2005 California Civil Code Sections 1368-1368.1 CHAPTER 6. TRANSFER OF OWNERSHIP INTERESTS

1368.  (a) The owner of a separate interest, other than an owner
subject to the requirements of Section 11018.6 of the 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 defined in Section 2985, provide the following
to the prospective purchaser:
   (1) A copy of the governing documents of the common interest
development, including any operating rules, and including a copy of
the association's articles of incorporation, or, if not incorporated,
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
Section 1365.
   (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 Section 1367 or 1367.1.
   (5) A copy or a summary of any notice previously sent to the owner
pursuant to subdivision (h) of Section 1363 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 preliminary list of defects provided to each
member of the association pursuant to Section 1375, unless the
association and the builder subsequently enter into a settlement
agreement or otherwise resolve the matter and the association
complies with Section 1375.1.  Disclosure of the preliminary list of
defects pursuant to this paragraph does not waive any privilege
attached to the document.  The preliminary 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
1375.1.
   (8) Any change in the association's current regular and special
assessments and fees which have been approved by the association's
board of directors, but have not become due and payable as of the
date disclosure is provided pursuant to this subdivision.
   (b) Upon written request, an association shall, within 10 days of
the mailing or delivery of the request, provide the owner of a
separate interest with a copy of the requested items specified in
paragraphs (1) to (8), inclusive, of subdivision (a).  The items
required to be made available pursuant to this section may be
maintained in electronic form and requesting parties shall have the
option of receiving them by electronic transmission or machine
readable storage media if the association maintains these items in
electronic form.  The association may charge a reasonable fee for
this service based upon the association's actual cost to procure,
prepare, and reproduce the requested items.
   (c) (1) Subject to the provisions of paragraph (2), neither an
association nor a community service organization or similar entity
may impose or collect any assessment, penalty, or fee in connection
with a transfer of title or any other interest except for the
following:
   (A) An amount not to exceed the association's actual costs to
change its records.
   (B) An amount authorized by subdivision (b).
   (2) The amendments made to this subdivision by the act adding this
paragraph do not apply to a community service organization or
similar entity that is described in subparagraph (A) or (B):
   (A) The community service organization or similar entity satisfies
both of the following requirements:
   (i) The community service organization or similar entity was
established prior to February 20, 2003.
   (ii) The community service organization or similar entity exists
and operates, in whole or in part, to fund or perform environmental
mitigation or to restore or maintain wetlands or native habitat, as
required by the state or local government as an express written
condition of development.
   (B) The community service organization or similar entity satisfies
all of the following requirements:
   (i) The community service organization or similar entity is not an
organization or entity described in subparagraph (A).
   (ii) The community service organization or similar entity was
established and received a transfer fee prior to January 1, 2004.
   (iii) On and after January 1, 2006, the community service
organization or similar entity offers a purchaser the following
payment options for the fee or charge it collects at time of
transfer:
   (I) Paying the fee or charge at the time of transfer.
   (II) Paying the fee or charge pursuant to an installment payment
plan for a period of not less than seven years.  If the purchaser
elects to pay the fee or charge in installment payments, the
community service organization or similar entity may also collect
additional amounts that do not exceed the actual costs for billing
and financing on the amount owed.  If the purchaser sells the
separate interest before the end of the installment payment plan
period, he or she shall pay the remaining balance prior to transfer.
   (3) For the purposes of this subdivision, a "community service
organization or similar entity" means a nonprofit entity, other than
an association, that is organized to provide services to residents of
the common interest development or to the public in addition to the
residents, to the extent community common areas or facilities are
available to the public.  A "community service organization or
similar entity" does not include an entity that has been organized
solely to raise moneys and contribute to other nonprofit
organizations that are qualified as tax exempt under Section 501(c)
(3) of the Internal Revenue Code and that provide housing or housing
assistance.
   (d) Any person or entity who willfully violates this section is
liable to the purchaser of a separate interest that is subject to
this section for actual damages occasioned thereby and, in addition,
shall pay a civil penalty in an amount not to exceed five hundred
dollars ($500).  In an action to enforce this liability, the
prevailing party shall be awarded reasonable attorneys' fees.
   (e) Nothing in this section affects the validity of title to real
property transferred in violation of this section.
   (f) In addition to the requirements of this section, an owner
transferring title to a separate interest shall comply with
applicable requirements of Sections 1133 and 1134.
   (g) For the purposes of this section, a person who acts as a
community association manager is an agent, as defined in Section
2297, of the association.
1368.1.  (a) Any rule or regulation of an association that
arbitrarily or unreasonably restricts an owner's ability to market
his or her interest in a common interest development is void.
   (b) No association may adopt, enforce, or otherwise impose any
rule or regulation that does either of the following:
   (1) Imposes an assessment or fee in connection with the marketing
of an owner's interest in an amount that exceeds the association's
actual or direct costs.  That assessment or fee shall be deemed to
violate the limitation set forth in Section 1366.1.
   (2) Establishes an exclusive relationship with a real estate
broker through which the sale or marketing of interests in the
development is required to occur.  The limitation set forth in this
paragraph does not apply to the sale or marketing of separate
interests owned by the association  or to the sale or marketing of
common areas by the association.
   (c) For purposes of this section, "market" and "marketing" mean
listing, advertising, or obtaining or providing access to show the
owner's interest in the development.
   (d) This section does not apply to rules or regulations made
pursuant to Section 712 or 713 regarding real estate signs.