Disclosure Regarding Death on Property

Disclosures Regarding Death

Most of the time when someone hears that real estate is being sold through probate, they assume that someone died in the unit. In some cases, the decedent may have passed away in the property or they may have died in a hospital or care facility; in other cases, the owner may still be alive and requires the sale to fund their ongoing care--a conservatorship sale.

California has specific laws for disclosures regarding death. In 1983, a case made it statutory that the administrator/executor does not need to disclose a death if it occurred more than 3 years prior to the sale.

If a death occurs on the property within the 3-year period, and the circumstances of the death are material (it was a gruesome or offensive death, or affected the reputation of the property), it must be disclosed.

Deaths more than 3 years past

If the buyer asks if there have been any deaths, the administrator/executor must disclose all known deaths on the property. This is only if the buyer asks.

As a buyer, if you have any concerns or questions regarding death on the property (and not everyone does), you should always ask, in writing, to the administrator/executor. If the death occurred more than 3 years earlier, it’s better to ask than to find out after the close of escrow.

For more information on what disclosures are required for a Probate Real Estate Sale, please visit our website at http://www.sanbornteam.com/ or call us at 310-777-2858 to receive a free up-to-date California Association of Realtors disclosure chart.

What is an Administrator of an Estate?

Q. What is an Administrator of an estate?

A. An Administrator is a person or entity appointed by the court to administer an estate when no will exists. When a person passes away without a will, the court will have to appoint a person to be in charge of dealing with the person's assets, such as a house. When a house needs to be sold and there is no will, the property has to be sold through the probate process.

Q. What is an Executor of an estate?

A. A person named in a Will and appointed by the Court to carry out the decedent's wishes. This person is usually named as the seller of the real property.

To find out more about Probate Real Estate and Probate Real Estate Terms, please visit our website at www.SanbornTeam.com or call us at 310-777-2858.

Till Death Do Your Equity Part

We recently came across this article in the California Association of Realtors Magazine and thought it would be useful to you.


"Till Death Do Your Equity Part "
By William Cuthbertson, MBA

You’re at the escrow office finalizing the purchase of your new home, when you’re asked, “How do you want to take title?” You’re told, “There are three primary forms of property ownership in California available to married couples: tenants in common, joint tenants with rights of survivorship, and community property with rights of survivorship.” Armed with that information, you’re even more confused. What will you do?

If you’re like most married property owners, you’ll probably choose joint tenancy. However, if you don’t have a particularly unique legal situation, and you’re a savvy home buyer, community property with rights of survivorship (CPWROS) may be your best option.
Why? Because you want the best tax treatment possible for your surviving spouse in the event they decide to sell the property after your death.

In 2001, it became legal in California for married property owners to take title as CPWROS. Doing so allows married property owners to take advantage of the same automatic title transfer rights provided upon death for joint tenancy title holders, while also benefiting from the improved tax treatment allowed by virtue of holding title as community property.

The tax advantage of CPWROS occurs because of the way tax law adjusts the reported cost of a sold property whose title has changed due to the death of a spouse. In tax talk, this reported cost is called tax basis. In this situation, the tax basis for the entire property in the hands of a surviving spouse is generally stepped up, to an amount equal to the fair market value of the property on their deceased spouse’s date of death.

Consequently, if the property is sold for fair market value, there would be zero gain to report. Whereas, if the property had been held under joint tenancy, only the half share of the property attributed to the deceased spouse would have increased to fair market value, potentially resulting in a much less desirable result.

Property title changes for already held property can generally be accomplished quite easily. If you are uncertain how to proceed, you should contact a competent legal and/or tax advisor.

Death and Taxes
Consider these two examples and their resulting differences.

• Common Assumptions

Purchase Price (Original basis): $500,000

Fair Value: $1,000,000

• Gain Calculation for Joint Tenants

Sales Price: $1,000,000

Stepped Up Taxable Basis: - $750,000

Gain = $250,000

• Gain Calculation for Community Property with Rights of Survivorship

Sales Price: $1,000,000 Stepped Up Taxable Basis - $1,000,000

Gain = $0

The difference in these two examples results from the manner in which the taxable basis is adjusted at death between the two property titling forms.
William Cuthbertson, MBA, is a San Juan Capistrano-based Certified Financial Planner™ professional, and also is enrolled to practice before the IRS and state taxing authorities.

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If you have any questions about holding title, please be sure to consult your attorney or CPA. If you have any questions about probate and trust real estate please contact us, your Probate Realtors at 310-777-2858 or visit our website at http://www.sanbornteam.com/

I Didn't Know My Neighbor Died!

