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!

 

Homebuilders mull recycled water legislation

Source: The Business Journal
 Written by Chuck Harvey

 Proposed legislation by Assemblyman Mike Gatto, D-Los Angeles would require recycled water for irrigation at newly constructed homes and commercial buildings in cities that have recycled water facilities or are planning to construct them. It would include Clovis, which has a recycled water system for public areas, and Fresno, which is planning recycled water infrastructure. Gatto’s AB 2282 introduced in February, is designed to provide more water for residential and commercial use to offset water shortages. Besides using recycled water for irrigation, it could also be used by residents for washing cars and patios. Specifically, the bill would require the state to adopt building standards for recycled water for new homes and commercial buildings. Michael Prandini, president and chief executive officer for Building Industry Association, said the requirement would not be costly as long as the reclaimed water piping was installed prior to putting in streets and other infrastructure. But if it had to be retrofitted after home lots are finished, then it would be very expensive. He noted that purple pipes are used to identify recycled water. In the long haul, he said it is a positive development. Limitations on water have not hit homebuilders yet, but could become a problem for the building industry if drought continues. “This drought is a stark reminder that we need to make the best use of our limited water resources,” Gatto said in a release. “Recycled water is cleaner than most of the water in our in our natural aquifers.” Gatto said it is wasteful and inefficient to dump this water into the ocean when it could be used for a productive purpose. In 2009, 669,000 acre feet of treated municipal waster water was used in California, mostly for irrigation purposes and 51 out of 58 counties developed or identified recycled water projects in their water plan updates. However, not all builders see the feasibility of preparing new homes for potable and recycled water. Gary Mason, owner of 2M Development Corp. in Clovis, said that although installing purple pipes in each new home would not be terribly expensive, a main delivery system for the development would cost plenty. “You have to have a main delivery system,” Mason said. “And it could be lengthy.” He said that because cities have no additional money, the cost would most likely be passed on to the homebuyer. “Unless it is already set up, we should just stay with the water we have,” Mason insisted. He pointed out that builders are already burdened with costly new building codes including one that increases the wind loads a home can handle. And as of July 1, new homes must be pre-set up to accept solar power. “That could add $5,000 to $8,000 on to a home as we understand it now,” Mason said. To ensure that homeowners and businesses will not be economically harmed by the cost of recycled water delivery, Gatto’s bill requires the Department of Housing and Community Development and the Building Standards Commission to consider the cost of various recycled water infrastructure and the estimated water savings from using recycled water. Once standards are adopted then recycled water requirements would kick in. “This bill is about building more infrastructure,” Gatto said. “Single-family homes use about 60 percent of their water outside. If people could water their lawns and wash their cars with recycled water, there would be 60 percent more clean water available for consumption, crops and bathtubs.” Prandini said Fresno has a lot of recycled water infrastructure to construct. He said the city has proposed plans to cover part of the cost through a fee placed on new construction and part from water and sewer rate increases. “Fresno is talking about it,” Prandini said. He said Clovis already has a recycled water system for public parks and trails and the infrastructure would make it fairly easy to hook into new home developments. Clovis has a Recycled Water Master Plan that will allow it to meet its projected water needs in the next 25-30 years, while protecting its groundwater resources, reducing historic groundwater overdraft and enhancing groundwater recharge. In early 2009, the city began operating its own wastewater treatment plant and water recycling distribution system. The Clovis Water Reuse Facility is located on approximately 16 acres of property north of Ashlan Avenue and west of McCall Avenue. The wastewater treatment plant will ultimately produce 9,400 acre-feet of disinfected tertiary treated recycled water annually. The recycled water system will then use the treated water to irrigate green belts, median islands, parks, trails and paseos, Highway 168 landscaping and agricultural operations throughout the city. Clovis also plans to make recycled water available for public landscape areas in developments that are proximate to the main transmission lines. If Gatto’s bill is adopted, infrastructure would have to be extended and purple pipes would carry recycled water to each new home. Once residential infrastructure was in place, homeowners would have one hose bib for potable water and one for recycled water. The recycled hose bib would be identified by its purple color. Each home would be planned for two water sources, Prandini said. Recycled water for Fresno developments would come from the City of Fresno’s wastewater treatment plant at 5607 W. Jensen Ave. in southwest Fresno. The plant is operated by the city’s Wastewater Management Division and offers a range of wastewater treatment and reclamation services.

URL to original article: http://www.thebusinessjournal.com/news/construction/11313-homebuilders-mull-recycled-water-legislation

For further information on Fresno Real Estate check: http://www.londonproperties.com

Something to get your buyers OFF THE FENCE!

A must read for your buyers!

There is a major push to move federally insured mortgage securities into the private sector and have the government play a distant secondary role.  Attached is an article from the Wall Street Journal (3-12-14), that covers the dismantling or at least a wind down of government rescued Fannie Mae and Freddie Mac. What does this mean?

It means higher interest rates for the consumer.  The private sector will want more “skin in the game” from borrowers and higher returns to insure against any potential of losses that the mortgage securities market experienced in the 2007-2009 meltdown.

Regardless of how fast Congress moves this along (from the sounds of the article it could be before the mid-term November elections), the WRITING IS ON THE WALLS!  Interest rates will move up and money could remain tight.  A second area of concern could be in the “jumbo” loan market (for our counties, loans over $417,000), where historically, consumers have had to pay as much as 2% points higher on their loan amount than rates charged on smaller, conforming loans.  This suggests that your UPPER END buyers also need to BUY NOW!

Please use this article as a great “Item of value” to counsel your buyers into making a good decision now.

Good luck!!