Kevin Wakelin | Compass | A Buyer's Guide to Real Estate

Out with the Old and in with the New...

It's Time to Shake up your Real Estate!

A Buyer’s Guide To Purchase A Home With Expert Representation, Counsel & Guidance

Kevin Wakelin Lic# 01935159 1699 Van Ness Avenue, San Francisco CA 94109 415-298-4142 kevin@kevinwakelin.com kevinwakelin.com

Table of Contents

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 2

The Buying Process

Initial Consultation • Define agency relationship • Determine your needs and wants • Discuss financial qualifications • Fill out a qualification worksheet

Inspections and Disclosures • Buyer’s approval of Transfer Disclosure Statement, Preliminary Title Report, and other documents • Physical and pest inspections

Loan Qualification • Discuss financial resources • Obtain a prequalification letter

Homeowner’s Insurance • Select insurance company and coverage then give information to your escrow officer

Home Shopping • Tour properties that you consider “ideal homes”

Loan Commitment • Loan is approved

Find “Ideal Home” and Make Offer • Discuss appropriate strategies with a real estate professional, and make a reasonable offer • Review blank contract • Prepare money deposit(s)

Sign Documents • Loan documents will go to mortgage services professionals • Sign loan documents and closing-cost statements

Present and Negotiate Offer • Let your real estate professional negotiate and make the best offer based on market conditions • When both parties agree, sign the sales contract

Loan Funding • Lender sends funds

Open Escrow • Your real estate professional will open escrow • Escrow officer will order Preliminary Title Report and send copies to your real estate professional and lender • Your check is deposited

Record/Transfer Title and Close of Escrow • Deed is recorded by County Recorder’s office • Congratulations! You get the keys to your new home!

Submit Loan Application • Submit loan application to the lender with all necessary documents

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 3

Realizing the American Dream popular alternate forms of financing may make

Buying Versus Renting Trends in home prices, personal income, and mortgage

your loan even more affordable. Your real estate

rates — combined with the tax advantages of home

professional or loan officer can provide information on

ownership — make this an excellent time to turn the

the types of financing plans available to you.

dream of owning a home into a reality. If you’re thinking of purchasing a home, you’ve probably

Homeowner Tax Advantages

already asked yourself, “Can I afford to buy?” Another

When you’re figuring out how much you can afford to

good question to ask is, “Can I afford to continue

commit to monthly mortgage payments, don’t forget

renting?” No matter what you’re currently paying for

the tax advantages of homeownership. Both property

rent, your total cash outlay over a period of several

taxes and interest payments on a mortgage for an

years will probably add up to a much higher total than

owner-occupied home are currently tax-deductible.

you may have realized. The following chart shows

In the early years of a typical mortgage, all but a

how quickly the rent payments you’re making add up

small percentage of each monthly payment is used

figuring in what this money would earn invested at 5

to pay off the interest on the loan. This means that as

percent interest.

a homeowner, your annual taxable income could be substantially reduced by deducting the payments you make on property taxes and yearly mortgage interest.

Rent Per Month 10 years

$400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,500 $2,000 $2,500

Rent Payment 10 years

$62,113 $77,641 $93,169 $108,698 $124,226 $139,754 $155,282 $170,811 $186,339 $232,923 $310,565 $388,206

Rent Payment 20 years

Rent Payment 30 years

$164,413 $205,517 $246,620 $287,724 $328,827 $369,930 $411,034 $452,137 $493,240 $616,551 $822,067 $1,027,584

$332,903 $416,129 $499,355 $582,581 $665,807 $749,033 $832,259 $915,484 $998,710 $1,248,388 $1,664,517 $2,080,647

Ask your CPA (certified public accountant), attorney, or tax preparer how buying a home now would affect your tax situation.

Home Value Appreciation In addition to tax advantages, you can also benefit from any increase in the value of your home through appreciation and improvements you add for your own comfort and enjoyment.

You Can Make Homeownership a Reality Take a good look at your personal financial situation in comparison to housing price trends and mortgage

With the money you are currently spending on rent,

plans available in your community. You will probably

you could be building equity in your home. Keep in

discover that you are closer to homeownership than

mind, too, that over the years your income most likely

you had realized. Buying a home is probably one of the

will increase faster than any increase in your mortgage

biggest investments you’ll ever make. And when it’s

payment. Rent payments, on the other hand, tend to

your first home, it is especially important that you seek

increase – right along with your paycheck.

qualified assistance. Your local real estate professional or broker has the experience and expertise to help you

Mortgage Rates

find — and purchase — the home of your dreams.

As a rule of thumb, a one-point drop in mortgage rates means that half a million more families can qualify for affordable financing. Yours could be one of them!

Rates for conventional, 30-year fixed-rate mortgages remain at historically low levels and increasingly The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 4

How Much Home Can You Afford?

Home Mortgage Qualifying Worksheet Monthly Gross Income Borrower’s Annual Income

$

Co-borrower’s Annual Income

+

Total Gross Annual Income

$

Divide Total Gross Annual Income by 12 months

A. Total Monthly Gross Income

$

Allowable Monthly Housing Cost Total Monthly Gross Income (Insert Line A)

$

Multiply by .28

x

B. Allowable Monthly Housing Cost

$

How to use this worksheet: Estimate the purchase price of the home you would like to buy and the down payment you can afford. Complete each entry based upon this assumption and your personal financial situation.

Mortgage Amount

C. Home Purchase Price

$

Subtract Down Payment

-

D. Mortgage Loan Amount

$

Monthly Taxes and Insurance Home Purchase Price (Insert Line C)

$

Multiply by .0015 (Local requirements vary)

x

E. Estimated Monthly Taxes and Insurance

$

Monthly Housing Cost Monthly Payment (P&I) on 30-Year Loan

$

(Use chart based on Line D) Estimated Monthly Taxes and Insurance

+

(Insert Line E) Condo or Homeowner’s Fee (If applicable)

F. Total Monthly Housing Cost

If your Monthly Housing Cost (F) is not more than your Allowable Monthly Housing Cost (B), and your Total Monthly Cost (I) is not more than your Allowable Monthly Debt (G), you may qualify for a mortgage.

+ $

Allowable Monthly Debt Total Monthly Gross Income (Insert Line A)

$

Multiply by .36

x

G. Allowable Total Monthly Debt

$

Other Monthly Debt Payments Car Payment

$

Credit Card Payments

+

Student Loans

+

Other (Anything that won’t be paid off in six months or less) +

H. Total Other Monthly Debt Payments

$

Total Monthly Cost Total Monthly Housing Cost (Insert Line F)

$

Total Other Monthly Debt (Insert Line H)

+

I. Total Monthly Cost

$

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 5

How Much Home Can You Afford?

