Thinking about selling your home soon? There are a lot of quick and inexpensive things you can do you make your property attract buyers.
1. Paint your front door a fun bright color. Red. Yellow. Orange. Green. Blue. It makes the house look well cared for and adds a pop of color.
2. Replace dated address numbers and/or mailboxes with newer and updated designs.
3. Trim back or remove overgrown trees and shrubs that are hiding the charming architectural details of your home.
4. Add some landscape lighting to you front path to make the house more inviting at night.
5. Add an outdoor bench to your porch or entry sequence. It is inviting place to wait for someone, put on shoes, leave packages, use as a plant stand. Think of it as your outdoor landing strip.
Property taxes are governed by California State law and collected by the county. The County Assessor must first assess the value of your property to determine the amount of property tax based on the assessed value (cash or market value) at the time of purchase. This value increases not more that 2% per year until the property is sold or new construction is completed. The appropriate tax rates, including the general tax levy, locally voted special taxes and any city or district assessments, are applied by the Auditor-Controller. Based on the Auditor-Controller’s calculations, the tax collector prepares and distributes tax bills and collects the taxes.
TAX CALENDAR
On January 1, taxes become a lien at 12:01 a.m. not yet due and payable for the Fiscal Tax Year starting July 1. Thereafter, title evidence must show taxes as a lien for the coming Fiscal Tax Year.
To be eligible for applicable exemptions, you must own and occupy property on March 1.
On December 10, a 10% penalty is added to taxes due. If December 10thfalls on a weekend or holiday, taxes are not delinquent until 5 p.m. the next business day.
On April 10, a 10% penalty plus administrative charge attaches. If April 10 falls on a weekend or holiday, taxes are not delinquent until 5 p.m. the next business day.
On June 30, if you fail to pay either or both installments by 5 p.m., property tax becomes defaulted and additional costs and penalties accrue.
If June 30 falls on a weekend or holiday, taxes must be paid by 5 p.m. of the preceding business day.
Property may be sold at public auction after five years of delinquency.
(from Title360 Home Seller’s Guide)
Thinking of selling? Download a FREE 26 page Home Guide for Seller’s – Click Here to Download
Prorated taxes, interest, rent HOA dues (could be credit or debit)
Payoff of all loans, other liens and judgments of record against the property (except those to be assumed by Buyer) including, but not limited to: accrued interest, demand/statement fee, re-conveyance fee, forwarding fee, late fees/prepayment penalty, if any
Loan fees required by the Buyer’s Lender (specifically on FHA & VA loans)
Homeowner’s Association transfer fee, document fee and demand fee
Pest control inspection reports and cost for repairs
Home warranty plan
Title insurance premium for Owner’s Policy
Escrow fee (Seller’s portion)
Document preparation fee for Grand deed and other recordable
Document(s) prepared for Seller’s benefit
Demand processing fees
Notary Public fees ($10.00 per signature to be notarized)
Document signing service, if requested
Documents recording charges
The BUYER can generally be expected to pay for:
County Transfer Tax ($1.10 per $1,000 of sales price)
City Transfer Tax (varies by city)
Prorated taxes, interest, rent HOA dues (could be credit or debit)
Payable taxes (not yet delinquent) required to be paid in advance by Lender
New financing costs, fees, pre-paid interest and impounds, if any (except those costs to be paid by Seller, as required by Lender or as negotiated in Purchase Agreement) or Assumption costs if existing financing is to be assumed by Buyer
Hazard insurance premium – year paid in advance
Title insurance premium for Lender’s Policy
Escrow fee (Buyer’s portion)
Document preparation fee for documents prepared for Buyer’s benefit
Notary Public fees ($10.00 per signature to be notarized)
Document signing service, if requested
Special delivery/courier fees/wire transfer, if utilized
Document recording charges
(From Title360 Home Seller’s Guide)
Thinking of selling? Download a FREE 26 page Home Guide for Seller’s – Click Here to Download
In 1868, the concept of title insurance began as a result of needed improvement to the traditional methods of conveying real property. At the time, the process did not provide confidence and safety to the parties involved in a real estate transaction. Historically, the transfer of title to real property was performed by conveyancers who were recognized authorities on real estate law but generally not lawyers. Conveyancers spearheaded all aspects of the transaction, including a title search, to determine the ownership rights of the seller and any other rights, interests, liens or encumbrances that might “cloud” the property’s title.
