Is the seller of a condominium required to make specified disclosures to the buyer relating to the condominium?
The seller is required to disclose to the buyer the following documents:
(a) The governing documents of the association which would include the CC&R’s, the operating rules, the articles of incorporation and the bylaws;
(b) Age restrictions on occupancy;
(c) Budgets, reserves and assessment documents;
(d) The association’s current regular and special assessments and fees; any special assessments on the owner’s interest that are unpaid; any monetary fines or penalties levied on the owner’s interest that are unpaid;
(e) Any violations of the governing documents that remain unresolved at the time; a list of preliminary defects in connection with any proposed construction defect action and settlement disclosure documents;
(f) Any change in the association’s current regular or special assessment fees which have been approved by the association’s board of directors but have not become due and payable;
(g) Any restrictions on renting or leasing; and
(h) If requested by the purchaser, a copy of the minutes of the board of director meetings for the past 12 months.
See also: Kovich v. Paseo Del Mar Homeowners Association (1996) 41 Cal. App. 4th 863, which held that the association had no duty to tell a prospective purchaser about construction defects or the existence of litigation concerning defects.
See also: Glen Oaks Estates Homeowners Association v. Re/Max Premier Properties, Inc. (2012) 203 Cal. App. 4th 913, which held that the association had standing to bring an action against the developers real estate agent for non-disclosure; Seahaus La Jolla Owners Association (2014) 224 Cal. App. 4th 754, where disclosure by attorney updating homeowners on construction defect suit was protected by attorney-client privilege, even though attorney did not represent all the homeowners; and Kovich v. Paseo Del Mar Homeowners Association (1996) 41 Cal. App. 4th 863, where court held that association had no duty to disclose construction defects to prospective purchasers.
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