What is a common interest development?
In a common interest development, an individual owns or leases a separate lot, unit or interest together with an undivided interest or membership interest in the common area. The common area is usually governed and maintained by a homeowners’ association of which each individual owner is a member. If a mobile home park is sold or leased with the intention of creating separate interests for the residents, a common interest development will result. See Part IV for a discussion of common interest developments. What is the role of the Department of Real Estate? The Department of Real Estate (DRE) regulates California real estate brokers and salespeople and the marketing and sale of subdivided real property in California. Basically, DRE’s issuance of a final subdivision public report must precede the offering for sale or lease of lots or interests in a subdivision of five or more lots or interests. (Although the subdivider can advertise and accept refundable deposits for reservations pursua
