Руководство покупателя

Подробное описание алгоритма действий

В нижеизложенных материалах вы найдёте подробное описание пошаговых действий, которым должен следовать каждый покупатель, желающий приобрести дом в Лос-Анджелесе. Приведённые ниже инструкции содержат конкретный план, который необходим каждому покупателю, чтобы извилистый путь от выбора недвижимости до получения ключей от вашего нового дома вы смогли пройти легко и уверенно!

Важное значение агента по недвижимости

Агенты по недвижимости являются неотъемлемой и важной частью всего процесса покупки жилья. Именно правильный выбор агента по недвижимости влияет на успех в покупке дома вашей мечты или инвестировании в недвижимость. Например, округ Лос-Анджелес предоставляет одни из самых роскошных и элитных районов во всём штате Калифорния. Покупка дома в подходящем вам районе позволит вам вписаться в комьюнити ваших единомышленников. Вашему агенту по недвижимости потребуется время, чтобы понять ваши личные инвестиционные возможности и цели. Они помогут вам ознакомиться со всеми юридическими документами, которые необходимо подписывать при покупке дома в Лос-Анджелесе. Это многоуровневый процесс, который не может быть успешно завершён без квалифицированой помощи опытного специалиста по недвижимости.

Специалисты эффективно направляют и помогают вам на протяжении всего пути и вам не нужно со всеми задачами справляться самостоятельно. Правильный выбор агента по недвижимости позволит вам быть уверенным в той стоимости, которую вы платите за ту или иную недвижимость. Существуют различные стадии рынка, на которых у вас потенциально может быть возможность приобрести дом. Ваш агент по недвижимости будет точно знать, какой этап лучше подходит для вас. Эксперты смогут предложить правильные решения как для покупателя жилья, так и для инвестора в недвижимость! Благодаря своему многолетнему опыту в области управления, они могут проводить сравнительный анализ рынка всех объектов недвижимости в интересующем вас районе, чтобы убедиться, что вы приобретаете дом по реальной рыночной стоимости. Если продавец выставил свою недвижимость на продажу по завышенной цене, то именно ваш агент по недвижимости сможет договориться о такой финансовой сделке, которая будет лучше всего для вашего бюджета.

Кроме того, агенты по недвижимости помогут вам выбрать район, где вы сможете чувствовать себя как дома. К счастью, квалифицированный агент по недвижимости действительно хорошо знает районы и сможет предоставить вам полную и ясную картину жизни комьюнити, благодаря которой вы примите правильное решение для вас и вашей семьи, которое станет выгодным экономическим вложением для вашего долгосрочного финансового будущего. Агенты по недвижимости предоставляют вам комплексный подход, основанный на поддержке и доверии, благодаря которому вы совершите свою успешную и выгодную покупку. Они понимают ваши желания и потребности и могут воплотить ваши мечты о недвижимости в Лос-Анджелесе в реальность.

КАК КУПИТЬ ДОМ

Первые шаги к покупке дома в Лос-Анджелесе

Каждый отдельный шаг в рамках всего процесса покупки жилья чрезвычайно важен. Сперва покупатель должен решить, в каком именно районе Лос-Анджелеса он хочет жить и какую сумму он готов потратить на свой новый дом. Как только он определяется с этими вопросами, покупатель должен выбрать подходящего агента по недвижимости. Агент по недвижимости покажет покупателю все дома, в настоящее время выставленные на продажу на рынке в предпочтительном ценовом диапазон для покупателя. Как только покупатель находит для себя подходящий дом, его агент по недвижимости подготавливает договор купли-продажи, включающий предложение по стоимости для продавца недвижимости.

После того, как продавец принимает предложение, покупатель и продавец подбирают эскроу-компанию, которая будет посредником при условном депонировании. Эта компания несёт большую ответственность, потому что она будет отвечать за проверку свидетельства о праве собственности, чтобы каждая из сторон знала о наличии каких-либо проблем, прежде чем покупатель захочет завершить сделку по покупке жилья. Проблемы могут быть связаны с оформленным ранее залогом на имущество или неоплаченными ипотечными кредитами, которые новый покупатель не хочет брать на себя. Компания-посредник, занимающаяся оформлением права собственности и открытием эскроу-счёта, обнаружит эти проблемы. Благодаря этому, покупатель будет уверен, что все вопросы решены, прежде чем сделка по покупке дома будет закрыта.

Договор купли-продажи, как правило, заключается с залогом в виде задатка, предоставляемого покупателем. Это является доказательством для продавца и кредитора, что покупатель действительно серьёзно относится к покупке обсуждаемого дома.

Initiating the Escrow Process

После того, как соглашение о покупке принято и официально подписано обеими сторонами, открывается эскроу-счёт. Заявленные деньги, которые первоначально были предоставлены покупателем, будут депонированы, а затем эскроу-компания позаботится о том, чтобы все средства были должным образом оформлены для обеспечения быстрой транзакции. Эскроу-компания размещает заказ у титульной компании (Title Company), которая является специализированным агентством по правам собственности, чтобы получить предварительный отчёт, в котором будут показаны все записи о рассматриваемом имуществе. Как описано выше, предварительный отчёт покажет всем заинтересованным сторонам, есть ли какие-либо проблемы с правом собственности, которые могут помешать покупателю получить необременённое свидетельство о праве собственности после того, как покупатель официально закроет сделку по приобретению дома.

