Page 22 - CTT Subdivision_Manual_CA
P. 22

obTaining your publiC reporT, ConT.
There are seven types of Public Reports, but the ultimate one obtained for a new subdivision is a Final Public Report (called a WHITE).
1) Preliminary Public Report, called a PINK. A PINK will allow you to advertise the project “For Sale” and take refundable deposits to secure a reservation of a unit or lot. Escrow must hold buyer’s deposits but you cannot sign a binding contract or escrow instructions. Either party can cancel and all monies must be returned. A PINK is good for one year and can be renewed and/or amended as often as needed. A PINK requires a very short application and in most cases can be issued in one to two weeks of submittal to the DRE. The requirements for a PINK are that the developer be in title or be an “owner-in-escrow” and the project have a tentative tract map approval.
2) Conditional Public Report, called a YELLOW. A YELLOW will allow you to enter into a binding contract and open escrow, subject to the completion of specified conditions. Only when these conditions are satisfied and a Final Public Report is issued can escrow close. A YELLOW can only be issued after a completed filing package has been submitted, a request letter has been filed with an additional filing fee, the DRE Deputy has completed their review and any corrections have been satisfied. Timing for issuance ranges from 2 1/2 to 3 1/2 months from the initial submittal, but is not guaranteed. A YELLOW is good for six months and can be extended only once
for an additional 6 months.* This makes it possible to get a YELLOW too early with the potential for it to expire before you can obtain the WHITE. In addition, because one of the conditions to be satisfied is most often the recording of the subdivision map and Condominium Plan, title reports cannot be issued, making buyer’s loan approval not possible until the Final Report is issued.
3) Final Public Report, called a WHITE. The WHITE is the Report which allows you to enter into binding contracts and open and close escrows (provided the project is completed). A WHITE requires the same filing package as the Yellow with the addition of final DRE approval and recordation of the final documents. Once submitted to the DRE, it usually takes between four to six months to obtain a WHITE, provided the subdivision map records within that time. A WHITE is good for five years, after which it can be renewed at five-year intervals.
4) Amended Public Report. This is obtained when an existing Public Report has a material change. Consult your Chicago Title DRE Consultant or your attorney to determine if the change in your offering is material. A short form application, explaining the nature of the amendment, is required with a filing fee, along with back up documentation relative to the change.
5) Renewed Public Report. This is obtained when the existing Public Report has expired. A Public Report must be renewed even if the number of unsold lots or units falls below five. The renewal process should begin several months before the Public Report is due to expire, as budgets will need to be re-reviewed and approved.
6) Interim Public Report. This is similar to a PINK on a project that is under DRE review for an Amended or Renewed Public Report.
7) HUD Limited-Term Final Public Report. This is a fairly new report which is subject to change and discontinuance. It is similar to a YELLOW on a high-rise project of more than 100 units which is subject to HUD jurisdiction, has a lender pre-sale requirement and where construction cannot be completed within two years. This Limited-Term WHITE must be renewed every six months. Your Chicago Title DRE Consultant or your attorney can help determine if this report is still available or applicable to your project.
* In certain high-rise condominium developments of 25 units or more, a YELLOW can be issued for up to 30 months with one 6 month extension. This additional time is granted on a case by case basis with special approval required by the DRE.
20 © 2008-2011 Chicago Title (0411)

   20   21   22   23   24