escrow flyers

36
We are Proud to be Working for an “All American Company” Unlike many of our competitors, everyone involved in servicing your title business at Investors Title Company is a local industry professional. Our employees work in America, spend their earnings in America, and pay taxes to the Good Old USA. While other companies continue to eliminate jobs by moving them off-shore, we are adding American jobs to our local economy. Placing your business with Investors Title Company, you can rest assured your title order will be searched, examined and processed by experienced American title professionals. In addition, you will also be helping provide needed jobs to American workers. “Title Insurance for Americans by Americans” Investors Title Company • 161 Fashion Lane Ste. 201 Tustin, CA 92780 • 714.586.8400 • Toll free 866.698.9544

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Informational Escrow Flyers

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Page 1: Escrow Flyers

We are Proud to be Working for an

“All American Company”

Unlike many of our competitors, everyone involved in servicing your title business at Investors Title Company is a local industry professional. Our employees work in America, spend their earnings in America, and pay taxes to the Good Old USA.

While other companies continue to eliminate jobs by moving them off-shore, we are adding American jobs to our local economy.

Placing your business with Investors Title Company, you can rest assured your title order will be searched, examined and processed by experienced American

title professionals. In addition, you will also be helping provide needed jobs to American workers.

“Title Insurance for Americans by Americans”

Investors Title Company • 161 Fashion Lane Ste. 201 Tustin, CA 92780 • 714.586.8400 • Toll free 866.698.9544

Page 2: Escrow Flyers

Parcel Numbering SystemMost counties use a number system to identify a parcelfor tax purposes. In California, the Assessor’s Parcel Number (APN) refers to the map book number and actsas the index for researching parcel information. Information is available for public viewing in most county Assessor’s Offices and Recorder’s Offices.

The Parcel NumberConsists of 3 different parts; For example...

APN: 123-456-78 would meanAssessor’s Book 123; Page 45 and Block 6of that page; and parcel 78 of that Block.

A.P.N Explained(Assessor’s Parcel Number)

Locating Parcels1. If street names are shown on the Plat Map, use the street index guide of another larger area map to locate the parcel.

2. If no street names are present, use theTownship and Range numbers to locate theparcel.

The entire United States is divided into a large grid pattern of Townships and Ranges approximately six miles wide. Each Township and Range intersection is comprised of36 Sections of land. A single section is one square mile in size. Refer to the legend of another general area map to identify its Section, Township and Range markings.

For Example: S. 1/2, Sec. 16, T. 6N, R3W across the top of the Plat Map would mean; the South half of Section 16, Township 6 North, Range 3 West. Refer to the legend of another general map to identify corresponding Section, Township and Range markings.123-456-78

BOOKPAGE

BLOCKPARCEL

Helpful InformationThe Assessor’s office and the Planning Departments in most counties maintain a variety of maps (General, Asses-sor’s plat, Subdivision and Zoning maps ). These offices are a good source of property information. Investors Title Company is another good source of information.

The United States department of the interior, Geological Survey (U.S.G.S.), Maps cover the entire country and come in several different scales. Many retailers sell U.S.G.S. Maps as well as county maps useful to the real estate inves-tor. See your local book store, map dealer or camping outlet.

Investors Title Company400 N. Tustin Ave. #260

Santa Ana, CA 92705Office: 714-586-8400

Customer Service: 714-586-8424

Page 3: Escrow Flyers

IMPORTANT DATES FOR HOMEOWNERS

Information deemed reliable, but accuracy is not guaranteed.

January 1

February 1

February 15

April 10

May 15 to December 10

June 1

June 30

July 1

July 2

September (fourth Monday)

October 1

October 15

November 1

November 30

December 10

December 31

• Taxes become a lien on all taxable property at 12:01 A.M.• First day to file affidavits and claims for exemptions for real property• First day to file application for “decline-in-value” reassessment (Proposition 8

• Second installment of real taxes is DUE (DELINQUENT after 5:00 PM on April 10).

• Deadline for timely filing of affidavits and claims for exemptions (late after 5:00 PM; a postmark before midnight is considered timely) for real property, including Veterans’ & Disabled Veterans’.• Last day to file for the Homeowner’s Exemption claim (late after 5:00 PM; a postmark before midnight is considered timely) to receive the maximum exemption ($7,000 of assessed value).

• SECOND INSTALLMENT OF REAL ESTATE TAXES BECOMES DELINQUENT AFTER 5:00 PM (a postmark before midnight is considered timely).• Annual Payment on the Installment Plan of Redemption is due.

• Period for filing affidavit and claim for property tax postponement with State Controller.

• Mailing of delinquent tax bills for current year and supplementals.

• Last day of the property tax year (fiscal year).• DELINQUENT property becomes TAX DEFAULTED for nonpayment of taxes and is subject to the power of sale five (5) years hence if delinquent taxes are not fully paid. Last day (prior to 5:00 PM) to open an installment plan of redemption on those parcels in their fifth year of delinquency.

• First day of the property tax year (fiscal year).• First day affidavit and claim for homeowner or renters assistance may be filed with State Franchise Tax Board.

• First day to file an Assessment Appeal application for equalization of assessment.

• Assessment Appeals hearings commence.

• Beginning day of annual secured tax bill mailing

• Last day affidavit and claim for homeowner or renters assistance may be filed (late after 5:00 PM) with State Franchise Tax Board.

• First installment of real estate taxes is DUE (DELINQUENT after 5:00 PM on December 10).

• LAST DAY TO FILE ASSESSMENT APPEAL APPLICATION FOR REDUCTION OF ASSESSMENT MADE IN REGULAR PERIOD IN LOS ANGELES COUNTY.

• FIRST INSTALLMENT OF REAL ESTATE TAXES BECOMES DELINQUENT AFTER 5:00 PM (a post- mark before midnight is considered timely).• Last day to file late Homeowners’ Exemption to receive 80% of the exemption.• Last day to file late Veterans’ Exemption to receive 80% of the exemption.• Last day to file late Disabled Veterans’ Exemption to receive 90% of the exemption.• Last day to terminate Homeowners’, Veterans’, and Disabled Veterans’ exemptions.• Last day to file for postponment of taxes with State Controller.

• Last day to file application for “decline-in-value” reassessment (Proposition 8) with our office. This should be done if you feel the market value of your property is below your Proposition 13 value.

If the specified date falls on a weekend or legal holiday, the act required may be done on the next business day. The property tax year (fiscal year) runs from July 1 to June 30. Property is taxed as of January 1 for payment in the following fiscal year.

Page 4: Escrow Flyers

California Domestic Partnership Law Family Code Section 297, et seq.

REQUIREMENTSRequirements for establishing a domestic partnership in California: 1. Both persons file a Declaration of Domestic Partnership with the Secretary of State 2. Both persons have a common residence 3. Neither person is married to someone else or is a member of another domestic partnership 4. The two persons are not related by blood in a way that would prevent them from being married to each other in this state 5. Both persons are at least 18 years of age 6. Either of the following: A. Both persons are members of the same sex, OR B. One or both of the persons meet certain eligibility criteria under the Social Security Act and one/both of the persons are over the age of 62 7. Both persons are capable of consenting to the domestic partnership

RIGHTS OF DOMESTIC PARTNERSRegistered domestic partners shall have the same rights, protections, and benefits, and shall besubject to the same responsibilities, obligations, and duties under law, whether they derive fromstatutes, administrative regulations, court rules, government policies, common law, or any otherprovisions or sources of law, as are granted to and imposed upon spouses.

INCOME TAX RETURNSHowever, in filing their state income tax returns, domestic partners shall use the same filing statusas is used on their federal income tax returns, or that would have been used had they filed federalincome tax returns. Earned income may not be treated as community property for state income taxpurposes.

VESTINGThe statutes do not specify a manner of holding title. We will accept vestings that mirror vestings for husbands and wives. Examples are:John Jones and Sam Smith, domestic partners, as joint tenantsMary Jones and Barbara Smith, domestic partners, as community property

Information deemed reliable, but not guaranteed.