From the search, the conveyance then delivered a description (abstract) of the title’s status that laid the groundwork for the conveyancer’s opinion as to how clean or clouded the title. Due to inadequate public records, conveyancers had limited ability to ensure adequate buyer confidence. There was also the risk that their good faith opinion might ignore certain clouds on title or lack thoroughness. As a result, buyers were left to unfortunately bear the full risk of any title issues that might arise following their real estate purchase. The case of Watson v. Muirhead (57 Pa. 161) was filed in Pennsylvania in 1868 which is directly traceable to the limited protection issue of the time concerning the work a conveyancer provided to the purchaser of real property.
Muirhead, a conveyancer, had searched and abstracted a title for Watson, the purchaser of a parcel of real property. Muirhead chose to ignore certain recorded judgments and reported the title as good and unencumbered after consulting an attorney. As a result, Watson purchased the property but was later presented with liens that Muirhead had determined were not title impairments. The Pennsylvania Supreme Court ruled that there was no negligence on the conveyancer’s part and dismissed the case. The decision clearly demonstrated that, in the existing conveyancing system, the buyer would bear the full risk should an issue on title come up after purchasing the real estate.
This decision ignited the Pennsylvania legislature to later pass an act “to provide for the incorporation and regulation of title insurance companies” and the first title company, The Law of Property Assurance and Trust Society, was founded in Philadelphia in 1876. Addressing the concerns in Watson v. Muirhead, title insurance provided responsibility without proof of negligence, financial protection through a reduction of the risk of insolvency, and the assumption of risks beyond those disclosed in the public records (for which the abstractor was not liable). Title insurance has become an integral part in the majority of today’s real estate transactions in the United States. Regulated by state insurance agencies, the services of title insurers vary in different states and counties due to different laws, procedures and customary practices. Nonetheless, the critical objective is steadfast – to ensure all parties acquiring or transferring an interest in real estate can do so with the highest level of efficiency, security and safety.
Did You Know? Benjamin Franklin laid the groundwork for the model and concept of title insurance as we know it today?
Title insurance is available in Canada, England, Northern Ireland, Mexico, New Zealand, China, Korea, Australia, and throughout Europe?
Unlike other forms of insurance, title insurance emphasizes prevention rather than the assumption of risk.
WATER ONE LESS DAY A WEEK
If you are currently watering 3 days a week, watering one less day reduces your outdoor water consumption by 33%.
WATER NO MORE THAN 10 MINUTES PER DAY
Depending on your soil type, you may need multiple start and stop times to avoid water run off and wasting water.
TURN OFF THE RUN OFF
Adjusting sprinklers so they are not watering hardscape or sidewalk and/or adjust your sprinkler times so that the water soaks into your soil.
FIX LEAKS IMMEDIATELY
Drips and leaks waste both water and money.
USE A BROOM
Do not hose or water down hard or paved surfaces such as sidewalks, driveways, patios, parking areas, tennis courts or alleys.
A capital gain is a profit that results from the sale of an asset, such as stocks, bonds or real estate, which amounts to morethan the purchase cost. This difference between sale price and original price (cost basis) is the capital gain. Capital gains are often calculated for tax purposes and are not based on the purchase price but on its adjusted cost basis.
The IRS provides for a tax exemption on capital gains from the sale of a principal residence. Be sure to check with your Accountant or CPA for professional insight.
HOW TO CALCULATE CAPITAL GAIN
First, take the purchase price of the home. This is the sales price not the amount of money contributed at closing.
Second, determine the sales price or the final amount received in exchange for its recent sale.
Third, add adjustments:
+ cost of purchase, including inspections, transfer fees, attorney fees
+ with the exception of points paid on a mortgage
+ cost of improvement, including decks, casitas, room additions with the exception of repair or replacement to something already in existence such as a roof or air conditioning unit
+ cost of sale, including inspection fees, attorney’s fees, commissions and money spent on the home to ready it for sale
finally, total the adjusted sale price and subtract the adjusted cost basis from the amount the home is sold for to determine the capital gain.
