Bill Text: CA SB745 | 2013-2014 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Housing.
Spectrum: Slight Partisan Bill (Democrat 8-3)
Status: (Passed) 2013-08-27 - Chaptered by Secretary of State. Chapter 183, Statutes of 2013. [SB745 Detail]
Download: California-2013-SB745-Introduced.html
Bill Title: Housing.
Spectrum: Slight Partisan Bill (Democrat 8-3)
Status: (Passed) 2013-08-27 - Chaptered by Secretary of State. Chapter 183, Statutes of 2013. [SB745 Detail]
Download: California-2013-SB745-Introduced.html
BILL NUMBER: SB 745 INTRODUCED
BILL TEXT
INTRODUCED BY Committee on Transportation and Housing (Senators
DeSaulnier (Chair), Beall, Cannella, Gaines, Galgiani, Hill, Lara,
Liu, Pavley, Roth, and Wyland)
FEBRUARY 22, 2013
An act to amend Sections 1941.4, 2924b, 4005, 4035, 4090, 4290,
4525, 4528, and 4530 of, and to repeal Sections 1363.05, 1368, and
1368.2 of the Civil Code, and to amend Section 12191 of the
Government Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
SB 745, as introduced, Committee on Transportation and Housing.
Housing.
(1) Existing law, the Davis-Sterling Common Interest Development
Act defines and regulates common interest developments. Operative
January 1, 2014, the act will be reorganized and recodified.
This bill would repeal provisions of the act that are superseded
by the reorganization and recodification of the act. The bill would
make other conforming changes, would authorize delivery of documents
to the homeowner's association by specified types of mail delivery,
would revise requirements for a board teleconference and the form for
billing disclosures, and would prohibit cancellation fees for
requests for documents, as specified.
(2) Existing law requires the lessor of a building intended for
residential occupation to ensure that the inside telephone wiring
meets the applicable standards of the most recent National Electrical
Code.
This bill would replace the reference to the National Electrical
Code with the California Electrical Code.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1363.05 of the Civil Code is repealed.
1363.05. (a) This section shall be known and may be cited as the
Common Interest Development Open Meeting Act.
(b) Any member of the association may attend meetings of the board
of directors of the association, except when the board adjourns to,
or meets solely in, executive session to consider litigation, matters
relating to the formation of contracts with third parties, member
discipline, personnel matters, or to meet with a member, upon the
member's request, regarding the member's payment of assessments, as
specified in Section 1367 or 1367.1. The board of directors of the
association shall meet in executive session, if requested by a member
who may be subject to a fine, penalty, or other form of discipline,
and the member shall be entitled to attend the executive session. As
specified in paragraph (2) of subdivision (k), a member of the
association shall be entitled to attend a teleconference meeting or
the portion of a teleconference meeting that is open to members, and
that meeting or portion of the meeting shall be audible to the
members in a location specified in the notice of the meeting.
(c) Any matter discussed in executive session shall be generally
noted in the minutes of the immediately following meeting that is
open to the entire membership.
(d) The minutes, minutes proposed for adoption that are marked to
indicate draft status, or a summary of the minutes, of any meeting of
the board of directors of an association, other than an executive
session, shall be available to members within 30 days of the meeting.
The minutes, proposed minutes, or summary minutes shall be
distributed to any member of the association upon request and upon
reimbursement of the association's costs for making that
distribution.
(e) Members of the association shall be notified in writing at the
time that the pro forma budget required in Section 1365 is
distributed, or at the time of any general mailing to the entire
membership of the association, of their right to have copies of the
minutes of meetings of the board of directors, and how and where
those minutes may be obtained.
(f) Unless the bylaws provide for a longer period of notice,
members shall be given notice of the time and place of a meeting as
defined in subdivision (k), except for an emergency meeting or a
meeting that will be held solely in executive session, at least four
days prior to the meeting. Except for an emergency meeting, members
shall be given notice of the time and place of a meeting that will be
held solely in executive session at least two days prior to the
meeting. Notice shall be given by posting the notice in a prominent
place or places within the common area and by mail to any owner who
had requested notification of board meetings by mail, at the address
requested by the owner. Notice may also be given by mail, by delivery
of the notice to each unit in the development, by newsletter or
similar means of communication, or, with the consent of the member,
by electronic means. The notice shall contain the agenda for the
meeting.