SOUPTITLE

Page 5: Escrow Flyers

Investors Title CompanyInvestors Title Company Title Coverage Map

Now Serving 51 Counties in California Service areas outlined below:Service areas outlined below:

Northern California CoverageNorthern California Coverage

ITC Licensed in these countiesITC Licensed in these counties

ModocSiskiyou

Lassen

Plumas

Sierra

Del Norte

HumboldtTrinity Shasta

Tehama

ButteGlennMendocino

LakeColusa Yuba

NevadaPlacer

El DoradoSutter

Amador

CalaverasSan Joaquin

SacramentoYolo

Solano

Contra Costa

San Mateo

Alameda

AlpineSonoma Napa

MarinTuolumne

MonoMariposaStanislaus

Merced

Santa Clara

San Benito

MontereyInyo

FresnoMadera

Tulare

San Luis Obispo Kern

San Bernardino

Riverside

Los Angeles

Ventura

San Diego

Orange

Imperial

Santa Barbara

Kings

Northern California Counties Serviced **

Alameda

Alpine

Amador

Butte

Calaveras

Colusa

Contra Costa

Del Norte

El Dorado

Fresno

Imperial

Kern

Kings

Lake

Madera

Marin

Mariposa

Mendocino

Merced

Monterey

Nevada

Placer

Proven Experience, Outstanding Service

** Northern California preliminary title reports produced and policies issued by First American Title Company

Sacramento

San Benito

San Francisco

San Joaquin

San Luis Obispo

San Mateo

Santa Barbara

Santa Clara

Santa Cruz

Shasta

Sierra

Siskiyou

Solano

Sonoma

Stanislaus

Sutter

Trinity

Tulare

Tuolumne

Yolo

Yuba

Page 6: Escrow Flyers

Southern California County Recorders

Cutoff Time Schedule

Los Angeles

Orange

Riverside

San Bernardino

San Diego

Santa Barbara

Ventura

Kern

Imperial

562.462.2137

714.834.2710

951.486.7000

909.387.8314

619.237.0502

805.568.2250

805.654.3788

661.868.3460

760.482.4481

3:30pm (the night before)

3:00pm

1:30pm

11:00am

3:00pm (sales)

3:30pm (the night before)

3:30pm (the night before)

12:00pm

10:00am

No

Yes - Daily

Yes (Friday and month end)

Yes- Daily

Yes Sales Only

No

No

Yes - Daily

No

County Phone Cuttoff-Time Specials

Southern California County

Tax AssessorsImperial County Tax AssessorRoy D. Buckner940 W. Main Street Suite 115 El Centro, CA 92243Phone: 760.482.4244 Fax: 760.482.4243

Kern County AssessorJim Fitch1115 Truxtun AvenueBakersfield, CA 93301Email: [email protected]: 661.868.3485

Los Angeles County Tax AssessorJohn R. Noguez500 W. Temple St. Room 225Los Angeles, CA 90012-2770Phone: 888.807.2111

Orange County Tax Assessor Webster J. Guillory, Assessor625 N. Ross St., Civic Center Plaza, Building 11, Room 142Santa Ana, CA 92701Phone: 714.834.2727

Riverside County Tax AssessorLarry Ward4080 Lemon St, 1st FloorP.O. Box 12004Riverside, CA 92502-2204Email: [email protected] Phone: 800.746.1544Fax: 951.955.6200

San Bernardino County Tax Assessor Dennis Draeger172 W. Third St. San Bernardino, CA 92415 Phone: 909.387-8307Toll free: 877.885.7654

San Diego Tax Assessor Ernest Dronenburg1600 Pacific Highway, Suite 103 San Diego, CA 92101 Mail Stop: A-4Phone: 619.236.3771

Santa Barbara Tax AssessorsJoseph Holland105 E. Anapamu St., Room 204Santa Barbara, CA 93101Phone: 805.568.2550Fax: 805.568.3247

Ventura County Assessor’s Office Dan Goodwin800 S. Victoria AvenueVentura, CA 93009Phone: 805.654.2181 Fax: 805.645.1305

400 N. Tustin Ave. #260 Santa Ana, CA 92705Office: 714-586-8400 Customer Service: 714-586-8424

***Please note that each county has many other fees for recording various documents. For a full listing of each please visit the website of the specific county.

Last day of the monthor day before holiday

Page 7: Escrow Flyers

Southern California County Recorder Offices& Documentary Transfer Tax Rates

Address Contact County TaxPer $1000

City City TaxPer $1000

$1.10$1.10$1.10$1.10$1.10

Culver CityLos Angeles

PomonaRedondo BeachSanta Monica

$4.50$4.50$2.20$2.20$3.00

County of Los Angeles12400 Imperial Hwy.Room 2001Norwalk, CA 90650

http://lavote.net562.462.2125

LOS ANGELES

ORANGE

Hall of Records and Finance12 Civic Center PlazaSanta Ana, CA 92701

www.ocrecorder.com714.834.2500

$1.10 All OC Cities $0.00

Hall of Records222 West Hospitality LaneSan Bernardino, CA 92415

www.sbcounty.gov909.387.8322

$1.10 All SB Cities $0.00

SAN BERNARDINO

RIVERSIDE

County Administrative Center4080 Lemon St., 1st FlRiverside, CA 92502

www.riversidecr.com951.955.6200

$1.10$1.10

RiversideOther RC Cities

$1.10$0.00

SAN DIEGO

VENTURA

County Administration Bldg.1600 Pacific Hwy, Suite 103San Diego, CA 92101

www.sdpublic.sdcounty.ca.gov

619.236.3771$1.10 All SD Cities $0.00

County of Ventura800 S. Victoria AvenueVentura, CA 93009

http://recorder.countyofventura.org $1.10 All Ventura Cities $0.00

Page 8: Escrow Flyers

Foreclosure Timeline

At least 30 days prior to recording Notice of Default

Start (Day 1-3)

Within 10 Business Days

Within 1 Month

After 3 Months

At least 25 days prior to Sale Date

At least 20 days prior to Sale Date

5 Days Prior to Sale Date

Sale Date

Lender must contact Borrower in compliance with California

Civil Code 2923.5 (Applies to certain residential DTs)

Notice of Default recorded with the county recorder.

Trustee mails Notice of Default to borrower(s).

Mail Notice of Default parties with an interest in title.

Set sale date.

Send Notice of Sale to the IRS (if applicable)

Post Notice of Sale

Mail Notice of Sale

Begin publishing Notice of Sale in an adjudicated newspaper

(Must run for 3 weeks)

Trustee cannot sell for 7 days after expiration of bankruptcy

court order

The borrower’s right to reinstate expires

The property is sold to the highest bidder or reverts back to the

CALENDAR PROCESS

The following time-line is applicable for non-judicial California Foreclosures under a Deed of Trust. Foreclosures begin

Investors Title Company400 N. Tustin Ave. #260

Santa Ana, CA 92705714-586-8400714-586-8424

Page 9: Escrow Flyers

Real Estate EncumbrancesLiens, Easements, and Encroachments

ENCUMBRANCE - An encumbrance is a claim or liability against real estate, held by someone other than the fee owner ofthe property, and therefore its value. It does not confer any possessory interest, and there is not an estate, and does notnecessarily prevent the transfer of title. Encumbrances can include liens against the property, deed restrictions, easements,and encroachments.

LIEN - A lien is a claim against the property which serves as collateral for a debt. The lien holder has the legal right to go tocourt to have the property sold to satisfy the debt, if it is not paid. Unpaid real estate taxes or mortgage payments can resultin a lien against the property. Anyone who works on the property and is not paid can file a Mechanic’s lien against theproperty. The liens transfer with the property, so if they are not paid when the real estate is sold, then the new ownerbecomes liable for the debts.

DEED RESTRICTIONS, (aka conditions, covenants, and restrictions, or CC&Rs) - Deed restrictions are private agree-ments that restrict the use of real estate in some way, and are listed in the deed - hence the name. The seller may add a restriction to the title of the property. Often, developers restrict the parcels of property in a development to maintain a certainamount of uniformity.

EASEMENTS - An easement is an interest in land of another, entitling theholder of the easement to a limited use or enjoyment of the land in which theinterest exists. An easement does not contemplate possession. An easementis all about use. An Easement is said to be appurtenant to land if it is created to benefit and ifit does benefit the owner of a parcel of land in the use and enjoyment of suchland. Title to an appurtenant easement passes with a conveyance of the landbenefited even though the appurtenant easement is not described in or granted in the conveyance. The land to which an appurtenant easement is attached is called the dominanttenement; the land upon which an easment, either appurtenant or in gross, constitutes a burden or serviture is called the servient tenement. Easements are created and they are transferred, subject to rules governingreal property conveyancing. Easements must be created by an instrument inwriting as in the case of a direct grant by deed; by reservation or by exceptionin a deed; or by agreement. All the essentials of a real property conveyance are generally applicable.

