfund program list and the water quality assurance revolving fund registry, or listed
by the United States environmental protection agency including the national priorities
list, the comprehensive environmental response compensation and liability information
system database or on maps issued by the department of environmental quality or
equivalent databases of those sites.

10. Any other condition that affects the real property that the buyer or seller
authorizes and the third party provider agrees to provide in a third party provider
disclosure report.

B. For any third party provider of information as prescribed by this section, the
following apply:

1. A seller or buyer shall not be required to provide the written disclosure
provided by this section to an insurance company, a lender or a governmental agency.

2. The third party provider shall carry errors and omissions insurance coverage
with limits of at least one million dollars per occurrence and in an aggregate of at
least ten million dollars. A person who violates this paragraph is guilty of a class 1
misdemeanor.

C. If an action is brought as a result of an error, inaccuracy or omission in the
disclosure made only by a third party provider who provides information pursuant to
subsection A of this section, the third party provider shall provide a defense against
the action, shall indemnify the buyer or seller who authorized the disclosure report and
persons licensed pursuant to title 32, chapter 20 who represent the buyer or seller for
any judgment rendered and shall reimburse reasonable attorney fees and costs incurred in
defending the action, unless the buyer, seller or agent for the buyer or seller had
knowledge of the error, inaccuracy or omission or the buyer, seller or agent for the
buyer or seller modified the disclosure and the modification resulted in the error,
inaccuracy or omission. Nothing in this section shall be construed to prohibit a third
party provider of information from agreeing by contract that the third party provider
shall indemnify a person to a greater extent than is required by this section.

D. If information that is disclosed pursuant to this section is subsequently
rendered inaccurate as a result of any governmental action, map revision, changed
information or other act or occurrence after the delivery of the disclosure, no person is
liable for the information that was disclosed unless the person had knowledge of the
error, inaccuracy or omission.

E. This section shall not be construed to create a cause of action for the use of
maps or other information pursuant to this section. This section does not apply to the
sale of real property by any person pursuant to section 32-2183 or section 32-2195.03, or
any affiliate of that person.

F. This section does not obligate any person to provide or purchase a disclosure
report that is the subject of this section.

G. The listing of a condition in subsection A of this section or in a third party
provider disclosure report does not by itself make that condition material or immaterial
to a particular real estate transaction. The materiality of any disclosure is governed
as otherwise provided by law.