We are Proud to be Working for an
“All American Company” Unlike many of our competitors, everyone involved in servicing your title business at Investors Title Company is a local industry professional. Our employees work in America, spend their earnings in America, and pay taxes to the Good Old USA. While other companies continue to eliminate jobs by moving them off-shore, we are adding American jobs to our local economy. Placing your business with Investors Title Company, you can rest assured your title order will be searched, examined and processed by experienced American title professionals. In addition, you will also be helping provide needed jobs to American workers.
“Title Insurance for Americans by Americans”
Investors Title Company • 161 Fashion Lane Ste. 201 Tustin, CA 92780 • 714.586.8400 • Toll free 866.698.9544
A.P.N Explained (Assessor’s Parcel Number)
Parcel Numbering System
Most counties use a number system to identify a parcel for tax purposes. In California, the Assessor’s Parcel Number (APN) refers to the map book number and acts as the index for researching parcel information. Information is available for public viewing in most county Assessor’s Offices and Recorder’s Offices.
The Parcel Number
Consists of 3 different parts; For example... APN: 123-456-78 would mean Assessor’s Book 123; Page 45 and Block 6 of that page; and parcel 78 of that Block.
123-456-78
Locating Parcels
1. If street names are shown on the Plat Map, use the street index guide of another larger area map to locate the parcel. 2. If no street names are present, use the Township and Range numbers to locate the parcel. The entire United States is divided into a large grid pattern of Townships and Ranges approximately six miles wide. Each Township and Range intersection is comprised of 36 Sections of land. A single section is one square mile in size. Refer to the legend of another general area map to identify its Section, Township and Range markings. For Example: S. 1/2, Sec. 16, T. 6N, R3W across the top of the Plat Map would mean; the South half of Section 16, Township 6 North, Range 3 West. Refer to the legend of another general map to identify corresponding Section, Township and Range markings.
Helpful Information BOOK
PAGE
BLOCK
PARCEL
The Assessor’s office and the Planning Departments in most counties maintain a variety of maps (General, Assessor’s plat, Subdivision and Zoning maps ). These offices are a good source of property information. Investors Title Company is another good source of information. The United States department of the interior, Geological Survey (U.S.G.S.), Maps cover the entire country and come in several different scales. Many retailers sell U.S.G.S. Maps as well as county maps useful to the real estate investor. See your local book store, map dealer or camping outlet.
Investors Title Company 400 N. Tustin Ave. #260 Santa Ana, CA 92705 Office: 714-586-8400 Customer Service: 714-586-8424
IMPORTANT DATES FOR HOMEOWNERS January 1
• Taxes become a lien on all taxable property at 12:01 A.M. • First day to file affidavits and claims for exemptions for real property • First day to file application for “decline-in-value” reassessment (Proposition 8
February 1
• Second installment of real taxes is DUE (DELINQUENT after 5:00 PM on April 10).
February 15
• Deadline for timely filing of affidavits and claims for exemptions (late after 5:00 PM; a postmark before midnight is considered timely) for real property, including Veterans’ & Disabled Veterans’. • Last day to file for the Homeowner’s Exemption claim (late after 5:00 PM; a postmark before midnight is considered timely) to receive the maximum exemption ($7,000 of assessed value).
April 10
• SECOND INSTALLMENT OF REAL ESTATE TAXES BECOMES DELINQUENT AFTER 5:00 PM (a postmark before midnight is considered timely). • Annual Payment on the Installment Plan of Redemption is due.
May 15 to December 10
• Period for filing affidavit and claim for property tax postponement with State Controller.
June 1
• Mailing of delinquent tax bills for current year and supplementals.
June 30
• Last day of the property tax year (fiscal year). • DELINQUENT property becomes TAX DEFAULTED for nonpayment of taxes and is subject to the power of sale five (5) years hence if delinquent taxes are not fully paid. Last day (prior to 5:00 PM) to open an installment plan of redemption on those parcels in their fifth year of delinquency.
July 1
• First day of the property tax year (fiscal year). • First day affidavit and claim for homeowner or renters assistance may be filed with State Franchise Tax Board.
July 2
• First day to file an Assessment Appeal application for equalization of assessment.
September (fourth Monday)
• Assessment Appeals hearings commence.
October 1
• Beginning day of annual secured tax bill mailing
October 15
• Last day affidavit and claim for homeowner or renters assistance may be filed (late after 5:00 PM) with State Franchise Tax Board.
November 1
• First installment of real estate taxes is DUE (DELINQUENT after 5:00 PM on December 10).
November 30
• LAST DAY TO FILE ASSESSMENT APPEAL APPLICATION FOR REDUCTION OF ASSESSMENT MADE IN REGULAR PERIOD IN LOS ANGELES COUNTY.
December 10
• FIRST INSTALLMENT OF REAL ESTATE TAXES BECOMES DELINQUENT AFTER 5:00 PM (a postmark before midnight is considered timely). • Last day to file late Homeowners’ Exemption to receive 80% of the exemption. • Last day to file late Veterans’ Exemption to receive 80% of the exemption. • Last day to file late Disabled Veterans’ Exemption to receive 90% of the exemption. • Last day to terminate Homeowners’, Veterans’, and Disabled Veterans’ exemptions. • Last day to file for postponment of taxes with State Controller.
December 31
• Last day to file application for “decline-in-value” reassessment (Proposition 8) with our office. This should be done if you feel the market value of your property is below your Proposition 13 value. If the specified date falls on a weekend or legal holiday, the act required may be done on the next business day. The property tax year (fiscal year) runs from July 1 to June 30. Property is taxed as of January 1 for payment in the following fiscal year.
Information deemed reliable, but accuracy is not guaranteed.
TITLE SOUP California Domestic Partnership Law Family Code Section 297, et seq. REQUIREMENTS Requirements for establishing a domestic partnership in California: 1. Both persons file a Declaration of Domestic Partnership with the Secretary of State 2. Both persons have a common residence 3. Neither person is married to someone else or is a member of another domestic partnership 4. The two persons are not related by blood in a way that would prevent them from being married to each other in this state 5. Both persons are at least 18 years of age 6. Either of the following: A. Both persons are members of the same sex, OR B. One or both of the persons meet certain eligibility criteria under the Social Security Act and one/both of the persons are over the age of 62 7. Both persons are capable of consenting to the domestic partnership
RIGHTS OF DOMESTIC PARTNERS Registered domestic partners shall have the same rights, protections, and benefits, and shall be subject to the same responsibilities, obligations, and duties under law, whether they derive from statutes, administrative regulations, court rules, government policies, common law, or any other provisions or sources of law, as are granted to and imposed upon spouses.
INCOME TAX RETURNS However, in filing their state income tax returns, domestic partners shall use the same filing status as is used on their federal income tax returns, or that would have been used had they filed federal income tax returns. Earned income may not be treated as community property for state income tax purposes.
VESTING The statutes do not specify a manner of holding title. We will accept vestings that mirror vestings for husbands and wives. Examples are: John Jones and Sam Smith, domestic partners, as joint tenants Mary Jones and Barbara Smith, domestic partners, as community property
Information deemed reliable, but not guaranteed.
