10 Reasons You Might Be 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 properties was not the original ‘subdivider’ who actually directed preparation of, or signed a subdivision map:

You might be a subdivider, if:

  1. you subdivide, by parcel map or final map, an existing parcel of land into five or more parcels, or condominium units for the purpose of saleeven if only ONE of the interests is created for residential use
  2. you create five or more lots or units for the purposes of leasing them individually in terms of one year or longer
  3. you create five or more lots or units for the purpose of obtaining individual loans on each parcel or unit
  4. you subdivide contiguous parcels into a total aggregate of five or more (two or more separate maps)
  5. you create five or more interests in an existing building (conversion) – even if only ONE of the interests is created for residential use
  6. you create an aggregate of five or more lots through a Lot Line Adjustment
  7. you purchase five or more lots or units from a seller who was issued a public report
  8. you incrementally purchase five or more lots or units (buy less than five, then acquire more)
  9. you are the Subdivider, and you own one or more lots or units in a subdivision after the term of the public report has expired (you are obligated to maintain a current public report so long as you own even one unit)
  10. If you own apartments and convert them to condominiums


You are NOT considered a subdivider, if:

  • you accumulate five or more lots in a development from individual purchasers
  • you are a subdivider who sells a lot/unit under a valid Public Report and subsequently foreclose on it


**It is important to note that there are exemptions to Public Report filings, as discussed in a previous newsletters and articles. Please contact our office for a free professional consultation on your specific project.**

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