Understanding Withholdings on Real Estate Sales
Real estate withholding is a prepayment of taxes. It is not an additional tax. Who is responsible for withholding? The law holds the buyer (called the transferee) responsible for withholding. In most real estate transactions, the escrow holder transmits the tax to the Franchise Tax Board. What unit …
Actived: 5 days ago
CLTA FinCEN Resource Center
(3 days ago) Real Estate Professional FinCEN Infographic. Intended for title companies to distribute to real estate professionals with which they are in contact, this infographic quickly breaks down the basics of the FinCEN Geographical Targeting Orders: CLTA FinCEN Real Estate GTO Infographic.
Understanding Common Way of Holding Title
(1 days ago) This important question is one California real property purchasers ask their real estate, escrow and title professionals every day. Unfortunately, though these professionals may identify the many methods of owning property, they may not recommend a specific form of ownership, as doing so would constitute practicing law.
Understanding Subdivision Public Reports
(5 days ago) It is the Real Estate Commissioner's duties, through CalBRE, to issue the Public Reports, license real estate brokers and sales persons, and adopt rules and regulations for the enforcement of the California laws dealing with the real estate industry. How does CalBRE protect the subdivision purchaser?
These common title problems can snag your home …
(5 days ago) Sandy Gadow, author of “The Complete Guide to Your Real Estate Closing,” is a former title officer and licensed real estate agent with more than 20 years of experience. Gadow will answer readers’ questions in future columns. Contact her at [email protected]
Understanding Required Reporting to the I.R.S
(5 days ago) Real estate tax paid in advance that is allocable to the buyer. On what type of transactions is a Form 1099S required? Currently, typical homeowner transactions covered include sales and exchanges of 1-4 family residential properties such as houses and condominiums. Also reportable are sales or exchanges of improved or unimproved land
Understanding Closing & Title Costs
(4 days ago) There are usually a variety of professional services, including such things as real estate commissions, appraisal fees, loan fees, inspections and home warranty. Additionally there will be some prorations between the buyer and seller for ongoing costs such as property taxes.
Understanding Condominium and PUD Ownership
(4 days ago) At what point in the real estate transaction will I be allowed to review a copy of my CC and R's and Bylaws? Legally, it is the responsibility of the owner to provide the prospective purchaser with the governing documents of the development (CC and R's and Bylaws), the most recent financial statement of the homeowner's association and notice of
CLTA Coronavirus Resource Page
(1 days ago) Residential and commercial real estate services, including settlement services. Statement by Secretary Steven T. Mnuchin on Essential Financial Services Workers (March 24, 2020) CA State Public Health Officer Clarifies Definition of “Essential Business” Designations (March 19 , 2020 | Executive Order N-33-20)
(4 days ago) 9/13/2021 CLTA Titlecast - Episode 13 Available Now - Handling a Commercial Real Estate Transaction, Part 2. 8/24/2021 CLTA Annual Directory of Members - Going All Digital in 2022. Calendar more. The upcoming calendar is currently empty.
The Functions of Escrow
(5 days ago) A real estate agent can help identify appropriate lending institutions. When all the instructions in the escrow have been carried out, the closing can take place. At this time, all outstanding funds are collected and fees--such as title insurance premiums, real estate commissions, termite inspection charges--are paid.
Understanding Supplemental Property Taxes
(2 days ago) The Supplemental Real Property Tax Law was signed by the Governor in July of 1983 and is part of an ambitious drive to aid California's schools. This property tax revision is expected to produce over $300 million per year in revenue for schools.
DRE Updates Position on Use of Electronic Signatures
(9 days ago) The Department of Real Estate (DRE) has updated its interpretation on the use of electronic signatures for documents where signatures are required by law. Previously, DRE interpreted Civil Code section 1633.3(b) to preclude the use of electronic signatures on both the Mortgage Loan Disclosure Statement in connection with a loan application and
Understanding the Language of Real Estate
(5 days ago) Mechanic's Lien: A lien on real estate which secures the payment of debts due to persons who perform labor or services or furnish materials incident to the construction of buildings and improvement on real estate. Metes and Bounds: A form of land description in which boundaries are described by …
A Legal Introduction to Easements
(2 days ago) An easement is a real estate ownership right (an "encumbrance on the title") granted to an individual or entity to make a limited, but typically indefinite, use of the land of another. It is not a right of occupancy as such or a right to profit from the land. It is legally considered an "incorporeal" (not physical) right.
