2023A-11094-CHC-ROC Notice of Hearing and Packet MAILED
2023A-11094-CHC-ROC · Registrar of Contractors · 2024-02-23
REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA
Alejandro Gonzales , Case No. 2023-11094 COMPLAINANT, Docket No. 2023A-11094-CHC-ROC
v. NOTICE OF HEARING ON CONTESTED CASE D R H Tucson Construction Inc License No. ROC 124600,
RESPONDENT.
This Notice of Hearing is issued under A.R.S. § 41-1092.05(D).
HEARING INFORMATION The hearing is set for:
April 9, 2024 9:00 AM Jenna Clark Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.
If you have requested to appear in-person at the hearing, the hearing will be held at 1740 W Adams Street, Phoenix, AZ 85007.
You must attend this hearing. This is an adversarial hearing before an administrative law judge, and is conducted in a similar manner as judicial proceedings. Thus, you must be prepared to present evidence, including witness testimony and documents, in support of your case.
STATEMENT OF LEGAL AUTHORITY AND JURISDICTION The State of Arizona has determined that the licensing and regulation of construction contractors is a proper state function, and has vested authority in the Registrar of Contractors
to administer Title 32, Chapter 10 of the Arizona Revised Statutes. A.R.S. §§ 32-1101 et seq.
All hearings for alleged violations of Title 32, Chapter 10 are conducted under Title 41,
Chapter 6, Article 10. A.R.S. § 32-1156.
The statutes and rules governing the hearing can be found at: Arizona Revised Statutes §§ 41-1092 to -1092.12, and Arizona Administrative Code R2-19-101 to -122. PARTICULAR ARIZONA STATUTES AND RULES INVOLVED The statutes and rules the Respondent is alleged to have violated are cited in the complaint and citation, which were served on the Respondent on January 26, 2024.
SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED The complaint and citation allege that the Respondent committed the following act(s):
Charge: 1 A.R.S. § 32-1154(A)(3) - R4-9-108(a)
Charge: 2 A.R.S. § 32-1154(A)(22)
THE PARTIES TO THE ADMINISTRATIVE HEARING Because Respondent is a licensee and is charged with an act(s) or omission(s) that is
cause for the suspension or revocation of a license, Respondent is a party to this case and will
be a party to the hearing.
Because Complainant alleged Respondent committed an act(s) or omission(s) that is cause for the suspension or revocation of a license, Complainant is a party to this case and will be a party to the hearing. Respondent and Complainant, as the parties to the hearing, will present evidence and argument to the administrative law judge. The Registrar’s assigned investigator will appear as a witness at the hearing.
RIGHT TO BE REPRESENTED The parties to the administrative hearing may choose to be represented by an attorney. A.R.S. § 41-1092.07(B). If one of the parties is a company, the company may be represented
by an officer or employee if that person satisfies the conditions set forth in A.R.S. § 32-
1156(B).
CHANGE OF ADDRESS Each party must inform the Registrar and the Office of Administrative Hearings of
any change of address within five (5) days of the change. A.R.S. § 41-1092.04.
HEARING PROCEDURES AND RULES The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092
to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and processes governing the administrative hearing. Copies of the statutes, rules, and articles
regarding the administrative hearing process can be found at https://www.azoah.com/.
REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE
The Registrar’s investigators, employees, and attorneys will appear at the hearing via
video conference or telephone unless requested by a party to appear in-person. Requests for
the Registrar’s investigators, employees, or attorneys to appear in-person must be filed with the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days prior to the hearing date.
HEARING PACKET In the interests of administrative efficiency, the Registrar compiles and discloses certain documents to the parties and the Office of Administrative Hearings. These documents are attached to this Notice of Hearing as the “Hearing Packet.” If any party wishes to submit additional evidence, they must do so during the hearing after completing a disclosure statement. See “Disclosure Statement” section below.
SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS The parties to the hearing must be prepared to present evidence in support of their case. If a party wants to obtain testimony from a witness or documents not in the party’s possession, the party must prepare and file a written subpoena for the Administrative Law Judge to review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a subpoena can be found on the Office of Administrative Hearings’ website at www.azoah.com. The party seeking a subpoena must serve notice on all the parties to the hearing, and on the Registrar. A.R.S. § 41-1092.04.
DISCLOSURE STATEMENT At least seven calendar days before the hearing, each party must prepare and serve a
disclosure statement on all other parties, and file it with the Office of Administrative Hearings.
A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the
party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/forms/RC-L-800A%20- %20Prehearing%20Disclosure%20Statement%2020191007v4.pdf
CHANGING THE HEARING DATE The date of the hearing may only be advanced or delayed on the agreement of the
parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may
be changed by filing a written agreement of the parties to change the date of the hearing. The
written agreement must be filed with the Office of Administrative Hearings, directed to the
assigned Administrative Law Judge, and transmitted to the Registrar and all other parties. The
assigned Administrative Law Judge may be found on the Office of Administrative Hearings’ web portal at www.azoah.com If a party would like to move the date of the hearing without agreement of all parties, the party must file a written motion with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmit a copy to the Registrar and all other parties.
The motion must state in detail good cause for why the date of the hearing should be advanced or delayed, and the position of all other parties regarding the advancement or delay. A party may also file a motion asserting a right to an expedited hearing upon a showing of extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).
RESOLUTION SHORT OF ADJUDICATION In any case which is resolved or settled by the parties, or which is withdrawn by the Complainant without objection from Respondent after the Notice of Hearing is issued, the parties must notify the Office of Administrative Hearings of the resolution or settlement. Any such cases will be listed on the Registrar’s website and its records under the category: “Closed Complaints – Resolved/Settled/Withdrawn.” Dated February 26, 2024.
By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors
Copy mailed via USPS First Class mail February 26, 2024 to: Respondent(s) D R H Tucson Construction Inc 6875 N Oracle Road, Ste 125 Tucson, AZ 85704 Rosary A. Hernandez, Esq. 1850 N Central Ave Ste 1700 Phoenix, AZ 85004
Complainant(s) Alejandro Gonzales 15847 S Old Joyce Pl. Sahuarita, AZ 85629
Copy sent electronically this same date to: Respondent at email address on record with the Registrar Respondent’s Attorney at email address of record with Registrar Complainant at email address on record with the Registrar
Case No. 2023-11094 /
Katie Hobbs, Governor Martin Quezada, Director
Hearing Packet FAQ What is the Hearing Packet?
The Hearing Packet is a packet of certain documents collected or issued by the Registrar over the course of its investigation.
Who gets the Hearing Packet?
The Hearing Packet is assembled and distributed to all parties and to the Office of Administrative Hearings (“OAH”) prior to an administrative hearing.
What types of cases does the Registrar prepare a Hearing Packet for?
The Registrar prepares a Hearing Packet for Complainant-Handled Cases and No-Pay Cases. Note: If the Docket Number on the Notice of Hearing contains a “CHC” or “NPC”, your case is a Complainant-Handled Case or a No-Pay Case.
What is in the Hearing Packet?
The Hearing Packet contains essential case-specific documents and at a minimum will include the following documents:
● Original complaint;
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ
Katie Hobbs, Governor Martin Quezada, Director
● Citation; and ● Answer.
The Hearing Packet will also contain the following documents (if applicable):
● Jobsite inspection notices, notes, and photos; ● Written directives; and ● Compliance inspection notices, notes, and photos.
What if there are documents missing from the Hearing Packet?
If there is any evidence you submitted to the Registrar that are not included in the Hearing Packet it is your responsibility to introduce that evidence at the administrative hearing. Note: The administrative law judge assigned to your case does not have access to the entire Registrar record.
If there is additional evidence you submitted to the Registrar during the investigation that you also want to introduce as evidence during your hearing, it is your responsibility to:
● Properly disclose that evidence to the other party; and ● Introduce the evidence during your hearing.
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ
Katie Hobbs, Governor Martin Quezada, Director
How do I disclose evidence I intend to use at a Hearing?
You must properly disclose any and all documents and witnesses you intend to use at your hearing according to the Registrar’s Prehearing Disclosure Rules. See Arizona Administrative Code Section R4-9-118.
A sample prehearing disclosure form and instructions are provided to the parties by the Registrar.
How do I obtain documents I previously submitted to the Registrar?
If you previously submitted documents to the Registrar and need a copy of these documents, please contact the Registrar’s Legal Department or submit a public records request at https://roc.force.com/AZRoc/s/roc-public-request.
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ
Complainant: Alejandro Gonzales 15847 S Old Joyce Pl. Sahuarita, AZ 85629
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Respondent: D R H Tucson Construction Inc 6875 N Oracle Road, Ste 125 Tucson, AZ 85704
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 October 12, 2023
Jobsite Inspection Notice Re: Complaint Number 2023-11094
Dear Complainant and Respondent:
A formal complaint has been filed with the Arizona Registrar of Contractors.
A jobsite inspection is scheduled for November 7, 2023 at 9:00 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.
COMPLAINANT: 1. Under A.R.S. § 32-1155(D)(1), the Respondent must be allowed, upon request, the opportunity to inspect the work complained of within fifteen (15) days of receiving this notice. If Respondent is not provided an opportunity to inspect the work within the fifteen (15) day time period, the Registrar may be prohibited from taking further action on this complaint. 2. The Registrar may also be precluded from taking further action on this complaint, if the work that is the subject of the complaint is subject to neglect, modification, or abnormal use. A.R.S. § 32-1155(D)(2) 3. You must provide safe access to any area to be inspected. If access to a roof or other elevated area is required, you must provide a means to safely access the area (ladder or manlift as appropriate). Additionally, please secure any animals.
RESPONDENT: 1. Enclosed is a copy of the complaint. Under A.R.S. § 32-1155(D) you must be allowed, upon request, the opportunity to inspect the work complained of within fifteen days of the date of receipt of this notice. 2. To assist the assigned investigator in evaluating the merits of the complaint, please submit a response to the enclosed complaint to the assigned investigator prior to the scheduled inspection. 3. If you do not attend the jobsite inspection, your absence may negatively impact the investigation, and your interests. 4. If a building permit(s) was required for this project, please have the building permit information available at the jobsite inspection. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 If either party needs to reschedule the jobsite inspection, please notify the assigned investigator at least three business days prior to the inspection date to schedule a new date and time.
If the parties resolve the complaint prior to the inspection, please notify the assigned investigator in writing and by phone as soon as possible.
Sincerely, John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 A Guide to Jobsite Inspections
Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license alleging poor workmanship, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.
Jobsite Inspection Rights and Responsibilities Access to inspect: The property owner has complete control over who they allow on the property. However, if the Registrar’s investigator or the contractor cannot inspect the work, the Registrar will not move forward with a citation.
Cooperation: Arizona law enables injured parties to seek relief for damages through several paths. When dealing with a licensed contractor, the Registrar of Contractors’ administrative complaint process may serve as one of those possible paths. However, in order to use that path, the Registrar relies on the cooperation of all parties to a complaint.
Minimum workmanship: The Registrar investigates workmanship complaints for compliance with minimum workmanship and professional industry standards. The Registrar does not issue citations for work that meets these standards.
Scope: The scope of the Jobsite Inspection is limited to items listed in the complaint filed with the Registrar’s office. It is the complainant’s responsibility to point out the complaint item(s) and the Investigators role to review the item(s). If the complainant identifies additional workmanship items not listed in the original complaint, they must file an addendum to the complaint. The Registrar’s Investigator may identify additional administrative violations by the contractor (e.g. work performed out of scope of the license and failure to provide a contract that meets requirements set by Arizona law) at the time of the inspection.
The Role of the Investigator At the Jobsite Inspection, the Registrar’s investigator will: ● Only investigate the items listed on the complaint form filed with the Registrar. ● Will gather evidence to make an informed decision about the complaint items.
What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will leave the jobsite and review the evidence provided during the inspection. Generally, the investigator does not make any determination at the time of the jobsite inspection regarding whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.
Questions? If you have already filed a complaint and it was assigned to an investigator, you are encouraged to contact that investigator directly with the information listed in your jobsite inspection letter. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762.
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 A Guide to Written Directives Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.
What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will determine whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.
Written Directives Access: In order to use the administrative process offered by the Registrar, a property owner must provide reasonable access to allow the contractor to fix their work as directed by the Registrar in a Written Directive. Complainants may not put any additional, unnecessary restrictions on the Respondent above and beyond the initial contract requirements agreed upon at the beginning of the project. Respondents are required to make repairs on items identified on any Written Directive, not otherwise restricted by local code or HOA limitations. Complainants must make access available to the Respondent to make the required repairs and failure to provide reasonable access may result in the Registrar dismissing the complaint.
Contractor obligations: The Written Directive will set a deadline for compliance. This is the period of time determined by the Investigator as necessary to complete the items listed in the Directive. ● The deadline for compliance assumes the contractor will promptly begin working on the items listed in the Directive. ● Do not wait. Both parties should communicate quickly to schedule the work.