(from Title360 Home Seller’s Guide)
Thinking of selling? Download a FREE 26 page Home Guide for Seller’s – Click Here to Download
The goal of escrow is to ensure that your transaction moves along as smoothly as possible.
You will need to provide your Closing Officer with the following information:
STATEMENT OF INFORMATION Once escrow is opened with your title agency, you will receive a Statement of Information to complete. Statements of Information provide the information needed to distinguish the Buyers and Sellers of real property from others with similar names so as to disregard matters which do not affect the property to be insured. After identifying the true Buyers and Sellers, the title company may disregard the judgments, liens or other matters on the public records under similar names. This routinely requested document protects all parties involved and allows the title company to competently carry out its duties without unnecessary delay. You, and your spouse if you are married, will be asked to provide full name, social security number, year of birth, birthplace, and information or citizenship. If you are married, you will be asked the date and place of your marriage along with any previous marriage information, residence and employment information.
EXISTING LIEN HOLDER(S) Provide names of your existing lien holder(s) along with address, phone number and loan number.
IDENTIFICATION Be sure to bring your driver’s license or other form of picture Id to the closing.
WIRING INFORMATION The title company can wire proceeds into your account upon funding of the transaction. Please provide your Closing Officer with wiring information if you choose to have your funds wired.
RECEIPTS Any invoices for inspections, repairs or other items to be paid at closing but be submitted to escrow prior to closing.
POWER OF ATTORNEY If you intend to use Power of Attorney and will not be present at closing to sign documents, you must provide the original Power of Attorney prior to closing for approval and recording. The Lender will also need to approve the Power of Attorney. Please provide a contact number so that you can be reached for verification as well as to confirm that Power of Attorney has not been revoked.
(from Title 360 Seller’s Guide)
Thinking of selling? Download a FREE 26 page Home Guide for Seller’s – Click Here to Download
Escrow is the depositing of funds and documents that establish the terms and conditions for the transfer of property ownership with an impartial third party (title company) for delivery upon completion of the terms of the escrow instruction.
You’ve probably heard the term: documents are held “in escrow” or that the parties have “opened escrow.” The principals of the escrow (Seller, Buyer, Lender) will give to the escrow holder written instructions setting out the terms and conditions under which the further delivery is to be made. The Escrow Officer holds responsibility for seeing that these terms are adhered to.
WHO CHOOSES THE ESCROW COMPANY? The selection of escrow is typically done by agreement between the principals. In most areas of the country, the Seller typically makes the selection but it does vary. Often times, this aspect of a transaction is directed towards the Seller’s preference because if a home has fallen out of escrow prior, disclosures and reports are already ordered and paid for with an escrow company so it makes sense based on cost and efficiency to stay with the same company. Real estate agents or Lenders often recommend an escrow holder but it is the right of the Seller and Buyer to select the company they deem to be most competent and experienced.
THE PURPOSE Of AN ESCROW The common use of an escrow is to enable the parties in a real estate transaction to deal with each other with less risk, since the escrow holder acts as:
Custodian for funds and documents.
A clearing house for payment of all demands.
An agency to perform the clerical details for the settlement of the accounts between the parties.
TYPICAL ESCROW TRANSACTION An escrow begins with the Realtor® ‘opening the order for title work’ and providing the Purchase Agreement and all executed documentation to escrow. Once received, the escrow agency prepares a preliminary report. Upon receipt of the preliminary report, an analysis is made to determine the necessary action and documents required to complete the transaction:
Demands for satisfaction of liens not acceptable to Buyer and/or Lender.
Documents for recording.
Instructions and requirements of the new Lender.
In most areas, Buyer and Seller instructions are prepared for signature from the information gathered.
When all the title and financial requirements are met, and instructions from all parties can be fully complied with, the escrow is said to be ‘in perfection’ and can close. Once the financial settlement takes place, documents are recorded and the title insurance policies are then issued.
(from Title360 Seller’s Guide)
Thinking of selling? Download a FREE 26 page Home Guide for Seller’s – Click Here to Download
