AB-739 (Jackson) Common interest developments: managing agent fees: executive officer training.

Would require the board of the directors to annually review a statement of fees charged by the managing agent and to electronically deliver a statement of those fees upon written request by a member.

Current Status: Pending

FindHOALaw Quick Summary:

The Davis-Stirling Common Interest Development Act governs the formation and operation of common interest developments, and requires a common interest development to be managed by an association. Existing law authorizes the board of directors to hire a managing agent, defined as a person who, for compensation or in expectation of compensation, exercises control over the assets of a common interest development. Existing law requires a prospective managing agent to make certain disclosures to the board, including whether or not the prospective managing agent currently holds any relevant licenses, including a real estate license, or any relevant professional certifications or designations, as specified. . Existing law requires the board of directors to review various financial documents on a monthly basis, unless the governing documents impose more stringent standards.

This bill would amend Civil Code Section 5500 to require the board to review a statement of fees charged by the managing agent on an annual basis.

This bill would add Civil Code Section 5378 to require the association to electronically deliver a statement of fees charged by the managing agent upon written request by a member.

Existing Real Estate Law, establishes the Department of Real Estate and sets forth its powers and duties regarding the licensure and regulation of real estate brokers. That law generally defines a real estate broker as a person who, for compensation, assists with buying, selling, or renting real property, as specified.

~~This bill would require a managing agent of a common interest development to hold a real estate broker license issued by the state.~~

Existing law requires the Department of Consumer Affairs and the Department of Real Estate, to the extent existing funds are available, to develop an online education course for the board of directors of an association regarding the role, duties, laws, and responsibilities of directors and prospective directors, and the nonjudicial foreclosure process.

This bill would add Civil Code Section 5403 to require the Department of Real Estate to develop an education course for executive officers of the association that is validated by the Secretary of State on financial review requirements, fiduciary duties, management duties, and the Davis-Stirling Act. The bill would require the officer to complete 12 hours of the education course within two years of appointment or election.

**AB-739 was gutted and amended on January 5, 2026, to no longer require manager licensing. The bill now requires board member education and an annual disclosure of all management fees.

5403. (a) The Department of Real Estate shall develop an education course for executive officers that is validated by the Secretary of State regarding all of the following:

(1) Information on the review requirements of Section 5500.

(2) Fiduciary duties.

(3) Management duties.

(4) All other applicable provisions of this part.

(b) Commencing on the date of the development of the education course pursuant to subdivision (a), the applicable of the following shall apply:

(1) An executive officer appointed or elected on or before the date of development of the education course pursuant to subdivision (a) shall complete 12 hours of the education course within two years of the date of the development of the education course.

(2) An executive officer appointed or elected after the date of the development of the education course pursuant to subdivision (a) shall complete 12 hours of the education course within two years of appointment or election.

(c) For the purposes of this section, “executive officer” means the president, vice president, secretary, or treasurer of the association.

**AB-739 was amended on January 15, 2026, to require the board of directors to annually review a statement of fees charged by the managing agent and to electronically deliver that statement of fees upon written request by a member. The bill was also amended to remove the requirement for board education.

(g) Review, on an annual basis, a statement of fees charged by the managing agent, including the following:

(1) The reporting period covered by the disclosure.

(2) The total number of residential units in the association during the reporting period.

(3) The total amount billed and paid by the association to the management company during the reporting period.

(4) The breakdown of the total amount described in paragraph (3) into the following categories:

(A) Base management fees, which include amounts paid pursuant to fixed or recurring compensation specified in the management agreement.

(B) Fee schedule charges, which include amounts paid for additional or optional services provided pursuant to a fee schedule adopted by the board of directors as part of the management agreement.

(C) Reimbursable expenses, which include amounts paid to reimburse the management company for third-party costs or expenses incurred on behalf of the association.