11000.  (a) "Subdivided lands" and "subdivision" refer to improved
or unimproved land or lands, wherever situated within California,
divided or proposed to be divided for the purpose of sale or lease or
financing, whether immediate or future, into five or more lots or
parcels.  However, land or lands sold by lots or parcels of not less
than 160 acres which are designated by lot or parcel description by
government surveys and appear as such on the current assessment roll
of the county in which the land or lands are situated shall not be
deemed to be "subdivided lands" or "a subdivision" within the meaning
of this section, unless the land or lands are divided or proposed to
be divided for the purpose of sale for oil and gas purposes, in
which case the land or lands shall be deemed to be "subdivided lands"
or "a subdivision" within the meaning of this section.  This chapter
also does not apply to the leasing of apartments, offices, stores,
or similar space within an apartment building, industrial building,
commercial building, or mobilehome park, as defined under Section
18214 of the Health and Safety Code, except that the offering of
leases for a term in excess of five years to tenants within a
mobilehome park as a mandatory requirement and prerequisite to
tenancy within the mobilehome park shall be subject to the provisions
of this chapter.  The leasing of apartments in a community apartment
project, as defined in Section 11004, and the creation of a
time-share project as specified in Section 11004.5, in an apartment
or similar space within a commercial building or complex, shall be
subject to the provisions of this chapter.
   (b) Nothing in this section shall in any way modify or affect any
of the provisions of Section 66424 of the Government Code.
   (c) Subdivisions, as defined in Section 10249.1, which are located
  entirely outside California shall be exempt from the provisions of
this part.



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.
   (6) The real property is offered for sale as a time-share project
as defined in Section 11003.5.



11000.2.  (a) A person who has made an offer to purchase an interest
in an undivided-interest subdivision specified in subdivision (a)
of, and not exempted by subdivision (b) of, Section 11000.1 shall
have the right to rescind any contract resulting from the acceptance
of that offer until midnight of the third calendar day following the
day on which the prospective purchaser executed the offer to
purchase.
   (b) The owner of a subdivision subject to this section or his or
her agent shall, in accordance with regulations adopted by the Real
Estate Commissioner, clearly and conspicuously disclose to all
prospective purchasers of undivided interests the right of rescission
provided for in subdivision (a), and shall furnish to each offeror a
form, as prescribed by regulations of the commissioner, for the
exercise of the right of rescission.
   (c) Any certificate bearing the signature of the purchaser of an
interest in an undivided-interest subdivision subject to this section
which contains an adequate description of the interest or interests
sold and a statement by the purchaser that he or she has not
exercised the right of rescission within the time limit set forth in
subdivision (a) shall constitute conclusive evidence that the right
of rescission has not been exercised in any matter involving the
rights of a third party who has acted in good faith in reliance upon
representations in the certificate.


11001.  The Real Estate Commissioner (hereafter referred to in this
chapter as the commissioner) may adopt, amend, or repeal such rules
and regulations as are reasonably necessary for the enforcement of
this chapter.  He may issue any order, permit, decision, demand or
requirement to effect this purpose.  Such rules, regulations, and
orders shall be adopted pursuant to the provisions of the
Administrative Procedure Act.



11003.  "Planned development" has the same meaning as specified in
subdivision (k) of Section 1351 of the Civil Code.



11003.2.  "Stock cooperative" has the same meaning as specified in
subdivision (m) of Section 1351 of the Civil Code, except that, as
used in this chapter, a "stock cooperative" does not include a
limited-equity housing cooperative.


