Senate Bill No. 745

Introduced by Committee on Transportation and Housing (Senators DeSaulnier (Chair), Beall, Cannella, Gaines, Galgiani, Hill, Lara, Liu, Pavley, Roth, and Wyland)

February 22, 2013

An act to amend Sections 1941.4, 2924b, 4005, 4035, 4090, 4290, 4525, 4528, and 4530 of, and to repeal Sections 1363.05, 1368, and 1368.2 of the Civil Code, and to amend Section 12191 of the Government Code, relating to housing.

LEGISLATIVE COUNSEL’S DIGEST

SB 745, as introduced, Committee on Transportation and Housing. Housing.

(1) Existing law, the Davis-Sterling Common Interest Development Act defines and regulates common interest developments. Operative January 1, 2014, the act will be reorganized and recodified.

This bill would repeal provisions of the act that are superseded by the reorganization and recodification of the act. The bill would make other conforming changes, would authorize delivery of documents to the homeowner’s association by specified types of mail delivery, would revise requirements for a board teleconference and the form for billing disclosures, and would prohibit cancellation fees for requests for documents, as specified.

(2) Existing law requires the lessor of a building intended for residential occupation to ensure that the inside telephone wiring meets the applicable standards of the most recent National Electrical Code.

This bill would replace the reference to the National Electrical Code with the California Electrical Code.

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Section 1363.05 of the Civil Code is repealed.

begin delete

1363.05.  

(a) This section shall be known and may be cited as
the Common Interest Development Open Meeting Act.

(b) Any member of the association may attend meetings of the
board of directors of the association, except when the board
adjourns to, or meets solely in, executive session to consider
litigation, matters relating to the formation of contracts with third
parties, member discipline, personnel matters, or to meet with a
member, upon the member’s request, regarding the member’s
payment of assessments, as specified in Section 1367 or 1367.1.
The board of directors of the association shall meet in executive
session, if requested by a member who may be subject to a fine,
penalty, or other form of discipline, and the member shall be
entitled to attend the executive session. As specified in paragraph
(2) of subdivision (k), a member of the association shall be entitled
to attend a teleconference meeting or the portion of a teleconference
meeting that is open to members, and that meeting or portion of
the meeting shall be audible to the members in a location specified
in the notice of the meeting.

(c) Any matter discussed in executive session shall be generally
noted in the minutes of the immediately following meeting that is
open to the entire membership.

(d) The minutes, minutes proposed for adoption that are marked
to indicate draft status, or a summary of the minutes, of any
meeting of the board of directors of an association, other than an
executive session, shall be available to members within 30 days
of the meeting. The minutes, proposed minutes, or summary
minutes shall be distributed to any member of the association upon
request and upon reimbursement of the association’s costs for
making that distribution.

(e) Members of the association shall be notified in writing at
the time that the pro forma budget required in Section 1365 is
distributed, or at the time of any general mailing to the entire
membership of the association, of their right to have copies of the
minutes of meetings of the board of directors, and how and where
those minutes may be obtained.

(f) Unless the bylaws provide for a longer period of notice,
members shall be given notice of the time and place of a meeting
as defined in subdivision (k), except for an emergency meeting or
a meeting that will be held solely in executive session, at least four
days prior to the meeting. Except for an emergency meeting,
members shall be given notice of the time and place of a meeting
that will be held solely in executive session at least two days prior
to the meeting. Notice shall be given by posting the notice in a
prominent place or places within the common area and by mail to
any owner who had requested notification of board meetings by
mail, at the address requested by the owner. Notice may also be
given by mail, by delivery of the notice to each unit in the
development, by newsletter or similar means of communication,
or, with the consent of the member, by electronic means. The notice
shall contain the agenda for the meeting.

(g) An emergency meeting of the board may be called by the
president of the association, or by any two members of the
governing body other than the president, if there are circumstances
that could not have been reasonably foreseen which require
immediate attention and possible action by the board, and which
of necessity make it impracticable to provide notice as required
by this section.

(h) The board of directors of the association shall permit any
member of the association to speak at any meeting of the
association or the board of directors, except for meetings of the
board held in executive session. A reasonable time limit for all
members of the association to speak to the board of directors or
before a meeting of the association shall be established by the
board of directors.

(i)  (1)  Except as described in paragraphs (2) to (4), inclusive,
the board of directors of the association may not discuss or take
action on any item at a nonemergency meeting unless the item was
placed on the agenda included in the notice that was posted and
distributed pursuant to subdivision (f). This subdivision does not
prohibit a resident who is not a member of the board from speaking
on issues not on the agenda.

(2) Notwithstanding paragraph (1), a member of the board of
directors, a managing agent or other agent of the board of directors,
or a member of the staff of the board of directors, may do any of
the following:

(A) Briefly respond to statements made or questions posed by
a person speaking at a meeting as described in subdivision (h).

