California Real Estate Practice Exam

Which one of the following is not classified as a subdivision?

1. Community apartment project with 20 or more apartments

2. Condominium project with 10 or more units

3. Planned development containing four lots

4. Stock cooperative containing 10 or more units

The correct answer is: Community apartment project with 20 or more apartments

The correct choice is that a community apartment project with 20 or more apartments is not classified as a subdivision. In California real estate, a subdivision typically involves the division of land into multiple parcels for the purpose of development, where the units are sold individually. A community apartment project, in contrast, is considered a type of tenancy in common rather than a subdivision. In these projects, the units are rented or leased rather than sold as individual properties, which distinguishes them from subdivisions where individual ownership is a fundamental characteristic. Condominium projects, planned developments, and stock cooperatives all define distinct forms of ownership for residential units where owners have the ability to purchase their units, aligning them with the classification of subdivisions. These terms denote projects designed specifically so that multiple units are owned separately by different individuals, fulfilling the criteria for subdivision classification.