The bank has acquired a home in an unincorporated area of the county after the foreclosure sale. The bank now wants to sell the home “as is” with no disclosure requirements, and no certification of the septic tank. Is the bank exempt from the affidavit of disclosure requirement or the septic tank certification requirement?


No. A.R.S. §33-422 (A) requires that any seller of a home in an unincorporated area of the county furnish the written affidavit of disclosure at least seven days before the transfer of the home. Although the trustee conveying the home to the bank by trustee’s deed at the foreclosure sale is exempt from this requirement, the bank after acquiring title to the home by trustee’s deed is not exempt when selling the home.

Similarly, the bank is not exempt from A.A.C. R18-9-A316 which requires certification of the septic tank within six months prior to transferring the home to a buyer.