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GOOD FUNDS LAW
What Is Escrow?
Escrow, known more on the West Coast, is a neutral party for a buyer and seller when a home is sold. Escrow is used to facilitate the purchase and sale of a home for the buyer and seller.
Escrow makes sure no funds will change hands until all instruments to the transaction are followed completely and all documents including contracts, agreements, amendments and disclosures are signed by all parties. Only then, following the completion of instructions from escrow (which mirror the purchase agreement) will escrow balance the closing sheet, also known as HUD1 and disperse funds to title so the escrow can close.
“Good Funds Law” (AB512)
The law requires escrow to comply with the “Good Funds Law” (AB512). Good Funds Law is very clear. Here’s what it says. The funds may be a wire transfer. Preferably. Wire Transfers must be from a FDIC insured bank – A wire transfer is the best choice to insure funds or closing escrow are good funds. These funds are electronically transferred into the escrow trust account from the client’s bank account.
Other forms are a Cashier’s check, which can take up to four business days to clear. Cashier’s checks must be issued from a California Bank. However, once a cashier’s check has been deposited for closing, the amount does not become “Good Funds” until it has been paid by the issuing financial institution.
Personal checks are not considered “Good Funds” and cannot be used for closing purposes.
Finally, despite popular belief, the payment of a Money Order cannot be tracked and does not constitute “Good Funds”. Escrow does not, under any circumstance, accept Money Orders.
If you have any questions about an escrow and the Good Funds Law, feel free to contact me or leave your questions below in the comment field.
THE LAW AND CO DETECTORS IN CALIFORNIA
Beginning July 1, 2011, California Senate Bill 183 requires the presence of a Carbon Monoxide detectors in all homes…not just those being sold. This applies to just about all residential properties, including homes, condos, apartments.
CO detectors must be present in all residences if they have any of following:
1. Any gas appliances such as a gas stove, gas furnace, gas fireplace, gas water heater
2. A fireplace (even if it only burns wood, pellets, or any other material).
3. An attached garage (even if there are no gas appliances in the house).
4. ANY rental dwelling that meets the criteria listed above. That means townhouse, home, condo that is rented to another person.
They average in price from $25.00 – $60.00.
In addition to the Carbon Monoxide detectors, all homeowners, whether a rental or a primary residence, or a residence being sold, or purchased, must have smoke detectors in all bedrooms and hallways.
When selling your residence you will be provided a Sellers Transfer Disclosure Statement. There is now a line item on the STDS referring to smoke and CO detectors.
It’s the law in California…please check your state for requirements.
SAN DIEGO DEFAULT FILINGS GOING DOWN
The number of homeowners receiving NOD’s (Notice of Defaults) declined for the first time since 2008. However, the foreclosures rose slightly from 666 in November to 725 in December. Still….this may be another sign of the housing market making it’s ever-so-slowly turn-around in the real estate market. Now, with interest rates falling into the sub 4% range, the the signs are green for 1) first-time buyers to enter the market, 2) for 2nd home buyers to find their vacation property, and 3) for move-up buyers be excited they will now be able to sell their home to buy “up”. In San Diego County, the inventory is shrinking, making it difficult for buyers to find their dream property. However, with this slightly good news, more sellers may see spring, 2012 as the time to enter the selling market.
In the State of the Union address, President Obama pledged to make the purchase of real estate, or at least getting a loan easier for borrowers, pledging homeowners a $3,000 savings allowing them to refinance without red tape. He promises smart regulations to prevent financial fraud.
If you are interested in purchasing real estate, please click on “Home Search” to the left of this blog. Or call me at 858 395 7727…I am a committed professional and will assist you in purchasing…or selling…your home.
Is Modern Design Making a Comeback?
My visit to the Big Apple led me to getting an invitation to a book signing at Archivia Book store in NYC on Lexington.
