Thanks so much,
Trina Hunt
(408) 823-6831
(408) 904-7118 fax
Friday, September 11, 2009
California Bill Allowing REO Escrow Selection May Soon Become Law
http://www.dsnews.com/articles/california-bill-allowing-reo-escrow-selection-may-soon-become-law-2009-09-10
Tuesday, September 8, 2009
Do REO's need to complete disclosures if they've never lived in the house?
Yes! REO's (bank owned properties) must disclose. Even if they've never occupied the property, they are still required by CAR to provide certain disclosures to the buyer.
Many bank's do not like the back and forth of paperwork that goes on in a real estate transaction, and most will not complete the disclosures upfront like we do with traditional sales. So the best way to handle this, is to have your disclosures ready for the bank and submit with the buyer's offer to purchase. This way they have everything upfront and sign them all at once.
Please visit CAR's website for the most current list of REO requirements. However, here is a hit list we've provided:
-REO Listing Disclosure
-REO Sale Disclosure
-Agency signed by seller and listing agent, by buyer and buyer's agent, by seller and buyer's agent
-AVID (some banks will not sign these)
-Lead Based Paint (sometimes built into the bank addendum)
-Smoke Detector and Water Heater Statements of Compliance
-NHD Report, with signed NHD
-FIRPTA
The following are not required BUT still very good to have if you represent the buyer on an REO transaction:
--Receipt for Enviro Booklet
--Market Advisory
--Disclosure and Consent RE: More Than One Principle
--Statewide Advisory
Please note, it may be difficult to get the bank to sign these state mandated disclosures. It's important to document your file on your requests to the bank. Some brokers may waive the need for this paperwork if you can provide documentation of your attempts to collect the signatures from the bank. Always check with your broker beforehand:)
Many bank's do not like the back and forth of paperwork that goes on in a real estate transaction, and most will not complete the disclosures upfront like we do with traditional sales. So the best way to handle this, is to have your disclosures ready for the bank and submit with the buyer's offer to purchase. This way they have everything upfront and sign them all at once.
Please visit CAR's website for the most current list of REO requirements. However, here is a hit list we've provided:
-REO Listing Disclosure
-REO Sale Disclosure
-Agency signed by seller and listing agent, by buyer and buyer's agent, by seller and buyer's agent
-AVID (some banks will not sign these)
-Lead Based Paint (sometimes built into the bank addendum)
-Smoke Detector and Water Heater Statements of Compliance
-NHD Report, with signed NHD
-FIRPTA
The following are not required BUT still very good to have if you represent the buyer on an REO transaction:
--Receipt for Enviro Booklet
--Market Advisory
--Disclosure and Consent RE: More Than One Principle
--Statewide Advisory
Please note, it may be difficult to get the bank to sign these state mandated disclosures. It's important to document your file on your requests to the bank. Some brokers may waive the need for this paperwork if you can provide documentation of your attempts to collect the signatures from the bank. Always check with your broker beforehand:)
Wednesday, July 8, 2009
Revised Announcement from CAR about the Property Profiles
We have good news to report: Property profiles again may be provided to you by title companies. As you may have heard, the California Dept. of Insurance (CDI)
issued a letter June 12 that was unclear in this respect. C.A.R.’s Governmental Affairs Dept. met with the Dept. of Insurance on July 2 and expressed concern about the interpretation of the June 12 letter and its impact on the market. The CDI said they did not intend their letter to be interpreted to prohibit property profiles, and agreed to look at the matter, recognizing the urgency and the need for immediate action.
We are pleased that the Dept. of Insurance is so responsive to industry needs, particularly when it results in tangible benefits to consumers, such as detecting fraud and providing valuable information about the title when taking listings and servicing buyers and sellers.