(B) Ask a question for clarification, make a brief announcement,
or make a brief report on his or her own activities, whether in
response to questions posed by a member of the association or
based upon his or her own initiative.

(3) Notwithstanding paragraph (1), the board of directors or a
member of the board of directors, subject to rules or procedures
of the board of directors, may do any of the following:

(A) Provide a reference to, or provide other resources for factual
information to, its managing agent or other agents or staff.

(B) Request its managing agent or other agents or staff to report
back to the board of directors at a subsequent meeting concerning
any matter, or take action to direct its managing agent or other
agents or staff to place a matter of business on a future agenda.

(C) Direct its managing agent or other agents or staff to perform
administrative tasks that are necessary to carry out this subdivision.

(4) (A) Notwithstanding paragraph (1), the board of directors
may take action on any item of business not appearing on the
agenda posted and distributed pursuant to subdivision (f) under
any of the following conditions:

(i) Upon a determination made by a majority of the board of
directors present at the meeting that an emergency situation exists.
An emergency situation exists if there are circumstances that could
not have been reasonably foreseen by the board, that require
immediate attention and possible action by the board, and that, of
necessity, make it impracticable to provide notice.

(ii) Upon a determination made by the board by a vote of
two-thirds of the members present at the meeting, or, if less than
two-thirds of total membership of the board is present at the
meeting, by a unanimous vote of the members present, that there
is a need to take immediate action and that the need for action
came to the attention of the board after the agenda was posted and
distributed pursuant to subdivision (f).

(iii) The item appeared on an agenda that was posted and
distributed pursuant to subdivision (f) for a prior meeting of the
board of directors that occurred not more than 30 calendar days
before the date that action is taken on the item and, at the prior
meeting, action on the item was continued to the meeting at which
the action is taken.

(B) Before discussing any item pursuant to this paragraph, the
board of directors shall openly identify the item to the members
in attendance at the meeting.

(j) (1) The board of directors shall not take action on any item
of business outside of a meeting.

(2) (A) Notwithstanding Section 7211 of the Corporations
Code, the board of directors shall not conduct a meeting via a series
of electronic transmissions, including, but not limited to, electronic
mail, except as specified in subparagraph (B).

(B) Electronic transmissions may be used as a method of
conducting an emergency meeting if all members of the board,
individually or collectively, consent in writing to that action, and
if the written consent or consents are filed with the minutes of the
meeting of the board. These written consents may be transmitted
electronically.

(k) As used in this section:

(1) “Item of business” means any action within the authority of
the board, except those actions that the board has validly delegated
to any other person or persons, managing agent, officer of the
association, or committee of the board comprising less than a
majority of the directors.

(2) “Meeting” means either of the following:

(A) A congregation of a majority of the members of the board
at the same time and place to hear, discuss, or deliberate upon any
item of business that is within the authority of the board.

(B) A teleconference in which a majority of the members of the
board, in different locations, are connected by electronic means,
through audio or video or both. A teleconference meeting shall be
conducted in a manner that protects the rights of members of the
association and otherwise complies with the requirements of this
title. Except for a meeting that will be held solely in executive
session, the notice of the teleconference meeting shall identify at
least one physical location so that members of the association may
attend and at least one member of the board of directors or a person
designated by the board shall be present at that location.
Participation by board members in a teleconference meeting
constitutes presence at that meeting as long as all board members
participating in the meeting are able to hear one another and
members of the association speaking on matters before the board.

end delete

SEC. 2.  

Section 1368 of the Civil Code is repealed.

begin delete

1368.  

(a) The owner of a separate interest, other than an owner
subject to the requirements of Section 11018.6 of the Business and
Professions Code, shall, as soon as practicable before transfer of
title to the separate interest or execution of a real property sales
contract therefor, as defined in Section 2985, provide the following
to the prospective purchaser:

(1) A copy of the governing documents of the common interest
development, including any operating rules, and including a copy
of the association’s articles of incorporation, or, if not incorporated,
a statement in writing from an authorized representative of the
association that the association is not incorporated.

(2) If there is a restriction in the governing documents limiting
the occupancy, residency, or use of a separate interest on the basis
of age in a manner different from that provided in Section 51.3, a
statement that the restriction is only enforceable to the extent
permitted by Section 51.3 and a statement specifying the applicable
provisions of Section 51.3.

(3) A copy of the most recent documents distributed pursuant
to Section 1365.

(4) A true statement in writing obtained from an authorized
representative of the association as to the amount of the
association’s current regular and special assessments and fees, any
assessments levied upon the owner’s interest in the common
interest development that are unpaid on the date of the statement,
and any monetary fines or penalties levied upon the owner’s
interest and unpaid on the date of the statement. The statement
obtained from an authorized representative shall also include true
information on late charges, interest, and costs of collection which,
as of the date of the statement, are or may be made a lien upon the
owner’s interest in a common interest development pursuant to
Section 1367 or 1367.1.

