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 development (planned development, condo, etc.);
- The development is located entirely within the limits of an incorporated city; and
- Only completed residences are being sold
For a quick guide to understanding when you NEED a Public Report, click HERE.
Even if you don’t NEED a public report, you may still WANT one… and here are a few reasons why:
While it can be a great relief to bypass the paperwork and bureaucratic red tape, getting a Public Report regardless of requirements might still save you time in getting to market, and it might be a forward assist with the disclosures you need for your sales program. Getting the State’s approval should be considered a significant step in vetting the disclosures and agreements you intend to use.
If your development includes a maintenance association (AKA: an HOA that doesn’t meet the definition per CA Civil Code 4100), we would recommend getting a Standard Subdivision Public Report AND obtaining a budget that meets the DRE requirements, drafted by an independent third-party company.
Working with attorneys, consultants, and state agencies should not discourage you from obtaining a public report, either. A developer can never go wrong by making sure all i’s are dotted, and t’s are crossed. A good DRE consultant will do all of the heavy lifting for you.
If it’s time you’re worried about, California Builder Services can usually obtain a Standard Public Report in two to four months compared to a possible six to nine months it might take for a common-interest development. Don’t let a lack of time dissuade you from getting your Public Report completed as soon as possible.
CONTACT US if you’re looking for an expert, independent company to take the stress out of getting a public report, HOA budget, or Reserve Study… even if you don’t NEED one!