When to Get a Disclosure Report to Sell Lots in a Subdivision

Which Subdivision Projects Do Not Need a Disclosure Report?

There are a couple of subdivision projects that do not require a Disclosure Report. This includes subdivisions with less than five units, commercial and industrial subdivisions, subdivisions by public agencies, and the like.

What Is the Purpose of Disclosure Reports?

The Public Report is a document that provides information to the public about a certain property or project. It contains important details such as the developer’s budget, how deposits are handled, the advertisements the developer has made, and any guarantees they have promised to make. This report is created to protect consumers from being deceived or taken advantage of by misrepresentations and fraud. DRE reviews all of this information to make sure everything is up to standards before issuing the report.

What Types of Disclosure Reports Are There?

A Public Report, generally referred to as a White Report, is a document that authorizes a developer to market and sell or rent out parcels, lots, or units within a subdivision. In certain cases, a developer may receive a Preliminary Public Report, commonly referred to as a Pink Report, which gives them the ability to advertise and accept reservation deposits for the sale or lease of lots, parcels, or units in the subdivision. Any reservation deposits taken under the Preliminary Public Report are 100% refundable. In addition, a Subdivider may be granted a Conditional Public Report, which is also known as a Yellow Report, to enter into a contractual agreement with a buyer and open escrow. This is prior to the final public report being issued, provided that specific requirements are met.

What Information Can I Find in a Disclosure Report?

The Public Report is a document that provides information about a property that is being sold. It includes the applicant’s name, the location and size of the subdivision, the availability of utilities, schools, taxes, management and maintenance fees, any existing easements, setback requirements, restrictions or conditions imposed on the buyer, and any additional expenses that the buyer may need to pay. This document is specific to each project and is meant to help potential purchasers make informed decisions.


And that’s what you need to know about Disclosure Reports (Public Reports). So, if you’re planning to offer a sale or lease of five or more lots, parcels, or fractional interests in a subdivision, or if you decide to subdivide land into subdivisions, and more, understand that you will need to have a Disclosure Report. If you need help with reports processing, feel free to reach out to professional public reports processing services to help you go through the process quickly and successfully!

California Builder Services offers a variety of services to help developers and organizers create accurate reports for long-term success. If you are looking for D.R.E. public reports processing in California, request a proposal with us today.

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