11003.4.  (a) A "limited-equity housing cooperative" is a
corporation which meets the criteria of Section 11003.2 and which
also meets the criteria of Section 33007.5 of the Health and Safety
Code.  Except as provided in subdivision (b), a limited-equity
housing cooperative shall be subject to all the requirements of this
chapter pertaining to stock cooperatives.
   (b) A limited-equity housing cooperative shall be exempt from the
requirements of this chapter if the limited-equity housing
cooperative complies with all the following conditions:
   (1) The United States Department of Housing and Urban Development,
the Farmers Home Administration, the National Consumers Cooperative
Bank, the California Housing Finance Agency, or the Department of
Housing and Community Development, alone or in any combination with
each other, or with the city, county, or redevelopment agency in
which the cooperative is located, directly finances or subsidizes at
least 50 percent of the total construction or development cost or one
hundred thousand dollars ($100,000), whichever is less; or the real
property to be occupied by the cooperative was sold by the Department
of Transportation for the development of the cooperative and has a
regulatory agreement approved by the Department of Housing and
Community Development for the term of the permanent financing,
notwithstanding the source of the permanent subsidy or financing.
   (2) No more than 20 percent of the total development cost of a
limited-equity mobilehome park, and no more than 10 percent of the
total development cost of other limited-equity housing cooperatives,
is provided by purchasers of membership shares.
   (3) A regulatory agreement which covers the cooperative for a term
of at least as long as the duration of the permanent financing or
subsidy, notwithstanding the source of the permanent subsidy or
financing has been duly executed between the recipient of the
financing and either (A) one of the federal or state agencies
specified in paragraph (1) or (B) a local public agency which is
providing financing for the project under a regulatory agreement
meeting standards of the Department of Housing and Community
Development.  The regulatory agreement shall make provision for at
least all of the following:
   (A) Assurances for completion of the common areas and facilities
to be owned or leased by the limited-equity housing cooperative,
unless a construction agreement between the same parties contains
written assurances for completion.
   (B) Governing instruments for the organization and operation of
the housing cooperative by the members.
   (C) The ongoing fiscal management of the project by the
cooperative, including an adequate budget, reserves, and provisions
for maintenance and management.
   (D) Distribution of a membership information report to any
prospective purchaser of a membership share, prior to purchase of
that share.  The membership information report shall contain full
disclosure of the financial obligations and responsibilities of
cooperative membership, the resale of shares, the financing of the
cooperative including any arrangements made with any partners,
membership share accounts, occupancy restrictions, management
arrangements, and any other information pertinent to the benefits,
risks, and obligations of cooperative ownership.
   (4) The federal, state, or local public agency which executes the
regulatory agreement shall satisfy itself that the bylaws, articles
of incorporation, occupancy agreement, subscription agreement, any
lease of the regulated premises, any arrangement with partners, and
arrangement for membership share accounts provide adequate protection
of the rights of cooperative members.
   (5) The federal or state agency shall receive from the attorney
for the recipient of the financing or subsidy a legal opinion that
the cooperative meets the requirements of Section 33007.5 of the
Health and Safety Code and the exemption provided by this section.
   (c) Any limited-equity cooperative which meets the requirements
for exemption pursuant to subdivision (b) may elect to be subject to
all provisions of this chapter.
   (d) The developer of the cooperative shall notify the Department
of Real Estate, on a form provided by the department, that an
exemption is claimed under this section.  The Department of Real
Estate shall retain this form for at least four years for statistical
purposes.


11003.5.  (a) A "time-share project" is one in which a purchaser
receives the right in perpetuity, for life, or for a term of years,
to the recurrent, exclusive use or occupancy of a lot, parcel, unit,
or segment of real property, annually or on some other periodic
basis, for a period of time that has been or will be allotted from
the use or occupancy periods into which the project has been divided.

