Section: Arizona Condominium Act

1. Nothing in this chapter shall be construed to increase or decrease or otherwise affect any rights or powers granted to the commissioner of the department of real estate under title 32, chapter 20 with respect to the issuance of public reports.
2. The commissioner of the department of real estate shall require compliance with section 33-1215 and section 33-1219 in connection with the administration of the subdivision laws of this state under title 32, chapter 20, article 4. The commissioner shall not be required to administer or enforce any other provisions of this chapter.

Supporting download: 2026 Flags Guide (Expressly Permitted), PDF, 599kb

1. Notwithstanding any provision in the condominium documents, an association shall not prohibit the outdoor display of any of the following:
   1. The American flag or an official or replica of a flag of the uniformed services of the United States, including a division flag of the army, navy, marine corps, air force, space force or coast guard, by a unit owner on that unit owner’s property if the American flag or a uniformed services flag is displayed in a manner consistent with the federal flag code (P.L. 94-344; 90 Stat. 810; 4 United States Code sections 4 through 10).
   2. The POW/MIA flag.
   3. The Arizona state flag.
   4. An Arizona Indian nations flag.
   5. The Gadsden flag.
   6. A first responder flag.  A first responder flag may incorporate the design of one or two other first responder flags to form a combined flag.
   7. A blue star service flag or a gold star service flag.
   8. Any historic version of the American flag, including the Betsy Ross flag, without regard to how the stars and stripes are arranged on the flag.
   9. A flag from a nation that is allied with the United States as a major non-NATO ally and that was established on May 14, 1948.
2. The association shall adopt reasonable rules and regulations regarding the placement and manner of display of the flags prescribed by subsection A of this section. The association rules may regulate the location and size of flagpoles but shall not prohibit installing a flagpole.
3. Notwithstanding any provision in the condominium documents, an association shall not prohibit or charge a fee for the use of, the placement of or the indoor or outdoor display of a for sale, for rent or for lease sign and a sign rider by a unit owner on that owner’s property in any combination, including a sign that indicates the unit owner is offering the property for sale by owner. The size of a sign offering a property for sale, for rent or for lease shall be in conformance with the industry standard size sign, which shall not exceed eighteen by twenty-four inches, and the industry standard size sign rider, which shall not exceed six by twenty-four inches. This subsection applies only to a commercially produced sign and an association may prohibit using signs that are not commercially produced. With respect to real estate for sale, for rent or for lease in the condominium, an association shall not prohibit in any way other than as is specifically authorized by this section or otherwise regulate any of the following:
   1. Temporary open house signs or a unit owner’s for sale sign.  The association shall not require the use of particular signs indicating an open house or real property for sale and may not further regulate the use of temporary open house or for sale signs that are industry standard size and that are owned or used by the seller or the seller’s agent.
   2. Open house hours.  The association may not limit the hours for an open house for real estate that is for sale in the condominium, except that the association may prohibit an open house being held before 8:00 a.m. or after 6:00 p.m. and may prohibit open house signs on the common elements of the condominium.
   3. An owner’s or an owner’s agent’s for rent or for lease sign unless an association’s documents prohibit or restrict leasing of a unit or units.  An association shall not further regulate a for rent or for lease sign or require the use of a particular for rent or for lease sign other than the for rent or for lease sign shall not be any larger than the industry standard size sign of eighteen by twenty-four inches and on or in the unit owner’s property. If rental or leasing of a unit is allowed, the association may prohibit an open house for rental or leasing being held before 8:00 a.m. or after 6:00 p.m.
4. Notwithstanding any provision in the condominium documents, an association shall not prohibit door-to-door political activity, including solicitations of support or opposition regarding candidates or ballot issues, and shall not prohibit circulating political petitions, including candidate nomination petitions or petitions in support of or opposition to an initiative, referendum or recall or other political issue on property normally open to visitors within the association, except that an association may do the following:
   1. Restrict or prohibit door-to-door political activity regarding candidates or ballot issues from sunset to sunrise.
   2. Require the prominent display of an identification tag for each person engaged in the activity, along with the prominent identification of the candidate or ballot issue that is the subject of the support or opposition.
   3. Prohibit a person who is not accompanied by a unit owner or resident of the condominium from entering the condominium premises if the condominium restricts vehicular or pedestrian access.
5. Notwithstanding any provision in the condominium documents, an association shall not prohibit the indoor or outdoor display of a political sign by a unit owner by placement of a sign on that unit owner’s property, including any limited common elements for that unit that are doors, walls or patios or other limited common elements that touch the unit, other than the roof. An association may prohibit the display of political signs as follows:
   1. Earlier than seventy-one days before the day of a primary election.
   2. Later than fifteen days after the day of the general election.
   3. For a sign for a candidate in a primary election who does not advance to the general election, later than fifteen days after the primary election.