Extensions: If good cause exists to extend this deadline, either party may submit a written request to the Investigator. The Registrar will review requests for extension and determine if the Directive should be extended.
Manner and method of performance: The Registrar does not provide specific instructions for how to correct poor work. A licensed contractor is expected to have the skill and professionalism to complete the work. Moreover, the complainant may not dictate the manner of repair. If the contractor fails to appropriately correct the work according to the contract, the Registrar will issue a citation.
Compliance Inspection: After the Written Directive expires, the Registrar’s Investigator will contact the complainant to determine if the contractor performed any corrective work. ● If the contractor did corrective work, the Investigator may schedule a Compliance Inspection to determine if the poor work is corrected. ● If the contractor did not perform any corrective work, the Registrar’s Investigator will not do a Compliance Inspection and will determine whether to issue a citation based on the administrative record.
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Work performed after the directive ends: After the Directive period ends, a property owner may choose to allow the contractor to continue its work. The Registrar encourages parties to work cooperatively, but cannot require a homeowner to continue to allow a contractor access to the property after the Directive period ends in order for the administrative process to continue. Denying access after the Directive ends is not grounds to close or dismiss a complaint.
Questions? If you have already filed a complaint and it was assigned to an investigator, you are encouraged to contact that investigator directly with the information listed in your jobsite inspection letter. If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762.
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Complainant: Alejandro Gonzales 15847 S Old Joyce Pl. Sahuarita, AZ 85629
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Respondent: D R H Tucson Construction Inc 6875 N Oracle Road, Ste 125 Tucson, AZ 85704
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 October 27, 2023
Jobsite Inspection Notice Re: Complaint Number 2023-11094
Dear Complainant and Respondent:
A formal complaint has been filed with the Arizona Registrar of Contractors.
A jobsite inspection is scheduled for November 7, 2023 at 9:00 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.
COMPLAINANT: 1. Under A.R.S. § 32-1155(D)(1), the Respondent must be allowed, upon request, the opportunity to inspect the work complained of within fifteen (15) days of receiving this notice. If Respondent is not provided an opportunity to inspect the work within the fifteen (15) day time period, the Registrar may be prohibited from taking further action on this complaint. 2. The Registrar may also be precluded from taking further action on this complaint, if the work that is the subject of the complaint is subject to neglect, modification, or abnormal use. A.R.S. § 32-1155(D)(2) 3. You must provide safe access to any area to be inspected. If access to a roof or other elevated area is required, you must provide a means to safely access the area (ladder or manlift as appropriate). Additionally, please secure any animals.
RESPONDENT: 1. Enclosed is a copy of the complaint. Under A.R.S. § 32-1155(D) you must be allowed, upon request, the opportunity to inspect the work complained of within fifteen days of the date of receipt of this notice. 2. To assist the assigned investigator in evaluating the merits of the complaint, please submit a response to the enclosed complaint to the assigned investigator prior to the scheduled inspection. 3. If you do not attend the jobsite inspection, your absence may negatively impact the investigation, and your interests. 4. If a building permit(s) was required for this project, please have the building permit information available at the jobsite inspection. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 If either party needs to reschedule the jobsite inspection, please notify the assigned investigator at least three business days prior to the inspection date to schedule a new date and time.
If the parties resolve the complaint prior to the inspection, please notify the assigned investigator in writing and by phone as soon as possible.
Sincerely, John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 A Guide to Jobsite Inspections
Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license alleging poor workmanship, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.
Jobsite Inspection Rights and Responsibilities Access to inspect: The property owner has complete control over who they allow on the property. However, if the Registrar’s investigator or the contractor cannot inspect the work, the Registrar will not move forward with a citation.
Cooperation: Arizona law enables injured parties to seek relief for damages through several paths. When dealing with a licensed contractor, the Registrar of Contractors’ administrative complaint process may serve as one of those possible paths. However, in order to use that path, the Registrar relies on the cooperation of all parties to a complaint.
Minimum workmanship: The Registrar investigates workmanship complaints for compliance with minimum workmanship and professional industry standards. The Registrar does not issue citations for work that meets these standards.
Scope: The scope of the Jobsite Inspection is limited to items listed in the complaint filed with the Registrar’s office. It is the complainant’s responsibility to point out the complaint item(s) and the Investigators role to review the item(s). If the complainant identifies additional workmanship items not listed in the original complaint, they must file an addendum to the complaint. The Registrar’s Investigator may identify additional administrative violations by the contractor (e.g. work performed out of scope of the license and failure to provide a contract that meets requirements set by Arizona law) at the time of the inspection.
The Role of the Investigator At the Jobsite Inspection, the Registrar’s investigator will: ● Only investigate the items listed on the complaint form filed with the Registrar. ● Will gather evidence to make an informed decision about the complaint items.
What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will leave the jobsite and review the evidence provided during the inspection. Generally, the investigator does not make any determination at the time of the jobsite inspection regarding whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.
Questions? If you have already filed a complaint and it was assigned to an investigator, you are encouraged to contact that investigator directly with the information listed in your jobsite inspection letter. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762.
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 A Guide to Written Directives Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.
What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will determine whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.
Written Directives Access: In order to use the administrative process offered by the Registrar, a property owner must provide reasonable access to allow the contractor to fix their work as directed by the Registrar in a Written Directive. Complainants may not put any additional, unnecessary restrictions on the Respondent above and beyond the initial contract requirements agreed upon at the beginning of the project. Respondents are required to make repairs on items identified on any Written Directive, not otherwise restricted by local code or HOA limitations. Complainants must make access available to the Respondent to make the required repairs and failure to provide reasonable access may result in the Registrar dismissing the complaint.
Contractor obligations: The Written Directive will set a deadline for compliance. This is the period of time determined by the Investigator as necessary to complete the items listed in the Directive. ● The deadline for compliance assumes the contractor will promptly begin working on the items listed in the Directive. ● Do not wait. Both parties should communicate quickly to schedule the work.
Extensions: If good cause exists to extend this deadline, either party may submit a written request to the Investigator. The Registrar will review requests for extension and determine if the Directive should be extended.
Manner and method of performance: The Registrar does not provide specific instructions for how to correct poor work. A licensed contractor is expected to have the skill and professionalism to complete the work. Moreover, the complainant may not dictate the manner of repair. If the contractor fails to appropriately correct the work according to the contract, the Registrar will issue a citation.
Compliance Inspection: After the Written Directive expires, the Registrar’s Investigator will contact the complainant to determine if the contractor performed any corrective work. ● If the contractor did corrective work, the Investigator may schedule a Compliance Inspection to determine if the poor work is corrected. ● If the contractor did not perform any corrective work, the Registrar’s Investigator will not do a Compliance Inspection and will determine whether to issue a citation based on the administrative record.
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Work performed after the directive ends: After the Directive period ends, a property owner may choose to allow the contractor to continue its work. The Registrar encourages parties to work cooperatively, but cannot require a homeowner to continue to allow a contractor access to the property after the Directive period ends in order for the administrative process to continue. Denying access after the Directive ends is not grounds to close or dismiss a complaint.
Questions? If you have already filed a complaint and it was assigned to an investigator, you are encouraged to contact that investigator directly with the information listed in your jobsite inspection letter. If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762.
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Arizona Registrar of Contractors Jobsite Inspection Notes Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 11/7/2023 Inspection Time: 9:00AM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
Complainant: Alejandro Gonzales Respondent: D R H Tucson Construction Inc
Present for the complainant: Alejandro Gonzales Present for the respondent: Vicky Yanez, Marlaina Spillios, Danielle Paliga, Sam Mills Overview of project: This is a new construction home with the close of escrow stated to be 6/26/23 General Notes: Photos taken with agency issued Canon PowerShot ELPH180 and/or agency issued Google cell phone. Audio recorded with agency issued Olympus recorder and/or agency issued Google cell phone.
Complaint Item 1: “The grading is incredibly terrible. To the point where during the last heavy rain, water pooled all around my home and water began to seep through the flooring and carpet. The builder promised to regrade by 9/22/23, more than one month since I experienced heavy rain.” Investigator’s Observations: Verified. As confirmed by the respondent, there has been excessive ponding on the south side of the house, including water intrusion into the house due to the depth of the ponding. Observed during the jobsite inspection; the entire lot is lower than the: • Street • The property to the north • The property to the south • The adjoining land to the east. As stated in the ROC Workmanship Standards: • Grades should be established to insure proper drainage away from the structure. No standing water should remain in the yard more than 48 hours after a rain, unless requirements specify retention of storm water in yard. As stated in the International Residential Code (IRC) • R401.3 Drainage. Surface drainage shall be diverted to a storm sewer conveyance or other approved point of collection that does not create a hazard. Lots shall be graded to drain surface water away from foundation walls. The grade shall fall not fewer than 6 inches (152 mm) within the first 10 feet (3048 mm). Exception: Where lot lines, walls, slopes or other physical barriers prohibit 6 inches of fall (152 mm) within the first 10 feet (3048 mm), drains or swales shall be constructed to ensure drainage away from the structure. Impervious surfaces within 10 feet (3048 mm) of the building foundation shall be sloped no less than 2 percent away from the building. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.
RCC100
Jobsite Inspection Photos 1 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 11/7/2023 Inspection Time: 9:00AM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Photo of the north side of the property.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
Jobsite Inspection Photos 2 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 11/7/2023 Inspection Time: 9:00AM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Photo of the north side of the property.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
Jobsite Inspection Photos 3 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 11/7/2023 Inspection Time: 9:00AM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Photo of the front of the house.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
Jobsite Inspection Photos 4 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 11/7/2023 Inspection Time: 9:00AM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Photo of the front of the house.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
Jobsite Inspection Photos 5 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 11/7/2023 Inspection Time: 9:00AM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Photo of the southwest corner of the house.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
Jobsite Inspection Photos 6 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 11/7/2023 Inspection Time: 9:00AM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Photo of the south side of the property.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
There has been excessive ponding on the south side of the house, including water intrusion into the house.
Jobsite Inspection Photos 7 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 11/7/2023 Inspection Time: 9:00AM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Photo of the south and east side of the property.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
There has been excessive ponding on the south side of the house, including water intrusion into the house.
Jobsite Inspection Photos 8 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 11/7/2023 Inspection Time: 9:00AM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Photo of the south and east side of the property.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
There has been excessive ponding on the south side of the house, including water intrusion into the house.
Jobsite Inspection Photos 9 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 11/7/2023 Inspection Time: 9:00AM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Photo of the south side of the property.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
There has been excessive ponding on the south side of the house, including water intrusion into the house.
Jobsite Inspection Photos 10 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 11/7/2023 Inspection Time: 9:00AM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Photo of the south side of the property.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
There has been excessive ponding on the south side of the house, including water intrusion into the house.
Jobsite Inspection Photos 11 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 11/7/2023 Inspection Time: 9:00AM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
There has been excessive ponding on the south side of the house, including water intrusion into the house.
Complainant: Alejandro Gonzales 15847 S Old Joyce Pl. Sahuarita, AZ 85629
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Respondent: D R H Tucson Construction Inc 6875 N Oracle Road, Ste 125 Tucson, AZ 85704
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 November 9, 2023
License No. ROC 124600
Re: Complaint No. 2023-11094
WRITTEN DIRECTIVE FROM THE REGISTRAR
Dear Respondent:
After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on .
RESTRICTIONS • You may not perform or hire other contractors to perform work that is outside the scope of your license. • If your license is currently suspended for administrative reasons1, or is inactive, expired, or cancelled, you may not perform any corrective work nor contract in any manner, which includes hiring other contractors to perform work, until the suspension of your license(s) has been lifted or your license(s) has been reactivated.
DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:
Complaint Item 1: “The grading is incredibly terrible. To the point where during the last heavy rain, water pooled all around my home and water began to seep through the flooring and carpet. The builder promised to regrade by 9/22/23, more than one month since I experienced heavy rain.” Investigator’s Observations: Verified. As confirmed by the respondent, there has been excessive ponding on the south side of the house, including water intrusion into the house due to the depth of the ponding. Observed during the jobsite inspection; the entire lot is lower than the: • Street • The property to the north • The property to the south • The adjoining land to the east.
This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F). 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 As stated in the ROC Workmanship Standards: • Grades should be established to insure proper drainage away from the structure. No standing water should remain in the yard more than 48 hours after a rain, unless requirements specify retention of storm water in yard. As stated in the International Residential Code (IRC) • R401.3 Drainage. Surface drainage shall be diverted to a storm sewer conveyance or other approved point of collection that does not create a hazard. Lots shall be graded to drain surface water away from foundation walls. The grade shall fall not fewer than 6 inches (152 mm) within the first 10 feet (3048 mm). Exception: Where lot lines, walls, slopes or other physical barriers prohibit 6 inches of fall (152 mm) within the first 10 feet (3048 mm), drains or swales shall be constructed to ensure drainage away from the structure. Impervious surfaces within 10 feet (3048 mm) of the building foundation shall be sloped no less than 2 percent away from the building. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.
