California Code of Regulations
Title 10 - Investment
Chapter 6 - Real Estate Commissioner
Article 12 - Subdivisions
Section 2795 - Preliminary Public Report

Universal Citation: 10 CA Code of Regs 2795

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) If a subdivider makes application and pays the appropriate fee, a preliminary subdivision public report may be issued by the Bureau in advance of satisfaction of all requirements for issuance of a final public report when in the judgment of the Commissioner it is reasonable to expect that all of the requirements for the issuance of a final public report will be satisfied in due course.

(b) A subdivider and persons acting on his behalf may solicit and accept reservations to purchase or lease subdivision interests under authority of a preliminary public report if there is compliance with each of the following:

(1) The person making the reservation (potential buyer) has been given a copy of the preliminary public report and has executed a receipt for a copy before any money or other thing of value has been accepted by or on behalf of the subdivider in connection with the reservation.

(2) A copy of the reservation instrument signed by the potential buyer and by or on behalf of the subdivider, along with any deposit taken from the potential buyer, is placed into a neutral escrow depository acceptable to the Commissioner.

(3) The reservation instrument used is a form previously approved by the Bureau with at least the following provisions:
(A) The right of either subdivider or potential buyer to unilaterally cancel the reservation at any time.

(B) The payment to the potential buyer of his total deposit on cancellation of the reservation by either party.

(C) The placing of the deposit into an interest bearing account for the benefit of the prospective buyer at the prospective buyer's request and upon the prospective buyer's agreement to pay any charges of the escrow depository for this service.

(c) The initial term of a preliminary public report shall not exceed one year from the date of issuance. The authority to use a preliminary public report shall automatically terminate with respect to those subdivision interests covered by a final public report which is issued before the scheduled termination date of the preliminary report.

1. Amendment filed 12-10-71; effective thirtieth day thereafter (Register 71, No. 50). For prior history see Register 66, No. 25.
2. Repealer and new section filed 7-9-80; effective thirtieth day thereafter (Register 80, No. 28).
3. Amendment of subsection (b)(3) filed 12-3-80; effective thirtieth day thereafter (Register 80, No. 49).
4. Change without regulatory effect amending subsections (a) and (b)(3) filed 6-30-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 27).

Note: Authority cited: Section 11001, Business and Professions Code. Reference: Section 11018.1, Business and Professions Code.

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