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AB 1406·CA·house

Attached residential condominium sales: liquidated damages.

Passed One ChamberFiled Feb 21, 2025
Sponsor: Chris Ward (D)
Latest Action

In committee: Set, first hearing. Hearing canceled at the request of author.

Jun 29, 2026

Legislative status

  1. Introduced
  2. In Committee
  3. Reported by Committee
  4. Floor Vote Scheduled
  5. Passed One Chamber
  6. Passed Both Chambers
  7. Sent to Executive
  8. Signed into Law

Summary

The bill changes California Civil Code §1675 so that, for the first sale of a newly built attached condominium unit in a building of ten or more units, a liquidated‑damages clause is only valid up to 10.6% of the purchase price. If the seller keeps more, they must provide a detailed cost accounting and refund any excess to the buyer. It affects developers, sellers, and buyers of new large‑scale condo projects.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

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Vote

41 yes

15 no

Read third time. Passed. Ordered to the Senate. (Ayes 41. Noes 15. Page 3880.) · Jan 29, 2026

Hearings

History

  1. Referred to Com. on JUD.
  2. Read third time. Passed. Ordered to the Senate. (Ayes 41. Noes 15. Page 3880.)
  3. In Senate. Read first time. To Com. on RLS. for assignment.
  4. Read third time and amended. Ordered to third reading. (Page 3816.)
  5. Read second time. Ordered to third reading.
  6. Read second time and amended. Ordered returned to second reading.
  7. From committee: Amend, and do pass as amended. (Ayes 7. Noes 3.) (January 13).
  8. Re-referred to Com. on JUD.
  9. From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.
  10. In committee: Set, second hearing. Hearing canceled at the request of author.
  11. In committee: Set, first hearing. Hearing canceled at the request of author.
  12. Re-referred to Com. on JUD.

The 12 most recent of 17 recorded actions.

Sponsors

  • Chris Ward (D) · sponsor
  • Ward
  • Wicks
  • Wilson

Bill text

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