Disclosures for Owners & Purchasers

California Civil Code section 4525 provides that the owner of a separate interest, other than an owner subject to the requirements of section 11018.6 of the California Business and Professions Code, shall, as soon as practicable before transfer of title to the separate interest or execution of a real property sales contract therefor, as described in Business and Professions Code section 2985, provide the following to a prospective purchaser. See Section 4525 for the list of documents.

Developer

A Developer is an individual or entity who develops or builds a residential or commercial project. A developer may purchase land and obtain entitlements from government agencies with jurisdiction over the project (including obtaining a map in accordance with the Subdivision Map Act) that will allow a developer to build and/or sell its intended project. A developer may either (i) sell the land to another developer or a builder or (ii) build improvements on the land for sale to the public (e.g., residential housing). Depending on the nature of the project, a developer may be required to obtain a Public Report from the Bureau of Real Estate in accordance with the Subdivided Lands Law.

Directors

Directors are elected by the members to the board of an association. An association’s bylaws generally dictate the number of required directors, whether directors must be members of the association and other director qualifications. Directors vote on association matters and can only be removed by a recall election or by specified reasons in the governing documents or Corporations Code.

Disability

A physical and/or mental condition which interferes with a life function. The definition of disability differs slightly under state and federal law. A person suffering from a disability may be entitled to a reasonable accommodation (or the right to make a modification at the applicant’s cost) under state and/or federal law, generally by reference to California’s Fair Employment and Housing Act (Gov. Code 12900 et seq.) or the federal Fair Housing Act (42 USC 3601 et seq.)

Discipline of Member

Discipline of a member is largely controlled by Civil Code section 5855. The most basic requirements follow the 10/15 rule. Members must be notified of a hearing at least 10 days prior to the meeting and notified of the outcome within 15 days following the meeting (governing documents may require a longer notice period). If your association does not have a fine policy, the association should draft and adopt one pursuant to Civil Code section 4360. Ensure that all disciplinary measures are well documented with hard copy letters and consistent application of the association’s fine policy.