Article 2 - Investigation, Regulation and Report

California Business and Professions Code — §§ 11010-11023

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Sections (40)

Amended by Stats. 2021, Ch. 431, Sec. 31. (SB 800) Effective January 1, 2022.

(a)Except as otherwise provided pursuant to subdivision (c) or elsewhere in this chapter, any person who intends to offer subdivided lands within this state for sale or lease shall file with the Department of Real Estate an application for a public report consisting of a notice of intention and a completed questionnaire on a form prepared by the department.
(b)The notice of intention shall contain the following information about the subdivided lands and the proposed offering:
(1)The name and address of the owner.
(2)The name and address of the subdivider.
(3)The legal description and area of lands.
(4)A true statement of the condition of the title to the land, particularly including all encumbrances thereon.
(5)A true statement of the terms and conditions on which it is intended to dispose of the land, together with copies of any contracts intended to be used.
(6)A true statement of the provisions, if any, that have been made for public utilities in the proposed subdivision, including water, electricity, gas, telephone, and sewerage facilities. For subdivided lands that were subject to the imposition of a condition pursuant to subdivision (b) of Section 66473.7 of the Government Code, the true statement of

the provisions made for water shall be satisfied by submitting a copy of the written verification of the available water supply obtained pursuant to Section 66473.7 of the Government Code.

(7)A true statement of the use or uses for which the proposed subdivision will be offered.
(8)A true statement of the provisions, if any, limiting the use or occupancy of the parcels in the subdivision.
(9)A true statement of the amount of indebtedness that is a lien upon the subdivision or any part thereof, and that was incurred to pay for the construction of any onsite or offsite improvement, or

any community or recreational facility.

(10)A true statement or reasonable estimate, if applicable, of the amount of any indebtedness that has been or is proposed to be incurred by an existing or proposed special district, entity, taxing area, assessment district, or community facilities district within the boundaries of which, the subdivision, or any part thereof, is located, and that is to pay for the construction or installation of any improvement or to furnish community or recreational facilities to that subdivision, and which amounts are to be obtained by ad valorem tax or assessment, or by a special assessment or tax upon the subdivision, or any part thereof.
(11)A notice pursuant to Section 1102.6c of the Civil Code.
(12)(A) As to each school district serving the subdivision, a statement from the appropriate district that indicates the location of each high school, junior high school, and elementary school serving the subdivision, or documentation that a statement to that effect has been requested from the appropriate school district.
(B)In the event that, as of the date the notice of intention and application for issuance of a public report are otherwise deemed to be qualitatively and substantially complete pursuant to Section 11010.2, the statement described in subparagraph (A) has not been provided by any school district serving the subdivision, the person who filed the notice of intention and application for issuance of a public report shall immediately provide the department with the name, address, and telephone number of that

district.

(13)(A) The location of all existing airports, and of all proposed airports shown on the general plan of any city or county, located within two statute miles of the subdivision. If the property is located within an airport influence area, the following statement shall be included in the notice of intention:
(B)For purposes of this section, an “airport influence area,” also known as an “airport referral area,” is the area in which current or future airport-related noise, overflight, safety, or airspace protection factors may significantly affect land uses or necessitate restrictions on those uses as determined by an airport land use commission.
(14)A true statement, if applicable, referencing any soils or geologic

report or soils and geologic reports that have been prepared specifically for the subdivision.

(15)A true statement of whether or not fill is used, or is proposed to be used, in the subdivision and a statement giving the name and the location of the public agency when information concerning soil conditions in the subdivision is available.
(16)On or after July 1, 2005, as to property located within the jurisdiction of the San Francisco Bay Conservation and Development Commission, a statement that the property is so located and the following notice:NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION

This property is located within the jurisdiction of the San Francisco Bay Conservation and Development

Commission. Use and development of property within the commission’s jurisdiction may be subject to special regulations, restrictions, and permit requirements. You may wish to investigate and determine whether they are acceptable to you and your intended use of the property before you complete your transaction.