The Sanborn Team represents conservators when they sell real estate that is owned by a conservatee.

Since all sales of real estate that are in a conservatorship are sold through the probate code, they are probate real estate sales. This can be confusing, and we often get calls from concerned neighbors thinking that their neighbor has passed away when in fact they are alive and well.

We currently have a home listed in the Laurel Canyon area of Los Angeles and we received a call today asking what happened to the owner. We were thrilled to report that she was alive and receiving great care and that the monies that will be received from the sale of her real estate will go for her continued and future care.

For further information about conservatorships, please visit our website at http://www.sanbornteam.com/conservatorship.htm or call us at 310.777.2858.

Probate Real Estate Term: "AS-IS"

It is very common to see probate and trust real estate connected to the term “As-is.” Simply stated, what you see is what you get, and many times there is no negotiation on repairs for the real estate.

Administrators/executors and real estate agents have an affirmative obligation to disclose KNOWN defects to the buyers. For example, it may be known that the front door sticks and is difficult to open. The administrator/executors will disclose that to you. However, since they have never been in possession of the property they cannot be expected to have the knowledge of the defects or condition of the main systems of the property, such as the roof, the plumbing or the heating system (unless there is some obvious symptom, such as water stains, dripping, or roof tiles in the back yard).

“As-is” means that the executor/administrator has not investigated the condition of the property or had it investigated by a professional inspector--for example, a structural pest inspection or general physical inspection--and that the purchaser of the probate and trust real estate is responsible for requesting and performing any investigation he/she so desires. If the buyer does not elect to perform such investigations, then he/she, and not the executor/administrator will assume liability for any defects subsequently disclosed.

For more information about buying probate and trust real estate, please contact us directly at 310-777-2858 or visit our website at http://www.sanbornteam.com/

Get a Home Inspection: Tip for Buying Probate Real Estate

Most of the time when buyers find real estate for sale through probate or trust, there is not a seller to explain the condition of the property and its important systems, such as roof, plumbing, and electrical, and or even minor things, such as the garbage disposal.

Normally, during purchase negotiations, the buyer and seller agree not only on price but also on contingency periods. But when real estate is sold through probate or trust, often the seller will not accept any offer that includes contingencies--even investigation contingencies.

Since probate and trust buyers will not be able to make their offer contingent upon a satisfactory inspection, they can avoid costly "surprises" by hiring a professional inspector to conduct a general inspection before they make an offer on the property. The inspector examines the condition of the home, so the buyers know what they are buying and what repair expenses they need to anticipate.

A home inspection can cost anywhere between $400 and $700 (the price can be substantially higher for apartment buildings). The price is based upon the size of the house and if there is a pool or spa. The inspection will include plumbing, electrical, roof and overall physical condition of the property. The buyers should be present at the inspection and should freely ask the inspector questions.

This inspection is just the starting point. It maybe necessary to hire other inspectors that specialize in specific problems to find out what will need to be done to alleviate significant and future problems with a property.

To find out more about purchasing probate real estate, please visit our website at http://www.sanbornteam.com/ or call us directly to set up a free consultation 310.777.2858.

Anatomy of a probate real estate sale

Unlike the majority of real estate transactions, in a probate sale the estate is accepting a bid and the accepted offer is that one that is confirmed in court. This can be a very confusing concept to buyers and their agents. We at the Sanborn Team spend a great deal of time counseling both buyers and their agents on how a probate real estate sale takes place.

With a probate sale, a bid is accepted and a court date is set. The attorney who represents the estate prepares a petition for the court and the court sets the actual hearing date. Once the hearing date has been set, the Sanborn Team publicly announces the sale of the real estate property through the multiple listing service, Realtor.com, local publications and our our website http://www.sanbornteam.com/ to allow for any other interested parties to bid on the house.

The court date is usually within 6-8 weeks of the accepted offer, but the time does vary and there are no hard and fast rules. For example in downtown Los Angeles the probate sales are held every day. In the regional courts the days of sales vary. At the court, the sale of the property is announced and at that time there is an opportunity for any interested party to come and bid on the property.

The initial overbid is determined by the Probate Code, but subsequent bids are set by the judge. Any buyer who overbids on the real estate will be purchasing the property under the same terms and conditions as the original buyer. Once there is an overbid the real estate is sold in an auction with all interested parties being able to bid. When a final bid has been reached the judge announces that the property has been sold. The final bidder needs to provide the court with their exact vesting (how they will be holding titile). From that point on the buyer needs to close the escrow and they will be the proud owners of their new home.

If you have questions about purchasing Real Estate through a probate proceeding please call
The Sanborn Team at 310-777-2858 or visit our web sites http://www.sanbornteam.com/
where we work on taking the challenge out of purchasing real estate through a probate proceeding.

