In September, a revised RE 618H form was published by the DRE. This revision allows for budget assessment changes in the Public Report. With the new process, we simply need to file an amendment application and $600 fee, then the DRE will approve use of the RE 618H form to be used with the existing report. The result is that our clients can then continue to open escrows without waiting for the b...

With the new solar requirements coming into effect in 2020, we have confirmed that the DRE will maintain their “hands off” approach to reviewing solar (lease/sale) documents. That is, unless the Subdivider is a party or related subsidiary to the solar installer. In that case, the DRE will want to review every document, to ensure that consumer protection mechanisms are in place. The movement fro...

On August 30th, a new balcony bill went into legislation. Unlike its predecessor, Senate Bill 726, Senate Bill 326 focuses primarily on condominiums and has a more in-depth inspection process. With this new bill, community associations are required to inspect balconies and other Exterior Elevated Elements (EEE), such as stairways, decks, and railings. Bill 326 requires that all new construction...

You just completed a draft of your subdivision map and are excited about the future prospects of your project.  Suddenly you find out that the City or County will not accept a road dedication, and is requiring you create an Association to maintain the road.  Typically, this type of Subdivision is considered a Common Interest Development and will require a six to nine-month processing period with t...

As you all know, when you have a project with an existing Deed of Trust, the Department of Real Estate requires that the existing loan be made subordinate to the CC&Rs.  This is accomplished through recording a “Subordination” or “Consent of the Lien Holder”, which effectively allows the CC&RS to “jump ahead” of the CC&Rs in priority of title. Do you know why the DRE requires this a...

The construction loan is recorded and construction is well underway. The DRE process is clicking along, and you just found out you need to negotiate with the Lender... Again. In an effort to fulfill their mission of consumer protection, the Department of Real Estate requires that certain documents be protected against any possibility of a loan foreclosure. In other words, certain documents that...
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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...
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...
Court room

The Bills Are Coming The state has been working on several bills to overcome the housing crisis, and one of the most discussed and disputed is AB 2353 (Frazier). AB 2353 (Frazier) shortens the timeframe for action against a person or business for a construction defect from ten years to five years after substantial completion of the project.   Favoring View Tightening the window of lega...
Hostage

Building dream homes in a planned development is a smooth and uninterrupted process for most of our clients. It's a fairly simple process despite a few additional steps involved – we do most of the heavy lifting for you.  In the rare problematic cases, issues are usually related to HOA management or the HOA board members. In some cases, the delays have prolonged more than a year, but with a few...