Transfer Disclosure - Ownership And Transfer Of Interests - CA Civil Law

Section § 4525

If you're selling a separate interest in a property, like a condo or townhome, you need to provide certain documents to the potential buyer before finalizing the sale. This includes things like the property's governing rules, any unusual age-based restrictions, recent financial statements, and unresolved issues or violations. Also, if there's a rule against renting the property, that has to be disclosed. If the buyer asks, you must also provide the last year's worth of board meeting minutes. There are some exceptions if you're subject to certain business regulations.

(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.

(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 Section 11018.6 of the Business and Professions Code.

separate interest sale governing documents age restrictions financial statements association assessments unsolved violations rental prohibitions board meeting minutes common interest development property disclosures buyer information assessment changes unpaid fines occupancy rules defect list disclosure

(Amended by Stats. 2013, Ch. 183, Sec. 14. (SB 745) Effective January 1, 2014.)

Section § 4528

This section specifies the required format for a billing form related to real estate transactions. It outlines that sellers can offer documents about the property at no charge to potential buyers, provided under Section 4525 of the Civil Code. Sellers can choose which documents to buy from the list but aren't obligated to purchase everything. The document should include details like the property address, owner's information, and who provides these items. Specific documents, like Articles of Incorporation, CC&Rs, and financial assessments, are listed. Any fees listed on this form might not include all potential escrow-related costs, and separate charges may apply for additional documents.

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*

The seller may, in accordance with Section 4530 of the Civil Code, 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.

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

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 (DP)

Document

Civil Code Section Included

Fee for Document

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)

Rental restrictions, if any

Section 4525(a)(9)

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 shall be charged separately.

billing disclosures real estate transactions seller obligations property documents prospective purchaser Section 4525 escrow fees Articles of Incorporation CC&Rs financial assessments document fees property address owner information common area defects meeting minutes

(Amended by Stats. 2017, Ch. 127, Sec. 2. (AB 690) Effective January 1, 2018.)

Section § 4530

This law requires homeowners' associations to provide copies of certain documents to owners or their authorized agents within 10 days of request. These documents can be in electronic form if the association keeps them that way, and they can be posted on the association's website. Associations can charge a fee to cover the cost of providing these documents, but they must give an estimate of these fees beforehand. If a request is canceled before any work is done, no fees should be collected. Fees must be itemized and separate from other charges in a property transaction. Sellers need to provide prospective buyers with current copies of certain documents at no cost, and associations may work with third parties to manage these requirements.

(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. A seller may request to purchase some or all of these documents, but shall not be required to purchase all of the documents listed on the form specified in Section 4528.

homeowners' association document request electronic documents transaction fees cancellation policy cost estimate seller responsibility itemized fees prospective purchaser Section 4525 documents Section 4528 form document disclosure third party contracts web-based document access fee refund condition

(Amended by Stats. 2017, Ch. 127, Sec. 3. (AB 690) Effective January 1, 2018.)

Section § 4535

If you're an owner, and you want to transfer ownership of a particular property, you not only need to follow the rules in this section but also need to meet the requirements outlined in Sections 1133 and 1134.

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

owner transferring title separate interest property transfer Sections 1133 Sections 1134 ownership title transfer requirements real estate property law compliance legal requirements title deed transfer process real property

(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)

Section § 4540

If someone intentionally breaks the rules in this article, they have to pay the buyer for any harm caused. They might also have to pay a penalty of up to $500. If the case goes to court, the winner can have their legal costs covered.

Any person who willfully violates this article 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 attorney’s fees.

intentional violation actual damages civil penalty five hundred dollars purchaser compensation attorney's fees prevailing party separate interest legal liability court enforcement

(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)

Section § 4545

This law essentially says that even if real estate is transferred illegally according to this specific law, the ownership of the property still remains valid. The illegal transfer doesn't invalidate the title itself.

Nothing in this article affects the validity of title to real property transferred in violation of this article.

real property property title title validity illegal transfer real estate transfer violation property ownership title to property article violation transfer laws

(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)