Out-of-state Land Promotions - Real Estate Regulations - Business & Professions - CA

Section § 10249

If you're looking to sell or lease property lots outside of California but still within the U.S., you need to register the subdivision with the California commissioner before making any offers. This involves submitting a proper application, paying a fee, and confirming that the property meets all local laws where it's located. The commissioner has 10 days to let you know if everything's okay or if there are any issues. If you don't hear back in 10 days, the registration is considered complete.

(a) A person acting as a principal or agent who intends, in this state, to sell or lease or offer for sale or lease lots, parcels, or interests in a subdivision, as defined in Section 10249.1, situated outside of this state but within the United States, shall, prior to a sale, lease, or offer, register the subdivision with the commissioner. An application for registration shall be made on a form acceptable to the commissioner and include, together with a fee, a description of the offering, certification by the applicant that the subdivision is in compliance with all applicable requirements of the state or states wherein the project is located, evidence of this compliance, if applicable, and a consent to service as described in Section 10249.92.

(b) The commissioner, within 10 days of receipt of an application of registration, shall provide the applicant with notice of the completion of the registration or a notice of deficiency. If the department does not provide a notice within 10 days, the registration shall be deemed complete.

subdivision registration out-of-state property property sale ...

Section § 10249.1

This section defines what a 'subdivision' means for certain legal purposes in California. It includes land that's either divided or planned to be divided into five or more lots for sale or lease. It also covers land where five or more undivided interests are created or planned for sale or lease. Additionally, it refers to another legal definition with some exclusions.

“Subdivision,” as used in Section 10249, includes all of the following:

(a) Improved or unimproved land or lands divided or proposed to be divided for the purpose of sale or lease, whether immediate or future, into five or more lots or parcels.

(b) Improved or unimproved land or lands in which, for the purpose of sale or lease, whether immediate or future, five or more undivided interests are created or proposed to be created.

subdivision land division lots ...

Section § 10249.3

This law allows the commissioner to set filing fees for registration at levels lower than the maximum, to cover administrative costs. Each year, a hearing is held to review the department's finances and decide if lower fees are possible. Notice of the hearing and financial status must be posted 15 days prior. Maximum fees for new, renewed, or amended registrations are $100, not to exceed $130 each. All collected fees are non-refundable unless a mistake was made, and are deposited into the Real Estate Fund.

(a) The commissioner may by regulation prescribe filing fees in connection with registrations with the department pursuant to the provisions of this article that are lower than the maximum fees specified in subdivision (b) if the commissioner determines that the lower fees are sufficient to offset the costs and expenses incurred in the administration of this article. The commissioner shall hold at least one hearing each calendar year to determine if lower fees than those specified in subdivision (b) should be prescribed. At this hearing, the department shall report on the financial status of the department, including the revenues, expenditures, and reserves as of the end of the previous fiscal year. The department shall post a hearing notice 15 days in advance of the hearing that includes the required information about the financial status of the department.

(b) The filing fee for an application for a registration with the department pursuant to the provisions of this article shall be set at the amount prescribed below and shall not exceed the maximum specified for each subdivision or phase of the subdivision in which interests are to be offered for sale or lease:

(1) An application for an original registration: One hundred dollars ($100), not to exceed one hundred thirty dollars ($130).

(2) An application for a renewal registration: One hundred dollars ($100), not to exceed one hundred thirty dollars ($130).

(3) An application for an amended registration: One hundred dollars ($100), not to exceed one hundred thirty dollars ($130).

(c) All fees collected by the Department of Real Estate under authority of this article shall be deposited into the Real Estate Fund under Chapter 6 (commencing with Section 10450) of Part 1. All fees received by the department pursuant to the provisions of this article shall be deemed earned upon receipt. No part of any fee is refundable unless the commissioner determines that it was paid as a result of mistake or inadvertence.

commissioner filing fees registrations ...

Section § 10249.8

This California law makes it illegal to sell or offer for sale properties located entirely outside of California but within the U.S. without including a specific disclaimer in advertising. The disclaimer, which must be in at least 10-point type, informs potential buyers that the California Department of Real Estate has not inspected the property. For non-written offers, the disclaimer must be mailed to the potential buyer before any scheduled visit or contact. If a California resident is given a contract for such a property, this disclaimer must also appear at the top of the contract and be initialed by the buyer.

(a) Notwithstanding any provision to the contrary in Section 10249 or 11000, it is unlawful for a person, in this state, to sell or lease or offer for sale or lease lots, parcels, or interests in a subdivision, as defined in Section 10249.1, entirely located outside of this state but within the United States, unless any printed material, literature, advertising, or invitation in this state relating to that sale, lease, or offer clearly and conspicuously contains the following disclaimer in at least 10-point type:

WARNING: THE CALIFORNIA DEPARTMENT OF REAL ESTATE HAS NOT INSPECTED, EXAMINED, OR QUALIFIED THIS OFFERING.

(b) If an offer on property described in subdivision (a) is not initially made in writing, the disclaimer set forth in subdivision (c) shall be received by the offeree in writing prior to a visit to a location, sales presentation, or contact with a person representing the offeror, when the visit or contact was scheduled or arranged by the offeror or its representative. The deposit of the disclaimer in the United States mail, addressed to the offeree and with first-class postage prepaid, at least five days prior to the scheduled or arranged visit or contact, shall be deemed to constitute delivery for purposes of this section.

(c) If a California resident is presented with an agreement or contract to lease or purchase any property described in subdivision (a), when an offer to lease or purchase that property was made to that resident in California, a copy of the disclaimer set forth in this subdivision shall be inserted in at least 10-point type at the top of the first page of that agreement or contract and shall be initialed by that California resident.

