Disclosures

You are here

HOA Transfer Fee Laws for Selling or Transferring Property

When a homeowners association decides to sell or transfer property, HOA transfer fee laws are in place to ensure full disclosure of documents between the real estate company and the homeowners association. The Davis-Stirling Act states that an HOA must disclose certain documents but allows the association to charge reasonable fees for the transferring of the documents

The New Davis-Stirling: Annual Reports and Disclosures

Civil Code sections §5300 and §5310 require an Annual Budget Report and Annual Policy Statement, respectively, to be delivered to all association members on an annual basis, replacing the existing budget and disclosure requirements under the current Davis-Stirling Act.

§5965 - ADR Summary Included in Annual Policy Statement

  1. An association shall annually provide its members a summary of the provisions of this article that specifically references this article. The summary shall include the following language: "Failure of a member of the association to comply with the alternative dispute resolution requirements of Section 5930 of the Civil Code may result in the loss of the member's right to sue the association or another member of the association regarding enforcement of the governing documents or the applicable law."

§5920 - IDR Procedure Included in Annual Policy Statement

The annual policy statement prepared pursuant to Section 5310 shall include a description of the internal dispute resolution process provided pursuant to this article.

§5810 - Notice of Policy Changes

The association shall, as soon as reasonably practicable, provide individual notice pursuant to Section 4040 to all members if any of the policies described in the annual budget report pursuant to Section 5300 have lapsed, been canceled, and are not immediately renewed, restored, or replaced, or if there is a significant change, such as a reduction in coverage or limits or an increase in the deductible, as to any of those policies.

§5570 - Reserve Disclosure Form

(a) The disclosures required by this article with regard to an association or a property shall be summarized on the following form:

Assessment and Reserve Funding Disclosure Summary For the Fiscal Year Ending _____

  1. The regular assessment per ownership interest is $_____ per____. Note: If assessments vary by the size or type of ownership interest, the assessment applicable to this ownership interest may be found on page _____ of the attached summary.

§5375 - Prospective Written Statement

A prospective managing agent of a common interest development shall provide a written statement to the board as soon as practicable, but in no event more than 90 days, before entering into a management agreement which shall contain all of the following information concerning the managing agent:

§5320 - Report Delivery

  1. When a report is prepared pursuant to Section 5300 or 5310, the association shall deliver one of the following documents to all members, by individual delivery pursuant to Section 4040:
    1. The full report.
    2. A summary of the report. The summary shall include a general description of the content of the report. Instructions on how to request a complete copy of the report at no cost to the member shall be printed in at least 10-point boldface type on the first page of the summary.

§5310 - Annual Policy Statement

  1. Within 30 to 90 days before the end of its fiscal year, the board shall distribute an annual policy statement that provides the members with information about association policies. The annual policy statement shall include all of the following information:
    1. The name and address of the person designated to receive official communications to the association, pursuant to §4035.

Pages

Subscribe to RSS - Disclosures