Don’t let a tricky transaction frighten you… At Western Resources Title we can close the scariest of deals!
Let Western Resources Title save them $$$ by issuing an insurance binder!
If a buyer /investor is planning on flipping a property within 2 years, they can save a significant amount of money by buying a binder. Your client would be charged an additional 10% of the premium at the time of his or her initial purchase of the binder. Then at the time of the flip/resale, the investor would pay the difference in title premium between the original purchase price and the current sales price. This can save them hundreds of dollars!
TITLE TERM: Insurance Binder – a temporary contract of insurance in which the title company agrees to issue a specified policy within a certain period of time. (The binder must be requested before the property being purchased closes escrow).
Please note: The binder contract is valid for a period of 2 years from the date of issuance and may be extended for an additional year (for an additional fee) if requested prior to the end of the initial two year period.
For more information, please contact your Western Resources Title representative.
As seen on DQNEWS.com
Southern California home sales in September fell more than usual from August but rose modestly above a year earlier as sales gains for mid- to high-priced properties compensated for declines in sub-$300,000 activity. The median sale price remained 21 percent higher than a year earlier, but after holding steady for three months the median dipped month-to-month in September for the first time since February, a real estate information service reported.
A total of 19,112 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 17.1 percent from 23,057 sales in August, and up 7.0 percent from 17,859 sales in September 2012, according to San Diego-based DataQuick.
On average, Southland sales have declined 9.3 percent between August and September since 1988, when DataQuick’s statistics begin.
Last month’s sales were 19.9 percent below the average number of sales – 23,862 – in the month of September. Southland sales haven’t been above average for any particular month in more than seven years. September sales have ranged from a low of 12,455 in September 2007 to high of 37,771 in September 2003.
The median price paid for all new and resale houses and condos sold in the six-county region last month was $382,000, down 0.8 percent from $385,000 in August and up 21.3 percent from $315,000 in September 2012. The $385,000 median in June, July and August was the highest in more than five years.
The median price has risen on a year-over-year basis for 18 consecutive months. Those gains have been double-digit – between 10.8 percent and 28.3 percent – over the past 14 months, and they have been greater than 20 percent for the last nine months.
September’s median remained 24.4 percent below the peak $505,000 median in spring/summer 2007.
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Proposition 60 allows transfers of base year values within the same county (intracounty). Proposition 90 allows transfers from one county to another county in California (intercounty) and it is the discretion of each county to authorize such transfers.
The County Assessors will require a copy of the tax bill from the other county and a copy of the applicant’s birth certificate to be included with the application. Also include a copy of the grant deed for the new purchase and a copy of the closing statements of both sale and purchase.
Summary of eligibility requirements:
- The seller of the original residence, or a spouse residing with the seller, must be at least 55 years of age, as of the date that the original property is transferred.
- The replacement property must be of equal or lesser “current market value” than the original.
- The base year value of the original property cannot be transferred to the replacement dwelling until the original property is sold.
- The replacement property must be purchased or newly constructed within two years (before or after) of the sale of the original property.
- The owner must file an application within three years following the purchase date or new construction completion date of the replacement property.
- This is a one-time only filing. Proposition 60/90 relief cannot be granted if the claimant, or spouse, was granted relief in the past.
- The taxpayer is not eligible for the tax relief until they actually own AND occupy the replacement dwelling as their principle residence.
As of September 19, 2013, the following nine counties in California have an ordinance enabling the intercounty base year value transfer:
Alameda – El Dorado – Los Angeles – Orange – San Diego
San Mateo – Santa Clara – Riverside – Ventura
Since the counties indicated above are subject to change, we recommend contacting the county to which you wish to move to verify eligibility. If you have any questions, the property tax office in Sacramento may be reached by calling: (916) 274-3350 or visit http://www.boe.ca.gov/proptaxes/faqs/propositions 60_90.htm
The information set forth herein is intended as an overview and should not be construed as legal, financial, or tax advice. Consult your tax professional