The bill amends the Horizontal Property Act in Arkansas by updating definitions and provisions related to "apartments," "general common elements," and "limited common elements." It clarifies the definition of "apartment" as a physical portion of the property designated for separate ownership or occupancy, with boundaries described in the master deed. New provisions are introduced regarding the allocation of common elements and the rights of owners, including the ability to subdivide apartments or units and establish development rights for declarants. The bill also outlines the requirements for creating a horizontal property regime, emphasizing the need for a master deed that details property descriptions, allocation of interests, and amendment methods.

Additionally, the bill revises existing laws concerning the management and financial responsibilities of co-owners within a horizontal property regime. It replaces the term "apartments" with "an apartment or unit" and specifies that co-owners must pay expenses according to percentages set by the master deed rather than on a pro rata basis. The bill also introduces provisions for additional assessments on co-owners who rent or lease their units, addressing costs related to increased wear and tear. Furthermore, it mandates that declarants contribute to operational expenses until control of the association is terminated or five years after their first unit conveyance, and it prioritizes unpaid assessments upon the sale of an apartment or unit. The act will apply to new horizontal property regimes established on or after September 1, 2025, while existing regimes may adopt these provisions by amending their master deeds.

Statutes affected:
Old version SB323 V2 - 4-1-2025 02:15 PM: 18-13-102(1), 18-13-102(4), 18-13-102(5), 18-13-102
Old version SB323 Original - 2-26-2025 02:35 PM: 18-13-102(1), 18-13-102(4), 18-13-102(5), 18-13-102
SB 323: 18-13-102(1), 18-13-102(4), 18-13-102(5), 18-13-102
Act 516: 18-13-102(1), 18-13-102(4), 18-13-102(5), 18-13-102