Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) A
contractual provision setting forth terms, conditions and procedures for resolution
of a dispute or claim between a homeowner and a subdivider, or a provision in the
covenants, conditions and restrictions setting forth terms, conditions and
procedures for resolution of a dispute of claim between a homeowners association and
a subdivider shall, at a minimum, provide that the dispute or claim resolution
process, proceeding, hearing or trial to be conducted in accordance with the
following rules:
(1) For the subdivider to advance
the fees necessary to initiate the dispute or claim resolution process, with the
costs and fees, including ongoing costs and fees, if any, to be paid as agreed by
the parties and if they can't agree then the costs and fees are to be paid as
determined by the person or persons presiding at the dispute or claim resolution
proceeding or hearing.
(2) For a neutral
or impartial person(s) to administer and preside over the claim or dispute
resolution process.
(3) For the
appointment, or selection, as designation, or assignment of the person(s) to
administer and preside over the claim or dispute resolution process within a
specific period of time, which in no event shall be more than sixty (60) days from
initiation of the claim or dispute resolution process or hearing. The person(s)
appointed, selected, designated or assigned to preside may be challenged for
bias.
(4) For the venue of the claim or
dispute resolution process to be in the county where the subdivision is located
unless the parties agree to some other location.
(5) For the prompt and timely commencement of the
claim or dispute resolution process. When the contract provisions provide for a
specific type of claim or dispute resolution process, the process shall be deemed to
be promptly and timely commenced if it is to be commenced in accordance with the
rules applicable to that process, or if the rules don't specify a date by which the
proceeding or hearing must commence, then to a date agreed upon by the parties, and
if they cannot agree, a date determined by the person(s) presiding over the dispute
resolution process.
(6) For the claim or
dispute resolution process to be conducted in accordance with rules and procedures
that are reasonable and fair to the parties.
(7) For the prompt and timely conclusion of the
claim or dispute resolution process, including the issuance of any decision or
ruling following the proceeding or hearing.
(8) For the person(s) presiding at the claim or
dispute resolution process to be authorized to provide all recognized remedies
available in law or equity for any cause of action that is the basis of the
proceeding or hearing. The parties may authorize the limitation or prohibition of
punitive damages.
(b) A copy
of the rules applicable to the claim or dispute resolution process shall be
submitted as part of the application for a public report.
(c) If the claim or dispute resolution process
provides or allows for a judicial remedy in accordance with the laws of this state,
it shall be presumed that the proceeding or hearing satisfies the provisions of
paragraph (a).
1. New section
filed 6-15-98; operative 7-15-98 (Register 98, No. 25). For prior history see
Register 96, No. 46.
2. Amendment of subsections (b) and (c) filed
6-20-2002; operative 7-20-2002 (Register 2002, No. 25).
3. Repealer and
new section filed 9-5-2003; operative 10-5-2003 (Register 2003, No.
36).
Note: Authority cited: Section
11001,
Business and Professions Code. Reference: Section
11018.5,
Business and Professions Code.