(17)If the property is presently located within one mile of a parcel of real property designated as “Prime Farmland,” “Farmland of Statewide Importance,” “Unique Farmland,” “Farmland of Local Importance,” or “Grazing Land” on the most current “Important Farmland Map” issued by the California Department of Conservation, Division of Land Resource Protection, utilizing solely the county-level GIS map data, if any, available on the Farmland Mapping and Monitoring Program Website. If the residential property is within one mile

of a designated farmland area, the report shall contain the following notice:

NOTICE OF RIGHT TO FARM

This property is located within one mile of a farm or ranch land designated on the current county-level GIS “Important Farmland Map,” issued by the California Department of Conservation, Division of Land Resource Protection. Accordingly, the property may be subject to inconveniences or discomforts resulting from agricultural operations that are a normal and necessary aspect of living in a community with a strong rural character and a healthy agricultural sector. Customary agricultural practices in farm operations may include, but are not limited to, noise, odors, dust, light, insects, the operation of pumps and machinery, the storage and disposal of manure, bee pollination, and the ground or

aerial application of fertilizers, pesticides, and herbicides. These agricultural practices may occur at any time during the 24-hour day. Individual sensitivities to those practices can vary from person to person. You may wish to consider the impacts of such agricultural practices before you complete your purchase. Please be advised that you may be barred from obtaining legal remedies against agricultural practices conducted in a manner consistent with proper and accepted customs and standards pursuant to Section 3482.5 of the Civil Code or any pertinent local ordinance.

(18)Any other information that the owner, their agent, or the subdivider may desire to present.
(c)The commissioner may, by regulation, or on the basis of the particular circumstances of a proposed offering,

waive the requirement of the submission of a completed questionnaire if the commissioner determines that prospective purchasers or lessees of the subdivision interests to be offered will be adequately protected through the issuance of a public report based solely upon information contained in the notice of intention.

Amended by Stats. 2021, Ch. 364, Sec. 2. (SB 591) Effective January 1, 2022.

(a)A person who proposes to create a senior citizen housing development, as defined in Section 51.3 or 51.11 of the Civil Code, or an intergenerational housing development, as defined in Section 51.3.5 of the Civil Code, shall include in the application for a public report a complete statement of the restrictions on occupancy that are to be applicable in the development. Any public report issued for a senior housing development or an intergenerational housing development shall also include a complete statement of the restrictions on occupancy to be applicable in the development.
(b)This section shall become operative on July 1, 2001, and shall apply to all applications for a public report for a senior housing development

submitted to the department on or after July 1, 2001.

(c)This section shall be operative for, and shall apply to all applications for a public report submitted to the department for, intergenerational housing developments on and after January 1, 2022.

Added by Stats. 1961, Ch. 886.

Prior to the issuance of promissory notes secured by individual lots in an unrecorded subdivision, the owner, his agent or subdivider shall notify the commissioner in writing of his intention to issue such notes.

The notice of intention shall contain the following information:

(a)The name and address of the owner.
(b)The name and address of the subdivider.
(c)The legal description and area of lands.
(d)A true statement of the condition of the title to the land, particularly including all encumbrances thereon.
(e)A true statement of the terms and conditions on which it is intended to issue the promissory notes.
(f)A true statement of the provisions, if any, that have been made for public utilities in the proposed subdivision, including water, electricity, gas and telephone facilities.
(g)Such other information as the owner, his agent or subdivider, may desire to present.

Amended by Stats. 2012, Ch. 181, Sec. 8. (AB 806) Effective January 1, 2013. Operative January 1, 2014, by Sec. 86 of Ch. 181.

A person who plans to offer for sale or lease lots or other interests in a subdivision which sale or lease (a) is not subject to the provisions of this chapter, (b) does not require the submission of a notice of intention as provided in Section 11010, or (c) is subject to this chapter and for which the local jurisdiction requires review and approval of the declaration, as defined in Section 4135 of the Civil Code, prior to or concurrently with the recordation of the subdivision map and prior to the approval of the declaration pursuant to a notice of intention for a public report, may submit an application requesting review of the declaration, along with any required supporting documentation, to the commissioner, without the filing of a notice of intention for the subdivision for which the declaration is being prepared. Upon approval, the commissioner shall give notice to the applicant that the declaration shall be approved for a subsequent notice of intent filing for

any public report for the subdivision identified in the application, provided that the subdivision setup is substantially the same as that originally described in the application for review of the declaration.

