House Bill 2397 — amending A.R.S. §§ 33-1260 and 33-1806
Applies to both planned communities and condominiums.

Of all the new laws this session, House Bill 2397 will touch your day-to-day operations the most, because it reaches every resale. Its changes are extensive enough that we are covering them over two days. Today we address when the disclosure obligation is triggered, how disclosure may be delivered, and what must now be added to the package.

House Bill 2397 became effective on September 12, 2026. It provides significant expansion of and changes to resale disclosure requirements for condominiums and planned communities.

The bill provides that disclosure obligations are tied to “acceptance of the purchaser’s offer” instead of merely a “pending sale,” and allows for electronic transmission of the required disclosure items to the purchaser. It also specifies that disclosure may be sent to the purchaser’s “designated” agent instead of authorized agent. For associations with 50 or more units, the seller must provide written notice to the association that includes the purchaser’s email address in addition to the purchaser’s name and mailing address.

Adds the following to the list of items to be included in the disclosure package:

  1.            A final plat;
  2.           Board-approved minutes from the previous 3 open Board meetings;
  3.           CONDOS – All insurance certificates stating coverage limits and deductibles maintained by the Association on the subject property (in addition to the currently required statement of whether the property is insured by the Association);
  4.           Statement as to whether the community is under Declarant control and percentage of properties currently owned by Declarant;
  5.            CONDOS – Statement of whether a corporation or LLC owns and leases 35% or more of the units;
  6.           Statement that the purchaser may view entirety of reports that have been summarized in the disclosure within 10 days following a written request to the Association by the purchaser;
  7.            If the subject property is governed by multiple Associations, a statement that the property is subject to each Association’s disclosure report and corresponding resale disclosure fee.

Adds the following to be included in the dated disclosure statement:

  1.            Payment schedule for the annual assessment along with remaining installments;
  2.           Payment schedules for any approved and assessed special assessment, if any;
  3.           Amount and purpose of any special assessment approved but not yet assessed OR submitted for owner approval within the past four (4) months, if any;
  4.           CONDOS – Any known material deficiency or condition of the subject unit’s limited common elements OR common elements for which the purchaser will be directly assessed for repair costs within six (6) months of purchase, if any;
  5.            Current amount of any unpaid annual assessment, lien due to the Association (under A.R.S. §§ 33-1256 or 33-1807) or lis pendens recorded by the Association on the subject property;
  6.           The amount and purpose of any title transfer fee, and the like, authorized by the Declaration;
  7.            The Association’s most recent income and expenses financial statements for all operating and reserve accounts;
  8.           Any outstanding and unresolved violation cited against the subject property, if any.

Tomorrow we will cover the changes to existing disclosure requirements, the new acknowledgement language, and the changes to liability. In the meantime, Mulcahy Law Firm is available to review your disclosure package against the new list.

Information in this article reflects the law as of the publication date. Laws are subject to change, and this post may not be updated to reflect subsequent legal developments. Contact Mulcahy Law Firm, P.C. with questions at info@mulcahylawfirm.com.