NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION
Subdivided LandsInvestigation, Regulation and Report
Section § 11010
If you're planning to sell or lease subdivided land in California, you have to submit an application to the Department of Real Estate. This application includes a notice that provides detailed information about the land and how it will be sold. It must include details like the owner's name, a description of the land, its title, and terms of sale. You'll also need to disclose any public utilities, special district debts, nearby schools, and potential issues like airport noise or nearby farmland activities. Some required notices about the land's location in certain influence areas or jurisdictions may apply. The department might waive certain application details if they feel buyers can be adequately informed without them.
NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION
Section § 11010.05
This law requires anyone planning to build senior citizen housing or intergenerational housing to clearly state any occupancy restrictions in their application for a public report. This information must also be included in the public report itself. For senior housing projects, these rules have been in effect since July 1, 2001, and for intergenerational housing, since January 1, 2022.
Section § 11010.1
Before someone can issue promissory notes for lots in an unrecorded subdivision, they must tell the commissioner in writing about their plans. This notice needs to include specific details like the owner's and subdivider's contact info, a description of the land, details about any debts or legal claims on the land, the terms for the notes, and what public utilities are planned. They can also include other relevant information if they choose.
Section § 11010.10
If you're planning to sell or lease lots in a subdivision and you meet certain conditions where you don't need to file a notice of intention, you can ask for an early review of certain documents called 'declarations.' If the commissioner approves these documents, it makes it easier for you to later file the necessary paperwork for a public report about the subdivision, as long as things haven't changed much from what you first described.
Section § 11010.11
This law means that even if the sales contract says something different, if you're buying residential property in a subdivision, you should know through the public report that you have the right to negotiate property inspections with the seller.
Section § 11010.2
This section explains the process and timelines for the commissioner to review applications for a public report related to property subdivisions. First, the application must be 'substantially complete' in terms of necessary documents. The applicant is informed within 10 days if the application meets these quantitative requirements. If not, the applicant will be told what’s missing. Next, any deficiencies in the content ('qualitatively complete') must be addressed within specified time frames. The commissioner must issue a public report once all requirements are met, but cannot deny a report due to missing information if they themselves have delayed updating the applicant. Additionally, if there's an increase in applications, emergency regulations can extend these timelines. The law also notes conditions where the commissioner may deny a report if other legal grounds exist, but not merely due to missing data attributed to the commissioner's delay.
Section § 11010.3
This section of the law states that the rules in this chapter do not apply to the sale or lease of lots in a subdivision if they're specifically for industrial or commercial use, according to legal declarations or documents filed with the county. However, this exemption doesn't change how it's decided if a subdivision has five or more lots, which affects other legal sections. Additionally, "commercial use" covers businesses that offer overnight accommodations and apartment complexes that aren't community apartments.
Section § 11010.35
This law section basically says that certain rules about selling or leasing lots or parcels in a subdivision don't apply if you're buying them to build residential, commercial, or industrial buildings, or to resell or lease them to someone who will do that. However, this only holds if the buyer agrees to follow the rules before they sell or lease those properties to others. If someone is trying to sell or lease with the intention of avoiding the law, this exemption doesn't apply. Also, this clarification doesn’t affect older transactions made before this rule was in place.
Section § 11010.4
This law section says that you don't need to file certain paperwork for selling subdivided land if you meet all these conditions: the land must comply with specific other sections, can't be a certain type of subdivision, must be entirely within city limits, and each unit must either come with a finished home with all necessary features or have a reliable financial plan to ensure these features will be finished. The property qualifies if the house is fully built when sold.
Section § 11010.5
Section § 11010.6
This law makes it clear that the rules in this chapter do not apply to land offered for sale, lease, or financing by state or local agencies, including the University of California and other public agencies.
Section § 11010.7
This law says that the requirement to give notice of intent to sell or lease property, as mentioned in another section, doesn't apply when property owners or their agents need to gather nonbinding agreements from tenants. These agreements are for units that might be converted into condos or similar housing types. This requirement can come from local rules or conditions set when approving land development plans.
Section § 11010.8
This law explains that a nonprofit corporation doesn't need to file a notice of intention to buy a mobilehome park if certain conditions are met. First, most of the nonprofit's members and board directors must live in the park. Second, all members must be residents, and secured parties can resell memberships if needed. Third, a specific permit to sell securities might be needed unless exemptions apply. Finally, tenant funds for buying the park must be held in escrow until the purchase is finalized. Also, any other tenant funds aren't bound by some other legal requirements.
