HB1222: HB1222 Property; regulation of specialized land transactions; provide issuance of statements of accounts

26 LC 62 0384S The House Committee on Regulated Industries offers the following substitute to HB 1222: A BILL TO BE ENTITLED AN ACT To amend Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to1 regulation of specialized land transactions, so as to provide for the issuance of statements of2 accounts; to provide for information required in and the manner of requesting and providing3 such statements; to provide for the effect of failure to furnis h such statements as required;4 to amend Code Section 44-14-15 of the Official Code of Georgia Annotated, relating to fee5 for a future conveyance and limited circumstances relative to property, so as to provide for6 a cross-reference; to provide for a definition; to provide for related matters; to provide for7 applicability; to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 Chapter 3 of Title 44 of the Official Code of Georgia Annotated , relating to regulation of11 specialized land transactions, is amended in Article 3, the "Georgia Condominium Act," by12 revising subsection (e) of Code Section 44-3-80, relating to al location of and liability for13 common expenses and how assessments made, as follows:14 "(e) Unless otherwise provided in the condominium instruments and except as provided15 in subsection (f) of this Code section, the grantee in a conveyance of a condominium unit16 H. B. 1222 (SUB) - 1 - 26 LC 62 0384S shall be jointly and severally liable with the grantor thereof for all unpaid assessments17 against the latter up to the time of the conveyance without prejudice to the grantee's right18 to recover from the grantor the amounts paid by the grantee therefor; provided, however,19 that, if the grantor or grantee shall request a statement from the association as provided in20 Code Section 44-3-109 44-3-109.1 , such grantee and his or her successors,21 successors-in-title, and assigns shall not be liable for nor sh all the condominium unit22 conveyed be subject to a lien for any unpaid assessments against such grantor in excess of23 any amount set forth in the statement."24 SECTION 2.25 Said chapter is further amended in said article by revising sub sections (d) and (e) of Code26 Section 44-3-109, relating to lien for assessments, personal obligation of unit owner, notice27 and foreclosure, lapse, right to statement of assessments, and effect to failure to furnish28 statement, as follows:29 "(d) Any unit owner, mortgagee of a unit, person having execute d a contract for the30 purchase of a condominium unit, or lender considering the loan of funds to be secured by31 a condominium unit shall be entitled upon request to a statement from the association or32 its management agent setting forth the amount of assessments past due and unpaid together33 with late charges and interest applicable thereto against that condominium unit. Such34 request shall be in writing, shall be delivered to the registered office of the association, and35 shall state an address to which the statement is to be directed . Failure on the part of the36 association to mail or otherwise furnish such statement regarding amounts due and payable37 at the expiration of such five-day period with respect to the condominium unit involved to38 such address as may be specified in the written request therefor within five business days39 from the receipt of such request shall cause the lien for assessments created by this Code40 section to be extinguished and of no further force or effect as to the title or interest acquired41 by the purchaser or lender, if any, as the case may be, and their respective successors and42 H. B. 1222 (SUB) - 2 - 26 LC 62 0384S assigns, in the transaction contemplated in connection with such request. The information43 specified in such statement shall be binding upon the associati on and upon every unit44 owner. Payment of a fee not e xceeding $10.00 may be required as a prerequisite to the45 issuance of such a statement if the condominium instruments so provided.46 (e) Nothing in this Code section shall be construed to prohibit a ctions maintainable47 pursuant to Code Section 44-3-76 to recover sums for which subs ection (a) of this Code48 section creates a lien."49 SECTION 3.50 Said chapter is further amended in said article by adding a new Code section to read as51 follows:52 "44-3-109.1.53 (a) Within ten business days after receiving a written or electronic request for a statement54 of account from a unit owner or the unit owner's designee, a mo rtgage lender, or a55 mortgagee of a lot or the designee of such mortgagee of a lot, the association shall issue a56 statement of account as provided for in this Code section. A r equest for a statement of57 account shall be considered received at the time it is sent if transmitted by electronic means58 or by hand delivery, within three days if transmitted by first-class mail, and upon delivery59 if transmitted by statutory overnight delivery.60 (b) Each association shall designate on its public website or otherwise publish the name61 of a person or entity with a street or email address for receipt of a request for a statement62 of account. A statement of account may be prepared and issued by an officer, authorized63 agent, or authorized