Understanding Title Insurance
(5 days ago) Buyers and lenders in real estate transactions need title insurance. Both want to know that the property they are involved with is insured against certain title defects. Title companies provide this needed insurance coverage subject to the terms of the policy. The seller, buyer and lender all …
Understanding Preliminary Reports
(5 days ago) The preliminary report lists, in advance of purchase, title defects, liens and encumbrances which would be excluded from coverage if the requested title insurance policy were to be issued as of the date of the preliminary report. The report may then be reviewed and discussed by the …
Watering Hole Attacks Coming to a Website Near You
(7 days ago) Watering hole attacks have not typically targeted real estate and settlement services in the past, but now we seem to have landed squarely in their crosshairs. So, doing random searches looking for business-specific templates you find and then clicking on a link to download them is an unnecessary risk and one that could affect not just you but
Bay area consumers alerted to outbreak of hackers stealing
(5 days ago) Latest in growing trend of real estate funds phishing scams . June 20, 2016 | Ben Lane. In what’s becoming a disturbingly popular trend, Bay Area consumers are being warned that they may be the target of hackers who try to steal mortgage funds by presenting themselves as real estate agents, Realtors and title insurance companies.
SEC says "first ever cryptocurrency backed by real estate
(6 days ago) SEC says "first ever cryptocurrency backed by real estate" is a fraud Accuses REcoin's funder of lying about initial coin offering . October 2, 2017 | Ben Lane. Back in July, a company called REcoin Group launched REcoin, which it billed as the “first ever cryptocurrency backed by real estate.”
Understanding Living Trusts
(5 days ago) Estate planners often recommend "Living Trusts" as a viable option when contemplating the manner in which to hold title to real property. When a property is held in a Living Trust, title companies have particular requirements to facilitate the transaction. While not comprehensive, following are …
(4 days ago) When prices are rapidly accelerating during a real estate "bonanza", many people go to any lengths available to get into the market through investments in vacation homes, rental housing and "trading up" to more expensive properties. In some cases, this results in the taking on of high interest rate payments and second, third and even fourth
Restrictive Covenant Modification Legislation Amended and
(2 days ago) In addition, beginning July 1, 2022, if a county recorder, title company, escrow company, real estate broker, or real estate agent has actual knowledge that a declaration, governing document, or deed that is being directly delivered to a person who holds or is acquiring an ownership …
Title Insurance: Don't Buy Property Without it
(3 days ago) Purchasing a piece of real estate, be it a family home or retail space, is one of the largest investments you will probably ever make. You think you’re prepared — you stayed within budget, had the property inspected and you took out homeowners’ or business insurance.
Are Real Estate Agents Now Employees
(4 days ago) Since the California real estate law requires brokers to supervise agents, arguably a real estate agent would fail one of the tests for an independent contractor, that is that the worker be free from control and direction. It is also questionable whether the work of a real estate agent …
FRAUD ALERT! Diverted Wire Transfer Scam: Payoff Proceeds
(4 days ago) The fraudsters monitor real estate transaction through internet accessible sites and hacked email accounts. When the property status updates to pending to reflect a sale, the fraudsters start watching the transaction by infiltrating one or more of the parties’ email accounts, which can be obtained from the websites.
Payload Keybox (Formerly Earnestly) Plans Extended
(4 days ago) The system is now targeting a unified real estate payment platform for earnest money deposits, commission disbursements at closing, invoicing for one time or recurring agent commissions and co-broker payments, while allowing integration with a real estate company’s existing platforms.
Fraud in the Real Estate Industry, My How it Has Changed
(5 days ago) Now the FBI reports Business E-mail Compromise (BEC) scams targeting the real estate industry are on the rise 1100%. That’s not a typo, from calendar year 2015 to 2017, there was over an 1100% rise in the number of BEC scams reported to the FBI regarding real estate transactions and an almost 2200% rise in the reported monetary loss.