Please direct all questions regarding this Directive to the undersigned Investigator.
Sincerely,
John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812
602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Complainant: Alejandro Gonzales 15847 S Old Joyce Pl. Sahuarita, AZ 85629, USA
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov
C012 05/21 Respondent: D R H Tucson Construction Inc 6875 N Oracle Road, Ste 125 Tucson, AZ 85704
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov
C012 05/21 January 8, 2024
Compliance Jobsite Inspection Notice Re: Complaint No. 2023-11094
Dear Complainant and Respondent:
A Compliance Inspection has been scheduled for January 12, 2024 at 12:30 PM to determine the current status of the items listed on the issued Directive.
The Complainant is required to be present for this inspection. The Respondent is encouraged to be present but is not required to attend.
Complainant: SAFE ACCESS IS REQUIRED TO ANY AREA TO BE INSPECTED.
Sincerely,
John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov
C012 05/21 Compliance Inspection Photos 1 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 1/12/2024 Inspection Time: 12:30PM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
No corrective actions were taken to prevent ponding in the front yard or side yard.
Compliance Inspection Photos 2 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 1/12/2024 Inspection Time: 12:30PM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
No corrective actions were taken to prevent ponding in the front yard or side yard.
Compliance Inspection Photos 3 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 1/12/2024 Inspection Time: 12:30PM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
No corrective actions were taken to prevent ponding in the front yard or side yard.
Compliance Inspection Photos 4 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 1/12/2024 Inspection Time: 12:30PM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
No corrective actions were taken to prevent ponding in the front yard or side yard.
Compliance Inspection Photos 5 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 1/12/2024 Inspection Time: 12:30PM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
No corrective actions were taken to prevent ponding in the front yard or side yard.
Compliance Inspection Photos 6 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 1/12/2024 Inspection Time: 12:30PM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
No corrective actions were taken to prevent ponding in the front yard or side yard.
Compliance Inspection Photos 7 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 1/12/2024 Inspection Time: 12:30PM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
No corrective actions were taken to prevent ponding in the front yard or side yard.
Compliance Inspection Photos 8 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 1/12/2024 Inspection Time: 12:30PM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
The front of the house faces west.
Entire lot is lower than the: • Street • Property to the north • Property to the south • Adjoining land to the east.
Along the east side of the property, a swale and berm were created to divert sheet drainage from the east.
No corrective actions were taken to prevent ponding in the front yard or side yard.
Compliance Inspection Photos 9 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 1/12/2024 Inspection Time: 12:30PM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
• Included in an email from the complainant, email dated 1/7/23. o The email included this photo, that taken 12/23/23.
Compliance Inspection Photos 10 Case No.: 2023-11094 Investigator: John Smith #194 Inspection Date: 1/12/2024 Inspection Time: 12:30PM Jobsite address: 15847 S. Old Joyce Pl., Sahuarita, AZ 85629
• Included in an email from the complainant, email dated 1/7/23. o The email included this photo, that taken 12/23/23.
Complainant: Alejandro Gonzales 15847 S Old Joyce Pl. Sahuarita, AZ 85629
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Respondent: D R H Tucson Construction Inc 6875 N Oracle Road, Ste 125 Tucson, AZ 85704
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Case No.: 2023-11094 Investigator: John Smith Inspection Date: January 12, 2024 Inspection Time: 12:30 PM
Complainant: Alejandro Gonzales
Respondent: D R H Tucson Construction Inc
Compliance Jobsite Inspection
Present for the Complainant: Alejandro Gonzales Present for the Respondent: Vicky Yanez, Marlaina Spillios, Danielle Paliga, Jorge, Sam Mills Number of days allowed for corrective work per the Directive: 21 Number of days from issuance of the Directive to this inspection: 64
Compliance Findings: The respondent has not taken appropriate corrective action to comply with the Directive. Governing Rule: A.R.S. § 32-1154(A)(22): Failure to take appropriate corrective action to comply with this chapter or with the rules adopted pursuant to this chapter…
Compliance Jobsite Inspection General Notes: This Compliance Inspection was to evaluate the current conditions of item(s) requiring corrective action as stated on the Directive. Those item(s) are listed below.
Complaint Item 1: “The grading is incredibly terrible. To the point where during the last heavy rain, water pooled all around my home and water began to seep through the flooring and carpet. The builder promised to regrade by 9/22/23, more than one month since I experienced heavy rain.” Investigator’s Observations from the initial inspection: Verified. As confirmed by the respondent, there has been excessive ponding on the south side of the house, including water intrusion into the house due to the depth of the ponding. Observed during the jobsite inspection; the entire lot is lower than the: • Street • The property to the north • The property to the south • The adjoining land to the east. As stated in the ROC Workmanship Standards: • Grades should be established to insure proper drainage away from the structure. No standing water should remain in the yard more than 48 hours after a rain, unless requirements specify retention of storm water in yard. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 As stated in the International Residential Code (IRC) • R401.3 Drainage. Surface drainage shall be diverted to a storm sewer conveyance or other approved point of collection that does not create a hazard. Lots shall be graded to drain surface water away from foundation walls. The grade shall fall not fewer than 6 inches (152 mm) within the first 10 feet (3048 mm). Exception: Where lot lines, walls, slopes or other physical barriers prohibit 6 inches of fall (152 mm) within the first 10 feet (3048 mm), drains or swales shall be constructed to ensure drainage away from the structure. Impervious surfaces within 10 feet (3048 mm) of the building foundation shall be sloped no less than 2 percent away from the building. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9- 108(a) A contractor shall perform work in a professional and workmanlike manner. Compliance Inspection Findings for this item: This has NOT been corrected. Some work has been performed; however, the current conditions do not meet ROC Workmanship Standards. • Along the east side of the property, a swale and berm were created to divert incoming sheet drainage from the east. • No corrective actions were taken to prevent ponding in the front yard or side yard. • An email from the respondent dated 12/12/23 stated the work has been completed. • An email from the complainant dated 1/7/23 stated he is not satisfied. o The email included photos that were taken 12/23/23. Those photos show excessive ponding in the front yard and side yard. • Conditions during the compliance inspection were dry with no recent rain in the immediate area. The front yard and side yard are visibly lower than the street and adjoining properties.
Note:
Please review the complaint items listed above. If any of the items have not been corrected at the time of the compliance inspection this complaint will be forwarded to the Registrar’s legal department and a citation may be issued.
If all items are corrected after receipt of this letter, please notify the Registrar’s legal department by sending a notice of compliance signed by the complainant to fax number (602) 364-0416 or by mail to: Arizona Registrar of Contractors, P.O. Box 18244, Phoenix, Arizona 85005-8244. Sincerely,
John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Received 2/8/2024 ROC Legal
Rosary A. Hernandez (State Bar No. 020182) Katelyn E. Towe (State Bar No. 036214) BURCH & CRACCHIOLO, P.A. 1850 NORTH CENTRAL AVENUE, #1700 PHOENIX, ARIZONA 85004 TELEPHONE (602) 274-7611 [email redacted] [email redacted] Attorneys for Respondent BEFORE THE REGISTRAR OF CONTRACTORS IN AND FOR THE STATE OF ARIZONA Alejandro Gonzales, Case No. 2023-11094 COMPLAINANT, RESPONDENT DRH TUCSON CONSTRUCTION INC.’S ANSWER vs. TO CITATION AND COMPLAINT AND REQUEST FOR BRIEF STAY DRH Tucson Construction, Inc. TO SUPPLEMENT REPAIRS License No. ROC 064532, RESPONDENT. Respondent DRH Tucson Construction Inc. (“DRH”), through counsel, hereby
responds to the Registrar of Contractor’s Citation and Complainant Alejandro Gonzales’s
Complaint as follows:
Respondent DRH denies it violated any rule adopted by the Arizona Registrar of
Contractors, including Rule R4-9-108, and that it failed in any material respect to comply
with Arizona Revised Statutes Title 32, Chapter 10, including A.R.S. § 32-1154(A)(3) and
A.R.S. § 32-1154(A)(22). Further, based on recent rain events, DRH requests additional
time to implement supplemental repairs to improve drainage on the lot. We have contacted
Complainant requesting a brief postponement and are awaiting a response.
As set forth herein, good cause exists for a brief postponement. In the interim, based
on DRH’s diligent repair efforts, DRH’s license should not be suspended or revoked.
1. On or about May 30, 2023, the parties entered into a purchase agreement for
the home located at 15847 South Old Joyce Place, Sahuarita, Arizona 85629 (the “Gonzales
Home”).
Received 2/8/2024 ROC Legal
Gonzales Complaint 2. In or about October 2023, DRH received a Complaint filed with the Arizona Registrar of Contractors (“AROC”) of alleged workmanship deficiencies (“Complaint”) with the Gonzales Home. 3. The Complaint alleged deficiencies in the grading and drainage at the Gonzales Home. 4. On or about November 7, 2023, John Smith (“Smith”), AROC inspector, conducted an inspection to investigate the specific issues raised in Gonzales’s Complaint. He inspected the Gonzales Home and/or property, investigating and documenting the alleged deficiency contained in the Complaint. 5. Based on his inspection, on November 9, 2023, Smith issued a written directive to DRH to correct certain deficiencies at the Gonzales Home. Repairs 1. DRH promptly implemented significant grading and draining repairs identified in the written directive issued by Smith. Specifically, DRH regraded around the Gonzales Home to ensure the appropriate fall exists for water to drain away from the foundation of the Gonzales Home. DRH also installed a swell and berm at the east side of the Gonzales Home to divert incoming water from the east and to ensure water drains off the property in accordance with applicable standards. 2. Although DRH diligently instituted grading and drainage repairs and improvements around the Gonzales Home as noted by the Directive, it appears some ponding is still occurring on the lot. While the grade around the home meets the requisite construction standards, during a recent rain event, it became apparent an area of ponding remains. 3. Despite our good faith and diligent efforts to timely comply with the Directive we believe further remediation would improve the conditions. Towards that end, we have retained an additional geotechnical engineer, Curt Peterson, P.E. of Peterson Geotechnical, who is currently evaluating the conditions and is preparing supplemental
Received 2/8/2024 ROC Legal
repair plan. 4. Although the overall site and topography have created challenges which make the repairs more complex than usual, we want to ensure the grading and drainage at the Gonzales Home meets all applicable standards. While the performance of the areas adjacent to the perimeter of the Gonzales Home were confirmed to perform during recent rain events, the lot would benefit from further remediation efforts. 5. Upon prompt receipt of additional recommendations by Peterson, DRH is prepared to expeditiously implement the grading and drainage recommendations to ensure appropriate standards are met. DRH hereby requests an additional 30 days to allow Peterson to prepare the supplemental repair protocol and for DRH to implement the remedial measures. Conclusion DRH expressly denies it violated Rule 4-9-108, A.R.S. § 32-1154(A)(3) and (A)(22) because it promptly undertook prompt and appropriate repairs based on the AROC corrective orders. DRH’s repair work was performed in a workmanlike fashion, and in a good faith attempt to completely and fully comply with the AROC’s standards and directives. Although repairs were timely effectuated, recent rain events demonstrated that while the repairs around the perimeter of the Gonzales Home are performing, the lot conditions could be improved with additional repairs. DRH is prepared and willing to take additional corrective action for any outstanding repair issues and has retained Curt Peterson, P.E. to assist with the remediation efforts. DRH request a 30-day continuance to complete these supplemental repairs. Any allegation of the Gonzales Complaint and the AROC’s Citation not specifically answered and responded to is specifically denied. As good cause exists, DRH should not have its license suspended, revoked, or otherwise sanctioned or disciplined. Additionally, pursuant to A.R.S. § 41-1092.06, DRH hereby requests that the AROC
Received 2/8/2024 ROC Legal
schedule a settlement conference between the parties within fifteen (15) days of receipt of this Answer. RESPECTFULLY SUBMITTED this 8th day of February, 2024. BURCH & CRACCHIOLO, P.A. By: /s/ Rosary A. Hernandez Rosary A. Hernandez Katelyn E. Towe 1850 North Central Avenue, #1700 Phoenix, Arizona 85004 Attorneys for Respondent Copy of the foregoing emailed this 8th day of February, 2024, to: Arizona Registrar of Contractors P.O. Box 18244 Phoenix, Arizona 85005 [email redacted] Alejandro Gonzales 15487 South Old Joyce Place Sahuarita, Arizona 85629 [email redacted] Complainant By: /s/ Melanie A. Wright
Received 2/9/24, 8:11 AM State of Arizona Mail - Alejandro Gonzales v. DRH Tucson Construction, Inc. - Case No. 2023-11094 2/8/2024 ROC Legal
Answers - AZROC <[email redacted]>
Alejandro Gonzales v. DRH Tucson Construction, Inc. - Case No. 2023-11094 message
Melanie Wright <[email redacted]> Thu, Feb 8, 2024 at 3:36 PM To: "[email redacted]" <[email redacted]>, "[email redacted]" <[email redacted]> Cc: Rosary Hernandez <[email redacted]>, Katelyn Towe <[email redacted]>, Jen Bollinger <[email redacted]>
Good afternoon,
Attached is Respondent DRH Tucson Construction Inc.’s Answer to Citation and Complaint and Request for Brief Stay to Supplement Repairs.