   (b) A "time-share estate" is a right of occupancy in a time-share
project which is coupled with an estate in the real property.
   (c) A "time-share use" is a license or contractual or membership
right of occupancy in a time-share project which is not coupled with
an estate in the real property.
   (d) An "exchange program" is any method, arrangement, or procedure
for the voluntary exchange of the right to use and occupy
accommodations and facilities among purchasers of time-share
interests or other property interests.  An "exchange program" does
not include the assignment of the right to use and occupy
accommodations and facilities to purchasers of time-share interests
pursuant to a reservation system.  Any method, arrangement, or
procedure that otherwise meets this definition, wherein the purchaser'
s total contractual financial obligation exceeds three thousand
dollars ($3,000) per time-share interest shall be regulated as a
multisite time-share project and shall be subject to the provisions
of this article.
   (e) An "incidental benefit" is an accommodation, product, service,
discount, or other benefit, other than an exchange program, which is
offered to a prospective purchaser of a time-share interest prior to
the end of the rescission period set forth in Section 11024, the
continuing availability of which for the use and enjoyment of owners
of time-share interests in the time-share project is limited to a
term of not more than five years.
   (f) A "multisite time-share project" is any method, arrangement,
or procedure, with respect to which a purchaser obtains, by any
means, a recurring right to use and occupy accommodations or
facilities in a time-share project consisting of more than one
component site, only through use of a reservation system, on a
nonpriority basis.  The term does not include an exchange program
wherein the purchaser's total contractual financial obligation does
not exceed three thousand dollars ($3,000) per time-share interest or
a single-site time-share project.
   (g) A "reservation system" is the method, arrangement, or
procedure by which a purchaser of a time-share interest, (1) in order
to reserve the use and occupancy of any accommodation or facility of
a multisite time-share project or qualified resort vacation club for
one or more use periods is required to compete with other owners of
time-share interests in that multisite time-share project or
qualified resort vacation club or (2) in order to reserve the use and
occupancy of any accommodation or facility of a component site
associated with a single-site time-share project is required to
compete with other owners of time-share interests in those component
sites, regardless of whether that reservation system is operated and
maintained by (A) the person responsible for the operation and
administration of that time-share project, (B) an exchange company,
or (C) any other person.  In the event that an owner of a time-share
interest is required to use an exchange program as the owner's
principal means of obtaining the right to use and occupy the
accommodations and facilities of any time-share project, that
arrangement shall be a reservation system.
   (h) (1) A "single-site time-share project" is a time-share project
consisting of a single geographic site wherein a purchaser of a
time-share interest in that site receives a recurring right to
reserve, on a priority basis, the use or occupancy of accommodations
and facilities at that site.  A single-site time-share project may be
associated with other time-share projects, or other accommodations
under a contractual or membership program through a reservation
system.
   (2) (A) A single-site time-share project shall not be deemed to be
a multisite time-share project solely on the basis of the required
use of a reservation system.  If use of the reservation system is
mandatory, the agreement for affiliation of the single-site
time-share project shall provide for an initial term of not more than
five years, and may further provide for automatic term renewals for
additional successive terms of five years, unless at a duly noticed
meeting of the membership of the association, or pursuant to an
action without a meeting taken in accordance with subdivisions (a),
(b), (c), and (d) of Section 7513 of the Corporations Code, a motion
to terminate the reservation system affiliation agreement is approved
by the membership pursuant to subparagraphs (B), (C), and (D).
   (B) A motion on the question of termination of a reservation
system affiliation agreement may be initiated by any person specified
in subdivision (e) of Section 7510 of the Corporations Code, and
shall be considered by the membership not more than 120 and not less
than 30 days prior to expiration of its term.
   (C) The quorum for any meeting of the membership to consider the
termination of a reservation system affiliation agreement shall be
not more than 30 percent of the voting power of the association
residing in members other than the subdivider.  The vote necessary to
terminate the reservation system affiliation agreement in an action
without a meeting or at a meeting at which a quorum is present by
ballot, in person, or by proxy shall be the greater of (i) 25 percent
of the voting power of the association residing in members other
than the subdivider, or (ii) a majority of the voting power of the
association voting at a meeting or in an action without a meeting by
ballot, in person or by proxy, residing in members other than the
subdivider.
   (D) Notwithstanding subdivision (a) of Section 7513 of the
Corporations Code, an action without a meeting on the question of
termination of a reservation system affiliation agreement may be
taken even if prohibited by the association's articles or bylaws.
   (E) The cost assessed to a time-share owner or to an association
of time-share owners for the reservation system that is more than 10
percent greater than the reservation system assessment for the
immediately preceding fiscal year may not be levied without the vote
or written assent of the same percentage of the voting power of the
association set forth in subparagraph (C).



11004.  "Community apartment project" has the same meaning as
specified in subdivision (d) of Section 1351 of the Civil Code.



