BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2273|
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THIRD READING
Bill No: AB 2273
Author: Wieckowski (D), et al.
Amended: 7/3/12 in Senate
Vote: 21
SENATE JUDICIARY COMMITTEE : 3-1, 6/26/12
AYES: Evans, Corbett, Leno
NOES: Harman
NO VOTE RECORDED: Blakeslee
ASSEMBLY FLOOR : 50-24, 5/21/12 - See last page for vote
SUBJECT : Common interest developments: required
documents
SOURCE : Community Associations Institute
Conference of California Bar Associations
DIGEST : This bill, with respect to property located in a
common interest development, requires a foreclosure sale to
be recorded within 30 days after the date of sale, as
specified.
ANALYSIS : Existing law, the Davis-Stirling Common
Interest Development Act, defines and regulates common
interest developments, including the ability of the
association to levy regular and special assessments
sufficient to perform its obligations. (Civil Code (CIV)
Section 1350 et seq.)
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Existing law regulates the non-judicial foreclosure of
properties pursuant to the power of sale contained within a
mortgage contract. To commence the process, existing law
requires the trustee, mortgagee, or beneficiary to record a
Notice of Default and requires three months to lapse before
setting a date for sale of the property. (CIV Sections
2924, 2924f.) Existing law allows a person to record a
request to be notified upon the filing of a notice of
default or notice of sale and requires the trustee to mail
notice to those persons. (CIV Sections 2924b(a),
2924b(b)(1))
Existing law permits an association to record a request
that the mortgagee, trustee, or other person authorized to
record a notice of default mail the association a copy of
the trustee's deed upon sale of a separate interest within
the association at foreclosure. The request must include a
legal description or the assessor's parcel number of the
separate interests, the name and address of the
association, and a statement that it is a homeowners'
association. (CIV Section 2924b(f))
Existing law requires the above request to be recorded
before the filing of a notice of default, and requires the
mortgagee, trustee, or other authorized person to mail the
requested information to the association within 15 business
days following the date the trustee's deed is recorded.
(CIV Section 2924b(f))
This bill, instead, requires the mortgagee, trustee, or
other authorized person to mail the requested information
to the association within 15 business days following the
trustee's sale.
Existing law provides that every grant of an estate in real
property is conclusive against the grantor, also against
everyone subsequently claiming under him, except a
purchaser or incumbrancer who in good faith and for a
valuable consideration acquires a title or lien by an
instrument that is first duly recorded. (CIV Section 1107)
This bill provides that, notwithstanding any other law, the
transfer, following the sale of property in a common
interest development executed under the power of sale
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contained in any deed of trust or mortgage, shall be
recorded within 30 days after the date of sale in the
office of the county recorder where the property or a
portion of the property is located.
This bill states that failure to comply with the above
recording requirement shall not affect the validity of a
trustee sale or a sale in favor of a bona fide purchaser.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 7/3/12)
Community Associations Institute (co-source)
Conference of California Bar Associations (co-source)
California Association of Realtors
California Building Industry Association
Community of Shadowridge Owners' Association
Congress of California Seniors
Executive Council of Homeowners
Garden Isle Homeowner's Association
Golden Rain Foundation
Southwest California Legislative Council
Sun City Palm Desert
Sun City Roseville Association
ARGUMENTS IN SUPPORT : According to the author:
AB 2273 seeks to streamline the existing process for the
mortgagee or trustee to provide this information in a
timely manner to the HOA�(homeowner's association)], a
process which was established with the participation of
HOAs, banks, and other stakeholders through discussions
over SB 1511 (Ducheny) of 2008. Since SB 1511 became
law, HOAs have reported continued difficulties in
obtaining the information they need to invoice the new
owner its fair share of assessments, and this proposed
amendment is intended to address the negative impact to
HOAs that reportedly arises from excessive delays in
recording the deed.
AB 2273 addresses the above problem by making the
purchaser/new owner of property in a common interest
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subdivision responsible for informing the homeowners
association of its interest, so that the party
responsible for property maintenance may be found and
assessed. This amendment will place a minimal burden on
the new owner/purchaser, while providing a significant
benefit to the association and its other members by
ensuring timely collection of association dues from the
proper owner of the property. In an effort to encourage
foreclosing lenders to record a deed of trust after
foreclosure, AB 2273 requires the trustee to record the
deed within 30 days of the sale in the county in which
the foreclosed property is located.
ASSEMBLY FLOOR : 50-24, 5/21/12
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Blumenfield,
Bonilla, Bradford, Brownley, Buchanan, Butler, Charles
Calderon, Campos, Carter, Cedillo, Chesbro, Davis,
Dickinson, Eng, Feuer, Fong, Fuentes, Furutani, Gatto,
Gordon, Gorell, Hall, Hayashi, Hill, Huber, Hueso,
Huffman, Jeffries, Lara, Bonnie Lowenthal, Ma, Mendoza,
Mitchell, Monning, Pan, V. Manuel P�rez, Portantino,
Skinner, Solorio, Swanson, Torres, Wieckowski, Williams,
Yamada, John A. P�rez
NOES: Achadjian, Bill Berryhill, Conway, Donnelly, Beth
Gaines, Garrick, Grove, Hagman, Halderman, Harkey, Jones,
Knight, Logue, Mansoor, Miller, Morrell, Nestande,
Nielsen, Norby, Olsen, Silva, Smyth, Valadao, Wagner
NO VOTE RECORDED: Block, Cook, Fletcher, Galgiani, Roger
Hern�ndez, Perea
RJG:k 7/5/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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