NEW HOA DISCLOSURE REQUIREMENTS (January 2018)

Effective January 1, 2018, new disclosure requirements added to the Davis-Stirling Common Interest Development Act include the following:

• The annual budget report distributed or made available to the members now includes a new component.  In addition to the previously required items, it must include a copy of the “Charges For Documents Provided As Required By Section 4525,” the form given to owners or prospective purchasers listing the documents that the association is required to provide upon the request of an owner selling a unit, or the purchaser when authorized by the owner, with the cost of each document listed on the form in the column entitled “Fee for Document.” 
• That form must now also include statutorily prescribed language advising that (1) the seller can provide the purchaser, ant no cost, any of the documents that the seller has, and (2) a seller is not required to purchase all of the listed documents.

Compliance with these new requirements should be any easy task by simply adding the new statutory language to the form, with the charge for each document already filled in, and including the form in the annual disclosure packets.