EstatePass
Real Estate MathEASYFREE

A subdivider needs to give a copy of the Real Estate Commissioner’s public report to:

3:04
0 views

Question & Answer

Review the question and all answer choices

A

anyone who is likely purchase one or more lots.

While the spirit of consumer protection might suggest giving the report to anyone likely to purchase, California law does not require delivery to every person who might be a potential buyer — the legal obligation is specifically triggered when a purchase contract is being signed, making 'anyone likely to purchase' both over-broad and legally inaccurate.

B

anyone upon request.

Making the report available upon request to anyone is a lesser standard than what the law requires — the subdivider has an affirmative duty to deliver the report to signing purchasers, not merely a passive obligation to provide it if someone asks.

C

only bona fide purchasers who have signed a purchase contract.

Correct Answer
D

the salespeople they employ.

Salespeople employed by the subdivider are not the intended recipients of the public report under the Subdivided Lands Law — while salespeople must be familiar with its contents, the statutory delivery requirement is directed at protecting purchasers, not informing internal sales staff.

Why is this correct?

Answer C is correct because California Business and Professions Code §11018.1 requires that a subdivider deliver a copy of the Final Subdivision Public Report to each prospective purchaser before the purchaser signs a binding purchase contract or before any deposit is accepted — meaning the report must be given to those who are at the stage of signing a purchase contract, i.e., bona fide purchasers. The prospective purchaser must also sign a receipt acknowledging they received the report, which the subdivider must retain. This targeted delivery requirement ensures the report reaches those who are actually committing to purchase, not merely curious browsers.

Ready to Ace Your Real Estate Exam?

Access 2,000+ free video lessons covering all 11 exam topics.