Arizona SB 1246: technical correction; open pit mining

Bill Text

Chapter 0162 - 572R - S Ver of SB1246 

 Senate Engrossed

 homeowners' 
 associations; foreclosure process

 (now: HOAs; expense 
 liens; special assessment) 

 State of Arizona

 Senate

 Fifty-seventh Legislature

 Second Regular Session

 2026

 CHAPTER 162

 SENATE BILL 1246

AN 
ACT

amending sections 33-1256 and 33-1807, 
Arizona Revised Statutes; relating to condominiums and planned communities.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 33-1256, Arizona Revised 
Statutes, is amended to read:

START_STATUTE33-1256. Common expense liens; priority; mechanics' and materialmen's 
liens; notice; applicability

A. 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 assessments, 
any assessment or portion of the assessment for a period 
of one year eighteen months or in 
the amount of $1,200 $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.

B. 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.

C. 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.

D. 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.

E. 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.

F. 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.

G. 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.

H. 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.

I. A judgment or decree in any action brought under 
this section may include costs and reasonable attorney fees for the prevailing 
party.

J. 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.

K. 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 unpai