ARIZONA HOUSE OF REPRESENTATIVES

HB 2262: condominiums; termination; appraisals

PRIME SPONSOR: Representative Toma, LD 22

BILL STATUS: Chaptered

Abstract

Relating to the termination of a condominium.

Provisions

1. States that upon termination of a condominium, each unit that is owner-occupied receives an additional 5% of the appraisal for relocation costs. (Sec. 1)

2. Directs the association to select an independent appraiser to determine the FMV of the condominium. (Sec.1) 

3. Gives unit owners 60 days to object to the association's appraisal. (Sec. 1)

4. Permits a second independent appraisal at any unit owner's expense and if that appraisal differs from the association's appraisal by 5% or less, the higher appraisal is final. (Sec. 1)

5. Stipulates that if the second appraisal is more than 5% greater than the amount of the association's appraisal, the unit owner must submit to arbitration at the association's expense and the arbitration amount becomes the final sale amount; an additional 5% is added for relocation costs. (Sec. 1)

6. Voids any declaration that conflicts as a matter of public policy, beginning on the effective date of the legislation.  (Sec. 1)

7. Makes technical and conforming changes. (Sec. 1)

8. Contains an applicability clause. (Sec. 2)

Current Law

A condominium may be created by recording a declaration in the same manner as a deed in the county where the condominium is located. The declaration is in the name of the condominium, the name of the association and as required by law. (A.R.S. § 33-1211)

A condominium association agreement may be terminated if 80% of the condominium association approves. Unit owners are allowed 30 days to object to the association's appraisal as outlined. (A.R.S. § 33-1228)

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Fifty-third Legislature                  HB 2262

Second Regular Session                               Version 5: Chaptered

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