Sincerely,
Melanie Wright
Assistant to Ralph D. Harris, Rosary A. Hernandez, Katelyn Towe, and Jen Bollinger
Direct: 602.234.8742 Fax: 602.344.3742 E-mail: [email redacted]
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2024-02-08 DRH Tucson Construction Inc.'s Answer to the Citation and Complaint.pdf 178K
https://mail.google.com/mail/b/AEoRXRQm6V007G8Ktm8NN4yYor4iJByJVRYjpCGJVQwat8I0DCBB/u/0/?ik=581c53cf5c&view=pt&search=all&permt… 1/1 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA
Alejandro Gonzales, Case No. 2023-11094 COMPLAINANT, v. D R H Tucson Construction Inc., CITATION License No. ROC 124600,
RESPONDENT.
The Registrar issues this Citation to D R H Tucson Construction Inc., (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by February 10, 2024, then under A.R.S. § 32-1155(C), Respondent’s failure to answer may be deemed an admission of the act or acts charged in the underlying complaint, and the Registrar may then suspend or revoke Respondent’s license(s). THE WRITTEN COMPLAINT On September 22, 2023, Alejandro Gonzales, (“Complainant”) filed a written complaint with the Registrar. A copy of that Complaint is attached to this Citation. A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT The Registrar investigated this matter and finds cause to charge Respondent with violation(s) of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged with violating:
Charge :1 A.R.S. § 32-1154(A)(3) - R4-9-108(a)
Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A
contractor shall perform all work in a professional and workmanlike manner.
of 5
1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Charge :2 A.R.S. § 32-1154(A)(22) Failure to take appropriate corrective action to comply with this chapter or with rules adopted pursuant to this chapter without valid justification within a reasonable period of time after receiving a written directive from the Registrar. The written directive shall set forth the time within which the contractor is to complete the remedial action. The time permitted for compliance shall not be less than fifteen days from the date of issuance of the directive. A license shall not be revoked or suspended nor shall any other penalty be imposed for a violation of this paragraph until after a hearing has been held. If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s license(s) may be subject to suspension or revocation, and Respondent may be subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E) and (F).
FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2023-11094. How to File a Written Answer: Respondent’s written answer may be submitted in the following ways: In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Email: [email redacted]
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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday. If Respondent submits a written answer by mail, it is not filed with the Registrar until the Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than February 10, 2024. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides a deadline ten days after service of the Citation. Service of the Citation and Complaint is complete five days after the Registrar mails a copy of the Citation and Complaint to Respondent’s latest address of record in the Registrar’s office. Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license(s). THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). INVESTIGATOR’S APPEARANCE AS A WITNESS The Registrar’s assigned investigator will appear as a witness at the hearing. If either party demands the attendance at the hearing of any other person, that party must obtain and serve a subpoena in compliance with the rules and processes established by the Office of Administrative Hearings. RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an
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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline.
EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not
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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated January 26, 2024. By: /s/ Gail Mathews Gail Mathews Legal Assistant II Legal Department Arizona Registrar of Contractors
COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, January 26, 2024 to: Respondent Certified Mail No: [number redacted] D R H Tucson Construction Inc . 6875 N Oracle Road, Ste. 125 Tucson, AZ 85704
Copy mailed by USPS First Class mail this same date to: D R H Tucson Construction Inc. 6875 N Oracle Road, Ste. 125 Tucson, AZ 85704
Complainant Alejandro Gonzales 15847 S Old Joyce Pl. Sahuarita, AZ 85629, USA Copy sent electronically this same date to:
Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar
Case No. 2023-11094
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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees
Person Filing Complaint Full Name (First Middle Last) Business Name (if a licensed contractor or supplier) ROC License Number(s) (if any)
Alejandro Gonzales Mailing Address (Enter jobsite in Contract/Project section) City State Zip
15847 S Old Joyce Pl Sahuarita Arizona 85629 Phone Number Email
(520) [number redacted] [email redacted] I consent to receive communications electronically in connection with this case Name of Attorney (if any)
Street Address of Attorney City State Zip
Phone Number of Attorney Email of Attorney
Contractor Information Name (as shown on contract/invoice) ROC License Number(s)
D R H Tucson Construction Inc ROC 124600 Street Address City State Zip
6875 N Oracle Rd Ste 125 Tucson AZ 85704 Phone Number Email
[number redacted] Name of Person(s) Representing License
Donald Ray Horton Contract/Project Information Contract Date Contract Amount Amount Paid
May 22, 2023 $479,990.00 $479,990.00 Date Work Started Date Work Stopped Date Work Was Completed
September 1, 2022 June 26, 2023 June 26, 2023 Close of Escrow (New Home) Move-In Date (New-Home)
June 26, 2023 June 27, 2023 Jobsite Street Address City State Zip
15847 S Old Joyce Pl Sahuarita AZ 85629 Name of Construction Site Owner Construction Site Name (if applicable)
DR Horton Inc Sahuarita Acres Phone Number of Construction Site Owner Email of Construction Site Owner
[number redacted] This complaint is for Poor Work;Other I have contacted the contractor by Phone/Text;Email;Letter Have you filed a complaint in court? No Has any work been corrected? No
RCC099 12/05/18 Page 1 of 2 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees
The contract was Written All change orders were N/A This project was Residential This project involved New Home
A building permit was obtained by Contractor N/A Sahuarita List and briefly describe each complaint item (Please do not write "see attached" or use additional pages unless necessary to further describe issues or list more complaint items) (limited to 100 characters per line)
The grading is incredibly terrible. To the point where during the last heavy rain, water pooled all around my home and water began to seep through the flooring and carpet. The builder promised to regrade by 9/22/23, more than one month since I experienced heavy rain.
Signature I declare under penalty of perjury that the information and documents contained on this Complaint Form, included with this complaint, or hereafter submitted in support of this complaint are true and accurate to the best of my knowledge. I will assist in the investigation or in the prosecution of the contractor or other parties, and will, if necessary, attend hearings and testify to facts. Printed Name Signature Date
Alejandro Gonzales \complainant1\ \complainantd1\
RCC099 12/05/18 Page 2 of 2 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
Alejandro Gonzales 1293 Ice Court Rio Rico, AZ 85648 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
1840 E. RIVER ROAD, SUITE 200 TUCSON, AZ 85718 (520)577-8707 FAX (520)495-6023
June 2, 2023
Alejandro Gonzales 1293 Ice Court Rio Rico, AZ 85648
Re: 15847 S Old Joyce Pl, Sahuarita, AZ 85629
Congratulations on your escrow transaction! I will be your Escrow Officer. Should you have any questions during your transaction, please contact me: Phone (520)577-8707 | Fax (520)495-6023 | E-Mail: [email redacted]. If I’m not available, any one on my team will be happy to assist you.
For your future reference, your Escrow Number is 600-233773-CAR.
Enclosed is an information package that is important to our transaction. Please take the time to review, complete, and return the documents to us ASAP or your closing may be delayed:
Fraud Alert Cover Sheet / Read carefully and Retain Buyer Information / Complete & Return Wire Fraud Alert Notification and Disclaimer / Read Carefully, sign and return Ways to Take Title / Complete & Return National Settlement Instructions / Sign & Return Affiliated Business Arrangement Disclosure-FATCO / Sign & Return Escrow Action Items/Retain Tips and Services/Retain FIRPTA Notice to All Buyers and Sellers - Form 1 / Retain
*If you are returning your information package via email, please use a “FA-Secure” encrypted email reply. Contact your Escrow Officer to establish your “FA-Secure” encrypted email dashboard.
Due to the risk of wire fraud, wiring Instructions are NOT included in this package. Please read the Fraud Alert Notification and Wire Fraud Alert Notification enclosed in this package on what you can do to protect yourself from being a victim of wire fraud. Please contact your Escrow Officer by phone if wiring instructions are required. Please note that if requested, wiring instructions will be provided via “FA-Secure” encrypted email. IF you receive wiring instructions via e-mail please contact your Escrow Officer immediately via a verified telephone number. Do not rely on telephone numbers or web site addresses provided within an unverified or possibly fraudulent e-mail.
We look forward to serving you! PLEASE RETURN ONLY THOSE PAPERS WHICH YOU HAVE FILLED OUT OR SIGNED.
Sincerely,
Carol Ruth Escrow Officer, Branch Manager,
Opening Letter to Buyer 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
1840 E. RIVER ROAD, SUITE 200 TUCSON, AZ 85718 (520)577-8707 FAX (520)495-6023
BUYER INFORMATION FORM PLEASE COMPLETE AND RETURN 600-233773-CAR We are pleased to be handling this escrow for you. Your completion of this information form will help us enormously in the processing of this transaction: Phone No.: [number redacted] Email Address: [email redacted]
Current Mailing Address: 1293 Ice Court Rio Rico, AZ 85648
PLEASE REVIEW THE FRAUD ALERT AND WIRE FRAUD ALERT NOTIFICATION ENCLOSED WITH THIS PACKAGE CLOSING FUNDS: If funds are required from you to close escrow, your escrow officer will provide you with an amount needed for closing as soon as the amount has been determined. The funds must be payable to Title Security Agency, LLC in U.S. Dollars in one of the following forms: Cashier’s Check, Certified Check, Teller’s Check or Wire Transfer*. Closing funds must be available funds in order for Title Security Agency, LLC to disburse funds according to A.R.S. 6-843. Please note that ACH Transfers are not acceptable and will be rejected by our bank.
* Due to the high rise of wire fraud, wiring Instructions are NOT included in this package. Please read the Fraud Alert Notification and Wire Fraud Alert Notification enclosed in this package on what you can do to protect yourself from being a victim of wire fraud. Please contact your Escrow Officer by phone if wiring instructions are required. Please note that if requested, wiring instructions will be provided via encrypted email. IF you receive wiring instructions via e-mail please contact your Escrow Officer immediately via a verified telephone number. Do not rely on telephone numbers or web site addresses provided within an unverified e-mail. 1. WILL YOU BE PRESENT AT THE TIME OF CLOSING? X Yes No. If no, please provide the address where closing documents can be sent overnight. (NO P.O. BOXES PLEASE)
Street Address
City, State, Zip
If you will not be present as stated by checking the box “no” and would like to use the services of a Mobile Notary, please notify your Escrow Officer. Please note the average cost is approximately $150.00 and can vary depending upon location. 2. Please print the name(s) as you wish them to be shown on the Deed to the property: Alejandro Gonzales
Buyer Information Page 1 of 2 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
3. What is your marital status?
husband and wife an unmarried man / X a single man wife and husband an unmarried woman / a single woman a married man* a married couple a married woman* *Your spouse will be required to sign a Disclaimer Deed if not acquiring title.. Please provide his/her name.
4. Forwarding address after Close of Escrow:
Same as property address Other: X Buyer intends to occupy subject property Buyer does not intend to occupy subject property Buyer is purchasing as a second home CONTACT YOUR ESCROW OFFICER IF ANY OF THE ITEMS BELOW APPLY.
Are any of the principals going to use a Power of Attorney? Do any of the principals not speak or understand the English language? If the answer is yes, you must provide your own interpreter at closing. Have any of the principals recently filed bankruptcy? Are any of the principals planning to form a new entity? i.e., trust, L.L.C., partnership, corporation, etc.? Are any of the principals under the age of 18?
Please call us should you have any questions regarding these instructions.
Please sign below after you have completed this form and return it to us with your signed instructions.
Thank you for your cooperation.
By the signing herein, I/we do hereby authorize any insurance agent or company/lender or mortgage company named to release any information to Title Security Agency, LLC as requested and acknowledge that I/We have read the Fraud Alert Notification and Wire Fraud Alert Notification.
