Assembly BillPassed first houseCivil
AB 1406: Attached residential condominium sales: liquidated damages.
What AB 1406 does, verified July 2, 2026
The bill aims to amend the civil code to increase the percentage of the purchase price of a residential unit that can be claimed as liquidated damages in the event of a buyer's default. The existing law requires that liquidated damages not exceed 3% of the purchase price. The proposed change would raise this threshold to 6%, allowing sellers to claim a larger percentage of the purchase price if the buyer defaults on the sale of a newly constructed condominium unit.
Bill journey
✓IntroducedComplete
✓In CommitteeComplete
✓First Chamber FloorComplete
4Second ChamberCurrent
5GovernorPending
6ChapteredPending
Last action: In committee: Set, first hearing. Hearing canceled at the request of author. (2026-06-29)Alert me
Author and sponsors
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| Jun. 29, 2026 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| May. 06, 2026 | Referred to Com. on JUD. |
| Jan. 29, 2026 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jan. 29, 2026 | Read third time. Passed. Ordered to the Senate. (Ayes 41. Noes 15. Page 3880.) |
| Jan. 22, 2026 | Read third time and amended. Ordered to third reading. (Page 3816.) |