Category: Renting and Tenant Rights

Protecting your property entails investing in a credit-worthy tenant who has a history of paying bills. By thoroughly investigating the renter, you may make an educated guess on whether he pays his bills on time, earns sufficient income and respects other people’s premises. Most of this info you can purchase from a tenant screening services. Other information can be found by phoning his references and employer.

Rental Program

Design a rental program for your prospective renters to gather very specific info. You want information on income, employment and personal references. Be sure to attach a release of information form to this lease program. You need written permission to pull credit reports, contact references and speak with the tenant’s employer. You may also charge a lease program fee to cover the expense of pulling the tenant screening report or the credit report.

Income Verification

Do not take the tenant’s word for it. Ask copies of pay stubs, W-2 forms or even a tax return to verify income levels. It is not hard to exaggerate income on a rental program. Make sure the tenant’s income is at least three times your requested monthly lease. With sufficient income, you increase your odds to get paid in time.

Credit History

With written permission, you may pull the tenant’s credit report. Check for temporary entries, judgments and set entries. Negative information on a credit report is indicative of somebody who’s in a financial hardship or does not pay invoices on time. Make particular note of 90-day or even 120-day late payments. A person with a couple of 30-day late payments may have a valid reason for those entries. Request the renter for the reason behind the late payments. If you choose to refuse an applicant based on his credit history, you must offer an Adverse Action Notice stating the reason for the denial, the credit reporting bureau utilized and its contact info.

References

Ask for personal references. You may choose to exclude family members as an individual reference disqualifier for a relative may not give an unbiased review of this applicant. Also, request contact info for the last two landlords. Request the landlords concerning the tenant’s repayment habits, whether he got together with neighbors, state of the unit upon vacancy and when he abided by the lease.

Employment Verification

Contact the tenant’s employer to verify employment. Do not call the telephone number given by the applicant. Some renters give out bogus numbers and also ask a friend to pretend to be his employer. Look up the provider’s contact info and request the personnel department. Ask the employer to verify employment and provide the duration of employment. Some employers may refuse to give out any personal information. Supply a copy of the written release from fax to confirm you’ve got permission to obtain this info.

Background

Run a background check on the applicant. Look for public records like evictions and criminal records. Tenant screening services offer you this info as part of this bundle. You wish to ensure your prospective tenant does not have a criminal record if you are going to be residing with the person in close proximity.

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Purchasing real estate via tax deed sales could be rewarding for investors and anyone expecting to buy a house at a reduction. Tax deed sales, however, require a number of steps before an individual may maintain full ownership of a property. A tax deed buy provides the buyer title to the property, but it is not always a clear title. Oftentimes, properties which are available through tax deed sales are also influenced by other liens, including mortgage holders. To obtain clear title, the buyer must complete a step-by-step process which addresses these claims on the property.

Read the records provided during this title’s shipping after purchase. These records may list some exemptions to the property, but they are not required to list all of claims on the property.

Hire a lawyer or a title company to conduct a title search on the property.

Wait until the close of the period of time for challenges in the event the title search decides that there are claims by other parties around the property. Parties with potential claims on the property are permitted only a certain quantity of time to challenge your right to the property. In California, parties have one year to challenge the sale. A challenge is set through a court proceeding, and parties are restricted concerning the grounds upon which they may base a challenge.

Use a lawyer to file a quiet title claim with the county court in the county where the property is situated. Individuals can file quiet title themselvesbut it’s suggested by many to use a lawyer.

Pay any necessary quiet title-filing fees to the county court clerk. The first filing fee in California is roughly $300, according to the law firm Kinsey Law.

Prove in court your right to a superior claim to the property. Other parties with a claim on the property might not contest your quiet title claim if they don’t believe that they have a claim that is exceptional to your claim, and a tax deed buy provides a good ground for receiving clear title. If the court rules in your favor, then you have clear title to the property.

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But ownerships, or other tenancies, exist when two or more people share ownership in property, they may elect to do this as tenants in common. The type of tenancy that co-owners decide to use is dependent upon their relationship with each other as well as how they need their possession shares to be distributed upon their departure.

What Is Tenancy In Common

Tenants in common have a neighborhood possession of real property where they have shares. Those shares don’t necessarily need to be equivalent, although every one of the co-owners has got access to the full property. The owners are listed in the deed as”tenants in common” with rights in the present as well as later on.

Difference Between Tenancy in Common and Joint Tenancy

Joint tenancy, such as property in common, is a favorite co-ownership of real property that’s recording on the deed. Unlike tenants in common joint tenants own equal shares in the house with the right of survivorship. Tenants in common are absolutely free to make decisions concerning the disposition of their house shares, whereas tenants need to agree on these issues as a group.

Rights & Obligations With Tenancy in Common

All Tenants in common have an equal right of access into the home, regardless of their possession amount. Co-owners you have a right to a proportion of that income if the property produces an income. They are responsible to their fractional share of the costs, including insurance, property taxes and the mortgage.

