ARDA and ARDA-ROC Support Bill to Allow for Electronic Delivery of Public Disclosure Documents

2015-03-27

Issue Brief

 Existing law, the California Vacation Ownership and Timeshare Act of 2004, requires a timeshare developer to provide the purchaser with specified disclosures in writing (hard copy public report) at the time of sale. Additionally, due to an inadvertently deleted cross-reference, purchasers who must by law receive a state approved Public Offering Statement—a second duplicative form.

The proposed bill (AB 905) would permit the developer to provide the purchaser with the public report (must include public offering statements) or other disclosures either in writing or in a digital format at the discretion of the purchaser and eliminate the delivery of the redundant form.
 

Impact

 The proposed legislation would eliminate unnecessary and duplicative disclosure requirements when a state-approved public report is already provided to the purchaser at the time of sale. Additionally, it would permit disclosure documents to be delivered to purchasers electronically at the purchaser’s request. New buyers increasingly prefer to receive documents digitally but California law requires the use of hard copies.

Allowing for electronic delivery of disclosure documents and reinstating an exemption from a real estate broker disclosure for projects which must provide public offering statements would alleviate an otherwise burdensome and unnecessary process.
 

Position/Call to Action

ARDA and ARDA-ROC support AB 905.

 

Issue Updates

AB 905 was introduced 2/26/15 and was referred to the Committee on Business, Professions and Consumer Protection Committee on 3/16/15.

AB 905 was approved by the Assembly on April 30 without objection as part of the consent calendar. The bill has now moved to the Senate where it has been referred to the Judiciary Committee. No hearing has been scheduled at this time.

AB 905 was signed into law by the Governor the week of July 13, 2015.

Resolution

 
 
The change will take effect January 1, 2016.

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