state_legiscan_drain · CA
Attached residential condominium sales: liquidated damages.
February 21, 2025
Summary
If enacted, this bill would amend California Civil Code Section 1675 to reduce liquidated damages in attached residential condominium sales (subject to a homeowners' association) to no more than 2% of the purchase price, down from the general 3% cap for other residential properties. It also requires the buyer to agree in writing in a separate initialed paragraph and mandates that the deposit be held in escrow or trust. The change limits buyer exposure but does not apply to corporate sellers or other property types.
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Source: https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1406
Common questions
- What does "Attached residential condominium sales: liquidated damages." cover?
- If enacted, this bill would amend California Civil Code Section 1675 to reduce liquidated damages in attached residential condominium sales (subject to a…
- When was it published?
- It was published on February 21, 2025.