AB 1406

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 6%.