Bill > SB1238

This bill, concerning common interest developments (CID) which are neighborhoods or communities where individual homes or units are privately owned but common areas like landscaping or pools are jointly owned and managed by an association, aims to clarify and strengthen regulations for CID management and disclosures. It redefines an "agent" to include those facilitating CID activities and owing a fiduciary duty to the homeowner's association (HOA) board and its members, and revises the definition of "management services" to reflect this broader scope. The bill also introduces a new requirement that any entity facilitating CID activities must exercise a prudent duty of care and act in the highest good faith towards the association and its members. Furthermore, it enhances disclosure requirements for property owners selling their units, mandating the provision of additional specific information about exterior elevated elements, such as balconies and decks, and their inspection reports, including details on their condition and any necessary repairs, upon request from a potential buyer. The bill also makes conforming changes to various sections related to reserve studies and inspections, particularly concerning the inspection and reporting of exterior elevated elements, ensuring that information about their condition and repair needs is more readily available to both associations and prospective buyers.