Rags to riches stories of Hollywood celebrities – find out how much the house they grew up in cost and how much the one they live in now costs.

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“Short Sales and REO transactions get special treatment, but the stringent CA requirements keep things above board.”

The California Civil Code has stringent requirements for owners to disclose to potential buyers problems that could affect the property’s value. And, this goes beyond the physical defects like the leaking roof or the cracked foundation…the buyer will likely find those on their own. The laws require that you disclose ANY problem…even a loud neighbor, a nearby noisy heliport or the fact that the train blows a whistle right beside the house every morning at 1 a.m.

California sellers must fill out and give the buyers a disclosure form listing a broad range of defects — such as a leaky roof, deaths that occurred within three years on the property, neighborhood nuisances such as a dog that barks every night, and more. In addition, California sellers must disclose potential hazards from floods, earthquakes, fires, environmental hazards, and other problems, in a Natural Hazard Disclosure Statement. California sellers must also alert buyers to the availability of a database maintained by law enforcement authorities on the location of registered sex offenders.
I always recommend that my clients err on the side of over-disclosure. If you question whether or not you should disclose it, you should! Such disclosure not only increases buyer’s confidence in the integrity of the deal but also protects you from legal problems later.

The CA Association of Realtors (CAR) has made it simple (not to be confused with “easy”) to comply with the laws by providing a number of documents that essentially walk you through the process. The California Residential Purchase Agreement (CAR form RPA) lists the disclosures a seller must deliver to the buyer.

The Real Estate Transfer Disclosure Statement (CAR form TDS) is a 3-page comprehensive document that requests information and details such as the condition of appliances in the house, significant defects or malfunctions in or around the structure, materials or substances that pose an environmental hazard, structural changes in violation of zoning or building codes and neighborhood noise issues, etc. Realtors, sellers and buyers must acknowledge receipt of the TDS by signing and dating.

CAR also provides a Seller Property Questionnaire (form SPQ) and  a Supplemental Statutory and Contractual Disclosure (form SSD) to help Sellers comply with the law. These forms require that deaths which occurred on the property within three years be disclosed and alert buyers to the availability of the registered sex offender database available online.
Filling out these forms can be tedious but it is one of those things you do not want to treat lightly.

In addition, a Natural Hazard Disclosure Statement (NHD) must be provided to buyers. This covers earthquake, fault line and flood information in the area of the home; illegal/controlled substance contamination notice, notice of supplemental property tax assessment as well as disclosure of industrial use or military ordinance location nearby.

If your home was built before 1978, you must comply with a federal law called the Residential Lead-Based Paint Hazard Reduction Act of 1992 (U.S. Code § 4852d), also known as Title X. You must:

1. disclose all known lead-based paint and hazards in the house
2. give buyers a pamphlet prepared by the U.S. Environmental Protection Agency (EPA) called Protect Your Family from Lead in Your Home
3. include certain warning language in the contract as well as signed statements from all parties verifying that all requirements were completed
4. keep signed acknowledgments for three years as proof of compliance, and
5. give buyers a ten-day opportunity to test the house for lead.

Any Exemptions?

The following transfers are exempt from these disclosure requirements:

1. The sale of new homes as part of a subdivision project where a public report must be delivered to the purchaser or a public report is not required.
2. Foreclosure sales
3. Court ordered transfers
4. Transfers by a fiduciary in the administration of a decedent’s estate, a guardianship, conservatorship, or trust except where the trustee is a former owner of the property
5. Transfers to a spouse or to a person or persons in the lineal line of consanguinity
6. Transfers resulting from a judgment of dissolution of marriage
7. Transfers from one co-owner to another
8. Transfers by the State Controller for unclaimed property
9. Transfers resulting from failure to pay taxes
10. Transfers to or from any governmental entity

How About Foreclosures – Short Sales and REO (bank-owned) Sales?

Short sales afford buyers the customary comfort of disclosures from the party who has spent some time in the home…the seller. Short sales sellers are not relieved of any of the responsibilities to disclose.

