BILL NUMBER: AB 728	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Leno

                        FEBRUARY 19, 2003

   An act to amend Section 11000.1 of the Business and Professions
Code, relating to subdivided lands.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 728, as introduced, Leno.  Real estate: undivided interests.
   Existing law provides for the regulation of real estate
transactions, including subdivided lands transactions and defines
"subdivided lands" and "subdivision" for these purposes with the
exception of undivided interests that meet specified conditions.
   This bill would make a clarifying change to these provisions.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 11000.1 of the Business and Professions Code is
amended to read:
   11000.1.  (a) "Subdivided lands" and "subdivision," as defined by
Sections 11000 and 11004.5, also include improved or unimproved land
or lands, a lot or lots, or a parcel or parcels, of any size, in
which, for the purpose of sale or lease or financing, whether
immediate or future, five or more undivided interests are created or
are proposed to be created.
   (b) This section does not apply to the creation or proposed
creation of undivided interests in land if any one of the following
conditions exists:
   (1) The undivided interests are held or to be held by persons
related one to the other by blood or marriage.
   (2) The undivided interests are to be purchased and owned solely
by persons who present evidence satisfactory to the Real Estate
Commissioner that they are knowledgeable and experienced investors
who comprehend the nature and extent of the risks involved in the
ownership of these interests.  The Real Estate Commissioner shall
grant an exemption from this part if the undivided interests are to
be purchased by no more than 10 persons, each of whom furnishes a
signed statement to the commissioner that he or she (1) is fully
informed concerning the real property to be acquired and his or her
interest therein including the risks involved in ownership of
undivided interests, and (2) is purchasing the interest or interests
for his or her own account and with no present intention to resell or
otherwise dispose of the interest for value, and (3) expressly
waives protections afforded to a purchaser by this part.
   (3) The undivided interests are created as the result of a
foreclosure sale.
   (4) The undivided interests are created by a valid order or decree
of a court.
   (5) The offering and sale of the undivided interests have been
expressly qualified by the issuance of a permit from the Commissioner
of Corporations pursuant to the Corporate Securities Law of 1968
 (Division 1 (commencing with Section 25000) of Title 4 of the
Corporations Code)  .
   (6) The real property is offered for sale as a time-share project
as defined in Section 11003.5.