Select A Local Realtor To Help You:

• Determine your criteria in a home.
  
• Understand current market conditions.
• Identify financial qualifications.

Prequalification

• A loan prequalification approval letter is obtained from your lender.

Preview Properties

• Tour available homes that suit your needs.
• Ask your Realtor about the current market.

Select Home And Write The Offer

• Your agent will discuss your options, negotiate the contract terms and collect your deposit check.

Present Your Offer To The Seller

• Once your offer is presented, the seller will accept, counter or reject your offer.

Counter Offer

Sometimes several counter offers are presented before the final details are accepted.

Once your offer is accepted:

Escrow

• Escrow is opened with Financial Title, usually by the listing or selling agent.
• Deposit money is placed with the title company.
• A Preliminary Title Report is issued and copies are sent to you, your agent, and your lender.
• Escrow instructions are initiated.

Loan Application

• Submit a completed loan application to the lender of your choice with all necessary documentation.

Contingency Period

• Buyer receives and approves Seller's Real Estate Transfer Disclosure Statement.
• Buyer approves Preliminary Title report.
• Physical inspections/pest inspections are completed.
• Property appraisal and loan approval are in progress.

Homeowner Insurance Coverage

• Buyers obtain a Homeowner Insurance Policy for their new home and insurance information is given to escrow.
• Escrow orders a copy of the Homeowner insurance policy for the new lender prior to escrow closing.

Signing Documents At Financial Title

• Buyers need to bring current photo ID to sign notarized loan documents at Financial Title Company.
• Copies of title and lender documents are given to buyers.

Down Payment And Closing Cost:

A cashier's check or funds wired to Financial Title Company is required for any balance due.

Funding

The lender sends loan proceeds to Financial Title Company.

Close Of Escrow

• Financial Title Company records the deed and other pertinent documents at the County Recorder's office. (You will receive the original grant deed back from the county recorder in approximately 6 weeks.)
• The keys are delivered from the seller to the buyer according to the purchase contract.

Congratulations, you are now a proud homeowner!

Loan Checklist

Use the Following Checklist to Prepare for Your Mortgage Loan Application Appointment and the Loan Process.

• Copy of Sales Contract (on the purchase of your new home)
• Copy of Sales Contract and certified copy of Closing Statement (on the sale of your present home)

• Residence History

• Past 24 months of residences with complete addresses
• Length of time you lived at each residence
• Name of landlord and his/her address (if currently renting)

• Employment History

• Employers for the past two years with complete address
• W-2's for the past two years
• Most recent 2-years' tax returns (with all schedules)
• Year-to-date profit and loss statement and current balance sheet (if self-employed)
• If there have been any gaps in your employment be prepared to explain
• Copies of most recent monthly statements for all loans or credit card balances and copies of most recent 3 month's bank statements for all accounts, stock brokerages, mutual funds, IRAs, pensions, etc.
• Current Real Estate
• Property addresses
• Estimated market value
• Outstanding loan balances (bring copy of most recent loan statement)
• Amount of monthly mortgage loan payment
• Amount of monthly rental income, if any (copy of rental agreements)

• Personal Property
• Net cash value of your life insurance
• Year, make and value of all vehicles
• Value of your furniture and personal property
• If applicable, the following:
• Copy of divorce papers (all papers including marital termination agreement and final decree signed bythe courts)
• Copy of driver's license and Social Security Card (for FHA Loans only)

Who Pays What

Click here to download the above table in high-resolution, printable PDF format

Methods of Holding Title

Vesting

Advantages and Limitations

Title to real property in California may be held by individuals, either in Sole Ownership or in Co-ownership. Co-ownership of real property occurs when title is held by two or more persons. There are several variations as to how title may be held in each type of ownership. The following brief summaries reference eight of the more common examples of Sole Ownership and Co-ownership.

Sole Ownership

A Single Man/Woman - A man or woman who is not legally married. Example: John Doe, a single man.

An Unmarried Man/Woman - A man or woman, who having been married is legally divorced. Examples: John Doe, unmarried man.

A Married Man/Woman, as His/Her Sole and Separate Property - When a married man or woman wishes to acquire title in his or her name alone, the spouse must consent to transfer thereby relinquishing all rights, title and interest in the property. Example: John Doe, a married man, as his sole and separate property.

Domestic Partners - The term "domestic partners" equals husband and wife as set forth in the provisions of California Family Code Section 297.5.

Co-Ownership

Community Property - The California Civil Code defines community property as property acquired by husband and wife, domestic partners, or by either. Real property conveyed to a married man or woman or registered domestic partner, is presumed to be community property, unless otherwise stated. Under community property, both spouses have the right to dispose of one half of the community property. If a spouse does not exercise his/her right to dispose of one-half to someone other than his/her spouse, then the one-half will go to the surviving spouse without administration. If a spouse exercises his/her right to dispose of one-half, that half is subject to administration in the estate. Example: John Doe & Mary Doe, husband and wife, as community property. Example: John Doe & Mary Doe, husband and wife. Example: John Doe, a married man.

(With respect to California Civil Code regarding domestic partners and its relationship to community property, please refer to California Family Code Section 297.5).

