Condominiums; consents and waivers, arbitration and mediation

SB121 INTRODUCED
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SB121
V7DTWLV-1
By Senator Orr
RFD: Judiciary
First Read: 13-Jan-26
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V7DTWLV-1 01/09/2026 VSM (L)ma 2025-3639
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First Read: 13-Jan-26
SYNOPSIS:
Existing law requires consent from a specified
percentage of condominium unit owners to amend a
condominium declaration and prohibits obtaining consent
through powers of attorney. In addition a unit owners'
association is limited in the legal proceedings in
which they can intervene and the courts are limited in
the equitable remedies they can provide.
This bill would prohibit the use of consents,
waivers, and powers of attorney, to obtain unit owners'
authorization to alter a condominium declaration. This
bill would allow a unit owners' association to
intervene in arbitration and mediation, in addition to
litigation, and would give courts the authority to
apply equitable remedies such as reformation,
injunction, and declaratory actions to disputes
involving the condominium declaration.
This bill would also make nonsubstantive,
technical revisions to update the existing code
language to current style.
A BILL
TO BE ENTITLED
AN ACT
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AN ACT
Relating to condominiums; to amend Sections 35-8A-104,
35-8A-108, 35-8A-110, 35-8A-205, 35-8A-216, 35-8A-302,
35-8A-308, 35-8A-309, 35-8A-403, 35-8A-408, and 35-8A-414,
Code of Alabama 1975; to prohibit the use of consents, and
waivers, in addition to powers of attorney, to obtain unit
owners authorization to alter a condominium declaration; to
require reports of material changes to be fully and accurately
reported; to allow a unit owners' association to intervene in
arbitration and mediation; to apply equitable remedies such as
reformation, injunction, and declaratory actions to disputes
involving the condominium declaration; and to make
nonsubstantive, technical revisions to update the existing
code language to current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 35-8A-104, 35-8A-108, 35-8A-110,
35-8A-205, 35-8A-216, 35-8A-302, 35-8A-308, 35-8A-309,
35-8A-403, 35-8A-408, and 35-8A-414 of the Code of Alabama
1975, is amended to read as follows:
"§35-8A-104
Except as expressly provided in this chapter, the
provisions of this chapter may not be varied by agreement, and
the rights conferred by this chapter may not be waived. A
declarant may not act under a power of attorney, consent,
waiver, or use any other device , to evade the limitations or
prohibitions of this chapter or the declaration."
"§35-8A-108
The principles of law and equity, including the law of
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The principles of law and equity, including the law of
corporations, the law of real property , and the law relative
to capacity to contract, principal and agent, eminent domain,
estoppel, fraud, misrepresentation, duress, coercion, mistake,
receivership, substantial performance, or other validating or
invalidating cause causes of action, as well as remedies of
reformation, injunction, and declaratory judgment, supplement
the provisions of this chapter, except to the extent
inconsistent with this chapter."
"§35-8A-110
(a) Notwithstanding a finding that this chapter is in
derogation of modifies the common law, it should be liberally
construed to effectuate its purpose of encouraging promote the
development and construction of condominium property
properties under the provisions of this chapter. The remedies
provided by this chapter shall be liberally administered to
the end that ensure the aggrieved party is put in as good a
position as if the other party had fully performed. These
remedies shall be available in addition, and not contrary to,
the remedies otherwise available at common law.
(b) Any right or obligation declared by this chapter is
enforceable by through judicial proceeding proceedings ."