Once the bank has taken possession of the home, whether through foreclosure or deed-in-lieu of foreclosure, and puts the home on the market, rules change. The bank can’t speak to any issues beyond what they have learned through the process of preparing the home for sale. CAR form REO) goes along with an offer on a bank-owned property, defining disclosure exemptions and requirements that pertain to REO property transactions.

The banks are exempt from providing the Transfer Disclosure Statement, Mello-Roos and 1915 Bond Act Assessments, Private Transfer Taxes, Natural Hazards Disclosure Reports and are not obligated to provide buyers with the Residential Environmental Hazards Booklet.

To learn more about specific disclosures, ask me to send you my eBook on this topic which includes all of the disclosure forms. Also, click here to see charts of the disclosure docs you can expect in a CA real estate transaction.

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Advice on Buying Real Estate in South Bay

The value of real estate in South Bay is variable. Real estate may cost more in the Beach Cities (Manhattan Beach, Hermosa Beach and Redondo Beach), for instance, than in the other South Bay areas like Lomita, San Pedro and Torrance. A lot of factors have to be taken into consideration in the valuation of real estate. Those situated in first-rate and major areas in South Bay make up what is known as prime property. You will have to pay more for real estate situated in such places.

The purchase of a South Bay real estate means using up your earnings and hard-earned savings. As such, very thoughtful considerations have to be made. If you you’re a first time buyer, the process isn’t easy. So foremost is to look for a credible and reputable real estate agent. Talk to him. Tell him what you are looking for in a South Bay area home, including location, budget, family preferences, and such other matters that you consider important in the choice of the real estate you will be purchasing. The purchase of a property in the Palos Verdes Peninsula area, for instance, can be different from the purchase of a property in the Beach Cities. Thus, a real agent can guide you along the way.

Buying Real Estate on Your Own

Opting to do the purchase a real estate property by yourself can be very difficult. In the long run, it may prove tedious and instead of making a saving, you can end up paying more. Getting help from a professional can prove beneficial and advantageous to you as a first time buyer.

The value of real estate in the Palos Verdes Peninsula (Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills and Rolling Hills Estates) can be high. The value of real estate properties in this South Bay area may even go higher on a daily basis. You may not have a hard time finding a Palos Verdes Peninsula property to your liking, but the price may be what would stop you. Still, a real estate agent can provide you with a range of prices for properties in this South Bay area that you can afford or are willing to pay.

If you are going to deal in the buying or selling of any property in South Bay, it is also wise to get the services of a real estate lawyer. He can give you assistance with the necessary papers needed in the consummation of the deal. You can have him review all the papers before signing. It is also important that you are accompanied by your own lawyer when you meet with the other party and the other party’s lawyer.

When you are properly advised and represented, searching for that dream property in South Bay will become a realization. And you will be spared of all the ensuing headaches and heartaches.

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South Bay home buyers and home owners can learn a great deal about dealing with expansive soil issues from the City of Torrance. Several areas within the City of Torrance contain differing amounts of expansive (also called adobe or clay) soil. Expansive soils are naturally occurring materials found in low lying regions and flood plains. In Torrance, such regions are the Walteria Lake area, between South High School and Hawthorne Boulevard and most of North Torrance, north of 190th Street and east of Hawthorne Boulevard. Read some history – CLICK HERE.

Most locations in Torrance originally required fill before housing tracts could be built due to poor drainage which filled with water after the winter rains. At the time of the land filling the developer used proper filling procedures, but soon after problems developed in the area due the expansive nature of the fill. The filling procedure came to be considered improper. The fill contained Adobe soil which is “expansive”.

