Subdivided Lands Law

The subdivided lands law was enacted to prevent any misrepresentations, fraudulent acts or deceit when it comes to the lease or sale of a subdivided real property. Applications involved in real property are the sales and marketing of subdivided units, parcels and lots. With the regulation of the sales of subdivided lands, there will be a full and comprehensive disclosure of any relevant information to buyers. A subdivision public report is a required document that include material facts to potential buyers of subdivided lands. Handling of deposit monies, as well as purchase monies that buyers give to subdividers, are also regulated by this law.


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It is important that the state requirements with regard to this law are met by subdivided land projects. Compliance to these requirements is important, and it must be evident before the proposed sale or actual sale of the property within the subdivided land. Some of the requirements include valid license held by the agent to sell subdivided lots (under the state where he or she practices the profession) and an approved public report must be obtained by the licensed agent from the real estate commissioner prior leasing or selling the unit within the subdivision. Moreover, a sale of the property that a corporation owns may be made by the officer even without any broker license. This only applies, though, if the corporation’s officer is not entitled to any special compensations after completion of these services.

About the Public Report

The Subdivision Public Report includes key information given to the Commissioner to offer details about the subdivision’s existing status before it is sold. It is also important that the pieces of information provided are all accurate and valid, and these should meet standards. Among the areas included in the public report include sanitation requirements, title’s condition, streets and roads, police and fire protection, access and presence of public utility lines and transformers, proper drainage, commercial businesses and public transportation.


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