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HomeCorporations CodeCh. 3§ 27201 Two-Year Statute Limitations

§ 27201 Two-Year Statute Limitations

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 27201 Two-Year Statute Limitations

Key Takeaways

  • •You have to sue within 2 years of the bad thing happening.
  • •If you find out about the bad thing later, you have 1 year from when you found out.
  • •You can't sue after whichever time runs out first.

Example

Someone lied to you about a car they sold you, and you didn't realize it until later.

If the car was sold to you on January 1, 2020, but you didn't find out about the lie until January 1, 2022, you have until January 1, 2023 to sue because you found out late. But if you found out on January 1, 2021, you only have until January 1, 2022 to sue because the 2-year limit from the sale runs out first.

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

Official Source
View on CA.gov

§ 27201 Two-Year Statute Limitations

No action shall be maintained to enforce any liability created under Section 27200 unless brought before the expiration of two years after the violation upon which it is based or the expiration of one year after the discovery by the plaintiff of the facts constituting the violation, whichever shall first expire. (Added by renumbering Section 27200.1 by Stats. 1996, Ch. 458, Sec. 12. Effective January 1, 1997.)

Last verified: January 23, 2026

Key Terms

liabilityviolationdiscovery by the plaintiff

Related Statutes

  • § 29553 Four-Year Statute Limitations
  • § 12441 Member Dues And Fees Liability
  • § 12443 Creditor Actions Against Members
  • § 2702 Agent Indemnification Expenses
  • § 5351 Member Dues And Resignation

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 27201.
View Official Source