Home Mortgage Qualifying Rate Schedule Interest Rates Loan Amount

4.0%

4.5%

5.0%

5.5%

6.0%

$500,000 $2,387 $2,533 $2,684 $2,839 $2,998 $510,000 $2,435 $2,584 $2,738 $2,896 $3,058 $520,000 $2,483 $2,635 $2,791 $2,953 $3,118 $530,000 $2,530 $2,685 $2,845 $3,009 $3,178 $540,000 $2,578 $2,736 $2,899 $3,066 $3,238 $550,000 $2,626 $2,787 $2,953 $3,123 $3,298 $560,000 $2,674 $2,837 $3,006 $3,180 $3,357 $570,000 $2,721 $2,888 $3,060 $3,236 $3,417 $580,000 $2,769 $2,939 $3,114 $3,293 $3,477 $590,000 $2,817 $2,989 $3,167 $3,350 $3,537 $600,000 $2,864 $3,040 $3,221 $3,407 $3,597 $610,000 $2,912 $3,091 $3,275 $3,464 $3,657 $620,000 $2,960 $3,141 $3,328 $3,520 $3,717 $630,000 $3,008 $3,192 $3,382 $3,577 $3,777 $640,000 $3,055 $3,243 $3,436 $3,634 $3,837 $650,000 $3,103 $3,293 $3,489 $3,691 $3,897 $660,000 $3,151 $3,344 $3,543 $3,747 $3,957 $670,000 $3,199 $3,395 $3,597 $3,804 $4,017 $680,000 $3,246 $3,445 $3,650 $3,861 $4,077 $690,000 $3,294 $3,496 $3,704 $3,918 $4,137 $700,000 $3,342 $3,547 $3,758 $3,975 $4,197 $710,000 $3,390 $3,597 $3,811 $4,031 $4,257 $720,000 $3,437 $3,648 $3,865 $4,088 $4,317 $730,000 $3,485 $3,699 $3,919 $4,145 $4,377 $740,000 $3,533 $3,749 $3,972 $4,202 $4,437 $750,000 $3,581 $3,800 $4,026 $4,258 $4,497 $760,000 $3,628 $3,851 $4,080 $4,315 $4,557 $770,000 $3,676 $3,901 $4,134 $4,372 $4,617 $780,000 $3,724 $3,952 $4,187 $4,429 $4,676 $790,000 $3,772 $4,003 $4,241 $4,486 $4,736 $800,000 $3,819 $4,053 $4,295 $4,542 $4,796 $810,000 $3,867 $4,104 $4,348 $4,599 $4,856 $820,000 $3,915 $4,155 $4,402 $4,656 $4,916 $830,000 $3,963 $4,205 $4,456 $4,713 $4,976 $840,000 $4,010 $4,256 $4,509 $4,769 $5,036 $850,000 $4,058 $4,307 $4,563 $4,826 $5,096 $860,000 $4,106 $4,357 $4,617 $4,883 $5,156 $870,000 $4,154 $4,408 $4,670 $4,940 $5,216 $880,000 $4,201 $4,459 $4,724 $4,997 $5,276 $890,000 $4,249 $4,510 $4,778 $5,053 $5,336 $900,000 $4,297 $4,560 $4,831 $5,110 $5,396 $910,000 $4,344 $4,611 $4,885 $5,167 $5,456 $920,000 $4,392 $4,662 $4,939 $5,224 $5,516 $930,000 $4,440 $4,712 $4,992 $5,280 $5,576 $940,000 $4,488 $4,763 $5,046 $5,337 $5,636 $950,000 $4,535 $4,814 $5,100 $5,394 $5,696 $960,000 $4,583 $4,864 $5,153 $5,451 $5,756 $970,000 $4,631 $4,915 $5,207 $5,508 $5,816 $980,000 $4,679 $4,966 $5,261 $5,564 $5,876 $990,000 $4,726 $5,016 $5,315 $5,621 $5,936 $1,000,000 $4,774 $5,067 $5,368 $5,678 $5,996 $1,100,000 $5,252 $5,574 $5,905 $6,246 $6,595 $1,200,000 $5,729 $6,080 $6,442 $6,813 $7,195 $1,300,000 $6,206 $6,587 $6,979 $7,381 $7,794 $1,400,000 $6,684 $7,094 $7,516 $7,949 $8,394 $1,500,000 $7,161 $7,600 $8,052 $8,517 $8,993 *The above quotes are based on a 30-year, fixed-rate mortgage with no points and are not guaranteed.

Page 6

Selecting Your Lender A very important part of purchasing a home is finding the right lender. Listed below are ways to choose a lender and characteristics you should look for.

Questions to Consider When Selecting Your Lender • What is his or her reputation within the community? Does he or she have references?

• Is the company well known in the area? How long has the company been in business?

• Is the lender a mortgage broker? Does the lender have access to a wide variety of loan programs?

• Can the interest rates be locked in and for how long? Is there a charge?

What NOT to do When Looking for Your Lender • Do not call around asking for interest-rate quotes.

• Rates quoted over the phone are rarely locked prices. This is one way the lender gets you to come into his or her office.

• Rates can be subject to change unless they are predetermined for a specific period of time.

• Interest rates can change daily. A quote you get today may not be available at the same price tomorrow.

• The interest rate you are quoted over the phone by a lender who knows nothing about you may not be a program that will fit your needs or qualifications.

• Do not agree to loan terms that you do not understand. A qualified loan representative will explain rates and terms to your satisfaction.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 7

Getting Prequalified Most real estate professionals and lenders recommend that homebuyers get prequalified before selecting a home to purchase. This way you will be prepared to preview and negotiate your home purchase with confidence.

Reasons to Get Prequalified • With prequalification, you can determine which loan program best fits your needs.

• You will know exactly how much you are qualified for. It’s no fun to find your “ideal home” and then find out you can’t afford it.

• You can estimate your monthly payment. This will allow you to outline your budget before making this important investment.

• It allows you to see what the down payment and closing costs will be.

• If you are a first-time homebuyer, you may be able to qualify for a special first-time homebuyer program, saving money or allowing a larger purchase price.

• Meeting with your lender to preview your financial options prior to shopping for your new home affords you the opportunity to consider what you really want and need before the emotions of purchasing your home engage.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 8

Prequalification Worksheet

Date:

Requesting Professional:

Borrower #1:

Social Security#:

Borrower #2:

Social Security#:

Address:

City:

Phone#:

Cell Phone#:

Gross Monthly Income:

Monthly Debt:

Borrower #1:

Car Payments:

Borrower #2:

Credit Cards:

Other:

Alimony:

Total Income:

Child Support: Other: Total Debt:

Down Payment:

Amount:

Source:

Credit:

Bankruptcy:

Judgements:

Sales/Purchase Price:

Down Payment:

Loan Amount:

Homeowner’s Association:

Dues:

Loan Program:

LTV:

Interest Rate:

P&I:

Margin:

Index:

Caps:

PITI:

Insurance:

Private Mortgage Insurance: Housing Ratio:

Total Debt Ratio:

Comments:

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 9

Types of Loans Adjustable-Rate Mortgage Adjustable-rate mortgages have an interest rate that is adjusted at certain intervals based on a specific index during the life of the loan.

Balloon-Payment Loan A fixed-rate loan that is amortized over 30 years but becomes due and payable at the end of a certain term, may be extended, or may roll over into another type of loan.

Buy-Down Loan Buy-down loans are fixed-rate loans where the interest rate and the payment are reduced for a specific period of time by passing the interest up front to subsidize the lower payment.

Community Homebuyer’s Program A fixed-rate loan for first-time homebuyers with a low down payment (usually 3 to 5 percent), no cash, no cashreserve requirement, and easier qualifying ratios. Qualification is subject to borrower meeting income limits and attendance of a four-hour training course on homeownership.

Conventional Loan Conventional loans are sometimes more lenient with the appraisal and condition of the property. When you are buying a “fixer-upper” you may need to use a conventional loan.

FHA Loan FHA loans are insured by the Federal Housing Administration under the Department of Housing and Urban Development. They offer a low down payment and are easier to qualify for than conventional loans.

Fixed-Rate Loan A fixed-rate loan has one interest rate that remains constant throughout the life of the loan.

Graduated Payment Mortgage A fixed-rate loan that has payments starting lower than a standard fixed-rate loan, which then increases by a predetermined amount each year for a set number of years.

Mortgage Credit Certificate A first-time homebuyer program is subject to purchase price and income limits in some areas. It is actually a special tax credit and assists the buyer in qualifying for many loan programs.

Nonqualifying Loan (Assumable) Nonqualifying loans are pre-existing loans that can be assumed by a buyer from the seller of a property without going through the qualifying process. The buyer pays the seller for their equity and then starts making payments.

VA Loan VA loans are guaranteed by the Department of Veterans Affairs. A veteran must have served 180 days of active service. The maximum VA loan is currently $203,000 with no down payment.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 10

Mortgage Loan Checklist In order to expedite the mortgage loan process, please be sure that you bring everything you need to make your appointment as smooth and efficient as possible.

 Copy of Driver’s License and Social Security Card (FHA only)  Residence History • Past 24 months of residence with complete addresses • Length of time you lived at each residence • Name and address of landlord (if currently renting)

 Employment History • Most recent paycheck stubs representing one month’s pay • Employers for the past two years with complete addresses • Dates of employment at each job • Two most recent W-2s • Two most recent tax returns • Year-to-date profit and loss statement and current balance sheet (only if self-employed) • If there have been any gaps in your employment, be prepared to explain

 Loans and Credit Cards • Creditors’ names and addresses • Account numbers • Current total balances you owe • Monthly installments, payments, and total payments remaining

 Accounts • Name and address of each financial institution • Three months of bank statements for all accounts • All account numbers • All current balances and values

 Current Real Estate • Property addresses • Estimated market values • Outstanding loan balances • Amount of monthly payments • Amount of monthly rental income, if applicable

 Personal Property • Net cash value of your life insurance • Year, make, and value of your automobiles • Value of your furniture and other personal property

 If applicable for the following: • Interlocutory and final divorce documents • Award letter and most recent check from Social Security, retirement, or pension income • Copy of front and back Alien Registration Card or H1 Visa (if not a U.S. citizen) • Certificate of Eligibility & DD214 (VA Only) • Copy of school diploma/transcripts (if employed for less than two years and/or recently out of school) • Copy of pink slip on any auto purchased within the last three years that does not have a loan balance

 Check for appraisal and credit report fees The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 11

What Do You Need to Know About Escrow?

What is Escrow?

Escrow is the process by which the interests of all parties in a real estate transaction are protected, ensuring that all conditions of the sale have been met before property and money change hands.

Escrow is an independent depository wherein all funds, instructions, and documents for the purchase of your home are held, including your down payment, your lender’s funds, documents for the new loan, hazard and title insurance, inspection reports, and the grant deed from the seller. At the close of escrow, the “escrow holder” delivers these items to the appropriate parties, disburses the funds, and handles the associated paperwork.

