Arizona expanded its condo resale disclosure law. New York has none.
Arizona found its existing resale disclosure requirements insufficient and strengthened them. New York begins from a lower starting point: the Property Condition Disclosure Act explicitly exempts co-op and condo buyers from seller disclosure. Companion to Texas SB 711 and New York.
Governor Katie Hobbs signed Arizona House Bill 2397 in June 2026. Starting September 12, 2026, every seller of a condominium unit or HOA-governed property in Arizona must deliver a disclosure packet that includes board meeting minutes, active violation notices issued to the unit, and an expanded financial statement to the buyer before or simultaneous with acceptance of the purchase offer. New York Real Property Law §461 provides that New York's seller-disclosure statute "shall not apply to" any condominium unit or cooperative apartment. That exemption is not a gap in Arizona's expansion. It is the entirety of New York's policy.
What Arizona already required before June 2026.
Arizona's baseline resale disclosure obligation is not new. Arizona Revised Statutes §33-1806 (condominiums) and ARS §33-1260 (planned communities and HOAs) have required sellers to deliver a resale disclosure packet to buyers within ten days of a pending sale for decades. Before HB 2397, that packet was required to include:
- A current operating budget
- The total amount held by the association in reserve funds
- A statement of any pending or active special assessments
- Any pending litigation involving the association
- Copies of the governing documents: declaration, bylaws, and rules
Arizona also gave buyers a five-day cancellation right after receiving the packet, and imposed a $500 civil penalty on sellers who failed to deliver. The association was required to respond to a seller's request for documents within ten business days.
Arizona's pre-2026 baseline is already more protective than anything New York law provides to condo or co-op buyers at resale. The question raised by HB 2397 is not whether Arizona is starting from the same place as New York. It is not.
What HB 2397 adds starting September 12.
HB 2397 amends both ARS §33-1806 and ARS §33-1260 to expand and restructure the resale disclosure obligation in several ways. The most significant changes:
- Board meeting minutes: The seller must provide the buyer with minutes from board meetings held in the prior twelve months, including any executive session minutes that Arizona law permits the association to share.
- Violation notices: Any active violation notices issued to the specific unit being sold must be included in the packet. A buyer learns, before signing a contract, whether the seller has outstanding enforcement actions from the association.
- Special assessments within four months: Any special assessment approved but not yet levied in the prior four months must be disclosed. A special assessment approved three weeks before closing cannot be concealed from the buyer.
- Association lien amounts: The current dollar amount of any lien or judgment the association holds against the property must be stated explicitly.
- Contractor good standing: For associations with active construction claims, confirmation that the association is in good standing with the Arizona Registrar of Contractors must be included.
HB 2397 also makes structural changes to who bears the delivery obligation. For associations with 50 or more units, the association itself (not just the seller) becomes responsible for compiling and delivering the disclosure packet within ten days of written notice that a sale is pending. Electronic delivery to the buyer's email address is now explicitly authorized. The bill also raises the liability standard for association disclosure errors from negligence to "knowing or reckless conduct," which reduces the association's exposure for good-faith omissions while keeping buyers protected against deliberate concealment.
The trigger for the disclosure obligation also changed: Arizona now links it to "acceptance of the purchaser's offer" rather than a "pending sale." The buyer receives the packet as a condition of the deal being finalized, not after.
New York's statute says "shall not apply."
New York enacted its Property Condition Disclosure Act in 2001 (effective March 2002) as RPL Article 14. The disclosure act requires residential sellers to complete a disclosure form covering structural conditions, water intrusion, pest activity, heating and plumbing systems, and, since a 2023 amendment (effective March 2024), flood risk. That same 2023 amendment also eliminated a seller's option to pay a $500 credit in lieu of providing the form; disclosure is now mandatory. A buyer who receives a form containing a material misrepresentation has a cause of action.
The exemption language in RPL §461 is direct. The statute "shall not apply" to sales of "any cooperative interest in a cooperative corporation" or "any condominium unit." Every co-op and condo buyer in New York is excluded from the disclosure act in its entirety. There is no disclosure form to receive, no governing documents to request as a right before offer acceptance, no reserve fund statement, no violation notice, and no cancellation right triggered by disclosure delivery.