By Grant: The owner of the property grants an easement to another for any number of purposes. The deed is usually specificas to the purpose and its location.

By Reservation: This is most seen in deeds where property has been split and the grantor requires access, utilities, ingress, egress over the parcel being conveyed.

Prescriptive easements: Prescriptive easements are difficult to obtain. You have to prove in a court of law that you have usedthis easement for 5 consecutive years. If the owner of the property bars you from using the easement for one day, the clockhas to start all over again.

Condemnation or eminent domain: The state or agency of the state must obtain a judgment of condemnation or eminentdomain to obtain and easement.

Covenant, Conditions and Restrictions: Most CC&R’s contain easements for maintenance, utilities, ingress and egress, as inthe case of a condominium or a planned unit development. These CC&R’s and easements run with the property and have notermination date. These easements are acquired whether referenced in the grant of title or not.

EXAMPLE

CONTINUED ON REVERSE...

Page 10: Escrow Flyers

EXTINGUISHMENT - An easement is an interest in land, extinguishment of an easement is required to conform with realproperty conveyancing principles. Depending on the type of easement and its creation will determine how it can be eliminated.Consult with your Title Officer at Investors Title Company.

LICENSES - A license, unlike an easement, is having the permission of the owner - the licensor - to enter his land for aspecific purpose. Unlike an easement, the license can be rescinded at any time. A license will also terminate upon death ofeither the licensee or licensor, or if the licensor sells the land. Hence, although a license is similar to an easement, a licenseis not actually an encumbrance on the real estate and does not transfer with title.

ENCROACHMENTS - An encroachment is an extension of some physical structure, such as a building, driveway, fence, ortree over the property lines from an adjoining property. Encroachments can affect the marketing of the title, and should benoted in a listing agreement or sales contract.

Encroachments can best be determined by a spot survey, which is a survey showing the locations, sizes, and shapes ofthe buildings on a lot. Visual inspection is not as accurate and should not be relied upon if there is a question of an encroachment.

The owner of the land subject to the encroachment can either sue for damages or have the structure extending over the property lines removed or trimmed back. However, the owner of the encroaching structure may have an easement by prescription if the time period of the encroachment exceeds the prescriptive time stipulated by state law for an easement by prescription.

Information deemed reliable, accuracy is not guaranteed.

Source: www.thismatter.com

A easement agreement is created by written agreement between parties concerning a common boundary, such as a sharedparty wall, a fence, or a driveway, especially between adjacent townhouses or row houses.

Page 11: Escrow Flyers

Apples Protects your heart Prevents constipation Blocks diarrhea Improves lung capacity Cushions joints Apricots Combats cancer Controls blood pressure Saves your eyesight Shields against Alzheimer's Slows aging process Artichokes Aids digestion Lowers cholesterol Protects your heart Stabilizes blood sugar Guards against liver disease Avocados Battles diabetes Lowers cholesterol Helps stops strokes Controls blood pressure Smoothes skin

Bananas Protects your heart Quiets a cough Strengthens bones Controls blood pressure Blocks diarrhea

Beans Prevents constipation Helps hemorrhoids Lowers cholesterol Combats cancer Stabilizes blood sugar Beets Controls blood pressure Combats cancer Strengthens bones Protects your heart Aids weight loss Blueberries Combats cancer Protects your heart Stabilizes blood sugar Boosts memory Prevents constipation Broccoli Strengthens bones Saves eyesight Combats cancer Protects your heart Controls blood pressure Cabbage Combats cancer Prevents constipation Promotes weight loss Protects your heart Helps hemorrhoids

Cantaloupe Saves eyesight Controls blood pressure Lowers cholesterol Combats cancer Supports immune system Carrots Saves eyesight Protects your heart Prevents constipation Combats cancer Promotes weight loss Cauliflower Protects against Prostate Cancer Combats Breast Cancer Strengthens bones Banishes bruises Guards against heart disease Cherries Protects your heart Combats Cancer Ends insomnia Slows aging process Shields against Alzheimer's Chestnuts Promotes weight loss Protects your heart Lowers cholesterol Combats Cancer Controls blood pressure

Chili peppers Aids digestion Soothes sore throat Clears sinuses Combats Cancer Boosts immune system Figs Promotes weight loss Helps stops strokes Lowers cholesterol Combats Cancer Controls blood pressure Fish Protects your heart Boosts memory Protects your heart Combats Cancer Supports immune system Flax Aids digestion Battles diabetes Protects your heart Improves mental health Boosts immune system Garlic Lowers cholesterol Controls blood pressure Combats cancer Kills bacteria Fights fungus

Healthy Food Benefits

Page 12: Escrow Flyers

Grapefruit Protects against heart attacks Promotes Weight loss Helps stops strokes Combats Prostate Cancer Lowers cholesterol Grapes Saves eyesight Conquers kidney stones Combats cancer Enhances blood flow Protects your heart Green tea Combats cancer Protects your heart Helps stops strokes Promotes Weight loss Kills bacteria Honey Heals wounds Aids digestion Guards against ulcers Increases energy Fights allergies Lemons Combats cancer Protects your heart Controls blood pressure Smooths skin Stops scurvy

Limes Combats cancer Protects your heart Controls blood pressure Smooths skin Stops scurvy

Mangoes Combats cancer Boosts memory Regulates thyroid Aids digestion Shields against Alzheimer's Mushrooms Controls blood pressure Lowers cholesterol Kills bacteria Combats cancer Strengthens bones Oats Lowers cholesterol Combats cancer Battles diabetes Prevents constipation Smooths skin Onions Reduce risk of heart attack Combats cancer Kills bacteria Lowers cholesterol Fights fungus Oranges Supports immune systems Combats cancer Protects your heart Straightens respiration Peaches Prevents constipation Combats cancer Helps stops strokes Aids digestion Helps hemorrhoids

Peanuts Protects against heart disease Promotes Weight loss Combats Prostate Cancer Lowers cholesterol Aggravates Diverticulitis Pineapple Strengthens bones Relieves colds Aids digestion Dissolves warts Blocks diarrhea

Prunes Slows aging process Prevents constipation Boosts memory Lowers cholesterol Protects against heart disease Rice Protects your heart Battles diabetes Conquers kidney stones Combats cancer Helps stops strokes Strawberries Combats cancer Protects your heart Boosts memory Calms stress Sweet potatoes Saves your eyesight Lifts mood Combats cancer Strengthens bones

Tomatoes Protects prostate Combats cancer Lowers cholesterol Protects your heart Walnuts Lowers cholesterol Combats cancer Boosts memory Lifts mood Protects against heart disease Watermelon Protects prostate Promotes Weight loss Lowers cholesterol Helps stops strokes Controls blood pressure Wheat germ Combats Colon Cancer Prevents constipation Lowers cholesterol Helps stops strokes Improves digestion Wheat bran Combats Colon Cancer Prevents constipation Lowers cholesterol Helps stops strokes Improves digestion Yogurt Guards against ulcers Strengthens bones Lowers cholesterol Supports immune systems Aids digestion

Healthy Food Benefits

Page 13: Escrow Flyers

Important Tax DatesThe following schedule lists some of the more significant dates for California property taxes affecting propertyowners. Please note this is a partial list, and is intended to be used as a general guide.

July 1 o Beginning of fiscal year. o Assessor completes local roll and delivers to Auditor. o Delinquent secured and supplemental taxes are transferred to delinquent tax roll and additional add at 1 ½% per month on any unpaid tax amounts, plus $15.00 redemption fee.

September 15 ° Last day to file assessment appeals.

October ° Original secured property tax bills are mailed out.

November 1 ° First installment secured property taxes due (delinquent 12/10).

December 10 ° First installment secured property taxes delinquent. A 10% penalty is added as of 5:00 P.M. (*)

January ° Delinquent notices are mailed out for any unpaid first installment secured property taxes.

January 1 ° Lien Date - date for valuation, date taxes attach to property as a lien; applies as of 12:01 A.M.

February 1 ° Second installment secured property taxes due (delinquent 4/10).

April 10 ° Second installment secured property taxes delinquent. A 10% penalty plus $10.00 cost is added as of 5:00 P.M. (*)

June 30 ° End of fiscal year. *If delinquent date falls on a weekend or holiday, the delinquent date is the next business day. For information only. information deemed reliable but not guaranteed. Consult your local assessor, legal or real estate professional with questions regarding your specific situation.

