California Business and Professions Code

§ 11241

BPC § 11241 Effective Jan 1, 2020Div. 4 · Part 2 · Ch. 2 · Art. 2

Statute text

(a)The developer is obligated for the expenses associated with unsold inventory held by the developer. The obligation can be fulfilled in either of the following ways:

(1)The developer shall pay the full maintenance fee for each of the interests owned by the developer.

(2)The developer shall enter into a subsidy agreement with the association to cover any shortfall between expenses incurred and assessments collected from other owners (“deficit subsidy”), and shall furnish the association with an executed copy of the agreement within 10 days after closing of escrow of the first sale or lease of a time-share interest. The department will not approve a deficit subsidy program unless provisions are made for the accumulation of reserves for replacement and major maintenance of the time-share property in accordance with accepted property management practices and the transfer of the reserve fund to the association on termination of the program.

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Legislative history

Amended by Stats. 2019, Ch. 153, Sec. 1. (SB 578) Effective January 1, 2020.