Substitute House Bill No. 5265 introduces new provisions aimed at enhancing financial oversight within common interest communities. It allows a group of unit owners, representing at least twenty percent of the votes in the association, to petition the Superior Court for an order to require the association to hire an independent third party to conduct an audit of its financial records. To initiate this process, the petitioning group must provide written certification of their belief in the need for an audit, obtain a signed opinion from a certified public accountant indicating potential financial fraud or misuse of funds, and confirm that no audit has been conducted in the past twelve months. The costs associated with the audit will be borne by the petitioning unit owners, and the association may charge a reasonable fee for providing financial records to the auditor.

The bill also revises the disclosure requirements for properties in common interest communities by repealing and replacing certain sections of existing law. It adds inquiries regarding property ownership claims, easements, flood hazard areas, and land use restrictions. Notably, it requires properties in larger common interest communities to obtain a "Resale Certificate" and encourages buyers to consult various professionals if such a certificate is unavailable. The effective date for these changes is set for October 1, 2026, and the bill is not expected to have any fiscal impact on the state or municipalities.