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 would 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. This bill would authorize an association to collect a reasonable fee from a seller for its actual costs in providing documents under these provisions and would require a seller to be responsible for compensating an association, person, or entity for providing documents under these provisions. This bill would also require a seller to provide a prospective purchaser with certain current documents that the seller possesses free of charge. This bill would prohibit a seller from giving a prospective purchaser the required documents bundled with other documents. This bill would make conforming changes to a codified form.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 4528 of the Civil Code is amended to
2read:
The form for billing disclosures required by Section
44530 shall be in at least 10-point type and substantially the
5following form:
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CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525* |
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Property Address |
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Owner of Property |
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Owner’s Mailing Address (If known or different from property address.) |
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Provider of the Section 4525 Items: |
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Print Name _________ Position or Title _________ Association or Agent |
| Date Form Completed |
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Check or Complete Applicable Column or Columns Below |
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Not Available |
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Document |
Civil Code Section Included |
Fee for Document |
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Articles of Incorporation or statement that not incorporated |
Section 4525(a)(1) | ||
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CC&Rs |
Section 4525(a)(1) | ||
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Bylaws |
Section 4525(a)(1) | ||
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Operating Rules |
Section 4525(a)(1) | ||
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Age restrictions, if any |
Section 4525(a)(2) | ||
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Rental restrictions, if any |
Section 4525(a)(9) | ||
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Annual budget report or summary, including reserve study |
Sections 5300 and 4525(a)(3) | ||
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Assessment and reserve funding disclosure summary |
Sections 5300 and 4525(a)(4) | ||
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Financial statement review |
Sections 5305 and 4525(a)(3) | ||
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Assessment enforcement policy |
Sections 5310 and 4525(a)(4) | ||
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Insurance summary |
Sections 5300 and 4525(a)(3) | ||
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Regular assessment |
Section 4525(a)(4) | ||
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Special assessment |
Section 4525(a)(4) | ||
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Emergency assessment |
Section 4525(a)(4) | ||
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Other unpaid obligations of seller |
Sections 5675 and 4525(a)(4) | ||
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Approved changes to assessments |
Sections 5300 and 4525(a)(4), (8) | ||
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Settlement notice regarding common area defects |
Sections 4525(a)(6), (7), and 6100 | ||
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Preliminary list of defects |
Sections 4525(a)(6), 6000, and 6100 | ||
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Notice(s) of violation |
Sections 5855 and 4525(a)(5) | ||
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Required statement of fees |
Section 4525 | ||
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Minutes of regular board meetings conducted over the previous 12 months, if requested |
Section 4525(a)(10) | ||
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Total fees for these documents: |
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* 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 shall be charged separately. |
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Section 4530 of the Civil Code is amended to read:
(a) (1) Upon written request, the association shall,
2within 10 days of the mailing or delivery of the request, provide
3the owner of a separate interest, or any other recipient authorized
4by the owner, with a copy of all of the requested documents
5specified in Section 4525.
6(2) The documents required to be made available pursuant to
7this section may be maintained in electronic form, and may be
8posted on the association’s Internet Web site. Requesting parties
9shall have the option of receiving the documents by electronic
10transmission if the association maintains the documents in
11electronic form.
12(3) Delivery of the documents required by this section shall not
13be withheld for any reason nor subject to any condition except the
14payment of the fee authorized pursuant to subdivision (b).
15(b) (1) The association may collect a reasonable fee from the
16seller based upon the association’s actual cost for the procurement,
17preparation, reproduction, and delivery of the documents requested
18pursuant to this section.begin delete Additional feesend deletebegin insert An additional feeend insert shall
19not be charged for the electronic delivery in lieu of a hard copy
20delivery of the documents requested.
21(2) Upon receipt of a written request, the association shall
22provide, on the form described in Section 4528, a written or
23electronic estimate of the fees that will be assessed for providing
24the requested documentsbegin insert prior to processing the request in
25paragraph (1) of subdivision (a)end insert.
26(3) (A) A cancellation fee for documents specified in
27subdivision (a) shall not be collected if either of the following
28applies:
29(i) The request was canceled in writing by the same party that
30placed the order and work had not yet been performed on the order.
31(ii) The request was canceled in writing and any work that had
32been performed on the order was compensated.
33(B) The association shall refund all fees collected pursuant to
34paragraph (1) if the request was canceled in writing and work had
35not yet been performed on the order.
36(C) If the request was canceled in writing, the association shall
37refund the share of fees collected pursuant to paragraph (1) that
38represents the portion of the work not performed on the order.
39(4) Fees for any documents required by this section shall be
40distinguished from, separately stated, and separately billed from,
P6 1all other fees, fines, or assessments billed as part of the transfer or
2sales transaction.
3(5) Any documents not expressly required by Section 4525 to
4be provided to a prospective purchaser by the seller shall not be
5included in the document disclosure required by this section.
6Bundling of documents required to be provided pursuant to this
7section with other documents relating to the transaction is
8prohibited.
9(6) A seller shall provide to the prospective purchaser, at no
10cost, current copies of any documents specified by Section 4525
11that are in the possession of the seller.
12(7) The fee for each document provided to the seller for the
13purpose of transmission to the prospective purchaser shall be
14individually itemized in the statement required to be provided by
15the seller to the prospective purchaser.
16(8) It is the responsibility of the seller to compensate the
17association, person, or entity that provides the documents required
18to be provided by Section 4525 to the prospective purchaser.
19(c) An association may contract with any person or entity to
20facilitate compliance with this section on behalf of the association.
21(d) The association shall also provide a recipient authorized by
22the owner of a separate interest with a copy of the completed form
23specified in Section 4528 at the time the required documents are
24delivered.
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