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Arizona 2025 Reforms LLC Filing Requirements - Gottlieb Law
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Arizona Corporation Commission’s 2025 Reforms: Preventing LLC Fraud
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Gottlieb Law, PLC provides this article for informational purposes only. Nothing herein creates an attorney–client relationship. Do not act or rely on this information without consulting qualified legal counsel. Laws change frequently, and only a licensed attorney can provide advice specific to your circumstances.


Arizona’s New Business Filing Rules Aim to Prevent LLC Fraud

Real estate transactions in Arizona move fast, but until now, the state’s business filing system hasn’t kept pace.  Following a surge in fraudulent LLC filings and ownership disputes, the Arizona Corporation Commission (ACC) has rolled out new 2025 rules that reshape how LLCs are formed, managed, and verified.

In recent years, bad actors have hijacked legitimate LLCs — sometimes by submitting a simple fraudulent filing.  Because the ACC traditionally functioned as a ministerial office (accepting documents without verifying accuracy), it became a target for identity theft, impersonation, and unauthorized ownership changes.  Many of those affected owned high-value real estate.

The fallout has been significant: failed escrows, delayed closings, and lenders backing out of deals due to uncertainty over ownership.  After extensive investigative reporting and pressure from business and real estate stakeholders, the ACC implemented sweeping 2025 reforms designed to strengthen Arizona’s business registry and reduce fraud.

What the ACC Actually Changed in 2025

Two Forms of ID Now Required for In-Person Business Filings

Beginning June 16, 2025, the ACC requires anyone filing in person on behalf of a business—whether for formation, amendment, or other entity record changes—to present two valid forms of identification. This applies to all in-person business filings handled through the Corporations Division.  These can be either two primary IDs (for example, a state-issued driver’s license and a passport) or one primary and one secondary form (such as a pay stub, voter registration card, or health-insurance card).

Approved law firm couriers and professional filing services are subject to separate ID verification procedures authorized by the ACC.

Remote ID verification will also be required once the Commission’s new online filing system launches later in 2025. According to draft ACC guidance, the remote process will likely involve secure upload of identification documents and live-photo or video confirmation checks to authenticate the filer’s identity.  For more details, refer to the ACC’s official announcement of the new policies to prevent business fraud in Arizona.

New Signing-Authority Form for LLCs

The ACC now permits current members or managers of an LLC to file an optional Signing-Authority Form. This document identifies non-members who are pre-authorized to file on the LLC’s behalf—such as attorneys, accountants, or trusted administrative staff.

Importantly, filing this form is entirely optional and does not alter or override the statutory authority of existing members or managers. It simply provides the ACC with a record against which to verify filings, reducing the risk of fraudulent or mistaken submissions by unauthorized third parties.

Dormant LLCs Face Administrative Dissolution

If an LLC has no filings for two consecutive years, the ACC will email the entity’s statutory agent each January requesting a simple attestation of existence.

If no response is received within 60 days, the LLC’s status will shift to “Pending Inactive.” This status does not immediately dissolve the company, but it signals the entity is at risk. If no corrective action is taken within the following 120 days, administrative dissolution will occur. Reinstatement after dissolution may require additional filings and fees.  

This attestation process will begin once the ACC’s new online filing portal is live, with the first batch of notices expected as early as January 2026, depending on the rollout of the ACC’s new online filing portal.  Now is the time to confirm that your statutory-agent email address and LLC contact information are accurate and up to date.

Custom Corporate Forms Now Allowed

Arizona corporations may now submit customized versions of their Annual Reports or Certificates of Disclosure, provided each filing includes the Arizona Corporation Commission’s official Guidance Worksheet. 

Filings that omit the worksheet will be rejected.

This policy gives corporate filers more flexibility in documenting disclosures, but it also raises the stakes for accuracy. Even when using custom formats, corporate filers must still meet all statutory disclosure requirements under the Arizona corporate code. Missing required content or formatting could result in rejection or delayed approval.  Any formatting or statutory-content errors could delay acceptance or approval, which may in turn impact pending transactions.

Practical Implications for Arizona Real-Estate Entities

These updates aren’t theoretical. For real-estate entities that use LLCs to hold or manage property, the 2025 ACC reforms have direct operational consequences.

  • Title and lending impacts: Expect title companies and lenders to scrutinize ACC records more closely. If your authorized signer isn’t on file—or your entity shows as “Pending Inactive”—your closing could be delayed or even denied.

  • Email and agent accuracy: The ACC’s attestation-of-existence notices are sent by email to each statutory agent. If that message goes unnoticed, your entity could move toward administrative dissolution, disrupting active deals.

  • Internal safeguards still matter: Even with these reforms, the ACC cannot prevent filings submitted by a legitimate member or manager, even if they are unauthorized internally. Your operating agreement and internal controls remain your first line of defense against mistaken or improper filings.

Risk-Management Playbook for Arizona Real-Estate Owners

The Arizona Corporation Commission’s 2025 reforms introduce new verification and recordkeeping requirements that every real-estate owner or investor should understand. Here’s how to stay protected and keep transactions running smoothly:

1. File the Signing-Authority Form Now

Designate a short, trusted list of individuals—such as your attorney, senior executives, or long-term administrative staff—to file on your behalf. Update the list whenever personnel or representation changes.

This helps prevent unauthorized or mistaken filings by third parties, vendors, or individuals misrepresenting authority.

2. Use In-Person Filings for Key Changes

Until the ACC’s remote ID verification system is live, in-person filings remain the most secure option. Bring valid identification, and ensure that your agent, courier, or runner understands the new two-ID requirement.

3. Build Dual-Approval Into Your Operating Agreement

Adopt a two-signer rule for sensitive actions—such as appointing a new statutory agent, transferring membership interests, or amending ownership records.

Dual approvals can prevent internal disputes and reduce exposure to unauthorized filings that could compromise control of the entity.

4. Monitor Your ACC Entity Records

Set up notifications through the ACC’s online portal or a reputable third-party monitoring service. Immediate alerts can help you detect and respond quickly to unexpected or unauthorized changes in your LLC records.

5. Align Title and Banking Signatures

Ensure your title company, escrow officer, and financial institutions have up-to-date signer information that matches what’s on file with the ACC. Mismatched records can stall or void transactions at critical stages of closing.

Special Situations Requiring Extra Attention

Certain ownership structures and investment models involve higher complexity under the new ACC policies:

  • Portfolio or Series LLC structures
  • Joint ventures with rotating or third-party managers
  • Dormant or distressed holding companies
  • Foreign-owned or out-of-state LLCs relying on service providers

Each of these situations presents unique legal and operational challenges.

Closing Table Checklist

To avoid surprises during your next real estate transaction, consider including these items in your closing documents:

  • A representation that the signer has authority under the Arizona Corporation Commission’s Signing Authority Form, if one is on file.
  • A condition confirming that the LLC is not marked as “Pending Inactive” or scheduled for administrative dissolution.
  • A post-closing calendar with annual reminders for updating statutory-agent information and reporting member or manager changes.

What to Watch for Next

The June 2025 ACC reforms are only the beginning. The Commission’s new online portal will introduce additional features, including:

  • Digital ID verification for remote filings, and
  • Automated alerts for dormant-entity status changes.

Stay alert for possible updates or procedural adjustments. Earlier this year, the ACC also discussed potential pre-registration checks and other gatekeeping measures for new entities—topics that may resurface as the new system evolves.

You can check the ACC’s notices page for updates, or let us track it for you and flag anything that affects your business.

How Gottlieb Law Helps Real Estate Clients in Arizona

Gottlieb Law works closely with real estate investors, developers, and sponsors to form and maintain compliant LLCs in Arizona. Our team provides:

  • LLC setup, planning, and documentation
  • Signing Authority form preparation and filing
  • Operating agreement updates for dual-control mechanisms
  • Deal diligence and clean-up services for transactions
  • Litigation support for disputed or fraudulent filings

Whether you’re just starting your entity or need to untangle an existing issue, our legal team is here to help.

Talk to Experienced Attorney Near You Before Your Next Filing

Arizona’s new rules are here to stay and your filings need to be airtight.  Don’t wait until a title issue, lender concern, or administrative error throws your deal off track.

Let our knowledgeable attorneys review your entity structure, recommend best practices, and help you file correctly under the 2025 ACC rules.

Call Gottlieb Law today at 602-899-8188 or use our Contact Us page here to schedule your initial consultation.


Gottlieb Law, PLC provides this article for informational purposes only. Nothing herein creates an attorney-client relationship. Do not take action based on this article without consulting qualified legal counsel. Laws change, and only a licensed attorney can provide advice tailored to your specific situation.

Arizona’s Adaptive Reuse Law Explained Converting Commercial Buildings into Housing - Gottlieb Law
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Arizona’s Adaptive Reuse Law Explained: Converting Commercial Buildings into Housing
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Gottlieb Law, PLC provides this article for informational purposes only. Nothing herein creates an attorney-client relationship. Do not take action based on this article without consulting qualified legal counsel. Laws change, and only a licensed attorney can provide advice tailored to your specific situation.


