November 2009

Make Sure Title is Clean Before you Buy Your Home

November 22, 2009 by Jane Peters · Leave a Comment 

As part of due diligence when purchasing a home a buyer will be provided a copy of the Preliminary Title Report (PTR).

What is a PTR?  A PTR is a report prepared by a title company prior to issuing title insurance.  It shows who owns the property and any liens or encumbrances that a new policy will not cover.

If there is any doubt make sure that any documents referred to in the PTR are available.  An example would be a city sewer easement across your backyard.  You might be able to build on it, but upon reading the supporting document it may say that you as the homeowner are responsible for any damages caused to the sewer line and may be asked to remove the improvements at your own cost, at the city’s whim.

Make sure the names of the owners on the title report match those on the purchase and sale agreement.  There may be more owners or “actual” owners.  There are more an more scams out there where people are accessing foreclosed and vacant homes and pretending to be the owners.  You should do this with a lease also.

In the case of development make sure that the land being bought is free to build on.  That there are no oil, mineral, gas rights reserved preventing development of the land.  Reviewing the legal description of the land will reveal this.

Liens are often recorded against a property, such as junior mortgages, home equity lines of credit, and delinquent property taxes. There are other monetary issues that could be on the title: supplemental real property taxes, special assessments, judgment liens and mechanics’ liens. A mechanics’ lien is a guarantee of payment for contracted services on an improved piece of property.  Some people don’t realize that these liens can occur before the recording of the grand deed or deed of trust.  If there was any improvement done to the property the buyer should demand coverage as part of the title insurance policy.

Escrow follows up with the lien holders, but it is wise for the buyer’s agent to make sure that the demands are met and that escrow closes on time.

There is the escaped assessment, which is an assessment on real prope4rty taxes which are assessed after the close of escrow but are for the period before the change of ownership.  An assessment can happen if ownership of a property has changed hands frequently over a period of time.  The assessor’s office may not have caught up with this and the latest owner is hit with the assessment.  The documentation should ensure that these assessments are the responsibilty of the seller unless otherwise negotiated.

Legal lots in California are created when property is subdivided under the California Subdivision Map Act (CSMA). Recorded parcel maps create four or fewer legal lots and recorded subdivision maps create five or more of these lots.  An example of a legal lot would be: Parcel 3 of Parcel Map 13546 recorded on (date) in Maps of Los Angeles County California, or Tract10 of Tract Map 13546 recorded on (date) in Maps of Los Angeles County California.

If the description mentions a portion of Lot… or the north 10 feet of Parcel…, then you could have a CSMA violation.

Your broker can request the title company to issue a subdivision map act endorsement to the title policy to ensure that the CSMA has not been violated by the transfer.

Need to Find Doggie Day-Care?

November 17, 2009 by Jane Peters · Leave a Comment 

If you need to find a great day-care or boarding facility for your dog, The Loved Dog is a wonderful environment.

On Pontius Avenue in West Los Angeles, Tammy Geller, trainer to Oprah Winfrey’s golden retriever puppies, has turned a warehouse into a day-camp for dogs.  The dogs and the employees look like they are having a whale of a time.

Dogs are separated between large and small, small dogs with large personalities joining the former group.  There is behavioral and health screening before a dog is admitted, non-aggressive training approved by the Humane Society, and door to door pick up and delivery of your pet.

I visited the facility today and could barely tear myself away from watching the dogs running.  If I were a dog, that’s where I would want to hang out.

CalSTRS and CalPERS Loans Available for Public Employees and Employees of the California School System

November 14, 2009 by Jane Peters · 1 Comment 

If you are a a member of the California Public Employees Retirement System, Legislators Retirement System, Judges Retirement System, or employee of a California school district, school or community College or a public employee the CalPERS and CalSTRS loans allow you to purchase a home with little money down and affordable rates and fees.

CalPERS

Special features of the CalPERS home loan are:

3.5% down
Co-signers allowed
Fixed interest rates with maximum fixed costs
$350 lender fees allowed
No early payoff penalties
No income limits
You do not have to be a first-time buyer
You can use 100% gift funds for downpayment
Closing costs assistance available
Special down payment assistance benefit

CalSTRS

Special features of this loan are:

Only 3% down
No mortgage insurance
This is an 80%/17%  for which you only make payments on the 80% for the first 5
30- year fixed-rate mortgage
No early pay-off penalties
Low controlled rates and fees
Lenders fees limited
No income limits
You do not have to be a first-time buyer

For more information on the CalSTRS program go to Calstrs.com.

Malibu to Ban Septic Tanks

November 8, 2009 by Jane Peters · Leave a Comment 

Malibu, an area of Los Angeles that contains some of the most expensive real estate in Los Angeles County and is home to countless movie stars, is about to lose the bulk of its septic tank systems after years of fierce debate.

No new systems will be allowed and existing systems in central and eastern Malibu will have to be converted over within ten years.

The septic tank system has been popular in the area because it hindered growth in an area coveted for its wide open spaces and beautiful views. But detractors fought against the ocean and beach pollution caused as a result.

The switch to a sewer system will come at great expense to residents in the areas affected, around $500 a month.  Businesses would pay $20,000 a month.  There is a compromise which would shrink the affected areas and allow owners in commercial areas to comply by 2015 and residents in Malibu Knolls, Serra Retreat, and Malibu Colony by 2019.

Septic tanks were a major consideration in Malibu becoming an incorporated city in 1991 to stop Los Angeles County installing a sewer system in the area.  Residents were afraid of over-development.

The stench in the area, especially after a rainstorm is famous and called  the “Malibu smell”. Not what one would imagine in such an upscale neighborhood.

In an area full of beachgoers and famous for its surfer, getting rid of this polluting factor can only be a good thing.

Congress Approves the Expansion of the Home Buyers Tax Credit

November 5, 2009 by Jane Peters · 2 Comments 

The House of Representatives voted today to extend the home buyers tax credit, expanding it to include existing homeowners who have lived in their current residence for five a minimum of five years.

The tax credit is extended until April 30, 2010 with an extension of 60 days if a binding contract is in place prior to that date.

The $8000 remains in effect for first-time buyers, with existing homeowners receiving $6,500.  Income limits are also raised from $7,500 to $125,000 for single tax filers, and from $150,000 to $225,000 for joint filers.

In addition, taxpayers who complete a purchase in 2010 can claim the credit on their 2009 tax returns and home buyers do not have to repay the credit if they remain in their homes for 36 months.

Now is definitely the time to buy.