The Arizona Court of Appeals confirmed Arizona statutory law that Arizona home sellers are not required to disclose sex offenders to potential home buyers. The Court did, however, also find that fraud claims may be allowed if there is proof that sellers deliberately mislead the buyers in response to specific inquiries. You can read a report with further information on the ruling here.
If you're dealing with an issue involving a party's failure to disclose information in connection with an Arizona real estate contract, you should discuss the matter with an Arizona real estate attorney as soon as possible.