Устранение непредвиденных обстоятельств

Период для решения возможных непредвиденных обстоятельств существует для того, чтобы покупатель и продавец могли собрать все необходимые документы, требуемые для транзакции. Приведенные ниже документы будут собраны эскроу-компанией:

Документы, свидетельствующие о завершении физического осмотра имущества
Документы, подтверждающие результаты проверки на вредителей, проведённой в отношении имущества
Официальная оценка имущества
Заявление о раскрытии информации о передаче (TDS/ Transfer Disclosure Statement), предоставленное продавцом
Предварительный отчёт титульной компании о праве собственности
Официальная подпись кредитора об одобрении кредита, который они предоставляют покупателю
Все официальные данные
Любые другие документы, необходимые для завершения этой транзакции

Получение страховки домовладельца

Потенциальный покупатель должен иметь страховку домовладельца, чтобы иметь право на покупку дома в Лос-Анджелесе. Этот вид страхования домовладельца, приобретаемый покупателем, обычно устанавливается между покупателем и кредитором до заключения любых других соглашений с продавцом или эскроу-компанией. Покупатель должен предоставить страховой полис домовладельца эскроу-компании до истечения срока действия эскроу-счёта. Страховой полис домовладельца так же должен соответствовать требованиям кредитора, чтобы покупатель мог использовать его для сделки. Агент покупателя и эскроу-компания работают в тандеме с эскроу-компанией, чтобы подтвердить, что страховой полис домовладельца покупателя оформлен до закрытия эскроу-счёта.

Первоначальный взнос и депозиты на покрытие расходов по завершению сделки

Задаток в виде депозита — это деньги, которые покупатель передаёт продавцу или агенту продавца. Эта сумма является доказательством того, что покупатель намерен купить недвижимость у продавца. Покупатель может внести эту сумму с помощью чека, наличных, брокера или банковского перевода. Всякий раз, когда лицензированная фирма или агент по недвижимости принимает какие-либо суммы денег вместе с предложением, они обязаны зачислить деньги на трастовый или эскроу-счёт в течение 3 дней.

Банковский перевод чаще всего используется покупателем для внесения своих денег на эскроу-счёт. Это позволяет эскроу-компании иметь быстрый доступ к средствам, когда транзакция будет официально закрыта. Сумма, которую покупатель должен внести, уже определена и внесена в договор купли-продажи. Затем эскроу-компания предоставляет покупателю документ, указывающий предположительную стоимость окончательного закрытия сделки по покупке дома.

Подписание кредитных документов

Если покупателю нужен кредит/ипотека, кредитор предоставляет покупателю все необходимые кредитные документы, которые нужно подписать, чтобы эскроу-счёт был официально закрыт. Покупатель обычно просматривает и подписывает эти документы на встрече, которую для них назначает эскроу-компания.

Закрытие эскроу-счёта

Как только условия договора купли-продажи урегулированы, покупатель может подписать все необходимые документы по закрытию сделки. Если покупателю нужен кредит/ипотека, они вносят все необходимые средства для закрытия сделки, а кредитор предоставляет подтверждение одобрения кредита с официальной печатью. После того как кредитор подтверждает кредит и подписывает кредитные документы, он вносит согласованную сумму кредита. Публичная запись делается на основании акта, депонированного продавцом. После завершения всех этих шагов покупатель официально становиться владельцем своего нового дома в Лос-Анджелесе.

STEPS

The Initial Home Search

First you need to decide whether or not you want to use cash or a loan to purchase your home. If you choose to purchase your home with cash you don’t need the assistance of a lender to provide you with money. If you don’t have the necessary money upfront to pay for the home, you must use a lender to provide you with financial assistance. The lender is considered the entity or institution that is providing the buyer with the loan they need to make the purchase on their home. In Los Angeles, you will most likely receive some form of a Cal HFA loan depending on your unique situation.
The buyer must first be prequalified by the lender to make sure they meet the initial requirements to receive a loan from that specific lender.
The buyer partners with a real estate agent of their choice to go look at the houses for sale in Los Angeles that are within their price range.
The buyer finds the perfect home for them and makes an offer on it to the person who is selling the home.
The broker/agent presents the offer made by the buyer to the seller to see if they have a counteroffer to request.
The seller presents their counteroffer to the broker/agent so the price negotiations can start.

The Escrow Process is Initiated

Once the price negotiations are complete between the buyer and the seller, the purchase agreement and amendments will be created and signed by both parties.
The purchase agreement contains the title and escrow information the buyer must adhere to.
The purchase agreement is then accepted by the buyer, seller, and third-party.

An Official Title-and-Escrow Order Is Opened

At this point, the buyer is able to deposit their earnest money if this was agreed upon in the original purchase agreement.
The buyer is also able to have an inspection and appraisal completed on the home as well if they so choose.
A preliminary report is issued by the title company.
The buyer will then receive official approval for the total amount of their loan from the lender if they aren’t able to use cash. If the buyer has enough cash to purchase their home, they do not need to use the financial assistance of a lender.
The buyer purchases homeowner’s insurance. This insurance is usually obtained during the process of receiving the loan for the home.
The escrow office will now prepare all the necessary documents and receive signatures from both parties involved in this transaction.