What Does an Escrow Holder Do? The escrow holder is a neutral third party that maintains the escrow account and impartially oversees the escrow process, making sure all conditions of the sale are properly met.

The Escrow Holder’s Duties Include: • Serving as the neutral professional and the liaison between all parties involved • Requesting a preliminary title search to determine the status of title to the property • Requesting a beneficiary statement of debt or obligations that will be taken over by the buyer • Requesting a payoff demand from beneficiaries when the seller is paying off debts • Complying with the lender’s requirements as specified in their instructions to escrow • Securing releases of all contingencies or other conditions imposed on the escrow • Preparing or securing the deed and other documents related to escrow • Prorating taxes, interest, insurance, and rents • Preparing escrow instructions • Receiving purchase funds from the buyer • Receiving loan funds from buyer’s lender • Closing the escrow pursuant to instructions supplied by the seller, buyer, and lender • Recording the deed and any other documents • Disbursing funds as authorized by the instruction, including charges for title insurance, recording fees, real estate commissions, and loan payoffs • Preparing final statements for all parties involved that account for the disposition of all funds held in the escrow account

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 12

What Do You Need to Know About Escrow? (continued) The Escrow Process Your escrow is created shortly after you execute the purchase agreement to sell your home. It cannot be successfully completed until all escrow instructions have been carried out and all parties have signed escrow documents. The length of escrow can range from a few days to several months, depending on the terms of the purchase agreement. On average, an escrow closes within 30 to 45 days.

Opening the Escrow Either your real estate professional or the other professional may open the escrow depending on the county. As soon as you execute the sales agreement, your professional will place the initial deposit into an escrow account.

At the opening of escrow, you may be asked to provide identification information such as your birth date and Social Security number. This information remains confidential.

The Loan Process Unless you are paying all cash, the next step will be for you to select a lender and apply for a mortgage loan.

Your real estate professional will keep escrow and the other professional informed of your loan progress. The loan(s) on the owner’s property will be paid off at the close of escrow unless you take over their existing loan(s). When your loan is approved, the loan documents will be sent to your escrow officer, and he/she will then prepare your escrow instructions and arrange for your signing.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 13

Closing Costs Listed below are some typical closing costs that you may incur as part of your transaction. When you apply for a loan, you will receive a “good-faith estimate” of closing costs and settlement charges, along with a booklet that will explain these costs.

Appraisal This is a one-time fee. The appraisal is made by an independent fee appraiser.

Credit Report Fee A one-time fee that covers the cost of the credit report.

Document Preparation Fee There may be a separate fee that covers the preparation of the final legal documents.

Loan Discount A one-time fee used to adjust the yield on the loan to what market conditions demand. It is often called “points.”

Loan Origination Fee The lender’s administrative costs in processing the loan are covered by this fee.

PMI Premium You might be required to pay an upfront fee for mortgage insurance, depending on the amount of your down payment.

Lenders may also require monies be placed into a reserve account held by them.

Prepaid Interest Depending on the time of month your loan closes, this per-diem charge may vary from a full month’s interest to that of a few days. If your loan closes at the end of the month, you may pay interest for only a day or so.

Taxes and Hazard Insurance You may be required to reimburse the seller for property taxes, prorated depending on the month in which you close. You will also need to pay a year’s hazard insurance premium up front. Also, you might be required to put a certain amount for taxes and insurance into a special reserve account held by the lender.

Title and Escrow Fees Generally, each party is responsible for cost or fees incurred on their behalf unless otherwise negotiated. Some common exceptions include title policy and escrow fees, city and county transfer fees, and real estate commissions. Please refer to your real estate professional for prevailing customs in the area.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 14

The Life of an Escrow It all begins with the offer and acceptance skillfully negotiated by the real estate professionals representing buyer and seller.

The Buyer(s) Tenders a written offer to purchase (or accepts the seller’s counteroffer) accompanied by a good-faith deposit amount.

Applies for a loan, completing all required forms and often prepaying certain fees such as credit report and appraisal reports.

Approves and signs the escrow instructions, new loan document, and other related instruments required to complete the transaction.

Fulfills any remaining conditions specified in the contract, lender’s instructions, and/or the escrow instructions.

Approves the preliminary title report and any property disclosure(s) or inspection reports called for by the purchase and sale agreement.

Approves any financial changes by signing amendments to the escrow instructions or contract. Deposits sufficient funds in the escrow to pay the remaining down payment and closing costs.

The Lender (when applicable) Accepts the new loan application and other related documents from the buyers and begins the qualification process.

Orders and reviews the property appraisal, credit report, verification of employment, verification of deposit, preliminary title report, and other related information.

Submits the entire package to the loan committee and/or underwriters for approval. When approved, loan conditions and title insurance

Sends the new loan documents and instructions for buyer’s approval and signature.

Reviews and approves the executed loan package and coordinates the loan funding with the escrow officer.

Receives an order for the title and escrow services.

Orders the title search and examination on the subject property. Acts as the impartial “stakeholder” or depository, in fiduciary capacity, for all documents and monies required to complete the transaction, per written instructions from the principals.

With authorization from the real estate professional or principal, orders demands on existing deeds of trust and liens or judgements, if any. For an assumption or subject to loan, orders the beneficiary’s statement or the formal assumption package.

Reviews documents received in the escrow: preliminary title report, payoff or assumption statements, new loan package, and other related instruments. Reviews the condition in the lender’s instructions, including the hazard and title insurance requirements.

Prepares the escrow instruction and required documents, together with a preliminary estimate of settlement charges for the buyers in accordance with the terms of the sale.

Presents the instructions, documents, statements, loan package, and other related documents to the principals for approval.

Reviews the signed instructions and

Receives the balance of funds required from the buyers and/or the proceeds of the loan from the lender.

Determines when the transaction will be in the position to close and advises the parties involved.

Informs buyers of loan approval, terms and commitment, and expiration date. Also provides a good-faith estimate of the closing

requirements are established.

costs.

The Escrow Officer

documents, returns the loan package, and requests the lender’s funds.

Assisted by title personnel, records the deed of trust and other documents required to complete the transaction with the County Recorder and orders the title insurance policies.

Closes the escrow by preparing the final settlement statements, disbursing the proceeds to the sellers, and paying off the existing encumbrances and other obligations. Delivers the appropriate statements, funds, and remaining documents to the principals and/or the lenders.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 15

What Is Title Insurance and Why Do You Need It? The deed to your new home is not enough to ensure clear title; it is merely an instrument whereby the seller transfers right of ownership to you. It doesn’t prove that the person described as the seller is actually the clear owner, and it does not eliminate claims or rights that others may have in the property. You cannot determine from the deed what rights, liens, or claims may be outstanding against your title.

You should be protected against any undiscovered claims that may arise in the future to threaten your title. A title insurance policy provides this twofold protection in accordance with your instructions and within the parameters of the policy.

Although your mortgage lender will most likely have a title insurance policy for your loan with them, it protects only the lender’s interest in the property, not your investment, and it decreases as the mortgage is paid off. You need an owner’s title insurance policy to protect your ownership for the full amount you paid for the property.

How Does it Work?

Title insurance conducts a thorough search and evaluation of the public records, looking for situations that may cloud the title to your new home, such as: • Are all taxes and special assessments paid?

• Does anyone have special rights to the property that would limit your ownership?

• Has the death of a former owner or the filing of a will affected title to the property?

• Are there undisclosed heirs or spouses of the seller?

• Are there any lawsuits or claims recorded against the property itself, or suits or judgements filed against the seller?

What About Hidden Risks?

Claims that cannot be discovered by examination of the public records are called “hidden risks,” and they can arise long after you’ve purchased the property.

Here are just a few of the most common hidden risks that can cause a loss of title or create an encumbrance on title: • False impersonation of the true owner of the property • Forged deeds, releases, or wills • Undisclosed or missing heirs • Instruments executed under invalid or expired power of attorney • Misinterpretations of wills • Deeds by persons of unsound mind • Deeds by minors • Deeds by persons supposedly single, but in fact married • Liens for unpaid estate, inheritance, income, or gift taxes • Fraud

What About Premiums?

Unlike most forms of insurance, you would only pay for a title policy once, and this relatively modest charge insures your title for as long as you or your heirs own the property.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 16

What Is the Preliminary Title Report?

The preliminary title report is an offer to issue a policy of title insurance covering a particular estate or interest in land subject to stated exceptions.

Since these exceptions may point to potential problems with your intended purchase, it is important for all parties to review the report once it is received.

A preliminary title report provides a list of the matters that will be shown as exceptions to coverage in a designated policy or policies of title insurance, if issued currently, covering a particular state or interest in land. It is designated to provide an interim, or “preliminary,� response to an application for title insurance and is intended to facilitate the issuance of the designated policy or policies. It is normally prepared after application (order) for such policy(ies) of title insurance on behalf of the principals to a real property transaction, for the purpose of facilitating requirements relative to closing and policy issuance in form and content approved by those parties.

