California B & P Section 10249 – Registration of Out of State Subdivisions

California B & P Section 10249 – Registration of Out of State Subdivisions

We have recently been asked by developers and their counsel located outside of California about registration and sales regulations of subdivision interests located in other states being sold in California. California requires a registration with what is now the California Bureau of Real Estate (“Cal BRE”) for the sale or lease lots, parcels, or interests in a subdivision, as defined in Section 10249.1, situated outside of this state but within the United States. (Business & Professions Code section 10249.) The advertising of such subdivision interest and the purchase agreements for sale of such interests to California residents within the State must contain certain mandatory provisions. (Business & Professions Code section 10249.8)

The term “Subdivision,” as used in Section 10249, includes all of the following: (a) Improved or unimproved land or lands divided or proposed to be divided for the purpose of sale or lease, whether immediate or future, into five or more lots or parcels. (b) Improved or unimproved land or lands in which, for the purpose of sale or lease, whether immediate or future, five or more undivided interests are created or proposed to be created. (c) “Subdivision,” as defined in Section 11004.5, excluding “subdivision” as defined in subdivision (e) of that section. (Business & Professions Code section 10249.1)

The term subdivision under subsection (c) includes condominiums and other common interest development of five or more units or separate interests. (Business & Professions Code section 1104.5)

There is no requirement for completion of the improvements within any specific time period.

The fee for filing is minimal, being only $100.

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