Amy Lau released her book, Expressive Modern, The Interiors of Amy Lau, and chose Archivia to help her. The crowd was mostly New Yorkers in the design business, but there were those who travelled, like me, from the other coast to see Amy’s labor of her love. Design.
Even stylists with more traditional tastes for English Country, Ecclectic, Mediterranean or even Mid Century, Traditional, Tuscan, or even Southwestern, can’t deny an appreciation for Amy’s insight to Expressive Modern. It’s delightful, interteresting and clean as far as a book design…but the contents, the photography, the description are expressive in itself and truly inspiring.
As a Real Estate Consultant in San Diego, La Jolla, and downtown condo market, I see many different interiors, and use a stager when I need to enhance the property for sale. As I browse this beautiful book my mouth waters thinking how I could sell more homes if I could stage properties with this type of design. In my opinion, this is a beautiful coffee table tablet that anyone will want to pick up and study. It will tantalize your senses and quite possibly open your mind to Modern and it simplicity….as well as it’s minimalistic scape.
How Much Should You Offer?
You are about to make an offer on a home you found. So…the question is….Just how much should you offer?
In parts of San Diego, especially the downtown market, homes are selling between 95%-97% of the list price…and in many cases, they are selling at 100% of the listing price.
Why is that?
1. Most homes have already been discounted 30%, 40% and 50%.
2. Lack of inventory has created a demand.
3. Multiple offers pushes prices above listing prices.
In this market, the post sub-prime era, banks have put a stopper on buyers over-paying for real estate. Appraisers are appraising property below the real value. Which is an argument that is debatable by both sellers, banks, appraisers and real estate agents. But, whatever the debate, the California Association of Realtors has created a Real Estate Purchase Agreement with a paragraph devoted to allowing the buyer the option to cancel the purchase if the property does NOT appraise at the agreed offer price. Another good argument for every Buyer to use a Realtor….and not purchase directly from the Seller without the benefit of that “out” option.
For more information regarding Appraisals, property search, and contracts, please feel free to call me…858 395 7727.
FOR SALE BY OWNER – IS IT A SAVINGS?
It used to be common to see a sign in the front lawn or in the window of a house where the owner was selling his/her own home….FOR SALE BY OWNER. In the real estate industry, they were known as FSBO’s (pronounced FIZBOW’s). An owner thought by selling his own home, without a Realtor, he could save the commission. On a $400,000 home, that could mean about $24,000. A huge savings to an owner. But is it?
FSBO’s may not have all the disclosures a buyer would need to make an informed, and important decision. An owner may discount the home, but no discount will cover the costs associated with hiring an attorney to remedy a dispute that can erupt when buyers and sellers “diy” selling of real property. The California Association of Realtors maintains a Purchase Agreement that is designed to protect buyers (and sellers) when it comes to buying a home.
It is a known fact that over 85% of all FSBO get tired of trying to market their own property, holding their own open houses, answering phone calls and working with buyers who might be look-e-loos, or are not pre-approved and unfamiliar with purchasing a home. FSBO’s don’t use the C.A.R. Purchase Agreement and most don’t have a clear understanding of time frames and “outs” for the buyer to conduct inspections that will give them information to make a decision. I would hope 100% of all buyers will approach a FSBO with caution. On the outside, the FSBO looks like you might be saving money. On the inside, Title Reports are safe guards for the buyer to insure the title is “clear” and can be transferred. Escrow is the 3rd party who handles all the necessary paperwork ti insure it goes smoothly and legally.
Caution: Don’t trade good old-fashioned negotiating with the promise of discount.
Call Jeannie for more detailed information regarding the C.A.R. Purchase Agreement.
LA JOLLA IS AFFORDABLE
La Jolla has become more affordable for homebuyers.
There are 64 available condos in 92037 (La Jolla) under $500,000…………………41 are 2 bedrooms, 2 baths.
There are 21 available single family residences in 92037 under $1 million.
