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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: COM DPA 11-0-0-0 | Third Read: 52-3-4-0-1Senate: GOV DPA 5-1-1-0 | Third Read 29-0-1-0-0Final Read: 47-5-8-0-0 | Chapter: 249 |
HB 2397: homeowners' associations; property covenants; disclosures
Sponsor: Representative Biasiucci, LD 30
Signed by the Governor
Overview
Makes revisions 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
2. Requires, for condominiums with 50 units or more, the unit owner to provide a written notice to the association of the owner's acceptance of the purchaser's offer to purchase containing the name, email address and mailing address of the purchaser or the purchaser's designated agent. (Sec. 1)
3. Instructs the association to electronically transmit to the purchaser within 10 days after receipt of the written notice of a pending purchase offer, rather than a pending sale, the prescribed information. (Sec. 1)
4. Modifies the prescribed information that must be sent to the purchaser. (Sec. 1)
5. Outlines additional information that must be provided to the purchaser, relating to insurance, declarant control, percentage of units owned by an owner and viewing a summarized report in its entirety. (Sec. 1)
6. 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)
7. 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
8. 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)
9. Requires, for communities with 50 properties or more, the member to provide a written notice to the association of the member's acceptance of the purchaser's offer to purchase containing the name, email address and mailing address of the purchaser or the purchaser's designated agent. (Sec. 2)
10. Instructs the association to electronically transmit to the purchaser within 10 days after receipt of the written notice of a pending purchase offer, rather than a pending sale, the prescribed information. (Sec. 2)
11. Modifies the prescribed information that must be sent to the purchaser. (Sec. 2)
12. Outlines additional information that must be provided to the purchaser, relating to declarant control and viewing a summarized report in its entirety. (Sec. 2)
13. 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)
14. 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
15. Makes clarifying changes. (Sec. 1, 2)
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19. Initials PB HB 2397
20. 3/30/2026 Page 0 Signed by the Governor
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