Buyer(s):
___________________________________ Alejandro Gonzales
Buyer Information Page 2 of 2 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
WIRE FRAUD: THE THREAT IS REAL Buying a home is an exciting time. You’ve saved, found the perfect home and planned the move. Now, the closing day for your home is just around the corner. We want to make sure your home purchase doesn’t get derailed by a dangerous threat that could keep you from getting the keys, painting walls and decorating. Criminals have stolen money meant for the purchase of homes through malicious wire fraud schemes targeting consumers across the country. Criminals begin the wire fraud process way before the attempted theft occurs. Most often, they begin with a common social engineering technique called phishing. This can take the form of email messages, website forms or phone calls to fraudulently obtain private information. Through seemingly harmless communication, criminals trick users into inputting their information or clicking a link that allows hackers to steal login and password information. Once hackers gain access to an email account, they will monitor messages to find someone in the process of buying a home. Hacks can come from various parties involved in a transaction, including real estate agents, attorneys or consumers. Criminals then use the stolen information to email fraudulent wire transfer instructions disguised to appear as if they came from a professional you’re working with to purchase a home. If you receive an email with wiring instructions, don’t respond. Email is not a secure way to send financial information. If you take the bait, your money could be gone in minutes. What can I do to protect myself? Despite efforts by the title industry and others to educate consumers about the risk, homebuyers continue to be targeted. Here are some tips on what you can do to protect yourself and/or your clients: 1. If requested, wiring instructions will be provided via an encrypted email to the email address you provide on the Buyer Information Form (enclosed). 2. Call, don’t email: Confirm all wiring instructions by phone before transferring funds. Use the phone number from the title company’s website or a business card. 3. Be suspicious: It’s not common for title companies to change wiring instructions and payment info 4. Confirm it all: Ask your bank to confirm not just the account number but also the name on the account before sending a wire. The name on the account should state Title Security Agency, LLC 5. Verify immediately: You should call the title company or real estate agent to validate that the funds were received. Detecting that you sent the money to the wrong account within 24 hours gives you the best chance of recovering your money from the hackers. Forward, don’t reply: When responding to an email, hit the “forward” button instead of clicking the “reply” button, then start typing the person’s email address. Criminals use email address that are very similar to the real one for a company. By typing in email addresses, you will make it easier to discover if a fraudster is after you. Acknowledgement: I/We have read this Wire Fraud Alert Notification.
Seller(s): Buyer(s):
D.R. Horton, Inc.
BY:________________________________ ___________________________________ Authorized Officer Alejandro Gonzales < DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
Escrow No.: 600-233773-CAR WAYS TO TAKE TITLE PLEASE COMPLETE AND RETURN
Please Choose One:
community property with right of survivorship: (married couples only) Community Property with Right of Survivorship is co-ownership by a married couple providing for the surviving spouse to retain full title after the death of the other spouse.
(Allows for a stepped-up tax basis for Capital Gains Taxes to a surviving spouse.)
community property: (married couples only) Since Arizona is a community property state, by statute all property acquired by husband and wife is presumed to be community property unless stipulated otherwise. Community property ownership can apply only to married persons. The interest of a deceased spouse may pass either by Will or by Intestate Succession.
joint tenants with right of survivorship: (multiple persons) Joint Tenancy is a method of co-ownership that gives title to the last surviving Joint Tenant.
tenants in common: (multiple persons) A method of co-ownership where the parties do not have survivorship rights and each owns a specific undivided interest in the entire title.
sole and separate: (married individual only) Real property owned by a spouse prior to marriage or acquired after marriage by gift or devise, descent or specific intent. When a married person acquires title as Sole and Separate Property, his/her spouse must execute a Disclaimer Deed.
Trust: (please confirm with lender first) Please provide name of Trustees and name and date of the Trust. A full copy of the trust will be required if less than all of the original trustees will sign documents.
X Individually: (unmarried or single)
Buyer's Signature Buyer's Signature
THIS INFORMATION IS PROVIDED BY Title Security Agency, LLC AS A COURTESY ONLY. FOR MORE INFORMATION, YOU ARE ENCOURAGED TO CONTACT A PROFESSIONAL LEGAL TAX ADVISOR.
Ways To Take Title Page 1 of 1 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
1840 E. RIVER ROAD, SUITE 200 TUCSON, AZ 85718 (520)577-8707 FAX (520)495-6023
To: Title Security Agency, LLC, "Settlement Agent" File No.: 600-233773-CAR
Carol Ruth, Escrow Officer Date: June 2, 2023
Re: 15847 S Old Joyce Pl, Sahuarita, AZ 85629, "Property" Alejandro Gonzales ,"Buyer" D.R. Horton, Inc., "Seller" Collectively, "Parties"
Purchase/Sale Settlement Instructions
This document contains the Buyer’s and Seller’s (the “Parties”) agreed-upon instructions to the Settlement Agent1 for providing settlement services in addition to the issuance of title insurance. If applicable, this document may be modified by state-specific supplemental Settlement Instructions.
Settlement Agent is either a direct operation or wholly owned operation of First American Title Insurance Company, a national title insurance underwriter.
Settlement Agent may decline to provide settlement services if no title insurance policy is to be issued.
Cyber Fraud Warning
Real estate transactions are a frequent target for cyber fraud. Buyers, sellers, and borrowers can take steps to reduce the risk of fraud and should know these important facts: Settlement Agent banks with First American Trust, FSB and our email domain is titlesecurity.com. Any instructions from other than a titlesecurity.com email address to send funds elsewhere may be fraudulent. If you have any questions about depositing your funds, contact us at Office phone number. If wired funds are requested, sellers will be asked to provide accurate and complete instructions prior to closing. Any changes to wiring instructions require in-person verification.
A. Settlement Agent Responsibilities
Settlement Agent’s obligations and responsibilities are limited only to those it has agreed to in writing and as required to comply with applicable laws. No other obligation or duty will be assumed or implied.
1(also known as and referred to as "Escrow Holder", "Escrow Agent" or "Closing Agent" in documents used in this transaction)
Page 1 of 6 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
B. Parties’ Instructions to Settlement Agent
The Parties instruct and authorize Settlement Agent to perform the following services to complete and process the settlement of the purchase and sale of the Property pursuant to a real estate purchase contract that has been provided to the Settlement Agent by the Parties:
Order a title insurance commitment or preliminary report for the purpose of issuing a policy or policies (collectively the “Policy”) of title insurance upon the completion of the sale and transfer of the Property to the Buyers. The Policy to be issued to Buyer and/or Buyer’s lender(s) will be issued by a title insurance company (“Title Insurer”) that may be the Settlement Agent or an affiliated company.
Deposit funds presented into Settlement Agent’s general escrow account. This account is non-interest bearing but may provide certain benefits to the Settlement Agent if permitted by applicable law. Obtain payoffs of loans, liens and assessments shown in the title insurance commitment or preliminary report that are to be paid as part of the settlement or as required to issue the Policy. Prepare a settlement statement itemizing charges to the Parties, including: invoices submitted by or on behalf of the Parties; payoff demands submitted by any person having a lien or interest in the Property; property taxes, homeowner’s association dues and/or rents; prorations of property taxes or other items between the Parties such as homeowner’s association dues, rents, or deposits; fees and charges due to Settlement Agent and the Title Insurer; fees due to a lender; fees due pursuant to the contract or other instructions provided by the Parties; other items that are part of this transaction. Adjust prorations based on the actual settlement date without further instruction from the Parties. Any adjustments or re-prorations after closing will be made between the Parties without Settlement Agent’s involvement. Prepare or select a provider to prepare needed documents, including deeds, mortgages and deeds of trust, as permitted by law if customary in the property jurisdiction. Deliver copies of documents it receives to real estate agents, mortgage brokers, lenders and attorneys identified in the transaction in relation to their role. Documents delivered to an agent, attorney, or representative of any Party will be deemed delivered to the Party. Coordinate with the Buyer’s lender(s), if any, including providing requested information, and receiving and processing loan documents. Share taxpayer identification numbers of the respective Parties if required for federal withholding purposes, or in relation to financing provided by the Seller for the benefit of the Buyer’s purchase of the Property. Make non-material corrections to documents, such as correction of typographical errors. Once all conditions precedent are satisfied, released, approved or waived, proceed to close the transaction absent written instructions to the contrary provided prior to the disbursement of funds or recording of documents. Deliver and disburse funds and documents to the Parties at the addresses provided. Deliver for filing with the appropriate government entity, documents delivered by the Parties to transfer and/or encumber the title to the Property. Deliver the Policy containing the exceptions shown on the title commitment or preliminary report other than those being paid or released in this transaction, and deeds of trust, mortgages or other voluntary liens, encumbrances or other restrictions or agreements executed or agreed to by Buyer in this transaction, subject to terms, provisions and conditions of the Policy. May, in its sole discretion, hold funds for title curative matters for which it does not have a final amount available to pay at time of closing. Report the sale to the IRS via form 1099-S with the Seller’s U.S. taxpayer identification number (provided by the Seller) unless the Seller can prove an exemption from reporting. Settlement Agent may report the sale under federal regulations, even if the Seller claims an exemption. Submit payment and required forms for any state income tax withholding obligations of the Buyer from the Seller, resulting from the sale of real property if and as required by law.
Page 2 of 6 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
As a courtesy, submit payment for federal income tax withholding obligations of the Buyer from the Seller, due as a result of the sale of real property by a foreign seller per FIRPTA. (“FIRPTA” is the Foreign Investment in Real Property Tax Act of 1980, a United States tax law that imposes income tax on foreign persons disposing of US real property interests. Purchasers of real property interests sold by a foreign person are required to withhold tax on payment for the property. The amount of withholding may vary, and purchasers may be liable if the withholding is not paid timely to the IRS.) Retain records of transactions in accordance with Settlement Agent’s record retention policy. Provide other services as may be required by law or specified in written instructions by the parties and agreed to by Settlement Agent in writing.
C. Parties Acknowledge Limits of Settlement Agent Obligations and Responsibilities
Settlement Agent DOES NOT perform any of the following services:
provide legal, tax or financial services, or other services for which a legal, accounting, or financial services license is required; provide keys or handle issues of occupancy including delivery of possession between the Parties; warrant or verify the condition of the Property or verify the completion or sufficiency of any repairs; track contract contingencies between the Parties; handle title to equipment, fixtures, or personal property on the real estate, including of any loans or liens on these items; handle personal property tax payments; handle the transfer of utilities unless described in state specific Supplement Instructions; accept responsibility for payment of or collection of payment from the Parties for any bills submitted other than those that have been approved for payment on the settlement statements, including unpaid or delinquent utility bills; pay unsecured debt or bills not associated with the transaction (unless it is a condition of loan approval by the buyer’s new lender; if lender requires, additional instructions are to be executed by buyer); close the transaction if Settlement Agent has received conflicting instructions from the Parties; pay or prorate a post-closing retroactive property tax assessment not insured against by the Policy resulting from change in land usage, including changes caused by natural disasters, construction of new improvements, failure to timely remove property tax exemptions, or loss of any homestead status; or act as a withholding agent or have any obligations or duties as a withholding agent under FIRPTA.
D. Parties Obligations and Responsibilities
The Parties agree:
to provide any additional instructions to Settlement Agent or modify existing instructions to Settlement Agent in writing; to disclose in advance to Settlement Agent any deposits of funds to be made by third parties, such as gift funds; all such deposits are subject to Settlement Agent’s acceptance of the funds and conditions and terms to be specified by Settlement Agent including providing contact information for any third-party depositors, furnishing their government issued identification, taxpayer identification (social security) number, address and occupation, and signing separate instructions regarding deposit and use of their funds; to notify Settlement Agent of any error or omission in the settlement statement immediately upon receipt; to comply with cancellation requirements of the Settlement Agent including payment of any service or cancellation fees required by Settlement Agent or applicable law; to make up any shortages in funds due from the respective Party inadvertently omitted by the Settlement Agent or as a result of incorrect amounts shown on the settlement statement; and if any documents do not accurately contain all of the agreed terms of the transaction due to an error by Settlement Agent, any of the Parties, or others, the Parties will execute new documents to correct the error upon request by the other Party or Settlement Agent.
Page 3 of 6 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
Buyer will deposit funds in a timely manner, pursuant to contract terms, in the form of payment acceptable to Settlement Agent which payment must be made in compliance with the respective state’s good funds laws; payments made in any manner other than via wire transfer may delay final closing while Settlement Agent verifies the payment. Buyer will be the withholding agent as prescribed under FIRPTA if the seller is subject to federal withholding; and At closing, after review of the title commitment or preliminary report, Seller will represent and warrant that all outstanding bills on the Property are paid current, and that there are no liens on the Property, and there are no tenants or parties in possession of any of the Property, except as disclosed in the title commitment or preliminary report. Seller also agrees not to borrow any more funds from a line of credit secured by the Property and authorizes Settlement Agent to close the line of credit on Seller's behalf.
E. Other Agreements of Parties
Fire, Hazard or Liability Insurance Policies: Settlement Agent is not responsible for obtaining fire, hazard or liability insurance, unless specific written instructions to obtain such casualty insurance prior to closing are received from a Party or their respective lenders, and the cost of all such coverage is paid. Settlement Agent is not responsible for the selection of any insurance company or agent.
