Friday, 31 October 2008
C.A.R.'s Legal Department has published a new legal article for REALTORS® entitled Foreclosure Scams and the Foreclosure Consultant Law. With the high number of foreclosures lately, foreclosure-related scams have exploded onto the real estate scene. Many scams are aimed at homeowners in foreclosure, but other scams target real estate agents, investors, buyers, tenants, and other people involved in the foreclosure process.
Thursday, 30 October 2008
When the Assessor revalues/reassesses real property, as it is required to do on a change in ownership (or when new construction is completed), it does so at its market value on the date of a change in ownership (or completion of construction). In many if not most cases, the sales price will be accepted by the Assessor as the market value, but this is not always the case. In the current market, the Assessor may revalue the property for tax purposes at an amount that exceeds the purchase price, meaning that buyers may, unless they apply for a reduced assessment, be paying property tax based on the higher value. As there are currently no specific warnings in the CAR Statewide Buyer and Seller Advisory about this, NorBAR is working on language to be included in the NorBAR Disclosure Advisory. In the meantime, agents should discuss this with their brokers, and brokers should discuss with their legal counsel, whether and in what manner buyers should be made aware of this potential reassessment valuation issue, and that if a buyer disagrees with the Assessor's revaluation, the buyer should contact the local Assessor or Tax Collector's office to get information about appealing or applying for a reduced assessment.