CaliforniaCommon interest developments: management.
What it does
(1) Existing law, the Davis-Stirling Common Interest Development Act (act), provides for the creation and regulation of common interest developments.
More detail
Existing law defines "management services" for purposes of a common interest development to mean specified acts performed or offered to be performed in an advisory capacity for an association, including implementing provisions of governing documents for the operation of the common interest development.
This bill would revise the above definition to specify that it means acts performed or offered to be performed by an agent, including a managing agent and its employees, in an advisory capacity for an association, as prescribed.
Existing law imposes certain fiduciary duties on managers and agents of common interest developments.
This bill would provide that a managing agent, including its employees, that facilitates specified activities, including reviewing association operating accounts, owes a duty of care that is prudent and provides the highest good faith effort to the association and its members.
(2) Existing law requires a common interest development to be managed by an association and requires the association to distribute to its members an annual budget that includes, among other things, a summary of the association's property, general liability, earthquake, flood, and fidelity insurance policies, a review of the financial statement of the association, and an annual policy statement, as provided. Existing law requires the owner of a separate interest in a common interest development to provide specified documents to a prospective purchaser as soon as practicable before the transfer of title or execution of a real property sales contract, including a copy of the most recent distributed annual budget, review of the financial statement, and annual policy statement and a report issued pursuant to the most recent inspection conducted.
This bill would require the association, upon request, to provide the owner of a separate interest, or their agent, with those documents as soon as practicable. The bill would require the owner to provide additional information, including, among other things, if separately requested by the purchaser, the location on the first page of the report where certain facts about the exterior elevated elements and the number of units impacted may be found. The bill would make various other related and conforming changes to those provisions.
This bill would incorporate additional changes to Section 5200 of the Civil Code proposed by AB 739 to be operative only if this bill and AB 739 are enacted and this bill is enacted last.
This bill would incorporate additional changes to Section 5550 of the Civil Code proposed by AB 2050 to be operative only if this bill and AB 2050 are enacted and this bill is enacted last.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 20In Senate. Consideration of Governor's veto pending.Latest
- Sep 20Vetoed by the Governor Gavin Newsom.Major
- Aug 31Enrolled and presented to the Governor at 6 p.m.To Governor
- Aug 27Assembly amendments concurred in. (Ayes 40. Noes 0. Page 5944.) Ordered to engrossing and enrolling.Major
- Vote recorded Unfinished Business SB1238 Wahab Concurrence. Result: pass.Upper
- Aug 26In Senate. Concurrence in Assembly amendments pending.
- Vote recorded SB 1238 Wahab Senate Third Reading By Zbur. Result: pass.Lower
- Aug 26Read third time. Passed. (Ayes 76. Noes 0. Page 6552.) Ordered to the Senate.Passed Assembly
- Aug 21Ordered to third reading.Minor
- Aug 21Read third time and amended.Major
- Aug 21Assembly Rule 69(b)(1) suspended. (Ayes 55. Noes 17. Page 6296.)
- Aug 19Ordered to third reading.Minor
- Aug 19Read third time and amended.Major
- Aug 3Read second time. Ordered to third reading.Minor
- Jul 2Read second time and amended. Ordered to second reading.Major
- Jul 1From committee: Do pass as amended. (Ayes 9. Noes 3.) (June 30).Major
- Jun 30
- Vote recorded Do pass as amended. Result: pass.Lower
- Jun 24From committee: Do pass and re-refer to Com. on JUD. (Ayes 9. Noes 0.) (June 24). Re-referred to Com. on JUD.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Judiciary]. Result: pass.Lower
- May 26Referred to Coms. on H. & C.D. and JUD.Minor
- May 20In Assembly. Read first time. Held at Desk.Minor
- May 19Read third time. Passed. (Ayes 36. Noes 2. Page 4340.) Ordered to the Assembly.Passed Senate
- Vote recorded 3rd Reading. Result: pass.Upper
- May 12Read second time. Ordered to third reading.Minor
- May 11From committee: Do pass. (Ayes 5. Noes 1. Page 4188.) (May 11).Minor
- Vote recorded Do pass. Result: pass.Upper
- May 4Set for hearing May 11.
- Apr 23Read second time and amended. Re-referred to Com. on APPR.Major
- Apr 22From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 0. Page 3979.) (April 21).Major
- Apr 21
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Apr 17Set for hearing April 21.
- Apr 16From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.Major
- Apr 16From committee: Do pass and re-refer to Com. on JUD. (Ayes 9. Noes 0. Page 3902.) (April 15). Re-referred to Com. on JUD.Minor
- Apr 15
- Vote recorded Do pass, but first be re-referred to the Committee on [Judiciary]. Result: pass.Upper
- Apr 2Set for hearing April 15.
- Mar 31April 7 hearing postponed by committee.
- Mar 17Set for hearing April 7.
- Mar 4Referred to Coms. on HOUSING, JUD., and APPR.Minor
- Feb 20From printer. May be acted upon on or after March 22.
- Feb 19Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced