ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature Second Regular Session
	House: RA DPA/SE 5-1-0-0 | 3^rd Read 50-7-2-0-1 Senate: FICO DP 6-0-1-0 | 3^rd Read 28-0-2-0 Final Pass: 59-0-1-0

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HB 2119: homeowner's associations; fees; related parties

NOW: real property

Sponsor: Representative Hendrix, LD 14

Transmitted to the Governor

Overview

Prohibits an association from charging a fee related to transferring property between specified parties.

History

Current statute stipulates that a provision in a covenant, declaration or any other document relating to real property in this state is not binding or enforceable against the real property or any subsequent owner, purchaser or lienholder if it claims to:

1) bind successors in title to the specified real property; and

2) obligate the transferor or transferee of all or part of the property to pay a fee or other charge to a declarant or third person upon transfer of an interest in the property (A.R.S. § 33-442).

An association is defined as a nonprofit organization qualified under federal code or a nonprofit mandatory membership organization created pursuant to applicable laws, covenants or declarations and is composed of the owners of condominiums, cooperatives, homes or manufactured homes or other interest in real property (A.R.S. § 33-442).

Provisions

1. Prohibits an association from charging a fee related to statutory fees on real property between parties when the transfer of title has nominal or no consideration as outlined in statute except service fees for the administration of association records authorized in a managing agent contract with the association. (Sec.1)

2. Makes a conforming change. (Sec. 1)

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6.                   HB 2119

7. Initials DC/SJ      Page 0 Transmitted

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