Bill Text: CA AB2430 | 2013-2014 | Regular Session | Chaptered
Bill Title: Transfer disclosures.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-07-23 - Chaptered by Secretary of State - Chapter 185, Statutes of 2014. [AB2430 Detail]
Download: California-2013-AB2430-Chaptered.html
BILL NUMBER: AB 2430 CHAPTERED
BILL TEXT
CHAPTER 185
FILED WITH SECRETARY OF STATE JULY 23, 2014
APPROVED BY GOVERNOR JULY 23, 2014
PASSED THE SENATE JULY 3, 2014
PASSED THE ASSEMBLY MAY 15, 2014
AMENDED IN ASSEMBLY MAY 7, 2014
AMENDED IN ASSEMBLY APRIL 7, 2014
AMENDED IN ASSEMBLY MARCH 20, 2014
INTRODUCED BY Assembly Member Maienschein
FEBRUARY 21, 2014
An act to amend Sections 4528 and 4530 of the Civil Code, relating
to common interest developments.
LEGISLATIVE COUNSEL'S DIGEST
AB 2430, 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 4528 of the Civil Code is amended to read:
4528. The form for billing disclosures required by Section 4530
shall be in at least 10-point type and 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), Not
Applicable
(N/App),
or
Directly
Provided
by Seller
and
confirmed
in writing
by Seller
as a
current
document
Civil Code Fee (DP)
Document Section for
Included Docume
nt
Articles of
Incorporation or Section
statement that not 4525(a)(1)
incorporated
CC&Rs Section
4525(a)(1)
Bylaws Section
4525(a)(1)
Operating Rules Section
4525(a)(1)
Age restrictions, Section
if any 4525(a)(2)
Rental Section
restrictions, if 4525(a)(9)
any
Annual budget Sections
report or summary, 5300 and
including reserve 4525(a)(3)
study
Assessment and Sections
reserve funding 5300 and
disclosure summary 4525(a)(4)
Financial Sections
statement review 5305 and
4525(a)(3)
Assessment Sections
enforcement policy 5310 and
4525(a)(4)
Sections
Insurance summary 5300 and
4525(a)(3)
Regular assessment Section
4525(a)(4)
Special assessment Section
4525(a)(4)
Emergency Section
assessment 4525(a)(4)
Other unpaid Sections
obligations of 5675 and
seller 4525(a)(4)
Sections
Approved changes 5300 and
to assessments 4525(a)(4),
(8)
Settlement notice Sections
regarding common 4525(a)(6),
area defects (7), and
6100
Sections
Preliminary list 4525(a)(6),
of defects 6000, and
6100
Notice(s) of Sections
violation 5855 and
4525(a)(5)
Required statement Section 4525
of fees
Minutes of regular
board meetings
conducted over the Section
previous 12 4525(a)(10)
months, if
requested
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 shall
be charged separately.
SEC. 2. Section 4530 of the Civil Code is amended to read:
4530. (a) (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 all of the requested documents specified in
Section 4525.
(2) 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.
(3) 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 authorized pursuant to subdivision (b).
(b) (1) The association may collect a reasonable fee from the
seller based upon the association's actual cost for the procurement,
preparation, reproduction, and delivery of the documents requested
pursuant to this section. An additional fee shall not be charged for
the electronic delivery in lieu of a hard copy delivery of the
documents requested.
(2) 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 prior to processing the request in paragraph
(1) of subdivision (a).
(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, separately stated, and separately billed from,
all other fees, fines, or assessments billed as part of the transfer
or sales transaction.
(5) Any documents not expressly required by Section 4525 to be
provided to a prospective purchaser by the seller shall not be
included in the document disclosure required by this section.
Bundling of documents required to be provided pursuant to this
section with other documents relating to the transaction is
prohibited.
(6) A seller shall provide to the prospective purchaser, at no
cost, current copies of any documents specified by Section 4525 that
are in the possession of the seller.
(7) The fee for each document provided to the seller for the
purpose of transmission to the prospective purchaser shall be
individually itemized in the statement required to be provided by the
seller to the prospective purchaser.
(8) It is the responsibility of the seller to compensate the
association, person, or entity that provides the documents required
to be provided by Section 4525 to the prospective purchaser.
(c) An association may contract with any person or entity to
facilitate compliance with this section on behalf of the association.
(d) 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.
