Category: Escrow

  • When you purchase a property, you have to decide how you want title to read after closing. "Title" is the legal paperwork that states who owns the property. Title can be held by a person, a company, or a trust. This post will explain what your options are and how your name will look on your title in various examples. Examples: John Smith owns a limited liability corporation, called Smith LLC. He also has a trust, called The J. Smith Trust. When John purchases a real estate property, he can choo

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  • Are you aware of California's smoke detector regulations? Read this for details and to make sure you're compliant. Most states require homes have functional smoke and carbon monoxide detectors prior to transferring ownership. It is typically the seller’s responsibility to install detectors, replace dead batteries, or replace the detector entirely, if it’s broken. Resources for Sellers: * The precise requirements for how many detectors are needed per square foot and where they need to be lo

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  • Home Warranty: Defined & Explained

    By Home Bay

    Posted on November 6th, 2014

    A home warranty protects a home buyer from costs associated with home repairs in their first year of ownership. For example, if the dishwasher breaks or if a pipe bursts, the warranty company will pay to fix or replace it. Read on for more details on what a home warranty covers and what it costs. Coverage: A home warranty will typically provide repair or replacement coverage for appliances [https://www.homebay.com/tips/do-you-have-to-fix-everything-before-you-sell-your-house] , plumbing, electr

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  • How are Expenses Prorated at Closing?

    By Home Bay

    Posted on November 7th, 2014

    How are property taxes transferred in a home sale? Who pays HOA dues at closing? How are those fees calculated? This post will explain all of this and more. There are a number of transferable fees due at closing, like property taxes and HOA fees [https://www.homebay.com/tips/hoa-transfer-fees-definitions-costs-more] , that need to be calculated. Proration is the process of dividing various property expenses between the buyer and seller in a way that allows each party to only pay for the days h

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  • In a real estate transaction, buyers and sellers are sometimes faced with an issue they cannot resolve on their own. Rather than litigate (i.e. go to court), the parties can agree to mediation or arbitration. These alternative methods of resolving issues are typically faster and less expensive for both parties, making them preferred options over litigation. The decision to use mediation and arbitration (vs. litigation) is written directly into the Offer to Purchase Real Estate. Mediation vs. A

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  • What Retrofits Are Required by Law?

    By Home Bay

    Posted on November 11th, 2014

    Most cities and counties require that a property be in compliance with updated Health & Safety and Water Conservation standards in order to close escrow. The upgrades needed to satisfy the city or county standards are known as "retrofits" and are typically paid for by the seller. Retrofitting requirements vary by state and county, but typically include: * Installation of smoke detectors [https://www.homebay.com/resources/smoke-detector-regulations] * Installation of carbon monoxide detec

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  • There are a number of fees involved [https://www.homebay.com/tips/what-it-really-costs-to-sell-a-home-seller-fees-explained] in buying and selling a home, and real estate transfer taxes fall into this category. Curious about what transfer taxes are and what types of transfers incur these fees? Keep reading for answers! What is Transfer Tax? When one person (or entity) transfers land or real property to another, the transaction may incur a transfer tax. The tax rate can vary by location [http:/

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  • There are typically two types of Title Insurance: an Owner's Policy and a Lender's Policy. This post will explain what each policy is for, who and what it covers and who pays for it. Owner's Policy: The Owner’s Policy insures the homeowner against defects in the title that were not found during the title search. It is a one-time fee paid at closing and covers the owner or his heirs as long as they have an interest in the property. Hidden title problems that may later arise include: * Forgery

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  • Home Appraisal Fees: Defined & Explained

    By Home Bay

    Posted on November 13th, 2014

    During escrow [https://www.homebay.com/resources/close-escrow], after the home inspection [https://www.homebay.com/tips/everything-you-need-to-know-about-real-estate-home-inspections] has been completed and the buyers have received conditional loan approval, there's usually an appraisal conducted to determine the value of the property being sold. Read on to learn what's involved in an appraisal and what it costs. What is an appraisal: If a buyer is taking out a loan to pay for the house, banks

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  • As part of a real estate transaction, most state laws require that water heaters are braced against a wall. This helps to ensure the water heater will not topple in earthquakes, and thus harm people or break gas lines and cause a fire. Complying with water heater bracing requirements [https://www.homebay.com/resources/government-required-retrofitting] is inexpensive and is typically the seller's responsibility.

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