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5 Corp. & Bus. L.J. 1 (2024)

handle is hein.journals/cablj5 and id is 1 raw text is: 1 CORP. & Bus. L.J. Vol. 5: 1: 2024 AN UNREASONABLE EXPECTATION: DEFINING SUFFICIENT NOTICE IN AMENDING DECLARATIONS OF COVENANTS, CONDITIONS & RESTRICTIONS Edward Gao CONTENTS IN TR O D U C TIO N ................................................................................................. . . 3 I. THE HOMEOWNERS' ASSOCIATION AS A MECHANISM OF GOVERNING P R O PER TY R IG H T S .............................................................................................. . 4 A. CC&Rs: The Mechanism ofHOA Powers ............................................. 6 II. ARIZONA LAW ON AMENDING CC&RS ........................................................ 7 A . S ta tu tes ................................................................................................ . 8 B . C a se L a w ............................................................................................ . . 9 III. KALWAY V. CALABRIA RANCH HOA, LLC ............................................. 11 IV. SUBSEQUENT CASE LAW APPLYING KALWAY ........................................... 15 A. Cao v. PFP Dorsey Investments, LLC ................................................. 15 B. Vista Del Corazon Homeowners Association v. Smith ........................ 17 V . A B ETTER T E ST ......................................................................................... 19 A. Factor 1: N umerical M ajority ............................................................. 20 B . Factor 2: Voter Turnout ...................................................................... 20 C. Factor 3: Extrinsic Statutory Provisions ............................................. 21 D. Factor 4: A Reasonable Interference ................................................. 21 C O N C L U SIO N ................................................................................................. . . 2 2