"§35-8A-205
(a) The declaration for a condominium must contain:
(1) The name of the condominium, which must include the
word "condominium" or be followed by the words "a
condominium," and the name of the association;
(2) The name of every county in which any part of the
condominium is situated;
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condominium is situated;
(3) A legally sufficient description of the real estate
included in the condominium;
(4) A statement of the maximum number of units which
the declarant reserves the right to create;
(5) A description of the boundaries of each unit
created by the declaration, including the unit's identifying
number;
(6) A description of any limited common elements, other
than those specified in Section 35-8A-202(2) and (4), as
provided in Section 35-8A-209(b) (10);
(7) A description of any common elements , (except real
estate subject to development rights ) which , that may be
allocated subsequently as limited common elements, other than
limited common elements those specified in Section
35-8A-202(2) and (4), together with a statement that they may
be so allocated;
(8) A description of any development rights specified
in Section 35-8A-103(11) and other special declarant rights
specified in Section 35-8A-103(24) reserved by the declarant,
together with a legally sufficient description of the real
estate to which each of those rights applies, and a statement
of the time limit within which each of those rights must be
exercised;
(9) If any development right may be exercised with
respect to on different parcels of real estate at different
times, a statement to that effect together with that includes:
(i) either a statement fixing the boundaries of those portions
and regulating describing each parcel's boundaries and the
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and regulating describing each parcel's boundaries and the
order in which those portions may be subjected to the exercise
of each development right the development rights may be
exercised on them , or a statement that no such assurances are
made in those regards provided ,; and (ii) a statement as to
whether , if any development right is exercised in any portion
of the real estate subject to that development right, that
development right must be exercised in all or in any other
portion of the remainder of that real estate exercising a
development right in one part of the real estate requires
exercising it in all or any other parts of the remaining
property ;
(10) Any other conditions or limitations under which
the rights described in subdivision (8) may be exercised or
will lapse;
(11) An allocation to each unit of the allocated
interests in the manner described in Section 35-8A-207;
(12) Any restrictions on : (i) the use, occupancy,
leasing, or alienation of the units, provided that reasonable
rules and regulations related to concerning conduct by unit
owners or aesthetic considerations standards, which are
adopted by the association from time to time periodically by
the association need do not need to be included in the
declaration ,; and (ii) the amount for which a unit may be sold
sale price of the unit or the amount that may be received by a
unit owner on a unit owner may receive upon sale,
condemnation, casualty loss to the unit or to the condominium,
or on the , or termination of the condominium;
(13) The recording data for recorded easements and
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(13) The recording data for recorded easements and
licenses appurtenant to or included in the condominium , or to
which any portion of the condominium is or may become subject
by virtue of a reservation in the declaration;
(14) A statement of the number and identity of units
which the declarant reserves the right to dispose of in time
shares; and
(15) All matters required by Sections 35-8A-206 through
35-8A-209, 35-8A-215, 35-8A-216, and 35-8A-303(d).
(b) The declaration may contain any other matters the
declarant deems appropriate."
"§35-8A-216
Subject to the provisions of the declaration, a
declarant only has an easement through the common elements as
may be reasonably necessary for the purpose of discharging to
discharge a declarant's obligations or exercising exercise
special declarant rights, whether arising under this chapter
or reserved in the declaration."
"§35-8A-302
(a) Except as provided in subsection (b), and subject
to the provisions of the declaration, the association may:
(1) Adopt and amend bylaws and rules and regulations;
(2) Adopt and amend budgets for revenues, expenditures,
and reserves and impose and collect assessments for common
expenses from unit owners;
(3) Hire and discharge managing agents and other
employees, agents, and independent contractors;
(4) Institute, defend, or intervene in litigation ,
arbitration, mediation, or administrative proceedings in its
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arbitration, mediation, or administrative proceedings in its
own name on behalf of itself or two or more unit owners on
matters any matter affecting the condominium;
(5) Make contracts and incur liabilities;
(6) Regulate the use, maintenance, repair, replacement,
and modification of common elements;
(7) Cause additional improvements to be made as a part
of the common elements;
(8) Acquire, hold, encumber, and convey in its own name
any right, title, or interest to in real or personal property,
but interests in the common elements , other than those set
forth in subdivision (9) , may be conveyed or subjected to a
security interest only pursuant to Section 35-8A-312;
(9) Grant easements, encroachments, leases, licenses,
and concessions through or over the common elements;
(10) Impose and receive any payments, fees, or charges
for the use, rental, or operation of the common elements,
other than limited common elements described in Section
35-8A-202(2) and (4), and for services provided to unit
owners;
(11) Impose against owners of units charges for late
payment of assessments and, after notice and an opportunity to
be heard, levy reasonable fines for violations of the
declaration, bylaws, and rules and regulations of the
association;
(12) Impose reasonable charges for the preparation and
recordation of amendments to the declaration, resale
certificates required by Section 35-8A-409, or statements of
unpaid assessments;
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unpaid assessments;
(13) Provide for the indemnification of its officers
and board and maintain directors' and officers' liability
insurance;
(14) Assign its right to future income, including the
right to receive common expense assessments, but only to the
extent the declaration expressly so provides, or as required
to secure a loan that is otherwise allowed or provided for in
the governing documents;
(15) Exercise any other powers conferred by the
declaration or bylaws;
(16) Exercise all other powers that may be exercised in
this state by legal entities of the same type as the
association; and
(17) Exercise any other powers necessary and proper for
the governance and operation of the association.