The rationale offered when the exemption was written was that co-op and condo buyers already receive information through the Attorney General's offering-plan review process. The AG reviews the offering plan at initial conversion or original sale by the sponsor. It does not review resale transactions. In a market where resales outnumber sponsor sales in nearly every established NYC building by a wide margin, the exemption's rationale covers a small fraction of actual transactions.
What buyers receive, jurisdiction by jurisdiction.
The table below maps the disclosure items Arizona now requires at resale against what New York law provides to condo and co-op buyers. The "Arizona (post-HB 2397)" column reflects the September 12, 2026 standard.
| Disclosure item | Arizona (ARS §33-1806, as of Sept. 12) | New York (RPL §461) |
|---|---|---|
| Current reserve fund balance | Required | Not required; no statute |
| Current operating budget | Required | Not required |
| Pending or approved special assessments | Required (prior 4 months) | Not required |
| Board meeting minutes (12 months) | Required (added by HB 2397) | Not required |
| Active violation notices on the unit | Required (added by HB 2397) | Not required |
| Association lien or judgment amount | Required (added by HB 2397) | Not required |
| Pending litigation involving the association | Required | Not required |
| Governing documents (declaration, bylaws, rules) | Required | Not required at resale |
| Buyer cancellation right tied to disclosure | 5-day right after delivery | None |
| Seller penalty for non-delivery | $500 civil penalty | None |
What Albany tried, and what the NYC Council is considering.
New York has not gone without proposals. Senate Bill S7541, the Condo and Cooperative Transparency Act, passed the full Senate 58-1 in June 2025. As this site has previously reported, the bill would have required condo and co-op boards to disclose engineering inspection reports and repair records to buyers at contract signing. The Assembly bill's sponsor withdrew before a floor vote. The companion bill, A8337, was referred to the Housing Committee and received no hearing. The 2025-2026 legislative session ended June 18, 2026 without action on resale disclosure for condo or co-op buyers.
At the city level, the NYC Council is considering Int. 426-2026, titled "Financial Information for Prospective Purchasers." The Council of New York Cooperatives and Condominiums formally opposes it, describing the bill as increasing "cost and liability by requiring potentially complex legal interpretations." The financial information the bill would require, under that framing, is a reserve balance and a current operating budget: two items that Arizona has required of every condo seller as a legal baseline for decades.
The Legistar record for Int. 426-2026 does not show a committee vote scheduled as of this writing. The bill covers co-op and condo buildings citywide. It does not cover the managing agent who drafts the disclosure, who needs no license in New York. Senate Bill S.71, the managing-agent licensure bill, has not received a committee hearing in ten consecutive sessions.
Bottom line.
Arizona is not a national model for condo regulation. It enacted basic resale disclosure requirements as part of its Condominium Act and, in 2026, concluded those requirements needed to be stronger. Buyers in Phoenix closing after September 12 will receive board meeting minutes, active violation notices, and expanded financial data before signing a purchase contract. Buyers in Manhattan, closing on the same day, receive none of those items by statute. New York's legislature created the exemption in 2002 and has not revisited it in 24 years. The 15,108 condo and co-op buildings in this city's housing stock carry that policy choice forward into every resale transaction, and the buyers who close without knowing their building's reserve balance, its pending special assessments, or the violation notices on the unit they are buying have the law as it stands to thank for that.
The specific regulatory gap this pattern illustrates is catalogued at /issues/no-mandatory-financial-disclosure-to-buyers/.
Primary sources: Arizona HB 2397 (57th Legislature, 2nd Regular Session) · ARS §33-1806 (condo resale) · ARS §33-1260 (planned community resale) · NY RPL §461 (seller disclosure exemption) · NY S7541 (Condo Transparency Act)
Companion resources: Texas SB 711: governing documents online · Washington's 26-item resale certificate · Illinois collection policy + resale disclosure · NY S7541: Senate-passed transparency bill · Issue: no financial disclosure to buyers