6. An association may regulate the size and number of political signs that may be placed in the common element ground, on a unit owner’s property or on a limited common element for that unit if the association’s regulation is not more restrictive than any applicable city, town or county ordinance that regulates the size and number of political signs on residential property. If the city, town or county in which the property is located does not regulate the size and number of political signs on residential property, the association shall not limit the number of political signs, except that the maximum aggregate total dimensions of all political signs on a unit owner’s property shall not exceed nine square feet.  An association shall not make any regulations regarding the number of candidates supported, the number of public officers supported or opposed in a recall or the number of propositions supported or opposed on a political sign.
7. An association shall not require political signs to be commercially produced or professionally manufactured or prohibit the utilization of both sides of a political sign.
8. Notwithstanding any provision in the condominium documents, an association may not prohibit or unreasonably restrict the indoor or outdoor display of an association-specific political sign by a unit owner by placement of a sign on that unit owner’s property, including any limited common elements for that unit that are doors, walls or patios or other limited common elements that touch the unit, other than the roof. An association may adopt reasonable rules regarding the placement, location and manner of display of association-specific political signs, except an association shall not do any of the following:
   1. Prohibit the display of association-specific political signs between the date that the association provides written or absentee ballots to unit owners and three days after the condominium election.
   2. Limit the number of association-specific political signs, except that the association may limit the aggregate total dimensions of all association-specific political signs on a unit owner’s property to not more than nine square feet.
   3. Require association-specific political signs to be commercially produced or professionally manufactured or prohibit using both sides of the sign.
   4. Regulate the number of candidates supported or opposed, the number of board members supported or opposed in a recall or the number of ballot measures supported or opposed on an association-specific political sign.
   5. Make any other regulations regarding the content of an association-specific political sign, except that the association may prohibit using profanity and discriminatory text, images or content based on race, color, religion, sex, familial status or national origin as prescribed by federal or state fair housing laws.
9. Notwithstanding any provision in the condominium documents, an association may not prohibit or unreasonably restrict a unit owner’s ability to peacefully assemble and use common elements of the condominium if done in compliance with reasonable restrictions for the use of that property adopted by the board of directors. An individual unit owner or group of unit owners may assemble to discuss matters related to the condominium, including board of director elections or recalls, potential or actual ballot issues or revisions to the condominium documents, property maintenance or safety issues or any other condominium matters.  A unit owner may invite one political candidate or one non-unit owner guest to speak to an assembly of unit owners about matters related to the condominium. The association shall not prohibit a unit owner from posting notices regarding those assemblies of unit owners on bulletin boards located on the common elements or within common element facilities.  An assembly of unit owners prescribed by this subsection does not constitute an official unit owners’ meeting unless the meeting is noticed and convened as prescribed in the condominium documents and this chapter.
10. An association or managing agent that violates subsection C of this section forfeits and extinguishes the lien rights authorized under section 33-1256 against that unit for a period of six consecutive months after the date of the violation.
11. This section does not apply to timeshare plans or associations that are subject to chapter 20 of this title.
12. For the purposes of this section:
    1. “Association-specific political sign” means a sign that supports or opposes a candidate for the board of directors, the recall of a board member or a condominium ballot measure that requires a vote of the association unit owners.
    2. “Betsy Ross flag” means an historic flag of the United States that consists of thirteen stripes alternating between red and white stripes and thirteen five-pointed white stars arranged in a circle against a blue background.
    3. “Division flag” means a flag that is officially authorized by the United States army, navy, marine corps, air force, space force or coast guard to represent a division level unit, that bears the unit’s approved insignia, designation or nickname and that is used for ceremonial, identification or representational purposes.
    4. “First responder flag” means a flag that recognizes and honors the services of any of the following:
       1. Law enforcement and that is limited to the colors blue, black and white, the words “law enforcement”, “police”, “officers”, “first responder”, “honor our”, “support our” and “department” and the symbol of a generic police shield in a crest or star shape.
       2. Fire departments and that is limited to the colors red, gold, black and white, the words “fire”, “fighters”, “F”, “D”, “FD”, “first responder”, “department”, “honor our” and “support our” and the symbol of a generic Maltese cross.
       3. Paramedics or emergency medical technicians and that is limited to the colors blue, black and white, the words “first responder”, “paramedic”, “emergency medical”, “service”, “technician”, “honor our” and “support our” and the symbol of a generic star of life.
    5. “Political sign” means a sign that attempts to influence the outcome of an election, including supporting or opposing the recall of a public officer or supporting or opposing the circulation of a petition for a ballot measure, question or proposition or the recall of a public officer.

