The Preliminary Title Report is a Must Read During Your Escrow

If you are in escrow for a California residential property that you're buying, and if you don't know it already, there are lots of documents to read, understand and sign--within a deadline no less.  It's a lot to comprehend at once, especially since, unless you have acquired properties within a recent one or two year span, you don't see these documents more than once every few years at the most, if ever.  Transaction confusion and anxiety can be at least partially reduced by building up familiarity with some basics in advance of actually being in escrow.

Temple Lofts

The Preliminary Title Report is one of those documents:  The entire purpose of it is to review conditions about a property in case there's anything discovered in an investigation of the public record which should be cleared ("exceptions") before the title policy is issued. 

Perhaps your experience has been routine in the past, so the entire report seemed like a "no brainer".  But what if something unexpected happens?  I remember the two buyers I once represented who especially wanted two gated parking spaces with their condo purchase, neither spouse wanted to park on the street.  The MLS listing clearly stated there were two parking spaces, and they obtained an accepted offer believing that's what they would have.  However, the legal description section on the preliminary title report (which they said they completely understood after receiving it) said something different, and my subsequent review and conversation with the title officer confirmed there was only one parking space.  It was several days of huge disappointment for the buyers--but they ultimately proceeded with the purchase because the condo otherwise met with their approval.   Condos in particular can run into these parking issues, so be sure to review your report if you're wanting a condominium, in this case it was the legal description that revealed the parking space.  

Schedule B - any exceptions included here need to be reviewed--they are matters that will not be covered by the title policy: pending court actions, private transfer fees which must be paid upon sale, judgments, tax liens, notice of default, trustee's sale, junior liens.  Unpaid property taxes, assessments and deed of trust are usual items to see on Schedule B as conditions to be removed prior to closing, unlike the previous items.

Forgery is a felony and unfortunately can happen to an unsuspecting property owner who may be the victim of someone attempting to transfer legal ownership without his/her knowledge. Title insurance protects against forgeries which may have occurred prior to the issuance of an owner's policy. Otherwise, an owner would have to bear the expense of resolving legal issues resulting from a forgery.

A requirement is to provide the title company with a statement of information (early in escrow, please!) which is used to discover matters which affect the interest of both the buyer and seller, i.e.,  judgments or tax liens in the public record.  If a buyer, for example, has an unpaid lien of $10,000 filed against her for medical bills, even though it has nothing to do with the subject property, this may affect her ability to obtain a mortgage and must  be paid off before the close of escrow.  

These are just some of the issues handled by the issuance of a "prelim" report -- having title insurance is not something that should be skipped in your property purchase.

If you would like a sample copy of a preliminary title report, please contact me with your email address. 

If you would like a market evaluation of your property, I will be happy to evaluate in person or online.

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

Los Angeles County Housing Market for January 2022

• Single family house median price is up 13.6% since January 2021. 
• For 24 months there has been less than 4 months of housing supply, for the last year there's been less than 2 months supply, currently 1.2 months supply. 
• January 2021 there were 7,862 houses, currently 5,215 houses on market (active listings). 
• Days on market last January: 28 -- days on market; January 2022: 29 -- one day longer. (47 days in Jan. 2019).
  
• Average percent of original list price received this January was 102.7% (2.7% over list price).
• Number of showings per listing this January was 5.9-- last January it was 6.5 showings per listing. 
• Of 3,139 SFR sales in Los Angeles County this January, 17% were all cash.
• Only 2% of the 3,139 sales were contingent upon buyer's sale of a home.
  
• Median list SFR price was $860,000--median closed price was $895,000 for this January.
• Buyers see on average of 10.1 houses before going into contract, but the median is 2 showings.
  
•  (Data as taken from CRMLS)
  
  
  
  
•  Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

Protecting Your Home: What About Earthquakes?

Long Beach house built 1922

Some aspects of climate change have brought more catastrophic events to different regions--in California earthquakes especially have long been present due to geologic features, such as the San Andreas Fault. Native Californians or others who've spent most of their lives in this state may have experienced past quakes to one degree or another:  further in the past was the 1933 Long Beach quake, more recently were Sylmar/San Fernando and the fall of the Oakland Bridge (Loma Prieta).  There have been many earthquakes in California, see the list at the link.   The major ones can be devastating, causing loss of life, displacement of homes, disruption in lives.  

There are things that property owners can do to at least minimize impact to themselves, their families, or their tenants.  One is obtaining earthquake insurance, and another is preparing your home's physical structure doing some simple things: foundation bolts and plywood bracing for certain older homes with cripple walls (when you bought your house the seller should have provided you with a booklet concerning this)--for a more extensive strengthening an owner might want to do a retrofit.  There may also be a grant available for such help--find out more at the California Earthquake Authority site for units over garages, mobile homes, hillside houses, post and pier homes, etc.  

There are over 500 active faults in California and most Californians live within 30 miles of an active fault. Based on a study in 2014, there is a 75% likelihood of one or more magnitude 7.0+ quakes striking Southern California in the next 30 years.

Homeowners can add earthquake coverage to their home insurance, and condominium owners, especially those in a multiunit multifamily style homeowners association which does not have a master earthquake coverage, may purchase their own coverage for the interior of their unit--it not only gives replacement value but can also provide living expenses for some time into the future.

Communities that have been struck by disasters can recover more fully and completely when its members have had the financial means to do so..... If you're a homeowner it would be advisable to take steps to protect your home. Don't be surprised if you live in  an older home (built before 1933) and your neighbors tell you their house isn't bolted, or they don't know for sure -- just think about how an unbolted house can jump off the foundations.  If you can't pay for those repairs yourself, what are you going to do? Here is a link to brace and bolt grants.

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996