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FAQs: New Residential Housing

Q. - Are there any State government protections for the buyers of new homes?

A. - Business and Professions Code Section 11018.2 Graphic: Denotes a PDF document provides that no person shall sell or lease, or offer for sale or lease in this state any lots or parcels in a residential subdivision without first obtaining a Subdivision Public Report from the Department of Real Estate. The Public Report is a disclosure document which must be provided by the subdivider or the selling agent to prospective purchasers before a sales contract is signed.

Q. - What statutes govern the marketing in California of real property located outside the United States?

A. - If the project is not a timeshare project and located outside the US or if the project is a timeshare project and has no component sites or accommodations in the United States, there are no requirements except as contained in Business and Professions Code Section 10249.9 Graphic: Denotes a PDF document. This section requires that any offering for sale or lease in California of lots, parcels or interests in a subdivision located outside the United States shall include a specified disclaimer within the printed material, literature, advertising or invitation advising that the project has not been qualified by the state.

Q. - What statutes govern the marketing in California of real property located outside of California, but still within the United States?

A. - Business and Professions Code Section 10249 Graphic: Denotes a PDF document requires that a person acting as a principal or agent who intends, in this state, to sell or lease or offer for sale or lease lots, parcels or interests in a subdivision situated outside of this state but within the United States, shall, prior to a sale, lease or offer, register the subdivision with the Commissioner. The registration process requires completion of an application, $100 fee, consent to service, and evidence that the subdivision is in compliance with all applicable requirements of the state wherein it is located. Further, Section 10249.8 Graphic: Denotes a PDF document requires that any registered offering must include within all California advertising materials and contracts presented to California residents, certain information as identified in the statute.