ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: COM DPA 11-0-0-0

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2397: homeowners' associations; property covenants; disclosures

Sponsor: Representative Biasiucci, LD 30

House Engrossed

Overview

Makes revision to Condominium and Planned Communities statutes relating to the sale of units or properties.

History

A condominium or planned community association (HOA) is formed and organized under governing documents which include a declaration, bylaws and articles of incorporation, if any. An HOA is responsible for managing, maintaining and improving community property. Members of the association elect a board of directors who are given general management powers to act on behalf of the association (Title 33, Chapters 9 & 16, A.R.S.).

Provisions

Condominiums

1.   Restates, for condominiums with fewer than 50 units, that a unit owner must electronically transmit specified information to the purchaser within 10 days after acceptance of the purchaser's offer to purchase. (Sec. 1)

2.   Restates, for condominiums with 50 units or more, that the association must electronically transmit specified information to the purchaser within 10 days after receipt of a written notice of a pending sale containing the name, email address and mailing address of the purchaser or the purchaser's designated agent. (Sec. 1)

3.   Modifies the specified information that must be sent to the purchaser prior to sale. (Sec. 1)

4.   Outlines additional information that must be provided to the purchaser prior to sale, relating to insurance, declarant control, percentage of units owned by an owner and viewing a summarized report in its entirety. (Sec. 1)

5.   Requires all the provided information to be based on the good faith reliance on association records or information, without the need for independent investigation or validation. (Sec. 1)

6.   Adds that a purchaser or seller may pursue all remedies at law against the unit owner or the association for knowingly or recklessly providing materially false or misleading statements in the disclosure report. (Sec. 1)

 

Planned Communities

7.   Restates, for communities with fewer than 50 properties, that a member must electronically transmit specified information to the purchaser within 10 days after acceptance of the purchaser's offer to purchase. (Sec. 2)

8.   Restates, for communities with 50 properties or more, that the association must electronically transmit specified information to the purchaser within 10 days after receipt of a written notice of a pending sale containing the name, email address and mailing address of the purchaser or the purchaser's designated agent. (Sec. 2)

9.   Modifies the specified information that must be sent to the purchaser prior to sale. (Sec. 2)

10.  Outlines additional information that must be provided to the purchaser prior to sale, relating to declarant control and viewing a summarized report in its entirety. (Sec. 2)

11.  Requires all the provided information to be based on the good faith reliance on association records or information, without the need for independent investigation or validation. (Sec. 2)

12.  Adds that a purchaser or seller may pursue all remedies at law against the member or association for knowingly or recklessly providing materially false or misleading statements in the disclosure report. (Sec. 2)

Miscellaneous

13.  Makes clarifying changes. (Sec. 1, 2)

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17.  Initials PB                       HB 2397

18.  2/13/2026  Page 0 House Engrossed

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