Closing Document and Cost Exchange

The buyer now deposits the money that is required for their closing costs if they have cash. This amount is predetermined by the type of loan the buyer choses to receive. The seller will then provide the transfer deed to that will be deposited in escrow.
The official loan documents will be signed by the buyer.
An official record will be made after the transaction documents are completed.
The escrow will then be closed and the funds are distributed to the appropriate parties given the transaction is complete.

The Buyer Officially Owns the Home

After all the above steps have been properly followed, the buyer now officially becomes the new owner of a wonderful Los Angeles home!

WHY TITLE INSURANCE IS IMPORTANT

When you first purchase a new home in Los Angeles, the buyer is the person who receives the title to whatever property they’re buying. The title they receive gives them rights as the primary owner and main possession holder of the land. There are certain stipulations that are made during the initial buying process that need to be worked out before the buyer officially closes on their new home. If the buyer doesn’t catch these potential issues early on, they may undergo limits to their property rights. The interests of the mortgage lender may also be affected if these concerns aren’t addressed before closing.

Title insurance is an extremely important part of the home owning process that can’t be overlooked. This insurance gives protection to the buyer for any potential title defects that may exist as well as any losses that may occur because of preexisting liens placed on the property. This information may be missed during a routine title search so buyers need title insurance to protect themselves against any potential hazards that may arise.

These title defects can exist as:

A faulty deed that was forged and doesn’t properly transfer the title through a real estate transaction
Heirs that appear to have certain claims to the property after the buyer has already closed
Public record mistakes that cause problems with proper title transfer
Documents that are executed through an expired power of attorney.

California Titles: Two Types

Within the state of California, buyers can utilize two different types of title insurance policies when they are in the market to purchase their first home. These two insurance policies are American Land Title Association and California Land Title Association. The lender is ensured by CLTA and the property owner is ensured by ALTA. Both the lender and property owner are insured and protected under these separate policies. The ALTA is more so an extended coverage policy for the lender if there is any information that is not covered by the CLTA policy. Once the property is officially sold, the CLTA policy is no longer in effect. On the other hand, the ALTA policy stays in effect until the loan is completely paid off.

The Proper Title Research

A proper title search consists of a deep dive into the public records available for the property in question. For most cases, the attorney or title company will utilize various legal documents to officially confirm that the seller is actually the rightful owner of the property that is up for sale. In addition to that, the title search will uncover any other legal and financial claims that may have been previously placed on the property.

This thorough search is completed before a title insurance policy is officially recommended. Through this search, we will find:

Any information that may prevent the buyer from legally receiving ownership of the title
Mortgages, judgements, or liens that haven’t been paid on the title
Any restrictions or easements that are currently placed on the title
Notary acknowledgments that aren’t properly documented

Our team is here to provide any necessary support or help the attorney and title company may need. We will issue the buyer, seller, and lender a preliminary report that allows each part to fully understand all title defects. This will keep the buyer from closing on the house before they are certain they will receive proper ownership and rights to a clear title.

WHAT IS AN APPRAISAL?

It’s extremely important for every buyer to get an appraisal on any home or property they want to buy in Los Angeles. This will allow them to feel completely confident that they aren’t paying more money for the house than what’s its actually worth. Unfortunately, the in-person appraisal options aren’t usually very cheap and the buyer is commonly the sole payer for an appraisal.

Once both parties agree on an appropriate sales price for the property in question, the appraisal process officially begins. If the buyer isn’t using cash, the lender will provide the buyer with a third-party appraiser who will complete a professional assessment to determine the true value of the home. The process includes the appraiser completing a walkthrough of the internal and external properties of the home while also understanding the other prices of homes within the neighborhood. This comparison is completed as a means for the appraiser to get a solid understanding of the typical values of homes within that specific area. The current market value of the home is determined once this process is complete.

If the appraiser determines that the current market value of the home is less than the seller’s asking price, the seller may need to lower this price in order for the buyer to make the purchase. This is especially true if the buyer can’t pay cash so they are using a lender to loan them the money they need. The lender will not loan the buyer more than what the appraiser sets the market value to be so the seller needs to either lower their asking price or the buyer may need to find a different home that will be within the financial loan range of their lender. This problem can be avoided if the buyer decides to pay cash instead because they won’t have to worry about the loan process or paying interest on the mortgage for the foreseeable future.

Buyers should always get an appraisal because it will allow them to fully understand if they are paying a fair market price for the property in question.

THE ENTIRE ESCROW PROCESS

Once the offer/contract is agreed upon by both the buyer and the seller, official copies of the contract are distributed to the attorneys of both parties. The attorneys are charged with reviewing and approving said contract to ensure their clients are receiving the best deal possible. After this is completed, a professional assessment will be made during the home inspections to ensure the home is satisfactory. If there are any issues found, they will be addressed and negotiated by the buyer and seller. Additionally, if the buyer isn’t using cash, they will apply for a mortgage loan and make a commitment the lender of their choice.

During this time, the seller needs to collect all relevant documents such as a survey, paid tax receipts, a title search, and any other legal documents they may have in their possession. This can also include mortgage statements that they will also hand off to their attorney. Their attorney will then update the survey and title search as necessary so they can send this information to the buyer’s attorney for official review. The buyer’s attorney will complete a thorough review of the documents before participating in a title examination.