Hot New Listings!

Check Out Our New Probate & Trust Real Estate Listings!

5601 Ostrom, Encino Village


4+1.75 Traditional Charmer! Located on a cul-de-sac, this home features wood floors, fireplace in living room, serene and grassy yard. Listed for $595,000

17510 Sherman Way #207

Spacious 2+1.75 condo. Features include formal entry, fireplace in living room, spacious eat-in kitchen, washer and dryer inside, 2 spacious bedrooms At an amazing price of $299,000

1016 West 51st Place, Los Angeles

Opportunity Knocks! Two houses on a lot. One house is a 2+1 and the other house is a 1+1. Listed for $350,000

1552 N. Avenue 46, Eagle Rock

Located in Eagle Rock, walking distance to Occidental College, this 1+1 Spanish is a charmer. Why pay rent when you can own a house?

Listed for $399,000

1558 N. Avenue 46, Eagle Rock

Located in Eagle Rock, walking distance to Occidental College, this is a Triplex. One 2+1 and two 1+1. Back unit is a great owner's unit with a private courtyard. Spanish Charm Galore!
Listed for $599,000

To see all our Probate & Trust Real Estate Listings, please visit our website at www.SanbornTeam.com.

January 15 Beverly Hills Bar Meeting

Attention!

Upcoming Beverly Hills Bar Meeting

Trust & Estates Program

"Issues and Updates In Trust Administration"

Speaker:

Jacqueline A. Patterson, Attorney at Law, Haney, Buchanan & Patterson

Linda Retz, Attorney at Law

Date:

Tuesday January 15, 2008

Registration/Lunch: 11:45 a.m.- 12:30 p.m.

Program: 12:30 p.m. - 1:30 p.m.

Place:

LAWRY'S 100 N. La Cienega Blvd., Beverly Hills (1/2 block North of Wilshire Blvd.) Free underground parking.

For further information or to register please visit http://www.bhba.org/

The Sanborn Team is the official sponsor of the Probate and Trust section of the Beverly Hills Bar Association. To learn more about our services please visit our website at http://www.sanbornteam.com/

December 31 Court Date for Real Estate Sale

December 31
Dept. 9
111 N. Hill St.

1064 S. Point View
Los Angeles, CA
Spanish Charm with original Details throughout
Enter through Private Courtyard
3 bedroom 1.75 bath house
Formal Dining Room and Separate Breakfast Room
To view this property call
The Sanborn Team
310-777-2858
Over bid amount is $961,250
If you need specific information please call our office at 310-777-2858

Anatomy of a Court Probate Real Estate Sale

Unlike the majority of real estate transactions, with a probate sale the estate is accepting a bid, the accepted offer is that one that is confirmed in court. This is a very confusing concept to the majority of buyers and their agents. We at the Sanborn Team spend a great deal of time counseling both buyers and their agents on how a probate real estate sale takes place.

With a probate sale a bid is accepted and a court date is set. The attorney who represents the estate prepares a petition for the court and the court sets the actual hearing date.

Once the hearing date has been set the Sanborn Team publicly announces the sale of the real estate property through the multiple listing service, realtor.com, local publications and our our website http://www.sanbornteam.com/ to allow for any other interested parties to bid on the house.

The court date is usually within 6-8 weeks of the accepted offer, but the time does vary and there are no hard and fast rules. For example in downtown Los Angeles the probate sales are held every day. In the regional courts the days of sales vary.

At the court, the sale of the property is announced and at that time there is an opportunity for any interested party to come and bid on the property. The initial over bid is determined by the Probate Code, but subsequent bids are set by the judge. Any buyer who overbids on the real estate will be purchasing the property under the same terms and conditions of the original buyer. Once there is an overbid the real estate is sold in an auction with all interested parties being able to bid.

Once a final bid has been reached the judge announces that the property has been sold. The final bidder needs to provide the court with their exact vesting (how they will be holding titile).
From that point on the buyer needs to just close the escrow and they will be the proud owners of their new home.
questions about purchasing Real Estate through a probate proceeding please call

The Sanborn Team at 310-777-2858 or visit our web sites www.SanbornTeam.com

where we work on any taking the challenge out of purchasing real estate through a probate proceeding.

A Tale From the Probate Court: Importance of Market Exposure

Just last week we had a sale of a property in court. To our surprise there was someone there at the court hearing objecting to the sale of the property because they were claiming that the property did not have proper market exposure and felt that the property was selling below market price. This person wanted to stop the sale and request that the property not be sold at that time. The judge asked us to explain our marketing efforts, and the judge decided to continue on with the sale.

