Question

A real estate subdivider who resides in Hawaii is required to comply with various laws if he wants to offer his property located in Hawaii for sale in California. The law that he would be most concerned with would be the:

Selections

A. California Subdivision Map Act

B. State Housing Act

C. California Real Estate Law

D. All of the preceding

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Answer: C

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5 Keys Summary

• The required compliance falls under the California Real Estate Law, specifically the Subdivided Lands Law (Part 2 of Division 4 of the Business and Professions Code).

• The Subdivided Lands Law is administered by the DRE to regulate the sale or lease of subdivided property and protect purchasers from fraud.

• This law applies to the sale or leasing of new subdivided land to California residents regardless of the location of the property, meaning a Hawaii subdivider must comply if marketing to Californians.

• The out-of-state subdivider must register the project with the Department of Real Estate (DRE) and include specific disclaimers in advertisements and sales contracts used in California.

• The California Subdivision Map Act is focused on the physical design and local approval of land division within California, and the State Housing Law dictates minimum construction standards, making the Real Estate Law the most critical concern for interstate sales regulation.

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