Title Coverage Map
Investors Title Company
Now Serving 51 Counties in California Service areas outlined below: Northern California Coverage ITC Licensed in these counties
Del Norte Modoc
Siskiyou
Humboldt
Lassen
Shasta
Trinity
Tehama Mendocino
Glenn Colusa
Plumas Butte Yuba
Lake Northern California Counties Serviced ** Alameda Alpine Amador Butte Calaveras Colusa Contra Costa Del Norte El Dorado Fresno Imperial Kern Kings Lake Madera Marin Mariposa Mendocino Merced Monterey Nevada Placer
Sacramento San Benito San Francisco San Joaquin San Luis Obispo San Mateo Santa Barbara Santa Clara Santa Cruz Shasta Sierra Siskiyou Solano Sonoma Stanislaus Sutter Trinity Tulare Tuolumne Yolo Yuba
Sonoma Marin
Sierra Nevada Placer
Sutter Yolo El Dorado Alpine Sacramento Napa Amador Solano Calaveras San Joaquin Tuolumne Contra Costa
Alameda Stanislaus
Sa nt aC San Mateo lar a
Merced
Mono Mariposa
Madera Fresno
San Benito
** Northern California preliminary title reports produced and policies issued by First American Title Company
Inyo
Tulare
Monterey
Proven Experience, Outstanding Service
Kings
San Luis Obispo
Kern San Bernardino
Santa Barbara
Los Angeles Ventura Orange
Riverside
San Diego
Imperial
Southern California County Recorders
Cutoff Time Schedule County
Phone
Cuttoff-Time
Specials
Los Angeles
562.462.2137
3:30pm (the night before)
No
Orange
714.834.2710
3:00pm
Yes - Daily
Riverside
951.486.7000
1:30pm
Yes (Friday and month end)
San Bernardino
909.387.8314
11:00am
Yes- Daily
San Diego
619.237.0502
3:00pm (sales)
Yes Sales Only
Santa Barbara
805.568.2250
3:30pm (the night before)
No
Ventura
805.654.3788
3:30pm (the night before)
No
Kern
661.868.3460
12:00pm
Yes - Daily
Imperial
760.482.4481
10:00am
No
Last day of the month or day before holiday
Southern California County
Tax Assessors Imperial County Tax Assessor Roy D. Buckner 940 W. Main Street Suite 115 El Centro, CA 92243 Phone: 760.482.4244 Fax: 760.482.4243
Orange County Tax Assessor Webster J. Guillory, Assessor 625 N. Ross St., Civic Center Plaza, Building 11, Room 142 Santa Ana, CA 92701 Phone: 714.834.2727
San Diego Tax Assessor Ernest Dronenburg 1600 Pacific Highway, Suite 103 San Diego, CA 92101 Mail Stop: A-4 Phone: 619.236.3771
Kern County Assessor Jim Fitch 1115 Truxtun Avenue Bakersfield, CA 93301 Email: assessor@co.kern.ca.us Phone: 661.868.3485
Riverside County Tax Assessor Larry Ward 4080 Lemon St, 1st Floor P.O. Box 12004 Riverside, CA 92502-2204 Email: accrmail@asrclkrec.com Phone: 800.746.1544 Fax: 951.955.6200
Santa Barbara Tax Assessors Joseph Holland 105 E. Anapamu St., Room 204 Santa Barbara, CA 93101 Phone: 805.568.2550 Fax: 805.568.3247
Los Angeles County Tax Assessor John R. Noguez 500 W. Temple St. Room 225 Los Angeles, CA 90012-2770 Phone: 888.807.2111 ***Please note that each county has many other fees for recording various documents. For a full listing of each please visit the website of the specific county.
San Bernardino County Tax Assessor Dennis Draeger 172 W. Third St. San Bernardino, CA 92415 Phone: 909.387-8307 Toll free: 877.885.7654
Ventura County Assessor’s Office Dan Goodwin 800 S. Victoria Avenue Ventura, CA 93009 Phone: 805.654.2181 Fax: 805.645.1305
400 N. Tustin Ave. #260 Santa Ana, CA 92705 Office: 714-586-8400 Customer Service: 714-586-8424
Southern California County Recorder Offices & Documentary Transfer Tax Rates Address
Contact
County Tax Per $1000
City
City Tax Per $1000
http://lavote.net
$1.10 $1.10 $1.10 $1.10 $1.10
Culver City Los Angeles Pomona Redondo Beach Santa Monica
$4.50 $4.50 $2.20 $2.20 $3.00
$1.10
All OC Cities
$0.00
$1.10
All SB Cities
$0.00
$1.10 $1.10
Riverside Other RC Cities
$1.10 $0.00
$1.10
All SD Cities
$0.00
$1.10
All Ventura Cities
$0.00
LOS ANGELES County of Los Angeles 12400 Imperial Hwy. Room 2001 Norwalk, CA 90650
562.462.2125
ORANGE Hall of Records and Finance 12 Civic Center Plaza Santa Ana, CA 92701
www.ocrecorder.com 714.834.2500
SAN BERNARDINO Hall of Records 222 West Hospitality Lane San Bernardino, CA 92415
www.sbcounty.gov 909.387.8322
RIVERSIDE County Administrative Center 4080 Lemon St., 1st Fl Riverside, CA 92502
www.riversidecr.com 951.955.6200
SAN DIEGO County Administration Bldg. 1600 Pacific Hwy, Suite 103 San Diego, CA 92101
www.sdpublic.sdcounty.ca.gov
619.236.3771
VENTURA County of Ventura 800 S. Victoria Avenue Ventura, CA 93009
http://recorder.countyofventura.org
Foreclosure Timeline The following time-line is applicable for non-judicial California Foreclosures under a Deed of Trust. Foreclosures begin YKVJ VJG 6TWUVQT DQTTQYGT PQV OCMKPI VJG OQPVJN[ RC[OGPVU VQ VJG $GPGĹżEKCT[ .GPFGT VJG ĹżTUV OKUUGF RC[OGPV KU VGEJPKECN FGHCWNV DWV KP RTCEVKECN VGTOU OQUV $GPGĹżEKCTKGU FQ PQV DGIKP VJG RTQEGUU WPVKN VJG VJKTF RC[OGPV KU OKUUGF +H VJG $GPGĹżEKCT[ ECPPQV TGUQNXG VJG FGHCWNVGF RC[OGPV COQWPV YKVJ VJG 6TWUVQT VJTQWIJ (QTDGCTCPEG QT QVJGT .QUU /KVKICVKQP OGCUWTGU VJG $GPGĹżEKCT[ YKNN KPUVTWEV VJG 6TWUVGG VQ DGIKP (QTGENQUWTG RTQEGGFKPIU
CALENDAR At least 30 days prior to recording Notice of Default
PROCESS
Start (Day 1-3)
Lender must contact Borrower in compliance with California Civil Code 2923.5 (Applies to certain residential DTs) Notice of Default recorded with the county recorder.
Within 10 Business Days
Trustee mails Notice of Default to borrower(s).
Within 1 Month
Mail Notice of Default parties with an interest in title.
After 3 Months
Set sale date.
At least 25 days prior to Sale Date
Send Notice of Sale to the IRS (if applicable) Post Notice of Sale Mail Notice of Sale Begin publishing Notice of Sale in an adjudicated newspaper (Must run for 3 weeks) 4GEQTF PQVKEG QH UCNG KP VJG EQWPV[ TGEQTFGTU QHſEG Trustee cannot sell for 7 days after expiration of bankruptcy court order The borrower’s right to reinstate expires
At least 20 days prior to Sale Date 5 Days Prior to Sale Date Sale Date
The property is sold to the highest bidder or reverts back to the $GPGĹżEKCT[
6JG HQTGIQKPI KU RTQXKFGF HQT IGPGTCN KPHQTOCVKQP QPN[ (QT URGEKĹżE SWGUVKQPU QP ĹżPCPEKCN VCZ QT GUVCVG RNCPPKPI YG UWIIGUV [QW EQPVCEV CP #VVQTPG[ QT %GTVKĹżGF RWDNKE #EEQWPVCPV
Investors Title Company 400 N. Tustin Ave. #260 Santa Ana, CA 92705 1HĹżEG 714-586-8400 %WUVQOGT 5GTXKEG 714-586-8424
Real Estate Encumbrances Liens, Easements, and Encroachments ENCUMBRANCE - An encumbrance is a claim or liability against real estate, held by someone other than the fee owner of the property, and therefore its value. It does not confer any possessory interest, and there is not an estate, and does not necessarily prevent the transfer of title. Encumbrances can include liens against the property, deed restrictions, easements, and encroachments. LIEN - A lien is a claim against the property which serves as collateral for a debt. The lien holder has the legal right to go to court to have the property sold to satisfy the debt, if it is not paid. Unpaid real estate taxes or mortgage payments can result in a lien against the property. Anyone who works on the property and is not paid can file a Mechanic’s lien against the property. The liens transfer with the property, so if they are not paid when the real estate is sold, then the new owner becomes liable for the debts. DEED RESTRICTIONS, (aka conditions, covenants, and restrictions, or CC&Rs) - Deed restrictions are private agreements that restrict the use of real estate in some way, and are listed in the deed - hence the name. The seller may add a restriction to the title of the property. Often, developers restrict the parcels of property in a development to maintain a certain amount of uniformity. EXAMPLE EASEMENTS - An easement is an interest in land of another, entitling the holder of the easement to a limited use or enjoyment of the land in which the interest exists. An easement does not contemplate possession. An easement is all about use. An Easement is said to be appurtenant to land if it is created to benefit and if it does benefit the owner of a parcel of land in the use and enjoyment of such land. Title to an appurtenant easement passes with a conveyance of the land benefited even though the appurtenant easement is not described in or granted in the conveyance. The land to which an appurtenant easement is attached is called the dominant tenement; the land upon which an easment, either appurtenant or in gross, constitutes a burden or serviture is called the servient tenement. Easements are created and they are transferred, subject to rules governing real property conveyancing. Easements must be created by an instrument in writing as in the case of a direct grant by deed; by reservation or by exception in a deed; or by agreement. All the essentials of a real property conveyance are generally applicable. By Grant: The owner of the property grants an easement to another for any number of purposes. The deed is usually specific as to the purpose and its location. By Reservation: This is most seen in deeds where property has been split and the grantor requires access, utilities, ingress, egress over the parcel being conveyed. Prescriptive easements: Prescriptive easements are difficult to obtain. You have to prove in a court of law that you have used this easement for 5 consecutive years. If the owner of the property bars you from using the easement for one day, the clock has to start all over again. Condemnation or eminent domain: The state or agency of the state must obtain a judgment of condemnation or eminent domain to obtain and easement. Covenant, Conditions and Restrictions: Most CC&R’s contain easements for maintenance, utilities, ingress and egress, as in the case of a condominium or a planned unit development. These CC&R’s and easements run with the property and have no termination date. These easements are acquired whether referenced in the grant of title or not.