Copies of Documents; Electronic Signatures, Executed in Counterpart: Settlement Agent is authorized to rely upon a copy of any document as if it were an original, may agree to accept electronically signed documents, and may rely on documents executed in counterpart. If requested, original documents shall be delivered to Settlement Agent, which may withhold performing escrow functions such as providing documents or funds due to the party until the requested original documents are delivered to Settlement Agent. Documents to be recorded MUST contain original ink signatures unless use of a digital original has been approved in advance.
Remote Online Notary (RON) Authorization: Any document for use in this transaction may be executed electronically and any document, including deeds, mortgages, or deeds of trust that requires notarization, may be executed and notarized digitally using a notary in a state where there is a currently effective RON law.
This authorization permits, but does not require, electronic execution of documents or notarization via RON and is subject to requirements of Settlement Agent and Title Insurer. This authorization is contingent upon the governmental recorder of the Property accepting RON notarized documents for recording in electronic or paper form.
Additional Fees for Third Party Services: Settlement Agent may incur additional costs for services performed by third parties. The fees charged by Settlement Agent for such services including, but not limited to, wire transfers, overnight deliveries, messengers or other third-party services, may include a markup to cover costs incurred by the Settlement Agent, if and as permitted by applicable law.
Payoffs to Lenders/Lienholders Payoffs of existing loans or liens may be made as required by the lender. Payoffs may include additional days of interest to account for delivery. Certain payments, such as home equity line of credit payoffs, may require additional time to process. Settlement Agent will not be responsible for obtaining a refund of any overages or return of escrow account balances.
Property Survey Matters The title insurance commitment may disclose a standard policy survey exception, which will show on the Policy unless a survey meeting Settlement Agent’s or government requirements is provided to the Settlement Agent prior to closing. Any encroachments or other matters disclosed on a survey may be added as additional exceptions on the Policy.
Indemnity, Hold Harmless and Limit of Liability: The Parties agree to indemnify and hold Settlement Agent harmless from any loss or damage arising from or pertaining to the Parties' conduct, requirements, action or inaction regarding the matters addressed herein or for any other loss or damage that is not caused by Settlement Agent. Settlement Agent's sole responsibility
Page 4 of 6 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
arises under the instructions given to and agreed to by Settlement Agent. The Parties further waive any special, incidental, punitive or consequential damages arising out of or in connection with the instructions given to Settlement Agent.
Interpleader Action: In the event of a dispute that may limit or affect Settlement Agent’s performance or duties to provide its escrow services or any time after escrowed funds become dormant as determined by Settlement Agent, Settlement Agent may, AT ITS SOLE DISCRETION, file an action in interpleader, or file any other appropriate and necessary action, and deposit the escrowed funds with the clerk of the court. All costs, fees and expenses including attorney's fees incurred by the Settlement Agent in an action may be deducted from the escrowed funds held prior to or upon depositing any of the remaining escrowed funds with the clerk of the court. Upon filing of an action in interpleader, or other appropriate and necessary action, the Settlement Agent will be deemed fully released and discharged from any obligations, duties or requirements imposed by these or other instructions given to Settlement Agent. This paragraph does not limit any interpleader or other rights Settlement Agent may have under applicable law.
State Escheatment Requirements: Settlement Agent may forward any balance of escrowed funds held to the applicable state agency or department requiring the disposition or handling of unclaimed property pursuant to the applicable state's unclaimed property act or administrative rules (known as escheatment). Once funds have been escheated, it may be necessary for the Parties to file a claim with the State in order to receive the escheated funds. Settlement Agent will have no further duty with respect to the funds or to assist with any Party’s claim to receive the funds.
F. Dispute Resolution: Please read this arbitration provision carefully. It requires the resolution of disputes by arbitration on an individual basis rather than by jury trials or class actions.
(a) The Parties acknowledge that they are entering into this arbitration agreement in connection with escrow services related to a real estate transaction. The Parties agree that all disputes and claims involving Settlement Agent that arise out of or relate to the escrow services in any way must be resolved by arbitration. This arbitration agreement is intended to be broadly interpreted, and the obligation to arbitrate includes disputes or claims brought by or against the Parties' respective affiliates, owners, agents, employees, representatives, predecessors, successors, assigns, and any beneficiaries of the escrow services, such as those with an interest in the underlying real estate transaction or who are or intend to be occupants, tenants, or owners of the property. Notwithstanding the foregoing, any party may bring an individual action in small claims court, so long as the action remains in that court. Any dispute as to the arbitrability of claims or the scope or enforceability of this arbitration provision, or as to the interpretation of paragraph (d) below, is for the court to decide. The services provided by Settlement Agent evidence a transaction in interstate commerce, and thus the Federal Arbitration Act governs the interpretation and enforcement of this provision. This arbitration provision shall survive termination of the Escrow.
(b) Arbitration Procedures. The arbitrator shall be bound by the terms of this arbitration provision. The arbitration will be governed by the Commercial Arbitration Rules or, where applicable, the Consumer Arbitration Rules (collectively, "AAA Rules") of the American Arbitration Association ("AAA"), as modified by this arbitration provision. The AAA Rules are available online at www.adr.org or by calling the AAA at 1-800-778-7879. The AAA shall administer the arbitration. If the AAA is unavailable, the arbitration will be administered by another arbitration provider that the Parties agree to or that the court selects. Arbitrators may consider but shall not be bound by rulings in prior arbitrations involving different customers. Arbitrators shall be bound by rulings in prior arbitrations involving the same customer to the extent required by applicable law. Unless the Parties agree otherwise, any in-person arbitration hearings shall be in the county in which the underlying real estate at issue in the transaction is located.
(c) Arbitration Costs. The Settlement Agent will pay all AAA filing, administrative, and arbitrator fees for any arbitration that the Settlement Agent commences. If another party commences arbitration and the value of that claim is $75,000 or less (to either party), the Settlement Agent will pay all AAA fees. If, however, the arbitrator finds that the substance of such a claim or the relief sought is frivolous or brought for an improper purpose (as measured by the standards in
Page 5 of 6 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
Federal Rule of Civil Procedure 11(b)), then the payment of all AAA fees shall be governed by the AAA Rules.
(d) Prohibition of Class or Representative Actions and Non-Individualized Relief. UNDER THIS AGREEMENT, ANY CLAIM MUST BE BROUGHT ONLY IN AN INDIVIDUAL CAPACITY. NO PARTY MAY SERVE AS A PLAINTIFF, CLASS MEMBER, OR PARTICIPANT IN ANY PURPORTED CLASS, REPRESENTATIVE, OR PRIVATE ATTORNEY GENERAL PROCEEDING. Further, unless all Parties agree otherwise, the arbitrator may not consolidate more than one person's claims and may not otherwise preside over any form of a class, representative, or private attorney general proceeding. The arbitrator may award any relief that a court could award, so long as the relief is individualized to the claimant and would not affect other persons. No party may seek non-individualized relief that would affect persons other than the Parties themselves. If a court decides that applicable law precludes enforcement of any of this paragraph's limitations as to a particular claim or request for a particular remedy (such as a request for injunctive relief), then that claim or request for that remedy must be brought in court and all other claims and requests for remedies must be arbitrated in accordance with this agreement. .
D.R. Horton, Inc.
BY:________________________________ ___________________________________ Authorized Officer Alejandro Gonzales <
,
Date: Date: 6/4/2023
Page 6 of 6 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
AFFILIATED BUSINESS ARRANGEMENT DISCLOSURE STATEMENT Disclosure by TSA, LLC of FATICO Underwriter
To: Alejandro Gonzales 1293 Ice Court Rio Rico, AZ 85648
From: Title Security Agency, LLC, a Delaware Limited Liability Company
Property: 15847 S Old Joyce Pl, Sahuarita, AZ 85629
Date: June 2, 2023
This is to give you notice that Title Security Agency, LLC, a Delaware Limited Liability Company ("TSA, LLC") has a business relationship with First American Title Insurance Company ("FATICO"), a company that provides title insurance policies. In connection with the purchase or sale of this property, you will need to obtain a title insurance policy. TSA, LLC refers you to FATICO. Please note that FATICO has a 100% ownership interest in TSA, LLC. Because of this relationship, this referral may provide TSA, LLC or FATICO a financial or other benefit.
Set forth below is the estimated charge or range of charges for the settlement services listed. You are NOT required to use the listed providers as a condition for settlement of your loan on the purchase, sale, or refinance of the subject property. THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.
Title Security Agency, LLC, Agent for:
First American Title Insurance Company Charge or Range of Charges Sales Price / Loan Amount ALTA Homeowner's Policy Extended Lender's Policy w/Owner's $ 100,000.00 to $ 250,000.00 $ 844.00 to $ 1,408.00 $ 499.00 to $ 832.00 $ 250,001.00 to $ 500,000.00 $ 1,408.00 to $ 2,100.00 $ 832.00 to $ 1,241.00 $ 500,001.00 to $ 1,000,000.00 $ 2,155.00 to $ 3,485.00 $ 1,274.00 to $ 2,060.00
Title Security Agency, LLC Charge or Range of Charges Sales Price Settlement Fee and Escrow Charges* $ 100,000.00 to $ 250,000.00 $ 966.00 to $ 1,130.00 $ 250,001.00 to $ 500,000.00 $ 1,130.00 to $ 1,370.00 $ 500,001.00 to $ 1,000,000.00 $ 1,390.00 to $ 1,870.00 *Additional $200.00 Settlement Fee per new loan and $25.00 Closing Protection Letter Fee (if applicable)
Affiliated Business Arrangement Disclosure - FATCO Page 1 of 2 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
AFFILIATED BUSINESS ARRANGEMENT DISCLOSURE STATEMENT Disclosure by TSA, LLC of FATICO Underwriter (continued)
ACKNOWLEDGMENT I/we have read this disclosure form, and understand that TSA, LLC is referring me/us to purchase the above-described settlement service(s) and that TSA, LLC or FATICO may receive a financial or other benefit as the result of this referral.
6/4/2023 ___________________________________ Alejandro Gonzales Date
D.R. Horton, Inc.
BY:________________________________ Authorized Officer Date
Date
Affiliated Business Arrangement Disclosure - FATICO Page 2 of 2 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
1840 E. RIVER ROAD, SUITE 200 TUCSON, AZ 85718 (520)577-8707 FAX (520)495-6023
ESCROW ACTION ITEMS - BUYER Escrow Officer: Carol Ruth File No.: 600-233773 Title Security Agency, LLC
CLOSING FUNDS: If funds are required from you to close escrow, your escrow officer will provide you with an amount needed for closing as soon as the amount has been determined. The funds must be payable to Title Security Agency, LLC in U.S. Dollars in one of the following forms: Cashier’s Check, Certified Check, Teller’s Check or Wire Transfer*. Closing funds must be available funds in order for Title Security Agency, LLC to disburse funds according to A.R.S. 6-843. Please note that ACH Transfers are not acceptable and will be rejected by our bank.
*Due to the high rise of wire fraud, wiring Instructions are NOT included in this package. Please read the Fraud Alert Notification and Wire Fraud Alert Notification enclosed in this package on what you can do to protect yourself from being a victim of wire fraud. Please contact your Escrow Officer by phone if wiring instructions are required. IF you receive wiring instructions via e-mail please contact your Escrow Officer immediately via a verified telephone number. Do not rely on telephone numbers or web site addresses provided within an unverified e-mail.
CLOSING FIGURES: We will contact you or your agent prior to your closing to give you the amount required to complete your transaction. Note: Our ability to provide you with this figure is dependent upon our receipt of your loan package from your lender, if applicable.
COMMITMENT FOR TITLE INSURANCE: During the escrow process you will receive a Commitment for Title Insurance issued by Title Security Agency, LLC, as agent for First American Title Insurance Company; together with copies of all exceptions as shown under Schedule B. Please read it carefully and retain it for your files.
HOMEOWNERS INSURANCE: If you are getting a new loan, you will be required to provide a new Homeowners Insurance Policy prior to the close of escrow. You should select your agent and provide them with the information needed to write this policy as soon as possible. We will be in contact with your insurance agent prior to closing to provide them with the Lender Loss Payee information and coverage requirements.
CLOSING APPOINTMENT AND SIGNATURES: If you will be signing documents in our office, an appointment will be scheduled.
IDENTIFICATION: For notarization purposes, you MUST provide one current form of identification issued by the United States government or a state or tribal government with the individual's photograph, signature and physical description. For the purposes of a real estate conveyance or financing, a valid unexpired passport that is issued by the United States government or any other national government may be utilized. A passport issued by a national government other than the United States government MUST be accompanied by a valid visa or other documentation issued by the United States government necessary to establish an individual's legal presence in the United States. If you do not bring proper identification the closing WILL be delayed.
RECORDING: Upon satisfaction of all requirements and deposit of funds, recordation will occur in accordance with your contract closing date.