Section § 11010.85
This law says that when a nonprofit group buys a floating home marina, they don't have to file a special notice if certain conditions are met. These conditions include that most of the group's members must be homeowners at the marina, and they also must live there. The group can make leases longer than five years with its members, including those who take over memberships due to foreclosure. The nonprofit must get a permit for issuing securities, unless specific exemptions apply. Also, any money from tenants must be kept safe in escrow until the sale is finalized. This money can be used to pay for conversion costs, but only with approval from the homeowners association.
Section § 11010.9
If someone wants to convert a mobilehome park or floating home marina into resident ownership, they must inform current residents of the expected selling price before officially starting the process. However, it's important to note that this price isn't final and could change due to governmental conditions or other factors. This disclosure doesn't allow any sales or leases to happen before proper governmental approval and a public report are issued. This information can't be used against them unless bad faith is shown.
Section § 11011
This law allows the Real Estate Commissioner to set filing fees for applications related to subdivision reports, with the possibility of reducing them if the department's costs are covered. Fees for various types of reports, including public, conditional, and preliminary reports, have specific amounts and maximum limits depending on the report type and subdivision details. At least once a year, a hearing will be held to decide if lower fees should be set. The department is required to share its financial status at these hearings. Filing fees must be used to cover administrative costs and are not refundable unless paid by mistake. All collected fees go into the Real Estate Fund.
Section § 11012
If you own or manage a property project and have submitted it to the Department of Real Estate, you cannot make major changes to how it's set up without letting them know in writing first. This rule applies if you're aware of the changes you plan to make.
Section § 11013
This section explains what a 'blanket encumbrance' means. It's any kind of debt or financial obligation, like a mortgage or lien, that covers more than one piece of subdivided land. It's also an agreement involving multiple lots, where the owner or seller has some kind of selling option or contract, affecting this group of properties.
Section § 11013.1
It's illegal for owners, developers, or agents to sell or lease lots in a subdivision with a wide-reaching financial burden unless there's a provision, called a release clause, which ensures the buyer can get full ownership of the property free from that burden after fulfilling the terms of the purchase or lease.
Section § 11013.2
This law says that if a big loan covering a whole property development (a blanket encumbrance) doesn't have a specific release clause, the seller must ensure certain protections for buyers before selling or leasing any part of it. They must either: (a) put the buyer's money in escrow until certain conditions are met; (b) hold the property's title in trust; (c) provide a bond to ensure buyers get their money back if things go wrong; or (d) follow any other method the state commissioner approves. This safeguards the buyers' investments in case the big loan is not released.
Section § 11013.3
Section § 11013.4
This section of the law says that when a piece of land divided into smaller lots (a subdivision) does not have a major overall loan (a blanket encumbrance), the seller can't sell or rent lots unless certain safeguards are in place to protect buyers or renters. These safeguards can include keeping the buyers' money in a safe account until they get the property, or having financial bonds or insurance to make sure buyers' money is secure if they don't get the property in time. The protections also cover cases where the land will have residential buildings constructed on it, ensuring the money is handled properly either in escrow or towards building the structures. Additionally, sellers can comply by following other methods the state commissioner considers acceptable.
Section § 11013.5
This law section states that when the commissioner releases a public report, it should clearly describe the process the property owner or developer is using to meet certain legal requirements regarding property subdivisions.
Section § 11013.6
This law allows for the sale or lease of shares in a stock cooperative or limited-equity housing cooperative, even if there's an overarching loan on the property, provided certain conditions are met. First, any potential buyer or tenant must be given specific legal notice about the situation. Second, the property needs a public report from the Department of Real Estate discussing the overarching loan. Lastly, the cooperative must maintain a financial reserve, starting with enough to cover at least two months of loan payments, and this reserve must grow as more shares are sold, reaching eight months' worth of payments by the time 75% of shares are sold.
Section § 11014
This law allows a commissioner to investigate any property division or subdivision that is being sold or leased in California. The commissioner can gather and use information from federal agencies like the Federal Housing Administration and the United States Veterans Administration to help with these investigations.
Section § 11018
The Real Estate Commissioner reviews subdivisions before allowing them to be sold or leased. If everything checks out, they issue a report that approves the sale or lease. However, if there’s misuse of the law, dishonest practices, or if financial or accessibility requirements aren’t met, the sale or lease can be denied. Specifically, this includes issues like not following laws, misleading buyers, insufficient financial plans for improvements, incomplete documents about property use, improper management agreements, or lacking adequate guarantees.
Section § 11018.1
Before selling or leasing a property in a subdivision, the owner or agent must provide the prospective buyer with a copy of the public report issued by the real estate commissioner. This is also required for repossessed properties. They must collect a signed receipt from the buyer confirming they received the report. Anyone can request a copy of the report, which must be openly available where sales are conducted. In the case of common interest developments, a specific statement must be given to the buyer explaining the rights and responsibilities tied to ownership, including mandatory membership in the homeowners' association and potential for assessments. This includes details on common areas, legal documents governing the association, and the possibility that initially the developer may control the association before enough units are sold. Although this statement must be provided, failing to do so isn't considered a legal violation according to a specific section.
