When the Department of Real Estate (DRE) processes an application for a public report, the application is anticipated to be in the name of the Subdivider.  “Subdivider,” in this sense, represents the name under which the public report will be issued.

In the matter of the application of

XYZ DEVELOPMENT, INC., a California corporation

Many times, we work with a client to create a Public Report filing and are informed later that the entity in title at the time is not the entity under which they intend to develop or sell lots.  It’s not a problem!

DRE processing can be initiated, and approved to the point where the Final Public Report is ready to be issued ~ the entity name can be changed prior to issuance.  The important point to make here, is that the entity be changed PRIOR to issuance.  Otherwise, because the Public Report is issued to a SUBDIVIDER, the entity name change would invalidate the Public Report!

The DRE approval process for a standard, single-family development (no HOA) takes 2-4 months on average to obtain approval for.  The process for a common interest subdivision (planned development, condominium, etc. – with an HOA) can take 6-9 months.  Regardless of what type of development you are pursuing, the bottom line is this:  the public report will be issued in the name of the applicant, and the applicant must be in title, or provide evidence that title will be acquired prior to any sales closing.

If you are concerned about commencing a DRE filing to get the clock ticking, but your LLC or other entity has not been finalized yet, the filing can be made under the current ownership, and TRANSFERRED to the new entity once the entity is formed and in title.

Under this scenario, there are a couple of extra steps to be taken to transition the filing to the new entity – all applications and approved documents must be edited to insert the new entity name.  However, the important take-away is that the DRE timeline doesn’t need to be stalled because formation of your entity is taking longer than you’d like. Call our office today, if you would like us to initiate work on your file, even though the entity is not yet formed.  One of our Consultants will be happy to walk you through the steps involved in getting your Public Report under this program.

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Effective July 1, DRE Has Increased Their Filing Fees

The California Department of Real Estate (DRE) is implementing new regulations that impact buyers and sellers. These new regulations will implement higher fees, revised mapping regulations, and new building configurations. Real estate professionals and stakeholders—particularly developers—must familiarize themselves with these updates to navigate the evolving regulatory framework and continue providing high-quality services. We’ve created a blog post with helpful information on the updated filing fees and a full analysis of the changes.

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