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What is a Subdivision Public
Report?
The Subdivision Public Report is a disclosure statement for the
public which permits the sale or lease of lots, parcels or units within a
subdivision. Just as corporations must obtain approval to sell or lease five or
more lots, parcels within a subdivision.
Who must obtain a State of California
Department of Real Estate Subdivision Public Report?
Any person or
persons who intend on selling or leasing five or more lots, parcels, or units
within a subdivision must first obtain a Subdivision Public Report.
What types of subdivision projects would be
exempt from obtaining a Public Report?
Those subdivisions with less than
five units; Subdivisions offered by public agencies; Commercial and industrial
subdivisions; A standard subdivision (having no common area) within the
boundaries of a city with all lots to be improved. For specific examples and
explanations regarding exempt status, contact the Department of Real Estate
directly at (916) 227-0931.
Is there more than one type of Subdivision
Public Report?
The Subdivision Public Report, also called a White Report
or Final Subdivision Public Report, authorizes a developer to sell or lease
lots, parcels or units within a subdivision. On some occasions a developer may
apply for a Preliminary Public Report, also known as a Pink Report, which will
allow a developer to advertise and take reservation deposit monies for the sale
or lease of lots, parcels or units within subdivision. Reservation deposits
taken by developer under a Preliminary Subdivisions Public Report are fully
refundable.
What kind of information is typically found
in the Public Report?
The Department of Real Estate guidelines are
specific about certain conditions that should always be included in the Public
Report. Generally the Public Report will disclose such information as:
applicant's name, location and size of the subdivision, information on
utilities, schools, taxes, management, maintenance and operational expenses,
unusual easements, rights of way, set back requirements on vacant land
offerings, restrictions or conditions imposed upon the buyer, any unusual costs
that a consumer might have to incur and any unusual financial or conveyance
arrangement. Each Public Report is unique to its specific project. The
information found within the pages is provided to assist the potential
purchaser with making an informed decision.
What is the purpose of the Subdivision
Public Report?
The purpose of the Subdivision Public Report is to inform
the consumer about a specific property or project, thereby offering some
protection from misrepresentation, deceit and fraud. During the processing of
the Subdivision Public Report, the California Department of Real Estate, among
other things, reviews the developer's project management budget, deposit money
handling, advertisements and the guarantees made to complete all promised
improvements..
What State of California agency is
responsible for policing compliance with Public Reports?
The
Commissioner of the Department of Real Estate is responsible for policing
compliance of the Subdivision Public Report. Whenever the Commissioner believes
from satisfactory evidence that any person has or is about to violate any
provisions, conditions, or requirements of the Subdivision Public Report, the
Commissioner may bring an action in the Superior Court against such person, in
the name of the State of California.
Why is the California Department of Real
Estate Subdivision Public Report important to a new home buyer?
The
Subdivision Public Report gives a potential home buyer pertinent information
regarding the subdivision he/she is buying into. Although the Public Report is
neither an offer nor a recommendation to purchase, it is an invaluable source
of information for the consumer. Also important is the disclosure portion of
the Public Report which serves to alert consumers to any negative aspects of a
particular offering.
What State of California Agency is
responsible for policing compliance with Public Reports?
Under the
California Business and Transportation Agency is the Department of Real Estate,
whose Chief officer is the Real Estate Commissioner. It is the Real Estate
Commissioner's duties, through the Department of Real Estate, to issue the
Subdivision Public Reports, license real estate brokers and sales persons, and
adopt rules and regulations for the enforcement of the California laws dealing
with the real estate industry.
How does the California Department of Real
Estate protect the subdivision purchaser?
The Department of Real Estate
has established stringent guidelines and standards with which developers must
comply when structuring their projects. All aspects of the subdivision offering
are subjected to these guidelines and standards in order to protect the public
from misrepresentation, deceit and fraud.
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