2005 California Business and Professions Code Sections 10249-10249.93 Article 8. Out-of-State Land Promotions

BUSINESS AND PROFESSIONS CODE
SECTION 10249-10249.93

10249.  (a) A person acting as a principal or agent who intends, in
this state, to sell or lease or offer for sale or lease lots,
parcels, or interests in a subdivision, as defined in Section
10249.1, situated outside of this state but within the United States,
shall, prior to a sale, lease, or offer, register the subdivision
with the commissioner.  An application for registration shall be made
on a form acceptable to the commissioner and include, together with
a fee, a description of the offering, certification by the applicant
that the subdivision is in compliance with all applicable
requirements of the state or states wherein the project is located,
evidence of this compliance, if applicable, and a consent to service
as described in Section 10249.92.
   (b) The commissioner, within 10 days of receipt of an application
of registration, shall provide the applicant with notice of the
completion of the registration or a notice of deficiency.  If the
department does not provide a notice within 10 days, the registration
shall be deemed complete.
10249.1.  "Subdivision," as used in Section 10249, includes all of
the following:
   (a) Improved or unimproved land or lands divided or proposed to be
divided for the purpose of sale or lease, whether immediate or
future, into five or more lots or parcels.
   (b) Improved or unimproved land or lands in which, for the purpose
of sale or lease, whether immediate or future, five or more
undivided interests are created or proposed to be created.
   (c) "Subdivision," as defined in Section 11004.5, excluding
"subdivision" as defined in subdivision (e) of that section.
10249.3.  (a) The commissioner may by regulation prescribe filing
fees in connection with registrations with the department pursuant to
the provisions of this article that are lower than the maximum fees
specified in subdivision (b) if the commissioner determines that the
lower fees are sufficient to offset the costs and expenses incurred
in the administration of this article.  The commissioner shall hold
at least one hearing each calendar year to determine if lower fees
than those specified in subdivision (b) should be prescribed.
   (b) The filing fee for an application for a registration with the
department pursuant to the provisions of this article shall not
exceed the following for each subdivision or phase of the subdivision
in which interests are to be offered for sale or lease:
   (1) An application for an original  registration:  One hundred
dollars ($100).
   (2) An application for a renewal  registration:  One hundred
dollars ($100).
   (3) An application for an amended registration:  One hundred
dollars ($100).
   (c) All fees collected by the Department of Real Estate under
authority of this article shall be deposited into the Real Estate
Fund under Chapter 6 (commencing with Section 10450) of Part 1.  All
fees received by the department pursuant to the provisions of this
article shall be deemed earned upon receipt.  No part of any fee is
refundable unless the commissioner determines that it was paid as a
result of mistake or inadvertence.
10249.8.  (a) Notwithstanding any provision to the contrary in
Section 10249 or 11000, it is unlawful for a person, in this state,
to sell or lease or offer for sale or lease lots, parcels, or
interests in a subdivision, as defined in Section 10249.1, entirely
located outside of this state but within the United States, unless
any printed material, literature, advertising, or invitation in this
state relating to that sale, lease, or offer clearly and
conspicuously contains the following disclaimer in at least 10-point
type:
   WARNING:  THE CALIFORNIA DEPARTMENT OF REAL ESTATE HAS NOT
INSPECTED, EXAMINED, OR QUALIFIED THIS OFFERING.
   (b) If an offer on property described in subdivision (a) is not
initially made in writing, the disclaimer set forth in subdivision
(c) shall be received by the offeree in writing prior to a visit to a
location, sales presentation, or contact with a person representing
the offeror, when the visit or contact was scheduled or arranged by
the offeror or its representative.  The deposit of the disclaimer in
the United States mail, addressed to the offeree and with first-class
postage prepaid, at least five days prior to the scheduled or
arranged visit or contact, shall be deemed to constitute delivery for
purposes of this section.
   (c) If a California resident is presented with an agreement or
contract to lease or purchase any property described in subdivision
