Public Report requirements vary from state to state. Obtaining a public report or "subdivision public report" can be a complicated and time-consuming process. It is this reason that we are pleased to offer the services of our experienced D.R.E. coordinators to assist with this process.
Our D.R.E. coordinator, assigned to your development, will work closely with your project engineer, project attorney, budget preparer and our title department staff as the Single Responsible Party for purposes of facilitating and obtaining your Public Report from the State Department of Real Estate.
What is a Public Report?
The Public Report is a disclosure statement for the public which permits the sale or lease of lots, parcels or units within a subdivision. Just as corporations must obtain approval to issue and sell stock certificates, a developer must obtain approval to sell or lease *five or more lots, parcels or units within a subdivision.
What is the Purpose of the Subdivision Public Report?
The purpose of the Public Report is to inform the consumer about a specific property/project, thereby offering some protection from misrepresentation, deceit and fraud. During the processing of the Public Report, the California Department of Real Estate, among other things, reviews the developer’s project management budget, deposit money handling, advertisements and the guarantees made to complete all promised improvements.
*What Developments Require a Public Report?
This requirement may vary from state to state. As an example, in California, a Public Report is required for all residential subdivsion developments having five or more units or lots.
Is There More Than One Type of Subdivision Public Report?
The Subdivision Public Report (also called a "White" Report or Final Subdivision Public Report) authorizes a developer to sell or lease lots, parcels or units within a subdivision. On some occasions a developer may apply for a Preliminary Public Report (also known as a "Pink" Report) which will allow a developer to advertise and take reservation deposit monies for the sale or lease of lots, parcels or units within subdivision. Reservation deposits taken by a developer under a Preliminary Subdivision Public Report are fully refundable.