Expansive soil is subject to swelling and shrinkage, varying in proportion to the amount of moisture present in the soil. As water is initially introduced into the soil an expansion takes place. When dried the soil contracts, sometimes leaving small fissures or cracks in cement or stucco or interior sheet rock. Excessive drying and wetting of the soil progressively deteriorates structures over the years. This excessive wetting and drying causes damage due to differential settlement within buildings and other improvements.
Major problems ensued with walls and chimneys falling down, changes in the angle of flooring, doorways becoming distorted and more. Many homes were in such bad shape that they had to be completely torn down. Since a large area was filled improperly there is little that can be done to solve the issue. Residents however have adjusted to this condition .
If your home or a home you are considering purchasing is located in these areas, it is likely that you will experience more hairline cracks in the walls and slabs than a home built on sandy soil. This is due to the native soil in the area, and not much can be done to prevent minor soil movement. You can, however, protect your house from major damage, and minimize the minor cracking by taking a few precautions to ensure that the soil under the foundation does not become either saturated or completely dried out. The following guidelines are intended to assist you in that regard:
1. Proper drainage after a rain is the most important single factor. Rainfall should run off the property as fast as possible following a storm. Re-grading of the lot and installation of a drainage system may be necessary to alleviate the drainage problem.
2. Installation of rain gutters and downspouts can help in the elimination of a drainage problem, but be sure that the downspout outlet does not discharge close to the structure, as this could cause more of a problem. The discharge point should be on walkways, driveways or other paved areas away from the building. Drainage should then flow directly to the street.
3. In the summer water your lawn lightly two or three times a week. Heavy watering is not recommended as this could saturate the foundations. However, it should be emphasized that a uniform moisture condition around foundations should be maintained throughout the year. This will prevent periodic drying and wetting which will cause damage to structures.
4. Monitor your water consumption. An unexplained increase in your water bill could indicate a plumbing leak. Any leak should be repaired immediately, as the soil around the foundation could become saturated and distressed if the leak is allowed to continue for a long time.
5. If you notice a number of ground fissures or cracks in a short period of time, it would be in your best interest to contact a soil engineer who specializes in expansive soil problems. A soil engineer can investigate the problem and make specific recommendations for elimination of the problem and repair of your home.
6. Planting trees within about ten feet from the house is not recommended. Trees tend to extract moisture from soil causing shrinkage.

Below is a map showing the most impacted areas. Contact the City of Torrance for further information.

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Rocky

This lovely family home is now a pre-foreclosure short sale.

For information about it or for information about how short sales work – call Mike “Rocky” Rockwood at 310-872-9837 or email me at Mike.R.Rockwood@gmail.com

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This Lovely family home is in one of the most popular spots in the South Bay. It is offered in a pre-foreclosure deal, so it MAY be the perfect home at the perfect price if you are a patient buyer.

Call Mike “Rocky” Rockwood (DRE #01407642) to arrange to see the home or to learn more. I’d be glad to supply more pictures and help you understand all the details of the opportunity.  Call me at 310-872-9837 or email at Mike.R.Rockwood@gmail.com

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This week Sarasota Real Estate Pro Marc R. guest blogs on his experience navigating this market. If you have arrived looking for Rancho Palos Verdes Foreclosures please visit our Palos Verdes Foreclosure page.

By: Marc Rasmussen – Sarasota FL real estate

No, you have not.

Foreclosure Deals Tantalize

“Foreclosure!”, “Short sale!”, “Smokin hot deal!” These are the buzz words in today’s real estate market. It is hard to read a news article about real estate and not see some reference to distressed sales. That is understandable since it is a national problem from the popping of the housing bubble.

Realtors joke about how we hear these words from virtually every single home buyer. There is nothing wrong with this. If you are in the market to buy a home you should be looking for a great deal. If you aren’t then something is wrong.

However, expectations of today’s home buyers need to be realistic. Despite a challenging real estate market properties are selling. Properly priced homes for sale in Sarasota see plenty of action. I have several buyers that have made offers on bank owned homes only to lose them to other buyers. A home priced right will see very little discount from asking price, if any. Some sell for more than list price. It is great to see a liquid and efficient housing market. If a home comes on the market that is under-priced it usually sees multiple offers the first day. That is a sign of a relatively healthy housing market. If you put a home on the market that used to sell for $200,000 for $20,000 and you get no action then you probably have bigger problems to worry about.

Many buyers start their search with the notion that they are going to get a huge discount from list price. Real estate is local so figures are different city by city but the average discount in Sarasota, Florida is hovering around 5% from list price. I suspect the same for many other areas of the country. Ask your Realtor what this statistic is in your area.

Managing these expectations could save you a bunch of time, aggravation and headache. If your average discount is 5% and you can afford a $300,000 home then you probably should not be looking at homes priced at $500,000.