representative of the association, includi ng any authorized agent,64 authorized representative, or employee of a management company authorized to complete65 the statement of account on behalf of the board or association. The statement of account66 shall be provided by email, electronic download, hand delivery, first-class mail, or statutory67 overnight delivery to the requester on the date of its issuance.68 H. B. 1222 (SUB) - 3 - 26 LC 62 0384S (c) A statement of account as provided for in this Code sectio n shall contain all of the69 following information regarding the property for which the transaction is to occur:70 (1) Date of issuance;71 (2) Name of the unit owner or owners as reflected in the books and records of the72 association;73 (3) Unit designation and address;74 (4) Assigned parking or garage space number, as reflected in the books and records of75 the association, as applicable;76 (5) Attorney's name and contact information if the account is delinquent and has been77 turned over to an attorney for collection;78 (6) Name of the requester;79 (7) Assessment information and other information:80 (A) The amount of the regular periodic assessment levied again st the unit and the81 frequency of such assessment;82 (B) The date through which the regular periodic assessments have been paid;83 (C) The due date for the next installment of the regular perio dic assessment and the84 amount due;85 (D) An itemized list of all assessments, special assessments, and other moneys owed86 to the association for the unit as of the date of issuance of the statement of account; and87 (E) An itemized list of any additional assessments, special as sessments, and other88 moneys that are scheduled to become due for each day after the date of issuance for the89 effective period of the statement of account. In calculating t he amounts that are90 scheduled to become due, the association may assume that any delinquent amounts will91 remain delinquent during the effective period of the statement of account; and92 (8) Additional information:93 (A) Any open violation of any rule or regulation notice to the unit owner in the94 association's official records;95 H. B. 1222 (SUB) - 4 - 26 LC 62 0384S (B) A list of and contact information for all other associations of which the unit owner96 is a member by virtue of ownership of the unit;97 (C) A copy of the current covenants and bylaws of the association and a copy of the98 rules and regulations adopted by the association;99 (D) A copy of the association's certificate of insurance for any insurance provided by100 the association for the lot or the name, address, email address, and telephone number101 of the association's insurance provider of any such insurance; and102 (E) The signature of an officer or authorized agent of the association.103 (d) A statement of account issued pursuant to this Code sectio n shall have a 30 day104 effective period. If additional information is needed or a mistake related to the statement105 of account becomes known to the association or its authorized agent within the effective106 period, an amended statement of account may be delivered and become effective if a sale107 or refinancing of the unit has not been completed during such e ffective period. An108 amended statement of account shall be delivered on the date of issuance and a new 30 day109 effective period shall begin on such date.110 (e) An association waives the right to collect any moneys owed in excess of the amounts111 specified in the statement of account from any person and such person's successors or112 assigns who in good faith rely upon such statement of account.113 (f) If the association or its authorized agent fails to disclose in the statement of account the114 correct amount of an assessment, a special assessment, or other moneys owed to the115 association, the purchaser of the unit shall not be obligated to pay the incorrectly disclosed116 amount and any lien for the incorrectly disclosed amount owed to the association shall be117 extinguished.118 (g)(1) An association's authorized agent may charge the association a reasonable fee for119 the preparation and issuance of a statement of account which shall not exceed $250.00.120 H. B. 1222 (SUB) - 5 - 26 LC 62 0384S (2) If a statement of account is requested on an expedited basis and issued within three121 business days after the request, the association's authorized a gent may charge the122 association an additional fee of $50.00.123 (3) Neither the association nor its authorized agent shall cha rge the requester of a124 statement of account pursuant to this Code section any fees ass ociated with the125 preparation and issuance of the statement of account as provided for in this Code section."126 SECTION 4.127 Said chapter is further amended in Article 6, the "Georgia Prop erty Owners' Association128 Act," by revising subsection (c) of Code Section 44-3-225, rela ting to assessment of129 expenses, exemption from liability, and liability for unpaid assessments, as follows:130 "(c) Unless otherwise provided in the instrument and except as provided in subsection (d)131 of this Code section, the grantee in a conveyance of a lot shal l be jointly and severally132 liable with the grantor thereof for all unpaid assessments against the latter up to the time133 of the conveyance