§ 4540 Violation Penalties For Purchasers

Civil Code·California

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Key Takeaways

•If someone breaks this rule on purpose, they have to pay money to the person who bought something affected by this rule.
•They have to pay for the actual harm they caused, plus up to $500 extra as a punishment.
•If the case goes to court, the winner gets their lawyer fees paid by the loser.

Example

Imagine you buy a condo, and the seller hides big problems with it on purpose.

The seller broke the rule by lying, so they have to pay you for the repairs and an extra $500. If you sue them and win, they also have to pay your lawyer bills.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 4540 Violation Penalties For Purchasers

Any person who willfully violates this article is liable to the purchaser of a separate interest that is subject to this section for actual damages occasioned thereby and, in addition, shall pay a civil penalty in an amount not to exceed five hundred dollars ($500). In an action to enforce this liability, the prevailing party shall be awarded reasonable attorney’s fees. (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)

Last verified: January 21, 2026

Key Terms

willfully violates separate interest actual damages civil penalty reasonable attorney’s fees

References

Official text at leginfo.legislature.ca.gov
California Legislature. Civil Code. Section 4540.

Key Takeaways

Example

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Related Statutes

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Key Takeaways

Example

Key Terms

Related Statutes

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