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Times change, and so does the law. It used to be that condominiums created before 1986 did not need to comply with the Condominium Act. Now they must, regardless of what their CC&Rs, Rules, etc., say. Many older condominiums have outdated documents. This means that some directors may be running the condominium in violation of the law through no fault of their own. If you are a director of a condominium created before 1986, we recommend that you contact an attorney to help walk you through your documents and advise you whether they should be amended.
Recently, the question was raised whether communities should amend their CC&Rs to require that any bank foreclosing on a property pay all of the prior debts of the prior owner. In 2006, the Arizona Supreme Court ruled that CC&Rs are a contract and that the “express language” in that contract should be enforced. Based on this and other court rulings, some scholars began to argue that CC&Rs could be amended to include a requirement that banks and any other subsequent owners pay all current delinquencies on the property once they acquire title. With this type of provision in the CC&Rs, it is conceivable that a bank could be required to pay the debts of the prior owner. This is just an argument. It is not law. It has not been tested in the higher courts, so amendments like these are open to further debate.
Many condominium directors may find that one or more provisions in their CC&Rs should be changed. For example, one community may not like the parking requirements anymore. Other communities may want to delete all of the developer provisions because there is no more development. Hillside communities may want to restrict housing to single levels to preserve breathtaking views. The reasons for amendments are many.
