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    | California Civil Code | Title 6 |  
    | Califotnia Civil Code
		Chapter 6. Transfer og 
	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. Index
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