If a title policy is not contemplated, a preliminary title report should not be ordered. Instead, consideration should be given to requesting a condition of title report or other similar title product.

The preliminary title report states on its face that it is made solely to facilitate the subsequent issuance of a title insurance policy and that the insurer assumes no liability for errors in the report. Accordingly, any claim arising from a defect in title must be made under the title policy and not the preliminary title report.

After a title order has been placed, matters relative to the title policy coverage on the subject property are assembled in a title search package and examined by skilled technicians. This is when the preliminary title report is prepared and sent to the customer. The report contains relevant information so that the parties to the transaction will become aware of matters that will not be insured against by the title company. This report is issued before the title policy, hence the name.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 17

How You Take Title Advantages and Limitations Title to real property in California may be held by individuals, either in sole ownership or in co-ownership. Co-ownership of real property occurs when title is held by two or more persons. There are several variations as to how title may be held in each type of ownership. The following brief summaries reference eight of the more common examples of sole ownership and co-ownership.

Sole Ownership 1. A Single Man/Woman A man or woman who is not legally married. Example: John Doe, a single man.

2. An Unmarried Man/Woman A man or woman, who having been married is legally divorced. Example: John Doe, an unmarried man.

3. A Married Man/Woman, as His/Her Sole and Seperate Property When a married man or woman wishes to acquire title in his or her name alone, the spouse must consent, by quitclaim deed or otherwise, to transfer the title, thereby relinquishing all right, title, and interest in the property. Example: John Doe, a married man, as his sole and separate property.

Co-Ownership 4. Community Property The California Civil Code defines community property as acquired by husband and wife, or by either. Real property conveyed to a married man or woman is presumed to be community property, unless otherwise stated. Under community property, both spouses have the right to dispose of one-half of the community property. If a spouse does not exercise his/her right to dispose of one-half to someone other than his/her spouse, then the one-half will go to the surviving spouse without administration. If a spouse exercises his/her right to dispose of one-half, that half is subject to administration in the state. Example: John Doe and Mary Doe, husband and wife, as community property.

5. Joint-Tenancy A joint-tenancy state is defined in the Civil Code as follows: “A joint interest is one owned by two or more persons in equal shares, by a title created by a single will or transfer, when expressly declared in the will or transfer to be a jointtenancy.� A chief characteristic of joint-tenancy property is the right of survivorship. When a joint tenant dies, title to the property immediately vests in the surviving joint tenant(s). As a consequence, joint-tenancy property is not subject to disposition by will. Example: John Doe and Mary Doe, husband and wife, as joint tenants.

6. Tenancy in Common Under tenancy in common, the co-owners own undivided interests. But unlike in joint tenancy, these interests need not be equal in quantity or duration and may arise at different times. There is no right of survivorship; each tenant owns an interest which, on his or her death, vests in his or her heirs or devisees. Example: John Doe, a single man, as to an undivided three-quarters interest, and George Smith, a single man, as to an undivided one-quarter interest, as tenants in common.

7. Trust Title to real property in California may be held in a title holding trust. The trust holds legal and equitable title to the real estate. The trustee holds title for the trustor/beneficiary who retains all of the management rights and responsibilities.

8. Community Property with Right of Survivorship Community property of a husband and wife, when expressly declared in the transfer document to be community property with the right of survivorship, and which may be accepted in writing on the face of the document by a statement signed or initialed by the grantees, shall upon the death of one of the spouses, pass to the survivor, without administration, subject to the same procedures as property held in joint tenancy.

The preceeding summaries are a few of the more common ways to take title to real property in California and are provided for informational purposes only. For a more comprehensive understanding of the legal and tax consequences, appropriate consultation is recommended. There are significant tax and legal consequences on how you hold title. We strongly suggest contacting an attorney and/or CPA for specific advice on how you should actually vest your title.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 18

Common Ways to Hold Title

Parties

Community Property

Only husband and wife

Community Property with Right of Survivorship

Division of Interest

Title

Possession

Conveyance

Ownership and management of property is equal

Title is in the community and each interest is separate but management is unified

Both co-owners have

Only husband and wife should sign the acquisition deed to accept this special form of vesting title

Ownership and management of property is equal

Title is in the community subject to special survivorship right

Both co-owners have equal management and control

Require both spouses to join for valid conveyance except for security for attorney fees

Any number of persons, can be husband and wife alone or with others.

No corporations, no partnerships.

Interests are equal and undivided, yet each person controls his/her own interest

Ownership is joint. Sale by one severs tenancy as to others.

Equal right of possession

Conveyance by one owner severs the joint tenancy, but only as to that owner’s interest

Any number of persons and/or corporations and partnerships

Ownership can be divided into any number of interestsequal or unequal

Each co-owner has a separate legal title to his/her undivided interest

Equal right of possession

Each co-owner’s interest may be conveyed separately by its owner

Each partner’s share is personal property in partnership entity

Ownership is by partnership entity only

Partnerships

Any number of persons and/or corporations and partnerships. MUST be at least two.

Possession by partnership by managing partner(s)

Conveyance MUST be by designated general partners. All limited partners need to consent if sale is 100 percent of assets.

Trust Arrangements

Any individual, group, partnership, or corporations. Other special requirements.

Ownership is a personal property interest and can be divided into any number of interests

Title is held by trustee or trustees pursuant to the trust agreement

Depends on provision in trust agreement

Designated parties in the trust instrument authorize the trustee to convey property. Also a beneficiary’s interest may be sold separately (as personal property) unless restricted.

Only husband and wife

Property retains its character of community property

Title is held by trustee or trustees pursuant to the trust agreement

Depends on provision in trust agreement

By the trustee pursuant to the powers contained in the trust instrument

Joint Tenancy

Tenancy in Common

Community Property Trusts

equal management and control

Require written consent of other spouse or actual conveyance by deed. Separate interest is devisable by will.

Disclaimer: The comparisons shown above are provided for informational purposes only. This chart should NOT be used to determine how you acquire your ownership in the property. It is strongly recommended that you seek professional advice from an attorney and/or your tax advisor to determine the legal and tax consequences of how your title should be vested.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 19

Common Ways to Hold Title (continued)

Purchaser’s Status

Effect of Death

Successors’ Status

Creditor’s Rights

Presumptions

Community Property

Purchaser can only acquire 100 percent of title of community. Both spouses must consent or convey. Cannot be a co-owner with his/her spouse.

On the death of the first spouse, half interest belongs to the surviving spouse. Other half interest is devisable by will or passes by succession under probate statutes.

If the first spouse’s interest is devised by will or passes by succession, remaining spouse and devises or heirs hold title as tenants in common.

Property of the community is liable for debts of either spouse made before or during marriage. Entire property may be sold at execution sale to satisfy debt of either spouse.

Strong presumption that any property acquired by either husband or wife during marriage is community property.

Community Property with Right of Survivorship

Purchaser can only acquire 100 percent of the title. Both spouses must convey. Cannot be a co-owner with his/ her spouse.

On the death of the first spouse, the individual half interest passes to the surviving spouse, just the same as joint tenancy. No separate interest is devisable by will.

Due to surviving right, the surviving spouse owns 100 percent of the title.

Property of the community is liable for debts of either spouse made before or during marriage. Entire property may be sold at execution sale to satisfy debt of either spouse.

Property is specifically stated in the deed to be community property with right of survivorship.

Joint Tenancy

Purchaser will become a tenant in common with the other co-owners in the property as to the purchaser’s interest. Other owners may remain joint tenants.

Upon each owner’s death, his/her interest passes to the remaining survivors by operation of law. Such interests are not devisable by will.

Unless joint tenancy is broken, last surviving joint tenant owns entire property interest, which is now devisable by will.

Each owner is subjected to execution sale to satisfy debt. Joint tenancy is broken. Buyer at sale (usually creditor) becomes tenant in common with other owners.

Must be expressly stated that property acquired as joint tenancy.

Purchaser will become a tenant in common with the other coowners in the property.

Each owner’s interest is devisable by will or passes by succession under probate statutes.

No right of survivorship.

Heirs or devisee become tenants in common with other owners.

Each owner’s interest is subject to execution sale. Buyer at sale (usually creditor) becomes tenant in common with other owners.

When conveyance is unclear, tenancy in common is presumed, unless community property presumptions apply.

Purchaser acquires interest that partnership owned.

Partner’s share in partnership is devisable by will or succession under probate statutes. May cause a dissolution of partnership dependent on terms of partnership agreement.

Heirs or devisee have rights in partnership interest but not in specific property.

Partnership real property only subject to execution sale by partnership creditor. If debt of individual partner, only that partner’s share (personal property) is subject to execution sale.

Should be clear from conveyance that grantees have status.

If not, could be found to be tenants in common.

Purchaser acquires interest held by the trustee. Beneficiary’s interest may be conveyed separately (as personal property) unless restricted.

Depends on terms of trust instrument. Death of trustee may terminate or convert trust to other arrangements. Successor beneficiaries may be named in the trust instrument.