Yesterday’s letter makes it clear that the CDI’s chief deputy “did not intend for my June 12 letter to be interpreted as a call for title insurers to change their business practices.” It goes on to say that any conduct must continue to be within existing law and does not mean that “anything goes”. However, the letter is clear that the department will not take enforcement action against title insurers for distributing information about properties in the manner that they did immediately prior to June 12. The CDI will be proceeding with possible regulations in a manner that will not result in continued market disruption. C.A.R. will continue to be vigilant and protect your interests. We will be proactively monitoring this process as it goes forward and will inform you immediately of any changes.
Sincerely,
Jim Liptak
2009 President
CALIFORNIA ASSOCIATION OF REALTORS®
issued a letter June 12 that was unclear in this respect. C.A.R.’s Governmental Affairs Dept. met with the Dept. of Insurance on July 2 and expressed concern about the interpretation of the June 12 letter and its impact on the market. The CDI said they did not intend their letter to be interpreted to prohibit property profiles, and agreed to look at the matter, recognizing the urgency and the need for immediate action.
We are pleased that the Dept. of Insurance is so responsive to industry needs, particularly when it results in tangible benefits to consumers, such as detecting fraud and providing valuable information about the title when taking listings and servicing buyers and sellers.
Yesterday’s letter makes it clear that the CDI’s chief deputy “did not intend for my June 12 letter to be interpreted as a call for title insurers to change their business practices.” It goes on to say that any conduct must continue to be within existing law and does not mean that “anything goes”. However, the letter is clear that the department will not take enforcement action against title insurers for distributing information about properties in the manner that they did immediately prior to June 12. The CDI will be proceeding with possible regulations in a manner that will not result in continued market disruption. C.A.R. will continue to be vigilant and protect your interests. We will be proactively monitoring this process as it goes forward and will inform you immediately of any changes.
Sincerely,
Jim Liptak
2009 President
CALIFORNIA ASSOCIATION OF REALTORS®
Thursday, July 2, 2009
Property Profiles
I would like to share with you an IMPORTANT SB133 UPDATE:
Recent communications with the California Department of Insurance regarding SB133 has required all title companies to remove the following fields from their Property Profile Information Sheets, effective immediately:
Transfer Date, Transfer Value, Title Company, Seller, Doc#, Cost per square ft. Assessed Value, Land Value, Imp. Value, Market Imp Value, Tax Year, Percent Imp, Tax Amount, Tax Account id, Homeowner Exemption, Tax Rate Area, Tax Status, Market Value
Access to Documents, Detail Comps, Transaction History and Nearby Neighbors has been removed as well.
We would like to suggest some web sites you can go to and access this information at a minimal cost to you. www.agentpro247.com www.loanpro247.com andwww.dataquick.com.
To access tax information log on to:http://payments.scctax.org/payment/jsp/startup.jsp
Thanks so much,
Trina Hunt
(408) 823-6831
(408) 904-7118 fax
Friday, June 26, 2009
Legislative change affecting the way you do business!
After July 1st, all real estate brokers and agents must disclose their license ID numbers on:
-real estate purchase agreements when acting as an agent; and
-any solicitation material designed to be the first point of contact with consumers or designed to create a professional relationship between a licensee and a customer, including:
-business cards;
-stationery;
-websites;
-advertising fliers; and
all other advertisements designed to solicit a relationship between the licensee and the public, other than print/electronic media and “for sale” signs.
-real estate purchase agreements when acting as an agent; and
-any solicitation material designed to be the first point of contact with consumers or designed to create a professional relationship between a licensee and a customer, including:
-business cards;
-stationery;
-websites;
-advertising fliers; and
all other advertisements designed to solicit a relationship between the licensee and the public, other than print/electronic media and “for sale” signs.
Thursday, May 14, 2009
Agency Disclosure
This month I decided to share a common mistake found on 90% of transactions: Agency Disclosure.
As you know Agency is disclosed in the very beginning. Typically, the agent has the principle sign the CAR AD form at the time a listing agreement is signed OR at the time an offer is being written, depending on what side of the contract you're on. However, this form should be signed as soon as you engage in "Real Estate" talk, contract or no contract.