(5) A copy or a summary of any notice previously sent to the
owner pursuant to subdivision (h) of Section 1363 that sets forth
any alleged violation of the governing documents that remains
unresolved at the time of the request. The notice shall not be
deemed a waiver of the association’s right to enforce the governing
documents against the owner or the prospective purchaser of the
separate interest with respect to any violation. This paragraph shall
not be construed to require an association to inspect an owner’s
separate interest.

(6) A copy of the initial list of defects provided to each member
of the association pursuant to Section 1375, unless the association
and the builder subsequently enter into a settlement agreement or
otherwise resolve the matter and the association complies with
Section 1375.1. Disclosure of the initial list of defects pursuant to
this paragraph does not waive any privilege attached to the
document. The initial list of defects shall also include a statement
that a final determination as to whether the list of defects is accurate
and complete has not been made.

(7) A copy of the latest information provided for in Section
1375.1.

(8) Any change in the association’s current regular and special
assessments and fees which have been approved by the
association’s board of directors, but have not become due and
payable as of the date disclosure is provided pursuant to this
subdivision.

(9) If there is a provision in the governing documents that
prohibits the rental or leasing of any of the separate interests in
the common interest development to a renter, lessee, or tenant, a
statement describing the prohibition.

(10) If requested by the prospective purchaser, a copy of the
minutes of the meetings, excluding meetings held in executive
session, of the association’s board of directors, conducted over the
previous 12 months, that were approved by the association’s board
of directors.

(b) (1) Upon written request, the association shall, within 10
days of the mailing or delivery of the request, provide the owner
of a separate interest, or any other recipient authorized by the
owner, with a copy of the requested documents specified in
paragraphs (1) to (10), inclusive, of subdivision (a). Upon receipt
of a written request, the association shall provide, on the form
described in Section 1368.2, a written or electronic estimate of the
fees that will be assessed for providing the requested documents.
The documents required to be made available pursuant to this
section may be maintained in electronic form, and may be posted
on the association’s Internet Web site. Requesting parties shall
have the option of receiving the documents by electronic
transmission if the association maintains the documents in
electronic form. The association may collect a reasonable fee based
upon the association’s actual cost for the procurement, preparation,
reproduction, and delivery of the documents requested pursuant
to the provisions of this section.

(2) No additional fees may be charged by the association for
the electronic delivery of the documents requested.

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

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

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

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

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

(4) Fees for any documents required by this section shall be
distinguished from other fees, fines, or assessments billed as part
of the transfer or sales transaction. Delivery of the documents
required by this section shall not be withheld for any reason nor
subject to any condition except the payment of the fee allowed
pursuant to paragraph (1).

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

(6) The association shall also provide a recipient authorized by
the owner of a separate interest with a copy of the completed form
specified in Section 1368.2 at the time the required documents are
delivered.

(c) (1) Except as provided in paragraph (2), neither an
association nor a community service organization or similar entity
may impose or collect any assessment, penalty, or fee in connection
with a transfer of title or any other interest except for the following:

(A) An amount not to exceed the association’s actual costs to
change its records.

(B) An amount authorized by subdivision (b).

(2) The prohibition in paragraph (1) does not apply to a
community service organization or similar entity, or to a nonprofit
entity that provides services to a common interest development
under a declaration of trust, that is described in subparagraph (A)
or (B):

(A) The community service organization or similar entity
satisfies both of the following requirements:

(i) The community service organization or similar entity was
established prior to February 20, 2003.

(ii) The community service organization or similar entity exists
and operates, in whole or in part, to fund or perform environmental
mitigation or to restore or maintain wetlands or native habitat, as
required by the state or local government as an express written
condition of development.

(B) The community service organization or similar entity, or a
nonprofit entity that provides services to a common interest
development under a declaration of trust, satisfies all of the
following requirements:

(i) The organization or entity is not an organization or entity
described in subparagraph (A).

(ii) The organization or entity was established and received a
transfer fee prior to January 1, 2004.

(iii) On and after January 1, 2006, the organization or entity
offers a purchaser the following payment options for the fee or
charge it collects at time of transfer:

(I) Paying the fee or charge at the time of transfer.

(II) Paying the fee or charge pursuant to an installment payment
plan for a period of not less than seven years. If the purchaser
elects to pay the fee or charge in installment payments, the
organization or entity may also collect additional amounts that do
not exceed the actual costs for billing and financing on the amount
owed. If the purchaser sells the separate interest before the end of
the installment payment plan period, he or she shall pay the
remaining balance prior to transfer.

(3) For the purposes of this subdivision, a “community service
organization or similar entity” means a nonprofit entity, other than
an association, that is organized to provide services to residents
of the common interest development or to the public in addition
to the residents, to the extent community common areas or facilities
are available to the public. A “community service organization or
similar entity” does not include an entity that has been organized
solely to raise moneys and contribute to other nonprofit
organizations that are qualified as tax exempt under Section
501(c)(3) of the Internal Revenue Code and that provide housing
or housing assistance.