(g) An emergency meeting of the board may be called by the
president of the association, or by any two members of the governing
body other than the president, if there are circumstances that could
not have been reasonably foreseen which require immediate attention
and possible action by the board, and which of necessity make it
impracticable to provide notice as required by this section.
(h) The board of directors of the association shall permit any
member of the association to speak at any meeting of the association
or the board of directors, except for meetings of the board held in
executive session. A reasonable time limit for all members of the
association to speak to the board of directors or before a meeting of
the association shall be established by the board of directors.
(i) (1) Except as described in paragraphs (2) to (4), inclusive,
the board of directors of the association may not discuss or take
action on any item at a nonemergency meeting unless the item was
placed on the agenda included in the notice that was posted and
distributed pursuant to subdivision (f). This subdivision does not
prohibit a resident who is not a member of the board from speaking on
issues not on the agenda.
(2) Notwithstanding paragraph (1), a member of the board of
directors, a managing agent or other agent of the board of directors,
or a member of the staff of the board of directors, may do any of
the following:
(A) Briefly respond to statements made or questions posed by a
person speaking at a meeting as described in subdivision (h).
(B) Ask a question for clarification, make a brief announcement,
or make a brief report on his or her own activities, whether in
response to questions posed by a member of the association or based
upon his or her own initiative.
(3) Notwithstanding paragraph (1), the board of directors or a
member of the board of directors, subject to rules or procedures of
the board of directors, may do any of the following:
(A) Provide a reference to, or provide other resources for factual
information to, its managing agent or other agents or staff.
(B) Request its managing agent or other agents or staff to report
back to the board of directors at a subsequent meeting concerning any
matter, or take action to direct its managing agent or other agents
or staff to place a matter of business on a future agenda.
(C) Direct its managing agent or other agents or staff to perform
administrative tasks that are necessary to carry out this
subdivision.
(4) (A) Notwithstanding paragraph (1), the board of directors may
take action on any item of business not appearing on the agenda
posted and distributed pursuant to subdivision (f) under any of the
following conditions:
(i) Upon a determination made by a majority of the board of
directors present at the meeting that an emergency situation exists.
An emergency situation exists if there are circumstances that could
not have been reasonably foreseen by the board, that require
immediate attention and possible action by the board, and that, of
necessity, make it impracticable to provide notice.
(ii) Upon a determination made by the board by a vote of
two-thirds of the members present at the meeting, or, if less than
two-thirds of total membership of the board is present at the
meeting, by a unanimous vote of the members present, that there is a
need to take immediate action and that the need for action came to
the attention of the board after the agenda was posted and
distributed pursuant to subdivision (f).
(iii) The item appeared on an agenda that was posted and
distributed pursuant to subdivision (f) for a prior meeting of the
board of directors that occurred not more than 30 calendar days
before the date that action is taken on the item and, at the prior
meeting, action on the item was continued to the meeting at which the
action is taken.
(B) Before discussing any item pursuant to this paragraph, the
board of directors shall openly identify the item to the members in
attendance at the meeting.
(j) (1) The board of directors shall not take action on any item
of business outside of a meeting.
(2) (A) Notwithstanding Section 7211 of the Corporations Code, the
board of directors shall not conduct a meeting via a series of
electronic transmissions, including, but not limited to, electronic
mail, except as specified in subparagraph (B).
(B) Electronic transmissions may be used as a method of conducting
an emergency meeting if all members of the board, individually or
collectively, consent in writing to that action, and if the written
consent or consents are filed with the minutes of the meeting of the
board. These written consents may be transmitted electronically.
(k) As used in this section:
(1) "Item of business" means any action within the authority of
the board, except those actions that the board has validly delegated
to any other person or persons, managing agent, officer of the
association, or committee of the board comprising less than a
majority of the directors.
(2) "Meeting" means either of the following:
(A) A congregation of a majority of the members of the board at
the same time and place to hear, discuss, or deliberate upon any item
of business that is within the authority of the board.
(B) A teleconference in which a majority of the members of the
board, in different locations, are connected by electronic means,
through audio or video or both. A teleconference meeting shall be
conducted in a manner that protects the rights of members of the
association and otherwise complies with the requirements of this
title. Except for a meeting that will be held solely in executive
session, the notice of the teleconference meeting shall identify at
least one physical location so that members of the association may
attend and at least one member of the board of directors or a person
designated by the board shall be present at that location.