Page 14: Escrow Flyers

History of Interest RatesBased on 30 year Fixed Rate Purchase Loans

19511953195419551956195719581959196019651966196719681969

33.2533.53.754.5454.555.55.756.758.50

19701971197219731974197519761977197819791980198119821983

7.257.487.388.049.199.058.878.859.6411.2013.7416.6316.0413.24

19841985198619871988198919901991199219931994199519961997

13.8812.4310.1910.2110.3410.3210.139.258.397.318.387.937.817.6

1998199920002001200220032004200520062007200820092010

2011

6.947.448.056.976.545.835.845.876.416.346.035.044.69

4.32

Year Rate Year Rate Year Rate Year Rate

67 year historical Interest rate chart:

$100,000 Monthly payment of:

$200,000 Monthly payment of:

$300,000 Monthly payment of:

$400,000 Monthly payment of:

$500,000 Monthly payment of:

$600,000 Monthly payment of:

$700,000 Monthly payment of:

$800,000 Monthly payment of:

$900,000 Monthly payment of:

$1,000,000 Monthly payment of:

$496.05$992.09$1,488.14$1,984.19$2,480.83$2,976.28$3,472.33$3,968.37$4,464.42$4,960.47

Based on an Interest rate of

4.32%

30 Y

ear F

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Rat

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Loan

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*This information is deemed reliable but not guaranteed

First Year Tracked

1944Interest Rate

4.00%

HISTORY

Current Rate

Investors Title Company400 N. Tustin Ave. #260

Santa Ana, Ca 92705Office: 714-586-8400

Customer Service: 714-586-8424

Page 15: Escrow Flyers

A Red Shed Mobile ApplicationCopyright © Red Shed Technology Corp. 2010-2011, all rights reserved.

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Investors Title Company800-252-9106

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• Key Title Information • Property Characteristics • Comparable Sales Data • Primary/Secondary Ownership ... and MORE!

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View Plat Maps

Email Property Report

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itcOnTheGo.com

Page 16: Escrow Flyers

Title SoupTitle SoupRevision to California Laws for 2011

SHORT SALE DEFICIENCIES:SB 931 - Changes to existing law - No judgment shall be rendered for any deficiency under a note secured by a first deed of trust or first mortgage for a dwelling of not more than four units, in any case in which a trustor or mortgagor (seller) sells the dwelling for less than theremaining amount due at the time of sale with written consent of the holder (lender) of the first deed of trust or first mortgage. Written consent of the holder of the first deed of trust or first mortgage to that sale shall obligate that holder (lender) to accept the sale proceeds as full payment and to fully discharge the remaining amount of the indebtedness on the first deed of trust or first mortgage. If the trustor or mortgagor (homeowner) commits either fraud with respect to the sale of, or waste with respect to, the real property that secures the first deed of trust or first mortgage, this section shall not limit the ability of the lender to seek damages and use existing rights and remedies against the trustor or mortgagor or any third party for fraud or waste. This section does not apply if the trustor or mortgagor is a corporation or political subdivision of the state.

RESTRICTION ON ADVERSE POSSESSION CLAIM: AB 1684 - Effective January 1, 2011, a claim for adverse possession requires, among other things, certified records of the county tax collector showing that all state, county, or municipal taxes have been timely paid for the five-year period the property has been occupied and claimed. Existing law merely requires proof that taxes have been paid for the five-year period, not certified proof of timely payments. ADVERSE POSSESSION - The legal doctrine that allows trespassers to become owners is called “adverse possession.” Although the name sounds bad (and the results can be), the trespasser is not necessarily an intentional evildoer - far from it. The trespasser may simply have made a mistake - - relying on a faulty property description in a deed, for example. In rural areas, the person who moves in and occupies several acres may believe he owned it. Questions about ownership often wind up in court after an absent owner of rural property discoversthat someone is living on his land or, when a piece of urban property is sold, a title insurance company refuses to issue insurance because the neighbor’s garage is found to be standing squarely on the property in question. If the people involved cannot work something out, the property owner may sue the trespasser, or the trespasser may bring a lawsuit to quiet title -- a request for the court to settle who owns what.

MECHANICS LIENS:SB 189 - Revisions to the mechanic’s lien law. Effective January 1, 2011, the following changes to the mechanic's lien form are mandatory:1. There is a new statutory required notice of filing of mechanic's lien which must contain the following warning in the body of the mechanic's lien: "NOTICE OF MECHANIC'S LIEN ATTENTION! Upon the recording of the enclosed MECHANIC'S LIEN with the county recorder's office of the county where the property is located, your property is subject to the filing of a legal action seeking a court-ordered foreclosure sale of the real property on which the lien has been recorded. That legal action must be filed with the court no later than 90 days after the date the mechanic's lien is recorded. The party identified in the mechanic's lien may have provided labor or materials forimprovements to your property and may not have been paid for these items. You are receiving this notice because it is a required step infiling a mechanic's lien foreclosure action against your property. The foreclosure action will seek a sale of your property in order to pay for unpaid labor, materials, or improvements provided to your property. This may affect your ability to borrow against, refinance, or sell the property until the mechanic' s lien is released. BECAUSE THE LIEN AFFECTS YOUR PROPERTY, YOU MAY WISH TO SPEAK WITH YOUR CONTRACTOR IMMEDIATELY, OR CONTACT AN ATTORNEY, OR FOR MORE INFORMATION ON MECHANIC'S LIENS GO TO THE CONTRACTORS' STATE LICENSE BOARD WEB SITE AT www.cslb.ca.gov."The notice must be in at least 10-point boldface type, and the last sentence must be in all capital letters, other than the web address of the Contractors' State License Board. Presumably the recorder will not accept the lien without this information.2. The mechanic's lien form must also contain a proof of service under penalty of perjury showing service of both the mechanic's lien and the notice of mechanic's lien. Presumably the recorder will not accept the lien without this information.3. The lien and notice must be served by registered mail, certified mail, or first-class mail, evidenced by a certificate of mailing, postage pre-paid, addressed to the owner or reputed owner at the owner's or reputed owner's residence or place of business address or at the address shown by the building permit on file with the authority issuing a building permit for the work. If the owner or reputed owner cannot be served by this method, then the notice may be given by registered mail, certified mail, or first-class mail, evidenced by a certificate of mailing, postage prepaid, addressed to the construction lender or to the original contractor.Failure to serve the mechanic's lien, including the Notice of Mechanic's Lien, shall cause the mechanic's lien to be unenforceable as a matter of law.

Information deemed reliable, accuracy is not guaranteed. Sources: www.leginfo.ca.gov, www.lovettlawusa.com, www.dot.ca.gov, www.car.org

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INVESTORS TITLEPreliminary Title Reports

Information deemed reliable, accuracy is not guaranteed.

Page 4 • Paragraph 12

( )TITLE AND VESTING:

A. Within the time specified in paragraph 14, Buyer shall be provided a

current preliminary title report, which shall include a search of the

General Index. Seller shall within 7 Days After Acceptance give Escrow

Holder a completed Statement of Information. The preliminary report

is only an offer by the title insurer to issue a policy of title insurance

and may not contain every item affecting title. Buyer’s review of the

preliminary report and any other matters which may affect title are a

contingency of this Agreement as specified in paragraph 14 B *.

* TIME PERIODS: REMOVAL OF CONTINGENCIES; CANCELLATION RIGHTS

Here at Investors Title we have always taken pride in our timely

prelims and dependable, consistent Title team. In keeping with

the changes made to the RPA-CA (Residential Purchase Agree-

ment) we have taken measures to ensure that our service remains

second to none. Please see reference to the 2010 changes to the

RPA below:

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The Preliminary Report Explained

If any of the following items appear on your Preliminary Report, they will require immediate attention.A delay in closing may result without immediate attention.

Information deemed reliable, but accuracy is not guaranteed.

1

2

3

4

5

A CLAIM MECHANICS LIENAMOUNT: $2,333.00BY: JOHN CONTRACTORRECORDED: JANUARY 5,2001 AS INSTRUMENT NO. 01-333

NOTICE OF ACTION FILED IN:COURT: SUPERIORCASE NO: A111223PLANTIFF: JOHN CONTRACTORVS.DEFENDANT: JOHN CONSUMERPURPOSE: FORECLOSE / QUIET TITLERECORDED: MARCH 5, 2001 AS INSTRUMENT NO. 01-2222

SUBJECT TO PROCEEDINGS PENDING IN THE BANKRUPTCY COURT OF THE CENTRAL DISTRICT OF THE U.S. DISTRICT COURT. CALIFORNIA, ENTITLED: IN RE: JOHN CONSUMER, DEBTOR, CASE NO. AP12334, WHEREIN A PETITION FOR RELIEF WAS FILED ON THE DATE OF JANUARY 20, 2001.

