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...

E-FILING becomes a reality in 2018 Electronic filings have been discussed for the past five years, and some thought it might never happen.  Alas, it is happening, in 2018.  Our firm will be participating in beta testing of pink report application filings in July, 2018.  Based on the success rate of the beta filings, it is possible that full electronic filings will be available as early as the f...

It's official!  The Department of Real Estate is back!  The former Bureau of Real Estate has regained independence and is back to operating as an independent Department within California's government structure.   Since this announcement, management is scrambling to hire administrative staff to support the Department, filling 18 new positions in July; but those are not the only positions needing to...

One of the first questions we get asked when meeting someone is, “Which Projects have you worked on?”  Most recently, the second question is almost always, “Where are they getting the water for that?” It would appear the California drought is still alive and well and, as the hot summer days are approaching, the question is becoming more relevant as a concern for home builders. During the hei...

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 collect dues on all unsold lots. You can pay monthly on all 50 lots until they’re all sold and slowly eat into your profits, or you can phase the project into smaller “Marketing Phases”.  You only pay dues on unsold lots withi...

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...