Arizona Planned Community Act — Sale Disclosure
HB 2397 (eff. 2026-09-12) rewrote this section. Ten-day delivery now runs from acceptance of the purchaser's offer to purchase (fewer than fifty properties) or from the association's receipt of the seller's written notice of that acceptance (fifty or more), not from receipt of a notice of pending sale. Twelve required items, up from seven -- new: board meeting minutes, unpaid lien/judgment lien and lis pendens status, title transfer fee, declarant-control percentage, a right to request the full report behind a summary, and a multi-association disclosure. Liability now requires knowing or reckless conduct. Fee caps unchanged: $400 aggregate, $100 rush, $50 update, collected only at close of escrow, $1,200 civil penalty for an unauthorized fee.
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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.
| Ref | Requirement |
|---|---|
| (B) | The association and the member can rely on what the association's own records say. Neither has to go verify it independently before disclosing it. This subsection did not exist before HB 2397. |
| (F) | A management company handling the packet is bound by the same deadlines, the same fee cap, and the same penalty. Unchanged in substance by HB 2397; the subsection letter moved from (E) to (F). |
| (G) | Three transactions are exempt from the section: a sale with a subdivision or timeshare public report, a section 32-2181.02 sale, and a deed recorded under one of two exemptions, listed in section 11-1134, from the affidavit of legal value. On the last of these, HB 2397 moved the duty to report the new owner's contact details from the member to the purchaser and dropped the words "for no additional charge." Unchanged in substance by HB 2397 apart from that; the subsection letter moved from (F) to (G). |
| (H) | Where the section puts a duty on the "member" it means the seller. The broker, the escrow agent, and a foreclosure trustee are not the member and do not carry the duty. Unchanged in substance by HB 2397; the subsection letter moved from (G) to (H) and the text now uses a numbered/lettered list rather than one paragraph. |
| Ref | Requirement |
|---|---|
| (A) | For communities with 50 or more properties, the association delivers; under 50, the seller delivers. |
| (A) | In a community of fewer than fifty properties, the seller's ten days run 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 name, email address, and mailing address of the purchaser or the purchaser's designated agent, and the association's ten days run from its receipt of that notice. Before September 12, 2026, both clocks ran from receipt of a written notice of a pending sale. |
| (A)(1) | The bylaws and the rules go in the packet, current as of the disclosure, in full, not in summary. |
| (A)(10) | New with HB 2397. A summary given in place of a full report under (A)(6) or (A)(7) does not end the matter. The purchaser can ask to see the whole report, and the association must give access to it within ten days after a written request. |
| (A)(11) | HB 2397 rewrote the acknowledgment. The purchaser now acknowledges being bound by the recorded declaration's covenants and by the duty to pay assessments, and that nonpayment can lead to collection and foreclosure without homestead protection. The purchaser signs it at the close of escrow. The old requirement that the signed statement be returned to the association within fourteen calendar days is gone. |
| (A)(12) | New with HB 2397. Where a master association and a sub-association both govern the property, the buyer is told that both reports and both fees apply. |
| (A)(2) | The declaration goes in the packet, in full, and now the final plat (or an electronic copy of it) goes with it if one is available. HB 2397 added the plat; it was not required before 2026-09-12. |
| (A)(4) | The seven statement items are one document and it carries a date. HB 2397 restructured this from the prior eight-item, (a)-(h) statement -- the items themselves changed, not just the count. |
| (A)(4)(a) | The buyer gets one telephone number and one address to reach the association. Who holds that role is the board's choice. Unchanged in substance by HB 2397; only the subsection letter moved, from (3)(a) to (4)(a). |
| (A)(4)(g) | HB 2397 replaced the old two-sided "alterations that violate the declaration" items -- one answered by the association from its records, one by the member from personal knowledge -- with a single test: is there a cited violation against this property that is still outstanding and unresolved. The old six-year lookback and the association/member split are both gone. |
