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CID Disclosure Requirements Protect Buyers

December 30, 2015

CIDDisclosure1If you are in the market to buy a condo or property within a planned development, there are some key documents that you will need to have before you sign any sales contract. When land is divided by separate ownership but retains common access to facilities and commonly owned properties within a development, typically a homeowners association is created to manage it.  Known as Common Interest Developments (CIDs), there are specific rules and responsibilities homeowners are required to follow. Specific information must be shared with new buyers from the managing association of a development as well. This is done to help protect buyers from ending up with unexpected costs or fees being assessed. Within an association, there will be rules and guidelines that property owners are expected to comply with. There will be fees and assessments done on a regular basis, as well as to help maintain the common areas.  Getting a clear understanding of how a CID operates will mean more paperwork to review and understand, but the extra leg work before you sign will be worth the benefit of avoiding costly mistakes down the road. Each state has its own regulations for documentation which is required to be disclosed for any CID sale.

CIDDisclosure2Within California, any owner of a CID property is required to provide the following documentation to a prospective buyer:

  • All Association Governing Documents-including all Articles of Declaration, Bylaws, Covenants, Conditions & Restrictions (CC&Rs), and Operating Rules.
  • Current Annual Budget Report and Policy Statement.
  • Occupancy and residency restrictions in force within California Civil Code 53 rules.
  • A summary of all current and/or pending fees and assessments on the property, any notices of unresolved violations sent to the seller, and any current or pending assessments or fees that have not yet come due.
  • A list of any construction defects resolved or pending resolution.
  • Disclosure of any rental prohibitions in effect.
  • Copies of approved minutes from open board meetings over the past 12 months, if requested by the buyer directly.

CIDDisclosure3The CID documentation is normally provided by the seller. As a buyer, you should sit down with your Realtor® and review each one to be sure you the understand what is expected of you as a property owner, and what, if any, issues you may inherit from the seller. If there are outstanding fees to be paid, these should be taken care of before the property is sold.

If you do find a property with outstanding monies due, you have the right to require the seller to pay the balance as part of your offer. There can be a lot of small details that can be easy to miss within CID documentation. Working with a trusted Realtor® is the best way to ensure you get a fair deal and to avoid unwanted surprises that could cost you more money. When you are ready to sell or buy a home, myself and my team are ready to help you through the entire process. Our goal is to make your experience both easy and pleasurable. Contact us today at (925) 634-7820, or by email at


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