FinCEN Provides Verbal Clarification on GTO Frequently
(4 days ago) Does this answer change if the corporate buyers portion of the equity in the real estate is less than the reporting threshold? A - The trigger for GTO reporting is whether at least one of the purchasers is a legal entity. This is true even if the legal entity will own a minority or de minimis stake in the property.
"Rockets Away!": More Tech and More Branding in the Real
(4 days ago) The company's partner agent network is one of the largest in the nation, with more than 25,000 agents throughout the country. Rocket Homes new website is designed to let consumers search for homes, connect with a real estate professional and obtain mortgage approval …
Closing Costs, A Primer
(5 days ago) In California, as a rule of thumb, closing costs amount to approximately 11 percent of the total sales price of a home. They usually include a real estate commission, loan fee, escrow charge, title insurance premium, a pest inspection and the like. The title insurance premium usually amounts to less than 1 percent of the purchase price of your
Title Insurance--Where Does Your Dollar Go
(2 days ago) Your real estate professional can help you do this. In addition, there are many helpful customer services provided by title companies which you and your real estate professional may find helpful to your transaction. The issuance of a title insurance policy is highly labor-intensive.
CAR Delays Release of Revised RPA to December 2021
(7 days ago) In a communication to real estate industry groups, the California Association of Realtors® announced that it will delay the release of the revised Residential Purchase Agreement (RPA) until December 2021. The decision was made with the support of the RPA Study Group, a cross-industry group comprised of title and escrow professionals in
FinCEN Requires Title Company Reporting in California
(4 days ago) The GTOs require title insurance underwriters to identify the names of natural persons behind companies that are used to pay all-cash purchases above a certain dollar amount for high-end residential real estate. Only transactions valued at $2M and above will trigger the GTO reporting requirements for the newly named California markets.
Legislature Passes Bill Requiring Redaction of Unlawful
(4 days ago) Effective July 1, 2022, the bill also imposes several new requirements on title and escrow companies, including that they notify a buyer or seller in a real estate transaction to the existence of an unlawfully restrictive covenant if they have actual knowledge that such a restriction is contained within a declaration, governing document, or
CLTA Supports Amended Legislation to Redact Unlawful
(1 days ago) The CLTA has moved to support Assembly Bill 1466 (McCarty), which would enact a program to redact unlawful discriminatory covenants from California real property records, now that amendments supported by the CLTA have been accepted in the California State Senate. As introduced, AB 1466 would have required that a title insurance company identify whether certain real estate documents provided to
Commercial Appraisal Exemption Increased by Feds
(5 days ago) The agencies adopted a new rule effective April 9, 2018, that increases the commercial real estate appraisal exemption to $500,000 and revises the definition of "commercial real estate" to mean a real estate-related financial transaction that is not secured by a 1-to-4 family residential property.
DRE Weighs in on California Consumer Privacy Act and Real
(4 days ago) The California Department of Real Estate (DRE) recently issued its Winter Bulletin stating that it has received inquiries from its licensees, various industry groups, and members of the public about the relationship between CCPA and the Real Estate Law, specifically section 10148, which requires licensees to maintain real estate transaction records for three years.
Why Do You Need Title Insurance
(5 days ago) Title insurance companies provide services to buyers, sellers, real estate developers, builders, mortgage lenders and others who have an interest in a real estate transfer. Title companies routinely issue two types of policies -- "owner's," which cover you, the homebuyer; and "lender's," which covers the bank, savings and loan or other lending
Governor Brown Signs AB 110, Exempting Government Entities
(4 days ago) (B) Any real estate instrument, paper, or notice recorded in connection with a transfer of real property that is a residential dwelling to an owner-occupier. (C) Any real estate instrument, paper, or notice executed or recorded by the federal government in accordance with the Uniform Federal Lien Registration Act (Title 7 (commencing with
Reporting Required by FinCEN for Housing Markets in
(9 days ago) The GTOs require title insurance underwriters to identify the names of natural persons behind companies that are used to pay all-cash purchases above a certain dollar amount for high-end residential real estate. Only transactions valued at $2M and above will trigger the GTO reporting requirements for the newly named California markets.