Depends on terms of trust instrument. Trust may terminate or other trust arrangements may be created.

Creditor needs to obtain a final court order for any execution sale of the beneficial interest of an order to have specific trust property to be sold to satisfy the debt.

Trust arrangement is ONLY created by written instrument. Conveyance MUST be to trustee of the trust. The trust itself is NOT a legal entity capable of holding title.

Purchaser acquires the

Trust instrument may provide for distribution on death of first spouse’s half interest. May be devisable by will. Surviving spouse may elect to have his/her interest put under testamentary trust. Seek advice of counsel.

Distribution depends on the terms of the trust instrument.

Creditor needs to obtain final court order for execution sale to satisfy debts of either or both spouses.

Property is still presumed to be community property. Status may change upon death, dissolution of marriage, or revocation of the trust.

Tenancy in Common

Partnerships

Trust Arrangements

Community Property Trusts

interest held by the trustee.

Disclaimer: The comparisons shown above are provided for informational purposes only. This chart should NOT be used to determine how you acquire your ownership in the property. It is strongly recommended that you seek professional advice from an attorney and/or your tax advisor to determine the legal and tax consequences of how your title should be vested.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 20

Real Property Tax Dates and Important Tax Information March 1

April 10

Assessment date.

Second installment becomes delinquent at 5 p.m.

Taxes become a lien at 12:01 a.m. Not yet due and payable

Ten percent penalty plus $10 administrative charge

for the fiscal tax year starting July 1. Thereafter title

attaches. If April 10 falls on a weekend or holiday, taxes are

evidence must show taxes as a lien for the coming fiscal tax

not delinquent until 5 p.m. the next business day.

year.

April 15 Last day to file for 100 percent veteran’s or homeowner’s exemption.

June 30 Property tax may become defaulted.

If you fail to pay either or both installments by 5 p.m., property tax becomes defaulted and additional costs and

To be eligible for applicable exemptions you must own and

penalties accrue. If June 30 falls on a weekend or holiday,

occupy property on March 1.

taxes must be paid by 5 p.m. the preceding business day.

July 1

Reminder

Current fiscal tax year begins.

Property may be sold at public auction after five years of

November 1 First installment due.

(First installment - July 1 to December 31) December 1

delinquency.

How Property Taxes are Determined 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

Last day to file for 80 percent veteran’s or homeowner’s

of property tax.

exemption.

Generally, the assessed value is the cash or market value

December 10 First installment becomes delinquent at 5 p.m.

Ten percent penalty added to taxes due. If December 10 falls on a weekend or holiday, taxes are not delinquent until 5 p.m. the next business day.

January 1 Calendar year begins.

at the time of purchase. This value increases not more than 2 percent per year until the property is sold or new construction is completed.

The auditor-controller applies the appropriate tax rates, which include the general tax levy, locally voted special taxes, and any city or district direct assessments. The tax collector prepares property tax bills based on the auditorcontroller’s calculations, distributes the bills, and collects the taxes.

February 1 Second installment due.

(Second installment - January 1 to June 30)

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 21

Real Property Tax Dates and Important Tax Information (continued) Can You Disagree with the Amount?

You may apply to the county assessor to see if the office will change the valuation on your home.

Additionally, appeals boards have been established for the purpose of resolving valuation problems. Appeals on regular assessments may be filed between July 2 and September 15. Appeals on corrected assessments, escaped assessments (assessments that did not take place when they should have), or supplemental assessments must be filed no later than 60 days from the mailing date of the corrected, escaped, or supplemental tax bill.

File an Appeal but Remember to Pay the Tax If you choose to appeal, still pay your tax installments in full by the appropriate deadlines or you may incur penalties. If your appeal is granted, a refund will be issued to you.

Did You Recently Purchase Property?

Although escrow prorates taxes and gives appropriate credit between buyer and seller, the actual taxes may not have been paid, and you are responsible for any unpaid taxes at the close of escrow.

Read your escrow papers and/or title report to determine if any portion of the annual taxes were paid by the previous owner before the close of escrow.

The tax collector will not send a bill for the remainder of the year in which you acquired the property unless requested. If any taxes remain unpaid, call the tax collector and request a bill. When you call, give the assessor’s identification number.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 22

Understanding Supplemental Property Taxes When was the Supplemental Real Property Tax Law enacted?

On July 1, 1983, California state law was changed to require the reassessment of property following a change of ownership or the completion of new construction.

How do supplemental taxes affect the homeowner?

Supplemental property taxes affect only individuals who are buying property or initiating new construction.

After the purchase(s) or new construction is complete, the new owner will receive a bill for supplemental property taxes, which will become a lien against the property as of the date of ownership changes or upon the date of completion.

When and how are the bills generated?

It’s not easy to predict when the new property owner will be billed. It may be as soon as three weeks after escrow closes or the new construction is complete. It also might take six months or more, depending on what

or completion of new construction actually occurred.

If the effective date is July 1, then there will be no supplemental assessment of the current tax roll and the entire supplemental assessment will be made to the tax roll being prepared. If the effective date is not July 1, the factors represent assessment on the current tax roll.

Example: The county auditor finds that the supplemental property taxes would be $1,000 for a full year. The change of ownership took place on September 15 with the effective date October 1. The supplemental property taxes would be subject to a proration factor of .75 and the supplemental tax would be $750.

Can the supplemental tax bill be paid in installments?

All supplemental taxes are payable in two equal installments. The taxes are due on the date the bill is mailed and are delinquent on specified dates depending on the month the bill is mailed as follows:

county the property is located in and the workloads of

1. If the bill is mailed within the months of July through

the county assessor, county controller/auditor, and the

October, the first installment will become delinquent on

county tax collector.

December 10 of the same year. The second installment

The assessor will appraise the property and advise the

will become delinquent on April 10 of the next year.

owner of the supplemental assessment amount. The

2. If the bill is mailed within the months of November

property owner will then have the opportunity to discuss

through June, the first installment will become

the valuation, apply for a homeowner’s exemption,

delinquent on the last day of the month following the

and be informed of their right to file an assessment

month in which the bill is mailed. The second installment

appeal. The assessor then calculates the amount of the

shall become delinquent on the last day of the fourth

supplemental tax bill to the property owner. The bill will

quarter calendar month following the date the first

identify the amount of the supplemental tax and the date

installment is delinquent.

the taxes will become due and delinquent.

Will supplemental property taxes be prorated in escrow?

How will the amount of the bill be determined?

Not usually. Unlike ordinary annual taxes, the

A formula is used to determine the tax bill. The total

supplemental tax is a one-time tax due for the period

supplemental assessment will be prorated based on the

from the date of new ownership or completion of the

number of months remaining until June 30, the end of

new construction until the end of the tax year on

the tax year.

June 30. The obligation for this is entirely that of the

The proration factor works like this: The supplemental

property owner.

tax becomes effective on the first day of the month following the month in which the change of ownership

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 23

What Is Mello-Roos in Simple English, Please?

Mello-Roos refers to “special� tax districts. Sen. Henry J. Mello and former Assemblyman Michael Roos won passage of Mello-Roos Community Facilites Act in 1982. This legislation authorized Mello-Roos Community Facilities Districts as a way to assist cities, counties, and school districts to provide new infrastructure and facilities after governmental funds were cut by the passage of Proposition 13 in 1978.

Before Proposition 13, state and local governments used income collected through property taxes to build new roads, schools, and other necessary community facilities. In order to continue building residential areas, these same governments were forced to require builders of new communities to pay for these public facilites.

Consequently, these funds were added to the cost of homes.

These price increases hurt new homebuyers, as fewer people were able to afford higher-priced homes. Those who could had to wait for the public facilites to be built.

Under Mello-Roos Community Facilities Act, landowners put up their land as collateral so that public agencies, like school districts, could raise money to pay for vital basic facilities. The public agency forms a Mello-Roos Community District that sells bonds to fund the construction of these new public facilities. A bond allows for payment over a specific amount of time through special taxes levied on property owners in that particular district. Mello-Roos taxes are paid to the county tax collector as part of the normal property tax system.

Not all new home communities are affected by Mello-Roos special taxes. For example, sometimes a new neighborhood is built within existing communities. Because public facilities are already in place, they are not suject to Mello-Roos taxes.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 24

Inspections Real estate contracts often contain contingency clauses that allow buyers to inspect the property physically (usually at their expense). This inspection provides a comprehensive review of the infrastructure of the property.

Which inspections to order is usually a matter of observation and knowledge of what is critical to a particular region or area.

Below is a list of the three most common types of inspections.

Structural Pest Control This inspection uncovers any active infestation by wood-destroying organisms. Section I on the report deals with active infestation and includes items that need immediate attention. Lenders usually want the work performed prior to funding the loan. Section II on the report will be items that could cause infestation and, if not corrected, could cause damage.