Just recently, I had a transaction where we had to clarify the rules of Agency.
CAR Legal confirmed 3, yes 3, AD forms are required on every file:
-one signed by the listing agent and seller
-one signed by the buyer's agent and buyer
-and one signed by the buyer's agent and seller
These must be 3 separate forms entirely. The buyer's agent can not merely acknowledge the AD form already signed by the listing agent/seller, which is how it's done most of the time, if done at all.
The PRDS version of the form is much different. It provides a signature line for the third party to acknowledge on the same copy. So in the PRDS scenario, you will essentially have only 2 forms:
-one between the seller and listing agent, with a line for the buyers agent to acknowledge.
-and one between the buyer and buyer's agent, with a line for the seller to acknowledge.
I know we all wish there were one form, for all parties to sign, to make things easier. But until then, it's best to be clear on the rules to ensure a well documented file.
As you know Agency is disclosed in the very beginning. Typically, the agent has the principle sign the CAR AD form at the time a listing agreement is signed OR at the time an offer is being written, depending on what side of the contract you're on. However, this form should be signed as soon as you engage in "Real Estate" talk, contract or no contract.
Just recently, I had a transaction where we had to clarify the rules of Agency.
CAR Legal confirmed 3, yes 3, AD forms are required on every file:
-one signed by the listing agent and seller
-one signed by the buyer's agent and buyer
-and one signed by the buyer's agent and seller
These must be 3 separate forms entirely. The buyer's agent can not merely acknowledge the AD form already signed by the listing agent/seller, which is how it's done most of the time, if done at all.
The PRDS version of the form is much different. It provides a signature line for the third party to acknowledge on the same copy. So in the PRDS scenario, you will essentially have only 2 forms:
-one between the seller and listing agent, with a line for the buyers agent to acknowledge.
-and one between the buyer and buyer's agent, with a line for the seller to acknowledge.
I know we all wish there were one form, for all parties to sign, to make things easier. But until then, it's best to be clear on the rules to ensure a well documented file.
Wednesday, April 15, 2009
Earth Day Event April 22, 2009
Earth Day Evolution is a fundraiser event with proceeds benefiting the Home 1st Foundation
EARTH DAY EVOLUTION!
Come join the Home 1st Foundation on Wednesday, April 22, 2009 at Club Auto Sport for the Earth Day Evolution Celebration. Experience a fun, fresh, completely different focus to Earth Day. Stop by to feast on delicious complimentary hors-d'oeuvres, and locally brewed beer from Sonoma Chicken Coop! Sip and savor wine from the Bay Areas best, Groove to a Live concert by Tainted Love, and win special prizes in our showcase raffles. Through the festivities you will become informed, engaged and empowered in the arena of Green technology and innovation.
So bring an empty stomach, dancing shoes, and a curious mind, for the Green Revolution begins, right here, at Home 1st!
See you there!
EARTH DAY EVOLUTION, April 22, 2009 at Club Auto Sport
SPACE IS LIMITED AND WE WILL SELL OUT
EARTH DAY EVOLUTION!
Come join the Home 1st Foundation on Wednesday, April 22, 2009 at Club Auto Sport for the Earth Day Evolution Celebration. Experience a fun, fresh, completely different focus to Earth Day. Stop by to feast on delicious complimentary hors-d'oeuvres, and locally brewed beer from Sonoma Chicken Coop! Sip and savor wine from the Bay Areas best, Groove to a Live concert by Tainted Love, and win special prizes in our showcase raffles. Through the festivities you will become informed, engaged and empowered in the arena of Green technology and innovation.
So bring an empty stomach, dancing shoes, and a curious mind, for the Green Revolution begins, right here, at Home 1st!
See you there!
EARTH DAY EVOLUTION, April 22, 2009 at Club Auto Sport
SPACE IS LIMITED AND WE WILL SELL OUT
For more info, please visit:
http://www.generationgreenexpo.org/email_blasts/invite0309/home1st_earthday.htmlThanks!
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