Arizona Revised Statutes Title 37. Public Lands § 37-249. Actions to rescind sales

A. The commissioner or any other person may rescind a sale based on fraud only by filing an action in the superior court. An action based on fraud shall be filed within three years after the date of the auction of that property. If the court voids the sale pursuant to this subsection because the buyer has committed fraud, the buyer at that sale shall not receive a refund of the monies paid for the fraudulent sale.

B. A person may rescind a sale based on failure to comply with the enabling act, the Constitution of Arizona or the statutes only by filing an action in the superior court. An action based on the failure to comply with the enabling act, the Constitution of Arizona or the statutes shall be filed within two years after the date of the auction of that property, unless a shorter period of limitations applies. If the court voids the sale pursuant to this subsection, the buyer at that sale shall reconvey the property to the state land department. The department shall refund the money paid thereon to the buyer at that sale, and make compensation to the buyer for the actual value of the improvements placed on the land by the purchaser. The value shall be determined by the department and paid from the general fund.

C. A person who files suit pursuant to this section shall record a notice of lis pendens in the county or counties in which the property is located. Suit shall not proceed to trial unless the court receives a copy of the recorded lis pendens.

D. This section does not apply to actions to protest auctions pursuant to § 37-301.