Example: Did you know phase one of the builders
new community project may offer the best return
for your investment?
Typically the lowest price for any model is offered
during the first phase.
Understanding - Subdivision Public Reports!
Question: Will there be a price increase with each phase the builder releases?| Q. What Is A Subdivision Public Report? | The Subdivision Public Report is a disclosure statement for the public which permits the sale or lease of lots, parcels or units within a subdivision. Just as corporations must obtain approval to issue and sell stock certificates, a developer must obtain approval to sell or lease five or more lots, parcels or units within a subdivision. | Q. Who Must Obtain a State of California Department of Real Estate Subdivision Public Report? | Any person or persons who intend on selling or leasing five or more lots, parcels, or units within a subdivision must first obtain a Subdivision Public Report. |
| Q. What Type of subdivision projects would be exempt from obtaining a Public Report? | * Those subdivisions with less than five (5) units.
*Subdivisions offered by public agencies.
*A standard subdivision (having NO common area) within the boundaries of a city with all lots to be improved.
*For specific examples and explanations regarding exempt status, contact the Department of Real Estate directly at (213) 897-3399. | Q. Is there more than one type of subdivision Public Report? | The subdivision Public Report, also called a "WHITE Report" Final Subdivision Public Report, authorizes a developer to sell or lease lots, parcels or units within a subdivision. On some occasions a developer may apply for a Preliminary Public Report, also known as a "PINK Report", which will allow a developer to advertise and take reservations deposit monies for the sale or lease of lots, parcels or units. Reservation deposits taken by a developer under a Preliminary Subdivision Public Report are fully REFUNDABLE. |
Q. What kind of information can typically be found in the Public Report? | The Department of Real Estate guidelines are specific about certain conditions that should always be included in the Public Report. Generally, the Public Report will disclose such information as: applicant's name, location and size of subdivision, information on utilities, schools, taxes, management, maintenance and operational expenses, unusual easements, rights of way, set back requirements on vacant land offerings, restrictions or conditions imposed upon the buyer, any unusual financial or conveyance arrangements. Each Public Report is unique to its specific project. The information found within the pages is provided to assist the potential purchaser with making an informed decision. | Q. What is the purpose of the Subdivision Public Report? | The purpose of the Subdivision Public Report is to inform the consumer about the specific property/project, thereby offering some protection from mis-representation, deceit and fraud. During the processing of the subdivision Public Report , the California Department of Real Estate, among other things, reviews the developers project management budget, deposit money handling, advertisements and the guarantees made to complete all promised improvements. |
Q. Why is the California Department of Real Estate Subdivision Public Report import to a new home buyer? | The subdivision Public Report gives a potential home buyer pertinent information regarding the subdivision he/she is buying into. Although the Public Report is neither an offer nor a recommendation to purchase, it is an invaluable source of information for the consumer. Also important is the disclosure portion of the Public Report which serves to alert consumers to any negative aspects of a particular offering. | Q. How does the California Department of Real Estate protect the subdivision purchaser? | The Department of Real Estate has established stringent guidelines and standards with which developers must comply when structuring their projects. All aspects of the subdivision offering are subject to these guidelines and standards in order to protect the public from misrepresentation, deceit and fraud.
|
Answer:
Normally the answer is yes, the average increase is $5,000.00 per phase
depending on the current market conditions,area and location.
Question: Will seeking "personal professional representation" of a Realtor
effect the price of my purchase?
Answer:
No...Typically your Realtor is paid from a marketing budget, builders do not
adjust the price of the home to pay your Realtor.
Question: Do I have to have a Realtor?
Answer:
No! The builders hire agents for each of the sales office's. The builder's agents will write your contract and handle the transaction details.
Warning! Having your own professional representation during your transaction
may save you thousands.
Question: Do you have more questions?
Answer: Call or e-mail me for answers.