CONTINUED ON REVERSE...
A easement agreement is created by written agreement between parties concerning a common boundary, such as a shared party wall, a fence, or a driveway, especially between adjacent townhouses or row houses. EXTINGUISHMENT - An easement is an interest in land, extinguishment of an easement is required to conform with real property conveyancing principles. Depending on the type of easement and its creation will determine how it can be eliminated. Consult with your Title Officer at Investors Title Company. LICENSES - A license, unlike an easement, is having the permission of the owner - the licensor - to enter his land for a specific purpose. Unlike an easement, the license can be rescinded at any time. A license will also terminate upon death of either the licensee or licensor, or if the licensor sells the land. Hence, although a license is similar to an easement, a license is not actually an encumbrance on the real estate and does not transfer with title. ENCROACHMENTS - An encroachment is an extension of some physical structure, such as a building, driveway, fence, or tree over the property lines from an adjoining property. Encroachments can affect the marketing of the title, and should be noted in a listing agreement or sales contract. Encroachments can best be determined by a spot survey, which is a survey showing the locations, sizes, and shapes of the buildings on a lot. Visual inspection is not as accurate and should not be relied upon if there is a question of an encroachment. The owner of the land subject to the encroachment can either sue for damages or have the structure extending over the property lines removed or trimmed back. However, the owner of the encroaching structure may have an easement by prescription if the time period of the encroachment exceeds the prescriptive time stipulated by state law for an easement by prescription.
Source: www.thismatter.com
Information deemed reliable, accuracy is not guaranteed.
Healthy Food Benefits Apples
Beans
Prevents constipation Helps hemorrhoids Lowers cholesterol Combats cancer Stabilizes blood sugar
Saves eyesight Controls blood pressure Lowers cholesterol Combats cancer Supports immune system
Aids digestion Soothes sore throat Clears sinuses Combats Cancer Boosts immune system
Apricots
Beets
Carrots
Figs
Artichokes
Blueberries
Cauliflower
Fish
Avocados
Broccoli
Cherries
Flax
Bananas
Cabbage
Chestnuts
Garlic
Protects your heart Prevents constipation Blocks diarrhea Improves lung capacity Cushions joints
Combats cancer Controls blood pressure Saves your eyesight Shields against Alzheimer's Slows aging process
Aids digestion Lowers cholesterol Protects your heart Stabilizes blood sugar Guards against liver disease
Battles diabetes Lowers cholesterol Helps stops strokes Controls blood pressure Smoothes skin
Protects your heart Quiets a cough Strengthens bones Controls blood pressure Blocks diarrhea
Controls blood pressure Combats cancer Strengthens bones Protects your heart Aids weight loss
Combats cancer Protects your heart Stabilizes blood sugar Boosts memory Prevents constipation
Strengthens bones Saves eyesight Combats cancer Protects your heart Controls blood pressure
Combats cancer Prevents constipation Promotes weight loss Protects your heart Helps hemorrhoids
Cantaloupe
Saves eyesight Protects your heart Prevents constipation Combats cancer Promotes weight loss
Protects against Prostate Cancer Combats Breast Cancer Strengthens bones Banishes bruises Guards against heart disease
Protects your heart Combats Cancer Ends insomnia Slows aging process Shields against Alzheimer's
Promotes weight loss Protects your heart Lowers cholesterol Combats Cancer Controls blood pressure
Chili peppers
Promotes weight loss Helps stops strokes Lowers cholesterol Combats Cancer Controls blood pressure
Protects your heart Boosts memory Protects your heart Combats Cancer Supports immune system
Aids digestion Battles diabetes Protects your heart Improves mental health Boosts immune system
Lowers cholesterol Controls blood pressure Combats cancer Kills bacteria Fights fungus
Healthy Food Benefits Grapefruit
Mangoes
Grapes
Mushrooms
Protects against heart attacks Promotes Weight loss Helps stops strokes Combats Prostate Cancer Lowers cholesterol
Saves eyesight Conquers kidney stones Combats cancer Enhances blood flow Protects your heart
Green tea
Combats cancer Protects your heart Helps stops strokes Promotes Weight loss Kills bacteria
Honey
Heals wounds Aids digestion Guards against ulcers Increases energy Fights allergies
Lemons
Combats cancer Protects your heart Controls blood pressure Smooths skin Stops scurvy
Limes
Combats cancer Protects your heart Controls blood pressure Smooths skin Stops scurvy
Combats cancer Boosts memory Regulates thyroid Aids digestion Shields against Alzheimer's
Controls blood pressure Lowers cholesterol Kills bacteria Combats cancer Strengthens bones
Oats
Lowers cholesterol Combats cancer Battles diabetes Prevents constipation Smooths skin
Onions
Reduce risk of heart attack Combats cancer Kills bacteria Lowers cholesterol Fights fungus
Oranges
Supports immune systems Combats cancer Protects your heart Straightens respiration
Peaches
Prevents constipation Combats cancer Helps stops strokes Aids digestion Helps hemorrhoids
Peanuts
Protects against heart disease Promotes Weight loss Combats Prostate Cancer Lowers cholesterol Aggravates Diverticulitis
Pineapple
Strengthens bones Relieves colds Aids digestion Dissolves warts Blocks diarrhea
Prunes
Slows aging process Prevents constipation Boosts memory Lowers cholesterol Protects against heart disease
Rice
Protects your heart Battles diabetes Conquers kidney stones Combats cancer Helps stops strokes
Strawberries
Combats cancer Protects your heart Boosts memory Calms stress
Sweet potatoes
Saves your eyesight Lifts mood Combats cancer Strengthens bones
Tomatoes
Protects prostate Combats cancer Lowers cholesterol Protects your heart
Walnuts
Lowers cholesterol Combats cancer Boosts memory Lifts mood Protects against heart disease
Watermelon
Protects prostate Promotes Weight loss Lowers cholesterol Helps stops strokes Controls blood pressure
Wheat germ
Combats Colon Cancer Prevents constipation Lowers cholesterol Helps stops strokes Improves digestion
Wheat bran
Combats Colon Cancer Prevents constipation Lowers cholesterol Helps stops strokes Improves digestion
Yogurt
Guards against ulcers Strengthens bones Lowers cholesterol Supports immune systems Aids digestion
Important Tax Dates The following schedule lists some of the more significant dates for California property taxes affecting property owners. Please note this is a partial list, and is intended to be used as a general guide.
July 1
o o o
Beginning of fiscal year. Assessor completes local roll and delivers to Auditor. Delinquent secured and supplemental taxes are transferred to delinquent tax roll and additional add at 1 ½% per month on any unpaid tax amounts, plus $15.00 redemption fee.
September 15 °
Last day to file assessment appeals.
October °
Original secured property tax bills are mailed out.
November 1 °
First installment secured property taxes due (delinquent 12/10).
December 10 °
First installment secured property taxes delinquent. A 10% penalty is added as of 5:00 P.M. (*)
January °
Delinquent notices are mailed out for any unpaid first installment secured property taxes.
January 1 °
Lien Date - date for valuation, date taxes attach to property as a lien; applies as of 12:01 A.M.
February 1 °
Second installment secured property taxes due (delinquent 4/10).
April 10 °
June 30 °
Second installment secured property taxes delinquent. A 10% penalty plus $10.00 cost is added as of 5:00 P.M. (*)
End of fiscal year.