Since the property was listing with us, The Sanborn Team, who are real estate probate experts, this person's objection had no validity. The Sanborn Team specializes in selling probate real estate and especially properties that require court confirmation. When you list with The Sanborn Team, the real property will receive maximum exposure and we guarantee we will get you the highest and best price.

To find out about a power and unique marketing strategy for Probate and Trust sales, please visit our website at http://www.sanbornteam.com/.

Probate Real Estate Sales are "As is"

When listing and selling Probate and Trust Real Estate properties, most of these properties are sold "as is." This means that the seller does not make any warranties or representations and the property will be sold in it's present condition. Most sellers of probate properties will not do or pay for any repairs due to any defects on the property. Because the estate seller of the property has never lived in it or is familiar with the condition of the property, the estate is in no position to disclose defects.

In other words, if you are interested in purchasing a probate or trust property, it is very important that you conduct a full property inspection before writing an offer or going under contract. It's very important that the buyer is completely aware of the condition of the property and does all his/her discovery so they truly know the condition of the property.

For further information about buying probate and trust real estate, please visit our website at www.SanbornTeam.com or call us and we can set up an appointment to discuss the buying process of probate and trust sales. 310-777-2858.

Upcoming Beverly Hills Bar Meeting: Trust & Estates Section

Upcoming Trust & Estates Meeting!

"New Conservatorship Rules:

Implementation Under Budget Constraints"

Speaker

Hon Aviva Bobb - Presiding Judge - Probate Los Angeles Superior Court

Margaret "Meg" Lodise, Attorney at Law, Sacks, Glazier, et al.

Date

Tuesday December 18th 2007

Registration/Lunch: 11:45 -12:30pm

Probate: 12:30pm - 1:30pm

Place
Lawry's - 100 N. La Cienega Blvd., Beverly Hills

As the Official Sponsor of the Beverly Hills Bar Trust & Estates Section, we want to make sure that you are all aware of this great meeting and look forward to seeing you there

Additionally, if you have any questions about the meeting please feel free to contact us at 310-777-2858.

A Friendly Reminder: Keep your property out of Probate

Many owners of properties, tend to keep their property in a Trust. Attorneys and Tax accountants recommend during estate planning to put properties into a Trust to avoid probate.

However, a note of caution: if you refinance your home or other real estate, most lenders require that the property be taken out of the trust and put back into your name, for a brief amount of time. The cost isn't significant. But forgetting to put your property back into the trust is. A home unintentionally left outside the trust must go through probate, defeating the purpose of creating the trust in the first place.

So please remember so always be sure to put your property back into the trust, if you have one, after you refinance.

If you have additional questions about refinancing or if you would like to find out if your property is in a trust, you can always contact us and we can provide you with the documentation showing how the property is held.

And please visit our website, http://www.sanbornteam.com/ to find out more about our services.

Is it necessary to get a Market Value Analysis for Probate Real Estate Sales?

What is a Market Value Analysis?

In order to choose the best list price for your property, it is very important that your real estate agent provide you with the necessary information to determine what price best suites your property. Your agent should provide you with detailed market data, called a Market Value Analysis. This includes the selling prices of similar properties in the neighboring area. It will also include in-depth information on recent sales in the area, such as price per square foot and the number of days the property was on the market. Taking into consideration the information in the analysis as well as other intangibles of the market, your agent will be able to help you determine a listing price that is appropriate for the market and will attract the greatest number of qualified buyers.

Why is it necessary to get a Market Value Analysis for Probate Real Estate?

The Market Value Analysis is crucial when listing a Probate Real Estate property because it is essential that you have all the data needed to calculate the best list price. Taking into consideration the information in the analysis as well as other intangibles of the market, your agent will be able to help you determine a listing price that is appropriate for the market and will attract the greatest number of qualified buyers. Since Real Property sold through Probate and Trust are a bit different, it is pertinent that your agent discuss these differences and how these properties appear to the buyer. This will also factor into the pricing of the home. Your Probate Real Estate Expert should understand clearly how the terms of Probate and Trust sales are different than a traditional transaction.

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For more information about Probate Real Estate Sales and the Probate Real Estate Experts, please visit our website at http://www.sanbornteam.com/

What is the Role of the Escrow Company in Real Estate Probate Sales?

What is the Role of the Escrow Company in a Probate Sale?