Section § 11018.12
This section outlines the conditions under which a commissioner can issue a conditional public report for real estate subdivisions. Before such a report is issued, any significant errors in the required documents for a final public report should be fixed, and the essential elements of the offer need to be in place. However, certain documentation, like a final map or declaration of restrictions, might be pending. If these are likely to be sorted out later, a conditional report may still be issued. The law requires that any money from buyers is securely held until the final report is issued, and it allows a sale to proceed with the understanding that legal ownership won't transfer until then. The conditional report is valid for up to six months but can be extended if the final report requirements are close to being met. For larger condominium projects with 25 or more units, the validity extends up to 30 months. Also, buyers must receive a copy of this conditional report and be informed of its limitations before any sales transaction is completed.
Section § 11018.13
This law section explains that if a subdivider, who plans to develop a piece of land, does not provide necessary information within three years after filing for a subdivision public report, their application can be abandoned. The commissioner is responsible for notifying the subdivider about the intention to abandon and must create regulations about how and when this notification happens. These regulations also account for any acceptable reasons the subdivider might have for delays.
Section § 11018.14
This law states that the commissioner is not responsible for handling tasks related to the California Environmental Quality Act. However, if the commissioner receives a copy of an environmental impact report or negative declaration, it proves the act has been followed when it comes to issuing a subdivision public report.
Section § 11018.2
You can't sell or lease land in a subdivision in California without first getting a public report from the Real Estate Commissioner. This rule doesn't apply to subdivisions that don't need to file a notice of intention.
Section § 11018.3
If a developer is unhappy with the denial of their request for a public report, they have 30 days to ask for a hearing. This hearing must happen within 20 days unless they want to delay it. If the hearing and decision processes take too long and deadlines aren't met, the denial is automatically overturned, and the developer gets the public report.
Section § 11018.5
This law involves public reports for certain types of land subdivisions. It requires developers to ensure completion of properties and any shared areas or improvements, even if they're not finished when the final report is issued. Developers must set a deadline and meet one of several security conditions, like using bonds or escrow accounts to protect buyers' interests. It also ensures that purchasers gain proper legal ownership and control over their property and shared areas after the first sale. Additionally, it mandates that any management or maintenance plans must be reasonable and included in the sale terms. Lastly, it's clarified that 'purchaser' includes those who lease rather than buy.
Section § 11018.6
If you're selling or leasing property in certain subdivisions, you need to show potential buyers or renters key documents before they sign any agreement. These documents include the rules for the community, the homeowners' association's setup, financial details, and any statements about overdue payments. This ensures buyers or renters know what they're getting into.
Section § 11018.7
This law section explains that if developers or their successors want to change important rules related to property ownership in a subdivision, they can only do so with the written permission of the Real Estate Commissioner, especially if they control a large portion of the voting power. The Commissioner won't approve changes that could lead to a refusal to issue a public report on the property. Anyone interested can apply for the Commissioner's consent, which comes with a small application fee. Importantly, no meetings or solicitations can happen about these changes until the Commissioner approves the process, but the homeowners' association can discuss it internally before applying.
Section § 11019
This law gives the commissioner the power to stop a person from selling or leasing parts of a subdivision if they are breaking certain laws or regulations. If someone is found to be violating rules, making false promises, advertising incorrectly, or failing to report important changes, the commissioner can order them to stop these actions. The person must immediately follow the order, but they have the right to request a hearing within 30 days to challenge it. If the hearing is not held on time, the order is canceled. Orders must be served according to specific procedural rules.
Section § 11020
This section makes it illegal for anyone to create or distribute a public report that they know is fake or altered, and doing so can lead to serious consequences. If caught, violators can be fined up to $10,000 or be imprisoned for up to a year, or even face both penalties. Importantly, these punishments do not replace other legal consequences that may also apply.
Section § 11021
This law states that for any legal actions dealing with violations related to property sales or leases, the clock for the statute of limitations starts ticking when the deed, lease, or contract is recorded with the county recorder. However, you can still take legal action before these documents are recorded.
Section § 11022
This law makes it illegal to sell or lease subdivided lands using false or misleading advertisements, whether they appear in print, online, radio, or TV. If you're an owner or agent, you can submit your ads to the department for pre-approval by paying a fee. Ads are considered approved if the department doesn't respond within 15 days, but they can still reject similar ads later. Media companies are not accountable unless they know the ad is false or have a personal stake in the land sale.
Section § 11023
If someone breaks certain specific laws related to real estate and property transactions, they can face a fine of up to $10,000, jail time of up to a year, or both.