Bill > HB2397

This bill updates Arizona law regarding disclosures required when selling a condominium unit or property within a planned community association, aiming to provide purchasers with more comprehensive information. Key changes include allowing for electronic transmission of documents instead of just mail, requiring associations to provide minutes from the last three open board meetings, and expanding the financial information that must be disclosed to include payment schedules for assessments, details on any special assessments, and information on known material deficiencies affecting the property that could lead to direct repair costs for the buyer within six months. The bill also clarifies that disclosures should be based on good faith reliance on association records without independent investigation, and it strengthens remedies for purchasers and sellers if associations knowingly or recklessly fail to disclose required information or provide materially false statements. Additionally, it updates the fee structure for preparing these disclosure documents, allowing for a fee to update reports if more than thirty days have passed since the original disclosure, and clarifies that these fees can only be charged once per transaction. The bill also introduces a new statement for purchasers to sign at closing, acknowledging their contractual obligations to the association and the potential for foreclosure if assessments are not paid, and requires notification to purchasers if the property is subject to multiple associations.

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https://apps.azleg.gov/BillStatus/BillOverview/84160