(d) Any person or entity who willfully violates this section is
liable to the purchaser of a separate interest that is subject to this
section for actual damages occasioned thereby and, in addition,
shall pay a civil penalty in an amount not to exceed five hundred
dollars ($500). In an action to enforce this liability, the prevailing
party shall be awarded reasonable attorneys’ fees.

(e) Nothing in this section affects the validity of title to real
property transferred in violation of this section.

(f) In addition to the requirements of this section, an owner
transferring title to a separate interest shall comply with applicable
requirements of Sections 1133 and 1134.

(g) For the purposes of this section, a person who acts as a
community association manager is an agent, as defined in Section
2297, of the association.

end delete

SEC. 3.  

Section 1368.2 of the Civil Code is repealed.

begin delete

1368.2.  

The form for billing disclosures required by Section
1368 shall be in substantially the following form and in at least
10-point type:

 

CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 1368*

Property Address

Owner of Property

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

Provider of the Section 1368 Items:

Print NamePosition or TitleAssociation or Agent Date Form Completed

Check or Complete Applicable Column or Columns Below

 

 

Document	Civil Code Section	Included	Not Available (N/A) or Not Applicable (N/App)
Articles of Incorporation or statement that not incorporated	Section 1368(a)(1)
CC&Rs	Section 1368(a)(1)
Bylaws	Section 1368(a)(1)
Operating Rules	Section 1368(a)(1)
Age restrictions, if any	Section 1368(a)(2)
Pro forma operating budget or summary, including reserve study	Sections 1365 and 1368(a)(3)
Assessment and reserve funding disclosure summary	Sections 1365 and 1368(a)(4)
Financial statement review	Sections 1365 and 1368(a)(3)
Assessment enforcement policy	Sections 1365 and 1368(a)(4)
Insurance summary	Sections 1365 and 1368(a)(3)
Regular assessment	Section 1368(a)(4)
Special assessment	Section 1368(a)(4)
Emergency assessment	Section 1368(a)(4)
Other unpaid obligations of seller	Sections 1367.1 and 1368(a)(4)
Approved changes to assessments	Sections 1365 and 1368(a)(4), (8)
Settlement notice regarding common area defects	Sections 1368(a)(6), (7) and 1375.1
Preliminary list of defects	Sections 1368(a)(6), 1375, and 1375.1
Notice(s) of violation	Sections 1363 and 1368(a)(5)
Required statement of fees	Section 1368
Minutes of regular meetings of the board of directors conducted over the previous 12 months, if requested	Section 1368(a)(9)
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 1368 may be charged separately.

 

end delete

SEC. 4.  

Section 1941.4 of the Civil Code is amended to read:

1941.4.  

The lessor of a building intended for the residential
occupation of human beings shall be responsible for installing at
least one usable telephone jack and for placing and maintaining
the inside telephone wiring in good working order, shall ensure
that the inside telephone wiring meets the applicable standards of
the most recent begin delete National Electrical Code as adopted by the
Electronic Industry Association end delete begin insert California Electrical Code end insert , and
shall make any required repairs. The lessor shall not restrict or
interfere with access by the telephone utility to its telephone
network facilities up to the demarcation point separating the inside
wiring.

“Inside telephone wiring” for purposes of this section, means
that portion of the telephone wire that connects the telephone
equipment at the customer’s premises to the telephone network at
a demarcation point determined by the telephone corporation in
accordance with orders of the Public Utilities Commission.

SEC. 5.  

Section 2924b of the Civil Code is amended to read:

2924b.  

(a) Any person desiring a copy of any notice of default
and of any notice of sale under any deed of trust or mortgage with
power of sale upon real property or an estate for years therein, as
to which deed of trust or mortgage the power of sale cannot be
exercised until these notices are given for the time and in the
manner provided in Section 2924 may, at any time subsequent to
recordation of the deed of trust or mortgage and prior to recordation
of notice of default thereunder, cause to be filed for record in the
office of the recorder of any county in which any part or parcel of
the real property is situated, a duly acknowledged request for a
copy of the notice of default and of sale. This request shall be
signed and acknowledged by the person making the request,
specifying the name and address of the person to whom the notice
is to be mailed, shall identify the deed of trust or mortgage by
stating the names of the parties thereto, the date of recordation
thereof, and the book and page where the deed of trust or mortgage
is recorded or the recorder’s number, and shall be in substantially
the following form:

 

“In accordance with Section 2924b, Civil Code, request is hereby made that a copy of any notice of default and a copy of any notice of sale under the deed of trust (or mortgage) recorded ______, ____, in Book _____ page ____ records of ____ County, (or filed for record with recorder’s serial number ____, _______  County) California, executed by ____ as trustor (or mortgagor) in which ________ is named as beneficiary (or mortgagee) and ______________ as trustee be mailed to
at	.
Name	Address
NOTICE:  A copy of any notice of default and of any notice of sale will be sent only to the address contained in this recorded request. If your address changes, a new request must be recorded.
	Signature     ”

 

Upon the filing for record of the request, the recorder shall index
in the general index of grantors the names of the trustors (or
mortgagor) recited therein and the names of persons requesting
copies.