Participation by board members in a teleconference meeting
constitutes presence at that meeting as long as all board members
participating in the meeting are able to hear one another and members
of the association speaking on matters before the board.
SEC. 2. Section 1368 of the Civil Code is repealed.
1368. (a) The owner of a separate interest, other than an owner
subject to the requirements of Section 11018.6 of the Business and
Professions Code, shall, as soon as practicable before transfer of
title to the separate interest or execution of a real property sales
contract therefor, as defined in Section 2985, provide the following
to the prospective purchaser:
(1) A copy of the governing documents of the common interest
development, including any operating rules, and including a copy of
the association's articles of incorporation, or, if not incorporated,
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
Section 1365.
(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 Section 1367 or 1367.1.
(5) A copy or a summary of any notice previously sent to the owner
pursuant to subdivision (h) of Section 1363 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
of the association pursuant to Section 1375, unless the association
and the builder subsequently enter into a settlement agreement or
otherwise resolve the matter and the association complies with
Section 1375.1. 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
1375.1.
(8) Any change in the association's current regular and special
assessments and fees which have been approved by the association's
board of directors, 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 the meetings, excluding meetings held in executive
session, of the association's board of directors, conducted over the
previous 12 months, that were approved by the association's board of
directors.
(b) (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 the requested documents specified in paragraphs (1) to
(10), inclusive, of subdivision (a). Upon receipt of a written
request, the association shall provide, on the form described in
Section 1368.2, a written or electronic estimate of the fees that
will be assessed for providing the requested documents. 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. The association may
collect a reasonable fee based upon the association's actual cost for
the procurement, preparation, reproduction, and delivery of the
documents requested pursuant to the provisions of this section.
(2) No additional fees may be charged by the association for the
electronic delivery of the documents requested.
(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 other fees, fines, or assessments billed as part
of the transfer or sales transaction. 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 allowed
pursuant to paragraph (1).
(5) An association may contract with any person or entity to
facilitate compliance with the requirements of this subdivision on
behalf of the association.
(6) 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 1368.2 at the time the required documents are
delivered.
(c) (1) Except as provided in paragraph (2), neither an
association nor a community service organization or similar entity
may impose or collect any assessment, penalty, or fee in connection
with a transfer of title or any other interest except for the
following:
(A) An amount not to exceed the association's actual costs to
change its records.
(B) An amount authorized by subdivision (b).
(2) The prohibition in paragraph (1) does not apply to a community
service organization or similar entity, or to a nonprofit entity
that provides services to a common interest development under a
declaration of trust, that is described in subparagraph (A) or (B):
(A) The community service organization or similar entity satisfies
both of the following requirements:
(i) The community service organization or similar entity was
established prior to February 20, 2003.
(ii) The community service organization or similar entity exists
and operates, in whole or in part, to fund or perform environmental
mitigation or to restore or maintain wetlands or native habitat, as
required by the state or local government as an express written
condition of development.
(B) The community service organization or similar entity, or a
nonprofit entity that provides services to a common interest
development under a declaration of trust, satisfies all of the
following requirements:
(i) The organization or entity is not an organization or entity
described in subparagraph (A).
(ii) The organization or entity was established and received a
transfer fee prior to January 1, 2004.
(iii) On and after January 1, 2006, the organization or entity
offers a purchaser the following payment options for the fee or
charge it collects at time of transfer:
(I) Paying the fee or charge at the time of transfer.
(II) Paying the fee or charge pursuant to an installment payment
plan for a period of not less than seven years. If the purchaser
elects to pay the fee or charge in installment payments, the
organization or entity may also collect additional amounts that do
not exceed the actual costs for billing and financing on the amount
owed. If the purchaser sells the separate interest before the end of
the installment payment plan period, he or she shall pay the
remaining balance prior to transfer.
(3) For the purposes of this subdivision, a "community service
organization or similar entity" means a nonprofit entity, other than
an association, that is organized to provide services to residents of
the common interest development or to the public in addition to the
residents, to the extent community common areas or facilities are
available to the public. A "community service organization or similar
entity" does not include an entity that has been organized solely to
raise moneys and contribute to other nonprofit organizations that
are qualified as tax exempt under Section 501(c)(3) of the Internal
Revenue Code and that provide housing or housing assistance.
