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Another final document to complete your DRE filing is the Maintenance Assessment Bond or other security device, which amount is approved by the DRE. Your DRE Consultant will notify you when your budget has been approved and it is time to deposit this security with escrow. The Maintenance Assessment Bond is the most commonly used security device. The purpose is to guarantee your payment of assessments on unsold units. It is deposited with escrow and can be in the form of a Surety Bond, Cash Deposit, Letter of Credit or Set Aside Letter. Your filing may have included an optional Subsidy Agreement or Start-Up fund. Both of these arrangements also require the posting of a bond or other security to guarantee your obligation. Your DRE Consultant will let you know if these bonds are required.
When the final documents are ready to be submitted to the DRE (recorded Map, Condominium Plan, CC&Rs, and bond[s]), your DRE Consultant will prepare the Final Public Report (WHITE) and make the final submission. The DRE has 15 days to issue the WHITE. (Make sure you have completed the online survey or your WHITE will not be issued.)
Once the WHITE is issued, your DRE Consultant will notify you and provide you with an initial number of copies of the White and the Purchaser Documents to distribute to your buyers.
The documents that make up the Purchaser Documents that will need to be given to each buyer either at the point of sale or while in escrow are:
• Final Public Report
• CC&Rs
• Bylaws
• Articles of Incorporation • SB800 Notice
• Annexation Document (if a phased project)
• Subsidy or Maintenance Agreements (if applicable) • Condominium Plan
• Maintenance Budget
The following documents may also be given if they have been prepared for your project. Some of these documents are not part of the DRE filing so you should confirm what documents need to be given to your buyers and who will be responsible for providing them:
• Disclosures prepared by your attorney for your project (optional) • Limited Warranty (optional)
• Maintenance Manual (optional)
• Special Property Tax Disclosures
• Hazard Disclosure
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