Property of Unincorporated Associations

Corporations Code Title 3, Part 1, Chapter 3 deals with property held by an unincorporated association in this state. Section 18100 provides that the interest of a member in an unincorporated association is personal property.

Section 18105 allows an unincorporated association to, in its name, acquire, hold, manage, encumber, or transfer an interest in real or personal property.

Section 18110 states that property acquired by or for an unincorporated association is property of the unincorporated association and not of the members individually.

Section 18115 explains that the acquisition, transfer, or encumbrance of an interest in real property by an unincorporated association is to be executed by its president and secretary or other comparable officers.

Section 18120 authorizes an unincorporated association to record in a county in which it has an interest in real property a verified and acknowledged statement of authority stating required information. The term “statement of authority” is defined. Also, an unincorporated association may revoke a statement of authority by recording either of the specified documents in the county in which the statement of authority is recorded.

Section 18122 requires an unincorporated association holding property for charitable purposes to comply with the Supervision of Trustees and Fundraisers for Charitable Purposes Act.

Section 18125 provides that no limitation on the power of an unincorporated association to acquire, hold, manage, pledge, encumber, or transfer an interest in real or personal property, or the manner of exercise of those powers, is to be asserted as between the unincorporated association or a member of the unincorporated association and a third person, except in the three specified proceedings.

Section 18130 states that, after all of the known debts and liabilities of an unincorporated association in the process of winding up its affairs have been paid or adequately provided for, the assets of the association must be distributed in the specified manner.

Section 18135 provides that a cause of action against an unincorporated association may be enforced against a person who received assets distributed. Liability under this section is to be limited to the value of the assets distributed to the person or the person’s pro rata share of the claim against the unincorporated association, whichever is less.