Arizona’s Bold Move to Boost Housing Supply

The Grand Canyon State has taken a significant step to address its housing shortage. If you own or manage an underperforming office, retail, or mixed-use property, Arizona’s new adaptive reuse law (formerly House Bill 2297) may directly affect you.

Effective April 7, 2025, A.R.S. § 9-462.10 establishes a streamlined process for converting qualifying commercial buildings into residential units — without requiring rezoning or public hearings.

This landmark change could reshape development opportunities across Arizona. Whether you’re a developer planning adaptive reuse projects or a municipality preparing your “objective standards” under the new law, Gottlieb Law can help you navigate these evolving requirements.

A.R.S. § 9-462.10 at a Glance

Originally enacted through House Bill 2297, A.R.S. § 9-462.10 creates a simplified approval pathway for adaptive reuse and multifamily development. The statute allows certain commercial properties to be repurposed for residential use so long as they comply with objective health, safety, and building standards adopted by the local jurisdiction.

What Buildings Qualify and What Standards Apply Now

Arizona’s adaptive reuse law (A.R.S. § 9-462.10) does not grant blanket approval for all commercial properties to become housing. To qualify, a property must meet specific statutory criteria, and municipalities may apply only a narrow set of objective standards — nothing subjective or discretionary.

Here’s how the requirements break down.

Eligible Properties:

To qualify for adaptive reuse or multifamily conversion under the statute, a property must:

  • Be an existing commercial, office, or mixed-use parcel.
  • Consist of at least one acre but not more than twenty acres.
  • Contain buildings that are economically or functionally obsolete, meaning the property is in disrepair or has at least 50% vacancy in total leasable square footage.
  • Be located in a municipality with a population of 150,000 or more, since those cities are specifically required to adopt the objective standards within 90 days after April 7 2025.

Note: The term “obsolete” is defined by statute, but municipalities may still attempt to interpret its application narrowly. For example, cities like Scottsdale have indicated they may adopt more restrictive criteria — positions that could invite future legal challenges. Gottlieb Law is closely monitoring these local interpretations and can advise property owners as municipal standards are finalized.

The statute expressly excludes parcels within historic districts, near military or commercial airports, and on tribal land (A.R.S. § 9-462.10 (G))

Required Objective Standards 

Under A.R.S. § 9-462.10(C), the objective standards established by municipalities shall require only the following elements for qualifying adaptive reuse or multifamily projects:

  • Site plan review and approval, including review by affected utility providers.
  • Verification of adequate public sewer and water service.
  • Compliance with applicable building and fire codes.
  • Confirmation that existing buildings are economically or functionally obsolete.
  • A parcel size between 1 and 20 acres.
  • A minimum 10% affordable-housing set-aside for moderate- or low-income households, maintained for at least 20 years after occupancy.
  • Parking standards that may not exceed whichever is lesser — the existing multifamily or commercial requirements.

Municipalities must include these standards — and may not add any additional or discretionary requirements beyond them.  Any attempt to impose subjective design criteria, public hearings, or compatibility reviews would likely violate the statute’s express limitation.  Developers may, at their sole discretion, dedicate a greater share of units as affordable housing.

Eligibility Minimums, Exclusion Zones, and Demolition Rights

To ensure a balanced rollout, A.R.S. § 9-462.10(A)(1) requires municipalities to make at least 10% of existing commercial, office, or mixed-use parcels eligible for multifamily or adaptive reuse.  In practice, that means cities must make at least 10% of those parcels eligible, but they can review and adjust that percentage once every ten years.  Municipalities may not exclude parcels from eligibility if the average sound level is below 65 decibels.  Existing buildings that exceed current setback or height limits may retain their original dimensions and are considered legally nonconforming under the statute.

Why the Adaptive Reuse Law Was Passed — and Why It Matters Now

Arizona faces a dual real-estate challenge:

  • A severe housing shortage driven by population growth and constrained supply; and
  • Rising commercial vacancy, especially in post-pandemic office markets.

The Legislature designed A.R.S. § 9-462.10 to address both problems by making it faster and more predictable to repurpose aging or underused commercial space for housing.

Arizona now joins a growing list of states experimenting with adaptive-reuse incentives—but unlike most, it has preempted local discretionary zoning barriers in a significant way.

Cities such as Tucson are already advancing draft code amendments to align with the statute, while others, including Scottsdale, are facing legislative and developer pressure to ensure local rules remain consistent with the state’s intent.

Whether you’re a private developer, real-estate fund, or nonprofit housing organization, it’s important to consult experienced Arizona real-estate counsel to determine whether your property qualifies and how to position projects as local standards come into force beginning April 7 2025.

Who Benefits and What to Watch 

Commercial Property Owners & Developers

If you own outdated office, retail, or mixed-use space that has been difficult to lease or sell, Arizona’s adaptive reuse law (A.R.S. § 9-462.10, formerly HB 2297) may finally make conversion financially feasible.

However, qualification is not automatic. There are several technical and legal criteria that still apply:

  • Confirm eligibility: Your property must meet the statute’s definitions, including being economically or functionally obsolete (typically 50% vacant or in disrepair).
  • Assess infrastructure: Adequate water, sewer, and utility capacity remain mandatory prerequisites.
  • Review parking and density: Cities must apply the lesser of their commercial or multifamily parking requirements, and height/density caps are governed by the statute.
  • Affordable-housing set-aside: The required 10% set-aside for low- or moderate-income housing is mandatory and must be maintained for at least 20 years.

This is where Gottlieb Law’s real estate attorneys provide value by evaluating project eligibility, preparing compliance plans, and guiding developer negotiations with city staff during implementation.

Municipalities and Planning Departments

Under A.R.S. § 9-462.10(A), municipalities with populations of 150,000 or more must adopt objective standards within 90 days after the law’s effective date.

Cities that fail to act, or that attempt to impose discretionary criteria beyond the statute’s limits, could face legal challenges or state preemption.

Several cities are already drafting zoning-text and general-plan amendments. Others appear to be moving more slowly, which could expose them to claims of statutory non-compliance.

Gottlieb Law also advises municipalities on how to balance compliance with community interests while avoiding prohibited forms of subjective or arbitrary review.

Challenges & Strategic Considerations

Even with its benefits, the new law introduces practical and legal complexities. Key considerations include:

  • Municipal resistance: Some cities may test the limits of the statute by imposing extra conditions (for instance, Scottsdale has been criticized for requiring a six-month vacancy period not found in the law).
  • Infrastructure strain: Older water and sewer systems may constrain redevelopment even if entitlements are available.
  • Structural and retrofit costs: Adaptive reuse can be capital-intensive, often revealing hidden costs such as asbestos removal or major mechanical upgrades.
  • Market feasibility: Not every location suits residential use despite statutory eligibility; access, amenities, and neighborhood fit still matter.
  • Legal gray areas: It remains to be seen how courts will treat cities that fail to adopt standards on time or that enact conflicting regulations.

Early legal consultation can help minimize these risks and ensure timely compliance.

Real Use Cases Emerging

Interest is already building across Arizona:

  • According to the ADOH FY 2025 Low-Income Housing Tax Credit Projects Report, Arizona is actively supporting large-scale affordable housing development — underscoring how the new adaptive-reuse statute (A.R.S. § 9-462.10) enters into a policy environment where affordable units are increasingly embedded in redevelopment deals. Low Income Housing Credits (LIHTC) projects.
  • Phoenix commercial property conversions are growing and the city is one of the leading markets for office space conversions.

Each case is different, but the one constant is that the legal and regulatory pathway is now clearer for qualifying commercial properties.

How Gottlieb Law Can Help Navigate the Adaptive Reuse Law

With decades of experience in Arizona real-estate and land-use law, Gottlieb Law, PLC is uniquely positioned to guide clients through this evolving legal framework:

  • Developers: Entitlement, zoning, and risk-management counsel
  • Property owners: Feasibility analysis and asset-value recovery strategies
  • Municipal clients: Statutory-compliance and ordinance-drafting support
  • Investors and lenders: Due-diligence and regulatory certainty

Whether you’re pursuing a conversion opportunity or implementing municipal standards, our attorneys can help you proceed with confidence and full legal compliance under A.R.S. § 9-462.10, effective April 7, 2025.

Ready to Convert? Talk to a Real Estate Attorney Who Gets It

Let’s Make Arizona’s Adaptive Reuse Law Work for You

The window for early action is here and it’s important to act now if you could be impacted by this new law. Whether you’re trying to convert, invest, or prepare for implementation, Gottlieb Law can help you do it the right way.

With this new law, many Arizona commercial property owners will be able to turn a vacant space into a new residential housing opportunity. Contact our experienced real estate law firm to see how we can help with your adaptive reuse project in Arizona.

Call Gottlieb Law today at 602-899-8188 or use our Contact Us page here to schedule your initial consultation.

Gottlieb Law, PLC provides this article for informational purposes only. Nothing herein creates an attorney-client relationship. Do not take action based on this article without consulting qualified legal counsel. Laws change, and only a licensed attorney can provide advice tailored to your specific situation.