*If delinquent date falls on a weekend or holiday, the delinquent date is the next business day. For information only. information deemed reliable but not guaranteed. Consult your local assessor, legal or real estate professional with questions regarding your specific situation.
History of Interest Rates Based on 30 year Fixed Rate Purchase Loans
67 year historical Interest rate chart: Year
Rate
Year
Rate
1951
3
1970
7.25
1984
13.88
1998
6.94
First Year Tracked
1953
3.25
1971
7.48
1985
12.43
1999
7.44
1944
1954
3
1972
7.38
1986
10.19
2000
8.05
Interest Rate
1955
3.5
1973
8.04
1987
10.21
2001
6.97
1956
3.75
1974
9.19
1988
10.34
2002
6.54
1957
4.5
1975
9.05
1989
10.32
2003
5.83
1958
4
1976
8.87
1990
10.13
2004
5.84
1959
5
1977
8.85
1991
9.25
2005
5.87
1960
4.5
1978
9.64
1992
8.39
2006
6.41
1965
5
1979
11.20
1993
7.31
2007
6.34
1966
5.5
1980
13.74
1994
8.38
2008
6.03
1967
5.75
1981
16.63
1995
7.93
2009
5.04
1968
6.75
1982
16.04
1996
7.81
2010
4.69
1969
8.50
1983
13.24
1997
7.6
2011
4.32
4.00%
Current Rate
$100,000
Monthly payment of:
$496.05
$200,000
Monthly payment of:
$992.09
$300,000
Monthly payment of:
$1,488.14
$400,000
Monthly payment of:
$1,984.19
$500,000
Monthly payment of:
$2,480.83
$600,000
Monthly payment of:
$2,976.28
$700,000
Monthly payment of:
$3,472.33
$800,000
Monthly payment of:
$3,968.37
$900,000
Monthly payment of:
$4,464.42
$1,000,000
Monthly payment of:
$4,960.47
Source: www.freddiemac.com
4.32%
Rate
This chart does not include Taxes, HOA fees, or Insurance charges or any other additional charges.
30 Year Fixed Rate Mortgage Loans
Rate
Based on an Interest rate of
Year
HISTORY
Year
*This information is deemed reliable but not guaranteed
Investors Title Company 400 N. Tustin Ave. #260 Santa Ana, Ca 92705 Office: 714-586-8400 Customer Service: 714-586-8424
Instant, Accurate Title Information Either use your location or enter a property address into your iPhone® iPad® or Android® mobile device - itcOnTheGo provides real-time access to valuable property information.
Make better, faster, well informed decisions with itcOnTheGo. The most important and up-to-date title information as well as a direct line to your title representative give the edge. • Key Title Information • Property Characteristics • Comparable Sales Data • Primary/Secondary Ownership ... and MORE!
es! r u t a Fe New Owner Name
ps h by Searc w Plat Ma port Re Vie perty nstantly o r P l i ep I Ema itle R T t c a m Cont Go.co e h T itcOn
Easy to get started! Go to the App store and download ITCOnTheGo to your phone. Quickly provide your customers fast and accurate property information, on the spot! This could be the deciding factor for some clients and a sale. www.itcOnTheGo.com
Call us today about our other time saving products and services!
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Title Soup Revision to California Laws for 2011 SHORT SALE DEFICIENCIES: SB 931 - Changes to existing law - No judgment shall be rendered for any deficiency under a note secured by a first deed of trust or first mortgage for a dwelling of not more than four units, in any case in which a trustor or mortgagor (seller) sells the dwelling for less than the remaining amount due at the time of sale with written consent of the holder (lender) of the first deed of trust or first mortgage. Written consent of the holder of the first deed of trust or first mortgage to that sale shall obligate that holder (lender) to accept the sale proceeds as full payment and to fully discharge the remaining amount of the indebtedness on the first deed of trust or first mortgage. If the trustor or mortgagor (homeowner) commits either fraud with respect to the sale of, or waste with respect to, the real property that secures the first deed of trust or first mortgage, this section shall not limit the ability of the lender to seek damages and use existing rights and remedies against the trustor or mortgagor or any third party for fraud or waste. This section does not apply if the trustor or mortgagor is a corporation or political subdivision of the state.
RESTRICTION ON ADVERSE POSSESSION CLAIM: AB 1684 - Effective January 1, 2011, a claim for adverse possession requires, among other things, certified records of the county tax collector showing that all state, county, or municipal taxes have been timely paid for the five-year period the property has been occupied and claimed. Existing law merely requires proof that taxes have been paid for the five-year period, not certified proof of timely payments. ADVERSE POSSESSION - The legal doctrine that allows trespassers to become owners is called “adverse possession.” Although the name sounds bad (and the results can be), the trespasser is not necessarily an intentional evildoer - far from it. The trespasser may simply have made a mistake - - relying on a faulty property description in a deed, for example. In rural areas, the person who moves in and occupies several acres may believe he owned it. Questions about ownership often wind up in court after an absent owner of rural property discovers that someone is living on his land or, when a piece of urban property is sold, a title insurance company refuses to issue insurance because the neighbor’s garage is found to be standing squarely on the property in question. If the people involved cannot work something out, the property owner may sue the trespasser, or the trespasser may bring a lawsuit to quiet title -- a request for the court to settle who owns what.
MECHANICS LIENS: SB 189 - Revisions to the mechanic’s lien law. Effective January 1, 2011, the following changes to the mechanic's lien form are mandatory: 1. There is a new statutory required notice of filing of mechanic's lien which must contain the following warning in the body of the mechanic's lien: "NOTICE OF MECHANIC'S LIEN ATTENTION! Upon the recording of the enclosed MECHANIC'S LIEN with the county recorder's office of the county where the property is located, your property is subject to the filing of a legal action seeking a court-ordered foreclosure sale of the real property on which the lien has been recorded. That legal action must be filed with the court no later than 90 days after the date the mechanic's lien is recorded. The party identified in the mechanic's lien may have provided labor or materials for improvements to your property and may not have been paid for these items. You are receiving this notice because it is a required step in filing a mechanic's lien foreclosure action against your property. The foreclosure action will seek a sale of your property in order to pay for unpaid labor, materials, or improvements provided to your property. This may affect your ability to borrow against, refinance, or sell the property until the mechanic' s lien is released. BECAUSE THE LIEN AFFECTS YOUR PROPERTY, YOU MAY WISH TO SPEAK WITH YOUR CONTRACTOR IMMEDIATELY, OR CONTACT AN ATTORNEY, OR FOR MORE INFORMATION ON MECHANIC'S LIENS GO TO THE CONTRACTORS' STATE LICENSE BOARD WEB SITE AT www.cslb.ca.gov." The notice must be in at least 10-point boldface type, and the last sentence must be in all capital letters, other than the web address of the Contractors' State License Board. Presumably the recorder will not accept the lien without this information. 2. The mechanic's lien form must also contain a proof of service under penalty of perjury showing service of both the mechanic's lien and the notice of mechanic's lien. Presumably the recorder will not accept the lien without this information. 3. The lien and notice must be served by registered mail, certified mail, or first-class mail, evidenced by a certificate of mailing, postage prepaid, addressed to the owner or reputed owner at the owner's or reputed owner's residence or place of business address or at the address shown by the building permit on file with the authority issuing a building permit for the work. If the owner or reputed owner cannot be served by this method, then the notice may be given by registered mail, certified mail, or first-class mail, evidenced by a certificate of mailing, postage prepaid, addressed to the construction lender or to the original contractor. Failure to serve the mechanic's lien, including the Notice of Mechanic's Lien, shall cause the mechanic's lien to be unenforceable as a matter of law. Information deemed reliable, accuracy is not guaranteed. Sources: www.leginfo.ca.gov, www.lovettlawusa.com, www.dot.ca.gov, www.car.org
INVESTORS TITLE Preliminary Title Reports Here at Investors Title we have always taken pride in our timely prelims and dependable, consistent Title team. In keeping with the changes made to the RPA-CA (Residential Purchase Agreement) we have taken measures to ensure that our service remains second to none. Please see reference to the 2010 changes to the RPA below:
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Page 4 • Paragraph 12
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TITLE AND VESTING: A. Within the time specified in paragraph 14, Buyer shall be provided a current preliminary title report, which shall include a search of the General Index. Seller shall within 7 Days After Acceptance give Escrow Holder a completed Statement of Information. The preliminary report is only an offer by the title insurer to issue a policy of title insurance and may not contain every item affecting title. Buyer’s review of the preliminary report and any other matters which may affect title are a contingency of this Agreement as specified in paragraph 14 B *. *
TIME PERIODS: REMOVAL OF CONTINGENCIES; CANCELLATION RIGHTS
Information deemed reliable, accuracy is not guaranteed.
