Random thoughts on art, technology, stuff, and occasionally Real Estate: August 2009

Here's the same view as last night.  I can no longer see any flames, but the smoke is very thick.

I can see the San Gabriel Mountains from the upstairs window of my home; this was my vantage point yesterday evening as I witnessed the progress of the La Canada Flintridge fire.

This photo of a giant smoke cloud was taken at approximately 6:50PM PDT.

This photo was talken at approximately 7:30PM PDT.  The flames have now crossed the ridge.  (Note the shot is zoomed in closer - compare the size of the palm tree in the foreground.)

This photo was taken at approximately 7:50PM PDT, just an hour after the first photo:

Infomation on La Canada Flintridge here.

Map here

When:  Saturday August 29, 10:30AM

Where: Glassell Park Community Center, 3750 Verdugo Road, Glassell Park, 90065

On Saturday, August 29, 2009, the Glassell Park Improvement Association Land Use Committee is hosting an educational forum regarding the 710 Tunnel Feasibility Study.

Many members of our community may know of the 710 freeway was the one that goes to the Ports of Los Angeles and Long Beach. Or perhaps they know it as the one that ends just north of the 10 in Alhambra on the border with El Sereno. Maybe they even think of it as the stub of a freeway that drops south from the 210 /134 interchange in Pasadena.

Those that have been reading the GPIA newsletter lately will know that the 710 Tunnel Feasibility Study currently being conducted by Cal Trans could result in a tunnel portal opening in our community. The feasibility study has been engaged in order to determine whether or not a tunnel could be constructed to complete the 710 gap closure for northbound traffic via a "route-neutral" plan.

What this study means and the potential impacts for Glassell Park and our surrounding communities will be discussed at the educational forum on Saturday, August 29. The event will be held at 10:30 at the Glassell Park Community Center, 3750 Verdugo Road, Glassell Park, 90065 and is free to the public.

Community Network and Resource Fair

Saturday, August 29, 2009, 10am - 4pm PDT

Court of Champions,  The Rose Bowl, 1001 Rose Bowl Drive, Pasadena, CA 91103

10a-2p Community Network and Resource Fair with information about Employment Health Financial Housing Education Youth Parenting Spiritual and More

Over 50 Resource Vendors

10a-4p Celebration Join us for Music Art Dance Drama Food

*All Ages

FREE

The Church of the City, Greater Pasadena

in conjunction with

The Employment Development Department of California and

The Foothill Workforce Investment Board

The Old L A Farmer's Market in Highland Park is held every Tuesday, rain or shine, from 3:00 PM to 8:00 PM.

The Farmer's Market is held on Avenue 58 in between North Figueroa and Marmion Way, and on Marmion Way between Avenue 57 and Avenue 58.

You can ride the Metro Gold Line and get off at the Avenue 57 Station.  Or you can park in the public parking lot north of North Figueroa.  Enter the parking lot from Avenue 57.

And the market has more than fruit and veggies!  You can buy hot, prepared food; you can buy arts, crafts, jewelry and apparel.

And there's live entertainment!

Homebuyers In Northeast Los Angeles - Part FIVE:  More About Contingencies

In the standard California real estate purchase contract, the Financing Contingency runs concurrently, and simultaneously with the Inspection Contingency.

The standard preprinted paragraph provides a 17 day contingency period for both; meaning that by the end of the 17th day after mutual acceptance of the purchase contract, you must be able to state that you have completed all your inspections and investigations AND that you have secured the needed financing to purchase the property AND that the property has appraised at the amount necessary to secure the financing.

That 's alot that has to happen in a relatively short period of time.  And with additional regulations now in effect in the financial industry, many real estate professionals are suggesting that buyers negotiate for a longer financing contingency period.

Why is a contingency period important?  Some investors like to call a contingency an "escape hatch".  A contingency allows a buyer to cancel a purchase contract without penalty is the contingency is not satisfied.

If a buyer waives all contingencies, and then decides to cancel the purchase, the seller of the property may claim the buyer's good faith deposit as damages.

Also note that the standard preprinted California real estate purchase contract provides that all contingencies must be "actively removed" in writing. 

The contingency is not removed automatically, even though the 17 day time period has passed, it remains in effect until it is removed in writing. 

What is the seller's recourse if the buyer's removal of a contingency is overdue?  A seller must issue a written Notice to Perform.  (The required performance being the removal of the contingency.)

This article is not intended as legal advice.  It is general information only.  If you need specific contract contingency advice, please consult your attorney.

At Bob Taylor Properties, as your agents, we will help you meet the contractual time periods and manage the deadlines.  We will guide you and consult with you throughout all negotiations. 

ESCROW SURVIVAL GUIDE - For Homebuyers In Northeast Los Angeles - Part FOUR: Physical Inspection

Even if you are quite comfortable with making all your own home renovations and repairs and repairs, we will urge you to obtain a professional physical inspection of any home you purchase.

Why?  The home inspection will provide us with a complete, objective, unbiased examination of the home.  The inspector may note issues you overlooked or the inspector might suggest alternative solutions to various concerns.

You do not need to take time off to attend a closing.  Most mortgage loan originators will accommodate you with evening or weekend appointments.  BUT you absolutely should plan to take the day off while the physical inspection takes place.  You need to be present. 

