Chino Hills Real Estate Blog : Assembly Bill 771 Adjusts Laws for HOA Documents

Assembly Bill 771 Adjusts Laws for HOA Documents

Talking Points

Existing law requires homeowners’ associations (HOAs) to provide specific documents to prospective purchasers of homes in a CID -- a form of real estate ownership in which each homeowner has an exclusive interest in a unit and a shared interest in the common area property.
In addition to the standard residential property disclosures that must be provided to purchasers of residential property, purchasers of a unit within a CID must receive basic information about the structure, operation and management of the homeowners association that operates the CID.
Current state law requires that this information come from the HOA and prohibits it from charging fees in excess of what is “reasonable,” not to exceed the actual cost of processing and producing these document. HOAs generally provide the documents for approximately $75 to $250.
Assembly Bill 771 (Butler, D-Torrance) addresses this situation by specifying that only fees for the required documents may be charged when such documents are provided, effectively prohibiting any “bundling” of fees for other documents with these fees.
Gov. Brown signed AB 771 into law Thursday.