Investors Title Company The Preliminary Report Explained
If any of the following items appear on your Preliminary Report, they will require immediate attention. A delay in closing may result without immediate attention. A CLAIM MECHANICS LIEN AMOUNT: $2,333.00 BY: JOHN CONTRACTOR RECORDED: JANUARY 5,2001 AS INSTRUMENT NO. 01-333
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1. MECHANICS LIEN:
A statutory lien in favor of persons contributing labor, material, supplies, etc. to a work of improvement upon real property. • A release must be recorded to be removed. NOTICE OF ACTION FILED IN: COURT: SUPERIOR CASE NO: A111223 PLANTIFF: JOHN CONTRACTOR VS. DEFENDANT: JOHN CONSUMER PURPOSE: FORECLOSE / QUIET TITLE RECORDED: MARCH 5, 2001 AS INSTRUMENT NO. 01-2222
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2. NOTICE OF ACTION:
A lis pendens. A notice of a pending law suit recorded, that warns all persons that the property is the subject matter of a litigation. Any interest acquired during the pending of the suit are subject to it’s outcome. • A release and/or a withdrawal of the action is required to be recorded to remove. SUBJECT TO PROCEEDINGS PENDING IN THE BANKRUPTCY COURT OF THE CENTRAL DISTRICT OF THE U.S. DISTRICT COURT. CALIFORNIA, ENTITLED: IN RE: JOHN CONSUMER, DEBTOR, CASE NO. AP12334, WHEREIN A PETITION FOR RELIEF WAS FILED ON THE DATE OF JANUARY 20, 2001.
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3. BANKRUPTCY:
A proceeding in the U.S. Bankruptcy Court wherein assets of a debtor (unable or unwilling to pay debts) are applied by an officer of the court in satisfaction of a creditor’s claim. • Debtor must be discharged or dismissed from the case. THE EFFECT OF A DEED, DATED JUNE 4 1991 EXECUTED BY JUNE CONSUMER AS GRANTOR, TO JOHN CONSUMER AS A GRANTEE, RECORDED JANUARY 19, 2001 AS INSTRUMENT NO. 01-12222. THE REQUIREMENT THAT THIS OFFICE BE FURNISHED WITH EVIDENCE THAT SAID DEED WAS AN ABSOLUTE CONVEYANCE, FOR VALUE, AND THAT THERE ARE NO OTHER AGREEMENTS, ORAL OR WRITTEN, REGARDING OWNERSHIP OF THE LAND DESCRIBED HEREIN.
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4. UNINSURED DEED:
A deed that has been recorded but is believed to not have been checked as to its validity. Additional information may be needed before passing title. • Call your title officer to see what might be needed in each case. THE LACK OF A RIGHT OF ACCESS TO AND FROM THE LAND.
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5. ACCESS:
A landowner’s right to have ingress to and egress from the property to public street. • This property does not have legal access. NOTICE: PARAGRAPH 4 OF THE INSURING PROVISIONS ON THE FACE PAGE OF THE POLICY WILL BE DELETED FROM THE POLICY TO BE ISSUED.
Information deemed reliable, but accuracy is not guaranteed.
Escrow Schedule for Tax Impounds
NUMBER OF MONTHS OF TAXES (Collected by new lender)*
CLOSING DATE
FIRST PAYMENT
January
March 1st
6 Months
February
April 1st
2 Month
May 1st
3 Months
April
June 1st
2 Months
May
July 1st
3 Months
June
August 1st
4 Months
July
September 1st
5 Months
August
October 1st
6 Months
September
November 1st
7 Months
October
December 1st
8 Months
January 1st
2 Months
February 1st
3 Months
2nd Inst Due
March
2nd Inst Due
November December
1st Inst Due 1st Inst Due
* The Lender may require 2 months cushion in addition
FIRST HALF TAXES July 1st - December 31st Due: November 1st Delinquent: December 10th
Information deemed reliable, accuracy is not guaranteed.
SECOND HALF TAXES January 1st - June 30th Due: February 1st Delinquent: April 10th
SB 306
Real Property Transactions An act to amend Sections 2923.5, 2923.6, 2924.8, and 2924f of, and to amend, repeal, and add Section 2943 of, the Civil Code, and to amend Section 17312 of the Financial Code, relating to real property transactions.
How does SB 306 effect Short Sales in California? SB 306 “Requires a beneficiary or his or her authorized agent provide a short-pay demand statement to an entitled person or his or her authorized agent within 21 days of receiving a demand for the statement from the entitled person or his or her agent, but would provide that if a beneficiary or his or her authorized agent elects not to proceed with the short-sale transaction, he or she is not required to provide a short-pay demand statement; instead, the beneficiary or his or her authorized agent is required to provide a written statement regarding its decision not to proceed with the transaction, within 21 days of receiving the demand for the short-pay demand statement. Further provides that if the terms and conditions of the short-pay agreement or similar document prepared by the escrow holder, approval or disapproval must be provided no more than four days after the beneficiary receives the closing statement, except as specified”. IN SHORT: 1. Once a short sale has been approved, the new law requires for the lender to respond to a short-pay demand statement within 21 days. The lender’s response to escrow may be a short-pay demand statement or even, depending on the circumstances, a written statement electing not to proceed with the proposed transaction. 2. If a lender does not respond to a request for approval of the closing statement within 4 days of receipt, under the new law, the closing statement will be considered approved, but only if it is “not clearly contrary to the terms of the short-pay agreement or the short-pay demand statement provided to the escrowholder.” The new law does not bind a lender to a short payoff amount in an offer that the lender has not approved. Additional information: Escrow must be open for the lender to be held accountable to respond within 21 days of receipt of a request for short-pay demand or statement. Section 2943 of the Civil Code applies to any lender in violation of SB 306. Be sure to seek advise from an attorney for more clarification
Please visit: www.leginfo.ca.gov and enter the bill SB 306
Information deemed reliable, but accuracy is not guaranteed.
SB 458 ~ Deficiency Judgments An act to amend Section 580e of the Code of Civil Procedure, relating to mortgages. SB 458 prohibits deficiencies on California Short Sales. California Governor Jerry Brown signed SB 458 into law on July 15, 2011. SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans. Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens. Summary of SB 458: • No deficiency judgments will be rendered for short sales agreed upon by the lender • Applies to one to four-unit dwellings in California • SB 458 does not apply to foreclosures • Prohibits lenders from demanding a seller contribution as a condition of short sale approval • If the trustor or mortgagor commits fraud with respect to the short sale, the lender can seek damages and use existing rights against the trustor or mortgagor • SB 458 does not apply if the trustor or mortgagor is a corporation, LLC, LP, or political subdivision of the state.
Sources: www.car.org / www.about.com · Information deemed reliable, accuracy is not guaranteed.
Understanding Statements of Information Q. What is a Statement of Information? A. A Statement of information is a form routinely requested from the buyer, seller and borrower in a transaction where title insurance is sought. The completed form provides the title company with information needed to adequately examine documents so as to disregard matters which do not affect the property to be insured, matters which actually apply to some other person Q. What does a Statement of Information do? A. Every day documents affecting real property -- liens,court decrees, bankruptcies, etc. -- are recorded. Whenever a title company uncovers a recorded document in which the name is the same or similar to that of the buyer, seller or borrower in a title transaction, the title company must ask, “Does this document affect the parties we are insuring?� Because, if it does, it affects title to the property and would, therefore, be listed as an exception from coverage under the title policy. A properly completed Statement of Information will allow the title company to differentiate between parties with the s ame or similar names when searching documents recorded by name. This protects all parties involved and allows the title company to competently carry out its duties without unnecessary delay. Q. What types of information are requested in a Statement of Information? A. The information requested is personal in nature, but not unnecessarily so. The information requested is essential to avoid delays in closing the transaction. You, and if applicable, your spouse or registered domestic partner, will be asked to provide full name, social security number, year of birth, birthplace, and information on citizenship. If applicable, you will be asked the date and place of your marriage or registered domestic partnership. Residence and employment information will also be requested, as will information regarding previous marriages or registered domestic partnerships. Q. Will the information I supply be kept confidential? A. The information you supply is completely confidential and only for the title company use in completing the search of records necessary before a policy of title insurance can be issued. Q. What happens if a buyer, seller, or borrower fails to provide the requested Statement of Information? A. Per the California Association of Realtors contract, sellers are required to provide the Statement of to their Escrow Holder within 7 days of acceptance of the contract. Without a Statement of Information, it would be necessary for the title company to list as exceptions from coverage; judgements, liens or other matters which may affect the property to be insured. Such exceptions would be unacceptable to most lenders - whose interest must also be insured, and will prohibit the close of escrow. Please check with your state or local land title association for applicable laws.