without prejudice to the grantee's right to recover from the grantor the134 amounts paid by the grantee; provided, however, that, if the grantor or grantee shall request135 a statement from the association as provided in subsection (d) of Code Section 44-3-232136 Code Section 44-3-232.2, such grantee and his or her successors, successors-in-title, and137 assigns shall not be liable for nor shall the property owners' association lot conveyed be138 subject to a lien for any unpaid assessments against such grantor in excess of any amount139 set forth in the statement."140 SECTION 5.141 Said chapter is further amended in said article by revising Code Section 44-3-232, relating142 to assessments against lot owners as constituting lien in favor of association, additional143 charges against lot owners, procedure for foreclosing lien, and obligation to provide144 statement of amounts due, as follows:145 H. B. 1222 (SUB) - 6 - 26 LC 62 0384S "(d) Any lot owner, mortgagee of a lot, person having executed a contract for the purchase146 of a lot, or lender considering the loan of funds to be secured by a lot shall be entitled upon147 request to a statement from the association or its management a gent setting forth the148 amount of assessments past due and unpaid together with late ch arges and interest149 applicable thereto against that lot. Such request shall be in writing, shall be delivered to150 the registered office of the association, and shall state an address to which the statement is151 to be directed. Failure on the part of the association, within five business days from the152 receipt of such request, to mail or otherwise furnish such statement regarding amounts due153 and payable at the expiration of such five-day period with resp ect to the lot involved to154 such address as may be specified in the written request therefo r shall cause the lien for155 assessments created by this Code section to be extinguished and of no further force or156 effect as to the title or interest acquired by the purchaser or lender, if any, as the case may157 be, and their respective successors and assigns, in the transac tion contemplated in158 connection with such request. The information specified in such statement shall be binding159 upon the association and upon every lot owner. Payment of a fe e not exceeding $10.00160 may be required as a prerequisite to the issuance of such a statement if the instrument so161 provides.162 (e) Nothing in this Code section shall be construed to prohibit a ctions maintainable163 pursuant to Code Section 44-3-223 to recover sums for which subsection (a) of this Code164 section creates a lien."165 SECTION 6.166 Said chapter is further amended in said article by adding a new Code section to read as167 follows:168 "44-3-232.2.169 (a) Within ten business days after receiving a written or electronic request for a statement170 of account from a lot owner or the lot owner's designee, a mortgage lender, or a mortgagee171 H. B. 1222 (SUB) - 7 - 26 LC 62 0384S of a lot or the designee of such mortgagee of a lot, the association shall issue a statement172 of account as provided for in this Code section. A request for a statement of account shall173 be considered received at the time it is sent if transmitted by electronic means or by hand174 delivery, within three days if transmitted by first-class mail, and upon delivery if175 transmitted by statutory overnight delivery.176 (b) Each association shall designate on its public website or otherwise publish the name177 of a person or entity with a street or email address for receipt of a request for a statement178 of account. A statement of account may be prepared and issued by an officer, authorized179 agent, or authorized representative of the association, includi ng any authorized agent,180 authorized representative, or employee of a management company authorized to complete181 the statement of account on behalf of the board or association. The statement of account182 shall be provided by email, electronic download, hand delivery, first-class mail, or statutory183 overnight delivery to the requester on the date of its issuance.184 (c) A statement of account as provided for in this Code sectio n shall contain all of the185 following information regarding the property for which the transaction is to occur:186 (1) Date of issuance;187 (2) Name of the lot owner or owners as reflected in the books and records of the188 association;189 (3) Lot designation and address;190 (4) Assigned parking or garage space number, as reflected in the books and records of191 the association, as applicable;192 (5) Attorney's name and contact information if the account is delinquent and has been193 turned over to an attorney for collection;194 (6) Name of the requester;195 (7) Assessment information and other information:196 (A) The amount of the regular periodic assessment levied again st the lot and the197 frequency of such assessment;198 H. B. 1222 (SUB) - 8 - 26 LC 62 0384S (B) The date through which the regular periodic assessments have been paid;199 (C) The due date for the next installment of the regular perio dic assessment and the200 amount due;201 (D) An itemized list of all assessments, special assessments, and other moneys owed202 to the association for the lot as of the date of issuance of the statement