Physical Inspection This inspection encompasses roof, plumbing, electrical, heating, and any other accessible area of the structure. A detailed report will be written with recommendations for repair or for further inspection by a specialist.

Geological Inspection An inspection of the soil conditions and the stability of the ground beneath the structure can be performed by a geological engineer. You can access city records in order to research the property and its proximity to known fault lines.

Some Other Common Inspections • Water Conservation • Well and Septic • Hazardous Materials • Zoning and Building Permit • Compliance • Contractors Home Inspection • Chimney Inspection • Heating and Air Conditioning • Structural Engineering • Energy Audit

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 25

Home Warranties Home warranties offer advantages to both the buyer and seller. This policy protects the buyer by paying for certain repairs and costs of major mechanical systems and major appliances in the home such as heating and air conditioning.

There are a variety of plans available. Your professional can obtain information on the options, costs, and providers in your specific area.

Benefits of Home Warranty Coverage to the Seller • Your home may sell faster and at a higher price • Optional coverage during the listing period • Protection from legal disputes that occur after the sale increases the marketability of your home Benefits of Home Warranty Coverage to the Buyer • Warranty coverage for your major systems and built-in appliances • Protects your cash flow • Puts a complete network of qualified service technicians at your service • Low deductible

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 26

Moving Countdown Planning and preparing down to the last few details will make your move easier. The following schedule will help keep you on track.

Eight Weeks Before the Move  If you are using a professional mover, get estimates from different moving companies and choose the one that best suits your needs. If you are moving yourself, get estimates from the truck-rental companies. Be sure to reserve a truck in advance.  Draw a floor plan of your new house. This will help you decide what furniture stays and what furniture will go.  Use up things that can’t be moved – such as food in your freezer and flammable household aerosol cleaning products  Ask your real estate professional for a relocation package for your new location or contact the Chamber of Commerce in your new location and start gathering information about your new hometown Six Weeks Before the Move  Discuss costs, insurance, packing, loading, delivery, and the claims procedure with your mover  Inventory all of your possessions. Determine what can be sold and what can be donated to charity for a tax deduction.  Get copies of your records from doctors, dentists, lawyers, accountants, veterinarians, and other professional providers  Make arrangements to transfer your children’s schools records  Find out from your accountant or the Internal Revenue Service about tax-deductible moving expenses. Make sure you keep accurate records.

Four Weeks Before the Move  If you have contracted to have the mover do all the packing for you, arrange to have this task completed a day or two before loading the truck  If necessary, arrange for storage  Clean or repair furniture, curtains, or carpets that need it  Hold a garage sale. Use the extra cash to splurge a little on your new place.  If you are moving yourself, figure out how many boxes you’ll need. Many truck rental companies will provide this service.

Three Weeks Before the Move  Assemble packing materials: • Furniture pads

 Arrange to cancel utilities and services at your old home and have them activated at your

• Hand truck • Dolly

new home

• Packing tape

 Make travel and hotel reservations

• Bubble wrap

 Begin packing items you don’t need. Don’t pack too much weight in an unreinforced box.

• Crumpled newspapers • Scissors

 Make sure your cell phone works in your

• Utility knife

• Large self-stick labels

 Get car license, registration, and insurance in order,

• Felt-tip markers

new neighborhood as necessary

• Boxes and more boxes The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 27

Moving Countdown (continued) Two Weeks Before the Move  Arrange to transfer all your bank accounts to new branch locations  Make any special arrangements to move pets, such as purchasing airline reservations and traveling containers. Consult your veterinarian about how to make moving easier on your pet.  Have your car checked and serviced for the trip. Make sure tires are in good shape and all fluids are at adequate levels.  Cancel any direct deposit or automatic payments arrangements on bank accounts that you are closing  Cancel delivery services One Week Before the Move  Transfer all medical prescriptions to a pharmacy in your new location  If you will need a babysitter, arrange for moving-day service Two or Three Days Before the Move  Defrost your refrigerator and freezer  Have the movers pack your shipment  Arrange to have cash, a certified check, or a money order ready to pay the driver on delivery day  Set aside valuables and legal documents to go with you, not on the moving van  Pack clothes and toiletries to go with you; take a day or two of extra clothes in case of delay  Pack your first-day handy-items box (see below) to go with you Moving Day  Do-it-yourself movers should pick up the truck early  Make a list of every item and box loaded onto the truck  Let the mover know where you can be reached  Before you sign it, read the bill of loading. Keep it in a safe place until your goods are delivered, charges are paid, and any claims are settled.  Check your old house to make sure you’ve turned off appliances and the water  Be on hand to answer questions and give directions to mover Delivery Day  Assemble first-day handy items: • Scissors • Utility knife • Coffee cups • Soap • Pencils and paper • Masking tape • Bath towels • Trash bags • Toiletries kit • Paper plates • Toilet paper • Instant coffee/tea/soft drinks • Shelf liner

 Check off all boxes and items as they come off the truck  Install new locks  Make sure the utilities are hooked up  Unpack childrens’ and pets’ toys

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 28

Tax-Deductible Moving Expenses When you meet the Internal Revenue Service’s definition of a qualifying move, the following items are considered tax deductible: • The cost of trips to look for a home in the area of a new job. Your home shopping expedition does not have to be successful for the cost to be deductible.

• The cost of having your furniture and other household items shipped, including the cost of packaging, insurance, and storage for up to 30 days • The cost of getting your family to the new hometown, including food and lodging expenses on the trip • The cost of lodging and 80 percent of food expenses for up to 30 days in the new hometown, if these temporary living expenses are necessary due to the fact that you have not yet found your ideal home or it is not ready when you arrive.

• Certain costs associated with the sale of your former home and purchase of the new one. These expenses, including real estate commissions, legal fees, city and/or county transfer taxes, and appraisal and title fees, could be used either to reduce the gain on the sale of the previous home or to boost the basis of the new one. However, it’s usually beneficial to count them as moving expenses up to the allowable dollar limits, which gives you an immediate tax benefit.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

Page 29

How Long Should You Save Records?

Type of Record

Holding Period

Place to Save

Property Records:

As long as you own the property plus several more years as proof of paidoff loans.

Originals in safe-deposit box; copies at home.

Family Papers:

Indefinitely.

Home files.

Health Records:

Indefinitely.

Card in a safe place, stub in safe-deposit box.

Government Documents:

Indefinitely.

Passport in safe-deposit box until needed.

Estate Materials:

Indefinitely.

Originals with lawyer; copies and inventory in safe-deposit box.

Tax Records:

Seven years (required by the government).

Home files.

Home-Improvement Records:

Until home is sold and tax liability is settled.

Home files; copies in safe-deposit box.

Warranties, Guarantees:

As long as you own the items.

Home files.

Insurance Records:

Until four years after expiration of policy. Update inventory annually.

Original policies at home; copies and inventory in safe-deposit box.

Investment Records:

At least three years beyond sale for tax purposes. Retirement materials indefinitely.

Certificates in safe-deposit box, copies at home.

Bank Account Records:

Certificates of Deposit (CDs) until maturity. Others as long as needed for related tax matters.

CDs and list of accounts in safe-deposit box.

Ledger books and checks at home.

Credit Account Records:

Until obligation is discharged; longer to support tax matters.

Home files.

Master lists of assets and liabilities:

Update annually.

Home files. Copies in safe-deposit box.

Safe-Deposit Box Inventory:

Indefinitely. Update as contents change.

Home files.

Mortgages, escrow instructions and insurance policy records, deeds, loan agreements, and photos and ID numbers of valuables.

Birth, marriage, and death certificates; divorce and settlement papers; military discharge papers; adoption papers; and school transcripts and diplomas.

Copies of forms showing immunizations, hospital stays, and medical procedures.

Social Security card and passport.

Wills, trusts, and burial instructions.

Returns and supporting documents.

Receipts, contracts, and records of costs.

Contracts and proofs of purchase.

Policies and household inventory, including photos and appraisals of valuables.

Securities, buy and sell orders, canceled checks, statements, and contracts for retirement plans.

Canceled checks, registers, statements, and receipts.

List of cards and records of payment.

Record of financial accounts, property owned, and insurance coverage taxes.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

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Glossary These definitions are to acquaint you with terms commonly used in real estate transactions. These are intended to be general and brief and are not complete and wholly accurate when applied to all possible uses of the term. Please consult your real estate professional for more information or questions regarding these terms.

Acceleration Clause - A clause in a Deed of Trust or Note that accelerates or hastens the time when the debt becomes due. For example, most Deeds of Trust of loans contain a provision that the Note shall become due immediately upon the sale of transfer of title of the loan, or upon failure to pay an installment of principal or interest. This is also called a due-onsale clause.

Adjustable-Rate Mortgage - A mortgage instrument with an interest rate that is periodically adjusted to follow a preselected published index. The interest rate is adjusted at certain intervals during the loan period.

