Official record
Measure details
- Jurisdiction
- California
- Session
- 20252026
- Chamber
- upper
- Classification
- bill
- Subjects
- Commoninterestdevelopments, management
- Introduced / first action
- 2026-02-19 00:00:00
Source-supplied abstracts
(1) Existing law, the Davis-Stirling Common Interest Development Act (act) , provides for the creation and regulation of common interest developments. Existing law defines "management services" for purposes of a common interest development to mean specified acts performed or offered to be performed in an advisory capacity for an association, including implementing provisions of governing documents for the operation of the common interest development. This bill would revise the above definition to specify that it means acts performed or offered to be performed by an agent, including a managing agent and its employees, in an advisory capacity for an association, as prescribed. Existing law imposes certain fiduciary duties on managers and agents of common interest developments. This bill would provide that a managing agent, including its employees, that facilitates specified activities, including reviewing association operating accounts, owes a duty of care that is prudent and provides the highest good faith effort to the association and its members. (2) Existing law requires a common interest development to be managed by an association and requires the association to distribute to its members an annual budget that includes, among other things, a summary of the association's property, general liability, earthquake, flood, and fidelity insurance policies, a review of the financial statement of the association, and an annual policy statement, as provided. Existing law requires the owner of a separate interest in a common interest development to provide specified documents to a prospective purchaser as soon as practicable before the transfer of title or execution of a real property sales contract, including a copy of the most recent distributed annual budget, review of the financial statement, and annual policy statement and a report issued pursuant to the most recent inspection conducted. This bill would require the association, upon request, to provide the owner of a separate interest, or their agent, with those documents as soon as practicable. The bill would require the owner to provide additional information, including, among other things, if separately requested by the purchaser, the location on the first page of the report where certain facts about the exterior elevated elements and the number of units impacted may be found. The bill would make various other related and conforming changes to those provisions. This bill would incorporate additional changes to Section 5200 of the Civil Code proposed by AB 739 to be operative only if this bill and AB 739 are enacted and this bill is enacted last. This bill would incorporate additional changes to Section 5550 of the Civil Code proposed by AB 2050 to be operative only if this bill and AB 2050 are enacted and this bill is enacted last.
Sponsors
- Wahab (primary), author