(b) The mortgagee, trustee, or other person authorized to record
the notice of default or the notice of sale shall do each of the
following:

(1) Within 10 business days following recordation of the notice
of default, deposit or cause to be deposited in the United States
mail an envelope, sent by registered or certified mail with postage
prepaid, containing a copy of the notice with the recording date
shown thereon, addressed to each person whose name and address
are set forth in a duly recorded request therefor, directed to the
address designated in the request and to each trustor or mortgagor
at his or her last known address if different than the address
specified in the deed of trust or mortgage with power of sale.

(2) At least 20 days before the date of sale, deposit or cause to
be deposited in the United States mail an envelope, sent by
registered or certified mail with postage prepaid, containing a copy
of the notice of the time and place of sale, addressed to each person
whose name and address are set forth in a duly recorded request
therefor, directed to the address designated in the request and to
each trustor or mortgagor at his or her last known address if
different than the address specified in the deed of trust or mortgage
with power of sale.

(3) As used in paragraphs (1) and (2), the “last known address”
of each trustor or mortgagor means the last business or residence
physical address actually known by the mortgagee, beneficiary,
trustee, or other person authorized to record the notice of default.
For the purposes of this subdivision, an address is “actually known”
if it is contained in the original deed of trust or mortgage, or in
any subsequent written notification of a change of physical address
from the trustor or mortgagor pursuant to the deed of trust or
mortgage. For the purposes of this subdivision, “physical address”
does not include an e-mail or any form of electronic address for a
trustor or mortgagor. The beneficiary shall inform the trustee of
the trustor’s last address actually known by the beneficiary.
However, the trustee shall incur no liability for failing to send any
notice to the last address unless the trustee has actual knowledge
of it.

(4) A “person authorized to record the notice of default or the
notice of sale” shall include an agent for the mortgagee or
beneficiary, an agent of the named trustee, any person designated
in an executed substitution of trustee, or an agent of that substituted
trustee.

(c) The mortgagee, trustee, or other person authorized to record
the notice of default or the notice of sale shall do the following:

(1) Within one month following recordation of the notice of
default, deposit or cause to be deposited in the United States mail
an envelope, sent by registered or certified mail with postage
prepaid, containing a copy of the notice with the recording date
shown thereon, addressed to each person set forth in paragraph
(2), provided that the estate or interest of any person entitled to
receive notice under this subdivision is acquired by an instrument
sufficient to impart constructive notice of the estate or interest in
the land or portion thereof that is subject to the deed of trust or
mortgage being foreclosed, and provided the instrument is recorded
in the office of the county recorder so as to impart that constructive
notice prior to the recording date of the notice of default and
provided the instrument as so recorded sets forth a mailing address
that the county recorder shall use, as instructed within the
instrument, for the return of the instrument after recording, and
which address shall be the address used for the purposes of mailing
notices herein.

(2) The persons to whom notice shall be mailed under this
subdivision are:

(A) The successor in interest, as of the recording date of the
notice of default, of the estate or interest or any portion thereof of
the trustor or mortgagor of the deed of trust or mortgage being
foreclosed.

(B) The beneficiary or mortgagee of any deed of trust or
mortgage recorded subsequent to the deed of trust or mortgage
being foreclosed, or recorded prior to or concurrently with the
deed of trust or mortgage being foreclosed but subject to a recorded
agreement or a recorded statement of subordination to the deed of
trust or mortgage being foreclosed.

(C) The assignee of any interest of the beneficiary or mortgagee
described in subparagraph (B), as of the recording date of the notice
of default.

(D) The vendee of any contract of sale, or the lessee of any
lease, of the estate or interest being foreclosed that is recorded
subsequent to the deed of trust or mortgage being foreclosed, or
recorded prior to or concurrently with the deed of trust or mortgage
being foreclosed but subject to a recorded agreement or statement
of subordination to the deed of trust or mortgage being foreclosed.

(E) The successor in interest to the vendee or lessee described
in subparagraph (D), as of the recording date of the notice of
default.

(F) The office of the Controller, Sacramento, California, where,
as of the recording date of the notice of default, a “Notice of Lien
for Postponed Property Taxes” has been recorded against the real
property to which the notice of default applies.

(3) At least 20 days before the date of sale, deposit or cause to
be deposited in the United States mail an envelope, sent by
registered or certified mail with postage prepaid, containing a copy
of the notice of the time and place of sale addressed to each person
to whom a copy of the notice of default is to be mailed as provided
in paragraphs (1) and (2), and addressed to the office of any state
taxing agency, Sacramento, California, that has recorded,
subsequent to the deed of trust or mortgage being foreclosed, a
notice of tax lien prior to the recording date of the notice of default
against the real property to which the notice of default applies.

