(1) Existing law, the Davis-Stirling Common Interest Development Act (act) , provides for the creation and regulation of common interest developments.
Existing civil law defines an agent as one who represents another, called the principal, in dealings with third persons.
This bill would revise the above-described definition of agent to include a person or company that facilitates activities pursuant to specified provisions of the act.
Existing law defines "management services" for purposes of a common interest development to mean specified acts performed or offered to be performed in an advisory capacity for an association, including implementing provisions of governing documents for the operation of the common interest development.
This bill would revise the above definition to specify that it means acts performed or offered to be performed by an agent, as defined above, in an advisory capacity for an association, as prescribed.
Existing law imposes certain fiduciary duties on managers and agents of common interest developments.
This bill would provide that a person or entity that facilitates specified activities, including reviewing association operating accounts, owes a duty of care that is prudent and provides the highest good faith effort to the association and its members.
(2) Existing law requires the owner of a separate interest in a common interest development to provide specified documents to a prospective purchaser as soon as practicable before the transfer of title or execution of a real property sales contract, including a copy of the report issued pursuant to the most recent inspection conducted.
This bill would require the owner to provide additional information, including, among other things, if separately requested by the purchaser, the location on the first page of the report where certain facts about the exterior elevated elements and the number of units impacted may be found. The bill would make various other related and conforming changes to those provisions.

Statutes affected:
SB1238: 11500 BPC, 11501 BPC, 2295 CIV, 4525 CIV, 5200 CIV, 5510 CIV, 5515 CIV, 5520 CIV, 5550 CIV, 5551 CIV, 5560 CIV, 5565 CIV, 5570 CIV
02/19/26 - Introduced: 11500 BPC, 11501 BPC, 2295 CIV, 4525 CIV, 5200 CIV, 5510 CIV, 5515 CIV, 5520 CIV, 5550 CIV, 5551 CIV, 5560 CIV, 5565 CIV, 5570 CIV
04/16/26 - Amended Senate: 11500 BPC, 11501 BPC, 2295 CIV, 4525 CIV, 5200 CIV, 5510 CIV, 5515 CIV, 5520 CIV, 5550 CIV, 5551 CIV, 5560 CIV, 5565 CIV, 5570 CIV
04/23/26 - Amended Senate: 11500 BPC, 11501 BPC, 2295 CIV, 4525 CIV, 5200 CIV, 5510 CIV, 5550 CIV, 5551 CIV, 5560 CIV, 5565 CIV
SB 1238: 11500 BPC, 11501 BPC, 2295 CIV, 4525 CIV, 5200 CIV, 5510 CIV, 5515 CIV, 5520 CIV, 5550 CIV, 5551 CIV, 5560 CIV, 5565 CIV, 5570 CIV