Fiduciary Obligations

According to Wikipedia, a fiduciary “is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person.” In the case of a Subdivider/Developer/Builder, the relationship of trust may include proper […]

RE 618H

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 […]

Solar Requirements Impact on Final Public Report

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 […]

Is Your Balcony Safe?

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 […]

Non-CID Subdivisions – What’s That?

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 […]

What the H&@% is a Subordination and Do I Need One?

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 […]

What Your Lender Needs to Understand About DRE Requirements

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 […]

Deferment of Assessments (for Unimproved Common Area)

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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 […]

Balcony Inspections are now part of Condo Conversion filings with DRE

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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 […]

California Introduces More Bills to End the Housing Crisis

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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 […]