(d) Any person or entity who willfully violates this section 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 attorneys' fees.
(e) Nothing in this section affects the validity of title to real
property transferred in violation of this section.
(f) In addition to the requirements of this section, an owner
transferring title to a separate interest shall comply with
applicable requirements of Sections 1133 and 1134.
(g) For the purposes of this section, a person who acts as a
community association manager is an agent, as defined in Section
2297, of the association.
SEC. 3. Section 1368.2 of the Civil Code is repealed.
1368.2. The form for billing disclosures required by Section 1368
shall be in substantially the following form and in at least
10-point type:
CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY
SECTION 1368*
Property Address __________________________________
Owner of Property _________________________________
Owner's Mailing Address ______________________
(If known or different
_______________________
from property address.)
Provider of the Section 1368 Items:
_________________________________________________
Print Name Position or Title Association or Agent
___________________
Date Form Completed
Check or Complete Applicable Column or Columns
Below
Not
Available
Document Civil Code Included (N/A) or
Section Not
Applicable
(N/App)
Articles of
Incorporation Section
or statement 1368(a)(1) _________ ___________
that not
incorporated
CC&Rs Section _________ ___________
1368(a)(1)
Bylaws Section _________ ___________
1368(a)(1)
Operating Rules Section _________ ___________
1368(a)(1)
Age Section
restrictions, 1368(a)(2) _________ ___________
if any
Pro forma
operating Sections
budget or 1365 and _________ ___________
summary, 1368(a)(3)
including
reserve study
Assessment and Sections
reserve funding 1365 and _________ ___________
disclosure 1368(a)(4)
summary
Financial Sections
statement review 1365 and _________ ___________
1368(a)(3)
Assessment Sections
enforcement 1365 and _________ ___________
policy 1368(a)(4)
Insurance Sections
summary 1365 and _________ ___________
1368(a)(3)
Regular Section _________ ___________
assessment 1368(a)(4)
Special Section _________ ___________
assessment 1368(a)(4)
Emergency Section _________ ___________
assessment 1368(a)(4)
Other unpaid Sections
obligations of 1367.1 and _________ ___________
seller 1368(a)(4)
Approved Sections
changes to 1365 and _________ ___________
assessments 1368(a)(4),
(8)
Settlement Sections
notice 1368(a)(6),
regarding (7) and _________ ___________
common area 1375.1
defects
Sections
Preliminary 1368(a)(6), _________ ___________
list of defects 1375, and
1375.1
Notice(s) of Sections
violation 1363 and _________ ___________
1368(a)(5)
Required
statement of Section 1368 _________ ___________
fees
Minutes of
regular
meetings of the
board of
directors Section _________ ___________
conducted over 1368(a)(9)
the
previous 12
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 1368 may be
charged separately.
SEC. 4. Section 1941.4 of the Civil Code is amended to read:
1941.4. The lessor of a building intended for the residential
occupation of human beings shall be responsible for installing at
least one usable telephone
jack and for placing and maintaining the inside telephone wiring in
good working order, shall ensure that the inside telephone wiring
meets the applicable standards of the most recent National
Electrical Code as adopted by the Electronic Industry Association
California Electrical Code , and shall make any
required repairs. The lessor shall not restrict or interfere with
access by the telephone utility to its telephone network facilities
up to the demarcation point separating the inside wiring.
"Inside telephone wiring" for purposes of this section, means that
portion of the telephone wire that connects the telephone equipment
at the customer's premises to the telephone network at a demarcation
point determined by the telephone corporation in accordance with
orders of the Public Utilities Commission.
SEC. 5. Section 2924b of the Civil Code is amended to read:
2924b. (a) Any person desiring a copy of any notice of default
and of any notice of sale under any deed of trust or mortgage with
power of sale upon real property or an estate for years therein, as
to which deed of trust or mortgage the power of sale cannot be
exercised until these notices are given for the time and in the
manner provided in Section 2924 may, at any time subsequent to
recordation of the deed of trust or mortgage and prior to recordation
of notice of default thereunder, cause to be filed for record in the
office of the recorder of any county in which any part or parcel of
the real property is situated, a duly acknowledged request for a copy
of the notice of default and of sale. This request shall be signed
and acknowledged by the person making the request, specifying the
name and address of the person to whom the notice is to be mailed,
shall identify the deed of trust or mortgage by stating the names of
the parties thereto, the date of recordation thereof, and the book
and page where the deed of trust or mortgage is recorded or the
recorder's number, and shall be in substantially the following form:
""In accordance with Section 2924b, Civil Code,
request is hereby
made that a copy of any notice of default and a
copy of any notice of sale
under the deed of trust (or mortgage) recorded
______, ____, in Book
_____ page ____ records of ____ County, (or filed
for record with
recorder's serial number ____, _______ County)
