Arizona Revised Statutes Title 33 – Property …

1 Arizona Revised Statutes Title 33 Property chapter 9 - Condominiums January 2005 2 chapter 9 CONDOMINIUMS ARTICLE 1. GENERAL PROVISIONS Section 33-1201. Applicability 33-1202. Definitions 33-1203. Variation 33-1204. Separate titles and taxation 33-1205. Applicability of local ordinances, rules and building codes 33-1206. Eminent domain 33-1207. Severability ARTICLE 2. CREATION, ALTERATION AND TERMINATION OF CONDOMINIUMS Section 33-1211.

2 Creation of condominium 33-1212. Unit boundaries 33-1213. Construction and validity of declaration and bylaws 33-1214. Description of units 33-1215. Contents of declaration 33-1216. Leasehold condominiums 33-1217. Allocation of common element interests, votes and common expense liabilities 33-1218. Limited common elements 33-1219. Plat 33-1220. Exercise of development rights 33-1221. Alterations of units 33-1222. Relocation of boundaries between adjoining units 33-1223. Subdivision of units 33-1224. Easement for encroachments 33-1225.

3 Use for sale purposes 33-1226. Easement to facilitate exercise of special declarant rights 33-1227. Amendment of declaration 33-1228. Termination of condominium 33-1229. Rights of secured lenders 33-1230. Merger or consolidation of condominiums ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM Section 33-1241. Organization of unit owners' association 33-1242. Powers of unit owners' association 33-1243. Board of directors and officers; conflict; powers; limitations; removal; annual audit 33-1244. Transfer of special declarant rights 33-1245. Termination of contracts and leases of declarant 33-1246. Bylaws 33-1247. Upkeep of the condominium 333-1248. Open meetings; exceptions 33-1249. Quorums 33-1250.

4 Voting; proxies 33-1251. Tort and contract liability 33-1252. Conveyance or encumbrance of common elements 33-1253. Insurance 33-1254. Surplus monies 33-1255. Assessments for common expenses 33-1256. Lien for assessments; priority; mechanics' and materialmen's liens 33-1257. Other liens affecting the condominium 33-1258. Association financial and other records 33-1259. Association as trustee 33-1260. Resale of units; information required; definition 33-1261. American flag display ARTICLE 4. ADMINISTRATION OF THE CONDOMINIUM ACT Section 33-1270.

5 Department of real estate; enforcement ARTICLE 1. GENERAL PROVISIONS 33-1201. Applicability A. This chapter applies to all condominiums created within this state on or after January 1, 1986. B. This chapter applies to all condominiums created before January 1, 1986 to the extent that this chapter does not conflict with the declarations, articles or bylaws of the condominium. C. With respect to condominiums created before January 1, 1986, this chapter applies to the extent the provisions of this chapter are not in conflict with former chapter of this Title , in effect before January 1, 1986, or declarations, bylaws or plats of condominiums adopted pursuant to former chapter of this Title . The provisions of former chapter of this Title and the declarations, bylaws or plats adopted pursuant to that chapter control, except as provided in subsection D of this section.

6 D. The provisions of former chapter of this Title , in effect before January 1, 1986, do not apply to condominiums created on or after January 1, 1986. The repeal of chapter of this Title does not invalidate condominiums created pursuant to chapter of this Title or future amendments to declarations, bylaws and plats of these condominiums if the amendments are permitted by this chapter . Amendments shall be adopted in conformity with the procedures and requirements specified in the declarations, bylaws and plats which were adopted pursuant to former chapter of this Title . If amendments grant to a person any rights, powers or privileges permitted by this chapter , all correlative obligations, liabilities and restrictions in this chapter also apply to that person. E. Any unit owners' association created before January 1, 1986 may elect to be subject to the provisions of this chapter by amending its condominium documents to conform with the requirements of this chapter .

7 The amendment must be adopted in conformity with the condominium documents and must be permitted by this chapter . If an amendment grants to a person a right, power or privilege permitted by this chapter , all correlative obligations, liabilities and restrictions in this chapter also apply. 33-1202. Definitions In the condominium documents, unless specifically provided otherwise or the context otherwise requires, and in this chapter : 1. "Affiliate of a declarant" means any person who controls, is controlled by or is under common control with a declarant. 2. "Allocated interests" means the undivided interests in the common elements, the common expense liability and votes in the association allocated to each unit. 3. "Articles of incorporation" means the instrument by which an incorporated association or unit owners' association is formed and organized under this state's corporate Statutes .

8 44. "Association" or "unit owners' association" means the unit owners' association organized under section 33-1241. 5. "Board of directors" means the body, regardless of its name, designated in the declaration and given general management powers to act on behalf of the association. 6. "Bylaws" means the bylaws required by section 33-1246. 7. "Common elements" means all portions of a condominium other than the units. 8. "Common expense liability" means the liability for common expenses allocated to each unit pursuant to section 33-1217. 9. "Common expenses" means expenditures made by or financial liabilities of the association, together with any allocations to reserves. 10. "Condominium" means real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of the separate portions.

9 Real estate is not a condominium unless the undivided interests in the common elements are vested in the unit owners. 11. "Condominium documents" means the declaration, bylaws, articles of incorporation, if any, and rules, if any. 12. "Declarant" means any person or group of persons who reserves, is granted or succeeds to any special declarant right. 13. "Declaration" means any instruments, however denominated, that create a condominium and any amendments to those instruments. 14. "Development rights" means any right or combination of rights reserved by or granted to a declarant in the declaration to do any of the following: (a) Add real estate to a condominium. (b) Create easements, units, common elements or limited common elements within a condominium.

10 (c) Subdivide units, convert units into common elements or convert common elements into units. (d) Withdraw real estate from a condominium. (e) Make the condominium part of a larger condominium or planned community. (f) Amend the declaration during any period of declarant control, pursuant to section 33-1243, subsection E, to comply with applicable law or to correct any error or inconsistency in the declaration, if the amendment does not adversely affect the rights of any unit owner. (g) Amend the declaration during any period of declarant control, pursuant to section 33-1243, subsection E, to comply with the rules or guidelines, in effect from time to time, of any governmental or quasi-governmental entity or federal corporation guaranteeing or insuring mortgage loans or governing transactions involving mortgage instruments.