LA Connection Property Blog: Davis-Stirling Act - Homeowner Association's Reserve Studies

Davis-Stirling Act - Homeowner Association's Reserve Studies

The Davis-Stirling Act - All Associations, regardless of size, are required to prepare a Reserve Study. (California Civil Code)

There are two exceptions to the requirement:

- No Common Areas. Reserve studies are not required if an association does not have common area components that require repair or replacement.

- Commercial Developments. Commercial and industrial common interest developments are exempt from reserve requirements.

I have been a Director of several Boards and was surprised to find that many Boards & Directors do not use a current Reserve Study to determine replacement expenditure and proper Reserve Funding.

Do other Agents selling condos insist on a recent Reserve Study for their Buyers to review before removing Buyer's Contingencies in the Residential Purchase Agreement?

Comment balloon 0 commentsCOMPASS PALM SPRINGS | Stewart Penn • April 29 2008 10:57AM

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