THE EFFECT OF A DEED, DATED JUNE 4 1991 EXECUTED BY JUNE CONSUMER AS GRANTOR, TO JOHN CONSUMER AS A GRANTEE, RECORDEDJANUARY 19, 2001 AS INSTRUMENT NO. 01-12222.THE REQUIREMENT THAT THIS OFFICE BE FURNISHED WITH EVIDENCE THAT SAID DEED WAS AN ABSOLUTE CONVEYANCE, FOR VALUE, ANDTHAT THERE ARE NO OTHER AGREEMENTS, ORAL OR WRITTEN, REGARDING OWNERSHIP OF THE LAND DESCRIBED HEREIN.

THE LACK OF A RIGHT OF ACCESS TO AND FROM THE LAND.

NOTICE: PARAGRAPH 4 OF THE INSURING PROVISIONS ON THE FACE PAGE OF THE POLICY WILL BE DELETED FROM THE POLICY TO BEISSUED.

1. MECHANICS LIEN:A statutory lien in favor of persons contributing labor, material, supplies, etc. to a work of improvementupon real property.• A release must be recorded to be removed.

2. NOTICE OF ACTION:A lis pendens. A notice of a pending law suit recorded, that warns all persons that the property is the subjectmatter of a litigation. Any interest acquired during the pending of the suit are subject to it’s outcome.• A release and/or a withdrawal of the action is required to be recorded to remove.

5. ACCESS:A landowner’s right to have ingress to and egress from the property to public street. • This property does not have legal access.

4. UNINSURED DEED:A deed that has been recorded but is believed to not have been checked as to its validity. Additional information may be needed before passing title. • Call your title officer to see what might be needed in each case.

3. BANKRUPTCY:A proceeding in the U.S. Bankruptcy Court wherein assets of a debtor (unable or unwilling to pay debts) areapplied by an officer of the court in satisfaction of a creditor’s claim.• Debtor must be discharged or dismissed from the case.

Investors Title Company

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Escrow Schedule for Tax Impounds

CLOSING DATE FIRST PAYMENTNUMBER OF MONTHS OF

TAXES (Collected by new lender)*

January March 1st 6 Months

February April 1st 2 Month

March May 1st 3 Months

April June 1st 2 Months

May July 1st 3 Months

June August 1st 4 Months

July September 1st 5 Months

August October 1st 6 Months

September November 1st 7 Months

October December 1st 8 Months

November January 1st 2 Months

December February 1st 3 Months

* The Lender may require 2 months cushion in addition

FIRST HALF TAXES

July 1st - December 31stDue: November 1stDelinquent: December 10th

SECOND HALF TAXES

January 1st - June 30thDue: February 1stDelinquent: April 10th

Information deemed reliable, accuracy is not guaranteed.

2nd Inst Due

2nd Inst Due

1st InstDue

1st InstDue

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SB 306Real Property Transactions

Information deemed reliable, but accuracy is not guaranteed.

An act to amend Sections 2923.5, 2923.6, 2924.8, and 2924f of, and to amend, repeal, and add Section 2943

of, the Civil Code, and to amend Section 17312 of the Financial Code, relating to real property transactions.

How does SB 306 effect Short Sales in California?

SB 306

“Requires a beneficiary or his or her authorized agent provide a short-pay demand statement to an entitled

person or his or her authorized agent within 21 days of receiving a demand for the statement from the en-

titled person or his or her agent, but would provide that if a beneficiary or his or her authorized agent elects

not to proceed with the short-sale transaction, he or she is not required to provide a short-pay demand

statement; instead, the beneficiary or his or her authorized agent is required to provide a written statement

regarding its decision not to proceed with the transaction, within 21 days of receiving the demand for the

short-pay demand statement. Further provides that if the terms and conditions of the short-pay agreement

or similar document prepared by the escrow holder, approval or disapproval must be provided no more than

four days after the beneficiary receives the closing statement, except as specified”.

IN SHORT:

1. Once a short sale has been approved, the new law requires for the lender to respond to a short-pay

demand statement within 21 days. The lender’s response to escrow may be a short-pay demand

statement or even, depending on the circumstances, a written statement electing not to proceed

with the proposed transaction.

2. If a lender does not respond to a request for approval of the closing statement within 4 days of

receipt, under the new law, the closing statement will be considered approved, but only if it is “not

clearly contrary to the terms of the short-pay agreement or the short-pay demand statement

provided to the escrowholder.” The new law does not bind a lender to a short payoff amount in an

offer that the lender has not approved.

Additional information:

Escrow must be open for the lender to be held accountable to respond within 21 days of receipt of a

request for short-pay demand or statement.

Section 2943 of the Civil Code applies to any lender in violation of SB 306.

Be sure to seek advise from an attorney for more clarification

Please visit: www.leginfo.ca.gov and enter the bill SB 306

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SB 458 ~ Deficiency JudgmentsAn act to amend Section 580e of the Code of Civil Procedure, relating to mortgages. SB 458 prohibits deficiencies on California Short Sales.

California Governor Jerry Brown signed SB 458 into law on July 15, 2011. SB 458 extends the protections ofSB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon shortsale payment as payment in full of the outstanding balance of all loans.

Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale paymentas full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lienholders. SB 458 extends the protections of SB 931 to junior liens.

Summary of SB 458: • No deficiency judgments will be rendered for short sales agreed upon by the lender • Applies to one to four-unit dwellings in California • SB 458 does not apply to foreclosures • Prohibits lenders from demanding a seller contribution as a condition of short sale approval • If the trustor or mortgagor commits fraud with respect to the short sale, the lender can seek damages and use existing rights against the trustor or mortgagor • SB 458 does not apply if the trustor or mortgagor is a corporation, LLC, LP, or political subdivision of the state.

Sources: www.car.org / www.about.com · Information deemed reliable, accuracy is not guaranteed.

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Q. What is a Statement of Information?

A. A Statement of information is a form routinely requested from the buyer, seller and borrower in a transaction where title insurance is sought. The completed form provides the title company with information needed to adequately examine documents so as to disregard matters which do not affect the property to be insured, matters which actually apply to some other person

Q. What does a Statement of Information do?

A. Every day documents affecting real property -- liens,court decrees, bankruptcies, etc. -- are recorded.

Whenever a title company uncovers a recorded document in which the name is the same or similar to that of the buyer, seller or borrower in a title transaction, the title company must ask, “Does this document affect the parties we are insuring?” Because, if it does, it affects title to the property and would, therefore, be listed as an exception from coverage under the title policy.

A properly completed Statement of Information will allow the title company to differentiate between parties with the s ame or similar names when searching documents recorded by name. This protects all parties involved and allows the title company to competently carry out its duties without unnecessary delay.

Q. What types of information are requested in a Statement of Information?

A. The information requested is personal in nature, but not unnecessarily so. The information requested is essential to avoid delays in closing the transaction.

You, and if applicable, your spouse or registered domestic partner, will be asked to provide full name, social security number, year of birth, birthplace, and information on citizenship. If applicable, you will be asked the date and place of your marriage or registered domestic partnership.

Residence and employment information will also be requested, as will information regarding previous marriages or registered domestic partnerships.

Q. Will the information I supply be kept confidential?

A. The information you supply is completely confidential and only for the title company use in completing the search of records necessary before a policy of title insurance can be issued.

Q. What happens if a buyer, seller, or borrower fails to provide the requested Statement of Information?

A. Per the California Association of Realtors contract, sellers are required to provide the Statement of to their Escrow Holder within 7 days of acceptance of the contract. Without a Statement of Information, it would be necessary for the title company to list as exceptions from coverage; judgements, liens or other matters which may affect the property to be insured. Such exceptions would be unacceptable to most lenders - whose interest must also be insured, and will prohibit the close of escrow.

Please check with your state or local land title association for applicable laws.

Statements of InformationUnderstandingUnderstanding

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1. Someone else owns a recorded interest in your title.

