For Sale Sign Laws

Which of these

For Sale, For Rent, For Lease
What Should I Know About Arizona’s Sign Laws?

In Arizona, homeowners’ associations (HOA) are prohibited from regulating or restricting the use of “for sale,” “for rent” or “for lease” signs on a property owner’s yard as long as the sign meets statutory requirements and the HOA does not prohibit or restrict leasing. Those requirements are: (1) the sign must be commercially produced; (2) the sign cannot exceed eighteen by twenty-four inches; and (3) the rider attached cannot exceed six by twenty-four inches.

The applicable statutes are:

33-441 For sale signs; restrictions unenforceable

A. A covenant, restriction or condition contained in any deed, contract, security agreement or other instrument affecting the transfer or sale of any interest in real property shall not be applied to prohibit the indoor or outdoor display of a for sale sign and a sign rider by a property owner on that person’s property, including a sign that indicates the person is offering the property for sale by owner. The size of a sign offering a property for sale shall be in conformance with the industry standard size sign, which shall not exceed eighteen by twenty-four inches, and the industry standard size sign rider, which shall not exceed six by twenty-four inches.

B. This section applies to any covenant, restriction or condition without regard to the date the covenant, restriction or condition was created, signed or recorded. This section does not apply to timeshare property and timeshare interest as defined in section 33-2202.

C. This section does not apply to a covenant, restriction or condition in a deed, contract, security agreement or other instrument affecting the transfer or sale of an interest in real property that does not prohibit or restrict the display of a for sale sign or a sign rider on the real property.

READ THE COMPLETE STATUTE

33-1808 Flag display; political signs; caution signs; for sale, rent or lease signs; political activities

F. Notwithstanding any provision in the community documents, an association shall not prohibit or charge a fee for the use of, placement of or the indoor or outdoor display of a for sale, for rent or for lease sign and a sign rider by an association member on that member’s property in any combination, including a sign that indicates the member is offering the property for sale by owner. The size of a sign offering a property for sale, for rent or for lease shall be in conformance with the industry standard size sign, which shall not exceed eighteen by twenty-four inches, and the industry standard size sign rider, which shall not exceed six by twenty-four inches. This subsection applies only to a commercially produced sign, and an association may prohibit the use of signs that are not commercially produced. With respect to real estate for sale, for rent or for lease in the planned community, an association shall not prohibit in any way other than as is specifically authorized by this section or otherwise regulate any of the following:

  1. Temporary open house signs or a member’s for sale sign. The association shall not require the use of particular signs indicating an open house or real property for sale and may not further regulate the use of temporary open house or for sale signs that are industry standard size and that are owned or used by the seller or the seller’s agent.

READ THE COMPLETE STATUTE

33-1261 Flag display; for sale, rent or lease signs; political signs and activities; applicability

C. Notwithstanding any provision in the condominium documents, an association shall not prohibit or charge a fee for the use of, the placement of or the indoor or outdoor display of a for sale, for rent or for lease sign and a sign rider by a unit owner on that owner’s property in any combination, including a sign that indicates the unit owner is offering the property for sale by owner. The size of a sign offering a property for sale, for rent or for lease shall be in conformance with the industry standard size sign, which shall not exceed eighteen by twenty-four inches, and the industry standard size sign rider, which shall not exceed six by twenty-four inches. This subsection applies only to a commercially produced sign and an association may prohibit the use of signs that are not commercially produced. With respect to real estate for sale, for rent or for lease in the condominium, an association shall not prohibit in any way other than as is specifically authorized by this section or otherwise regulate any of the following:

  1. Temporary open house signs or a unit owner’s for sale sign. The association shall not require the use of particular signs indicating an open house or real property for sale and may not further regulate the use of temporary open house or for sale signs that are industry standard size and that are owned or used by the seller or the seller’s agent.

READ THE COMPLETE STATUTE


Statutory Challenges:

Since the enactment of the statutes in 2009 and 2002, respectively, opponents have challenged the statutes’ constitutionality and enforceability before both the Arizona Court of Appeals and the Arizona Office of Administrative Hearings. Those challenges have proved unsuccessful, a fact best illustrated by the following two recent decisions:

Hawk v. PC Village Association, Inc.

