33-1260

33-1260. Resale of units; information
required; applicability; definition

A. For condominiums with fewer than fifty units, a unit owner shall mail or deliver
to a purchaser within ten days after receipt of a written notice of a pending sale of the
unit, and for condominiums with fifty or more units, the association shall mail or
deliver to a purchaser within ten days after receipt of a written notice of a pending
sale that contains the name and address of the purchaser, all of the following:

1. A copy of the bylaws and the rules of the association.

2. A copy of the declaration.

3. A dated statement containing:

(a) 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.

(b) The amount of the common expense assessment for the unit and any unpaid common
expense assessment, special assessment or other assessment, fee or charge currently due
and payable from the selling unit owner.

(d) The total amount of money held by the association as reserves.

(e) If the statement is being furnished by the association, a statement as to
whether the records of the association reflect any alterations or improvements to the
unit that violate the declaration. The association is not obligated to provide
information regarding alterations or improvements that occurred more than six years
before the proposed sale. Nothing in this subdivision relieves the seller of a unit from
the obligation to disclose alterations or improvements to the unit that violate the
declaration, nor precludes the association from taking action against the purchaser of a
unit for violations that are apparent at the time of purchase and that are not reflected
in the association's records.

(f) If the statement is being furnished by the unit owner, a statement as to
whether the unit owner has any knowledge of any alterations or improvements to the unit
that violate the declaration.

(g) A statement of case names and case numbers for pending litigation with respect
to the unit filed by the association against the unit owner or filed by the unit owner
against the association. The unit owner or the association shall not be required to
disclose information concerning the pending litigation that would violate any applicable
rule of attorney-client privilege under Arizona law.

(h) A statement that provides "I hereby acknowledge that the declaration, bylaws
and rules of the association constitute a contract between the association and me (the
purchaser). By signing this statement, I acknowledge that I have read and understand the
association's contract with me (the purchaser). I also understand that as a matter of
Arizona law, if I fail to pay my association assessments, the association may foreclose
on my property." The statement shall also include a signature line for the purchaser and
shall be returned to the association within fourteen calendar days.

4. A copy of the current operating budget of the association.

5. A copy of the most recent annual financial report of the association. If the
report is more than ten pages, the association may provide a summary of the report in
lieu of the entire report.

6. A copy of the most recent reserve study of the association, if any.

B. A purchaser or seller who is damaged by the failure of the unit owner or the
association to disclose the information required by subsection A of this section 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.

C. The association may charge the unit owner a reasonable fee to compensate the
association for the costs incurred in the preparation of a statement furnished by the
association pursuant to this section. The association shall make available to any
interested party the amount of any fee established from time to time by the association.

D. A sale in which a public report is issued pursuant to sections 32-2183 and
32-2197.02 or a sale pursuant to section 32-2181.02 is exempt from this section.

E. This section does not apply to timeshare plans or associations that are subject
to chapter 20 of this title.

F. For the purposes of this section, unless the context otherwise requires, "unit
owner" means the seller of the condominium unit title and excludes 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 and also excludes 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.