The Importance of a Preliminary Report

The preliminary report must be prepared before the title insurance policy is officially issued to represent who the legal owner of a specific piece of land or property is. This also contains any defects or liens on the property that won’t be covered in the following title insurance policy.

It’s extremely important that buyers know the difference between the Preliminary Title Report and a Full Chain of Title report. The biggest different is that the Preliminary Title Report contains the most up to date vesting deed and the Full Chain of Title report incorporates multiple copies of every single transfer copy of the relevant source documents within the past 30 years.

The homebuying process would not be fully complete without the preliminary title report. This report decides how in what way the title insurance company will officially issue their title insurance policy. Within this report is the information and contingencies that must be resolved before the title is clear.

Once the title examination is complete, the seller’s attorney and the bank’s attorney will receive the updated title report from the buyer’s attorney. This title report completely outlines all the documents that are needed to officially complete the sale and the buyer’s attorney will receive they documents to review them for a final time before closing occurs. Throughout this entire process, the buyer is also working alongside their lender to make sure their loan will be cleared for closing. As soon as all title defects have been resolved and the title documents are fully examined, the loan should be cleared to close if the buyer isn’t using cash. Once all of these requirements are met, both parties set up an appointment to official close on the property and transfer ownership.

To prove their identity, the buyer needs to also sign a Statement of Identity form that is provided to them by the escrow company. This is to ensure the escrow company can distinguish this specific buyer from other people who may have their same name. The Statement of Identity form will keep you from assuming the burden of someone else’s liens or bankruptcies.

“California Residential Purchase Agreement and Joint Escrow Instructions”

In the state of California, the standard form titled “California Residential Purchase Agreement and Joint Escrow Instructions” is used. This one document is a combination of both the purchase agreement and escrow document all in one. This offer agreement is for the use of buyers and sellers performing a transaction for a single-family residential property. Within the California standard form are stipulations concerning the following:

The specifications of the offer itself
Escrow timeline
Financial agreement terms
Escrow and title
Government requirements
Inspections and reports
Statutory disclosures
Property conditions/defects
Dispute resolution procedures
Included/excluded items in the sale
Broker compensation
All other important specifications and stipulations relevant to the appropriate sale of the property with a clean title and smooth transfer of ownership

Please read through the entire “California Residential Purchase Agreement and Joint Escrow Instructions” to best acquaint yourself with the information.

Escrow Companies in California

The escrow providers within the state of California are regulated by five different state agencies. These agencies are the departments of Insurance, Corporations, Banking, Real Estate, and Savings & Loans. Within the entire state, the Department of Corporations officially regulates 1,212 different independent escrow companies. All of the escrow companies that perform these services in the state of California are licensed companies. Buyers never have to worry about receiving professional service when they are buying a house for the first time in Los Angeles.

Choosing the Escrow Company

An escrow company is extremely important to ensure a smooth buying experience. The escrow company is responsible for:

Obtaining all the necessary documents required for closing
Coordinating the loan funding process with the buyer’s chosen lender
Ensuring the county of Los Angeles where the buyer is choosing to reside has the deed and other required documents established within their records
Disbursing the correct amounts of money to each party involved in the transaction
Providing settlement statements and closing disclosures to the seller and lender if necessary

The Escrow Transaction

The escrow company will then receive a deposited down payment from the buyer and the deed from the seller. If the buyer is using cash, they must provide the proper amount of funds for the deposit to the escrow company before closing. The lender will supply the funds for the loan if the buyer is not paying with cash.

Escrow is Complete

The buyer, the buyer’s real estate agent, the seller, and the seller’s real estate agent will all produced an agreed upon time period for the escrow. The specifications contained within the purchase agreement will determine if the escrow lasts as short as a few days or as long as a few months. Before the escrow closing can be made final, the following processes need to be completed.

The closing documents and escrow forms must be signed by all involved parties
The purchase agreement contingency issues must be resolved and removed
The closing costs required for escrow must be successfully deposited by the buyer, seller, and lender
Records must be made for the transaction documents in the county of Los Angeles where the buyer will reside
The escrow company must accurately distribute all necessary funds to the appropriate parties

Once all the required transaction documents are required, this proves the official transfer of title ownership has been completed. This means the escrow is closed and the buyer is able to begin living in their new home.

THE PLAYERS INVOLVED IN ESCROW

There are five major players involved during the escrow process. Each has a unique role to play when it comes to a successful transaction when buying or selling a home. They are listed below.

The Buyer

This is the person who is buying the home that is up for sale.

The Buyer’s Real Estate Agent/Broker

This real estate professional is going to help the buyer find homes that are on the market within their chosen price range.

The Buyer’s Lender

This is the bank or institution that is lending the buyer the loan money they need in order to purchase their prospective new home.

The Seller

This is the person who is selling their house.

The Seller’s Real Estate Agent/Broker

This real estate professional is going to help the seller make solid offers during the negotiations process so they can feel confident in the money they will earn from selling their house.

The Escrow Company

This is the third-party company that is mainly responsible for getting all the necessary transaction documents and funds from both parties before the closing can be complete. They will also make sure the county in Los Angeles where the buyer will reside has official record of all the transaction documents.