The Hawks filed suit against PC Village seeking declaratory and injunctive relief after PC Village removed from the Hawks’ property an industry standard “for sale” sign claiming that the sign was in violation of the association’s covenants, conditions and restrictions (CC&Rs). In response, PC Village argued that: (1) their CC&Rs supersede the statutes because the CC&Rs were recorded and amended years before the statutes were enacted; and (2) the statutes were unconstitutional because they substantially impaired the association’s contractual rights.

Following briefing and oral argument, the Court of Appeals rejected PC Village’s arguments, holding that the statutes trump the conflicting CC&Rs. The Court similarly rejected PC Village’s contention that the statutes are unconstitutional.

Learn more information about Hawk and AAR’s involvement with the matter.

Hack v. The Ranch at Prescott HOA

The Hacks filed a claim with the Office of Administrative Hearings seeking a ruling on whether the Ranch at Prescott HOA can require a homeowner to utilize a certain type of sign frame when displaying an industry standard “for sale” sign.

In examining the issue, the administrative law judge first concluded: “A.R.S. § 33-1808(F) provides that the only types of regulations that a homeowners association, such as the Ranch, can impose on for-sale signs are that the signs be commercially produced standard size signs.”

The Court therefore held: “The Ranch’s requirement that property owners utilize a particular type of sign frame furnished by the Ranch is precluded by A.R.S. § 33-1808(F).” Accordingly, HOAs cannot dictate the type of sign frame a homeowner utilizes when posting an industry standard “for sale” sign in the homeowners’ yard.

As evidenced by these cases, Arizona courts continue to support and enforce Arizona’s “for sale” sign statutes, thereby protecting a vital form of commercial speech that assists property owners in selling their homes.

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Frequently Asked Questions

1

Q: Can an HOA prohibit a real estate agent from placing a “for sale,” “for rent” or temporary “open house” sign on the property owner’s yard?

A: No, as long as the statutory requirements for the sign are met and the HOA does not prohibit or restrict leasing. [NOTE — This answer assumes that the agent is listing the property and has the homeowner’s permission to place the sign on the yard.]

2

Q: Can an HOA prohibit a homeowner from placing a “for sale” sign on their yard in the event that the sign is not commercially produced or exceeds eighteen by twenty-four inches in size?

A: Yes. The “for sale” sign must be commercially produced and not exceed eighteen by twenty-four inches.”

3

Q: Can an HOA require property owners to use a particular type of sign frame to display industry standard signs?

A: No. The sign may be attached to a sign frame that is L shaped, H shaped, etc. as long as the sign meets the statutory requirements.

4

Q: Can a real estate agent combine the sign with the rider to create one larger sign?

A: No. The statutes prescribe the industry standard size for both the sign and rider.

5

Q: Can an HOA require the use of a particular sign (i.e. an association approved sign)?

A: No. A.R.S. §33-1808(F)(1) provides that “[t]he association shall not require the use of particular signs indicating an open house or real property for sale” as long as the sign is industry standard size.

6

Q: Can an HOA prohibit a sign that is located on the common areas of the planned community?

A: Yes. The HOA can prohibit a sign if it is located on the common areas of the planned community.

7

Q: If the HOA’s CC&Rs were established before the statutes, do the CC&Rs control?

A: No. A.R.S. §33-441 supersedes and renders void that portion of an HOA’s CC&Rs that prohibit the display of a “for sale” sign and sign rider by a property owner on that person’s property.

8

Q: If the subject property is not governed by an HOA, must the “for sale” and “for rent” signs adhere to the statutory requirements?

A: No. The statutory requirements pertain to property within an HOA.

9

Q: Do A.R.S. §33-441, A.R.S. §33-1808, or A.R.S. §33-1261 differentiate between HOA’s under board control and HOA’s under declarant control?

A: No. The statutes make no such differentiation and apply to all HOA’s.

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