7. Mechanic’s lien protection 8. Forced removal of the residential structure - encroachments 9. Unrecorded liens by the homeowner’s association 10. Others have rights arising out of leases, contracts or options 11. Plain language 12. Post-policy encroachment 13. Post-policy forgery 14. Building permit violations - forced removal 15. Subdivision Law violations 16. Zoning violations - forced removal 17. Restrictive covenant violations 18. Enhanced access feature 19. Location of the land on a map 20. Exercise of mineral rights 21. Living trust coverage 22. Automatic policy increase
Note: This chart is intended for comparison purposes only and is not to be relied on for an explanation of policy coverage. Policy coverages are subject to the terms, exclusions, exceptions and deductibles shown in the policies. * Certain properites do not qualify for the Homeowners Policy
Information deemed reliable, but accuracy is not guaranteed.
6. Lack of right of access to and from the land
Complete
5. Unmarketability of title
Homeowner’s Policy
4. Defective recording of a document
Residential
3. Forgery, fraud, duress, incompetency, incapacity or impersonation
ALTA Policy
2. A document is not properly signed, acknowledged or delivered
Standard
1. Someone else owns a recorded interest in your title.
CLTA Policy
Title Policy Comparison
Title “Red Flags” A flag does not necessarily mean that the transaction is bad, but it does mean we need to take extra steps to make sure it is legitimate. Below are just a few Title Red Flags for you to be aware that your Investors Title Company title officer will be screening for when examining each transaction. 1. The property is free and clear. Sure, some property is free and clear. But most property is not. You need to ask why are there no liens? Is it because the person either has a lot of money or paid the property off after 30 years? Or is it because there is a forged reconveyance in the chain of title or because a deed of trust was missed in the title search? 2. Title was obtained by an uninsured deed. An uninsured deed in the chain of title is fine if it is a transfer from the grantor to the grantor’s family trust, or from a person to himself and his spouse as joint tenants. In both cases the grantor has not parted with title. But otherwise the deed needs to be questioned: a. Be sure the signatures on the uninsured deed match those on a previous institutional deed of trust. b. Obtain an affidavit of forgery 3. Reconveyance is not accompanied by a transaction that could have paid off the deed of trust. How often do people pay off a deed of trust with cash instead of with a new loan? Sure, it happens on occasion, but it is so rare that it is highly suspicious. The reconveyance is often a forgery. 4. 3rd Party disbursement of funds. Beware of seller’s instructions to pay a 3rd party who does not hold a secured lien. Obviously, paying off credit cards as required by a lender, HOA dues, broker’s commissions, etc... are normal. But large payments to third parties is often a flag of loan fraud in which the property value is being inflated in order to defraud the new lender. 5. Proceeds are being wired offshore. 6. No documents are executed in the escrow office. Obviously, signings outside of escrow are common. But be aware that this can be a complicating factor when combined with other flags of forgery. In fact, requiring documents to be signed in the title or escrow company’s office is often a way to verify the validity of signatures, such as when there is an uninsured deed in the chain of title. 7. Absentee owner. Naturally, sales by out of state or out of country sellers are common. But forgers prefer property where the owner is nowhere around, so be aware that this can be a complicating factor when combined with other flags of forgery. 8. MOST IMPORTANT: Your suspicions are aroused even if none of the flags described above apply. Don’t hesitate to consult your Investors Title Representative any day, any time.
Information deemed reliable, but accuracy is not guaranteed.
Understanding California Foreclosure California has a non-judicial system to carry out a foreclosure of a deed of trust. No court procedure is required for a lender to sell the property to satisfy the debt. The judicial process is available, but rarely used. The following are steps that outline what is involved in a non-judicial foreclosure: 1. PAYMENTS MISSED. Usually after the third missed payment the lender will initiate a foreclosure. This is done by issuing a Declaration of Default and Demand for Sale which is passed onto the foreclosure trustee. 2. DEPOSIT DEED OF TRUST AND NOTE WITH TRUSTEE: The lender (beneficiary) deposits the deed of trust and note with a foreclosure trustee. If there has been an assignment of the deed of trust, this assignment must also be deposited. 3. THE TRUSTEE MUST EXAMINE THE DOCUMENTS for any special provisions other than those provided by law. 4. THE TRUSTEE PREPARES THE NOTICE OF DEFAULT, which must set forth specifically the nature of the breach by the homeowner. Example: “Failure to pay the January 2005 and subsequent payments.� 5. THE NOTICE OF DEFAULT must be executed (signed) by either the trustee or the beneficiary. 6. THE TRUSTEE WILL CAUSE THE NOTICE TO BE RECORDED in the county where the property is located. The notice does not have to be notarized. 7. THE TRUSTEE OBTAINS A TRUSTEES SALE GUARANTEE (TSG). This informs the trustee of all persons who have filed a request for notices of default and sale, all other persons legally entitled to notice by mail, whether the owner of any interest is either bankrupt or in receivership, and whether there are any subordinate Federal Tax Liens.
8. 10 DAY NOTICE BY MAIL is made by certified or registered mail, return receipt requested, to all parties specified in the Trustees Sale Guarantee. 9. SERVICE OF PUBLICATION. If the Deed of Trust does not have sufficient information to mail the Notice of Default to the trustor, then it must be accomplished by hand delivery or published in a newspaper of general circulation in the county where the property is located. If published, it must be published once a week for four weeks, commencing no later than ten (10) days from the date when the Notice was recorded. 10. REINSTATEMENT WAITING PERIOD. The beneficiary must wait three (3) months from the recording of the notice of default before he proceeds any further. During this time, the trustor may reinstate the mortgage by catching up the back payments plus the costs already incurred in the foreclosure proceedings. When foreclosure proceedings are stopped by the reinstatement, a Rescission of Notice of Default is recorded by the trustee to clear the record of the notice of default. 11. FINAL CHECK BEFORE NOTICE OF SALE IS ISSUED. After three (3) months have elapsed, the trustee contacts the beneficiary to confirm that the default continues and has not been waived or impaired. 12. PUBLICATION OF THE NOTICE OF SALE. The trustee prepares and publishes a notice of sale in a newspaper of general circulation in the county where the property is located. 13. NOTICE OF SALE POSTED. The notice must be posted in a conspicuous place both on the property and in at least one public place in the city where the property is to be sold. The trustee should then prepare and have executed an affidavit of posting.
Understanding California Foreclosure 14. MAILING THE NOTICE OF SALE. The trustee should mail, by certified or registered mail copies, the notice of sale to all those entitled to receive both the ten day and the one month mailings. Corder at least fourteen days prior to the date of the sale.
the new owner may evict any person remaining on the premises by unlawful detainee procedures. The purchaser receives all fixtures and improvements, whether installed before or after the commencement of foreclosure.
15. RECORD THE NOTICE OF SALE. The trustee must record the notice with the county recorder at least fourteen days prior to the date of the sale.
**The foregoing is provided for general information only. For specific questions on financial, tax or estate planning, we suggest you contact an Attorney or Certified public Accountant.**
16. TRUSTEE’S SALE: The Trustee’s sale is an auction. • The trustee reads aloud the complete notice of sale. • Announces the amount of the opening bid (usually the value of the un paid principal and interest on the trust deed being foreclosed, along with any advances and trustee’s fees paid). • The amount of the opening bid is dictated by the Beneficiary. • If there are bids over the opening bid, the successful bidder must pay “at the drop of the hammer”, either in cash, money order, certified check, or cashier’s check. • The trustee does not guarantee title nor express an opinion as to the condition of title. 17. PREPARATION OF TRUSTEE’S DEED. This deed may be delivered to the highest bidder at the close of the sale and the payment of the bid price, or the trustee may record it as a courtesy. 18. ENDORSEMENT OF NOTE. The trustee must place on the face of the note the amount of the indebtedness and the amount for which the property was sold. 19. DISBURSEMENT OF SALE PROCEEDS. Should the property sell for more than the amount of the fees, and principal and interest owed, the proceeds of the sale shall be paid first to any junior lien holders, and when satisfied, to the trustor or current owner of record. In the State of California the sale cuts off all rights of redemption. The purchaser has right to immediate possession. After the required three (3) day notice,
Ways to Hold Title to Real Property
Parties
Division of Interests
Community Property
Community Property with Right of Survivorship
Husband and wife or domestic partners.
