A “subdivision” is defined as “improved or unimproved land” divided into five or more lots or parcels for the purpose of sale, lease, or financing...  Any person or entity who owns five or more lots in a subdivision is considered a “Subdivider.”  Subdividers must get a Final Public Report before offering subdivision lots for sale to the public. There are several exemptions to this requirement, ...

The time has finally come!  E-filing is available at the DRE.  All it requires is a quick registration with the Subdivision Online Public Reporting System, or SOPRAS.  Each SRP (Single Responsible Party) and each Subdivider must register to submit electronic files. Initially, Preliminary (Pink) Public Reports will be the only electronic filing application available, with the others to be coded ...

We often get calls from clients considering a purchase of a "broken" project, who are in the due diligence period on a project.   In this situation, it is worth the effort to investigate the project from the Department of Real Estate (DRE) perspective.  Was it filed with DRE previously?  Are there any red flags in the public report?  What would an amendment filing at DRE look like for this project...

Here’s the scenario: you’re creating a 50-lot gated community where the monthly dues will be $100 per lot. Here’s the problem: Once you begin selling homes, the HOA will begin collecting dues on all unsold lots. You can pay monthly dues on all 50 lots until they’re all sold and eat into your profits or you can phase the project into smaller “marketing phases” during which you only pay dues on u...

Although the State of California Business and Professions Code 11010.4 releases developers from the Public Report requirements if all criteria are met, a Public Report is still considered a necessity by some. According to the B&P, a public report is not required when: Purchase money is deposited with escrow and proper releases and obtained; The development is not a common interest d...

A vote in November could provide a major change for the current California rent control laws and the housing crisis. Although the specifics aren’t completely clear, one thing is certain: big changes are headed our way. The ballot initiative aims to repeal the Costa-Hawkins Rental Housing Act which places limits on rent control and prohibits “vacancy control.”  (For more info on Costa-Hawking cl...

When you need to get somewhere fast... use the Hennessy Venom F5.  When you need to amend a public report fast... use the 635A. Public Reports must be received and read by every prospective buyer before entering into a contract to purchase. It is always in your best interest to have an expert consultant in your corner, making sure you have the proper documents required to move forward with your...

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...