Published: 2015-07-08
Key Benefits:
The interest of a member in an unincorporated association is personal property.
(Added by Stats. 2004, Ch. 178, Sec. 10. Effective January 1, 2005.)
An unincorporated association may, in its name, acquire, hold, manage, encumber, or transfer an interest in real or personal property.
(Added by Stats. 2004, Ch. 178, Sec. 10. Effective January 1, 2005.)
Property acquired by or for an unincorporated association is property of the unincorporated association and not of the members individually.
(Added by Stats. 2004, Ch. 178, Sec. 10. Effective January 1, 2005.)
The acquisition, transfer, or encumbrance of an interest in real property by an unincorporated association shall be executed by its president and secretary or other comparable officers, or by a person specifically designated by a resolution adopted by the association, or by a committee or other body or person authorized to act by the governing principles of the association.
(Added by Stats. 2004, Ch. 178, Sec. 10. Effective January 1, 2005.)
(a) An unincorporated association may record in a county in which it has an interest in real property a verified and acknowledged statement of authority stating the name of the association, and the names, title, or capacity of its officers and other persons who are authorized on its behalf to acquire, transfer, or encumber real property. For the purposes of this section, “statement of authority” includes a certified copy of a statement recorded in another county.
(b) An unincorporated association may revoke a statement of authority by recording either of the following documents in the county in which the statement of authority is recorded:
(1) A new statement of authority that satisfies the requirements of subdivision (a). The new statement supersedes the revoked statement.
(2) A verified and acknowledged document that expressly revokes the statement of authority.
(c) It shall be conclusively presumed in favor of a bona fide transferor, or purchaser, or encumbrancer for value of real property of the association located in the county in which a statement of authority has been recorded pursuant to subdivision (a), that a person designated in the statement is authorized to acquire, transfer, or encumber real property on behalf of the association.
(d) The presumption provided in subdivision (c) does not apply if, before the acquisition, transfer, or encumbrance, either of the following occurs:
(1) The statement of authority is revoked by the unincorporated association.
(2) A person claiming to be a member, director, or officer of the unincorporated association records, in the county in which the property is located, a verified and acknowledged document stating that the statement of authority is erroneous or unauthorized.
(Added by Stats. 2004, Ch. 178, Sec. 10. Effective January 1, 2005.)
An unincorporated association holding property for charitable purposes shall comply with the Supervision of Trustees and Fundraisers for Charitable Purposes Act, Article 7 (commencing with Section 12580) of Chapter 6 of Part 2 of Division 3 of Title 2 of the Government Code, if applicable.
(Added by Stats. 2011, Ch. 442, Sec. 32. Effective January 1, 2012.)
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, shall be asserted as between the unincorporated association or a member of the unincorporated association and a third person, except in the following proceedings:
(a) A proceeding to enjoin an unauthorized act, or the continuation of an unauthorized act, where a third person has not yet acquired rights that would be adversely affected by the injunction, or where, at the time of the unauthorized act, the third person had actual knowledge that the act was unauthorized.
(b) A proceeding to dissolve the unincorporated association.
(c) A proceeding against a director, officer, or agent of the unincorporated association for violation of that person’s authority.
(Added by Stats. 2004, Ch. 178, Sec. 10. Effective January 1, 2005.)
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 shall be distributed in the following manner:
(a) Assets held upon a valid condition requiring return, transfer, or conveyance of the assets, which condition has occurred or will occur, shall be returned, transferred, or conveyed in accordance with the condition.
(b) After complying with subdivision (a), any remaining assets that are held in trust shall be distributed in accordance with the trust.
(c) After complying with subdivisions (a) and (b), any remaining assets shall be distributed in accordance with the governing principles of the association. If the governing principles do not provide the manner of distribution of the assets, the assets shall be distributed pro rata to the current members of the association.
(Added by Stats. 2004, Ch. 178, Sec. 10. Effective January 1, 2005.)
(a) Notwithstanding Section 18260, a cause of action against an unincorporated association may be enforced against a person who received assets distributed under Section 18130. Liability under this section shall 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.
(b) An action under this section shall be commenced before the earlier of the following dates:
(1) Expiration of the statute of limitations applicable to the cause of action.
(2) Four years after dissolution of the unincorporated association. This paragraph does not apply in a quiet title action.
(Added by Stats. 2004, Ch. 178, Sec. 10. Effective January 1, 2005.)