2. A document is not properly signed, acknowledged or delivered

3. Forgery, fraud, duress, incompetency, incapacity or impersonation

4. Defective recording of a document

5. Unmarketability of title

6. Lack of right of access to and from the land

7. Mechanic’s lien protection

8. Forced removal of the residential structure - encroachments

9. Unrecorded liens by the homeowner’s association

10. Others have rights arising out of leases, contracts or options

11. Plain language

12. Post-policy encroachment

13. Post-policy forgery

14. Building permit violations - forced removal

15. Subdivision Law violations

16. Zoning violations - forced removal

17. Restrictive covenant violations

18. Enhanced access feature

19. Location of the land on a map

20. Exercise of mineral rights

21. Living trust coverage

22. Automatic policy increase

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Note: This chart is intended for comparison purposes only and is not to be relied on for an explanation of policy coverage. Policy coverages are subject to the terms, exclusions, exceptions and deductibles shown in the policies.

* Certain properites do not qualify for the Homeowners Policy

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Title Policy Comparison

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Title “Red Flags” Title “Red Flags”

A flag does not necessarily mean that the transaction is bad, but it does mean we need to take extra steps to make sure it is legitimate. Below are just a few Title Red Flags for you to be aware that your Investors Title Company title officer will be screening for when examining each transaction. 1. The property is free and clear. Sure, some property is free and clear. But most property is not. You need to ask why are there no liens? Is it because the person either has a lot of money or paid the property off after 30 years? Or is it because there is a forged reconveyance in the chain of title or because a deed of trust was missed in the title search? 2. Title was obtained by an uninsured deed. An uninsured deed in the chain of title is fine if it is a transfer from the grantor to the grantor’s family trust, or from a person to himself and his spouse as joint tenants. In both cases the grantor has not parted with title. But otherwise the deed needs to be questioned: a. Be sure the signatures on the uninsured deed match those on a previous institutional deed of trust. b. Obtain an affidavit of forgery 3. Reconveyance is not accompanied by a transaction that could have paid off the deed of trust. How often do people pay off a deed of trust with cash instead of with a new loan? Sure, it happens on occasion, but it is so rare that it is highly suspicious. The reconveyance is often a forgery. 4. 3rd Party disbursement of funds. Beware of seller’s instructions to pay a 3rd party who does not hold a secured lien. Obviously, paying off credit cards as required by a lender, HOA dues, broker’s commissions, etc... are normal. But large payments to third parties is often a flag of loan fraud in which the property value is being inflated in order to defraud the new lender. 5. Proceeds are being wired offshore. 6. No documents are executed in the escrow office. Obviously, signings outside of escrow are common. But be aware that this can be a complicating factor when combined with other flags of forgery. In fact, requiring documents to be signed in the title or escrow company’s office is often a way to verify the validity of signatures, such as when there is an uninsured deed in the chain of title. 7. Absentee owner. Naturally, sales by out of state or out of country sellers are common. But forgers prefer property where the owner is nowhere around, so be aware that this can be a complicating factor when combined with other flags of forgery. 8. MOST IMPORTANT: Your suspicions are aroused even if none of the flags described above apply. Don’t hesitate to consult your Investors Title Representative any day, any time.

Information deemed reliable, but accuracy is not guaranteed.

Page 25: Escrow Flyers

1. PAYMENTS MISSED. Usually after the third missed payment the lender will initiate a foreclosure. This is done by issuing a Declaration of Default and Demand for Sale which is passed onto the foreclosure trustee.

2. DEPOSIT DEED OF TRUST AND NOTE WITH TRUSTEE: The lender (beneficiary) deposits the deed of trust and note with a foreclo-sure trustee. If there has been an assignment of the deed of trust, this assignment must also be deposited.

3. THE TRUSTEE MUST EXAMINE THE DOCUMENTS for any special provisions other than those provided by law.

4. THE TRUSTEE PREPARES THE NOTICE OF DEFAULT, which must set forth specifically the nature of the breach by the homeowner. Example: “Failure to pay the January 2005 and subsequent payments.”

5. THE NOTICE OF DEFAULT must be executed (signed) by either thetrustee or the beneficiary.

6. THE TRUSTEE WILL CAUSE THE NOTICE TO BE RECORDED in the county where the property is located. The notice does not have to be notarized.

7. THE TRUSTEE OBTAINS A TRUSTEES SALE GUARANTEE (TSG). This informs the trustee of all persons who have filed a request for notices of default and sale, all other persons legally entitled to notice by mail, whether the owner of any interest is either bankrupt or in receiv-ership, and whether there are any subordinate Federal Tax Liens.

8. 10 DAY NOTICE BY MAIL is made by certified or registered mail, return receipt requested, to all parties specified in the Trustees Sale Guarantee.9. SERVICE OF PUBLICATION. If the Deed of Trust does not have suf-ficient information to mail the Notice of Default to the trustor, then it must be accomplished by hand delivery or published in a newspaper of gen-eral circulation in the county where the property is located. If published, it must be published once a week for four weeks, commencing no later than ten (10) days from the date when the Notice was recorded.

10. REINSTATEMENT WAITING PERIOD. The beneficiary must wait three (3) months from the recording of the notice of default before he proceeds any further. During this time, the trustor may reinstate the mortgage by catching up the back payments plus the costs already incurred in the foreclosure proceedings. When foreclosure proceedings are stopped by the reinstatement, a Rescission of Notice of Default is recorded by the trustee to clear the record of the notice of default.

11. FINAL CHECK BEFORE NOTICE OF SALE IS ISSUED. After three (3) months have elapsed, the trustee contacts the beneficiary to confirm that the default continues and has not been waived or impaired.

12. PUBLICATION OF THE NOTICE OF SALE. The trustee prepares and publishes a notice of sale in a newspaper of general circulation in the county where the property is located.

13. NOTICE OF SALE POSTED. The notice must be posted in aconspicuous place both on the property and in at least one public place in the city where the property is to be sold. The trustee should then prepare and have executed an affidavit of posting.

Understanding California Foreclosure

California has a non-judicial system to carry out a foreclosure of a deed of trust. No court procedure is required for a lender to sell the property to satisfy the debt. The judicial process is available, but rarely used. The following are steps that outline what is involved in a non-judicial foreclosure:

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14. MAILING THE NOTICE OF SALE. The trustee should mail, by certified or registered mail copies, the notice of sale to all those entitled to receive both the ten day and the one month mailings. Corder at least fourteen days prior to the date of the sale.

15. RECORD THE NOTICE OF SALE. The trustee must record the notice with the county recorder at least fourteen days prior to the date of the sale.

16. TRUSTEE’S SALE: The Trustee’s sale is an auction.

• The trustee reads aloud the complete notice of sale.• Announces the amount of the opening bid (usually the value of the un paid principal and interest on the trust deed being foreclosed, along with any advances and trustee’s fees paid).• The amount of the opening bid is dictated by the Beneficiary.• If there are bids over the opening bid, the successful bidder must pay “at the drop of the hammer”, either in cash, money order, certified check, or cashier’s check.• The trustee does not guarantee title nor express an opinion as to the condition of title.

17. PREPARATION OF TRUSTEE’S DEED. This deed may be deliv-ered to the highest bidder at the close of the sale and the payment of the bid price, or the trustee may record it as a courtesy.

18. ENDORSEMENT OF NOTE. The trustee must place on the face of the note the amount of the indebtedness and the amount for which the property was sold.

19. DISBURSEMENT OF SALE PROCEEDS. Should the property sell for more than the amount of the fees, and principal and interest owed, the proceeds of the sale shall be paid first to any junior lien holders, and when satisfied, to the trustor or current owner of record. In the State of California the sale cuts off all rights of redemption. The purchaser has right to immediate possession. After the required three (3) day notice,

the new owner may evict any person remaining on the premises by unlawful detainee procedures. The purchaser receives all fixtures and improvements, whether installed before or after the commencement of foreclosure.

**The foregoing is provided for general information only. For spe-cific questions on financial, tax or estate planning, we suggest you contact an Attorney or Certified public Accountant.**

Understanding California Foreclosure

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Ways to Hold Title

to Real Property

CommunityProperty

CommunityProperty with

Right ofSurvivorship

Joint TenancyTenancy

in Common Partnership Trust

Parties

Divisionof

Interests

Title

Possession

Conveyance

Death

Successor’sStatus

Creditor’sRights

Husband and wifeor domesticpartners.

Husband and wifeor domesticpartners.

Any number ofpersons (can behusband and wifeor domestic partners).

Any number ofpersons.

Any number ofpersons.

Any number ofbeneficiaries ofthe trust.

Equal. Equal. Equal. Any number ofinterests, equal ofunequal.

