The proposed bill would significantly update the current statutes governing disclosure requirements for condominium unit owners' associations (COAs) and planned community associations (HOAs). Under current law, unit owners or members are required to provide a disclosure packet within 10 days of receiving a notice of a pending sale. The bill introduces requirements for electronic transmission of the disclosure packet, mandates the inclusion of additional documents such as board-approved minutes from the last three meetings, a statement on declarant control, and a summary of pending lawsuits. It also changes the timing for providing the disclosure packet to be upon acceptance of the purchaser's offer. Additionally, the bill outlines new responsibilities for association managers during capital or reserve account projects, modifies the contents of the disclosure packet to include more detailed financial information, and allows for a document update fee. It establishes that all information must be based on good faith reliance on COA or HOA records, and provides remedies for purchasers or sellers in cases of failure to disclose required information. The bill also clarifies the responsibilities of members and associations, modifies the fee structure for disclosure reports, and sets penalties for violations, ultimately aiming to enhance transparency and protect the interests of purchasers in real estate transactions.

Statutes affected:
Introduced Version: 33-440, 33-1260, 33-1802, 33-1803, 33-1806, 33-1202, 33-2202, 33-1256, 33-442, 33-1243, 33-1253, 32-2183, 32-2197.02, 32-2181.02, 11-1134, 33-1801, 32-2199.01
House Engrossed Version: 33-1260, 33-1806, 33-1256, 33-442, 33-1243, 33-1253, 32-2183, 32-2197.02, 32-2181.02, 11-1134