Software SketchUp 8 Pro

Yes. As already mentioned, the special assessment can be added to your property tax bills until your portion of the tax is paid off. A schedule of maximum special tax payments over a period of 25 years is available to homeowners prior to the close of escrow. Those who purchase a new home also have the option to pay for their Mello-Roos tax in it’s en- tirety at the time they buy. However, because statistics indicate that the average homeowner in California moves every 7 years, it’s often prudent to spread the payments over time.

Why Can’t Builders Bear the Cost of these Facilities?

They can. But ultimately, the builder must recover these considerable costs in the form of higher home prices. Com- mercialconstruction loans acquired by builders typically incur higher rates of interest than CFD financing, which ac- crues at significantly lower rates.

Mello-Roos Makes Sense

Buying a home is the most important decision most of us will ever make. Mello-Roos offers the security of knowing that your community will continue to prosper and grow in ways that are most beneficial to it’s residents.

FAST FACT

UNDERSTANDING PROBATE

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Everyone has a will or plan, whether created or by default. Even if you have not made out a will or a trust, you still have a plan – a plan dictated by the laws of the state where you reside upon your death. Making a will is not a way to avoid “probate”, the court procedure that changes the legal owner- ship of your property after your death. Probate makes sure it is your last valid will, appoints the executor named in your will and supervises the executor’s work. You can do several things now that can help your executor and family later, hopefully much later on.

I am in possession of a will that distributes the decedent’s estate to me, isn’t this all I need?

No. The will must be admitted to probate and the estate of the decedent must be “probated.”

What does “probate” actually mean?

Generally, probate is a court proceeding that administers the estate of an individual.

What is the purpose of “estate administration”?

1. Generally, there are five purposes, many of which have subsets to them:

2. To determine that the decedent is in fact dead, 3. To establish the validity of the will,

4. To identify the heirs and devisees of the decedent, 5. To settle any claims that creditors may have against the estate of the decedent, and

6. To distribute the property.

Who is the Public Administrator?

Generally speaking, a public administrator is a person or entity appointed by the State to act when there is no will or relatives.

What is the difference between “Testate” and “Intestate”?

When one is said to have died “Testate,” it means he or she died leaving a will. If one is said to have died

“Intestate,” it means he or she died without leaving a will.

What is the difference between an executor and an administrator?

An “executor” carries out the directions and requests set forth in the decedent’s will. An “administrator” is

appointed by the court to manage the estate of a decedent who dies intestate.

If there is no will, how is the property of the estate distributed?

Sections 6400 through 6414 of the California Probate Code addresses intestate succession and the distributions. The method and manner of intestate distributions is quite complex and therefore one should specifically discuss intestate distributions with his or her legal advisor.

What are the steps to a normal uncontested probate?

Very generally speaking they are as follows: 1. Death of the decedent.

2. The will is delivered to the executor or Court Clerk. 3. A petition is filed for the Probate of Will or Letters of Administration.

4. A hearing is held on the petition.

5. Letters of Administration are issued by the Court. 6. Notice to creditors is given.

7. Inventory and appraisement of the estate is made by an independent

probate appraiser.

8. File Federal estate tax return. Return states “No Tax Due” or specifies an amount due.

9. Final accounting and petition for distribution. 10. Final decree of distribution.

11. Discharge of personal representative

While real property is “inprobate” can it be sold?

Yes. Without getting into too much detail it can be sold either at private sale in which the executor of the estate negotiates a transaction with a buyer or at public sale in which the property is sold at public auction.

If there is no will, how is the property of the estate distributed?

Sections 6400 through 6414 of the California Probate Code addresses intestate succession and the distributions. The method and manner of intestate distributions is quite complex and therefore one should specifically discuss intestate distributions with his or her legal advisor.

FAST FACT

LIFE OF AN ESCROW

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Prepare Escrow Instructions And Pertinent Documents

Obtain Signatures

Process Financing Order Title Search

Receive and Review Preliminary Report Receive Demands (if any)

Request Clarification of Other Liens (if any) and Review Taxes on Report.

Request Beneficiary Statement and Enter into file...Review Terms of Transfer and

Current Payment Status (Is Prior Approval Necessary to Record?)

Request Beneficiary

Statement New Loan ApplicationRequest or Prepare Obtain Loan Approval and Determine that

Terms are Correct Request Loan

Documents Receive Demands and

Enter into File

Review File to Determine that All Conditions Have Been Met and that All Documents Are Correct and Available for Signature (termite inspection, contingencies released, fire insurance ordered, Additional documents...second deed of trust, bill of sale, etc...have been prepared)

Figure File and Request Signatures on All Remaining Documents Forward Documents to

Title Company Papers & Documents

Needed for Escrow SELLER: Escrow Instructions Statement of Information

Loan Information Form Commission Instructions

Grant Deed 1099 Tax Form

Amendments Demand(s) on Existing Liens Homeowner’s Association De-

mand Termite Report

City Report Termite Clearance Home Protection Policy

Forwarding Address

Complete Closing Forward Final Documents to All Interested Parties...Buyer, Seller, Lender

Close File: Prepare Statements and Disburse Funds

Order Recording Funds Request Loan Funds

Obtain Funds From Buyers

Return Loan Documents

Papers & Documents Needed for Escrow

BUYER: Escrow Instructions Statement of Information Insurance Information Form

Deposit Vesting

Change of Ownership Form Amendments New Loan Documents Receipt for City Report Receipt for Termite Report All Contingencies Removed

Fire Insurance Policy Closing Funds

FAST FACT

STEPS FOR A SUCCESSFUL ESCROW

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1. When you open escrow, specify “Pacific Coast Title” for your title insurance. Ask for your Escrow

Reference number to use for all future communications.

2. Read and understand the Preliminary Title Report. If an item is not understood, phone your es-

crow officer or title officer.

3. COMMUNICATE with your escrow officer. He/She must be instructed when to order payoffs, re-

leases, etc. It is important that you keep him/her informed as to loan approval and related issues.

4. Inform your escrow officer if any changes occur. All changes should be in writing. Remember,

with rare exceptions, escrow acts only on MUTUAL instructions.

5. It is important to understand the fiscal tax year, debits, credits, prepaid interest, impounds, and

due and delinquent dates in order that this information will be easily understood by your client.

Familiarize yourself with “normal” buyer’s and seller’s closing costs.

6. Check each signature for accuracy as to middle initials and spelling. Have your client sign exactly

as shown on the document. Make sure all required documents are signed and notarized when ap-

plicable.

7. Double check all papers and documents before returning them to your escrow officer to verify

the following:

a. They are signed properly. Any and all changes are initialed.