The owner of a subdivision which is the subject of an outstanding public report shall immediately report in writing to the Real Estate Commissioner relevant details concerning any material change in the subdivision itself or in the program for marketing the subdivision interests. A material change in the subdivision or in the offering shall include, but shall not be limited to the following:
(a) The sale, conveyance, including a transfer of title in trust, or the granting of an option to another to acquire, five or more subdivision interests in a subdivision other than a time-share project or twelve or more time-share estates or time-share uses in a time-share project.
(b) Change in the name or organization of the subdividing entity such as incorporation, dissolution of corporation or change in corporate or fictitious business name.
(c) Change in purchase money handling procedures under Section 11013.2 or 11013.4 of the Code including but not limited to a change in name or location of escrow or trust account depository or the creation of a blanket lien or encumbrance affecting a lot, parcel or unit of subdivided land being offered for sale.
(d) Change in methods of marketing or conveyance of subdivision interests, including but not limited to the following:
(1) Use of real property sales contracts, lease-option agreements or similar marketing instruments.
(2) Special sales inducements involving a financial commitment to purchasers by or on behalf of the subdivider such as buy-back agreements, special interest rates or a short-term basis and prizes, gifts or premiums.
(e) Inability of the subdivider to fulfill agreements and assurances to purchasers of subdivision interests given by the subdivider to the commissioner in the application for a public report.
(f) Creation or discovery of latent hazards affecting the subdivisions such as adverse geologic conditions not apparent at the time of issuance of the current public report for the subdivision.
(g) Addition of common areas or common facilities for the use and enjoyment of owners in the subdivision which were not contemplated at the time of issuance of the current public report for the subdivision.
(h) A relocation of easements affecting unsold subdivision interests.
(i) The creation of a district, or the annexation of the subdivision into a district, having the power to tax or levy assessments against real property interests within the subdivision.
(j) An increase of 20% or more or a decrease of 10% or more in the regular assessment charged by an Association against owners in a common-interest subdivision over the amount of the regular assessment reflected in the current public report for the subdivision.
(k) Delinquencies in the payment of regular assessments by owners within a common-interest subdivision resulting in the receipt by the Association of income which is more than 10% less than scheduled income from said assessments.
(l) A proposed change in the use for which the subdivision is offered as, for example, from residential to investment or a proposed change from an offering of the sole and exclusive use of a unit in a common-interest subdivision to a program involving the sharing of ownership or use with others as, for example, a time sharing program.
(m) Changes in the means for furnishing potable water, sewage disposal and other public services to lots, parcels or units within the subdivision.
(n) Any change in the configuration of the subdivision interest being offered for sale from the configuration according to the subdivision map or parcel map upon which the current public report for the subdivision was based.
(o) An amendment to the CC&Rs or other governing instruments for the subdivision or for an association of owners of subdivision interests.
(p) Failure by the subdivider as an owner of interests in a common interest subdivision to pay regular assessments where:
(1) Assessments are payable on a monthly basis and the subdivider has failed to pay three or more months of such assessments.
(2) Assessments are not payable on a monthly basis and the subdivider has failed to pay such assessments within three months after such assessments become due and payable.
(q) A program which does not comply with Section 2792.10 in which the subdivider undertakes to subsidize the cost of operating and maintaining common areas and of providing services in lieu of payment of regular assessments by the subdivider.
(r) The affiliation by a single-site time-share project as defined in Section 11003.5 of the Code with: 1) other time-share projects or accomodations under a contractual or membership program through a mandatory reservation system or 2) a mandatory reservation system.
Credits
Note: Authority cited: Section 11001, Business and Professions Code. Reference: Sections 11010, 11012, 11018 and 11018.5, Business and Professions Code.
History
1. Repealer and new section filed 2-10-77; effective thirtieth day thereafter (Register 77, No. 7).
2. Amendment of subsection (c) filed 4-24-78; effective thirtieth day thereafter (Register 78, No. 17).
3. Amendment of subsection (j) filed 1-21-83; effective thirtieth day thereafter (Register 83, No. 4).
4. Amendment of subsection (l) filed 7-1-83; effective thirtieth day thereafter (Register 83, No. 30).
