California Real Estate SalespersonProperty Ownership and Land Use ControlsHard
A developer plans to create 6 lots by dividing one large parcel through a recorded final map process, then sell the lots to individual buyers. Which California law primarily governs the local approval process for creating these lots, as distinct from the law governing the sale disclosures to buyers?
- AReal Estate Settlement Procedures Act, administered by HUD
- BSubdivision Map Act, administered by local government
- CSubdivided Lands Act, administered by the DRE
- DInterstate Land Sales Full Disclosure Act, administered by the FTC
Show answer & explanationAnswer & explanation
Correct answer: B. Subdivision Map Act, administered by local government
The Subdivision Map Act governs the physical division of land and the local approval of tentative and final maps for creating new parcels (5 or more), while the separate Subdivided Lands Act (administered by the DRE) governs marketing and disclosure to buyers via a public report.
Why the other options are wrong
- A. RESPA relates to federal disclosure at loan closing, unrelated to subdivision map approval.
- C. The Subdivided Lands Act deals with sales disclosures to the public via the public report, not the map approval process itself.
- D. This federal law applies to interstate sales of 25+ unimproved lots, not the local map approval process.
Subdivision Map Act vs. Subdivided Lands Act
The Subdivision Map Act (local government) controls the physical creation of parcels via tentative/final maps; the Subdivided Lands Act (DRE) controls buyer disclosure via a public report.
- Subdivision Map Act: local agency approves maps for 5+ parcels
- Subdivided Lands Act: DRE requires public report for 5+ lots sold to the public
- Both may apply to the same subdivision but regulate different aspects
Memory trick: Map Act = making the map; Lands Act = marketing the lots.