Prior to a real estate commissioner granting a public report, a landowner must meet the minimum requirements of the Subdivided Lands Law. The subdivision public statement is a disclosure that permits buying, selling or renting of units. Before a landowner can sell the property, the public report must be created to allow prospective buyers the ability to review the specifics of the property.
The minimum requirements include the need to fill out and submit an application indicating the specifics of the property. The real estate commissioner will then review the application and approve the request for a public report assuming everything is filled out accurately. In the event the real estate commissioner has created the public report and changes have been made to the property during that period, the landowner must inform the real estate commissioner of the changes. Changes include adjustments to the land, deed restrictions, drilling, and other potential alterations of the land.
Generally, the most difficult and time consuming of all the types of public records are common interest subdivisions. This is because common interest subdivisions affect many people and in turn the review process is typically very lengthy.
Common Interest Subdivision Landowner Disclosures
Process for payments, taxes and necessary assessments
Expenses related to the closing of the transaction
Environmental Issues (mold, oil, gas, mineral, etc.)
Conditions of Property
Restrictions of property
Easements, rights of way, and information pertaining to rights of ownership
A sale of subdivided property without a public report cannot take place, which means the real estate commissioner must issue a public report prior to the sale of land. This protects consumers from fraud and assists them in making better real estate decisions.
The Real Estate Commissioner and the Department of Real Estate have instituted a set of guidelines regarding the proper advertisement and promotion of a subdivision. Any advertising deemed misleading or false is prohibited and can potentially be brought forward with a legal suit by the purchaser of the land.
Public reports on subdivided land are usually valid for five years. If the individual divided parcels of land have not been sold within five years of the original report, the report must be renewed within that period.
Types of Public Reports
Final Public Report
Amended Public Report
Renewal of Public Report
Conditional Public Report
Preliminary Public Report
Overall Preliminary Public Report
Interim Public Report
What Subdivisions Don’t Need A Public Report?
There are a few types of subdivisions that are not required to provide a public report due to certain details.
The following don’t require a public report:
Public agency created subdivisions
Subdivisions that are creating four lots or fewer
Subdivisions zoned for either commercial or industrial use
Subdivisions in an incorporated city
How Does a Public Report become Invalid?
Certain modifications, known as “Material Changes,” that are done to a subdivision can void a public report. Once a public report has been nullified, an Amendment application will needs to be filed with the Bureau of Real Estate. The changes that occur are a change of and to ownership, Mineral Rights, escrow depository, and restrictions among other things.