Capital Gains Tax and Health Reform Act
I. IntroductionThe Taxpayer Relief Act of 1997 (the “1997 Act”) and the IRS Restructuring and Reform Act of 1998 (the “1998 Act”) provide for an exclusion from income for certain amounts of gain from the sale of a principal residence. The Mortgage Forgiveness Debt Relief Act of 2007 (the “2007 Act”) provides clarification regarding certain capital gains issues as well.The ...
Property Tax Exemptions from Reassessment
I. Introduction Ordinarily, when the ownership of California real property changes, the property is reassessed at its current fair market value and the new owner pays property tax based on the reassessed value. However, the law provides certain exemptions from reassessment and, in certain instances, allows a taxpayer to transfer the base-year value of the property to a subsequent property ...
Water-Conserving Plumbing Fixtures
Introduction California law requires property owners (for properties built before 1994) to install water-conserving plumbing fixtures by 2017 for single-family properties and by 2019 for other properties ). Additionally, if a property is altered or improved after 2014, then water-conserving plumbing fixtures must be installed as a condition of final permit approval. (Cal. Civ. Code section 1101.4) In 2012 the ...
Small Claims Court
INTRODUCTION Small claims court provides a way for persons to resolve disputes within its jurisdiction without the cost and time that regular court proceedings normally entail. Attorneys may not represent plaintiffs or defendants in small claims court which reduces costs as there are no attorney fees. Also the proceedings are typically more informal allowing persons to represent themselves without having ...
Mediation for the Consumer
Introduction In recent years, our society has seen a dramatic increase in litigation. Turning to the courts to resolve disputes seems to be an almost instinctive reaction these days. However, the sobering reality is that lawsuits can be financially and emotionally draining for the participants, and can even impact our economy over the long-run. While buyers and sellers of real ...
Homestead
I. Introduction The primary purpose of the California’s homestead law is to protect a person or family’s residence from certain types of creditors. It allows debtors and their families to remain in the home in some situations even when a sale of the home could pay off the creditors. Generally, a homestead is protected from forced sale by certain creditors, ...
Deficiency Judgment Chart After Foreclosure
This legal chart is intended to provide a quick and easy guide to determine when a borrower may be liable for a deficiency judgment after foreclosure. There are other factors and conditions which may change the result such as fraud by the borrower and bad faith waste. For information on deficienciesafter a short sale, please see our “Short Sale Deficiencies ...
California Homeowner Bill of Rights
All eyes in the nation now turn to California as Governor Jerry Brown signed into law today the Homeowner Bill of Rights to help struggling Californians keep their homes. This law aims to avoid foreclosure where possible to help stabilize California’s housing market and prevent the other negative effects of foreclosures on families, communities, and the economy. The new law ...
Taxation of Foreclosures and Short Sales
Introduction This legal article discusses the income tax consequences to the borrower in the event of a foreclosure on the borrower’s property, in the event the borrower transfers title to the lender as part of an agreement with the lender (deed-in-lieu of foreclosure), and if the borrower sells the property to another in a short sale in which a lender ...
Short Sale Fraud
I. GENERAL OVERVIEW Just as REALTORS® struggled with loan fraud during the subprime heyday, they now face the rampant growth of short sale fraud in the subprime aftermath. Short sale fraud comes in many shapes and sizes to wreak havoc on the unsuspecting sellers, buyers, and agents, often at the most inopportune time. This legal article provides legal and practical ...