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HOME OWNER ASSOCIATION RULES
Posted on December 12, 2018 Leave a Comment
HOME OWNER ASSOCIATION – RULES FOR INCREASING DUES “Regular” assessments are “monthly dues” used for day-to-day expenses and reserves for repair/replacement of major components (i.e. roof, parking lot and other common area improvements). “Special” assessment are for one-time costs to repair/replace major components due to either an unanticipated loss (fire, flood or casualty) or underfunded […]
Foreign Investment in Real Property Tax Act “FIRPTA”
Posted on November 19, 2018 Leave a Comment
FOREIGN SELLERS – BUYERS OWE THE IRS TAX Congress enacted the Foreign Investment in Real Property Tax Act (“FIRPTA”) in 1980. It is a little known IRS rule that buyer’s owe the seller’s income and/or capital gain tax when purchasing California property from a “Non-Resident Alien.” For example, assume that you are purchasing a single […]
DISCLOSING SEPTIC OR SEWER
Posted on October 29, 2018 Leave a Comment
DISCLOSING SEPTIC OR SEWER Listing Agent Liability. Listing Agents and Sellers should be careful when disclosing whether a property is on “septic system” or “public sewer”. I receive at least ten disputes every year where a buyer is threatening to sue the Listing Agent/Broker because the MLS states “public sewer” when he/she discovers after close […]
Transfer of Base Year Value for Persons Age 55 and Over
Posted on August 29, 2018 Leave a Comment
TRANSFER OF BASE YEAR VALUE FOR PERSONS AGE 55 AND OVER Base Year Transfers? California law allows a homeowner 55 years or older a one-time option to transfer the Base Year Value of the original property to a replacement property of “equal or lesser” value. What are Propositions 60 and 90? Propositions 60 and 90 […]
CAN AGENT’S CORPORATION RECEIVE COMMISSION
Posted on June 29, 2018 Leave a Comment
CAN AGENT’S CORPORATION RECEIVE COMMISSION I have received many recent calls from agents asking if the broker can pay their commission to their corporation or limited liability company (“LLC”). Old Practice. Historically, a broker could not pay commission to the agent’s corporation or LLC. Business & Professions Code section 10137 required brokers to pay commission […]
ADVERTISING DISCLOSURE RULES 2018
Posted on May 4, 2018 Leave a Comment
AGENT ADVERTISING DISCLOSURE RULES: I have received many recent calls concerning Advertising Disclosure Rules, Team Names and Fictitious Business Names. In 2016, California Association of Realtors® sponsored AB1650, which clarified advertising disclosure requirements. Those requirements became law in 2017 and are summarized as follows: Definition. The term “Solicitation Material” means first point of contact material […]
AVID Disclosures Newsletter
Posted on April 11, 2018 Leave a Comment
AVID (AGENT VISUAL INSPECTION DISCLOSURE) TIPS 1. RESIDENTIAL PROPERTIES: The AVID is required for all residential properties consisting of 1-4 dwellings. If a Property is mixed use, such as a commercial property with a home in the back, then the AVID is required for the “Residential” portion only. 2. INSPECTION OBLIGATION: An agent has a […]
PERSONAL ASSISTANTS – DO’S & DON’TS
Posted on April 2, 2018 Leave a Comment
PERSONAL ASSISTANTS: WHAT CAN THEY DO? Many agents hire personal assistants to help them with secretarial and/or organizational tasks. If the personal assistant is not licensed by the BRE, then that assistant cannot do anything that requires a California salesperson license. Business & Professions Code §10132 A personal assistant cannot be paid a commission. A […]
FENCES AND WALL MAINTENANCE/REPLACEMENT
Posted on October 13, 2017 Leave a Comment
Each windy season I receive calls from homeowners whose fences/walls were damaged by wind and want to know if the neighbor is responsible for half of repair or replacement cost. The Law California law requires adjacent homeowners to share equally in the cost of repair or replacement of common fences. Civil Code §840(a) states: (a) […]
DISCLOSURE OF SOBER-LIVING FACILITIES
Posted on September 7, 2017 Leave a Comment
DISCLOSURE OF SOBER-LIVING FACILITIES What is a Sober-Living Facility? A Sober-Living Facility is a group home for recovering alcoholic and/or drug users. These facilities are generally operated in residential areas by owners who purchase the homes with the intent to profit from the operation of these facilities. Under California Health and Safety Code section 11834.22, […]