(b) The declaration may not impose limitations on the
power of the association to deal with the declarant which are
more restrictive than the limitations imposed on the power of
the association to deal with other persons."
"§35-8A-308
A There must be at least one meeting of the association
must be held at least once each year. Special meetings of the
association may be called by the president, a majority of the
board or by unit owners having 20 percent, or any lower
percentage specified in the bylaws, of the votes in the
association. Not less than 10 nor more than 60 days in advance
of any meeting, the secretary or other officer specified in
the bylaws shall cause notice to be hand-delivered or sent
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the bylaws shall cause notice to be hand-delivered or sent
prepaid by United States mail to the mailing address of each
unit or to any other mailing address designated in writing by
the unit owner. The notice of any meeting must state the time
and place of the meeting and the items on the agenda,
including the general nature of any proposed amendment to the
declaration or bylaws, any budget changes, and any proposal to
remove an officer or a member of the board."
"§35-8A-309
(a) Unless the bylaws provide otherwise, a quorum is
present throughout any meeting of the association if persons
entitled to cast 20 percent of the votes which that may be
cast for election of the board are present in person or by
proxy at the beginning of the said meeting.
(b) Unless the bylaws specify a larger percentage, a
quorum is deemed present throughout any meeting of the board
if persons entitled to cast 50 percent of the votes on that
board are present at the beginning of the said meeting."
"§35-8A-403
(a) Except as provided in subsection (b), an offering
statement must contain or fully and accurately disclose the
following information with regard to regarding the
condominium , including a or proposed condominium:
(1) The name and principal address of the declarant;
(2) The name and the address, legal description, or
other description of the location of the condominium, and the
number and types of units in the condominium;
(3) A general description of the condominium, including
to the extent possible, number and types of buildings,
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to the extent possible, number and types of buildings,
structures, and amenities the declarant is obligated to build,
and the declarant's schedule of commencement and completion of
construction of buildings, structures, and amenities the
declarant is obligated to include in the condominium;
(4) Copies of the declaration, as well as any recorded
plats, plans, easements, covenants, conditions, restrictions,
and reservations affecting the condominium; the certificate or
the proposed certificate of formation and the bylaws of the
association created or to be created to manage the
condominium, any rules or regulations of the association, a
copy of the lease for any leasehold condominium, copies of any
contracts and leases to be signed by purchasers at closing,
and copies of any contracts or leases that will or may be
subject to cancellation by the association under Section
35-8A-305;
(5) A projected budget for the association for at least
one year after the date or anticipated date of the first
conveyance to a purchaser, and thereafter the current budget
along with the current balance sheet of the association, a
statement of who prepared the budget, and a statement of the
budget's assumption concerning occupancy. The budget must
include, without limitation:
a. A statement of the amount, or a statement that there
is no amount, included in the budget as a reserve for repairs
and replacement;
b. A statement of any other reserves included in the
budget;
c. The projected common expenses by category of
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c. The projected common expenses by category of
expenditures for the association; and
d. The projected monthly common expense assessment for
each type of unit;
(6) Any services not reflected in the budget that the
declarant provides, or expenses that he or she pays, and that
he or she expects may become , at any subsequent time , a common
expense of the association and the projected common expense
assessment attributable to each of those services or expenses
for the association and for each type of unit;
(7) Any initial or special fee due from the purchaser
at closing together with a description of the purpose and
method of calculating the fee;
(8) A reference to, and a brief description of, any
liens, known defects, or encumbrances on or affecting the
title to the condominium;
(9) A description of any financing offered or arranged
by the declarant and , if the contract of sale offered to the
purchaser does not contain a provision conditioning
purchaser's obligation to perform the contract on obtaining
financing, a statement that the purchaser will forfeit any
deposit he or she has paid if the purchaser requires such
financing but does not qualify for such financing as is
offered or arranged by the declarant;
(10) The terms and significant limitations of any
warranties provided by the declarant, including statutory
