Home > Business Law, Construction Law, Real Estate Law > Civil Code 1368 was Amended to require HOA documents fees to be Reasonable

Civil Code 1368 was Amended to require HOA documents fees to be Reasonable

Beginning January 1, 2012, a recent bill (771) amended Civil Code Section 1368 regarding  a homeowner’s association (HOA) fees for governing documents.  The law requires the HOA, upon written request, to give an estimate of the fee for providing a prospective buyer with the governing documents of the common interest development and other required HOA disclosures.  The fee must be reasonable based upon the HOA’s actual cost for procuring, preparing, reproducing, and delivering the HOA documents.  If the fee is paid, the HOA cannot withhold the required HOA disclosures.  The law was intended to prevent an HOA’s third-party document preparation company from bundling together both mandatory and non-mandatory HOA documents, and charging a higher fee for providing all the documents.  The HOA is also prohibited from charging additional fees for electronic delivery of HOA documents.  Additionally, at a buyer’s request, the HOA must provide 12 months of approved minutes of the association’s board of directors meetings (excluding executive sessions).  Delivery of the required HOA documents must be accompanied by a cover sheet itemizing the documents required by law and those which were provided.  See Civil Code Section 1368 and Section 1368.2 for the full text.

All Rights Reserved © 2012 by Michael L. Mau, Esq. & The Mau Law Firm

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