Category

Disclosures

Nov 06
0

Earthquake Fault Zones and due diligence…

By | Buyers, Disclosures, Sonoma County info | No Comments

fault_types.pngLooking for the perfect home in the perfect neighborhood? There is a little secret I need to share: there is no such thing as the perfect home/perfect place … Ouch… The home might be a great match, the neighborhood might be just perfect but what about natural hazards? WHAT??? one might say…

220px-de_dijk_tussen_kesteren_en_opheusden_tijdens_extreem_hoogwater_van_de_neder_rijn_344320s.jpgYes, Natural Hazards…We are talking about Earthquakes, Flooding, Fires etc. These Hazards are different depending on an area. Living in the Netherlands and about 50% of the Netherlands below sea level, flooding is an important one. Living in Sonoma County, you can live right on an Earthquake Fault zone and in a High Fire Hazard zone (think for instance of Fountaingrove).

This does not mean that these neighborhoods or areas are unfit to live. It means that one has to be aware of these Hazards before the final decision to buy a home,the 3rd party Hazard Report is a report a seller has to provide to a buyer. It is part of the statutory disclosures a seller and their Real Estate agents has to provide. 

There are many 3rd party Hazard Disclosure companies to choose from, one is Property ID. Personally I like their reports since they are easy to read and understand. It is important to go over all the disclosures provided.

Example: living in an earth quake zone means that there are more stringent building codes. This might affect you when remodeling an older home: all of a sudden there are extra requirements adding up to the costs of remodeling. However, these more stringent building codes are for your protection: the likelyhood of your home to withstand an earthquake…

These Natural Hazards also affect your Home Owners Insurance: living in an area with higher risks to be affected by natural disasters results in higher premiums. Recently I sold a home right on the coast of Albion: magnificent location. Small detail: most insurance providers were not willing to insure the property. That is by the way why a good insurance agent/broker is key: my favorite insurance agent, Erin Temple of Vantreo Insurance, was able to find a good insurance company who was willing to insure the property for a reasonable rate… Also lenders require a property to be adequately insured by the way. This is important when buying and refinancing a property.

Moral of the story, is doesn’t matter where you live, it is important to be aware of all material facts affecting the property you decide to buy.

Mirjam

Oct 23
0

Banks not supporting Energy Independence Program

By | Around the house, Buyers, Disclosures, Sellers, Sonoma County info | No Comments

As Kermit in Sesame street sang: ‘It’s not easy being green’

new_kermit.pngSonoma County in general has been promoting lowering our dependence on fossil fuels for a while now. Not only in big things but also in small things like using the old fashioned clothes line for drying clothes. That’s how I grew up in the Netherlands.

A great program that was developed a few years ago is the Sonoma County Energy Independence program (SCEIP

With SCEIP, a home owner can apply for a loan against the property for energy efficient upgrades: Windows, water heater, furnace, solar panels etc. It is a loan against the property, to be paid back in 15 years via property taxes. The current interest rate is 7%. The idea was to encourage home owners to make older homes more energy efficient. And that when a home owner does the upgrades, sells the home that the next home owner can not only benefit from the savings but also help paying for it. Great idea…

However, lenders do not see the loan as part of  assessments on the property taxes. With property taxes generally one also pays for the school, fire department, road bonds… For instance the road bond used to build Fountain Grove Park way is being paid for by home owners as part of the property taxes. Some homeowners have paid it of. When a home is for sale in Fountain Grove it is part of the seller disclosures and a prospective buyer will also see it when he received a copy of the property tax bill.

Now we see homes coming on the market that have the energy efficient upgrades. When the first home went into escrow, it was interesting to see that the lender who was chosen to provide the mortgage for the buyer, did not accept the SCEIP assessment on the property and required that is was paid of before close of escrow. Reason: they see it as an other loan against the property, thus the SCEIP lien will become senior to theirs when they new loan gets recorded. This means that in case of default, they are not in first position and thus responsible for the SCEIP lien in case they foreclose on the property. Also the government loan programs FAFH – Fannie Freddie, do not recognize the program and require the SCEIP assessment to be paid of before they will put a loan on the property…

Extra note, the above is also the case when a home owner wants to refinance his/her property to take advantage of the current historic low interest rates…

Sonoma County is protesting this and has taken FHFA to court.The latest update is on the website.

While the above should not stop a home owner from taking advantage of this program, it is good to be aware of the above developments. AND when you buy a home ALWAYS read the preliminary title report as well as the copy of the tax bill.

Have a most wonderful day!

Mirjam

Sep 25
0

Title Insurance: a Scam?

By | Buyers, Disclosures, Economy, Investing in Real Estate, Sellers, Short Sale, Sonoma County info, Visit WineCountry, Wine Tasting | No Comments

When you buy a home and use a mortgage you pay for at least 3 insurance policies: Home Owners Insurance, Home Owners Title Insurance and Lenders Title Insurance. For an average home in Sonoma County, Title Insurance is around $1,800 for both policies. That is a lot of Peet’s Latte’s or paint, or carpet… And if you pay cash for a home, you can opt not to buy Title Insurance. A smart decision?

