Business and Professions Code § 11505 is a very important code section for common interest development managers, the companies that employ these managers, and the community associations (HOA) that hire these managers.
B & P § 11505 states that it is a unfair business practice for a common interest development manager, a company that either hires a manager, or a company that has a financial interest in a company that hires a manager to perform any of the following on or after July 1, 2003:
- To use the title or hold oneself out as a common interest development manager, or use any term that may suggest that they are holding this position without first meeting the requirement of B&P § 11502 (requirements to be called common interest development manager) ; or
- To state or advertise to another that they are certified, registered or licensed to perform the job functions of a common interest development manager; or
- To state or advertise a license number, unless the license number is specified by statute, regulation, or ordinance; or
- To fail to disclose or misrepresent any of the items listed in B&P § 11504, which requires a person who either does perform or endeavors to perform the functions of a common interest development manager to disclose to the community association board the following; 1)whether the person has met the requirements under B&P § 11502, which would allow them to be called a certified common interest development manager, 2)The name, address, and telephone number of the professional association that certified the common interest development manager,the date the manager was certified, and the status of the certification, 3) the location of their office, 4) prior to entering into a contract with with association, the manager must disclose to the board as to whether the manager or its employer's fidelity insurance covers operating and reserve funds. However, it appears that this subsection does not require either party to carry such insurance, and finally 5) whether manager has an active real estate license.
Note: The information contained is not legal advice and does not establish an attorney-client relationship. Contact us via email Ryan.McClure.Esq@gmail.com or call us at 951.818.0687.