Construction Defect Claims in Arizona
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Construction Defect Claims in Arizona
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This article is provided for general informational purposes only and does not constitute legal advice.  Reading it does not create an attorney–client relationship.  Because laws and interpretations change over time, you should consult qualified legal counsel about your specific situation before taking any action.


Understanding Arizona’s Construction Defect Framework

Arizona’s rapid construction growth has created both opportunity and new challenges.  As developments rise throughout Phoenix, Tucson, and other fast-growing areas, more property owners are encountering structural issues, water intrusion, and workmanship defects.

Filing a construction defect claim can be complex, and timing is critical.  Under A.R.S. § 12-552, most construction-related claims must be brought within eight years after substantial completion of the improvement.  In limited circumstances, a claim involving a latent defect discovered in the eighth year may be filed within one additional year, for a maximum of nine years total.

In addition, Arizona’s Notice and Opportunity to Repair statutes (A.R.S. § 12-1361 et seq.) require homeowners to give builders written notice and a chance to inspect or repair before filing suit.  Understanding these rules, and how they apply to your property, is essential for homeowners, buyers, and associations seeking to protect their investments.

 

Current Legal Framework in Arizona

Under A.R.S. § 12-552, Arizona law establishes an eight-year statute of repose for most contract-based claims arising from design, engineering, or construction contracts. The period is measured from the date of “substantial completion”—generally when a structure can be safely occupied or used for its intended purpose, often tied to a certificate of occupancy.

If a latent defect or related property damage is discovered during the eighth year, the law allows an additional one-year period to bring a claim. However, no claim may be filed more than nine years after substantial completion.

Separate statutes of limitations apply to specific legal theories such as negligence, breach of contract, or warranty, so determining which deadlines apply can be highly fact-dependent.

For residential properties, Arizona’s Notice and Opportunity to Repair process (A.R.S. § 12-1363) requires homeowners to formally notify the builder of alleged defects and allow inspection before filing suit. This step can temporarily pause certain deadlines, but failure to follow the procedure can jeopardize the claim.

Arizona law also recognizes implied warranties of workmanship and habitability, providing additional protection to homeowners even when the construction contract does not include an express warranty. Understanding how these warranties interact with contract terms and statutory time limits is a nuanced legal question that typically requires guidance from experienced counsel.

How Construction Defect Claims Are Typically Handled

Because these cases involve technical construction standards, strict statutory deadlines, and multiple potentially liable parties, property owners rarely benefit from handling them alone. A construction defect attorney can evaluate the facts, preserve evidence, and navigate pre-litigation procedures to avoid costly missteps.

Below is a general overview of how claims are commonly addressed, not a step-by-step guide for self-filing:

  1. Investigation and Documentation: An attorney coordinates inspections, engages qualified engineers or construction experts, and gathers photos, repair invoices, and communications to establish the defect’s cause and scope. 
  2. Pre-Litigation Notice: Legal counsel prepares and serves the required written notice to the builder under Arizona’s right-to-repair statutes, ensuring all statutory deadlines are tolled appropriately. 
  3. Contract and Warranty Analysis: Your lawyer reviews purchase agreements, builder warranties, and insurance policies to determine the responsible parties and available coverage. 
  4. Timing and Filing Strategy: Counsel ensures the claim is filed within the applicable repose and limitation periods. Waiting too long, even when a defect appears late, can forfeit recovery rights. 
  5. Association and Condominium Considerations: Condominium and HOA claims often require board authorization or member approval before pursuing legal action. Your attorney can ensure compliance with governing documents and statutory notice requirements. 
  6. Resolution and Recovery: Many cases resolve through negotiation, mediation, or arbitration before trial. Skilled construction defect counsel can leverage expert findings to reach a fair settlement or, if necessary, litigate to verdict.


Why Legal Representation Is Essential

Construction defect law combines technical construction issues with complex statutory requirements.  Missing a notice deadline or filing in the wrong forum can completely bar recovery.  Working with experienced Arizona construction defect attorneys ensures that your rights are preserved, deadlines are met, and the full scope of damages is pursued, whether through repair, settlement, or litigation.


2025 Legislative and Trend Developments to Watch

Early 2025 saw several legislative proposals that could significantly affect Arizona construction defect claims. Some measures proposed reducing the statute of repose for certain types of construction and adding procedural steps for condominium and homeowners’ association cases.

While none of these proposals have become law, they reflect a growing legislative interest in tightening timelines and increasing procedural requirements for defect claims. Many Arizona construction attorneys anticipate renewed debate on these issues in upcoming sessions.

The takeaway for property owners and associations is clear: act promptly and avoid assuming that current filing periods or extensions will remain unchanged. Waiting to “see what happens” with potential legislative changes can lead to missed deadlines and forfeited rights.

Outside the legislature, Arizona continues to see a rise in alternative dispute resolution (ADR) in defect matters. Mediation and arbitration are increasingly favored to control costs and expedite resolutions. At the same time, increasing construction costs, limited materials, and ongoing labor shortages are making it harder to maintain quality on job sites. These pressures are expected to keep defect-related lawsuits in play well into 2026 and possibly longer.

Key Mistakes to Avoid in Construction Defect Claims

Even valid construction defect claims can be undermined by procedural errors or lack of early legal guidance. Below are common mistakes and recommended best practices to help protect your investment.

Frequent Mistakes

  • Waiting too long to consult an attorney. 
  • Skipping the right-to-repair process or sending incomplete notice. 
  • Making repairs before properly documenting evidence of the defect. 
  • For associations: failing to follow voting and notice requirements before pursuing a claim.

Best Practices

  • Maintain detailed maintenance, inspection, and repair records from day one. 
  • Engage a qualified engineer or construction expert early to assess cause and damages. 
  • Review contracts and governing documents for dispute resolution clauses and notice provisions. 
  • Consult legal counsel well before deadlines to preserve all rights under the statute of repose. 
  • Document evidence thoroughly before making any repairs or alterations. 
  • Coordinate with insurance carriers regarding coverage and defense obligations.

Working with experienced Arizona construction defect attorneys helps ensure compliance with statutory procedures, preserves critical evidence, and maximizes recovery opportunities through negotiation or litigation.

Next Steps for Construction Issues

If you suspect a construction defect in your home, condominium, or association property, time is a critical factor. Our attorneys at Gottlieb Law represent homeowners, HOAs, and commercial property owners throughout Arizona in defect, warranty, and construction disputes.

Why Work with an Experienced Construction Defect Attorney

Construction defect matters are inherently complex. They often involve multiple parties, technical building issues, and strict statutory deadlines that vary based on contract terms, claim type, and the timing of discovery.

An experienced Arizona construction defect attorney can help:

  • Evaluate potential claims and identify responsible parties. 
  • Navigate the Notice and Opportunity to Repair process under A.R.S. § 12-1363. 
  • Analyze timing issues under both statutes of limitation and repose. 
  • Develop and execute a tailored resolution strategy—whether through repair negotiations, mediation, arbitration, or litigation.

For HOAs and condominium boards, legal counsel ensures compliance with voting and notice obligations before any action is filed. For builders and developers, defense counsel coordinates expert evaluations, manages insurance coverage issues, and pursues efficient resolution through alternative dispute processes.

Having knowledgeable counsel involved early helps avoid costly procedural errors, preserve evidence, and maintain compliance with Arizona’s evolving construction defect framework.

Arizona’s current law continues to center on an eight-year statute of repose under A.R.S. § 12-552, with a limited nine-year extension for certain latent defects discovered near the end of that period. Although proposed legislation has not yet changed these rules, it suggests a possible future shift toward shorter filing windows and tighter procedural requirements.

Until any changes are enacted, homeowners, buyers, and associations should treat existing deadlines as firm limits and act promptly if defects appear.

 

Ready to Speak with an Arizona Construction Defect Attorney?

If you’ve spotted issues with your home, building, or community, it’s important to act quickly. The legal deadline to file a construction defect claim may already be counting down, even if the damage seems minor at first.

Contact the team at Gottlieb Law, PLC to review your situation, confirm applicable deadlines, and discuss the most effective strategy to protect your property and your rights.

Call Gottlieb Law today at 602-899-8188 or use our Contact Us page here to schedule your initial consultation.


This article is provided for general informational purposes only and does not constitute legal advice.  Reading it does not create an attorney–client relationship.  Because laws and interpretations change over time, you should consult qualified legal counsel about your specific situation before taking any action.

 

Quitclaim Deeds and Other Deeds in Arizona - Gottlieb Law
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Quitclaim Deed and Other Deeds in Arizona: Insights You Need to Know
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Gottlieb Law, PLC provides this article for informational purposes only. Nothing herein creates an attorney-client relationship. Do not take action based on this article without consulting qualified legal counsel. Laws change, and only a licensed attorney can provide advice tailored to your specific situation.


What a Quitclaim Deed Actually Transfers (and What It Doesn’t)

A quitclaim deed allows the grantor to transfer whatever ownership interest they have in a property to the grantee. Importantly, it provides:

  • No warranties of title

  • No guarantees against liens or encumbrances

  • No protection from competing claims

The grantee takes the property as is, subject to all existing title defects.