POSSESSION AND KEYS: These are items that are not handled by the Escrow Agent/Title Insurer. These items are facilitated by your Real Estate Agent. If you are not working with a Real Estate Agent, these items will be handled between Buyer and Seller.
Escrow Action Items - Buyer Page 1 of 1 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
1840 E. RIVER ROAD, SUITE 200 TUCSON, AZ 85718 (520)577-8707 FAX (520)495-6023
SERVICES AND TIPS FOR AVOIDING SCAMS & FRAUD
Escrow Officer: Carol Ruth File No.: 600-233773
Here are a few important services and tips you will be receiving from our company:
TIPS:
Here are some tips for buyers and sellers to protect themselves from becoming a victim to wire fraud:
Due to the high rise of wire fraud, wiring Instructions are NOT included in this package. Please read the Fraud Alert Notification and Wire Fraud Alert Notification enclosed in this package on what you can do to protect yourself from being a victim of wire fraud. Please contact your Escrow Officer by phone if wiring instructions are required. IF you receive wiring instructions via e-mail please contact your Escrow Officer immediately via a verified telephone number. Do not rely on telephone numbers or web site addresses provided within an unverified e-mail.
Never send sensitive financial information via e-mail, including banking information, routing numbers or PINs.
Clean out your e-mail account on a regular basis. Your e-mails may establish patterns in your business practice over time that hackers can use against you.
Change your usernames and passwords on a regular basis.
Please visit our website at https://www.titlesecurity.com for Fraud Alert Notification(s).
TITLE SEARCH:
We search and review public records and title documents related to your home before you buy.
TITLE INSURANCE:
We help you get owner’s title insurance that protects your property rights and gives you peace of mind.
CLOSING SERVICES:
We organize all documentation and convene everyone on the day of closing
Escrow Tips and Services Page 1 of 1 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
1840 E. RIVER ROAD, SUITE 200 TUCSON, AZ 85718 (520)577-8707 FAX (520)495-6023
FIRPTA NOTICE TO ALL BUYERS AND SELLERS Information About The Foreign Investment in Real Property Tax Act
Escrow No.: 600-233773-CAR Property Address: 15847 S Old Joyce Pl, Sahuarita, AZ 85629 Date: June 2, 2023
BUYER'S RESPONSIBILITY TO WITHHOLD: Section 1445 of the Internal Revenue Code requires all Buyers who purchase real property in the United States from foreign Sellers to withhold either ten percent (10%) or fifteen percent (15%) of the total purchase price and to pay that amount to the Internal Revenue Service (IRS) within twenty (20) days of the date escrow closes unless an exemption from withholding applies. IF BUYER FAILS TO WITHHOLD AND TIMELY PAY THE IRS THE CORRECT WITHHOLDING AMOUNT ON A NON-EXEMPT SALE, BUYER WILL BE LIABLE TO THE IRS FOR THE AMOUNT OF THE TAX OWED AND ALL APPLICABLE PENALTIES AND INTEREST.
If two or more persons are joint Buyers, each is obligated to withhold. However, the obligation of each will be met if one of the joint Buyers withholds and transmits the required amount to the IRS.
WHO IS A FOREIGN SELLER? In general, a foreign person is a non-resident alien individual, foreign corporation, foreign trust or foreign estate, but not a resident alien individual.
BUYERS: Buyer will not be required to withhold under FIRPTA if Buyer obtains from Seller, a certification of non-foreign status pursuant to the IRS regulations, unless Buyer has knowledge that the Seller's certification is false. This certification must (1) state that Seller is not a foreign person; (2) set forth Seller's name, taxpayer identifying number and address; and (3) be signed by Seller under penalties of perjury. Buyer must retain this certification until the end of the fifth taxable year following the taxable year in which the sale takes place and to make the certification available to the IRS when requested.
QUALIFIED SUBSTITUTE: Seller may furnish the Non-Foreign Affidavit to a "Qualified Substitute" instead of the buyer provided that the Qualified Substitute furnishes a statement to the buyer stating, under penalty of perjury, that the Qualified Substitute is in possession of the Non-Foreign Affidavit. A Qualified Substitute is defined as: (1) the person (including any attorney or title company) responsible for closing the transaction, other than the seller's agent, and (2) the buyer's agent. (See IRC § 1445(f)(6)).
FOREIGN SELLERS: Foreign Sellers should consult with an attorney familiar with FIRPTA before entering into any negotiations or contracts for the sale of their property. If a foreign Seller acts promptly, such Seller may be able to have the IRS: (1) issue a withholding certificate that either reduces or eliminates the withholding requirements for the transfer of Seller's property; (2) make an early refund to Seller of the amount withheld; or (3) establish that no gain is recognized under pertinent provisions of the Internal Revenue Code or the provisions of any United States treaty.
If one or more foreign persons and one or more U.S. persons jointly transfer a U.S. real property interest, the amount realized from the transfer must be allocated among the transferors based on their capital contribution to the property. For this purpose, a husband and wife are treated as having contributed 50% each unless it is specifically indicated otherwise.
FIRPTA Notice to All Buyers and Sellers 600-233773 DocuSign Envelope ID: 41A46C2D-0624-44B7-863C-72314F0290CE
EXEMPTIONS: Below are some examples of when the IRS would generally not require withholding under FIRPTA.
1. Buyer is purchasing the property for Buyer's use as a residence for a certain period of time and the total amount paid for the property is $300,000.00 or less. 2. Seller applies for and obtains a withholding certificate from the IRS that specifies: (1) Seller is exempt from paying taxes on the gain; or (2) Seller has entered into an agreement with the IRS to pay the tax owed. 3. Gain on the sale is not recognized under certain provisions of the Internal Revenue Code or the provisions of any United States treaty. BUYERS AND SELLERS ARE ADVISED TO SEEK THE ADVICE OF AN ATTORNEY OR TAX PROFESSIONAL REGARDING WHETHER ANY GAIN IS RECOGNIZED UNDER THE PROVISIONS OF THE INTERNAL REVENUE CODE AND THE PROCEDURES THAT MUST BE FOLLOWED IF THE BUYER DOES NOT WITHHOLD BASED ON THE FACT THAT NO GAIN IS RECOGNIZED.
Title Companies, Escrow Officers, Settlement Agents, Closers, Real Estate Brokers, and their agents, are NOT qualified to determine the rights and obligations of any particular individual under FIRPTA. If you have any questions regarding the application of FIRPTA, your obligations under FIRPTA or whether you are a foreign person as defined by IRS regulations, please seek the advice of an attorney or a tax professional.
FIRPTA Notice to All Buyers and Sellers 600-233773 Certificate Of Completion Envelope Id: 41A46C2D062444B7863C72314F0290CE Status: Completed Subject: Title Security Agency - Please DocuSign: 600-233773 - AZ - BUYER - Gonzales Source Envelope: Document Pages: 19 Signatures: 5 Envelope Originator: Certificate Pages: 5 Initials: 0 First American Direct eSign AutoNav: Enabled P.O. Box 4020 EnvelopeId Stamping: Enabled Scottsdale, AZ 85261 Time Zone: (UTC-08:00) Pacific Time (US & Canada) [email redacted] IP Address: 65.221.0.160
Record Tracking Status: Original Holder: First American Direct eSign Location: DocuSign 6/2/2023 5:54:42 PM [email redacted]
Signer Events Signature Timestamp Alejandro Gonzales Sent: 6/2/2023 5:57:04 PM [email redacted] Viewed: 6/4/2023 12:11:47 PM Security Level: Email, Account Authentication Signed: 6/4/2023 12:35:11 PM (None) Signature Adoption: Pre-selected Style Using IP Address: 67.1.0.213
Authentication Details Identity Verification Details: Workflow ID: c368e411-1592-4001-a3df-dca94ac539ae Workflow Name: Phone Authentication Workflow Description: Recipient will need to authenticate with their phone number via SMS or a phone call Transaction Unique ID: 1dfbd364-393d-54c4-919f-a797f122e7e2 Result: Phone Verification Passed Selected Method: SMS Phone Number: +1 520-604-1032 Performed: 6/4/2023 12:11:32 PM Electronic Record and Signature Disclosure: Accepted: 6/4/2023 12:11:47 PM ID: 926eac4d-ca3b-450f-8b5e-0968f4c79f69
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp TSA-RA-ESP-Packages Sent: 6/2/2023 5:57:04 PM [email redacted] Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/2/2023 5:57:05 PM Certified Delivered Security Checked 6/4/2023 12:11:47 PM Signing Complete Security Checked 6/4/2023 12:35:11 PM Completed Security Checked 6/4/2023 12:35:11 PM
Payment Events Status Timestamps Electronic Record and Signature Disclosure Electronic Record and Signature Disclosure created on: 3/20/2022 7:06:47 PM Parties agreed to: Alejandro Gonzales
ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
From time to time, First American Title (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign system. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to this Electronic Record and Signature Disclosure (ERSD), please confirm your agreement by selecting the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system.
Getting paper copies
At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. You will have the ability to download and print documents we send to you through the DocuSign system during and immediately after the signing session and, if you elect to create a DocuSign account, you may access the documents for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below.
Withdrawing your consent
If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below.
Consequences of changing your mind
If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. Further, you will no longer be able to use the DocuSign system to receive required notices and consents electronically from us or to sign electronically documents from us.
All notices and disclosures will be sent to you electronically Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us.
How to contact First American Title:
You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: [email redacted]
To advise First American Title of your new email address
To let us know of a change in your email address where we should send notices and disclosures electronically to you, you must send an email message to us at [email redacted] and in the body of such request you must state: your previous email address, your new email address. We do not require any other information from you to change your email address.
If you created a DocuSign account, you may update it with your new email address through your account preferences.
To request paper copies from First American Title
To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an email to [email redacted] and in the body of such request you must state your email address, full name, mailing address, and telephone number. We will bill you for any fees at that time, if any.
To withdraw your consent with First American Title
To inform us that you no longer wish to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your signing session, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may;
ii. send us an email to [email redacted] and in the body of such request you must state your email, full name, mailing address, and telephone number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process..
Required hardware and software
The minimum system requirements for using the DocuSign system may change over time. The current system requirements are found here: https://support.docusign.com/guides/signer-guide- signing-system-requirements.
Acknowledging your access and consent to receive and sign documents electronically
To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please confirm that you have read this ERSD, and (i) that you are able to print on paper or electronically save this ERSD for your future reference and access; or (ii) that you are able to email this ERSD to an email address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format as described herein, then select the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system.
