HB 2648
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
House: COM DPA/SE 9-0-1-0
HB 2648: motor vehicle manufacturers; TPT; exemption
S/E: condominiums; planned communities; lien; assessment
Sponsor: Representative Martinez, LD 16
Caucus & COW
Overview
Restructures statutes relating to condominium and planned community liens.
History
A condominium and planned community association has a lien on a unit for any assessment
levied against that unit from the time the assessment becomes due. The association's lien for
assessments, for charges for late payment of those assessments, for reasonable collection fees
and for reasonable attorney fees and costs incurred with respect to those assessments may
be foreclosed in the same manner as a mortgage on real estate but only if the owner has been
delinquent in the payment of monies secured by the lien, excluding reasonable collection fees,
reasonable attorney fees and charges for late payment of and costs incurred with respect to
those assessments, for a period of one year or in the amount of $1,200 or more, whichever
occurs first.
Fees, charges, late charges, monetary penalties and interest charged, other than charges for
late payment of assessments, are not enforceable as assessments. The association's lien for
monies other than for assessments, for charges for late payment of those assessments, for
reasonable collection fees and for reasonable attorney fees and costs incurred with respect to
those assessments may not be foreclosed and is effective only on conveyance of any interest
in the real property (A.R.S. ยงยง 33-1256 and 33-1807).
Provisions
Condominium Assessment Liens
1. Specifies the association has a lien on a unit for any common expense assessment from
the time the assessment becomes due. (Sec. 1)
2. Clarifies the lien for common expense assessments may include:
a) reasonable charges or interest for late payment of those assessments only if
authorized in the declaration;
b) reasonable collection costs or fees incurred or applied by the association only; and
c) reasonable attorney fees and costs incurred but only as awarded by the court. (Sec. 1)
3. Restates the full amount of a common expense assessment that is payable in installments
is a lien from the time the first installment of the assessment becomes due. (Sec. 1)
4. Restates the common expense assessment lien is not subject to the homestead exemption.
(Sec. 1) HB 2648
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5. Clarifies the common expense assessment lien may be foreclosed only if the unit owner
has been and remains delinquent in the payment of common expense assessments. (Sec.
1)
6. Revises items that constitute a record notice and perfection of a lien. (Sec. 1)
7. Requires costs and reasonable attorney fees be included in a judgment or decree only if
ordered by the court. (Sec. 1)
8. Clarifies the order of payments received that are applied to a unit owner's account. (Sec.
1)
9. Replace assessments with common expense assessments as appropriate. (Sec. 1)
Condominium Liens for Fees and Other Charges
10. Restates a condominium association that is owed fees, charges, late charges and monetary
penalties or interest charged does not have a lien against the debtor's unit for those
amounts and the unpaid amounts are not enforceable and collectable as common expense
assessments. (Sec. 1, 2)
11. Restates that the association has a lien for fees, charges and late charges, other than
charges for late payment of common expense assessments, and for monetary penalties or
interest charged only after the entry of a judgment in a civil suit. (Sec. 1, 2)
12. Restates the association's judgment lien for specified monies cannot be foreclosed and is
effective only on conveyance of any interest in the real property. (Sec. 1, 2)
13. Specifies an association's judgment lien for specified monies does not affect the priority of
mechanics' or materialmen's liens or other liens for other assessment made by the
association. (Sec. 2)
14. Specifies liens for fees and other charges provisions does not prohibit actions to recover
sums with the creation of a lien. (Sec. 2)
15. Stipulates a judgment or decree may include costs and reasonable attorney fees for the
prevailing party only if ordered by the court. (Sec. 2)
16. Restates the order of received payments that are applied to a unit owner's account. (Sec.
2)
17. Exempts timeshare plans or timeshare owners' associations from the requirements
relating to condominium liens. (Sec. 2)
Planned Communities Assessment Liens
18. Specifies the association has a lien on a property for any common expense assessment
from the time the assessment becomes due. (Sec. 3)
19. Clarifies the lien for common expense assessments may include:
a) reasonable charges or interest for late payment of those assessments only if
authorized in the declaration;
b) reasonable collection costs or fees incurred or applied by the association only; and
c) reasonable attorney fees and costs incurred but only as awarded by the court. (Sec. 3)
20. Restates the full amount of a common expense assessment that is payable in installments
is a lien from the time the first installment of the assessment becomes due. (Sec. 3) HB 2648
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21. Restates the common expense assessment lien is not subject to the homestead exemption.
(Sec. 3)
22. Clarifies the common expense assessment lien may be foreclosed only if the owner has
been and remains delinquent in the payment of common expense assessments. (Sec. 3)
23. Revises items that constitute a record notice and perfection of a lien. (Sec. 3)
24. Requires costs and reasonable attorney fees be included in a judgment or decree only if
ordered by the court. (Sec. 3)
25. Clarifies the order of payments received that are applied to a member's account. (Sec. 3)
26. Replace assessments with common expense assessments as appropriate. (Sec. 3)
Planned Community Liens for Fees and Other Charges
27. Restates an association that is owed fees, charges, late charges and monetary penalties
or interest charged does not have a lien against the debtor's property for those amounts
and the unpaid amounts are not enforceable and collectable as common expense
assessments. (Sec. 3, 4)
28. Restates that the association has a lien for fees, charges and late charges, other than
charges for late payment of common expense assessments, and for monetary penalties or
interest charged only after the entry of a judgment in a civil suit. (Sec. 3, 4)
29. Restates the association's judgment lien for specified monies cannot be foreclosed and is
effective only on conveyance of any interest in the real property. (Sec. 3, 4)
30. Specifies an association's judgment lien for specified monies does not affect the priority of
mechanics' or materialmen's liens or other liens for other assessment made by the
association. (Sec. 4)
31. Specifies liens for fees and other charges provisions does not prohibit actions to recover
sums with the creation of a lien. (Sec. 4)
32. Stipulates a judgment or decree may include costs and reasonable attorney fees for the
prevailing party only if ordered by the court. (Sec. 4)
33. Restates the order of received payments that are applied to a member's account. (Sec. 4)
Miscellaneous
34. Makes technical and clarifying changes. (Sec. 1, 3)
Amendments
Committee on Commerce
1. Adopted the strike-everything amendment.