1. A unit owner may use the unit owner’s unit as a rental property unless prohibited in the declaration and shall use it in accordance with the declaration’s rental time period restrictions.
2. A unit owner may designate in writing a third party to act as the unit owner’s agent with respect to all association matters relating to the rental unit, except for voting in association elections and serving on the board of directors.  The unit owner shall sign the written designation and shall provide a copy of the written designation to the association. On delivery of the written designation, the association is authorized to conduct all association business relating to the unit owner’s rental unit through the designated agent. Any notice given by the association to a unit owner’s designated agent on any matter relating to the unit owner’s rental unit constitutes notice to the unit owner.
3. Notwithstanding any provision in the condominium documents, on rental of a unit an association shall not require a unit owner or a unit owner’s agent to disclose any information regarding a tenant other than the name and contact information for any adults occupying the unit, the time period of the lease, including the beginning and ending dates of the tenancy, and a description and the license plate numbers of the tenants’ vehicles.  If the condominium is an age restricted condominium, the unit owner, the unit owner’s agent or the tenant shall show a government issued identification that bears a photograph and that confirms that the tenant meets the condominium’s age restrictions or requirements.
4. On request of an association or its managing agent for the disclosures prescribed in subsection C of this section, the managing agent or, if there is no managing agent, the association may charge a fee of not more than twenty-five dollars, which shall be paid within fifteen days after the postmarked request.  The fee may be charged for each new tenancy for that unit but may not be charged for a renewal of a lease.  Except for the fee permitted by this subsection and fees related to the use of recreational facilities, the association or its managing agent shall not assess, levy or charge a fee or fine or otherwise impose a requirement on a unit owner’s rental unit any differently than on an owner-occupied unit in the association.
5. Notwithstanding any provision in the condominium documents, the association is prohibited from doing any of the following:
   1. Requiring a unit owner to provide the association with a copy of the tenant’s rental application, credit report, lease agreement or rental contract or other personal information except as prescribed by this section. This paragraph does not prohibit the association from acquiring a credit report on a person in an attempt to collect a debt.
   2. Requiring the tenant to sign a waiver or other document limiting the tenant’s due process rights as a condition of the tenant’s occupancy of the rental unit.
   3. Prohibiting or otherwise restricting a unit owner from serving on the board of directors based on the owner’s not being an occupant of the unit.
   4. Imposing on a unit owner or managing agent any fee, assessment, penalty or other charge in an amount greater than fifteen dollars for incomplete or late information regarding the information requested pursuant to subsection C of this section
6. Any attempt by an association to exceed the fee, assessment, penalty or other charge authorized by subsection D or E of this section voids the fee, assessment, penalty or other charge authorized by subsection D or E of this section.  This section does not prevent an association from complying with the housing for older persons act of 1995 (P.L. 104–76; 109 Stat. 787).
7. An owner may use a crime free addendum as part of a lease agreement.  This section does not prohibit the owner’s use of a crime free addendum.
8. This section does not prohibit and an association may lawfully enforce a provision in the condominium documents that restricts the residency of persons who are required to be registered pursuant to section 13-3821 and who are classified as level two or level three offenders.
9. An owner of rental property shall abate criminal activity as authorized in section 12-991.