California, executed
by ____ as trustor (or mortgagor) in which
________ is named as
beneficiary (or mortgagee) and
______________ as trustee be mailed to
_________________ at __________________________.
Name Address
NOTICE: A copy of any notice of default and of
any notice of sale will be
sent only to the address contained in this
recorded request. If your address changes, a new
request must be recorded.
Signature ______________''
Upon the filing for record of the request, the recorder shall
index in the general index of grantors the names of the trustors (or
mortgagor) recited therein and the names of persons requesting
copies.
(b) The mortgagee, trustee, or other person authorized to record
the notice of default or the notice of sale shall do each of the
following:
(1) Within 10 business days following recordation of the notice of
default, deposit or cause to be deposited in the United States mail
an envelope, sent by registered or certified mail with postage
prepaid, containing a copy of the notice with the recording date
shown thereon, addressed to each person whose name and address are
set forth in a duly recorded request therefor, directed to the
address designated in the request and to each trustor or mortgagor at
his or her last known address if different than the address
specified in the deed of trust or mortgage with power of sale.
(2) At least 20 days before the date of sale, deposit or cause to
be deposited in the United States mail an envelope, sent by
registered or certified mail with postage prepaid, containing a copy
of the notice of the time and place of sale, addressed to each person
whose name and address are set forth in a duly recorded request
therefor, directed to the address designated in the request and to
each trustor or mortgagor at his or her last known address if
different than the address specified in the deed of trust or mortgage
with power of sale.
(3) As used in paragraphs (1) and (2), the "last known address" of
each trustor or mortgagor means the last business or residence
physical address actually known by the mortgagee, beneficiary,
trustee, or other person authorized to record the notice of default.
For the purposes of this subdivision, an address is "actually known"
if it is contained in the original deed of trust or mortgage, or in
any subsequent written notification of a change of physical address
from the trustor or mortgagor pursuant to the deed of trust or
mortgage. For the purposes of this subdivision, "physical address"
does not include an e-mail or any form of electronic address for a
trustor or mortgagor. The beneficiary shall inform the trustee of the
trustor's last address actually known by the beneficiary. However,
the trustee shall incur no liability for failing to send any notice
to the last address unless the trustee has actual knowledge of it.
(4) A "person authorized to record the notice of default or the
notice of sale" shall include an agent for the mortgagee or
beneficiary, an agent of the named trustee, any person designated in
an executed substitution of trustee, or an agent of that substituted
trustee.
(c) The mortgagee, trustee, or other person authorized to record
the notice of default or the notice of sale shall do the following:
(1) Within one month following recordation of the notice of
default, deposit or cause to be deposited in the United States mail
an envelope, sent by registered or certified mail with postage
prepaid, containing a copy of the notice with the recording date
shown thereon, addressed to each person set forth in paragraph (2),
provided that the estate or interest of any person entitled to
receive notice under this subdivision is acquired by an instrument
sufficient to impart constructive notice of the estate or interest in
the land or portion thereof that is subject to the deed of trust or
mortgage being foreclosed, and provided the instrument is recorded in
the office of the county recorder so as to impart that constructive
notice prior to the recording date of the notice of default and
provided the instrument as so recorded sets forth a mailing address
that the county recorder shall use, as instructed within the
instrument, for the return of the instrument after recording, and
which address shall be the address used for the purposes of mailing
notices herein.
(2) The persons to whom notice shall be mailed under this
subdivision are:
(A) The successor in interest, as of the recording date of the
notice of default, of the estate or interest or any portion thereof
of the trustor or mortgagor of the deed of trust or mortgage being
foreclosed.
(B) The beneficiary or mortgagee of any deed of trust or mortgage
recorded subsequent to the deed of trust or mortgage being
foreclosed, or recorded prior to or concurrently with the deed of
trust or mortgage being foreclosed but subject to a recorded
agreement or a recorded statement of subordination to the deed of
trust or mortgage being foreclosed.
