Senate Bill No. 734

Introduced by Senator Walters

February 22, 2013

An act to amend Section 1351 of the Civil Code, relating to common interest developments.

LEGISLATIVE COUNSEL’S DIGEST

SB 734, as introduced, Walters. Common interest developments.

The Davis-Stirling Common Interest Development Act defines and regulates common interest developments, which include community apartment projects, condominium projects, planned developments, and stock cooperatives. That act defines terms for its purposes.

This bill would make nonsubstantive changes to that definition provision.

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

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

SECTION 1.  

Section 1351 of the Civil Code is amended to
read:

1351.  

As used in this title begin delete , the following terms have the
following meanings end delete :

(a) “Association” means a nonprofit corporation or
unincorporated association created for the purpose of managing a
common interest development.

(b) “Common area” means the entire common interest
development except the separate interests therein. The estate in
the common area may be a fee, a life estate, an estate for years, or
any combination of the foregoing. However, the common area for
a planned development specified in paragraph (2) of subdivision
(k) may consist of mutual or reciprocal easement rights appurtenant
to the separate interests.

(c) “Common interest development” means any of the following:

(1) A community apartment project.

(2) A condominium project.

(3) A planned development.

(4) A stock cooperative.

(d) “Community apartment project” means a development in
which an undivided interest in land is coupled with the right of
exclusive occupancy of any apartment located thereon.

(e) “Condominium plan” means a plan consisting of (1) a
description or survey map of a condominium project, which shall
refer to or show monumentation on the ground, (2) a
three-dimensional description of a condominium project, one or
more dimensions of which may extend for an indefinite distance
upwards or downwards, in sufficient detail to identify the common
areas and each separate interest, and (3) a certificate consenting
to the recordation of the condominium plan pursuant to this title
signed and acknowledged by the following:

(A) The record owner of fee title to that property included in
the condominium project.

(B) In the case of a condominium project begin delete which end delete begin insert that end insert will
terminate upon the termination of an estate for years, the certificate
shall be signed and acknowledged by all lessors and lessees of the
estate for years.

(C) In the case of a condominium project subject to a life estate,
the certificate shall be signed and acknowledged by all life tenants
and remainder interests.

(D) The certificate shall also be signed and acknowledged by
either the trustee or the beneficiary of each recorded deed of trust,
and the mortgagee of each recorded mortgage encumbering the
property.

Owners of mineral rights, easements, rights-of-way, and other
nonpossessory interests do not need to sign the condominium plan.
Further, begin delete in the event end delete begin insert if end insert a conversion to condominiums of a
community apartment project or stock cooperative has been
approved by the required number of owners, trustees, beneficiaries,
and mortgagees pursuant to Section 66452.10 of the Government
Code, the certificate need only be signed by those owners, trustees,
beneficiaries, and mortgagees approving the conversion.

A condominium plan may be amended or revoked by a
subsequently acknowledged recorded instrument executed by all
the persons whose signatures would be required pursuant to this
subdivision.

(f) A “condominium project” means a development consisting
of condominiums. A condominium consists of an undivided interest
in common in a portion of real property coupled with a separate
interest in space called a unit, the boundaries of which are described
on a recorded final map, parcel map, or condominium plan in
sufficient detail to locate all boundaries thereof. The area within
these boundaries may be filled with air, earth, or water, or any
combination thereof, and need not be physically attached to land
except by easements for access and, if necessary, support. The
description of the unit may refer to (1) boundaries described in the
recorded final map, parcel map, or condominium plan, (2) physical
boundaries, either in existence, or to be constructed, such as walls,
floors, and ceilings of a structure or any portion thereof, (3) an
entire structure containing one or more units, or (4) any
combination thereof. The portion or portions of the real property
held in undivided interest may be all of the real property, except
for the separate interests, or may include a particular
three-dimensional portion thereof, the boundaries of which are
described on a recorded final map, parcel map, or condominium
plan. The area within these boundaries may be filled with air, earth,
or water, or any combination thereof, and need not be physically
attached to land except by easements for access and, if necessary,
support. An individual condominium within a condominium project
may include, in addition, a separate interest in other portions of
the real property.

(g) “Declarant” means the person or group of persons designated
in the declaration as declarant, or if no declarant is designated, the
person or group of persons who sign the original declaration or
who succeed to special rights, preferences, or privileges designated
in the declaration as belonging to the signator of the original
declaration.

(h) “Declaration” means the document, however denominated,
begin delete which end delete begin insert that end insert contains the information required by Section 1353.

(i) “Exclusive use common area” means a portion of the
common areas designated by the declaration for the exclusive use
of one or more, but fewer than all, of the owners of the separate
interests and which is or will be appurtenant to the separate interest
or interests.

(1) Unless the declaration otherwise provides, any shutters,
awnings, window boxes, doorsteps, stoops, porches, balconies,
patios, exterior doors, doorframes, and hardware incident thereto,
screens and windows or other fixtures designed to serve a single
separate interest, but located outside the boundaries of the separate
interest, are exclusive use common areas allocated exclusively to
that separate interest.

(2) Notwithstanding the provisions of the declaration, internal
and external telephone wiring designed to serve a single separate
interest, but located outside the boundaries of the separate interest,
are exclusive use common areas allocated exclusively to that
separate interest.

(j) “Governing documents” means the declaration and any other
documents, such as bylaws, operating rules of the association,
articles of incorporation, or articles of association, which govern
the operation of the common interest development or association.

(k) “Planned development” means a development begin delete (other end delete begin insert , other end insert
than a community apartment project, a condominium project, or
a stock begin delete cooperative) end delete begin insert cooperative, end insert having either or both of the
following features:

(1) The common area is owned either by an association or in
common by the owners of the separate interests who possess
appurtenant rights to the beneficial use and enjoyment of the
common area.

(2) A power exists in the association to enforce an obligation
of an owner of a separate interest with respect to the beneficial use
and enjoyment of the common area by means of an assessment
begin delete which end delete begin insert that end insert may become a lien upon the separate interests in
accordance with Section 1367 or 1367.1.

(l) “Separate interest” has the following meanings:

(1) In a community apartment project, “separate interest” means
the exclusive right to occupy an apartment, as specified in
subdivision (d).

(2) In a condominium project, “separate interest” means an
individual unit, as specified in subdivision (f).

(3) In a planned development, “separate interest” means a
separately owned lot, parcel, area, or space.

(4) In a stock cooperative, “separate interest” means the
exclusive right to occupy a portion of the real property, as specified
in subdivision (m).

Unless the declaration or condominium plan, if any exists,
otherwise provides, if walls, floors, or ceilings are designated as
boundaries of a separate interest, the interior surfaces of the
perimeter walls, floors, ceilings, windows, doors, and outlets
located within the separate interest are part of the separate interest
and any other portions of the walls, floors, or ceilings are part of
the common areas.

The estate in a separate interest may be a fee, a life estate, an
estate for years, or any combination of the foregoing.

(m) “Stock cooperative” means a development in which a
corporation is formed or availed of, primarily for the purpose of
holding title to, either in fee simple or for a term of years, improved
real property, and all or substantially all of the shareholders of the
corporation receive a right of exclusive occupancy in a portion of
the real property, title to which is held by the corporation. The
owners’ interest in the corporation, whether evidenced by a share
of stock, a certificate of membership, or otherwise, shall be deemed
to be an interest in a common interest development and a real estate
development for purposes of subdivision (f) of Section 25100 of
the Corporations Code.

A “stock cooperative” includes a limited equity housing
cooperative which is a stock cooperative that meets the criteria of
Section 817.