(4) Provide a copy of the notice of sale to the Internal Revenue
Service, in accordance with Section 7425 of the Internal Revenue
Code and any applicable federal regulation, if a “Notice of Federal
Tax Lien under Internal Revenue Laws” has been recorded,
subsequent to the deed of trust or mortgage being foreclosed,
against the real property to which the notice of sale applies. The
failure to provide the Internal Revenue Service with a copy of the
notice of sale pursuant to this paragraph shall be sufficient cause
to rescind the trustee’s sale and invalidate the trustee’s deed, at
the option of either the successful bidder at the trustee’s sale or
the trustee, and in either case with the consent of the beneficiary.
Any option to rescind the trustee’s sale pursuant to this paragraph
shall be exercised prior to any transfer of the property by the
successful bidder to a bona fide purchaser for value. A recision of
the trustee’s sale pursuant to this paragraph may be recorded in a
notice of recision pursuant to Section 1058.5.

(5) The mailing of notices in the manner set forth in paragraph
(1) shall not impose upon any licensed attorney, agent, or employee
of any person entitled to receive notices as herein set forth any
duty to communicate the notice to the entitled person from the fact
that the mailing address used by the county recorder is the address
of the attorney, agent, or employee.

(d) Any deed of trust or mortgage with power of sale hereafter
executed upon real property or an estate for years therein may
contain a request that a copy of any notice of default and a copy
of any notice of sale thereunder shall be mailed to any person or
party thereto at the address of the person given therein, and a copy
of any notice of default and of any notice of sale shall be mailed
to each of these at the same time and in the same manner required
as though a separate request therefor had been filed by each of
these persons as herein authorized. If any deed of trust or mortgage
with power of sale executed after September 19, 1939, except a
deed of trust or mortgage of any of the classes excepted from the
provisions of Section 2924, does not contain a mailing address of
the trustor or mortgagor therein named, and if no request for special
notice by the trustor or mortgagor in substantially the form set
forth in this section has subsequently been recorded, a copy of the
notice of default shall be published once a week for at least four
weeks in a newspaper of general circulation in the county in which
the property is situated, the publication to commence within 10
business days after the filing of the notice of default. In lieu of
publication, a copy of the notice of default may be delivered
personally to the trustor or mortgagor within the 10 business days
or at any time before publication is completed, or by posting the
notice of default in a conspicuous place on the property and mailing
the notice to the last known address of the trustor or mortgagor.

(e) Any person required to mail a copy of a notice of default or
notice of sale to each trustor or mortgagor pursuant to subdivision
(b) or (c) by registered or certified mail shall simultaneously cause
to be deposited in the United States mail, with postage prepaid and
mailed by first-class mail, an envelope containing an additional
copy of the required notice addressed to each trustor or mortgagor
at the same address to which the notice is sent by registered or
certified mail pursuant to subdivision (b) or (c). The person shall
execute and retain an affidavit identifying the notice mailed,
showing the name and residence or business address of that person,
that he or she is over the age of 18 years, the date of deposit in the
mail, the name and address of the trustor or mortgagor to whom
sent, and that the envelope was sealed and deposited in the mail
with postage fully prepaid. In the absence of fraud, the affidavit
required by this subdivision shall establish a conclusive
presumption of mailing.

(f) (1) Notwithstanding subdivision (a), with respect to separate
interests governed by an association, as defined in begin delete subdivision (a)
of end delete Section begin delete 1351 end delete begin insert 4080 end insert , the association may cause to be filed in the
office of the recorder in the county in which the separate interests
are situated a request that a mortgagee, trustee, or other person
authorized to record a notice of default regarding any of those
separate interests mail to the association a copy of any trustee’s
deed upon sale concerning a separate interest. The request shall
include a legal description or the assessor’s parcel number of all
the separate interests. A request recorded pursuant to this
subdivision shall include the name and address of the association
and a statement that it is a homeowners’ association. Subsequent
requests of an association shall supersede prior requests. A request
pursuant to this subdivision shall be recorded before the filing of
a notice of default. The mortgagee, trustee, or other authorized
person shall mail the requested information to the association
within 15 business days following the date of the trustee’s sale.
Failure to mail the request, pursuant to this subdivision, shall not
affect the title to real property.

(2) A request filed pursuant to paragraph (1) does not, for
purposes of Section 27288.1 of the Government Code, constitute
a document that either effects or evidences a transfer or
encumbrance of an interest in real property or that releases or
terminates any interest, right, or encumbrance of an interest in real
property.

(g) No request for a copy of any notice filed for record pursuant
to this section, no statement or allegation in the request, and no
record thereof shall affect the title to real property or be deemed
notice to any person that any person requesting copies of notice
has or claims any right, title, or interest in, or lien or charge upon
the property described in the deed of trust or mortgage referred to
therein.

