COMMERCIAL REAL ESTATE

Law May Aid Sellers: A new state law designed to cut the time it takes developers to sell properties to home buyers could give the building industry a boost.

The law, which takes effect Jan. 1, could keep developers from losing potential buyers whose interest might fade during the lengthy wait while the Department of Real Estate approves the builder’s plans. It would do so by allowing DRE to issue a conditional report. Thus the developer would not have to wait for a final public report before starting the financing paperwork for the home buyer.

Under current law, developers may advertise properties but must take only non-binding reservations from interested buyers until they receive final state approval. Beginning next year, a developer will be allowed to sell a property as long as six months ahead of time, in effect converting a non-binding reservation into a binding escrow agreement.