Existing law establishes that for the initial sale of a newly constructed condominium unit, as specified, the amount actually paid to the seller in the event of a buyer's default pursuant to a liquidated damages provision that exceeds 3% of the purchase price of the residential unit is subject to specified requirements, including an accounting of the seller's costs and revenues, as specified.
This bill would delete the above-specified percentage and, instead, increase that percentage to 6%.

Statutes affected:
AB 1406: 7531 BPC
02/21/25 - Introduced: 7531 BPC
03/24/25 - Amended Assembly: 1675 CIV, 1675 CIV, 7531 BPC
01/05/26 - Amended Assembly: 1675 CIV, 1675 CIV, 1675 CIV
01/14/26 - Amended Assembly: 1675 CIV
01/22/26 - Amended Assembly: 1675 CIV