| Government Affairs |
Assembly Bill 2430 (Maienschein) tightens the prohibition of bundling fees in CID (common interest development) transactions. It was signed into law last week by Gov. Brown. C.A.R. sponsored the bill in response to third-party vendors charging CID purchasers excessive fees for documents required to be provided to buyers under the Davis-Stirling Act. In 2011, C.A.R. successfully sponsored AB 771 (Butler), which was intended to prohibit the "bundling" of unrelated document fees with the Davis-Stirling document fees. Despite AB 771, and therefore against state law, third party vendors continued to "bundle" fees. AB 2430 provides specific document delivery and disclosure standards and tightens the anti-bundling provisions in connection with condominium sales and homeowner association (HOA) document delivery requirements.