Some HOA's still think there CC&R's concerning SB 1062 (The statute that contains language on For Sale signs in an HOA community) supersede state statutes.  In Arizona that is not true.

The HOA/Shea Homes in Trilogy dictates what goes on the for sale sign as well as color and placement of the sign. The HOA has not been turned over to the community so it is being governed by the Board of Directors made up of Shea Homes personnel.  Their control over what goes on the for sale sign has moved almost all agents that display a for sale sign that meets the HOA's guidelines, non-compliant with state statutes. Penalties for this can be as harsh as fines and loss of license.

When this was brought to the attention of the Director of the HOA and one of the board members (Shea Homes) they took the position that they would fight any changes and sent a letter of non-compliance to the homeowner advising that they would be fined $250/ per day until the agent's sign was removed.  This sign was manufactured to comply with the colors that the association wanted but it also complied with state advertising statutes.  The HOA/Shea Homes advised that they appreciated the sign colors but the content of the main sign could only contain the words "For Sale". According to the Arizona Department of Real Estate this does not comply with the Arizona statute A.A.C. R4-28-502 on advertising.

On December 12, 2008, the State Supreme Court ruled that SB 1062 is enforceable.  In addition, the statutes concerning advertising by Arizona real estate sales people has been tested and prevailed.  Therefore, when the HOA/Shea Homes takes this action and the agent complies, the agent is non compliant with state statutes and could lose their license along with their broker. The HOA/Shea Homes has taken the position that they do not care. Signs must comply with the CC&R's with the acception of Shea homes signs as displayed in front of their model homes.

The arrogance of the HOA/Shea Homes is shocking as it places the community and agents serving that community at risk and in violation of state statues. The few people that are at the center of this is also making a good organization look bad.  Personally I think it's time for change in Shea Home policy and perhaps personnel within the HOA/Shea organization..

Jeff Daley
LuxuryValleyHomes.com
Licensed REALTOR® State of Arizona