A Notice of Intention (RE 603, 624 or 628) must be filed with the California Department of Real Estate (DRE), and a preliminary, conditional or final Public Report must be obtained from them, with certain exceptions, before offering for sale or lease five or more subdivision interests.
( pursuant to the DRE, Subdivision Public Report Application Guide, Section IV, Subsection A)
HAVE ANY REPORTS BEEN FILED FOR CALIFORNIA PINES?
YES! Over a hundred Public Reports are available for your review on the DRE Website. The problem is, there is no way to tell the date they were issued by the information on the list. Some of the information in public reports does get old and requires updating to keep the information current. In a fact, the DRE "Expires" reports after a set period of time to encourage the renewal of this information by prospective sellers. At present, all of the Public Reports for California Pines have expired, as far as we know. However, that does not mean that the "expired" reports don't contain some good information!
WHAT KIND OF INFORMATION DO THEY CONTAIN?
A Pubic Report is a disclosure document, and you should always ask for it if you are purchasing any property in California. It contains information on fees, taxes, assessments, regulations, financing terms offered by the seller, and known issues that might affect your ability to develop, enjoy or pay for the property. For instance, the original final report for Hill Unit 5 stated:
- THERE IS NO GUARANTEE THAT A PURCHASER WILL BE ABLE TO USE HIS LOT FOR RESIDENTIAL PURPOSES.
- THERE IS NO GUARANTEE OF THE QUALITY, QUANTITY OR AVAILABILITY OF SUFFICIENT POTABLE DOMESTIC WATER ON ANY LOT IN THIS UNIT. PURCHASER IS ADVISED THAT NO RESIDENTIAL USE OF ANY LOT IS PERMITTED UNLESS A SUFFICIENT DOMESTIC WATER SUPPLY IS OBTAINED. (The report then goes on to list the properties where wells have been drilled and come up dry)
- THE COUNTY OF MODOC ADVISES THAT THE USE OF A LOT BY THE LOT OWNER FOR CAMPING IN A SELF-CONTAINED RECREATIONAL VEHICLE CANNOT EXCEED THIRTY (30) DAYS.
- THIS UNIT MAY BE OFFERED ONLY FOR SEASONAL RECREATIONAL USE AS THE LOTS ARE NOT SUITABLE FOR YEAR-ROUND USE.
Despite the fact that this Public Report technically "Expired" on June 5, 1984, all of the above information is still true of Hill Unit 5, and the first three issues are true of every lot in California Pines! The expiration simply means that a seller with 5 or more lots to sell in California Pines cannot use the report to sell their properties. Instead, they are required to update it.
HOW ACCURATE ARE THE REPORTS?
As always, it is "Buyer Beware". For example, the latest report for Hill Unit 5, whose applicant (seller) is listed as "N.R.L.L EAST, LLC", fails to include the statement limiting Unit 5 to seasonal recreational use. It also misstates the camping regulations of the County, indicating that camping in a recreational vehicle "cannot exceed thirty (30) consecutive days or a total of ninety (90) calendar days in one year". County regulations do not provide for 90 days of camping in any calendar year, only 30 (per Zoning Ordinance Section 18.100.060.B.2).
WHAT DOES THIS MEAN TO YOU?
If You Are Purchasing A Lot in California Pines: Look up the Public Reports that apply to the Unit you are purchasing, even if they are expired. Read the governing documents of the POA (they are available right here on this blog). Check with the POA to see if the seller owes past POA dues on the property you are interested in (if you purchase the property you will be responsible for any past dues). Visit the property, and ASK AROUND! This is a small community and the people who live here are happy to tell you what (they think) they know. However, always check and verify whatever you hear! Also, the POA staff is happy to try to answer any questions you may have.
If You Are Selling Lots in California Pines, and Have Five or More On Offer: You must file the documents required by the DRE, and provide them to any prospective purchasers. You also must keep the POA fees current!
The Property Owners' Association (who does not sell properties in California Pines themselves) is taking steps to try to ensure that any further Public Reports filed with the DRE are accurate. However, the DRE has not contacted the POA regarding these reports in the past, so please check out the "facts" they report before you purchase!