Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) The
amount of the money paid or advanced by a prospective buyer or lessee toward the
purchase or lease of a subdivision interest (Purchase Money) that must be deposited
and retained in an escrow depository or trust account pursuant to Section 11013.2(a)
or 11013.4(a) of the Code shall ordinarily be the entire amount of the Purchase
Money less disbursements made to third parties for services enumerated in
subdivision (b) of Regulation 2791.
(b)
For purposes of compliance with Section 11013.2(a) of the Code:
(1) A proper release has not ben obtained from a
deed of trust encumbering subdivision lots or parcels unless an instrument has been
duly recorded unconditionally reconveying and releasing the lot or lots being sold
or leased from the lien or charge of such deed of trust.
(2) As an alternative to obtaining a proper
release from the lien or charge of such deed of trust, it shall be deemed acceptable
by the commissioner, pursuant to the provisions of Section 11013.2(d) of the Code,
if:
(A) the holder of the deed of trust has duly
executed an agreement or demand ("release agreement") wherein the holder has agreed,
notwithstanding any provision to the contrary in the deed of trust, to promptly
perform any act reasonably necessary to record an instrument unconditionally
reconveying and releasing the subdivision lots or parcels being sold from the lien
or charge of the deed of trust upon payment to the holder of an amount or amounts
specified in the release agreement as the release price for the affected subdivision
lots or parcels, and the holder has further agreed that specific performance of the
terms and provisions of the release agreement shall be compelled in favor of the
purchaser or lessee of the lot or lots;
(B) the release agreement has been deposited with
the escrow holder for the transaction(s);
(C) the subdivider has notified each purchaser or
lessee that the release agreement is available upon request from the escrow holder;
and
(D) each purchaser or lessee has
been provided a policy of title insurance insuring the purchaser or lessee against
loss by reason of the deed of trust.
1. New section
filed 12-3-80; effective thirtieth day thereafter (Register 80, No. 49). For history
of former section, see Registers 63, No. 14, and 62, No. 7.
2. Amendment
filed 1-21-83; effective thirtieth day thereafter (Register 83, No.
4).
3. Amendment filed 11-13-96; operative 11-13-96 pursuant to
Government Code section
11343.4(d)
(Register 96, No. 46).
Note: Authority cited: Section
11001,
Business and Professions Code. Reference: Sections
11013.1
and
11013.4,
Business and Professions Code.