The inspector may note things and make suggestions that do not later fit in the scope of the written report.  Bring a small digital camera, bring a small cassette tape recorder or a note pad.  Be there, ask questions; if the inspector mentions a particular concern, ask the inspector to show you the components of the home that are involved and explain them to you.

Unless the parties to the transaction negotiate a different time contingency time period, the standard inspection contingency time period on the standard California real estate purchase contract is 17 days.  Calendar days, not business days; and the clock starts ticking as soon at the final signature is placed on the final counter offer.

Try to schedule the physical inspection as soon as possible within the contingency time frame.  Do not wait until the last day of the contingency period.  If problems are found, the physical inspector may recommend further inspections by specialists:  perhaps a chimney inspection, a sewer line video inspection or a geological report.  Ideally, you want enough time remaining in the inspection period to obtain the additional inspections without asking for an extension.

As the buyer, once all the inspections are completed, and all the written reports have been received, you have some decisions to make.

You can accept the property in its present condition as disclosed by the physical inspection reports.

You can reject the property based on the physical inspection reports and cancel the sale under the contingency without penalty.

You can renegotiate with the seller to perform various repairs, credit you some amount based on the recommended repairs, or reduce the purchase.

Keep in mind that the inspection report is not a checklist of to-do items for the seller.  The seller has no obligation to perform any of the repairs.  The seller is free to reject any renegotiations.  As the buyer, you are then equally free to cancel the transaction.

Also consider carefully whether you are comfortable having the seller make a specific repair, or would you rather have more control over how the repair work is done?  If the latter, you will want to focus on credits or price concessions.

Remember the inspection contingency and the financing contingency run concurrently and simultaneously.  Do NOT wait for a resolution of the inspection contingency to begin working on any requirements from your mortgage loan originator.

At Bob Taylor Properties, as your agents, we will guide you and consult with you throughout all negotiations.  We will help you process and prioritize all the information.  We will help you meet the contractual time periods and manage the deadlines.

It's Tuesday! Farmer's Market Day in Highland Park!! Come on over to the Old L.A.-Highland Park Farmers Market , from 3 to 7 pm, on Avenue 58 and Marmion Way.

Street musicians provide entertainment, there's plenty of fresh produce, plus hot and prepared foods and arts and crafts; even apparel.

The Old LA Farmers Market is every Tuesday from 3-8pm. Corner of North Figueroa and Ave. 58. Lots of free parking at Ave. 57. Adjacent to the Highland Park Metro Goldline.

ESCROW SURVIVAL GUIDE - For Homebuyers In Northeast Los Angeles - Part THREE:  Managing Deadlines

Once your purchase offer is accepted, the clock starts ticking towards the contractual deadline dates. 

It is important to note that the standard California real estate purchase contract counts from the date of acceptance, not the date that an escrow is opened with an escrow company.

For example, let's say your purchase offer was accepted on Saturday, August 1.  A thirty day escrow would indicate a closing date of Sunday, August 30, even though the escrow company did not open the file until Monday, August 3.  However since the Los Angeles County recorder must be open in order for a closing to happen, your escrow would be set to close Monday, August 31.

In Los Angeles County, California, an escrow is "closed" when all the grant deed and any deeds of trust (mortgages) are recorded at the Los Angeles County Recorder's office.   In California, "closing" is not a meeting attended by all parties to the transaction. 

Real estate contract deadlines are based on calendar days, not business days. 

Even if your escrow is scheduled to close on August 31; if all the contingencies and contractual terms are not meet prior to closing, the escrow cannot close, and stressful negotiations for a contract extension will be necessary.

In the standard California purchase offer, a contingency period of 17 days is the pre-printed default.  The parties to the transaction can change that to a different time period by mutual agreeement.  This time period is for both the loan contingency and the inspection contingency running simultaneously.

Here's an tip from the Old School.  Get a monthly calendar, the pre-computer, paper kind.  Write down on the calendar the acceptance date and the scheduled closing date.  Then count 17 days from the acceptance date, and write "contingency removal due".

Now look at the calendar, and find one week prior to the contingency removal date.  Mark that date "Follow Up", meaning if you arrive at that date and all the inspections have not yet been performed; or the lender has not yet made an appraisal, it is time for us to make some follow up calls and push everything along.

Find one week prior to the scheduled closing date.  Mark that date "Follow Up" also.  That's the point in the escrow when we will want verify that the lender is ready to issue loan documents, and any repairs or mandatory retrofits on the seller's side are complete.

Why does writing it down on a paper calendar help?  I think it's the visual representation of "this is where we are", "this is where we are headed" and "this is how much time we have to get there".

We want to be proactive!  We don't want to wait until the deadline has passed to start following up.

And one more thing, at Bob Taylor Properties, in Highland Park, we are always aware of how deeply people's lives can be affected by a move.  There are things to pack, pets to transport and kids to comfort.  Buyers and sellers can be overwhelmed dealing with movers and utilties and schools and banks.

We work hard to keep your escrow on track and on time, and we always keep all parties fully informed throughout the entire escrow process. 

Here in the Northeast Los Angeles neighborhood of Highland Park, we are a community of contrasts and diversity, where many different cultures and beliefs peacefully (for the most part) co-exist.

I enjoy this juxtaposition:

Palm Reading, the Virgin of Guadalupe or Fresh Flowers.  Take your pick.  :-)