(a), where an offer to lease or purchase that property was made to
that resident in California, a copy of the disclaimer set forth in
this subdivision shall be inserted in at least 10-point type at the
top of the first page of that agreement or contract and shall be
initialed by that California resident.
   WARNING:  THE CALIFORNIA DEPARTMENT OF REAL ESTATE HAS NOT
QUALIFIED, INSPECTED, OR EXAMINED THIS OFFERING, INCLUDING, BUT NOT
LIMITED TO, THE CONDITION OF TITLE, THE STATUS OF BLANKET LIENS ON
THE PROJECT (IF ANY), ARRANGEMENTS TO ASSURE PROJECT COMPLETION,
ESCROW PRACTICES, CONTROL OVER PROJECT MANAGEMENT, RACIALLY
DISCRIMINATORY PRACTICES (IF ANY), TERMS, CONDITIONS, AND PRICE OF
THE OFFER, CONTROL OVER ANNUAL ASSESSMENTS (IF ANY), OR THE
AVAILABILITY OF WATER, SERVICES, UTILITIES, OR IMPROVEMENTS.  IT MAY
BE ADVISABLE FOR YOU TO CONSULT AN ATTORNEY OR OTHER KNOWLEDGEABLE
PROFESSIONAL WHO IS FAMILIAR WITH REAL ESTATE AND DEVELOPMENT LAW IN
THE STATE WHERE THIS SUBDIVISION IS SITUATED.
10249.9.  (a) Notwithstanding any provision to the contrary in
Section 10249 or 11000, it is unlawful for  a person, in this state,
to sell or lease or offer for sale or lease a lot, parcel, or
interest in a subdivision, located outside the United States, unless
the printed material, literature, advertising, or invitation in this
state relating to that sale, lease, or offer clearly and
conspicuously contains the following disclaimer in at least 10-point
capital type:
   WARNING:  THE CALIFORNIA DEPARTMENT OF REAL ESTATE HAS NOT
EXAMINED THIS OFFERING, INCLUDING, BUT NOT LIMITED TO, THE CONDITION
OF TITLE, THE STATUS OF BLANKET LIENS ON THE PROJECT (IF ANY),
ARRANGEMENTS TO ASSURE PROJECT COMPLETION, ESCROW PRACTICES, CONTROL
OVER PROJECT MANAGEMENT, RACIALLY DISCRIMINATORY PRACTICES (IF ANY),
TERMS, CONDITIONS, AND PRICE OF THE OFFER, CONTROL OVER ANNUAL
ASSESSMENTS (IF ANY), OR THE AVAILABILITY OF WATER, SERVICES,
UTILITIES, OR IMPROVEMENTS.  IT MAY BE ADVISABLE FOR YOU TO CONSULT
AN ATTORNEY OR OTHER KNOWLEDGEABLE PROFESSIONAL WHO IS FAMILIAR WITH
REAL ESTATE AND DEVELOPMENT LAW IN THE COUNTRY WHERE THIS SUBDIVISION
IS SITUATED.
   (b) If an offer on property described in subdivision (a) is not
initially made in writing, the foregoing disclaimer shall be received
by the offeree in writing prior to a visit to a location, sales
presentation, or contact with a person representing the offeror, when
the visit or contact was scheduled or arranged by the offeror or its
representative.  The deposit of the disclaimer in the United States
mail, addressed to the offeree and with first-class postage prepaid,
at least five days prior to the scheduled or arranged visit or
contact, shall be deemed to constitute delivery for purposes of this
section.
   (c) If any California resident is presented with an agreement or
contract to lease or purchase a property described in subdivision
(a), where an offer to lease or purchase that property was made to
that resident in California, a copy of the disclaimer set forth in
subdivision (a) shall be inserted in at least 10-point type at the
top of the first page of that agreement or contract and shall be
initialed by that California resident.
10249.91.  The term of a registration issued pursuant to this
article shall be one year, unless the commissioner by regulation
prescribes a longer term.
10249.92.  A registration application pursuant to the provisions of
this article shall be accompanied by an irrevocable consent stating
that if in any action commenced against the applicant in this state
personal service of process upon the applicant cannot be made after
the exercise of due diligence, a valid service may thereupon be made
upon the applicant by delivering the process to the Secretary of
State.
   Insofar as possible, the provisions of Section 1018 of the Code of
Civil Procedure relating to service of process on the Secretary of
State are applicable to this section.
10249.93.  (a) If the commissioner finds, based on available
evidence, that a person is violating any provision of this article or
a regulation of the commissioner adopted to implement a provision of
this article, the commissioner may order the person to cease and
desist from committing the violation or to cease and desist from the
further sale or lease of an interest in the subdivision until the
violation is corrected.
   (b) A person to whom an order is directed shall, upon receipt of
the order, immediately cease the activity described in the order.
   (c) The person to whom the order is directed may request a hearing
in accordance with subdivision (c) of Section 11019.


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