AZ HB2397

Requires homeowners' associations to electronically transmit or deliver resale disclosure documents to purchasers within 10 days of offer acceptance, rather than after receiving written notice of a pending sale.

Expands required disclosure items to include current recorded declaration and final plat, board meeting minutes from the previous three meetings, insurance certificates with coverage limits and deductibles, and any outstanding unresolved violations cited against the property.

Mandates disclosure of whether the community is under declarant control, the percentage of units owned by the declarant, and whether any corporation or LLC owns and leases 35% or more of units.

Requires purchasers to sign a statement at closing acknowledging they are contractually bound to pay assessments and may face foreclosure action if they fail to pay, without homestead act equity protection.

Establishes that associations and sellers providing disclosures may rely in good faith on association records without independent investigation, with liability only for knowingly or recklessly providing false or misleading information.