Agency - Any relationship in which one party (professional) acts for or represents another (principal) under the authority of the principal. Agency involving real property should be in writing, such as listing, trust, powers of attorney, et cetera.

Amortization - Payment of debt in regular, periodic installments of principal and interest, as opposed to interest-only payments.

Appraisal - An opinion of value based on factual analysis. Legally, an estimation of value by two discriminated persons of suitable qualifications.

APR (Annual Percentage Rate) - The yearly interest percentage of a loan, as expressed by the actual rate of interest paid. The APR is disclosed as a requirement of the federal Truth in Lending Act.

Assessed Value - The value placed upon property by the tax collector for property-tax purposes.

Assessment - A levy against property in addition to general taxes. Usually for improvements such as streets, sewers, et cetera.

Assumption of Mortgage - Agreement by a buyer to assume the liability under an existing note secured by a mortgage or Deed of Trust. The lender usually must approve the new debtor in order to release the existing debtor (usually the seller) for liability.

Balloon Note - A note calling for periodic payments that are insufficient to fully amortize the face amount of the note prior to maturity, so that a principal sum known as a “balloon� is due at maturity.

Beneficiary - (1) One for whose benefit a trust is created. (2) In states in which deeds of trust are commonly used instead of mortgages, the lender (mortgagee) is called the beneficiary.

Borrower - One who borrows funds, with the express or implied intention of repaying the loan in full or giving the equivalent.

Breach of Contract - Failure to perform a contract, in whole or in part, without legal excuse.

Broker, Real Estate - One who is licensed by the state to carry on the business of dealing in real estate. A broker may receive a commission for his/her part in bringing together a buyer and seller, landlord and tenant, or parties to an exchange.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

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Glossary Buy Down - A fixed-rate loan where the interest rate and payment are reduced for a specific period of time by paying the interest up front to subsidize the lower payment.

CalVet Loans - Real estate loans available to armed-forces veterans from California at low interest rates.

Chain of Title - The chronological order of conveyances of a parcel of land, from the original owner to the present owner.

Clear Title - Real property against which there are no liens, especially involuntary liens (mortgages).

Closing - In real estate sales, the final procedure in which documents are executed and/or recorded, and the sale (or loan) is completed.

Closing Costs - Expenses incidental to a sale of real estate, such as loan fees, appraisal fees, et cetera.

Closing Statement - The statement that lists the financial settlement between buyer and seller and the costs each must pay.

Cloud on Title - An invalid encumbrance on real property, which, if valid, would affect the rights of the owner. For example: (A) sells lot 1, tract 1, to (B). The deed is mistakenly drawn to read lot 2, tract 1. A cloud is created on lot 2 by the recording of the erroneous deed. The cloud may be removed by quitclaim deed, or if necessary, by court action.

Community Homebuyers’ Program - A fixed-rate loan with a low 3 to 5 percent down payment, no cash reserve requirement, and easier qualifying ratios. Subject to borrower meeting income limits and attendance of a four-hour training course on homeownership.

Consideration - Anything that is legally of value and induces one to enter into a contract.

Conventional Mortgage - A mortgage or Deed of Trust not obtained under a government-insured program such as Federal Housing Administration and Department of Veterans Affairs.

Conveyance - Transfer of title to land. Includes most instruments by which an interest in real estate is created, mortgaged, or assigned.

Covenants, Conditions, and Restrictions (CC&Rs) - A term used in some areas to describe the restrictive limitations that may be placed on property.

Deed - Generally, an instrument given to pass fee title or easement to property that has to be recorded with the county recorder.

Deed of Trust - An Instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor), in favor of the lender (beneficiary), and reconveyed upon payment in full.

Deposit - Money given by the buyer with an offer to purchase. Shows good faith. Also called earnest money.

Discount Points - A negotiable fee paid to the lender to secure financing for the buyer. Discount points are upfront charges to reduce the interest rate on the loan over the life or a portion of the loan’s term. One discount point equals 1 percent of the loan amount.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

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Glossary Disposable Income - Monthly income left over after fixed obligations and living expenses are paid for that period.

Documentary Transfer Tax - A state tax on the sale of real property, based on the sale price.

Down Payment - Cash portion of the purchase price paid by a buyer from his/her own funds.

Encumbrance - A claim, lien, charge, or liability attached to and binding real property. Any right to, or interest in, land that may exist in one other than the owner, but that will not prevent the transfer of fee title.

Equity - The market value of real property, less the amount of existing liens.

Execute - To put into effect: carry out. To make valid, as by signing a deed.

Fair Credit Reporting Act - A federal law giving one the right to see his/her credit report so that errors may be corrected. A lender refusing credit based on a credit report must inform the buyer which company issued the report. The buyer may see the report without charge if refused credit.

Federal Home Loan Banks - A system of 11 regional banks established by the Federal Home Loan Bank Act in order to keep a permanent supply of money available for home financing.

Fee Simple - An estate under which the owner is entitled to unrestricted powers to dispose of the property, and which can be left by will or inherited. Commonly, a synonym for ownership.

FHA (Federal Housing Administration) - A federal agency that insures first mortgages, enabling lenders to loan a very high percentage of the sale price.

FHLMC (Freddie Mac) - Federal Home Loan Mortgage Corporation. A federal agency purchasing first mortgages, both conventional and federal insured, from members of the Federal Reserve System and the Federal Home Loan Bank System.

First Mortgage - A mortgage having priority over all other voluntary liens against the property it is liening on.

Fixed-Rate Mortgage - A mortgage having a rate of interest that remains the same for the life of the mortgage.

Flood Insurance - Insurance indemnifying banks against loss by flood damage. Required by lenders (usually banks) in areas designated (federally) as potential flood areas. The insurance is private but federally subsidized.

FNMA (Fannie Mae) - Federal National Mortgage Association. A private corporation dealing in the purchase of first mortgages at discounts.

GNMA (Ginnie Mae) - Government National Mortgage Association. A federal association, working with FHA, which offers special assistance in obtaining mortgages and purchases mortgages in a secondary capacity.

Good Faith - Having good intentions, such as a buyer putting a deposit for a house or when a lender discloses all information/ costs to the loan.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

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Glossary Grant Deed - One of the many types of deeds used to transfer real property. Grantee - one to whom a grant is made, generally the buyer. Grantor - one who grants property or property rights.

Hazard Insurance - Real estate insurance protecting against loss caused by fire, natural causes, vandalism, et cetera, depending upon the terms of the policy.

Homeowner’s Association - (1) An association of people who own homes in a given area, formed for the purpose of improving or maintaining the quality of the area. (2) An association formed by the builder of condominiums of planned developments, and required by statute in some states. The builder’s participation as well as the duties of the association are controlled by statute.

Homeowner’s Insurance - Includes the coverage of hazard insurance plus added coverage such as personal liability, theft outside of the home (items stolen from the insured’s car), and other such coverage.

Housing Starts - Number of houses on which construction has begun. The figures are used to determine the availability, housing, need for real estate loans, need for labor and materials, et cetera.

Impound Account - Account held by lender for payment of taxes, insurance, or other periodic debts against real property. The borrower pays a portion of, for example, the yearly taxes, with each monthly payment. The lender pays the tax bill from the accumulated funds.

Index - An index used to adjust the interest rate of an adjustable-rate mortgage loan. For example: the change in U.S. Treasury Securities (T-bills) with a one-year maturity. The weekly average yield on securities, adjusted to a constant maturity of one year, which is the result of weekly sales, may be obtained weekly. This change in interest rates is the “index” for the change in the specific adjustable rate mortgage.

Instrument -A legal document, such as a deed, mortgage, will, lease, et cetera.

Interest Rate - The percentage of an amount of money that is paid in order to borrow money for a specified amount of time.

Interest-Rate Cap - The maximum interest-rate increase of an adjustable-rate loan. For example: A 6 percent loan with a 5 percent interest-rate cap would have a maximum interest for the life of the loan that would not exceed 11 percent.

Joint Tenancy - An undivided interest in property, taken by two or more joint tenants. The interests must be equal, occurring under the same conveyance, and beginning at the same time. Upon the death of a joint tenant, the interest passes to the surviving joint tenants rather than to the heirs of the deceased.

Late Charge - A charge to the borrower for failure to pay an installment payment on time.

Lease - An agreement by which an owner of real property gives the right of possession to another for a specified period of time and for a specified consideration (rent). Title does not pass.

Legal Description - A method of geographically identifying a parcel of land that is acceptable in a court of law. A description of a parcel of land sufficient to identify the property such as a lot and tract number.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

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Glossary Lien - An encumbrance against property for money, either voluntary or involuntary. All liens are encumbrances but all encumbrances are not liens.

Lis Pendens - A legal notice recorded to show pending litigation relating to real property and giving notice that anyone acquiring an interest in said property - subsequent to the date of the notice - may be bound by the outcome of the litigation.

Loan-Origination Fee - A one-time setup fee charged by a lender.