Added by Stats. 2001, Ch. 307, Sec. 1. Effective January 1, 2002.

Notwithstanding any provision in the purchase contract to the contrary, if the subdivision is to be used for residential purposes, the subdivision public report shall disclose that a prospective buyer has the right to negotiate with the seller to permit inspections of the property by the buyer, or the buyer’s designee, under terms mutually agreeable to the prospective buyer and seller.

Amended by Stats. 2000, Ch. 279, Sec. 1. Effective January 1, 2001.

(a)As used in this section:
(1)“Quantitative” means the number and type of documents required to make the filing substantially complete, as defined in the regulations of the commissioner, without regard to the content of those requirements.
(2)“Qualitatively complete” means that all deficiencies and substantive inadequacies contained in the documents that were required to make the filing substantially complete

have been corrected.

(3)“Substantially complete” means that a notice and application contain all requirements as set forth in the regulations of the commissioner.
(b)Upon receipt of a notice of intention pursuant to Section 11010 and an application for issuance of a public report, the commissioner shall review the notice and application to determine if the notice and application are substantially complete, with respect to quantitative requirements. The commissioner shall notify the applicant in writing of that determination within 10 days of receipt of the notice and application.
(1)If the notice and application are not substantially complete with respect to the quantitative requirements pursuant to this subdivision, the notification shall specify the information needed to make the notice and application

substantially complete. Upon receipt of any resubmittal of a notice and application, the commissioner shall notify the applicant in writing of that determination within 10 days of receipt of the notice and application.

(2)If the commissioner determines that the notice and application are substantially complete with respect to the quantitative requirements pursuant to this subdivision, the commissioner shall provide the applicant with a list of all deficiencies and substantive inadequacies necessary for the notice and application to be qualitatively complete, within 60 days of that determination, in the case of subdivisions specified in Section 11000.1 or 11004.5, and within 20 days of that determination, in the case of other subdivisions.
(c)Upon receipt of all documents, materials, writings, and other information submitted in response to the list in paragraph (2) of subdivision

(b), the commissioner shall notify the applicant whether the notice and application are qualitatively complete within 30 days, in the case of subdivisions specified in Section 11000.1 or 11004.5, and within 20 days of receipt, in the case of other subdivisions. If the application and notice are not qualitatively complete, the notification shall include a list of any remaining deficiencies and substantive inadequacies. Upon receipt of any resubmittal of documents, materials, writings, and other information in response to a list of any remaining deficiencies and substantive inadequacies, the commissioner shall provide notification within the time limits specified in this subdivision.

(d)The commissioner shall issue a public report within 15 days, in the case of a subdivision specified in Section 11000.1 or 11004.5, or 10 days, in the case of other subdivisions, after the notice and application are determined to be qualitatively and substantially

complete, and submittal of recorded or filed instruments and evidence of financial arrangements required by the commissioner.

(e)Upon receipt of an application for approval of a declaration as provided in Section 11010.10, the commissioner shall notify the applicant of any deficiency or inadequacy in the declaration within 60 days of its receipt. The commissioner shall notify the applicant of any deficiency or inadequacy in a declaration that has been revised following the first notice of deficiency or inadequacy within 30 days of its receipt.
(f)The commissioner shall adopt regulations, in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, that define “substantially complete” and that list all the requirements necessary for a notice of intention and application to be considered “substantially complete.”
(g)The commissioner may adopt emergency regulations, in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, to increase, as set forth below, those time periods specified in subdivisions (b), (c), and (d), upon a showing that the number of notices of intention and applications for a subdivision public report filed with the department for any immediately preceding six-month period has increased by more than 15 percent over the monthly average number of notices and applications filed for the base period commencing July 1, 1983, and ending June 30, 1986:
(1)The time for issuing the notice provided in subdivision (b) shall increase to 15 days.
(2)The time for providing the listing required by paragraph (2) of subdivision (b) shall increase to 90 days, in

the case of subdivisions specified in Sections 11000.1 and 11004.5, and to 30 days, in the case of other subdivisions.

