SCOTTSDALE, Ariz. — A real estate developer has been ordered to immediately stop working on parcels in the Rio Verde Foothills community until they comply with the state's regulations.
The Arizona Department of Real Estate has recently issued a cease and desist order to entities allegedly involved in selling parcels near Scottsdale before first obtaining a public report, which includes providing documents that the area has an assured water supply.
"Arizona’s laws require certain disclosures to ensure prospective purchasers understand, among other limitations or available resources, whether there is water available and what water sources the potential buyer may expect," ADRE Commissioner Susan Nicolson said in a statement. "Education of developers is key but when subdivision Public Report requirements are not followed, buyers are exposed to an unacceptable risk.”
Records show one of the Rio Verde Foothills parcels was sold in May 2024 without an approved public report from the real estate department. A couple of months later, the department issued subpoenas to developers for documents on several parcels.
The department eventually concluded that parcels on Bobwhite Way and Rio Verde Drive were allegedly sold without first obtaining the public report required under Arizona law.
12News contacted one of the entities listed in the cease and desist order and they declined to comment. The respondents will have the chance to request an administrative hearing to contest the cease and desist order.
The Rio Verde Foothills area has been plagued by water problems over the last couple of years after the City of Scottsdale stopped providing water to the unincorporated community. No plan had been in place to replace the water supply.
An estimated 500 households were affected by the shut-off and residents had to look elsewhere for a water supply.
The issue was eventually resolved last year thanks to a new arrangement with Scottsdale.
*Editor's Note: The above video is from an earlier broadcast.*