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 designated physical portion of the property for separate ownership or occupancy, with boundaries specified in the master deed. New definitions for "common elements," "declarant," and "development rights" are introduced, outlining the roles and responsibilities of property owners and developers. The bill also establishes requirements for recording a master deed, including the allocation of interests in common elements and the process for amending the master deed, aiming to provide clearer guidelines for property ownership and management within condominium regimes.

Additionally, the bill addresses the management and financial responsibilities of co-owners within a horizontal property regime. It specifies that co-owners are liable for expenses based on percentages set by the master deed rather than a pro rata basis and allows for additional assessments on co-owners who rent or lease their units. The bill prioritizes unpaid assessments in the payment hierarchy upon the sale of units and holds purchasers jointly liable for any outstanding assessments owed by the seller. These provisions will apply to horizontal property regimes established on or after September 1, 2025, while existing regimes may adopt them by amending their master deeds.

Statutes affected:
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
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
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