1. For condominiums with fewer than fifty units, a unit owner shall electronically transmit or deliver to a purchaser or a purchaser’s designated agent the information required by this subsection within ten days after acceptance of the purchaser’s offer to purchase. For condominiums with fifty or more units, the unit owner shall provide a written notice to the association of the unit owner’s acceptance of the purchaser’s offer to purchase that contains the name, email address and mailing address of the purchaser or the purchaser’s designated agent. The association shall electronically transmit or deliver to the purchaser or the purchaser’s designated agent within ten days after receipt of the written notice of a pending purchase offer all of the following in either paper or electronic format:
   1. A copy of the current bylaws and the current rules of the association.
   2. A copy of the current recorded declaration and final plat or an electronic copy of the final plat, if available.
   3. A copy of the board of directors-approved minutes from the previous three open meetings of the board of directors.
   4. A dated statement containing:
      1. The telephone number and address of a principal contact for the association, which may be an association manager, an association management company, an officer of the association or any other person designated by the board of directors.
      2. The amount of and payment schedule for the annual common expense assessment for the unit and the remaining installments and payment schedules on any approved and assessed special assessment, if any. 
      3. The amount and purpose of any special assessment approved by the board of directors but not yet assessed or any special assessment submitted by the board of directors for unit owner approval within the previous four months, if any.
      4. Any known material deficiency or condition of the limited common elements associated with the unit or common elements known by the association for which the purchaser will be liable for the directly assessed repair costs within six months of the purchase, if any.
      5. The current amount of any unpaid common expense assessment lien or judgment lien on the unit due to the association pursuant to section 33-1256 and any lis pendens recorded by the association against the unit.
      6. The amount and purpose of any title transfer fee or other similar fee, however denominated, that is authorized in the declaration.
      7. A copy of the association’s most recent income and expenses financial statement for all operating and reserve accounts, as applicable.
      8. Any outstanding and unresolved violation of the association’s condominium documents that was cited against the unit, if any.
   5. A copy of the current operating budget of the association.
   6. A copy of the most recent annual audit, review or compilation report of the association prescribed by section 33-1243, subsection j. If the report is more than ten pages, the association may provide a summary of the report in lieu of the entire report.
   7. A copy of the most recent reserve study of the association, if any. If the report is more than ten pages, the association may provide a summary of the report in lieu of the entire report.
   8. A statement summarizing any pending lawsuits, except those relating to the collection of assessments owed by unit owners other than the selling unit owner, in which the association is a named party, including the amount of any money claimed.
   9. A statement as to whether a portion of the unit is covered by insurance maintained by the association and a copy of all insurance certificates identifying the coverage limits and deductibles maintained by the association pursuant to section 33-1253.
   10. A statement as to whether the condominium is under declarant control and the approximate percentage of units identified on the recorded plat that are currently owned by the declarant.
   11. A statement identifying whether any corporation or limited liability company owns and leases thirty-five percent or more of the units.
   12. A statement that, for any report provided in summary format pursuant to this subsection, the purchaser may request to view the entire report from the association directly, and the association shall provide access to that report within ten days after a written request.
   13. A statement to be signed by the purchaser at the close of escrow that provides “I hereby acknowledge that with the purchase of this home or property, I will be contractually bound to the valid covenants, conditions and restrictions of the recorded declaration, and will be contractually bound to pay all common expense assessments applied to my home or property as authorized in the declaration and title 33, chapter 9 or 16, Arizona revised statutes, as applicable. If I fail to pay common expense assessments, I may be subject to collection activity by the Association up to and including foreclosure action, without the equity protection of the homestead act pursuant to title 33, chapter 8, Arizona revised statutes.”
   14. If the unit is governed by multiple associations, a statement identifying that the unit is subject to each association’s disclosure report and corresponding resale disclosure fee authorized under subsection d of this section.
2. All information that is provided under subsection a of this section shall be based on the good faith reliance on association records or information, without the need for independent investigation or validation.
3. A purchaser or seller who is damaged by the unit owner or the association knowingly or recklessly failing to disclose the information required by subsection A of this section or knowingly or recklessly providing materially false or misleading statements in the disclosure may pursue all remedies at law or in equity against the unit owner or the association, whichever failed to comply with subsection A of this section, including the recovery of reasonable attorney fees as awarded by the court.
4. The association may charge the unit owner a fee of not more than an aggregate of $400 to compensate the association for the costs incurred in the preparation and delivery of a REPORT or other documents furnished by the association pursuant to this section for purposes of resale disclosure, lien estoppel and any other services related to the transfer or use of the property. In addition, the association may charge a rush fee of not more than $100 if the rush services are required to be performed within seventy-two hours after the request for rush services. The unit owner may request the association to update the report if thirty days or more have passed since the date of the original disclosure report. The association may charge a document update fee of not more than $50. The association shall make available to any interested party the amount of any fee established from time to time by the association. The association may charge the same fee without regard to whether the association is furnishing the statement or other documents in paper or electronic format.
5. The fees prescribed by this section shall be collected not earlier than at the close of escrow and may only be charged once to a unit owner for that transaction between the parties. An association shall not charge or collect a fee relating to services for resale disclosure, lien estoppel and any other services related to the transfer or use of a property except as specifically authorized in this section. An association that charges or collects a fee in violation of this section is subject to a civil penalty of not more than $1,200.
6. This section applies to a managing agent for an association that is acting on behalf of the association.
7. The following are exempt from this section:
   1. A sale in which a public report is issued pursuant to section 32-2183 or 32-2197.02.
   2. A sale pursuant to section 32-2181.02.
   3. A conveyance by recorded deed that bears an exemption listed in section 11-1134, subsection B, paragraph 3 or 7. On recordation of the deed, the purchaser shall provide the association with the changes in ownership, including the unit owner’s name, billing address and phone number. Failure to provide the information shall not prevent the unit owner from qualifying for the exemption pursuant to this section.
8. This section does not apply to timeshare plans or associations that are subject to chapter 20 of this title.
9. For the purposes of this section, unless the context otherwise requires, “unit owner”:
   1. Means the seller of the condominium unit title. 
   2. Does not include:
      1.  Any real estate salesperson or real estate broker who is licensed under title 32, chapter 20 and who is acting as a salesperson or broker.
      2.  Any escrow agent who is licensed under title 6, chapter 7 and who is acting as an escrow agent. 
      3.  A trustee of a deed of trust who is selling the property in a trustee’s sale pursuant to chapter 6.1 of this title.