Husband and wife or domestic partners.
Joint Tenancy Any number of persons (can be husband and wife or domestic partners).
Equal.
Equal.
Equal.
In the names of the individual owners.
In the names of the individual owners.
In the names of the individual owners.
Possession
Equal right of possession.
Equal right of possession.
Equal right of possession.
Conveyance
Both spouses must join in a conveyance.
Title
Tenancy in Common
Partnership
Trust
Any number of persons.
Any number of persons.
Any number of beneficiaries of the trust.
Any number of interests, equal of unequal.
Partnership interests may be equal or unequal.
Beneficial interests under trust may be equal or unequal.
In the names of the individual owners.
In the name of the partnership
In the name of the trustee, “as trustee.”
Equal right of possession.
Both spouses must join in a conveyance
Conveyance by one co-owner breaks the joint tenancy.
Each co-owner’s interest may be conveyed separately.
Decedent’s Spouse 1/2 interest passes to decedent’s estate.
Decedent’s 1/2 interest passes to survivor.
Decedent’s interest passes to the survivor(s).
Decedent’s interest passes to the decedent’s estate.
Successor’s Status
Tenancy in common between devisee and survivor results.
Survivor owns entire interest.
Last survivor owns entire interest.
Creditor’s Rights
Community property is liable for the debts of either spouse incurred before or during marriage or domestic partnership.
Community property is liable for the debts of either spouse incurred before or during marriage or domestic partnership.
Co-owner’s interest may be sold at an execution sale to satisfy the co-owner’s judgement creditor.
Death
According to partnership agreement.
According to trust agreement.
Any general partner authorized by the partnership agreement may convey.
Trustee may convey in accordance with the trust agreement.
Partnership agreement provides for either termination or continuance of the partnership.
Trust agreement usually provides for distribution upon death of the settlor.
Devisees or heirs become tenants in common.
Heirs or devisee have rights in partnership interest but not in specific property.
Trust agreement usually provides for distribution upon death of the settlor.
Co-owner’s interest may be sold at an execution sale to satisfy the co-owner’s judgement creditor.
Only a partner’s right to receive profits can be executed upon by the partner’s judgement creditor.
Usually, a creditor cannot execute on a beneficiary’s interest.
** The foregoing is provided for general information only. For specific Questions on Financial, Tax or estate planning, we suggest you contact an Attorney or Certified Public Accountant**
What is Escrow? What is Escrow? If you’re like many Americans who are in the process of buying or selling a home, you may ask yourself; what is Escrow and why do I need it? Well, it’s simple… The Escrow process benefits all parties involved in a real estate transaction. Funds and documents are placed in escrow and distributed upon satisfaction of the requirements and the conditions of the transaction. These requirements are mutually agreed upon by both parties involved in the transaction. Escrow acts as a neutral third party to the transaction holding the funds and documents until the requirements of all parties are met.
Escrow Process: 1. Order a title report on the subject property.
How it Works
2. Work with the buyer's lender to insure the requirements are met.
Funds you deposit into an escrow account, are held in a non-interest bearing trust account by a neutral third party (called an escrow agent). The escrow agent’s role is to carry out the instructions agreed upon by both parties. The escrow officer will process the escrow, in accordance with the escrow instructions. When all conditions required in the escrow are met or achieved, the escrow can be "closed". Each escrow (although following a similar pattern) will be different in some respects, as it deals with your property and the transaction at hand. Escrow can be involved in anything from residential re-sales, commercial sales, business sales and refinancing to multimillion-dollar building projects and purchases made on online auctions sites.
3. Prepare many of the documents necessary for the transaction.
4. Figure tax and interest prorates and prepare closing instructions. 5. Arrange closing appointments for all parties. 6. Check all documents for completeness, compliance and accuracy. 7. Process the requirements of the lender for closing. 8. Authorize the recording of all necessary documents. 9. Disburse funds upon closing as instructed. 10. Prepare and distribute final closing statements to all parties. Information deemed reliable but not guaranteed.
Understanding
CALIFORNIAFORECLOSURE California has a non-judicial system to carry out a foreclosure of a deed of trust. No court procedure is required for a lender to sell the property to satisfy the debt. The judicial process is available, but rarely used. The following are steps that outline what is involved in a non-judicial foreclosure: 1. PAYMENTS MISSED. Usually after the third missed payment the lender will initiate a foreclosure. This is done by issuing a Declaration of Default and Demand for Sale which is passed onto the foreclosure trustee. 2. DEPOSIT DEED OF TRUST AND NOTE WITH TRUSTEE: The lender (beneficiary) deposits the deed of trust and note with a foreclosure trustee. If there has been an assignment of the deed of trust, this assignment must also be deposited. 3. THE TRUSTEE MUST EXAMINE THE DOCUMENTS for any special provisions other than those provided by law. 4. THE TRUSTEE PREPARES THE NOTICE OF DEFAULT, which must set forth specifically the nature of the breach by the homeowner. Example: “Failure to pay the January 2005 and subsequent payments.” 5. THE NOTICE OF DEFAULT must be executed (signed) by either the trustee or the beneficiary. 6. THE TRUSTEE WILL CAUSE THE NOTICE TO BE RECORDED in the county where the property is located. The notice does not have to be notarized. 7. THE TRUSTEE OBTAINS A TRUSTEES SALE GUARANTEE (TSG). This informs the trustee of all persons who have filed a request for notices of default and sale, all other persons legally entitled to notice by mail, whether the owner of any interest is either bankrupt or in receivership, and whether there are any subordinate Federal Tax Liens. 8. 10 DAY NOTICE BY MAIL is made by certified or registered mail, return receipt requested, to all parties specified in the Trustees Sale Guarantee. 9. SERVICE OF PUBLICATION. If the Deed of Trust does not have sufficient information to mail the Notice of Default to the trustor, then it must be accomplished by hand delivery or published in a newspaper of general circulation in the county where the property is located. If published, it must be published once a week for four weeks, commencing no later than ten (10) days from the date when the Notice was recorded. 10. REINSTATEMENT WAITING PERIOD. The beneficiary must wait three (3) months from the recording of the notice of default before he proceeds any further. During this time, the trustor may reinstate the mortgage by catching up the back payments plus the costs already incurred in the foreclosure proceedings. When foreclosure proceedings are stopped by the reinstatement, a Rescission of Notice of Default is recorded by the trustee to clear the record of the notice of default. 11. FINAL CHECK BEFORE NOTICE OF SALE IS ISSUED. After three (3) months have elapsed, the trustee contacts the beneficiary to confirm that the default continues and has not been waived or impaired.
12. PUBLICATION OF THE NOTICE OF SALE. The trustee prepares and publishes a notice of sale in a newspaper of general circulation in the county where the property is located. 13. NOTICE OF SALE POSTED. The notice must be posted in a conspicuous place both on the property and in at least one public place in the city where the property is to be sold. The trustee should then prepare and have executed an affidavit of posting. 14. MAILING THE NOTICE OF SALE. The trustee should mail, by certified or registered mail copies, the notice of sale to all those entitled to receive both the ten day and the one month mailings. 15. RECORD THE NOTICE OF SALE. The trustee must record the notice with the county recorder at least fourteen days prior to the date of the sale. 16. TRUSTEE’S SALE: The Trustee’s sale is an auction. • The trustee reads aloud the complete notice of sale. • Announces the amount of the opening bid (usually the value of the unpaid principal and interest on the trust deed being foreclosed, along with any advances and trustee’s fees paid). • The amount of the opening bid is dictated by the Beneficiary. • If there are bids over the opening bid, the successful bidder must pay “at the drop of the hammer”, either in cash, money order, certified check, or cashier’s check. • The trustee does not guarantee title nor express an opinion as to the condition of title. 17. PREPARATION OF TRUSTEE’S DEED. This deed may be delivered to the highest bidder at the close of the sale and the payment of the bid price, or the trustee may record it as a courtesy. 18. ENDORSEMENT OF NOTE. The trustee must place on the face of the note the amount of the indebtedness and the amount for which the property was sold. 19. DISBURSEMENT OF SALE PROCEEDS. Should the property sell for more than the amount of the fees, and principal and interest owed, the proceeds of the sale shall be paid first to any junior lien holders, and when satisfied, to the trustor or current owner of record. In the State of California the sale cuts off all rights of redemption. The purchaser has right to immediate possession. After the required three (3) day notice, the new owner may evict any person remaining on the premises by unlawful detainer procedures. The purchaser receives all fixtures and improvements, whether installed before or after the commencement of foreclosure.
