Arizona law requires HOA directors to deal openly, fairly and always in good faith with members subject to the Covenants, Conditions, Restrictions, and Easements. (See A.R.S. 10-3830) Given a home owners' association owes a fiduciary duty of care to members of the association in administering fee assessments (See Divizio v. Kewin Enterprises, 666 P.2d 1085 (Ariz. App. Div. 2 (1983)), their pursuing an unconscionable judgment lien will trigger liability under Section 10-3830 and for common law breach of contract under the CCR&E. Furthermore, even if the HOA did obtain a judgment for any alleged violations, the judgment becomes a lien only upon sale of the property. (see A.R.S. 33-1807(for Planned Communities), 33-1256 (for condominiums).
Answered on Sep 07th, 2011 at 9:45 AM