La Jolla Luxury Property
La Jolla is a great community, with highly ranked schools, great parks, many community centers, including YMCA locations, and some of the best restaurants.
Check out available properties by searching the tab “SEARCH HOME” to the left of this blog.
WALKING THE DOG
This is beautiful Calumet Park in Birdrock, a community in La Jolla, CA. The best thing about this park is it’s walking distance from the most charming communities in La Jolla…Birdrock.
The community of Birdrock is great for families who want to walk to coffee, kid’s dances classes, boutique shopping, cleaners, restaurants, and many other retails shops. If you’re a surfer, you will love the accessible path at Calumet park leading to one of the most scenic and popular surfing spots around. If you have a dog…and who doesn’t…walking your dog at Calumet is a nightly ritual, where people meet, talk and throw dog toys for their dog’s enjoyment….and theirs.
The community is lined with post WWII housing and wonderful sidewalks. Most homeowners have seen the value of upgrading and remodeling their homes which is apparent as you drive the streets. Also, the community grade school, Birdrock Elementary and Muirlands Middle school, La Jolla. School, continuously rank high in scoring.
Visit my “search” button to find a home in La Jolla/Birdrock. Prices range in the low $1,000,000.00 to “the sky is the limit”.
1ST DAY OF SPRING IN BIRDROCK
I was hoping to wake up to a bright, warm, sunny day in La Jolla. It was not meant to be.
Beginning yesterday, Sunday, March 20th, in downtown San Diego, I held an open house in a condo on Market Street. It was cold and the wind was blowing. After setting up 12 signs, I entered the condo and turned on the lights. An hour goes by. No visitors. 2 hours later, I look out the window….I can see two of my signs are upside down in the middle of Market Street….I run out to retrieve them. I put up my hands to stop the traffic. I run across the street as my scarf takes off in the wind…the phone starts to ring, the traffic is building, and I see a couple standing next to the condo I have open. They yell…”we’ll come back later”. No…don’t leave…I’ll be right there….please….you’re the only visitors I’ve had in 2 hours….Who says Real Estate isn’t stressful?
Rain, Rain...Go Away
Wherever you are I hope you are having a nice First Day of Spring. Here, in Birdrock, La Jolla, CA….not so much.
CAN YOU SHORT SALE?
You can’t just walk away from your house and list it as a short sale. It’s not that easy. And it shouldn’t be. With the onslaught of “short sales” in the San Diego marketplace, it creates a feeding frenzy for buyers. Great for the buyer that prevails. Great for the agent who closes the transaction after putting in a GaZillion hours in locating the property and finally, writing the offer(s)….yes…..offers, since it may take anywhere from 5-10 offers to get an acceptance. But, what if at the end of the day, the “short sale” is NOT approved by the lender? What happens then? What happens is the buyer spent all that time and emotion thinking they are going to get a house that doesn’t qualify for a short sale.
A short sale is when the lender agrees to accept less than what is owed on the property. But there are stipulations here. You can’t just put your home on the market and get an offer and send it to the lender and…boom…done deal.
The owner (seller) must be behind in mortgage payments…I said payments…with an “s”. The seller must have hardship, loss of employment, debt (and late on those payments), medical issues, etc. The Realtor handling the sale for a “short sale”, will require verification the owner has sent his hardship package to the lender and has been communicating with them toward an approval. Or….a good Realtor can assist the Seller in getting the hardship package together. All this homework done early will help the Seller to get through the process quicker. Once listed as a “short sale”, the buyers can submit offers to the Seller for the Seller’s approval. Then, the offer and the short sale package can be submitted to the lender for approval.
The best way to sell your home is by a “traditional” sale. Accepting an offer and paying off your loan. There are consequences when you sell your home short. You are not able to sell your home “short” and then go out and buy another in this market. Doesn’t work that way.
If you are upside down, or have received a “foreclosure” notice, call me so I can assist you with your questions and provide you with a way out where you still have your pride.
