Arizona HOA & Condo Laws

SB 1246 (Laws 2026, Chapter 162) raised the threshold for an Arizona condominium association to foreclose its assessment lien under A.R.S. §33-1256. Foreclosure is now allowed "only if the unit owner has been and remains delinquent in the payment of any assessment or portion of the assessment for a period of eighteen months or in the amount of $10,000 or more, whichever occurs first, as determined on the date the action is filed." It was one year or $1,200. "For any special assessment with an initial value of $10,000 or more, only the eighteen-month delinquency threshold applies." The act also adds "common expense" or "judgment" before "lien" in five places where the section used the bare word. The section already spoke of a "common expense lien" and a "judgment lien". The bar on transferring "ownership or control of debt for common expense liens or unit owner expenses" becomes its own subsection O, and the applicability subsection moves from O to P. Effective September 12, 2026. The change in full →

HB 2397 (Laws 2026, Chapter 249) rewrote the resale disclosure for Arizona condominiums, A.R.S. §33-1260. In a condominium of fewer than fifty units, the seller has ten days from "acceptance of the purchaser's offer to purchase". In one of fifty or more, the seller must give the association written notice of the acceptance with the purchaser's name, email address and mailing address, and the association has ten days from "receipt of the written notice of a pending purchase offer". The package is transmitted electronically or delivered to "the purchaser or the purchaser's designated agent". The bylaws, rules and recorded declaration must be current. The package adds the final plat, "the board of directors-approved minutes from the previous three open meetings of the board of directors", payment schedules for regular and special assessments, and the most recent income and expenses financial statement for operating and reserve accounts. It must state any special assessment approved but not yet assessed or submitted for owner approval in the previous four months, any title transfer fee, any unresolved violation cited against the unit, whether the condominium is under declarant control and the declarant's approximate share of the units, and, if several associations govern the unit, that it is subject to each one's disclosure report and fee. It must also disclose any "known material deficiency or condition of the limited common elements associated with the unit or common elements" for which the purchaser will owe directly assessed repair costs within six months, and whether "any corporation or limited liability company owns and leases thirty-five percent or more of the units". The insurance statement stays and now comes with "a copy of all insurance certificates identifying the coverage limits and deductibles maintained by the association". The amount due from the seller becomes the "current amount of any unpaid common expense assessment lien or judgment lien on the unit" and any lis pendens the association recorded. A reserve study over ten pages may now be summarized, and the package must say that any summarized report can be seen in full on request. The total reserves figure, the statements on alterations or improvements that violate the declaration, and the case names and numbers of litigation between the association and the seller are no longer required. The purchaser's acknowledgment is rewritten and signed at the close of escrow; the old one was returned within fourteen calendar days. A late disclosure no longer extinguishes the association's lien under this section; §33-1256(J) still does when the association fails to give a requesting escrow agent the lien statement within ten days. Disclosures rest on "good faith reliance on association records or information, without the need for independent investigation or validation". The remedy for a damaged purchaser or seller now requires "knowingly or recklessly" failing to disclose, or "knowingly or recklessly providing materially false or misleading statements in the disclosure"; it previously reached any failure to disclose. The fee caps stay at $400, $100 for rush service and $50 for an update. The rule that let a fee below $400 on January 1, 2010 rise no more than 20 percent a year is deleted. Effective September 12, 2026. The change in full →

HB 2397 (Laws 2026, Chapter 249) rewrote the resale disclosure for Arizona planned communities, A.R.S. §33-1806. In a community of fewer than fifty properties, the seller has ten days from "acceptance of the purchaser's offer to purchase". In one of fifty or more, the seller must give the association written notice of the acceptance with the purchaser's name, email address and mailing address, and the association has ten days from "receipt of the written notice of a pending purchase offer". The package is transmitted electronically or delivered to "the purchaser or the purchaser's designated agent". The bylaws, rules and declaration must be current. The package adds the final plat, "the board-approved minutes for the previous three open meetings of the board of directors", payment schedules for regular and special assessments, and "the association's most recent income and expenses financial statement for all operating and reserve accounts". It must state any special assessment approved but not yet assessed or submitted for member approval in the previous four months, any title transfer fee, any unresolved violation cited against the property, whether the community is under declarant control and the declarant's approximate share of the lots, and, if several associations govern the property, that it is subject to each one's disclosure report and fee. The amount due from the seller becomes the "current amount of any unpaid common regular assessment lien or judgment lien on the property" and any lis pendens the association recorded. A reserve study over ten pages may now be summarized, and the package must say that any summarized report can be seen in full on request. The insurance statement, the total reserves figure, the statements on alterations or improvements that violate the declaration, and the case names and numbers of litigation between the association and the seller are no longer required. The purchaser's acknowledgment is rewritten and signed at the close of escrow; the old one was returned within fourteen calendar days. A late disclosure no longer extinguishes the association's lien under this section; §33-1807(J) still does when the association fails to give a requesting escrow agent the lien statement within ten days. Disclosures rest on "good faith reliance on association records or information, without the need for independent investigation or validation". The remedy for a damaged purchaser or seller now requires "knowingly or recklessly" failing to disclose, or "knowingly or recklessly providing materially false or misleading statements in the disclosure"; it previously reached any failure to disclose. The fee caps stay at $400, $100 for rush service and $50 for an update. The rule that let a fee below $400 on January 1, 2010 rise no more than 20 percent a year is deleted. Effective September 12, 2026. The change in full →