When a common-interest subdivision includes common facilities or services that are provided to a limited number of lots or units as a special benefit available to some purchasers but not all, a Cost Center should be created. It would be unreasonable to collect assessments from all members of the HOA if only a limited number of lots/units are benefitting. Thus, the creation of the “Cost Center,”...

When a new development is being marketed at startup, the initial HOA operating budget is created based on estimates and projections - the improvements are usually incomplete at the time the budget is created. As a result, the as-built improvements may be slightly different than originally planned. For real estate professionals marketing the new development, and for the developers themselves, it...

In large developments, phasing the sale outs is inevitable, to avoid exposure to HOA assessments.   Most likely, the first few phases will have the majority of the common area due to the structure of the subdivision map, causing the HOA to be “front-loaded.” This front-loading of amenities results in the first phases having unusually high HOA assessments – heavy common areas with few homes to spre...

Planning and implementing your marketing budget is crucial to the success of your business. Defining your financial projections, determining expected capital expenditures, and understanding current and future market conditions will be essential to your project’s success. We know that our clients have timelines and sales objectives to be met that are imperative to achieving their goals. Do you h...

  When the California Department of Real Estate (DRE) became the California Bureau of Real Estate (BRE) in 2013, it was a whopper of a change for industry professionals. It was essentially a reduction and rearrangement of the Department overall, putting it under the Department of Consumer Affairs.  All of the applications, forms, documents, and titles had to be rewritten or revised. Now...

We have developed a convenient flow chart that will walk you through exactly what you need to know about Public Report requirements for your project. Our specialized staff at California Builder Services not only offers free consultations, but we will be able to promptly assess what Public Reports are needed to keep you on track to get your property on the market as quickly as possible. By fa...

In an effort to accommodate industry, the Department of Real Estate (DRE) created a "Limited Term" Final Public Report option.  The Limited Term Final Public Report (LTFPR) is an option available to those builders and developers who are faced with circumstances limiting their ability to comply with all of the requirements necessary to obtain a full term (5 year) Final Public Report.  A LTFPR is a ...
subdivider

10 Reasons You Might Be A Subdivider and a few reasons you might not be... Many of our clients who call are confused as to when or whether they must obtain a Public Report prior to offering properties that they own for sale to the public.  We hope in this article to simplify the understanding of who, when and why a public report might be required, even when the person or entity selling prope...

The Public Report Process is usually the critical path in a residential subdivision.  With that in mind, we encourage our clients to initiate the process as early as possible.  The Department of Real Estate (DRE) process requires a minimum of four months' processing time at DRE.  Following is a chart that outlines the DRE response times that are mandated by law. COMMON INTEREST STANDARD P...
CID

Many of our clients are wary about turning over control of the project entry to the HOA too early in the project’s sale-out phase. Once an improvement is owned by the HOA, it is their responsibility to maintain it, and the subdivider often prefers to maintain it at a higher level than the HOA would. More and more often, we see Use and Maintenance Agreements utilized, which allow the subdivider ...