Tenancy In Common Estate Concerns

Unlike joint tenants, tenants in common do not receive possession of a deceased co-owner’s shares. The stocks move to a individual who’s named in the will of the deceased. When a will doesn’t exist, the property rights of the deceased have been passed into another individual or into a blood relative by a probate court.

Ending a Tenancy in Common

When a owner buys from the rest owners A tenancy in common ends. It can also be completed using a”partition suit” when disagreement between the co-owners concerning the future of the house prevents a last decision from being made. If one co-owner desires the property sold, state, following another co-owner’s passing, however, a third co-owner doesn’t need to do so, then a court could possibly be the last decision maker in that stalemate situation.

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In the United States, there are two types of foreclosures–judicial and non-judicial. In judicial foreclosure, a lender files a civil lawsuit against the debtor, and the entire procedure is handled in court. Judicial foreclosure is lawfully available in all states. But many states, including California, allow lenders to handle the foreclosure procedure non-judicially. Lenders include a”power of sale” clause in the mortgage or deed of trust which states that borrowers acknowledge that should they go into default, the lender has the ability to begin the foreclosure process outside of court. In California, judicial foreclosures are rare; most creditors use the non-judicial method.

Notice of Default

In California, as soon as you default on a mortgage payment and have been delinquent for 15 weeks, your lender has the legal right to begin the foreclosure procedure. Step one your lender or third party trustee takes is to file a Notice of Default with your county recorder’s office. The Notice of Default allows you, the public and any junior lien holders to be informed of the default. You own a reinstatement period of 90 days from the filing of this Notice of Default to make your loan current, or the foreclosure procedure continues.

Notice of Trustee Sale

In case you have not made your loan current within the 3 months of the Notice of Default being registered, the trustee elicits a Notice of Trustee Sale (NOS), stating the date, time and location in which the auction of your residence will take place. By California law, the trustee must do all of the following together with the NOS at least 20 days prior to the auction sale: mail a copy to you by certified mail with a return receipt requested; mail copies to all other interested parties; publish the NOS in the regional newspaper; article the NOS in your home (front entrance or gate); and post the NOS in at least one public place near where your house is situated. Additionally, the NOS has to be submitted at your county recorder’s office at least 14 days prior to the sale.

Auction

If after 21 days of this recording of the NOS you have not made your home loan current, the trustee may sell your home on behalf of the lender by auctioning it off to the highest bidder. In the auction, one of four things could happen: (1) The auction is canceled because you’ve brought the loan current or was able to refinance it; the trustee made a mistake; or you sold or property before the auction . (2) The auction is postponed by you, the lender or the trustee. If you file bankruptcy, then this may also delay the procedure. (3) A third party individual or business purchases your home (usually to get a bid greater than the lender ). (4) Your home is sold back to your lender because it makes a credit bid up to the amount it’s owed.

Trustee’s Deed

Your home is officially foreclosed after it’s offered at auction. The highest bidder (a third party or your lender) will receive ownership of your residence via a document called a Trustee’s Deed. This will lead to all junior lien holders to eliminate any secured interest they hold on your property, and you will lose the right to redeem your home. Furthermore, if you do not leave the house, typically within 72 hours, then the new owner may file an unlawful detainer lawsuit to get an eviction judgment in which a sheriff will physically remove you from the home. But if you’ve tenants living in your home, they are protected under President Obama’s Helping Families Save Their Homes Act. This law allows tenants to get at least 90 days or the rest of the rental after foreclosure to stay in the house till they have to move.

California Non-Judicial vs. Judicial Foreclosure Laws

In California non-judicial foreclosures the projected time period for the foreclosure procedure to be finished is about 111 days. Once a lender accomplishes a non-judicial foreclosure, it has the right to seek a deficiency judgment against you personally. (A deficiency judgment makes you legally responsible to pay the lender any gap between what the lender may sell your house to get and what you owe on your loan.) In California judicial foreclosures, the process is handled in court and does not necessarily occur in an expedited time period. Following the auction sale in juvenile foreclosures you’ve got the right to redeem your house within a single year, unless the lender makes a full credit bid; in this example, you will only have three months to redeem. In judicial foreclosures, the the lender is permitted to seek a deficiency judgment.

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A quitclaim deed can be employed to either release a claim of ownership or transfer ownership of land. It is most commonly used to release a claim of ownership in order to solve a dispute, like in a divorce case. When used to transfer ownership as part of a sale of their property, a quitclaim deed gives the buyer the least assurance under the law that he is getting good title to your property.

Function

A quitclaim deed is identifiable by the inclusion of the key term”quitclaims and releases” from the deed. The individual signing the deed–the grantor–is releasing whatever interest he has in the property to the grantee–the individual getting the quitclaim. The grantee is not necessarily getting any rights from the property, only a release from any claim from the grantor to your property.