(3)The time period provided in subdivision (c) for responding to receipt of documents intended to correct deficiencies shall be 30 days without regard to the type of subdivision being processed.
(4)The time periods provided in subdivision (d) within which the commissioner is required to issue a public report in the case of subdivisions specified in Sections 11000.1 and 11004.5, shall increase to 30 days and in the case of other subdivisions shall increase to 15 days.

This section does not apply to filings made exclusively under Section 11010.1. Nothing in this section requires the commissioner to issue a public report where grounds for denial exist, provided that issuance of a public report shall not be denied for

inadequate information if the cause thereof is the commissioner’s failure to comply with this section.

Notwithstanding other provisions of this section, the commissioner shall not be required to issue a public report if grounds for denial exist under Section 11018 or 11018.5. However, the commissioner may not base the denial of a public report on the lack of adequate information if the commissioner has not acted within the time periods prescribed in this section.

Amended by Stats. 2021, Ch. 224, Sec. 2. (SB 813) Effective January 1, 2022.

(a)(1) This chapter shall not apply to the proposed sale or lease of those lots or other interests in a subdivision that are limited to industrial or commercial uses by law or by a declaration of covenants, conditions, and restrictions that has been recorded in the official records of the county or counties in which the subdivision is located.
(2)Paragraph (1) shall not affect any determination whether there are five or more lots, parcels, or other interests for the purposes of Section 11000, 11001, or 11004.5.
(b)For the purposes of this section, “commercial use” includes, but is not limited to, the operation of a business that provides facilities for the overnight stay of its customers, employees, or agents and the operation of an apartment complex that is not a community apartment project, as defined in Section 11004.

Added by Stats. 2000, Ch. 279, Sec. 4. Effective January 1, 2001.

(a)The provisions of this chapter shall not apply to the proposed sale or lease of five or more lots, parcels, or other interests in a subdivision or the sale of one or more lots or parcels in a subdivision where the lot or lots or parcel or parcels are intended to be further subdivided into five or more lots, parcels, or other subdivision interests as defined in Sections 11000, 11000.1, and 11004.5, to any person who acquires the lots, parcels, or other subdivision interests for the purpose of engaging in the business of constructing

residential, commercial, or industrial buildings, or for the purpose of resale or lease of the lots, parcels, or other subdivision interests to persons engaged in this business, provided that the purchase or lease agreement or a separate disclosure document includes a statement or provision that the purchaser or lessee is required to comply with the applicable provisions of this chapter prior to offering for sale or lease any lot, parcel, or other subdivision interest acquired pursuant to the exemption granted by this subdivision.

(b)The exemption provided by subdivision (a) does not apply to a proposed sale or lease of lots, parcels, or other subdivision interests that is done for the purpose of evading any other provision of this chapter.
(c)The provisions of subdivision (a) are intended to clarify the application of this chapter to the commercial sale or lease of residential

subdivision interests and should not be interpreted to impose requirements on transactions entered into prior to the date on which this section became operative.

Amended by Stats. 2013, Ch. 210, Sec. 1.5. (SB 184) Effective January 1, 2014.

The notice of intention specified in Section 11010 is not required for a proposed offering of subdivided land that satisfies all of the following criteria:

(a)The owner, subdivider, or agent has complied with Sections 11013.1, 11013.2, and 11013.4, if applicable.
(b)The subdivided land is not a subdivision as defined in Section 11000.1 or 11004.5.
(c)Each lot, parcel or unit of the subdivision is located entirely within the boundaries of a city.
(d)Each lot, parcel,

or unit of the subdivision will be sold or offered for sale improved with a completed residential structure and with all other improvements completed that are necessary to occupancy or with financial arrangements determined to be adequate by the city to ensure completion of the improvements. A lot, parcel, or unit shall satisfy the requirement that it be improved with a completed residential structure if it is improved with a completed residential structure at the time it is conveyed by the subdivider.

