California Real Estate Salesperson Exam Practice – Question 54

Explanations

When a subdivider from outside California (like Hawaii) wants to offer property for sale within California, they must comply with California Real Estate Law. This overarching law governs real estate activities and consumer protection within the state. Specifically, the Subdivided Lands Law, which is a part of California Real Estate Law, is designed to prevent misrepresentation and fraudulent acts in the sale or lease of subdivided property. It mandates that developers with subdivided lots for sale outside of California must first register with the California Department of Real Estate (DRE) before marketing these lots in California. They are also required to include a statement in their advertisements placed in California, disclosing that the California DRE has not inspected or approved the project for sale. While federal laws like the Interstate Land Sales Full-Disclosure Act may also apply for interstate sales, the question asks what the subdivider would be most concerned with for offering property for sale in California, making the state’s own real estate and sales laws paramount. The California Subdivision Map Act primarily guides the physical division of land within California, not the regulation of sales of out-of-state property.

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