These rules specify the standards and procedures for handling the documents and fees related to the sale or transfer of condominium units in a residential common interest development (CID).
Civil Code §1368, 1368.2
Added by A.B. 771
Effective: January 1, 2012
Before the sale or transfer of a common interest development (CID) unit, the owner of the unit is now required to provide a prospective purchaser with a copy of the minutes for homeowners’ association (HOA) meetings (excluding meetings held by the board of directors in executive session) which took place in the last 12 months and were approved by the board of directors.
Upon an owner’s written request, the HOA must provide the owner (or a recipient authorized by the owner) with a copy of the documents specified in the owner’s request within 10 days of the mailing or delivery of the request. The requested documents may include any of those documents the owner is required to provide a prospective purchaser.
If the documents are maintained in electronic form, they may be posted on the HOA website. The owner also has the option of receiving the documents electronically, without an additional fee.
The HOA may collect a fee for the cost of preparing and delivering the requested documents. However, upon receipt of the owner’s written request for the documents, the HOA must first provide the owner (or a recipient authorized by the owner) with a written or electronic estimate of the fee on the form described in CC §1368.2. [For more information on the form which fulfills this request for HOA documents, see the February 2012 first tuesday form of the month, Request for HOA documentation.]
Editor’s note – The form required of an HOA is to the advantage of the prospective buyer of a CID unit, since it provides more transparency in the transaction process. [Click here to download a free copy of first tuesday Form 135, the updated Request for Homeowner Association Documents.]
The HOA must distinguish the fee for providing the documents from any costs associated with the sale or transfer of the interest and may not withhold delivery of the documents for any reason unless payment of the fee for providing the documents is not received.
The HOA may contract with any person or entity in order to perform any of the requirements specified in this section.