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Wednesday, 24 February 2010 22:16 |
Now that you have a new address, send out all your change of address notices.
Complete your Change of Address notices and mail them to the following. Keep in mind that the post office will forward your mail for 30 days but they do expect that you are sending notices to everyone who sends you mail.
- Post Office
- Friends and relatives
- Magazine and mail order subscriptions
- Professional organizations of which you are a member
- Clubs, social or civic organizations with mailings
- Charge accounts, insurance carriers, and creditors
- Driver’s bureau to receive tag notices
- Voter Registration officials
Don’t forget the needs of your furry friends!
Do not transport your pets much farther than they have safely traveled in the past without consulting your veterinarian. To transport animals by air, you need an airline-approved animal carrier. A moving company can inform you of any state regulations for pet entry, vaccination or quarantine procedures. Ask about regulations, licenses, tags, etc. for pets. Also, do not forget to obtain a copy of your pet’s medical records.
Keep detailed records – some moving expenses are tax deductible!
Keep detailed records of all moving expenses if your move is job related. Many expenses, including house-hunting trips, are tax deductible. If your move is 35 miles or more from your home, you can deduct your family’s travel expenses, including meals and lodging; the cost of transporting furniture, other household goods and personal belongings; food and hotel bills for up to 30 days in the new city if you have to wait to move into your new home; and the costs associated with selling your old home or leasing your new home.
Note: There is a ceiling on deductions which is outlined in detail in the IRS’s Publication 521, “Tax Information on Moving Expenses,” available free form the IRS offices.
When you close on your new home, you should complete the following:
- Ask your bank about electronically transferring your funds to a bank in your new area. Discuss branch options and arrange for check cashing in your new location.
- Close out your safety deposit box.
- Obtain travelers checks for traveling funds and for funds while you are settling into your new location.
- Ask your insurance agent to transfer coverage to your new home. Make sure all coverage (life, health, automobile, personal belongings, etc.) is in force while you are en route.
- Schedule a moving company to assist you or begin notifying people who are helping you of your planned move date.
- Begin depleting your store of canned and frozen foods. Defrost your freezer and use charcoal to dispel odors.
Now that you have a new address, you can begin transferring or canceling home services:
- Electric and Water
- Telephone
- Cable Television
- Trash
- Gas
Make arrangements for canceling home deliveries and services such as the following. Arrange for service at your new address.
- Newspaper
- Cleaning Service
- Lawn Service
- Laundry / Diaper Service
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Last Updated on Wednesday, 24 February 2010 22:21 |
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Wednesday, 24 February 2010 21:45 |
What is a Real Estate ―Escrow?
In California the common use of an escrow is to enable the parties in a real estate transaction to deal with each other with less risk, since the escrow holder acts as the custodian for funds and documents, a clearing house for payment of all demands, and an agency to perform the clerical details for the settlement of the accounts between the parties.
Buyers and sellers instructions to the escrow holder are prepared from the information gathered from the purchase contract. Your lender will require you to sign a document, usually a promissory note, as evidence that you are personally responsible for repaying the loan. You will also sign a deed of trust on the property as security to the lender for the loan. The deed of trust gives the lender the right to sell the property if you fail to make the payments. Before you exchange these papers, the property will be appraised, and the ownership of title will be checked in county and court records.
When all the title and financial requirements are met, and instructions from all parties can be fully complied with, the escrow can close. Then the financial settlement takes place, the documents are recorded and the title insurance policies are issued.
What Should I do to Prepare for the Closing?
As previously mentioned, you should have already conducted any inspections, etc. you wish to have done on the property.
There are two kinds of title insurance. A lender or mortgagee’s title insurance policy protects only the lending institution. Lenders require this type of insurance and require the borrower to pay for it. That does not mean that the borrower will receive its protection. An owner’s policy is necessary to protect the owner against loss.
You will also be required to pay all fees and closing costs in the form of “guaranteed funds” such as a Cashier’s Check. You will be notified of the exact amount by your agent or escrow officer at closing.
What is an Escrow (or Impound) Account?