warranties provided in this chapter and limitations on the
enforcement thereof or on damages;
(11) A statement that:
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(11) A statement that:
a. Within seven days after receipt of an offering
statement , a purchaser, before conveyance, may cancel any
contract for purchase of a unit from a declarant;
b. If a declarant fails to provide an offering
statement to a purchaser before conveying a unit, that
purchaser may rescind the conveyance within seven days after
first receiving the offering statement; and
c. If a purchaser receives the offering statement more
than seven days before signing a contract, he or she cannot
cancel the contract;
(12) A statement of any unsatisfied judgments or
pending lawsuits against the association ; and including the
status of any pending lawsuits material related to the
condominium of which that a declarant has actual knowledge is
aware of ;
(13) A statement that any deposit made in connection
with the purchase of a unit will be held in an escrow account
until closing and will be returned to the purchaser if the
purchaser cancels the contract pursuant to Section 35-8A-408,
together with the name and address of the escrow agent;
(14) Any restraints on sale or lease of any units in
the condominium and any restrictions:
a. On use, occupancy or alienation of the units ,; and
b. On the amount for which a unit may be sold or on the
amount that may be received by a unit owner on sale,
condemnation, casualty loss to the unit or to the condominium ,
or on the termination of the condominium;
(15) A brief description of the insurance coverage
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(15) A brief description of the insurance coverage
provided for the benefit of unit owners;
(16) Any current or expected fees or charges to be paid
by unit owners for the use of the common elements and other
facilities related to the condominium;
(17) The extent to which financial arrangements have
been provided for completion of all improvements that the
declarant is obligated to build pursuant to Section 35-8A-416
(Declarant's obligation to complete and restore) ;
(18) A brief narrative description of any zoning
affecting the condominium; and
(19) The applicable amendment requirements as provided
in the declaration or as provided by Alabama law.
(b) If a condominium composed of not more than 12 units
is not subject to any development rights, and no power is
reserved to a declarant to make the condominium part of a
larger condominium, group of condominiums, or other real
estate, an offering statement may , but need not , include the
information otherwise required by subdivisions (a) (9), (10),
(15), (16), (17), and (18) of subsection (a) .
(c) A declarant shall promptly amend the offering
statement to report fully and accurately disclose any material
change in the information required by this section."
"§35-8A-408
(a) A person required to deliver the required documents
or report pursuant to Section 35-8A-402(c) or 35-8A-407 shall
provide a purchaser of a unit with a copy of the offering
statement and all amendments thereto not later than the date
of any contract of sale. Unless a purchaser is given the
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of any contract of sale. Unless a purchaser is given the
required documents more than seven days before execution of a
contract for the purchase of a unit, the purchaser may cancel
the contract within seven days after first receiving the
required documents or report.
(b) If a purchaser elects to cancel a contract or
conveyance pursuant to subsection (a), he or she may do so by
hand-delivering notice thereof to the offeror or by mailing
notice thereof by prepaid United States mail to the offeror or
to his or her agent for service of process. Cancellation is
without penalty, and all payments made by the purchaser before
cancellation shall be refunded promptly.
(c) If a person required to deliver an offering
statement or report pursuant to Section 35-8A-402(c) or
35-8A-407 willfully fails to provide a purchaser to whom a
unit is conveyed with the documents required by subsection
(a), the purchaser, at the purchaser's option and in lieu of
in addition to any rights to damages or other relief, is
entitled to receive from that person an amount equal to five
percent of the sales price of the unit if the purchaser
provides notice of the election to that person in the same
manner as described in subsection (b) within six months of the
date of conveyance of the unit."
"§35-8A-414
If a declarant or any other person subject to this
chapter fails to comply with any provision hereof of this
chapter or any provision of the declaration or bylaws, any
person or class of persons adversely affected by the failure
to comply has a claim for actual damages or appropriate
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to comply has a claim for actual damages or appropriate
equitable relief , which may include . The court, in an
appropriate case, may award reasonable attorney's attorney
fees to either party ."
Section 2. This act shall become effective on October
1, 2026.
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