Amended by Stats. 1992, Ch. 864, Sec. 1. Effective January 1, 1993.

The filing of a second notice of intention to sell and a second report of the commissioner under this article shall not be required when all the following conditions have been met:

(a)where there has been a previous subdivision report and the lots are subsequently acquired through any foreclosure action, or by a deed in lieu of foreclosure, by a bank, life insurance company, industrial loan company, credit union, or savings and loan association licensed or operating under the provisions of a state or federal law if the acquired lots, either improved or

unimproved, will be sold in conformance with the previously issued subdivision public report; (b) the original public report is given to the first purchasers of the lots in the foreclosed subdivision; and (c) the commissioner is notified of the change of ownership within 30 days of the acquisition of the title to such property.

Amended by Stats. 1982, Ch. 148, Sec. 2. Effective April 5, 1982.

The provisions of this chapter shall not be applicable to subdivided land which is offered or proposed to be offered for sale, lease, or financing by a state agency, including the University of California, a local agency, or other public agency.

Added by Stats. 1981, Ch. 519, Sec. 1.

The notice of intention specified in Section 11010 shall not apply to nonbinding expressions of intent to purchase or lease which an owner, agent, or subdivider is required to obtain from the tenants of units which are proposed to be converted to a condominium, community apartment project, or stock cooperative project, by ordinance, or as a condition to the approval of a tentative or parcel map pursuant to Division 2 (commencing with Section 66410) of Title 7 of the Government Code.

Amended by Stats. 2022, Ch. 452, Sec. 12. (SB 1498) Effective January 1, 2023.

(a)The requirement that a notice of intention be filed pursuant to Section 11010 is not applicable to the purchase of a mobilehome park by a nonprofit corporation if all of the following occur:
(1)A majority of the shareholders or members of the nonprofit corporation constitute a majority of the homeowners of the mobilehome park, and a majority of the members of the board of directors of the nonprofit corporation are homeowners of the mobilehome park.
(2)All members of the corporation are residents of the mobilehome park. Members of the nonprofit corporation may enter into leases with the corporation that are greater than five years in length. “Homeowners” or “residents” of the mobilehome park

shall include a bona fide secured party who has, pursuant to a security interest in a membership, taken title to the membership by means of foreclosure, repossession, or voluntary repossession, and who is actively attempting to resell the membership to a prospective resident or homeowner of the mobilehome park, in accordance with subdivision (f) of Section 7312 of the Corporations Code.

(3)A permit to issue securities under Section 25113 of the Corporations Code is obtained from the Department of Financial Protection and Innovation, Division of Corporations. In the case of a nonissuer transaction (as defined by Section 25011 of the Corporations Code) involving the offer to resell or the resale of memberships by a bona fide secured party as described in paragraph (2) of this section, a permit is not required where the transaction is exempt from the qualification requirements of Section 25130 of the Corporations Code pursuant to subdivision (e)

of Section 25104 of the Corporations Code. The exemption from qualification pursuant to subdivision (e) of Section 25104 of the Corporations Code available to a bona fide secured party does not eliminate the requirement of this section that the nonprofit corporation shall either file a notice of intention pursuant to Section 11010 or obtain a permit pursuant to Section 25113 of the Corporations Code.

(4)All funds of tenants for the purchase of the mobilehome park are deposited in escrow until the document transferring title of the mobilehome park to the nonprofit corporation is recorded. The escrow also shall include funds of homeowners that shall be available to the homeowners association nonprofit corporation for payment of any and all costs reasonably associated with the processing and conversion of the mobilehome park into condominium interests. Payment of these costs may be made from the funds deposited in escrow prior to the close of

escrow upon the direction of the homeowners association nonprofit corporation.