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losing Costs LOAN ORIGINATION FEE
This fee covers the lender’s administrative costs in processing the loan. A one-time fee often expressed as a percentage of the loan. LOAN DISCOUNT
Often called “points”, a loan discount is a one-time charge used to adjust the yield on the loan to what market conditions demand. One point is equal to 1% of the loan amount. APPRAISAL FEE
This is a one-time fee that pays for an appraisal – a statement of property value for the lender. The appraisal is made by an independent fee appraiser. The average cost for a single family home appraisal is $400. CREDIT REPORT FEE
This one-time fee covers the cost of the credit report that is run by an independent credit reporting agency. Usually, the cost for credit reporting is $25.00. TITLE INSURANCE FEES
There are two title policies. 1. A lender’s title policy, which protects the lender against loss due to defects on title. 2. A buyer’s title policy which protects you, the buyer. Both are a one-time fee. MISCELLANEOUS TITLE CHARGES
The title company may charge fees for a title search, title examination, document preparation, notary fees, recording fees, and a settlement or closing fee. These are a one-time fee. DOCUMENTATION PREPARATION FEE
There may be a separate, one-time fee that covers preparation of the final legal papers, including the note and deed of trust. PREPAID INTEREST
Depending on the time of month your loan closes, this charge may vary from a full month’s interest to just a few days. If your loan closes at the beginning of the month, you will probably have to pay the maximum amount. If your loan closes at the end of the month, you will only have to pay a few days interest. PMI PREMIUM
In most cases, if your down payment is less than 20% of the purchase price, you will be required to pay an up front fee for mortgage insurance (which protects the lender against loss due to foreclosure). You may also be required to put a certain amount for PMI into a special reserve account (an impound account) held by the lender. TAXES AND HAZARD INSURANCE
Proven Experience. Outstanding Service.
Depending on the month that you close, you may be required to reimburse the seller for property taxes. You will also need to pay an entire year’s hazard insurance premium up front. In addition, you may be required to put a certain amount for taxes and insurance into a special reserve (an impound account) account held by the lender.
CLTA vs.ALTA CLTA vs. ALTA TITLE COVERAGE There are generally two types of title insurance policies used. CLTA (California Land Title Association) is insuring against loss including attorney fees (up to the purchase price for as long as he owns the property) due to all matters of record, fraud and forgery, and it assures that title is being vested in the person shown on the policy. The ALTA (American Land Title Association) policy covers the same items as the CLTA policy as well as many additional risks such as unrecorded mechanic's liens, assessments, encumbrances, encroachments, easements, water rights, mining claims, patent reservations, conflicts of boundary lines, shortages in area access to and from the land and other visible matter, as the title company actually performs a physical inspection before it issues an ALTA policy. Institutional lenders demand an ALTA policy as it insures the lender against loss for the entire length of the loan and the un-enforceability or invalidity of the note and deed of trust.
COVERAGE The ALTA loan policy insures the lender against loss or damage up the policy limit, plus costs and attorneys. Fees incurred under the policy that are caused by (1) title being vested in a person other than the one shown in the policy, (2) title defects, (3) liens and encumbrances, (4) lack of a right of access to the land, (5) marketability of title, (6) prior mechanics' liens, and 9&0 street improvement assessment liens. In addition, the policy insures the priority and validity of the lender's lien on the property, except to the extent that the insured encumbrance is invalid or unenforceable due to usury, the effect of any consumer credit protection, or truth inlending laws. In addition, policy coverage is extended to the following matters that are ordinarily excluded from the CLTA standard coverage policy: off-record defects, liens, encumbrances, easements, and encroachments; rights of parties in possession or rights discoverable by inquiry of parties in possession and not shown on the public records; water rights, mining claims, and patent reservations; and discrepancies or conflicts in boundary lines and shortages in areas that are not reflected in the public records.
EXCEPTIONS TO COVERAGE The primary difference between the ALTA loan policy and the CLTA Standard Coverage Policy is the omission of the standard exceptions contained in Schedule B, Part I of the CLTA policy. No standard exceptions are set out in the ALTA loan policy. Instead, the title insurer will list specific matters that constitute exceptions to the coverage if the lender's lien. Matters that constitute defects, liens, or encumbrances on the title and that would be subordinate to the insured lien are set forth in Schedule B, Part II of the ALTA loan policy. In most cases, such matters would be listed in the preliminary title report issued by the insurer before closing of the transaction and issuance of the policy and the lender would require them to be deleted from the policy. Excerpts from "California Title Insurance Practice" by John L. Hosack:
Proven Experience. Outstanding Service.
GRANTDEED
S D EE D
An official document that is used to transfer a property’s ownership A grant deed is the most common type of deed used to transfer property from a seller to buyer. Grant deeds are used both for mortgaged and non-mortgaged properties. Upon closing of the property’s purchase/sale, the title company records the grant deed at the county recorder’s office and sends the buyer the original in the mail. In order to use a grant deed, the property must be clear of any claims.
DEED of TRUST
A document that gives a lender the right to sell your property if you cannot repay your loan. A deed of trust is similar to a mortgage contract except that a deed of trust involves a third party called a trustee, usually a title insurance company, who acts on behalf of the lender. When you sign a deed of trust, you are in effect giving the trustee title (ownership) of the property, but holding on to the right to use and live in it. The lender or trustee holds the original deed of trust until you repay the loan on your home. Unlike mortgage, a deed of trust also give the lender the right to foreclose on your property without taking you to court first.
QUITCLAIMDEED A document that can be used to both transfer ownership of property and to release a person’s claim on a property. Out of all the deeds used to exchange ownership of a home, quitclaim deeds are used the least since they do not give buyers a firm assurance that the seller is the home’s legal owner. Quitclaim deeds are usually used to clear up a variety of simple ownership (title) issues. For example, Mr. and Mrs. Jones buy a home together, but 10 years later, Mrs. Jones wants to separate and wants nothing to do with the property. She simply signs a quitclaim deed to release her claim on the property.
GENERAL WARRANTYDEED A “general” warranty deed is a promise by a seller that he or she owns the property being sold, that the title is good, marketable, and insurable, and that there are no liens on the property except as agreed.
Life of a Refi Escrow Open Order Request Submitted to Escrow Escrow Opens Title Order Order Payoffs / Evidence of Insurance
Work with Lender / Processor to insure the requirements are met
Prepare documents necessary for the transaction and arrange signing appointment Check all documents for completeness, compliance, accuracy and return documents to Lender Process Funding Requirements from Lender Authorize recording of recordable documents Disburse funds per Lender approved HUD Submit final HUD to Lender
Information deemed reliable, but accuracy is not guaranteed.
TITLE TERMS ABSTRACT OF TITLE A compilation of recorded documents relating to a parcel of land. Also known as a “Preliminary Title Report.”
LIEN An encumbrance against property for money, either voluntary (i.e. mortgage), involuntary (i.e. judgment), or by operation of law (i.e. property tax lien).
MECHANICS LIEN BINDER A report issued by a title insurance company setting forth the condition of title and setting forth conditions, which, if satisfied, will cause a policy of title insurance to be issued. Also known as a “Title Commitment.”
A lien created by state law for the purpose of securing priority of payment for the value of work performed and materials furnished in construction or repair of improvements to land, and which attached to the land as well as the improvements.
QUIET TITLE PROCEEDING CHAIN OF TITLE The chronological order of conveyancing a parcel of land from the original owner to the present owner.
ENCUMBRANCE A claim, lien or charge against real property.
GRANT DEED A deed used to convey title. By law, a grant deed gives certain warranties of title.
JOINT TENANCY An undivided interest in property, taken by two or more joint tenants. The interest must equal, accruing under the same conveyance, and beginning at the same time. Upon death of a joint tenant, the interest passes to the surviving joint tenants, rather than to the heirs of the deceased.
A court action to establish or clear up uncertainty as to ownership to real property. Often required if a lien or cloud appears on title that cannot be resolved.
QUIT CLAIM DEED A deed by which the grantor gives up any claim he may have in the property.