Selling property can be rather tedious as there are a slew of different preparations that you need to make. Before selling any units in a subdivision in California, the developer must obtain a subdivision public report from the state. This report contains information about the subdivision that potential buyers should know, such as its location, size, and any amenities that are included. The report also serves as a way for the developer to notify the state of their intention to sell the units. If you want to learn more about this, then we’ve got just the thing for you. Here’s a brief breakdown of everything that you need to know about subdivision public reports.
What is a Subdivision Final Public Report?
The Subdivision Final Public Report is a document that allows developers to sell or lease five or more lots, parcels, or units within a subdivision. This document is similar to the approval that corporations must obtain to issue and sell stock certificates. Basically, if you plan on selling or leasing five or more pieces of property that are part of a subdivision, you must first get a Public Report.
What Are the Different Types of Public Reports?
A Public Report, also called a White Report, gives a developer permission to sell or lease lots, parcels or units within a subdivision. In some cases, a developer may ask for a Preliminary Public Report, also called a Pink Report, which would let the developer advertise and collect reservation deposit money for the sale or lease of lots, parcels or units within the subdivision. Reservation deposits taken by a developer with a Preliminary Public Report are refundable. A Subdivider can also get a Conditional Public Report, also called a Yellow Report, to enter into a binding contract with a buyer and open escrow before the final public report is issued, as long as certain conditions are met.
What Information is on the Public Report?
The California Bureau of Real Estate (CalBRE) has specific guidelines that must be followed when creating a Public Report for a subdivision. This report must include the applicant’s name, the location and size of the subdivision, information on utilities, schools, taxes, management, maintenance and operational expenses, and any unusual easements, rights of way, or set back requirements. Additionally, the report must disclose any restrictions or conditions that may be imposed on the buyer, as well as any unusual costs that the consumer might have to incur. Each Public Report is unique to its specific project, and provides potential purchasers with the information they need to make an informed decision.
What Are Public Reports For?
This report is important because it offers protection against fraud and misrepresentation by developers. By reviewing the developer’s budget, deposit money handling, advertisements and guarantees, CalBRE can help ensure that consumers are getting what they expect from their purchase.
The Public Report is important for home buyers because it provides them with information about the subdivision they are interested in. The report includes information about the amenities, schools, and safety of the area. The report also includes a disclosure section that alerts buyers to any negative aspects of the subdivision.
We hope this article proves to be useful when it comes to helping you gain a better understanding of subdivision public reports. It’s in your best interest to be as prepared as possible before selling property in order to avoid potential issues down the line.
If you need land subdivision consultants, then you’ve come to the right place. We provide timely and accurate reports for subdivisions and homeowners associations. Our staff is composed of trained professionals who specialize in DRE public report processing, HOA budgeting, and reserve studies. Request a proposal now!