Conditions of Ownership

Civil Code Division 2, Part 1, Title 2, Chapter 2, Article 2 deals with conditions of ownership of property in California.

Section 707 provides that the time when the enjoyment of property is to begin or end may be determined by computation, or be made to depend on events.

Section 708 explains that conditions are precedent or subsequent.

Section 709 states that, if a condition precedent requires the performance of an act wrong of itself, the instrument containing it is so far void, and the right cannot exist. If it requires the performance of an act not wrong of itself, but otherwise unlawful, the instrument takes effect and the condition is void.

Section 710 says that conditions imposing restraints upon marriage, except upon the marriage of a minor, are void.

Section 711 provides that conditions restraining alienation are void.

Section 711.5 states that a state or local public entity directly or indirectly providing housing purchase or rehabilitation loans shall have the authority to deny assumptions, or require the denial of assumptions, by a subsequent ineligible purchaser or transferee of the prior borrower of the obligation of any loan made for the purpose of rehabilitating or providing affordable housing. 

As a condition of authorizing assumption of a loan pursuant to this section, the entity may recast the repayment schedule for the remainder of the term of the loan by increasing the interest to the current market rate at the time of assumption, or to such lower rate of interest as is the maximum allowed by an entity that provided any insurance or other assistance which results in an assumption being permitted.

Section 712 says that every provision contained in or otherwise affecting a grant of a fee interest in, or purchase money security instrument upon, real property in this state, which purports to prohibit or restrict the right of the property owner or his or her agent to display or have displayed on the real property, or on real property owned by others with their consent, or both, signs which are reasonably located, in plain view of the public, are of reasonable dimensions and design, and do not adversely affect public safety, including traffic safety, and which advertise the property for sale, lease, or exchange, or advertise directions to the property, by the property owner or his or her agent is void as an unreasonable restraint upon the power of alienation.

Section 713 states that an owner of real property or his or her agent may display or have displayed on the owner’s real property, and on real property owned by others with their consent, signs which are reasonably located, in plain view of the public, are of reasonable dimensions and design, and do not adversely affect public safety, including traffic safety, as determined by the city, county, or city and county, advertising four specified items.

Section 714 explains that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property, and any provision of a governing document, that effectively prohibits or restricts the installation or use of a solar energy system is void and unenforceable. The terms “significantly” and “solar energy system” are defined.

Section 714.1 sets forth that an association may impose reasonable provisions that restrict or require four specified items. An association is prohibited from establishing or requiring two specified items. An action by an association that contravenes this section is void and unenforceable. The terms “association,” “common area,” and “separate interest” are defined.

Section 714.3 states that any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in real property that either effectively prohibits or unreasonably restricts the construction or use of an accessory dwelling unit or junior accessory dwelling unit on a lot zoned for single-family residential use that meets the requirements of specified laws. This section does not apply to provisions that impose reasonable restrictions on accessory dwelling units or junior accessory dwelling units. The term “reasonable restrictions” is defined.

Section 714.5 provides that the covenants, conditions, and restrictions or other management documents cannot prohibit the sale, lease, rent, or use of real property on the basis that the structure intended for occupancy on the real property is constructed in an offsite facility or factory, and subsequently moved or transported in sections or modules to the real property.

Section 714.6 sets forth that recorded covenants, conditions, restrictions, or private limits on the use of private or publicly owned land contained in any deed, contract, security instrument, reciprocal easement agreement, or other instrument affecting the transfer or sale of any interest in real property that restrict or prohibit the residential uses of the property, the number, size, or location of the residences that may be built on the property, or that restrict the number of persons or families who may reside on the property, are not enforceable against the owner of a housing development, if an approved restrictive covenant housing modification document has been recorded in the public record as provided for in this section, except as explicitly provided in this section.

Section 714.7 prohibits a developing from selling a unit constructed pursuant to a local inclusionary zoning ordinance that is intended for owner-occupancy by persons or families of extremely low, very low, low, or moderate income to a purchaser that is not a person or family of extremely low, very low, low, or moderate income, except that if a unit has not been purchased by an income-qualifying person or family within 180 days of the issuance of the certificate of occupancy a developer may sell the unit to a qualified nonprofit housing corporation that will ensure owner occupancy pursuant to the income limitation recorded on the deed or other instrument defining the terms of conveyance eligibility.