SB 432

This bill limits the amount a condominium association may charge for

providing a payoff statement or required disclosure materials, requires the

disclosure of certain information in connection with a transfer of a condominium

unit, and creates a procedure for a unit owner to acquire a payoff statement from an

association for unpaid assessments and other amounts owed with respect to a unit.

Under current law, a seller of a unit must furnish certain documents and

information (disclosure materials) to the purchaser. The disclosure materials

include an executive summary that provides certain information about the

condominium. The bill requires that, in addition to the information required under

current law, the executive summary also must include all of the following

information:

1. If the association maintains reserves for repairs and replacement of common

elements, the amount of those reserves.

2. Whether the association has a right of first refusal to purchase the unit.

3. Whether the association charges a fee in connection with a transfer of

ownership of the unit and, if a fee is charged, the amount of the fee.

Under current law, an association must furnish the seller with the information

necessary for the seller to provide the disclosure materials, and the seller must pay

the association the actual costs of furnishing that information. Under the bill, the

association may not charge more than $30 for providing the initial information and

$15 for providing any updates to that information.

The bill also provides that, within ten business days after a unit owner submits

a written request, the association must provide a payoff statement of all unpaid

assessments and other amounts owed by the unit owner with respect to a unit. The

association must provide one payoff statement without charge during any

two-month period and may charge a fee of $25 for each additional payoff statement

requested with respect to the unit during that two-month period. If an association

fails to timely provide a payoff statement, the association is liable to the requester

for any actual damages caused by the failure plus $500. If the association fails to pay

those damages within 30 days after demand for payment, the association also may

be liable for reasonable attorney fees and costs.