The proposed bill, SB1218, introduces regulations for "exclusive property engagement agreements" related to residential real estate in Arizona. It defines such agreements as contracts granting exclusive rights to list or sell residential properties and outlines specific unlawful practices associated with these agreements. Key provisions include prohibiting agreements from lasting longer than 12 months, binding future owners without proper conditions, being recorded in county offices, or allowing security interests against the property. Additionally, if listing services do not commence within one year of the agreement's execution, the agreement is rendered void.

The bill also establishes that courts cannot enforce agreements that violate these regulations and mandates the forfeiture of any consideration paid under such agreements. It requires the Arizona Department of Real Estate to disclaim the validity of non-compliant agreements and to display this information publicly. Violations of the bill are classified as unlawful practices under the Arizona Consumer Fraud Act, subjecting offenders to penalties and allowing for private enforcement actions. Overall, the bill aims to protect homeowners and potential buyers from unfair and deceptive practices in real estate transactions.