Views of La Jolla » Real Estate News

Does Your Property Have Mellos Roos? The Tax Deductions Are Changing!

Michelle Silverman — Wed, 11 Jan 2012 04:16:09 +0000

If you are a California homeowner and your property has a Mellos Roos Assessment on it, you might not be happy with this news.

Beginning with the 2012 tax bill (the one due in April 2013), the state Franchise Tax Board will require property owners to break down their property taxes into deductible and non-deductible portions.

That means property owners who have been deducting their Mello-Roos fees — often running into thousands of dollars — will no longer be able to deduct those or any other special assessments like vector control or mosquito abatement.

(According to the Orange County Register)

California property-tax payers who have been taking the entire amount they pay off their state income taxes could see a major cut in their deductions when they file next year. For a full explanation of how the new deductible rules will work check this website.

The Mello-Roos fees, which pay for roads, schools, fire stations and other public facilities in new developments, have not been deductible from state income taxes since the legislature authorized the special assessments 30 years ago.

(Since I am not an attorney or CPA, I advise you to consult one to verify the new rule)

Who Pays What? A Guide to Closing Costs!

Michelle Silverman — Tue, 06 Dec 2011 00:12:01 +0000

As a La Jolla Realtor one of the biggest questions I get asked from either my Sellers or my Buyers is: Who pays what in a transaction? In California once a home is under contract we have third party Company called Escrow that facilitates the transaction. The true definition of escrow is:

Escrow is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of a particular condition or event. The California Escrow Law: Section 17003 of the Financial Code

It is in escrow where the Sellers and the Buyers pay their closing costs fees. Once the escrow officer process the escrow, in accordance with the escrow instructions, and when all conditions required in the escrow can be met or achieved, the escrow will be “closed.” Only until escrow is notified that the new grant deed has been recorded in the Buyer’s name is the sale official, and the Buyers get their keys to their new La Jolla home.

Here is a guide from California Title that shows who pays what?

If you are thinking of buying or selling and want to work with a seasoned Realtor give me a call 619-980-2738 or visit my website! I’m here to help!

San Diego County Recorder is Allowing Special Recordings Again!

Michelle Silverman — Sat, 03 Dec 2011 00:41:34 +0000

Effective December 1, 2011 the County of San Diego Recorder’s office has re-instituted Special Recordings for SALE transactions only!

Your La Jolla home escrows can now close in a timelier manner by allowing you to fund the loan and record all on the same day!