HB2861 is a bill that proposes amendments to the condominium statutes in Arizona, specifically relating to the termination of condominiums. The bill clarifies that the respective interests of unit owners at termination include their pro rata share of monies in the reserve fund and operating account immediately before termination. It also changes the additional amount for relocation costs from 5% to 10% of the total amount, but only for owner-occupied units, and includes all closing costs of the sales transaction, such as title insurance if requested by the unit owner.

The bill introduces new requirements for appraising a unit to determine its fair market value, which must be conducted by a state-licensed or certified real estate appraiser and include at least three comparable sales. The buyer must pay for the appraisal, but it is optional for the unit owner. The fair market value cannot be reduced by any special assessments or other charges imposed by the association in the two years preceding termination. If there is a disagreement on the value, the unit owner may submit the issue to arbitration. The bill also requires annual notices to unit owners about potential termination and the number of units owned by each owner. It intends to apply these requirements retroactively to all condominiums in Arizona, regardless of when they were established.

Statutes affected:
Introduced Version: 33-1228, 33-1260, 33-1262, 33-1256, 32-2183, 32-2197.02, 32-2181.02, 11-1134
House Engrossed Version: 33-1228, 33-1260, 33-1262, 33-1256, 32-2183, 32-2197.02, 32-2181.02, 11-1134