California Real Estate Practice Exam

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The resale of which of the following would NOT require a notice to the Department of Real Estate (DRE)?

2 units in a planned development
5 lots in a standard subdivision
5 units in a condominium project
5 units in a stock cooperative

The correct answer is: 2 units in a planned development

The resale of 2 units in a planned development would not require a notice to the Department of Real Estate (DRE) because the threshold for notification typically applies to larger transactions. In California, the DRE requires notice for the resale of property involving more significant numbers, often linked to regulations attempting to manage larger developments and subdivisions. In California, resales of properties such as 5 lots in a standard subdivision, 5 units in a condominium project, or 5 units in a stock cooperative fall under specific guidelines requiring notice to ensure compliance with the state’s regulatory framework regarding real estate sales. Thus, the lower quantity of 2 units in a planned development does not meet the criteria necessitating a formal notice to the DRE, distinguishing it from the other options.