(h) “Business day,” as used in this section, has the meaning
specified in Section 9.

SEC. 6.  

Section 4005 of the Civil Code is amended to read:

4005.  

Division, part, title, chapter, begin delete and end delete article begin insert , and section end insert
headings do not in any manner affect the scope, meaning, or intent
of this begin delete act end delete begin insert part end insert .

SEC. 7.  

Section 4035 of the Civil Code is amended to read:

4035.  

(a) If a provision of this begin delete act end delete begin insert part end insert requires that a document
be delivered to an association, the document shall be delivered to
the person designated in the annual policy statement, prepared
pursuant to Section 5310, to receive documents on behalf of the
association. If no person has been designated to receive documents,
the document shall be delivered to the president or secretary of
the association.

(b) A document delivered pursuant to this section may be
delivered by any of the following methods:

(1) By e-mail, facsimile, or other electronic means, if the
association has assented to that method of delivery.

(2) By personal delivery, if the association has assented to that
method of delivery. If the association accepts a document by
personal delivery it shall provide a written receipt acknowledging
delivery of the document.

begin insert

(3) By first-class mail, postage prepaid, registered or certified
mail, express mail, or overnight delivery by an express service
center.

end insert

SEC. 8.  

Section 4090 of the Civil Code is amended to read:

4090.  

“Board meeting” means either of the following:

(a) A congregation, at the same time and place, of a sufficient
number of directors to establish a quorum of the board, to hear,
discuss, or deliberate upon any item of business that is within the
authority of the board.

(b) A teleconference, where a sufficient number of directors to
establish a quorum of the board, in different locations, are
connected by electronic means, through audio or video, or both.
A teleconference meeting shall be conducted in a manner that
protects the rights of members of the association and otherwise
complies with the requirements of this act. Except for a meeting
that will be held solely in executive session, the notice of the
teleconference meeting shall identify at least one physical location
so that members of the association may attend, and at least one
director begin insert or a person designated by the board end insert shall be present at
that location. Participation by directors in a teleconference meeting
constitutes presence at that meeting as long as all directors
participating are able to hear one another, as well as members of
the association speaking on matters before the board.

SEC. 9.  

Section 4290 of the Civil Code is amended to read:

4290.  

(a) The certificate consenting to the recordation of a
condominium plan that is required by subdivision (c) of Section
begin delete 4120 end delete begin insert 4185 end insert shall be signed and acknowledged by all of the
following persons:

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

(2) In the case of a condominium project that will terminate
upon the termination of an estate for years, by all lessors and
lessees of the estate for years.

(3) In the case of a condominium project subject to a life estate,
by all life tenants and remainder interests.

(4) The trustee or the beneficiary of each recorded deed of trust,
and the mortgagee of each recorded mortgage encumbering the
property.

(b) Owners of mineral rights, easements, rights-of-way, and
other nonpossessory interests do not need to sign the certificate.

(c) In the event 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.

SEC. 10.  

Section 4525 of the Civil Code is amended to read:

4525.  

(a) The owner of a separate interest shall provide the
following documents to a prospective purchaser of the separate
interest, as soon as practicable before the transfer of title or the
execution of a real property sales contract, as defined in Section
2985:

(1) A copy of all governing documents. If the association is not
incorporated, this shall include a statement in writing from an
authorized representative of the association that the association is
not incorporated.

(2) If there is a restriction in the governing documents limiting
the occupancy, residency, or use of a separate interest on the basis
of age in a manner different from that provided in Section 51.3, a
statement that the restriction is only enforceable to the extent
permitted by Section 51.3 and a statement specifying the applicable
provisions of Section 51.3.

(3) A copy of the most recent documents distributed pursuant
to Article 7 (commencing with Section 5300) of Chapter 6.

(4) A true statement in writing obtained from an authorized
representative of the association as to the amount of the
association’s current regular and special assessments and fees, any
assessments levied upon the owner’s interest in the common
interest development that are unpaid on the date of the statement,
and any monetary fines or penalties levied upon the owner’s
interest and unpaid on the date of the statement. The statement
obtained from an authorized representative shall also include true
information on late charges, interest, and costs of collection which,
as of the date of the statement, are or may be made a lien upon the
owner’s interest in a common interest development pursuant to
Article 2 (commencing with Section 5650) of Chapter 8.

(5) A copy or a summary of any notice previously sent to the
owner pursuant to Section 5855 that sets forth any alleged violation
of the governing documents that remains unresolved at the time
of the request. The notice shall not be deemed a waiver of the
association’s right to enforce the governing documents against the
owner or the prospective purchaser of the separate interest with
respect to any violation. This paragraph shall not be construed to
require an association to inspect an owner’s separate interest.

(6) A copy of the initial list of defects provided to each member
pursuant to Section 6000, unless the association and the builder
subsequently enter into a settlement agreement or otherwise resolve
the matter and the association complies with Section 6100.
Disclosure of the initial list of defects pursuant to this paragraph
does not waive any privilege attached to the document. The initial
list of defects shall also include a statement that a final
determination as to whether the list of defects is accurate and
complete has not been made.