With respect to a third person dealing with the association in the association’s capacity as a trustee, the existence of trust powers and their proper exercise by the association may be assumed without inquiry. A third person is not bound to inquire whether the association has power to act as trustee or is properly exercising trust powers. A third person, without actual knowledge that the association is exceeding or improperly exercising its powers, is fully protected in dealing with the association as if it possessed and properly exercised the powers it purports to exercise. A third person is not bound to assure the proper application of trust assets paid or delivered to the association in its capacity as trustee.

1. Except as provided in subsection B of this section, all financial and other records of the association shall be made reasonably available for examination by any member or any person designated by the member in writing as the member’s representative.  The association shall not charge a member or any person designated by the member in writing for making material available for review.  The association shall have ten business days to fulfill a request for examination.  On request for purchase of copies of records by any member or any person designated by the member in writing as the member’s representative, the association shall have ten business days to provide copies of the requested records.  An association may charge a fee for making copies of not more than fifteen cents per page.
2. Books and records kept by or on behalf of the association and the board may be withheld from disclosure to the extent that the portion withheld relates to any of the following:
   1. Privileged communication between an attorney for the association and the association.
   2. Pending litigation.
   3. Meeting minutes or other records of a session of a board meeting that is not required to be open to all members pursuant to section 33-1248.
   4. Personal, health or financial records of an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association, including records of the association directly related to the personal, health or financial information about an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association.
   5. Records relating to the job performance of, compensation of, health records of or specific complaints against an individual employee of the association or an individual employee of a contractor of the association who works under the direction of the association.
3. The association shall not be required to disclose financial and other records of the association if disclosure would violate any state or federal law.
4. This section does not apply to an association for a timeshare plan that is subject to chapter 20 of this title.

1. Except as provided in subsection B of this section, a legally recorded judgment for money against the association is not a lien on the common elements but is a lien in favor of the judgment lienholder against all of the units in the condominium at the time the judgment was entered.  Other property of a unit owner is not subject to the claims of creditors of the association.
2. If the association has granted a mortgage, deed of trust or security interest in the common elements to a creditor of the association pursuant to section 33-1252, the holder of that security interest must exercise its right against the common elements before its judgment lien on any unit may be enforced.
3. Whether perfected before or after the creation of the condominium, if a lien other than a deed of trust or mortgage becomes effective against two or more units, the unit owner of an affected unit may pay to the lienholder the amount of the lien attributable to his unit, and the lienholder, on receipt of payment, shall promptly deliver a release of the lien covering that unit. The amount of the payment shall be proportionate to the ratio which that unit owner’s common expense liability bears to the common expense liabilities of all unit owners whose units are subject to the lien. After payment, the association shall not assess or have a lien against that unit owner’s unit for any portion of the common expenses incurred in connection with that lien.
4. A judgment against the association shall be indexed in the name of the condominium and the association and shall include the legal description of the unit subject to the lien. When so indexed, the judgment is notice of the lien against the units.

1. The association has a common expense lien on a unit for any assessment levied against that unit from the time the assessment becomes due. The association’s common expense lien may be foreclosed in the same manner as a mortgage on real estate but may be foreclosed only if the unit owner has been and remains delinquent in the payment of any assessment or portion of the assessment for a period of eighteen months or in the amount of $10,000 or more, whichever occurs first, as determined on the date the action is filed. For any special assessment with an initial value of $10,000 or more, only the eighteen-month delinquency threshold applies. The association board of directors shall exercise reasonable efforts to communicate with the unit owner and offer a reasonable payment plan before filing a foreclosure action. If an assessment is payable in installments, the full amount of the assessment is a common expense lien from the time the first installment of the assessment becomes due.
2. Notwithstanding any provision in the condominium documents, unit owner expenses are not enforceable as common expense liens under this section. The association has a judgment lien for unit owner expenses after the entry of a judgment in a civil suit for those unit owner expenses from a court of competent jurisdiction and the recording of that judgment in the office of the county recorder as otherwise provided by law. The association’s judgment lien for unit owner expenses may not be foreclosed and is effective only on conveyance of any interest in the real property.
3. A common expense lien under this section is prior to all other liens, interests and encumbrances on a unit except:

1. Liens and encumbrances recorded before the recordation of the declaration.
2. A recorded first mortgage on the unit, a seller’s interest in a first contract for sale pursuant to chapter 6, article 3 of this title on the unit recorded before the common expense lien arising pursuant to subsection A of this section or a recorded first deed of trust on the unit.
3. Liens for real estate taxes and other governmental assessments or charges against the unit.

