RELATING TO MENTAL HEALTH.

2025 Regular Session Introduced by Henry Aquino and 7 co-sponsors

Senate Bill 323 updates Arkansas' Horizontal Property Act, clarifying ownership rights and management rules for condominiums, benefiting developers and property owners.

The committee on HHS deferred the measure.

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Overview

Senate Bill 323 (SB 323) is a legislative measure introduced in the Arkansas General Assembly aimed at amending the Horizontal Property Act. The bill seeks to clarify definitions and provisions related to property ownership and management within horizontal property regimes, which include condominiums and similar developments.

Main Purpose and Intent

The primary intent of SB 323 is to update and refine the legal framework governing horizontal property regimes in Arkansas. This includes enhancing clarity around the definitions of "apartment," "common elements," and "limited common elements," as well as establishing clearer guidelines for property management and ownership rights.

Key Provisions

The bill includes several significant amendments to the Arkansas Code, specifically § 18-13-102, which defines terms related to horizontal property regimes:

Definition of "Apartment":

Clarifies that an "apartment" can consist of one or more rooms designated for independent use, subject to a master deed.
Allows for further subdivision into additional units.

Common Elements:

Defines "general common elements" and "limited common elements," specifying what constitutes shared property and what is reserved for specific units.
Includes provisions for fixtures and installations that serve common areas.

Declarant Rights:

Introduces definitions for "declarant" and "development rights," outlining the rights of property developers to manage and modify property within the horizontal property regime.

Establishment of Horizontal Property Regimes:

Details the process for establishing a horizontal property regime through the recording of a master deed, which must be executed by all interested parties.

Who Would Be Affected

The bill primarily impacts:
- Property Developers: Those involved in creating and managing horizontal property regimes will need to adhere to the updated definitions and provisions.
- Property Owners: Current and prospective owners of apartments within these regimes will benefit from clearer definitions of their rights and responsibilities.
- Real Estate Professionals: Realtors, property managers, and legal professionals will need to familiarize themselves with the changes to effectively advise clients.

Procedural Aspects and Timeline

Introduced: February 26, 2025

Committee Actions: The bill was referred to the Committee on Insurance & Commerce and underwent several readings and amendments before being passed.

Final Actions: SB 323 was reported correctly enrolled and delivered to the Governor on April 8, 2025, and subsequently became Act 516 on April 10, 2025.

Conclusion

Senate Bill 323 represents a significant update to the Horizontal Property Act in Arkansas, aiming to provide clearer guidelines for property ownership and management in horizontal property regimes. By refining definitions and establishing clearer rights for property owners and developers, the bill seeks to enhance the legal framework governing these types of properties.

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