(b)The funds described by paragraph (4) of subdivision (a), or any other funds subsequently received from tenants for purposes other than the purchase of a separate subdivided interest in any portion of the mobilehome park, are not subject to the requirements of Section 11013.1, 11013.2, or 11013.4.

Amended by Stats. 2022, Ch. 452, Sec. 13. (SB 1498) Effective January 1, 2023.

(a)The requirement that a notice of intention be filed pursuant to Section 11010 is not applicable to the purchase of a floating home marina by a nonprofit corporation if all of the following occur:
(1)A majority of the shareholders or members of the nonprofit corporation constitute a majority of the homeowners of the floating home marina, and a majority of the members of the board of directors of the nonprofit corporation are homeowners of the floating home marina.
(2)All members of the corporation are residents of the floating home marina. Members of the nonprofit corporation may enter into leases with the corporation that are greater than five years in length. “Homeowners” or “residents” of

the floating home marina shall include a bona fide secured party who has, pursuant to a security interest in a membership, taken title to the membership by means of foreclosure, repossession, or voluntary repossession, and who is actively attempting to resell the membership to a prospective resident or homeowner of the floating home marina, in accordance with subdivision (f) of Section 7312 of the Corporations Code.

(3)A permit to issue securities under Section 25113 of the Corporations Code is obtained from the Department of Financial Protection and Innovation, Division of Corporations. In the case of a nonissuer transaction (as defined by Section 25011 of the Corporations Code) involving the offer to resell or the resale of memberships by a bona fide secured party as described in paragraph (2) of this section, a permit is not required where the transaction is exempt from the qualification requirements of Section 25130 of the Corporations

Code pursuant to subdivision (e) of Section 25104 of the Corporations Code. The exemption from qualification pursuant to subdivision (e) of Section 25104 of the Corporations Code available to a bona fide secured party does not eliminate the requirement of this section that the nonprofit corporation shall either file a notice of intention pursuant to Section 11010 or obtain a permit pursuant to Section 25113 of the Corporations Code.

(4)All funds of tenants for the purchase of the floating home marina are deposited in escrow until the document transferring title of the floating home marina to the nonprofit corporation is recorded. The escrow also shall include funds of homeowners that shall be available to the homeowners association nonprofit corporation for payment of any and all costs reasonably associated with the processing and conversion of the floating home marina into condominium interests. Payment of these costs may be made from the

funds deposited in escrow prior to the close of escrow upon the direction of the homeowners association nonprofit corporation.

(b)The funds described by paragraph (4) of subdivision (a), or any other funds subsequently received from tenants for purposes other than the purchase of a separate subdivided interest in any portion of the floating home marina, are not subject to the requirements of Section 11013.1, 11013.2, or 11013.4.

Amended by Stats. 2013, Ch. 432, Sec. 2. (AB 253) Effective January 1, 2014.

(a)Notwithstanding any other provision of law, the subdivider of a mobilehome park or floating home marina that is proposed to be converted to resident ownership, prior to filing a notice of intention pursuant to Section 11010, shall disclose to homeowners and residents of the park or marina, by written notice, the tentative price of the subdivided interest proposed to be sold or leased.
(b)The disclosure notice required by subdivision (a) shall include a statement that the tentative price is not binding, could change between the time of disclosure and the time of governmental approval to commence the actual sale or lease of the

subdivided interests in the park or marina, as the result of conditions imposed by the state or local government for approval of the park or marina conversion, increased financing costs, or other factors and, in the absence of bad faith, shall not give rise to a claim for liability against the provider of this information.

(c)The disclosure notice required by subdivision (a) shall not be construed to authorize the subdivider of a mobilehome park or floating home marina that is proposed to be converted to resident ownership to offer to sell or lease, sell or lease, or accept money for the sale or lease of, subdivided interests in the park or marina, or to engage in any other activities that are otherwise prohibited, with regard to subdividing the park or marina into ownership interests, prior to the issuance of a public report pursuant to this chapter.