While this principle applies nationwide, Arizona’s recorder-specific filing requirements, exemption codes, and statutory deed language make precision essential. If a quit claim deed is drafted incorrectly—or filed without legal review—the deed may be rejected or fail to achieve the intended transfer.

For a deeper breakdown of quitclaim deeds compared with other deed types, see our legal perspective on Quitclaim Deeds in Arizona here. This article builds on that by focusing on local risk factors and filing strategies.

Real Examples: When Quitclaim Deeds Work (and When They Can Backfire)

Appropriate Uses

  • Divorce Settlements: A spouse quitclaimed her interest in the marital home to her ex-husband per a divorce decree. By citing exemption code A5 (conveyance pursuant to court order, A.R.S. § 11-1134(A)(5)), the deed was accepted and recorded without issue.

  • Family Transfers: Parents transferred a cabin into their family trust via quitclaim deed. With no monetary consideration, exemption code A4 applied, allowing smooth recording.

  • Title Cleanup in Inheritance: An heir filed a quiet title action under A.R.S. § 12-1101 to secure clear title.

Problematic Uses

  • Improper Transfers: A deed was rejected for failing to include the full legal description required by A.R.S. § 33-401. This delayed refinancing and forced redrafting.

  • Sibling Land Disputes: A property gifted without documentation led to litigation. The quitclaim deed did not resolve potential tax and other issues and can still lead to legal issues if an underlying dispute exists.

Takeaway: Quitclaim deeds are valid legal tools, but they require accuracy, statutory compliance, and context-specific judgment and may not resolve underlying disputes.

Choosing the Right Deed in Arizona

Arizona recognizes several types of deeds, each serving different purposes:

  1. Quitclaim Deed – Transfers only the grantor’s interest; no warranties.

  2. Special Warranty Deed – Guarantees no encumbrances during the grantor’s ownership; limited scope.

  3. General Warranty Deed – Provides full title warranties against all claims, past and present.

  4. Beneficiary Deed – Transfers property to a named beneficiary at death, avoiding probate (A.R.S. § 33-405).

  5. Joint Tenancy Deed – Transfers property to two or more co-owners who accept the property as joint tenants with rights of survivorship.

Key Point: Selecting the wrong deed type can undermine your intent. Always confirm the deed structure with legal counsel before filing.

When transferring real estate in Arizona, selecting the appropriate type of deed is crucial to ensure the transfer aligns with your intentions and provides the necessary legal protections. 

Common Filing Mistakes in Maricopa County

Many rejections comes from preventable errors:

  • Incorrect parcel numbers (must match Assessor’s records exactly)

  • Omitted exemption codes under A.R.S. § 11-1134

  • Incomplete legal descriptions (shortened versions may be invalid)

  • Poor scan quality or improper margins in e-recordings

Checklist Before Filing:

  • Confirm exemption codes

  • Match all legal names to prior deeds

  • Use the statutory acknowledgment form with a clear notary seal

  • Record promptly to avoid disputes or probate complications

Does a Quitclaim Deed Affect Your Mortgage or Liens?

Yes. A quitclaim deed:

  • Does not remove existing mortgages or liens

  • Does not release you from loan liability unless the lender agrees (e.g., refinance or assumption)

  • May trigger lender action (such as acceleration of a HELOC) if transferred without consent

  • Can have gift tax implications if the transfer exceeds annual IRS thresholds

Protect Your Property Transfer with Professional Legal Review

There are no second chances with real estate transfers and many people misuse deed transfers, which causes more legal headaches later on.  

Gottlieb Law has reviewed countless quitclaim filings that were rejected, misfiled, or challenged later in court. From estate planning to divorce settlements, we don’t just draft your deed—we advise on your legal matter to ensure what type of property transfer makes the most sense and why.  Gottlieb Law provides full-service legal work related to real estate law, deed preparation, legal review, and litigation, all tailored to your situation.

Call Gottlieb Law today at 602-899-8188 or use our Contact Us page here to schedule your initial consultation.

Gottlieb Law, PLC provides this article for informational purposes only. Nothing herein creates an attorney-client relationship. Do not take action based on this article without consulting qualified legal counsel. Laws change, and only a licensed attorney can provide advice tailored to your specific situation.

Legal Challenges in Co‑Living & Shared Housing in Arizona: Strategies for Success
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Legal Challenges in Co‑Living & Shared Housing in Arizona: Strategies for Success
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Gottlieb Law, PLC provides this article for informational purposes only. Nothing herein creates an attorney–client relationship. Do not take any action based on this information without first consulting qualified legal counsel. Laws change over time, and you should seek legal advice specific to your situation.

Co-Living’s Growth in Arizona

Co-living, once concentrated in larger metropolitan markets, is now expanding across Arizona as residents seek more affordable housing and flexible living options. Shared housing models include multi-tenant roommate arrangements, investor-owned homes with multiple occupants, and purpose-built co-living developments.

While demand is rising, Arizona’s legal framework was not designed with these models in mind. Property owners, developers, and tenants often face unclear or conflicting rules when it comes to zoning, occupancy, leases, and liability.

Why the Law Can Be Complicated

Unlike traditional rental housing, co-living arrangements must navigate:

  • Local zoning ordinances: Arizona cities and towns may impose occupancy limits and definitions of “family” that can restrict how many unrelated adults may live together. These rules vary widely by municipality.  It is important to consult local ordinances and legal counsel for city-specific guidance. 
  • The Arizona Residential Landlord and Tenant Act (ARLTA): Codified at A.R.S. § 33-1301 et seq., ARLTA generally governs residential rental relationships. Even if a landlord labels an agreement as a “license” rather than a “lease,” Arizona courts may still apply ARLTA protections if the arrangement functions as a tenancy. 
  • Insurance and liability: Standard landlord or homeowner policies may not cover claims arising from multiple unrelated tenants under one roof, creating additional exposure for owners.

How Legal Counsel Helps

Because Arizona’s statutes and municipal codes do not always align neatly with modern co-living models, careful planning is critical. Structuring leases, ensuring zoning compliance, and anticipating potential disputes can make the difference between a profitable investment and costly litigation.

At Gottlieb Law, our attorneys regularly advise clients on real estate, landlord–tenant, and contract issues, including those that arise in shared housing and co-living contexts. With the right strategy, property owners and investors can take advantage of Arizona’s growing demand for co-living while staying compliant with the law.

Regulatory & Zoning Landscape

State and Municipal Zoning Laws

Arizona cities have a patchwork of zoning regulations, and that’s a big deal if you’re planning to rent or own a shared living property. Many local ordinances restrict how many unrelated people can legally live in a single residence.

In 2024, Arizona enacted House Bill 2720, which requires cities with more than 75,000 residents to allow accessory dwelling units (ADUs) in single-family zones. Under the law, property owners must be permitted to build at least one attached and one detached ADU on qualifying lots, subject to size limits and building codes. The law also restricts cities from imposing extra parking requirements, design mandates, or family-relationship restrictions specific to ADUs.

This opens the door for more flexible housing arrangements, but implementation is still unfolding and HOAs or restrictive covenants can still prohibit ADUs even where the city allows them. Permitting delays, neighborhood opposition, and traditional occupancy caps could pose hurdles for investors and property owners.

Building, Occupancy, and Permit Requirements

In Arizona, when a rental property shifts from a standard single-family use to a higher-intensity co-living arrangement, cities may classify it differently under their zoning codes. Once a property is re-classified, it may be subject to additional requirements such as enhanced fire safety measures, minimum square footage per resident, and sometimes extra kitchen or bathroom facilities or other requirements. These standards are based on municipal zoning codes and the International Building Code, and they vary by city.

Enforcement typically occurs when neighbors file complaints or inspectors observe overcrowding. By understanding the local classification rules and securing proper approvals up front, landlords can avoid potentially costly citations and forced shutdowns.

Lease Structuring and Tenant Rights

Customizing Lease Agreements

Generic lease templates are rarely sufficient for shared housing. A well-drafted lease should address:

  • Rent contributions and utility sharing 
  • Use of common areas and quiet hours 
  • Guest policies and privacy expectations 
  • Dispute resolution procedures

Including these terms up front reduces conflicts and provides structure if disagreements arise. Gottlieb Law assists landlords and tenants in preparing customized leases that reflect the realities of shared housing while complying with Arizona law.

Arizona Residential Landlord and Tenant Act

The Arizona Residential Landlord and Tenant Act (A.R.S. § 33-1301 et seq.) governs deposits, notices, maintenance obligations, and eviction procedures across the state. These rules can apply even in roommate and co-living situations.

A common misconception is that only the person named on the lease is a “tenant.” In practice, Arizona courts may extend tenant protections to other occupants if they live at the property, contribute to rent or utilities, and establish it as their residence. Lockouts, unilateral changes to terms, or treating residents as “guests” without notice typically violate ARLTA.

It is important to note that ARLTA protections may not apply to certain agreements such as short-term stays under 30 days unless a court finds the arrangement functions as a tenancy.

Cohabitation and Roommate Agreements

Beyond leases, roommates and co-occupants may enter into private contracts that set expectations for financial obligations, shared responsibilities, and dispute resolution. Arizona courts recognize these agreements under general contract law. For example, an unmarried couple or group of roommates could sign a written agreement allocating rent, utilities, or household chores.