11004.5.  In addition to any provisions of Section 11000 of this
code the reference therein to "subdivided lands" and "subdivision"
shall include all of the following:
   (a) Any planned development, as defined in Section 11003 of this
code, containing five or more lots.
   (b) Any community apartment project, as defined by Section 11004
of this code, containing five or more apartments.
   (c) Any condominium project containing five or more condominiums
as defined in Section 783 of the Civil Code.
   (d) Any stock cooperative as defined in Section 11003.2, including
any legal or beneficial interests therein, having or intended to
have five or more shareholders.
   (e) (1) A time-share project, as defined in Section 11003.5,
consisting of 12 or more time-share estates or time-share uses having
terms of five years or more, except that time-share uses, whether or
not assignable or irrevocable, in real property other than
structural dwelling places shall not constitute a subdivision.
   (2) Any combination of 12 or more time-share estates or time-share
uses having terms of five years or more in two or more time-share
projects in the same subdivision (as defined in Section 11000 or this
section), if concurrently advertised or offered for sale by or on
behalf of the same or affiliated persons, except that time-share
uses, whether or not assignable or irrevocable, in real property
other than structural dwelling places, shall not constitute a
subdivision.  Except as deemed impracticable by the commissioner, the
report required by Section 11018 on a subdivision defined by this
paragraph shall be prepared as a single consolidated report.
   (f) Any limited-equity housing cooperative, as defined in Section
11003.4.
   (g) In addition, the following interests shall be subject to the
provisions of this chapter and the regulations of the commissioner
adopted pursuant thereto:
   (1) Any accompanying memberships or other rights or privileges
created in, or in connection with, any of the forms of development
referred to in subdivision (a), (b), (c), (d), (e), or (f) above by
any deeds, conveyances, leases, subleases, assignments, declarations
of restrictions, articles of incorporation, bylaws or contracts
applicable thereto.
   (2) Any interests or memberships in any owners association as
described in Section 11003.1 created in connection with any of the
forms of the development referred to in subdivision (a), (b), (c),
(d), (e), or (f) above.



11004.6.  (a) If and to the extent that there has been compliance
with subdivision (b) of this section, the provisions of paragraph (2)
of subdivision (e) of Section 11004.5 shall not be applicable to an
offering of either of the following:
   (1) Time-share estates or time-share uses in a time-share project
in which any time-share estate or time-share use was, prior to July
1, 1982, sold to a member of the general public, or if not sold, was
offered for sale to the general public through a bona fide marketing
effort as evidenced by media advertising, direct mail solicitations,
or other marketing methods.
   (2) Time-share estates or time-share uses located in the same
subdivision project in which a time-share estate or time-share use to
which paragraph (1) of subdivision (a) of this section is applicable
is located, if:
   (A) The time-share estate or time-share use will be offered for
sale by the person, or by an affiliate of the person, who sold or
offered for sale the time-share estate or time-share use to which
paragraph (1) is applicable, and
   (B) The time-share estate or time-share use is in a lot, parcel,
or unit of real property which, on or before July 1, 1982, the person
owned or had contracted in writing to purchase.
   (b) A person claiming exemption under subdivision (a) of this
section shall, on or before January 1, 1983, submit all of the
following to the Department of Real Estate, in the form and in the
manner prescribed by the department:
   (1) Identification of each time-share project and each lot,
parcel, or unit of real property purporting to qualify for the
exemption under subdivision (a); and
   (2) Evidence of sales or of a marketing program to members of the
general public made on or before July 1, 1982, upon which the person
is relying in claiming the exemption of subdivision (a).




11007.  Every nonresident subdivider shall file with the
questionnaire an irrevocable consent that if, in any action commenced
against him in this State, personal service of process upon him
cannot be made in this State after the exercise of due diligence, a
valid service may thereupon be made upon him by delivering the
process to the Secretary of State.
   Insofar as possible, the provisions of Section 1018 of the Code of
Civil Procedure relating to the service of process on the Secretary
of State are applicable to this section.



11008.  No provision of this part which makes a violation of this
part a crime shall be construed to preclude application of any other
criminal provision of the law of this state to an act or omission
which constitutes a violation of this part.