4. Subsection C of this section does not affect the priority of mechanics’ or materialmen’s liens.  The common expense lien under this section is not subject to chapter 8 of this title.
5. Unless the declaration otherwise provides, if two or more associations have common expense liens created at any time on the same real estate, those common expense liens have equal priority.
6. Recording the declaration constitutes record notice and perfection of the common expense lien.  Further recordation of any claim of common expense lien under this section is not required.
7. A common expense lien is extinguished unless proceedings to enforce the common expense lien are instituted within six years after the full amount of the assessments becomes due. The notice shall be in bold-faced type or all capital letters and shall include the contact information for the person that the unit owner may contact to discuss payment. The notice shall be sent by certified mail, return receipt requested, and may be included within other correspondence sent to the unit owner regarding the unit owner’s delinquent account.
8. This section does not prohibit:

1. Actions to recover sums for which subsection A or B of this section creates a lien.
2. An association from taking a deed in lieu of foreclosure.

9. A judgment or decree in any action brought under this section may include costs and reasonable attorney fees for the prevailing party.
10. The association on written request shall furnish to a lienholder, escrow agent, unit owner or person designated by a unit owner a statement setting forth the amount of any unpaid liens prescribed by subsection A or B of this section against the unit. The statement shall be furnished within ten days after receipt of the request.  The statement is binding on the association if the statement is requested by an escrow agency that is licensed pursuant to title 6, chapter 7. Failure to provide the statement to the escrow agent within the time provided for in this subsection extinguishes any lien for any unpaid assessment then due.
11. Notwithstanding any provision in the condominium documents or in any contract between the association and a management company or any other agent of the association, including any agreement or contract with any attorney, unless the unit owner directs otherwise, all payments received on a unit owner’s account shall be applied first to any unpaid assessments, due but not delinquent assessments, unpaid charges for late payment of those assessments if authorized in the declaration, unpaid reasonable collection fees and costs incurred or applied by the association and unpaid attorney fees and costs incurred with respect to those assessments if awarded by a court, in that order, with any remaining amounts applied next to other unpaid fees, charges and monetary penalties or interest and late charges on any of those amounts.
12. For a delinquent account for unpaid common expense liens, the association shall provide the following written notice to the unit owner at the unit owner’s address as provided to the association at least thirty days before authorizing an attorney, or a collection agency that is not acting as the association’s managing agent, to begin collection activity on behalf of the association:
    • Your account is delinquent. If you do not bring your account current or make arrangements that are approved by the association to bring your account current within thirty days after the date of this notice, your account will be turned over for further collection proceedings. Such collection proceedings could include bringing a foreclosure action against your property.
    • The notice shall be in boldfaced type or all capital letters and shall include the contact information for the person that the unit owner may contact to discuss payment. The notice shall be sent by certified mail, return receipt requested, and may be included within other correspondence sent to the unit owner regarding the unit owner’s delinquent account.
13. Except for condominiums that have fewer than fifty units and that do not contract with a third party to perform management services on behalf of the association, the association shall provide a statement of account in lieu of a periodic payment book to the unit owner with the same frequency that assessments are provided for in the declaration. The statement of account shall include the current account balance due and the immediately preceding ledger history. If the association offers the statement of account by electronic means, a unit owner may opt to receive the statement electronically.  The association may stop providing any further statements of account to a unit owner if collection activity begins by an attorney, or a collection agency that is not acting as the association’s managing agent, regarding that unit owner’s unpaid account. After collection activity begins, a unit owner may request statements of account by written request to the attorney or collection agency. Any request by a unit owner for a statement of account after collection activity begins by an attorney or a collection agency that is not acting as the association’s managing agent must be fulfilled by the attorney or the collection agency responsible for the collection.  The statement of account provided by the attorney or collection agency responsible for the collection shall include all amounts claimed to be owing to resolve the delinquency through the date set forth in the statement, including attorney fees and costs, regardless of whether such amounts have been reduced to judgment.
14. An agent for the association may collect on behalf of the association directly from a unit owner the assessments and other amounts owed by cash or check, by mailed or hand-delivered bank drafts, checks, cashier’s checks or money orders, by credit, charge or debit card or by other electronic means.  For any form of payment other than for cash or for mailed or hand-delivered bank drafts, checks, cashier’s checks or money orders, the agent may charge a convenience fee to the unit owner that is approximately the amount charged to the agent by a third-party service provider. The association may not transfer ownership or control of debt for common expense liens or unit owner expenses.
15. The association may not transfer ownership or control of debt for common expense liens or unit owner expenses.
16. This section does not apply to timeshare plans or associations that are subject to chapter 20 of this title.

