HB374 Alabama 2017 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Chris EnglandRepresentative
Democrat
Session: Regular Session 2017
Title: Property, Uniform Condo Act, rights to developers and owners, specified, procedures for creation and management, Secs. 35-8A-102, 35-8A-103, 35-8A-105, 35-8A-106, 35-8A-107, 35-8A-201, 35-8A-205, 35-8A-208, 35-8A-209, 35-8A-210, 35-8A-211, 35-8A-214, 35-8A-215, 35-8A-218, 35-8A-220, 35-8A-302, 35-8A-303, 35-8A-304, 35-8A-305, 35-8A-307, 35-8A-310, 35-8A-311, 35-8A-312, 35-8A-313, 35-8A-314, 35-8A-315, 35-8A-316, 35-8A-317, 35-8A-318, 35-8A-401, 35-8A-402, 35-8A-403, 35-8A-404, 35-8A-406, 35-8A-407, 35-8A-408, 35-8A-409, 35-8A-411, 35-8A-412, 35-8A-413, 35-8A-415, 35-8A-417 am'd.
Summary: HB374 updates the Uniform Condominium Act to better define the rights of developers and unit owners in Alabama condominiums.
What This Bill Does
It tightens and broadens rules for creation, management, and termination of condominiums, including clarifying developers' and unit owners' rights. It clarifies development rights, special declarant rights, allocated interests, and how these change when units are created, subdivided, or withdrawn, and it sets how control of the association transitions from declarant to unit owners. It strengthens disclosure and protections for buyers through offering statements, remedies if not provided, and more detailed financial and insurance information; it also outlines duties around budgets, reserves, and insurance. It updates governance relationships with master associations, and reorganizes procedures for termination, sale of common elements, and distribution of proceeds after damage or termination, with the act taking effect January 1, 2018.

Who It Affects
Unit owners (purchasers of condominium units): see changes to governance, budgeting, disclosures, insurance, and how development rights and reallocations affect their rights and responsibilities.
Developers/declarants (the party controlling the condominium's creation and early management): gain/clarify development rights and special declarant rights, during declarant control, and governance and financial responsibilities.

Key Provisions
Defines and clarifies key terms such as affiliate of a declarant, allocated interests, common elements, development rights, and special declarant rights, and requires amendments when reallocations occur.
Specifies how development rights may be reserved, exercised, subdivided, converted, or withdrawn, and how those rights affect unit ownership and allocations.
Sets a transition plan from declarant control to unit-owner control, requiring non-declarant unit owners to elect a majority of the board after certain conveyance milestones (25% and 50% of units) and limiting declarant control duration.
Enhances offering statements and buyer protections, requiring delivery of offering statements before conveyance and providing remedies if they are not provided (including penalties) and mandating ongoing disclosures about budgets, reserves, insurance, liens, and pending suits.
Creates rules for master associations, delegation of powers, and limits on board liability for actions of a master association; clarifies that unit owners' rights under the act apply to master associations.
Updates termination rules for condominiums, including 80% voting requirements (or higher as the declaration provides) and details on selling or distributing assets after termination; addresses occupancy and liens during termination.
Mandates insurance requirements for common elements and liability, how proceeds are handled, and the obligation to repair or rebuild after damage, including distribution of proceeds.
Requires plats, plans, and related records to be certified by independent professionals and governs additions or withdrawals of real estate from the condominium, including certificates of substantial completion before conveyance.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Property, Real and Personal