Some buyers have been waiting on the sidelines for “the bottom”. No one knows for sure if the market has bottomed or not. Again, it will depend on your particular area. Some buyers are worried that they missed the boat in finding a great deal. That is not true. Most real estate markets across the country have not started appreciating.

A Bigger Problem

Have you missed the ultimate bottom? Maybe. Have you lost out on a bunch of money by missing this bottom? No. There is one thing you do need to worry about. You may not be able to find a home you actually like. You are losing your options. This means you cannot be as picky.

Many Sarasota home buyers can’t find a home they like. As the market corrects fewer and fewer homes will come on the market. The only way the market can bottom is with lower inventory. We need more and aggressive buying then we do selling and that is when you will start see home prices rise again. If you are a super picky buyer you may have trouble finding a suitable home.

Like stocks you are most likely not going to pick the absolute bottom of the real estate market. But, you don’t need to. You just have to get close. If you believe we are close to the bottom then you need to start looking for a home because as it looks now you will have fewer and fewer options as time goes on.

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Located in one of the most highly sought after areas of South Redondo. Three bedrooms, 2 baths with 1,575 SF (per seller) of remodeled and custom living space. The kitchen is out of a magazine. No expense spared with granite counters, marble floors, center island, “Goddess Diana” inlay art set in marble, All high end Stainless appliances(Kitchen Aid refridgerator, convection/conventional oven and microwave), over head lighting, custom chandelier, recessed lighting and white wood cabinetry. Living/dining area has marble faced fireplace and plenty of window space. Entire interior of house has new paint, hardware and window coverings. Master suite features French doors to back yard, ceiling fan and walk- in closet. Both  baths have fine fixtures, pedestal sinks and large vanities.

Back yard is a retreat. Gazebo, deck, grass area, mature foliage, boysenberries, and a nectarine tree.

Huge 4 car detached garage capable of storing boat and additional recreational vehicles and toys!

Call me for details – Mike “Rocky” Rockwood at 310-872-9837 or email at mike.r.rockwood@gmail.com

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"Palos Verdes Home Safety"

3 Steps to a Safe Home

The holiday season is supposed to be a joyous time of the year. Yet, for some, the holiday season isn’t all that it is cracked up to be. Not only do holiday decorations pose a potential threat if they are not handled properly, but this special time of the year is also known to bring the thieves out of the woodwork. Combine this with the fact that the winter months can be quite harsh on a home and there are many steps that need to be taken in order to ensure a jolly holiday season.

Step #1: Prepare Your Home for the Winter Months

One of the most important steps you can take to keep yourself safe during the winter is to prepare your home for the harsh winter months ahead. Be sure to test your smoke alarms each month and to install smoke and carbon monoxide alarms in every level of your home. In addition, be certain to call a qualified heating contractor to inspect your furnace and heating system before you start it up. To keep your furnace operating efficiently and safely, don’t forget to clean or replace your furnace filters regularly.

Step #2: Decorate with Care

Decorating for the holidays is one of the most exciting parts of the holiday season, but it can also be quite dangerous if it is not handled with care. If you are climbing up a ladder, be sure to use one that is right for the job. In addition, when hanging outdoor lights, use plastic clips or insulated tape rather than nails or staples. This way, you can be certain the lights will not be damaged in the process. Before you start hanging your lights, however, make certain they are in good shape and that you are following the manufacturer’s recommendations. As a general rule of thumb, no more than three strands of lights should be connected. Furthermore, outdoor lights should only be used outside and indoor light should never be used outdoors.

Step #3: Keep Yourself Safe from Thieves

The holiday season is a tempting time of the year for thieves. After all, they are well aware that homes are filled with all kinds of goodies during this time of the year. In addition, for those who are desperate to find gifts for their loved ones, those who normally don’t steal can sometimes be pushed over the edge. To protect yourself from thieves, make certain to lock your doors and windows and to keep your presents out of sight. If you will be leaving to visit relatives for an extended period of time, ask someone to watch your house and place a television, a radio or some lights on a timer so it looks as if someone is home.

About the Author: John Allen sells Sarasota FL real estate, condos and investemnt properties. His websites have extensive information on Longboat Key homes, golf communities, downtown Sarasota condos and more.

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