New legal requirement for self reporting Real Estate licensees felony charges, convictions of any felony or misdemeanor.

REF: Rural Parcel

It has come to our attention that many parcels of 2 ½ acres or less (particularly in Fresno County which were created from a larger parcel) may have been created by parcel map exemptions (without a proper parcel map). This was allowed in order to permit Farmers of larger acreage to either gift a small parcel to an immediate family member or to allow themselves to finance and construct a home separate from their farm acreage.

Such parcels will show a separate parcel number (for tax purposes), but such APN does not insure they are not a legal separate and marketable parcel (parcel numbers are for tax purposes only and do not legitimize a parcel that has not been property created). In other words, because of County requirements, the parcels cannot be legally sold to any third party and are still considered a portion of the original larger farm or ranch.

Broker’s cannot sell or list these parcels for sale. The rules are very complicated. In the event you become involved in such a parcel, please see your manager for more details. We are currently involved in litigation over an alleged, illegal transfer of such a parcel. Warning, do not list or sell any rural home adjoining a larger parcel of which it was previously a part without meeting with your manager to determine if it is in fact a legal parcel.

Please Read - Important

Criminal Violation – Be Careful

In years gone by, Realtors have paid referral fees to friends, family or clients for business. This is now a violation of Federal law! You can never pay anything of value to a non-licensed person in exchange for a referral. Example:

“When one competitor sees another competitor’s real estate agent friend in their seats at the stadium, it is much easier to submit the RESPA complaint and much easier for CFPB to investigate and act. And that is what they intend to do. For tools and products to prevent RESPA violations, visit www.realtor.org/respa.”

Reminder – DO NOT pay referral fees.

Thanks,

Dan

Monte Verde HOA Water Sewer Issue

This property is located within the Monte Verdi Estates (track # 4351, plot block 62, page 70-78, Fresno County). This subdivision has been subject to major sewer disposal and/or water issues. London Properties has been informed that these issues may soon be remedied by a Bond or Loan from the State of California or other third parties.

We understand that a fund totaling $2,833,627.50 is being created to provide improvements. This amount will be divided over 125 lots. Based on this, each lot will be assessed $22,669. There may be interest added by this amount.

A yearly assessment or payment in the approximate amount of approximately $1,133.45 will then appear on the yearly tax statements for each lot. County of Fresno may add an “up to $100 more or less per year” for administrating the collection and disbursement of the annual payments.

In addition, beginning July 1, 2014, water and sewer rates are scheduled to increase to $436.20 bi-monthly or $218.10 per month. Water and sewer only. County bills for this and property owners will pay the County directly.

Buyers are encouraged to contact Jim Torosian of the Homeowners Association for more definitive information at (559) 325-3773.

Record Retention

Liquidated Damages Q & A and more

A few bullets:

·    The liquidated damages paragraph benefits both buyers and sellers.

·    For buyers: It can serve to greatly reduce or limit their financial liability up to the amount of their deposit actually paid (up to 3% for 1-4 unit residential owner occupied purchase) in the event of their breach after removal of their contingencies (typically 17 days after acceptance).

·    For sellers: It provides for an agreed upon amount from the buyers up front in the event of buyer’s breach without the sellers having to prove actual damages.

·    Liquidated damages must be initiated by both buyer and seller to be enforceable.

·    Always remember the importance of an appropriate deposit amount and/or an increased deposit (up to at least 3% total) following the inspection period and removal of buyer’s contingencies.

·    The C.A.R. (Receipt for Increased Deposit) must be signed at time of delivery of the increased deposit (to escrow) in order for the increased deposit amount to be made part of the liquidated damages provision.

·    In California any agreement for a non-refundable deposit is unenforceable. Just remember, there’s no such thing as a non-refundable deposit.

·    Best practice is to get a large deposit (with an increased deposit if necessary), and have buyer remove their contingencies after their inspection period. The seller may wish to negotiate a release of deposit after such removal.

·    As always, see your manager with questions.

Good Luck!