of account; and203 (E) An itemized list of any additional assessments, special as sessments, and other204 moneys that are scheduled to become due for each day after the date of issuance for the205 effective period of the statement of account. In calculating t he amounts that are206 scheduled to become due, the association may assume that any delinquent amounts will207 remain delinquent during the effective period of the statement of account; and208 (8) Additional information:209 (A) Any open violation of any rule or regulation notice to the l o t o w n e r i n t h e210 association's official records;211 (B) A list of and contact information for all other associations of which the lot owner212 is a member by virtue of ownership of the lot;213 (C) A copy of the current covenants and bylaws of the association and a copy of the214 rules and regulations adopted by the association;215 (D) A copy of the association's certificate of insurance for any insurance provided by216 the association for the lot or the name, address, email address, and telephone number217 of the association's insurance provider of any such insurance; and218 (E) The signature of an officer or authorized agent of the association.219 (d) A statement of account issued pursuant to this Code sectio n shall have a 30 day220 effective period. If additional information is needed or a mistake related to the statement221 of account becomes known to the association or its authorized agent within the effective222 period, an amended statement of account may be delivered and become effective if a sale223 or refinancing of the lot has not been completed during such effective period. An amended224 H. B. 1222 (SUB) - 9 - 26 LC 62 0384S statement of account shall be delivered on the date of issuance and a new 30 day effective225 period shall begin on such date.226 (e) An association waives the right to collect any moneys owed in excess of the amounts227 specified in the statement of account from any person and such person's successors or228 assigns who in good faith rely upon such statement of account.229 (f) If the association or its authorized agent fails to disclose in the statement of account the230 correct amount of an assessment, a special assessment, or other moneys owed to the231 association, the purchaser of the lot shall not be obligated to pay the incorrectly disclosed232 amount and any lien for the incorrectly disclosed amount owed to the association shall be233 extinguished.234 (g)(1) An association's authorized agent may charge the association a reasonable fee for235 the preparation and issuance of a statement of account which shall not exceed $250.00.236 (2) If a statement of account is requested on an expedited basis and issued within three237 business days after the request, the association's authorized a gent may charge the238 association an additional fee of $50.00.239 (3) Neither the association nor its authorized agent shall cha rge the requester of a240 statement of account pursuant to this Code section any fees ass ociated with the241 preparation and issuance of the statement of account as provided for in this Code section."242 SECTION 7.243 Said chapter is further amended in Article 7, relating to devel oper management of certain244 associations, by adding a new Code Section to read as follows:245 "44-3-251.246 (a)(1) As used in this Code section, the term 'association' me ans a corporation or247 voluntary entity formed for the purpose of exercising the powe rs of a homeowners'248 association or property owners' association governing a common interest community that249 is not subject to Article 3 or 6 of this chapter.250 H. B. 1222 (SUB) - 10 - 26 LC 62 0384S (2) This Code section shall apply to a common interest community subject to covenants251 restricting land to certain uses affecting planned subdivisions containing no fewer than 15252 individual lots and requiring mandatory assessment payments to an association governing253 such subdivision, which subdivision is not subject to Article 3 or 6 of this chapter.254 (b) Within ten business days after receiving a written or electronic request for a statement255 of account from a lot owner or the lot owner's designee, a mortgage lender, or a mortgagee256 of a lot or the designee of such mortgagee of a lot, the association shall issue a statement257 of account as provided for in this Code section. A request for a statement of account shall258 be considered received at the time it is sent if transmitted by electronic means or by hand259 delivery, within three days if transmitted by first-class mail, and upon delivery if260 transmitted by statutory overnight delivery.261 (c) Each association shall designate on its public website or otherwise publish the name262 of a person or entity with a street or email address for receipt of a request for a statement263 of account. A statement of account may be prepared and issued by an officer, authorized264 agent, or authorized representative of the association, includi ng any authorized agent,265 authorized representative, or employee of a management company authorized to complete266 the statement of account on behalf of the board or association. The statement of account267 shall be provided by email, electronic download, hand delivery, first-class mail, or statutory268 overnight delivery