WHAT TO DO WHEN YOU’RE IN ESCROW

The escrow time period is the perfect time for buyers to get all of the proper documentation in order to feel confident in their new home purchase. There are a few major steps every buyer must go through when they’re in escrow.

Purchase Agreement

The Purchase Agreement is given to the escrow company in order for them to review and approve it.

Buyer’s Deposit

The buyer submits their closing deposit to the escrow company. This amount is previously agreed upon when the buyer chooser the lender they would like to receive their home loan from. If the buyer is using cash, they don’t need to receive a loan.

Preliminary Report

The title company issues a preliminary report to all parties so they understand the title defects that exist before closing. This way all of these issues can be resolved before the closing is made official.

Escrow Document Preparation

The documents needed to lay out the escrow instructions are prepared and given to all parties. This preparation process varies depending on the escrow company in Los Angeles the buyer uses.

Principal Signatures

All principal signatures are collected from the buyers and sellers. This includes the Statements of Information from the sellers and any other underlying loan payoffs that need to be completed if the buyer needs a loan.

Submit Demand Requests

Demand requests are now submitted and received.

Payoff Data Entries

Any payoffs or commissions being received by the parties involved will be recorded.

Financing

Financing is only required if the buyer needs a financial loan from a lender to purchase their house. The lender must first approve that the buyer is eligible to receive a loan from them. After the buyer signs and agrees to the documents they receive from their lender, then the buyer can use the loan to make their new purchase.

Closing Statement Preparation

The escrow company will then prepare all the closing statements for the buyer and seller to review. Once these statements are approved, the escrow process can continue. For the closing costs, the buyer usually pays for everything such as the attorney feeds, loan origination feels, credit report fees, appraisal fees, survey fees, inspection, fees, and any other expenses that were needed to solidify the transaction. On the other hand, the seller usually pays for the transfer taxes, recording fees, prorated taxes, HOA dues, title insurance premiums, and home warranty premiums. The specifications of this cost distribution are laid out in the previously signed purchase agreement.

Buyer’s Signing Appointment

The buyer will then schedule an appointment to sign all the necessary documents prepared by the escrow company. Additional escrow paperwork can be added here and then the buyer can make another appointment with the seller if they so choose.

Request for Funds

If the buyer can’t use cash and they are using a loan, the escrow will request the funds at this time. The buyer will deposit an agreed upon amount of money. This amount is usually determined during the initial process when the buyer is choosing a lender to receive a loan from. On the other hand, the seller will provide a deed, if applicable.

Los Angeles County Records

Once all the correct funds are received, the documents must be recorded in the county of Los Angelesnwhere the buyer will soon be living. The escrow company ensures that all the proper transactional documents are established in the county records.

Confirmation of Records

The appropriate county confirms they have recorded all documents they received from the escrow company.

Fund Disbursements

Every party receives the correct amount of money or property they agreed to. At this point, the closing packages are finalized and released. The buyer is now officially the owner of that home and they have all legal title rights to the property.

WHAT DO YOU PAY FOR

Each individual county located in Los Angeles has its own set of costs concerning escrow, titles, and the transfer of official documents. All of these categories require specific levels of payment that the buyer or seller pays depending on the county.

Escrow Charges

These charges are either completely paid by the buyer, completely paid by the seller, or split evenly between the two parties.

Owner’s Policy Title Fees

Similar to the escrow charges, these fees are either completely paid by the buyer, completely paid by the seller, or split evenly between the two parties. Sometimes, the buyer will pay this money directly to the bank or institution that is lending them the money for them to purchase the home.

Los Angeles Transfer Taxes

There is a documentary transfer tax specifically placed on any documents that are associated with real property in Los Angeles County. This tax is officially calculated through the understanding of what the value of the property in question truly is when it exceeds $100 at a $0.55 rate for every $500. This excludes the liens that may be on the property during the official time of sale. On behalf of each individual city, this tax is collected by the Recorder’s Office.

The follow specifications are required for Los Angeles County as described by the table below:

City	City Code	Tax Rate
Culver City (Prior 4/1/21)	20	$4.50 (per $1,000)
Culver City (Effective 4/1/2021)	20	0.45% on amounts of $1,499,999 or less 1.5% on amounts from $1,500,000 to $2,999,999 3% on amounts from $3,000,000 to $9,999,999 4% on amounts $10,000,000 and above
Los Angeles	44	$4.50 (per $1,000)
Pomona	57	$2.20 (per $1,000)
Redondo Beach	59	$2.20 (per $1,000)
Santa Monica (prior to 03/01/2021)	68	$3.00 (per $1,000)
Santa Monica (effective 03/01/2021)	68	$3.00 (per $1,000) on amounts of $4,999,999 or less $6.00 (per $1,000) on amounts of $5,000,000 and above

THE KEYS TO FINANCING

There are various steps you need to take before you are going to be eligible to buy a home. Most people receive financing from a bank or other institution who is considered their lender. This lender gives the money they need to be able to afford the home they want to buy. The homebuying process is much easier if you’re able to pay with cash up front. Having the ability to pay seller’s cash is going to be a much easier process for the buyer and the seller. The buyer doesn’t have to worry about messy mortgage contracts and the seller gets their money on the spot. People who are selling their home are more likely to accept your offer if you are able to pay for the home with cash.