By selecting the check-box next to ‘I agree to use electronic records and signatures’, you confirm that:
You can access and read this Electronic Record and Signature Disclosure; and You can print on paper this Electronic Record and Signature Disclosure, or save or send this Electronic Record and Disclosure to a location where you can print it, for future reference and access; and Until or unless you notify First American Title as described above, you consent to receive exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you by First American Title during the course of your relationship with First American Title. LOAN #: [number redacted] U,s. Department of Houslng OMB Approval No. 2502-0069 Warranty of Completion and Urban Developmant (Explra 01/31/2024) of Construction Oflce of Houaing Federal Housing Commlssloner Thls Intormatlon ls required to obtaln a HUD-lnaured alngle lamly morigage. Publio reporting burden tor thle collectlon of Inlormallon ls estimatad to average 3minutes per responee, Including the tme for reviewing Instruotion8, searohing exleting data sOuoes, galherlng and maintaining the data needed, and oompleling and revlewing the colleatlon ol Informatlon. Thle agenoy may not conduct or sponsor, and you are not requlrad lo respond to, a colleatlon of Intormatlon unlese that collectlon dlsplays a valid ÖMB oontrol numbar. HUD collecls thls InformatBon to detemine the Ineurabltly of a mortgage on the caplioned properly and may uBe #to make a linal daterminatton as to whelher a defect exlsls and whether the bullder mual remedy the delect. Prlvacy Aot Notlce: The Unlted Stalea Dapartment ol Housíng and Urban Development, Federal Houslng Adminlstratlon, la authorlzed to sollcit the intormatton roqueated In tho form by virtue oTitle 12, Unlted stalos Cod, Bectlon 17o1 et seq, and regulstlons promulgated thereunder at Title 12, Code ol Faderal Ragulallons. While no assurance ol conlidentlally ls pledged to respondents, HUD generaly dlecloses this data onty ln response to a Fresdom of Informatlon Aot requesl. Londert Name, Addross and Phone Number ((nohude Area Code) Namo(a) of Purohaaer/Owner DHI Mortg age Company, Ltd, LImlted Partnershlp |Ale<androGonzales 10700 Pecan Park Blvd Sulte 460 Austin, TX 78780 (612) 602-0846
Properly Address FHAVA Cao Number 16847 S Old Joyce Place 45-46-6-3361721 Sahuarita, AZ 86629
For good andvaluable ccnalderaton, and In accordance with Sectlon 801 of the Houalng At ol 1954, and Publc Law 85-857 (38 U.S.C.93705), the undersignad Warrantor hereby warranis to Ihe Purchasar(s) or Owner(s) 1dentihedln the caplon hereof, and to hls/her BUCoG88ors or translere es, that: The dwelling localed on Ihe property ldehtlfled in the caption hereaf ls oonstructed In substantlal aontormity with the plans and specilicatons (Inaluding anyamendments thereol, or changes and varlations therein). Provided however, that thia warranty ahall apply ony to such Instances of subatantlal nonconformlty as to which the Purchasere)yOwner(s) or hisherorlalnai (thelr)osu e Or lranslerees shallhave glven wrtten notlce the Wartanlor al any or tmes wlthin oneyea On tne date of of Utle to auch PurchaserlsVOwner(s) or the dale of Initlal ocCupancy, uahevet flfirst r occurs. ber that lo the event (1) (he Purchasar5) Ownorle) acquired tle to the captonad property prior to the completlon of construclon of the dweling thereon, such nolce ot nonconfornty to tha Warrantor may be givan any lime or timas within one yoar irom the dale of complation or inlal occupancy oi auch dwelling, whlchever first occurs, or (2) where hhas bean nec95sary to postpone Improverments, auch notice of nonoonformity to the Warrantor as to such Inoomplete itema may be glven al any tBme or tImes within one year Irom the dale of tull completion of each of such ltema The termupon speciilcations "dwllng" whlch as the usad herain Faderal shallCommlssloner Houaing be doemed toorinclude allImprovamenis the Secretary or appurtanancea of Veterans Afalrs has based theeelvaluatlon forth Inofthetheplans and property, axoepling those constructad by a municipalty or other government authorlty Thedefects agalnst underaigned Warrantor In equlpmen, furtheror workmanshlp materlal, warranta to theandPurchasar(s) /Owner(s) materlals suppled or hla/nerby(thelir) or performed suco048Orl the Warrantor or translerses, or any subcontractortheorproperty suppller af any ier reaultlng In nonoompllanoe wih standards of qu allty as measured by accepleble trade practlces. Thls warranty ahall continue lor aperiod otone year Irom the date of orlginal conveyance of tite to such Purchaser(e) or lromthe dale of full complaion ot each of any lama completed aterconveyance of ite.Tho Warrantor shal remedy, at the Warrantor' expense, any defaci(s)of squlpment, malerial, or workmenshigp lurnlshed by the Warantor.The Warrantor shal restore any work damaged in tullng the terms and condlflona of this waranty, Ila manufaotured (moblle) home was erected on this property. the Manutacturer'a Neme, Addreas APhone Number (nclude Area Code) Warrantor furthar warrants thai (1) he property (other thanthamanu tacturedUnit Iteel) complles with the submlted construcllon exhlblls; (2) the manulactured home sustalned no hldden damage during transporiation and erectlon; and (3) |the home was manuteotured In separate sacllons, the sectlons were properly Joined and sealed. Thla waranty ahall be in addtion to, and not in derogatlon ot, al other rights and prilvleges whlch euch Purchaser(e) Ownerie) or hisher (their) suocesoror traneteraos may havo undar any other law or Inetrumani, and ahallaurvve the conveyance of title, delvery ol poaseaslon ol the property, or other inal setiemenl made by the Purchaserta)y Owner(a), and ahall be binding on the Warrantornotwiths landing any provision to the contrary oontained in the contract of purchase or other writing executed by the Purahasera)/ Ownarla) or hls/het ihal) sucoAsBors or iransteress heretolore or conlemporanaoUsly wlth the xecutlon of thle agreament or prior to inal satament. Maka.This warranty iaorexeauted to Ouarantee lo lnsure lor the purpoon theof captloned a morlgage indualng theproparty, FaderalandHouaing Commisaloner in9 person or the 3gning Tar the Secrelaryrepre8ents Warrantor ot Veterana andAfalra certteatto that ha/ahe la authortzad to oxecute the same by the warranlo and by hls/her signature the tle duy bound under the lerms and sald warranty, BxLatsThe andFHA Commssioner the bullderormust the Secratary remedy theol defect. Vaterans Afairs reserves the right lo make afinal determinatlon oondialher whether The undersigned Warrantor certifles under panaity oft perjury ihat the property was conatrucled in compllance with HUD's Minimum Property Rsquirement and Minlmum Property Standard or VA's New Conatrucilonor Proposed or Under Conatructen naqulrament8, Werrentor Slgnature Purchaser(u))A OWledgement Date (mm/ddyyvy) Warranlora Title e0hasar Closing Manager Alejandro Gonab6 Slgnature ol Purchasa Dale (mm/ddyyyy)
DR HORTON Bullder's Phone Number (IncludArpn Oode) 620-790-6006 6876 NORACLE ROAD, STE 126 Tucson, AZ 86704
Purthasar Nalas Any olos ol nonoonlormily muet be delvered lo the waranlor wlthin the period or peroda Lat forth abov Warning:Anyane who knowingy aubmils alalae claim, or makes lalse slalamenis in subject lo crmlnal and civil panalies, inçiudng conílinaibgt lar up lo 5yoad, Anes and clvll penaltlea. (18 u.6.C. 2871001 and 31, U8.0.3720) Proddo complated coplos of thlo warranly lo bath the hombuyer andIhe buider, al cloaing, Incude acopy of thie warantyln the causbndarayent a Hua Prevlous edllons are obsolete. Comblrnes prevlous HUD-92644-A. VA lorm 28-1869 lorm HUD-92844 (er2020) rel. HUD Handbook 4000.1 ICE Morigage Technology, lnc. GFH3 0921 GFH3 (CLS) o8/23/2023 09:24 AM PSt Mediation Notice
Mediation Services Mediation services are available to the parties. What is Mediation? Mediation is a method of resolving disputes where the parties can end conflict without the expense and time associated with the full administrative process. Who Participates in During mediation, a mediator will attempt to help the Mediation? parties find an optimal solution to the conflict. Both parties must agree to participate in mediation, and both parties must bring a representative to mediation that has full authority to settle the entire matter. Mediation Is Not Neither the Registrar nor the Office of Administrative Mandatory Hearings will penalize a party for not agreeing to mediation. Where do the Parties The parties will meet at the Office of Administrative Meet for Mediation? Hearings to participate in mediation.
The Office of Administrative Hearings is located at 1400 West Washington, Suite 101, Phoenix, Arizona 85007. When does Mediation can occur after the Registrar issues a citation, but Mediation Occur? before the administrative hearing. Why Should Parties Mediation can be an alternative to the full administrative Consider Mediation? process. Mediation is beneficial because it is (1) time- efficient, (2) cost-effective, (3) confidential, and (4) capable of providing flexible solutions to complex problems. How to Request If the parties wish to mediate this case, they must file a Joint Mediation Request for Mediation with the Office of Administrative Hearings. A Joint Request for Mediation is included with this Mediation Notice. REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA _________________________ Case No. _______________ COMPLAINANT,
v. JOINT REQUEST FOR MEDIATION _________________________ RESPONDENT.
REQUEST
The parties jointly request that this matter be referred to mediation in the Office of Administrative Hearings (OAH). ☐ This matter is set for hearing on __________________(date). ☐ This matter is not currently set for hearing. MEDIATION AGREEMENT By requesting this mediation and signing below, the parties understand, represent, and agree: 1. The parties are prepared to commence mediation and will be ready for mediation on _____________________(date); 2. The parties will participate in the mediation process in good faith; 3. This request for mediation is not intended to hinder or delay administrative proceedings; 4. No party will contend that the mediation limits the power of OAH and its administrative law judges to conduct an administrative hearing and issue decisions under A.R.S. §§ 41-1092 – 1092.12; 5. The parties will be courteous and respectful throughout the mediation process to all participants; 6. The mediation is completely voluntary and the principal purpose is to allow the parties a full and fair opportunity to discuss settlement; of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 7. The mediator may conduct joint and separate meetings with the parties and may suggest resolutions to the parties’ dispute, but the mediator has no authority to impose a settlement upon the parties; 8. The mediation process is confidential. Communications made, material created for or used during, and acts occurring during mediation are confidential and may not be discovered or admitted into evidence in any proceeding except as provided by A.R.S. § 12-2238; 9. The mediator is not subject to service of process or a subpoena to produce evidence or to testify regarding any evidence or occurrence relating to the mediation except as provided in A.R.S. § 12-2238(C); 10. Neither the mediator, nor the Registrar of Contractors, nor the Office of Administrative Hearings is subject to civil liability for any act or omission in connection with any mediation service or activity except for acts involving
intentional misconduct or reckless disregard of a substantial risk of injury to the rights of others; 11. Throughout the mediation process, each party must have a representative present who will have full settlement authority to settle all claims at issue in the administrative
proceeding. 12. The mediation process will terminate when: a. The parties reach settlement; b. The mediator determines that further efforts at mediation are no longer likely
to achieve a settlement; or c. One of the parties withdraws from mediation. _____________________________________ _______________________ Complainant (or representative) Date
_____________________________________ _______________________ Respondent (or representative) Date
of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 PREHEARING DISCLOSURE STATEMENT INSTRUCTIONS ***DO NOT SUBMIT THESE INSTRUCTIONS WITH THE PREHEARING DISCLOSURE FORM***
ADMINISTRATIVE RULES A copy of the Arizona Administrative Code’s Rules for the Registrar of Contractors can be located on the Registrar’s Website.
PREHEARING DISCLOSURE REQUIREMENT Under A.A.C. R4-9-118(A), before a hearing, the parties must prepare a disclosure statement. The disclosure statement must contain: • A list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony; and • A list of all the exhibits that the party will use at the hearing.
FILE PREHEARING DISCLOSURE STATEMENTS • The Prehearing Disclosure Statements and Exhibits may be submitted to the Arizona Office of Administrative Hearings using any of the following: • Electronically: https://portal.azoah.com/submission/ • In-Person or by Mail: 1740 West Adams Street, Lower Level, Phoenix, Arizona 85007
EXCHANGING DISCLOSURE STATEMENTS AND EXHIBITS Under A.A.C. R4-9-118(B) (effective November 5, 2017), a party to the hearing must serve on every other party and file with the Office of Administrative Hearings a copy of: • The disclosure statement; and, • Any exhibit that the party will use at the hearing. Service: The disclosure statement and exhibits must be served on all parties in accordance with Arizona Administrative Code R2-19-108 Filing Documents. Under A.A.C. R2-19-108, service is completed by: • Personal delivery; • 1st class, certified or express mail; or • Facsimile. Timing: The disclosure statement and the exhibits must be served and filed not less than seven calendar days before the date of the hearing. Under A.A.C. R2-19-108, a document is served on a party: • On the date it is personally served; • Five days after it is mailed by express or 1st class mail; • On the date of the return receipt if it is mailed by certified mail; or • On the date indicated on the facsimile transmission.
CONSEQUENCES FOR FAILING TO DISCLOSE Under A.A.C. R4-9-108(C), if a witness or an exhibit is not timely disclosed as required the rules, and good cause for the failure to disclose is not shown, then the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.
Form RC-L-800A Prehearing Disclosure Statement Rev. 10/08/2019 Instructions Form PREHEARING DISCLOSURE STATEMENT FORM RC-L-800A
PART 1: WITNESS LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony. If you need additional space to list all witnesses, complete and attach additional Witness Lists. Example 1. Name 2. Telephone Number 3. Email Address
John Doe (123) 456-7890 [email redacted] 4. Subject Matter of Expected Testimony
John Doe will testify regarding the poor workmanship and poor installation of the Garage Door. Mr. Doe will also testify regarding the invoices and change orders for the project.
Witness 1. Name 2. Telephone Number 3. Email Address
4. Subject Matter of Expected Testimony
Witness 1. Name 2. Telephone Number 3. Email Address
4. Subject Matter of Expected Testimony
Witness 1. Name 2. Telephone Number 3. Email Address
4. Subject Matter of Expected Testimony
Witness 1. Name 2. Telephone Number 3. Email Address
4. Subject Matter of Expected Testimony
Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 1 of 3 PART 2: EXHIBIT LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the exhibits that the party will use at the hearing. Note: All exhibits listed below must be provided to all parties to the hearing. See A.A.C. R4-9-118(B). If you need additional space to list all witnesses, complete and attach additional Exhibit Lists. Example Contract for new garage door. Invoice #10001 – Cost for garage door replacement.
Exhibit Exhibit Name
Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 2 of 3 PART 3: ACKNOWLEDGEMENT & SIGNATURE I certify that the above information is true and correct and that I will serve a copy of this disclosure statement and any exhibits listed in Part 2 to all parties to the hearing in accordance with A.A.C. R4-9-118. I acknowledge and understand that if I fail to properly disclose a witness or exhibit, the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.
I am the (check one): Complainant Respondent Docket No.
Print Name Signature Date
Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 3 of 3