Whenever homeowners in an HOA sell their condo units or homes, Arizona law requires the HOA, the management company and/or the seller to provide several documents to the potential purchaser.

Within 10 days of receiving written notice of a pending sale, the following documents must be delivered to the purchaser or purchaser’s agent in either paper or electronic format.

• A copy of the HOA’s bylaws, rules and declaration of covenants, conditions and restrictions. In Sun City West that includes both the individual HOA’s documents as well as the applicable Sun City West documents.
• A dated statement with the phone number and address of the principal contact for the HOA.
• The amount of the regular assessment plus any unpaid assessment or any other amounts due from the seller. Failure to provide the information within the time provided shall extinguish any lien for any unpaid assessment then due against that unit. See ARS §33-1256 (condos) and §33-1807 (planned communities) for complete information.
• A statement as to whether any portion of the unit is covered by insurance carried by the HOA.
• The total amount of money in the HOA’s reserve accounts.
• The following statement as written below must be signed by the purchaser and be returned to the HOA within 14 calendar days. “I hereby acknowledge that the declaration, bylaws and rules of the association constitute a contract between the association and me (the purchaser). By signing this statement, I acknowledge that I have read and understand the association’s contract with me (the purchaser). I also understand that as a matter of Arizona law, if I fail to pay my association assessments, the association may foreclose on my property.’”
• A copy of the HOA’s most current operating budget.
• A copy of the HOA’s most recent annual financial report. A summary of the report in lieu of the entire report can be provided if the report is longer than 10 pages.
• A copy of the HOA’s most recent reserve study, if any.
• A statement summarizing any pending lawsuits in which the HOA is a named party, including the amount of any money claimed. Lawsuits relating to the collection of assessments owned by unit owners other than the selling unit owner are excluded.

If the unit owner or the HOA fails to disclose the above required information and a purchaser or seller is damaged by the failure to disclose the information, the injured party can pursue all remedies at law or in equity against the unit owner or HOA, whichever failed to comply, including the recovery of reasonable attorney fees.

The information above is a summary of the basic requirements for the sale and transfer of HOA properties in Arizona. It is imperative that HOA boards and management companies read all of the applicable statutes. Additional requirements can be found in the condo and planned community statutes in Arizona 2019-20 book in Title 33, Chapter 9 (condos) and Title 33, Chapter 16 (planned communities).

A printed copy of the condo and planned community statutes in Arizona 2019-20 book can be picked up from the Organization of HOAs Office in the Sun City West Foundation building, 14465 R.H. Johnson Blvd., once COVID-19 restrictions are lifted. One book per each Sun City West HOA board is allowed. A digital copy of Arizona condo and planned community statutes in Arizona 2019-20 is also available online.

Editor’s Note: Ms. Hogaboam is Organization of HOAs publicity director.