BECOME A TITLE HOLDER

Various classifications exist for people who own the titles to a home or property. There are also different ways for a buyer to hold the title of their prospective property once closing is complete.

Parties

Tenancy in Common

There is an unlimited amount of people who can claim ownership of this property. More than two people can legally have rights to the ownership of the property in question. This can include people who are married or those who are unmarried with registered domestic partners.

Joint Tenancy

There is an unlimited amount of people who can jointly share the ownership of the property or estate. This can include people who are married or those who are unmarried with registered domestic partners.

Community Property

Both partners within a marriage or a registered domestic partnership have legal rights to the home. They both own the property regardless of who actually drives in the income.

Community Property with Right of Survivorship

This process is only received for married couples or people who are in registered domestic partnerships. Whenever one spouse dies, the other spouse doesn’t have to go through probate in order to get the dead spouse’s share of the property.

Division

Tenancy in Common

The right to ownership of the property can be divided amongst an unlimited amount of parties. Additionally, the portion of property ownership each party receives does not have to be an equal amount.

Joint Tenancy

Within this joint ownership of the property, each of the owners has to receive the same amount of interests. This means the divisions of rights to the property must be equal between each spouse.

Community Property

The interests for each spouse regarding both the management and ownership of the property are equal. This means these interests can’t be divided given each spouse receives 50%. Each spouse as a fiduciary duty to the other that is agreed upon when they sign the contracts to own the home. This duty requires one spouse to confirm with the other before they make any changes to or remove any portion of the communal property.

Community Property with Right of Survivorship

The interests for each spouse regarding both the management and ownership of the property are equal. This means these interests can’t be divided given each spouse receives 50%. If one spouse dies, the other spouse has complete ownership of the dead spouse’s portion of the communal property. Whenever one spouse dies, the other spouse doesn’t have to go through probate in order to get the dead spouse’s share of the property.

Title

Tenancy in Common

There can be two owners of the title and each owner has a legal title. This legal title is separate for each co-owner so they have the legal rights to their own undivided interests.

Joint Tenancy

Both co-owners of the title have joint ownership of the title although there are separate titles to represent the specific portion owned by each spouse. The co-owners must receive the clean title from the same entity at the same time. One owner is eligible to create a deed that they can then distribute for them self and the other owner.

Community Property

Community Property with Right of Survivorship

The official title is owned by both spouses within the “community” although each interest is still separate. While the interests are separate, the management requirements are still unified so each spouse is still bound by their fiduciary duty to the other spouse. This title would need to specifically state that this estate is a community property with right of survivorship so the living spouse doesn’t have to go through probate to receive the interests of the dead spouse.

Possession

Tenancy in Common

Both spouses have equal rights to the possession of the property. This is also true for registered domestic partnerships.

Joint Tenancy

Both spouses have equal rights to the possession of the property. This is also true for registered domestic partnerships.

Community Property

Each co-owner has equal rights to the possession of the community property. This is also true for registered domestic partnerships.

Community Property with Right of Survivorship

Each co-owner has equal rights to the possession of the community property. This is also true for registered domestic partnerships. The living co-owner will instantly receive rights to the dead co-owners interests without having to go through probate.

Conveyance

Tenancy in Common

The co-owners have separate interests that may be conveyed differently. Each individual owner can assignment the transferring of their property rights from themselves to the other co-owner usually by a written statement.

Joint Tenancy

The joint sharing of the property will be terminated if one owner completes their conveyance but the other co-owner does not.

Community Property

Both co-owners have to sign the conveyance in order for it to go into effect for the community property.

Community Property with Right of Survivorship

Both co-owners have to sign the conveyance in order for it to go into effect for the community property with right of survivorship.

Death

Tenancy in Common

There is not right of survivorship within this classification. After the death of one of the co-owners, their interests will go to the people they’ve claimed as their heirs or devisees according to their will.

Joint Tenancy

After the death of one of the co-owners, their interests can’t simply be removed or disposed of given their interests end. Whoever is the survivor of the joint tenancy will receive the property. This survivorship information as well as the fact of death may be established by an affidavit.

Community Property

When a spouse or registered domestic partner dies, their interests go to the surviving spouse. The amount of communal property received by the surviving spouse or registered domestic partner is 50%. The other 50% may also go to the surviving spouse, registered domestic partner, or other devisees that are designated in the will.

Community Property with Right of Survivorship

After the death of one of the co-owners, their interests can’t simply be removed or disposed of given their interests end. The surviving spouse or registered domestic partner gets 100% of the property that was original considered the interests of the dead spouse or partner. This survivorship information as well as the fact of death may be established by an affidavit.

Successor’s Status

Tenancy in Common

The heirs or devisees designated by the will receive a “common tenant” status after the original owner has passed away.

Joint Tenancy

The final survivor of the joint tenancy has rights to full ownership of the property. This means the survivor owns 100% of their interests and the interests of the dead spouse or registered domestic partner.

Community Property

The heirs or devisees designated by the will receive a “common tenant” status after the original owner has passed away. This is only the case if the dead owner passed on the interests through their will.

