SB 1238: Common interest developments: management.

Session Year: 2025-2026
House: Senate
Latest Version Date: 2026-04-23

Current Status:

In Progress

(2026-05-26: Referred to Coms. on H. & C.D. and JUD.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

(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 and that is required to provide a fiduciary duty to the board of a homeowners association and its members. 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 defines professional association for common interest development managers to mean an organization that meets all of specified criteria, including having at least 200 members or certificants who are common interest development managers in California.This bill would revise that definition to specify that it means an organization that employees an agent or agents, as defined, and that meets the above mentioned criteria.

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.

Discussed in Hearing