An impound account is a neutral depository for funds to pay expenses incurred by the property, such as taxes, assessments, property insurance, or mortgage insurance premiums which fall due in the future. At closing, you may be required to have enough funds in the account to cover these payments for several months. You will pay one-twelfth of the annual amount of these bills each month with your regular mortgage payment. When the bills fall due, they’re paid from this account. You may also be required to refund items prepaid by the Seller, such as the special assessments or taxes for that year, pro-rated from close of escrow date. An escrow fee is usually charged to set up the account.
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Wednesday, 24 February 2010 21:30 |
Is an inspection necessary?
You have the right to request an inspection of any property you are thinking of purchasing by a professional inspector of your choice. You should always exercise your option to have the physical condition of the property and its inclusions inspected. Many of the more severe and expensive problems such as mechanical, electrical, structural and plumbing are not noticeable to the untrained eye. If repairs are needed, negotiate these in your contract offer. A professionally conducted home inspection followed by a written evaluation is becoming standard procedure in home buying because of increased buyer awareness and savvy.
Are inspectors licensed?
Since an increasing number of buyers are requesting property inspections, there has been a rapid increase in the number of people entering the inspection field, make sure your inspector is a member of CREIA (California Real Estate Inspectors’ Association) and ASHI (American Society of Home Inspectors).
What does an inspection entail?
A qualified inspector will follow Standards of Practice in conducting their inspection. The inspection consists of a physical inspection of the home with the purchaser present, followed by a written report detailing their findings. They report on the general condition of the home’s electrical, heating, and air systems, interior plumbing, roof, visible insulation, walls, ceilings, floors, windows, doors, foundation, and visible structure. The inspection is not designed to criticize every minor problem or defect in the home. No home is perfect. It is intended to report on major damage or serious problems that require repair for the well being of the home and that might require significant expense.
More Inspection Information...
Buyer education is necessary —
The primary purpose of the inspection is to educate the buyer to make an informed purchasing decision. The inspector should allow and even encourage the buyer to attend the home inspection. A good home inspector knows how the home’s many systems and components work together and how to minimize the damaging effects of sun and water. The buyer’s attendance of the inspection provides them with an overall idea of possible future repair costs and maintenance routines. This is valuable information, which could increase the life span, and perhaps the future selling price of the home.
Continuing education is important for inspectors —
A competent home inspector is familiar with the latest construction materials, home building techniques, and professional equipment. Consumers should research whether prospective home inspectors actively monitor the changes in construction and real estate in order to keep their business practices current and professional. Members must meet annual continuing education requirements for this purpose.
Time and fee guidelines for the inspection —
The time necessary to properly inspect a home, as well as the fee charged by an inspector, varies according to market location, the size and age of the home, and the individual inspection company. However, you can expect that it will take an average of two to three hours to competently inspect a typical one-family, three-bedroom home, with an average cost of $300 to $500. Your agent may not be at the inspection, so notify Christine after the inspection is completed.
Beware of false claims —
Consumers must be cautious in evaluating some of the claims made by people hoping to fill the growing demand for home inspection services. Many new companies request only an application fee. Some claim to offer certification but do not require exams or proven credentials. Still others boast engineering licenses as assurance of competence, even though the engineering license has nothing to do with home inspecting.
Inspection extras —
Some inspectors may be qualified to provide other types of services with their inspection that go beyond the scope of the ASHI standards.
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Last Updated on Wednesday, 24 February 2010 21:45 |
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Wednesday, 24 February 2010 21:27 |
New Home Warranties —
When you purchase a newly built home, the builder usually offers some sort of full or limited warranty on things such as the quality of design, materials, and workmanship. These warranties are usually for a period of one-year from the purchase of the home.
At closing, the builder will assign to you the manufacturer’s warranties that were provided to the builder for materials, appliances, fixtures, etc. For example, if your dishwasher were to become faulty within one year from the purchase of your newly built home, you would call the manufacturer of the dishwasher – not the builder.
If the homebuilder does not offer a warranty, BE SURE TO ASK WHY!
Resale Home Warranties —
When you purchase a resale home, you can purchase warranties that will protect you against most ordinary flaws and breakdowns for at least the first year of occupancy. The warranty may be offered by the Seller as part of his overall package or by some Realtors who have access to programs that will ensure the buyer against any defects in the home. Even with a warranty, you should have the home carefully inspected before you purchase it.
A home warranty program will give you peace of mind, knowing that the major covered components in your home will be repaired if necessary. Ask me for more details about home warrant packages.
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