Subdivision & Land Use Law

Question 1

What law is designed to protect buyers from fraud, misrepresentation, or deceit in the marketing of subdivided lots and parcels?

1. Interstate Land Sales Full Disclosure Act
2. CC&Rs
3. Subdivision Map Act
4. Subdivided Lands Law

Answer 1

4. Subdivided Lands Law

• The Subdivided Lands Law is designed to protect buyers from fraud, misrepresentation, or deceit in the marketing of subdivided lots, parcels, units, and undivided interests in new subdivisions.

Interstate Land Sales Full Disclosure Act
• Regulates land sales when there are two or more states involved.
• Subdividers must conform to this law if they have 25 or more lots in one state and want to sell them in another state.

Question 2

Who determines lots or parcels meet a certain criteria before they are offered for sale.

1. Department of Real Estate
2. Real Estate Commissioner
3. Local Zoning
4. Police Power

Answer 2

2. Real Estate Commissioner

• Before any subdivision can be offered for sale in California, the Real Estate Commissioner must determine that the offering meets certain standards and issue a public report.

Question 3

The Public Report discloses all the important facts about the property and is:

1. good until the last parcel is sold
2. available for anyone who purchases a parcel
3. does not include the marketing of the parcels
4. valid for 5 years

Answer 3

4. valid for 5 years

• The public report is valid for 5 years with any material changes in the development reported to the Commissioner, who then can issue an amendment to the original report.
• Before a subdivider can actually sell each lot in the project, he or she must give a copy of the Commissioner’s final public report to the prospective buyer.
• The subdivider must post a notice in the sales office that says that a copy of the public report must be given to any member of the public who asks for it.
• The public report is a document disclosing all important facts about the property, its marketing and the financing of the subdivision.
• These disclosures may alert a potential buyer to any negative aspects in the subdivision (e.g., natural or environmental hazards, unusual costs, restrictions, easements, or financing arrangements).
• must show that the subdivider (owner) can complete and maintain all improvements.
• By submitting a minimum application filing package, the developer can get a preliminary public report, which allows taking reservations for the project
• Cannot accept any non-refundable money or entering into any binding contracts until receiving the final public report from the Commissioner.

Question 4

Private restrictions does not include:

1. CC&R’s
2. Covenant
3. Condition subsequent
4. Zoning

Answer 4

4. Zoning - a public restriction

• Restrictions are commonly known as CC&Rs or covenants, conditions, and restrictions.
• A covenant is a promise to do or not do certain things.
• The penalty for a breach of a covenant is usually money damages or an injunction.
• An injunction is a court order forcing a person to do or not do an act, such as violating a private restriction.
• Condition is much the same as a covenant, a promise to do or not do something
• Usually a limitation on the use of the property
• Condition subsequent is a restriction, placed in a deed at the
time of conveyance, upon future use of the property.
• Condition precedent requires that a certain event, or
condition, occur before title can pass to the new owner.
• It is a condition that must be taken care of preceding the
transaction.

Question 5

Public Restrictions include:

1. Zoning
2. Variance
3. Non-conforming use
4. Both 1 and 2 above

Answer 5

4. Both 1 and 2 above - Both Zoning and Variances are public

• Zoning regulates land use with regard to lot sizes, types of structures permitted, building heights, setbacks, and density.
• Zoning departments use zoning symbols to show types of property use.
  
  • For example, R-3 is multiple family, R-1 is single family, M-1 is light industrial, and C-1 stands for commercial property.

• Zoning changes can create non-conforming use. • Example, farmland rezoned for residential use. All new structures must conform to the new zoning.

• A variance is an allowable difference to the zoning laws for a structure or land use.
• If a person wants to use property in a way that is currently prohibited by zoning laws, he or she may petition to rezone the entire area or petition for a variance for the single piece of land.

Question 6

• Placing a permanent improvement, such as a fence, wall, driveway or roof, so that it extends over the lot line into adjacent property owned by another, is known as a(n)?

1. Unauthorized intrusion
2. Variance
3. Non-conforming use
4. Encroachment

Answer 6

4. Encroachment

• This unauthorized intrusion on the adjoining land can limit its use and reduce it in size and value.
• An owner has three years in which to sue the neighbor to have the unauthorized encroachment removed.