to the requester on the date of its issuance.269 (d) A statement of account as provided for in this Code sectio n shall contain all of the270 following information regarding the property for which the transaction is to occur:271 (1) Date of issuance;272 (2) Name of the lot owner or owners as reflected in the books and records of the273 association;274 (3) Lot designation and address;275 (4) Assigned parking or garage space number, as reflected in the books and records of276 the association, as applicable;277 H. B. 1222 (SUB) - 11 - 26 LC 62 0384S (5) Attorney's name and contact information if the account is delinquent and has been278 turned over to an attorney for collection;279 (6) Name of the requester;280 (7) Assessment information and other information:281 (A) The amount of the regular periodic assessment levied again st the lot and the282 frequency of such assessment;283 (B) The date through which the regular periodic assessments have been paid;284 (C) The due date for the next installment of the regular perio dic assessment and the285 amount due;286 (D) An itemized list of all assessments, special assessments, and other moneys owed287 to the association for the lot as of the date of issuance of the statement of account; and288 (E) An itemized list of any additional assessments, special as sessments, and other289 moneys that are scheduled to become due for each day after the date of issuance for the290 effective period of the statement of account. In calculating t he amounts that are291 scheduled to become due, the association may assume that any delinquent amounts will292 remain delinquent during the effective period of the statement of account; and293 (8) Additional information:294 (A) Any open violation of any rule or regulation notice to the l o t o w n e r i n t h e295 association's official records;296 (B) A list of and contact information for all other associations of which the lot owner297 is a member by virtue of ownership of the lot;298 (C) A copy of the current covenants and bylaws of the associat ion and a copy of the299 rules and regulations adopted by the association;300 (D) A copy of the association's certificate of insurance for any insurance provided by301 the association for the lot or the name, address, email address, and telephone number302 of the association's insurance provider of any such insurance; and303 (E) The signature of an officer or authorized agent of the association.304 H. B. 1222 (SUB) - 12 - 26 LC 62 0384S (d) A statement of account issued pursuant to this Code sectio n shall have a 30 day305 effective period. If additional information is needed or a mistake related to the statement306 of account becomes known to the association or its authorized agent within the effective307 period, an amended statement of account may be delivered and become effective if a sale308 or refinancing of the lot has not been completed during such effective period. An amended309 statement of account shall be delivered on the date of issuance and a new 30 day effective310 period shall begin on such date.311 (e) An association waives the right to collect any moneys owed in excess of the amounts312 specified in the statement of account from any person and such person's successors or313 assigns who in good faith rely upon such statement of account.314 (f) If the association or its authorized agent fails to disclose in the statement of account the315 correct amount of an assessment, a special assessment, or other moneys owed to the316 association, the purchaser of the lot shall not be obligated to pay the incorrectly disclosed317 amount and any lien for the incorrectly disclosed amount owed to the association shall be318 extinguished.319 (g)(1) An association's authorized agent may charge the association a reasonable fee for320 the preparation and issuance of a statement of account which shall not exceed $250.00.321 (2) If a statement of account is requested on an expedited basis and issued within three322 business days after the request, the association's authorized a gent may charge the323 association an additional fee of $50.00.324 (3) Neither the association nor its authorized agent shall cha rge the requester of a325 statement of account pursuant to this Code section any fees ass ociated with the326 preparation and issuance of the statement of account as provided for in this Code section."327 H. B. 1222 (SUB) - 13 - 26 LC 62 0384S SECTION 8.328 Code Section 44-14-15 of the Official Code of Georgia Annotated, relating to fee for a future329 conveyance and limited circumstances relative to property, is a mended by revising330 paragraph (3) of subsection (c) as follows:331 "(3) A property owners' association formed for the purposes of exercising the powers of332 an association of property owners that has not been formed pursuant to or which has not333 adopted the provisions of Article 6 of Chapter 3 of this title, the 'Georgia Property334 Owners' Association Act,' provided that such association shall comply with subsection335 (d) of Code Section 44-3-232 44-3-232.2;"336 SECTION 9.337 This Act shall not apply to contracts entered into prior to July 1, 2026, before the expiration338 or first renewal of such contract.339 SECTION 10.340 All laws and parts of laws in conflict with this Act are repealed.341 H. B. 1222 (SUB) - 14 -