Loan Package - The file of all items necessary for the lender to decide to give or deny a loan. These items would include the information on the prospective borrower (loan application, credit report, financial statement, employment letters, et cetera) and information on the property (appraisal, survey, et cetera).

Maintenance Reserve - Money reserved to cover anticipated maintenance costs.

Maker - One who executes (signs) as the maker (borrower) of a note.

Marketability - Saleability. The probability of selling property at a specific time, price, and terms.

Marketable Title - Title that can be readily marketed (sold) to a reasonably prudent purchaser aware of the facts and their legal meaning concerning liens and encumbrances.

Market Price - The price a property brings in a given market. Commonly used interchangeably with market value, although not truly the same.

Material Fact - A fact upon which an agreement is based, and without which, said agreement would not be made.

Maturity - Termination period of a note. For example: A 30-year mortgage has a maturity of 30 years.

Mechanic’s Lien - A lien created by statute for the purpose of securing priority of payment for the price or value of work performed and materials furnished in construction or repair of improvements to land. The lien attaches to the land as well as the improvements.

Moisture Barrier - Insulating materials used to prevent the buildup of moisture (condensation) in walls and other parts of a building.

Mortgage - The party lending the money and receiving the mortgage. Some states treat the mortgagee as the “legal� owner, entitled to rents from the property. Other states treat the mortgagee as a secured creditor, the mortgagor being the owner. The latter is the more modern and accepted view.

Mortgage Credit Certificate (MCC) Program - A first-time homebuyer program subject to purchase price and income limits and limited to certain counties. The MCC program is actually a special tax credit and assists buyers in qualifying on almost any loan program.

Mortgage Insurance - Insurance written by an independent mortgage insurance company protecting the mortgage lender against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage of the sale price.

The federal government writes this form of insurance through the FHA and VA.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

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Glossary Power of Attorney - An authority by which one person (principal) enables another (attorney-in-fact) to act for him.

(1) General power authorizes sale, mortgaging, et cetera, of all property of the principal. Invalid in some jurisdictions. (2) Special power specifies property, buyers, price, and terms. How specific it must be varies in each state.

Preliminary Title Report - A report showing the condition of title before a sale or loan transaction. After completion of the transaction, a title insurance policy is issued.

Prepaid Items - Those expenses of property that are paid in advance and will usually be prorated upon sale, such as taxes, insurance, rent, et cetera.

Prepayment Penalty - A penalty under a note, mortgage, or deed of trust, imposed when the loan is paid before it is due.

Principal - (1) The person who gives authority to an professional or attorney. (2) Amount of debt, not including interest.

The face value of a note, mortgage, et cetera.

Private Mortgage Insurance - Insurance against a loss by a lender in the event of default by a borrower (mortgagor).

The insurance is similar to insurance by a government agency such as FHA, except that it is issued by a private insurance company. The premium is paid by the borrower and is included in the mortgage payment.

Promisee - One to whom a promise has been made, such as the lender under a promissory note.

Promisor - One who makes a promise. The borrower under a promissory note.

Promissory Note - A promise in writing, and executed by the maker, to pay a specified amount during a limited time - or on demand or at sight - to a named person, or on order, or to bearer.

Proration - To divide (prorate) property taxes, insurance premiums, rental income, et cetera, between buyer and seller proportionately to time of use, or the date of closing.

Public Records - Usually at a county level, the records of all documents that are necessary to give notice. The records are available to the public. All transactions for real estate should be recorded.

Purchase Agreement - An agreement between a buyer and seller of real property, setting forth the price and terms of the sale.

Quitclaim Deed - A deed operating as a release: intended to pass any title, interest, or claim that the grantor may have in the property, but not containing any warranty of a valid interest or title in the grantor.

Real Estate - (1) Land and anything permanently affixed to the land, such as buildings, fences, and those things attached to the buildings, such as light fixtures, plumbing and heating fixtures, or other such items that would be personal property if not attached. The term is generally synonymous with real property, although in some states a fine distinction may be made. (2) May refer to rights in real property as well as the property itself.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

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Glossary Mortgagor - The party who borrows the money and gives the mortgage.

Multiple Listing - An exclusive listing, submitted to all members of an association, so that each may have an opportunity to sell the property.

Note - A unilateral agreement containing an express and absolute promise of the signer to pay to a named person, order, or bearer a definite sum of money at a specified date or on demand. It usually provides for interest and is generally secured by mortgage or trust deed.

Notice of Action - A recorded notice that real property may be subject to a lien, or even that the title is defective, due to pending litigation. Notice of a pending suit, also called “Lis Pendens.”

Notice of Cessation - A notice stating that work has stopped on a construction project. Done to accelerate the period of filing a mechanic’s lien.

Notice of Completion - A notice, recorded to show that a construction job is finished. The length of time in which mechanic’s liens may be filed depends upon when and if a notice of completion is recorded.

Notice of Default - A notice filed to show that the borrower under a mortgage or deed of trust is in default (behind on the payments).

Offer - A presentation or proposal for acceptance, in order to form a contract. To be legally binding, an offer must be definite as to price and terms.

Origination Fee - A fee made by a lender for making a real estate loan. Usually a percentage of the amount loaned, such as 1 percent.

Owner Occupied - Property physically occupied by the owner.

Ownership - Rights to the use, enjoyment, and alienation of property, to the exclusion of others. Concerning real property, absolute rights are rare, being restricted by zoning laws, restrictions, liens, et cetera.

Payment Cap - A maximum amount for a payment under an adjustable-rate mortgage, regardless of the increase in the interest rate. If the payment is less than the interest alone, negative amortization is created.

Payoff - The payment in full of an existing loan or other lien.

Personal Property - Any property that is not designated by law as real property.

Piggyback Loan - A loan made jointly by two or more lenders on the same property under one mortgage or trust deed.

One 90 percent loan, for example, may have one lender loaning 80 percent and another (subordinate) lender loaning the top 10 percent (high-risk portion).

PITI (Principal, Interest, Taxes, and Insurance) - Used to indicate what is included in a monthly payment on real property. Principal, interest, taxes (property), and insurance (hazard) are the four major portions of a usual monthly payment.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

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Glossary Reconveyance - An instrument used to transfer title from a trustee to the equitable owner of real estate when title is held as collateral security for a debt. Most commonly used upon payment in full of a trust deed. Also called a deed of reconveyance or release.

Recording - Filing documents affecting real property as a matter of public record, giving notice to future purchasers, creditors, or their interested parties. Recording is controlled by statute and usually requires the witnessing and notarizing of an instrument to be recorded.

Recording Fee - The amount paid to the recorder’s office in order to make a document a matter of public record.

RESPA - Real Estate Settlement Procedures Act. A federal statute effective June 20, 1975, requiring disclosure of certain costs in the sale of residential (one- to four-family) improved property which is to be financed by a federally insured lender.

Right of Survivorship - The right of a survivor of deceased person to the property of said deceased. A distinguishing characteristic of a joint tenancy relationship.

Sales Contract - Another name for a sales agreement, purchase agreement, et cetera.

Second Mortgage - A mortgage that ranks after a first mortgage in priority. Properties may have two, three, or more mortgages, deeds of trust, or land contracts, as liens at the same time. Legal priority would determine whether they are called a first, second, third, et cetera, lien.

Septic System - A sewage system, whereby waste is drained through pipes and a tile field (a system of clay tiles and gravel) into a septic tank. Found in areas where city or county sewers have not yet been installed.

Septic Tank - An underground tank into which a sanitary sewer drains from a building. The sewage is held until bacterial action changes the solids into liquids or gases, which are then released in the ground.

Simple Interest - Interest computed on principal alone, as opposed to compound interest.

Special Assignment - Lien assessed against real property by a public authority to pay costs of public improvements (sidewalks, sewers, street lights, et cetera) that directly benefits the assessed property.

Specific Performance - An action to compel the performance of a contract, when money damages for breach would not be satisfactory.

Statement of Identity - Also called Statement of Information, a confidential form filled out by buyer and seller to help a title company determine if any liens are recorded against either. Very helpful when people with common names are involved.

Statute - A law that comes from a legislative body. A written law, rather than law established by court cases.

Subordinate - To make subject to or junior to.

Succession - The passing of real property by will or inheritance, rather that by grant or deed or any other form of purchase.

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

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Notes

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

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Notes

The information contained herein has been provided by various sources which may include the public records, title companies, multiple listing service, mortgage companies, or others. Pacific Union has not verified or investigated the accuracy of this information.

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The best Time to Buy a Home is Always Five years Ago - Ray Brown Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy - Marshall Field

Don't wait to buy real estate. buy real estate and wait - T. Harv Eker

The ache for home lives in all of us, the safe place where owe can go as we are not be questioned! - Maya Angelou

Kevin Wakelin Lic# 01935159 1699 Van Ness Avenue, San Francisco CA 94109 415-298-4142 kevin@kevinwakelin.com kevinwakelin.com