While these contracts do not replace a landlord–tenant relationship under ARLTA, they provide enforceable rights among the occupants themselves and can reduce uncertainty in informal living arrangements.

Insurance, Liability, and Risk Management

Insuring Co-Living Properties

Standard homeowner’s insurance may not apply when a property is rented to multiple unrelated tenants. In these situations, owners should obtain landlord insurance or commercial policies tailored to rental properties and confirm coverage with their insurance agent. Policies should address property damage, fire, liability claims, and risks associated with higher tenant turnover. If shared bedrooms or short-term occupancy are involved, it is critical to confirm with the insurer that the policy covers those uses.

At Gottlieb Law, we can help property owners identify legal risks associated with their housing model and work with insurance professionals to ensure coverage aligns with the property’s actual use.

Tenant Insurance and Liability

Requiring tenants to carry renters insurance is a common way to protect both landlords and tenants. These policies provide coverage for tenants’ personal belongings and may also help address liability claims involving tenants.

Lease agreements may also include indemnity clauses, which hold tenants responsible for their own actions and negligence. These provisions are especially valuable in shared housing, where overlapping use of property increases the chance of accidents. Indemnity language must be carefully drafted to comply with Arizona contract law.

Insurance carriers vary widely in how they treat co-living risks, and written confirmation of coverage is essential.

Fair Housing and Non-Discrimination Compliance

Co-living arrangements may be subject to the federal Fair Housing Act and the Arizona Civil Rights Act, with limited exceptions. Landlords cannot deny housing or apply different rental terms based on race, color, religion, sex, familial status, disability, national origin, or ancestry.

This means all applicants must be evaluated using consistent criteria — such as credit checks, background screening, or income requirements — applied equally to every applicant. Maintaining written records of your criteria and decisions is an effective way to demonstrate compliance if challenged.

Tenants choosing their own roommates may have more flexibility, but landlords and property managers cannot endorse or advertise discriminatory preferences in listings or lease policies. Gottlieb Law can assist clients in developing screening practices that protect both property investments and compliance with fair housing laws.

Privacy and Consent in Shared Spaces

Privacy is often a key concern in co-living arrangements. Leases should clearly define which spaces are shared (such as kitchens, bathrooms, or living rooms) and which are private (such as bedrooms or designated storage areas).

Under the Arizona Residential Landlord and Tenant Act (A.R.S. § 33-1343), landlords must give at least two days’ notice before entering a tenant’s dwelling, including bedrooms in shared homes, unless there is an emergency.

Video surveillance in common areas must be disclosed to all tenants in writing. Surveillance in bedrooms and bathrooms is prohibited, and landlords should avoid audio recording due to additional legal restrictions under Arizona’s wiretapping laws.

Failure to follow privacy protections can result in serious legal consequences, including tenant claims for damages.

Shared Housing with Public Assistance

Some tenants in shared housing may use Housing Choice Vouchers (Section 8) or other public assistance programs. These arrangements are governed by HUD regulations and local Public Housing Authorities (PHAs) and apply when public assistance is involved.

Under HUD’s rules for shared housing (24 C.F.R. § 982.615):

  • The unit must provide adequate space and shared facilities (kitchen, bathroom, common areas). 
  • Rent and utilities must be divided on a pro-rata basis, with the lease reflecting the tenant’s share. 
  • The landlord must comply with inspection standards and administrative requirements imposed by the PHA.

While voucher tenants add complexity to lease structuring, participation can provide stable income streams for landlords and help meet community housing needs. Gottlieb Law assists property owners in structuring leases that satisfy HUD and PHA requirements while remaining enforceable under Arizona law.

Tenant Collective Action and Retaliation

Arizona law explicitly protects tenants who join together to request repairs, report code violations, or assert their rights. Under the Arizona Residential Landlord and Tenant Act (A.R.S. § 33-1381), a landlord may not retaliate by raising rent, terminating a lease, or decreasing services in response to tenant complaints or organizing activity.

These protections apply in shared housing as well. Whether tenants are co-signers on a lease or roommates with individual agreements, landlords must address complaints lawfully and avoid retaliatory conduct. Tenants remain obligated to pay rent, but they cannot be punished for exercising their legal rights.

Risk from Enforcement and Shutdown

Co-living properties in Arizona are receiving heightened scrutiny. Demand for affordable housing is growing, but cities and state agencies are acting quickly when properties violate zoning, licensing, or safety requirements. Recent enforcement actions, many tied to unlicensed sober living or recovery housing, illustrate the broader risks for shared housing operators:

Illustrative cases include:

  • Tucson – Ocotillo Apartments (2023): City officials condemned an apartment complex operating as informal co-living and sober living after finding fire hazards, faulty wiring, and other unsafe conditions. Residents were displaced, underscoring the risk of operating without safety compliance.
  • Mesa – Canal on Baseline (2023-2024): Nearly 40 residents in a luxury condo complex were evicted after AHCCCS suspended payments to the operator over Medicaid fraud allegations. The site was never licensed for group housing, showing how unpermitted conversions can trigger both financial and housing disruption.
  • Phoenix/Laveen – Element on Euclid Subdivision (2023–2024): A behavioral health provider tied almost 30 homes in a new subdivision to unlicensed recovery housing. Maricopa County issued zoning violation notices for operating a “recovery community” in single-family homes. The case closed only after the homes were vacated, highlighting the zoning and licensing risks of high-intensity shared housing.

Common enforcement triggers in Arizona include:

  • Neighbor complaints about overcrowding or parking/traffic. 
  • Fire and building code violations. 
  • Unlicensed housing operations tied to Medicaid or voucher programs. 
  • Tenant reports of unsafe or unsanitary conditions.

The pattern is clear: informal or unpermitted shared housing may operate temporarily but is vulnerable to sudden enforcement. Landlords and investors should confirm zoning classification, licensing, and health/safety compliance before opening a co-living property.

Why Engaging with Local Agencies Matters

The speed and force of recent enforcement actions show why municipal consultation is critical. Whether you are a landlord renting to unrelated adults or a developer launching a co-living brand, the risk of operating without zoning clarity or permits is too high to ignore.

While this article is not exhaustive and cannot replace legal advice for your specific situation, here are practical steps to reduce risk:

  • Confirm whether your property is classified as a “rooming house,” “group home,” or standard residential use. 
  • Apply for appropriate permits or, if necessary, seek special use approvals or variances before renting to multiple tenants. 
  • Schedule voluntary inspections for fire safety, electrical systems, and occupancy compliance. 
  • Keep records of licenses, inspection approvals, and all correspondence with city zoning officials.

These Arizona enforcement examples underline one principle: co-living models succeed when built on a foundation of compliance and cooperation with local authorities. Gottlieb Law assists property owners, investors, and managers with legal strategies that reduce risk, protect tenants, and keep operations sustainable.

Strategies for Legal Success in Co-Living and Shared Housing

Upfront Compliance and Permitting

Begin with a zoning and code review. Confirm occupancy limits for unrelated adults, identify any structural changes requiring permits, and determine whether your property qualifies for accessory dwelling unit (ADU) options under Arizona’s new law. Even landlords renting a single-family home to four roommates must confirm compliance.

Tailored Lease and Cohabitation Templates

Generic leases rarely address the realities of shared housing. Customized agreements should cover rent allocation, utilities, privacy, and dispute resolution. Gottlieb Law can draft and review leases — and, where appropriate, supplemental roommate agreements — that bring clarity and enforceability.

Insurance and Liability Planning

Standard homeowner’s policies often exclude co-living risks. Landlord or commercial insurance should cover property damage, liability, and tenant disputes. Requiring renters insurance adds another layer of protection. Lease provisions can hold tenants accountable for their own conduct and negligence, reducing disputes in shared homes.

Fair Screening and Inclusion Policies

Arizona landlords are subject to the federal Fair Housing Act and the Arizona Civil Rights Act. Use standardized criteria such as income ratios, background checks, and credit history — and apply them consistently. Train staff to avoid discriminatory language in marketing or communications.

Privacy Safeguards

Clearly define which areas are shared and which are private. Arizona law (A.R.S. § 33-1343) requires landlords to give at least two days’ notice before entering a tenant’s private space, regardless of lease language. If cameras or smart locks are used in common areas, disclose this in writing. Surveillance of bedrooms or bathrooms is never permitted.

Tenant Engagement and Communication

Tenants who feel heard are less likely to escalate disputes. Regular communication — whether through meetings, group chats, or shared boards — can prevent problems. Remember: tenants have the right to organize, and landlords cannot retaliate against those who exercise that right (A.R.S. § 33-1381).

HUD and Public Assistance Compliance

Shared housing may be eligible for Housing Choice Voucher (Section 8) participation, but HUD rules (24 C.F.R. § 982.615) require pro-rata rent allocation, shared facility access, and PHA inspection approval. Gottlieb Law helps landlords adapt their agreements and property structures to meet these requirements and avoid interruptions in rental income.

Emergency Preparedness

Because inspections, zoning actions, or neighbor complaints can happen unexpectedly, landlords benefit from having legal counsel already familiar with their property. Gottlieb Law assists in defending against eviction claims, appealing zoning decisions, and negotiating with city officials to keep operations compliant.

