Amended in Assembly March 20, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2430


Introduced by Assembly Member Maienschein

February 21, 2014


An act to amendbegin delete Sectionend deletebegin insert Sectionend insertbegin inserts 4528 andend insert 4530 of the Civil Code, relating to common interest developments.

LEGISLATIVE COUNSEL’S DIGEST

AB 2430, as amended, Maienschein. Transfer disclosures.

The Davis-Stirling Common Interest Development Act requires an association, upon written request, to provide the owner of a separate interest, or a recipient authorized by the owner, with a copy of specific documents relating to transfer disclosures that the owner is required to make to a prospective purchaser of the owner’s separate interest. That act authorizes the association to collect a reasonable cost for delivery of those documents but prohibits any additional fees for electronic delivery.

This bill wouldbegin delete make technical, nonsubstantive changes to this provision.end deletebegin insert require the cost for providing the required documents to be separately stated and billed from other charges that are part of the transfer or sales transaction and would make conforming changes to a codified form. This bill would also require a seller to be responsible for paying the cost for providing documents under these provisions and to provide a prospective purchaser with required documents the seller possesses free of charge. This bill would prohibit a seller from giving a prospective purchaser the required documents bundled with other documents.end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION end insertbegin insert1.end insert  

end insert

begin insertSection 4528 of the end insertbegin insertCivil Codeend insertbegin insert is amended to
2read:end insert

3

4528.  

The form for billing disclosures required by Section
44530 shall be in at least 10-point type and substantially the
5following form:

6

 

CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*

 
 

Property Address

 

Owner of Property

 

Owner’s Mailing Address (If known or different from property address.)

 
 

Provider of the Section 4525 Items:

 
 
 

Print Name _________ Position or Title _________ Association or Agent

 
Date Form Completed

 

 

Check or Complete Applicable Column or Columns Below

 
   

Not Available
(N/A)begin delete orend deletebegin insert,end insert Not
Applicable
(N/App)begin insert, or Directly Provided by Seller (DP)end insert

Document

Civil Code Section Included

begin insert

Fee for Document

end insert
    

Articles of Incorporation or statement that not incorporated

Section 4525(a)(1)

  
    

CC&Rs

Section 4525(a)(1)

  
    

Bylaws

Section 4525(a)(1)

  
    

Operating Rules

Section 4525(a)(1)

  
    

Age restrictions, if any

Section 4525(a)(2)

  

Rental restrictions, if any

Section 4525(a)(9)

  

Annual budget report or summary, including reserve study

Sections 5300 and 4525(a)(3)

  
    

Assessment and reserve funding disclosure summary

Sections 5300 and 4525(a)(4)

  
    

Financial statement review

Sections 5305 and 4525(a)(3)

  
    

Assessment enforcement policy

Sections 5310 and 4525(a)(4)

  
    

Insurance summary

Sections 5300 and 4525(a)(3)

  
    

Regular assessment

Section 4525(a)(4)

  
    

Special assessment

Section 4525(a)(4)

  
    

Emergency assessment

Section 4525(a)(4)

  
    

Other unpaid obligations of seller

Sections 5675 and 4525(a)(4)

  
    

Approved changes to assessments

Sections 5300 and 4525(a)(4), (8)

  
    

Settlement notice regarding common area defects

Sections 4525(a)(6), (7), and 6100

  
    

Preliminary list of defects

Sections 4525(a)(6), 6000, and 6100

  
    

Notice(s) of violation

Sections 5855 and 4525(a)(5)

  
    

Required statement of fees

Section 4525

  
    

Minutes of regular board meetings conducted over the previous 12 months, if requested

Section 4525(a)(10)

  
    

Total fees for these documents:

    

* The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525begin delete mayend deletebegin insert shallend insert be charged separately.

 

25

begin deleteSECTION 1.end delete
26begin insertSEC. 2.end insert  

Section 4530 of the Civil Code is amended to read:

27

4530.  

(a) (1) Upon written request, the association shall,
28within 10 days of the mailing or delivery of the request, provide
29the owner of a separate interest, or any other recipient authorized
30by the owner, with a copy of all of the requested documents
31specified in Section 4525.

32(2) The documents required to be made available pursuant to
33this section may be maintained in electronic form, and may be
34posted on the association’s Internet Web site. Requesting parties
35shall have the option of receiving the documents by electronic
36transmission if the association maintains the documents in
37electronic form.

38(3) Delivery of the documents required by this section shall not
39be withheld for any reason nor subject to any condition except the
40payment of the fee authorized pursuant to subdivision (b).

P5    1(b) (1) The association may collect a reasonable feebegin insert from the
2sellerend insert
based upon thebegin delete association’send delete actual cost for the procurement,
3preparation, reproduction, and delivery of the documents requested
4pursuant to this section.begin delete The association shall not charge additionalend delete
5begin insert Additionalend insert feesbegin insert shall not be chargedend insert for the electronic delivery of
6the documents requested.

7(2) Upon receipt of a written request, the association shall
8provide, on the form described in Section 4528, a written or
9electronic estimate of the fees that will be assessed for providing
10the requested documents.

11(3) (A) A cancellation fee for documents specified in
12subdivision (a) shall not be collected if either of the following
13applies:

14(i) The request was canceled in writing by the same party that
15placed the order and work had not yet been performed on the order.

16(ii) The request was canceled in writing and any work that had
17been performed on the order was compensated.

18(B) The association shall refund all fees collected pursuant to
19paragraph (1) if the request was canceled in writing and work had
20not yet been performed on the order.

21(C) If the request was canceled in writing, the association shall
22refund the share of fees collected pursuant to paragraph (1) that
23represents the portion of the work not performed on the order.

24(4) Fees for any documents required by this section shall be
25distinguished frombegin insert, separately stated, and separately billed from,
26allend insert
other fees, fines, or assessments billed as part of the transfer
27or sales transaction.

begin insert

28(5) Any documents not expressly required by Section 4525 to
29be provided to a prospective purchaser by the seller shall not be
30included in the document disclosure required by this section.
31Bundling of documents required to be provided pursuant to this
32section with other documents relating to the transaction is
33prohibited.

end insert
begin insert

34(6) A seller shall provide to the prospective purchaser, at no
35cost, copies of any documents specified by Section 4525 that are
36in the possession of the seller.

end insert
begin insert

37(7) The fee for each document provided to the seller for the
38purpose of transmission to the prospective purchaser shall be
39individually itemized in the statement required to be provided by
40the seller to the prospective purchaser.

end insert
begin insert

P6    1(8) It is the responsibility of the seller to compensate the
2association, person, or entity that provides the documents required
3to be provided by Section 4525 to the prospective purchaser.

end insert

4(c) An association may contract with any person or entity to
5facilitate compliance with this section on behalf of the association.

6(d) The association shall also provide a recipient authorized by
7the owner of a separate interest with a copy of the completed form
8specified in Section 4528 at the time the required documents are
9delivered.



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