California Real Estate SalespersonProperty Ownership and Land Use ControlsHard
A developer plans to subdivide raw land into 8 residential lots for sale to the public in California. Under the Subdivided Lands Act, which of the following is required before the developer can sell or lease any of the lots?
- AA CC&R document recorded with the county assessor
- BA certificate of occupancy for each lot
- CA Public Report issued by the California Department of Real Estate (DRE)
- DApproval of a Final Map by the county recorder only
Show answer & explanationAnswer & explanation
Correct answer: C. A Public Report issued by the California Department of Real Estate (DRE)
The Subdivided Lands Act requires a developer subdividing land into five or more parcels for sale or lease to obtain a Public Report (formerly issued by the DRE, now the Department of Real Estate) before offering the lots for sale, which discloses material facts about the subdivision to protect prospective buyers.
Why the other options are wrong
- A. Recording CC&Rs governs use restrictions but does not satisfy the Subdivided Lands Act's public report requirement.
- B. Certificates of occupancy relate to building code compliance for construction, not subdivision sales disclosure.
- D. A Final Map addresses the physical subdivision of land under the Subdivision Map Act, a separate process from Subdivided Lands Act disclosure requirements.
Subdivided Lands Act - Public Report
California law requiring developers offering five or more subdivided lots for sale or lease to obtain a Public Report from the DRE before marketing or selling, disclosing material facts to protect buyers.
- Applies to subdivisions of 5 or more lots/units/interests
- Buyer must receive the report and has right to rescind within specified time if not given
- Enforced by the California DRE, distinct from the Subdivision Map Act's Final/Parcel Map process
Memory trick: 5 or more lots? Get the DRE's Public Report before you sell a single spot.