(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]

(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.[2]

(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.

(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.

(11) A copy of the report issued pursuant to the most recent inspection conducted pursuant to Section 5551.

(b)  This section does not apply to an owner that is subject to Section 11018.6 of the Business and Professions Code. [2025][3]

[1] Under Health and Safety Code Section 25915.2, the association must also give notice about any asbestos known to exist in the development. You should consult legal counsel for assistance in preparing this disclosure to make sure you comply with the requirements of the Health and Safety Code. NOTE HOWEVER: This disclosure is not dependent on whether the prospective purchaser requests the normal pre-closing disclosure information; it is always applicable, but only if the association has knowledge of the transfer.

In addition, sellers are obligated to make certain written disclosures to purchasers, as required by Civil Code Sections 1102 et seq. Sellers must also provide certain documentation and make disclosures about the earthquake worthiness in residential buildings of one to four units, built before January 1, 1960, but only if they were built using “conventional light frame construction,” as defined in Chapter 25 of the 1991 edition of the Uniform Building Code. It does not apply to buildings without foundations or those which have concrete slab foundations. Under Health and Safety Code Section 19211, sellers must also certify, in writing, that all water heaters are strapped properly to minimize the risk of movement during earthquakes.

[2] These are the normal required annual reports, disclosures and policy statements.

[3] Section 11018.6 pertains to developers who are selling homes under a Final Subdivision Public Report issued by the Department of Real Estate (“DRE”).