By Nancy Sanborn

The sale process for both probate and non-probate properties varies from state to state, but in California, the standard of practice includes escrow. Since escrow is all about details, it’s absolutely essential to work with a skilled escrow officer. This is especially true in the case of real property sales through probate, trust or conservatorship, in which deadlines and rules are unforgiving, and failure to follow them can undermine a transaction or mean very expensive delays.
While escrow officers and real estate agents do not have to have a special license or certification to handle probate or trust sales, their lack of knowledge or experience can be extremely expensive to the unsuspecting client.
The role of escrow is to serve as a neutral party in the transaction. This involves many vital steps, including holding secure any deposits that are made by potential buyers; holding, processing and issuing the reams of documents that are generated by the sale; and accounting for and distributing the proceeds of the sale to all of the parties at the closing.
Each party to a probate or trust sale has specific requirements and it is the role of escrow to record, coordinate and monitor compliance with all of them. In probate sales, the court has requirements above and beyond those of the seller and buyer, their representatives, the title company and the lender(s). Escrow prepares a set of instructions that includes all of the requirements of the sale and monitors the deadlines and exchange of paperwork for each requirement.
In California, various inspections (pest control, physical, geological, plus locally-mandated inspections) are required during a property sale. The real estate agent typically helps their client choose an inspector, orders the inspection, often attends the inspection on behalf of the client, and then advises the client regarding their options following the inspection. Each inspector is required to submit a report to the client and to escrow. The escrow officer has to verify receipt of all of the necessary reports and approval of the reports by the various parties before the sale can go through.
While the real estate agent is advising their client, marketing the property, advising other agents and their clients on how to make offers, working closely with the clients’ attorneys, and coordinating the offers in court, the escrow officer is making sure that reports are being approved and signed, that copies of documents are provided to the parties and that any problems discovered by the title search are promptly resolved for a timely closing.
Escrow also gets involved with lenders, insurance and taxes, providing necessary paperwork to the buyer’s lender, ordering insurance and tax records on the property, making sure a policy of title insurance is purchased by the buyer, and determining how insurance and taxes will be prorated at the time of closing.
If the property is a rental, escrow handles the proration of rents as well.
When the lender’s requirements have been met and the buyer’s loan is funded, and all of the other T’s are crossed and I’s are dotted, escrow submits paperwork to the county recorder’s office for official recording of the order or grant deed. Complete copies of all signed documents are provided to the parties and finally, escrow calculates and distributes the funds and the buyer gets the keys to their new property.
With so many participants, documents, deadlines and dollars involved in a probate or trust sale, it’s critical to work with real estate and escrow professionals who understand the probate process and have experience to back that knowledge. Don’t be afraid to ask hard questions or to ask for and check references before engaging the services of a real estate or escrow professional to handle your probate sale. Those answers can make the difference between a streamlined transaction and a nightmare.
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Nancy Sanborn is Executive Director of Prudential California John Aaroe's Probate and Trust Sales Division and a 30-year veteran of the competitive Los Angeles real estate marketplace.

Learn more about probate sales at http://www.sanbornteam.com/

Beverly Hills Bar Association Meeting

Attn Attorneys and Paralegals!

Upcoming Beverly Hills Bar Meeting

Topic:
California Legislation 2007: The Annual Update

Tuesday November 13th

11:45 - 12:30 Registration

12:30 - 1:30 Lunch

Please be sure to register by calling 310-601-2422

For upcoming programs, please visit our website at www.SanbornTeam.com

Independent Administration of Estates Act (IAEA)

There are times when probate real estate sales require court confirmation and other times the real property probate sale does NOT require court confirmation. So what determines if a property in probate requires court confirmation?

Under the Independent Administration of Estates Act (IAEA), the administrator of the estate can handle the decedent's estate without court approval. The authority to administer the estate under the IAEA can be given by the decedent's will or by the court upon petition by the personal representative. They have full authority to sell real property and not require court confirmation.

To learn more about Probate and Trust Real Estate Sales, please visit our website at http://www.sanbornteam.com/ or call us at 310-777-2858

Probate Listing HUGE Price Reduction

Attention Buyers!

This is a wonderful opportunity to get into an amazing condo in a fabulous location at an amazing price!



13214 Moorpark #205

Sherman Oaks, CA

$449,000.00 (REDUCED $200,000.00)


This tri-level condo has 2 bedrooms, 3.5 baths and a huge loft (could be a third bedroom or den or office). The spacious living room has high ceilings and the sunlight pours through the windows. The large kitchen features tons of storage and it's own breakfast nook. The master suite has 2 walk-in closets with a spacious bath. There is also a full laundry room in the unit and two nice size balconies perfect.

Probate sale, court confirmation required.

If you would like to schedule a showing please call our office at 310-777-2858.
Or
To find out the hottest Probate Real Estate Listings for sale, visit our website at www.SanbornTeam.com