California CodesBusiness and Professions Code - BPCDivision 4 — Real EstatePart 2 — Regulation of TransactionsChapter 1 — Subdivided LandsArticle 2 — Investigation, Regulation and ReportSection 11013.1
It shall be unlawful, except as provided in Section 11013.2 or 11013.6, for the owner, subdivider, or agent to sell or lease lots or parcels within a subdivision that is subject to a blanket encumbrance unless there exists in the blanket encumbrance or other supplementary agreement a provision, hereinafter referred to as a release clause, which by its terms shall unconditionally provide that the purchaser or lessee of a lot or parcel can obtain legal title or other interest contracted for, free and clear of the blanket encumbrance, upon compliance with the terms and conditions of the purchase or lease.
Notes
Prohibits an owner, subdivider, or agent, except under the cited exceptions, from selling or leasing subdivision lots or parcels subject to a blanket encumbrance unless the encumbrance or supplemental agreement contains an unconditional release clause. That clause must allow a complying purchaser or lessee to obtain contracted legal title or other interest free and clear of the blanket encumbrance.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 11013.1 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-4/part-2/chapter-1/article-2/section-11013-1