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Understanding Subdivision Public Reports
By Matt Unangst, 23 Jan 16:09
• Permits the sale or leasing of lots, parcels, or units within a subdivision of five or more units
• Meant to protect consumer
• Some properties are exempt
• Two types of reports
• Controlled by Department of Real Estate
Before selling or leasing lots, parcels, or units in a subdivision of five or more units, a developer must obtain permission to do so from the Department of Real Estate. This permission comes in the form of a Subdivision Public Report.
There are two kinds of property public reports: one white, one pink. The Subdivision Public Report is the white kind. It authorizes a developer to sell or lease parcels, lots, or units within a subdivision. The pink variety is also known as a Preliminary Subdivision Public Report and allows the developer to advertise and to accept reservation monies for subdivisions. Reservation monies obtained under a Preliminary Subdivision Public Report are fully refundable.
Subdivision public reports protect the consumer from misrepresentation, deceit, and fraud by giving you information about the property. This information usually includes the applicant’s name, the location and size of the subdivision, utilities information, schools, taxes, management, maintenance and operational expenses, unusual easements, rights of way, set back requirements on vacant land offerings, restrictions or conditions imposed on the buyer, any unusual costs that will be incurred by the buyer, and any unusual financial or conveyance agreements. Any negative aspects of a subdivision should be apparent from the Report.
Some properties are exempt from having to acquire Subdivision Public Reports. Besides the obvious ones with less than five subdivisions, properties with no common area where all lots are to be improved are exempt. Public agencies are not required to get Subdivision Public Reports, nor are commercial or industrial properties.
The California Department of Real Estate, itself a subdivision of the California Business and Transportation Agency, is in charge of issuing and policing Subdivision Public Reports within the State of California. This department has established stringent guidelines for Reports in order to better protect consumers. Any violation of provisions, conditions, or requirements pertaining to a Subdivision Public Report with sufficient evidence are prosecuted in the California Superior Court by the Commissioner of the Department of Real Estate. The Department of Real Estate can be reached at (213) 897-3399 to answer any further questions you may have about Subdivision Public Reports, or any other questions about real estate in California.
KEYWORDS: real estate, subdivision public reports, California department of real estate, preliminary subdivision public report, consumer protection, business and transportation agency, subdivision, lease, rent, homes for sale, houses for sale
SEE ALSO: Understanding Preliminary Title Reports, Understanding Condominium and PUD Ownership
Tags: subdivision