(C) The assignee of any interest of the beneficiary or mortgagee
described in subparagraph (B), as of the recording date of the notice
of default.
(D) The vendee of any contract of sale, or the lessee of any
lease, of the estate or interest being foreclosed that is recorded
subsequent to the deed of trust or mortgage being foreclosed, or
recorded prior to or concurrently with the deed of trust or mortgage
being foreclosed but subject to a recorded agreement or statement of
subordination to the deed of trust or mortgage being foreclosed.
(E) The successor in interest to the vendee or lessee described in
subparagraph (D), as of the recording date of the notice of default.
(F) The office of the Controller, Sacramento, California, where,
as of the recording date of the notice of default, a "Notice of Lien
for Postponed Property Taxes" has been recorded against the real
property to which the notice of default applies.
(3) At least 20 days before the date of sale, deposit or cause to
be deposited in the United States mail an envelope, sent by
registered or certified mail with postage prepaid, containing a copy
of the notice of the time and place of sale addressed to each person
to whom a copy of the notice of default is to be mailed as provided
in paragraphs (1) and (2), and addressed to the office of any state
taxing agency, Sacramento, California, that has recorded, subsequent
to the deed of trust or mortgage being foreclosed, a notice of tax
lien prior to the recording date of the notice of default against the
real property to which the notice of default applies.
(4) Provide a copy of the notice of sale to the Internal Revenue
Service, in accordance with Section 7425 of the Internal Revenue Code
and any applicable federal regulation, if a "Notice of Federal Tax
Lien under Internal Revenue Laws" has been recorded, subsequent to
the deed of trust or mortgage being foreclosed, against the real
property to which the notice of sale applies. The failure to provide
the Internal Revenue Service with a copy of the notice of sale
pursuant to this paragraph shall be sufficient cause to rescind the
trustee's sale and invalidate the trustee's deed, at the option of
either the successful bidder at the trustee's sale or the trustee,
and in either case with the consent of the beneficiary. Any option to
rescind the trustee's sale pursuant to this paragraph shall be
exercised prior to any transfer of the property by the successful
bidder to a bona fide purchaser for value. A recision of the trustee'
s sale pursuant to this paragraph may be recorded in a notice of
recision pursuant to Section 1058.5.
(5) The mailing of notices in the manner set forth in paragraph
(1) shall not impose upon any licensed attorney, agent, or employee
of any person entitled to receive notices as herein set forth any
duty to communicate the notice to the entitled person from the fact
that the mailing address used by the county recorder is the address
of the attorney, agent, or employee.
(d) Any deed of trust or mortgage with power of sale hereafter
executed upon real property or an estate for years therein may
contain a request that a copy of any notice of default and a copy of
any notice of sale thereunder shall be mailed to any person or party
thereto at the address of the person given therein, and a copy of any
notice of default and of any notice of sale shall be mailed to each
of these at the same time and in the same manner required as though a
separate request therefor had been filed by each of these persons as
herein authorized. If any deed of trust or mortgage with power of
sale executed after September 19, 1939, except a deed of trust or
mortgage of any of the classes excepted from the provisions of
Section 2924, does not contain a mailing address of the trustor or
mortgagor therein named, and if no request for special notice by the
trustor or mortgagor in substantially the form set forth in this
section has subsequently been recorded, a copy of the notice of
default shall be published once a week for at least four weeks in a
newspaper of general circulation in the county in which the property
is situated, the publication to commence within 10 business days
after the filing of the notice of default. In lieu of publication, a
copy of the notice of default may be delivered personally to the
trustor or mortgagor within the 10 business days or at any time
before publication is completed, or by posting the notice of default
in a conspicuous place on the property and mailing the notice to the
last known address of the trustor or mortgagor.
(e) Any person required to mail a copy of a notice of default or
notice of sale to each trustor or mortgagor pursuant to subdivision
(b) or (c) by registered or certified mail shall simultaneously cause
to be deposited in the United States mail, with postage prepaid and
mailed by first-class mail, an envelope containing an additional copy
of the required notice addressed to each trustor or mortgagor at the
same address to which the notice is sent by registered or certified
mail pursuant to subdivision (b) or (c). The person shall execute and
retain an affidavit identifying the notice mailed, showing the name
and residence or business address of that person, that he or she is
over the age of 18 years, the date of deposit in the mail, the name
and address of the trustor or mortgagor to whom sent, and that the
envelope was sealed and deposited in the mail with postage fully
prepaid. In the absence of fraud, the affidavit required by this
subdivision shall establish a conclusive presumption of mailing.
