California AB1406 amends the Civil Code to regulate liquidated damages in residential condominium sales.

California AB1406 amends Section 1675 of the Civil Code to regulate liquidated damages in residential condominium sales. It requires sellers to refund any amounts retained as liquidated damages if they exceed certain thresholds, ensuring fairness in the event of a buyer's default. The bill defines "residential property" and "new qualified buyer," and sets specific conditions for the validity of liquidated damages provisions. It also mandates an accounting of costs and revenues related to the construction and sale of the residential property.

California AB1406 amends the Civil Code to regulate liquidated damages in residential condominium sales.

California AB1406 amends Section 1675 of the Civil Code to regulate liquidated damages in residential condominium sales. It requires sellers to refund any amounts retained as liquidated damages if they exceed certain thresholds, ensuring fairness in the event of a buyer's default. The bill defines "residential property" and "new qualified buyer," and sets specific conditions for the validity of liquidated damages provisions. It also mandates an accounting of costs and revenues related to the construction and sale of the residential property.