Obligations Clarified
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In the May 3 Condo Q&A; column, a reader who once served as treasurer of her condo association noted that she had received questionnaires from real estate agents and lenders requesting information about the association before the sale or refinancing of a unit.
But the current board of directors, the reader reported, decided that responding to the questionnaires is beyond the scope of its duties. Asked whether the board has the right to refuse to respond, columnist Jan Hickenbottom replied it did not. That is incorrect.
In 1996, the California Court of Appeal ruled in Kovich vs. Paseo Del Mar Homeowners Assn. that associations owe no duty of disclosure to prospective purchasers or other members of the general public, only to their current owners.
Hickenbottom is correct in noting that under Civil Code Section 1368, associations are required to provide a selling owner certain documents and financial statements. But there are no provisions in this statute regarding an association’s duty to respond to questionnaires from any party.
FREDERICK L. PILOT
President
Common Interest Consumer
Project, Sacramento
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