Community Property with Right of Survivorship

Presumption

Tenancy in Common

Taking on a classification of “tenancy in common” is the most favorable status in situations that are doubtful. This is not considered the case for married couples or people who are in registered domestic partnerships.

Joint Tenancy

The deed must specifically state that the co-owners are locking into a joint tenancy.

Community Property

If the property is purchased by two people who are in a married couple or a registered domestic partnership, the legal presumption is that the estate is classified as community property.

Community Property with Right of Survivorship

The deed must specifically state that the acquired property is a community property with right of survivorship.

TAXES ON PROPERTY IN CALIFORNIA

The property taxes that exist throughout the entire state of California are below the property tax national average. The real estate property is always reassessed every time ownership is transferred from one buyer to another and the property tax is most commonly set at 1%.

Property Tax

The amount of taxes a homeowner must pay for their property is an extremely important part of the entire real estate process. Property owners are required to pay annual taxes on their property include both federal and state taxes. These taxes must be paid each time the property is bought, sold, or given away. The stipulations that include who should pay the taxes are usually negotiated between the buyer and seller given the percentage responsibilities may vary.

Assessment Tax

Real property taxes are collected by numerous cities and counties to ensure they have enough money to cover their daily operating costs. The county assessor is the person who determines the exact amount each residence must pay for the real property taxes associated with their property. Then, the county collector ensures these taxes are collected.

What Is the True Meaning of Tax Assessment?

A tax assessment occurs when the Income Tax Department fully analyzes the validity established by the return of income. This entire examination process is considered to be the tax assessment. Under section 144, assessment can also be in reference to a re-assessment or best judgment determination.

Property Taxes vs. Tax Assessment

Property taxes represent the money you pay according to the assessed market value of your combined property and the property tax rate as well. On the other hand, the tax assessment is the professional evaluation of your property that is completed by either a city or county assessor to officially determine the most up to date market value of the property.

How Are Tax Assessments Calculated?

These property taxes are calculated based on the number you get from multiplying the current assessed value of your property by the mill rate. To get the assessed value, you must multiply the market value by the assessment rate.

Proposition 13 and Exemptions

Proposition 13 limits the amount of property tax that can be administered in the state of California. In the year 1978, voters in California approved this law. The law limits the amount of money that can be requested for general property taxes to only 1% of the market value of the property in question.

Following the guidelines set forth by Proposition 13 means any transfer of property will cause a reassessment of the property to occur. There are certain situations where exemptions can be made regarding this reassessment.

Proposition 58

This authorize the property to be transferred between spouses or their children without a reassessment having to occur

Proposition 60 and 90

This states that homeowners can transfer the current taxes placed on their property under Proposition 13 if at least one of the homeowners is 55 years old or older, the replacement property is bought within two years of the original property sale, the new home being purchased is of equal or lesser value than the current property. If within the first year of purchasing the old home the new home is closed, the price of the property can see a 5% increase. On the other hand, if within the second year of purchasing the old home the new home is closed, the price of the property can see a 10% increase in comparison the other selling price of the old home.

Homeowners Exemption

If a home has been owned or occupied starting on March 1^st of the year 2021, a homeowners exemption of $7,000 can be received according to the assessed value of the property. The homeowner must file for the exemption between January 1^st and February 15^th. This exemption will stay in place until the owner of the property formally terminates it themselves. At which time the homeowner must inform the accessor that the property is no longer eligible for the exemption. A 25% penalty along with assessment interest may be given to the homeowner if they fail to inform the accessor of these changes.

Documentary transfer tax

Within the state of California, a specific county or city is able to adopt a documentary transfer tax that can be applied to the transfer of any properties that are located in the state. The total price that was paid for the property is utilized to calculate this tax excluding any loans that were assumed. The computation is completed at a $0.55 rate for every $500 of total or fractional consideration.

Income Tax

The real estate agent of a buyer is not responsible for providing their client legal advice or information about the specific taxes the client must pay for their new property. There are various situations where the buyer should just reference CPA to understand everything they need to know about the income taxes that will personally affect their new residence. Each potential sale will have its own tax requirements and implications that the buyer should always be aware of.

Personal Residence: Tax Deductions and Capital Gain

For personal residences, homeowners can deduct the following classifications from their annual income taxes: mortgage loan interest, property taxes, and prepayment penalties. Additionally, the person selling the home is eligible to exclude up to $250,000 of any capital gain they receive on the sale of their property. This value is bumped up to $500,000 if the sellers are joined in a legal marriage. The sellers just have to make sure they lived in the home for two out of the last five years to officially qualify for this exemption. Unfortunately, if the seller loses any money through the sale they can’t deduct that from their income taxes

Income-Producing Property

If buyer choose to invest in income-producing property, they can deduct all of the follow items from their taxes: mortgage loan interest, property taxes, prepayment penalties, operating expenses, depreciation of improvements. Additionally, a depreciating property must have an even time allocation to represent the depreciation most accurately. This is 27.5 years for apartments and rented homes, and 39 years for commercial buildings. There are numerous facts and specifications that every buyer should make sure they fully understand before making a purchase on a home. Given income taxes play a major role in the homebuying process, every buyer should know what kinds of taxes they will have to pay for their new property once they officially close on the homes.

What Are Property Taxes?