1. Until the association makes a common expense assessment, the declarant shall pay all common expenses. After any assessment has been made by the association, assessments shall be made at least annually, based on a budget adopted at least annually by the association.
2. Except for assessments under subsections C, D, E and F of this section, all common expenses shall be assessed against all the units in accordance with the allocations set forth in the declaration pursuant to section 33-1217, subsection A.  Any past due common expense assessment or installment bears interest at the rate established by the board subject to the condominium documents.
3. Unless otherwise provided for in the declaration all of the following apply:
   1. Any common expense associated with the maintenance, repair or replacement of a limited common element shall be equally assessed against the units to which the limited common element is assigned.
   2. Any common expense or portion of a common expense benefitting fewer than all of the units shall be assessed exclusively against the units benefitted.
4. Assessments to pay a judgment against the association may be made only against the units in the condominium at the time the judgment was entered, in proportion to their common expense liabilities.
5. If any common expense is caused by the misconduct of any unit owner, the association may assess that expense exclusively against that unit.
6. If the declaration so provides, the common expense assessment for any unit on which construction has not been substantially completed may be an amount which is not less than twenty-five per cent of the common expense assessment for units which have been substantially completed.  However, this reduced common expense assessment shall not be permitted, unless the declarant is obligated under the declaration to pay to the association any deficiency in monies due to the declarant having paid a reduced common assessment and necessary for the association to be able to timely pay all common expenses.
7. If common expense liabilities are reallocated, common expense assessments and any installment on the assessments not yet due shall be recalculated in accordance with the reallocated common expense liabilities.
8. This section does not apply to timeshare plans or associations that are subject to chapter 20 of this title.

Unless otherwise provided in the declaration, any surplus monies of the association remaining after payment of or provision for common expenses and any prepayment of reserves shall be paid to the unit owners in proportion to their common expense liabilities or credited to them to reduce their future common expense assessments.