WARNING: THE CALIFORNIA DEPARTMENT OF REAL ESTATE HAS NOT QUALIFIED, INSPECTED, OR EXAMINED THIS OFFERING, INCLUDING, BUT NOT LIMITED TO, THE CONDITION OF TITLE, THE STATUS OF BLANKET LIENS ON THE PROJECT (IF ANY), ARRANGEMENTS TO ASSURE PROJECT COMPLETION, ESCROW PRACTICES, CONTROL OVER PROJECT MANAGEMENT, RACIALLY DISCRIMINATORY PRACTICES (IF ANY), TERMS, CONDITIONS, AND PRICE OF THE OFFER, CONTROL OVER ANNUAL ASSESSMENTS (IF ANY), OR THE AVAILABILITY OF WATER, SERVICES, UTILITIES, OR IMPROVEMENTS. IT MAY BE ADVISABLE FOR YOU TO CONSULT AN ATTORNEY OR OTHER KNOWLEDGEABLE PROFESSIONAL WHO IS FAMILIAR WITH REAL ESTATE AND DEVELOPMENT LAW IN THE STATE WHERE THIS SUBDIVISION IS SITUATED.

real estate disclaimer out-of-state property California Department of Real Estate ...

Section § 10249.9

In California, it's illegal to sell or lease property in a subdivision located outside the U.S. without adding a clear warning in advertisements or offers stating that the California Department of Real Estate has not reviewed the offer. This disclaimer must be in capital letters and at least 10-point font. If the initial offer is not in writing, the disclaimer must be provided in writing before any meeting or contact about the property. If a California resident is offered a contract to lease or buy such a property, the disclaimer must be on the first page of the contract and initialed by the resident.

(a) Notwithstanding any provision to the contrary in Section 10249 or 11000, it is unlawful for a person, in this state, to sell or lease or offer for sale or lease a lot, parcel, or interest in a subdivision, located outside the United States, unless the printed material, literature, advertising, or invitation in this state relating to that sale, lease, or offer clearly and conspicuously contains the following disclaimer in at least 10-point capital type:

WARNING: THE CALIFORNIA DEPARTMENT OF REAL ESTATE HAS NOT EXAMINED THIS OFFERING, INCLUDING, BUT NOT LIMITED TO, THE CONDITION OF TITLE, THE STATUS OF BLANKET LIENS ON THE PROJECT (IF ANY), ARRANGEMENTS TO ASSURE PROJECT COMPLETION, ESCROW PRACTICES, CONTROL OVER PROJECT MANAGEMENT, RACIALLY DISCRIMINATORY PRACTICES (IF ANY), TERMS, CONDITIONS, AND PRICE OF THE OFFER, CONTROL OVER ANNUAL ASSESSMENTS (IF ANY), OR THE AVAILABILITY OF WATER, SERVICES, UTILITIES, OR IMPROVEMENTS. IT MAY BE ADVISABLE FOR YOU TO CONSULT AN ATTORNEY OR OTHER KNOWLEDGEABLE PROFESSIONAL WHO IS FAMILIAR WITH REAL ESTATE AND DEVELOPMENT LAW IN THE COUNTRY WHERE THIS SUBDIVISION IS SITUATED.

(b) If an offer on property described in subdivision (a) is not initially made in writing, the foregoing disclaimer shall be received by the offeree in writing prior to a visit to a location, sales presentation, or contact with a person representing the offeror, when the visit or contact was scheduled or arranged by the offeror or its representative. The deposit of the disclaimer in the United States mail, addressed to the offeree and with first-class postage prepaid, at least five days prior to the scheduled or arranged visit or contact, shall be deemed to constitute delivery for purposes of this section.

(c) If any California resident is presented with an agreement or contract to lease or purchase a property described in subdivision (a), when an offer to lease or purchase that property was made to that resident in California, a copy of the disclaimer set forth in subdivision (a) shall be inserted in at least 10-point type at the top of the first page of that agreement or contract and shall be initialed by that California resident.

out-of-country subdivisions real estate offers disclaimer requirement ...

Section § 10249.91

When you register under this law, it's typically valid for one year. However, the commissioner can decide to make it last longer.

The term of a registration issued pursuant to this article shall be one year, unless the commissioner by regulation prescribes a longer term.

registration term one year validity commissioner's regulation ...

Section § 10249.92

Anyone applying for registration under this rule must agree that if they can't be personally served with legal papers in California after trying hard, those papers can be given to the Secretary of State instead. This rule follows as closely as possible the rules for serving papers on the Secretary of State, as outlined in another part of the law.

A registration application pursuant to the provisions of this article shall be accompanied by an irrevocable consent stating that if in any action commenced against the applicant in this state personal service of process upon the applicant cannot be made after the exercise of due diligence, a valid service may thereupon be made upon the applicant by delivering the process to the Secretary of State.

Insofar as possible, the provisions of Section 1018 of the Code of Civil Procedure relating to service of process on the Secretary of State are applicable to this section.

registration application irrevocable consent personal service of process ...

Section § 10249.93

This law lets a commissioner stop someone from breaking rules related to selling or leasing subdivision interests. If the commissioner finds a violation, they can issue an order for the person to immediately stop their actions. The person must comply right away but can ask for a hearing to challenge the order.

(a) If the commissioner finds, based on available evidence, that a person is violating any provision of this article or a regulation of the commissioner adopted to implement a provision of this article, the commissioner may order the person to cease and desist from committing the violation or to cease and desist from the further sale or lease of an interest in the subdivision until the violation is corrected.

(b) A person to whom an order is directed shall, upon receipt of the order, immediately cease the activity described in the order.

commissioner violation cease and desist ...