Partnership interests may be equal orunequal.

Beneficial interestsunder trust may beequal or unequal.

In the names ofthe individualowners.

In the names ofthe individualowners.

In the names ofthe individualowners.

In the names of the individualowners.

In the name of the partnership

In the name of the trustee, “as trustee.”

Equal right ofpossession.

Equal right ofpossession.

Equal right ofpossession.

Equal right ofpossession.

According topartnershipagreement.

According totrust agreement.

Both spousesmust join in aconveyance.

Both spousesmust join in aconveyance

Conveyance byone co-ownerbreaks the jointtenancy.

Each co-owner’sinterest may beconveyed separately.

Any generalpartnerauthorized by the partnershipagreement mayconvey.

Trustee mayconvey in accordance with the trust agreement.

Decedent’s Spouse1/2 interest passesto decedent’s estate.

Decedent’s 1/2interest passes tosurvivor.

Decedent’s interestpasses to the survivor(s).

Decedent’s interestpasses to thedecedent’s estate.

Partnershipagreement provides for eithertermination orcontinuance of thepartnership.

Trust agreementusually provides fordistribution upondeath of the settlor.

Tenancy in common betweendevisee and survivor results.

Survivor ownsentire interest.

Last survivor ownsentire interest.

Devisees or heirsbecome tenantsin common.

Heirs or deviseehave rights inpartnershipinterest but not inspecific property.

Trust agreementusually provides fordistribution upondeath of the settlor.

Community propertyis liable for the debtsof either spouse incurred before or during marriage ordomestic partnership.

Community propertyis liable for the debtsof either spouse incurred before or during marriage ordomestic partnership.

Co-owner’s interestmay be sold at an execution sale tosatisfy the co-owner’sjudgement creditor.

Co-owner’s interestmay be sold at anexecution sale to satisfy the co-owner’sjudgement creditor.

Only a partner’s right to receiveprofits can be executed upon bythe partner’s judgement creditor.

Usually, a creditorcannot execute on a beneficiary’s interest.

** The foregoing is provided for general information only. For specific Questions on Financial, Tax or estate planning, we suggestyou contact an Attorney or Certified Public Accountant**

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What is Escrow?

What is Escrow? If you’re like many Americans who are in the process of buying or selling a home, you may ask yourself; what is Escrow and why do I need it? Well, it’s simple… The Escrow process benefits all parties involved in a real estate transaction. Funds and docu-ments are placed in escrow and distributed upon satisfaction of the requirements and the conditions of the transaction. These require-ments are mutually agreed upon by both parties involved in the transaction. Escrow acts as a neutral third party to the transaction holding the funds and documents until the requirements of all par-ties are met.

How it Works Funds you deposit into an escrow account, are held in a non-interest bearing trust account by a neutral third party (called an escrow agent). The escrow agent’s role is to carry out the instruc-tions agreed upon by both parties. The escrow officer will process the escrow, in accordance with the escrow instructions. When all conditions required in the escrow are met or achieved, the escrow can be "closed". Each escrow (although following a similar pattern)will be different in some respects, as it deals with your property and the transaction at hand. Escrow can be involved in anything from residential re-sales, commercial sales, business sales and refinanc-ing to multimillion-dollar building projects and purchases made on online auctions sites.

Escrow Process:1. Order a title report on the subject property.

2. Work with the buyer's lender to insure the requirements are met.

3. Prepare many of the documents necessary for the transaction.

4. Figure tax and interest prorates and prepare closing instructions.

5. Arrange closing appointments for all parties.

6. Check all documents for completeness, compliance and accuracy.

7. Process the requirements of the lender for closing.

8. Authorize the recording of all necessary documents.

9. Disburse funds upon closing as instructed.

10. Prepare and distribute final closing statements to all parties.

Information deemed reliable but not guaranteed.

Page 29: Escrow Flyers

California has a non-judicial system to carry out a foreclosure of a deed oftrust. No court procedure is required for a lender to sell the property to satisfy the debt. The judicial process is available, but rarely used. The following are steps that outline what is involved in a non-judicial foreclosure:

1. PAYMENTS MISSED. Usually after the third missed payment the lenderwill initiate a foreclosure. This is done by issuing a Declaration of Defaultand Demand for Sale which is passed onto the foreclosure trustee.

2. DEPOSIT DEED OF TRUST AND NOTE WITH TRUSTEE: The lender(beneficiary) deposits the deed of trust and note with a foreclosure trustee.If there has been an assignment of the deed of trust, this assignment mustalso be deposited.

3. THE TRUSTEE MUST EXAMINE THE DOCUMENTS for any special pro-visions other than those provided by law.

4. THE TRUSTEE PREPARES THE NOTICE OF DEFAULT, which must setforth specifically the nature of the breach by the homeowner. Example:“Failure to pay the January 2005 and subsequent payments.”

5. THE NOTICE OF DEFAULT must be executed (signed) by either thetrustee or the beneficiary.

6. THE TRUSTEE WILL CAUSE THE NOTICE TO BE RECORDED in thecounty where the property is located. The notice does not have to be notarized.

7. THE TRUSTEE OBTAINS A TRUSTEES SALE GUARANTEE (TSG).This informs the trustee of all persons who have filed a request for notices ofdefault and sale, all other persons legally entitled to notice by mail, whetherthe owner of any interest is either bankrupt or in receivership, and whetherthere are any subordinate Federal Tax Liens.

8. 10 DAY NOTICE BY MAIL is made by certified or registered mail, returnreceipt requested, to all parties specified in the Trustees Sale Guarantee.

9. SERVICE OF PUBLICATION. If the Deed of Trust does not have sufficientinformation to mail the Notice of Default to the trustor, then it must beaccomplished by hand delivery or published in a newspaper of general circulation in the county where the property is located. If published, it mustbe published once a week for four weeks, commencing no later than ten (10)days from the date when the Notice was recorded.

10. REINSTATEMENT WAITING PERIOD. The beneficiary must wait three(3) months from the recording of the notice of default before he proceeds anyfurther. During this time, the trustor may reinstate the mortgage by catchingup the back payments plus the costs already incurred in the foreclosure pro-ceedings. When foreclosure proceedings are stopped by the reinstatement,a Rescission of Notice of Default is recorded by the trustee to clear the recordof the notice of default.

11. FINAL CHECK BEFORE NOTICE OF SALE IS ISSUED. After three (3)months have elapsed, the trustee contacts the beneficiary to confirm that thedefault continues and has not been waived or impaired.

12. PUBLICATION OF THE NOTICE OF SALE. The trustee prepares andpublishes a notice of sale in a newspaper of general circulation in the county where the property is located.

13. NOTICE OF SALE POSTED. The notice must be posted in a conspicuous place both on the property and in at least one public place in thecity where the property is to be sold. The trustee should then prepare andhave executed an affidavit of posting.

14. MAILING THE NOTICE OF SALE. The trustee should mail, by certifiedor registered mail copies, the notice of sale to all those entitled to receiveboth the ten day and the one month mailings.

15. RECORD THE NOTICE OF SALE. The trustee must record the noticewith the county recorder at least fourteen days prior to the date of the sale.

16. TRUSTEE’S SALE: The Trustee’s sale is an auction. • The trustee reads aloud the complete notice of sale.• Announces the amount of the opening bid (usually the value of the unpaid

principal and interest on the trust deed being foreclosed, along with any advances and trustee’s fees paid).

• The amount of the opening bid is dictated by the Beneficiary.• If there are bids over the opening bid, the successful bidder must pay “at

the drop of the hammer”, either in cash, money order, certified check, or cashier’s check.

• The trustee does not guarantee title nor express an opinion as to thecondition of title.

17. PREPARATION OF TRUSTEE’S DEED. This deed may be delivered tothe highest bidder at the close of the sale and the payment of the bid price,or the trustee may record it as a courtesy.

18. ENDORSEMENT OF NOTE. The trustee must place on the face of thenote the amount of the indebtedness and the amount for which the propertywas sold.

19. DISBURSEMENT OF SALE PROCEEDS. Should the property sell formore than the amount of the fees, and principal and interest owed, the proceeds of the sale shall be paid first to any junior lien holders, and when satisfied, to the trustor or current owner of record.

In the State of California the sale cuts off all rights of redemption. The purchaser has right to immediate possession. After the required three (3)day notice, the new owner may evict any person remaining on the premisesby unlawful detainer procedures. The purchaser receives all fixtures andimprovements, whether installed before or after the commencement of foreclosure.

