California Real Estate Practice Exam

Which statement about a non-licensee subdivider is incorrect?

1. May make any improvements on the land prior to receiving the public report

2. May not sell or offer for sale any lots prior to issuance of the Commissioner's Public Report

3. May employ licensed real estate salespeople to sell lots in a subdivision

4. May sell all lots in a subdivision themselves

The correct answer is: May make any improvements on the land prior to receiving the public report

The statement regarding a non-licensee subdivider making improvements on the land prior to receiving the public report is incorrect because the regulations put in place to protect consumers require that a public report must be issued before any changes can be made to the land or the lots. The public report provides important information to potential buyers about the subdivision, including details about the project, any encumbrances, and the developer's background. Once the report is issued, it ensures that any improvements are conducted within the framework of the law and that buyers are adequately informed. On the other hand, the remaining statements reflect correct practices. Non-licensee subdividers cannot sell or offer for sale any lots until they have received the public report to ensure that buyers are protected. Furthermore, they are allowed to employ licensed real estate salespeople to help in the selling process, as these professionals can navigate the legalities of real estate transactions. Additionally, while a non-licensee can sell lots in a subdivision, they must first comply with the public report requirements to ensure consumer protection.