Co-Living, Cohabitation Agreements, and Shared Housing in Arizona

Co-living and shared housing are reshaping Arizona’s housing market. They provide affordability and flexibility but also bring legal complexity. Success depends on getting the details right — zoning, lease structuring, insurance, tenant rights, and municipal compliance.

At Gottlieb Law, we regularly advise clients on real estate transactions, landlord-tenant disputes, and municipal permitting. Our goal is to help you avoid legal missteps and build housing strategies that last.

Let Gottlieb Law guide you through Arizona’s housing regulations. Whether you are an experienced investor or managing your first shared rental, we help ensure your property is compliant, protected, and positioned for long-term success.

Call us today at 602-899-8188 or schedule a consultation here. You can also explore our full range of Arizona real estate legal services including landlord-tenant representation, contract drafting, and more.

Gottlieb Law, PLC provides this article for general informational purposes only. Nothing in this article constitutes legal advice or creates an attorney–client relationship. You should not act or refrain from acting based on the information provided here without seeking advice from qualified legal counsel regarding your specific situation. Laws change over time, and the application of law can vary depending on individual facts and circumstances.

Arizona Rental Tax Ban 2025 - What Landlords and Tenants Need to Know - Gottlieb Law - Arizona Real Estate Lawyers
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Arizona Rental Tax Ban: What Landlords and Tenants Need to Know for 2025
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Gottlieb Law, PLC provides this article for informational purposes only. Nothing herein creates an attorney–client relationship. Reading this article is not a substitute for seeking advice tailored to your situation. Laws change over time, and you should consult qualified legal counsel regarding any specific questions.


Understanding Arizona’s Rental Tax Ban and What It Means for 2025

Starting January 1, 2025, Arizona will eliminate the residential rental transaction privilege tax (TPT). For years, many cities and towns required landlords to collect this local tax—often 2–4%—on rent payments.

The new statewide ban applies only to residential rentals of 30 days or more (not commercial leases). It overrides local city and town authority, meaning landlords across Arizona can no longer collect or remit residential rental tax, even if their municipality previously required it.

For tenants, this means monthly rent bills should drop by the amount of the former rental tax. For landlords, it simplifies compliance and reduces reporting obligations, but it also requires careful adjustments. Lease agreements that currently say “plus applicable rental tax” must be updated, and landlords should stop charging the tax immediately as of January 1. Landlords will also need to file their final December 2024 TPT return and close out their rental TPT license if it applied only to residential properties.

Legislative Background: The Foundation of the Rental Tax Ban

Amendment to A.R.S. § 42-6004(H)

Recently, the Arizona Legislature amended A.R.S. § 42-6004 to add subsection (H). The statute provides that “from and after December 31, 2024, a city, town, or other taxing jurisdiction may not levy a transaction privilege, sales, gross receipts, use, franchise or other similar tax or fee on the business of renting or leasing real property for residential purposes.”

In practical terms, this means that starting with January 2025 rent, municipalities can no longer collect residential rental TPT. The prohibition applies statewide.

What the Amendment Means for Cities and Towns

This statutory change eliminates more than $230 million in annual municipal revenue once generated by taxing residential rentals. Cities and towns will need to adjust their budgets accordingly. For tenants, the benefit is direct — rental bills should drop by the amount of the repealed tax.

For landlords, the law simplifies compliance but requires attention to lease language, billing systems, and tax filings during the transition.

Key Changes for Landlords to Implement

Automatic Cancellation of TPT Licenses

Effective December 31, 2024, the Arizona Department of Revenue (ADOR) automatically canceled TPT licenses that were limited to business code 045 (Residential Rental, Leasing & Licensing for Use).

  • Landlords who only rented residential property no longer need a license.

  • Landlords who also lease commercial property must maintain their license for those activities.

Ceasing Collection of TPT Charges

From January 2025 forward, landlords must stop charging residential rental TPT. Continuing to bill tenants for the repealed tax violates state law and may lead to penalties or tenant disputes. Gottlieb Law recommends that landlords audit their billing systems immediately to ensure no residual tax charges appear on rent statements.

Updating Lease Agreements and Billing Systems

Residential leases signed before 2025 may include language such as “plus applicable rental tax.” Landlords should:

  • Amend leases to remove TPT references.

  • Update property management and accounting software to reflect the elimination.

  • Notify tenants so expectations are clear.

These updates are essential to maintain compliance and avoid over-collection.

Exemptions to Keep in Mind

The ban applies only to residential rentals of 30 days or more. The following remain taxable under Arizona’s TPT system:

  • Commercial leases
  • Short-term rentals under 30 days
  • Health care and long-term care facilities
  • Hotels, motels, and other transient lodging

What Tenants Should Know About the Rental Tax Ban

Expected Rent Savings Starting in 2025

With the elimination of the residential rental TPT, tenants statewide are projected to save more than $230 million annually. Rent payments that previously included a city tax should decrease beginning with January 2025 rent.

Tenants should carefully review rent statements to confirm that no TPT charges appear after December 31, 2024.

Reviewing Rent Statements and Lease Terms

Even though the tax ban is automatic, oversights can occur. If a tenant sees TPT still listed on a rent bill in 2025, the first step is to notify the landlord in writing and request correction.

If the charge continues, tenants may seek help from a qualified attorney or file a complaint with the Arizona Department of Revenue (ADOR). The law places the burden of proof on landlords to show that any additional charges are not improperly tied to repealed TPT.

Tenant Rights and How to Act

Arizona tenants have the right to pay rent without being charged a tax that no longer applies. Tenants who believe they are being billed unlawfully should:

  1. Document rent statements and lease provisions.

  2. Contact the landlord promptly for clarification.

  3. Seek legal counsel or assistance if the problem persists.

Gottlieb Law assists renters with understanding their options, enforcing compliance, and protecting tenant rights under Arizona’s new framework.

Compliance and Enforcement in 2025

Legal Risks of Non-Compliance

Landlords who continue to collect residential rental TPT after January 1, 2025 risk:

  • Enforcement actions from ADOR.

  • Audits and penalties for improper billing.

  • Potential tenant disputes or litigation if overcharges are not corrected.

Government Oversight and Resources

The Arizona Department of Revenue is responsible for implementing the new rules and provides official guidance online. Both landlords and tenants can access compliance updates, FAQs, and support resources through AZTaxes.gov and the ADOR Residential Rental team.

Registering with County Assessors

Although the TPT requirement is eliminated, landlords must still register residential rental properties with their county assessor. This separate requirement remains in force, and penalties can apply for failing to register. Tenants may also check public assessor records to confirm that their rental property is properly registered.

Preparing for Arizona Rental Tax Changes: What You Need to Do Next

The elimination of residential rental TPT in Arizona reshapes how landlords, tenants, and property managers handle rental transactions. Here’s what to keep in mind moving forward:

  • Landlords should update lease agreements, remove TPT billing, and confirm that all property management and accounting systems reflect the new tax rules beginning January 2025.

  • Tenants should carefully review rent statements in 2025 and understand their rights if unlawful TPT charges appear.

  • Property managers should train staff and revise internal procedures to maintain compliance with Arizona’s updated requirements.

  • All parties must understand the statutory exemptions and remember that rental properties must still be registered with county assessors.

Stay Compliant with Legal Guidance

From and after December 31, 2024, cities and towns can no longer impose TPT on residential rentals under A.R.S. § 42-6004(H). While the change reduces costs for tenants and simplifies compliance for landlords, proper preparation is key to avoiding errors, penalties, or disputes.

Gottlieb Law’s real estate attorneys are available to guide landlords, tenants, and property management companies through these changes. Proper legal advice ensures you stay compliant, avoid penalties, and fully benefit from Arizona’s new rental tax ban.

If you want personalized support navigating these updates or need help updating lease agreements and billing systems, call our firm today at 602-899-8188 or schedule a consultation with Gottlieb Law to meet with our experienced real estate attorneys.


This article is provided by Gottlieb Law, PLC for general informational purposes only. It does not create an attorney–client relationship, and it should not be relied on as legal advice. Laws change, and every situation is different. You should consult qualified legal counsel about your specific circumstances.

Understanding Arizona delayed MLS listings and the NAR delayed marketing policy helps sellers protect their interests. Gottlieb Law guides you through real estate law for smooth transactions.
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Delayed MLS Listings: What Arizona Home Sellers Need to Know
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Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.

Arizona’s real estate market is always evolving, and staying ahead means knowing how new policies impact your home sale. The National Association of Realtors (NAR) recently introduced a delayed marketing policy aimed at giving sellers more control over how and when their properties appear on public platforms.  For Arizona home sellers, understanding this policy alongside state-specific rules is critical. That’s where Gottlieb Law comes in. With deep roots in Arizona real estate law, they guide sellers, buyers, agents, and brokers through these shifting waters, helping you make informed decisions every step of the way.

What Is the NAR Delayed Marketing Policy?