Amended by Stats. 2024, Ch. 41, Sec. 15. (SB 164) Effective June 29, 2024. Conditionally inoperative as prescribed in the last paragraph.

(a)The commissioner may by regulation prescribe filing fees in connection with applications to the Department of Real Estate pursuant to this chapter and if the commissioner determines that lower fees are sufficient to offset the costs and expenses incurred in the administration of this chapter, may prescribe filing fees by regulation that are lower than the fees specified in subdivision (b). 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 public report to be issued under authority of this chapter shall be set at the amount prescribed below and shall not exceed the maximum specified for each subdivision or phase of a subdivision in which interests are to be offered for sale or lease:
(1)A notice of intention without a completed questionnaire: Three hundred dollars ($300), not to exceed three hundred ninety dollars ($390).
(2)An original public report for subdivision interests described in Section 11004.5: Three thousand dollars ($3,000), not to exceed three thousand nine hundred dollars ($3,900), plus fifteen dollars ($15), not to exceed twenty dollars ($20), for each subdivision interest to be offered.
(3)An original public report for subdivision interests other than those described in Section 11004.5: One thousand five hundred dollars ($1,500), not to exceed one thousand nine hundred fifty dollars ($1,950), plus fifteen dollars ($15), not to exceed twenty dollars ($20), for each subdivision interest to be offered.
(4)A conditional public report for subdivision interests described in Section 11004.5: One thousand dollars ($1,000), not to exceed one thousand three hundred dollars ($1,300).
(5)A conditional public report for subdivision interests other than those described in Section 11004.5: One thousand dollars ($1,000), not to exceed one thousand three hundred dollars ($1,300).
(6)A preliminary public report for subdivision interests described in

Section 11004.5: Five hundred dollars ($500), not to exceed six hundred fifty dollars ($650).

(7)A preliminary public report for subdivision interests other than those described in Section 11004.5: Five hundred dollars ($500), not to exceed six hundred fifty dollars ($650).
(8)A renewal of an original public report for subdivision interests described in Section 11004.5: One thousand five hundred dollars ($1,500), not to exceed one thousand nine hundred fifty dollars ($1,950). A renewal of a preliminary public report for subdivision interests described in Section 11004.5: Six hundred dollars ($600), not to exceed seven hundred eighty dollars ($780). A renewal of a conditional public report for subdivision interests described in Section 11004.5: One thousand dollars ($1,000), not to exceed one thousand three hundred dollars ($1,300).
(9)A renewal of an original or conditional public report for subdivision interests other than those described in Section 11004.5: One thousand dollars ($1,000), not to exceed one thousand three hundred dollars ($1,300). A renewal of a preliminary public report for subdivision interests other than those described in Section 11004.5: Six hundred dollars ($600), not to exceed seven hundred eighty dollars ($780).
(10)An amended original public report for subdivision interests described in Section 11004.5: One thousand five hundred dollars ($1,500), not to exceed one thousand nine hundred fifty dollars ($1,950), plus fifteen dollars ($15), not to exceed twenty dollars ($20), for each subdivision interest to be offered under the amended original public report for which a fee has not previously been paid.
(11)An amended

original public report to offer subdivision interests other than those described in Section 11004.5: One thousand dollars ($1,000), not to exceed one thousand three hundred dollars ($1,300), plus fifteen dollars ($15), not to exceed twenty dollars ($20), for each subdivision interest to be offered under the amended original public report for which a fee has not previously been paid.

(12)An amended preliminary public report for subdivision interests described in Section 11004.5 and for subdivision interests other than those described in Section 11004.5: Five hundred dollars ($500), not to exceed six hundred fifty dollars ($650), plus fifteen dollars ($15), not to exceed twenty dollars ($20), for each subdivision interest to be offered under the amended preliminary public report for which a fee has not previously been paid.
(13)An amended conditional public report for subdivision

interests described in Section 11004.5 and for subdivision interests other than those described in Section 11004.5: One thousand dollars ($1,000), not to exceed one thousand three hundred dollars ($1,300), plus fifteen dollars ($15), not to exceed twenty dollars ($20), for each subdivision interest to be offered under the amended conditional public report for which a fee has not previously been paid.

