California Real Estate Practice Exam

Renewal of a subdivision approval by the Real Estate Commissioner is available if all the lots have not been sold within

1. Two years

2. Three years

3. Five years

4. Ten years

The correct answer is: Five years

In California, the Real Estate Commissioner allows for the renewal of a subdivision approval if all lots within that subdivision have not been sold within five years. This time period provides developers with a reasonable timeframe to market and sell their properties while also ensuring oversight in real estate developments. The rationale behind this five-year limit is to balance the interests of developers with those of the market and consumers. If a subdivision remains unsold beyond this period, it signals potential issues that may need to be addressed, such as market conditions or project viability. Understanding this five-year timeframe is crucial for real estate practitioners as it helps them navigate subdivision regulations effectively and assists in planning sales strategies for subdivisions.