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AB-1406 • 2026

Attached residential condominium sales: liquidated damages.

Attached residential condominium sales: liquidated damages.

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Ward
Last action
Official status
Senate - Judiciary
Effective date
Not listed

Plain English Breakdown

The official digest contains a clear conflict showing both '10%' and '6%', making it impossible to state the exact new limit based only on this source.

Changing Rules for Money Kept When Condo Buyers Back Out

This proposal would change the percentage of a purchase price that sellers can keep from buyers who cancel new condo deals before having to prove their actual costs.

What This Bill Does

  • Changes the rule about how much money a seller can keep when a buyer defaults on buying a newly constructed attached condominium unit.

Who It Names or Affects

  • Sellers of newly constructed residential condominium units for the first time.
  • Buyers who may cancel their purchase agreements and default on these specific types of condos.

Limits and Unknowns

  • The official text lists two different percentages (10% and 6%) as possible replacements for the current limit, so the final number is unclear.
  • This bill has passed both chambers but reached a hearing that was canceled at the author's request.

Bill History

  1. California Legislative Information

    Senate - Judiciary

Official Summary Text

Attached residential condominium sales: liquidated damages.