1. Commencing not later than the time of the first conveyance of a unit to a person other than a declarant, the association shall maintain, to the extent reasonably available, both:
   1. Property insurance on the common elements and, if required by the condominium documents, the units, insuring against all risks of direct physical loss commonly insured against. The total amount of insurance after application of any deductibles shall be not less than eighty percent of the actual cash value of the insured property at the time the insurance is purchased and at each renewal date, exclusive of land, excavations, foundations and other items normally excluded from property policies.
   2. Liability insurance in an amount determined by the board of directors or the association but not less than any amount specified in the declaration, covering all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership or maintenance of the common elements.
2. To the extent available, the insurance maintained under subsection A, paragraph 1 of this section includes the units or any portion of those units but need not include improvements and betterments installed by unit owners or the personal property of unit owners.
3. If the insurance described in subsection A of this section is not reasonably available, the association promptly shall cause notice of that fact to be hand-delivered or sent prepaid by United States mail to all unit owners. The declaration may require the association to carry any other insurance, and the association in any event may carry any other insurance it deems appropriate to protect the association or the unit owners.
4. Insurance policies carried pursuant to subsection A of this section shall provide the following:
   1. Each unit owner is an insured person under the policy with respect to liability or property damage arising out of the unit owner’s interest in the common elements, the unit, if required by the condominium documents, or membership in the association.
   2. The insurer waives its right to subrogation under the policy against any unit owner or members of the unit owner’s household.
   3. No act or omission by any unit owner, unless acting within the scope of the unit owner’s authority on behalf of the association, will void the policy or be a condition to recovery under the policy.
   4. If, at the time of a loss under the policy, there is other insurance in the name of a unit owner covering the same property covered by the policy, the association’s policy provides primary insurance.
   5. As an insured person under the association’s policy with respect to the unit owner’s interest in the common elements, the unit owner’s individual unit or membership in the association, each unit owner has the right to report a loss under the association’s property insurance policy. Each unit owner shall additionally report the loss to the association.
5. Prior to reporting a loss under the association’s master property insurance policy, a unit owner shall report the loss to the association and give the association ten business days to provide the unit owner with a written decision whether the association will be reporting a claim to the master policy.  If the association decides not to report a claim under the master policy, the association shall provide the reason for the decision in the written decision.
6. Notwithstanding subsection D, paragraph 5 of this section, any loss covered by the property policy under subsection A, paragraph 1 and subsection B of this section shall be adjusted with the association, but the insurance proceeds for that loss are payable to any insurance trustee designated for that purpose, or otherwise to the association, and not to any mortgagee or beneficiary under a deed of trust. The insurance trustee or the association shall hold any insurance proceeds in trust for unit owners and lienholders as their interests may appear. Subject to subsection H of this section, the proceeds shall be disbursed first for the repair or restoration of the damaged property, and unit owners and lienholders are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the property has been completely repaired or restored, or the condominium is terminated.
7. An insurance policy issued to the association does not prevent a unit owner from obtaining insurance for the unit owner’s own benefit.
8. An insurer that has issued an insurance policy under this section shall issue certificates or memoranda of insurance to the association and, on written request, to any unit owner, mortgagee or beneficiary under a deed of trust. The insurer issuing the policy shall not cancel or refuse to renew it until thirty days after notice of the proposed cancellation or nonrenewal has been mailed to the association, each unit owner and each mortgagee or beneficiary under a deed of trust to whom a certificate or memorandum of insurance has been issued at their respective last known addresses.
9. Any portion of the condominium for which insurance is required under this section and that is damaged or destroyed shall be repaired or replaced promptly by the association unless any of the following apply:
   1. The condominium is terminated.
   2. Repair or replacement would be illegal under any state or local health or safety statute or ordinance.
   3. Eighty percent of the unit owners, including every owner of a unit or allocated limited common element that will not be rebuilt, vote not to rebuild.
10. The cost of repair or replacement in excess of insurance proceeds and reserves is a common expense. If the entire condominium is not repaired or replaced:
    1. The insurance proceeds attributable to the damaged common elements in proportion to their common element interests or as otherwise provided in the declaration shall be used to restore the damaged area to a condition compatible with the remainder of the condominium.
    2. The insurance proceeds attributable to units and allocated limited common elements that are not rebuilt shall be distributed in proportion to their common element interests or as otherwise provided in the declaration to the owners of those units and the owners of the units to which those limited common elements were allocated, or to lienholders as their interests may appear.
    3. The remainder of the proceeds shall be distributed to all the unit owners or lienholders as their interests may appear in proportion to the common element interests of all the units.
11. The association shall inform each unit owner annually in writing of both:
    1. The unit owner’s responsibility for the association’s insurance deductibles for all property and liability coverage.
    2. The amount of each deductible.
12. If the unit owners vote not to rebuild any unit, that unit’s allocated interests are automatically reallocated on the vote as if the unit had been condemned under section 33-1206, subsection A, and the association promptly shall prepare, execute and record an amendment to the declaration reflecting the reallocations.
13. Notwithstanding subsections H, I and L of this section, section 33-1228 governs the distribution of insurance proceeds if the condominium is terminated.
14. If all units are restricted to nonresidential use, the provisions of a subsection or paragraph of this section do not apply if the declaration, articles of incorporation or amended bylaws contain provisions inconsistent with such subsection or paragraph.
15. This section does not prohibit the declaration from requiring additional or greater amounts of insurance coverage or does not prohibit the board of directors from acquiring additional or greater amounts of coverage as it reasonably deems appropriate.

1. Real property that is held as an asset of the association and that is not held as a common element of the condominium may be conveyed by the association if persons entitled to cast at least eighty per cent of the votes in the association, or any larger percentage the declaration specifies, agree to the conveyance in the manner prescribed in subsection B.
2. An agreement to convey real property that is held as an asset of the association and that is not held as a common element of the condominium shall be evidenced by the execution of an agreement, or ratifications of the agreement, in the same manner as a deed and by the requisite number of unit owners.  The agreement shall specify a date after which the agreement will be void unless previously recorded.  The agreement and all ratifications of the agreement shall be recorded in each county in which a portion of the condominium is situated and are effective only on recordation.
3. The association, on behalf of the unit owners, may contract to convey the real property but the contract is not enforceable against the association until approved pursuant to subsections A and B. Thereafter, the association has all powers necessary and appropriate to effect the conveyance, including the power to execute deeds or other instruments.
4. Except as permitted in this chapter, any purported conveyance or other voluntary transfer of real property is void.
5. A conveyance of real property pursuant to this section does not affect the priority or validity of preexisting encumbrances.
6. Property an association acquires in an assessment lien foreclosure action shall not be considered real property held as an asset of the association for the purpose of this section.