Joint Tenancy

A joint tenancy estate is defined in the Civil Code as follows: "A joint interest is one owned by two or more persons in equal shares, by a title created by a single will or transfer, when expressly declared in the will or transfer to be joint tenancy." A chief characteristic of joint tenancy property is the right of survivorship. When a joint tenant dies, title to the property immediately vests in the surviving joint tenant(s). As a consequence, joint tenancy property is not subject to disposition by will. Example: John Doe and Mary Doe, husband and wife, as joint tenants.

Tenancy in Common

Under tenancy in common, the co-owners own undivided interests; but unlike joint tenancy, these interests need not be equal in quantity or duration, and may arise at different times. There is no right of survivorship; each tenant owns an interest which, on his or her death, vests in his or her heirs or devisees. Example: John Doe, a single man, as to an undivided 3/4ths interest, and George Smith, a single man, as to an undivided 1/4th interest, as tenants in common.

Trust

Title to real property in California may be held in a title holding trust. The trust holds legal and equitable title to the real estate. The trustee holds title for the trustor/beneficiary who retains all of the management rights and responsibilities.

Community Property with Right of Survivorship

Community Property of a husband and wife or domestic partners, when expressly declared in the transfer document to be community property with the right of survivorship, shall, upon the death of one of the spouses or domestic partners, pass to the survivor, without administration, subject to the same procedures as property held in joint tenancy.

The preceding summaries are a few of the more common ways to take title to real property in California and are provided for informational purposes only. There are significant tax and legal consequences on how you hold title. We strongly suggest contacting an attorney and/or CPA for specific advice on how you should actually vest your title.

Click here to download the above table in high-resolution, printable PDF format

Important Tax Information

Important Real Property Tax Dates

January 1 - Assessment Date.

Taxes become a lien at 12:01 a.m. Not yet due and payable for the Fiscal Tax Year starting July 1. Thereafter title evidence must show taxes as a lien for the coming Fiscal Tax Year.

February 15 - Last Day to File for 100% Homeowners Exemption.

To be eligible for applicable exemptions you must own and occupy property on January 1.

July 1 - Current Fiscal Tax Year Begins.

November 1 - First Installment Due.

(First installment - July 1 through December 31)

December 10 - First Installment Becomes Delinquent At 5 P.M.

10% penalty added to taxes due. If December 10 falls on a weekend or holiday, taxes are not delinquent until 5 p.m. the next business day.

December 10 - Last Day to File for 80% Homeowners Exemption.

January 1 - Calendar Year Begins.

February 1 - Second Installment Due.

(Second installment - January 1 through June 30).

April 10 - 2nd Installment Becomes Delinquent at 5 P.M.

10% penalty plus $10 administrative charge attaches. If April 10 falls on a weekend or holiday, taxes are not delinquent until 5 p.m. the next business day.

June 30 - Property Tax May Become Defaulted.

If you fail to pay either or both installments by 5 p.m., property tax becomes defaulted and additional costs and penalties accrue. If June 30 falls on a weekend or holiday, taxes must be paid by 5 p.m. of the preceding business day.

Reminder - Property May Be Sold at Public Auction After 5 Years of Delinquency.

How Property Taxes Are Determined

Property taxes are governed by California State law and collected by the county. The County Assessor must first assess the value of your property to determine the amount of property tax.

Generally, the assessed value is the cash or market value at the time of purchase. This value increases not more than 2% per year until the property is sold or new construction is completed.

The Auditor-Controller applies the appropriate tax rates, which include the general tax levy, locally voted special taxes, and any city or district direct assessments.

The Tax Collector prepares property tax bills based on the Auditor-Controller's calculations, distributes the bills and then collects the taxes.

Can You Disagree With the Amount?

You may apply to the Assessor to see if that office will change the valuation.

Additionally, Appeals Boards have been established for the purpose of resolving valuation problems. Appeals on regular assessments, corrected assessments, escaped assessments (assessments that did not take place when they should have), or supplemental assessments all have different filing deadlines - please contact the appropriate Assessor's Office.

File an Appeal but Remember to Pay the Tax

If you choose to appeal, still pay your tax installments in full by the appropriate deadlines or you may incur penalties. If your appeal is granted, a refund will be issued to you.

Did You Recently Purchase Property?

Although escrow prorates taxes and gives appropriate credit between buyer and seller, the actual taxes may not have been paid and you are responsible for any unpaid taxes at the close of escrow.

Read your escrow papers and/or title report to determine if any portion of the annual taxes were paid by the previous owner before the close of escrow.

The Tax Collector will not send a bill for the remainder of the year in which you acquired the property unless requested. If any taxes remain unpaid, call the Tax Collector and request a bill. When you call, give the Assessor's Parcel Number.

Property Tax Calendar

Click here to download the Property Tax Calendar in high-resolution, printable PDF format.

Owner must own and occupy the property on January 1st to be eligible for application exemption.

Penalties for delinquency are 10% on the date of delinquency, plus $10.00 costs for delinquent 2nd installment; thereafter, 1.5% per month of original tax amount until paid.

Property may be sold at public auction after 5 years delinquency.

House Hunter's Scorecard

Take Me Along with You!

Nothing is quite so frustrating as forgetting why you liked two or three particular homes after weeks of looking. With this scorecard, you can keep track!

Click here to download the House Hunter's Scorecard in high-resolution, printable PDF format.

About the Neighborhood Checklist:

Click here to download the About the Neighborhood Checklist in high-resolution, printable PDF format.