Thursday, April 2, 2009
Purchasing real estate
The purchase of real estate is the largest single investment most Californians make during their lifetimes. Subdivision laws enforced by the Department help ensure that subdividers deliver to buyers what was agreed to at the time of sale.
These laws cover most standard subdivisions and various types of common interest developments (of 5 or more lots or units), time-shares, certain undivided interest developments, and out-of-state time-share subdivisions offered for sale in California.
Before real property which has been subdivided can be marketed in California, the subdivider must obtain a public report from the DRE. The public report discloses to prospective buyers pertinent information about a particular subdivision. Prior to the issuance of a public report, the subdivider must file an application along with supporting documents with respect to representations made in the application. If improvements to the subdivision are not complete at the time of filing the application, the subdivider must also submit evidence to the Department that adequate financial arrangements have been made for their completion.
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