AB-1406 • 2026

Attached residential condominium sales: liquidated damages.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Ward (A) , Wicks (A) , Wilson
Last action: 2026-05-06
Official status: Referred to Com. on JUD.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Attached residential condominium sales: liquidated damages.

AB 1406, as amended, Ward.

What This Bill Does

AB 1406, as amended, Ward.
Attached residential condominium sales: liquidated damages.
Existing law establishes that for the initial sale of a newly constructed condominium unit, as specified, the amount actually paid to the seller in the event of a buyer’s default pursuant to a liquidated damages provision that exceeds 3% of the purchase price of the residential unit is subject to specified requirements, including an accounting of the seller’s costs and revenues, as specified.
This bill would delete the above-specified percentage and, instead, increase that percentage to 10%.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-05-06 California Legislative Information
Referred to Com. on JUD.
2026-01-29 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2026-01-29 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 41. Noes 15. Page 3880.)
2026-01-22 California Legislative Information
Read third time and amended. Ordered to third reading. (Page 3816.)
2026-01-15 California Legislative Information
Read second time. Ordered to third reading.
2026-01-14 California Legislative Information
Read second time and amended. Ordered returned to second reading.
2026-01-13 California Legislative Information
From committee: Amend, and do pass as amended. (Ayes 7. Noes 3.) (January 13).
2026-01-06 California Legislative Information
Re-referred to Com. on JUD.
2026-01-05 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.
2025-04-21 California Legislative Information
In committee: Set, second hearing. Hearing canceled at the request of author.
2025-04-02 California Legislative Information
In committee: Set, first hearing. Hearing canceled at the request of author.
2025-03-25 California Legislative Information
Re-referred to Com. on JUD.
2025-03-24 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.
2025-03-24 California Legislative Information
Referred to Coms. on JUD. and B. & P.
2025-02-24 California Legislative Information
Read first time.
2025-02-22 California Legislative Information
From printer. May be heard in committee March 24.
2025-02-21 California Legislative Information
Introduced. To print.

Official Summary Text

AB 1406, as amended, Ward.
Attached residential condominium sales: liquidated damages.
Existing law establishes that for the initial sale of a newly constructed condominium unit, as specified, the amount actually paid to the seller in the event of a buyer’s default pursuant to a liquidated damages provision that exceeds 3% of the purchase price of the residential unit is subject to specified requirements, including an accounting of the seller’s costs and revenues, as specified.
This bill would delete the above-specified percentage and, instead, increase that percentage to
10%.
6%.

Current Bill Text

Read the full stored bill text

Download Bill PDF