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California Senate Approves New Fee On Real Estate Documents

ForeclosureOn Thursday, July 6, the California state Senate approved of a new fee on real estate documents. The $75 fee would be placed on real estate law documents such as notices and deeds and would come with a cap of $235 per transaction.

The legislation was created as a means of generating $200 to $300 million annually for affordable housing in California.

“When you use this money to build more housing, you generate more income tax, more jobs and it helps spur the economy,” said Senator Toni Atkins to the US News. “This will make a difference for middle income families.”

It will also make a difference for low income families as California’s rate of homelessness continues to be disproportionately high. Foreclosure in business property law has increased in California as middle income families struggle to find housing that is affordable what with residential zoning restrictions rendering houses out of their budget.

Zoning restrictions have been determined to take a large part in the foreclosure crisis. When too much housing is placed in the same high-price zone, homebuyers who are unable to move to another area are forced to purchase a home they cannot afford only to fall to foreclosure within a series of years.

Republican senators disagreed with Atkins regarding the real estate document fees and how they would help middle income families. “I want to solve that problem, but I can’t do it on the backs of the emerging people who have worked hard, trying to get their first house or move their family into a home that would accommodate their growing family,” said Senator Joel Anderson to the US News.

Many Republicans as well as some Democrats expressed concern over the regulations of housing construction in California, seeing the spending on subsidized housing as a better potential start to fixing the housing market rather than placing fees on real estate documents.

The legislation of the real estate document fee has been passed on to the Assembly where it will await for approval or denial. Whichever the decision, change is essential for the success of the housing market. In 2013, there was at least one foreclosure reported out of every 96 homes.

However, a foreclosure can be stopped before it starts. For assistance with during your foreclosure process, eviction process, or boundary dispute contact Dijulio Law Group for a consultation.

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Real Estate Law Terms Every Potential Homebuyer Should Know

real estate law termsThe real estate process can be difficult if you’re not familiar with real estate law terms and other housing terminology. This, in addition to wanting a greater sense of ease, is often why many potential homebuyers hire a real estate attorney while they’re on the hunt for their dream home.

However, while it is commendable to use the services of a real estate lawyer it may do you well to additionally familiarize yourself with real estate law terms as a means of feeling knowledgeable about your home-buying process.

In California, it takes approximately 40 days on average to close on a home, but learning these real estate law terms will take less than five minutes.

  • Adverse Possession — the possession of property of which another owner has title of possession. For instance, if a person erects a fence on another owner’s land and the owner of that land does not object over a series of years the person who erected the fence has the right to take the owner of the land to court as a means of arguing for the land on which they erected the fence, claiming that land to be theirs.
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  • Basis — a property owner’s financial interest regarding that property for their tax purposes.
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  • Closing — the end of a mortgage or sale of a real estate property passed down via a deed.
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  • Escrow — a series of time in which the delivery of the closing deed has been given to a third party to the grantee.
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  • Homeowner’s Association — an organization of people who own homes in a particular area as a means of improving the quality and maintaining the quality of that community.
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  • Market Analysis — an estimated report of the resale value of a given property. A real estate agent typically uses this to compare properties in a given area.
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  • Property Development — also known as real estate development. The design and building of a given property or series of properties.
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  • Personal Property Law — the law that determined one’s personal or movable possessions in the eyes of the law system.
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  • Zoning Restriction — the division of residential, industrial, and commercial districts by state or local government.

Understanding real estate law terms can be a great way to feel in-the-know when going through the real estate process speaking to your real estate attorney. Now that you know this basic real estate terminology, you can feel more comfortable during the search for your dream home!