(SACRAMENTO) –Assembly Bill 690 (AB 690) by Assemblywoman Sharon Quirk-Silva (D-Orange County) was signed into law, by Governor Jerry Brown. AB 690 requires Home Owner Associations (HOAs) to deliver, within the annual budget report, an itemized estimate of fees that may be charged by a professional management company for documents necessary to facilitate a real estate transaction. This bill would also require a disclosure on whether the manager receives a referral fee from third parties for distributing required documents.
“I authored this law to help unit owners understand costs associated with the transfer of their homes, and to ensure all parties involved have the tools necessary to make informed decisions,” said Quirk-Silva. “This law makes sure there’s more transparency in the process of transferring property, and that there aren’t additional fees that are added on or excessive fees for the disclosure documents.”
AB 690 also clarifies that sellers may request to purchase some or all of these documents, but shall not be required to purchase all of the documents listed on this form. Management companies will also be required to disclose any conflicts of interest when initiating a management contract, or presenting bids for service to the HOA board.
More information about the bill can be found here.
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