Title Tech: Crunch Numbers Via Social Media

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Did you know…

That you can use our Pacific Coast Agent app to educate both buyers and sellers via social media about the fee’s associated with buying or selling their home? Yep, that’s right.

The custom marketing section with our Pacific Coast Agent Pro version comes with some great customizable marketing pieces that you can use to post directly to your Facebook, Twitter, or LinkedIn profiles.

So whether it’s a purchase or a sale you will be able to give them an accurate estimate that includes Title & Escrow.

Download our app now:

IPhone

https://itunes.apple.com/us/app/pacificcoastagent-2.0/id434589544?mt=8

Android

https://play.google.com/store/search?q=pacific%20coast%20agent%203.0&hl=en

Title Thursdays: Why Title Insurance is the best Investment

Real estate business concept - hand of a businesswoman or a buyer holding a white cutout house over green grass.

Why is Title Insurance the best investment you can
make to protect your home?

Title insurance protects the interests of property owners and lenders against legitimate or false title claims by previous owners or lien holders. It insures the investment, unlocking its potential as a financial asset for the owner.

At Pacific Coast Title we access, assemble, analyze, and distribute title information, in addition to handing escrow and closing. Title problems are discovered in more than one-third of residential real estate transactions. These “defects” must be resolved prior to closing. The most common problems are existing liens, unpaid mortgages, and recording errors of names, addresses or legal descriptions.

A homeowner’s title insurance policy protects the owner for as long as he or she has an interest in the property; and the premium is paid only once, at closing. Title insurance is different from other forms of insurance because it insures against events that occurred before the policy is issued, as opposed to insuring against events in the future, as health, property or life insurance do. Title insurance is loss prevention insurance.

Pacific Coast Title relies on a thorough search of existing records to identify all possible defects in order to resolve them prior to issuing a policy. We perform intensive and expensive work up-front to minimize claims. The better we do this, the lower our rate of claims and the more secure your level of protection. Researching titles is extremely labor-intensive since only about 15 percent of the public records are computerized.
The industry invests a substantial amount of time and expense to collect and evaluate title records. On a combined basis, the total of operating expenses and loss expenses (claims) of title insurance amounts to 98.3 percent of revenue, while only the remaining 1.7 percent comprises the historical profit margin in the industry.

In the majority of states, title insurers must file rates for state regulators to approve before use. A few states actually set the rates title insurers can charge as well as the premium split between insurers and agents. State regulators pay close attention to the rates filed by insurance companies to ensure they accurately reflect loss ratio and profits. Dollar for dollar, title insurance is the best investment you can make to protect your interest in one of the most valuable assets you own: your home. Title insurance insures a real estate investment, unlocking its potential as a financial asset for the owner. As such, title insurance plays a major role in the confidence that lies at the heart of our nation’s real estate market and economy.

At Pacific Coast Title, the security of our policyholders is our number one priority.

Title Tech: Become a Neighborhood Expert

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Our Pacific Coast Instant profile app helps you quickly become a neighborhood expert in regards to recent sales and transfers. Many of our clients love that they can access current sales data, ownership information, and property documents all from their mobile device. See below for some great information regarding recent sales.

MORE THAN A PROFILE…

Did you know, That our Pacific Coast Instant Profile app comes with a few features that help you stay on top of all the recent sold properties in your farm area. Along with property profiles many of our clients use our app to pull of the following:

  • Recent Sales Comparables
  • Area Sales Analysis
  • Nearby Neighbors.

All which have proven helpful for both obtaining property information as
well as streamlining their farming efforts.

Want to get setup? Contact Us Today!

Title Tips: Easements

Easement

 

What is an Easement?

An easement is a non-possessory right to use and/or enter onto the real property of another without possessing it. It is “best typified in the right of way which one landowner, A, may enjoy over the land of another, B”.

We should always be concerned about encroachments; whether the seller’s use of those five square feet of the neighbor’s property is for a garden or parking space this is a problem. Can we expect that the neighbor will continue to permit it? It is a problem and we cannot expect the permissive user to continue. If a there is an easement present and you are the buyer;

The seller must establish the following:

• The use was visible, open, notorious (i.e. that the neighbor knows about it)

• There was never expressed permission

• The use was continuous for at least five years

If the seller cannot establish these elements the use may constitute an encroachment over the boundary line and a trespass.

Never assume that a neighbor will continue to allow the encroachment. Unless a prescriptive easement is legally confirmed, and recorded, the neighbor could always file a complaint, force the buyer to remove the encroachment and bar your client from crossing the actual property boundary line. Of course, subject to your client’s consultation with an attorney, there are some options:

• Either the seller, if the issue is discovered prior to close of escrow, or the new buyer, if after close, could negotiate a settlement or title in return for compensation.

• Or, they could agree that an easement will never be granted, but that the neighbor will give revocable permissions (a “license”) to use the property. In any event, once the issue is raised, the parties must consult counsel and resolve it before the close of escrow.

if you have any more questions on this please feel free to contact us.

Title Thursday: What is Mello Roos Tax?

WhatisMelloRoose

 

WHAT IS A MELLO-ROOS FEE?
A Mello-Roos fee is a separate charge on a property tax bill in addition to the 1% property tax rate allowed by Proposition 13. The funds are used exclusively to pay for public facilities such as police and fire departments, schools, parks, roads and libraries, etc.

HOW ARE MELLO-ROOS ASSESSMENT FEES ESTABLISHED?
Mello-Roos fees are normally established at the request of a major developer to finance the
necessary public facilities to serve the new development. The public agency issues tax-exempt bonds
to pay fo over a number of years. Commercial and industrial property owners are also subject to Mello-Roos.

WHO AUTHORIZED THE ESTABLISHMENT OF MELLO-ROOS DISTRICTS?
The Mello-Roos Community Facilities Act of 1982 was co-authored by Senator Henry Mello and Assemblyman Mike Roos and authorized by State law to allow any public agency to implement fees and issue the necessary tax exempt bonds.

HOW CAN I DETERMINE IF MY PROPERTY IS IN A MELLO-ROOS DISTRICT?
Your property tax bill will identify Mello-Roos fees as a Community Facilities District (CFD), followed by a number and the amount of tax.

HOW MUCH IS A TYPICAL MELLO-ROOS ASSESSMENT FEE?
Typically, a formula that relates to the size of the home (lot size or square footage) is used to determine the amount of an individual assessment. The amount of taxes is established before the home is built and is not based on the current value of the property.

HOW DO I PAY THESE TAXES?
Your Mello-Roos tax will typically be collected with your general property tax bill.

WHAT HAPPENS IF A TAX PAYMENT IS LATE?
Because the Mello-Roos tax is usually collected with your general property tax bill, the Facilities District that obtained the lien may withdraw the assessment from the tax roll and begin foreclosure proceedings. Mello-Roos taxes are subject to the same penalties that apply to regular property taxes.

HOW LONG WILL THESE MELLOS-ROOS FEES LAST?
Typically, the bonds are paid off in 20 years, but State law allows up to 40 years. Those who purchase a new home have the option to pay for their Mello-Roos tax in its entirety at the time of purchase.

WILL MY MELLO-ROOS FEE INCREASE?
It can, however, this special tax can increase only at a maximum rate of 2% per year over a 25 year period. On the other hand, it’s also possible that this tax will decrease, should State or other funds become available that could be used to reduce existing bond indebtedness, or be used to construct new facilities in lieu of additional bond sales.

WHO CAN I CONTACT REGARDING MELLO-ROOS FEES?
Contact your local County Assessor’s Office. They have the phone numbers and names of persons to call for each Mello-Roos District.