Mortgage rates are not the only thing in real estate that is going up–For Sale signs are going up and they are here to stay.

This month the Arizona Court of Appeals made a unanimous ruling  that stated the provisions of Arizona’s Planned Community Act (Section 33-1808) regarding For Sale/For Rent signs trump any contrary provision in the Association’s governing documents.

The background facts of this case is that an Owner belongs to a master planned community in Flagstaff, and placed a ‘For Sale’ sign on his Lot on two separate occasions. On both occasions the Association had the signed removed. The Association’s Declaration contained a provision that prohibited the display of ‘For Sale’ signs; however, the Owner asserted he had a right to display the sign under the Planned Community Act.

The Owner prevailed at the Superior Court level, and the Association appealed the case to the Arizona Court of Appeals. The Court of Appeals affirmed the Superior Court’s decision—the provisions of the Planned Community Act regarding For Sale/For Rent signs trump any contrary provision in the Association’s governing documents. The Court also affirmed the Superior Court’s decision to require the Association to pay the Owner’s attorney fees in the amount of $21,820.00!

Hopefully, you are reading this and thinking to yourself, “My association already allows Owners to display For Sale Signs.” However, if your Association has a provision in the governing documents that prohibits For Sale signs, it is important to follow the statutory provisions.

While the Court of Appeals addressed the Planned Community Act (Section 33-1808), there is a comparable provision in the Condominium Act (Section 33-1261), so it is important that both Condominiums and Planned Communities adhere to the following:

  • 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;
  • The signs must be commercially produced– an association may prohibit the use of signs that are not commercially produced.

If your association has any questions on how to comply with the Statute, please contact us.