(f) (1) Notwithstanding subdivision (a), with respect to separate
interests governed by an association, as defined in
subdivision (a) of Section 1351
4080 , the association may cause to be filed in the office of
the recorder in the county in which the separate interests are
situated a request that a mortgagee, trustee, or other person
authorized to record a notice of default regarding any of those
separate interests mail to the association a copy of any trustee's
deed upon sale concerning a separate interest. The request shall
include a legal description or the assessor's parcel number of all
the separate interests. A request recorded pursuant to this
subdivision shall include the name and address of the association and
a statement that it is a homeowners' association. Subsequent
requests of an association shall supersede prior requests. A request
pursuant to this subdivision shall be recorded before the filing of a
notice of default. The mortgagee, trustee, or other authorized
person shall mail the requested information to the association within
15 business days following the date of the trustee's sale. Failure
to mail the request, pursuant to this subdivision, shall not affect
the title to real property.
(2) A request filed pursuant to paragraph (1) does not, for
purposes of Section 27288.1 of the Government Code, constitute a
document that either effects or evidences a transfer or encumbrance
of an interest in real property or that releases or terminates any
interest, right, or encumbrance of an interest in real property.
(g) No request for a copy of any notice filed for record pursuant
to this section, no statement or allegation in the request, and no
record thereof shall affect the title to real property or be deemed
notice to any person that any person requesting copies of notice has
or claims any right, title, or interest in, or lien or charge upon
the property described in the deed of trust or mortgage referred to
therein.
(h) "Business day," as used in this section, has the meaning
specified in Section 9.
SEC. 6. Section 4005 of the Civil Code is amended to read:
4005. Division, part, title, chapter, and
article , and section headings do not in any manner affect
the scope, meaning, or intent of this act
part .
SEC. 7. Section 4035 of the Civil Code is amended to read:
4035. (a) If a provision of this act part
requires that a document be delivered to an association, the
document shall be delivered to the person designated in the annual
policy statement, prepared pursuant to Section 5310, to receive
documents on behalf of the association. If no person has been
designated to receive documents, the document shall be delivered to
the president or secretary of the association.
(b) A document delivered pursuant to this section may be delivered
by any of the following methods:
(1) By e-mail, facsimile, or other electronic means, if the
association has assented to that method of delivery.
(2) By personal delivery, if the association has assented to that
method of delivery. If the association accepts a document by personal
delivery it shall provide a written receipt acknowledging delivery
of the document.
(3) By first-class mail, postage prepaid, registered or certified
mail, express mail, or overnight delivery by an express service
center.
SEC. 8. Section 4090 of the Civil Code is amended to read:
4090. "Board meeting" means either of the following:
(a) A congregation, at the same time and place, of a sufficient
number of directors to establish a quorum of the board, to hear,
discuss, or deliberate upon any item of business that is within the
authority of the board.
(b) A teleconference, where a sufficient number of directors to
establish a quorum of the board, in different locations, are
connected by electronic means, through audio or video, or both. A
teleconference meeting shall be conducted in a manner that protects
the rights of members of the association and otherwise complies with
the requirements of this act. Except for a meeting that will be held
solely in executive session, the notice of the teleconference meeting
shall identify at least one physical location so that members of the
association may attend, and at least one director or a person
designated by the board shall be present at that location.
Participation by directors in a teleconference meeting constitutes
presence at that meeting as long as all directors participating are
able to hear one another, as well as members of the association
speaking on matters before the board.
SEC. 9. Section 4290 of the Civil Code is amended to read:
4290. (a) The certificate consenting to the recordation of a
condominium plan that is required by subdivision (c) of Section
4120 4185 shall be signed and
acknowledged by all of the following persons:
(1) The record owner of fee title to that property included in the
condominium project.
(2) In the case of a condominium project that will terminate upon
the termination of an estate for years, by all lessors and lessees of
the estate for years.
(3) In the case of a condominium project subject to a life estate,
by all life tenants and remainder interests.