Last week I had an interesting conversation with Stewart Title, thanks to Jessica Smith, our Title rep. BTW, this was in preparation a presentation for the YPN Morning Buzz group They shared some interesting facts about Title Insurance. Side note : Title Insurance came into place because of inadequate US land record laws. When we moved from Netherlands to California, some friends where making jokes about us moving to the Wild West. When Paul started talking it made me smile, had to think of that.

• When the economy is bad there are more scams with Title/ownership. – One ‘popular’ scam in the Sacramento area has to do with home owners in distress who are upside down, not able to pay their mortgage. There is a company that promises to ‘take care of it’. In order to do this they have to take title to the house ;). This is how:  a ‘fake’ document is recorded, showing that a new private lender has taken over the mortgage. This ‘private lender’ receives the money at closing . The ‘real’ lender receives nothing and eventually will foreclose on the property… Think about the innocent buyer, busf_transamerica_.jpgying this property without Title Insurance… will loose that house. An innocent buyer buying the house with Title Insurance can go back to the Title Company for help…

• Every one knows the Trans America Building in San Francisco… Remember these beautiful Redwood trees next to it? Well that is because of an overlooked PG&E easement that was right underneath the footprint of the building. Apparently when about to start breaking ground, the company hired to do that knew about the PG&E easement and suggested it would not be smart to start digging because of the PG&E lines… Long story short:  The Title Company who had insured the property/loan had missed that easement, they ended up buying the strip of land that is now a small park and paid to have the PG&E easement go around the Trans America Building… Next time you walk to that park, realized that that was paid for by a local Title Company…

There were more interesting stories about easements, deeds and scams. Bottom line when you buy property, always pay for Title Insurance. Chances something goes wrong are not that high but when there is a problem, it is extremely expensive.

Have a great weekend, it’s grape harvest time in Sonoma County, a lot of wineries have great events this special time of year.

Mirjam

Jun 26
0

It’s the Law!!!

By | Around the house, Buyers, Disclosures, Sellers | No Comments

When moving to a new country the first thing to deal with is the difference in the laws. Traffic law is usually the first one: when you rent a car and drive of the airport parking lot. Yours truly has come to find out that usually police officers don’t respond when you tell them you were not aware of the law that you didn’t adhere to. The response: it’s the law… its-the-law.jpg

Funny story: my  husband was pardoned the first time he visited CA: when he drove from SF Airport to Cupertino and a police officer stopped him and found out he came straight from Netherlands he was warned that speed limits in CA are lower than in  Netherlands and he could not drive that fast ;))) he got of with a warning, promising he would drive slower ;))… When we finally moved to CA we both had to get used to the speed limits here…

With that said: There is a new law that affects everyone who lives in a home in California. Per July 2011 every home in California needs to be equipped with a Carbon Monoxide detector. This is next to the smoke detector every house needs to have. carbon-monoxide-detector.jpg

Reason: The Carbon Monoxide Poisoning Prevention Act of 2010 signed into law last year. Locally in Sonoma County, not having one could result in a $200,00 fine. Here is a link to the article in our local new paper the PressDemocrat this week.

There are more and more laws to comply with when you buy and sell Real Estate. They are part of the many disclosures your receive. Both sellers and buyers are always advised to read all the paperwork carefully.

The local hardware store is a great source for these new Carbon Monoxide filters. Home Depot has instructions on their website on how to choose and instal one that is right for your home.

Have a great week,

Mirjam

Feb 27
0

Septic Systems

By | Buyers, Disclosures, Sellers, Sonoma County info | No Comments

A lot of people in Sonoma County have septic systems -including yours truly-. There are a lot of vacant parcels, or parcels that need a update on their septic system. Thought enclosed info about how the septic design process works might be interesting.Thank you  Jim Glomb, Geotechnical & Environmental Consultant for sharing this:

When constructing a rural property, or improving an existing property, the septic system is an integral component that requires a septic design professional who is up-to-date with regulations and health and safety requirements.

The first step in the Septic Design process for an undeveloped parcel is a Preliminary Site Evaluation. The Preliminary Site Evaluation evaluates the site?s potential to meet the homeowner?s goals and identifies the best areas for on-site wastewater disposal. The Preliminary Site Evaluation begins with identifying site attributes such as topography, vegetation, drainage and geology.  The Preliminary Site Evaluation also includes exploration of soil deposits to determine subsurface conditions relative to septic system use. This is followed by design level Soil Profiles using a backhoe in the presence of a County Health Inspector, if necessary, groundwater monitoring, percolation testing, and site mapping will also be performed.

The Percolation Test data, Groundwater Monitoring observations, and Soil Profiles are incorporated into a design report with recommendations and specifications for the optimal wastewater treatment for the parcel. This report is submitted  to the county for  review and concurrence.

There are many different septic systems and the requirements for septic systems have recently changed, the permit department of Sonoma County has great information.

When buying distressed property this is something to keep in mind: would you like to remodel that lovely fixer with the great views? Seems like a great buy, do your homework as to the septic system, might prevent you from unpleasant surprises.

Mirjam