(7) A copy of the latest information provided for in Section
6100.

(8) Any change in the association’s current regular and special
assessments and fees which have been approved by the board, but
have not become due and payable as of the date disclosure is
provided pursuant to this subdivision.

(9) If there is a provision in the governing documents that
prohibits the rental or leasing of any of the separate interests in
the common interest development to a renter, lessee, or tenant, a
statement describing the prohibition begin delete and its applicability end delete .

(10) If requested by the prospective purchaser, a copy of the
minutes of board meetings, excluding meetings held in executive
session, conducted over the previous 12 months, that were
approved by the board.

(b) This section does not apply to an owner that is subject to
begin delete the requirements of end delete Section 11018.6 of the Business and
Professions Code.

SEC. 11.  

Section 4528 of the Civil Code is amended to read:

4528.  

The form for billing disclosures required by Section
4530 shall be in begin insert at least 10-point type and end insert substantially the
following form:

 

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) or Not Applicable (N/App)
Document	Civil Code Section Included
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)
begin insert Rental restrictions, if any end insert	begin insert Section 4525(a)(9) end insert
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 4525 may be charged separately.

 

SEC. 12.  

Section 4530 of the Civil Code is amended to read:

4530.  

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

begin delete

(b) (1) Upon receipt of a written request, the association shall
provide, on the form described in Section 4528, a written or
electronic estimate of the fees that will be assessed for providing
the requested documents. The

end delete

begin insert (2) end insert begin insert   end insert begin insert The end insert documents required to be made available pursuant to
this section may be maintained in electronic form, and may be
posted on the association’s Internet Web site. Requesting parties
shall have the option of receiving the documents by electronic
transmission if the association maintains the documents in
electronic form begin insert . Delivery of the documents required by this section
shall not be with end insert begin insert held for any reason nor subject to any condition
except the payment of the fee authorized pursuant to subdivision
(b) end insert . begin delete The end delete

begin insert (b) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert begin insert The end insert association may collect a reasonable fee based upon
the association’s actual cost for the procurement, preparation,
reproduction, and delivery of the documents requested pursuant
to begin delete the provisions of end delete this section. begin insert Upon receipt of a written request
the association shall provide on the form described in Section
4528, a written or electronic estimate of the fees that will be
assessed for providing the requested documents. end insert

(2) No additional fees may be charged by the association for
the electronic delivery of the documents requested.

(3) Fees for any documents required by this section shall be
distinguished from other fees, fines, or assessments billed as part
of the transfer or sales transaction. begin delete Delivery of the documents
required by this section shall not be withheld for any reason nor
subject to any condition except the payment of the fee allowed
pursuant to paragraph (1). end delete

begin insert

(4) If a request for documents is canceled in writing, the
association shall refund all fees collected pursuant to paragraph
(1) or an amount that represents the portion of the work not
performed.

end insert begin insert

(5) If a request for documents is canceled in writing by the same
party making the request and work had not been performed to
meet the request, a cancellation fee may not be charged or
collected.

end insert begin insert

(6) If a request for documents is canceled in writing and a fee
was collected for an amount that represents the portion of the work
performed to meet the request, a cancellation fee may not be
charged or collected.

end insert begin delete

(4)

end delete

begin insert (c) end insert  An association may contract with any person or entity to
facilitate compliance with begin delete the requirements of this end delete subdivision begin insert (b) end insert
on behalf of the association.

begin delete

(5)

end delete

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

SEC. 13.  

Section 12191 of the Government Code is amended
to read:

12191.  

The miscellaneous business entity filing fees are the
following:

(a) Foreign Associations, as defined in Sections 170 and 171
of the Corporations Code:

(1) Filing the statement and designation upon the qualification
of a foreign association pursuant to Section 2105 of the
Corporations Code: One hundred dollars ($100).

(2) Filing an amended statement and designation by a foreign
association pursuant to Section 2107 of the Corporations Code:
Thirty dollars ($30).

(3) Filing a certificate showing the surrender of the right of a
foreign association to transact intrastate business pursuant to
Section 2112 of the Corporations Code: No fee.

(b) Unincorporated Associations:

(1) Filing a statement in accordance with Section 18200 of the
Corporations Code as to principal place of office or place for
sending notices or designating agent for service: Twenty-five
dollars ($25).

(2) Insignia Registrations: Ten dollars ($10).

(c) Community Associations and Common Interest
Developments:

(1) Filing a statement by a community association in accordance
with Section begin delete 1363.6 end delete begin insert 5405 end insert of the Civil Code to register the common
interest development that it manages: An amount not to exceed
thirty dollars ($30).

(2) Filing an amended statement by a community association
in accordance with Section begin delete 1363.6 end delete begin insert 5405 end insert of the Civil Code: No fee.