(4) The trustee or the beneficiary of each recorded deed of trust,
and the mortgagee of each recorded mortgage encumbering the
property.
(b) Owners of mineral rights, easements, rights-of-way, and other
nonpossessory interests do not need to sign the certificate.
(c) In the event a conversion to condominiums of a community
apartment project or stock cooperative has been approved by the
required number of owners, trustees, beneficiaries, and mortgagees
pursuant to Section 66452.10 of the Government Code, the certificate
need only be signed by those owners, trustees, beneficiaries, and
mortgagees approving the conversion.
SEC. 10. Section 4525 of the Civil Code is amended to read:
4525. (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 and its applicability
.
(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
the requirements of Section 11018.6 of the Business
and Professions Code.
SEC. 11. 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) or
Not
Applicable
Civil Code (N/App)
Document Section
Included
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, if Section
any 4525(a)(2)
Rental restrictions, Section
if any 4525(a)(9)
Annual budget report
or summary, Sections 5300
including reserve and 4525(a)(3)
study
Assessment and Sections 5300
reserve funding and 4525(a)(4)
disclosure summary
Financial statement Sections 5305
review and 4525(a)(3)
Assessment Sections 5310
enforcement policy 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 Sections 5675
obligations of seller and 4525(a)(4)
Sections 5300
Approved changes to and
assessments 4525(a)(4),
(8)
Settlement notice Sections
regarding common 4525(a)(6),
area defects (7), and 6100
Preliminary list of Sections
defects 4525(a)(6),
6000, and 6100
Notice(s) of Sections 5855
violation and 4525(a)(5)
Required statement Section 4525
of fees
Minutes of regular
board meetings Section
conducted over the 4525(a)(10)
previous 12 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 may be
charged separately.
SEC. 12. 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 the requested
documents specified in Section 4525.
(b) (1) 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. The
(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 . Delivery of the documents
required by this section shall not be with held for any
reason nor subject to any condition except the payment of the fee
authorized pursuant to subdivision (b) . The
(b) (1)
The association may collect a reasonable
fee based upon the association's actual cost for the procurement,
preparation, reproduction, and delivery of the documents requested
pursuant to the provisions of this section.
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.
(2) No additional fees may be charged by the association for the
electronic delivery of the documents requested.
(3) Fees for any documents required by this section shall be
distinguished from other fees, fines, or assessments billed as part
of the transfer or sales transaction. 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
allowed pursuant to paragraph (1).
(4) If a request for documents is canceled in writing, the
association shall refund all fees collected pursuant to paragraph (1)
or an amount that represents the portion of the work not performed.
(5) If a request for documents is canceled in writing by the same
party making the request and work had not been performed to meet the
request, a cancellation fee may not be charged or collected.
(6) If a request for documents is canceled in writing and a fee
was collected for an amount that represents the portion of the work
performed to meet the request, a cancellation fee may not be charged
or collected.
(4)
(c) An association may contract with any person or
entity to facilitate compliance with the requirements of
this subdivision (b) on behalf of the
association.
(5)
(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.
SEC. 13. Section 12191 of the Government Code is amended to read:
12191. The miscellaneous business entity filing fees are the
following:
(a) Foreign Associations, as defined in Sections 170 and 171 of
the Corporations Code:
(1) Filing the statement and designation upon the qualification of
a foreign association pursuant to Section 2105 of the Corporations
Code: One hundred dollars ($100).
(2) Filing an amended statement and designation by a foreign
association pursuant to Section 2107 of the Corporations Code: Thirty
dollars ($30).
(3) Filing a certificate showing the surrender of the right of a
foreign association to transact intrastate business pursuant to
Section 2112 of the Corporations Code: No fee.
(b) Unincorporated Associations:
(1) Filing a statement in accordance with Section 18200 of the
Corporations Code as to principal place of office or place for
sending notices or designating agent for service: Twenty-five dollars
($25).
(2) Insignia Registrations: Ten dollars ($10).
(c) Community Associations and Common Interest Developments:
(1) Filing a statement by a community association in accordance
with Section 1363.6 5405 of the Civil
Code to register the common interest development that it manages: An
amount not to exceed thirty dollars ($30).
(2) Filing an amended statement by a community association in
accordance with Section 1363.6 5405 of
the Civil Code: No fee.
