SB 1084 — condominium; termination; appraisal dispute

SB1084 - 532R - IS Ver       REFERENCESenate TITLE:Engrossed         State of Arizona Senate Fifty-third Legislature Second Regular Session     SENATE BILL 1084       AN ACT   amending section 33-1228, Arizona Revised Statutes;

condominium;

termination;

appraisal dispute         State of Arizona Senate Fifty-third Legislature Second Regular Session     SB 1084   Introduced by Senator Barto     AN ACT   amending section 33-1228, Arizona Revised Statutes;

E.  If the real estate constituting the condominium is not to be sold following termination, title to all the real estate in the condominium vests in the unit owners on termination as tenants in common in proportion to their respective interests as provided in subsection G,G of this section, and liens on the units shift accordingly.  While the tenancy in common exists, each unit owner and his the unit owner's successors in interest have an exclusive right to occupancy of the portion of the real estate that formerly constituted his the unit owner's unit.

1.  Except as provided in paragraph 2 of this subsection, the respective interests of unit owners are the fair market values of their units, limited common elements and common element interests immediately before the termination, as determined by and an additional five percent of that total amount for relocation costs.  An independent appraiser selected by the association.  Theassociation shall determine the total fair market values.  The determination of the independent appraiser shall be distributed to the unit owners and becomes final unless disapproved by the unit owner within thirty sixty days after distribution by to the unit owners of units to which fifty per cent of the votes in the association are allocated owner.  The proportion of any unit owner's interest to that of all unit owners is determined by dividing the fair market value of that unit owner's unit and common element interest by the total fair market values of all the units and common elements.  AAny unit owner may selectobtain ana second independent appraiserappraisal otherat than the APPRAISER selected by the association and shall submit the unit owner's INDEPENDENTexpense appraisaland to the association within ninety days after distribution of the association's independent appraisal to the unit owner.  If the unit owner's INDEPENDENT APPRAISAL amount differs from the association's independent appraisal amount by two percent or less, the unithigher owner's appraisal is final.  If the unittotal owner'samount independentof APPRAISALcompensation amountowed differsas fromdetermined by the association'ssecond INDEPENDENTappraiser appraisalis amount by more than two percent,percent thehigher unitthan owner and the associationamount shalldetermined jointlyby selectthe anassociation's arbitratorappraiser, orthe mediatorunit toowner makeshall abe finalpaid determination as to the fairaverage market value of the property.  Thetwo associationamounts shalland payan theadditional costfive percent of thethat arbitratoramount orfor mediator,relocation ascosts. applicable.

I.  If a lien or encumbrance against a portion of the real estate comprising the condominium has priority over the declaration, and the lien or encumbrance has not been partially released, the parties foreclosing the lien or encumbrance may, on foreclosure, may record an instrument excluding the real estate subject to that lien or encumbrance from the condominium.

J.  The provisions of subsections CC, through D, E, F, H and I of this section do not apply if the original declaration, an amendment to the original declaration recorded before the conveyance of any unit to an owner other than the declarant or an agreement by all of the unit owners contain contains provisions inconsistent with such subsections.

K.  Beginning on the effective date of this amendment to this section, any provisions in the declaration that conflict with subsection G, paragraph 1 of this section are void as a matter of public policy.