Within the state of California, the property taxes are dealt with by the local governments within each specific county. Each county has its own individual tax rates that residents must pay which is decided upon based on a certain percentage of your property’s value. Usually, the local government use these property taxes to fund various county functions. This can include services to local schools and infrastructures throughout the community. The payment for a property tax occurs two times a year, using a fiscal year as the official reference.

GETTING TO KNOW THE TAX CALENDAR

Fully understanding the tax calendar includes a deep knowledge of the fiscal year. The California state property tax fiscal year officially begins on July 1st. Homeowners receive a notice of the assessed value of their home by the end of July. Then, the official bill is mailed to them the week of October 1st. Property owners are permitted to pay their property taxes in two equal installments.

Payments on Property Tax Are Based on The Fiscal Year

The property tax fiscal year officially begins on July 1^st in the state of California. All homeowners will get a notice containing the assessed value of their home no later than the end of July. Then, the official bill is mailed to them during the week of October 1^st. Every single property owner has the right to pay their property taxes in two equal installments. When a seller places their home up for sale, the tax is usually prepaid. Within the closing statement, the buyer may owe some portion of the tax as well. Once the property is officially transferred, the new o

The First Payment Installation

This occurs from July 1^st through December 31^st (standard loans require a 2-month addition).

July 1^st: This date marks the beginning of the fiscal year.

October: The tax bills are mailed during the last week of October.

November 1^st: First payment installation is due.

December 10^th: If the first payment hasn’t been received by this date, it’s considered delinquent.

The Second Payment Installation

This occurs from January 1^st through June 30^th (government loans require a 4-month addition).

February 1^st: The second payment installation is due.

March 1^st: The marks the official assessment date.

April 10: If the second payment hasn’t been received, it’s considered delinquent.

What Are Supplemental Taxes?

A supplemental tax is administered on top of the original property tax when the ownership of a property changes hands. The County Assessor appraised the full cash value of the property that’s changing ownership. The supplemental tax and property tax are both determined by assessments that are made based on the market value of the property. This supplemental assessment can determine if there needs to be an increase or decreased in the previously assessed property tax value before the new homebuyer acquires ownership of the property. The new homeowner is responsible for paying the supplemental tax bill that is sent to the recorded mailing address. Once the new homeowner makes the payment, they will provide official proof of this to the lender.

TAX RATES FOR CAPITAL GAIN

The tax rate continues to increase for existing homeowners and people looking to sell or buy their first home in the state of California. If a buyer makes enough money to pay for the general cost of the home but not the additional taxes, then there will be no sale. Fortunately, with the tax code provisions made within IRC Section 1031, there are various tax deferral that taxpayers can take advantage of. There are four specific ways in which a taxpayer could potentially be taxed whenever an investment property is being sold if they pay no mind to the 1031 exchange.

Depreciation Recapture

This is the amount of money that is gained when a homeowner sells their house that contains any form of depreciable capital. In order for the seller to be properly taxed, this depreciable capital has to be reported as a form of “ordinary income”. The depreciation recapture must be appropriately assessed whenever a homeowner sells their house at a price that is higher than the actual tax basis it is assigned due to the adjustments made for the cost after depreciation. In California, taxpayers are taxed 25% for the total value of the depreciation recapture.

Capital Gains for Federal Taxes

Federal capital gains taxes are owed by all taxpayers for the total value of any remaining economic gain. This value depends on their taxable income. If single filing taxpayers get paid more than $434,550 and married couples get paid more than $488,850 in taxable income, then they will have a 20% capital gain tax. If taxpayers receive annual income that is below this value, they will only have a 15% capital gain tax.

Net Investment Income Tax

This tax is aligned with the requirements set forth by IRC Section 1411. If the situation demands it, a 3.8% surtax is applied to the taxpayers who have a net investment income above the threshold amounts. The threshold for single filers is $200,000 and the threshold for married couples is $250,000. IRC section 1411 defines net investment income as any dividends, capital gains, interests, incomes from partnerships, or retirement incomes.

California State Taxes

There are always state taxes added on top of the other taxes listed above. The combination of all four tax classifications defines the total amount the taxpayer owes. The section 1031 exchange provides a great tax advantage for real estate investors so they can hold real property that they want to invest in. This allows them to defer taxes on the property they would have otherwise paid when they sold the investment property.

FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT

The overall purpose for the creation of this act was to enforce taxes on the foreign persons who were using real-property interests in the United States to sell and make profit. People who buy real-property interests from foreign sellers are not allowed to enforce taxes on them when the property is being sold. The withholding of taxes by the buyer that occurs during this process is associated with a prepayment of the anticipated amount of taxes the seller is going to have to pay to the IRS. The IRS has specific tax specifications for foreign persons selling within the United States.

Non-Primary Residence for The Buyer

If the foreign persons are selling property to a buyer who will not be using the property as their home of residence according to the Internal Revenue Code, then there is a 15% withholding rate applied no matter the selling price point of the property.

Primary Residence for The Buyer

If the foreign persons are selling property to a buyer who will use the property as their primary home of residence according to the Internal Revenue Code, a 15% withholding rate is applied if the full sale price is equal to or greater than $1 million. If the full sale price of the property is less than $1 million but greater than $300,000, then a 10% withholding price is applied. If the full sale price is equal to or less than $300,000, then a 0% withholding price is applied.

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