CALIFORNIAFORECLOSUREUnderstanding

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LOAN ORIGINATION FEEThis fee covers the lender’s administrative costs in processing the loan. A one-time fee often expressed as a percentage of the loan.

LOAN DISCOUNTOften called “points”, a loan discount is a one-time charge used to adjust theyield on the loan to what market conditions demand. One point is equal to 1%of the loan amount.

APPRAISAL FEEThis is a one-time fee that pays for an appraisal – a statement of property valuefor the lender. The appraisal is made by an independent fee appraiser. The average cost for a single family home appraisal is $400.

CREDIT REPORT FEEThis one-time fee covers the cost of the credit report that is run by an independent credit reporting agency. Usually, the cost for credit reporting is$25.00.

TITLE INSURANCE FEESThere are two title policies. 1. A lender’s title policy, which protects the lenderagainst loss due to defects on title. 2. A buyer’s title policy which protects you,the buyer. Both are a one-time fee.

MISCELLANEOUS TITLE CHARGESThe title company may charge fees for a title search, title examination, documentpreparation, notary fees, recording fees, and a settlement or closing fee. These area one-time fee.

DOCUMENTATION PREPARATION FEEThere may be a separate, one-time fee that covers preparation of the final legalpapers, including the note and deed of trust.

PREPAID INTERESTDepending on the time of month your loan closes, this charge may vary from afull month’s interest to just a few days. If your loan closes at the beginning of themonth, you will probably have to pay the maximum amount. If your loan closes at the end of the month, you will only have to pay a few days interest.

PMI PREMIUMIn most cases, if your down payment is less than 20% of the purchase price, youwill be required to pay an up front fee for mortgage insurance (which protects thelender against loss due to foreclosure). You may also be required to put a certainamount for PMI into a special reserve account (an impound account) held by thelender.

TAXES AND HAZARD INSURANCEDepending on the month that you close, you may be required to reimburse theseller for property taxes. You will also need to pay an entire year’s hazard insurance premium up front. In addition, you may be required to put a certainamount for taxes and insurance into a special reserve (an impound account)account held by the lender.

losing CostsC

Proven Experience. Outstanding Service.

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CLTA vs. ALTA TITLE COVERAGE

There are generally two types of title insurance policies used. CLTA (California Land Title Association) is insuring against loss including attorney fees (up to the purchase price for as long as he owns the property) due toall matters of record, fraud and forgery, and it assures that title is being vested in the person shown on the policy.

The ALTA (American Land Title Association) policy covers the same items as the CLTA policy as well as many additional risks such as unrecorded mechanic's liens, assessments, encumbrances, encroachments, easements,water rights, mining claims, patent reservations, conflicts of boundary lines, shortages in area access to and fromthe land and other visible matter, as the title company actually performs a physical inspection before it issues anALTA policy.

Institutional lenders demand an ALTA policy as it insures the lender against loss for the entire length of the loan andthe un-enforceability or invalidity of the note and deed of trust.

COVERAGEThe ALTA loan policy insures the lender against loss or damage up the policy limit, plus costs and attorneys. Fees incurred under the policy that are caused by (1) title being vested in a person other than the oneshown in the policy, (2) title defects, (3) liens and encumbrances, (4) lack of a right of access to the land, (5) marketability of title, (6) prior mechanics' liens, and 9&0 street improvement assessment liens. In addition, the policy insures the priority and validity of the lender's lien on the property, except to the extent that the insuredencumbrance is invalid or unenforceable due to usury, the effect of any consumer credit protection, or truth in-lending laws.

In addition, policy coverage is extended to the following matters that are ordinarily excluded from the CLTA standard coverage policy: off-record defects, liens, encumbrances, easements, and encroachments; rights of parties in possession or rights discoverable by inquiry of parties in possession and not shown on the public records;water rights, mining claims, and patent reservations; and discrepancies or conflicts in boundary lines and shortagesin areas that are not reflected in the public records.

EXCEPTIONS TO COVERAGEThe primary difference between the ALTA loan policy and the CLTA Standard Coverage Policy is the omission of the standard exceptions contained in Schedule B, Part I of the CLTA policy. No standard exceptions areset out in the ALTA loan policy. Instead, the title insurer will list specific matters that constitute exceptions to thecoverage if the lender's lien.Matters that constitute defects, liens, or encumbrances on the title and that would be subordinate to the insured lienare set forth in Schedule B, Part II of the ALTA loan policy. In most cases, such matters would be listed in the preliminary title report issued by the insurer before closing of the transaction and issuance of the policy and thelender would require them to be deleted from the policy.

Excerpts from "California Title Insurance Practice" by John L. Hosack:

CLTA vs.ALTA

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GRANTDEED

DEED of TRUST

QUITCLAIMDEED

GENERAL WARRANTYDEED

An official document that is used to transfer a property’s ownershipA grant deed is the most common type of deed used to transfer property from

a seller to buyer. Grant deeds are used both for mortgaged and non-mortgagedproperties. Upon closing of the property’s purchase/sale, the title companyrecords the grant deed at the county recorder’s office and sends the buyer the orig-inal in the mail. In order to use a grant deed, the property must be clear of anyclaims.

A document that gives a lender the right to sell your property if you cannot repay your loan.A deed of trust is similar to a mortgage contract except that a deed of trust involves a third party called atrustee, usually a title insurance company, who acts on behalf of the lender. When you sign a deed of trust, youare in effect giving the trustee title (ownership) of the property, but holding on to the right to use and live in it. Thelender or trustee holds the original deed of trust until you repay the loan on your home. Unlike mortgage, a deedof trust also give the lender the right to foreclose on your property without taking you to court first.

A document that can be used to both transfer ownership of property and to release a person’s claim on a property.Out of all the deeds used to exchange ownership of a home, quitclaim deeds are used the least since they do notgive buyers a firm assurance that the seller is the home’s legal owner. Quitclaim deeds are usually used to clearup a variety of simple ownership (title) issues. For example, Mr. and Mrs. Jones buy a home together, but 10 yearslater, Mrs. Jones wants to separate and wants nothing to do with the property. She simply signs a quitclaim deed to release her claim on the property.

A “general” warranty deed is a promise by a seller that he orshe owns the property being sold, that the title is good, marketable, and insurable, and that there are no liens on theproperty except as agreed.

DEEDS

DEEDS

P r o v e n E x p e r i e n c e . O u t s t a n d i n g S e r v i c e .

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Life of a Refi EscrowOpen Order RequestSubmitted to Escrow

Escrow Opens Title Order

Order Payoffs / Evidence of Insurance

Work with Lender / Processor toinsure the requirements are met

Prepare documents necessary for thetransaction and arrange signing appointment

Check all documents for completeness, compliance, accuracy and return documents

to Lender

Process Funding Requirementsfrom Lender

Authorize recording of recordable documents

Disburse funds per Lender approved HUD

Submit final HUD to Lender

Information deemed reliable, but accuracy is not guaranteed.

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ABSTRACT OF TITLE

BINDER

CHAIN OF TITLE

MECHANICS LIEN

QUIET TITLE PROCEEDING

QUIT CLAIM DEED

A compilation of recorded documents relating to a parcel of land. Also known as a“Preliminary Title Report.”

The chronological order of conveyancing a parcel of land from the original owner to thepresent owner.

A report issued by a title insurance company setting forth the condition of title and settingforth conditions, which, if satisfied, will cause apolicy of title insurance to be issued. Also knownas a “Title Commitment.”

ENCUMBRANCE

A claim, lien or charge against real property.

JOINT TENANCY

An undivided interest in property, taken by two ormore joint tenants. The interest must equal,accruing under the same conveyance, andbeginning at the same time. Upon death of ajoint tenant, the interest passes to the survivingjoint tenants, rather than to the heirs of thedeceased.

GRANT DEED

A deed used to convey title. By law, a grantdeed gives certain warranties of title.

LIENAn encumbrance against property for money,either voluntary (i.e. mortgage), involuntary (i.e. judgment), or by operation of law (i.e. property tax lien).

A lien created by state law for the purpose ofsecuring priority of payment for the value ofwork performed and materials furnished in construction or repair of improvements toland, and which attached to the land as well asthe improvements.

A court action to establish or clear up uncertainty as to ownership to real property.Often required if a lien or cloud appears ontitle that cannot be resolved.

A deed by which the grantor gives up anyclaim he may have in the property.

TITLE TERMS