(c)The filing fee to review a declaration as described in Section 11010.10 shall be five hundred dollars ($500), not to exceed six hundred fifty dollars ($650).
(d)The actual subdivision fees established by regulation under authority of this section and Section 10249.3 shall not exceed the amount reasonably required by the department to administer this part and Article 8 (commencing with Section 10249) of Chapter 3 of Part 1.
(e)All fees collected by the department under authority of this chapter 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 this chapter shall be deemed earned upon receipt. No part of any fee is refundable unless the commissioner determines that it was paid as the result of a mistake or inadvertence.

This section shall remain in effect unless it is superseded pursuant to Section 10226 or subdivision (a) of Section 10226.5, whichever is applicable.

Amended by Stats. 2021, Ch. 431, Sec. 33. (SB 800) Effective January 1, 2022.

It is unlawful for the owner, their agent, or subdivider, of the project, after it is submitted to the Department of Real Estate, to materially change the setup of that offering without first notifying the department in writing of the intended change. This section only applies to those changes of which the owner, their agent, or subdivider has knowledge or constructive knowledge.

Amended by Stats. 1955, Ch. 1863.

For the purposes of this part, a blanket encumbrance shall be considered to mean a trust deed or mortgage or any other lien or encumbrance, mechanics’ lien or otherwise, securing or evidencing the payment of money and affecting land to be subdivided or affecting more than one lot or parcel of subdivided land, or an agreement affecting more than one such lot or parcel by which the owner or subdivider holds said subdivision under an option, contract to sell, or trust agreement.

Amended by Stats. 2014, Ch. 661, Sec. 2. (AB 569) Effective January 1, 2015.

It shall be unlawful, except as provided in Section 11013.2 or 11013.6, for the owner, subdivider, or agent to sell or lease lots or parcels within a subdivision that is subject to a blanket encumbrance unless there exists in the blanket encumbrance or other supplementary agreement a provision, hereinafter referred to as a release clause, which by its terms shall unconditionally provide that the purchaser or lessee of a lot or parcel can obtain legal title or other interest contracted for, free and clear of the blanket encumbrance, upon compliance with the terms and conditions of the purchase or lease.

Amended by Stats. 1980, Ch. 1335, Sec. 3.

Should there not exist in the blanket encumbrance or supplementary agreement a release clause as set forth in Section 11013.1, then it shall be unlawful for the owner, subdivider, or agent to sell or lease lots or parcels within such subdivision unless one of the following conditions is complied with:

(a)The entire sum of money paid or advanced by the purchaser or lessee of any such lot or parcel, or such portion thereof as the commissioner shall determine is sufficient to protect the interest of the purchaser or lessee, shall be deposited into an escrow depository acceptable to the

commissioner until either (1) a proper release is obtained from such blanket encumbrance; or (2) either the owner, subdivider, or agent or the purchaser or lessee may default under their contract of sale or lease and there is a determination as to the disposition of such moneys; or (3) the owner, subdivider, or agent orders the return of such moneys to such purchaser or lessee.

(b)The title to the subdivision is to be held in trust under an agreement of trust acceptable to the commissioner until a proper release from such blanket encumbrance is obtained.
(c)A bond to the State of California is furnished to the commissioner for the benefit and protection of purchasers or lessees of such lots or parcels, in such amount and subject to such terms as may be approved by the commissioner, which shall provide for the

return of the moneys paid or advanced by any purchaser or lessee, for or on account of the purchase or lease of any such lot or parcel if a proper release from such blanket encumbrance is not obtained; provided, however, that if it should be determined that such purchaser or lessee, by reason of default or otherwise, is not entitled to the return of such moneys, or any portion thereof, then such bond shall be exonerated to the extent of the amount of such moneys to which such purchaser or lessee is not entitled.

(d)There is conformance to such other alternative requirement or method which the commissioner may deem acceptable to carry into effect the intent and provisions of this part.

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