NAR’s “Multiple Listing Options for Sellers” offers sellers choices on how their listings appear publicly. Two key concepts stand out:

  • Delayed Marketing Exempt Listings: These are exempt listings where the seller directs the listing broker to delay public marketing through IDX and syndication for a period allowed by the local MLS.  Each MLS has discretion to determine the length of this delayed marketing period.  This approach allows sellers to keep their homes under wraps initially while still preparing for broader exposure and reflects the seller’s choice to postpone public advertising.
  • Office Exclusive Listings: In this scenario, listings remain private within a brokerage and never reach the broader MLS network.

Sellers must sign a certification acknowledging the benefits they are waiving or delaying, such as broad exposure through the MLS, and confirming their informed decision to opt for delayed marketing or office exclusivity.  Understanding these nuances can significantly affect your home’s exposure and sale timeline, which is why legal guidance is so valuable.

The Multiple Listing Options for Sellers policy is expected to roll out in phases, with each local MLS setting its own rules for implementation. Sellers should confirm with their real estate counsel and listing agent how these policies apply in their market.

Arizona’s Take on Delayed Marketing Policies

Arizona’s largest MLS, ARMLS, has adopted and enforces the Clear Cooperation Policy, which requires listings to be submitted to the MLS within one business day after any public marketing.  However, Arizona provides some flexibility through the “Coming Soon” status, which allows listings to remain in a pre-market phase for up to 30 days.

Not every Arizona MLS interprets NAR’s delayed marketing policy in the same way.  Some are still refining their rules, creating a patchwork landscape that can confuse both sellers and agents.  This complexity underscores the value of working with a seasoned real estate attorney who understands the intricacies of Arizona real estate law in 2025.

Legal Considerations for Arizona Home Sellers

Navigating Arizona real estate law in 2025 requires aligning with both state regulations and NAR’s evolving policies. The Arizona Department of Real Estate oversees how licensed professionals handle property marketing under active listing agreements.  Missteps could lead to disputes over how days on market are calculated or raise concerns about MLS data integrity.

Failing to comply with these regulations exposes sellers to legal risks that can delay,  or even derail, transactions.  Gottlieb Law’s extensive experience can help sellers focus on compliance and avoid costly missteps.

The Upsides and Downsides of Delayed MLS Listings

Choosing to delay MLS listings comes with both benefits and drawbacks.

On the upside, sellers who value privacy, such as public figures or those with tenant-occupied properties, often appreciate the additional control it provides.  Delaying can also give agents flexibility to gauge market interest, refine pricing, and build interest before going fully public.

On the downside, holding back a listing from full public exposure can shrink your buyer pool, potentially extending the time your home remains on the market and impacting sale price.  It may also distort MLS data, complicating property comparisons and influencing buyer perceptions.

Sellers should weigh these factors carefully, with guidance from experienced legal counsel to balance privacy with market reach.

How Gottlieb Law Supports Arizona Buyers, Sellers, Agents, and Brokers

Whether you are a home seller navigating delayed MLS listings or a buyer entering Arizona’s competitive market, Gottlieb Law provides tailored legal insight for real estate transactions.

The firm’s team can advise on everything from drafting airtight contracts to focusing on compliance with MLS rules and the Clear Cooperation Policy.  Real estate agents and brokers need to remain compliant in a fast-changing legal landscape.  From reviewing listing agreements to managing disclosures around office exclusive listings in Arizona, Gottlieb Law can serve as a trusted partner.

Tips for Arizona Sellers Considering Delayed MLS Listings

  • Engage a qualified real estate attorney early. Understanding how delayed marketing options apply to your situation helps prevent surprises.
  • Negotiate listing agreements carefully.  Ensure they clearly outline marketing timelines and privacy protections.
  • Confirm compliance.  Align with both NAR policies and Arizona real estate law 2025 to keep your sale on track.
  • Leverage the “Coming Soon” status.  Arizona’s MLS coming soon status may offer a strategic marketing advantage without violating rules.

Final Thoughts on Arizona Delayed MLS Listings

Arizona home sellers face a complex real estate environment with shifting policies around MLS listings and marketing.  Balancing privacy concerns with the need for broad buyer exposure isn’t always straightforward.  That’s why working with an accomplished real estate law firm like Gottlieb Law is valuable. Having attorneys with the knowledge and experience to guide sellers, buyers, agents, and brokers through these challenges helps position clients for successful transactions.

Ready to Navigate Arizona Real Estate with Confidence?

Selling or buying a home in Arizona comes with unique legal challenges, so don’t go it alone. Connect with Gottlieb Law to get advice and trusted representation that puts your interests first.

Whether you’re managing delayed MLS listings or handling more complex transactions, the team at Gottlieb Law is ready to help you move forward with clarity and confidence.

Call our firm today at 602-899-8188 or schedule a consultation online with Gottlieb Law to meet with our experienced real estate attorneys.

Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.

Smart Home Technology and Privacy Laws - Essential Insights for Arizona Tenants and Landlords - Gottlieb Law
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Smart Home Technology and Privacy Laws: Essential Insights for Arizona Tenants and Landlords
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Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.


Smart home technology, including thermostats, door locks, cameras, and voice assistants like Alexa, can collect far more than just ambient data. These devices may capture behavioral habits, movement patterns, and, in some cases, snippets of private conversations — especially if audio recording features are enabled.

Because of that, Arizona landlords and tenants must tread carefully. Under Arizona’s wiretap law, A.R.S. § 13-3005, it is unlawful to intercept oral or electronic communications unless the person is a party to the communication or has obtained consent from at least one party involved. Similarly, federal law, particularly the Wiretap Act, part of the Electronic Communications Privacy Act (ECPA), prohibits the intentional interception or use of wire, oral, or electronic communications without at least one party’s consent, and imposes serious civil and criminal penalties for violations.

Tenants in Arizona have a well-established legal right to privacy in their homes. This right is supported by the Arizona Residential Landlord and Tenant Act (ARLTA) and long-standing common law protections against unreasonable intrusion. When landlords install smart devices, they walk a legal tightrope. They should ensure clear lease terms, obtain explicit tenant consent, and strictly avoid placing any surveillance or recording devices in areas where tenants have a heightened expectation of privacy — such as bedrooms and bathrooms.

Tenants can also take proactive steps. They can negotiate data-sharing limits, opt out of certain device features, and hold landlords accountable if those boundaries are crossed. And with the increasing use of AI-based tenant screening systems, there is a growing risk of data misuse and potential housing discrimination, something both landlords and tenants should be aware of.

Here are some of the key details landlords and tenants need to know about smart home technology and privacy rights in Arizona.

Introduction to Smart Home Technology in Rentals

Defining Smart Home Devices

Smart home devices in rental housing include Wi-Fi-enabled locks, smart thermostats, motion sensors, indoor cameras, lighting systems, and voice assistants like Google Home or Amazon Alexa. These tools are marketed as convenience-boosters, but in practice, they often collect a continuous stream of data about the activities inside a rental unit, sometimes with or without the tenant’s full awareness.

For landlords, smart technology offers potential benefits: lower utility bills, streamlined maintenance, and enhanced security. But for tenants, the same systems can introduce serious concerns about privacy, consent, and data control, especially when surveillance devices are installed or controlled by someone else.

Adoption Trends in Arizona

Across Arizona, smart home tech is rapidly shifting from a luxury feature to a standard expectation. Landlords increasingly install smart locks, security cameras, and thermostats during turnover renovations or as a way to attract tech-forward tenants. At the same time, many tenants are adding their own devices, including doorbell cameras, smart sensors, and connected lighting, to increase personal security and comfort.

Ownership and access issues become even more complicated when both landlord and tenant install smart tech within the same unit. These situations may require clear lease terms, documented consent, and written policies to ensure neither party oversteps legal boundaries.

Federal Privacy Framework

Electronic Communications Privacy Act (ECPA)

The Electronic Communications Privacy Act (ECPA) is a federal statute that prohibits the intentional interception, use, or disclosure of wire, oral, or electronic communications without proper legal authority or the consent of a party to the communication. This could include not only voice recordings and messages but also data transmitted through smart thermostats, security cameras, smart locks, and other connected home devices.

If a landlord installs a smart home system that captures or transmits tenant data, such as a doorbell camera with a microphone or a smart thermostat that detects presence, and accesses that data without the tenant’s informed consent, they may risk violating federal law.

In a rental context, landlords are typically not present during tenant communications, meaning they may not be able to rely on the one-party consent rule to justify surveillance.

Violations of the ECPA can result in significant penalties.  

Arizona State Privacy Protections

Consent to Recording

It is unlawful under Arizona law to intentionally intercept a conversation or electronic communication without the consent of at least one party.  In most landlord–tenant scenarios involving smart devices, the landlord is not a party to tenant conversations and is not present during recordings. That means any audio recording without tenant consent, even if incidental, may be criminally unlawful under Arizona’s wiretap statute.

Surreptitious Photography and Videotaping

Arizona law also criminalizes surreptitious recording in private areas, such as bedrooms, bathrooms, and dressing areas. Under A.R.S. § 13-3019, it is unlawful to install or use any device for visual surveillance in areas where people have a reasonable expectation of privacy, regardless of whether sound is also captured.

