The bill SB1218 amends Arizona Revised Statutes by adding provisions that outline unlawful practices for exclusive property engagement agreements. It defines "exclusive property engagement agreement" as a contract granting exclusive rights to list or sell residential real estate and "residential real estate" as property used primarily for personal, family, or household purposes with fewer than five dwelling units.

The bill prohibits exclusive property engagement agreements from lasting longer than 12 months, being a covenant that runs with the land, binding future owners without their consent, being recorded in county records, authorizing liens or encumbrances, allowing assignment without owner consent, and failing to meet statutory real estate employment agreement requirements. It voids agreements if listing services don't begin within a year and prohibits courts from enforcing agreements made in violation of these requirements. Contracts made or recorded in violation are deemed void and unenforceable, and any paid consideration must be forfeited. The bill also includes a legislative intent statement, a severability clause, and becomes effective on the general effective date.