ALJDEC decisions subject to certification as final
23F-387-REL-RES · Department of Real Estate · 2024-01-08
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
In the Matter of the Real Estate Activities of:
VILLALOBOS, MARIA,
an unlicensed individual,
Respondent.
No. 23F-387-REL-RES
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: December 19, 2023.
APPEARANCES: Maria Villalobos did not appear. Assistant Attorney General James Rolstead represented the Arizona Department of Real Estate.
ADMINISTRATIVE LAW JUDGE: Kay A. Abramsohn
EXHIBITS ADMITTED INTO EVIDENCE: Exhibits 1 through 18.
FINDINGS OF FACT
On April 4, 2023, the Maricopa County Assessor’s Office (MCAO) sent the Arizona Department of Real Estate (Department) a Notice of Multiple Splits (Notice) involving possible illegal subdivision activity.
2. That Notice identified Maria Villalobos (Villalobos), an unlicensed individual, as the owner of vacant land which is described as Parent Parcel Number (PPN)
506-41-160(D).
3. Upon investigating, the Department found that, between May 23, 2022 and
February 27, 2023, Villalobos created and conveyed eight contiguous lots in Maricopa County. Villalobos performed these actions without first obtaining either an Arizona Public Report or other Commissioner authorization prior to offering for sale, or selling any of the lots to a member of the public, as is required by Arizona Revised Statutes (A.R.S.) § 32-2181(A) and A.R.S. § 32-2183(I).
4. During the relevant period, Villalobos performed the following acquisition and conveyances:
a. On May 23, 2022, Villalobos acquired the un-subdivided 18.86 acre
parcel 506-41-160D, in Maricopa County.
b. On June 14, 2022, Villalobos split PPN 506-41-160D into five lots. At the time of the split, the lots were not assigned Assessor Parcel Numbers (APN) and were designated Lots 1 through 5.
c. Lot 2 was subsequently split into four lots.
d. On July 23, 2022, Villalobos conveyed a lot to Erica Pacheco.
e. Villalobos conveyed a lot to Osbaldo Murillo, via quit claim deed on
September 7, 2022 and warranty deed on February 8, 2023.
f. On October 22, 2022, Villalobos conveyed a lot to Sebastian Torres via quit claim deed.
g. On January 31, 2023, Villalobos conveyed three lots to Melissa
Alvarenga-Lugo via quit claim deed.
h. On February 27, 2023, Villalobos conveyed two lots to Jose Mendoza-Villa via warranty deed.
5. On April 10, 2023, the Department sent a letter to Villalobos with a request for response by April 22, 2023. Villalobos did not respond.
6. On April 28, 2023, the Department sent a letter to Villalobos via certified mail. The letter was unclaimed and returned to the Department.
7. On August 22, 2023, after those attempts to send correspondence by regular and certified mail, the Department served Villalobos with a Final Notice regarding a Consent Order via process server. However, Villalobos never responded to the Department.
8. On November 14, 2023, the Department issued its Notice of Hearing and Complaint setting the hearing to convene on December 19, 2023 at 1:00 p.m. at the Arizona Office of Administrative Hearings, an independent state agency.
9. At the time set for hearing, Villalobos failed to appear. As a result, the hearing proceeded in her absence and Villalobos failed to present any evidence in this matter.
APPLICABLE LAW
1. A.R.S. §32-2181(A) requires that “before offering subdivided lands for sale or lease, the subdivider shall notify the commissioner in writing of the subdivider’s intention.”
2. A.R.S. § 32-2183(I) provides that a subdivider shall not sell or lease or offer for sale or lease in this state any lots, parcels or fractional interests in a subdivision without first obtaining a Subdivision Disclosure Report (Public Report) from the Commissioner except as provided in A.R.S. §§ 32-2181.01 or 32-2181.02.
3. A.R.S. § 2185.09 provides that a subdivider or agent who is subject to the jurisdiction of the department, who violates this chapter or any rule adopted or order issued by the commissioner or who engages in any unlawful practices defined in section 44-1522 with respect to the sale or lease of subdivided lands may be assessed a civil penalty by the commissioner, after a hearing, in an amount not to exceed $2,000 for each infraction. An infraction that concerns more than one lot in a subdivision is a single infraction for the purposes of this section.
CONCLUSIONS OF LAW
1. The hearing record demonstrated that Villalobos did not notify the Commissioner, before offering subdivided lands for sale or lease, of her intention to sell subdivided lands, in violation of A.R.S. § 32-2181(A).
2. The hearing record demonstrated that Villalobos offered for sale or lease or sold subdivided lands without obtaining a Subdivision Disclosure Report (Public Report) from the Commissioner, in violation of A.R.S. § 32-2183(I).
3. Pursuant to A.R.S. § 32-2185.09, the Commissioner has jurisdiction to assess to a subdivider a civil penalty of up to Two Thousand Dollars ($2,000) for each infraction of the applicable laws.
RECOMMENDED ORDER
IT IS ORDERED that, pursuant to A.R.S. § 32-2185.09, Maria Villalobos be assessed a $2,000.00 civil penalty.
In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be forty (40) days from the date of that certification.
DONE this day January 8, 2024.
/s/ Kay A. Abramsohn
Administrative Law Judge
Transmitted electronically to:
Susan Nicolson, Commissioner
Arizona Department of Real Estate
Maria Villalobos
10649 W. Coronado Rd.
Avondale, AZ 85392
Respondent
James Rolstead
Assistant Attorney General
[email redacted]
Attorney for the Department
By: OAH Staff