No Warranties

Even though a quitclaim deed can be used to transfer ownership of land, it is the least effective means to do so. In a typical arms-length sale of land, a guarantee or grant deed is used to convey title to the property from the seller to the buyer. The purpose behind using these kinds of deeds is to provide the buyer with two major warranties from the seller: that the property hasn’t sold to another buyer, and that title to the land is free and clear of any liens or mortgages. These warranties obligate the seller to pay damages to the buyer if title to the property is not clear after the sale. A quitclaim deed doesn’t contain any warranties, and there’s no responsibility on the part of the seller to provide name.

Average Use

Because the principal function of a quitclaim deed would be to release a claim to land, a quitclaim deed is excellent for use when resolving a real estate dispute. For this reason, quitclaim deeds are typically used in disputes involving a”clouded” title. After the parties achieve a settlement of their dispute, the name can be eliminated using a quitclaim deed. This most often happens in intra-family disputes, especially in divorce cases.

Quitclaim Requirements

The complete requirements for a legal quitclaim deed will vary from state to statenonetheless, there are a number of basic requirements for all quitclaims. The deed must identify the grantor–the individual transferring the property possession –and the grantee–the individual getting the property ownership. A complete legal description for the property must be included, along with the property address. The deed should identify the county where the land is located and identify any consideration–that is, the cost or a statement that the land is a present. The deed must be signed by the grantor at the presence of a notary.

Misconceptions

A common misconception is that a grantor can quickly reverse a quitclaim deed once it’s been signed and delivered to the grantee. In fact, unless the grantee willingly agrees to quitclaim the land back into the grantor, reversing the impact of the deed will be difficult. As soon as you deliver a quitclaim deed, you have relinquished your rights to the property, and minus the grantee’s alliance in returning to you, the only way to reverse the deed is by a lawsuit. You will need to prove to a court which you signed and delivered the deed as the result of fraud, duress or undue influence upon the part of the grantee.

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In property, deeds are legal documents that transfer ownership of a property from 1 party to another. There are many distinct kinds of actions: land deeds, warranty deeds, grant actions, fiduciary deeds, present actions and quitclaim deeds. Each type of deed is used for a particular situation. Although present deeds and quitclaim deeds are intended for different purposes, there are specific instances where using either is possible but with very different tax consequences.

Quitclaim Deed

A quitclaim deed is a convenient, affordable way to transfer ownership of a co-owned property to merely one of those co-owners. It’s often utilized in divorce settlements when land is split between spouses. The co-owner who’s relinquishing rights to the land is known as the”grantor” and the co-owner who’s receiving sole ownership of this property is known as the”grantee.” The grantor may relinquish ownership rights for no compensation, or may be given a payment by the grantee. If a payment is received, it has to be noted on the deed and sales tax will be assessed to the grantor for the received payment. Quitclaim deeds must be signed by both co-owners and notarized prior to filing in the County Recorder’s Office in the county where the land is located.

Gift Deed

A present deed is a simple, notarized document that transfers ownership of a house to another person. While the house is usually exclusively possessed, that’s not always the situation. Gift deeds are often used between relatives and friends. The person gifting the house is known as the”donor,” and the person getting the property is known as the”recipient.” Gifts of land has to be reported by the recipient on the receiver’s federal income tax form. Gift deeds can be utilized only if there isn’t any payment or compensation provided to the donor in exchange for providing the property. The registering of a present deed by the donor has to be witnessed by two”disinterested” witnesses. This implies that if, for example, a mom is giving a property as a present to her daughter, neither the mother’s spouse nor the daughter’s spouse could act as witnesses. The deed must also be notarized.

Revocable Gift Deeds

A present deed becomes overvalued after it’s been supplied to the recipient. Occasionally a donor brings up a present deed as a consequence of prospective goal, but does not give it immediately to the recipient. In this case, the present deed is referred to as a”revocable gift deed,” since at any point the donor can decide not to present the land to the recipient.

Limitations Of Quitclaim Deeds

While quitclaim deeds move the ownership of a property from joint owners to one owner, they do not relieve the grantor from any debt or encumbrance on the property, such as mortgage payments or tax liens. Neither do quitclaim deeds move ownership of any possessions on the house’s assumptions.

Limitations Of Gift Deeds

Gift deeds only transfer ownership of their house from the donor to a recipient. In the event the property remains encumbered by, for example, a home equity loan or a construction lien, the donor retains financial responsibility for those debts. Furthermore, if sometime in the future the ownership of the house is contested in any way by an unforeseen claim upon it, it is not defined whether it is the donor’s or the receiver’s duty to settle the claim.

When to use a Quitclaim Deed or a Donation Deed

The purpose of a present deed is to permit a donor to freely give a solely owned property to someone else without any compensation in return. When quitclaim deeds are utilized to transport land, there may or might not be a charge card. If there’s absolutely no payment, then nothing regarding the house is reported on either party’s federal income tax forms. Though quitclaims are often utilized in divorce settlements, in case a married husband and wife jointly own a property and the husband wants to give his interest in the house to the wife with no settlement, he’s the option of filing a quitclaim deed or a present deed. If he uses the quitclaim route, then the wife does not need to report the land as a present.

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