If you are a condominium owner, you may have heard of the Arizona Condominium Termination Law. This controversial statute allows investors who acquire 80% of the condominiums in a property to force the owners of the remaining 20% to sell their properties. Even worse, the value of their property will be up to the judgment of an independent appraiser, and the affected condominium owner has very short notice that they are about to be selling their home. If you just did a double take, you are not alone. Many condo owners have been caught off guard by this law.
In 2015, the Arizona legislature enacted a provision which required the buyer to pay for the seller’s moving costs at a rate of 5% of the purchase price of the property. Fast forward to 2018 when legislators added more protections such as the right to go to arbitration when different appraisals were more than 5% apart. However, the arbitration provision lacked the necessary guidelines to be effective.
This year, House Bill 2687 was signed into law which requires investors to prove their 80% ownership in a Home Owners Association (HOA) Meeting before .There are also measures that increase disclosure requirements for investors regarding the amount paid for the units and certain financial deals that may have been struck with owners. Additionally, parties now have to observe the National Arbitration Association guidelines. Further, there are now added provisions including dividing accounts and funds with owners proportionally and paying owners 5% to relocate regardless of whether or not they live in the condo.
Attorney Laura B. Bramnick is an experienced Arizona real estate attorney who can help you evaluate your condominium options and contract, and advise you of any laws or rules which apply to your transaction. If you are seeking an exceptional, client-driven real estate lawyer in Scottsdale, Phoenix, Sedona and throughout the state of Arizona, contact Laura B. Bramnick to schedule your consultation.