There are seven types of Public Reports, but the ultimate one obtained for a new subdivision is a Final Public Report (called a WHITE). A Public Report is a disclosure statement which provides consumer protection in the sale of subdivided land, including air space subdivisions. It is issued by the Bureau of Real Estate (BRE) after the submission of a filing package, their initial review, deficiency submission, the recording of certain documents and their final review. The BRE process should be started after the City or County approves the tentative map and before construction commence.
The following is a brief description of the major steps in obtaining a Final Public Report. (Note: This procedure and the mandated time frames do not apply to application for Preliminary Public Reports, Interim Public Reports, Conditional Public Reports and Amended or Renewed Reports.)
Step 1. A subdivider (or agent -BRE Processor from Chicago Title Company) fills out a Notice of Intention and submits it, together with a fee and the required complement of documents, to the BRE.
Step 2. The application package is reviewed to ensure that everything needed for initial processing has been submitted (Minimum Filing Package). If it has, the fee is processed and a file number is assigned to the application. If it has not, the filing package will be returned to the subdivider (or agent).
Step 3. The file is reviewed to determine if it qualifies as a Substantially Complete Application (SCA).
Within 10 days after initial receipt of the Minimum Filing Package, the Bureau of Real Estate must notify the applicant whether or not the file meets Substantially Complete Application requirements. If it does not, the applicant is notified which documents are missing via a Quantitative Deficiency Notice.
Files that do not meet Substantially Complete Application requirements will be placed in a pending file and will not be further processed for a Final Public Report.
Step 4. Once all the necessary documents are received, the applicant will be notified that the file qualifies as Substantially Complete and file processing for a Final Public Report will begin.
The file is assigned to a Special Investigator who reviews the file and prepares a Qualitative Deficiency Notice. This Qualitative Deficiency Notice indicates what additional documentation is needed to issue the Final Public Report and also points out where there is a need to supplement, correct or amend anything that is already part of the file.
Step 5. If the subdivision is a Common-Interest filing (condominiums, planned developments etc.) the budget file is reviewed by BRE Special Investigator. They prepare Budget Deficiency Notices covering their particular area of review, and correspond with the Single Responsible Party (SRP) regarding any budget deficiencies.
Step 6. The Special Investigator sends an all-encompassing (except for possibly association budget deficiencies) Qualitative Deficiency Notice to the Single Responsible Party (SRP). This step must be completed within 20 days (Standard) or 60 days (Common Interest) from the date BRE determined the file to be Substantially Complete.
Step 7. The SRP responds to the Qualitative Deficiency Notice directly to the Special Investigator and responds to the Budget Deficiency Notice directly to the Budget Special Investigator, with a copy to the Special Investigator. The SRP's response may take weeks or months depending on circumstances.
Step 8. The Special Investigators review the comprehensive, qualitative response for correctness and, as dictated by the response, may send additional Deficiency Notices. The Deputy must respond within 20 days (Standard) or 30 days (Common Interest) from the date of receipt of the correspondence.
Step 9. After having corrected all deficiencies, the SRP will be notified to record the CC&R's, obtain bonds, etc. When recorded documents, etc., are received, the Special Investigator will determine if the file is "perfected", and if so, prepare a draft Public Report and send it to the appropriate typing unit.
Step 10. A Final Public Report is prepared and issued to the party named by the applicant as the Single Responsible Party. The Final Public Report must be issued within 10 days (Standard) or 15 days (Common Interest) from the date the file is "perfected".
Step 11. The SRP is given the Original of the Public Report for reproduction. Copies are made for distribution for your sales in the project and provided to Subdivider/Developer.
Each recipient of a Public Report must sign a receipt for it. The receipts must be kept by the subdivider for three years.
*Conditional Public Report has not mandated timeframes but is typically issued between 70-100 days. Sample Purchase Agreement must be accepted by BRE in order for report to be issued.