| (A)(8) | Every pending suit naming the association is summarised with the amount claimed. Routine collection actions against other owners are the one exclusion. Unchanged in substance by HB 2397; the item number moved from 7 to 8. The old unit-specific litigation item at former (A)(3)(g) -- suits between the association and this one member -- is gone; only this association-wide item remains. |
| Ref | Requirement |
|---|---|
| (C) | HB 2397 added a state-of-mind requirement that was not there before. Before 2026-09-12, mere failure to disclose was enough for liability; now the purchaser or seller must show the nondisclosure or misstatement was knowing or reckless. |
| (E) | No money changes hands before escrow closes, and only once. A fee for resale disclosure, lien estoppel, or any other service related to the transfer or use of the property is prohibited unless the section authorizes it, and charging one carries a civil penalty of up to $1,200. Unchanged in substance by HB 2397; the subsection letter moved from (D) to (E). |
| Ref | Requirement |
|---|---|
| (A)(4)(b) | The statement gives the amount and payment schedule of the annual regular assessment, and the remaining installments and payment schedules on any special assessment already approved and assessed. HB 2397 added the schedules. The amount the seller owes is no longer part of this item; (A)(4)(d) now asks for the current amount of any unpaid regular assessment lien or judgment lien. |
| (A)(4)(c) | This did not exist before HB 2397. A special assessment the board is about to levy, or just asked members to approve, now has to be disclosed even before it is formally assessed. |
| (A)(4)(d) | HB 2397 replaced the old statement of amounts due with this item. It gives the current amount of any unpaid regular assessment lien or judgment lien the association holds on the property, and lists any lis pendens the association has recorded against it. The assessment lien needs no recording: under section 33-1807 the association has a lien for each assessment from the time it becomes due, and recording the declaration perfects it. The item is not limited to liens the association has recorded. |
| (A)(4)(e) | New with HB 2397. If the declaration lets the association charge a fee on transfer of title, by whatever name, the amount and purpose of that fee now has to be disclosed here -- separately from the (D) resale-disclosure fee cap, which does not govern this fee. |
| (A)(4)(f) | New with HB 2397. The latest income and expenses statement for the operating and reserve accounts now goes in the packet. The old statement of the total reserves held and the old statement on whether association insurance covers any part of the unit are no longer required. |
| (A)(5) | The budget in force goes in the packet. Unchanged in substance by HB 2397; the item number moved from 4 to 5. |
| (A)(6) | HB 2397 replaced the old "annual financial report" with whichever of an audit, a review, or a compilation report section 33-1810 requires the board to obtain -- a different, and more specific, document than before. |
| (D) | Aggregate fee cap of $400 for all transfer-related services, plus $100 rush and $50 update fees. |
| (E) | Fee may only be collected at close of escrow and charged once per transaction. |
| Ref | Requirement |
|---|---|
| (A)(3) | This item did not exist before HB 2397. Three meetings' worth of board-approved minutes now go in the packet. |
| (A)(9) | New with HB 2397. A buyer now learns, as a matter of statutory right, whether the developer still controls the board and roughly how much of the community the developer still owns. |
| Ref | Requirement |
|---|---|
| (A)(7) | Arizona does not require a planned community to have a reserve study. It requires the association to hand over the most recent one it has. Since HB 2397, a study of more than ten pages may be replaced by a summary, and the purchaser may then ask to see the whole study under (A)(10). The item number moved from 6 to 7. |
A.R.S. §33-1806 drives 16 required disclosure items in the Arizona Planned Community Act resale certificate.
- (A)(1) A copy of the current bylaws and the current rules of the association
- (A)(2) A copy of the current declaration and final plat, or an electronic copy of the final plat if available
- (A)(3) Board-approved minutes for the previous three open meetings of the board
- (A)(4)(a) The telephone number and address of a principal contact for the association, which may be an association manager, an association management company, an officer of the association, or any other person designated by the board of directors
- (A)(4)(b) The amount of and payment schedule for the annual common regular assessment, and the remaining installments and payment schedule on any approved and assessed special assessment
- + 11 more disclosure items