The success of the Costco chain of stores has proven that buying in bulk makes sense to a lot of us. From retail sales to real estate, the bulk purchase concept is logically sound. Builders who negotiate a purchase of all or a portion of a subdivision may find that the bulk sale is beneficial, allowing for a better purchase price, among other things. We see these types of transactions more and ...

When an HOA is created, the assessments are triggered when the first lot or unit is sold.  For planning purposes, it’s important to note that the DRE Regulations allow for HOA assessments to be waived for HOA-maintained improvements that are not complete. In a nutshell, Regulation 2792.16c stipulates that any assessments for costs or expenses for common area which has not been completed can be def...

After the Final Public Report is issued, and the master documents are disbursed, the DRE file here at CBS is suspended, in case any issues or questions arise after the fact.  Many of the common questions are, “what happens after sales close?” When the first sale closes in a common interest development, the HOA springs to life. Assessments are due for collection on the first day of the followi...

In response to a balcony collapse in Berkley, California in 2015, SB 721 has been passed and signed into law. Effective January 2019, all multi-family buildings containing at least 3 units are required to have any load-bearing balconies and decks inspected by a licensed architect, civil or structural engineer, or building contractor. This inspection must be paid for by the property owners and prov...

Selling homes in phases? Consider structuring your next subdivision map to include multiple road lots.  Asphalt streets are definitely one of the most expensive items that HOA's maintain.  Breaking the road lot into multiple lots to match your sales plan can save thousands. Think of it this way; if you have all of the streets in one lot, it can "front load" the HOA dues program, causing assessm...

When an HOA is created, the dues start in any phase when the first lot or unit is sold. For planning purposes, it’s important to note that the DRE Regulations allow for HOA assessments to be waived for HOA-maintained improvements that are not complete. Regulation 2792.16c, in a nutshell, stipulates that any assessments for common area which has not been completed can be deferred - in other words, ...

Does your HOA common area need to be rejuvenated, but your bank account doesn't allow for much more than a new paint job?  Well, the good news is that most banks consider HOAs good investments.  Obtaining credit from a reputable agency is often much more palatable than special assessments and may be easy to obtain!  We have worked with several HOAs who have used lending to cover their financial ne...

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 of 2018.  Based on the success rate of the beta filings, it is possible that full electronic filings will be available as early as the...

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 has scrambled to hire administrative staff to support the Department, filling 18 new positions in July; but those are not the only positions needing to...