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PHOENIX (AP) - A court ruling upholds an Arizona law that says home sellers don't have to tell buyers that a sex offender lives nearby, but it also says lying about it could be fraud.

The Arizona Court of Appeals ruling Tuesday stems from a lawsuit filed by a couple who didn't know an offender lived next to the home they bought.

The couple said they should have been told about the offender and that the sellers lied about why they wanted to move.

The ruling says a judge correctly dismissed most of the case because Arizona law says sellers don't have to disclose certain things, including that a sex offender lives nearby.

But the ruling sends the case back to trial court to consider whether the sellers engaged in fraud.