Tuesday August 25, 2026
What is the Arizona Condominium Act?
The Arizona Condominium Act governs how condominiums are created, managed, and, in some cases, terminated in Arizona. The statute outlines the legal structure for condominium ownership, association governance, voting, insurance, and financial responsibilities.If you serve on a condo board or own a unit in Arizona, understanding the AZ Condo Act is essential to staying compliant and protecting your community’s long-term stability.
Key provisions
Below are several important components of the Arizona Condominium Act:
- Creation of a condominium: A condominium is created by recording a declaration that describes the units, common elements, and allocated interests (A.R.S. § 33-1211).
- Unit ownership vs. common elements: The Act distinguishes individually owned units from common elements owned collectively by unit owners (A.R.S. § 33-1202, 33-1217).
- Association powers: Condominium associations have the authority to adopt budgets, levy assessments, maintain common areas, and enforce governing documents (A.R.S. § 33-1242).
- Meetings and voting: The Act outlines requirements for board and owner meetings, open meeting and notice requirements, and certain voting procedures (A.R.S. § 33-1248, 33-1250).
- Insurance requirements: Associations must maintain property and liability condo insurance covering common elements and, if required by the condominium documents, the units (A.R.S. § 33-1253).
- Assessments and liens: Associations may levy assessments and record liens for unpaid amounts, with the right to pursue foreclosure under certain conditions (A.R.S. § 33-1256).
- Termination of condominium: A condominium may be terminated if unit owners holding at least 80% of the votes in the association agree, or 95% for condominiums created on or after September 24, 2022, subject to statutory procedures and allocation requirements (A.R.S. § 33-1228).
- Dispute resolution petitions: Certain disputes may be filed with the Arizona Department of Real Estate for administrative review (A.R.S. § 32-2199.01).
Recent updates to the Act
In 2025, Arizona amended the Act’s open meeting requirements. If a board records an open meeting, the association must keep the recording for at least six months and provide the unedited recording to a member on request through the association records process (A.R.S. § 33-1248).Compliance tips for associations in Arizona
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Review your declaration and bylaws regularly
Your governing documents work together with the Arizona Condominium Act. Boards should periodically review them to confirm consistency with current statutes. If documents are outdated or conflict with state law, consult legal counsel about potential amendments.
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Standardize assessment collection procedures
The AZ Condo Act gives associations authority to collect assessments and pursue liens. Develop a consistent delinquency timeline that includes notice letters, payment plan options, and documented board approvals before escalation. Consistency can help reduce claims of unfair treatment.
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Document meetings carefully
Accurate meeting minutes, clear vote counts, and proper notice procedures help demonstrate compliance with A.R.S. § 33-1248. Organized records also protect the association if decisions are later questioned.
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Maintain adequate insurance coverage
Review property, general liability, fidelity, and directors and officers (D&O) policies at least annually. Rising construction costs and severe weather can affect replacement values. Insurance gaps can expose the association to significant financial risk.
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Understand termination provisions
Termination of a condominium requires approval from unit owners holding at least 80% of the votes in the association, or 95% of the votes in the association for condominiums created on or after September 24, 2022 under A.R.S. § 33-1228. Boards should understand these procedures even if termination is unlikely. Awareness helps avoid confusion if redevelopment discussions arise.
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Train new board members
Board orientation should include a review of the Arizona Condominium Act, financial status, ongoing capital improvements, and fiduciary duties. Education supports better decisions and helps address resident complaints.
Unit owners’ rights and responsibilities
The Arizona Condominium Act outlines both owner rights and obligations. Owners have voting rights, access to certain records, and participation in meetings. They are also responsible for paying assessments, complying with bylaws, and maintaining their units according to governing documents.Clear communication about these shared responsibilities helps reduce conflict and strengthen compliance.
Assessments, liens, and foreclosure
Under A.R.S. § 33-1256, unpaid assessments automatically become a lien against the unit. Associations may pursue collection, including foreclosure, if statutory thresholds are met. Because foreclosure is a serious legal action, boards should consult legal counsel and follow a documented, step-by-step collection policy before proceeding.Insurance under the Arizona Condo Act
The Act requires associations to maintain property insurance on common elements and certain portions of units, as well as liability coverage. The condominium documents determine whether coverage is “all-in” or limited to common elements and any units the documents require the association to insure.Unit owners are generally responsible for obtaining HO-6 policies to cover personal property and interior upgrades not covered by the association’s master policy.
Dispute resolution options
Arizona law allows certain condominium disputes to be filed with the Arizona Department of Real Estate under A.R.S. § 32-2199.01. This administrative process may address document compliance and procedural issues. Boards should maintain organized records and documented decision-making processes to reduce the likelihood of formal disputes.How FirstService Residential can help
As North America’s leading property management company, FirstService Residential serves Arizona boards and owners with local expertise backed by national resources. Our teams offer support with meetings, recordkeeping, financial management, banking and insurance programs, resident communication, and 24/7 customer care teams. This way, board members can focus on long-term goals instead of day-to-day administration.With over 45 years of experience across the state, we help HOAs, condo associations, high-rises, and master-planned communities operate smoothly and meet their goals with confidence. To learn how we can support your association, contact our Arizona team today.
This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.