California Real Estate Practice Exam

With respect to subdivided lands, which of the following is true?

1. Subdivisions can be created without local government approval

2. Reservations for future purchases may be taken when the conditional report is issued

3. Developers are not required to provide infrastructure

4. Buyers can take possession before subdivision approval

The correct answer is: Reservations for future purchases may be taken when the conditional report is issued

Subdivisions are created by dividing a larger parcel of land into smaller lots. In order to do so, developers must go through a process that includes obtaining approval from the local government. Therefore, option A is incorrect because subdivisions cannot be created without local government approval. Option C is also incorrect because developers are typically required to provide infrastructure such as roads and utilities in order to receive approval for the subdivision. Option D is incorrect because possession of the land cannot be taken before the subdivision is approved. Option B is the correct answer because it is true that developers can reserve lots for future purchases while the conditional report is being issued, which is one step in the subdivision approval process.