Duty to Disclose. The association is not a party to the transaction between buyer and seller and has no duty to make disclosures to the buyer--that duty falls to the seller. Ostayan v. Nordhoff. Even so, the association must provide information and documents to the seller so he/she can make disclosures to the buyer of their unit/lot.

Common Area Defects. Before the transfer of title, sellers must deliver to buyers a written statement listing all substantial defects or malfunctions in the major systems in the unit and common areas, or a written statement disclaiming knowledge of any such substantial defects or malfunctions. Civ. Code §1134(a). "Major systems" includes, but is not limited to, the roof, walls, floors, heating, air conditioning, plumbing, electrical systems or components of a similar or comparable nature, and recreational facilities. Civ. Code §1134(c). Failure to make such disclosures gives the buyer the right to rescind the agreement. Civ. Code §1134(b).

Deadline for Production. Upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of the requested documents. Civ. Code §1368(b)(1).

Documents & Fees. As required by Civ. Code §1368(a), prior to the close of escrow sellers must provide buyers with ten different categories of documents. Associations may pay a person or entity to assemble the documents on behalf of the association. Civ. Code §1368(b)(4). Associations are allowed to collect a reasonable fee based on their actual costs but are prohibited from charging additional fees for electronic delivery of documents. Delivery of the documents may not be withheld for any reason nor subject to any condition except the payment of the fee. Civ. Code §1368(b).

Statutory Form. As provided for in Civ. Code §1368.2, associations must fill out a form showing the documents being submitted pursuant to section 1368 and an estimated cost for those records.

Fine for Willful Violation. There is a $500 fine for anyone who willfully violates the disclosure requirement. In addition, in an action to enforce this liability, the prevailing party shall be awarded reasonable attorneys' fees. Civ. Code §1368(a).