The Subdivided Lands Act and the Subdivision Map Act

Two California laws, two jobs

California's Subdivision Map Act governs the division and design of land through city or county review. The Subdivided Lands Act, commonly called the Subdivided Lands Law, protects purchasers through Department of Real Estate oversight of subdivision offerings and disclosure. A project may need both. Local map approval does not replace a DRE public report, and a public report does not replace local subdivision approval.

Map review and lot counts

Under the Map Act, local authorities review matters such as lot configuration, access, improvements, and consistency with applicable planning requirements. Generally, divisions creating five or more parcels use a tentative map followed by a final map; divisions creating four or fewer use a parcel map. Statutory exceptions and exemptions can change the applicable requirements, so determine coverage under each law separately. A four-lot division can require local review even though it falls below the Subdivided Lands Law's ordinary five-lot threshold.

Business and Professions Code section 11000 generally covers California land divided or proposed to be divided into five or more lots for sale, lease, or financing, whether immediate or future. Improved land can qualify just as unimproved land can.

The DRE disclosure track

For a covered California offering, the subdivider applies to the DRE for a public report with a notice of intention and completed questionnaire. Section 11010 calls for information including title and encumbrances, offering terms, utilities, intended uses, and use or occupancy restrictions. The report helps buyers evaluate the offering; it is not a guarantee of investment value.

A preliminary public report permits advertising and nonbinding reservations, rather than binding sales. A conditional public report permits transactions subject to statutory safeguards while specified requirements remain outstanding. Under section 11018.12, delivery of the contracted title or interest must wait for the final public report. Purchase money must be protected, and provision must be made for its return in the circumstances the section specifies. A final public report supports the covered offering once the required review is complete.

Under section 11018.1, the owner, subdivider, or agent must give the prospective purchaser the public report before a binding sale or lease agreement and obtain a receipt. Delivery at closing is too late. A member of the public may also request a copy orally or in writing.

Think of two checkpoints: the local agency reviews the division of land; the DRE reviews the offering and informs prospective purchasers. Identify which checkpoint a question concerns before selecting an answer.