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...
scissors photo

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...
For sale signage

California passed the famous Proposition 13 more than forty years ago to rein in exorbitant property taxes. From the taxation perspective, the initiative also made it more beneficial for homeowners to stay in their homes. Now, however, Californians are being requested to vote in favor of a tax measure that can make the tax expense more bearable for the senior citizens of the state who may want ...
Home inspector

The balcony collapse at U. C., Berkeley in 2015, killing six people, was caused by a series of preventable failures. The balcony was poorly designed, badly constructed, and not inspected and maintained effectively. To target this safety measure gap, the Senate passed Senate Bill 721 (SB721) in January (the bill is currently at the State Assembly as of this writing), which requires properties wi...
Ice Cream yummy

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 d...