Stack of coins

Not all lots or units are created equal.  Sometimes the range of differences is based on square footage, location, or certain amenities like ADUs or outside patios.  Other times it may be simply that certain groups are designated as “affordable,” which requires a lower dues assessment level. If the difference is due to size, determining the variance is a function of calculating the unit sizes o...
Available Sign

The Department of Real Estate oversees the marketing and sales of subdivided lands, which is generally defined as developments consisting of five (5) or more lots or units, for sale to members of the public.  With their mission to provide consumer protection to California homebuyers, the DRE review investigates subdivision offerings to prevent fraud and misrepresentation in subdivision sales. D...
Bulk photo

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 ...
What's Next icon

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...
balcony pic

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...
Sands through the hour glass

This is by far the most-frequent question we encounter in our day-to-day business.  And the good news is, that we can usually provide a fairly good estimate of the time period required for your particular project!  The Department of Real Estate is governed by specific timeframes in which they must respond to an application filing.  The regulatory timeframes, coupled with detailed information about...
Password

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 ...
Streets aerial view

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...
Pool under construction

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, ...
Rubber stamp

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...