Arizona Residential Landlord and Tenant Act (ARLTA)

The ARLTA provides tenants with the right to privacy and quiet enjoyment of their rental unit. It also restricts how and when landlords can access the premises.

Under A.R.S. § 33-1343, a landlord may only enter a tenant’s dwelling with at least 48 hours’ written notice, and at a reasonable time, unless it’s an emergency.

Installing, inspecting, or adjusting smart home devices inside a rental unit, including thermostats, cameras, or smart locks, may qualify as an “entry” under ARLTA. Landlords cannot legally stop by to check the smart tech without following the notice and timing requirements.

Lease Drafting and Consent Mechanisms

Smart-Tech Addenda

If smart devices are installed in the rental, the lease should clearly identify each device and its function. Landlords should obtain informed, written consent for any device that collects data,  especially if it records audio, video, or occupancy information. A well-drafted addendum can help ensure clarity and reduce risk.

Data Security and Third-Party Risks

FTC and Industry Guidance

The Federal Trade Commission (FTC) encourages incorporating privacy by design in smart home systems. This means limiting data collection to what is necessary, using secure transmission and storage practices, and offering clear options for user control. While not a binding legal standard, following FTC guidance may help demonstrate reasonableness in the event of a legal dispute.

Vendor and Platform Selection

Landlords should choose reputable device vendors that offer end-to-end encryption, access logging, and clear privacy policies.

Tenant Rights and Remedies

Breach of Privacy Claims

If a landlord installs or uses smart devices without valid consent, or places them in areas where tenants have a reasonable expectation of privacy, tenants may pursue claims under Arizona law.  

Lease-Based Remedies

Violations may also support claims for breach of contract or breach of the covenant of quiet enjoyment. Tenants may bring actions to pursue their rights and enforce lease terms.  

Emerging Issues in AI and Tenant Screening

AI-driven tenant screening tools can evaluate a range of data points and these systems may inadvertently introduce unintended bias.  If a tool disproportionately impacts applicants based on protected characteristics such as race, national origin, age, or disability, landlords may face scrutiny or liability under the federal Fair Housing Act and similar state laws.

Best Practices for Landlords and Tenants

For Landlords:

  • Clearly identify each smart device in the lease, including its function
  • Obtain informed, written consent for every device that collects or records data
  • Avoid installing devices in private areas like bedrooms and bathrooms
  • Use secure platforms and restrict access to authorized individuals only
  • Train all staff and property managers on privacy risks and applicable laws

For Tenants:

  • Carefully review any smart tech provisions in the lease; negotiate when needed
  • Ask to opt out of features that track movement, audio, or video
  • Request device access logs or documentation of how data is used
  • If something feels intrusive or unclear, consider consulting a lawyer before signing

How Gottlieb Law Can Assist

Policy Drafting: We can help landlords write tech-specific lease addenda that protect tenants’ privacy in the process.

Dispute Resolution: Whether you’re a tenant dealing with unauthorized surveillance or a landlord facing privacy claims, our team is ready to help.

Litigation and Defense: Whether it’s a privacy dispute, lease violation, or other legal conflict, we manage the litigation process from start to finish.

Fair Housing: We evaluate screening tools and help draft nondiscrimination policies that stand up to legal scrutiny.

Thinking about adding smart tech to your lease—or concerned about how it’s being used? Gottlieb Law assists clients with all aspects of Arizona Landlord–Tenant Law.

Work With Gottlieb Law Today

Whether you’re outfitting a rental unit with smart locks or trying to figure out why your living room camera keeps blinking, the legal line between security and surveillance is sharper than ever. Gottlieb Law can make sure your rights are protected and can assist with a wide range of landlord tenant issues.

Call our firm today at 602-899-8188 or schedule a consultation online with Gottlieb Law and get clarity on your smart home technology in rental properties today.

Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.

Adaptive Reuse in Arizona - Legal Strategies for Converting Obsolete Commercial Buildings into Modern Spaces - Gottlieb Law
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Adaptive Reuse in Arizona: Legal Strategies for Converting Obsolete Commercial Buildings into Modern Spaces
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Gottlieb Law, PLC provides this article for informational purposes only. Reading it does not create an attorney-client relationship, and you should not act or rely on any of the information herein without first consulting qualified legal counsel. Laws and local procedures change frequently. Always seek legal advice specific to your situation.


Arizona’s Adaptive Reuse Surge: What’s Driving It

For years, vacant warehouses, outdated office towers, and underutilized commercial corridors dotted Arizona’s urban core. Now? They’re buzzing again, but not as what they once were. Thanks to a powerful mix of state-level legal reforms and community-driven development incentives, these properties are being reimagined as housing, creative workspaces, art hubs, and more.

This shift, known as adaptive reuse, is transforming how developers, investors, and even first-time property owners approach Arizona real estate.

But this isn’t just about architecture or smart design. The real momentum comes from Arizona’s evolving legal framework, which now removes many of the zoning barriers and procedural roadblocks that once made redevelopment costly or time-consuming.

This article details and clarifies the key updates to our previous article on converting commercial buildings into residential spaces in Arizona. Let’s dive into what you need to know.

What Arizona Law Actually Says About Adaptive Reuse

Arizona clarified its stance with House Bill 2110 and the updated A.R.S. § 9‑462.10: when a project qualifies, cities must allow adaptive reuse or multifamily development without requiring rezoning, conditional use permits, or other public-hearing-based approvals.

So if you own a former storefront and want to convert it into residential lofts, and your property meets the criteria, you may be able to bypass the traditional rezoning process entirely, subject to objective standards.

Under A.R.S. § 9‑462.10, “adaptive reuse” refers to converting an existing building to multifamily use while maintaining some or all of its original structure. But importantly, the law also permits partial or full demolition, depending on the project’s needs. Redevelopment doesn’t have to preserve the entire building to qualify.

Cities with populations over 150,000, including Phoenix and Tucson, are now required to adopt objective standards to permit adaptive reuse projects by right. These standards may include:

  • Reduced parking requirements

  • Code alternatives for older structures

  • Flexibility for materials and setbacks in historic properties

Is Your Commercial Building Eligible? Here’s What to Know

Eligibility depends on several key factors:

  • Structure Type

The building must typically be an existing commercial, office, or mixed-use structure located within a qualifying municipality (population 150,000+). Industrial and institutional properties are generally excluded.

  • Parcel Size

The parcel must be at least 1 acre but no more than 20 acres in size. Projects on smaller infill lots or very large commercial sites do not qualify under this statute.

  • Condition

The building must be economically or functionally obsolete, either in a state of disrepair or with at least 50% vacancy in its leasable space.

  • Affordability Set-Aside 

The project must set aside at least 10% of total units for moderate- or low-income housing, for a minimum of 20 years. This requirement applies even if the project is not seeking tax credits or other housing subsidies.

When You Don’t Need Rezoning (And When You Still Might)

The biggest legal change was the move toward “by-right” development. Under A.R.S. § 9-462.10, qualifying adaptive reuse and multifamily projects in large cities can bypass traditional rezoning processes, as long as they meet objective criteria and aren’t located in restricted areas.

Restricted areas include:

  • Historic districts or buildings designated historic at the local, state, or national level

  • Airport influence zones

  • Military facility buffer areas

  • Tribal lands

Height and Density Rules:

The statute allows projects to build to the highest allowable height and density for multifamily or mixed-use zoning within 1 mile of the site, up to a cap of five stories. However, if the site is directly adjacent to single-family zoning, building height may be limited to two stories within 100 feet of that edge.

Setbacks and Parking:

Cities cannot impose stricter setback requirements than those in the existing zoning code. Adaptive reuse projects may retain nonconforming setbacks, and parking requirements cannot exceed those for standard multifamily residential projects, unless the project is mixed-use.

Adaptive Reuse Starts with a Plan: How to Launch Your Project the Right Way

Whether you’re converting an old department store, warehouse, or office block, successful adaptive reuse starts with strategic planning. Here are key steps to help your project launch on solid legal and financial footing:

Feasibility First

Analyze the market, the physical condition of the property, and how your project aligns with state and local incentive criteria.

Design for Reality

Hire architects and engineers who understand both code compliance and preservation standards, not just one or the other. Early coordination can save months of rework and help frame viable code alternatives when needed.

Permitting and Variances

Cities like Phoenix allow for code equivalencies and waiver requests, but navigating deadlines, documentation, and evidentiary standards can be complex. Legal counsel can help reduce risk and avoid delays.

Your Legal Partner in Arizona Adaptive Reuse and Beyond

Arizona’s legal landscape is finally catching up with how its cities want to grow and that opens the door for developers, property owners, and civic-minded entrepreneurs to breathe new life into the state’s aging building stock.

At Gottlieb Law, we advise clients on commercial projects and can assist with legal strategy, adaptive reuse projects, and development goals.  

Need help with a legal issue?  Call us at 602-899-8188 or use our Contact Us page to schedule your consultation.

Gottlieb Law, PLC provides this article for informational purposes only and nothing herein creates an attorney-client relationship. Do not act or rely on any of the information contained herein without first consulting qualified legal counsel. Laws change frequently, and every project involves unique circumstances.

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